Forbes Defends Cruz on Gold Against NYT

Sen. Ted Cruz (R-TX) (photo credit: Gage Skidmore)

Steve Forbes explains how The New York Times just doesn’t understand the gold debate and misfires in attacking Ted Cruz:

The New York Times recently ran an article trashing the idea of a return to a gold standard. A growing number of Republicans, including presidential hopeful Senator Ted Cruz, advocate fixing the value of the dollar to gold.

If the purpose of the Times story was to discredit such a possibility before it gained any more momentum, it failed. The piece is actually useful in that it encapsulates some of the egregious myths, misunderstandings and just plain ignorance of what a gold standard is all about.

The purpose of a gold standard is to ensure that a currency has a fixed value, just as measures of time, weight and distance are fixed. We don’t “float” the number of minutes in an hour or inches in a foot. Yet, strangely, economists believe that constantly changing the value of a currency is good for growth.

[…]

Read it, and weep — or better yet, cheer for Cruz, Rand Paul, and others taking up the battle against our unaccountable and misguided Federal Reserve.

Nick Arnold is a researcher for the American Principles Project.

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Forbes to India and Emerging Economies: Stabilize Currency to Reach Full Potential

India rupee notes (photo via Wikimedia Commons, CC BY-SA 3.0)

Earlier this week, Steve Forbes published an article calling for developing economic powers to fix their currencies to the dollar or euro as a means to overcome obstacles to growth.

…all of these nations have overlooked a crucial requirement of economic greatness: a stable currency. Investors and entrepreneurs yearn for sound money, just as marketplaces function best when weights and measures are reliable and fixed.

“Ambitious countries must grasp the fact that economies with sound monetary policies always outperform those with chronically unstable money, ” he says, citing Britain as a pinnacle example of a booming economy historically facilitated by stable, gold-fixed currency.

What can today’s aspiring countries do to strive toward the success enjoyed by Britain and other leading economic powers?

They should start by formally fixing their currencies to either the dollar or the euro.

Turkey, for example, could formally tie its ominously weakening lira to the euro and thereby avoid another debilitating slide into a big inflation.

Sound currency would also strengthen countries suffering from international pressure:

A currency board would work wonders for beleaguered Ukraine. It’s no surprise, given Vladimir Putin’s aggression, that Ukraine’s currency, the hryvnia, has slid sharply, hurting the economy.

India would also set itself on a path to rival existing superpowers, including Britain:

In a few years India would be in a position to take the next step and adopt a gold standard. Within a generation of doing that it would surpass the economy of its former colonial master, Britain, as well as that of China.

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Steve Forbes’ “Blunt Truth” About Money

Steve Forbes (photo credit: Gage Skidmore)

I had the pleasure of attending an event in New York City last week for the unveiling of George Gilder’s new book, The 21st Century Case for Gold: A New Information Theory of Money. The book is cutting edge and definitely worth the read.

One of the speakers at the event was Steve Forbes, the former presidential candidate and current Editor-in-Chief of Forbes Magazine. Steve is one heck of a speaker, and he spoke positively about George Gilder’s new book:

I think the significance of what George has done…He has given [monetary policy] a wider perspective. The blunt truth is: you can get taxes right, you can get regulations right, you can get spending right, but if you don’t get the money right—if you don’t get monetary policy right—you will be in trouble.

Forbes went on to argue that common wisdom was dead wrong on monetary policy:

If prevailing economic theories are wrong, inevitably civilization will have threatening crises as we have today. George understands—and will be able to convince other people to understand—that money is not, in and of itself, wealth. It is not a tool to guide economies like central planners envisioned. Economists have it backwards—the proverbial cart before the horse.

Forbes then suggested that Gilder’s book will have an impact on the currency debate:

This is a turning point. And this is why it’s so exciting to have somebody with George’s brilliance make this journey. Not understanding at the beginning, but understanding that something’s not quite right to say, ‘money controls everything.’ And then to take this journey, and be able to relate it to high technology, to the Bitcoin, to the Millennials. 

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