Dollar outlook isn’t golden

“Buy gold,” we are told by no less an authority than G. Gordon Liddy. “It’s value has never gone to zero,” says an official once in charge of America’s gold hoard, including the bars stored in Fort Knox.

Why investors should find that reassuring is not obvious, but never mind. They have bid the price steadily up past the $1,100 per ounce mark, from around $270 at the beginning of the decade and around $700 when the current crisis in financial markets hit the value of stocks and property.

And a very rich and very shrewd investor is telling friends that he expects the current price to more than double in the next five years.

It seems that investors, or at least many of them, have decided that the Obama administration and the Bernanke Federal Reserve are combining to depreciate the dollar, the former willingly to encourage exports, the latter warily.

Talk of the devaluing of other nations’ paper currencies at one time produced a flight to the dollar, deemed safe from the depredations of rulers trying to shore up their struggling economies by printing money.

Examiner columnist Irwin M. Stelzer is a senior fellow and director of the Hudson Institute’s Center for Economic Policy Studies.

dollarOp Edsop-edOpinion

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Some people are concerned that University of California, San Francisco’s expansion at its Parnassus campus could cause an undesirable increase in the number of riders on Muni’s N-Judah line.<ins></ins>
Will UCSF’s $20 million pledge to SFMTA offset traffic woes?

An even more crowded N-Judah plus increased congestion ahead cause concern

A health care worker receives one of the first COVID-19 vaccine doses at Zuckerberg San Francisco General Hospital on Tuesday Dec. 15, 2020. (Courtesy SFgov)
SF to open three large sites for COVID-19 vaccinations

Breed: ‘We need more doses. We are asking for more doses’

San Jose Sharks (pictured Feb. 15, 2020 vs. Minnesota Wild at Xcel Energy Center) open the season on Monday against the St. Louis Blues in St. Louis. (Tribune News Service archive)
This week in Bay Area sports

A look at the upcoming major Bay Area sports events (schedules subject… Continue reading

Tongo Eisen-Martin, a Bernal Heights resident, named San Francisco’s eighth poet laureate. (Kevin N. Hume/S.F. Examiner)
Tongo Eisen-Martin becomes San Francisco’s eighth poet laureate

Bernal Heights resident Tongo Eisen-Martin has become San Francisco’s eighth poet laureate.… Continue reading

Homeless people's tents can be seen on Golden Gate Avenue in the Tenderloin on Wednesday afternoon, Dec. 16, 2020. (Photo by Ekevara Kitpowsong/S.F. Examiner)
Statewide business tax could bring new funds to combat homelessness

San Francisco could get more than $100 million a year for housing, rental assistance, shelter beds

Most Read