Ron Paul – End of Fiat Money and Gold
- I have always been an admirer of Ron Paul for his honesty and courage. It also helps that he preaches sound, responsible Austrian economics.
- In : The Neo-Alchemy of the Federal Reserve, he says :
” The updated total bailout commitments add up to over $8 trillion now. This translates into a monetary base increase of 75 percent over the last two months. This money does not come from some rainy day fund tucked away in the budget somewhere – it is created from thin air, and devalues every dollar in circulation.“
- More printing of money out of thin air means everyone is poorer. This is in effect a tax on your savings. You become poorer via inflation.
“Giving a central bank the power to create fiat money out of thin air creates the tremendous risk of eventual hyperinflation. …. Our central bankers have had a tremendous amount of hubris over the years, believing that they could actually manage a paper money system in such a way as to replicate the behavior and benefits of a gold standard.
Throughout the ages, gold has stood the test of time as a consistently reliable medium of exchange, and has frequently been referred to as “God’s money”, …
It is unnatural and dangerous for paper to be considered as precious as a precious metal. Our fiat currency system is crumbling and coming to an end, as all fiat currencies eventually do. ”
- Is the FedRes not responsible for the current credit crisis, financial tsunami we are in? Have the FedRes not messed up America and also the rest of the world? Where was the FedRes when they were most needed during the ‘anything goes’ past 7 years? Who contributed to the past 2 bubbles : dot com and real estate. What about the “anything goes” financial engineering of derivatives? No oversight, no foresight, no leadership…. sleeping on the job.
- Why exactly do we need a private central bank like the FedRes? Taxpayers pay them interest just to print money out of thin air. Why? Do they serve taxpayers’ interest or their own private banker shareholders’ interest? It is obvious. Ron Paul is correct in saying we should abolish the FedRes, nationalize it ! All its functions should be put back to the government.
- Finally, in keeping with sound money and to prevent governments from behaving irresponsibly, senator Paul clearly advocates some kind of return to the Gold standard. I couldn’t agree more! Going into 2009, we are going to see the entire world of fiat money in deep distress: ” Our fiat currency system is crumbling and coming to an end, as all fiat currencies eventually do. “
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