The Gold Standard Is the Only Way to Prosperity

Should We Return to the Gold Standard?

Aug. 28, 2015 - 4:52 - Forbes Media Chairman Steve Forbes and Steve Moore of the Heritage Foundation discuss the markets and whether to go back to the gold standard.

Should the US Go Back to the Gold Standard?

Jun. 06, 2014 - 4:13 - Steve Forbes on future of economy

Return of the Gold Standard as World Order Unravels

THE DAILY TELEGRAPH: As the twin pillars of international monetary system threaten to come tumbling down in unison, gold has reclaimed its ancient status as the anchor of stability. The spot price surged to an all-time high of $1,594 an ounce in London, lifting silver to $39 in its train.

On one side of the Atlantic, the eurozone debt crisis has spread to the countries that may be too big to save - Spain and Italy - though RBS thinks a €3.5 trillion rescue fund would ensure survival of Europe's currency union.

On the other side, the recovery has sputtered out and the printing presses are being oiled again. Brinkmanship between the Congress and the White House over the US debt ceiling has compelled Moody's to warn of a "very small but rising risk" that the world's paramount power may default within two weeks. "The unthinkable is now thinkable," said Ross Norman, director of thebulliondesk.com.

Fed chair Ben Bernanke confessed to Congress that growth has failed to gain traction. "Deflationary risks might re-emerge, implying a need for additional policy support," he said.

The bar to QE3 - yet more bond purchases - is even lower than markets had thought. The new intake of hard-money men on the voting committee has not shifted Fed thinking, despite global anger at dollar debasement under QE2.

Fuelling the blaze, the emerging powers of Asia are almost all running uber-loose monetary policies. Most have negative real interest rates that push citizens out of bank accounts and into gold, or property. China is an arch-inflater. Prices are rising at 6.4pc, yet the one-year deposit rate is just 3.5pc. India's central bank is far behind the curve. Continue reading and comment » | Ambrose Evans-Pritchard | Thursday, July 14, 2011

Aussie Dollar Boosted by Its Own 'Gold Standard'
THE DAILY TELEGRAPH: The Australian dollar is one of the strongest currencies in the world because it is a commodity -backed currency. That’s why it hit a 29-year high against the US dollar today – and it’s all related to the gold price.

The gold price is hitting new all-time highs on a daily basis because many investors have lost faith in paper money. They believe that central bank printing presses are devaluing currencies on a daily basis.

It is the same lack of belief in paper money that has been boosting the Aussie dollar. Paper money used to be backed by gold held in a central bank, but this was abandoned all over the world, allowing central banks to print money via processes such as quantitative easing.

Today, no currency in the world is on the gold standard – all money is “fiat” money.

However, Australia has significant resources of gold, uranium, iron ore, coal and many other important and valuable commodities. They are in the ground, not in a central bank, but this is the nearest thing the world has to the old gold standard. That’s why the Australian currency is so strong.

The same is also true of currencies in Canada, South Africa and Russia. They are effectively backed by commodities in the ground. » | Garry White | Friday, April 08, 2011