The True Gold Standard (Second Edition)
Key Writings: Benko on the Gold Standard
The United States Senate moves toward the confirmation of Janet Yellen, now posited for next January 6th, as chair of the Federal Reserve System. Let us in this moment of recess reflect on eerily similar observations by two of history’s most transformational figures: John Maynard Keynes and Nicolas Copernicus.
One of Keynes’s most often-cited observations, from his 1919 The Economic Consequences of the Peace, chapter VI, contains an indictment of policies very like those which the Federal Reserve System has been implementing for the past dozen, and more, years. These policies in slow motion are, in the opinion of this columnist, at the root of the very political, social, and cultural dysphoria — uneasiness or generalized dissatisfaction — predicted by Keynes:
Exhibit A: Cato’s annual monetary conference.
Last month, Cato conducted its 31st annual monetary conference on the topic “Was the Fed A Good Idea?”
By virtue of the prestige that has accrued around this annual event Cato was able to present the insights of some of the foremost thinkers, and policy makers, in the increasingly important monetary policy sector. While Neo-Keynesians rationalize the austerity their policies are generating, Cato prescribes policies to generate equitable prosperity.
Public intellectual Paul Krugman recently consigned to Hell, in a New York Times op-ed column entitled A Permanent Slump, the world economy.
Yes. What if?
And what if Paul Krugman is one of the chief architects of these depression-like conditions?
As this columnist recently wrote, about Professor Niall Ferguson’s dismissal of Prof. Krugman from polite company, “Krugman’s horns now forever will show under his dislodged faux halo.”
It is difficult to interpret Hensarling’s declaration to hold hearings on “the entirety of their hundred year history and what America has looked like since adopting a fiat currency” as anything but an intention to bring the Commission up for a vote. Hensarling promises to process vast amounts of information. The constraints on a committee hearing, and on a committee staff, cannot do such a huge topic justice. As Rep. Kevin Brady put it in his own remarks at Cato, a “brutally bipartisan” Commission — with Hensarling a Commissioner — is called for.
The terms of the Centennial Monetary Commission designate the Chair of the Committee on Financial Services (or another majority member designated by him) — yes, Mr. Hensarling himself — as one of the Commission’s twelve voting members. Thus, if enacted, the Commission will provide Mr. Hensarling with a distinguished venue from which to deliver on his promise to the Cato officials and audience … and to the Fed itself. …
How much does Cato care about the Commission? The panel following Mr. Hensarling’s was entitled “The Case for A National Monetary Commission and Fundamental Reform.” It was moderated by public intellectual Dr. Judy Shelton, co-director of the Atlas Economic Research Foundation’s Sound Monday Project … and featured Rep. Kevin Brady, chairman of the Joint Economic Committee and prime sponsor of just such a commission, Dr. Gerald P. O’Driscoll Jr, Senior Fellow, Cato Institute, and R. David Ranson, president of Wainwright Economics.
What is the next direction in the Republican Civil War?
Best guess: Follow the Money.
Americans feel their dollars shrinking. We don’t like it.
And we are groping for a way to stop it.
The left is reported shamelessly cheerleading for a bout of inflation in no less than the lead story of the October 27 Sunday New York Times: “In Fed And Out, Many Now Think Inflation Helps.” The story states, for example, that Harvard economist Kenneth S. Rogoff is championing inflation of 6% a year for “a few years.”
BY RALPH J. BENKO:
The 21st Century Gold Standard
Read The 21st Century Gold Standard: For Prosperity, Security, and Liberty by Ralph Benko and Charles Kadlec to learn what the gold standard is, how it works and how a dollar linked to gold would pave the way for a new age of American prosperity.