Gold Standard

Two weeks ago marked the 60th anniversary of a prescient essay (pdf) promoting gold as redeemable

The Great Depression would have been worse without its only saving grace: all goods were cheaper than before. The major mistake of Hoover and FDR was in thinking that low prices were somehow the cause of the Depression rather than the effect.

Thus, to say it all in one sentence, the threat of massive deflation can be eliminated, the threat of inflation ended, and the actual and potential domain of economic freedom greatly expanded, for $11 billion — an $11 billion that would not even be an out-of-pocket expense to anyone but merely a balance-sheet charge on the books of the Federal Reserve System when it deducted its gold holding from its balance sheet and added it to the balance sheets of the banks.

Under its current leadership, the Federal Reserve is looking more and more like a Banana Republic central bank

The new issue (on sale today) of Worth magazine features an article on “A New Golden Age” by Nathan Lewis which is a nice reca

For the present and the foreseeable future, there is probably nothing that will stop the Fed from continuing with its inflation.

Control-freak politicians abhor gold because it ignores them; it won’t do what it’s told.

Ron Paul explains his position on gold money:

Because of the current economic and political climate, it is important to understand what we can do — and what we cannot hope to do in the short run.

So long as prices are flexible, any amount of money can "do the job.