By Cade Buckley
Gold, we need it back bad. We’ve had 45 years of it absent from our monetary decisions and the effects have been no short of disastrous . We need a stable currency if the nation or even individuals are to prosper in society. We can not continue to use worthless bank notes from the federal reserve when they simply can be printed in massive QE. However as much as we need the Gold Standard returned, we also must realize this will not come about overnight. As much as pragmatism as seen as a cop out. For monetary policy it is required. The absolute goal is to return to a 100% gold dollar backed by no government and instead created by private banking/minting institutions. There are many advantages to a Gold Dollar, the first being that since gold is difficult to mine and then transport and then produce into coinage, it can not be endlessly produced like federal bank notes. Leading to a decrease in rapid unhealthy inflation, like we have in our current situation with the endless printing of paper notes. This is what causes unstable currency and eventual crashes like 08. With a 100% Gold Dollar the currency will remain stable, seeing as money minting is a difficult time consuming process, and what bank wants to run out of gold to lend out Another advantage is the demand for gold. Gold has always been sought out by humans. It’s not a new phenomenon. Gold is a metal that has never lost its battle for keeping man’s eyes interested. From jewelry to a symbol of wealth, from the sarcophaguses of Egypt to the large Buddha in Thailand, to the gold leaf on The Statue of Liberty. The demand will surely never cease as long as humans keep staring at it. The idea that gold is not money is severely misused. Seeing as money is whatever one wants to use as a commodity for exchange. We see people who still believe in the usage as gold as a safeguard against economic hardship. When gold was first started to be used with silver as the american dollar; according to The Coinage Act of 1792 0.55OZ or 17 grams of gold, were the standard of the “American eagle” (American gold dollar) with it going to 0.05 by 1832. The Gold standard Act in 1900 forced gold to become the representation of the dollar at 0.05 oz of gold.
The ability to return to sound monetary policy will not be an easy quest. It will be a long uphill battle. The very first thing that must occur is to Audit The Federal Reserve, exposing the corruption for what it is, and hold them to 100% transparency. Let the public be informed about the deceit. As soon as people can see the hidden secrecy they can learn the evils of central banking. The second thing is to repeal the Legal Tender Act of 1862, which allowed treasury secretaries full control over what money the united states used and made all other forms of currency illegal. If other commodities like gold silver bitcoin or other forms of cryptocurrency allow them to do so. It leads to competing currencies which allow for competition in interest rates. Leading to a lot more investing. Which is good for banks. When banks can compete with The Fed, the banks will eventually outcompete the central bank making it obsolete, after the introduction as bitcoin, gold, silver etc as money. Once The Fed is seen as obsolete, the congress will be able to conduct business and draft a bill to end The Fed seeing how useless it has become.
One issue with once a 100% gold standard is conducted is “how can banks be trusted to run the economy without any central oversight. The answer is simple, no one wants incoming problems. Banks will try to honestly value interest rates and only hold as much gold as they are capable of. Since carrying around 500 gold coins could be an issue banks could issue a gold note saying “this note is worth x ounces of gold.” Then could be used in a transaction and the note could be directed to a bank that accepts other notes or to the original bank and the bank could give out the note again. Now this is not a perfect balance, some banks will still loan out more banknotes for the gold they have in their vaults. Which can happen if a bank is irresponsible, if so they will be responsible to pay out to their customers and go under where a new bank can rise up and take its place. Some say that credit cards and debit cards would cease to exist, which is a ludicrous statement. Cards would act the same as they do now, but you could have your cards have silver or gold linked to your bank account. Bitcoin wallets would work much the same way. You’ll be charged for your purchase and your bank will send a statement and you’ll balance your checkbook. Just instead of investing Federal Reserve notes it will be gold and silver coins. While the road to adjusting from Federal Reserve notes will be bumpy trying to figure out interest rates with brand new currency, gold silver and bitcoin are already closely monitored and their value fluctuates. With this we can measure the value from the preexisting federal reserve amounts and go from there.
While the transition to gold won’t be easy or even a short road. It will be well worth it when sound money, real hard money, makes a reappearance and leads us to a stable currency and a stable economy.
“We conclude, therefore, that determining the supply of money, like all other goods, is best left to the free market. Aside from the general moral and economic advantages of freedom over coercion, no dictated quantity of money will do the work better, and the free market will set the production of gold in accordance with its relative ability to satisfy the needs of consumers, as compared with all other productive goods” ~ Murray Rothbard.