Liberal WashingtonPost blogger Ezra Klein who earned himself a spot in SD’s Hall of Shame in January when he bashed gold stating that the metals is worthless because not only can you not eat it, but you also cannot build your house with it or use it as ammunition, is back at it again.

Commenting on the Republican Party’s announcement last week of a Gold Commission to look into the return of a gold standard in the US, Klein states that the policy isA Clown Idea, Bro‘.

Actually we happen to agree that a gold standard is ‘a clown idea, bro‘, but not for the reasons Klein has in mind.  What we actually need is not a gold standard, but the return a bi-metallic gold AND SILVER standard.

As you might guess, Klein has a different reason for calling a return to a gold standard ‘a clown idea.   He states that inflation is about as low as it’s ever been‘ and that inflation is expected to remain low.   Apparently Mr. Klein has absolutely zero understanding of what inflation actually is (inflation of the money supply, which this chart begs to differ with Mr. Klein that inflation is as low as it’s ever been) or personally purchases any basic goods such as food or gasoline whose resulting PRICE INFLATION have been soaring the past 10 years.


Klein goes further:  ‘There’s no inflation problem. The head of the Federal Reserve was originally appointed by George W. Bush and is credited by most observers as having headed off a potential Great Depression through creative monetary policy. And so what does the Republican Party want to do? Well, according to a draft of the party’s platform, they want another Gold Commission.’

Yes Ezra, your hero (who we prefer to refer to as The Bernank or the ChairSatan) headed off a potential Great Depression in 2008 through creative monetary policy.  He, with the help of Vampire Squid Alum Hank Paulson stole $700 billion from US taxpayers and gave it to JP Morgan, Goldman Sachs, AIG, Morgan Stanley, CitiGroup, and Bank of America.
You are correct that this $700 billion theft as well as QE1 and 2 temporarily headed off an imminent Great Depression…essentially kicking the can down the road for a few more years at the cost of a MUCH MORE MASSIVE AND DEVASTATING COMPLETE DEBT COLLAPSE when the end of the road is reached.

Klein also argues that were a gold standard re-instituted, the Fed would have little ability to act as a lender of last resort to the banking and financial system. The kind of liquidity injections it made to prevent the financial system from collapsing in the autumn of 2008 would become impossible because it could provide additional credit only if it somehow came into possession of additional gold. Given the fragility of banks and financial markets, this would seem a recipe for disaster.‘  He concludes that ‘proponents paint the gold standard as a guarantee of financial stability; in practice, it would be precisely the opposite.

Actually Mr. Klein, a gold standard would provide zero guarantee of financial stability (see the roaring 20′s and the subsequent Great Depression)- a free floating monetary system of gold and silver along with regular debt jubilee’s are the only solution to provide long-term financial stability.
What a gold standard would do however is help prevent the common man’s blood, seat, and tears being lifted out of his back pocket quiet as easily through the Central bank theft of inflation.

Something tells us Stephen Sondheim had Ezra Klein in mind when he composed Send in the Clowns in 1973.
Click here for Ezra’s missive and 2nd effort worthy of enshrinement in the SD Hall of Shame

  1. Greed is a very strong emotion and unfortunately there is plenty of it to go around.  I don’t see any implementation of a gold and silver standard unless the powers to be realize that the game is truly over and everyone finally understands what has happened.  Losing the ability to print greenbacks out of thin air and replenish the coffers of less than legal trading organizations will be a hard tool to do without.
     
    Until the public’s financial wealth is totally destroyed, the truth told and it is finally comprehended by each man, woman and child, it is doubtful of a change.  The change would mean free markets and sound finances and that is a dream at this point.  I’m sorry I am so skeptical but human nature is a hard thing to overcome.  Just read the Old Testament to understand the measures taken by God Almighty to change human behavior.  I think He would have to decide to play a huge roll in any quick changes.  I pray that He does.

  2. Over the last 30 years, the growth in the money supply has grown exponetually in huge volumes. It’s probably several tens of $trillions in official data for only the major nations. It could be in excess of a hundred trillion over the last few years years alone, excluding the derivatives. The monetary growth is like umpteen multiples over the time span. Normally, the gradual growth in monetary aggregate would be accompanied by gradual new gold output to match it. The fiat currency system has permitted the expansion of social system networks. It has permitted the series of asset bubbles and busts, a cyclical phenomenon blessed as good by the clownish central bankers. It has permitted unchecked war aggression, complete with private profiteer motive. It has permitted magnificent bond fraud and counterfeit of both bonds and cash, the chief $100 bill violations coming from Langley and Tehran. Just last 2007, the USDept Treasury complained about missing $100 bill templates, a firm finger pointed at Langley, where independent income sources have long been desired and achieved. See the narcotics monopoly they command, with major platforms in Cambodia, Yugoslavia, and Afghanistan over the decades. So the false argument of adequate gold supply is trumpeted, but in ignorance as they reveal the very reason why gold should be priced at multiples higher. If the expanded monetary aggregate (money supply) were to be properly reflected in the price of gold, its price per ounce would be somewhere between $10,000 and $15,000 easily. So the hack argument is put forth on occasion. The rebuttal is that the torrid growth of new money without basis would justify a gold price almost ten times higher, at which point the shortage of gold would not be so acute.
    Jim Willie CB, “the Golden Jackass”.

  3. “The head of the Federal Reserve was originally appointed by George W. Bush and is credited by most observers as having headed off a potential Great Depression through creative monetary policy.”
     
    I agree it’s a creative monetary policy. They’re creating it left and right!

  4. Ezra Klein?
    This is the same guy who said, “Not everything the Nazis touched was bad. Hitler was a vegetarian. Volkswagen is a perfectly good car company. Universal health care is a perfectly good idea. Indeed, the Nazis actually did a pretty good job increasing economic growth and improving standards of living (they were, many think, the first Keynesians, adopting the strategy even before Keynes had come up with it), pushing Germany out of a depression and back into expansion.” 
    And this is the same guy who said, “…but the Constitution is not a clear document. Written 100 years ago, when America had thirteen state….”
    Thus, his statements make perfectly clear why he is uniquely qualified to be a columnist for the Washington Post.
    He is a card-carrying member of the juicebox posse, with his jackass wingmen of Matthew Yglesias and Spencer Ackerman.
    Ezra Klein: go soak your head, you grade-A idiot.

  5. Grade A?  WTF?  Brand X would be closer!  ;-)
    Comments like this are up there with the reporter bimbo who once said that “US dollars are better than gold because dollars are backed by the US Treasury and gold isn’t”.  My eyes rolled so bad at that I needed an eye, ear, nose, and throat doc to straighten them out again.
     

    • The reason why that word was brought here in the first place is because Ezra Klein mentioned it first. It’s not a surprise that someone criticizing gold is actually using the word “bro”.

  6. Hi Everyone…
    I just stopped by to laugh my ass off, Ezra doesn’t look so stupid at this point does he? Just imagine if you’d all sold out that day instead of laughing at him. You do know fractions are “real”, insisting in not believing in them or refusing to learn how to do the math is just going to bite you on the ass in the end; the only reason I like silver is because it is a superb conductor of electricity, far superior to gold in fact (and a little better than copper as well). I am absolutely positive that it would be completely useless for me to try to explain fractions to anyone here (you can make one slice bigger, and another smaller… but it doesn’t change the size of the pie); it’s same reason conservatives are mathematically incapable of balancing the budget (they just can’t do the math required… they so clearly explained it last year). All of your math is wrong, has been wrong, will continue to be wrong; clearly the gold “bubble” has popped. I don’t know if the correction is over or if this is just a dead cat bounce caused by idiot individual investors thinking they’re buying in on a good price point; but I sure don’t think it’s going to rocket up from here, maybe you’ll break even in 20 years or so… if you can figure out the math to adjust for inflation that is.
    Sure glad I didn’t buy any of those $5 junk silver dimes over on that Paul site (Bhwahaha!!!)

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