A post on some of the nonsense economic talk going around.
First a good video on austerity and the fallacy of composition.
Second, I just wanted to address this little slice of insanity from World Bank President Zoellick:
The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values.... Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today.”
It is, as DeLong points out, just plain wrong. Gold is not an alternative monetary asset. It is a commodity. That's it. I blame the internet for all this gold standard craziness. Suddenly every schmuck with access to google considers themselves an economist and the romantic notion of gold tricks people into thinking it's the solution to all our problems. They forget the problems that gold actually caused us and simply refuse to acknowledge the impossibility of going back to a gold standard. This economics "dark age" is starting to worry me.
4 days ago