The urgent necessity of sound money, instead of unsound politics
A former economist at the US Federal Reserve says Forget Bretton Woods II - We Need A New Gold Standard:
Too much credit and easy money. Those were the biggest culprits behind this financial crisis. Yet, appallingly, the government's rescue attempt is built on more credit and even easier money. That's like giving a procrastinator a deadline extension. By choosing this course, Washington has steered us on to the "road to Weimar" - the road to runaway inflation.
It didn't have to come to this. And it still doesn't. But the proper remedy will take tremendous political courage: Bring back the gold standard. That, more than any byzantine regulations that emerge from the Bretton Woods II conference this weekend, would provide stability and safety for nations and individuals around the world.
Sadly, current policy seems to reflect a desire to weaken the dollar as quickly as possible.
Discuss, with reference to 1) "the doubling of Federal Reserve credit, the main component of the US monetary base. Since Labor Day 2008 it has risen from $894 billion to $2.2 trillion. That's the greatest monetary expansion in the Fed's 95-year history" -- and 2) Peter Schiff's comments on the inevitable collapse of the dollar.