Recently declassified memorandum from Fed Chief Arthur Burns to President Gerald Ford:

From the Desk of Gerald Ford-Declassified

Category: Commodities, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “1975 Question: Should Central Banks Be Free to Buy Gold?”

  1. w says:

    It’s a bit mean not to acknowledge zero hedge as the source don’t you think?

    What is it with bloggers these days?

    W

  2. David Merkel says:

    Interesting cast of characters cc’d at the end. Greenspan, Seidman, Simon, Kissinger… also interesting to see how much they cared about French opinion at the time, and the still-prickliness in Congress with some over leaving the watered down Bretton Woods Gold standard. Also the willingness to trade one issue for an unrelated issue.

    We are still feeling the effects today of going off the gold standard. Governments have not learned what they really want monetary/currency policies to be — they overstimulated for 30-35 years, and now we are in the tank over much of the globe.

  3. w,

    the story has been around, see also http://clusty.com/search?input-form=clusty-simple&v%3Asources=webplus&query=Recently+declassified+memorandum+from+Fed+Chief+Arthur+Burns+to+President+Gerald+Ford
    ~~

    David,

    to your observation: “..the still-prickliness in Congress with some over leaving the watered down Bretton Woods Gold standard.”

    Now, ~30 years later, CBs buy/sell/lease Gold with abandon. Time, Memory’s greatest adversary, especially when the ‘young ‘uns’ are never taught..

    and, this: “they overstimulated for 30-35 years, and now we are in the tank over much of the globe.”

    one Man’s ‘overstimulated’, is another M*n’s ‘Financial Strip-mining’..no wonder the ‘tank’ is so deep..

    also, w/this: “Governments have not learned what they really want monetary/currency policies to be ..”

    it, too, is a matter of perspective. from here http://www.policestateplanning.com/cfr.htm
    it’d seem that the have learned, and rather well, at that..

  4. Pete from CA says:

    “Liquidity creation of such extraordinary magnitude would seriously endanger, perhaps even frustrate, our efforts and those of other prudent nations to get inflation under reasonable control.”

    We have come a long way…