Bernanke Lecture Veers Off Course

Posted by on March 21st 2012 in Bart Chilton, CFTC, China, Federal Reserve, GATA, General Economy, Gold, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

In Tuesday’s lecture by Fed Chairman Bernanke to George Washington University students, the first in a series of four, he “took aim at proponents of the gold standard,” reports Reuters, “saying that such a system handicaps the government’s ability to address economic conditions.”

He also “made the mistake of talking about inflation during his critique of the gold standard,” according to Tim Iacono.  In response to Bernanke’s lecture he produced the above chart, showing that “the hard money days prior to the formation of the Federal Reserve sure seem to be a better alternative to what we’ve had over the last hundred years, inflation-wise, especially when looking at the slope of that red curve since the last vestiges of sound money were abandoned back in 1971.”

More critiques of Bernanke’s talk from the New York Sun, “Bernanke 101,” GATA, “With college kids, Bernanke gets away with dissing gold,”  and Antal Fekete, who invokes Ludwig von Mises to deliver a counter lecture to Bernanke on “The Gold Problem Revisited.”

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