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Steve Forbes: Link Dollar To Gold Or Face Great Depression II
Washington Examiner ^ | 6-3-2014 | Paul Bedard

Posted on 06/03/2014 9:25:18 AM PDT by blam

Paul Bedard
June 3, 2014

Influential financial publisher and former presidential candidate Steve Forbes is out with a new warning that the U.S. faces an economic catastrophe due to the Federal Reserve's loose dollar policy, and returning to a strict “gold standard” is the only way to avoid disaster.

In Money: How the Destruction of the Dollar Threatens the Global Economy -- and What We Can Do About It, Forbes blames President Obama's money team for the stagnant economy, high prices, declining mobility and big government.

"[The Fed's] vastly misguided monetary policies are now setting the stage for a new economic and social catastrophe — one that could rival the financial crisis and horrors of the 1930s,” he wrote in the book co-authored by Elizabeth Ames.

Just like many financial conservatives have advised in the past, notably former Reps. Jack Kemp and Ron Paul, Forbes said that economic prosperity can come only if the dollar is linked to gold and not printed willy-nilly at inflated rates.

"The best way to achieve monetary stability: linking the dollar to gold,” he wrote in the book out today. “The Fed should have only two tasks: keeping the dollar fixed to gold and dealing quickly and decisively with panics,” he wrote, according to excerpts provided in advance to Secrets.

Forbes has long been a leading conservative voice on the economy, and his latest book is likely to revive calls for a gold standard.

"The refusal of many in the policy establishment to entertain the idea of a return to a gold standard is based on astounding ignorance about just what a gold standard would mean and how it would work,”

(snip)

(Excerpt) Read more at washingtonexaminer.com ...


TOPICS: News/Current Events
KEYWORDS: depression; dollar; gold; goldstandard; steveforbes; usdollar
Another radical doom & gloomer.
1 posted on 06/03/2014 9:25:18 AM PDT by blam
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To: blam; tx_eggman

I would honestly be surprised if the United States even has any gold reserves on-shore any longer.


2 posted on 06/03/2014 9:30:11 AM PDT by SpinnerWebb (IN-SAPORIBVS-SICVT-PVLLVM)
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To: SpinnerWebb

They cannot link dollar to gold any more, the government doesn’t have near enough gold to back all the dollars they have created out of thin air


3 posted on 06/03/2014 9:31:19 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: blam

BTTT!


4 posted on 06/03/2014 9:31:31 AM PDT by Salvation ("With God all things are possible." Matthew 19:26)
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To: SpinnerWebb

Or, apparently anyone elses gold reserves either. Just ask Germany about that.


5 posted on 06/03/2014 9:32:15 AM PDT by Black Agnes
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To: blam

There isn’t enough gold in the entire world to cover our national debt.

Gonna raise the value of gold to cover that? Me thinks Forbes has a bunch of overpriced gold he’s looking to unload.


6 posted on 06/03/2014 9:34:19 AM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: GeronL

Hard to link dollar to gold using the gold ounce evaluation scale... but if we go to the gold grain evaluation method, it might work. If its done before even further monetary easing...


7 posted on 06/03/2014 9:36:31 AM PDT by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: SpinnerWebb

The guards and security at Fort Knox is to keep anyone from looking at the empty vaults!


8 posted on 06/03/2014 9:37:21 AM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: C210N

The last thing this country needs is more “easing”


9 posted on 06/03/2014 9:38:10 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: blam

FACE “Great Depression II” ??

We’ve BEEN there for 5+ years already. . .


10 posted on 06/03/2014 9:40:18 AM PDT by Salgak (http://catalogoftehburningstoopid.blogspot.com 100% all-natural snark !)
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To: Beagle8U
Ron Paul has said if elected (fat chance) his first order of business would be an audit of the gold at Fort Knox. The higher ups definitely know more about it than us.
11 posted on 06/03/2014 9:40:56 AM PDT by ArtDodger
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To: blam

Great Depression II


Sorry. I already coined that phrase back in 2007. And we’re already in it. People forget that it was decades before the Great Depression was called the Great Depression.

Oh, and the last one was international (as this one is).
Oh, and we all know how the last one ended.
Oh, and this one will be far worse (see Ezekiel 39 or Revelation).


12 posted on 06/03/2014 9:41:13 AM PDT by cuban leaf
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To: Beagle8U

We are already facing another Great Depression, I don’t think anything that is done now will avoid that. We can make major changes that will lessen it and make it shorter, but leftists and RINO’s in charge says we will make it deeper and longer instead.


13 posted on 06/03/2014 9:41:21 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: blam

If the dollar is linked to gold, in the first year, the value of an ounce of gold would be well over $100,000, and a short time after that, over $1,000,000.

A figure that is widely used by investors comes from Thomson Reuters GFMS, which produces an annual gold survey. Their latest figure for all the gold in the world is 171,300 tonnes.

Officially, the US has 8,133.5 (metric) tonnes (likely very exaggerated). There are 32,150 Troy ounces in a metric ton.

This means that the US government has about 261,492,025 Troy ounces of gold.

First of all, calculate the US budget divided by that number. Then the US debt. This is the way to figure out how much inflation our currency would have to experience to normalize it with the amount of gold we theoretically have.


14 posted on 06/03/2014 9:41:46 AM PDT by yefragetuwrabrumuy ("Don't compare me to the almighty, compare me to the alternative." -Obama, 09-24-11)
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To: blam

News Flash.

We are already in Great Depression II. All the very worst of the New Deal and Jimmy Carter have been combined with the foreign policy ineptitude of the Kennedy-Johnson administration, when we got sucked into Viet Nam and lost open access to Berlin, in addition to the Cuban Missile Crisis.

The favorable thing about the Kennedy years is that the war machine was cranked up and feeding the economy here at home, while today we don’t even have that, with a military falling to less than the level of the late 1930’s.

Gotta watch that carbon dioxide level, though.

You want reliable solar power? Put a huge array of solar collection panels in geosynchronous orbit above a fixed receiving point on earth, and transmit the generated power down by a tight microwave beam. No wires, no problems with power transformation, and no interruptions of service. Of course, anything that flies through that tight microwave beam is going to be instantly cooked.


15 posted on 06/03/2014 9:42:20 AM PDT by alloysteel (Selective and willful ignorance spells doom, to both victim and perpetrator - mostly the perp.)
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To: Beagle8U

You can’t even slow down while driving past the place.


16 posted on 06/03/2014 9:42:21 AM PDT by cuban leaf
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To: C210N

437 grains = one ounce, so just convert the ounce price to equal one grain?

Either way, the US dollar becomes worthless.


17 posted on 06/03/2014 9:43:07 AM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: GeronL

Whatever gold may be left... if the dollar gets tied to it... it would document the inflation and allow us all to calculate the markdown we’ve seen w/ all the printing.

Chicoms and all our bondholders hardest hit.


18 posted on 06/03/2014 9:43:55 AM PDT by Principled (Obama: Unblemished by success.)
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To: blam
The best way to achieve monetary stability: linking the dollar to gold,” he wrote in the book out today. “The Fed should have only two tasks: keeping the dollar fixed to gold and dealing quickly and decisively with panics,” he wrote, according to excerpts provided in advance to Secrets.

If you link the dollar with gold then when the value of gold drops by a third, as it did in 2012-2013, then wouldn't the value of the dollar drop as well? And couldn't China destroy the value of the currency merely by dumping their gold into the market?

19 posted on 06/03/2014 9:44:16 AM PDT by DoodleDawg
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To: alloysteel

It would be cool to see a flock of Canadian honkers fly through it.


20 posted on 06/03/2014 9:44:18 AM PDT by cuban leaf
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To: DoodleDawg

When you say “the value of gold drops”, it’s a comparative value - what are you comparing it to if the dollar is tied to it?


21 posted on 06/03/2014 9:46:08 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: blam
In all due respect to Mr. Forbes, the culprit is the Congress, the Executive Branch and, by extension, the Judicial Branch. All have worked tirelessly to advance an expensive and ultimately self-defeating liberal agenda with impunity.

Correct me if I'm wrong here - the Fed takes it's marching orders from the Treasury, and the Treasury answers to the President. In addition, the President appoints the Fed Chairman or Chairwoman.

The blame lies squarely with our irresponsible politicians, plain and simple.

22 posted on 06/03/2014 9:46:17 AM PDT by Paulie (Buy local, bank local, exert your influence locally; the left will fold like a cheap suit.)
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To: blam

Well that would be great except we have no gold.


23 posted on 06/03/2014 9:47:21 AM PDT by Georgia Girl 2 (The only purpose o f a pistol is to fight your way back to the rifle you should never have dropped.)
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To: blam

24 posted on 06/03/2014 9:51:44 AM PDT by blam
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To: Paulie
"The blame lies squarely with our irresponsible politicians, plain and simple. "

Yup...we're doomed.

Anyone running on a platform that would/could begin making corrections to our situation will never be elected. We'll just continue to get more of the same from any political party.

25 posted on 06/03/2014 9:55:19 AM PDT by blam
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To: DoodleDawg

Nope, an ounce of gold would go to about $100,000.00 instantly.

Sell a little jewelry and pay off all your debts and then some. One problem, all the banks instantly fail, along with the federal government.

That $1,000 dollars in your wallet is now worth less than the lint in your pockets!


26 posted on 06/03/2014 9:56:25 AM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: blam

Gold never backed the dollar. It’s US production that determines the value of the dollar. The old MV = PQ still holds. It also suggests that if output is falling, so should the money supply. Alas, that’s where the Fed has really screwed up. Any measure of the money supply has so far outstripped output that the “real” value of the dollar is in the pits. The piper isn’t that far away, and if these idiots in Washington don’t curtail spending, this Republic is doomed.


27 posted on 06/03/2014 9:57:13 AM PDT by econjack (I'm not bossy...I just know what you should be doing.)
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To: blam
Don't let the Government fix a price for Gold. Ever.

Gold's ancient role as money is being rediscovered by trading nations who are ditching the dollar FRN. This process can only accelerate as colossal debt forces fiat currencies to hemorrhage buying power.

Foreign exchanges are trading physical Gold and Silver while the COMEX (trading synthetic, non-physical 'Gold' and 'Silver') is becoming increasingly irrelevant.

Freed from the false signals generated by the COMEX: world markets will discover the correct price for precious metals.

Let markets find the price. Don't let Government do it.

28 posted on 06/03/2014 10:04:34 AM PDT by agere_contra (I once saw a movie where only the police and military had guns. It was called 'Schindler's List'.)
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To: blam

Linking the dollar to gold will cause the Great Depression II.


29 posted on 06/03/2014 10:05:27 AM PDT by DannyTN
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To: blam

Not enough AU in the world (mined or known deposits), unless gold is at $10k/oz. Or more.

5.56mm


30 posted on 06/03/2014 10:13:51 AM PDT by M Kehoe
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To: blam

He’s right, but he’s kinda disappeared and is persona non grata...

His magazine I used to love have become quite liberal repubbie and I chose to not renew.


31 posted on 06/03/2014 10:14:54 AM PDT by CincyRichieRich (Refuse to remain silent.)
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To: blam

The US will abrogate it’s debt one way or another.

Massive runaway inflation is one way to make all financial instruments denominated in dollars and held external to the country worthless. All the treasury notes, dollars and electronic funds would be worth nothing. A new internal currency would need to be created and exchanged for internally held dollars. WAR(s) of some sort will follow such an action.

World war three might be ginned up to cover economic collapse. The result would be a reset like massive inflation but with more blood. Nuclear war would cause everyone to throw up their hands and say the past means nothing...our debts mean nothing and we will start fresh.
This scenario would be used as an excuse for collapse and a possible way to keep blame from the current leaders.

One of the above is going to happen.......IMO no other realistic possibility exists.


32 posted on 06/03/2014 10:17:28 AM PDT by Bobalu (What cannot be programmed cannot be physics)
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To: Paulie

I’m not sure that the Fed takes its marching orders from the Treasury. I’m not sure the Federal Reserve is part of our government, anymore than Federal Express is part of our government. Federal Reserve is independent contractor, closer connected to IMF.
The Treasury Dept. is neutered. Congress is neutered.
Correct me if I am wrong.


33 posted on 06/03/2014 10:22:00 AM PDT by SisterK (behold a pale horse)
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To: blam

If you were to tie the dollar to gold, without a longer transition period would shock the system into an even greater depression.

Everything would come to a halt. Credit would disappear. Deflation would be brutal and would drop our current standard of living to that of, say, Haiti.

Of course your debts would still be there. Costing you more and more every day.

I understand the theory. There is not enough gold to spread around.

We are just too screwed. We need to go through the collapse before this would work.


34 posted on 06/03/2014 10:24:25 AM PDT by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
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To: blam
I think we should go back to the stone standard:


35 posted on 06/03/2014 10:26:22 AM PDT by facedown (Armed in the Heartland)
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To: blam
Back when our currency was basically a warehouse receipt and the people had control (note two lines at bottom of bill):


36 posted on 06/03/2014 10:36:57 AM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: blam

There was a time when one dollar was worth 1/32 oz of gold.

Then they began to cut that gold oz into pieces and calling each piece a “dollar”.

Today that oz of gold has been cut into 1295 pieces and the Government calls each one a “dollar”.


37 posted on 06/03/2014 10:44:00 AM PDT by Ruy Dias de Bivar (Sometimes you need more than seven rounds, Much more.)
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To: blam

He doesn’t understand the Dhimmicraps’ goals, does he?


38 posted on 06/03/2014 11:24:11 AM PDT by TBP (Obama lies, Granny dies.)
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To: blam

Hmmm, I’m confused (yes, I know, I should read the entire article)... But weren’t we on the gold standard before and throughout the Great Depression?


39 posted on 06/03/2014 11:39:43 AM PDT by LibWhacker
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To: LibWhacker

We were on a “bi-metal” standard - one ounce of gold = 20 ounces of silver.

There was silver minted into coins. And gold coins in circulation, although the minting had stopped a little earlier.

Then FDR had the dollar devaluated so one ounce of gold was arbitrarily declared to be equal to 32 ounces of silver, but all the gold coins had to be turned in, unless you were a collector and were preserving them for museum purposes. But they could no longer be used for commercial exchange.

South Africa did keep gold coins in circulations, the Kuggerrand, but when the country was subjected to a worldwide boycott, the coins were worth only slightly more than bullion price.

The gold standard did not technically end until 1971, under Nixon, when the world’s currencies were allowed to “float”.


40 posted on 06/03/2014 12:03:38 PM PDT by alloysteel (Selective and willful ignorance spells doom, to both victim and perpetrator - mostly the perp.)
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To: Bobalu

Very astute!


41 posted on 06/03/2014 12:33:34 PM PDT by The Duke ("Forgiveness is between them and God, it's my job to arrange the meeting.")
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To: Bobalu

it is going to be painful either way

The Great Lean Forward


42 posted on 06/03/2014 12:34:09 PM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: blam

Some things need to be broken before they can be fixed . .


43 posted on 06/03/2014 1:35:16 PM PDT by ▀udda▀udd (>> F U B O << "What the hell kind of country is this if I can only hate a man if he's white?")
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To: SisterK
“I’m not sure that the Fed takes its marching orders from the Treasury. I’m not sure the Federal Reserve is part of our government,...”

True, the Federal Reserve is not a branch of the Federal Government. I know many people get that wrong.

But while the Fed is *supposed* to be neutral, it has long since been politicized. The (William McChesney) Martin Fed was the last independent one, with the possible exception of when Paul Volker was Chairman. Of course the Fed doesn't officially take it's orders from anyone, but in reality they do. But then again they don't just bow to U.S. or international authorities for nothing; they make sure to get something in return.

44 posted on 06/04/2014 6:40:53 AM PDT by Paulie (Buy local, bank local, exert your influence locally; the left will fold like a cheap suit.)
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