Diary

Making Our Money Great Again

The Gold standard will bring about strong prosperity
The Gold standard will bring about strong prosperity

Inflation has been perhaps among least popular aspects of our current economic and monetary systems for good reason, most of us see the prices of the products and services we purchase rising every time we buy them. Bread and milk at the grocery store is always more expensive than it was just months ago. Our government currently, through the Federal Reserve system, is engaging in a practice of monetizing our gigantic national debt by printing extra currency, which causes inflation, and at the time devalues that debt. As a result of inflation, a dollar borrowed years ago can be paid back today with a dollar that is actually worth considerably less in value. So inflation is good for those who owe money, and right now our federal government owes bond holders about $20 trillion.

But inflation is like a tax on most Americans. When that which cost a dollar years ago now costs $1.15, we’ve had 15 percent inflation in that time, or the equivalent of about a 15 percent tax on the spending power of our money. Our debt should be paid off, over time, not by “monetizing” the value out of that debt through inflation, but by strongly economic growth that would instead give the federal government many more dollars, at lower marginal tax rates, to pay down the debt. This would require fiscal discipline by a body that has rarely shown ability for that, our Congress. And that very economic growth that would be needed to pay down the debt and increase the standard of living available for all Americans will require a much needed change in our monetary policy as well. That change would require we make American money great again, by having real money, not the phony and fake “federal reserve notes” paper money we have now.

We have hyperinflation coming soon, says the former chairman of the Federal Reserve, Alan Greenspan. He advocates the U.S. returning to the Gold standard to bring about the monetary stability that will prevent the hyperinflation that he’s predicting.

Tying our dollar’s value to Gold would give our money real value and prevent it’s value from being taken from it by inflation. No long would today’s dollar be worth a fraction of a dollar some short years into the future. Businesses and individuals alike can plan for the future knowing the dollar will retain it’s value. Those who lend money will know they are going to be paid back in dollars that have value, rather than dollars depleted of their value by inflation. The retention of value in the dollar will also restore incentive for saving and investing of money rather than spending it. Our current system creates far more incentive for spending money, something we do well at both the federal government levels in our family and individual levels as well. And when the money is borrowed against future earnings or revenue, the problem is only made that much worse.

The current system is under the control of the few who run the Federal Reserve, an “independent” entity that seems to be run of, for, and by those who serve on its board. We can break free from this system, which badly needs to be audited to determine what goes on with our money there, to one that works for all of us rather than the few, by adopting the Gold standard instead. A truly prospering economy, based on real money that is not manipulated by political whims of the few, would far better serve our nation than the current Federal Reserve system.

Maybe President Donald Trump will once again tie our dollar’s value to Gold. That would be great news for our nation’s economy and our prospects to having the kind of strong economic growth we need. Returning to the Gold standard would not only make our money great again, it would help bring about the prosperity that would make America truly great again. It would lead to an economy in which all of us would experience prosperity again.