Excessive monetary stimulus, a by-product of an “undisciplined” fiat money system, will create problems for our economy as well as financial distortions, and the long-term solution is a monetary “reset,” whereby economies move away from this system and re-adopt a gold standard, said Jan Nieuwenhuijs, gold analyst at The Gold Observer.
“There are a lot of financial bubbles, there are excessive debt levels, inequality is rising, you’ve got moral hazards, all these side effects of a fiat money standard are not really what we want, and eventually we get a lot of monetary instability and I think then at that point we have to get back to a gold standard,” Nieuwenhuijs told Kitco News.
The transition from the current fiat monetary system to a gold standard has to first address the debt overhang in our economy, Nieuwenhuijs said.
“The main problem we have in the economy right now is the massive debt […]
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