The True Gold Standard (Second Edition)
Key Writings: Benko on the Gold Standard
Krugman is, of course, quite correct that the “return-to-gold faction has been gaining strength.” Speculating beyond the data thereafter Krugman goes beyond studied ignorance. He traffics in shamefully deceptive statements.
Of the nearly two-dozen signers of (a fairly mildly stated concern) open letter to Bernanke which Krugman cites as prime evidence, only one or two are really notable members of the “return-to-gold faction.” Perhaps a few other signers might have shown some themselves in sympathy the gold prescription. Most, however, were, and are, agnostic about, or even opposed to, the gold standard.
Comes now to respectful international attention a volume entitled War and Gold: A 500-Year History of Empires, Adventures, and Debt by Member of Parliament Kwasi Kwarteng. This near-perfect volume appears with almost preternaturally perfect timing around the centenary of the beginning of World War I and, with that, the end of the classical gold standard. It, along with the work of Steve Baker, MP (co-founder of the Cobden Centre), constitutes a sign of sophistication about the gold standard in the British House of Commons.
Kwarteng, the most historically literary Member of Parliament since Churchill, is an impressive figure. As War and Gold‘s jacket flap biography summarizes, “Kwasi Kwarteng was born in London to Ghanaian parents in 1975. … After completing a PhD in history at Cambridge University, he worked as a financial analyst in London. He is a Conservative member of parliament and author of Ghosts of Empire: Britain’s Legacies in the Modern World.” Kwarteng thus possesses four crucial skill sets: an international, multicultural, perspective; rigorous training as an historian; direct experience in the financial markets; and the perspective of an elected legislator. It shows.
The gold standard, that great agent and guarantor of equitable prosperity, was, as ever, an early casualty of war. For a century it, and far too often equitable prosperity, faced an intermittent headwind of hurricane force. Now, with the tailwind of Peace — itself a headwind for proponents of Big Government — the gold standard becomes recoverable. Led by Ron Paul, Lewis E. Lehrman (for whose Institute’s thegoldstandardnow.org this writer serves as editor), Steve Forbes and others, let us now recover it.
A century of war ends. A golden age beckons.
Do your part, gentle Reader. Celebrate the end of a century of all-out war. And with that celebration now let the era of Big Government, having served its purpose, to combat tyranny, draw to a close.
Jack Kemp was one of very few transformational political leaders of the 20th century. He incontrovertibly was the political prime mover in raising the world’s wealth to $100 trillion (trillion with a t). As this writer elsewhere has observed:
"According to the World Bank, the world’s GDP in 1980 was around $11 trillion. Today it is around $60 trillion. The added $50 trillion-per-year capitalizes to over $100 trillion in new wealth… even when adjusted for inflation."
$100 trillion is a lot of money… even by Washington standards. Thanks to the work of Rep. Jack Kemp (R-N.Y.) and his tiny team, America was instrumental in bringing a billion people out of abject poverty into decent working affluence. Not incidentally, Kemp’s work created the conditions for the generation of nearly 40 million jobs, under Reagan and Clinton, in America. Abandoning the Kemp formula, America has stagnated.
Kemp’s honors include the award, posthumously, of the Presidential Medal of Freedom, America’s highest civilian honor, by President Obama.
Seth Lipsky, the editor of the storied New York Sun (a brand distinguished by the long residency of Henry Hazlitt), recently, in the Wall Street Journal, brought to wider attention certain remarkable recent comments by Paul Volcker. Volcker spoke before the May 21st annual meeting of the Bretton Woods Committee at the World Bank Headquarters in Washington, DC. Volcker’s remarks did not present a departure in substance from his long-standing pro-rule position. They nonetheless were striking, newly emphatic both by tone and context.
Volcker, asked by the conference organizer for his preferred topic, declared that he had said:
BY RALPH J. BENKO:
The 21st Century Gold Standard
Read The 21st Century Gold Standard: For Prosperity, Security, and Liberty by Ralph Benko and Charles Kadlec to learn what the gold standard is, how it works and how a dollar linked to gold would pave the way for a new age of American prosperity.