Ron Paul must be thrilled: After over three decades years in the wilderness, the gold standard has returned to the Republican party platform. As Bloomberg reported on Friday, the draft GOP platform—the party's roadmap for where it wants to lead the country—includes a call for a presidential commission to study pegging the value of the dollar to the price of gold. And even though the primary is long over, Paul is not the only top Republican still pushing for gold to have a big role in Mitt Romney's presidency.
During the primary, Paul, a long proponent of what he calls "sound money," and later Newt Gingrich, the former speaker of the House, embraced the idea of a gold commission. During the South Carolina primary, Gingrich said that he'd appoint Lewis Lehrman, a banker, and Jim Grant, a prominent investment adviser, to co-chair the gold commission. Both Lehrman and Grant (Paul's pick to replace Ben Bernanke as chairman of the Federal Reserve) are prominent advocates of the gold standard.
Now that the commission he and Paul supported is part of the draft party platform, I asked Gingrich whether he still supported Lehrman and Grant's appointments—and whether he'd push Mitt Romney to appoint them if elected president. "Yes," he said. "I'd recommend them." Romney himself has expressed skepticism about the gold standard, which he told CNBC's Larry Kudlow in January is not a "magic bullet substitute for economic restraint." He'd be free to ignore the GOP platform and Gingrich's recommendations if elected president. But the inclusion of the commission proposal in the platform, and Gingrich's willingness to press the issue, suggest that Romney will remain under some pressure from his right to at least acknowledge the concerns of gold proponents.
George Gilder, whose new book publishes today, is one of the original pillars of Supply Side economics. As stated by Discovery Institute, which he co-founded, “Mr. Gilder pioneered the formulation of supply-side economics when he served as Chairman of the Lehrman Institute’s Economic Roundtable, as Program Director for the Manhattan Institute….”
He was the living writer most quoted by President Reagan. And he is back with his most brilliant work yet — one of potentially explosive importance if taken to heart by our political and policy thought leaders. It is a radical guide, with surprising insights on almost every page, to the creation of a new era of vibrant prosperity.
As reviewer Paul Brodsky, a professional investor in New York City, perceptively notes,
"Lewis Lehrman is one of a very small group of contemporary gold advocates able to successfully bridge the gap separating practical conservative intellectualism from fleeting, half-baked idealism. His CV lists great success across many fields including education (degrees and teaching fellowships from Yale and Harvard); industry (past president of Rite Aid); politics (narrow loser to Mario Cuomo in the 1982 New York governor’s race); finance, (past Morgan Stanley managing director); private sector entrepreneur (founder, L. E. Lehrman & Company); public sector advocate (founder, Lehrman Institute); historian (author, Lincoln at Peoria: The Turning Point); and recognized philanthropist (awarded the National Humanities Medal by George W. Bush in an Oval Office ceremony). ... Only someone erudite and elegant in demeanor could hope to pull it off . In an irreconcilably over-leveraged world where irritated bond vigilantes question economic sustainability and angry Tea Partiers protest the immorality of it all, Lehrman’s views are considered and his convictions carry weight. He brings gravitas to his cause, and he does so from within as a member of the club."
Before the Fed: JP Morgan Summons the Bank Presidents
"Finally, on the night of Sunday, November 2, Morgan summoned the presidents of the major New York banks to his new library, at the corner of Madison Avenue and Thirty-sixth Street, an Italian Renaissance-style palace he had built next door to his house to showcase his collection of rare books, manuscripts, and other artwork. Its marble floors, frescoed ceilings, walls lined with tapestries and triple-tiered bookcases of Circasian walnut, crammed full of rare Bibles and illuminated medieval manuscripts, made it an incongruous setting for a meeting of the banking establishment. Once the moneymen had gathered, Morgan had the great ornamental bronze doors to the library locked and refused to let anyone leave until all had collectively agreed to commit a further $25 million to the rescue fund."
— Liaquat Ahamed, Lords of Finance (Penguin Books, 2009, p. 54)
Lately we have been engulfed by headlines reporting financial turmoil on every continent, in almost every nation, large and small. The commissars of central planning who so marred the history of the 20th century have been replaced by central banks in the 21st. In Cyprus, the new leadership now dares to confiscate citizens’ wealth with a one-time tax of up to 60 percent on bank deposits above 100,000 euros. Self-interested prime ministers blame continental monetary policies for instigating the currency wars that they themselves surreptitiously carry on.
The value of the yuan has been slowly rising. The value of the Japanese yen has been sharply falling. Abenomics is attempting to reflate the Japanese economic – slowly, slowly. “Japan is back!” Prime Minister Shinzo Abe tells the Japanese.
Coming back isn’t easy. The Financial Times’ Jonathan Soble has noted...
A recent front page Wall Street Journal article was headlined: “Miscast BRICs Lose Way.” Francesco Guerrera wrote that ‘the concept has come under unusually heavy attack, partly because of poor investment performance.” The basic BRIC was first laid by Wall Street strategist Jim O’Neill, who still defends the BRICS as...