Martin Armstrong: A Return to the Gold Standard Would Create a GREAT DEPRESSION

Martin Armstrong is back with his outlook for gold.
Armstrong is calling for gold to continue to rally and make “astronomical highs” through 2020, with the dollar as we know it disappearing as a currency.
Shorter term, Armstrong is looking for a high in August around $1700-$1730 resistance, before a new correction begins.  He believes the correction should be short lived, unless gold over-runs $1700 and extends itself up to $2,000 this summer, in which case Armstrong expects a 7 month correction into Feb 2012.

Armstrong also gives a brilliant history of the use of gold as currency, and states that a return to a gold standard would instantly create a GREAT DEPRESSION.
A return to the gold standard would cause all debts to be repaid in gold.
Think about this for a moment.  Your mortgage. Your car loans. Your student debt.  All suddenly owed to the banksters in gold, per a government decree!
As we have stated recently, a return to a gold standard is the BANKSTERS end game goal, not the goal of free money advocates!
There is no practical way to return to a gold standard without first defaulting on EVERYTHING OUTSTANDING!
We need gold and silver to trade openly in a free market, not arbitrarily set at a certain price by the government as in a gold or silver standard!
Jul.13.2011
The Outlook for Gold
July 2011
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Comments

  1. makes sense. Great Post!

  2. Pat Fields says:

    I agree with Armstrong's conclusion. Silver and gold have a far higher rational 'value' in the broad spectrum of goods-at-market and to attempt making them the sole metallic money will immediately devastate the great majority of 'common folks'. Their plight has to be accounted for and the only metal appropriate to their needs is copper(as has been the case throughout human history).

  3. Anonymous says:

    copper is all that most americans will be able to afford….an ounce of silver will be out of their league!

  4. Anonymous says:

    Doc,

    How does he know this is the banksters plan? Return to Gold. Isnt this what Ron Paul is advocating?! You agree? Or, you dont really know..

    Thanks for the article!

  5. Pat, how do you integrate this with your (I assume) constitutional preference for currency? Tri-metallic perhaps?

  6. LocalCoinShops says:

    Good article. I'm pretty sure any change this huge to the monetary system would be jarring and probably would lead to depression. Is it possible for gold & silver to not be pegged to a constant government $ value but still used in daily commerce? Isn't that the way it was done in the past?

  7. Pat Fields says:

    Marc, money has always been 'tri-metallic'. For the three centuries prior to the 20th, the average day's wage was an ounce of silver (5 shillings, 1.25 USD) which was calculated to provide two days average sustenance. That means the recent historic real value in today's banknotes is 193 (median = 50,200/yr), so even a tiny little 20th ounce silver coin would be too much for an average dinner breakfast! The necessity of copper as a sub-money to silver is blatantly clear. Did you know? The original 'Continental' was a troy ounce of copper?

  8. Jay H. Gomez says:

    Except for people holding Silver and Gold.

  9. Anonymous says:

    the great depression started when europeans lost confidence in their banking system, pulled money out of banks, and converted their fiat into the one currency on the gold standard: USD.

    That sucked dollars out of the US, fewer dollars chasing the same amount of goods, Fed did not print, massive deflation ensued, bank runs… great depression.

  10. Zy Marquiez says:

    NOT returning to the Gold Standard might expedite the same scenario.

  11. Anonymous says:

    Money has always fluctuated. I worked at the Bundesbank when Europe was calling upon Armstrong for help to design the euro. This man's knowledge he attributes to his clients, but it rises from his computer model that was truly a major discovery. We gave him inside information because the politicians were playing politics. He persuaded the prevailing opinions that at least each country would have its own interest rate for the politicians wrongly believed that should also be equal. This man's understanding of money and debt is most assuredly still not appreciated today. Everything he warned would happen did because Europe failed to listen that all the debts had to be consolidated into a single national debt in order for there to be a single currency. The politicians would not listen because politically they assumed it would have been a bailout of the lessor states that they could not sell to the people. They were wrong. We are now reaping what they sowed. What Armstrong is saying about the gold standard idea is that money is never a constant and it fluctuates in purchasing power rising in depression and declining in booms. Those who cannot see what he is saying are making the same mistake as Karl Marx assuming that there can be a perfect world without a business cycle where gold as money is a magical constant value. No single person's knowledge was consulted more by the central banks and the biggest corporations around the world than that of Martin Armstrong. What he has not written about is this is the man that helped restructure even the German car industry. He taught the Japanese to sell their product in local currency and take the foreign exchange risk home. That was how the Japanese car manufacturers beat the German car manufacturers in America. What is not known it seems, is this is the man that got Mercedes out of their losing trades on hedging Britain selling the pound before the launch of the Euro. He saved them at least $1 billion and instructed them also to create a hedging desk. This man was so much to so many and still people fail to understand fundamental principles of money and debt he taught behind the curtain as he has put it.

  12. Anonymous says:

    And Anonymous for his hard work and contributions…they locked him away for 7 years for "Contempt of Court."

    What a complete farce the U.S. legal system is when TPTB want someone put away they just do it.

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