Is it possible to return to the gold standards? That's huge question. The policy maker and decision makers are questioning whether America needs a debit card, not a credit card, and no debit card would better serve the U.S. economy more than a return to the gold standard. The gold standard would force the government to live within its means and get the economy back on its feet again. It would make them financially and economically prudent going forward. No other reform would accomplish so much to hasten the return both of growth and fiscal balance.
The reserve currency franchise, which the USA uniquely possesses, is a kind of global credit card on which the outstanding balance never seems to come due and payable. This country needs a debit card--and the gold standard is that debit card.
A gold standard pegs the amount of currency in circulation to a fixed amount of gold, and supporters advocates that it would prevent the government's ability to print money and spend excessively. Lets share an important insight. QE3 would be a disaster for the US dollar going forward.
Congress might begin by brushing up on the Constitution and recalling its duty to 'coin money and regulate the value thereof.' Specifically, it should take steps to restore a dollar convertible into gold. Calls for a return to the gold standard — scrapped in the U.S. in the 20th Century — are growing, with Republican presidential hopeful Ron Paul arguing for such a policy shift. Why does paper make sense as money? They literally just put numbers on paper and that represents wealth. But there are many signs on the horizon it will not last, it’s going to change soon. I will leave the readers to decide whats the best option for the US economy to turn around and fix its economic and financial woes.
Disclaimer: This is just a research piece and not an investment advice. All financial transactions carry a RISK.