by Ambrose Evans-Pritchard, The Telegraph:
Some gold bugs – though not ones with historical memory – seem to have greeted Republican talk of a renewed Gold Standard with near ecstatic delight.
They need their heads examined. Gold must be free if it is to police the political class.
The beauty of gold is that it is a store of value beyond political or state control, or largely so.
It is a coldly disassociated asset based on atavistic attachment dating back thousands of years. It is common to mankind, and therefore nigh impossible to suppress. It is, to boot, a safe haven from tyranny, the portable wealth of persecuted peoples over the ages.
Once governments link their policies and fortunes to gold through a fixed system, the metal – or its owner – becomes prisoner of abuse.
The reason why Franklin Roosevelt confiscated private gold in 1933 is because the Gold Standard blocked his economic strategy. The linkage to gold in the dysfunctional fixed-exchange dollar system of the interwar years is precisely what made owners of gold a particular target. It is why their wealth was “stolen”.