Kwarteng notes the historic stability under gold standards, specifically citing the 2008 financial crisis and national debt level as problems related to the Fed and printing paper money.
"The credit crunch, the credit bubble that preceded it, and the huge amounts of debt and deficits that we have are related to paper money," says Kwarteng.
Lauren asked "After the Fed has printed trillions of dollars, just to look at the past several years of expanding the money supply, how do you put the genie back in the bottle?"
"If the Chinese unilaterally declared that the renminbi would be pegged to gold it would essentially recreate the gold standard," responds Kwarteng.
Yet, Kwarteng admits that China's export policy likely precludes that from happening.
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