Why the U.S. should return to the Gold Standard

Gold and debt
Graph shows debt and it’s relationship to the price of gold

 

I’ve got this thing, and it’s [expletive] golden.
I’m just not giving it up for [expletive] nothing!”
— wiretap recording of Illinois Gov. Rod Blagojevich’s
now famous statement about selling of President Barack Hussein Obama’s  former U.S. senate seat.

That’s not worth the paper it’s written on.” – anonymous author of an old adage referring to paper money.


Gold!

More and more investors are turning away from stocks and bonds and buying gold. World securities markets here and in the Euro Zone are uncertain.  The real price of the U.S. Dollar is going down along with the Euro.

bars of gold bullion
Investors are selling dollars and euros for gold

“Gold turns toward $2,000,” screams an Aug. 21 headline in the Wall Street Journal.

“Gold’s recent ascent is enough to give some vertigo. Since the start of 2011, the spot
price of the yellow metal has increased almost $500, or 35%, significantly outperforming its peers,” according to a Journal writer.

“…some central banks are starting to buy gold,” Richard O’Brien, chief executive officer of Newmont Mining Corp., told the Journal recently.

So if people can’t find jobs and the money supply has collapsed like it did in 2008, then why not just print more money?  That was a question asked on Ask.com the other day.  (read the answer here)

Here is a debate on returning to the gold standard. (read more …)  Here is one of the best arguments in favor of the gold standard. (read more…)

Here is a video on what is happening to the value of the U.S. Dollar (view it here …)

Should the United State return to the gold standard?

Fact: Americans produced more wealth between the 1833 and 1933 than any period in history!  …and the U.S. was on the gold standard.

The historical precedents are clear.   The U.S. should return to the gold standard.