Jerome Powell is wrong: The gold standard would help the world

EurasiaFuture/Adam Garrie/7-11-2019

“Perhaps ironically, Powell’s monetarily authoritarian remarks about gold were likely inspired by the fact that Donald Trump seeks to appoint the pro-gold Judy Shelton to the Federal Reserve’s influential board of governors. In this sense, Powell’s remarks are symptomatic of someone speaking from defensive position. As such, Powell’s defensive remarks are demonstrative of the fact that more and more people are looking to gold as a means of getting out of the inflationary traps and debt traps that are implicitly cyclical when one’s economy is predicated on the artificial value of a fiat currency.”

USAGOLD note: When Jerome Powell was asked about the gold standard during testimony before the Senate Banking Committee, it was not the first time a Fed chairman was questioned on the subject.  Alan Greenspan and Congressman Ron Paul had a long-running discussion on the merits of gold and the gold standard in the late 1990s and early 2000s.  We thought so much of those exchanges that we posted the transcripts in their entirety at the USAGOLD website’s Gold Classics Library where they still reside today.  The following is an excerpt from the Editor’s Note introducing the Greenspan-Paul dialogue:

“In putting this page together, I was struck with Dr. Paul’s ability to cut through the political gamesmanship that necessarily comes with being chairman of the Fed to Alan Greenspan, the man and political/economic philosopher. What emerges is a powerful figure conflicted between the practical manager charged with operating within the current fiat monetary system and the philosopher-academic with a ‘nostalgia,’ as he puts it, for the days of the gold standard. Without Dr. Paul’s incisive questioning, I doubt that this aspect of the Greenspan character would have found its way to the public venue and the historical record. Though the relationship appears adversarial at first blush, one also detects a certain amount of mutual respect and interest. Says Dr. Paul of the exchanges: ‘My questions are always on the same subject. If I don’t bring up the issue of hard money vs. fiat money, Greenspan himself does.'”


Repost from 7-18-2019

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