Obama’s Golden Opportunity – Return to Gold Standard

The Washington Times’s Lawrence Hunter wrote last week that U.S. President-elect Barack Obama has an opportunity to reset the economy and restore the U.S. dollar to its preeminence as the world’s reserve currency by reestablishing the gold standard. He writes:

First, the new president-elect should state his unshakable resolve to preserve U.S. sovereignty over its currency and economy. He must root his resolve in a declaration calling upon the Congress to exercise its authority under Article I, Section 8 of the United States Constitution to regulate the value of the dollar and maintain the standard by which the value of the dollar is measured; and that he will do everything in his power to faithfully execute and implement the law Congress adopts to carry out that responsibility.

Second, President Obama should ask the Congress to establish the standard by which the value of the dollar is measured – the monetary numeraire – by restoring the dollar’s link to gold and defining the measure of the dollar in terms of a specified weight of gold.

Third, President Obama should ask the Congress to send him legislation to sign within his first 100 days as president eliminating the Fed’s discretion to debauch the currency and set interest rates by requiring it to conduct monetary policy subject to a simple, non-discretionary rule. That rule would instruct the Fed to conduct open-market operations (i.e., buy and sell securities in the open market) with the sole purpose of maintaining the dollar price of gold within a narrow statutory band about the statutory price of gold that defines the dollar’s value as a financial measure or numeraire. No large gold reserves are required under such a gold-price rule.

Fourth, in order to ensure that markets, not bureaucrats, enforce the law and automatically maintain a sound dollar, President Obama should ask the Congress to require the U.S. Treasury Department to redeem dollars for gold and gold for dollars upon demand at the statutory price of gold.

Mark OByrne

Also on news-goldcore-com

Videos

Listen: The Case For Gold and How To Buy It

Gareth Soloway – This is the catapult that will send gold to new highs

Former Fed Insider Danielle DiMartino Booth Gives Us Her Interest Rate Predictions

Blog posts

A Showdown in Gold Is Imminent

The industry-leading In Gold We Trust Report was released this week. So convinced are the authors “that the monetary and geopolitical situation as well as the chart development of the gold price suggest that a showdown in gold is imminent” that the 2023 report is entitled “Showdown”. This is arguably one of (if not the) […]

READ MORE

Economists Write Yet Another Report To Explain How Inflation Happens

It’s always good to have regular validation about decisions we choose to make. Take the decision to buy gold, for example. At the moment central bankers and economists just can’t help themselves but make statements or hold press conferences or publish papers that effectively say to gold investors ‘KEEP GOING!’. Whether it is Andrew Bailey […]

READ MORE

Listen: The Case For Gold and How To Buy It

This week Stephen Flood, GoldCore CEO, spoke to Stuart Berryhill of the Money Vision U podcast. Money Vision U is a financial literacy podcast that describes itself as the “financial class you should have in High School”. We think that one of the best things you can do for people today is to give them […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Listen: The Case For Gold and How To Buy It

Gareth Soloway – This is the catapult that will send gold to new highs

Former Fed Insider Danielle DiMartino Booth Gives Us Her Interest Rate Predictions

Blog posts

A Showdown in Gold Is Imminent

The industry-leading In Gold We Trust Report was released this week. So convinced are the authors “that the monetary and geopolitical situation as well as the chart development of the gold price suggest that a showdown in gold is imminent” that the 2023 report is entitled “Showdown”. This is arguably one of (if not the) […]

READ MORE

Economists Write Yet Another Report To Explain How Inflation Happens

It’s always good to have regular validation about decisions we choose to make. Take the decision to buy gold, for example. At the moment central bankers and economists just can’t help themselves but make statements or hold press conferences or publish papers that effectively say to gold investors ‘KEEP GOING!’. Whether it is Andrew Bailey […]

READ MORE

Listen: The Case For Gold and How To Buy It

This week Stephen Flood, GoldCore CEO, spoke to Stuart Berryhill of the Money Vision U podcast. Money Vision U is a financial literacy podcast that describes itself as the “financial class you should have in High School”. We think that one of the best things you can do for people today is to give them […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE