A Gold Standard in Five Years?

Most economists believe that there's little chance that the U.S. will ever go back on the gold standard. Doing so would be difficult logistically, and U.S. central bankers are not likely to advocate for less flexible monetary policy. But those who fear the dollar's decline staunchly argue in favor of brining back a gold standard. And one supporter, Steve Forbes, doesn't see it as a pipe dream at all. In fact, he thinks we'll see the gold standard restored very, very soon. Paul Dykewicz reports for Human Events:

A return to the gold standard by the United States within the next five years now seems likely, because that move would help the nation solve a variety of economic, fiscal, and monetary ills, Steve Forbes predicted during an exclusive interview this week with HUMAN EVENTS.

"What seems astonishing today could become conventional wisdom in a short period of time," Forbes said.

It's hard to imagine how Forbes could consider this assertion to be reasonable. The only presidential candidate that advocates for a gold standard is Rep. Ron Paul (R-TX). No other big names out there that have a shot at nabbing the nomination have expressed interest in bringing it back. So he must assume, not only that Ron Paul will win the nomination and presidency in 2012 (1.3% chance at Intrade), but also Congress will have a sweeping change where even many Republicans who do not support a gold standard will be unseated by others, possibly Tea Party candidates, that do. Forbes must have a much clearer crystal ball than the rest of us if he sees a gold standard in the next five years.

Read the full story at Human Events.