Former House Speaker Newt Gingrich and a number of other Republicans have taken up the cause of crushing the gold market. Posted by James Randolph on June 22, 2011
Republicans set out to crush the gold market.
June 22, 2011 – Former House Speaker Newt Gingrich and a number of other Republicans have taken up the cause of crushing the gold market. Well, actually they are attacking the root cause of the withering greenback that is driving up the cost of buying gold – the Federal Reserve. The movement is long overdue.
The Wall Street Journal’s Jon Hilsenrath says that the text of Gingrich’s speech today “criticizes the U.S. central bank for not staying focused on the strength of the dollar,” and he will call for a “dramatically limited Federal Reserve.”
“GOP presidential candidates are blaming the Fed’s easy-money policies for creating an array of ills, including a weaker dollar and more inflation,” Hilsenrath says. Former Minnesota governor Tim Pawlenty wants Bernanke out of there, demanding “No more quantitative easing. No more monetizing debt. No more printing money with reckless abandon.”
Representative Ron Paul has submitted a proposal that would require outside audits of the Fed, something to which Mr. Bernanke, of course, is firmly opposed. Rep. Paul takes the issue one step further in his campaign: abolish the central bank altogether.
Washington-based policy analyst Andrew LaPerriere says “a lot of Republicans and economists believe that the Fed’s loose monetary policy from 2002 to 2004 was a major contributing factor to the housing bubble and bust, and there is this sense that they’re doing it again.”
The Republicans are also gravely concerned about the devaluation of the dollar, which, “when measured against a broad basket of currencies among U.S. trading partners … is down 26% since 2002,” says Hilsenrath.
We may not need to get rid of the Fed altogether, but Bernanke has to cede his chair to the likes of Paul Volcker, who had the wisdom and intestinal fortitude to “jack interest rates up to the mid-teens and [tighten] the money supply to stop inflation dead in its tracks.”
Tackling the Fed is just the sort of thinking we need to fix the underlying problems plaguing our economy. It’s hardly all we need, but it’s a start. And maybe someday we can stop turning to the gold market for poverty prevention and get back to growing the economy.
Senior Staff Writer – Certified Gold Exchange