Peter St Onge, an economist and financial analyst, has explained his proposal to save the U.S. dollar from crumbling under the current central banking system. St Onge proposes returning to the gold standard, backing the total dollar issuance with gold at current prices and mandating the Treasury to repurchase it when it flows out.
Financial Analyst Peter St Onge States Saving the Dollar Is Easy: Return to the Gold Standard
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Economist Peter St Onge Calls to Return to the Gold Standard to Save the Dollar
Economists and financial experts are already assessing how to save the U.S. dollar and its current hegemony from inflation and devaluation. Peter St Onge, economist and financial analyst has recently given his take on the ideal process to achieve this goal, involving the gold standard.
In a recent post, St Onge criticizes the role of central banks in today’s economy, calling them “privately-owned, federally-licensed counterfeiters” that can be used by the government to seize anything in the world via money printing. He blames recessions, inflation, Wall Street bailouts, and a “colossal national debt” on the current fiat system.
For St Onge, saving the dollar as the current base of the international economic system is as easy as implementing a gold exchange standard with certain conditions. He explained:
Simple: back the dollar with gold at today’s price — twenty five hundred per ounce — then mandate that if gold flows out the Treasury has to buy it back in before it does anything else.
In this way, if the government keeps printing money, it would affect the value of gold, bringing prices higher. This discourages any high issuance policies given that this would ultimately backfire when the government eventually sets to buy back the gold that flowed out at higher prices.
“In other words, they lose money on the money printer,” St Onge stressed, forcing the Fed and the Treasury to keep issuance at low volumes.
However, he recognized that none of these measures are being considered and a crisis will be required for this to happen.
Zimbabwe has already acted in this direction, launching a structured gold-backed currency. While it rejected this measure at first, the International Monetary Fund (IMF) called it an “import policy action,” and vowed to evaluate its performance.
What do you think about Peter St Onge’s proposal of returning to the gold standard to save the U.S. dollar? Tell us in the comments section below.
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