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Going for the Gold

9:01 AM, Jun 16, 2011 • By DANIEL HALPER
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Politico's Ben Smith yesterday noted this video and the campaign to return to the gold standard:

Smith reported: "A veteran conservative movement figure said today his group is launching a television ad and retail campaign in Iowa aimed at drumming up grassroots intrest in a return to the gold standard. Jeffrey Bell, a former Reagan aide and conservative author, said the group American Principles in Action (of which he's policy director) hopes to use Tea Party members' interest in an issue that seemed to have faded decades ago to drive it back onto the agenda of Republican presidential candidates."

In March, Lewis Lehrman wrote in THE WEEKLY STANDARD:

A dollar convertible to gold would provide the necessary discipline to secure the long-term value of middle income savings, to backstop the drive for a balanced budget, and to end the dollar standard and the special access of the government and the financial class to limitless cheap Fed money. And the world trading community would benefit from a common currency, a nonnational, neutral, monetary standard that cannot be manipulated and created at will by the government of any one country.

That is to say, dollar convertibility to gold, a nonnational common currency, should be restored. And dollar convertibility to gold should become a cooperative project of the major powers. This historic common currency of civilization was, during the Industrial Revolution and until recent times, the indispensable guarantee of stable purchasing power, necessary for both long-term savings and long-term investment, not to mention its utility for preserving the long-term purchasing power of working people and pensioners. In a word, the gold standard puts control of the supply of money into the hands of the people, because excess creation of credit and paper money can be redeemed for gold at the fixed statutory price. The monetary authorities are thus required to limit the creation of new credit in order to preserve the legally guaranteed value of the currency.

To accomplish this reform, the United States can lead, first, by announcing future convertibility, on a date certain, of the U.S. dollar, to be defined in statute as a weight unit of gold, as the Constitution suggests; second, by convening a new Bretton Woods conference to establish mutual gold convertibility of the currencies of the major powers.

A dollar as good as gold is the way out. It is the way to restore real American savings and competitiveness. It is the way to restore economic growth and full employment without inflation. It is the way to restore America’s financial self-respect, and to regain its needful role as the legitimate and beneficent leader of the world.

Whole thing here.

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