“If we went back on the gold standard and we adhered to the actual structure of the gold standard as it existed prior to 1913, we’d be fine. Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the United States, and that was a golden period of the gold standard. Between 1870 and 1912, a period of forty-two years, industrial production in the United States rose by 682%.
“The only time the American farmer made money was from the end of the Civil War to WWI.”
The United States actually did not return to a gold standard until 1879. However, by 1870, most of the rubble of the Civil War, including the floating “greenback” dollar, had been cleared up. However, the American farmer no longer had to compete with slavery and started receiving ‘hard currency’ for his production.
Adam Smith, the forefather of all economists including Alan Greenspan, wrote in his 1776 Econ 101 text book, Wealth of Nations, that
“Agriculture, the Produce of the Land, is the SOLE or the PRINCIPAL Source of the Revenue and Wealth of every Country.”
Smith further states the four factors that destroy and degrade “agriculture, the sole source of wealth and revenue of every nation.”
- Soil Husbandry: “the neglect of cultivation and improvement”
- Subsidies & Tariffs: “the fall in the real price of any part of the rude produce of land”
- Farmer Inputs: “the rise in the real price of manufactures”
- Devalued Dollar: “the declension of the real wealth of the society”
All four tend to “lower the real rent of land, to reduce the real wealth of the landlord, to diminish his power of purchasing either the labor, or the produce of the labor of other people.”
The defrocked Central Banker, Alan Greenspan, whose easy-money policies of the Fed during his 1987-2006 tenure that have been suggested by some to be a leading cause of the subprime mortgage crisis, wants us to go back to the gold standard NOW!