Martin Armstrong has written another compelling paper on the serious crisis point that is coming and will be resolved, whether government wants it to or not. A few quotes stick out:
The best we can hope for is to redsign the monetary system and have a plan ready to go when it all turns to dust and falls down.
We are cascading toward a choice of MONETIZATION or DEFAULT.
This is not a problem that can be solved with making money gold. It cannot be solved by confiscating ALL the wealth of the rich or raising taxes. It cannot be solved by shutting down ALL social spending.
We are in a position where there MUST be a complete structural reform, or everything goes bust and civil unrest will destroy what is left.
The ONLY resolution is MONETIZE the debt and STOP borrowing unless in time of war ONLY, or we DEFAULT and wipe out all pension funds, which would probably spark civil war. So let us stop the peripheral nonsense dancing around the real problem – it’s the DEBT, not what is MONEY or a BALANCED BUDGET!
Gold cannot rise in value disproportionately to everything else on a sustained basis. It is undervalued no doubt and is playing catch-up.
Sounds a whole lot like Martin is saying what Freegolders are saying, specifically a new monetary system is a must and that we either must inflate our way out or default. Default is really not an option that government can ever consider, which leaves inflation. This is the path to Freegold.
I would not be concerned with his statement that “Gold cannot rise in value disproportionately to everything else on a sustained basis. It is undervalued no doubt and is playing catch-up.” For one it is true, but only when gold is truly valued in our money. Martin is correct, gold has some catching up to do. When it has caught up it will then float relative to our money.