Professor Disses Gold, Ron Paul
by Robert Wenzel: Jim
Rogers: Bernanke Is Lying to Us
the Sterling Professor of Economics at Yale University, on Thursday
night attacked gold and Ron Paul in one of the meanest comments
I have seen in some time. WSJ reports:
panel Thursday night in New Haven... Nordhaus dismissed notions
of scrapping the central bank, as well as criticism of its chairman,
Ben Bernanke, as partisan and ignorant.
to the gold standard? Give me a break. Were not in Kansas.
This is an integrated world economy, he said. And forget
doing away with the Fed: Every country has a central bank.
Money cannot manage itself.
that Nordhaus doesn't name is, of course, Ron Paul. But calling
Dr. Paul ignorant and partisan is absurd. Dr. Paul is the most principled
man in Congress and is not attacking Bernanke on any type of partisan
basis. He was just as critical of Bernanke and Alan Greenspan during
As far as ignorance,
I'd like to see Nordhaus try and go up against Dr. Paul on the intricacies
of the regression
theorem and the proper
methodology which should be applied to the science of economics.
this about an integrated world? What is more integrated than gold
as a hedge against the money printing of central bankers? Further
what's this "Money can't manage itself" comment? Managed
currency is at the core of central planning. Karl Marx called
for it in the Communist Manifesto. If you want to talk
about ignorance it is Nordhaus' view that money can't manage itself.
It means Nordhaus fails to understand Hayek's deep and sophisticated
meaning of "unintended consequences", which means for
example the development of money as an "unintended consequence",
not planned by anyone. It means Nordhaus has no idea of Ludwig von
Mises' detailed explanation in his book, The
Theory of Money and Credit, of how money developed.
match the record of gold against centrally planned money any day.
In fact, I am willing to exchange all day with Nordhaus the central
bank printed million dollar notes of the Weimar republic, Zimbabwe
and Yugoslavia, each for an "unmanaged" ounce of gold.
When do we start Nordy?
updates the college text Economics,
which was originally written by that other gold hater, Paul Samuelson.
What's not very well known is that while Samuelson spewed hate on
gold as a money, he
made a bundle by being long gold in the late 1970's, through a commodities
trading firm, Commodity Corp., that he was affiliated with.
The words of
one gold hater are now updated by another gold hater. That text
Economics must be one helluva a book. These characters are
simply apologists for the state. They downplay the inflation that
is created by central banks, an inflation which benefits the state.
Murray Rothbard nailed it
when he reviewed a Samuelson edition of the text:
to the specifics of the ninth edition, let it be said that, as
in the case of the preceding eight, the text suffers from the
standard major ills of contemporary American economics: notably
the sterile emphasis on the conditions of a static equilibrium
which never can (and never should) exist, and the repeated sonorities
of the Keynesian model presented without so much as indicating
its major flaws and fallacies. Finally, like its predecessors,
Samuelson's ninth scarcely equips the reader for facing the real
world of ever-accelerating inflation or of the recurring reality
of inflationary recession. No cogent explanation of these burgeoning
and unwelcome phenomena is offered.
with permission from Economic
Economic Policy Journal
Best of Robert Wenzel