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Forbes Predicts U.S. Gold Standard Within 5 Years
Human Events ^ | Wednesday May 11, 2011

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 ...


TOPICS: News/Current Events; Politics/Elections
KEYWORDS: economy; feds; forbes; gold; goldstandard; obama; ronpaul; steveforbes
Hmmm! Interesting?
1 posted on 05/11/2011 5:27:54 AM PDT by Bigtigermike
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To: Bigtigermike

Gold standard and the Fair Tax. Watch the country grow.


2 posted on 05/11/2011 5:29:52 AM PDT by ClearCase_guy (The USSR spent itself into bankruptcy and collapsed -- and aren't we on the same path now?)
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To: Bigtigermike

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.


3 posted on 05/11/2011 5:29:56 AM PDT by Lazamataz (The Democrat Party is Communist. The Republican Party is Socialist. The Tea Party is Capitalist.)
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To: Bigtigermike

I’ll believe that when I see it.


4 posted on 05/11/2011 5:32:27 AM PDT by puppypusher (The World is going to the dogs.)
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To: Bigtigermike

“.....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.


5 posted on 05/11/2011 5:36:39 AM PDT by demshateGod (The fool hath said in his heart, There is no God.)
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To: Bigtigermike

-——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.


6 posted on 05/11/2011 5:41:30 AM PDT by bert (K.E. N.P. N.C. D.E. +12 ....( History is a process, not an event ))
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To: bert

How about we pay off the debts first with the Play-Do money before stabilizing and restoring its value.


7 posted on 05/11/2011 5:44:54 AM PDT by Justa
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To: Bigtigermike
This is why it won't happen "and discourage reckless federal spending"
8 posted on 05/11/2011 5:45:11 AM PDT by shawnlaw
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To: Lazamataz

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


9 posted on 05/11/2011 5:46:56 AM PDT by bert (K.E. N.P. N.C. D.E. +12 ....( History is a process, not an event ))
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To: Justa

Fear not the debt, inflation will mitigate the debt........ if, the deficits are curtailed.

There is no freeway, only the straight and narrow


10 posted on 05/11/2011 5:49:41 AM PDT by bert (K.E. N.P. N.C. D.E. +12 ....( History is a process, not an event ))
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To: Bigtigermike
um... i thought someone from the fed said recently there wasn't enough gold in the entire world to go back to the gold standard?
11 posted on 05/11/2011 5:54:56 AM PDT by TexasFreeper2009 (Obama = Carter 2.0 The Epic Fail Edition)
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To: bert
Why would London buy gold from individuals at $40 USD if they could buy it direct for $35?

A currency exchange must have been involved which serves to stabilize the value of the dollar.

12 posted on 05/11/2011 5:55:09 AM PDT by Aevery_Freeman (The 'Affirmative Action' pResident that destroyed America)
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To: ClearCase_guy

Yep! Currency not based on “real” wealth but fiat wealth will always help an economy.


13 posted on 05/11/2011 5:55:14 AM PDT by arderkrag (Georgia is God's Country.----------In the same way Rush is balance, I am consensus.)
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To: bert

Errr, if we return to a gold standard there won’t be inflation.


14 posted on 05/11/2011 5:58:59 AM PDT by Justa
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To: Bigtigermike

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


15 posted on 05/11/2011 6:00:06 AM PDT by PGR88 (I'm so open-minded my brains fell out)
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To: Aevery_Freeman

Cities don’t trade gold people trade gold. They bought it here and sold it there. it is arbitrage and old as time


16 posted on 05/11/2011 6:06:05 AM PDT by bert (K.E. N.P. N.C. D.E. +12 ....( History is a process, not an event ))
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To: Bigtigermike

Where would the government get enough gold to back all our fiat dollars?


17 posted on 05/11/2011 6:07:55 AM PDT by MulberryDraw ( Switch off the EPA.)
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To: Justa

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.


18 posted on 05/11/2011 6:08:55 AM PDT by bert (K.E. N.P. N.C. D.E. +12 ....( History is a process, not an event ))
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To: demshateGod

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.


19 posted on 05/11/2011 6:13:16 AM PDT by JerseyHighlander
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To: PGR88
"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."

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

20 posted on 05/11/2011 6:16:31 AM PDT by GourmetDan (Eccl 10:2 - The heart of the wise inclines to the right, but the heart of the fool to the left.)
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To: bert
Your snide quip does not address the question. If they are buying in USD, they must have USD which they have to buy from they issuing country so a currency exchange is involved. If they are buying in their own currency, a currency exchange is involved.

The imbalance in the commodity price is temporary and self-correcting thereby stabilizing the currency.

21 posted on 05/11/2011 6:35:20 AM PDT by Aevery_Freeman (The 'Affirmative Action' pResident that destroyed America)
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To: MulberryDraw
Where would the government get enough gold to back all our fiat dollars?

How much gold would that be?

22 posted on 05/11/2011 6:37:12 AM PDT by farmguy
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To: farmguy

Good question. The government has 8,000+ tons but some people question whether they really have it.

http://www.zerohedge.com/article/steve-forbes-us-will-likely-have-gold-standard-within-next-five-years

The FED has added a couple of trillion dollars with QEx.


23 posted on 05/11/2011 7:01:29 AM PDT by MulberryDraw ( Switch off the EPA.)
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To: Bigtigermike

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.


24 posted on 05/11/2011 7:05:28 AM PDT by jtal (Runnin' a World in Need with White Folks' Greed - since 1492)
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To: Lazamataz

***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.


25 posted on 05/11/2011 7:12:53 AM PDT by Ruy Dias de Bivar (Click my name. See my home page, if you dare!)
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To: All

Have Your Say Every Day.

Free Republic Runs ONLY On Your Donations.
Make Yours NOW and End the FReepathon!

26 posted on 05/11/2011 7:17:28 AM PDT by paulycy (Islamo-Marxism is Evil.)
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To: Justa

***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.


27 posted on 05/11/2011 7:19:27 AM PDT by Ruy Dias de Bivar (Click my name. See my home page, if you dare!)
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To: bert

Now they do the same with currency trading, instantly from their desks.


28 posted on 05/11/2011 7:42:09 AM PDT by ctdonath2 (Great children's books - http://www.UsborneBooksGA.com)
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To: Bigtigermike

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.


29 posted on 05/11/2011 7:45:14 AM PDT by ctdonath2 (Great children's books - http://www.UsborneBooksGA.com)
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To: farmguy

IIRC we (the USA) would need about 20% of all gold ever mined to make the gold standard work again.


30 posted on 05/11/2011 7:48:52 AM PDT by ctdonath2 (Great children's books - http://www.UsborneBooksGA.com)
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To: Bigtigermike
India, Indonesia, China, Wider Asia Buy Physical Gold And Silver On Dip As Stagflation Threatens
31 posted on 05/11/2011 8:48:57 AM PDT by blam
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To: ClearCase_guy

fair tax is scam.

please leave that junk in the legislative trasheap.


32 posted on 05/11/2011 10:30:06 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory

Message board war for you in....5...4...3....2...


33 posted on 05/11/2011 11:26:09 AM PDT by CommieCutter (Promote Liberal Extinction: Support gay marriage and abortion!)
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To: Bigtigermike

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.


34 posted on 05/11/2011 7:27:24 PM PDT by RWB Patriot ("My ability is a value that must be purchased and I don't recognize anyone's need as a claim on me.")
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To: Bigtigermike

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.


35 posted on 05/11/2011 10:51:05 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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