Freud, Gold, the Fed, and the Dollar

Freud and the Fed - The New York Sun: " . . . Mr. Krugman would have his readers believe that the Sun and the Journal have objections to a woman chairman the Fed. That’s because he dasn’t open up the question of the value of the dollar in the terms the framers of our constitutional system intended. The fact is that the founders of America would be appalled at the monetary system that obtains in America today . . . So would the creators of the greenback and the founders of the Federal Reserve itself. One hundred years ago Congress established the Fed on the express condition that, as it was put by the Fed’s leading congressional supporter, Carter Glass, nothing in the bill should be construed as a repeal of the law “providing a gold parity for all forms of money.” We have our doubts about what Keynes himself would have made of a dollar valued at but a 1,300th of an ounce of gold. . . ." read more at link above

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Why Investors Are Leaving Gold for Equities (Video)

Why Are Investors Leaving Gold for Equities?: Video - Bloomberg: "(Bloomberg) -- Bloomberg Economics Editor Michael McKee and Alix Steel examine the rapid decline in the gold market and why investors are turning from the metal to equities. They speak on Bloomberg Television's "In The Loop." June 17"

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US States Promote Gold Bullion

Article I | U.S. Constitution | LII / Legal Information Institute: "ARTICLE I" . . . . SECTION 10. . . No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; . . .

Trust in Gold Not Bernanke as U.S. States Promote Bullion - Bloomberg: "Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender. Arizona is poised to follow Utah, which authorized bullion for currency in 2011. Similar bills are advancing in Kansas, South Carolina and other states. . . . They reflect lingering dollar concerns, amplified by the Fed’s unconventional moves in recent years to stabilize the economy, said Loren Gatch, who teaches politics at the University of Central Oklahoma. “The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” said Gatch, who studies alternative currencies at the Edmond, Oklahoma-based school. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.” Bernanke has pushed interest rates to near zero since the 18-month recession that began in December 2007. The Fed said in March it would continue buying $85 billion in securities each month in a program known as quantitative easing that has ballooned its assets beyond $3 trillion and is aimed at keeping long-term borrowing costs low to support economic growth. . . ." (read more at link above)

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