An editorial published in the New York Sun on Monday calls for the United States government to reinstitute a gold standard in order to save the soundness and fundamentals of today’s financial system.
The premise of this argument is the fact that a gold standard would prevent the major financial institutions from playing with taxpayers’ money and taking on big gambles and high risk investments. A gold standard would incite checks and balances on the current monetary and financial system as well as the federal government.
Here is what the editorial writes:
“The way to beat the problem of Wall Street and the banks playing with taxpayer-provided money is not a game of regulatory whack-a-mole. The way to stop this raid on the taxpayers is through the restoration of a sound, stable dollar tied by law to a specified amount of gold.”
The editorial adds that the Republicans can take a stand on this issue and have it at the forefront of their campaigns during the 2016 presidential election.
“The Republicans who will lead the next Congress are well aware of the strategic moment in respect of monetary reform. These leaders include Paul Ryan, who so pointedly questioned ex-Chairman Ben Bernanke of the Federal Reserve on the issue of gold. They include the chairman of the House Financial Services Committee, Jeb Hensarling, who is looking at a rules requirement for the Fed.
“This is a party whose last presidential platform, the one on which Governor Romney was supposed to stand, included a plank on monetary reform. It emerged from a fierce primary. That plank was constructed at a time when the value of the dollar was in a free-fall, having collapsed less than a 1,600th of an ounce of gold. . . . All this debasement of the dollar has failed to solve anything — or slake the appetite of Wall Street and the banks for an ever greater condominium with the government.”
Since there is a power struggle for the White House in 2016 and the GOP so badly wants to reign supreme on 1600 Pennsylvania Avenue then it’s quite unlikely the Republicans will support this initiative. No, the Republicans will be moderates and mimic their Democratic rivals: more government, more taxes, more war, more status quo.
Mr. Moran: Well said! See my 2 books on amazon.com; ‘Monetary Revolution USA’ and ‘How to Protect and Grow Your Wealth’. Also, you can see the text of both posted at parts 1 and 2 in the left margin of my site Forward-USA.org. Fake money funds war and corruption.
In my approach, Gold IS Money, not paper notes ‘backed’ by gold. Paper notes are ok as a convenience but must be redeemable by any bearer on demand by the issuer. Private mints, (with no gov’t license) would be allowed. Gold would have no price’, just an exchange rate with other money. Example; what is the price of a US dollar? The Fed should be abolished, but even if not, it’s fake fiat money will be rejected. Buyers and sellers worldwide will demand gold once a major country (USA, Germany, China, etc.) starts using gold. Agreed? Contact me at RedickD@aol.com.
Thanks for your articles,
Dave Redick, Madison, WI