Wednesday, November 29, 2006

Golden Words Out Of India

Even the Indians understand that gold has a place in any monetary system. S.S. Tarapore, former deputy reserve governor of the Reserve Bank of India, is recommending that "the government allow the RBI to increase the share of gold in the country's foreign exchange reserves in order to diversify risks arising from volatility in global currencies," as reported in the Business Standard. (Source: myiris.com)

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[Thanks to jewelofthelotus.com for the photo.]

This is another voice among those we've already heard coming out of Russia, the Middle East, and China. All of these countries have huge stocks of US dollars in their accounts, and they are increasingly afraid that the US dollar's long-standing reputation as a store of value may be waning.

Do I have to keep repeating myself? You can take gold out of the standard, but you can't take the standard out of gold.

1 Comments:

Blogger Idaho_Spud said...

Yo Katy

Geez I got back from T-giving vacation and you had 11 new posts up! Still checkin' in daily - just not much to say lately.

How about the spanking the dollar is getting this week, and the nice little gold rally? You'd think it'd be in the news up there with Britney, but no...

The markets take no notice of the dollar crash of course course, as the heroin of so many dollars courses through the veins of the financial system. Someday this liquidity junkie is going to be in withdrawal, and it ain't going to be pretty.

3:16 AM  

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