American Principles Project - Benko in Forbes: The Death Certificate of the Paper Dollar

This latest article by APIA's Senior Economics Advisor, Ralph Benko, looks at a recent financial stability report from the Bank of England and what it could mean for the international monetary system. 

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Nicholas Arnold
American Principles In Action


The Death Certificate Of The Paper Dollar: Where To Next?

The world dollar standard’s death certificate arrives in the mail this week. The Bank of England — “the Old Lady of Threadneedle Street” — one of the most staid, cautious, and dignified entities in the world of monetary policy — signals that the fiduciary currency standard ushered in on August 15, 1971 is, empirically measured, far inferior to the (dilute form of the) gold standard erected at Bretton Woods. Fellow columnist Charles Kadlec thoroughly reprises and analyzes the facts submitted to a candid world by the Bank of England in a paper to be officially published December 20, 2011.

The Bank of England’s Financial Stability Paper No. 13, Reform of the International Monetary and Financial System, reported at Bloomberg BusinessWeek and reviewed here, is being seen by many monetary policy observers around the world as the “coroner’s report” on the death of the world dollar standard.

What’s next? Presciently, at the watershed October 5-6 Heritage Foundation Conference on a Stable Dollar: Why We Need It and How to Achieve It, Forbes’ editor-in-chief  Steve Forbes called for escalating the discourse from “whether” we should restore the gold standard to “how” to do so. The floodgates open.

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