# News & Current Events > Economy & Markets >  FT: Republicans eye return to gold standard

## randomname

The gold standard has returned to mainstream U.S. politics for the first time in 30 years, with a gold commission set to become part of official Republican party policy.

Drafts of the party platform, which it will adopt at a convention in Tampa Bay, Florida, next week, call for an audit of Federal Reserve monetary policy and a commission to look at restoring the link between the dollar and gold.

The move shows how five years of easy monetary policy  and the efforts of congressman Ron Paul  have made the once-fringe idea of returning to gold-as-money a legitimate part of Republican debate.

Marsha Blackburn, a Republican congresswoman from Tennessee and co-chair of the platform committee, said the issues were not adopted merely to placate Paul and the delegates that he picked up during his campaign for the partys nomination.

These were adopted because they are things that Republicans agree on, Blackburn told the Financial Times. The House recently passed a bill on this, and this is something that we think needs to be done. 

The proposal is reminiscent of the Gold Commission created by former president Ronald Reagan in 1981, 10 years after Richard Nixon broke the link between gold and the dollar during the 1971 oil crisis. That commission ultimately supported the status quo.

There is a growing recognition within the Republican party and in America more generally that were not going to be able to print our way to prosperity, said Sean Fieler, chairman of the American Principles Project, a conservative group that has pushed for a return to the gold standard.

A commission would have no power except to make recommendations, but Fieler said it would provide a chance to educate politicians and the public about the merits of a return to gold. Were not going to go from a standing start to the gold standard, he said.

The Republican platform in 1980 referred to restoration of a dependable monetary standard," while the 1984 platform said that the gold standard may be a useful mechanism. More recent platforms did not mention it. 

Any commission on a return to the gold standard would have to address a host of theoretical, empirical and practical issues.

Inflation has remained under control in recent years, despite claims that expansion of the Feds balance sheet would lead to runaway price rises, while gold has been highly volatile. The price of the metal is up by more than 500 per cent in dollar terms over the past decade.

A return to a fixed money supply would also remove the central banks ability to offset demand shocks by varying interest rates. That could mean a more volatile economy and higher average unemployment over time

http://www.cnbc.com/id/48770752

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## CT4Liberty

Inflation has remained under control in recent years, despite claims that expansion of the Fed’s balance sheet would lead to runaway price rises, while gold has been highly volatile. The price of the metal is up by more than 500 per cent in dollar terms over the past decade.

A return to a fixed money supply would also remove the central bank’s ability to offset demand shocks by varying interest rates. That could mean a more volatile economy and higher average unemployment over time

Inflation has remained under control, only according to the group responsible for keeping inflation under control. Food prices, gas prices and GOLD prices are way up... the value of Gold is fairly steady...the value of gold against other currencies (like the dollar) is what changes...

How has the central banks ability to "offset demand shocks" kept the market stable over the last 30 years? Not very well...

The article was doing so well until the author decided to talk about things he has no understanding of...

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## Iptay

This article is just awful... Does the Republican party think this will garner us Ron Paul supporters to vote for Romney?

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## Zippyjuan

> Inflation has remained under control in recent years, despite claims that expansion of the Fed’s balance sheet would lead to runaway price rises, while gold has been highly volatile. The price of the metal is up by more than 500 per cent in dollar terms over the past decade.
> 
> A return to a fixed money supply would also remove the central bank’s ability to offset demand shocks by varying interest rates. That could mean a more volatile economy and higher average unemployment over time
> 
> Inflation has remained under control, only according to the group responsible for keeping inflation under control. Food prices, gas prices and GOLD prices are way up... the value of Gold is fairly steady...the value of gold against other currencies (like the dollar) is what changes...
> 
> How has the central banks ability to "offset demand shocks" kept the market stable over the last 30 years? Not very well...
> 
> The article was doing so well until the author decided to talk about things he has no understanding of...


I might suggest putting quotes around sections from the article to more easily distinguish that from what you wrote. But welcome to the forum! 

Yes, overall price inflation has been very low the past few years.  But the money the Fed used to purchase all those Mortgage Backed Securities and US Treasury notes is still out there- potential money.   The money won't effect prices until people start borrowing and spending it. Then we may see price inflation take off.  Right now there is zero demand for that excess money they tried to inject which is why we aren't seeing any impacts from it.  The demand for goods and services is also very week which makes it difficult for producer to raise their prices.  A gold standard won't solve all the problems either though.

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## CT4Liberty

Thanks Zippy - I've been a long time lurker here, signed up for some specific questions as I'm one of the Liberty followers now getting involved in local politics to try to keep RP's message alive.  So I'll start posting here more often.

I had thought I did a quote, must have not done it properly - I'll make sure to quote in the future.

A gold standard is not the cure to all ills, thats for sure, but it at least is one more hoop those in power have to jump through in order to inflate their way to power.

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## Travlyr

> I might suggest putting quotes around sections from the article to more easily distinguish that from what you wrote. But welcome to the forum! 
> 
> Yes, overall price inflation has been very low the past few years.  But the money the Fed used to purchase all those Mortgage Backed Securities and US Treasury notes is still out there- potential money.   The money won't effect prices until people start borrowing and spending it. Then we may see price inflation take off.  Right now there is zero demand for that excess money they tried to inject which is why we aren't seeing any impacts from it.  The demand for goods and services is also very week which makes it difficult for producer to raise their prices.  A gold standard won't solve all the problems either though.


While the gold standard will not solve all the problems it will accomplish two things. It will empower productive people instead of the government and it will promote honest trade.

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## whippoorwill

--------------"Ahh Gold!"-----------
..


http://www.youtube.com/watch?v=5Z76kAl16Vo

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## Bern

The party platform is meaningless.  It does not direct elected officials on policy.  If you want to affect policy, you need to elect people who are dedicated to the issue(s).

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## DEGuy

The comments section in this article is terrible. Tons of posters who need education. I actually think including this in the party platform is not a good idea. First, it's there just to try and sway some Ron Paul supporters. Secondly, the "commission" will be full of Keynsians. Thirdly, bringing this to the forefront will only allow the press to have a field day and declare Republicans as "antiquated" or "ignorant about economics". We'll lose the fight for people's minds before there is even a chance to educate them.

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## Origanalist

> This article is just awful... Does the Republican party think this will garner us Ron Paul supporters to vote for Romney?


Yes, at least they hope it will.

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## Acala

This is pure theatrics.  The Republican party as currently constituted will NEVER advocate anything that puts a lid on endless spending.  This is a deliberate ploy to try and bring RP supporters into the fold - just like talk of replacing the Bernank.  Ain't gonna happen folks.

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## Zippyjuan

> While the gold standard will not solve all the problems it will accomplish two things. It will empower productive people instead of the government and it will promote honest trade.


Interesting. Instead of greed, we will suddenly find morality if only we go to using gold for money.

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## Travlyr

> Interesting. Instead of greed, we will suddenly find morality if only we go to using gold for money.


No, it is just that commodity money is honestly earned. No privileged people get to print money for a living. Everyone must produce something of value or hold something of value. In other words, people who work make a lot of money and people who don't work go back to work.

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## Constitutional Paulicy

*Republicans eye return to fixed value for dollar*




> WASHINGTON (Reuters) - The Republican Party is set to call for the creation of a commission to look at possible ways to set a fixed value for the dollar, 40 years after President Richard Nixon ended its link to gold.


more here.... http://news.yahoo.com/republican-pla...003903518.html

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## Travlyr

Why can't they just let the free-markets work? Price fixing by Ivy League graduates = fail.

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## Steven Douglas

> Why can't they just let the free-markets work? Price fixing by Ivy League graduates = fail.


EPIC FAIL.

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## Constitutional Paulicy

Ron Paul on CNBC (Return to the Gold Standard) 8/24/12

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