Subject: Re: Fwd: Gold v. CPI graph
To: Jude Wanniski <firstname.lastname@example.org >
From: Ben S. Bernanke, 11:50 am, 2/27/2005
Thanks for the interesting graph. I do check the gold price and gold trends every day, as part as an overall program of tracking the inflation forecast. Ben
From: Jude Wanniski <email@example.com
To: Ben.Bernanke@* * * * *.gov
Subject : Fwd: Gold v. CPI graph 02/24/2005 04:12 PM
I'm going to Lisbon next Thursday for a NATO conference, one of two Americans invited to discuss various issues affecting countries on the Mediterranean. I'll be discussing the problems being caused by the floating currency and will of course criticize the Fed's current policy. Here is a chart I will hand out to the 40 participants, very simply showing the dollar/gold price since 1947 against the CPI. He can see that all "inflation" put into motion in earlier years had been absorbed by June 30,
2004, which in our model tells us the funds rate of 1% was perfect, exactly where it was back in 1958. See what I mean?
PS I'm glad you are staying at the Fed. More action there, especially if you come 'round to my way of thinking on gold's information content. I'm getting client queries about why you are not saying anything to indicate you are coming around.... I just tell them I'm disappointed in you so far, but a light bulb may go off over your head any day now.