Forbes: Stable Dollar Leads to Economic Prosperity

Steve Forbes, chairman of Forbes Media and former Republican presidential candidate, was on Newsmax yesterday to talk monetary policy.

According to Forbes, the instability of the dollar, a result of the easy money policies of the Federal Reserve, is a major cause of our recent economic woes, and in order to return to economic growth, we need a monetary policy which will stabilize the dollar.  The gold standard, he argues, is just the policy to accomplish this:

“Gold gives money . . . stability just like the ruler measures length, the clock measures time, a scale measures weight,” Forbes added. “A dollar measures value and when the value is stable, you get a lot more investment, a lot more growth, a lot more opportunity.”

Without the gold standard in place, the dollar has grown increasingly unstable, even though there have been “periods of strength,” Forbes says.

“When you have an unstable dollar, you get more speculation,” he explained. “You get the kind of thing you saw with the housing bubble, and so that spells trouble for all of us.”

Forbes makes a similar argument with Elizabeth Ames in their recently published book, Money: How The Destruction of the Dollar Threatens the Global Economy – And What We Can Do About It (which APIA’s Ralph Benko has called “by far, the most important book on economic policy published this year”).

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