Today I read this article written by the father of Warren Buffet, Hon. Howard Buffet in 1948.
The issues presented then are as important today as they were yesterday.
Take a look at these 2 charts.
The first is a weekly oil chart, where I marked a range from September 2000 to December 2001
And here is the same chart, but not denominated in US$, but denominated in Gold. Meaning this chart tells you how much Oil would cost, if we still had the right to redeem our currency in Gold.
(Please ignore that this chart is labeled EUR #F. I just used the Euro to have the correct pricescale to display the Goldoil chart)
As you can see, I marked the same range on that second chart, and we just crossed the 2nd target on that Goldoil chart, while we are way beyond that on the Oil/USD chart.
Oil would still be affordable would we back our currency with something of universally agreed upon value.