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 ...
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?
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.
Well that would be great except we have no gold.
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.
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!
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.
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.
Linking the dollar to gold will cause the Great Depression II.
Not enough AU in the world (mined or known deposits), unless gold is at $10k/oz. Or more.
5.56mm
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.
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.
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.
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.
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”.
He doesn’t understand the Dhimmicraps’ goals, does he?
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?
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”.
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