WASHINGTON — Michele Bachmann said she’s still considering whether the United States should return to gold-backed currency, ahead of a Tea Party bus tour she’ll be doing in Iowa sponsored by organizers who consider the gold standard their top issue.
Bachmann is one of several candidates participating in the Tea Party bus tour; according to the Des Moines Register the others are Herman Cain, Newt Gingrich, Rick Santorum and Gary Johnson. They’ll be touring one at a time, though the schedule of who’s on where and when has not yet been released.
Organizers include the Iowa Tea Party and American Principles in Action. On their bus tour website, they say the purpose of the tour is two-fold:
1. To bring issues such as adhearing to our Constitution, returning to the Gold Standard, tax reform and a balanced budget into the forefront of the debate.
2. To train activists in precinct and caucus organization for the candidate of their choosing.
The United States had used some variant of the gold standard throughout much of its history, including from about the end of World War II through 1971, when the dollar was held as a base currency and was theoretically exchangable for gold. A small but vocal number of people, mostly libertarian conservatives like Ron Paul, have called for a return.
However, a standard, fixed-rate currency (like gold) has a significant number of downsides. Among them: That currencies can’t float, exacerbating downturns and pulling down the economies of everyone because one can’t simply downgrade the individual currency affected. The current drag felt across Europe because of problems in Euro-holding nations like Greece, Ireland, Spain and Portugal is an example. Robert Zoellick, head of the World Bank, has said a return to the gold standard is impossible.
“I will take a close look at the gold standard issue,” Bachmann said in response to our inquiry, “but I am taking part in the bus tour because we agree on a number of important principles, including spending restraint and strengthening the dollar.”
“I will take a close look at the gold standard issue,” is Bachmann speak for I don’t have a clue what you’re are talking about. No one gave me talking points for that one.