Last month, we reported a growing sentiment amongst the GOP to return to the gold standard, thus restoring the link between the dollar and gold. Now that school of thought has one more prominent supporter.
Steve Forbes, the publisher and one-time GOP presidential hopeful, suggests that with such low interest rates and the current accommodative monetary policies, the United States will have “no choice” but to return to the gold standard.
The Moneynews report from Forrest Jones points out that a modern version of the gold standard would “prevent the government from living outside of its means like it does today.” Tying the amount of money in circulation to a fixed amount of gold will provide a reliable “pricing mechanism” and control inflation.
Forbes adds, “The Obama/Bernanke Federal Reserve has been an abysmal failure. No major country’s central bank has been so destructive since the Fed in the 1970s; prior to that, nearly a century ago, it was Germany’s central bank, which created a hyperinflation that helped set up an environment for the Nazi revolution.”