This morning I came across the following headline:
Return to the gold standard by the United States within the next five years now seems likely, since that move would help the nation to solve a variety of economic, fiscal and monetary ills, Steve Forbes predicted during an exclusive interview Monday with Human Events.
Such a move would help to stabilize the value of the dollar, restore confidence among foreign investors in U.S. government bonds and discourage reckless federal spending, the media mogul and former presidential candidate said. The United States used gold as the basis for valuing the U.S. dollar successfully for roughly 180 years before President Richard Nixon embarked upon an experiment to end the practice in the 1970s that has contributed to a number of woes that the United States is suffering now, Forbes added.
The only probable 2012 U.S. presidential candidate who has championed a return to the gold standard so far is Rep. Ron Paul, R-Texas. But the idea “makes too much sense” not to gain popularity as the U.S. economy struggles to create jobs, to recover from a housing bubble induced by the Federal Reserve’s easy-money monetary policies, to stop rising gasoline prices and to restore fiscal responsibility to U.S. government’s budget, Forbes explained.
You can read the rest of this article here, but what really got my attention was the irony. For years, if not decades, the mainstream media has been ridiculing Representative Ron Paul’s reasoned arguments on monetary policy, the pitfalls of fiat money and the urgency of returning to ‘backed money’-the Gold Standard. Even the idea of returning to the Gold Standard has been greeted with a gasp, the life-vest of irrational gangs- the labeling game and name calling, and foaming mouths spitting mockery and or profanity-filled adjectives:
“Soon every citizen will have the right to have their own pot of gold as we convert America to a Leprechauny! Here to advocate for this bright future, please join me in welcoming live via satellite, Congressman Ron Paul…”
Here is Megan McArdle, in 2007, ridiculing Ron Paul’s categorization of certain financial-banking institutions as ‘shadowy’ in defense of the Banking institution:
Fiat money inflation benefits those shadowy figures who receive access to artificially inflated money before the inflationary effects kick in [Ron Paul]. Those shadowy figures being the bankers who loaned it to you so that you could buy your house [Megan McArdle]…
That’s right, and those shadowy figures were also the ones who brought about the massive foreclosures of your houses! McArdle, while foaming at the mouth, called Paul’s categorization of these banking institutions, the shadowy entities, wrong, ridiculous and with few or no support within the mainstream economist colony. Oh boy, only a year later, in a June 2008 speech, U.S. Treasury Secretary Timothy Geithner, then President and CEO of the NY Federal Reserve Bank, placed significant blame for the freezing of credit markets on a "run" on the entities in the shadow banking system by their counterparties!
Well, let’s see if the mainstream will be quick to get all over Steve Forbes and many others who have been joining the Gold Standard choir. For years they had a punching bag who remained consistent in his view of the desperate need for turning our sickly monetary policy upside down and considering a return to the Gold Standard. They called it wacky, nutty, a lone wolf howling …you name it. Now I want to see them take on the expanded group of believers in the face of the mess we’ve been sinking in deeper and deeper every day. Will it happen? You tell me.