There was no public mention of returning to the gold standard at the Republican National Convention, but the idea has, in a way, made it into the 2012 GOP platform. In reference to former President Ronald Reagan's gold standard commission in 1981, here's what the GOP says of a new initiative:
"Now, three decades later, as we face the task of cleaning up the wreckage of the current administration's policies, we propose a similar commission to investigate possible ways to set a fixed value for the dollar."
But for some, that's just not good enough.
"Republicans do a lot of talk, the problem is we don't get any action," says Peter Schiff, President of Euro Pacific Capital and author of The Real Crash: America's Coming Bankruptcy. "We don't need to study the gold standard, we know that it works and we know that what we've got is a disaster."
The number one reason he says the gold standard is the only path forward comes down to the ballooning deficit.
"We don't have to just talk about cutting the deficit, if we go back on a gold standard, we can't finance these deficits because the Fed can't monetize the debt," he says. "The Fed can't just print money and buy bonds, and so we're going to have to actually shrink government, cut government spending."
Schiff, who's known as one of very few to call the U.S. housing crisis, blames the Bernanke Fed for creating artificially low interest rates that will eventually lead to a currency crisis that will be even larger than the 2008/09 financial meltdown.
Speaking with Breakout from the RNC in Tampa on Thursday, Schiff explains why the longer we continue our monetary policy, the deeper the dollar collapse will be, and the American public won't put up with it.
"I think we are going to be back on the gold standard," he predicts. "Not because the politicians want it, that's the last thing they want. But the people are going to demand it."
Do you believe the U.S. will ever reinstate the gold standard? Let us know what you think!
- Politics & Government
- Peter Schiff
- President Ronald Reagan
- Republican National Convention