Watch and listen to U.S. Money Reserve's Patrick Brunson talk about Representative, Alexander Mooney and his H.R. 54 0 4 bill to put the US dollar back on the gold standard.
U.S. Dollar Back on the Gold Standard?- Video Transcription
Patrick Brunson: 00:01
Good morning. Thank you for tuning in to daily market insights. Over the past couple of weeks there's been a lot of stuff going on in the news that has caused the stock market to go into correction. We're not officially in a bear market as of yet because we haven't seen a 20 percent drop. But we have seen a 10 percent drop putting us into a correction. A lot of people are questioning as to how far this thing is going to go. And if you look at what's happening with China and the potential of a trade war, typically bear markets last anywhere from a year to a year and a half and sometimes they drop as much as 40 and sometimes as much as 60 percent. If that's the case it would bring us back down to the fifteen sixteen thousand point range. But there's still a lot to be said about all of that and a lot of things to happen here in the coming weeks. But there's another interesting thing that's happened in the last couple of weeks and it's the first time that this has ever happened in almost 100 years. And that was that Representative, I believe his name is Alexander Mooney. He's a West Virginia Republican Senator and he introduced a bill, H.R. 54 0 4 into the House on March 22nd. This bill is to actually put the dollar the US dollar back on a gold standard.
Patrick Brunson: 01:23
This is big news. Now personally, you know given the interests of a lot of politicians and what that can mean I don't know that that will actually get all the way through to where it's signed by the president. But what if it does. That's the big question. This is very similar to what happened in 1933 when FDR recalled gold out of circulation. He was able to do that at the time because all that gold still belonged to the United States government. Can't necessarily do that today. They can recall dollars out of circulation because it belongs to the Federal Reserve but not so much gold as Reagan brought gold ownership privately back to the United States citizens back in nineteen eighty five. But why did FDR do that. Well we were in the middle of the Great Depression and he recalled gold out of circulation. We were in a very large amount of debt.
Patrick Brunson: 02:15
And once he got all of that gold out of circulation and melted down and placed on the government's balance sheet, he then repented the price of gold to thirty five dollars an ounce from twenty dollars an ounce. So that meant that all that gold that was sitting on the government's balance sheet increased in price by more than 75 percent. So that got the government out of debt in terms of their balance sheet wiping their debt completely clean. So if you take that same aspect to modern day times, we're sitting on roughly eight hundred trillion dollars or excuse me eight hundred metric tons of gold here in the United States between the New York Federal Reserve and Fort Knox. That's what they report anyways. If they move the dollar back to a gold standard, many experts say gold could go as high as five or even ten thousand dollars an ounce. Well if that made gold go to ten thousand dollars an ounce that means that 800 metric tons of gold is worth more than twenty five trillion dollars. Well we just so happen to be 22 trillion in debt. So I don't know, it's a big big if and it's a big big wonder if this can actually take place. But if you think about it, if this happens this could actually be the legacy that Trump leaves behind by getting the United States completely out of its deficit. Who knows.
Patrick Brunson: 03:49
Keep your fingers crossed. In the meantime, you may want to start stocking up on some gold. So you know I've got myself in a good position in regards to gold. Unfortunately if this does all take place, where we get hit, the sacrifice that we're gonna have to make as a country and as citizens is the value of our purchasing power and our dollars. During the Great Depression, the dollar lost more than 80 percent of its value and partly- part of it was due to the repricing in gold. I don't know how much our cost of living could increase if they do something like this but like I said it's a big if. The prognosis is that there's a 2 percent chance that this will get all the way through to the president and actually be signed and put into law. But it's definitely worth keeping up up to date on to see if it works.
Patrick Brunson: 04:40
As for that, as for today, that's going to be all. We still have a report on the fiscal States of America to let you know what's happening in your state. You can pick this up by calling the number at the bottom of your screen or clicking on the link attached to this particular video. If you have any questions in regards to the topic that we spoke about today. Please comment in the section below and we'll touch on those questions either in the comments section or in or in our next video. As of today, thank you for tuning in to daily market insights.