This could be a good thing to keep the feds from printing money.
http://www.newsmax.com/StreetTalk/Forbes-gold-standard-dollar/2012/09/06/id/450971
Low interest rates and extremely accommodative monetary policies will leave the country with no choice but to return to a modern version of the gold standard, said publisher and one-time GOP presidential hopeful Steve Forbes.
The GOP platform has called for a commission to study the feasibility of the gold standard, which attaches the value of the dollar to a fixed weight of gold.
President Richard Nixon dropped the gold standard in 1971 and opened the era of a fiat dollar. Supporters of the gold standard’s revival say the plan would prevent the government from living outside of its means like it does today.
...Since the downturn, the Fed under Chairman Ben Bernanke has slashed interest rates to near zero and has injected some $2.3 trillion into the economy by purchasing assets such as Treasury holdings or mortgage-backed securities from banks, a monetary policy tool known as quantitative easing that floods the economy with liquidity in way to encourage investing and hiring.
Critics say the move consists merely of printing money out of thin air and has planted the seeds for inflation down the road.
Such policy would be undoable under a gold standard, since the amount of money in circulation is tied to a fixed amount of gold.
“In order to work properly and productively, markets need a reliable pricing mechanism,” Forbes wrote.
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