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Entries in Gold Standard (58)

Wednesday
Oct292014

APIA - Gov. Florio’s Night of the Living Gold Standard 

Dear Monetary Policy Observer, 

Former New Jersey governor Jim Florio voiced a somewhat shrill alarm to the return of the gold standard as a viable campaign issue for federal candidates like Jeff Bell and Rand Paul.  

APP economics director Steve Lonegan replies with a well reasoned account of how leaving the gold standard has hurt economic growth and the middle class, and why considering the idea of a gold backed dollar isn’t something that should, as Florio put it in ironically seasonal terms, “have a stake driven through its heart.” 

We hope you find this material of interest. 

Happy Halloween, 

Nicholas Arnold

American Principles In Action

##### 

Gov. Jim Florio’s “A Proposed Return to the Gold Standard is Cause for Concern” contains a certain irony: Mr. Florio's embrace of the most important decision made about our money in our lifetime made by President Richard Nixon, who left office under a severe cloud.

The facts are clear. During the 40 years prior to Nixon ending the gold standard the nation’s economy grew, on average, 4.5 percent per year. Since the Aug. 15, 1971 “Nixon Shock,” our average GDP growth has dropped by more than 25 percent annually. Had we maintained gold standard growth rates, this country’s economy -- and on average each of your paychecks and net worth -- would be 50 percent bigger today.

Mr. Florio refers to the ensuing "easy money" policies of the Federal Reserve as “stimulating” the economy. He omits that this has led to 1 percent of the population benefiting from 95 percent of the stock market wealth produced by “Quantitative Easing.” Meanwhile, middle-income families have seen their buying power drop 8 percent since 2007, caught in the grip of wage stagnation and a rising cost of living. The rich are getting richer and the middle class is getting poorer.

Read the full article here: http://www.nj.com/opinion/index.ssf/2014/10/lonegan_response_to_florio_gold_standard_oped_hed_goes_here.html

Wednesday
Oct152014

APIA - Is Dollar’s Reserve Currency Status Costing US Jobs? 

Dear Monetary Policy Observer,

 

The financial media has been overjoyed by the dollar’s strong run over the past several weeks.  APIA senior economics adviser Ralph Benko points out that while cheapening the dollar is bad for the economy, the “King Dollar” status as a reserve currency may have cost the US economy 6 million jobs, according to Dr. Jared Bernstein, the chief economist to Vice President Biden. 

 

Benko calls for a return from “King Dollar” to a “high integrity, meticulously defined, dollar” pegged to gold as a way to sustain middle class growth.

 

We hope you find this material of interest.

 

Sincerely,

 

Nicholas Arnold

American Principles In Action

_________________________________________________________

 

The reserve currency status of the dollar, particularly as a potential factor in wage stagnation, has profound political implications.  Dispirited voters yearn for leadership that actually understands how to get the economic tide to lift all boats again.  Notwithstanding his promotion of some marked policy differences with this columnist, this columnist says three cheers for Dr. Bernstein for squarely pushing the reserve currency question into play.

 

[...]A dollar at the mercy of a freelancing Fed, subject to being whipsawed in value, up or down, is a barrier to commerce.  Money, by definition, is a medium of exchange, a store of value and — not be overlooked — a unit of account.  There are many empirical data tending to show that only by meticulously maintaining the definition of the unit — for example, by defining the dollar by grains of gold and making it legally convertible thereunto — can good job creation, and equitable prosperity, consistently be achieved.

 

Read the full article here: http://www.forbes.com/sites/ralphbenko/2014/09/29/the-rise-and-fall-and-rise-and-fall-of-king-dollar-part-1/

Wednesday
Jul232014

APIA - Paul Krugman attacks APIA senior economics advisor in NY Times Blog 

Dear Monetary Policy Observer,

Nobel Economics laureate Paul Krugman responded, perhaps shrilly, to APIA senior economics advisor Ralph Benko's last week's Forbes.com column in his NY Times Blog, entitled Fantasies of Personal Destruction:

 

A correspondent directs me to a piece in Forbes about yours truly that is both funny and scary.

 

Yep, scurrying away with my tail between my legs, I am, disgraced for policy views shared only by crazy people like the IMF’s chief economist (pdf).

 

One thing I’ve noticed, though, is how many people on the right are drawn to power fantasies in which liberals aren’t just proved wrong and driven from office, but personally destroyed.

To which Benko responded, yesterday, in part:

Put aside the demonstrable fact of Prof. Krugman’s consistently sloppy conflation of gold investors and gold standard proponents.  Put aside his failure to engage with the arguments of the many gold standard proponents not predicting imminent virulent inflation.  (Such as this writer)

 

Eruditely ridiculing gold proponents as, well, full of s*** is clever. It likely will tickle those readers who find monkeys flinging poo at each other hilarious.  Ridicule is much easier, and cheaper, than grappling with scholarly analyses such as that from the Bank of England which provided, in 2011, Financial Stability Paper No. 13, a genuinely interesting critique of the real world performance of fiduciary currency.

 

We hope you find this exchange of interest.

Saturday
Jul192014

APP News Update: More States End Common Core, the Border Crisis and more  

 
Aguilar on MSNBC's Reid Report
It's the Biflation, Stupid!
 
On Oklahoma Supreme Court Upholding Common Core Repeal “Today, the Oklahoma Supreme Court has upheld the power of the legislature to set education policy. In so doing, it has quashed the problematic, Progressive idea that the state board of education is vested with both legislative and executive powers."  - APP Education Dir. Emmett McGroarty
Breitbart News - 7/15/14
 
A Better Migrant Worker Plan Would Stem the Flow of Unaccompanied Children to the U.S.
By Alfonso Aguilar (NY Times)

The surge of unaccompanied minors entering through the southern United States border illegally is just another crisis produced by our dysfunctional immigration system. Contrary to the narrative of some opportunistic politicians and pundits, this unfortunate situation is not the result of the Obama administration failing to enforce the law. In reality, most would-be-migrants believe that crossing the border has become much more difficult, and in the last decade, the U.S. government has greatly strengthened border security and interior enforcement.

Increased violence in Central America – mainly El Salvador, Guatemala and Honduras – is said to be the immediate reason so many children are now coming to our borders alone. But many of these children are making the dangerous journey to reunite with their parents, who came here looking for a good-paying job and a better future. (read the rest)
 
Keene: Editing out an elightened history of America
In the early days of the American Republic, Thomas Jefferson was perhaps the staunchest advocate of public education. Jefferson authored a plan for public primary and secondary schools and is father of the University of Virginia. He would be appalled at the state of public education today.
  Jefferson loved reading and knowledge for its own sake, of course, but believed the success of the American experiment depended on an educational system that would instill a knowledge of history and values in the citizenry. He was not alone among the Founders in this belief, but few expressed themselves better. Jefferson was eloquent on the study of history as especially important because, as he put it, “apprising [students] of the past will enable them to judge of the future.” (read the rest)
 
Is Sound Money the Next "Big, Bold Idea" for Conservatives
By Paul Dupont

One of the important arguments made by last year’s American Principles in Action report, “Building a Winning GOP Coalition,” was that voters are concerned with rising prices and the shrinking value of the dollar, problems which could be addressed by “picking up the forgotten of the Reagan economic agenda: sound money.”  Monetary reform is a relevant and populist issue, one which would help Republicans connect effectively with the average voter, unlike their failed 2012 economic message.

Judy Shelton, senior fellow at the Atlas Economic Research Foundation, makes a similar case in the upcoming issue of The Weekly Standard (the article is available online here).  Dr. Shelton argues that supporting sound money is imperative for restoring economic prosperity, both in the U.S. and internationally, and that Republicans have much to gain by joining the movement to re-link the dollar to gold (read the rest)
 
Other articles: 
Thursday
Jul102014

APP News Update - 7/9/14 

 

 
 
New Twist in Common Core Wars
 
Amid Border Crisis, Advocates Talk
Next Steps on Immigration
 
On Marriage & Religious Freedom“We as Christians speak up about this, because if we don’t we hand this off to our grandchildren and they’re not going to be able to speak up about it”
  - APP Executive Director Terry Schilling
 EWTN Interview 7-2-14
 
The Gold Standard and the History of American Money

Over at Forbes.com last week, Peter Ferrara, in his review of Steve Forbes’ recently released book Money: How the Destruction of the Dollar Threatens the Global Economy and What We Can Do About It, treated readers to an interesting lesson in the history of American monetary policy.

During the defining early years of the nation, one of the priorities of America’s first treasury secretary, Alexander Hamilton, was to link the value of the dollar to gold, a policy which would be adhered to for over a century and lead to a period of unrivaled economic growth and prosperity: (read the rest)

 
Obama to Go It Alone on Immigration

Alfonso Aguilar, executive director of the Latino Partnership for Conservative Principles, says the president’s decision to go it alone illustrates a breaking point for the White House and its ability to shepherd legislation on Capitol Hill.

“That is a Band-Aid to the real problem,” Aguilar says. Still, he admits the president does have freedom to stem deportations and help fix the broken immigration system. “The law does provide him a lot of discretion, so if he would decide to give further actions to the rest of the undocumented population, he does have that authority,” he says.

Aguilar says even if the White House has been a poor negotiating partner on issues in the past, House Republicans should be kicking themselves for letting the president get out ahead of them on immigration. While Republicans in Congress may be deeply divided about how to proceed on issues like citizenship and low-skill worker visas, Republicans nationally understand the party must do something to make inroads with Hispanic voters if they want to win the White House in 2016. (read the rest)

 
OpEd: By Any Name You Call It, Common Core Is a Loser

When it comes to the issue of the Common Core national school standards, Florida may be the nation in microcosm.

On one side are the powerful political and corporate elitists, epitomized by Jeb Bush, and on the other are parents and other citizens who strongly oppose relinquishing local control over education to anonymous, unaccountable entities in Washington, D.C. Until recently the elitists, with all their money, seemed to have the upper hand. But recent developments suggest the tide may be turning.

The elitist view is that only “experts” (and preferably experts in Washington) know how to educate Florida children to prepare them to be fodder for the economic machine, and parents should quite simply shut up and do as they’re told. But parents’ refusal to comply has necessitated a change in strategy. (read the rest)
Photo: Jeb Bush at 2013 CPAC by Gage Skidmore (CC-BY-2.0)

 
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