Worth a post but this one is an item of information for gold bugs (hat tip J. McCord)
The platform the party adopted yesterday at its national convention in Tampa, Florida, calls for a commission to investigate a possible “metallic basis for U.S. currency.”
The move is driven by supporters of Representative Ron Paul of Texas, the libertarian presidential candidate who has long criticized the Fed’s control of the money supply and wants to revive the gold-dollar link to preserve the currency’s value.
I’m not particularly worried,” said economist John Makin of the American Enterprise Institute in Washington. “It’s not as if we’re about to rocket higher
Such vigilance on inflation could affect the Fed if Romney wins in November. The former private equity executive has vowed to replace Bernanke, whose term expires in 2014. He’d likely fill any unexpected vacancies on the Fed board with inflation hardliners, who might favor raising interest rates before the end of 2014, as Fed policy makers currently plan, says Mark Thoma, an economics professor at the University of Oregon.
“If Romney is elected, he will put people on the board of governors who are very credibly hawkish,” Thoma said.
Romney’s running mate, Representative Paul Ryan, the House Budget Committee chairman, called in March 2009 for the Fed to base the dollar’s value on market measures “such as a basket of commodities.” Ryan also has assailed the Fed’s asset purchases.
“There is nothing more insidious that a government can do to its countrymen than to debase its currency,” he said in December 2010.
Critics such as Meltzer worry that the Fed will wait too long to begin withdrawing its extraordinary financial support.“We have a long history of producing money too fast, faster than the growth of the economy, and it always ends up in inflation.”