Joe Weisenthal writes:
"The last few years have seen a major ideological battle take place.
"On one hand you have established economists, who believe the government has tools at its disposal to address a crisis. These tools include deficit spending and a violent expansion of the Fed's balance sheet.
"Conversely you have critics who slam the arrogance of economists and central planners, and who have predicted that all of this economic acrobatics would result in an economic collapse, hyperinflation, and an explosion in the price of gold. Gold is important to their worldview, because it represents a quasi-money that's not tied to any government or central bank.
"Investing in gold is a rejection of government money and finance. Money flowing into gold-related assets represents a belief that rocks (however shiny they are) are a better place to invest than human endeavors (like stocks)." ...
"...ultimately, the decline of gold and the rise of stocks is a big trend that everyone should cheer.
"The huge corpus of economic research, which has informed the US' efforts to stimulate the economy, is not a pile of garbage. You can do a lot without blowing things up, as the goldbugs claimed would happen.
"And more broadly, this represents a breaking of the fever, and perhaps a return to thinking that humans aren't such a horrible disappointment."And of course, Paul Krugman has a few things to say on the subject.