Among all the recent adverse news surrounding gold, triggered by the latest huge price decline, a few gold enthusiasts are sticking to its bullish views on the precious metal.
New York Times columnist and one of the founders of the "new trade theory," Paul Krugman addresses those bullion supporters in his latest article, explaining why he thinks that America's gold obsession isn't going away, and deconstructing the origin and meaning of what he calls “goldbuggism.”
What do I mean by goldbuggism? Not the notion that buying gold sometimes makes sense…
… being a goldbug means asserting that gold offers unique security in troubled times; it also means asserting that all would be well if we abolished the Federal Reserve and returned to the good old gold standard, in which the value of the dollar was fixed in terms of gold and that was that. And both forms of goldbuggism soared after 2008.
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