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Darren C. Johnson, Velva, N.D., Published September 09 2012

Letter: Another take on gold standard

I have to agree with Richard Grossman (Forum, Sept. 2) on one point he makes. Spending money on studying the gold standard was wasteful; no politician would go along with the amount of spending on pork projects and programs that would have to be cut. It would be political suicide.

There are a few Republican politicians who understand the great problem we face with out-of-control spending and the great risk of hyperinflation when foreign nations stop buying our debt. The Federal Reserve keeps printing money and calling it quantitative easing and using many other fancy words, but the bottom line: It’s printing dollars so politicians can spend without limits, unlike the average working American who has to balance a checkbook.

Grossman states that the Great Depression was partly caused by the gold standard. I believe the free spending of the 1920s and a drought was to blame. The gold standard forced politicians in the ’30s to have spending limits. The times after the ’30s are some of the greatest growth times of this nation because we had a stable currency backed by gold.

We do have a free market, and the price of gold will set the value of the dollar if the government doesn’t manipulate the market.

Grossman states that inflation is a nonexistent problem. I guess he doesn’t buy groceries or fill his gas tank. Printing money is the main reason for the drastic price increase of commodities.

I read that the North Dakota Legislature hired a consultant to review investing the legacy fund money. My recommendation is that they consider gold as part of that investment as a way to protect this state from the inflation that the federal government is creating. Many top investors, including Jim Cramer of “Mad Money,” recommend a 10 percent investment in gold.