Skip to comments.Monetary Reform: The Key to Spending Restraint (WS Journal calls for return to the Gold Standard)
Posted on 04/26/2011 6:47:47 AM PDT by Zakeet
No man in America is a match for House Budget Committee Chairman Paul Ryan on the federal budget. No congressman in my lifetime has been more determined to cut government spending. No one is better informed for the task he has set himself. Nor has anyone developed a more comprehensive plan to reduce, and ultimately eliminate, the federal budget deficit than the House Budget Resolution submitted by Mr. Ryan on April 5.
But experience and the operations of the Federal Reserve system compel me to predict that Mr. Ryan's heroic efforts to balance the budget by 2015 without raising taxes will not end in successeven with a Republican majority in both Houses and a Republican president in 2012.
Why? Because the House Budget Resolution fails to reform the Federal Reserve system that supplies the new money and credit to finance both the budget deficit and the balance-of-payments deficit. So long as the Treasury deficit can be financed with discretionary money and creditnewly created by the Federal Reserve, by the banking system, and by foreign central banksthe federal budget deficit will persist.
The solution to the problem is equally simple. First, in order to limit Fed discretion, the dollar must be made convertible to a weight unit of gold by congressional statuteat a price that preserves the level of nominal wages in order to avoid the threat of deflation. Second, the government must at the same time be prohibited from financing its deficit at the Fed or in the banksboth at home or abroad. Third, only in the free market for true savingsundisguised by inflationary new Federal Reserve money and banking system creditwill interest rates signal to voters the consequences of growing federal government deficits.
(Excerpt) Read more at online.wsj.com ...
Naturally, we will vigorously oppose all measures to limit our ability to support unconstrained government spending and thereby provide a sound monetary system
I hate fiat currencies because it allows banks to create money out of thin air and it allows governments to tax everyone through inflation.
If we had a gold or precious metal based currency, oil prices would not be going up.
Do any freepers have a graph of gold and/or silver prices vs oil? That would prove that the rise in prices is not due to speculators or Big Oil but instead due to dollar devaluation from debt monetization.
WS Journal calls for return to the Gold Standard
WSJ printed a guest editorial calling for the return to the Gold Standard.
One reform they should implement tomorrow is removing the full employment as part of the Fed’s mandate.
The central bank should ONLY be concerned with keeping the currency stable.
The Fed is like Hal in 2001. The government gave the computer orders that couldn’t be reconciled logically and pretty soon it’s killing all the astronauts.
Here is a link to a blog that has a recent set of charts, but it is the USdollar. It is pretty depressing to look at.
It at least shows that the dollar has been losing value for some time.