Gekko’s Guide to Prosperity: A Gold Standard Coming

SOMETIME in the next few years, the President of the United States will sign an executive order directing the secretary of the treasury to stabilize the price of our international gold reserves. He will follow this up with a legislative proposal to make the directive permanent, which would require the Federal Reserve to maintain the dollar/gold ratio at, let us say, $350 per ounce. The United States, which was on a gold standard from 1791 to 1971, with the exception of only a few years during the Civil War era, will once again have a dollar as good as gold.

The reason this will happen, under President Clinton or his successor in 1997, is that it is the easiest way to save $1 trillion in debt-service costs.

SOMETIME in the next few years, the President of the United States will sign an executive order directing the secretary of the treasury to stabilize the price of our international gold reserves. He will follow this up with a legislative proposal to make the directive permanent, which would require the Federal Reserve to maintain the dollar/gold ratio at, let us say, $350 per ounce. The United States, which was on a gold standard from 1791 to 1971, with the exception of only a few years during the Civil War era, will once again have a dollar as good as gold.

The reason this will happen, under President Clinton or his successor in 1997, is that it is the easiest way to save $1 trillion in debt-service costs.