With the rise of Islamic supremacism in the Middle East, a revanchist Russia, and the weak U.S. economic recovery, to go along with hyper-regulation in the wake of the 2008-2009 financial crisis, quantitative easing of the Federal Reserve and the implementation of Obamacare, you might think that Steve Forbes would look on at America's position with pessimism.
But if you thought that, you would be wrong.
In a wide-ranging interview with TheBlaze Books in connection with his new book, "Money: How the Destruction of the Dollar Threatens the Global Economy -- and What We Can Do About It," the chairman and editor-in-chief of Forbes Media -- publisher of the popular Forbes magazine -- sounded an optimistic note, arguing that America's apparent malaise is more cyclical than secular, a temporary decline from which we will bounce back stronger.
Responding to the a question about the recent bearish comments of several high-profile investors, Forbes told us:
[W]hat we're experiencing now is not a new normal, but an abnormal -- new abnormal. It's a detour. It's not the new direction. And we're going to emerge strong again, just as we did in the '80s and '90s.
Forbes believes that the political reforms coming down the pike with respect to economic and monetary policy, presumably to be advanced by conservatives, will pave the way for a return to prosperity:
[sharequote align="center"]"American[s]...instinctively understand that you cannot have a strong country with a weak currency"[/sharequote]
I think the elections this November...especially the elections in 2016, you're gonna see emerge a mandate for making a radical change in our tax code. I know of several potential candidates who are coming up with proposals on that. And I think you're gonna start to see a real discussion to lay the foundations for restoring integrity and strength to the dollar.
And I think the American people instinctively understand that you cannot have a strong country with a weak currency -- a weak dollar.
I think you're gonna start to see the groundwork laid for the strengthening of the dollar, a simpler tax code -- a radically simplified one, and a new healthcare system emerging where the patient is in charge.
You can listen to more of Forbes' forecast on the future of America's economy beginning around 21:57 below.
Forbes' remarks rounded out an in-depth discussion on the gold standard, monetary policy, economics and a whole host of other topics addressed in "Money." Some of the most compelling issues Forbes and I discussed during the interview include:
- The link between foreign policy/American strength and monetary policy [At interview start]
- How currency devaluation helps the financial sector to the detriment of the rest of the American economy [Starting at 3:00]
- The significance of a strong currency in enabling trade and thus trust, and social stability/morality [Starting at 5:17]
- Why the historical record of the gold standard should trump the arguments of its naysayers [Starting at 10:08]
- Whether politicians will ever be incentivized to truly support a sound dollar [Starting at 12:30]
- Why quantitative easing was more disastrous than the Obamacare rollout [Starting at 14:35]
- Forbes' challenge to Keynesians like Paul Krugman who argue that free marketeers have been wrong in their forecast of economic doom [Starting at 16:00]
- What Steve Forbes' gold standard would look like were he to replace Janet Yellen [Starting at 18:29]
- And much more
Note: The link to the book in this post will give you an option to elect to donate a percentage of the proceeds from the sale to a charity of your choice. Mercury One, the charity founded by TheBlaze’s Glenn Beck, is one of the options. Donations to Mercury One go towards efforts such as disaster relief, support for education, support for Israel and support for veterans and our military. You can read more about Amazon Smile and Mercury One here.