US President Donald Trump has praised the gold standard in the past, but could he really bring it back?
Donald Trump Set To Take Federal Reserve From ‘Rothschild’s Control’
Rumors that the gold standard could return center largely on positive comments Trump has made. But could the US really return to the gold standard? And what would would it mean if Trump brought it back? Read on to learn what the gold standard is, how it works, why it ended, what Trump has said about bringing it back and what could happen if he made that happen.
Plus, take our poll to let us know whether you think it could happen. This would offer reliable price stability. By introducing the gold standard, transactions no longer have to be done with heavy gold bullion or coins. The goal of this type of monetary policy is to prevent inflation as well as deflation, and to help promote a stable monetary environment. The gold standard was first introduced in Germany inand by most developed nations, including the US, were using it.
The system remained popular for decades, with governments worldwide working together to make it successful, but when World War I broke out the system became difficult to maintain. Changing political alliances, higher debt and other factors led to a widespread lack of confidence in the gold standard. The demise of the gold standard began as World War II was coming to an end.
At this time, the leading western powers met to develop the Bretton Woods agreementwhich would be the framework for the global currency markets until Under the agreement, currencies were pegged to the price of gold, and the US dollar was seen as a reserve currency linked to the price of gold. This meant that all national currencies were valued in relation to the US dollar since it had become a dominant reserve currency. Despite valiant efforts from governments at the time, the Bretton Woods agreement led to overvaluation of the US dollar, which led to concerns over exchange rates and their ties to the price of gold.
Countries were then free to choose any exchange agreement, except the price of gold. Inforeign governments let currencies float; this put an end to the Bretton Woods system, and the gold standard was ousted. From the s to today, most countries have run on a system of fiat money, which is money issued by the government that is not backed by a commodity. The value of money is set by supply and demand for paper money and supply and demand for other goods and services in the economy.
The prices for those goods and services, including gold and silvercan fluctuate based on market conditions. In fact, as Sean Williams of the Motley Fool points outTrump has been interested in gold since at least the s, when private ownership of gold bullion became legal again. Since then, Trump has specifically praised the gold standard. Others include Ben Carson and David Malpass. For the most part, even the most ardent supporters of the gold standard recognize that going back to it could create trouble.
But if Trump did decide to go through with it, what would it take? According to Kimberly Amadeo at TheBalance, due to trade, money supply and the global economy, the rest of the world would need to go back to the gold standard as well. So for Trump to unilaterally return the US to the gold standard, the US would have to exponentially replenish its gold reserves in advance.
Trump Owns the Fed
Going back to the gold standard would have a huge impact on the US economy. For one thing, it would make it impossible for the Fed to offer fiscal stimulus.
Supporters believe that could be the perfect way to get the US out of debt, but it could also cause problems during times of economic crisis. That would then affect the stock market as well, which could very well lead to a recession or worse without the ability of the government to soften that blow via money supply.
If we look back further than the stability of late, we can see that it dropped steeply from to As can be seen, returning to the gold standard would be a complex ordeal with many pros and cons associated. What do you think about the idea?President Donald Trump has made moves to gain full control of the Rothschild owned Federal Reserve in order to remove the crippling regulations holding the country back for so many years. The Federal Reserve has been a ball on a chain on the American public, creating debt and stringent regulation on the nation.
Read more. The Rothschilds started their business in England as goldsmiths and the first gold and silver depository guarded by their own private army. After awhile, the Rothschilds figured out that they could just print off more gold certificates, and nobody would know the difference.
After awhile. Then formed the IRS to get their money. The Rothschilds are German from Frankfurt. After his parents died,Mayer went to Hanover to learn finance. He worked at the firm of Wolf Jakob Oppenheimer, who provided credit to royalty and engaged in international trade,especially in bullion.
At the time Germany were divided into numerous independent states,such as Prussia,Bavaria,Saxony,Austria and a few others. Rothchilds just one of many. The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. It was privately owned by stockholders from its foundation in until it was nationalised in Federal Reserve owned by a hand full of very wealthy individuals including the Rothchilds.
Not the U. Question is is the gold really their? Some say not. That is why he did not use the Secret Service for security when he was elected. He knows full well.
He has had at least 12 attempts on his life. The same people that killed JFK. Harvey killed JFK…. Jessie Ventura …spells it our youtube. I feel this President is doing what is good for the Country and the American People because with the last person in the white house this Country was going in the Wrong direction and I feel towards socialism so I am very pleased with what President Trump is doing and how he wants keep us Safe.
God Bless. President Trump is draining the swamp and shining daylight of some long-entrenched, hidden and corrupt powers. President Andy Jackson had it right in his veto of the United States 2nd National Bank — which was the banker of the wealthy. It set the interest rates at the time regulated the flow of the money supply. It was owned by foreign depositors and contributed heavily into political campaigns negative to United States elections.
All of your comments are spot on!! The Federal Reserve is basically a financial cartel was developed to protect the interest of the original owners. The Federal Reserve is privately owned and operated. The Federal Reserve is not subject to any form of taxationnor any auditing by the Congress or the US government. The United States government is legally liable for any financial loses that the Federal Reserve suffer. In another word the American taxpayer are on the hook for any losses.
For example the TARP where the US government poured trillion of Dollars into banks who never lent out the fund to any small business because they had no confidence in the capability and the strength of the American economy.Those of us who are awake have been talking about this day for many, many years. In, fact my friend and associate, Economist Dr. Kirk Elliott and I have dedicated weekly program titled the Global Financial Resetor GFR for the past year, where each week we discuss this from many perspectives.
You can get up to speed there. We and others were right and now that day has finally arrived. This is what winning looks like. This is how you resurrect America by seizing control of the money supply, system and currency from a group of dominant international private corporation globalists bankers. The power, step by step, is being restored to the people.
Follow Q. Trump and the patriots are winning even with the evil monsters unleashing of the Covid virus. As part of public awareness and positioning, the President since day one in office, has assigned cause in part to the Fed for first raising rates, then not lowering rates enough nor fast enough and for not providing liquidity or capital inflow into the system.
And now with this crisis, the market excess and bubbles which Trump knew he would have to shake out once he went for the reset move, may now soften the blow once the currency itself is resethas been shaken out due to the Corona crisis. Never let a good crisis go to waste. Congressman, Kevin McCarthy just announced the changes that need to take place with the China supply chains.
The light has also shined as a result of this crisis on the importance of border protection. I strongly urge you to review the past several articles and shows indicated above to get up to speed. And with these lock-downs on a global basis, the street level foot soldiers of the deep state and Soros funded mercenaries are being rounded up. Tip of the iceberg as the ten days of darkness are approaching. Learn about this and a whole lot more by visiting the sourced links below.
That comes later. The restructure has begun. President Trump has brought the Fed actions into the treasury. Here it is, H. The Fed and the Treasury have now merged. Economist, Dr. Kirk Elliott discuss the beginning steps of the nationalization of the Fed. The TPP was ended. The new Sheriff in town imposed tariffs where needed and the capital was returning along with our US manufacturers en masse. The easing of suppressive and often unwarranted regulations, has help to boom America like never before in our history.
Today, we are the largest oil and natural gas manufacturer and supplier in the world.Standing at the bar at Mar-a-Lago, the outrageously ornate Palm Beach, Florida, mansion built by breakfast-cereal heiress Marjorie Merriweather Post in the Roaring 20s and turned into a private club in by Donald Trump, I awaited the arrival of the 45th president-elect of the United States. He was coming that mid-November weekend, as he had done so often for the past 30 years.
But in so many ways he was already there. He was there in the Trump wines we were drinking, from the Virginia vineyards run by his son Eric. Trump—I mean, Mr.
President—on the right. Trump arrived in Palm Beach with his family in the s, a snowbird who had flown in from New York. He was so impressed with the town, its beach, and its golf courses that he placed a security deposit on an apartment at the Breakers, the storied resort hotel and condominium complex overlooking the Atlantic.
Hearing the gilded story of the biggest house in the richest town, Trump ordered an immediate detour. From the street Trump stared across the 17 acres of grounds at a phantasmagoria of a home that humbled even him. Mar-a-Lago was named for its location, the property stretching from the ocean to Lake Worth. There were rooms oversquare feet, with 58 bedrooms, 33 bathrooms, a ballroom where Mrs.
Post held her celebrated square dancesa theater, and a nine-hole golf course. But it had been practically abandoned as a white elephant. Shortly before her death, inMrs. Post left Mar-a-Lago to the U. Actress Dina Merrill from Mrs. But real offers were slow in coming, until Trump took his detour on the way to the dinner party. They wanted more money. But now Donald Trump was not only a presence to be reckoned with in Palm Beach—he owned its biggest and grandest house. Trump had another problem, though: he was going broke.
The Gulf War had a disastrous effect on tourism. Cash flows were dwindling at my casinos. Then I missed a mortgage payment on the Castle in Atlantic City.
All hell broke loose. Wall Street went nuts. One Friday, while meeting with his bankers in New York, Trump inadvertently mentioned that he was flying to Mar-a-Lago on his for the weekend. When he publicly announced his plan a new furor ensued: a Palm Beach landmark was in the hands of Donald Trump, who wanted to subdivide it into mini-mansions!The once-fringe fantasy of a return to the gold standard is creeping back into the mainstream. Mainstream economists deride it almost without exception.
Why not Bordeaux? Advocates include members of Congress and president Donald Trump. The first two—Herman Cain and Stephen Moore—both dropped out of consideration, but the third, economist Judy Shelton, announced today in a Trump tweetmay be the most ardent in her support. Sinceat least six states have passed laws recognizing gold and silver as currency; another three are presently contemplating bills of their own. The surprising success of Ron Paul, a Texas Republican Congressman and ardent gold bug, in the and elections showed the potency of these ideas among the electorate.
In its and campaign platforms, the Republican Party called for a commission to investigate the viability of a return to a gold standard system.
The Republican-controlled House of Representatives passed a bill including such a commission in both andbut both times the proposals died in the Senate. Last year, Alexander Mooney, a Republican representative from West Virginia, took that a step further when he introduced a bill proposing a full-on return to the gold standard.
The bill has no cosponsors and, unsurprisingly, has gone nowhere. Today, with inflation unusually low and stable, the gold standard is a tougher sell than it once was. But as trust in American institutions wanesthere is renewed support for money backed by something tangible, not the say-so of the government.
If inflation picks up once again, a solid base of gold standard evangelists is ready to take it mainstream. Money depends on trust—the faith that it will hold its value so that, when the time comes to spend it, it will be accepted without question in exchange for what the holder expects it to be worth. Inflation eats away at that value. In modern times, governments are often a culprit behind inflation. Since they enjoy a monopoly on printing money, they can issue new currency at virtually no cost.
But governments are run by vote-seeking politicians, who might print more money to juice short-term growth needed to win re-election, inadvertently causing inflation to flare up later. To cite a recent, prominent example, US president Richard Nixon bent to this temptation pdf during his re-election campaign—contributing to the breakout of inflation that ravaged the American economy throughout the s and early s.
According to the monetarist theory popularized by economist Milton Friedman in the s, preventing inflation requires fixing the supply of money. The gold standard, by limiting the dollars the government can print to the weight of gold it holds in reserves, is one way of doing so. The US adopted the gold standard inwhen Congress finally followed Britain, Germany, France, and other advanced nations. By holding national currencies stable against gold, the international embrace of the gold standard encouraged foreign investment and facilitated trade, giving rise to the first era of intense globalization.
If it printed more money than it held in gold reserves, the state risked hyperinflation or causing a financial crisis by shattering faith in the solidity of its currency. In theory, the gold standard, therefore, limits government spending to only what it can raise in taxes or borrow against its gold reserve, and prevents it from simply printing money to pay its debts.
It also takes power over the money supply away from central bankers. Indeed, it might render central banks mostly unnecessary. Had history worked out differently, the dollar might have been pegged to cowrie shellspeppercorns, or giant stone disksall of which, like gold, have served as money at one time or another.
But for reasons both aesthetic and practical, the glimmering metal became the asset of choice. It is something which markets should be free to choose, and they have chosen gold. Gold is integral to the story of US growth and prosperity. Legislation in the past century which codified and restricted how Americans could attain or trade gold seems to have intensified the longing for it.
InAmericans were temporarily barred from buying and selling gold within the country; by the s, the law was still in place, and a black market for gold flourished. John F.
The gold standard is inextricably tied to mining. The supply of the metal depends on how much is extracted from the earth, after all.
In the height of mining activity, in the mids, big gold discoveries in California and Australia spurred a pickup in inflation.Learn about gold bullion coins and costs. Gold Price News. Investment News. Gold in History. Gold Books. Gold Investor Index. Gold Infographics.
Trump orders mass oil buys to 'fill up' reserve
A December rate hike was "still on the table". But with or without a December rate hike, the experts were clear that the Fed was still on a path to tighten rates at a sustained tempo. Markets got the message. The Dollar rallied, the Euro declined, gold traded down and interest rates ticked up. That's exactly what you would expect if the Fed gave hawkish signals based on continued moderate growth. The data practically guarantee the Fed will not raise rates in December.
The economy is not strong and the Fed may not raise rates again until well into — if then. How can so much time, effort and talent be devoted to such a simple task and still get the wrong result? How could they get it so wrong? The answer is that the so-called experts are using the wrong model of Fed behavior. As I've said many times, if you have the wrong model, you will get the wrong result every time. This happened again following the September Fed meeting and Janet Yellen's subsequent press conference.
Its major shortcoming is that it pays attention to the Fed projections of growth and interest rates. These are the so-called "dots" because they're presented as a set of dots on a chart showing dates and rates. All of the members of the board of governors and the regional reserve bank presidents are invited to provide their own dots.
The media glom onto the dots, compute an average of the dots and then treat the average as a consensus of Fed opinion. They project Fed policy based on this consensus. Markets react to the consensus estimate. Here's the problem.
The dots are a joke. No one in the Fed headquarters in Washington takes them seriously. Starting the "dots" was an attempt at transparency by Ben Bernanke. The Fed can't seem to get rid of them.
There's a much more important Fed story that hasn't gotten much media attention. But this story, not the Fed's "dots" could have a dramatic impact on interest rates going forward.By now, most of us have heard about QAnon, the group of conspiracy theorists that formed soon after Donald Trump was elected. They control Hollywood, and they cover up their existence, essentially. And they would have continued ruling the world, were it not for the election of President Donald Trump. But one of the reasons that Donald Trump was elected was to put an end to them, basically.
And now we would be ignorant of this behind-the-scenes battle of Donald Trump and the U. Instead, he provides hints around which they develop their conspiracy theories. As a result, several theories about the virus have emerged. Because these folks have believed in a cabal that controls everything for so long, it is inevitable that they would spread things like this—even though it directly contradicts all of their other conspiracy theories. Of course, QAnoners buy into the whole idea that coronavirus is a hoax.
These crazy people are running around like chickens with their heads cut off screaming that the sky is falling and bringing the economy to its knees over nothing but a flu! A FLU! And Americans have actually fallen for it!!
We should not be scared by the left. We should be ON GUARD and watching our backs at all time because the vast majority of Americans are lost sheep lemmings who believe everything the media tells them! Even after every single fraudulent hoax has been exposed as a LIE!! If you are, turn back and reject their lies. There is one theory, however, that is rising to the top of this heap of nonsense.
This means mass arrests and we know this is going to happen worldwide, so they needed a cover to restrict travel and get people prepared to have an interruption in supplies while a financial reset and the arrests occur. President Trump is trying to tell Americans to be prepared under the guise of a pandemic. The stock market needs to adjust down in order to do a complete reset and move us to a gold backed currency and get rid of the Fed.
The stock market has been falsely inflated for awhile. Travel will likely shut down for a brief period and maybe all schools and universities will be shut down so kids are home safe with their parents when the arrests occur. We could even have a period of Marital Law to suppress opportunities for looting and riots…. He said it because he knows it is fake and they plan to take action in March and by April, the American public will be informed of what has occurred and why.
When Tom Hanks announced that he had contracted the virus, it was proof to the QAnoners that the storm was underway. The story simply gets more bizarre from there. Many QAnon promoters are speculating that the COVID pandemic is a "cover story" for "the storm" that is supposed to purge the world of bad people.
Some are aready saying that if a public figure dies from COVID, then that will just be a cover story for their suicide.