Archive for December, 2011

Returning to gold standard…?

Tuesday, December 20th, 2011

“What would it take to set up a genuine gold standard with a working mechanism for converting US dollars into gold on demand? The first step would be to address current federal legal tender laws…. The next major step toward achieving gold convertibility would be to define the US dollar as a fixed weight of gold. Such a major change from our current practice presents significant challenges in managing the transition. … Still, the advantages of forging an inviolable link between the value of US money and gold through fixed convertibility seem to make it well worth tackling the difficulties. … Gold convertibility of the dollar would reassert the early principles embedded in both the Constitution and the Coinage Act with regard to establishing a money unit defined as a precise weight of gold or silver. … Calling for an international monetary conference would reassure the United States’ trading partners that their cooperation is welcomed, even solicited. At the same time, given the pre-eminent role of the dollar in global financial markets, it would be seen as an important step toward achieving radical international monetary reform.”
~Judy Shelton~”Fixing the Dollar Now”