Forbes has the right idea in terms of the need for gold as a yardstick, but leaving the management of that in the hands of the Fed means some omniscient central planner will be artificially determining the market value of a commodity.
The failure of the gold standard was not lack of a proper yardstick. It was the failure of the government to adhere to the Constitution and use only gold and silver as redeemable currencies and legal tender.
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I wonder if you have any opinion or comments regarding Mr. Forbes commentary here, Keith:
http://www.forbes.com/sites/steveforbes/2013/05/08/heres-what-a-new-gold-standard-could-look-like/
Forbes has the right idea in terms of the need for gold as a yardstick, but leaving the management of that in the hands of the Fed means some omniscient central planner will be artificially determining the market value of a commodity.
The failure of the gold standard was not lack of a proper yardstick. It was the failure of the government to adhere to the Constitution and use only gold and silver as redeemable currencies and legal tender.