Gold is the global safehouse

While Helicopter Ben believes his Helicopter Money will save the world, most people in the world realize the absurdity of his apparent belief that gold is no longer relevant in today's "global economy."

Some excerpts from a November 19, 2008 Reuters article by Frank Tang:

Global demand for gold jumped 18 percent year-over-year to 1,133.4 tonnes in the third quarter, reversing a weaker trend earlier this year as investors hoarded gold bullion coins and bars and jewelry buying rose, the World Gold Council (WGC) said Wednesday.

FWIW, distinguishing between jewelry and bullion / bars is, in part, irrelevant. I lived in Vietnam for three years and have spoken with many non-native born Americans, particularly from China and India. Many people around the world buy jewelry for both the beauty and the investment.

The story continues:

Inflation worries and a drop in gold price during the third quarter have triggered strong buying of physical gold coins and bars, leading to shortages among bullion dealers in many parts of the world, WGC said.

"A lot of people see these different bailout rescue plans as having major inflationary implications for the big economies of the world, particularly in the United States but in Europe as well," Milling-Stanley said.

Helicopter Ben apparently subscribes to The-Inside-the-Beltway-School-of-Thought that people are stupid and will do as they're told. Furthermore, it seems most central planners central bankers from the "developed world" have the same arrogant attitude.

But they're wrong. Around the world, people know that money doesn't grow on trees... and when it does, they brace themselves.

Fiat money doesn't work. We need a return to sound money.

Tim White