Why a Gold Standard?

We believe a gold standard will strengthen the confidence in and prestige of the American dollar. Over the last few years there has been enormous money printing to counter deflationary trends, and this in turn has brought uncertainty to global markets. America had a gold-backed dollar before and can thus return back to it.

While the trend in technology is toward digitization, there must ultimately be something tangible backing digital money. Tangible things are more finite, real, scarce, and potentially secure (a massive hacking attack can erase digits within a computer). Thus, there is no reason why money — even digital money — cannot have gold backing.

Importantly, a gold standard would force more fiscal discipline in government, as limits would be placed on how much money can be created to pay for expenses, thus stabilizing inflation. Interest rates would likely move up under a gold standard, since money would no longer have to be printed continuously to cheapen the cost of it for outstanding obligations and to stimulate growth, which would encourage savings and thus bring longer-term economic benefits.  An added benefit would be that investors would not be chasing as much risk to gain a modest yield, which in turn would stabilize global markets.

These are just a few reasons why a return to a gold standard would be beneficial, and it is the intent of this blog to cover the pros and cons in more detail.

Author: globalgoldreset

I will be blogging about the pros and cons of a gold standard to educate the public about the issue. Visit me on other social media.

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