You can read the entire pdf here: http://www.biiwii.com/analysis.htm
Excerpt:
But although technology available today paves the way for the more efficient use of gold as money,
it is extremely improbable that gold will ever again be money unless there is first a total economic
collapse. This is because only a total economic collapse would be capable of bringing about the
sort of political change that would make sound money feasible. The reality is that the current sizes
of the government and the government's future obligations (social security, pensions, promised
'free' medical care, deposit insurance, the dole, payments to bondholders, etc.) are completely and
blatantly incompatible with sound money. Implementing sound money and leaving everything else
the same would be like trying to keep a Ponzi scheme going without sucking in new investment.
So, replacing money that the government can inflate at will with money that has rigid limitations on
its supply could only occur in parallel with direct default on a massive scale and the shrinkage of
the government to a small fraction of its current size. It is not realistic to expect that this will happen
as long as it remains possible to 'kick the can down the road' a little further.
As I have written all along in NFTRH, only an end of the current system will resolve our monetary system for the better. How much pain do you suppose the process of unwinding might entail for played out, late stage, hubris choked systems? Any wonder we get 'inflation on demand' at every sign of an unwinding? How close do you suppose the system was to ending in Q4, 2008? Too close for comfort is my guess.
