CNBC reported that following the Republican Party’s idea to revisit the gold standard, some are calling the ideal ludicrous and nonsensical.
Moorad Choudhry, of The Royal Bank of Scotland, stated:
I think it’s absolutely nonsensical. There’s a very good reason they unhooked it in 1971, because their deficit didn’t enable them to maintain it with the supply of gold. In fact, is there enough gold in the world to back the U.S. debt?