Deutsche Bank’s report is “Gold: Adjusting for Zero.” It reckons
we’re in a situation that is “Zero for growth, yield, velocity and
confidence.” It says: “We believe there are nearly zero real options
available to global policy-makers. The world needs growth and is willing
to go to extraordinary lengths to get it.” It forecasts bluntly that
the value of the dollar will plummet in the first half of 2013 to less
than a 2,000th of an ounce of gold. It reckons “the growth in supply of
fiat currencies such as the USD will remain an important driver.”
That’s just for openers. The report then goes on to assert that gold
is misunderstood and doesn’t really belong in the basket of
“commodities” used by so many economists. Gold is money, according to
the Deutsche Bank. Says it: “We would go further however, and argue that
gold could be characterised as ‘good’ money as opposed to ‘bad’ money
which would be represented by many of today’s fiat currencies.” It
refers to Gresham’s Law and suggests “the undervalued money (good) will
leave the country or disappear from circulation into hoards, while the
overvalued money (bad) will flood into circulation.”
Read more here.
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