Cut Taxes And Go Back To The Gold Standard, Says Steve Forbes

[Vi-Jay 218]

Source with Forbes interview

Want To Fix The Economy? Cut Taxes And Go Back To The Gold Standard, Says Steve Forbes

By Henry Blodget | Daily Ticker

Former presidential candidate Steve Forbes says that the way to get out of our economic mess is to enact "pro-growth" policies such as lower corporate taxes and a radically simplified tax code.

The CEO and editor of Forbes Magazine, Steve Forbes also wants to throw out our byzantine tax system of brackets and deductions and replace it with a simple flat tax.

Forbes also thinks the US should immediately go back on the gold standard, before more damage is done to our currency.

The ability to print money, Forbes says, encourages the government to spend money, even when it has to create this money out of thin air. Returning to the gold standard, therefore, would rein in government spending.

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Base the value of the Dollar on US Gold? Now?

[slim 1,525]

Gold standard and flat tax. That makes waaaaay too much sense. Our government will never go for that.

[rika60607 215]

I'd be all for flat tax if it was set at 50% or above.

There would be no cheap labor!

Gold standard and flat tax. That makes waaaaay too much sense. Our government will never go for that.

[SMR 368]

I'd be all for flat tax if it was set at 50% or above.

There would be no cheap labor!

Correction: There would be no cheap domestic labor.

[Obama 2012 1,714]

It's a "duh" kind of thing to anyone who understands the dangers of a fiat monetary system. The ability to print and coin money at will without having something to support it is very dangerour. Hell, the founders of this country knew damn well how dangerous it was and it's why they demanded that coins had to be made of gold and silver when the constitution was written.

A fiat monetary system sounds great on the outside, but all it does is give power to the banks and screw over the people. It keeps the rich; rich and the poor; poor.

Nothing in this nation will ever change unless the Federal Reserve system is eliminated. The sweet irony and hilarity is if the Congress eliminates the Federal Reserve, they literally wipe out a large portion of our debt instantly, as the FED holds a good portion of it.

[rika60607 215]

Agreed, but cheaper non domestic labor already exists in plenty... US can not compete for that market.

Anyone (legal) would think twice before taking a job in the US.

May be then people would keep chickens and use their home backyards for gardening, as it would be more profitable than working to buy the food. The employed ones would have to support benefits for the rest of the unemployed crowd. No oversupply of workforce in the US. That would be a fun world, telling ya.

Correction: There would be no cheap domestic labor.

[Usui Takumi 1,562]

For the US to go back on the gold standard, we'd need Alchemy and alot of lead.

Edited June 23, 2011 by Sousuke

[Usui Takumi 1,562]

So I had a look at the figures. There is roughly 3 million dollars in circulation and the US gold reserve is 100 billion.

So thats a ratio of 30:1. How could that ever balance out? If we assume that gold would rise in value as a result say 10x, that still means the dollar would need to drop to 1/3 its value.

The only other solution I can think of is that the money supply shrinks heavily.

Seems like both scenarios or a combination would cause the economy to collapse and the government with it.

[^_^ 5,021]

So I had a look at the figures. There is roughly 3 million dollars in circulation and the US gold reserve is 100 billion.

So thats a ratio of 30:1. How could that ever balance out? If we assume that gold would rise in value as a result say 10x, that still means the dollar would need to drop to 1/3 its value.

The only other solution I can think of is that the money supply shrinks heavily.

Seems like both scenarios or a combination would cause the economy to collapse and the government with it.

Simple solutions (or - solutions that sound simple because they can be expressed in a few words) appeal to simple minds.

This solution is not appealing to you because you are not a simple man. You actually think about things. You actually know stuff. That's your failing.

[Vi-Jay 218]

So I had a look at the figures. There is roughly 3 million dollars in circulation and the US gold reserve is 100 billion.

So thats a ratio of 30:1. How could that ever balance out? If we assume that gold would rise in value as a result say 10x, that still means the dollar would need to drop to 1/3 its value.

The only other solution I can think of is that the money supply shrinks heavily.

Seems like both scenarios or a combination would cause the economy to collapse and the government with it.

Where did you get your calc numbers?

[Usui Takumi 1,562]

Where did you get your calc numbers?

I went back, and had another look as I couldn't find the original figures for gold.

So it looks like US reserves are higher: 387 instead of 100.

http://www.cnbc.com/id/33242464/The_World_s_Biggest_Gold_Reserves?slide=16

[Usui Takumi 1,562]

Where did you get your calc numbers?

Then I used these from the treasury:

http://mjperry.blogspot.com/2009/08/value-of-us-currency-in-circulation.html

but I think they include "lost" money

so I'd go by this report:

http://www.fms.treas.gov/bulletin/index.html

which is closer to 1 trillion. Thats means the ratio is in the ball park of 3:1

[Vi-Jay 218]

Then I used these from the treasury:

http://mjperry.blogspot.com/2009/08/value-of-us-currency-in-circulation.html

but I think they include "lost" money

so I'd go by this report:

http://www.fms.treas.gov/bulletin/index.html

which is closer to 1 trillion. Thats means the ratio is in the ball park of 3:1

Thanks. The Gold reserve.., how many Troy ounces is the US holding? Where did you get that number?

Edited June 23, 2011 by Vi-Jay

[Usui Takumi 1,562]

Thanks. The Gold reserve.., how many Troy ounces is the US holding? Where did you get that number?

Per CNBC its 8,965.6 tons

[Vi-Jay 218]

Per CNBC its 8,965.6 tons

Thanks Sousuke. Would you please provide CNBC link. I'm curious where they got that amount. What price per ounce did you multiply?