TED Conversations

Bob Kneisley

This conversation is closed.

In 1970 President R. Nixon "temporarily" suspended the U.S. Gold Standard. In order to control inflation should we consider that system now?

President Nixon was embroiled in the Watergate scandal that stole the media headlines... so most Americans did not notice the abandonment of the Gold Standard. Since the standard was suspended, as now, inflation has risen each year.
Obviously, the rise of inflation is like a "tax" that siphons buying power from our citizens on a daily basis. Congress' spending was curtailed by the Gold Standard. Spending needs to be controlled today. Your thoughts?

Share:

Showing single comment thread. View the full conversation.

  • thumb
    Apr 21 2013: Stop deficit spending by returning to the gold standard ASAP! Absotutely! We forward thinking folks of Arizona now have gold and silver as legal tender. It is a step in the right direction toward fiscal sanity. While we are cleaning-up our act, let's dissolve the Federal Reserve Bank system if for no other reason than that it is NOT Federal, it is NOT a Reserve, and it is NOT a Bank. It only exists to bring the US under socialist control. Restoring the gold standard would fix all that!
    • Comment deleted

      • thumb
        Apr 22 2013: If the supply of gold compared to the supply of goods and services is so small that a one-ounce coin is too valuable for typical transactions, we would simply use half-ounce, or one-tenth ounce coins. The amount of gold available does not affect its ability to serve as money, it merely affects the QUANTITY of gold that would be used to measure a transaction. In a free market on the gold standard the simple adjustment of the purchasing power, or effectiveness of the gold-unit will regulate the economy. Printing more fiat money while keeping good and services constant merely causes prices to escalate and buying power to diminish, aka inflation. It would not be so with gold. (This is a paraphrase of E. Griffin's book, The Monster From Jekyll Island, pp 141, 142.
    • thumb
      Apr 26 2013: Well said ED!

      My best

      Bob

Showing single comment thread. View the full conversation.