Right now, what we need is an institutional reform. We were created as a country of laws, not of men, and institutions have to be shaped so that we can make the dollar once again as good as gold.
New York, NY (PRWEB) March 22, 2011
Lewis E. Lehrman has written widely about monetary economics which earned him an appointment by President Ronald Reagan to the Presidential Gold Commission in 1981. He also heads the Gold Standard Now (http://www.TheGoldStandardNow.org), a project of The Lehrman Institute, a public policy foundation that he founded in 1972. When asked earlier today by “Closing Bell” host Maria Bartiromo about why a dollar as good as gold can help with our biggest financial challenges, Lehrman stated, “Right now, what we need is an institutional reform. We were created as a country of laws, not of men, and institutions have to be shaped so that we can make the dollar once again as good as gold.”
Lehrman continued: “The principle is, the dollar is defined as a weight unit of gold and all currencies - whether they be credit balances in the bank, or Federal Reserve notes, or hand-to-hand money, or deposit money - (are) convertible at this fixed value to gold. What this does, is it requires the Federal Reserve then instead of having QE 1, QE 2 and buying 600 billion dollars of treasury bonds in the market within eight months, it requires the Federal Reserve to stabilize the value of the currency because when there is too much money in circulation at home and abroad, people and businesses can trade it in for its gold equivalent. Since the Federal Reserve (would be) pledged by statute to maintain stability of the dollar in terms of gold, it must then slow down the rate of growth of credit--what that does, is mitigate the inflationary booms and deflationary booms.” (View the complete interview).
He discussed many of these same issues earlier during a symposium cosponsored by the Manhattan Institute and Wall Street Journal at the Grant Hyatt Hotel on “Supply-Side Economics: Reagan to Today." Lehrman was a panelist on “Supply-Side Today: Agenda for Growth” along with Lawrence Lindsey, CEO of The Lindsey Group LLC and Lawrence Kudlow, host of “The Kudlow Report” on CNBC. The panel moderator was Ms. Bartiromo.
About The Lehrman Institute
The Lehrman Institute is dedicated to public policy, educational and historical research. It was founded in 1972 by Lewis E. Lehrman. The Lehrman Institute has sponsored a wide range of research and discussion in the fields of economics, historical research, foreign policy, and urban policy. TheGoldStandardNow.org is a news and commentary aggregator focused on domestic and international monetary policy issues.