21 responses to “Ron Paul on the Euro, the Dollar and Gold”

  1. 50 Peso Gold

    A return to the gold standard would stem the ruinous tide of inflation that is making America poorer by the second. Gold can not be printed, decreed, or spoken into existence like the federal reserve note. Gold is money. Silver is money. Paper is an empty promise.

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  2. EndtheFed

    Fred the P said:
    “…. It’s the exact same thing as a gold standard, except (without) exporting all the gold because of the massive trade deficit.”

    LOL Fred, let’s go through this again, shall we?

    As economist David Hume pointed out HUNDREDS OF YEARS AGO, the international gold standard provided an automatic mechanism for keeping the balance of payments of each country in equilibrium.

    EXAMPLE:

    If one country inflated their currency, it’s prices rise. Prices of imports from abroad are now relatively cheaper than prices at home. At the same time, the higher prices at home discourage exports abroad. The result is a deficit in the balance of payments. The gold outflow means that the country must contract it’s inflated paper currency in order to prevent a loss of all of it’s gold.
    The contraction lowers prices at home, creating an export surplus thereby reversing the gold outflow until the price levels are equalized amongst countries.

    This mechanism has created the most stable economic order the world has ever known.

    Trade deficits are THE RESULT of inflationary monetary policy, not the gold standard.

    But, don’t take my word for it. Educate yourself on the lessons given by Murry N. Rothbard. Start with his book “What Has Government Done to Our Money”.

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    1. fred the protectionist

      Libertarian say: “As economist David Hume pointed out HUNDREDS OF YEARS AGO”

      Hundreds of years ago the GDP per capita of an American wasn’t so different then the GDP per capita of a niger in Nigeria.

      The standard of living has become so vast between the 1st world and the 3rd world, and the cost of transportation has become so nil, those old free-trade theories by crusty European scribblers in whigs no longer apply.

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      1. EndtheFed

        Yeah the truth is old, so it’s automatically wrong. LOL
        Gotta love those logical fallacies.

        Buddy, David Hume’s observation is exactly how our system works today, except with dollars instead of gold. I don’t expect you to understand, you think trade deficits are caused by free trade.

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        1. fred the protectionist

          “….in dollars instead of gold”? But but but but but, but, but didn’t you Libertarians claim things work differently with “fiat money” instead of “gold”? So if that is true, then how can things be the same “…in dollars instead of gold”?

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        2. EndtheFed

          They work differently because when you have a limited amount of gold that can leave, you take care to stabilize your trade deficit.

          When you have unlimited paper, you don’t need to worry about how much leaves.

          “duhhhhhhh Fred don’t get it.”

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  3. Bottomline

    Fled the Procrastionist is once again defending his lover the Fled with falsifying facts that somehow the money will be sound and jobs will always be created by her.
    What economic course he has been taught or what economic person told him that?

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  4. GOD BLESS AMERICA

    I support much of Ron Paul’s strategies becasue he speaks the truth! The truth is hard to accept when it is presented to us and we are to blame for the present disaster!. How easy it is to allow the government do what it wants to do! How hard it is to take an opposing view! Yet, the truth is the truth! We are out of control as we elected the present government! We are out of control because we are allowing the present government to continue to spend money without have the funds to support the spending, except as money is crated at the printing presses, which is not going to last long. Soon the government will create taxes and inflation to pay for our out-of-control spending! Here in Kansas, the state government just passed a 1% sales tax. The tax is in lieu of creating a balanced budget by reducing spending. Soon, our federal government will create very high inflation to allow them to repay their debt with vastly devalued dollars. After the inflation, we will see the bankruptcy of America just like Greece is facing now. When Greece could not repay their debt, instead of going bankrupt now, it is borrowing more money that it can repay which will prolong their bankruptcy. Our Federal government is doing the same thing as Greece has done. Unless we do what is needed to be done and stop all spending and stop increasing taxes, we will soon follow Greece into bankruptcy. Our existing government will not be able to stop their outrageous spending. What can we do? We can elect new representatives who will stop spending and stop raising taxes and remove the unsuportable health care laws. We are out of control! Only, we, the people, can get us back in control with the help of GOD! May GOD bless America!

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  5. Phil

    Sir!
    First, you should learn to spell correctly. Then study history. The fed was imposed on this country in 1913. Neither it nor the federal income tax were ever ratified by the Congress.

    No accountability for almost a hunred yrs., trillions of dollars[ taxpayer ], in bailouts, also foreign aid. The fed is not a goverment agency, yet it has complete control of the ‘Treasury”.

    It is run by the council on foreign relations, and the trilateral commission members. You should also study them and their history.

    Enough for now.

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  6. Phil Holtz

    I am, and will continue to do all I can, to help, and support him.

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  7. fred the protectionist

    You know… The FED’s mission is quite simple:

    1) Keep US dollar supply stable and constant.

    2) Promote maximum employment.

    #2 conflicts with #1, just remove #2 from the FED’s mission and then you wouldn’t have low single digit inflation. The you’d'all have nothing to whine about and that’d make me happy.

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    1. Citizen

      Fred the P.

      Wrong Again!

      The FED’s mission is to create money out of thin air to bailout the PIGS, Greece, Italy, Spain etc. and other reckless sovereign spend thrift Governments and soon States.

      You want JOBS? then let people keep their money, LOWER TAXES, to permit capital accumulation in the hands of Capitalists who create REAL JOBS. Not government Census Takers who burn up tax dollars, and definitely not Government Unions who demand 40% more pay than the same Private sector job.

      Next stop… FED bailout of California’s Teachers, Police, Fireman’s Union Pension that are $500 BILLION in the hole and sinking fast.

      JUST PRINT MORE and give every American a Million! Problem solved?
      NOT!!!

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      1. fred the protectionist

        Your irrational hatred of an alphabet organization is like the irrational hatred of Jews.

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    2. Ross

      Fred,you are living the delusion.The FED will and is not premoting stability of employment or currency.Bail outs, stimulus packages are not sound economic practise.There is no such thing as too big to fail.The US people are bigger than any institution be they be Govt or private.

      You are flying the false flag of protectionism to justify all manner of FED sins.

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      1. fred the protectionist

        *sigh* there’s no rationalization with Ronulans and Libertarians, pure irrational idealogues you are.

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    3. Libertarian777

      Fred’s actually correct here.

      The Fed Reserve does indeed have two opposing missions.

      It’s relatively simple to lower unemployment, increase the money supply. However it doesn’t last forever (it leads to hyperinflation). And you can only expand so many times (Japans been at 0% forever and they’re still deflating).

      #2 is what gets politicians votes. So how do they lower unemployment? they either spend (fiscal policy) and fund it by pressuring the Fed to expand monetary policy. Hence the fact that the Fed isn’t really as independent as they like to tell us they are.

      I agree with Fred (shock and awe!), #2 should be removed as a Fed goal.

      #1 we’ll still disagree on. ;-)

      If #1 and #2 was removed, there’d be no need for a Fed.

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      1. fred the protectionist

        Why would you disagree with #1? It’s the exact same thing as a gold standard, except exporting all the gold cause of the massive trade deficit.

        Doesn’t matter, you Libertarians are powerless to effect #1 or #2, probably because your inability to compromise on anything, which I suppose is a good thing since Libertarians are wacko.

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        1. EndtheFed

          The gold standard doesn’t cause massive export of gold. Inflation does.

          As economist David Hume pointed out HUNDREDS OF YEARS AGO, the international gold standard provided an automatic mechanism for keeping the balance of payments of each country in equilibrium.

          EXAMPLE:

          If one country inflated their currency, it’s prices rise. Prices of imports from abroad are now relatively cheaper than prices at home. At the same time, the higher prices at home discourage exports abroad. The result is a deficit in the balance of payments. The gold outflow means that the country must contract it’s inflated paper currency in order to prevent a loss of all of it’s gold.
          The contraction lowers prices at home, creating an export surplus thereby reversing the gold outflow until the price levels are equalized amongst countries.

          This mechanism has created the most stable economic order the world has ever known.

          Trade deficits are THE RESULT of inflationary monetary policy, not the gold standard. Free trade (the absence of government intervention in trade) has nothing to do with it. In fact, it is government intervention into the money supply that causes trade deficits.

          Time to re-think your troll strategy. Free-trade is no longer your scapegoat.

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        2. fred the protectionist

          Wrong, trade deficits are the result of the vast gap in wages between the 1st world and the 3rd world. (Regulation and nil global transportation costs.) But mostly the wage gap.

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        3. EndtheFed

          haha okay fred let’s see the economics that explains that.

          I’ll be waiting.

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        4. fred the protectionist

          Behold, Libertarians do not understand why jobs move to China/Mexico. It’s a big frigging mystery to ‘em.

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