In 1981, President Ronald Reagan created the Gold Commission. The purpose of the commission was to appease conservatives who wanted to see the country return to the gold standard. The conclusion of the Commission? That’s a clown idea, bro....
...as economist Barry Eichengreen writes, a gold standard would mean ”the Fed would have little ability to act as a lender of last resort to the banking and financial system. The kind of liquidity injections it made to prevent the financial system from collapsing in the autumn of 2008 would become impossible because it could provide additional credit only if it somehow came into possession of additional gold. Given the fragility of banks and financial markets, this would seem a recipe for disaster.”
Unlike 1981, in other words, when the gold standard made a kind of superficial sense as a response to our problems, 2012 is a moment when a gold standard would clearly have worsened our problems. Dramatically. As Eichengreen concludes, the idea’s “proponents paint the gold standard as a guarantee of financial stability; in practice, it would be precisely the opposite.”This is classic Keynesian talk, which completely ignores the Federal Reserve role in causing the business cycle. As for Bernanke preventing the financial system from collapsing, what he did was prevent the banksters from collapsing. If the banksters would have been allowed to fail, sound banks would have emerged who didn't operate on Wall Street as though it was the Wild West.
To be clear, gold prevents the money manipulations that can occur under a government controlled paper money. Gold can not be printed at will, the way paper money can. That's why governments and elitists hate it.