John Butler

The Golden Revolution

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Why the gold standard is due for a comeback A reserve currency can only function as such if there is a general consensus that it provides a stable store of value. Without this trust, money, no matter what form it takes, will be abandoned—either suddenly in a crisis, or gradually over time—in favor of something else. The Golden Revolution looks at how the world is rapidly moving toward some form of global metallic standard, in which money, at least in official, international transactions, is linked directly to gold, silver, or both.
The practical reality of the transition to the coming global gold (or bimetallic) standard is going to be substantially different from the global fiat monetary and financial regime of today. It is not just money that is going to change. The nature and business of banking will also be affected, as will finance in general.
Incisive and thoughtful, The Golden Revolution is a treatise on the broad effects of the current and future monetary structure Looks at why the world is headed inexorably back towards a metallic money standard Explores what the transition period might look like, including some historical examples of both orderly and disorderly transitions Examines how the world of banking, finance, and investment, including asset valuation and portfolio management techniques, will work under a future gold standard and which industries, countries and markets are likely to benefit and which are likely to suffer Full of advice on how investors can profit and protect themselves during this critical time of change, the book knows that those who are prepared will prosper, while those who won't stand to lose it all.
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297 printed pages
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Quotes

  • swatibisthas quoted8 years ago
    learned in our time.
    There has been much written about why the price of gold is moving higher and will continue to do so. It will, and probably much higher, when denominated in units of weakening fiat currencies. But, while this is certainly useful advice, it does not fully prepare the reader for the practical reality of the transition to the coming global gold standard, which is going to be substantially different from the fiat monetary and financial regime of today. It is not just money that is going to change. The nature and business of banking w
  • swatibisthas quoted8 years ago
    Money can function as such only if there is sufficient trust in the monetary unit as a stable store of value. Lose this trust and that form of money will be abandoned, either suddenly in a crisis or gradually over time in favor of something else. History is replete with examples of Gresham’s Law, which states in part that “bad” money drives “good” money out of circulation, that is, when faith in the stability of a type of money is lost, it may still be used in everyday transactions–in particular if it is the mandated legal tender–but not as a store of value. The “good” money is therefore hoarded as the superior store of value until such time as the “bad” money finally collapses entirely and a return to “good” money becomes possible. This monetary cycle, from good to bad to good again, has been a central feature of history.
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