Is the gold standard “Mission: Impossible”?

I wonder if our government ever is going to wise up and put America back on the gold standard to prevent inflation and currency uncertainty. We’ve now suffered almost 38 years rampant inflation — with no sign of abatement.

Even Republicans refuse to heed the sage advice of Ron Paul on returning to the gold standard.

(Tell me, again, why Republicans refused to nominate Ron Paul for president? Oh yeah, that’s right: They’re losers.)

I was reminded of how long we’ve been off gold — and on the “funny money” dollar — while watching a DVD of the old “Mission: Impossible” TV show. It included a reference to the currency turmoil after President Nixon foolishly took America off the gold standard on August 15, 1971.

The “Mission” episode is called “Underwater” and aired on TV on Nov. 6, 1971. It was produced a couple of months before the air date — that is, right after Nixon’s action.

The plot involves diamond smuggling by “The Syndicate,” the show’s continuing euphemism for the Mafia, used so as not to bring down Italian-American boycotts.

At about 6 minutes into the episode, Casey, the blonde bombshell secret agent, says:

$75 million is a lot of money, Jim.

Jim Phelps, the head of the Impossible Missions Force (IMF), explains:

Well, the Syndicate’s gone in very heavily for stolen gems, Casey. With international currencies so unstable, they make a perfect investment.

What he doesn’t point out is that his own U.S. Government, which runs the IMF — a kind of super CIA — caused the currency instability problem in the first place. Before 8/15/71, the dollar was pegged to gold at $35 an ounce, and all major world currencies were tied to the dollar. So during this period, 1944-71, there was great currency stability, which facilitated trade and growth.

For example, in 1957 a barrel of oil cost $3.14, while in 1970 it cost $3.39. That’s only slight inflation of about half a percent a year (most of which, if you click on the chart, occurred in the late 1960s as the dollar weakened).

38 years of inflation

Since then, gold has risen in price to about $925 today, July 14, 2009. That’s a 2,642% increase. No wonder everything costs more.

For example, back in 1970, crude oil was $3.39 a barrel. Today it’s $59.37. That’s a 1,751% increase. It shows how closely gold/oil are connected.

The $75 million in gems back in 1971 would be about $2 billion in today’s inflated money — the inflation caused by the U.S. never going back on the gold standard.

In the TV show, the IMF beats the “Syndicate,” catching the gem smugglers/killers.

But the real crooks, Nixon and the whole U.S. government Syndicate/Mafia, go unpunished. And their successors in government are still profiting from “unstable” currencies by keeping us off gold.