US to introduce new dollar gold standard? Bill HR5404
HR5404 bill introduced to congress
HR 5404 A bill to define the dollar as a fixed weight of gold was introduced to the Committee on Financial Services on 22nd March 2018 by congressman Alex Mooney.
Mooney is a republican and seemingly a Trump supporter. You can find out more about him here:
https://mooney.house.gov/
More info on the bill
Here are some noteable quotes from the bill:
- “Under the Federal Reserve's 2 percent inflation objective, the dollar loses half of its purchasing power every generation, or 35 years.”
- “American families need long-term price stability to meet their household spending needs, save money, and plan for retirement.”
- “The gold standard puts control of the money supply with the market instead of the Federal Reserve.”
- “Under the gold standard through 1913 the United States economy grew at an annual average of four percent.”
- “Effective 30 months after the date of enactment of this Act – (1) the secretary of the Treasury shall define the dollar in terms of a fixed weight of gold, based on that day's closing market price of gold; and (2) Federal Reserve Banks shall make the Federal Reserve notes exchangeable with gold at the statutory gold definition for the dollar.”
HR5404 can be read here:
https://www.congress.gov/115/bills/hr5404/BILLS-115hr5404ih.pdf
Thoughts
Currently the bill is in summary progress so it has a number of hoops to jump through before it would be signed into law. It would need to pass the house, pass the senate and be agreed by the president before becoming law. However, I think it demonstrates that there are some congressmen in power who still respect the value of honest money and understand the damage that inflation has done to the middle class.
Supposing HR5404 gets signed into law in 6 months, that would mean that the US would need to transfer to a gold standard by Spring 2021. The mere passing of this bill would send gold rocketing over the next few years and, assuming the US gold stocks are intact, it would neutralise the national debt. While there is no mention of the national debt in the bill, this is clearly a major benefit of a gold standard to the US administration. However, as the gold price rises against federal reserve notes, so does everything else, which means the public worldwide would suffer crippling inflation if they hold FRN dollars and other fiat currencies.
HR5404 is certainly worth keeping an eye on to see how far it gets.
Sources
Image source: Pixabay
Thank you to evolutionary energy arts on YouTube for bringing this to my attention. You can find his channel here:
https://www.youtube.com/channel/UCd1BwLPKKXBgReBnimOX6JA
I see a whole Laundry List of problems with this Bill, as I am sure you do too. Besides being an unconstitutional approach to Dollar Value, it proposes using a daily fix (very shoddy) as opposed to using a "mandatory peg". But you may as well write the original proposal with a large number of Throw-Away "bargaining chips" because if it ever passes, it will be a totally different animal.
I presume, @unclehermit, you have seen the Jim Rickards info on the "TRUMP EXECUTIVE ORDER" path to a Gold Standard... Even the nuts and bolts of that are totally different. This HR 5404 IS a Trump Bargaining Chip
and will be totally changed or even scrapped. Sacrificial Lamb, in other words.
BRILLIANT!
Interesting. I've not specifically seen the Trump Exec order info from Rickards, but he seems to be very confident that a gold price of around $10K will solve the US debt problems. It might be that HR5404 is just stage 1 of a more robust gold standard.
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I think the likelihood of this passing is as likely as the US actually holding the gold reserves they claim to.
True. It's encouraging that congress isn't completely ignorant though.
Yeah what a total head fake, useless bit of a PR stunt. Trump would be the president to go along with it, but yeah I would be pleasantly shocked if this was even debated. Rand Paul might come in with a catheter and 50 gallon oil drum under the back of his suit to filibuster that debate, lol!
Agreed, see comment below to your other comment.
This is bleepin brilliant, but it makes me worry, sorry I am hardened skeptic of any bill that gets any support in the federal r(ackete)erserve. Does it not worry anyone they are making a token gesture like this, which won't even be debated or introduced after they basically gave themselves another blank check to spend their brains out again until October? I would support it surely but it would never happen, that's why I also think cryptos have elbowed their way in to the conversation as a much more tradable commodity in between fiat and precious minerals (directly). Great post@unclehermit I am glad you brought it to light!
A gold standard with a much increased value of gold (i.e. gold priced at market prices rather than suppressed exchange prices) would significantly reduce the impact of the US national debt as the US assets would increase massively. In theory the US still holds by far the largest amount of gold. So maybe moves are afoot to make the US great again.
Great point, i think the massive buildup of the dollar maybe the only way to pay down the national debt significantly. By paying debt holders off in a settlement form say for example, it could be greatly decreased with a powerhouse currency, which yes a currency backed by gold would be about as strong as it can get. The problem is that right now the US Dollar is backed by the full faith and credit of the most well armed military force on the planet. It's easier for them to keep inflating the currency, with centralized autocrats have no restriction on spending. I totally agree it would be phenomenal policy for the people to pursue that approach, the thing is a process like that is very hard, and would be better done if there was no proclamation of trying to do this, but picking up the dips in the market over a longer period of time until they held a larger portion of the supply, which unfortunately as of right now China holds a great deal of at the moment, so we would be pumping up their interests right now which would be worst case scenario for natl security right now, in my opinion.
Wouldn't it be interesting if China, Russia, Europe and the US were found to hold more or less that same amount of gold. A global gold standard would then become possible without disadvantaging one nation or another.
Yeah that would be funny. I think we (the US) may be caught with our pants down in that regard. Right now we can barely afford the printers that are jacking out all the fiat paper. That would be intriguing, and that is why I think when more people understand cryptocurrency basics, distributions, and the nuances that can be achieved that when the game changes, and I think it will happen very quickly.
Thank you for this post! It gives me tremendous measured hope on this fine Easter day. I'll start paying close attention to this congressman now.
Thanks for your comment. Yes having read about some of his activity he seems to have an awareness that many other lack.
Thanks for the information, but if this was not a red herring wouldn't they just bring back Glass-Steagall and the Bretton Woods system instead of creating a new law. I am highly sceptical but always hopeful.
Indeed, I am also sceptical but it's a positive move. It seems that yesterday a lot more people started talking about it so there is now a bit of a buzz.
Yes it was a good sign.
Has Steemit been down for you most of the day or on certain browsers??
I had stuff to do out of the house so basically tried posting many times and it just refused, some goofy stuff here as usual, but I promised to leave this up and get to it.
I am bookmarking this to pull resources from later, thanks.
I also appreciate you LMK about this post/info and wish Canadastan would smarten up but they won't
Because Government.
Yeah it was down for me too. Thanks for the comment.
Great find!
Thanks. It's certainly interesting isn't it.
does this imply the end of the petrodollar?
a seperation from the house of saud?
a denial of the closing of the window by nixon in 1972?
how can endless qe be operational?
this seems very odd