Posted on 12/07/2011 1:53:18 PM PST by TigerLikesRooster
Nouriel Roubini’s lapse in Standards
Forbes Dec 2, 2011 – 10:52 AM ET | Last Updated: Dec 2, 2011 11:06 AM ET
By Ralph Benko
“It’s not even a theory; it is a theology.” So Nouriel Roubini, with his best Strangelovian inflection, describes the gold standard to Yahoo Finance’s The Daily Ticker, and in doing so displays shocking ignorance of the gold standard and either the work of Ben Bernanke or a presumption that the rest of the world is ignorant.
In slurring supporters of gold as “lunatics and hacks,” Roubini falls into lockstep with other leading defenders of the status quo: Prof. Barry Eichengreen in “A Critique Of Pure Gold” in The National Interest’s September-October issue, Thomas Frank, in the July issue of Harper’s Magazine, calling gold “yet another eccentricity of the right-wing fringe … into the mainstream of American life,” Paul Krugman’s July 6 New York Times blog post, “The Armageddon Caucus”: “Gold bugs have taken over the GOP,” Think Progress’ June 9 report by Marie Diamond stating that “Tea Party groups are determined to make returning to the gold standard a litmus test for GOP presidential candidates. And it looks like they’re succeeding,” and the Roosevelt Institute’s Mike Konczal blogging on April 27, “Conservatives are organizing against a full employment mandate and rallying around the gold standard wing of their party.”
(Excerpt) Read more at business.financialpost.com ...
Bigotry against gold, ping!
It really doesn’t matter what Roubini, or Bernanke, or Krugman think when the US dollar goes the way of Zimbabwe’s.
Look at the recent trend in money supply growth:
Money supply:
M2 - http://research.stlouisfed.org/fred2/series/M2
MZM - http://research.stlouisfed.org/fred2/series/MZM?cid=30
Then check out M0 and excess bank reserves:
Monetary base:
http://research.stlouisfed.org/fred2/series/AMBNS?cid=124
Excess reserves:
http://research.stlouisfed.org/fred2/series/EXCRESNS?cid=123
Hold on to your hats if banks leverage these excess reserves to create new money, which is almost inevitable.
“Inflation is always and everywhere a monetary phenomenon.” Milton Friedman
Keynesian monetary policy has hit a dead end. Bernanke has to keep the metaphorical printing presses running because the US Treasury cannot afford an increase in interest rates. Keynesian fiscal policy doesn’t work either because its multipliers don’t work, either.
Wait until paper “money” won’t buy anything - then see who’s the idiot.
Thomas Frank, in the July issue of Harper’s Magazine, calling gold “yet another eccentricity of the right-wing fringe … into the mainstream of American life,”Yet calling forth trillions of U.S. dollars out of the void to backstop big banks, and the recoup the global investor institutional classes their losses at taxpayer expense is sane, and rational, and mainstream. We're in for an apocalyptic-level inflation burn-off at the end of this twisty road to ruin.
Better start stacking if you haven’t already, boys and girls.
Welcome aboard, Timaeus.
“We’re in for an apocalyptic-level inflation burn-off at the end of this twisty road to ruin.”
Well said. I’ve been taking a beating about the head, neck, face and chest over my metal holdings for, Oh, THIRTEEN YEARS now.
It ain’t braggin’ ifn’ you can do it. *Big Smile*
Please! PLEASE! Give us another FOUR YEARS of this idiocy. I’ll be one Happy Contrarian Camper, LOL! :)
Roubini’s fame got to him....or, his socialistic leanings came out. I noticed this a couple years ago and began to only half take to heart his ‘advice’ on how to fix the economic problems. His solutions are socialistic, imo, and his stance on the gold standard (i.e., strongly against one), therefore, does not surprise me.
Aye.
Aye. :)
When asked whether he'd rather own dollars or euros he responded: "I have a very special stock tip for you. The symbol is g-o-l-d."
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