I doubt if, long term, the UK will see limited growth. After all, it has its own currency, a big advantage over the Eurozone's ultimate desire to destroy all currencies in the Zone except for the Euro.

And you thought the Fed was tight before. The gold standard will be a disaster. Besides, gold has never been considered the best "gold". Ask the collateral people what is the best "gold". US debt is the best gold. Yes it is an upside down system logically, but undoing it would be a disaster of epic proportions, unless you replace treasuries with something better as collateral. And even that would cause an upheaval. Trump won't get that done.

And Prof, looking at the Great Recession through the eyes of Scott Sumner, NGDP falling preceded a decline in inflation. Everyone is worried about inflation, when really the GDP and capital formation are giving signals that are recession like, and that decline in output would take place months before this fake inflation would crumble.

It still makes more sense to track NGDP than inflation. Inflation is not the leading indicator here.

Still scaring people with inflation falls on deaf ears.

Wow, usually capital formation slows when the Fed is popping a bubble. Since it isn't popping a bubble and capital formation is slowing anyway, that could be a very bad sign.

Time for QE for the people, which is, of course better than QE for commodities. People spend. Commodities raise the cost of living.

Excess reserves just sit there, collecting more and more interest, Gary. Lending is declining. Tax revenue is declining. Commodity prices are declining. Your case for gold in that environment is questionable. That isn't to say there can't be shocks. But most of the shocks I see are to gold, especially now that fiat currency is often backed by sovereign bonds as collateral gold.

Fascinating article to say the least. Interesting for me, the point about the impossibility of jubilee. Clearly though, a mechanism has to be established to give taxpayers a reasonable profit on the debt that is created by government. After all, that debt is used as gold by insurance companies, pensions, banks etc. But that debt being used as gold does require that the economy work. It does require that interest is paid. It does show us that debt as gold in usage as collateral should be paid for by those using it as collateral. Debt is so valuable as collateral that taxpayers should be compensated and they are not adequately compensated. I don't mean that interest rates should be higher, just that some value should be placed on bonds that reflects their value to Wall Street and to the financial system. That is not happening now.

Also, author's point about labor is important. Trump says he wants better paying jobs, but he is undermining labor in almost every decision he is making. He undermines their social security, medicare, health insurance, public schools. Labor is not treated with the respect it deserves. Capitalists need labor to buy their stuff. And pretty soon, if that demand goes away, if effective demand limit is reached per Edward Lambert, there won't be capital formation. Then the author of this article could be proven right. There was always the outlet of war, but now that road leads to mass nuclear destruction.

Wall Street needs to think more about this stuff. Hiding money is just one more tearing at the fabric of society. And certainly hiding money gets you elected president of the USA now. That is a sign of ultimate destruction of prosperity, not the enhancement of it.

The Fed can be more like the BOE. There is fractional reserve banking in the UK as well. I wrote about the BOE here. The Fed does not treat our citizens with near as much respect: www.talkmarkets.com/.../great-recession-coppolas-in-betweeners-and-central-banks