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Donald Trump Will End The FED And Move US Toward The Gold Standard

Wednesday, March 1, 2017 15:38
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(Before It's News)

We’ve previously warned (see here) about the damaging consequences to the general population of Federal Reserve activity. A few months ago, I deliberated (see here) what now President Donald Trump would do with the Federal Reserve. Although he never openly advocated for the abolishing of the Federal Reserve or backing the US dollar with gold, when asked directly, he gave some interesting answers.

Trump and Gold – BullionStar, November 9, 2016

The first of Trump’s recent references to a gold standard came in a 2015 interview with WMUR-TV, New Hampshire, in a segment called ‘Conversation with the Candidate’, published on March 31, 2015, in which Trump commented on the gold standard in response to an audience question:

Question: “Can you envision a scenario that this country ever goes back to a gold standard?”

Trump: “In some ways, I like the gold standard and there is something very nice about it but you have to go back at the right time… We used to have a very solid country because it was based on a gold standard for it. We do not have that anymore. There is something very nice about the concept of that. It would be very hard to do at this point and one of the problems is we do not have the gold. Other places have the gold.

Following his March 2015 comments, Trump again addressed the gold standard in November 2015 in a short video interview with GQ magazine when he said:

“Bringing back the gold standard would be very hard to do, but boy would it be wonderful. We’d have a standard on which to base our money.”

As an aside, in the WMUR-TV interview in March 2015, Donald Trump also expressed a view on auditing the Federal Reserve, a view that it will be interesting to see if he still holds during his Presidency. In another answer to a question from the audience, Trump agreed that the Fed should be audited:

Question: Let’s go back to our audience now coming from Bob. What is your question? …[Bob]:”My question is about Federal Reserve. What if any changes would you make to Federal Reserve and do you think they should be audited on a regular basis?”

Trump: “Audited, absolutely. I really think you can have it or not have it. A lot of people like it and a lot of conservative people like it. They think there is an adjustment with interest rates and other things. I’m not a fan. I’m not a big fan. Audit, 100%.”

The Trump current economic plan includes massive spending increases and tax cuts backed by low interest rates to create jobs, growth, etc. These policies are not at all compatible with a gold standard.

David Haggith has a great post on the gigantic hurdles Mr. Trump will face implementing his economic plan:

The Road to Recovery: Global Epocalypse Inevitable According to Trump’s Chief and World’s Largest Failing Bank – The Great Recession Blog, November 24, 2016

As one questions how interest rates are even going to stay low with all the of the following:  

  •     massively increased infrastructure spending … without paying for it
  •     increased military spending … without paying for it
  •     repatriation of corporate profits at low-to-no taxes
  •     corporate tax cuts
  •     personal income-tax cuts
  •     capital gains tax cuts

David surmises the following:

So, maybe that is the plan — take out as much debt as you possibly can before you default. Why not? If you’re going to declare bankruptcy anyway, make it worth doing by leaving yourself with assets and everyone else with empty hands. At least, we’ll be in the hands (albeit small hands) of someone who knows what do with exploding debt bombs. If done right, it will rob the banksters back.

Since Mr. Trump ran on his jobs platform with a mandate for change, I have a followup to David’s idea. I believe Mr. Trump will try to push through all of his economic programs on the assumption that the Federal Reserve will keep interest rates low and continue to print massive amounts of dollars as needed (they did it for Obama, right). If the Federal Reserve obliges then great – infrastructure is restored, the military is strengthened, taxes are cut – all with printed dollars at no cost and limited inflation!! Well, unfortunately, there is virtually ZERO chance of this happening. China will no longer be allowed to provide short term support at the expense of losing strategic assets (see here). The massive size of the federal debt (see here) and ongoing deficits will make these policies impossible to implement.

Which brings us to Plan B (which is really the only plan) – Blame the Federal Reserve. Trump can say he tried to get his plan through but didn’t get the support of the Federal Reserve. He can then claim that we need a ‘new system’ in place. That is where some kind of gold standard will come into play.

So, what happens if there is some kind of major financial crisis (i.e. Deutsche Bank, Chinese banks, etc) during his term. Same thing – Blame the Federal Reserve. Do you really think Donald Trump is going to protect the banks that he ran against?? Trump: “Hillary Meets In Secret With International Banks To Plot Destruction Of US Sovereignty” – Infowars, October 14, 2016

The Clinton regime is at the center of this power structure. We have seen this first hand in the Wikileaks document in which Hillary Clinton meets in secret with international banks to plot the destruction of U.S. sovereignty in order to enrich these global financial powers, her special interest friends and her donors.
Take a look at what is going on. They have stripped away these towns bare and rated the wealth for themselves and taken our jobs away, out of our country, never to to return unless I am elected president.

What Mr. Trump will do to the Federal Reserve (assuming he is not assassinated) is the same thing he did to the mainstream media, to the CIA and others. He gives them the rope to hang themselves. He stakes out a position, remains firm and watches his opponent make fools of themselves trying to undermine him.

Some libertarians may not approve of this method and call it intellectually dishonest. I would disagree.
Brandon Smith, who is an excellent writer, has a rather cynical take on the election of Donald Trump: Federal Reserve Initiates End Game As Trump Heads To White House – Alt-Market.com, December 22, 2016

What Brandon is missing is that Donald Trump doesn’t care about what the mainstream media thinks about him. He is just going to do what he feels is right. He has taken much abuse in regards to the fake news story of Russian hacking but hasn’t flinched. So, I don’t see how he would have any problem acting against the Federal Reserve. In addition, Mr. Trump has a few cards he can play, such as a complete audit of the Federal Reserve or an audit of the gold in Fort Knox (hopefully, it is still there). He does not need to be trapped in some imaginary box deemed by his detractors.

With Mr. Trump’s stated affinity toward gold and the following recent moves by the Chinese:

1.    China’s yuan inclusion in the International Monetary Fund’s currency basket
2.    China International Payments System (CIPS) is an alternative payments system to SWIFT
3.    Asian Infrastructure Investment Bank (AIIB) is an international financial institution that will finance infrastructure projects in the Asia region
4.    Bilateral Currency Swap Lines completed between China and over thirty counterparties to enable greater oversees trade of the yuan
5.    Silk Road Gold Fund to facilitate gold purchase for the central banks of member states
6.    Shanghai Gold Exchange launched to set a new benchmark price for gold bullion

The only conclusion is that we are headed to some sort of gold standard. Major complications exist if the gold missing from the vaults in Fort Knox as some kind of lease option that has been rumored about may need to be implemented.

This post originally appeared on News with Chai blog.

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