U.S. Congressman Introduces Gold Standard Bill as Inflation Spirals Out of Control

www.accesswire.com ^ | 10/9/2022 | www.accesswire.com

[bitt]

Rep. Alex Mooney proposes the United States adopt a new gold standard after U.S. government officials first disclose all gold holdings and secret gold transactions, allowing the gold price to adjust to its fair market value.

WASHINGTON, DC / ACCESSWIRE / October 9, 2022 / America's currency would regain stable footing for the first time in half a century if a bill just introduced by U.S. Representative Alex Mooney (R-WV) becomes law.

Referred to as the "Gold Standard Restoration Act" by sound money activists, H.R. 9157 calls for the repegging of the Federal Reserve note to gold in order to address the ongoing problems of inflation, runaway federal debt, and monetary system instability.

Upon passage of H.R. 9157, the U.S. Treasury and the Federal Reserve would have 30 months to publicly disclose all gold holdings and gold transactions, after which time the Federal Reserve note "dollar" would be pegged to a fixed weight of gold at its then-market price.

Federal Reserve notes would become fully redeemable for and exchangeable with gold at the new fixed price, with the U.S. Treasury and its gold reserves backstopping Federal Reserve Banks as guarantor.

"The gold standard would protect against Washington's irresponsible spending habits and the creation of money out of thin air," said Rep. Mooney in a statement.

"Prices would be shaped by economics rather than the instincts of bureaucrats. No longer would our economy be at the mercy of the Federal Reserve and reckless Washington spenders."

The Gold Standard Restoration Act also makes several findings as to the harm the Federal Reserve System has inflicted on everyday Americans - particularly since President Richard Nixon "temporarily suspended" gold backing of America's monetary system in 1971.

H.R. 9157 points out the following: "The Federal Reserve note has lost more than 30 percent of its purchasing power since 2000, and 97 percent of its purchasing power since the passage of the Federal Reserve Act in 1913."

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[MichaelRDanger]

Gold Standard people are never able to answer the question as to why the Gold Standard was abandoned in the first place, because of the economic instability it introduced, which lead to the creation of the Federal Reserve.

The gold standard actually serves to limit instability by curtailing excess credit.

Greenspan explains this more succinctly that I think I could, but if there is something yet unclear after you read it ask and I'll try to better explain: Gold and Economic Freedom

Greenspan ignores the important issue of the effects of price volatility of a single commodity. Gold cannot add stability if it's price is inheritably unstable. If you know your history the 19th century suffered two depressions when the price of gold dropped sharply.

As an example: We know the Chinese have been buying gold over the last decade or two. If they were to liquidate a major portion of those holdings the price of gold would drop sharply due to supply and demand. If our currency was tied to a single commodity this price drop would have the potential to crash our economy. Returning to the Gold Standard would add instability and make our economy vulnerable to actions by our enemies.

If you wanted to add stability you would tie our currency to a broad range of commodities instead of a single commodity. But then again this is what the Fed does "in theory". Replacing a broken system with a system that is far more broken does not solve the problem.