Tuesday, December 8, 2009

Grant: Dump Dollar, Return to Gold Standard

The dollar is a fundamentally damaged currency, and a return to the gold standard represents the best solution, says James Grant, editor of Grant’s Interest Rate Observer.

“A proper gold standard promotes balance in the financial and commercial affairs of participating nations,” Grant writes in The Wall Street Journal. “The pure paper system promotes and perpetuates imbalances.”

Investors around the world are losing faith in the dollar, he points out.

“It's not that the dollar is overvalued — economists at Deutsche Bank estimate it's 20 percent too cheap against the euro,” Grant says. (more)

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