The Ultimate Bubble is Paper Money [goldswitzerland]
October 19, 2012 Leave a comment
Keith Weiner, the head of The Gold Standard Institute USA, explains in this exclusive interview for Matterhorn Asset Management, among other things: why he sees a permanent backwardation in gold coming; the role of gold as the cornerstone of investor’s portfolios; and the specific kind of gold standard he envisions for the future.
By Lars Schall
Keith Weiner has been a technology entrepreneur. He was the founder of DiamondWare, a VoIP software company, which he sold to Nortel in 2008. He is an adherent of Ayn Rand’s philosophy of Objectivism, and a student at the New Austrian School of Economics. Recently, he received his PhD under Professor Antal E. Fekete. Mr. Weiner is currently a trader and market analyst in precious metals and commodities.
Lars Schall: A few days ago you received your PhD from The New Austrian School of Economics. What have you done for it?
Keith Weiner: That’s a good question to start with, thank you. For several years I’ve been studying with Professor Fekete in monetary science and developing my own ideas. The school, as you may know, emphasises spreads more than prices and spread is the difference between two prices. For example, if you distribute eggs, you buy eggs at the farm and you pay the ask at the farm and then you bring them into the city. And you sell them in the city on the bid. So, the bid in the city minus the ask at the farm is the spread that you as the entrepreneur, as the distributor can earn.