– An Example Of Non-Gold Standard “Price Stability”: A 1 In 1,516,122,879,893,320,000,000,000,000,000 Event (ZeroHedge, Aug, 16, 2011):
Earlier today, at least one economist was ridiculing the gold standard because supposedly while under one, there was “price instability”, despite empirical proof by George Selgin that the Fed’s mandate of ‘price stability’ has been a disastrous exercise in complete futility.
For those who have a shorter attention span and can not be bothered with multi-page, non-bulletized presentations, here is an example of your precious centrally planned price stability:
as Sean Corrigan demonstrates, the swing back and forth in the CHF trade weighted index on SNB (non)intervention in one short week is a 11.5 sigma event, or a 1 in 1,516,122,879,893,320,000,000,000,000,000 event, which without central planning price stability intervention would occur roughly once every several trillion qunitillion years.
And the kicker:
a quick look around today’s markets is chock full of such examples. But yes, aside from the facts, the gold standard is a “joke.”
In the meantime, anyone who took said economist’s advice and went long spam and short gold, is broke about 10 times over in the past two years…