Our skins saved, for a mere $11 billion!

A few thoughts, but first a disclaimer of sorts…. I am a paying student of Dr. Reisman’s, I continue in his coursework of the Economic Theory and Political Philosophy of Capitalism. I readily admit that I am, to one degree or another, slightly biased. However, objectivity is his hallmark and it is, at the end of the day, rationality coupled with its intellecual presumption; reality. To this I wholeheartedly espouse and, have to admit, have progressed merely by reading his work. The hours of in depth study when I can afford them have been truly beneficial and enlightening – there is no violation of the heirarchy of knowledge with this intellectual giant.

At any rate, Dr. Reisman is at it again, this time suggesting a one-time shot to stave off what could very easily be the deflationary nightmare none of us want, and very few could survive… This is serious stuff folks, and George Reisman is precisely correct. This is unadulterated brilliance and worth your attention.

Now, there are those of you out there who still scratch your head over supporters for Ron Paul. Well, for me it isn’t/wasn’t Dr. Paul’s opposition to the war, per-se, that captured my attention and garnered my contribution and support. Rather, it was his understanding of Austrian Economics coupled with his unapologetic support for, in the least, gold as a competing currency.

Now we have this.. My my, when will the country wake up.

Thank you, Dr. Reisman!

And what is more, it could be accomplished at a cost to the Federal Reserve not of hundreds of billions of dollars—the sums the Fed is risking in exchanging its government securities for bank assets of vastly lower value—not for the $30 billion it has risked to bail out just Bear Stearns, but for a little more than $11 billion! Just $11 billion is the value at which the Fed carries its gold stock on its balance sheet, at a price of gold of approximately $42 per ounce.

Thus, to say it all in one sentence, the threat of massive deflation can be eliminated, the threat of inflation ended, and the actual and potential domain of economic freedom greatly expanded, for $11 billion—an $11 billion that would not even be an out-of-pocket expense to anyone but merely a balance-sheet charge on the books of the Federal Reserve System when it deducted its gold holding from its balance sheet and added it to the balance sheets of the banks.

Full article, required reading

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