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Should We Go Back to the Gold Standard?

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  • Description

    Guggenheim Partners CIO Scott Minerd on the possibility of returning to the gold standard.

  • Duration 4:49
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And it is the gold standard.

Coming back a new report says Republicans will put together a gold commission as part of their official party policy.

Let me ask Scott -- what he thinks about all -- he's chief investment officer a Guggenheim partners Bursa Scott just.

From a practical perspective there's not enough gold in the world at this point is there to back all of the currency all the money out there.

No and that day in its current price of around 16100 dollars an ounce there isn't.

But you know if we re valued gold to 101000 dollars an ounce than we probably would have enough.

But how you put the genie back in the bottle.

Could the gold standard was so completely abolished by that by the US in 1971.

-- I think -- I think going back to the gold standard isn't very practical.

Yeah I think -- the party the Republican party's willingness to included as part of the platform.

Really it reflects more of a concern about Ron Paul and and the people that live there and not having them break -- and have but I don't see.

To getting back to the gold standard simply predictions of gotten too used to having -- running for us.

What our money that it's -- and on recent years what worries you about the way that their portfolio looks today.

Megan -- we security beef that risk that it's taken the leaving stability I have money.

-- of the assets on the Fed's balance sheet fall that doesn't have enough assets to reduce heat we could lose control of the money supply and the US treasury would be in a position where and we could go down the road to.

Which would be either hyper inflation or.

Dramatically changing our system with capital.

And controls on capital flows will Scott what are the chances of that happening -- -- LA and I think about you worry about a pack up and interest rates it based on -- but because the Federal Reserve is on this -- -- the Fed doesn't sell all that will help keep interest would -- not.

-- will become a problem.

But -- and most of -- -- listeners are well aware.

The amount of money that's been created.

Over the last five years during the course of the crisis has -- and almost tripling in the size of the Fed's balance -- And now you know on the eve both Jackson Hole we're now discussing the possibility of another round of asset purchases.

Which would expand the balance sheet even further.

He once inflation starts to pick -- the Federal Reserve -- to sell assets to -- is to reduce the size of its balance sheet.

And if if the market value of those assets go down far enough there's not going to be enough ask one final thing yields and you said short treasuries that you it's here now at the -- a long protracted and you predict the exact bottom.

But I do believe that if you were -- that you would have a profit of five years and I think that we are at the early phases of the beginning of market next decade right it's been -- -- -- -- -- take.

-- classes at.

It would not even even the it has everything even the exactly and had not good to see you from all and -- my genie bottle for your -- Dodgers and followed Twitter -- He's an incredible you have to -- and --

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