Return to the Gold Standard Could End the Federal Reserve

By Ryan DeLarme,
Originally Published on January 12th, 2019

If you’ve ever considered investing in gold it would seem that now might be a good time to do so. Gold has seen continuous gains in the market, Gold has recently made it’s six month highs, and many countries are beginning to increase their Gold supply, particularly; China, Ireland and Tanzania.

            Keep in mind that currently there are a couple house resolutions on the back burner that could potentially put us back on the Gold Standard. As things are now, the FED controls the money and how it is handled, they can raise and lower interest rates at will. They have actually increased four times since 2016, whereas in the 8 years prior it was raised only once, so it’s becoming clear that something is going on. Also keep in mind that this is all happening just after the Rothschild’s claimed they are getting out of the trust business.

            The Gold Standard would put actual value to our currency and it would not deflate, it would not be able to be printed out of thin air like the fiat currency we are presently accustom to. From the very dawn of America until 1971, the country had used the “gold standard” for money. Under this system, U.S. currency was backed by physical gold, much of which kept in a heavily guarded location in Fort Knox, Kentucky. This was intended to keep the price of money relatively standard and prevent runaway inflation, i.e. one dollar equals _x _grams of gold. Gold standard supporters note that the two decades in the past century with the highest inflation were the 1910s (when the Federal Reserve was created and started exerting control over the money supply) and the 1970s (when the gold standard ended).

The summary of H.R. 5404 includes what opponents of the Bill have said, stating:

“Opponents argue we abandoned the gold standard decades ago for a good reason, and it would be foolish to return.

When the Great Depression hit, ‘People hoarded gold instead of depositing it in banks, which created an international gold shortage,’ Federal Reserve vice president and deputy director of research David Wheelock said. Countries around the world basically ran out of supply and were forced off the gold standard.

The U.S. mines a lot of gold, but we’re not the biggest producer, Wheelock continued. The bigger suppliers of gold would have more control over our monetary policy, and there’s no reason to have it because we can get the advantages of the gold standard and avoid the disadvantages without being on a gold standard. Research suggests also that the sharp decrease in domestic manufacturing employment in recent decades is primarily due to other factors, such as automation.”

As Gold continues to see gains, the stock market is becoming increasingly volatile. It is not just gold that’s on the rise either, Silver and even Palladium are also doing well currently. I wouldn’t dare go on record saying that  2019 will see us readopting the Gold Standard, but that isn’t to say that it won’t either, in fact from my own vantage it seems more likely now than it ever has.

Further reading: