Last night we had Steve Forbes on CNBC's
and he is pining for the gold standard to be
reintroduced. (Incidentally the gold standard would ultimately
bring the price of gold (
[caption id="attachment_74213" align="alignright" width="300"
caption="Forbes: "For the first time in a long time, we as a nation
are consuming wealth rather than creating wealth.""]
Steve Forbes is justifiably sick over U.S. monetary policy, and
thinks that in the nation's service, Ben Bernanke ought to resign
at the end of the year as a Christmas present for the nation.
Interest rates should be going higher, not lower, to encourage
putting capital to work, rather than punishing the good guy who has
not been irresponsible with his checkbook and levered up.
Financial oppression has been carried out and without real
transition in monetary policy, we continue to punish -- not
help the middle class.
The status quo is not working and should not be endorsed.
Rewarding irresponsible credit policy and behavior is backward.
Yes, the Fed is targeting the stock market with its policy and
the wealth effect does work. But true wealth can only be created by
rewarding proper allocation of capital, and making capital worth
I quote Steve Forbes:
"What the Fed is doing through its 'binge buying' of bonds is
enabling Washington to consume our national wealth. Instead of
creating new wealth we are beginning to destroy that which exists.
No wonder tens of millions of people feel-rightly-that their real
incomes are declining and their financial situations are coming
under more pressure. In real terms the stock market is lower today
than it was in the late 1990s, and even in absolute terms it still
isn't where it was in 2007."
This is dead on. I'm tired of underwriting with my tax dollars,
a system that rewards the people who haven't played the game well,
or never should have been in the game.
Watch the full video of Steve Forbes (including a Bill Gross