Going for the Gold Standard?
There’s an article in USA Today about returning to the gold standard. The timing of this article is so ironic because it wasn’t until last week that I had even heard about the gold standard. My dad brought home this totally cool thing that a billionaire named Sam Zell sent him. It’s a “moving sculpture” of an old mine. A miner in a cart goes around the sculpture to a song titled “Give Me That Old Solid Dollar.” It’s about having faith in the U.S. dollar, not printing too many dollars, and how we need to keep the government on top of all this.
When I read the headline in USA Today, Should We Return to the Gold Standard?, I thought everybody should listen to Sam Zell and get to know his song. The gold standard means tying the value of the U.S dollar to the price of gold. When this is done, a country can only print the amount of money that is equal to the amount of gold it owns. The U.S. had the gold standard until 1971 when Richard Nixon finally got rid of it, but according to the article it ended for most people in 1933, when the government no longer allowed individuals to redeem dollars for gold.
People are talking about bringing back the gold standard now because they are worried. Worried about inflation and the national debt, and worried that the government is going to print a lot more money because they can.
I love listening to Sam Zell narrating his moving sculpture. This is what Mr. Zell, capitalist, entrepreneur, and an American, says…
“The confidence in paper currency is predicated upon the belief that the economic might of a country is sufficient collateral for its currency. There is an unsaid bargain here: we won’t back our currency but we will be prudent so as to preserve value.
Here in the 21st century we have broken that promise. A return to discipline is the only avenue to restore confidence. Without it, we look to the abyss. We need a strong currency and strong leadership to excel in the future.”
Discipline is a hard act to follow. As a student, I need it everyday. As a country, we need it too. Let’s get the confidence, leadership and discipline our country needs so we can all have the economic freedom we, as Americans, deserve.
Peace Love Profits,
Blake
