Here in the U.S. the financial markets are focusing on Fed Chair Jerome Powell’s herky-jerky monetary messages while politically the news is Trump’s two picks for the central bank board have taken themselves out of the running.
Herman ‘9-9-9’ Cain and Stephen Moore couldn’t take the heat and either withdrew their names from consideration, or their names where withdrawn via twitter. Both had plenty of baggage, but, what the two had in common was, in their pasts, mentions of returning to the gold standard. That is a no-no. Washington is full of #metoo offenders, but kooky #goldbugs are not allowed.
That kind of talk garners a bipartisan 86ing from serious contention.
Meanwhile, Sputnik News reports that Russia (Vlad and Elvira, Russia’s central bank head) continues to ditch dollars in favor of the ancient relic that Washington so despises.
The new purchases continue a trend established at the start of the year, with Russia buying a whopping 31.1 tonnes in February, adding to 6.22 tonnes purchased a month earlier. Russia has now bought some 55.98 tonnes of gold in the first three months of 2019, putting it well on track to matching the average 200+ tonne purchase made annually over the past half-decade.
One wonders what Mr. Putin and Ms. Nabiullina, are up to? By the way, Ms. Nabiullina is not just a pretty face, she was named the best Central Bank Governor in Europe in 2016 by the international financial magazine, The Banker, besting the likes of Mario Draghi.
Her gold buying makes me think she has read Saifedean Ammous’s The Bitcoin Standard: The Decentralized Alternative to Central Banking. Don’t let the title fool you. This book is not the cover-to-cover crypto cheerleading/gold bashing other authors attempt to jam down our throats. Dr. Ammous Is actually a Professor of Economics, and none other than “Black Swan” author Nassim Taleb wrote the introduction.
Professor Ammous’s Tour de Force begins where it should; the origins of money, then monetary metals, the government takeover of money, time preference, Austrian business cycle theory, money and freedom, and finally digital money. For those wanting to know what the heck a Bitcoin is, it may seem like a long wait. Changes in money don’t happen overnight. All of your questions about Bitcoin are answered in Chapter 10. However, with a bibliography loaded with Hoppe, Higgs, Hazlett, Mises, Raico, and Rothbard, don’t skip ahead.
If one didn’t know the title, a reader would swear Professor Ammous is making the case for a return to the gold standard: Not a phony Bretton Woods gold standard, but the real pre-WWI gold standard deal.
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