Gibson's paradox and Larry Summers

[ridgel]

Gold hits new record high (measured in dollars):
http://www.kitco.com/reports/KitcoNews2 ... Chtml.html

Larry Summers leaves Treasury:
http://www.bloomberg.com/news/2010-09-2 ... ember.html

Are the two related? Maybe Summers knows it's game-over for the dollar if the zero-interest rate policy continues, and game over for the massive edifice of debt otherwise? He should know, since he wrote a paper on the historical relationship of gold vs. real interest rates in 1985: http://www.gata.org/files/gibson.pdf.

What Keynesian academic will the Obama administration bring in to replace him? No one knows yet but it shouldn't be too hard to find another Keynesian academic to sprinkle holy water on trillion dollar deficits.

[Morgan]

I think the story of dollar is about to end now as most of the analysts saying that zero interest policy will end the dominance of the dollar and no gold coverage has added fuel to fire.