Art Cashin, who is Director of Floor Operations for UBS and a long time commentator for CNBC, was recently interviewed by King World News.
When the 50-year Wall Street veteran was asked about discussion beginning to surface about a move to the gold standard, Cashin replied:
I think it would be an extraordinarily cold shower. I do know it is being discussed. There may be half steps that they can look at.
The most disastrous thing economically that happened in this country, happened in August of 1971, when they came off the gold exchange standard, whereby foreign governments and others could come in and present dollars and request gold.
When they went off that (the gold standard) there was no more discipline or control. That is what led to the huge inflation we saw in the 70s, and gave us a very spotty market. Volcker managed to wring most of that inflation out, very painfully. Now we are liquidating the debt of the housing bubble, and even some remaining debt from the dot com bubble.I have talked with major league Wall Street players, who have also been senior players in the administrations of former presidents, and they don't get the role that gold played in limiting the amount of debt the U.S. government could create. Cashin gets it. Three cheers for Cashin!
(Via Business Insider)