Deegan

The WSJ Is Right - U.S. Should Return to a Gold Standard

The naysayers always have an answer to the questions they don't understand. Can a currency be based on gold? The answer for them is of course it will not work.

Every college freshman is taught that to completely analyze a problem one needs to be able to ask and answer the 5 "W"s. Who, What, When, Where and Why.

One doesn't need to get very far into an analysis of the question to determine that there are a number of different ways a currency could be based on gold. Yes, of course it will work. The powers that be just don't want it to work since they won't be able to fund wars and other huge govt. expenditures without inflation of a fiat currency.

Money is more than a medium of exchange and a measure of comparitive market value it is a means to store value. Gold can easily be a foundation for a currency to achieve these means.

Think about it. Anyone with more than a pea sized brain should be able to come up with a workable system that is better than the fiat currency we are currently using. As it is, we are close to a currency meltdown and the loss of the middle class. When that happens, we will be in no postion to be telling the world what a currency will be based on. They will be telling us what the new world's reserve currency will be and it certainly won't be a revised version of the U.S. dollar.

Ratio of Gold to Silver

Where one parks or invests one's money depends on your outlook for the future. I think we are in a bear market and until the housing market turns around we will remain in one.

There is no sense to park your money in treasuries as they aren't paying anything. It makes more sense to park your money in gold, the real bullion if you can find it. Even if the stock market goes down and the value of the dollar falls you will have a hard asset. Silver could easily double or even triple if gold goes over $1000.