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Former Fed Governor Mishkin Slams 'Paul Bill': Are We in Wonderland?

I plan to use the Mishkin response if I'm audited by the IRS. "Gee, I'd LIKE to open my books to you but that would just be too dangerous. Feel free to go ahead and just trust me on this. Have a nice day!"

Why Gold Is Overpriced

I too was disappointed in this article. Hoping for a well-reasoned argument, all I found was a lot of "let me tell you how I feel". So let me tell you how I feel. I like gold -- it's shiny! But there's something more. Remember Einstein's Theory of Relativity and e=mc^2 ? The 'c' is an changeless constant. Gold is like that except that its value is _always_ growing slightly. The trick is: how do you measure the value of gold? I suggest using the number of loaves of bread that an oz will buy. An oz of gold will buy 500 loaves of bread today, just like it did back in 1920 (gold = $25/oz, bread = $0.05/loaf). Gold appreciates slightly over time because it is consumed (used up) by industry and in limited supply. Gold is relativistic that way. It doesn't really matter what its value is in Zimbabwean dollars (or its cousin the US dollar). And that's why, as the US dollar plummets in actual value, gold will only _seem_ to be expensive at $2000/oz. That would mean that bread would be $5/loaf and that, of course, will never happen!!