259 responses to “Ron Paul on Gold vs. the Dollar”

  1. Andrew

    We're not going to have a country if we don't start acting. It's time to end this ridiculous corporate agenda.

    Vote Ron Paul, and read some of these:
    http://bizcovering.com/business/the-road-to-america/

    http://healthmad.com/fitness/get-fit-or-doom-your-children-to-poverty/

    http://bizcovering.com/business/let-it-crash/

    http://socyberty.com/economics/how-corporations-are-screwing-the-economy/

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  2. Citizen

    A FATHER’S DAY REBUT of Fred’s & Forest’s hyperbole, jingoism, and belligerent nationalism.
    Fallacy Rants:
    RANT # 1: “Cheap “slave labor is destroying American jobs” - Cheaper labor exists ALL over the world, Indonesia, China, Taiwan, Mexico, India, Brazil etc and businesses will always seek both cheaper and smarter labor to cut costs,. America had 8 decades of Union wage extortions compounded by Government tax bracket creep and extreme regulation, turning “Made in America” into a sad distant joke.
    Bottom line… American LABOR has priced itself OUT of the Global Market, James McMurtry said it right, “WE can’t make it here anymore”, because we’ve been duped and cheated by BIG Labor and Big Government.

    RANT #2: “Tariffs will Protect American Jobs” Wrong, the history of tariffs is a litter box of failed political favors handed out to political cronies; regardless workers still get screwed in any tariff deal. Tariffs only ignite trade wars that hammer the American consumer, a lose-lose proposition.
    Bottom line… we can’t make Wal-Mart or Caterpillar stuff cheaper here in American with Minimum Wage rules and Unions keeping wages artificially high. Our government and unions prefer 17%+ unemployment along with and paying 60 weeks of unemployment benefits rather than permitting American workers to complete in the REAL WORLD LABOR market.

    RANT #3 “the shinny yellow rocks are worthless” Gold remains a time tested STANDARD.
    Bottom Line… Dr Paul’s point is that governments hate gold because it holds government accountable, naturally preventing their gutless dilution schemes by printing fiat paper.

    RANT #4: “where’s the inflation?” [Fred’s favorite] The 2008 housing 50%+ INFLATION bubble finally popped and now we’re paying the “Deflation” costs in a long trough where massive ARTIFICIAL wealth is lost, a classic price correction of hyper-inflated housing prices. If and when the economy recovers, it will likely be spurred by another currency BUBBLE sponsored by Fannie, Freddie and the FED, and we’ll experience another round of double digit PLUS inflation.
    Bottom line… The Government uses the FED to repeatedly pump up bubble after bubble with bogus inflated currency which in turn repeatedly hammers the American working family with tragic wealth losses and chronic bouts of unemployment.

    RANT #5: “the USD is great” [Forest] This is a classic blind faith rant of his that really drives home the point that Fred and Forest are simply big Gov and FED cheerleaders… “Ignore the man behind the curtain”, yea that guy who’s manipulating your lives with ruthless disregard for your family and your children’s children. Even Robert Gibbs aka “Baghdad Bob” is stumbling for words to cover the ever widening gulf of lies and cover ups.
    Bottom line… The USD is a doomed currency that is headed for the proverbial “crackup boom” [LV Mises] and even the gates of hell will not prevail against the collapse.
    FINALLY, the Brothers Dim have collectively never made a cogent argument backed by facts.

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  3. jack

    I N V I T A T I O N

    Anyone who can disproof Mathematically Perfected Economy (MPE) is invited to publish their disproofs on Mike Montagne´s website (www.perfecteconomy.com) . Supply your URL, and/or written formal document with your real name and some form of ID.
    Contact details are on the website.
    Mike has agreed to this.

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  4. UEBERNERD

    OK Fred I quit theorizing about "economy", I think there is no real exact science to be found in there. Alas. Better become a weatherman.

    Meanwhile I read that gold is all time high 1251.58.

    And Jack so far did not answer my question whether this "Mathematical supposedly "Perfect" Economy" model wants to ban "interest" all the way. Isn't that an old muslem-Koran-law?

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    1. jack

      Mathematically perfected economy™ : 1. the singular (one and one only) integral solution of the categoric faults of pretended economy, in which a) inflation and deflation, b) systemic manipulation of the cost or value of money or property, and c) inherent, irreversible, and therefore terminal multiplication of artificial indebtedness in proportion to capacity to service debt are solved altogether by: a.2) promissory obligations to repay only principal, and which retire principal as it is paid at the rate of consumption or depreciation of the related property; a.3) with this obligatory schedule of payment and perpetual capacity to finance equity alone therefore perpetually maintaining an effective circulation which is always equal to the remaining value of all property; in which c.2) inherent, irreversible and therefore terminal multiplication of artificial indebtedness by interest is solved by eradication of interest; and in which, b.2) as the only powers of obfuscating currency are to corrupt the volume, proportions, and/or unnecessary cost of monetization; therefore b.3) systemic manipulation of the cost or value of money or property is solved by the inseparable combination of the first and third aspects of solution (a.2, a.3 and c.2), with the unique intrinsic result of all this e) being the only means of achieving the often claimed principle of maintaining a perpetual, immutable 1:1:1 relationship between circulation, remaining value of represented property, and commitment of every unit of the circulation to paying just so much for property as its remaining worth; and f) likewise being not only the only means of receiving fully and immediately for all consumable production, but of paying no more for our consumption than what we consume, as we consume of it; with the combination of all this therefore being g) the only fact of actual economy; 2. every prospective debtor's right to issue legitimate enforceable promises to pay, free of extrinsic manipulation, adulteration, or exploitation of those promises, or the natural opportunity to make good on them; 3. the inherent right to monetize our industry as will universally sustain trade of no more than the undiminished production of our own endeavors for whatever truly free markets deem to be the sufficiently equivalent production of others, wherein debtors are obligated to pay off promissory notes comprised of only principal, at practical rates of consumption or depreciation; 4. strict implementation of these principles through a Common Monetary Foundry, charged with certifying credit worthiness, automating payment, and enforcing obligations so as abuse imposes no cost on the rest of us.

      (We leave the secundary (subprime) market to the Austrians!

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    2. Forest

      UEBERNERD says: "Meanwhile I read that gold is all time high 1251.58."

      Actually, in terms of purchasing power Gold is still down 33% from it's all time high it reached in 1981.

      Yeah, the same year that Ron Paul was predicting that "there will be widespread civil unrest".

      Too bad he has more faith in a shiny rock than in Ronald Reagan and the United States - people might actually respect him today.

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      1. EndtheFed

        Forest thinks he's smart for figuring in retrospect that purchasing gold at it's highest price is a bad decision. Too bad you didn't have retrospect in 1980 or else you may have turned a profit.

        Let's compare the 'highest price' scenario with a relatively 'low price' scenario of 35 dollars per ounce.
        A 35 dollar ounce of gold, adjusted for price inflation since 1971 is equivelent to about 180 of today's dollars.

        I wouldn't be too upset if I paid only 180 dollars for an ounce of gold that sells for around 1200 dollars.

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        1. Forest

          You mean at the $35 an ounce price that was fixed by that big'ol evil government?

          That's not a very libertarian comparison, wouldn't it be more fair to compare prices that are set by free markets?

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        2. SS

          Here comes Forest's smartass retort which always follows him getting slammed.
          I'm waiting to see the bridge jump with both feet in his mouth.

          Those extreme statements are sounding alot like that 'Fled The Deflectionist' guy.

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        3. fred the protectionist

          'OK Fred I quit theorizing about “economy”'

          I have the founding fathers, the constitution, and the original Republican Party on my side. You have the Confederate States of America, Karl Marx, and British economic theory which brought the British Empire down, on your side.

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  5. UEBERNERD

    For the record, Citizen, your 5 million per family Keynes "boost" creating a Weimar inflation: Keynes REFUSED to sign the Versailles Treaty in 1918 because he saw Weimar -and Hitler- coming, knowing that Germany could never pay up the war "repair". His pamphlet "On the Consequences of Peace" is still readily available on the web. Keynes is always associated with creating government debt but in my previous post I explained the whole thing was meant to keep the total amount of currency constant and stabilize international exchange rates.

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  6. UEBERNERD

    You can not convert Non-Euclidean geometry back to Euclidean geometry. The sum of angles in a triangle differs from 180 (flat Euclidean) on a curved surface (hyperbolic or spherical non-Euclidean). And spacetime is curved in the presence of mass.

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    1. fred the protectionist

      The purpose of a non-euclidean geometry is to make calculations easier, then it is converted back to euclidean geometry, otherwise it is useless. It's just another matter of simplification, like what you earn in your first class of algebra.

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  7. UEBERNERD

    "700 million dollars go out of the country because of the trade deficit , so you need the FED to bring 700 million back in circulation". Fred-the-Protectionist. YES. So let us elaborate on that. What factors control the money going out of circulation: private savings S(people), taxes T(government) and trade deficit Tr(out). All right? What factors bring money back into circulation? Consumption C(people), government spending S(government) and a trade surplus (if there is one), money coming in from export, Tr(in). So the total amount of money in circulation is stable when:

    S(people)+T(gov)+Tr(out)=C(people)+S(gov)+Tr(in)

    Right? So occasionally a government can have a relatively small temporary deficit (inflate)(and obviously not giving every family a cheque of 5 million dollars) to keep the sum of the three factors in balance. If things change the government HAS to have a surplus again (deflate) to balance the sum. Not necessarily balancing all three factors at the same time. You can have some sort of a FED to steer this. And you need an international agreement to fix currency exchange rates. Well, an international agreement on exchange rates was reached in 1945 in Bretton Woods with the US dollar being the standard currency backed up by gold. And a "FED" to do the balancing. Architect of all this?

    John Maynard Keynes

    [the model BTW was inspired by physical blood circulation literally]
    Never mind Hayek, Friedman, calling Keynes a "communist", never mind LaRouche calling Keynes a "fascist". Never mind "the Austrians" or "MPE". [And that is why Reagan at some point time found himself to be a ""Keynesian" too] And it all worked like a charm in the biggest economic boom in the history of mankind from 1945 to 1971 when Nixon (KISSINGER) demolished the Bretton Woods agreement by financing the Vietnam war inflationary which lead to the downfall of the dollar up the present day. Ron Paul points to this consistently, because this man knows history.

    The key question is: why was the FED a "good boy" from 1945-1971 and did he become a "bad boy" under Nixon. Answer: Because KISSINGER (Nixon just went along) knew that the FED is NOT a true "U.S. Federal Agency" (Bernanke's words, I think he believes it himself) but an "Us-the FED" institution, meaning a PRIVATE partly offshore cartel (UK Rothschild, JP Morgan, Rockefeller Chase Manhattan, Warburg Amsterdam, a thingie in France..,..) cooked up in 1913 Jekyll Island with a history of financing both sides in at least 2 world wars. And that is why Bernanke answered on the question "where did all that money go?" "I dont know" and I think he doesnt know! Up to the total degenerate situation anno 2010 about ten years after the Glass-Steagall firewall between investment and normal business banks was demolished by Wall Street. On purpose. And that is why this "FED" has to be audited what is more this "FED" has to be ended. Ron Paul points to all this, although I doubt that his alternatives of monetarism will bring things back on track and he will need a new real US-FED and Bretton Woods in time. Glass-Steagall has to come back in the McCain-Cantwell version now, Obama opposing and fronting the entire Bush.jr-crew so we are dealing with a "coup" in fact. Maybe things have too far gone already and the world is sliding into massive war again pleasing Obama's allmighty ego. Nobel Peace prize and all, BTW Kissinger has one of those too.

    So Fred-the-P here is your answer "why is there no monetary inflation -yet-?". Because of the huge trade deficit and the printing of money out of thin air spreads all over the planet like an electrical current being grounded. Inflating Greece, Spain,..,.., the euro and there you go to a global Weimar situation.

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    1. fred the protectionist

      Taxes and Savings don't take dollars out of the American economy, out of the country, Kemosabe.

      As far as savings is concerned, it creates more 'irrational' dollars via fractional reserve banking. (That's my little theory, an irrational number has to multiply itself 4 times to become 1)

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      1. longshotlouie

        Savings = 'Irrational Dollars'?

        Debt is irrational, not savings.

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        1. fred the protectionist

          Your lack of vision is disturbing.

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        2. longshotlouie

          Not so much as your lack of substance.

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    2. Citizen

      UEBERNERD,

      Your posit: "why was the FED a “good boy” from 1945-1971"
      Nixon continued to ran up against LBJ's huge Social deficits when the Great Society programs started spending far more than it collected taxes. ADD to that the Vietnam War, together they were unsustainable spending. The FED stepped up the currency expansion to cover the gap and inflation took hold during Carter's miserable term.

      Read the FED charter, everything it says its designed to do is just the opposite of what it does.
      END THE FED!
      Eliminate Fractional Reserve Banking which is simply an uncontrolled inflationary balloon mechanism.

      ANSWER: The FED was only waiting for another opportunity to create BOOM.

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