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Will the Republicans Be Returning to Gold?

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Published : August 27th, 2012
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A gold commission may be added to Mitt Romney's Republican Party platform for the November 2012 elections, according to the Financial Times.


Such a commission was held under a previous Republican administration, slap-bang between the 1980 and 1984 elections in fact. So let's compare and contrast the Republican National Convention's platforms which straddled that committee.


July 1980nine years after the United States formerly abandoned the dollar's gold peg, and with inflation racing since then to hit untold peace-time rates near 15%, Ronald Reagan's platform actually make no mention of "gold" by name. Instead, the soon-to-win-office Republicans say that:


"One of the most urgent tasks in the period ahead will be the restoration of a dependable monetary standard – that is, an end to inflation.


"Unfortunately, Mr. Carter and the Democratic Congress seek to derail our nation's money creation policies by taking away the independence of the Federal Reserve Board. The same people who have so massively expanded government spending should not be allowed politically to dominate our monetary policy. The independence of the Federal Reserve System must be preserved."


Four years of power later, however, and after two deep recessions, and one Gold Commissionwhich found against a return to gold...


"The Federal Reserve Board's destabilizing actions must therefore stop. We need coordination between fiscal and monetary policy, timely information about Fed decisions, and an end to the uncertainties people face in obtaining money and credit. The Gold Standard may be a useful mechanism for realizing the Federal Reserve's determination to adopt monetary policies needed to sustain price stability."


So gold has its political uses. But they are subject to change. Especially when, as US Fed chairman Paul Volcker did in the years between those 1980 and 1984 manifestos, interest rates are raised sharply to beat back the inflation caused by elected government's deficit spending.



 

 

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Adrian Ash is head of research at BullionVault.com, the fastest growing gold bullion service online. Formerly head of editorial at Fleet Street Publications Ltd – the UK's leading publishers of investment advice for private investors – he is also City correspondent for The Daily Reckoning in London, and a regular contributor to MoneyWeek magazine.
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The Corporate Ownership of the entire United States political system means there will be NO return to the Gold Standard under ANY conditions. The suggestion of a return to a gold standard (Sound Money Policy) ~ by the Romney Campaign ~ is a political ploy to garner votes from the Ron Paul Faction of the Independent Voters.

You already KNOW that Politics and Truth don't mix.
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The Corporate Ownership of the entire United States political system means there will be NO return to the Gold Standard under ANY conditions. The suggestion of a return to a gold standard (Sound Money Policy) ~ by the Romney Campaign ~ is a political pl  Read more
Gypsy - 8/28/2012 at 11:37 AM GMT
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