The Committee to Save the World

26 July 2010

Most commentary on gold seems to focus on the question of inflation versus deflation. However, there is a significant political dimension that transcends even these existential considerations. The global economic system has become fatally dependent on the issuance of sovereign debt to finance the livelihood of government employees and the multiple dependencies of entitlements and transfer payments. Income created by political largesse has become a cornerstone of economic activity. Unwinding longstanding patrimonies to restore the fiscal credibility of government promises to be a challenging task. Those who question the feasibility of such a restoration will continue to find gold attractive.

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John Hathaway
26 Jul 2010