Gerald Celente predicts gold standard won't save US economy

Gerald Celente predicts gold standard won't save US economy

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Sometimes controversial trends analyzer Gerald Celente is forecasting that a return to the gold standard will not be enough to save the US economy from collapsing.

Celente is the publisher of Trends Journal and a consultant and adviser to many of America's top corporations. Celente has no ax to grind and calls himself a political atheist. An author, Celente appears regularly on many of the mainstream media's most watched news programs. He is prolific with his predictions on emerging trends concerning global finances and major historic turning points.

Recently he was asked his opinion on the idea of the US returning to the gold standard.

Although a solid core of gold bugs have advocated the US return to the gold standard for decades, many economists thought the idea radical and unworkable in the changing world economy. Now, however, more people and states are seriously considering the idea to stabilize the dollar and forestall a future currency crisis such as that experienced by the German Republic during the 1920s.

Recently, the state of Utah passed a law authorizing the minting of state gold and silver currency as a hedge against inflation and the weakening dollar.

People such as Steve Forbes have jumped on the gold bandwagon. Mr. Forbes said, "A return to the gold standard by the United States within the next five years now seems likely, since that move would help the nation solve a variety of economic, fiscal and monetary ills."

But Celente disagrees that returning to the gold standard will save the US economy. When asked if gold is a panacea for America's financial woes, Celente responded: "No, because the business of America is war…as opposed to the business of China is business. The United States has drained the Treasury before our eyes."

So what would a return to the gold standard accomplish? Can it save the US? Celente believes that "It will give other nations a more stable world reserve currency to deal with, because they don't want to get stuck with a lot of worthless paper."

And that's about it. Gold won't erase the debt, nor change the policies of the federal government. The Federal Reserve private banking system will find new ways to implement monetary policy and do an end run around the gold obstacle, so in the long run, he thinks, the pattern will remain basically unchanged and the trajectory is towards further economic deterioration.

Bleak prospects from one of America's most insightful trends guru.

The size scope and reach of the US military is truly mind boggling, I tend to agree with him on the business of war. As far as returning to the gold standard, nobody has explained how its possible without massive deflation. Many economist believe deflation is far worse than inflation. I just dont see how you can have gold at $50,000 an ounce and have that be a stable reserve currency that has the liquidity to allow global trade.