Gold prices are subject to manipulation in a variety of ways from the private sector, central banks, and governments. To see how gold fits into markets, we must look to see how "official" and "unoffocial" prices for the yellow metal are being shaped.
The Fed often uses the "natural rate" of unemployment to determine whether or not it should raise interest rates. But as with so many metrics the Fed uses, this one is based on arbitrary measures that can be manipulated to suit Fed policy.
Surprisingly, Marx and Lenin were occasionally insightful when it came to the problems and consequences of fiat money in the economy. In principle, they opposed unbacked currency. But of course, once communists seized political power, those principles went right out the window.
Like Argentina and Venezuela, Greece's economy is plagued not just by institutional problems, but by a pervasive anti-capitalism that continually cripples the ability of individual Greeks to build wealth and a solid economy.
The Greek government has spent freely for many years to enrich itself and its special interests at the expense of taxpayers. And now, it is not the Greek politicians who will suffer, but the taxpayers who face a future of unending debt payments.
The Greek crisis illustrates the latest failure in Europe's attempts to build a lasting prosperity through consumption and redistribution of wealth. It's been going on for 150 years, and it remains to be seen if Europe will learn anything from the present crisis.
