| Rueff’s Law, countervailing Keynes, shows that unemployment rises and falls with “net unit labor costs,” which he calculated as worker’s share of national income minus taxes and plus social benefits such as unemployment insurance. Following Rueff’s law, Mueller points out that the Congressional enactment of additional unemployment benefits ensures a slow recovery, as workers will demand compensation comparable to the value of the benefits plus free time. Congress should end the supplemental unemployment incentives promptly in July. More significantly, Mueller also proposes that the US take advantage of the soaring price of gold and plummeting price of other commodities to start paying off the trillions of foreign dollar reserves. By phasing in a new gold standard while commodities are in the basement, we could spur the US economy, revive agriculture and energy, and launch a new global boom. Time-prices show that the collapse of inflation and the ascent of the value of money continues even in the face of the monetary hackers in charge of central banks. Of course, the lock-brained politicians who support shutting down the national economy for a case of the flu could not adopt any so inspired a policy, even if Jacques Rueff returned from the grave to espouse it and Lew Lehrman were elected President or named Secretary of the Treasury. Both on left and right, economists fail to understand that a gold standard would not reduce the money supply but expand it, preventing deflation as well as inflation. Today, we are suffering from an historic commodity deflation. The crash of 2000 was caused not by inflation, but by a massive appreciation of the dollar in a historic four-year deflation. In the midst of a massive technology upsurge as measured by time-prices, there were too few dollars rather than too many. Moving Toward Blockchain-based Digital Currencies As Nathan Lewis showed in his books, Gold: The Monetary Polaris and Gold: The Final Standard, there is no relationship between the amount of the world’s gold and the amount of money. If the price of gold is fixed, money can grow to any needed level in response to the commitments of entrepreneurs to profitable projects. During the Industrial Revolution, while the amount of the world’s gold merely rose merely 3.4 times, the US money supply rose 163-fold. Instead, in the absence of a digital gold standard, investors around the world will continue the move toward blockchain-based digital currencies, ultimately rooted in time. The first one was bitcoin, launched by Satoshi Nakomoto in 2009 in response to the financial crisis of 2008. Also calling for new currencies in early 2009 was the great Chinese central bank governor Zhou Xiaochaun, who appealed to the International Monetary Fund to launch a new “bancor” with a tie to gold. Retiring in 2017 after nearly 20 years in office, Zhou appealed for three key reforms to assure China’s economic future: Ending capital controls, stabilizing the yuan, and embracing free trade and investment. Now, Chinese have declared blockchain as a core national technology and are launching a new digital yuan with a link to commodities, which is a way for timorous economists to intimate a link to gold. The Chinese have led the world in accumulating gold in recent years, but the US still commands the largest reserves. The technology revolution of this era is the rise of blockchain that can mimic the stability and facticity of gold. Enabled by the massive advances in store width technology — millionfold gains in bandwidth and digital storage — the blockchain is a way of addressing the two great hacking crises in the world economy: Some eight billion items of personal data lost to internet hackers and the debauch of global money under the regime of the hackers who dominate the world’s central banks. The entrepreneurs who best fuse the ascent of information technology with the stability of gold will create a new technology gold standard for both the internet and the world economy. It’s happening today and this prophecy is on the case. Regards, 
George Gilder
Editor, Gilder's Daily Prophecy P.S. One of my colleagues made a discovery a while back, one that I'm calling an “outsider trading” scandal. It's a “glitch” causd by Wall Street’s machines and algorithms, and once you exploit these “glitches” you could have the potential to see gains of $1,458, $5,000, and even $6,475. Some in as little as a week’s time... Sometimes in as little as a day. I recorded a special message to talk more about it. Click here to learn more about what I call the “outsider trading” scandal. (You're going to want to hurry though, his next recommendation comes out tomorrow morning at 9:30am and after that you will be too late.) | 
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