Dead Man Still Speak

Bullion Committee 1810 - Headed By Francis Horner, if he still alive today he might be either hated or love by some of the Central Banker especially for those who lifted gold as a regulator and value of paper money. Indeed dead men do speak, it's vibration echo from and through the grave.

Bullion Committee was set up by British Parliament in the year 1810, rampant inflation had visited Britain those day. This Committee was set-up to look into the reasons and also find solutions to solve the inflation problems that threatened Britain during that times.

Below are some of the summary or excepts of the finding:-

1. Gold is not only the standard for the domestic currency, "bullion is the true regulator both of the value of a local currency and of rate of exchange."
2. The great evil growing out of the neglect of the above was the price inflation that was cutting so deeply into the purchasing power of money.
3. The solution therefore is to restore convertibility of the currency into gold at earliest possible moment ie money supply or rate of exchange must be back by gold.
4. The price of gold rose because of the "excessive quantity of circulating medium," in short too much money in circulation in the economy.( Fed will not like to read this or their version of "helicopter money" will be fly out of the window ).

Results of the finding by 1821, gold standard was established and enshrined in official legislation became the model for the rest of the world to follow for nearly 100 years.

By the way Nixon lifted the gold as regulator in the early 70's since then inflation in the US had been northwards bound, today problems that are besieging the US financial markets can be trace way back to Nixon era.

Gordon Brown sold almost all the gold in Britain treasury at US250/oz few years back, he should have visited Francis Horner grave to "hear" him speak before deciding to sell it because at current value of US800/oz ,the loses .......Ouch!

Gordon Brown should provides Fed Chief Bernanke the location of Francis grave giving him an opportunity to "listen" from his grave, it might then help him to think twice before using "helicopter money" to solve the financial woes at Wall Street. Fannie and Freddie nationalization will cost US tax payer US200 billion( estimated figure, actual figure can go up to US5.7Trillion ) ), where to get the money? US Treasury by issuing more treasury bonds (I.O.U)or Feds which got this technology call printing machine it cost less then US5 cent to print one US100 bill. With already nearly 17% annualised growth of money supply pass few years and adding this rescue figure, hard times it's definitely ahead of us.

Will it cause inflation after this nationalizing exercise? Kindly pay a visits to Francis Horner grave to find out, "dead man do speak" don't they!

Buy Gold!

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