Tim Price: Don't go Dutch
Comment of the Day

February 15 2011

Commentary by David Fuller

Tim Price: Don't go Dutch

My thanks to the author for this vintage issue, published by PFP Wealth Management. Here are two samples, starting with what I assume is an extemporaneous and edited comment from Ron Paul:
"We have so much unemployment, it is so undercounted. The free market economists report that there is probably 22% of unemployment. They [the Fed] pumped in $4 trillion, they should have added a lot of jobs, but how much did it cost us, and that of course is the price inflation that will come. We are moving into another 30 year period where we are going to see a reversal of interest rates, and we are going to see a crashing of the bonds like we saw 30 years ago and it's going to last a long, long time. The Fed deserves the blame for the inflation, and for the unemployment."
- US Congressman Ron Paul.

And:

Website Zero Hedge reports that De Nederlandsche Bank went to court and forced the glassworkers? pension fund to sell most of its holdings in gold. The court sided with the central bank and ruled that the glassworkers? pension fund, with a 13% allocation to bullion, was investing in a way "inconsistent with the interests of the participants". Dutch pension funds are apparently, on average, invested in commodities to the order of 2.7%. Whether gold should even be viewed as a commodity is open to question. We would, of course, argue: No, it's natural money, and always has been. But at a time when central banks globally are busily depreciating their currencies (translation: stealing from their own citizens), what is extraordinary about the ruling is De Nederlandsche Bank's belief that the price of gold fluctuates too much for it to be classified as an investment. If the price of gold fluctuates, what about the value of paper currency ?

David Fuller's view Ron Paul is one of the few Congressmen who both understands and cares about monetary policy. His view on government bonds is right in line with Fullermoney's but I would not blame unemployment solely on the Fed. There were a number of contributing factors resulting in a phoney prosperity based on leverage and bubbles; the end result of which is a lack of cost competitiveness on the international stage. This cannot be easily rectified.

The De Nederlandsche Bank case, partly detailed in the excerpt above, is truly shocking.

Back to top