Eurozone, Gold, and Monetary Policy

I follow @KitcoGoldQuotes on Twitter and it gives me hourly updates on the spot price of gold and it seems that gold is on the rise again. Since that time that I posted my article on Investing in Gold in the Philippines, the price of gold has gone up about a 100 dollars per ounce. With continuous Eurozone bailouts, buying of debt, and increasing money supply, I don't see any reason for the price of gold to go down or for the value of paper money to go up.

Nigel Farage Slams Van Rompuy and Barroso

The whole crisis in Europe is very reflective of the accuracy of the Austrian School of Economics on things like business cycles and fiat currency. It's interesting how people continue to discredit these ideas in spite of the staggering proof. They still want artificially low interest rates and continuous authority to manipulate it. They still want to print more money. They still want deficit spending. And, surprisingly, there are still people who think that the Euro will provide stability in spite of all the failures in their objectives and predictions.

In my post about Nigel Farage predicting the euro crisis, you'll see that it's almost as if many of them don't hear what Farage has been saying all this time. It's like they're pretending to be deaf or to have no memory whatsoever that Farage has been warning about a crisis just as this one. On the video above, you'll see that Van Rompuy and Barroso are afraid to admit that all their predictions were false while Farage's were all spot on. It's so unreal.

I also think that everyone is so focused on the euro that it's also become a distraction from looking at the dollar in the same way. The deficit of the US is ridiculous and to continue accepting that the dollar is the world's reserve almost makes no sense (see also The World is Losing Faith in the Dollar).

And the governing class will never admit to all these failures. We even saw David Cameron very favorable of the EU (I really used to like him before he became prime minister and I thought he was a principled man but turns out he's just like any other establishment politician). They can't admit the failures because they are so scared that the whole world will lose trust in the current system and start researching for themselves what's really going on. They will continue to support ridiculous concepts like this European Union dream or the fiat currency dollar as the world's reserve. They're far too invested in it that they can't fold anymore.

It's good that these ideas are starting to pick up in the mainstream though with people like Farage and his UK Independence Party gaining momentum and credibility.