Gold On The Table

PUBLISHED: 6:36 AM 7 Apr 2018
UPDATED: 7:04 PM 7 Apr 2018

Bill Introduced To Return U.S. To Gold-Backed Currency

Many say this would do wonders for the economy.

A measure has been introduced in Congress that would return the United States to gold-backed currency instead of the Federal Reserve System we currently have in place and many are arguing that this will do wonders for the economy.

If passed, the legislation would end the Federal Reserve’s power of being able to influence the economy by printing more money and having power over inflation.

Sponsored by GOP Congressman Alex Mooney, H.R. 5404 would order the Secretary of the Treasury to define the U.S. dollar based on the market closing price for gold that day.

Furthermore, it would also require all Federal Reserve banks to make it so people could trade their cash for real money.

The legislation would also force the U.S. government to reveal all of its gold holdings. It would also force them to report government any transactions when it comes to gold.

The government would have, from the time the bill is passed and the day the dollar becomes officially exchangeable with gold, approximately two and half years, to ensure a smooth transition without any sudden shocks.

The Federal Reserve would not just disappear as some politicians have advocated for in the past. However, instead of controlling the money supply, they would simply dispense it.

The legislation cites the fact that the U.S. dollar has lost a whopping 96 percent of its purchasing power since the Fed was created in 1913.

Since the entire objective of the Fed is to maintain stable prices, according to these Congressional findings, they have failed.

“American families need long-term price stability to meet their household spending needs, save money, and plan for retirement,” the measure argues.

“The Federal Reserve’s trickle down policy of expanding the money supply with no demand for it has enriched the owners of financial assets but endangered the jobs, wages, and savings of blue-collar workers,” the bill states.

“The American economy needs a stable dollar, fixed exchange rates, and money supply controlled by the market not the government,” the legislation adds.

“The gold standard puts control of the money supply with the market instead of the Federal Reserve. Restoring American middle-class prosperity requires change in monetary policy authorized to Congress in Article I, Section 8, Clause 5 of the Constitution,” it reads.

In a recent op-ed, Congressman Mooney argued strongly for the return to the gold standard.

While Congressman Mooney and President Trump both agree “bad trade deals,” like those with China and Mexico have played a major role in the weakening of America’s manufacturing sector, Mooney argues that the Fed is also to blame.

Mooney insisted that due to the fact that the Fed’s “ inflationary policies priced out U.S. manufacturers from global trade,” they share fault.

“Since 2000, their prices have risen nearly 50%, compared with about 25% for German competitors — mirroring the domestic inflation rates in each country. As a result, manufacturers fled the U.S., much the way American families have fled high-tax states,” Mooney argued.

Luckily, the solution is a simple one: returning to the gold standard and giving the control of money back to the American people.

Since 1971, the American economy has never been able to find just the right amount of currency to keep in circulation, and have constantly had to print more money.

Mooney argued that this is due to the fact that it is impossible to guess the market’s demand. He went on to say that this is why cryptocurrencies, such as bitcoin have become so popular.

“The gold standard is equitable and puts ‘we the people’ in control of the money supply,” Mooney asserted. “That’s why it was part of America’s founding and has been a key to the country’s long economic success.”

President Donald Trump has also said that “bringing back the gold standard would be very hard to do, but, boy, would it be wonderful.”

Mooney echoed those sentiments when he said, “Returning to the gold standard is a way for the president to deliver on his promise of American working-class prosperity.”

Perhaps it is time to move back to the gold standard. For too long the Fed has been allowed to manipulate monetary policy and as Mooney points out, it is the average America who suffers the most.

However, the elite owners of the central bank stand to profit. If President Trump truly wants to make America great, and rich again, Mooney’s bill should be considered and not tossed out simply because it would be too hard to do.

What’s more, many experts and former presidents have warned against the dangers of a centralized banking system in the past. But President Trump is the only one with the willpower to make returning to the gold standard happen.

In fact, Found Father George Washington and former President Andrew Jackson both opposed the idea of central banking. Jackson was put into office to defeat the central banking establishment, which was advocated by President John Quincy Adams.

General Ulysses S. Grant and President Abraham Lincoln also opposed the idea of a centralized banking system.

President James A. Garfield also warned against the dangers Americans would face at the hands of central bankers, citing their ability to cause inflation and depressions in the American economy.

However, the Federal Reserve Act of 1913, signed by President Woodrow Wilson, allowed the central bank to take over the American economy.

After the two and a half year transition period, America could return to the prosperous place it was once before. And that’s something everyone should be onboard with.