Gold & Silver as Legal Tender | The Gold Standard 2423

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In this episode of The Gold Standard, series hostess Jennifer Horn and Ken Russo, SVP of the Midas Gold Group, discuss the growing movement to reintroduce gold and silver as legal tender in the United States. Twenty-three states are driving this change. Why? For 180 years, the US thrived on a gold-based monetary system, experiencing unprecedented economic growth without the inflation issues plaguing the post-gold standard era. Since Nixon severed the dollar’s link to gold in 1971, median household incomes have been adversely impacted, and our economic stability has eroded.

The Tipping Point Has Begun

Central banks worldwide are purchasing gold at record levels, signaling doubts about the dollar’s long-term value. The popularity of cryptocurrencies and the debt crisis further underscore the need for a stable monetary system.

A Dollar’s Worth: Then and Now

Ken Russo shares a fascinating chart that vividly demonstrates the erosion of the dollar’s value and the impact of inflation over time. In 1920, a single dollar could buy you 30 chocolate bars. By 1930, it would still get you ten rolls of toilet paper; in 1940, it was enough for ten bottles of beer. However, the dollar’s value declined sharply after 1971, when the currency transitioned to a fiat system. By 1971, a dollar could only purchase a drive-in movie ticket; by 1980, one dollar could buy 17 oranges. Fast forward to 2000, and one dollar could buy just four grapefruits. By 2010, the value of one dollar had diminished even further. You could buy only two lemons. Today, shockingly, a dollar cannot buy anything.

Jim Rickets’ Study on the Gold Standard

Jim Rickets, author of Currency Wars, recently conducted a study on the potential reintroduction of the gold standard in the United States. The implications would be staggering if the US were to return to a gold-backed currency. Historically, US currency was backed by 40% gold, with the country’s reserves totaling approximately 8,000 tons, a figure that hasn’t been audited since the 1960s. Gold would need to be valued at an astonishing $27,000 per ounce to support the current amount of paper currency in distribution. This increase underscores the drastic measures required to stabilize the dollar. Since the gold standard was abandoned in 1971, when gold was $30 an ounce, the spot price of gold has surged to over $2,300 today. With the Federal Reserve poised to continue printing and borrowing more money, Jim Rickets warns that the dollar has an even greater distance to fall, highlighting the ongoing challenges of maintaining the currency’s value.

Edward Griffin’s The Creature from Jekyll Island

Edward Griffin’s The Creature from Jekyll Island delves into the secretive creation of the Federal Reserve System. In 1910, a group of the nation’s most influential bankers and financial moguls convened on Jekyll Island to draft the blueprint for the Federal Reserve Act. This clandestine meeting aimed to establish a central banking system to stabilize the economy and prevent bank failures. However, Griffin argues that this move consolidated immense power into the hands of a few elite individuals, setting the stage for future financial manipulation and crises. Today, the Federal Reserve’s influence shapes economic policy and monetary supply, often sparking debates about its transparency and economic control.

Senator Thomas Massie’s Bill to Abolish the Federal Reserve

Recently, Senator Thomas Massie, a Republican from Kentucky, introduced HR8421, a bill to abolish the Board of Governors of the Federal Reserve System and repeal the Federal Reserve Act. This bold move came after Massie conducted a Twitter poll, where 86% of over 115,000 voters supported ending the Fed. The proposal, known as the Federal Reserve Board Abolition Act, aims to dismantle America’s central banking system, reflecting a significant shift in sentiment towards the Federal Reserve’s role. While previous attempts to audit or reduce the Fed’s influence have failed, Massie’s initiative has garnered attention. It underscores the growing skepticism about the Federal Reserve’s control over the economy and the pursuit of alternatives to traditional banking systems.

“It’s better to have gold and not need it than to need it and not have it.”
—Ken Russo

The question of why we can’t return to a sound money policy, such as the gold standard, remains complex and contentious. Critics argue that the flexibility of fiat currency allows for more responsive economic policy and crisis management. However, there is no substitute for the stability and trust that a gold-backed currency can provide. Gold’s enduring value protects against economic uncertainty and inflation, a tangible asset that transcends the fluctuations of fiat money. As the debate continues, the appeal of gold as a cornerstone of financial security and integrity endures, challenging the modern reliance on fiat currency and highlighting the potential benefits of a more stable monetary system.

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