Don't listen to those who say President Nixon abandoned the gold standard in 1971 because it had become ineffective, says money manager Nathan Lewis.
"The reason we don't have a gold standard policy today is not because it doesn't work," he writes in an article for Forbes
. "The last 20 years of the gold standard era, the 1950s and 1960s, were the most prosperous of the last century."
The reason the gold standard was dropped is "because people forgot what it was for, and how it operated," Lewis says.
"The world gold standard era didn't end because it was producing bad results, but because it was left in the hands of people who blew it up out of sheer ignorance and stupidity."
Research from the Federal Reserve indicates Fed officials don't understand the concept, Lewis writes. "Obviously, these people are clueless. Clueless people break things, and then point fingers elsewhere."
New York Sun editors
favor a gold standard too. "The way to beat the problem of Wall Street and the banks playing with taxpayer-provided money is not a game of regulatory whack-a-mole," an editorial in the paper states.
"The way to stop this raid on the taxpayers is through the restoration of a sound, stable dollar tied by law to a specified amount of gold."
And Republican leaders in Congress may be amenable to this issue, Sun editors write.
"The Republicans who will lead the next Congress are well aware of the strategic moment in respect of monetary reform," the editorial says.
"These leaders include Paul Ryan, who so pointedly questioned ex-Chairman Ben Bernanke of the Federal Reserve on the issue of gold. They include the chairman of the House Financial Services Committee, Jeb Hensarling, who is looking at a rules requirement for the Fed," the newspaper notes.
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