Skip to comments.Forbes Predicts U.S. Gold Standard Within 5 Years
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 ...
Gold standard and the Fair Tax. Watch the country grow.
I’m all for it. Nixon decoupling currency from gold had the IMMEDIATE result of Stagflation, rampant inflation, and the ability for the Fed to create money when convenient.
I’ll believe that when I see it.
“.....help the nation solve a variety of economic, fiscal, and monetary ills”
Then it won’t happen. The government’s goal is not to solve problems. It’s to create perpetual problems in order to shore up power.
-——President Richard Nixon embarked upon an experiment to end the practice-——
Nixon did not embark on an experiment. He caved to reality and quit selling American gold at $35 when traders were buying it here and immediately selling it in London for $40 and bringing the $35 back and buying more and then selling it at $40. In two round trips they pocketed $10. Nixon had no choice but to allow the US$ devaluation.
Regarding the 5 year prediction. That might very well happen but the US$ will follow others. Much of the world will adopt some new gold standard before we do.
How about we pay off the debts first with the Play-Do money before stabilizing and restoring its value.
Do you recall the phrase “guns and butter”?
I think today is a messianic pay back for the trashed economy created by the great society. The messiah was handed the impossible task and will so badly inflict wounds and weakness that the Democrats will suffer for years and decades.
The legacy of LBJ is wreaking havoc in ratland. It’s payback
Fear not the debt, inflation will mitigate the debt........ if, the deficits are curtailed.
There is no freeway, only the straight and narrow
A currency exchange must have been involved which serves to stabilize the value of the dollar.
Yep! Currency not based on “real” wealth but fiat wealth will always help an economy.
Errr, if we return to a gold standard there won’t be inflation.
The USA will have to default and/or go bankrupt first. A huge change such as the gold standard (and please NO central bank next time!) could only come about after a major change, such as a war or collapse.
There are way too many inertial forces keeping the US Gov’t and spending on its present course
Cities don’t trade gold people trade gold. They bought it here and sold it there. it is arbitrage and old as time
Where would the government get enough gold to back all our fiat dollars?
Note, the prediction is for 5 years hence.
The inflation will be ongoing until the gold standard coaxes it to end.
Compounded inflation is a powerful debt reduction instrument.
It’s amazing to watch the Upper Class Twit of the Year 1999 go forth and prim and preen, wax and wane over government finances, and still not understand that the government exists to create problems and perpetuate failed solutions, not to fix them.
Forbes will never learn, that old dog and his tabloid media empire are archaic vestiges of the lamestream media.
A bond collapse and/or dollar crash is a de facto default.
You'll never get away from a privately-owned central bank (like the Fed). There's too much money to be made by some already rich and powerful people.
"Give me control of a nation's money and I care not who makes her laws." - Mayer Amschel Rothschild
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.
***Im 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.
***Errr, if we return to a gold standard there wont 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.