Gold Standard Restoration Act

Rep. Alex Mooney (R-WV) introduced HR9157. Titled the Gold Standard Restoration Act, the legislation would peg the dollar to a fixed weight of gold. In this video we take a look at existing reported gold holdings of the US government, along with the M2 money supply to arrive at the price needed to back up the dollar with gold today in 2022.

This law calls for nothing less than the full disclosure by the US treasury and the Federal Reserve of all gold holdings, followed by the subsequent peg of the dollar to gold at a fixed price.

Gold Standard Restoration Act

Gold Gold Bars - Standard Restoration Act,

Under the proposed law, the US Treasury and the Federal Reserve would have 30 months to publicly disclose all gold holdings and gold transactions over the last 60 years. At that point, the dollar would be pegged to a fixed weight of gold at the then-market price. Federal Reserve notes would become fully redeemable for gold at the new fixed price. The Treasury and its gold reserves would backstop the Federal Reserve Banks as guarantors.

One of the features of a gold standard is that it keeps governments honest. It imposes monetary discipline. Many of America’s most influential founders opposed fiat paper money. Thomas Paine wrote, “the “evils of paper money have no end.” Thomas Jefferson described paper money “as the ghost of money.”

The problem with paper money is governments can simply print more of it.

The purpose of the Gold Standard Restoration Act, is fight the forces of inflation, but it doesn’t seem very likely to me that this law is going to go anywhere soon.

Still, it is interesting to speculate as to what price gold would be pegged to the dollar at, and because of the massive amount of fiat currency that has been created since the end of Breton Woods in 1971, that peg price would likely need to be very high.