Skip to comments.Steve Forbes: Link Dollar To Gold Or Face Great Depression II
Posted on 06/03/2014 9:25:18 AM PDT by blam
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,
(Excerpt) Read more at washingtonexaminer.com ...
I would honestly be surprised if the United States even has any gold reserves on-shore any longer.
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
Or, apparently anyone elses gold reserves either. Just ask Germany about that.
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.
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...
The guards and security at Fort Knox is to keep anyone from looking at the empty vaults!
The last thing this country needs is more “easing”
FACE “Great Depression II” ??
We’ve BEEN there for 5+ years already. . .
Great Depression II
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).
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.
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.
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.
You can’t even slow down while driving past the place.
437 grains = one ounce, so just convert the ounce price to equal one grain?
Either way, the US dollar becomes worthless.
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.
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?
It would be cool to see a flock of Canadian honkers fly through it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.