It might be a relatively slow day for the markets, but the Twitterati are abuzz.
Economist and NYU professor Nouriel Roubini (left) doesn’t think much of a rumored Republican party platform that would put us back on the gold standard, which was discontinued under President Richard Nixon.
“Republicans eye return to gold standard & to another Great Depression as the gold standard contributed to the first one,” Roubini tweeted early Friday morning. Reaction was swift from both sides of the debate.
“Yes, that and austerity, German repattiations [sic], no debt forgiveness and financial bubble. Substitute Gold for Euro,” TheLeftBanker tweeted in support.
“Idiot Roubini is blaming Gold Standard for the depression of 1930,” AuditTheFedBenB bluntly dissented.
The gold standard is a monetary system that attaches the value of the dollar to the weight of gold. Nixon decoupled the dollar from gold on Aug. 15, 1971.
In other news, PIMCO Chairman Bill Gross (right) is attempting to provide an outlook for bonds in 140 characters or less.
“Even with QE3, Treasury yields have practical limits,” Gross wrote on Twitter Friday, and that a “1.50% 10-year is a good common-sense bottom.”
In response, The Wall Street Journal reported that Gross drew “a line in the sand for the 10-year yield, seeing only limited room for the rally to continue in benchmark 10-year Treasurys.”
The paper notes Gross told Dow Jones last week that investors should buy five-year and seven-year Treasurys and sell 10-year and 30-year bonds.
“He has been fretting that more QE from the Fed would generate much higher inflation in coming years, which could hammer the value of longer-dated Treasurys,” the paper reported. “Gross and his colleagues have been buying TIPS and gold as inflation hedge this year.”