Skip to comments.Boost Employment By Ending The Fed And Resurrecting The Gold Standard
Posted on 09/08/2011 6:24:42 PM PDT by billflax
Another month and another lackluster employment figure. Both parties profess to be fixated on job creation. Where are they? In normal recoveries GDP booms and firms invest in exciting concepts that spur new hiring. Why not now?
Despite corporate profits exceeding $1.5 trillion in the recent period, which elevated corporate cash balances over $2 trillion both records few firms dare expand. Uncertainty paralyzes both those with capital to invest and those with investments seeking capital.
Several probable causes catalyze this economic confusion: looming tax increases, time-wasting regulatory demands and anti-business rhetoric emanating from Washington. All have merit, but not spoken of enough is a more effective economic cure, which would be to reform our monetary system.
Money is so fundamental to investment that bolstering the dollar represents the surest route to prosperity. Unfortunately, the dollar glides downhill as if on a rollercoaster. It suffers new lows against a host of currencies. Gold poises for $2,000/oz.
(Excerpt) Read more at forbes.com ...
There isn’t enough gold in the world to back the world’s economies. We would have to dig Mars and get lucky.
Five years ago this would have been grounds for zot.
Eight years ago vehement ranting about the illegal immigration problem and calling the President Jorge Bush was grounds for zot.
Funny how people’s opinions change.
You can try something like this during times of calm and stability when people have time to digest and understand. You can’t pull this stuff in the middle of a crisis and expect anything to get better.
Warren Harding figured it out in 1920...
Congress and the Executive Branch have lots to do.
So far theyre not doin it right..
Harding cut the governments budget nearly in half between 1920 and 1922. The rest of Hardings approach was equally laissez-faire. Tax rates were slashed for all income groups. The national debt was reduced by one-third. The Federal Reserves activity, moreover, was hardly noticeable. As one economic historian puts it, Despite the severity of the contraction, the Fed did not move to use its powers to turn the money supply around and fight the contraction. 2 By the late summer of 1921, signs of recovery were already visible. The following year, unemployment was back down to 6.7 percent and was only 2.4 percent by 1923.
BTW..ole Warren ALSO fixed immigration...
Mr. Harding signed into law the Emergency Quota Act which sought to control immigration following World War I and preserve the distinctive American culture by ensuring the majority of immigrants came from the historically compatible cultures of Northern Europe. This law aimed to bring wages of hard working Americans under control by limiting immigration to 3% of the 1910 census. It was followed on by a similar act in 1924, after Mr. Hardings death.
A Warren Harding prescription...if filled ...would ignite the afterburners on the US job machine and the economy. However DC would have to yield on a tremendous amount of power. Our job as We the People...is to persuade them of the utility ..shall we say..of doing so. In all probability the same minds that made the mess...arent capable of the solution however.
BTW any takers that Bammy couldnt even tell you that Warren Harding was one of his predecessors in office?
Even more telling about what our betters in the RinoCracy think of a Constitutional President..
But posting before reading the column is timeless.
A government doesn’t need to have an enormous amount of gold for this to work. Just enough to issue at the margins until the dollar has parity.
About as likely as me walking to the moon tonight and getting back before dawn.
That will do absolutely nothing to curb devaluation of the dollar; the government will simply keep lowering the ounce per dollar valuation.
Gold as money can have horrific inflation, as was the case during the spanish empire.
Juan De Mariana documented spanish inflation in his writings in the early 1600’s.
The crown was coining money like it was going out of style and cheapening the alloy.
Backing the dollar with gold will succeed in making the price of gold skyrocket, though.
“Both parties profess to be fixated on job creation. Where are they?”
There are millions of jobs being created. The world job market has boomed in the past 5, 10 years.
The new jobs are in Communist China, Asia, etc.
“There isnt enough gold in the world to back the world’s economies.”
Really? You couldn’t raise the price of gold?
Just enough to issue at the margins until the dollar has parity? Parity how, at $20/ounce? It would have to be $2,000/ounce. I don’t understand what you mean by “margins.”
So just put an arbitrary amount on the price of gold, huh? That’s smart. <s/
The price would float. Your ignorance of gold/money is embarrassing you and you don’t know it.
Your old argument has been disparaged so many times. Do you read at all?
Who remembers the following?
Santo Gold Infomercial (intro)
Do you think the price of gold is somehow arbitrary ?
The price of angled backed economy’s set by some clown in a room?
You sound so confident in your post that there is not enough gold in the world. Yet, you fail to consider price in your deep analysis.
The price of a gold backed...
Sure can...and you can manipulate the supply. It has been done time and time again in the past by the banks...especially those in Europe...to drive countries into recession and manipulate their money supply.
“It would have to be $2,000/ounce. I dont understand what you mean by margins.”
Actually, it would be much higher than $2,000, but it is what it is.
Criminey! You don’t understand “margins”?
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