US congressman pushes to define the dollar as a fixed weight of gold with new legislation

Recently, a new piece of legislation has been introduced by Republican Congressman from West Virginia Alex Mooney “to define the dollar as a fixed weight of gold.”

It is quite clear that bureaucrats are starting to take note of the war on the middle class as workers and savers are being squeezed thanks to inflation in this prolonged zero interest rate environment we have been living through.

In the bill, Mooney criticized monetary policy, in particular how purchasing power has eroded drastically ever since the gold standard was abolished.

The United States dollar has lost 30 percent of its purchasing power since 2000, and 96 percent of its purchasing power since the end of the gold standard in 1913. Under the Federal Reserve’s two percent inflation objective, the dollar loses half of its purchasing power every generation, or 35 years

Mooney goes on to describe the advantages of a link to gold:

The gold standard puts control of the money supply with the market instead of the Federal Reserve. The gold standard means legal tender defined by and convertible into a certain quantity of gold. Under the gold standard through 1913, the United States economy grew at an annual average of four percent, one-third larger than the growth rate since then and twice the level since 2000

 

The big question remains concerning the United States actually having its 8,1335.5 tons of physical gold as stated in its official reserves. There has been peculiar activity in the last few years with countries wanting to bring their gold holdings home, like Germany and Hungary.

The bottom line is, there has never been a very detailed audit on the US gold reserves which could be the reason why countries are starting to bring their gold home, and why this bill might never be passed.

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