James Grant whose Interest Rate Observer newsletter is followed by many big institutional investors, argues on Bloomberg TV that the gold standard is a better alternative for money management and that the historical evidence is incontrovertible.
Grant has been calling for Bernake's resignation for months. He says the debasement of fiat currency will continue and this will drive a gold rally.
“To me the gold price takes the form of a very uncomplicated formula, and all you have to do is divide one by ‘n.’ And ‘n’, I’m glad you ask, ‘n’ is the world’s trust in the institution of paper money and in the capacity of people like Ben Bernanke to manage it. So the smaller ‘n’, the bigger the price. One divided by a receding number is the definition of a bull market."
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