Hoisted from the comments:
Department of "Huh?!": Unclear on What Central Banks Are Department: Grebmörts said: You are being disingenuous. You know damned well why Steil thinks that it's a "big problem". He's a wingnut (http://delong.typepad.com/sdj/2009/02/council-on-foreign-relations-wingnut-watch-benn-steil.html). Deep inside his brain, beneath his primate neocortex, beneath even his reptilian basal ganglia, there stands a goldbug homunculus crying out "Bullion! Bullion! Must have bullion!"
The real questions are how does a guy get a doctorate from Oxford while preserving that level of primitive thinking, and why does the Council on Foreign Relations snap up these clowns? Wish I knew.