Nouriel Roubini: Gold Standard Fans Are ‘Lunatics and Hacks’

Roubini reveals he has no greater understanding of economics than The Bernank, and is much less eloquent with his word selection to boot.  This headline whore has devolved into a full-fledged stooge of the MSM.
Yup, you’re right Nouriel, it was gold- real physical money, that was the sole cause of the Great Depression.  Just imaging how great the 30′s could have been if they had thought of QE like the Weimar Germans!

Those making public calls for a return to the gold standard are a bunch of lunatics and hacks who are doing nothing but calling for a repeat of the Great Depression, says New York University Nouriel Roubini.
Loose monetary policies have done little to lower unemployment rates and have many saying the U.S. should return to the gold standard, which pegs the value of the dollar to gold.
Supporters say a gold standard, abandoned in the 20th Century, would force the government to live within its means and end inflationary pressures that come with expansive monetary policy.

“That’s total nonsense.” Roubini tells Yahoo’s The Daily Ticker, calling the gold bugs who support a return to the gold standard a “bunch of lunatics and hacks.”
A gold standard prevents authorities from stimulating the economy when needed.

One of the major causes of the Great Depression was the existence of the gold standard,” Roubini says.
By limiting the amount of money authorities can put into circulation, authorities render themselves powerless to act as a lender of last resort when needed.
“They restrained the ability of Central Banks to provide lender-of-last-resort support to their banks, created tight money — it created bank runs, and lead eventually to the Great Depression,”

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