{"id":170990,"date":"2020-05-23T12:55:32","date_gmt":"2020-05-23T16:55:32","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=170990"},"modified":"2020-05-23T12:40:05","modified_gmt":"2020-05-23T16:40:05","slug":"sound-money-defense-league-working-to-bring-back-gold-and-silver-as-americas-constitutional-money","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/05\/sound-money-defense-league-working-to-bring-back-gold-and-silver-as-americas-constitutional-money\/","title":{"rendered":"Sound Money Defense League Working to Bring Back Gold and Silver as America\u2019s Constitutional Money"},"content":{"rendered":"
May 23, 2020<\/div>
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By Money Metals News Service<\/b><\/p>\n

In a Nutshell:<\/strong>\u00a0The Federal Reserve instituted a policy of unlimited quantitative easing in March 2020 in response to the COVID-19 pandemic, in effect injecting trillions of dollars into the economy. But some analysts believe the consequences of that action may not be limited to stimulus checks and paycheck protection. According to Stefan Gleason, Director of the\u00a0Sound Money Defense League<\/a>, the Fed\u2019s pandemic response is only the most recent manifestation of a long-standing inflationary monetary policy enabled by unbacked fiat currency. That\u2019s why Gleason and the Sound Money Defense League advocate for returning to a limited currency backed by gold and silver to preserve the value of money and reward savers.<\/p><\/blockquote>\n

In March 2020, people in the U.S. began to shelter in place in the wake of the COVID-19 pandemic, and economic activity slowed considerably. The Federal Reserve pledged to put as much new money into the economy as necessary by purchasing government debt and asset-backed securities on the open market.<\/p>\n

With that, the Fed effectively created new dollars through the issuance of credit \u2014 a process sometimes known as printing money. The Fed\u2019s post-COVID-19 policy of\u00a0unlimited quantitative easing<\/a>\u00a0has made trillions in new dollars available to policymakers to help protect businesses and consumers.<\/p>\n

\"Sound<\/p>\n

That sounds like a good thing \u2014 until it isn\u2019t, according to Stefan Gleason, Director of the\u00a0Sound Money Defense League<\/a>.<\/p>\n

Gleason\u2019s Sound Money Defense League is the public policy arm of a group of businesses that includes Money Metals Exchange, a national precious metals investment company and news service with more than 500,000 readers and 150,000 customers. It also includes Money Metals Depository and Money Metals Capital Group, a lending agency.<\/p>\n

According to Gleason, the Fed\u2019s recent moves differ from long-standing monetary policy only in scale, not in intent. Since the creation of the fiat currency system in 1913, U.S. dollars have leaked value as the size and scope of government has increased.<\/p>

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What\u2019s needed to halt this chronic inflation, Gleason said, is a return to a monetary system in which circulating currency is limited and backed by gold and silver rather than by government fiat.<\/p>\n

\u201cThe constitution set up a system where gold and silver was the money of our country,\u201d Gleason said. \u201cAnd as we\u2019ve severed ties with gold, it\u2019s enabled huge deficits and massive growth of government. Gold and silver are the antidotes to that.\u201d<\/p>\n

Working to Reform the Legal and Financial Status of Precious Metals<\/h2>\n

Gleason came to his role as an advocate for the gold standard after more than 15 years of involvement in free-market politics.<\/p>\n

\u201cSome of that is pertinent to precious metals,\u201d he said. \u201cSince 1913, the goal of U.S. monetary policy has been to create inflation, which devalues savings through interest rates that are below the rate of inflation and thus basically steal purchasing power.\u201d<\/p>\n

The Sound Money Defense League works on the federal and state level in a variety of ways to promote the investment potential of precious metals and clear a path toward the eventual readoption of the gold standard.<\/p>\n

Before the Great Depression, the Federal Reserve was required to have enough gold to back 40% of U.S. currency. But bank failures during the Great Depression frightened the public into hoarding gold, making the policy untenable. Soon after taking office in 1933, President Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money, abandoning the gold standard and making possession legal again only in 1975.<\/p>\n