Silver and gold, silver and gold
Ev’ryone wishes for silver and gold
How do you measure its worth?
Just by the pleasure it gives here on earth
Actually according to economist Milton Friedman a lot of people wished for silver and gold as a monetary standard (bimetallism), but the gold standard was slowly and steadily adopted by the world. That is before “fiat” money (currency not backed by a commodity like gold or silver) became the rage and allowing governments to crank up the presses. These are my words not Friedman’s.
No this is not a post about the American peoples’ rejection of Obama/Pelosi/Reid/Washington politics. Many others are having fun welcoming the Republican wave that swept away many notable Democrats…though not nearly enough. Jerry Brown as governor? California you have got to be kidding me. I am holding in a wait-and-see position having been sorely disappointed by Republicans far too many times.
Unbeknownst to many Americans the Federal Reserve (The Fed) had scheduled a meeting today to decide future monetary policy. I find it interesting that they chose the day after a hotly contest mid-term election to meet and announce their policies. The centerpiece of their plan is Quantitative Easing 2 (“QE2”). The Wall Street Journal describes QE2 as: