Here are some priceless gems from a recent conference of our de facto One World Government organ:

Large parts of the financial markets have come to be entirely detached from the activities of the real sector of the economy. Governments and regulators underestimated risk and pursued excessive deregulation, based on a blind faith in the efficiency of free* financial markets.

The crisis proves that free* financial markets do not lead to optimal social and macroeconomic outcomes. As a consequence, the balance between private activity and state involvement in the financial sector beyond the crisis needs to be revised fundamentally.

The reform of the international monetary and financial system should include:

• A new international reserve system that does not use a national currency as a reserve asset.
• A new international monetary system, based on multilaterally agreed principles and rules.

I guess our “wise” rulers of the world haven’t heard about a very stable, optimal international monetary system that’s been around for over a thousand years. It’s called GOLD.
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*Would some kind LRC Blog reader please email me to let me know just exactly where these free financial markets are that the UN refers to in this report?