Is gold better than cash? Donald Trump accepted three
bars of it as a security deposit when a new tenant moved into his 40 Wall Street
property in New York’s financial district.
Michael Haynes, chief executive of APMEX, the tenant,
convinced the real estate mogul that accepting gold offered the greatest
security for him. “I figured, Trump is a smart guy, and he’ll realize that
taking gold is a better idea than taking cash.”
IMPORTANT NOTE: I published this article because several readers have asked me
what does Presidential candidate Donald Trump think of gold. I found
this article interesting as Trump took three gold bars as a security payment
for leased business space from an executive at APMEX.
I do not promote any candidate either Democrat or
Republican.
Haynes gave Trump three 32 ounce gold bars for APMEX’s
deposit, valued at over $100,000. At the time, Trump expressed
concern about the nation’s currency. “It’s a sad day when a large property
owner starts accepting gold instead of the dollar,” Mr. Trump told the Wall
Street Journal.
“The economy is bad, and Obama’s not protecting the
dollar at all….If I do this, other people are going to start doing it, and
maybe we’ll see some changes,” the businessman added at the time.
“Trump recognizes the vulnerability of the value of the
dollar over time and the inflationary pressures on our economy due to Obama
administration policies,” Peter Reagan, financial market strategist at
precious metals dealer Birch Gold Group, said.
Could Trump’s acceptance of gold as currency be a glimpse
into what a potential President Trump would do? And furthermore, could a gold
backed currency be a centerfold for his economic policy this election?
Looking at recent history suggests that Trump could
indeed put forward a bold, gold-backed economic policy proposal.
Until 1971, the U.S. dollar was backed by gold. Foreign
nations knew they could always bank on its value being based not only on the
full faith and credit of the United States government, but on a commodity
that has had an intrinsic value through the ages.
The dollar is a “fiat” currency based entirely on faith
those trading in it have in the United States government. Trump and many
others see much to be concerned about on that front. The National Debt, over
$18 trillion, now exceeds the total Gross Domestic Product of the United
States. Because of the country’s fiscal outlook, Standard and Poor’s downgraded
the U.S. credit rating for the first time in the history of the agency.
Additionally, the Federal Reserve has monetized much of
the deficit spending of the last several years, “printing money out of thin
air” to the tune of trillions since 2008 to help pay for the nation’s
shortfall.
Faith in the dollar can change rapidly as was seen in
recent years, when it fluctuated significantly against foreign currencies,
seeing a major decline in 2011, with several ups and downs since.
Original article here: For Trump, Gold Is Better Than
Cash, by WesternJournalism.com
