After the threat of bank failures and inflation in the US, a group of American congressmen introduced a bill to return the greenback to the gold standard for the first time in more than a half-century.. Purchasing power of a US dollar .The bill, HR 2435, or the Gold Standard Restoration Act, would re-peg a standard Federal Reserve note — a dollar — to the fixed weight of gold bullion. The bill was sponsored by Reps. Alex Mooney (R-WV), Paul Gosar (R-AZ) and Andy Biggs (R-AZ) April 4..If passed, HR 2435 would require the US Treasury and Federal Reserve to disclose all gold holdings and transactions denominated in gold within 24 months, after which the dollar would be tied to the market price of gold..At that point, dollar bills would become fully redeemable for, and exchangeable, with gold at the new price with the US Treasury’s bullion reserves backstopping Federal Reserve Banks as guarantor..In a statement, the bill’s sponsors said a return to the gold standard would “substantially curtail the economic damage” caused by inflation, runaway federal debt and monetary system instability..“A gold standard would protect against Washington's irresponsible spending habits and the creation of money out of thin air,” said Rep. Mooney in a statement..“Prices would be shaped by economics rather than the instincts of bureaucrats. No longer would American families, businesses, and the economy as a whole be at the mercy of the Federal Reserve and reckless Washington spenders.”.Richard Nixon “temporarily suspended” gold backing of America's monetary system in 1971 in response to inflation and the OPEC oil embargo and used paper money to pay for skyrocketing crude prices. Critics called it a de facto sovereign debt default that allowed the US government to print its way out of debt..The bill’s text notes the Federal Reserve note — the greenback — has lost more than 40% of its purchasing power since 2000, and 97% since the passage of the Federal Reserve Act in 1913..It further asserts that the elimination of gold redeem-ability from the monetary system freed central bankers and federal government officials from accountability to expand the money supply, fund government deficits though trillion-dollar bond purchases, or otherwise manipulate the economy. It’s otherwise known as ‘quantitative easing.’.“At times, including 2021 and 2022, Federal Reserve actions helped create inflation rates of 8% or higher, increasing the cost of living for many Americans to untenable levels … enrich[ing] the owners of financial assets while … endanger[ing] the jobs, wages, and savings of blue-collar workers,” HR 2435 states..Notably, Rep. Mooney's bill would also require full disclosure of all central bank and U.S. government gold holdings and gold-related financial transactions over the last six decades — which he called “a seemingly taboo subject” surrounded by mystery and deception..“To enable the market and market participants to arrive at the fixed Federal Reserve note dollar-gold parity in an orderly fashion … the secretary and the Federal Reserve shall each make publicly available … all holdings of gold, with a report of any purchases, sales, swaps, leases, and any other financial transactions involving gold, since the temporary suspension in Aug. 15, 1971, of gold redeem-ability obligations under the Bretton Woods Agreement of 1944.”.So-called American ‘sound money groups’ and industry leaders are cheering Mooney's actions..“Government cannot continue to spend and print on a massive scale without producing existential threats to the currency and our economy,” said Lawrence W. Reed, president emeritus of the Foundation for Economic Education. “If we do nothing, disaster awaits us just as it drowned earlier civilizations that spent and inflated their way to ruin,” Reed continued..“Today's debt-based fiat-money system serves primarily to support big government and wealthy financial insiders — while the Federal Reserve's serial policy of currency debasement punishes savers and wage earners,” explained Stefan Gleason, president of the Sound Money Defence League and Money Metals Exchange..“A return to gold redeem-ability would arrest the problem of inflation, restrain the growth of wasteful and inefficient government, and kick off an exciting new era of American prosperity,” he added.
After the threat of bank failures and inflation in the US, a group of American congressmen introduced a bill to return the greenback to the gold standard for the first time in more than a half-century.. Purchasing power of a US dollar .The bill, HR 2435, or the Gold Standard Restoration Act, would re-peg a standard Federal Reserve note — a dollar — to the fixed weight of gold bullion. The bill was sponsored by Reps. Alex Mooney (R-WV), Paul Gosar (R-AZ) and Andy Biggs (R-AZ) April 4..If passed, HR 2435 would require the US Treasury and Federal Reserve to disclose all gold holdings and transactions denominated in gold within 24 months, after which the dollar would be tied to the market price of gold..At that point, dollar bills would become fully redeemable for, and exchangeable, with gold at the new price with the US Treasury’s bullion reserves backstopping Federal Reserve Banks as guarantor..In a statement, the bill’s sponsors said a return to the gold standard would “substantially curtail the economic damage” caused by inflation, runaway federal debt and monetary system instability..“A gold standard would protect against Washington's irresponsible spending habits and the creation of money out of thin air,” said Rep. Mooney in a statement..“Prices would be shaped by economics rather than the instincts of bureaucrats. No longer would American families, businesses, and the economy as a whole be at the mercy of the Federal Reserve and reckless Washington spenders.”.Richard Nixon “temporarily suspended” gold backing of America's monetary system in 1971 in response to inflation and the OPEC oil embargo and used paper money to pay for skyrocketing crude prices. Critics called it a de facto sovereign debt default that allowed the US government to print its way out of debt..The bill’s text notes the Federal Reserve note — the greenback — has lost more than 40% of its purchasing power since 2000, and 97% since the passage of the Federal Reserve Act in 1913..It further asserts that the elimination of gold redeem-ability from the monetary system freed central bankers and federal government officials from accountability to expand the money supply, fund government deficits though trillion-dollar bond purchases, or otherwise manipulate the economy. It’s otherwise known as ‘quantitative easing.’.“At times, including 2021 and 2022, Federal Reserve actions helped create inflation rates of 8% or higher, increasing the cost of living for many Americans to untenable levels … enrich[ing] the owners of financial assets while … endanger[ing] the jobs, wages, and savings of blue-collar workers,” HR 2435 states..Notably, Rep. Mooney's bill would also require full disclosure of all central bank and U.S. government gold holdings and gold-related financial transactions over the last six decades — which he called “a seemingly taboo subject” surrounded by mystery and deception..“To enable the market and market participants to arrive at the fixed Federal Reserve note dollar-gold parity in an orderly fashion … the secretary and the Federal Reserve shall each make publicly available … all holdings of gold, with a report of any purchases, sales, swaps, leases, and any other financial transactions involving gold, since the temporary suspension in Aug. 15, 1971, of gold redeem-ability obligations under the Bretton Woods Agreement of 1944.”.So-called American ‘sound money groups’ and industry leaders are cheering Mooney's actions..“Government cannot continue to spend and print on a massive scale without producing existential threats to the currency and our economy,” said Lawrence W. Reed, president emeritus of the Foundation for Economic Education. “If we do nothing, disaster awaits us just as it drowned earlier civilizations that spent and inflated their way to ruin,” Reed continued..“Today's debt-based fiat-money system serves primarily to support big government and wealthy financial insiders — while the Federal Reserve's serial policy of currency debasement punishes savers and wage earners,” explained Stefan Gleason, president of the Sound Money Defence League and Money Metals Exchange..“A return to gold redeem-ability would arrest the problem of inflation, restrain the growth of wasteful and inefficient government, and kick off an exciting new era of American prosperity,” he added.
