Compared to gold, both the euro and dollar have lost over 80% of their value in just the last 20 years. The low interest rates required by the huge amount of both private and government debt and continued deficit spending creates distortion, misallocation of resources, zombie corporations, and general fragility in the system which can lead to monetary collapse much quicker than you describe in your article. Raise rates just a little and 20% of corporations go belly up. Gold is the only way out of this casino. JP Morgan wasn’t kidding when he said that only gold is money and everything else is debt. While the government continues to expand the money supply, let’s do a thought experiment and think about what would happen if, to hedge its bets, it tried to purchase large amounts of gold. It might get away with a few tons, but sooner rather than later the dollar in terms of gold would drastically dwindle in value. The reserve currency status of the dollar has made all the other floating currencies simply derivatives of the dollar and as more and more countries struggle to obtain enough dollars to service their large amounts of dollar-denominated loans, their citizen will want dollars more and more and their home currencies less and less. Compared to gold currencies don’t float, they sink, and sink faster than the dollar. In terms of all major currencies except the dollar, gold is at all-time highs. High government deficits and debts are important reasons. The world desperately needs a re-do of the Bretton Woods Agreement. I suspect that Steven Keen is right that private debt is an even more immediate problem than government debt and that a modern debt jubilee is called for. Allowing the Fed and other US banks to create unlimited amounts of debt-based dollars is a relic of the days when high EROEI oil which underpinned the productivity gains necessary to service all that expanding debt. Well, that party is over. We don’t need to revert to the old version of a gold standard. We could just let people choose to use gold as money again and let the value of the dollar float efficiently against gold. In the alternative, if the deleveraging leading up to the need for a debt jubilee is effective enough, the Treasury could just call in the gold certificates held by the Fed at $42/oz and re-issue them at $40,000/oz. That would create roughly $12 trillion of debt-free dollars to pay down the debt to a manageable level and kickstart a monetary reset.

SGI Buddhist, Loves Irish and Latin American Literature, History buff, knows a great deal about Medicare

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