The Emerging New Monetarism: Gold Convertibility To Save The Euro

To all my previous skeptics on gold, you can go screw yourselves.  Your Keynesian ship is sinking.

http://blogs.forbes.com/ralphbenko/2011/06/13/the-emerging-new-monetarism-gold-convertibility-to-save-the-euro/

Zerohedge blasts Keynesian economists

The article pertains to the Chinese depegging of the yuan against the USDollar, but Tyler Durden, the alias of the founder of zerohedge.com, has some interesting commentary on governments, academic economists, and central bankers.

http://www.zerohedge.com/article/euro-creator-mundell-blasts-cny-depegging-may-erode-stability-global-and-chinese-economies

Which in turn leads us to just one question - how long before America's universities stop teaching economics and expose it for the sham science it is and always has been, and out its professors, as nothing more than hollow charlatans preaching a gospel of Keynesian lies.

Since Central Bankers all fall under the "economist" umbrella, as it is all too clear even to the remaining money printers out there that the days of extend and pretend are over, and everything is just empty rhetoric to assuage the masses, and assorted political puppets, as the terminal winddown accelerates. We look forward to, and gladly will be entertained, by many more such hours in which the economist and bankers of the world increasingly turn on each other as the last days of Keynesianism arrive.

Shocking, but revealing quotes from the Fed

In rare moments of candor from Federal Reserve officials:

"The last duty of a central banker is to tell the public the truth."

— Alan Blinder, Vice Chairman of the Federal Reserve, in an interview on The Nightly Business Report on PBS, 1994

Dallas Fed President, Richard Fisher, espoused [in a rare moment of clarity and candor] back on April 16, 2007,

“I have spoken in previous speeches of our “faith-based currency,” a term I use only slightly tongue in cheek. The dollar—like the euro, the yen, the British pound and other currencies—is what economists call a fiat currency. It is backed only by the federal government’s power to raise the revenues needed to meet its obligations and by the rectitude of the U.S. central bank. If the market were to lose faith in either assumption, the dollar would be debased.”

This is an article about Robert Mundell, "Father of the Euro":
http://www.dailymarkets.com/contributor/2008/10/20/china-should-buy-all-imf-gold-father-of-the-euro-robert-mundell/

"China Should Buy All IMF Gold Says “Father of the Euro” Robert Mundell

Robert Mundell, the Nobel Prize-winning economist from Columbia University who is regarded as the inventor of the euro told the annual fall dinner meeting of the Committee for Monetary Research and Education (the CMRE) in New York that China, with its huge dollar surplus, has a great interest in buying gold to hedge its dollar exposure but is unlikely to do anything disruptive to the world economic order.

Mundell proposed that if the International Monetary Fund really does sell its gold, as is occasionally proposed, China should purchase all of it. Since Mundell is officially an adviser to the Chinese government, presumably it already has heard this suggestion from him."