Tuesday, March 22, 2016

Donald Trump on Gold and the Federal Reserve

Smaul gld emails and points me to a Trump interview from last year where Trump discussed gold and the Federal Reserve. In the remarks, he is non-committal on the Fed and offers an extremely confusing comment on gold. He seems to recognize that the gold standard is a positive, but then says we could not return to a gold standard because the US doesn't have enough gold. It is completely unclear whether this is an informed comment  by Trump on  US gold holdings or Trump talking off the top of his head:
 Last March Donald Trump had this to say on the gold standard in a television interview with Pittsburgh Action News:
"In some ways I like the gold standard and there is something very nice about the gold standard... We used to have a very solid country because it was based on a gold standard and we do not have that anymore...It would be very very hard to do at this point and one of the problems is we do not have the gold - other places have the gold"...

In the same Pittsburg Action News interview, Mr. Trump was equivocal on his views on whether the Fed should be disbanded. "We have very conservative Republicans who like the Federal Reserve, we have some who think it should be disbanded. I have no opinion yet. I've not really formed an opinion."


  1. 1. I guess it's good then that Trump has so many wise Neocon advisers explaining everything about everything to him, right?

    2. Have any of you guys ever wished that you could be profoundly incurious too?

  2. See my 'Monetary Revolution' book on Amazon.com and at part 2 in the left margin of my site Forwrd-USA.org. The current problem is that when Nixon went off the Gold Std in 1971, all nations did. Whoopee we can make money out of thin air!! Money was valued by the marketplace (buyers) by the strength of the nation behind it. There has always been one in modern history called the 'reserve currency' which banks keep a supply of. Most int'l transactions are done in it. It has been the UK Pound, the French Franc, and then the USD 'effectively' since UK and France went broke in 1918 after WW1, but then 'officially' by the Bretton Woods Agmt in 1944. The USD was then used for about 80% of int'l transactions. The issuer of the world's primary reserve currency can create new money to pay its bills and we have abused it greatly by creating too many. Nations started converting their paper notes to gold coins. In 1933, FDR made it illegal to own gold coins. There are too many dollar out there and their purchasing power (PP) has decreased. Remember a family car cost about $2,000 in the 1970s but is now $2,000; Motel 6 was $6, now $50 or more, etc.
    My book recommends a conversion plan with coin 'weight, in grams, of 24 ct gold' as the 'unit of account' (no dollars') for pricing. There is always 'enough' because with a near-fixed supply (mining brings only 2 or 3% new gold per year) the PP per gram APPRECIATES!! (Econ 101) THis is a term we have never used much before. and encourages savings. Paper notes can be used as a convenience but must be redeemable for gold on demand. Private mints are allowed, and the meddling, counterproductive Fed is ended. See more in my book. Sound currency (made of, not 'backed by') a precious metal (or another commodity that meets my '10 rules' in the book; gold and silver are best based on usage) can be used.
    However, politicians and bankers love to have lot of money and they are the thugs who have created all central banks in history, starting with the Bank of England in 1694.
    Regards, Dave