Should the U.S. Return to a Gold Standard?
Should the U.S. Return to a Gold Standard? Wednesday April 2, 2008#spacer{clear:left}#abc #sidebar{margin-top:1.5em}zSB(3,3)In my article on Republican Presidential Candidate Ron Paul, I stated that a return to the gold standard would “isolate the economy from global trade. It would be unworkable.” Several readers objected to my dismissal, citing many reputable sources to the contrary. In response, I have explained more thoroughly my point of view. To be fair, I have explained the history of the gold standard, and both its advantages and disadvantages. However, I still conclude that it is too late to return to a gold standard. For example, the U.S. does not even have enough gold, at current rates, to pay off the portion of its debt owed to foreign governments. For example, China, Japan and other countries own $2.4 trillion in U.S. Treasury debt – but there is only $182 billion (at $743 per ounce) total in gold reserves at Fort Knox. For more, see
