Ethan A. Huff
October 10, 2011
The return of real money has made a triumphant re-entry into the US economy with the recent acceptance by The Trump Organization of gold bullion as payment for a commercial lease property. APMEX, one of the largest dealers of precious metals in the US, paid Donald Trump’s company three, one kilo bars (roughly 96.45 troy ounces) of .9999 pure Gold as a security deposit for its newly-leased space on the 50th floor of 40 Wall Street, also known as the Trump Building.
Representing the first time in history that Mr. Trump’s organization has ever accepted gold bullion as a money payment, the transaction is truly groundbreaking. Not only does the property APMEX is leasing take up the entire 50th floor in Mr. Trump’s “crown jewel” of lower Manhattan, but the sheer scope of its lease agreement proves once again that using Gold as money is a solid and viable way to do business.
“The legacy of Gold as a precious commodity has transcended to become a viable currency and an accepted universal monetary standard,” stated Mr. Trump at a recent press conference for the event. “Central Banks around the world are holding Gold as a reserve asset. It is also a terrific, potentially lucrative diversifier in a portfolio, especially with such volatility in the stock market.”
Until as late as 1971, when then-President Richard M. Nixon officially eliminated what remained of the US Gold Standard, the US dollar had been back by the precious metal, which gave it stability and real value. During the time in which the Gold Standard was in place, the US economy mostly thrived, and experienced a high level of economic growth and the free trade of goods, labor, and capital (http://www.econlib.org/library/Enc/…).
All the ups and downs in the current economy, the inflationary bubbles that eventually “pop,” and the fluctuating perceived value of the US dollar, however, are the direct result of the creation of the private, centralized Federal Reserve bank in 1913. This group eventually uprooted the Gold Standard and replaced it with the inflationary currency system currently in place today, where the US dollar is backed by nothing.
Earlier in the year, Steve Forbes ofFORBESmagazine toldHuman Eventsthat he predicts a return to the Gold Standard in the US within the next five years. And he supports it, as he believes doing so will help stabilize the economy, restore confidence and value in the US dollar, and essentially reign in the centralized powers from being able to manipulate US currency at will (http://www.humanevents.com/article….).
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This article was posted: Monday, October 10, 2011 at 2:50 am