Republicans tease with gold standard, but idea seen full of bugs

Instead of planning for a gold standard return, the Republicans are trying to placate supporters at next week's RNC and to gain more firepower in the party's promoting responsible U.S. fiscal and monetary policies in the upcoming federal elections in November, analysts said.Minutes from the Federal Reserve's latest meeting suggests the U.S. central bank will adopt stimulus fairly soon unless economic conditions improve dramatically. Some expect Fed Chairman Ben Bernanke could use his speech at the central bank's gathering in Jackson Hole, Wyoming, at the end of this month to send a strong message to markets.
"Examining a return to the gold standard is one avenue to show the public and markets a level of seriousness about the U.S. dollar, monetary policy and the budget deficit," said Jeffrey Wright, managing director of Global Hunter Securities.

Click to expand...