New York, NY (PRWEB) October 05, 2011
Lewis E. Lehrman, former member of President Ronald Reagan’s 1981 United States Gold Commission responds to the recurrent economic crises of the last century, outlining a 5-step plan for America’s leadership on how the United States can transition from the present unstable paper dollar to a stable dollar as good as gold. This 5-step plan is drawn from his book The True Gold Standard: A Monetary Reform Plan without Official Reserve Currencies.
1. America leads by announcing unilateral resumption of the gold monetary standard at a date certain, not more than four years in the future. Unilateral resumption means that the U.S. dollar will be defined by law as a certain weight unit of gold. The Treasury, the Federal Reserve, and the entire banking system will be obligated to maintain the gold value of the dollar. On the date of congressionally authorized resumption -- that is, unrestricted dollar-gold convertibility* -- Federal Reserve Bank notes and U.S. dollar bank demand deposits will be redeemable in gold on demand at the statutory gold parity. Further use by foreign governments of the dollar as a reserve currency will entail no legal recognition by the United States.
2. The Treasury and authorized private mints will provide for the minting and wide circulation of legal tender gold coin in appropriate denominations, free of any and all taxation.
3. Shortly after the announcement (step 1), the United States calls for an international monetary conference of interested nations to provide for the deliberate termination of the dollar-based official reserve currency system and the consolidation and refunding of foreign official dollar reserves. The international agreement to be negotiated will inaugurate the reformed international monetary system, that is, multilateral currency convertibility to gold, without official reserve currencies.
4. The conference agreement would establish gold as the sole means by which nations would settle residual balance of payments deficits; and designate gold, in place of reserve currencies, as the sole official monetary reserve asset. Official foreign currency reserves, to a specified extent, would be consolidated and refunded. Stable exchange rates would result.
5. A multilateral international gold standard -- the result of the convertibility agreement -- would effectively terminate floating and pegged-undervalued exchange rates. The reformed international monetary system would establish and uphold stable exchange rates and free and fair trade -- based on the mutual convertibility to gold of major currencies.
About Lewis E. Lehrman
For nearly four decades, Lewis E. Lehrman has written books and essays about economic, monetary, and financial policy as well as American history. Lehrman co-authored the book Money and the Coming World Order with renowned MIT economist Charles Kindleberger and others. He has written about economics in publications such as Harper’s, The Washington Post, The New York Times, The Wall Street Journal, The Weekly Standard, Crisis, Policy Review, The American Spectator, and National Review. His writings about monetary economics earned him appointment by President Ronald Reagan to the United States Gold Commission in 1981. Lehrman collaborated on a minority report of the commission which was published as The Case for Gold.
Lehrman has been named to the advisory board of the American Principles Project’s Gold Standard 2012 initiative. He heads The Gold Standard Now—http://www.TheGoldStandardNow.org—a project of The Lehrman Institute. Established in 1972, The Lehrman Institute is a public policy foundation focused on history, economic and foreign policy, education, and local communities. He has been a trustee of the American Enterprise Institute, the Morgan Library, the Manhattan Institute, the Heritage Foundation. He is a former Chairman of the Committee on Humanities of the Yale University Council.
Lehrman received the National Humanities Medal at the White House in 2005 for his teaching and studies of American history – about which he has also written extensively, including Lincoln at Peoria: The Turning Point (Stackpole Books, 2008). In 2010, he was awarded the William E. Simon Prize for Lifetime Achievement in Social Entrepreneurship.
Lehrman earned his B.A. from Yale where he became a Carnegie Teaching Fellow on the Yale faculty and an M.A. from Harvard where he was a Woodrow Wilson Fellow. He has been awarded numerous honorary degrees.