Bernanke's Clownmanship Demonstrates Why We Need A Gold Standard

Yesterday Bernanke gave a speech in which he pontificated like a baffoon about how the Treasury debt limit was the wrong tool to force fiscal prudence.  This is, quite frankly, a stunning display of either baffoonery or complete ignorance, or both.  LINK

The ONLY means by which to systematically prevent the Government from perpetuating and exacerbating its reckless fiscal policies is to have a mechanism in place to put a boundary on the ability of any to Government to engage in spending that is in excess of an country's economic system to support that spending.  Greenspan, when grilled by Ron Paul a couple decades ago about this, arrogantly and proudly proclaimed that the checks and balances provided by well-schooled Central Bank would function in the same manner and impose the same rigid disciplines as would a gold standard.  Thus, according to Greenspan, a gold standard is not necessary and is archaic.  

Well, the record speaks for itself.  How well has Greenspan's statement held up under the test of time?  The answer to that question could not be any more obvious.  The truth is that IF the Fed were functioning in the way that Greenspan proudly announced that it could, we would have never had ANY of the systemic problems which were created and mushroomed like a finanicial nuclear cloud under Greenspand and are now being made worse - at a geometric rate of acceleration - under Bernanke.  In fact, the term "Quantitative Easing" would not be readily found anywhere, even using Google.  And if the gold standard has worked as a formidible economic regulator, then whey did we ever try to "fix" what wasn't "broke?"

And now I see the Fed wants to establish an "inflation target" as part of its policy procedure:  LINK  I'm not sure how they can even begin to talk about what constitutes inflation and how it should be measured unless they can present a credible "yardstick" by which to measure inflation and re-introduce the M3 money supply reporting.  The Government CPI is a complete and utter joke.  In fact, I just laugh whenever there is any discussion of inflation in the media.  It just blows my mind that well-educated, highly paid professionals can sit around their "Roundtable" and engage in serious discussions and offer market views when the very centerpiece of their conversation, inflation per the CPI, is absolutely 100% flawed.  And if the M3 metric was being used to report the money supply, and if every other industrial country uses M3 - or its equivalent - to report their money supply, how come we don't? (hint: that's a strictly rhetorical question because we all know the anwer...).

I know what the rest of the world thinks about the above policies of, and proclamations by, Bernanke:  "Tidal Wave of Gold Demand Coming From China, India as Economies Expand:"  LINK  Meanwhile, while the rest of the world hoovers up the gold and silver that this country is selling to them, our individual States are each looking more and more like Greece.  Add Minnesota to California, Illionois, New York and New Jersey:  LINK

I just never ceases to amaze me that everyone over here is looking at Greece, while our own system is rapidly collapsing...


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