From Port Phillip Insider (Australia)-
Famed newsletter writer James Grant calls the current monetary system a ‘PhD Standard’. It’s in reference to the fact that the US Federal Reserve has something like 300+ economists sporting a PhD on its staff.
Barely a few decades ago, it had none.
Over the past century, the world’s monetary system has moved from a ‘Gold Standard’, to the ‘Gold Exchange Standard’ under Bretton Woods, to a ‘Paper’ standard…and now, to a PhD Standard.
As you know, we favour a money system backed by precious metals. Whether that’s gold or silver is of little consequence to us.
Although, if you made us think about it, we would recommend gold as the standard, seeing as it’s the more valuable and rare commodity of the two.
At the opposite end of the scale to a ‘Gold Standard’ is the ‘PhD Standard’. This is where the world is at the mercy of central bankers, who believe they can use their textbook theories to manipulate the world’s economies.
They believe they can make everything just right by ‘cutting a rate here, printing money there’ and…well…just messing about with things they shouldn’t…