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

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Gold and Silver Chart Analysis January 2023 with Patrick Karim

This week we bring you some silver candlesticks. Sadly not the nice shiny ones your grandmother left you, no these are much more useful. We’re talking about candlesticks on charts and what they can tell us about both the gold and silver price in the coming weeks.  Patrick Karim of NorthStarBadCharts.com joined us over on […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Gold and Silver Chart Analysis January 2023 with Patrick Karim

This week we bring you some silver candlesticks. Sadly not the nice shiny ones your grandmother left you, no these are much more useful. We’re talking about candlesticks on charts and what they can tell us about both the gold and silver price in the coming weeks.  Patrick Karim of NorthStarBadCharts.com joined us over on […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE