This book explains why inflation will return a la 1970’s. It is written by Jim Rickards, an attorney and economist. Rickards likes gold.
Here is an excerpt from Wikipedia:
“Rickards was one of the first to say that the United States should return to a gold standard, which would be more stable than fiat money. Rickards believes that it is inevitable that the U.S. will return to a gold standard and says the question is whether the process of returning to the gold standard will be a smooth process with public debate, congressional hearings, commissions and government announcements that will enable markets to adjust or if it will be handled in a chaotic fashion with collateral damage, civil unrest and some sort of domestic military operations.
JAMES (JIM) RICKARDS
Rickards says currently, the U.S. is following the chaotic path. He says that a return to a gold standard would enable people to have confidence in the currency because they would know they could convert their paper money to gold at any time and the government would make payment and this would keep the system honest.
Rickards believes that on an open market, the price of gold would be around $7,000 an ounce. He says the target price is between $5,000 and $10,000 per troy ounce in current U.S. dollars.
Dr. Pinna says:
Think about it! The money printing has not stopped.
“In 1971, President Nixon imposed national price controls and took the United States off the gold standard, an extreme measure intended to end an ongoing currency war that had destroyed faith in the U.S. dollar.
Today we are engaged in a new currency war, and this time the consequences will be far worse than those that confronted Nixon.
Currency wars are one of the most destructive and feared outcomes in international economics. At best, they offer the sorry spectacle of countries’ stealing growth from their trading partners.
At worst, they degenerate into sequential bouts of inflation, recession, retaliation, and sometimes actual violence. Left unchecked, the next currency war could lead to a crisis worse than the panic of 2008.
Currency wars have happened before-twice in the last century alone-and they always end badly. Time and again, paper currencies have collapsed, assets have been frozen, gold has been confiscated, and capital controls have been imposed. And the next crash is overdue. Recent headlines about the debasement of the dollar, bailouts in Greece and Ireland, and Chinese currency manipulation are all indicators of the growing conflict.”
As James Rickards argues in Currency Wars, this is more than just a concern for economists and investors. The United States is facing serious threats to its national security, from clandestine gold purchases by China to the hidden agendas of sovereign wealth funds. Greater than any single threat is the very real danger of the collapse of the dollar itself.
Baffling to many observers is the rank failure of economists to foresee or prevent the economic catastrophes of recent years. Not only have their theories failed to prevent calamity, they are making the currency wars worse. The U. S. Federal Reserve has engaged in the greatest gamble in the history of finance, a sustained effort to stimulate the economy by printing money on a trillion-dollar scale. Its solutions present hidden new dangers while resolving none of the current dilemmas.