A return to the Bretton Woods international gold standard is inevitable

We’re glad a WSJ writer said this before we did. We’d get labeled "goldbugs" for asserting that not only is a return to an international gold standard necessary to restore the global financial system, it is an eventuality. Greenspan and the WSJ get away with it because they are the WSJ and Alan Greenspan. Who are we but a bunch of fruitcakes who backed up the truck and bought gold at $270 in 2001? What do we know?

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Another year or two must pass before the collapse of global economies motivates bold policy moves to address the root of the problem, how to deflate all of the excessive debt. Even then the question remains: without dominant economic and political leadership, who can heard the cats–the US, the EU, Japan, China–who may be fighting like cats in a sack, to a mutually beneficial accommodation when the costs and benefits are unequal? Yet the alternatives are either a new circular firing squad of competitive currency devaluation or ongoing destruction of economies around the world by debt deflation.