Monday, May 21, 2012

Herman Cain Calls for a Return to the Gold Standard

A new Herman Cain book will be out tomorrow, 9-9-9 An Army of Davids,.

I see major problems with Cain's 9-9-9 tax plan, but it is fascinating that he is now calling for a return to the gold standard. Ralph Benko writes:
In 9-9-9 An Army of Davids, coauthored with his senior economic advisor Rich Lowrie, Cain devotes over a quarter of the book to passionate advocacy of the gold standard. 
Hmm, a quarter of the book.  I can't wait to see what Cain has to say about gold. Though it is noteworthy that a former Fed branch chairman is now advocating a gold standard. I wonder where he got that idea from?

Last week, he had this to say about gold in WSJ:
Article I, Section 8 of the Constitution grants power to Congress "to coin Money, [and] regulate the Value thereof." But for the last 40 years in Washington, regulate has meant manipulate, with the Federal Reserve raising and lowering interest rates and buying and selling assets at its own discretion. All of this manipulates the value of the dollar. We regulate time by making sure an hour is always a fixed quantity of minutes and a foot is always a fixed quantity of inches. The more complex a society, the more it depends on fixed and rigorously reliable standards. A dollar should be defined—as it was prior to 1971 under the postwar Bretton Woods system—as a fixed quantity of gold. 
However imperfect a gold standard may be, it remains the best among all alternatives. The empirical data for both the classical gold standard, which I favor—and even the flawed "gold-exchange" standard, as we had under the Bretton Woods system—are impressive. 

 Well he is right about the gold exchange standard being flawed, since only governments were allowed to redeem dollars in gold in 1971, prior to President Nixon completely closing the gold window.

But, it will be enlightening to see what else Cain has to say about in his book about gold. You have to give him credit for this quote in his WSJ column:
I realize the Washington establishment goes ballistic at this suggestion. Gold is kryptonite to big-spending politicians. It is to the moochers and looters in government what sunlight and garlic are to vampires. 
I suspect that the following Ron Paul has developed with his anti-Fed campaign is probably what brought gold to the attention of Cain, so good for him. Let's hope he in not an opportunist jumping on the bandwagon. Don't think he isn't aware of how popular gold is. In his WSJ op-ed. he also writes:
Nearly half (44%) support a return to a gold standard, according to an October 2011 Rasmussen Report. That support soars to 57% when respondents know it will "dramatically reduce the powers of bankers and the political class to steer the economy."
 Perhaps his book will reveal how much he has really learned.


  1. While, it's hard to criticize someone who now speaks positively of gold, I do have a tough time believing him.

    The man was just running for President and talking about how the Koch Brothers were his brothers from another mother.

    I have a feeling this is a finger-in-the-wind deal for Cain....similar to how Jim Cramer was Mr. anti-Fed when he had Ron Paul on his show.

  2. I'll bet he's just hopping on the band wagon. He'll be on to something else once the election is over....or the polls change.

  3. This is another elitist attempt I co-op the gold standard. Unfortunately the devil is in the details. How will it be defined and implemented? By the government or the free market.

  4. that guy had to had help writing that. listening to him speak....I wasn't impressed with his knowledge about things.

    his writing seems really logical and flows well, which makes me think he had help

  5. I feel that it's really a waste of time to talk about Cain. How do you feel about Ray Dalio's interview in Baron's over the weekend?

  6. Bullshit.

    "We have to mend the fed, not end the fed" -Herman Cain

    "Ron Paul wants to end everything! Don't end things, fix them!" - Herman Cain

  7. The good thing about stuff like this is it is a sign that the elites know which way the political winds are blowing, and the looming Ron paul movement is for real. Newt called for the gold standard to return, and now Herman Cain does, too. The important thing to remember is that they are also going to try and co-opt the movement like how they did the Tea Party, too. But since this one isn't full of fakes, it won't work.

  8. What a loser. Probably hasn't told the truth since the first time he told mommy he had to go pee-pee.

  9. Robert, Have you written about Cain's "9-9-9 Plan"? I would love to hear your take. Also, don't be so quick to knock us "bandwagon jumpers". Like you told me when we spoke on Schiff Radio, we have just been "educated" the wrong way - about the gold standard and the federal reserve. Education or Indoctrination?

  10. he's talking about a government gold standard, not a system of 100% gold money. in short, it's no good. gary north has dealt with this before and brought it up fairly recently -- it was a moderately warm topic about a year ago when cain was still in the running.

  11. From what I saw of Mr. Cain in interviews, while he was a candidate, he did not impress me whatsoever. He is unable to think on his feet and has no convictions of his own. He makes Mittens look stalwart and consistent which is quite an accomplishment.

  12. Isn't this the same guy who heaped praise on the Greenspan Fed in the primary debates? Maybe he's going senile.

    1. No, he has a wetted finger to the political wind.

      "44% of people support a return to the gold standard..."

  13. Maybe the GOP elites saw what Cain did for the flat tax and figured he would help destroy the calls for a return to the gold standard with his endorsement like he helped destroy the chances for a flat or national sales tax. He has the touch of endorsement death.

    Is it a surprise that two losers like newt and cain are the first two to endorse the gold standard of the GOP candidates?

  14. He's a jackass and a political opportunist. But if he can bring attention to gold it's fine with me.