Whatever vestigial link between US dollars and gold ended after Bretton Woods was terminated on 15 August 1971. The classic gold standard was abolished long before in 1933 when the despotic executive order of United States President Franklin D. Roosevelt that made it illegal for citizens in the land of the free to own gold.<\/p>\n
There are periodic calls to return to a gold standard as a way to reign in government spending. The return to a pre-1933 gold standard would be a huge step in the right direction.<\/p>\n
A true gold standard uses gold as money. A true gold standard in the US would redefine dollars as a quantity of gold. A true gold standard is NOT saying that gold is worth $35 per ounce as was the case in Bretton Woods.<\/p>\n
This is explained in fantastic detail by Mises Institute Senior Fellow Joseph T. Salerno in his lecture Gold Standards: True and False<\/a>.<\/p>\n It sounds click-baity to me too, but Jim Rickards is predicting $10,000 gold<\/a> as the result of a currency reboot. The link above is to a sales page (which I get zero benefit from and considered not linking to) that explains in his own words why Rickards thinks Trump will return the US to a “gold standard”.<\/p>\n James G. Rickards is a New York Times bestselling author who appears on networks like RT, CNBC and Bloomberg. He’s testified in front of congress, he’s done some consulting on currency for the CIA and Pentagon. So there are some reasons to listen to what he says and at least evaluate his rationale and his arguments.<\/p>\n If I can quickly summarize his argument it’s that the US is deeply in debt, debt has crushed the middle class, a gold standard is one of the keys to “Making America Great Again” and so President Trump going to move the US back onto a gold standard. Rickards also claims he has some inside information that gives him additional reason to believe a return to such a gold standard is likely.<\/p>\n I agree the US is deeply in debt. I also agree the economy is broken and stacked against the middle class in favor of the super-wealthy. I also agree that a return to a classic gold standard similar to what existed pre-1933 would help America.<\/p>\n There is also some evidence that Trump is receptive to the gold standard.<\/p>\n Trump has<\/em> stated to GQ<\/a>: “Bringing back the gold standard would be very hard to do, but boy would it be wonderful. We\u2019d have a standard on which to base our money.” In the same montage of questions he also stated that Justin Bieber shouldn’t be deported and that he’s not a fan of Man Buns.<\/p>\n Trump has also tweeted this:<\/p>\n Remember the golden rule of negotiating: He who has the gold makes the rules.<\/p>\n \u2014 Donald J. Trump (@realDonaldTrump) March 21, 2013<\/a><\/p><\/blockquote>\nA Return to the Gold Standard in the US?<\/h1>\n
Would Trump Support a Gold Standard?<\/h1>\n
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