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Archive for March 2011

Causes of Inflation- the Reserve Currency Curse

Causes of Inflation, Reserve Currency, Gold Standard

From http://www.thegoldstandardnow.org/the-lehrman-gold-standard-articles/john-d-mueller/100-go-forward-to-gold-how-to-lift-the-reserve-currency-curse


Go Forward to Gold - How to Lift the Reserve Currency Curse
   
THE most disturbing aspect of the current financial crisis is that no U.S. official has correctly identified its primary cause. Experts variously attribute the economic reverses to subprime lending, derivative trading, excessive leverage, and regulation that was either too lax or too strict (take your pick), but these are symptoms rather than causes. Ignored is the main culprit: the dollar’s role as the world’s main official reserve currency. Though he almost certainly doesn’t realize it yet, President-elect Barack Obama will either set the dollar’s reserve-currency status on the path to extinction or risk becoming the next victim of what we call “the reserve-currency curse.”



Read more:  http://www.thegoldstandardnow.org/the-lehrman-gold-standard-articles/john-d-mueller/100-go-forward-to-gold-how-to-lift-the-reserve-currency-curse

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Ronald Reagan and the Bretton Wood System

 

 

From http://www.thegoldstandardnow.org/the-lehrman-gold-standard-articles/john-d-mueller/187-why-real-monetary-reform-can-and-must-be-done-now

 

Under President Reagan, Congress reformed the income tax code and balanced pay-as-you-go Social Security despite deep partisan divisions. Yet by Reagan’s self-assessment, the Reagan Revolution was incomplete when he left office.

We believe the monetary and budget reforms left unfinished in the 1980s now seem finally doable.

“When a conservative says it is bad for the government to spend more than it takes in, he is simply showing the same common sense that tells him to come in out of the rain,” Reagan had remarked in a February 1977 address outlining his presidential strategy.

He was restating in common language the first principle of successful economic policy that went back to George Washington and Alexander Hamilton: Don’t print money to fund the federal budget.

Yet after leaving office, Reagan assessed the result this way: “With the tax cuts of 1981 and Tax Reform Act of 1986, I’d accomplished a lot of what I’d come to Washington to do. But on the other side of the ledger, cutting federal spending and balancing the budget, I was less successful than I wanted to be. This was one of my biggest disappointments as president. I just didn’t deliver as much to the people as I’d promised.”

Ronald Reagan and the Bretton Wood System

 

 

From http://www.thegoldstandardnow.org/the-lehrman-gold-standard-articles/john-d-mueller/187-why-real-monetary-reform-can-and-must-be-done-now

 

Under President Reagan, Congress reformed the income tax code and balanced pay-as-you-go Social Security despite deep partisan divisions. Yet by Reagan’s self-assessment, the Reagan Revolution was incomplete when he left office.

We believe the monetary and budget reforms left unfinished in the 1980s now seem finally doable.

“When a conservative says it is bad for the government to spend more than it takes in, he is simply showing the same common sense that tells him to come in out of the rain,” Reagan had remarked in a February 1977 address outlining his presidential strategy.

He was restating in common language the first principle of successful economic policy that went back to George Washington and Alexander Hamilton: Don’t print money to fund the federal budget.

Yet after leaving office, Reagan assessed the result this way: “With the tax cuts of 1981 and Tax Reform Act of 1986, I’d accomplished a lot of what I’d come to Washington to do. But on the other side of the ledger, cutting federal spending and balancing the budget, I was less successful than I wanted to be. This was one of my biggest disappointments as president. I just didn’t deliver as much to the people as I’d promised.”

World Dollar or Strong US Dolllar? Why you cannot have both

 

World Dollar, Devaluation of Dollar, Business News, World News

From http://www.thegoldstandardnow.org/key-blogs/181-the-third-economic-disorder

The Third Economic Disorder

 

3.  The world dollar standard destabilizes the value of the dollar, fomenting euphorias and panics.

An economy based on money without intrinsic worth is like a jet aircraft without a gyroscope being kept stable exclusively by the pilot. The lack of stability injects a huge amount of uncertainty into the economy and the financial markets.

 

Read More: http://www.thegoldstandardnow.org/key-blogs/181-the-third-economic-disorder