Washington Post: "Republican presidential candidates want to ... restore the gold standard...."

As observed by this writer at Forbes.com:

The candidates of both parties finally have realized that the defining issue of the 2012 presidential election will be job creation.  President Barack Obama leads with a proposal that commentator Larry Kudlow calls, persuasively, a straight jacket rather than a jobs creator.  The Wall Street Journal loves the plan put forth by the fast-fading Huntsman and slams the first-tier Romney plan. Meanwhile, a credible key to explosive jobs growth begins to come to the fore:  a credible monetary policy prescription for a seriously stable dollar.
A sure signal of a rising policy vector? The Washington Post sends forth a top gunslinger to attack it — “it” being the gold standard and the GOP candidates for considering it.  The Washington Post‘s Pulitzer-winning business and economics columnist Steven Pearlstein writes in his Sept. 10 column, “The magical world of voodoo ‘economists’“:

"Republican presidential candidates... wouldn’t mind ... putting the country back on the gold standard.

I realize economics isn’t a science the way biology and physics are sciences, but it’s close enough to one that there are ideas, principles and insights from experience that economists generally agree upon. Listening to the Republicans talk about the economy and economic policy, however, is like entering into an alternative reality." ...

Too facile and too glib, Steve.

Hayek, speaking about the “Pretense of Knowledge” upon his acceptance of the Nobel Prize in Economics (kooky, Steve?), talked about the very “ideas, principles and insights from experience that economists generally agree upon” on which Pearlstein’s confidence depends:

The credit which the apparent conformity with recognized scientific standards can gain for seemingly simple but false theories may, as the present instance shows, have grave consequences.

In fact, in the case discussed, the very measures which the dominant “macroeconomic” theory has recommended as a remedy for unemployment — namely, the increase of aggregate demand — have become a cause of a very extensive misallocation of resources which is likely to make later large-scale unemployment inevitable. ...

Obama_and_Ben

Photo by Pete Souza, courtesy of the White House

There is something more than a little disorienting at seeing one of the soldiers of the Washington Post, red as its coats have grown, conclude his column with a triumphant embrace of the president whose downfall his predecessors at the Post brought about:  “It took a while, but even Richard Nixon came around to declaring himself a Keynesian. Maybe there is still hope for Perry and the gang.”

Hope?  This seems to say that it is Pearlstein’s hope that GOP candidates like Rick Perry (and the “gang”) will … measure up to … the personal integrity? … the wonderful stagflation? … of Richard Nixon.  Yet …  Pearlstein writes that “Listening to the Republicans talk about economic policy … is like entering into an alternative reality.”  

Discuss.

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The Most Important Thing Holding Up the US Dollar

by Ron Paul

Today’s economic conditions reflect a fiat monetary system held together by many tricks and luck over the past 40 years. The world has been awash in paper money since removal of the last vestige of the gold standard by Richard Nixon when he buried the Bretton Woods agreement — the gold exchange standard — on August 15, 1971.

Since then we’ve been on a worldwide paper dollar standard. Quite possibly we are seeing the beginning of the end of that system. If so, tough times are ahead for the United States and the world economy.

Yellen’s Missing Jobs

March 31, 2014

The new Federal Reserve chairman, Janet Yellen, gave a policy speech today at Chicago, where, in a startling gesture, she mentioned three working individuals by name — Jermaine Brownlee, Vicki Lira, and Doreen Poole. They lost their jobs the Great Recession and have been struggling ever since. It was a refreshing, even affecting demarche by Mrs. Yellen, who has made a return to full employment a public priority. She underscored her sincerity by telephoning Mr. Brownlee and Ms. Lira and Ms. Poole before delivering her speech.

Read More

 


The Rueffian SynthesisJohn D. Mueller

Publisher's Note: Originally released in June/July of 1991, this detailed report discusses Jacques Rueff's economic theories and applies them to modern economic events.

By John D. Mueller

Who Was Jacques Rueff?

... Trained in science and mathematics at the Ecole Polytechnique, Rueff devoted his first theoretical work to showing that the same scientific method applies to “moral” or “social” sciences like economics as to the physical sciences (Des Sciences Physiques aux Sciences Morales, 1922). In both cases, he pointed out, individual acts can be “indeterminate,” but the pattern of large numbers of individual acts can be predicted as a matter of probability. And so in economics no less than physics, as he later wrote, “A scientific theory is considered correct only if it makes forecasting possible.”

Read More

Excerpts From:


by Lewis E. Lehrman

"Forerunners of man lived upon the planet several million years ago. But the unique, modern, social order of man – civilization – emerged only four to five thousand years ago. Historical and archaeological evidence suggests that the institution of money evolved coterminously with civilization. From the standpoint of the 100,000-year history of Homo sapiens, civilization and money are but young and fragile reeds. Today their very existence is threatened by financial disorder."

Learn More

 

Hostility toward gold has a long pedigree.  19th century depiction of Pliny the Elder courtesy of the Library of Congress Gaius Plinius Secundus, commonly known as Pliny the Elder, in his The Natural History, Book 33, section 3, writes: Would that gold could have been banished for ever from the earth, accursed by...

Passing Pesos

Kathleen Packard  |  Apr 16, 2014
The New York Times’ Jonathan Gilbert reported: “Argentines endured price rises of nearly 30 percent last year, according to an unofficial index published by opposition politicians; the government, which has been accused of manipulating economic data in the past, claims inflation reached only 10.9 percent in 2013. In 2014, inflation...
VIEW BLOGS
Jacques Rueff, a key figure in European economic circles from the 1930s until the 1970s, was, first and foremost, an...
VIEW WORLD NEWS
Jul 30, 1981
Key Monetary Writings
Lewis E. Lehrman

The Case for the Gold Standard

Under the gold standard, the immense national debt could be refinanced very long term... View article...
VIEW KEY MONETARY WRITINGS
 
Prosperity Through Gold
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Ralph J. Benko, Editor

The Gold Standard Now
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Senior Advisors

Sean Fieler, James Grant,
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In Memoriam
Professor Jacques Rueff
(1896-1978)

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