Sound money principles can serve to help grow the economy and restrain government. The political class, however, doesn’t particularly want to restrain itself. Washington, D.C. is addicted to the easy money policies that have enabled $20 trillion in national debt accumulation and tens of trillions more in unfunded liabilities.
Even with a new and unconventional GOP president who vows to take on waste and overregulation, the built-in momentum of “mandatory” spending means the Trump budgets won’t be balanced. The debt will keep growing – and likely at a faster pace than the economy. Thus, political demand for the Federal Reserve’s artificially low interest rates and Treasury bond purchases will continue to be strong.
Short of a currency crisis that forces a monetary revolution, sound money reform efforts will have to proceed in baby steps. Any fundamental proposed changes – such as tying the currency supply to gold and silver reserves…
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