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# Wednesday
- URL: https://thedailyeudemon.com/23629/
- Published: 2012-03-21T06:20:54.000Z
- Updated: 2012-03-21T06:20:54.000Z
- Author: Eric Scheske
- Tags: Economics, Miscellaneous, #wpChunk

![](https://storage.ghost.io/c/ea/fd/eafdb338-c9b6-4f87-8363-78ab94cc3a18/content/images/wp-content/uploads/2009/01/gold-coins-13-300x145.jpg "gold-coins-13")

The Ben Bites Back

Bernanke has been slashing back at Ron Paul and proponents of a gold standard. He says a gold standard handicaps the government's ability to address economic conditions. [Link](http://www.reuters.com/article/2012/03/20/us-usa-fed-gold-idUSBRE82J17A20120320?ref=thedailyeudemon.com). [The left-wing *Atlantic* loves it](http://www.theatlanticwire.com/business/2012/03/bernanke-schools-ron-pauls-potential-fans-gold-standard/50120/?ref=thedailyeudemon.com), saying Bernanke is "schooling" his opponents (the colloquial term has two meanings: (1) imparting knowledge; (2) dominating opponents--you can guess which one the *Atlantic* means).

The problem is, the arguments Bernanke is (apparently) spouting are vapid. He's saying the gold standard after WWI didn't work that well. He's right, but the post-WWI "gold standard" wasn't really a gold standard at all. He says it ties government's hands to address crises. Sure, but who causes the crises in the first place (that debate could rage for a few more centuries and cuts to the heart of the argument: are markets more efficient than governments?).

I do, however, tend to agree with Fed expert Allan Meltzer, who says a gold standard is a good idea, as long as the rest of the world gets on board, too. Otherwise, gold would flow out of our country faster than herpes out of a sorority girl. I'm not sure I see a way around that problem, so for now, a gold standard is a pipe dream.