The planned nominations were announced by Mr. Trump in a tweet late Tuesday. Each must be confirmed by the Senate.
What exactly is the gold standard?
It's a policy that links the value of a country's currency to gold. The U.S. adopted it in 1879, and it allowed consumers, banks and businesses to exchange a dollar for actual gold. That may sound like a solid deal, given that actual gold would back up your bucks. But there's a downside: A country can only issue as much money as it has backed by gold.
The upshot is that countries on the gold standard have less flexibility to respond to financial crises or economic downturns. Currently, the U.S. dollar isn't tied to any specific asset.
When did the U.S. abandon the gold standard?
The long goodbye to the gold standard began with the Great Depression, when panicked consumers sought to trade dollars for gold. To keep the country's gold reserves from becoming depleted, the U.S. had to offer high interest rates as an alternative, which, in turn, made it more expensive to lend money and hampered the country's ability to rebound from the Depression.
In response, President Franklin Roosevelt suspended the gold standard in 1933, a move which is widely credited with helping the country climb out of the Depression. That's because the decision allowed the government to lower interest rates and pump money into the economy.
But the U.S. still allowed foreign governments to trade dollars for gold, until President Nixon abolished the policy in 1971 as a way to keep gold reserves from depletion.
Why do Shelton and others want to return to the gold standard?
Shelton argues it would mark a return to stability and hamper other governments from currency manipulation. In a Wall Street Journal opinion piece, she wrote "the classical gold standard established an international benchmark for currency values, consistent with free-trade principles."
She added, "Today's arrangements permit governments to manipulate their currencies to gain an export advantage."
Others argue that the gold standard would keep U.S. spending under control, because the country would be limited in its ability to issue new money.
Why do mainstream economists believe it's a fringe view?
The U.S. economy has grown in complexity since 1971 and certainly since 1933, making the policy less feasible than in earlier eras. And a return to the gold standard could in effect tie the Fed's hands because the central bank would be focused on gold prices, which are partially based on how much of the commodity is being mined.
"A gold standard regime would be a disaster for any large advanced economy," said University of Chicago economist Anil Kashyap. Supporting the gold standard "implies macroeconomic illiteracy."
The price of gold, by the way, is up more than 11% this year, passing $1,400 an ounce this week. Bearish investors have been rushing to buy gold the past few months amid concerns that global growth is slowing, especially if U.S.-China trade tensions worsen. Gold jumped further Wednesday as investors saw Mr. Trump's Fed picks as yet another sign the U.S. central bank won't be raising interest rates anytime soon.
References:
https://www.igmchicago.org/panelists/anil-kashyap/
https://www.wsj.com/articles/the-case-for-monetary-regime-change-11555873621
https://www.federalreservehistory.org/essays/roosevelts-gold-program
https://www.wsj.com/articles/christopher-waller-in-his-own-words-11562118905
https://www.cnbc.com/2019/07/03/trumps-federal-reserve-pick-judy-sheltons-economic-policies.html
https://www.cbsnews.com/news/fed-rate-cut-chairman-jerome-powell-tells-congress-he-would-not-leave-if-trump-fired-him/
https://www.cbsnews.com/news/fed-chair-jay-powell-calls-gold-standard-a-bad-idea/
What exactly is the gold standard?
It's a policy that links the value of a country's currency to gold. The U.S. adopted it in 1879, and it allowed consumers, banks and businesses to exchange a dollar for actual gold. That may sound like a solid deal, given that actual gold would back up your bucks. But there's a downside: A country can only issue as much money as it has backed by gold.
The upshot is that countries on the gold standard have less flexibility to respond to financial crises or economic downturns. Currently, the U.S. dollar isn't tied to any specific asset.
When did the U.S. abandon the gold standard?
The long goodbye to the gold standard began with the Great Depression, when panicked consumers sought to trade dollars for gold. To keep the country's gold reserves from becoming depleted, the U.S. had to offer high interest rates as an alternative, which, in turn, made it more expensive to lend money and hampered the country's ability to rebound from the Depression.
In response, President Franklin Roosevelt suspended the gold standard in 1933, a move which is widely credited with helping the country climb out of the Depression. That's because the decision allowed the government to lower interest rates and pump money into the economy.
But the U.S. still allowed foreign governments to trade dollars for gold, until President Nixon abolished the policy in 1971 as a way to keep gold reserves from depletion.
Why do Shelton and others want to return to the gold standard?
Shelton argues it would mark a return to stability and hamper other governments from currency manipulation. In a Wall Street Journal opinion piece, she wrote "the classical gold standard established an international benchmark for currency values, consistent with free-trade principles."
She added, "Today's arrangements permit governments to manipulate their currencies to gain an export advantage."
Others argue that the gold standard would keep U.S. spending under control, because the country would be limited in its ability to issue new money.
Why do mainstream economists believe it's a fringe view?
The U.S. economy has grown in complexity since 1971 and certainly since 1933, making the policy less feasible than in earlier eras. And a return to the gold standard could in effect tie the Fed's hands because the central bank would be focused on gold prices, which are partially based on how much of the commodity is being mined.
"A gold standard regime would be a disaster for any large advanced economy," said University of Chicago economist Anil Kashyap. Supporting the gold standard "implies macroeconomic illiteracy."
The price of gold, by the way, is up more than 11% this year, passing $1,400 an ounce this week. Bearish investors have been rushing to buy gold the past few months amid concerns that global growth is slowing, especially if U.S.-China trade tensions worsen. Gold jumped further Wednesday as investors saw Mr. Trump's Fed picks as yet another sign the U.S. central bank won't be raising interest rates anytime soon.
References:
https://www.igmchicago.org/panelists/anil-kashyap/
https://www.wsj.com/articles/the-case-for-monetary-regime-change-11555873621
https://www.federalreservehistory.org/essays/roosevelts-gold-program
https://www.wsj.com/articles/christopher-waller-in-his-own-words-11562118905
https://www.cnbc.com/2019/07/03/trumps-federal-reserve-pick-judy-sheltons-economic-policies.html
https://www.cbsnews.com/news/fed-rate-cut-chairman-jerome-powell-tells-congress-he-would-not-leave-if-trump-fired-him/
https://www.cbsnews.com/news/fed-chair-jay-powell-calls-gold-standard-a-bad-idea/
IGM Forum
Anil Kashyap - IGM Forum
Stevens Distinguished Professor of Economics and Finance External Member, Financial Policy Committee, Bank of England (2016-present) Panel of Economic Advisers of the Congressional Budget Office (2009–2016) Board of Editors, American Economic Journal: Macroeconomics…
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This is what press my tears of Honour, Righteousness, Love, Responsibility, A role model of it's finest aspiring virtue.
Tears of joy and happiness within my heart.
#BeBest
Tears of joy and happiness within my heart.
#BeBest
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People will still attack you if you claim there were no planes hitting the towers.
Yet they fail to understand basic principles of physics.
Like a knife slicing through the tuffest steel frame architecture design without changing the angle, or any debris ripping of due to the impact and the difference between the materials used in the plane, and the materials used in the skyscraper.
Yet they fail to understand basic principles of physics.
Like a knife slicing through the tuffest steel frame architecture design without changing the angle, or any debris ripping of due to the impact and the difference between the materials used in the plane, and the materials used in the skyscraper.
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No Plane!
9/11
Order Of Alpha
9/11
Order Of Alpha
Media is too big
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The solid link between Gays and Pedophilia.
Thanks to Brutus of Goy.
Thanks to Brutus of Goy.
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Forwarded from MAKE AMERICA GREAT AGAIN!
🇺🇸THIS IS WHY I LOVE PRESIDENT TRUMP🇺🇸
Fowarded from General Michael Flynn:
Before he was president, Donald Trump bought an estate in West Palm Beach, Florida. He put up a 80 foot flag pole and flew a 375 sq ft US flag on it. The City Council told him that he could only have a 30 foot pole but he refused to take it down. They told him they would fine him $1250 a day until he took it down. He said fine, that's a chump change. When the fine reached $120,000 he went to the the city council and made a deal. He would lower the flag to a 50 foot pole if he could donate the $120,000 to the Veterans Affairs, to which they agreed. He took 80 foot pole down and a landscape company came in and build a 30 foot hill where the pole was and put up a 50 foot pole.
JOIN NOW to put 👀 ALL EYES ON ARIZONA! 👀
🇺🇸 US Audit Watch Channel: @AuditWatch
🇺🇸 US Audit Watch Chat: @AuditWatchChat
#AuditWatch
Fowarded from General Michael Flynn:
Before he was president, Donald Trump bought an estate in West Palm Beach, Florida. He put up a 80 foot flag pole and flew a 375 sq ft US flag on it. The City Council told him that he could only have a 30 foot pole but he refused to take it down. They told him they would fine him $1250 a day until he took it down. He said fine, that's a chump change. When the fine reached $120,000 he went to the the city council and made a deal. He would lower the flag to a 50 foot pole if he could donate the $120,000 to the Veterans Affairs, to which they agreed. He took 80 foot pole down and a landscape company came in and build a 30 foot hill where the pole was and put up a 50 foot pole.
JOIN NOW to put 👀 ALL EYES ON ARIZONA! 👀
🇺🇸 US Audit Watch Channel: @AuditWatch
🇺🇸 US Audit Watch Chat: @AuditWatchChat
#AuditWatch
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No Planes!
9/11
Order Of Alpha
Truth is Truth!
9/11
Order Of Alpha
Truth is Truth!
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