Why Did Ronald Reagan Kill off The Gold Standard reform?Submitted by LibertyBaby on Thu, 01/31/2008 - 15:39
In the debates last night, Ron Paul mentioned that Ronald Reagan had said that "no great Nation ever went off the gold standard".
But what happened once Ronald Reagan actually became President in 1980?
He did indeed appoint a special "Gold Commission" to study the issue of monetary reform. But his commission was overwhelmingly packed with lifelong opponents of Gold.
Nothing ever came from this commission as they essentially killed the idea of any change in monetary policy.
So the question is why did Ronald Reagan allow this to happen?
Did he really want to carry out monetary reform or did he just want to swat away any movement to actually do something?
There were two fundamental reforms the Reagan Administration could have proposed to end our Age of Inflation. First, either the abolition, or the brutal checking of the Fed. But Nothing was done with Fed policy. Second, the Administration could have followed Reagan’s campaign pledge and reinstituted the gold standard. But the Friedmanite monetarists appointed by Reagan hate gold with a purple passion and wish all power to government fiat money.
The Reagan Administration briefly flirted with the supply-side notion of instituting some form of phony gold standard, where the dollar would not really be convertible into gold but would cloak its decaying corpus in gold’s well-earned prestige. For a while, it looked as if a phony gold standard would be the Reaganite diversion from the realities of grinding recession, zero economic growth, high interest rates, almost double-digit inflation, and huge $100 billion deficits. But this was not to be, and Reagan has clearly given the green light to the packed Friedmanite majority and staff on the U.S. Gold Commission to reject the gold standard out of hand and to continue the same old monetary status quo.
Had Ronald Reagan been sincere about monetary reform, he would have appointed monetary experts like Ron Paul on the commission.
Ronald Regan betrayed his own words as well as his supporters like Ron Paul.
Does anyone know the answer?