Good As Gold. . .

(Good As Gold. . .)

On March, 24th. 1945, the Western Allies began to cross the Rhine and into Germany proper. Two operations, PLUNDER that breached the river proper and VARSITY, a massive airborne effort that was larger than OVERLORD and MARKET GARDEN combined. This is not a history lesson, however. Sure, one could discuss how the U.S and Iran traded pot-shots in Syria, with Tehran becoming the junior partner in the new Beijing-Moscow relationship. How there was no Democrat support in the GOP-sponsored "Parents Bill of Rights." Or that the banking crisis that has yet to fully resolve itself, with European institutions now feeling the effect and Janet Yellin making up her mind on whether banks are getting a full bailout or not. And the Administration now wanting to re-make air conditioners go the way of the gas stove.


Then there is the Fed who seems just as confused as the erstwhile Treasury Secretary. To paraphrase Genesis, everybody is in :"The Land of Confusion." This loss of faith is widespread. Now, what, and more importantly who, can restore that faith ? The President ? Secretary Yellin ? Congress ? These options can all be considered but what is probably really required is an external idea.


The United States should go back to the gold standard. If a "dollar" can be exchanged for a specific amount of the metal, the Dollar will remain the world reserve currency all the talk about the insurgent yuan would cease. If the standard were adopted, that would compel government to only spend what can be redeemed and it necessarily would limit federal benefits so that the debt crisis could be alleviated somewhat.


But what a possible switch back to the gold standard really represents is that there is such a dearth of confidence in the people in charge and that is beyond just government. It is true that returning to the gold standard can some volatility and the price of gold is always fluctuating, But this would be a statement that the Dollar is being moved from the chaotic global financial system and would provide its own stability, In any event, it would be a golden opportunity.

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