Monetary Reserve Quotes

Economists they world over have differed as to how critical it was to have a money supply that is based on a gold standard or other precious metal. United States history has had a dispute over whether the money should be backed by gold or silver. Finally, under the Richard M. Nixon administration, the United States went off the gold standard and American money ever since is only backed by the ‘full faith and credit’ of the United States. Some politicians like Paul believe this is a poor policy since it allows governments to control their own money supply irrespective of their gold or silver holdings. Paul goes further than most and sees freedom itself dependent on a precious metal standard. Most politicians disagree.

The Hoover administration had lost control of the economy. The nation was in a depression. Banks were failing. Gold was being hoarded and taken out of circulation while we were on the gold standard. Roosevelt’s solution was to decouple American money and gold—a solution that William Jennings Bryan had suggested many years earlier. See {640978}.

President Richard Nixon, a conservative Republican did not agree with this view as it was he who led America to abandon the gold standard to back its money.

This quotation was particularly interesting for Americans of the early 21st century by which time, the United States had become the greatest debtor nation in the world.

This is a remarkable quotation in that it proposed exactly what the United States did in the Nixon administration. We went off the gold standard and backed American money with the wealth and “full faith and credit” of the nation and all its assets. It has been the strongest and most sought after currency in the world despite the fact that it is not backed by gold or silver as earlier American currency was.