Gold bugs in the news

A Gold Standard Does Not Require Interest-Rate Targeting

Moore and Cain, a couple of gold bugs are causing some discussion about the central bank gold standard.  

My input:

Central banks on gold will foul the gold standard.  

We nee an independent gold standard to track the precious metals market. And we need an independent gold standard to manage industrial uses of gold. We are better off keeping government hands off of gold. Further the gold standard is really only as good as the 'Right to coin' clause is not executed.

The central bank standard should be focused on getting a long term deal on 'Right to coin', the basic central bank standard in the USA needs to weaken that link.

The best we can do here is to make it mostly obvious, at any given time, that Congress is worse off when executing the right to coin. The potential loss or gain of reneging on the contract is never worth transaction costs. Congress thus always adiabatic with the central bank. That requires a fairly wholistic agreement on currency banking among mathematicians, who will rule the change over. The Occam's Razor is a simple loan to deposit market with the Fed as market maker and the focus on risk equalized clients.  Power that simple rule with the demand of defaulting on half the debt over 15 years, Congress being moved to a cash flow system in return.  Well worth the risk, the mathematicians will tell you, go ask them.