The best way to ensure the soundness of our financial system is with a gold standard, according to a New York Sun editorial
"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," the editorial 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.
"This is a party whose last presidential platform, the one on which Governor Romney was supposed to stand, included a plank on monetary reform. It emerged from a fierce primary," the editorial adds.
"That plank was constructed at a time when the value of the dollar was in a free-fall, having collapsed less than a 1,600th of an ounce of gold. . . . All this debasement of the dollar has failed to solve anything — or slake the appetite of Wall Street and the banks for an ever greater condominium with the government."
The gold standard was ended in 1971. Steve Forbes, chairman of Forbes Media, has been a staunch advocate of returning to it for years.
Brian Domitrovic, an economic historian at Sam Houston State University, supports the idea too.
"Gold performs the principal function that money must function when the currency system goes bad, care of central bankers," he writes in an article for Forbes
. "This is the function of holding value in a readily exchangeable form."
In adopting the gold standard, "we would take a step toward ensuring that the prosperity would last indefinitely," Domitrovic says.
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