A month ago, I presented the case for why Fed Chairman Bernanke would have strong motivation to launch another round of quantitative easing (QE) before the election. In short, it would save him his job. Now, I didn't predict with certainty that he would do so - only the few men at the FOMC knew that for sure - but it seemed likely. Shortly thereafter, Bernanke not only announced more stimulus, but promised to keep it flowing to the tune of an additional $40 billion a month until conditions improve. As I had written, this is essentially the election...
All the listed "problems" with the gold standard are bullflowers.. a. The amount of gold available is IRRELEVANT - all that is required is that currency be redeemable. The gov't still has gold and can obtain more to back currency (or private firms can issue currency that is NOT counterfeit) b. fiat currency has been an unmitigated disaster - it is the SOLE source of inflation. The ostensible private ownership of the Fed is designed to convince fools to overlook the fact that the Fed is a GOVERNMENT monopoly. Central bank fiat money has been just as disastrous where no such ostensible private ownership exists (which is why "c" is astonishingly NON-factual) Come to the real world!
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