Thanks Be To Volatility

Perhaps It's Time to Think of a New Currency Regime?

What's the solution? First you have to identify the problem...

And the problem is fiat paper. Why are FX markets increasingly volatile? Because central banks around the world are increasingly manipulating the supply of money.

Would you hold Zimbabwe dollars to store your wealth? Not when annual inflation is over 9,000% and it costs over Z$100 billion to buy a dozen eggs!

Now how about the Indian rupee? How much currency will India's central bank print tomorrow? What about the U.S. dollar? Do you trust the Fed to control the printing presses? Personally, I have no idea who is running their printing press faster.

So what is the solution? A gold standard. Not a pseudo gold standard ala Bretton Woods - but a system whereby _all_ currencies around the world are freely convertible into gold (or silver or whatever real good the free market wants to hold).

Hope this helps.