Sunday, February 8, 2009
Aren't trained seals supposed to be entertaining?
Gibson's Paradox and the Gold Standard by debt apologists Lawrence Summers and Robert Barsky is one of the most tortuous justifications for paper promises ever written. It errs in fundamental ways, primary of which is failing to recognize gold's role as a monetary numéraire. Summers, now in the limelight, has an opportunity to atone for his willful and shameful ignorance. He won't, for his current position is a reward for servicing his masters.