America Priced in Gold

This article gives food for thought.

From Azizonomics


Let’s imagine that the gold standard was not abolished in 1971, and was instead maintained — or, alternatively, assume that only gold is money and that other things are merely paper intermediaries.

What would be the shape of economic data under that paradigm? 

Here’s retail gasoline:

Priced in gold, that’s the lowest it’s been since 1995. How about food?

Priced in gold, food is pretty cheap too, not experiencing the kind of rampant inflation that it has experienced in dollars. What about those US Treasuries that Paul Krugman is worried are sinking to record lows? Here’s 1-3 Year bonds:

Here’s 20 year bonds:

And here’s the Dow Jones Industrial Average:

Priced in gold, it is cruelly obvious that we are in a deflationary depression.

Instead of practicing massage-the-figures pseudo-Keynesian voodoo with Professor Bernanke, perhaps it would be better to take measures to actually increase demand and confidence?