Megan McArdle, a smart journalist, is dead wrong in arguing that the moral of the Greek story is bad for gold. The reason for Greece’s troubles is the failure of the global fiat money regime that McArdle supports as the remedy. With nearly meaningless money, all economies will eventually slump and stagnate and marginal ones will collapse. All enterprise depends on the guidance of reliable money. Money must serve as a measuring stick for enterprise, not as a magic wand for governments. Central banks waving magic wands stultify commerce by reducing most of it to currency speculation and arbitrage. With $5.4 trillion
