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Forbes Editor-in-Chief Steve Forbes joins the Judge to explain why he says that the U.S. dollar will return to a gold standard within the next five ye...
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-- today does mark the fortieth anniversary of the day the President Nixon ended the US dollars gold standard.
Since then the dollar's value has steadily declined making gold backed -- -- a hot topic.
In the GOP primary thanks in large part to congressman Paul -- you just heard.
Made the decision enter public office forty years ago almost -- a direct response to president Nixon's decision.
So which presidential hopeful can return the United States to sound money and it would reverse president Nixon's fateful decision.
Here to answer that question is one of the true experts our economic issues today.
Editor in chief of Forbes magazine my good friend.
Steve Forbes Steve it's a pleasure well you can judge do you think gonna start -- the end of of this do you think that in your lifetime and mind.
We will see a return to the gold standard in the United States of America the next.
And even though other than not representative Paul the other candidates are on this issue I think the pressure events in the next few months it's -- for some to think about it and come up with ideas it's going to be an issue next year.
One of the things that's always perplexed me about this is.
FDR did this on his own in 1933 basically said turn in all your gold.
For 25 dollars and that's we're gonna sell for 35 dollars and -- somebody reminded him.
Your chance the president you can't write the laws and three weeks later his executive what it was basically -- -- By the congress and it became the law of the land a lot of people determined -- but what Nixon did it.
He did it by an executive order did you ever wonder why any of his successors including perhaps Ronald Reagan didn't simply just.
Undo that executive order and open up the gold window and return us to the gold standard again.
Shows the power of bad ideas a whole generation of -- comments have been taught.
That gold is bad it causes depression brings on locus and anything else that global warming blame that on gold to.
And so -- after Nixon closed the gold window.
There was no reputable very few reputable people would go before present say we gotta go to a gold standard.
So it's very hard if you're isolated all alone to make it happen you need some support around.
This is why it's very important -- come from Paula is doing what other writers are doing.
Setting that intellectual basis to do it and not have you all out there long -- Reagan would have been thirty years ago.
I think that and you tell me if you agree with me that congressman Paul and others loom airmen you know other people that that we know -- have.
Have gotten -- ball rolling to the point where now any this is intellectually respectable -- it's almost inevitable.
See the the lessons of what has happened because they took us off of gold.
Are so crystal clear mean just look at how cheap the dollar is how little it buys.
And how expensive gold asked what it should did this gold was 35 dollars an -- It's now 17160.
Dollars an ounce and and walk in the 1971.
Dollar by about ten cents today of what it could buy in 1971.
So is -- -- proof positive but Richard Nixon was wrong.
Oh absolutely saw terrible decade in the seventies we had some much stable monetary policy knees in the early part of the ninety's.
I'm not as good as it should have been but a better than the seven based.
But then starting in the late ninety's we found a bad -- again.
And especially in the last decade you could never had -- -- housing bubble did not permit the fuel to make it happen.
So -- yet the Fed gets off Scot free.
So yes it's becoming respectable again but the force of events is gonna bring in about more than any the eloquent arguments that you.
If -- -- -- might do if we had a gold standard wouldn't that basically prevent the Fed from printing money and prevented from -- it to the treasury and stop the government from spending money that it doesn't.
Well where does money come from it comes ultimately from people doing transactions one nothing to do with government.
So that's the virtue of the gold standard supplies enough money to meet the organic needs in the marketplace prevents politicians from stealing it without the proper taxation.
That's why they don't like and in Washington.
-- -- Behave responsibly can't have that -- -- never have that it wanted to.
For a let you go wanna get a little conspiratorial because I know you know a lot about gold.
Do you really think that the federal government has hundreds of billions of gold in lower Manhattan and in Fort Knox Kentucky that will let anybody in -- -- it.
Well.
Talking about auditing why not audit the Fed it's one -- most powerful agencies in the world on our intelligence agencies have more congressional oversight and as the Federal Reserve.
But the nice thing about gold -- you can't destroy every ounce is still here on this earth one place or another.
The key thing is -- -- linked the dollar and gold whether it's in Fort Knox or somewhere else right at standard problem modernize gold standard can work.
And having a strong and stable dollar.
-- be like sixty minutes in our state sixty minutes each day should not the worries in the Canadian our.
Bangladesh our New York our its uniform -- it Steve Forbes a pleasure thank you thank you judge could this weekend's.
