by Jim Rickards, Daily Reckoning.com.au:
There isn’t a central bank in the world that wants to go back to a gold standard. But that’s not the point. The point is whether they will have to.
I’ve had conversations with several of the Federal Reserve Bank presidents. When you ask them point-blank, ‘Is there a theoretical limit to the Fed’s balance sheet?’ they say no. They say there are policy reasons to make it higher or lower, but that there’s no limit to the amount of money you can print.
That is completely wrong. That’s what they say; that’s how they think; and that’s how they act. But in their heart of hearts, some people at the Fed know it’s wrong. Luckily, people can vote with their feet.
I always tell people who say we’re not on the gold standard that, in a way, we are. You can put yourself on a personal gold standard just by buying gold.
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