To The Board of Governors of the Federal Reserve System,

My name is Jamie Dubauskas and I am a student at the University of Maryland studying Finance and Computer Science. I am writing in regards to the United States’ messy economic system. The current rate of inflation of the US Dollar is absurd. The inflation rates of the US Dollar is especially absurd when you consider that the United States has the best economy in the world.

I believe that the cumulative inflation of the US Dollar is directly because of the absence of a gold standard. The US got rid of the gold standard in 1933 as a direct reaction to The Great Depression. Fast forward 86 years to now, the US Dollar has cumulatively inflated by over 2000%. Because of the absence of a gold standard, the US Federal Reserve have resorted to acting in a reactive manner to control inflation through monetary policy rather than acting in a proactive manner such as establishing a new gold standard.

One of the main problems that caused the US’s gold standard to fall apart was that the US didn’t commit all the way to a true gold standard. The Federal Reserve Act of 1913 said that the US Federal Reserve was only required to have enough gold to back 40% of the demand for dollars. A true gold standard would have all 100% of all US Dollars backed by gold. This failed attempt of a gold standard over 100 years ago didn’t cut it and may be one of the causes behind The Great Depression.

Now even if the US Federal Reserve tried to bring back a true, 100% backed gold standard, it simply wouldn’t work right now because there are too many US Dollars in circulation. What I am proposing is to bring back the gold standard. But before a gold standard is established, a redenomination of the US Dollar and a price lock of gold is needed. A redenomination of the US dollar is necessary to eliminate all of the cumulative inflation that has been done since the abolishment of the gold standard in 1933 by reducing the amount of US Dollars in circulation. If a redenomination of the US dollar and a price lock of gold doesn’t happen before a reestablishment of a new gold standard, then the price of gold in the free market could inflate by a lot on the news of a new gold standard. If everything is handled the way it should be, then no person in the United States should lose or gain any amount of wealth, even insiders that buy gold before an announcement thinking they are smart for doing so.

All the facts that I have stated is true and I will be happy to send over a list of my sources for finding this information. Contact me using my email: jdubausk@terpmail.umd.edu.

Sincerely,

Jamie Dubauskas