It’s hard to believe how much has happened over just the last few days, that is, since we loaded everything on a truck as noted here last Thursday and moved it all three miles to the north on a beautiful fall day when the highs were in the 60s. As soon as the sun comes out, I’ll snap another photo and you can see what things look like with about a foot of snow on the ground. (BTW – In case anyone was wondering, we did purchase a sno
w blower but we didn’t buy any gas for it and I’m not too keen on trying to siphon any from our cars.)
Anyway, aside from Ben Bernanke’s remarkable op-ed in the Washington Post about the benefits of higher stock prices and the 15+ percent rise in the price of silver in three-and-a-half days, it seems that the growing global displeasure with the Fed’s QE2 program and World Bank Chief Robert Zoellick’s comments on gold have been making lots of headlines.
Sarah Palin had a dust-up with the Wall Street Journal’s Sudeep Reddy about rising food prices as they might relate to QE2 that began with this item at the WSJ Economics blog. The debate continues to simmer with the obligatory Palin Facebook response here and the equally obligatory WSJ op-ed piece showing up today.
Additional links and opinions can be found here, here, and here - I’m not sure if this is elevating the level of debate, but it certainly sounds louder.
Robert Zoellick’s comments($) in the Financial Times on Sunday about a possible return to some form of a gold standard (see here for the latest) certainly caused a stir and these thoughts too are related to the Fed’s $600 billion QE2 program, what is sure to be a hot topic at the G20 meeting this week in South Korea.
The violent reaction amongst the academic elite to Zoellick’s suggestion to use “gold as an international reference point of market expectations about inflation, deflation and future currency values” strikes me as one of the best examples of hubris amongst economists in some time – see thoughts from Krugman, DeLong, et. al. here, here, and here.
Since this is akin to a priest being told there is no God, their reaction is understandable.
It should be an interesting week and its barely gotten started.
Let’s see, where did we put our snow shovel.