Back to the Gold Standard, Again

The Best of the Zola System

At the close of business on August 7, 2009, gold was trading at $959.50 an ounce. Gold, like all other precious metals, is nearing all time highs on the commodity market. Fears of the Weimar Republic with their hyper-inflation and worthless paper money? Modern American are more than likely afraid of gas lines and the years of Nixon and Carter.

A landlord in Cleveland has the fears.  He has decided to take payment in gold coins instead of US dollars. I posted a blog about this return to the gold standard on 9/10/08. With a shaky economy, can this return to hard medal currency be far behind?

As bad as it’s been this past year, it just got worse.  Although it got very little press, 216 Jamaica Avenue LLC v. S&R Playhouse Realty LLC, a case decided on 8/27/08 has just set the precedent for what is to come.  The lawsuit revolves around a parcel of land in Cleveland.  The landlord enforced a clause which stated the $35,000 annual rent had to be paid in US gold coins.  This would increase the rent to nearly $1.5 million per annum.  It seems an outrageous demand to make of a renter but the 6th Circuit Court of Appeals in Ohio said the renter had to do just that, pain in gold…

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