‘The Fed could make the price stick by buying gold at $2,950 an ounce and selling it at $3,050, in effect becoming a market maker with a 3.3 per cent band around the target price.
‘If the Fed did this, all other prices including silver, oil, and other commodities would quickly adjust to the new price level causing 150 per cent general inflation — problem solved! Don’t think of this just as an ‘increase’ in the price of gold; it’s really a 60 per cent devaluation of the dollar measured in gold.’
Perhaps that sounds impossible and yet as Mr. Rickards notes: ‘Something similar happened twice in the past 80 years; in 1933-1934 and 1971-1980.’ Will it be different this time? Those were the past two major global financial crises. We are still living in the one that started in 2008.