Steve Forbes, chairman of Forbes magazine and former presidential candidate recently conducted an exclusive interview with HUMAN EVENTS. In this interview, he floated the idea that a return to the gold standard for the U.S. Dollar seemed likely because the U.S. Dollar is so sick, and without doing that the economic woes of the country would not go away. He noted, “What seems astonishing today could be conventional wisdom in a short period of time.” What does he mean by this? Well, right now people are still accustomed to stimulus money, and the idea that the government can prop up the economy and various markets by injecting tons of liquidity into the system. However, tons of liquidity has been injected–TRILLIONS of dollars, and what has it done for unemployment? NOTHING. What has it done for real estate? NOTHING! It has actually kept the DJIA propped up at lofty levels in spite of declining revenues, rampant inflationary pressures, and increased taxation. But this won’t last forever. At some point the house of cards comes toppling down.
In order to fund our massive $14 Trillion debt, we need a lot of foreign capital inflow coming into our country. When demand is weak, we run into problems since our debt obligations don’t go away–even though our income does. Having some kind of a gold standard will increase demand as the perceived and real value of our currency will increase. This is a good idea, and Forbes is correct that right now it seems like a pipe dream, but as this economy unfolds people will come to the realization that the only thing of real value is tangible assets. So, whether the U.S. Dollar is backed by gold, or whether YOU PERSONALLY have gold will essentially end in the same result: maintaining some kind of stability in the purchasing power of your currency. I urge you then to acquire metals, as it may just be our only viable option to trade for other valuable goods and services. Not matter the outcome, demand for gold and silver is soaring. Take advantage of it.
