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What's the rebuttal to the point/argument made by JP Morgans chief economist?

"This monetary crisis is well known by the international bankers. They want the U.N. to come in and solve this problem," he said. "The dollar will probably eventually disintegrate and be taken over. But I don't want the U.N. issuing that currency." Economists note that Paul's long-standing proposal to return the dollar to a gold standard would force the United States to relinquish control of its currency. "We would still have monetary policy - it would be set by gold miners in South Africa and Uzbekistan, rather than bureaucrats in Washington," said Michael Feroli, chief U.S. economist with JPMorgan Chase.

"If you like what OPEC means for oil prices, you'd love what the gold standard would do to financial markets."

For starters, the US doesn't currently have control of it's monetary policy. The Federal Reserve is a private banking cartel, and according to Congressman Alan Grayson is more secretive than the CIA. So as far as we know they could be as concerned with large foreign banks' profits as much as US banks. And even if not, being concerned with the US banks' profits is not the same as being concerned with the US' population welfare obviously. So to say current Federal Reserve policy is set by bureaucrats in Wash in misleading at the very least, and probably false.

Another point is that the world gold supply only increases at about 2%/year approximately. It's a lot harder to mine gold than have the Federal Reserve increase bank reserves ("printing" money).

 

[Darthbrooklyn]

What's the rebuttal to the point/argument made by JP Morgans chief economist?

Quite simply, You cant mine gold anywhere near as fast as the Fed can print money

 

[Darthbrooklyn]

Why anyone would listen to JP Morgans argument against the gold standard is beyond me.. Its the same as a cow farmer saying you shouldnt drink orange juice.. Or bats coming on TV to tell you that the sun in dangerous..

 

[KingNothing]

What's the rebuttal to the point/argument made by JP Morgans chief economist?

That Paul's variation of a gold standard is really just competing currencies. The new currency paradigm wouldn't be strictly gold-based - it would be any that the free market endorsed.

 

[WD-NY]

That Paul's variation of a gold standard is really just competing currencies. The new currency paradigm wouldn't be strictly gold-based - it would be any that the free market endorsed.

The way he framed his point/argument was tricky... because RP is focused on value of dollar and he basically switched from 'currency' to 'monetary policy' so that he could then claim that we would no longer have "control" over our currency/monetary-policy if we turned off the printing presses.

Of course, just because our govn't has control over monetary policy doesn't mean we habe control over the value of our dollars (market sets that price in response to many factors, chief among them being actions of the FED). But I get the impression that people the bankster and keynsian argument against Paul is that being able to print more dollars = control = good/sane.... (even if printing more dollars leads to disaster/bubbles)?

yes?

 

[Carole]

That article seems entirely based on comments by that ex-staffer Donder -what's is face, the one that keeps using the newsletters against Paul.