Tag: United States

All About Economic Wisdom

With the economic uncertainties in the world today, should America return to the gold standard? This controversial topic is the driving theme behind author Edmund Contoski’s book The Impending Monetary Revolution, The Dollar and Gold. Edmund, who has 45 years of experience in international markets and has conducted investment seminars in precious metals and foreign currencies, argues that “American politicians have debauched the currency for agendas contrary to our Constitution and to get themselves elected.” Whether you believe America should go back to the gold standard or not, most people would agree with the author’s statement that “governments are on the verge of bankruptcy because there is no restraint-which a gold standard would provide-on their spending and manipulation of credit.” Edmund Contoski has, with his book, made a topic I would ordinarily find dull and dry-namely, economics-one which is fascinating and interesting.

What are some of the points the author brings up to support his argument that the United States and the world should base the stability of their currency on their gold reserves? What’s happened to Greece is one of the best examples that the media and economists use to illustrate the worst that can befall a country which spends beyond its means and borrows to make up the difference. The U.S. has not yet suffered the same types of dire problems, but that’s because of the dollar’s status as a world reserve currency. This means it can pay its debts by simply printing more of its own money. However, even the U.S. cannot keep printing its own money forever without eventually its currency becoming devalued-it’s actually happening even now, to a degree.

Contoski writes in his very perceptive persuasive book how the world’s economic crisis began, how money was developed and how countries have ‘perverted” it, what the “credit bubble” is, how and why the euro arose, what some of the threats are to the world’s banking system, and much, much more, including the rise of China and India as major economic powers.

What can be done, if anything, about the growing debt that we’re imposing on our children and grandchildren? What will the dollar be worth in five or ten years? Why has the economy stagnated, and why is unemployment as high as it is? How will euro problems affect the U.S.? Why does the national debt keep increasing? These are other questions the author seeks to answer in his well-researched book.

One great aspect about the book is that Contoski tries to explain economic concepts and how they affect the average person in layman’s terms as much as possible. For instance, when Contoski refers to something called “yuan-trading hubs,” and why many countries would like to become offshore yuan-trading hubs, though only Hong Kong is one now. China, according to the author, “has been rapidly diversifying its reserves and getting out of dollars.” To you and I, this means that China is trying to supplant the dollar with the yuan as the new world reserve currency. China “believes its turn has arrived for world leadership and the United States is in decline.” Sadly, there are many indications that point to the possibility that China might be correct in thinking this, though if the U.S. undertakes certain actions, they might still retain their status as the world’s economic powerhouse.