byÂ Â Paul Dykewicz , Human Events
A return to the gold standard by the United States within the next five years now seems likely, because that move would help the nation solve a variety of economic, fiscal, and monetary ills, Steve Forbes predicted during an exclusive interview this week with HUMAN EVENTS.
â€œWhat seems astonishing today could become conventional wisdom in a short period of time,â€ Forbes said.
Such a move would help to stabilize the value of the dollar, restore confidence among foreign investors in U.S. government bonds, and discourage reckless federal spending, the media mogul and former presidential candidate said.Â The United States used gold as the basis for valuing the U.S. dollar successfully for roughly 180 years before President Richard Nixon embarked upon an experiment to end the practice in the 1970s that has contributed to a number of woes that the country is suffering from now, Forbes added.
If the gold standard had been in place in recent years, the value of the U.S. dollar would not have weakened as it has and excessive federal spending would have been curbed, Forbes told HUMAN EVENTS.Â The constantly changing value of the U.S. dollar leads to marketplace uncertainty and consequently spurs speculation in commodity investing as a hedge against inflation.
The only probable 2012 U.S. presidential candidate who has championed a return to the gold standard so far is Rep. Ron Paul (R.-Tex.).Â But the idea â€œmakes too much senseâ€ not to gain popularity as the U.S. economy struggles to create jobs, recover from a housing bubble induced by the Federal Reserveâ€™s easy-money policies, stop rising gasoline prices, and restore fiscal responsibility to U.S. governmentâ€™s budget, Forbes insisted.
With a stable currency, it is â€œmuch harderâ€ for governments to borrow excessively, Forbes said.Â Without lax Federal Reserve System monetary policies that led to the printing of too much money, the housing bubble would not have been nearly as severe, he added.
â€œWhen it comes to exchange rates and monetary policy, people often donâ€™t graspâ€ what is at stake for the economy, Forbes said.Â By restoring the gold standard, the United States would shift away from â€œless responsible policiesâ€ and toward a stronger dollar and a stronger America, he said.Â â€œIf the dollar was as good as gold, other countries would want to buy it.â€
To read more, visit:Â http://www.humanevents.com/article.php?id=43439
Don’t let the MSM censor your news as America becomes Great Again. Over 500,000 Americans receive our daily dose of life, liberty and pursuit of happiness along with Breaking News direct to their inbox—and you can too. Sign up to receive news and views from The 1776Coalition!
We know how important your privacy is and your information is SAFE with us. We’ll never sell
your email address and you can unsubscribe at any time directly from your inbox.