Steve Forbes — renowned businessman, editor, publisher and head of wealth magazine Forbes – knows a thing or two about money, and he said at a recent speaking event that he has a cure for the economy: a gold standard.
According to Times Record, Forbes, speaking at a noon luncheon for the 124th annual meeting of the Fort Smith Regional Chamber of Commerce in Arkansas on Wednesday, said that the Federal Reserve’s stranglehold on the Nation’s economic policy is impeding growth. The Forbes Media chairman said the Fed maintains its power only because lawmakers in Washington do not comprehend how it works and are intimidated by the central bank.
Forbes told the group that the Nation must come to the realization that money is produced by the people, not allotted by the government, and that government spending essentially takes money away from a nation’s people. He told the Record reporter that the Wall Street bailout in 2008 was necessary because the economy was by then in a state “equivalent to cardiac arrest.”
In such a situation, he said, “the first thing to do is keep the patient going,” focusing on lifestyle changes after the crisis is passed. “So far we’ve not made those changes.”
If policymakers had revised economic thinking, the money guru said that the economic crises could have resolved itself in six weeks. Instead, he said, policy makers used the opportunity to launch a “power play” in the form of stimulus that ultimately vastly extended the power of the Federal government.
Forbes had some good news for gold advocates. He said that economic policy makers will inevitably come to the realization that money must have a “steady value” or it will collapse. According to the article, his assertion leads him to believe that the Nation will be forced to “re-link” the dollar to gold within the next five years if the economy is to survive.