Two final thoughts. First, two persons would have reasons to smile at the developments last week. One is the former Federal Reserve Chairman Alan Greenspan, because now the ECB too has openly joined the project of fiat-money debasement that the Federal Reserve began to pursue under his stewardship. While his policies left others with no choice but to follow suit, they did so reluctantly. Now, they are doing it for their own reasons. That must vindicate him, even if the pretexts were lighter in the US. He might also wager that people would have forgotten the Roger Lowenstein article on his own ‘rule of the artistocrats’ proposal in the Federal Reserve meetings held in 2004, available from the Federal Reserve transcripts.Second is the Indian central bank governor Dr. Subba Rao because the turmoil in Europe brought down the price of crude oil. The price of the Indian crude oil basket is now down by about 9% in a week. Not bad for a week’s work. He would not mind wishing for such mini-crises that keep risk appetite and commodity prices on the leash. The former would moderate capital inflows into India and the latter would tackle the inflation (and fiscal deficit) problem for him.Second final thought: in the final analysis, no wonder, ladies and gentleman, the yellow metal is untarnished. There are no reserve currencies left in the world. You shall ignore this message at your own peril. Blogging, tweeting and changing the world can wait. Be smart about your own savings.
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