(Money Metals News Service) As America faces the twin threats of inflation and bank failures, three U.S. congressmen introduced a pivotal sound-money bill that would enable the Federal Reserve note "dollar" to regain stable footing for the first time in more than half a century.Rep. Alex Mooney, R-W.Va., joined by Reps. Andy Biggs and Paul Gosar, both Arizona Republicans, introduced H.R. 2435, the Gold Standard Restoration Act, to facilitate the repegging of the volatile Federal Reserve note to a fixed weight of gold bullion.
Upon passage of H.R. 2435, the U.S. Treasury and the Federal Reserve are given 24 months to publicly disclose all gold holdings and gold transactions, after which time the Federal Reserve note "dollar" would be formally repegged to a fixed weight of gold at its then-market price.
Federal Reserve notes would become fully redeemable for and exchangeable with gold at the new price, with the U.S. Treasury and its gold reserves backstopping Federal Reserve Banks as guarantor.
Monetary experts have noted a return to a gold standard would substantially curtail the economic damage caused by inflation, runaway federal debt and monetary-system instability.
"A gold standard would protect against Washington’s irresponsible spending habits and the creation of money out of thin air," said Rep. Mooney in a statement.
What is more likely to actually happen.