The protracted global economic crisis has awakened the long–dormant debate about whether the United States or other countries should reinstate some form of gold standard. While not surprising given that there is now general agreement that excessive money and credit growth played a key role in the near collapse of the global financial system in 2008, in fact a return to gold is inevitable at this point. John Butler makes a compelling case in this book that there is simply no other way to restore a sufficient degree of credibility and trust in the dollar, or other major currencies for that matter, withouta return to some form of gold standard.
Already there are a number of major countriesexpressing concern about the stability of the dollar. And concern is increasingly giving way to action. As the dollar′s role gradually declines, global monetary arrangements are likely to become increasingly multipolar, as there is no single currency that can realistically replace the dollar as the preeminent global monetary reserve. As students of economic history will note, it was precisely a multipolar world amid rapidly growing international trade that usheredin the classical gold standard in the 1870s. The world′s 40–year experiment with purely unbacked fiat currencies is thus rapidly approaching its conclusion.
This book, however, goes much farther than predict a return to gold. It explores just what the transition might look like, including both orderly and disorderly scenarios and drawing on historical examples where relevant. It considers to what extent the price of gold will likely rise as it becomes remonetized. Most important, it prepares the reader with practical investment advice for the coming return to gold, including thoughts on interest rates, exchange rates, credit spreads, equity market valuations, and risk premia for assets in general. As such, John Butler provides not only a compelling vision of the future, but also a detailed road map for navigating what is likely to be the most challenging investment landscape in generations.
PRAISE FOR THE GOLDEN REVOLUTION
“John Butler provides much illuminating detail on how theworld′s monetary system got into its present mess. And if you′rewondering what comes next, this is the book to read.”
Bill Bonner, author of the New York Times bestsellers Empire of Debt, Financial Reckoning Day, and Mobs, Messiahs and Markets
“John Butler has written an indispensable reference on the subject of gold asmoney. His book is a combination of history, analysis, and economics that the reader will find useful in understanding the use and misuse of gold standards over the past century. He breaks the book into a long series of essays on particular aspects of gold that the reader can take as a whole or in small bites. It is technical yet accessible at the same time. The Golden Revolution is a useful and timely contribution to the growing literature ongold and gold standards in monetary systems. I highly recommend it.”
James Rickards, author of Currency Wars: The Making of the Next Global Crisis
“In The Golden Revolution, John Butler makes a powerful case for a return to thegold standard and offers a plausible path for our nation to get there. Enlightened investors who blaze the trail will likely reap the greatest reward. For those still wandering in the dark, this book provides necessary light to keep you headed in the right direction.”
Peter Schiff, CEO, Euro Pacific Precious Metals; host of The Peter Schiff Show; and author of The Real Crash: America′s Coming Bankruptcy How to Save Yourself and Your Country
“John Butler′s historical treasure trove empowers the reader tounderstand, prepare, and act. To have a chance to emerge unscathedfrom financial turmoil, join the Golden Revolution. I have.”
Axel Merk, Merk Funds; author of Sustainable Wealth
“The Golden Revolution is another indispensable step on the road map back to sound money. John Butler′s experience of the modern ′fiat′ banking world, combined with his understanding of the virtues of a disciplined monetary system, allow for genuine insight into the practical steps that could, and surely will, be taken to reestablish gold as money.”
Ned Naylor–Leyland, Investment Director MCSI, Cheviot Asset Management
“Ex scientia pecuniae libertas (out of knowledge of money comes freedom).John has used his exemplary knowledge of money to lay out a cogent framework for the transition of society based on fiat money to a more honest society forged by gold. He has taken complexity and given us simplicity. Monetary economics and its interrelationship with geopolitics, finance, and society is extraordinarily complex, but he has managed to assimilate a vast array of information and distill it in a simple and thoroughly thoughtful framework. That is an art many academic writers never achieve.”
Ben Davies, cofounder and CEO, Hinde Capital
About the Author
John Butler worked for over 15 years asan interest rate, foreign exchange, and commodity strategist at major banks around the world before founding Amphora Capital, an independent investment and advisory firm, in London. He has written extensively on financial topics, and his work has been cited in the Financial Times, the Wall Street Journal, and the Frankfurter Allgemeine Zeitung, among other publications. He is also the author and publisher of the popular Amphora Report newsletter and is an occasional speaker at global investment conferences. He resides in the English countryside with his wife and four children.
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