Gold Standard Archive

Hoover statement from the comment section

Just because he got filthy rich inventing the vacuum cleaner doesn’t mean he knew macro. Yes, they were on the gold standard, but the forces at work took us off it about a year and a half later. Statement by President Herbert Hoover on March 8, 1932. “Nothing is more important than ...Read More

MMT on MarketWatch

MMT breaking through??? Deficit hysteria grips Washington By Darrell Delamaide February 16 (MarketWatch) — Deficit hysteria is rising to fever pitch in Washington as the political jockeying over the budget begins in earnest. “Fiscal nightmare,” “buried under a mountain of debt,” “awash in red ink” – these are some of the colorful ...Read More

Zoellick Sees ‘Elephant,’ Not Endorsing Gold Standard

Back pedaling from yesterday’s remarks, but just getting the fish hook in deeper. Gold is a non financial asset,not an ‘alternative monetary asset’ Starting to look like the QE fairy dust is wearing off. The dollar selling was the focus of the ‘risk on’ hysteria, and it looks like the dollar may ...Read More

Irving Fisher quote

For all you gold bugs. Tell me Irv didn’t get it! “The U. S. is headed toward a period of business depression, probably beginning within the next two years, which may exceed that which preceded the War. . . . The only thing that will save us is a new gold policy ...Read More

1934 Cartoon

We went off the gold standard in 1934 and solvency was never again an issue for the Federal government. Those ‘sound money’ people were wrong then and are wrong now as taxes function to regulate aggregate demand and not to raise revenue per se. This cartoon is claimed to be from the ...Read More

quotes…

>    >   (email exchange) >    >   Two quotes from a compilation of Einstein’s writings and speeches >   that I thought you’d enjoy: >    1) “The gold standard has, in my opinion, the serious disadvantage that a shortage in the supply of gold automatically leads to a contraction of credit and also of the amount of ...Read More

Ruml 1946

Note the US was back on gold internationally after Bretton Woods: The Bretton Woods Conference took place in July 1944, but did not become operative until 1959, when all the European currencies became convertible. Under this system, the IMF and the IBRD were established. The IMF was developed as a permanent international ...Read More

Re: To prevent bubbles, restrain the Fed

[Skip to the end] (email exchange) Right, add CATO to the list of organizations that have no credibility and now put the Dallas Fed on the suspect list as well. The difference between now and 1929 is back then we were on the gold standard he proposes, and therefore didn’t have the ...Read More

FT: Time for comrade Paulson to pull the plug on the Fannie and Freddie charade

[Skip to the end] Totally misguided regarding public purpose. For one thing, the shareholders of the agencies are still there for ‘market discipline’ – all that’s been done for them is eliminated liquidity issues, not solvency issues. At the end of the day a lot of houses were built for a lot ...Read More

A Rescue Plan for the Dollar

A Rescue Plan for the Dollar By Ronald McKinnon and Steve H. Hanke The Wall Street Journal, December 27, 2007 Central banks ended the year with a spectacular injection of liquidity to lubricate the economy. On Dec. 18, the European Central Bank alone pumped $502 billion — 130% of Switzerland’s annual GDP ...Read More