This will be a continuation of Part 1 (see description below). This week we will determine:
1) Whether the US CAN return to a Gold Standard.
2) If we attempt to do so, how could it be done?
3) Whether we can back our currency with Gold before China does. China is buying tons of Gold. If they back their currency with real money before the US does, China would take our place as the World Reserve Currency.
Here is the description from last week, in case you missed it:
"Will Trump Return the US to the Gold Standard?" That may sound like an odd question. Does the President believe in Gold as money? Even if he does, why would he do it after 87 years without the Gold Standard? And would it even be possible?
Well, he definitely believes in the Gold Standard. At first he made some very strong hints that he might give our nation REAL money instead of the worthless IOU's we currently carry in our wallets. Then he went from hints to definitive statements supporting sound money. But he has never directly spoken to the the concept of actually moving us back to the Gold Standard. If that is his intention, remember the maxim that has always held true with controversial changes: "Presidents do in their second term what they wanted to do in their first term; but they wait until the second term to do them because if they did them in the first term, they wouldn't be reelected."
Why would a return to the Gold Standard be controversial? After all, until 1933 when FDR removed us from the Gold Standard without Congressional authority, we had the most solid and respected currency in the world. In addition, we didn't have the problems with inflation, deflation, stagflation and all the other "flations" that have plagued us since we went to worthless money backed by nothing. Since then the US Dollar has lost 96% of its purchasing power, Gold has gone from $20 per ounce to $2,000, the National Debt has increased 1,227% form $23 Billion to $27 Trillion, and the world has lost faith in our money.
Why, after 87 years would he move us back to real money backed by Gold. Because those 87 years have been disastrous for our nation's economy. We have the greatest National Debt of any nation that has ever existed. No one believes it is sustainable. In fact, when Obama's White House Budget Direct made that statement publicly, Obama fired him. Several former Fed Chairmen have said the same. Our debt is a HUGE bubble. If we keep pumping it up, it will eventually burst. And Congress plans to increase the Debt by 50%. Would it be possible for Trump to do this? Join us on the Webinar Monday to find out.