Jim Grant article at marketwatch

[swmurray]

Anyone know much about Jim Grant and his interest rate letter?  (not that I can afford it)

http://www.marketwatch.com/story/gettin ... MW_popular

Any conceivable potential of turning back to the gold standard?  (presidential politics aside)

Thanks

[MediumTex]

Jim Grant is great.  Always insightful and thought provoking.

There is no chance we will ever go back to a formal gold standard.  What politician would support such a thing when it came right down to it? 

[Lone Wolf]

I always enjoy hearing Jim Grant when I happen to catch him.  Really smart fellow.

He also owns a fabulous assortment of dapper little bowties.

[clacy]

Jim Grant is great.  Always insightful and thought provoking.

There is no chance we will ever go back to a formal gold standard.  What politician would support such a thing when it came right down to it? 

I agree. Politicians have long since figured out that controlling the purse strings and handing out money is power.

Power is all that matters to most politicians.  Deficit spending = more control

[Tortoise]

I wouldn't rule out the possibility that an unofficial, de facto gold standard may arise someday through market forces. But I can't really see that happening until (1) the tax code starts treating gold transactions the same as dollar transactions and (2) the government starts enforcing contracts that are denominated in gold.

As long as the burdensome taxes surrounding gold transactions remain in effect, and as long as gold-denominated contracts are not backed by the law of the land, the barrier to entry for gold as a competitor to paper currency is too high. The government likes it that way.