I wonder if Richard Russell is a Golden Jackass fan ... He just suggested that the global debt crisis be resolved by raising the price of gold to $10,000 per ounce.
"The US owns the world's greatest hoard of gold. Here's what I think the authorities have to do. They should unilaterally, overnight raise the price of gold to a high value, maybe around $10,000 an ounce. Thus, each dollar would be worth one ten-thousandth of an ounce of gold. This would allow our enormous debt to be paid off with vastly devalued dollars."
Of course, the price of EVERYTHING would go up tremendously, not just gold, which he acknowledges: "The huge increase in the number of dollars would drive prices up, and that would work against the current forces of deflation."
Considering that most Americans are having trouble paying for food and gasoline now, I'm not sure his proposal for higher prices will be too popular.
Interestingly, he goes on to say, "We now hear an increasing amount of talk regarding gold entering the world monetary system ... The US will, in due time, start backing its currency with part-gold and the dollar will be convertible into gold at around $10,000 an ounce .... I believe the Chinese are onto the same idea. But as of now, China does not own as much gold as they desire, which is one reason China has rushed headlong into the gold business."