James Rickards, a pro gold-standard advocate and author of Currency Wars, has been having a twitter battle with Nouriel Roubini - ardent anti gold standard advocate.
Roubini maintains that the gold standard caused the great depression. Rickards maintains that a mis-pricing of gold contributed to the great depression - which was caused by excessive credit.
Roubini's position is accepted as conventional wisdom amongst Keynesians. Rickards is the position taken by all Austrian Economists.
There is a problem of logic underlying the Keynesian position.
Roubini states that raising the gold price, (as would be required for a Gold Standard, because of the paucity of the supply of gold) is a de facto Devaluation or the dollar.
This position ASSUMES that the current gold price is being fairly set by a Free Market.
This assumption is patently absurd.
The Chinese fully understand this even if most Americans and Europeans do not.
Rickards understands that the Chinese understand this. This is the thesis of his "Currency Wars."
In June of 2012 everyone who didn't get this will get it. Because that's when the Pan Asian Gold Exchange goes fully live, and all of a sudden the weapons the US and European Banks now have to control the price of gold will be emasculated.
What weapons? Unlimited amounts of worthless paper gold in the form of Comex Futures Contracts priced in dollars will have to compete with Pan Asian Gold Contracts fully backed by deliverable gold bars. And price in Yuan.
Try and get your head around this now. There's only a few months left. Then we'll find out who's right.
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