This is NOT how Paul or any realistic Austrian would want to do a gold-standard with stupid FIXED-EXCHANGE-RATES, NOOOOOOOOOOO! Been there, done that! IT SUCKS! The govt sets $X = GX, then they & banks "create" more money & devalue then they re-fix $Y = GX & so on. NO!
What Paul has proposed like many Austrians & what he'd probably do is ask US Mint to start minting gold & silver coins DENOMINATED IN GRAMS & OUNCES (NOT in "dollars", a term which lost all meaning ages ago), he'd probably allow private mints to mint & put their own coins in circulation as well & we'll probably have private banks who might start deposits/loans in gold/silver & so on & obviously as he's proclaimed many a times, he'll repeal tender laws & repeal all taxes on gold & silver so that people could freely use it as money
Again, we're NOT going to go back to OLD "gold-standard", which was merely a PRICE-FIXING SCHEME anyway, where govt would move the proverbial "goal-post" the way wanted & manipulated it.......so there's no question of Chinese or anything, US is obligated to pay them in "dollars" & as there'd be no fixed-exchange-rates, there's no question of "draining our gold" or whatever
Again, he does NOT want a "gold-backed-dollar", he just says that because it's easier for people to understand that but as you can see in the following video - 2:00 onwards - he says he does NOT want to "go back" to gold-standard but to "go forward" to a better gold-standard.
www.youtube.com/watch?v=M0vU6dF2uvc#t=2m0
Connect With Us