Getting the US on sound money - a question

[DGambler]

My father and I were talking about the gold standard over the weekend and came up with an idea, I'm sure this has been discussed before, but wanted to understand if the following would even be feasible. It goes along with Executive Orders "stroke of the pen, land of the law" type of scenario.

Could the President not ratchet up borrowing from the Fed, spend all the "new" money on purchasing gold and then cancel all debt with the Fed via an Executive Order while transitioning us back to a gold-backed currency?

Obviously, it would take someone with some cajones and s/he might not live long, but what would the impact of this scenario be?

[fj45lvr]

kinda sounds like what the FED does to us.

[Zippyjuan]

Trying to change to a gold standards is not somethign you can do via an executive order.

If you were to "cancel" your debt to the Federal Reserve you would still have $13 trilliion in Treasury notes held by other entities including foreign governments, invest and retirement funds, and other investors. The only way you can "not ratchet up" borrowing is to have a balanced budget- and Congress writes the budgets. The Treasury then sells bonds (Treasury notes and bills) to finance the debt.

[Travlyr]

Dr. Vieira show us the how and why of honest money trading in his paper, A Cross of Gold (www.gata.org/files/Vieira-ACrossOfGold-10-21-2010.pdf) by Edwin Vieira

http://dailypaul.com/node/147955