Not many people know this, but President Trump is a major proponent of the gold standard.

Here’s an exact quotation from him: “Bringing back the gold standard would be very hard to do, but, boy, it would it be wonderful.” After saying this in 2016 on the campaign trail, he added, “We’d have a standard on which to base our money.”

This is like music to my ears.

A gold standard would be next to IMPOSSIBLE to implement without a major crisis, preceding it, thus opening up the minds of the masses to its advantages.

Of course, what we need is a 21^st century gold standard, which would peg the dollar to gold at a current rate of between $3,900 to $18,400 per ounce, depending on how much of the currency supply it would cover; 20% – 100%.

Pegging it would be only one part of the solution, though. A gold standard stops the government and central bank from doing whatever is on their minds, but it does not halt their shenanigans completely. One of the issues that forced the hand of the U.S. government to surrender its convertibility into gold at $35/ounce in 1971 was government OVERSPENDING in the 1950s and 1960s, so the rest of the world did not trust that dollars were “as good as gold.”

If – and it’s a BIG IF – Washington gets the public behind the notion of a gold standard, it won’t be with the dollar simultaneously acting as the global reserve currency.

In other words, in the new revival of gold-backed currency, each country would have its own standard, independent from other countries. A global clearing house, such as the Bank for International Settlements, would be the mediator between all national currencies.

Trump is definitely not just all talk when it comes to gold – he is taking action. I remember when Trump was upset with the city of New York because the ice rink in Central Park was being delayed. He called the mayor, requested to get a budget to finish it, got approval, and completed it in no time and for a fraction of the budget. Trump EXECUTES. Judy Shelton, an advocate of the gold standard, is his pick to serve as one of the seven governors on the Federal Reserve Board.

She absolutely hates the idea of printing money out of thin air. The problem with stopping the QE programs is that the consensus in Congress, the Senate, and Washington is that these programs worked and expedited the recovery. Without them, top officials believe it would have been much, much worse.

Shelton also despises governments that manipulate their currency. Under a transparent gold standard, no nation would be able to hide what’s happening under the hood.

I love the idea of gold disclosure. When I invest in a company, I want to know its assets, liabilities, and any other useful data point. It should not be otherwise with governments and the currencies they issue. 

Alan Greenspan, who was the longest-standing FED chairman in its history and a huge believer in the importance of the gold standard, said that going off the gold pegging is “one of the historic disasters in American history.”

What the government and the central bank have essentially told the public is that they would rather bail out major institutions than allow panic to rage. When a child wants ice cream and begins crying and making a scene – because his parents tell him to first eat his broccoli and then “we’ll see about sweets,” – I see many moms and dads surrendering to the whining of their toddler, instead of letting him go nuts and create a publicly embarrassingly scenario.

In a nutshell, this is what the world’s top officials chose to do in 2008. The FED and Washington stopped the crumbling of the system, but not without sacrificing many sacred values, like equality and capitalism.

If we don’t want to leave this choice to people who can be corrupted and manipulated, we need a gold standard, plain and simple.

Once the next recession hits, we will see how the public reacts to the slowdown. People’s tolerance to rough times is extremely short, with 80% living paycheck-to-paycheck.

Therefore, if the door is even remotely open to backing the currency by a hard asset, Trump will go in for the kill. Time will tell; all we can do is make sure that others know what we feel about the need to end this paper madness, for good.