November 11, 2009

The Gold Standard

"Well, the gold standard works. What we have now does not. Our founding fathers put us on a gold standard for a good reason, because paper currency existed around that time. It had existed in the past. And they were familiar with how miserably it had failed. So they wanted to set us on a gold standard. And we became the world's wealthiest nation while on the gold standard.

We were on the gold standard for all of the 19th century, which was our fastest-growing century (more so than the 20th century). We had the Industrial Revolution; we built up our arsenals and our democracy—we won World War II on the gold standard. We were actually on the gold standard up until Richard Nixon ended it in 1971. So to say that the gold standard is somehow arcane, or that you can't have economic growth on the gold standard—that's all nonsense.

It's the politicians who don't like gold, because gold imposes discipline on politicians. It keeps them honest, and politicians don't want to be honest. They want to get elected."

in Yahoo TechTicker

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
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