The New York Sun has an editorial on hedge fund manager John Paulson's prediction that Gold is going to hit $4,000 an ounce, or that, as the Sun likes to frame the issue, the value of the dollar is going to decline to 1/4000th of an ounce of gold. It's a wonderful editorial, but it leaves out the possibility that Mr. Paulson is talking his book, that is, that he's running around saying these sorts of things in part because he hopes that people will listen to him and buy more gold, therefore driving up the price of assets that he already owns. You can call it reflexivity or a self-fulfilling prophecy or whatever you want, but it takes the issue somewhat down from the level of "the drama of political economy" that the Sun editorial refers to.
$4,000 Gold?
https://www.futureofcapitalism.com/2010/09/4000-gold
by Ira Stoll | Related Topics: Federal Reserve receive the latest by email: subscribe to the free futureofcapitalism.com mailing list