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Just as the Dollar Collapses to a Record Low — News About Gold

The collapse today in the value of the dollar to a record low in terms of gold prompts us to turn to a just-issued report from Federal Reserve Bank of Philadelphia. It has come out with a study touting gold — the classical measure of monetary value — as a vehicle to achieve stable prices. Incremental though it may be, this news is progress, especially when the Fed is having a hard time, under a fiat money regime, bringing inflation down to its 2 percent target.

The key finding of the Fed’s paper is that a gold standard “ensures long-term price stability.” That’s hardly news to those who have long stressed that a gold standard — defining the dollar as a fixed weight of gold — has historically been the best means to hold prices steady. This from a regional bank that is part of the Federal Reserve that was headed by Ben Bernanke, who infamously said, “if you look…

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