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Posted on 05/11/2011 5:27:51 AM PDT by Bigtigermike
A return to the gold standard by the United States within the next five years now seems likely, because that move would help the nation solve a variety of economic, fiscal, and monetary ills, Steve Forbes predicted during an exclusive interview this week with HUMAN EVENTS.
“What seems astonishing today could become conventional wisdom in a short period of time,” Forbes said.
Such a move would help to stabilize the value of the dollar, restore confidence among foreign investors in U.S. government bonds, and discourage reckless federal spending, the media mogul and former presidential candidate said. The United States used gold as the basis for valuing the U.S. dollar successfully for roughly 180 years before President Richard Nixon embarked upon an experiment to end the practice in the 1970s that has contributed to a number of woes that the country is suffering from now, Forbes added.
If the gold standard had been in place in recent years, the value of the U.S. dollar would not have weakened as it has and excessive federal spending would have been curbed
(Excerpt) Read more at humanevents.com ...
The imbalance in the commodity price is temporary and self-correcting thereby stabilizing the currency.
How much gold would that be?
Good question. The government has 8,000+ tons but some people question whether they really have it.
The FED has added a couple of trillion dollars with QEx.
Will never happen - the federal government can’t print gold.
But if you are referring to a government and economic collapse in which people begin using gold (and silver) as defacto currency in the absence of any “official” currency of any value - then yeah, that might happen within five years.
***I’m all for it. Nixon decoupling currency from gold had the IMMEDIATE result of Stagflation, ****
At that time, FRANCE was buying all the gold it could from the US at $32 an ounce. When gold became legal for citizens to own again it shot up to $280 an ounce.
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***Errr, if we return to a gold standard there won’t be inflation.***
Actually there could be. When Spanish ships loaded with gold returned to Spain the sudden influx of new gold caused prices to go up, starting at the port.
And in the US, the first price of gold was $19 an ounce. With the opening of California gold fields, the price went to $23 an ounce, then FDR caused a raise to $32 an ounce.
Now they do the same with currency trading, instantly from their desks.
There isn’t enough gold.
And bad money drives out good. It’s nigh unto impossible to go back to good money until the bad is destroyed outright. Fort Knox would be emptied in a week by people cashing out their dollars for gold.
IIRC we (the USA) would need about 20% of all gold ever mined to make the gold standard work again.
fair tax is scam.
please leave that junk in the legislative trasheap.
Message board war for you in....5...4...3....2...
The day the government actually does the right thing instead of trying to suppress the people pushing for the right thing, I’ll vote democrat.
See who’s been buying up all of the gold, then decide as to whether you want more of the same kind of leadership, intensified.
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