The True Gold Standard (Second Edition)
Key Writings: Benko on the Gold Standard
Columnist Michael Kinsley is looking exceptionally prescient. Last May, in an article titled, "My Nightmare" in The Atlantic Monthly, he asked "Am I crazy or is the commentariat ignoring our biggest economic threat?" Kinsley's piece in The Atlantic Monthly anticipated a flood of articles in the world press exemplified by this UK Telegraph July 20 headline: “Gold reclaims its currency status as the global system unravels.” The evidence of the shift in the elite opinion stream is clear: the gold standard is returning to respectability.
Just 5 months later, the dollar is in a relentless decline, falling below $1,300/oz of gold, sinking against the Euro, hitting a record low against the Swiss franc. For those of us who lived through the Nixon/Ford/Carter inflation of the 70s, this sure looks like a precursor, a dramatic one. Kinsley may be playing Cassandra here. It wouldn’t be the first time for him. Kinsley pondering gold:
Kinsley: The only reason to buy gold is fear that the currency may collapse. Paper currency used to represent claims on a share of the gold in Fort Knox. Now it is just “fiat money,” backed only by the “full faith and credit” of the United States government.
Kinsley’s voice changes the public conversation. Until recently, there were three main critiques of gold, all relying more upon ridicule than reason:
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.