Judy Shelton’s tweet this morning got some good responses:
Under the gold standard, the value of the dollar would be fixed to a certain amount of gold
NEW BRUNSWICK, N.J. (AP) — Republican Jeff Bell spent three decades in Washington working on policy and wrote a book promoting all aspects of social conservatism. But so far his campaign for the U.S. Senate has centered on just one issue: returning the United States to the gold standard.
“We are in a situation of stagnation,” Bell said earlier this month in a speech to a real estate conference in New Brunswick. “Why don’t they let market interest rates return to our economy?”
Like other supporters of the gold standard, Bell is an acolyte of Ronald Reagan and Jack Kemp, the late congressman, secretary of housing and urban development and vice presidential nominee who made the call for cutting taxes to stimulate the economy part of a national debate in the late 1970s. Bell, now 70, won the Republican nomination for a New Jersey U.S. Senate seat in 1978 largely by advocating the kind of Reagan-era tax cuts some credit with spurring the economy.
Ralph Benko: A Money Revolt is needed: Fix The Dollar With Gold
Ralph Benko for Townhall.com:
John Tamny spots the recession in this piece for Real Clear Markets:
Looking at oil and the gasoline that it is ultimately refined into, the prices of both are high because the dollar is cheap. Keynesians will doubtless note how expensive gasoline will depress consumption, but the greater, more “recessionary” negative of $4 gas is how the cost of one of life’s essentials will depress savings, and with that, the growth capital that funds entrepreneurialism. Devaluation is surely cruel to the consumer, but it’s devastating to the entrepreneur, not to mention the individuals who might like to work for the entrepreneur.
So while the always faulty GDP number has yet to register a downturn, fret not because we’re in the middle of one. Inflation, meaning a decline in the unit of account, always coincides with reduced savings, and then a misallocation of available savings into unproductive, tangible assets least vulnerable to the currency devaluation.
In short, $1,500 gold IS the downturn, precisely because of what it tells us about the direction of limited capital. As for “recession”, though painful, that’s what we’ll hopefully celebrate sooner rather than later as investors reorient capital away from land, art, rare stamps and faulty lenders/investors who’ve bought into the money illusion that is today’s economic pain.