America Can Save the Dollar with a Gold Standard

By Ruslan @ Adobe Stock

You know that for the last few years of the Biden administration, Americans have been hammered by the inflation tax. Biden and his friends in Washington, D.C. get to borrow dollars today, inflate the money supply, and pay the debt back with less valuable dollars later. That’s not good for savers and retirees who work their tails off and build wealth only to see the value of that wealth eroded over time.

You know Your Survival Guy thinks America needs a gold standard. The value of the dollar has plummeted since gold convertibility was ended in 1971. Take a look at my chart that shows the plight of the dollar.

That chart generously measures inflation using CPI, which many economists believe undercounts inflation. So the damage could be far worse.

But the idea of returning to the gold standard isn’t a new one. Here in the October 2015 issue of Richard C. Young’s Intelligence Report, Dick Young recounted a story shared by Richard Russell about President Ronald Reagan’s response to Congressman Ron Paul when the latter brought up the plight of the dollar. Dick wrote:

Richard Russell is now 91 years old. In a recent Dow Theory Letters, Russell wrote, “I spend most of my time in bed, which gives me plenty of time to think,” an activity that, over the decades, few in the investment industry have done in greater depth than has RR. Russell has been writing Dow Theory Letters since 1958. For decades, Russell, Ben Graham, J. Anthony Boeckh, and Harry D. Schultz have been primary sources of investing wisdom for me. Russell recently wrote about 12-term Congressman Ron Paul, who tells the story of once riding alongside President Ronald Reagan on his helicopter. When the subject of what was happening to our money came up, here’s what Mr. Reagan said: “Ron, no great nation that abandoned the gold standard has remained a great nation.”

Action Line: Is America still a great nation? Is there time left to save the dollar with a return to a gold standard? Your Survival Guy will be watching. When you want to talk about gold in your investment portfolio, I’m here. In the meantime, watch with me by clicking here to subscribe to my free monthly Survive & Thrive letter.