James Rickards: gold is money

Watch the full 42-minute video at http://www.goldmoney.com/rickards-turk-interview. James G. Rickards (http://www.tangentcapital.com) and James Turk, Director of the GoldMoney Foundation, talk about the potential for hyperinflation as the US government continues to rely on debt, instead of revenue, to finance an increasing portion of its outlays. Jim Rickards sees the potential for both deflation and hyperinflation and explains that it will depend largely on the actions of the Fed, with Bernanke leaning more in the direction of more money printing. They talk about the value of gold and discuss how to measure it. Both agree that gold is money and as such should be compared to measures of money supply to see whether it is undervalued or overvalued. In this way both were able to tell that gold was overvalued in the early 1980s when it was priced at $800 per ounce.
This interview was recorded on August 4 2011 in London.