Loan Modification

The first paragraph of Hu Jintao's response to Question 4 could turn out to be historically important... What's thought-provoking is his claim that "the current international currency system is the product of the past..." it's worth overcoming for a minute our (justified) distaste for the Chinese regime, and pausing to ask this: Isn't Hu in this one respect right? And does the current international currency system of fiat money, with the U.S. as the reserve currency, serve U.S. or world interests?

... get ready for an interesting and important debate over the next months and years on international monetary policy--which, I predict, we'll increasingly see as something that needs to be reformed in the direction of a modernized international gold standard, as part of the broader project of re-limiting government, re-establishing sound money and a sound international financial system, and restoring stable and strong economic growth.