The Gold Standard is the Wrong Policy
I’m sure you have seen them both on t.v. Peter Schiff is now a permanent fixture of Fast Money on MSNBC. And, Ron Paul is a frequent contributor to Fox’s pretend debate on politics. They both are asked about the gold standard. They both equally endorse a gold backed dollar standard, hailing back to the days during the civil war. Well, I am here to tell you that they are both wrong. Who am I to question these two supposed captains of libertarian thinking? Uh, nobody important, but I have the ace up my sleeve called historical fact, current history and true monetary facts.
The Roaring 20’s
Ask any Libertarian leader to point out why the gold standard should be readopted and he’ll immediately point to the “roaring 20’s”. He will point out that the average man was paid more wages. People were able to pay cash for most assets, including homes. American prosperity was live and well. However, when questioned specifically as to what made the 20’s so great, they’ll quickly say the gold standard.
I don’t know if they honestly believe the gold standard had something to do with Americas financial success during the 20’s or if they are just trying to dumb it down for the public. The truth of the matter is, tariffs were dramatically raised during the 20’s. This had a twofold effect. It protected American jobs, allowing the common man to be paid more. Secondly, and prevented dumping of cheap goods on the market, protecting American manufacturing.
However, the federal reserve had already been instituted and they needed to solidify their hold on America. They did so in 1920-21 and 1929 – 1944. The only thing that brought prosperity to the country was the heavy use of tariffs. The government subsisted on tariffs before 1916 when the banking cartel pushed forth the unconstitutional income tax. Although, many deny that the income tax amendment was constitutionally passed, no one has done an open national recount of the states that ratified the amendment. They simply brush it off as hogwash, that it was passed and there is no need to hold an open recount of the states ratifying the amendment.
Constitutionally only congress and the treasury are able to print and coin money. Lincoln did it with greenbacks during the civil war, which was a debtless monetary system. Up until 10 years ago those greenbacks were still in circulation, having been all recalled due to legislation. It has constantly been argued that the U.S. mint should be capable of printing money. The U.S. government prints bonds. They should print money instead of bonds. With bond printing, the change of hands causes debt instead of money.
The very first step the Federal Reserve Bank took to destroy any competition with their hold on the U.S. economy was to outlaw silver dollars and silver coins. They then made sure the gold standard was imposed. They then moved to gather all the gold. Hence, the confiscation of gold from the American public. As it stands today the IMF holds 2/3 of all the worlds gold. In fact, when Reagan ordered a gold commission to research the plausibility of a gold standard, they came back with the finding that 100% of the gold in Fort Knox did not belong to the U.S. government, but it belonged to the federal reserve as collateral for the interest to be paid the federal reserve on the loans outstanding by congress.
Going on a gold standard today would ruin the U.S. With the IMF controlling gold, we would be at the mercy of international bankers. Ron Paul and Peter Schiff never mention this. I wonder if their advocacy of the gold standard is just a naive wish to return to the roaring 20’s or are they intentionally trying to play into the hands of the international banking cartel.
I agree there should be a basis for the U.S. dollar, but that basis should not be the gold standard. I should be the silver standard. The U.S. mint should reauthorize people to bring their silver and mint coins with it. The treasury should pick up printing greenbacks, backed by the full faith and credit of the U.S. government and not the federal reserve bank note. We are literally now at the mercy of the federal reserve. They could call all of their notes in, theoretically. Does that sound preposterous? Imgine if another attacked happened on U.S. soil. The federal reserve could make up some excuse to get congress to call in all money. As it stands now, all U.S. federal reserve notes only account for 1/3 of the actual money in print. The other 2/3rds are simply circulated via computers, i.e. numbers on a computer screen at the thousands of banks across the land. It would be nothing for the federal reserve crooks to orchestrate something and call all the reserve notes back. Those without gold or silver would be left cashless.
In conclusion, in their heart of hearts, I think, hope and pray Ron Paul and Peter Schiff mean well. However, both are politicians. I would not put anything past them. They could get elected to higher office and turn around and call for a gold standard and ruin the country immediately. I wouldn’t be surprised in the slightest. Remember, when the government confiscated all gold in the country, no one would have believed it could even be possible beforehand. The purpose of this article is to set the record straight. The Gold standard would render probably 70% of the population poverty stricken.
A silver standard however, would have the opposite effect. And, going back off the income tax, which serves no purpose but to pay off the federal reserve, not the government, would be the next step, i.e. repealing the 16th amendment. And, finally, congress printing its own money.