A TRUE GOLD standard, which naturally is opposed by politicians, would virtually assure government fiscal responsibility

A TRUE GOLD standard, which naturally is opposed by politicians, would virtually assure government fiscal responsibility; and heightened personal responsibility, along with bankruptcy, would allow for a much greater chance for wiser bank management to reduce government bailouts, FDIC takeovers and Fed special financial packages, along with a host of special but perpetual government bailout programs....

To help establish the discipline of such a monetary system, we must strengthen the moral foundation of all financial transactions. This is a return to the principle of institutional and personal responsibility. No more bank bailouts. No federal deposit insurance of bank deposits. (This does not preclude private bank insurance firms from emerging to insure deposits with insurance premiums paid by the depository institution.)

Moreover, allow not only “big banks” to fail but all others as well. We adopt the principle of absolute priority for the distribution in liquidation, if necessary, of a financial institution’s assets. And with no FDIC insuring deposits, depositors are responsible for the safety of their deposits. Obviously, they must choose their depository institutions wisely. Bank shareholders likewise will be under greater pressure. With no FDIC and no bank bailouts, they must exercise greater diligence in choosing institutions in which to invest.

Our current practice of providing deposit insurance, bank bailouts and endless special emergency (TARP) loans reduces the incentive for financial institutions to prudently manage their resources and liabilities.  http://m.chronicle.augusta.com/opinion/opinion-columns/2014-12-14/true-gold-standard-would-re-establish-american-fiscal#gsc.tab=0