Bernanke is right that a return to the gold standard would be foolish. What he doesn't show is some of the wisdom about realistic alternatives, such as a modest but continuous growth in the money supply base. Or, possibly a managed growth in the monetary base.
What frustrates me about the Fed's position is that it talks about inflation being the great evil, but did not manage house inflation as part of that equation. This demonstrates a very partial understanding of very basic economic principles to say the least. Housing now is a wasted industry that should have been more carefully monitored by the Fed.
I hate the rotten stupid sounding excuses coming out of Bernanke's mouth. Retake economics 100 if you must, but get it right, I beg of you!
