World News

Come Back to Gold

[Excerpted from chapter 11 of by Ludwig von Mises.] The gold standard was an international standard. It safeguarded the stability of foreign exchange rates. It was a corollary of free trade and of the international division of labor. Therefore those who favored etatism and radical protectionism disparaged it and advocated its abolition. Their campaign was successful. Even at the height of liberalism governments did not give up trying to put easy money schemes into effect. Public opinion is not prepared to realize that interest is a market phenomenon which cannot be abolished by government …Read more

Forbes: Stable Dollar Leads to Economic Prosperity

Steve Forbes, chairman of Forbes Media and former Republican presidential candidate, was on Newsmax yesterday . 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 …
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Some Liquidationists

Here are a few historical quasi-Austrian economists. I like to call free market thinkers who lean more towards the Austrian School than the Chicago School “liquidationists.” The term in this sense originally referred to to people who favored letting the market clear up the misalignments in the economy caused by business cycles over government intervention which is capable of only doing the opposite, regardless of intentions. While many Chicago Schoolers also favor a (slightly) more hands-off approach to recession and depression than do the Keynesians, they tend not to agree with the Austrians …Read more

A Pivotal Moment

It may not be exactly what President Obama had in mind when he talked about a pivot to Asia, but feature the latest news in respect of the dollar. According to a dispatch from the London Financial Times, the communist Chinese currency known as the renminbi is “rapidly displacing” the American dollar as a trading currency — not only in Asia and Europe, the FT notes, but also here at home in America. It’s a marker of America’s decline in the age of fiat money. The value of renminbi payments between America and the rest of the world, the Financial Times reports, rose by 327 percent in April as …Read more

Ron Paul and Rand Paul Defy the Biggest Fib Keeping Big Government Big

... The gold standard, that great agent and guarantor of equitable prosperity, was, as ever, an early casualty of war.  For a century it, and far too often equitable prosperity, faced an intermittent headwind of hurricane force.  Now, with the tailwind of Peace — itself a headwind for proponents of Big Government — the gold standard becomes recoverable.  Led by , (for whose Institute’s this writer serves as editor), and others, let us now recover it. A century of war ends.  A golden age beckons. Do your part, gentle Reader.  Celebrate the end of a century of all-out war.  And with that …Read more

Paul Volcker: Back to the Woods?

Former Federal Reserve Chairman Paul Volcker called last month in Washington for a new Bretton Woods, the 1944 conference of World War II Allies that set up an international gold-exchange regime. His remarks received little media attention. This strikes me as an underplayed story, especially as Congress considers taking a serious look at the Federal Reserve. Some legislators in particular are concerned that the value of the dollar, while stronger than last year, is still worth less than a 1200th of an ounce of gold. Mr. Volcker made his remarks at the annual meeting of the Bretton Woods …Read more
 

Kathleen M. Packard, Publisher
Ralph J. Benko, Editor

In Memoriam
Professor Jacques Rueff
(1896-1978)

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