The subject of a Gold Standard is in the media again. Note that I use the indefinite article. There is more than one interpretation of what a Gold Standard is. But still, it is being discussed, if mostly to the guffaws of the evangelical Keynesians – those same mainstream economists who have, unrepentantly, led the world’s economies to the brink.
Two Gold aficionados, Stephen Moore and Herman Cain, have been nominated to the Federal Reserve Board by President Trump. Are we on the cusp of a Gold Standard? Is there still time to stop the collapse of the fiat debt?
There are seven members of the Board of Governors of the Federal Reserve. Even if both Moore and Cain are confirmed by the Senate, and even if they do understand money, they are still a minority. There can be no doubt that any views that they have on Gold will be smothered by discussions about the correct rate of interest to force on the market. I would also hazard the guess that they have little idea how to effectively make the transition.
No, this alone will not make any difference. It will take a mass demand from an educated public to bring about a Gold Standard. When will that happen? Never. There is no Gold-educated public, so there can be no mass demand.
Gold can be slid in via the back door. How so?
What does it mean when we talk about ‘getting Gold back into circulation’? Gold and silver coins are available right now, yet no one uses them to make transactions at the local store – or anywhere else. Why would you, when you can keep them safely tucked away and use a soggy dollar bill instead? So, Gold and silver do not circulate, even though there is plenty of opportunity for them to do so. Yet, for as long as we all continue to use these soggy dollars, then Keynesian machinations will continue to twist and distort transactions and investments.
So the question is: why do Gold and silver not circulate? The answer, as articulated at Monetary Metals, is that they paid no interest. Now they do. And now Gold and silver are circulating again. Self-interest is a wonderful thing. As it scales up, so more and more Gold and silver will be producing an income – in Gold and silver.
Now that is circulation; that is the Gold standard.
It still does not answer the question of how we transition from here to there without a collapse of the fiat debt. Monetary Metals also has the answer to that – Gold Bonds.
Check out Monetary Metals and get excited.