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Bob Kneisley

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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?

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    Apr 22 2013: Bob, I don't think it is that simple. The Britton Woods Act included 44 nations that all agreed on a set price of gold and they would all use the US Dollar as the standard. The chance of that occuring again is almost nil.

    One idea that was discussed a week or so ago was the use of the Bit Coin.

    I do think your conversation is necessary and that a new basis for international standards is required. Had the Euro caught on it may have become the new and accepted medium.

    As the stability of Europe is still questionable I fear that the US is on the path for both a recession and a depression and perhaps at the same time ... the value of the US dollar is in deep jeaporady and more countries are on the verge of fiscial instability.

    After the falls are complete perhaps the major nations will once again approach the market and acceptable standards. In my opinion the United States has demonstrated what is not a viable method ... the fed ... keynesian economics ... and deficit spending ... etc ...

    I hope that someone who understands this enters and gives us all good counsel.

    I wish you well. Bob.
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      Apr 22 2013: Imagine a Monopoly game. What will be the result if, in the middle of the game, we give each player another complete set of the various colorful denominations of currency? The number and availability of properties remains constant but the supply of money has increased. There are only two possibilities: Either people will just keep the fiat money and not spend it (highly unlikely), or they will use the "new" money to outbid others in the frenzy to accumulate wealth. Prices escalate to assimilate the new money supply. What cost $220 before now costs $400! Buying power of the dollar has diminished while goods and services have remained constant. Welcome to Inflation Monopoly! Only the Banker wins.

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