Republicans Considering Return to Gold Standard as Official Republican Policy

Hopefully the FT reporters involved in the story have done slightly more due diligence than occurred in last week’s FT report that the CFTC was dropping it’s 4 year silver investigation (which was immediately emphatically denied by the CFTC’s Bart Chilton), but the FT reports tonight that the Republican party is set to include ‘gold commission’ with the goal of returning the US to the gold standard as part of official Republican party policy at the RNC Monday.

While we remain skeptical that such a policy would remain a Republican goal should Romney actually be elected POTUS, if this is legitimate we have 5 words for the Federal Reserve and Mr. Bernanke:
Ron. Paul. For. The. Win!

The FT is reporting that the gold standard has returned to mainstream US politics for the first time in 30 years with a ‘gold commission’ set to become part of official Republican party policy. While this could simply be a reach for as many Ron Paul marginal voters as possible (with the view that the GOP would never really go for it); it appears drafts of the party platform from the forthcoming rain-soaked convention call for an audit of the Fed and a commission to look at restoring the link between the dollar and gold. The FT, citing a spokesperson, adds that “There is a growing recognition within the Republican party and in America more generally that we’re not going to be able to print our way to prosperity,” but “We’re not going to go from a standing start to the gold standard,” although it would provide a chance to educate politicians and the public about the merits of a return to gold. Interestingly, the Republican platform in 1980 referred to “restoration of a dependable monetary standard”, while the 1984 platform said that “the gold standard may be a useful mechanism.”
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Comments

  1. China are changing their gold reserves into fresh 1kg bars. Nicely numbers I’m sure. Which other countries are ready for a true audit before they declare a gold standard currency? I mean including re-melting of bars, to not have option to selectively drill for tungsten “contamination”.

    • It really isn’t necessary for any bar drilling to determine if gold bars are actually tungsten bars.  The speed of sound in tungsten is about 50% faster than it is in gold.  Just do a sonic test.  Pure gold has a specific number and so does tungsten.  Any number between these two probably indicates a combo of gold and tungsten.  Easily done IF those in charge of the gold actually wanted to do it.  Somehow, I doubt that they do.
       

    • I’m not kidding. They’re destined to make Jamie Dimon the fed chair,trying to convince the world with paper gold. It’s the only option they have left. Otherwise everything under their power fails.

      Just keep Stackin’!

  2. It’d be their best way to get the youover generations vote (if they’re smart lol)

  3. In a way Nixon was correct.  ”if everyone just buys American, we’ll be alright.”  NAFTA and GAT changed all that.

  4. The republicans are sabotaging their chances here.  Lets see: they pick a Mormon to lead a base of conservative Christians and against the more Democratic-leaning Catholics.  More importantly they pick a very wealthy man when the very elite have created the sparks for a class war.  Next he’s going to pander to the Ron Paul Republicans to buy votes and threaten Bernanke?
    I realize the big banks are funding Romney’s campaign which confuses me a bit.  And I do believe that if the banks want Romney that badly it’s very easy: they will tank this market quickly in Sep/Oct.  But barring that, I believe we have 4.5 years left of Barry. 
     

    • I agree, something doesn’t pass the smell test..

    • “But barring that, I believe we have 4.5 years left of Barry.”

      Holy crap!  I just about lost my dinner at that thought.  Got to be more careful of what I read after a meal.  X-p
       

  5. Return to metallic money is the only solution. If they’d simply make 10 gram coppers (pretty much what ‘Presidential dollar’ coins are anyway!) the legal equivalent to banknotes (which is equitably factual), and concurrently remove ‘legal tender’ status from banknotes, those ‘coppers’, would maintain State and local economies seamlessly … silver would emerge in an appropriate ratio to them … then gold would follow soon thereafter. Also, if free mintage was offered for ‘scrap copper’, the project would be bolstered with relatively free bullion! I even venture that if a great deal of this ‘scrap’ is diligently sought out as self sustaining employment by unfortunates, there might be enough collected up to fund liquidation of the Federal Treasury Bond indebtedness!

  6. yeah, sure. i’ll leave this in the believe it when i see it category. so you’re telling me a group of politicians is going to willingly impose self control on their spending through a gold standard? no, with these people running the show, we’d lose all our gold reserves, if we even have any left. you can’t run 600 billion dollar trade deficits on a gold standard. so before i can take that seriously, i’d have to see them balance the budget, good luck with that one!

  7. Talk about silver positive!  Consider how much gold would have to be confiscated world wide to back all those Benny Bux!!!

  8. We would have to do a credit reset like Iceland to return to the gold standard and doing so will crash anyone holding US toilet paper bonds.

  9. “We would have to do a credit reset like Iceland to return to the gold standard and doing so will crash anyone holding US toilet paper bonds.”

    Oh, well.  Crap happens!  The bond market is in a gigantic bubble anyway.  It WILL pop sooner or later.  Might as well take the suspense out of it and pop it sooner.  It amazes me that anyone actually buys these crap bonds… or any bonds, for that matter.  A bond is nothing but a debt obligation and the world is awash in that junk.  As with everything else, the more there is of something, the less valuable it becomes.
     

  10. Photo

  11. Ronald Reagan wanted to return to the gold standard. He found himself in a hospital with a chunk up lead in his brain.

  12. This is all complete BS and a distraction for Honest Money people.
    Countries that are part of the IMF are NOT ALLOWED to have a gold backed currency!
    It’s part of the agreement.
    Any news articles or economists that even talk about gold being part of the basket are BS.
    An indexed currency cannot have gold as part of the index if the country is part of the IMF.
    Keep stacking…

  13. I don’t even know how today it’s possible to return to the gold standard cause you have readjust the gold to dollars price which will make the price of gold 6000-7000$ per ounce because there’s too much dollar supply.

    • OK… and the problem with that is…?

      If the nice folks over at GATA are correct, both the governments and the big bullion banks have been colluding for years in an effort to depress the prices of both gold and silver.  Had this not occurred, might not gold already be $10,000 an oz. and silver $1,000 an oz. by now?  This is quite possible and it says MUCH more about the true value of the US dollar than it does about the value of gold and silver.

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