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The New Gold Rush: No Currency is Good

What is a dollar worth today? Nothing.

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The president of the World Bank, Robert Zoellick suggests
the new financial standard should be alas… the price of gold. 

After four decades of faith in the international monetary
system, money is worth nothing and gold again is considered to be the only
measure of economic worth, thus today's gold rush.

With a median household income of $50,211 in 2009 Americans
could afford only 36 ounces of gold. 
To buy just 1 troy ounce or 31 grams of gold today we need approximately
$1,400 dollars, and that is what gold coins of American Eagles and South
African Krugerrands are worth each. 

Since recession hit the U.S. economy by the end of 2007,
gold has risen 91 percent.  The
first to shed their meager gold for cash are the destitute and desperate, and
other than their cheap labor they have nothing else to offer.

These are "anxious times" as described by The New York Times
this week.  Investing in gold or other
commodities such as wheat, cotton, and copper seems to be the answer. 

The caveat here is whether we as regular citizens can afford
to "invest", that is, once our necessities are cared for if any money is left, and
assuming we still have a job.

Since there is no policy means to reactivate the economy by
directing investment to national infrastructure –roads, bridges, the energy
grid- a desperate measure hangs on monetary policy and that is just what the
Federal Reserve did by increasing the dollars in our economy easing $600
billion dollars into the economy.

The mid-term elections confirmed we shall expect no
consensus in reactivating the economy, the sole focus is on maintaining tax
cuts for the wealthy and budget cuts affecting not simply unnecessary
bureaucracy and their lavish benefits, but necessary services such as the
offered by teachers, police and fire workers, along with taking away social
security already earned by those retired.

When the people lack bread politicians will resort to supply
them with a circus.  Nothing better
than parading arrested immigrants and deporting them.  For the sake of bewildered amusement simply portray
undocumented immigrants as "criminal by definition". 

The truth is undocumented immigration wanes because the U.S.
cannot afford to lure it with a doomed and no-longer-mighty dollar.

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