Thursday, August 23, 2012

Republican Platform May Include a Gold Standard Commission

Is it the Ron Paul Effect?
Drafts of the Republican Party platform (which will get voted on and ratified at the convention next week) have included a call for an audit of the Federal Reserve monetary policy and a commission to investigate the feasibility for a return to the gold standard.
Marsha Blackburn, (TN-R), co-chair of the platform committee, said the issues were not adopted to keep Paul and his people happy, but because Republicans at large wanted it. (They did?)
Fact: Richard Nixon broke the link between gold and the dollar during the 1971 oil crisis.
During the Reagan years the party platform included a “restoration of a dependable monetary standard," (1980), and “the gold standard may be a useful mechanism” (1984).  It hasn't been included in any platforms since. Interesting to note that Reagan was not in favor of the gold standard.
Federal Reserve Chairman, Ben "the Beard" Bernanke,  is not a fan of the gold standard either. Why? Bernanke is cited as having said that in the 1800s the U.S. was prone to frequent booms and busts in part because the gold standard left no discretion in the banking system over interest rates or the money supply.
Governor Romney is not a big supporter of the idea. He's also not a big fan of Bernanke..
Romney told CNBC, "I know that in the past when we had a gold standard, the idea that somehow it was detached from or free from any interference by Congress was simply wrong because even with the gold standard someone has to decide what is the conversion rate between the gold and the dollar."
Romney, Bernanke, or Paul fan, now may be a good time to invest in gold!

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