Whether by design or circumstance, the return to a gold standard for our currency may be in our future. First, we have an unsustainable national debt that can only be resolved through dollar devaluation or bankruptcy. Secondly, the US dollar is already losing its reserve currency status to alternative forms of commodity-based international payments.
One way to stop (or at least slow) the decline of our currency would be to reestablish it on a gold standard. Assuming we have enough gold to cover it, the US could peg the dollar at $4000 per ounce, about twice the current price of gold. This would effectively cut our national debt in half and reestablish the dollar as the world's most secure currency. What are the pros, cons and feasibility of this idea?
One way to stop (or at least slow) the decline of our currency would be to reestablish it on a gold standard. Assuming we have enough gold to cover it, the US could peg the dollar at $4000 per ounce, about twice the current price of gold. This would effectively cut our national debt in half and reestablish the dollar as the world's most secure currency. What are the pros, cons and feasibility of this idea?