Ron Paul Questions U.S. Mint on Gold Coin Shortage

The United States Mint has a gold problem. As demand for precious metal in the futures indexes and in physical gold bullion coins increases as the dollar weakens, there’s been a run on the Mint. Don’t worry, there’s no shortage of gold. It’s just that the Mint doesn’t have the resources to make it into coins due to outsourcing and budget cuts decades ago.

The problem lies in manufacturing the blanks. The blank planchets are not made at the Mint, which hasn’t had the production capacity for this stage of the minting process since the budget cuts of 1981. More…

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Ron Paul: Thank you, Mr. Chairman, and welcome panel. I remain opposed to the Mint’s current effort to gain greater power in determining the composition of circulating coinage. It is unconstitutional to delegate the determination of the metal content of our coinage to the Secretary of the Treasury. Under Article 1, Section 8 of the Constitution, the Congress is given the power to coin money and regulate the value thereof. It’s a shame the Congress has already unconstitutionally delegated its coinage authority to the Treasury Department, but that is no reason to further delegate our power and essentially abdicate Congressional oversight. While I sympathize with the aim of saving taxpayer’s dollars by reducing the cost of coinage, it is disappointing that our currency has been so greatly devalued as to make this step necessary. At the time of the penny’s introduction, it actually had some purchasing power. Based on the price of gold, that one penny would have purchased, in 1910, what requires 57 cents today. It is no wonder that few people nowadays would stoop to pick up any coin smaller than a quarter. One of the witnesses on our second panel mentions the importance of the Mints production of bunion coinage and the danger of counterfeit collector coins that may or may not minted from silver or gold. It’s a shame that instead of protecting the value of the dollar to insure that precious-metal coins could still circulate as money, or enforcing counterfeiting laws to stop the flow of clearly fraudulent coins, the federal government insists on printing trillions of dollars out of thin air and prosecuting individuals who attempt to create precious-metal currencies to compete with the devalued U.S. dollar.

The topics discussed in today’s hearing exemplify how far we have fallen, not just since the days of the founders, but only in the last 75 to 100 years. We could not maintain the gold standard nor the silver standard. We could not maintain the copper standard, and now we cannot even maintain the zinc standard. Paper money, inevitably, breeds inflation and destroys the value of the currency, which harms all Americans. I wait for the day that we have a committee hearing when we talk about once again reinstituting sound money for our people.

I yield back.

Ron Paul: Chairman, I want to follow up on that very subject with Mr. Moy because I had some questions myself.

Has the Mint ever made planchets or is that something they’ve never done?

Mr. Moy: Yes, the Mint has made plantchets in its past, but it got out of the business a decade ago mainly because of the extreme cost of doing it, the environmental hazard for doing it, and it was determined at that time that there were other private entities who could make it more cheaply and safely than the United States Mint could.

Ron Paul: Okay. And because of the shortage that you didn’t have and you had a mandate, you had to put it in to the non-proof coins. That is correct? And you’re asking now for authority to say that you could take some of that money out or coinage out and make proof coins. Now is this the first year that you’ve missed making proof coins, in 2009?

Mr. Moy: Yes, this is the first year that we have missed
Ron Paul: If the problem were corrected, is there such a thing as minting coins a year late? Because some of those collectors, I’m sure, are going to say, “Oh, why can’t I have a 2009 coin?”

Mr. Moy: The Mint is required to basically sell the coins that are minted in the year that they’re made. So if the date is 2009, we sell 2009 coins in 2009.

Ron Paul: So the 09 will be missing.

Mr. Moy: Is missing.

Ron Paul: Yes.

Mr. Moy: And what we’re trying to do is prevent 2010 from being missing.

Ron Paul: Now it still baffles me that we can’t make a plantchet. I don’t know anything about the equipment or what is necessary. But doesn’t this country take jewelry and make complicated jewelry out of gold? Isn’t this just pretty simple? This just really, you know, is confusing to me why this can’t be accomplished. Instead of looking for more plantchets you’re saying, “Well, let’s give me more authority so I can make a few of these proof sets rather than bringing this out.” I mean, what would a businessman do about this? Would he always resort to going to Australia to do this? This just seems so bewildering that for a problem that seems rather simple, we couldn’t have had an easier solution for this. I mean, right now we don’t even have a solution.

Mr. Moy: Well, a businessman has to weigh two things. On one end, to make the planchets ourselves, we need to make capital investments in order to develop the smelters, the chemical processing, take care of the environmental hazard in getting rid of the chemicals; all of those issues. And on the other side, we have a limited amount of planchet makers around the world who don’t want to increase their capacity unless they get guarantees from government that we’ll continue buying at such high rates for some foreseeable future, so they can spread out their capital investment. So those are the two choices, and right now it is the most efficient choice to be able to expand the quantity of plantchets that we’re getting from the various suppliers.

Ron Paul: No, there are private companies making, you know, not coinage, but they make medallions and I’ve never heard of them running out of plantchet. You think they have that problem?

Mr. Moy: Yea. They don’t because they’re not in the business of being the largest bullion maker and supplier in the world. Last year we sold 28 million ounces of these. This year we’re headed to 32 million ounces. On an average year, the Mint might make 8 million ounces of this. So the other people don’t have to deal with the volume issue that the United States Mint does.

Ron Paul: This is awfully disturbing. What are we going to do when we go on to the gold standard? You won’t even be able to make the gold coins? You can’t even keep up with a few collectors. We’re in big trouble.

Mr. Moy: By that time my term in the Mint will be done and I will start a planchet making companies to pick up the excess.

Ron Paul: Well, it seems to me – I don’t know what it is -but it seems to me that there has to be a market answer for this, and maybe it’s the promise to take these, no matter how many they make. Maybe that would help. I mean, they’re not going to lose their value like it’s a risky thin. But you’re dictated by law that you have to promise these private sources on how many you can take?

Mr. Moy: We’re not dictated by law, but just by business practice. When a company invests in expanding their capacity, they’re going to want to make sure that investment pays off over time and they’re not willing to do it unless they get a commitment from their buyers to buy up all their excesses.

Ron Paul: Seems like they don’t trust the government, I don’t know. Thank you, I yield back.

Ron Paul: I have a question for Mr. Clark. Why do you think the Mint only uses three suppliers to provide these planchets?

Mr. Clark: I’d like to be able to answer that, sir, but I have no further knowledge.

Ron Paul: If you know the business, are there other people who can make them in the country?

Mr. Clark: I believe there are other companies out there that are very interested in offering their services to the Mint.

Ron Paul: And I understand they are not restricted by the law to these 3 individuals.

Mr. Clark: I am not aware …

Ron Paul: You know, if we get the (?) coin, we’re still going to have that same problem. Where are we going to get the planchets from, because they can’t even supply the demand right now? You suggested that we get the GAO involved and take a look at all this and see if we can get recommendations. I’m just wondering how much we really need this. Is there any other way to get some professional or political advice on this without an audit? Or do you see that the audit is something is very, very important?

Mr. Clark: Are we talking about the planchets or the (?) coin, sir?

Ron Paul: Well, you’re recommendation for the audit to review the Mint’s procurement processes for the blanks.

Mr. Clark: We thought an outside agency looking at their process – and to answer your question about why they’re restricting their sources to only 3 separate entities, someone with a separate set of eyes and a kind of fresh look might be able to determine that there is a better way to go about it. That’s why we were making the recommendation.

Ron Paul: And you’re other recommendation was that we require all the planchets be made here in this country.

Mr. Clark: We believe there is sufficient capacity within the United States borders to do so.

Ron Paul: Do you think there is a lot of difference, a net difference, in making these coins if we didn’t require that the gold came from this country? Isn’t gold generally pretty fungible? Does that make a big difference?

Mr. Clark: I think the Congress was interested, at the time they passed that requirement back in 1985, to promote the sale, the job creation amongst American mining companies that domestically produce gold to use for the American buoyant coins programs. But you’re right. I mean, obviously gold is fungible and it conceivably could be acquired anywhere. I don’t think that’s part of the problem. I think there is sufficient gold supply, it’s just the actual fabrication of the plantchets, for some reason that’s limited to three separate sources at the current time.

Ron Paul: Yea. It just seems to me, like I mentioned earlier in our hearings, that this problem seems to be unique to government. You know, if private industry is doing this, they just don’t run into this problem. Some of this, I think, just like the emphasis in 1985 to use domestic gold and all; I can understand that. But it certainly is very long way from a business person adjusting to supply and demand and doing it at the best price. There is no way that the government can compete with private industry in even making a coin these days. I was just wondering about how strongly you felt about that. But I really don’t have any other questions and I’m going to yield back my time.

  • ztT6Gkxx77

    What’s with that guy behind him staring at his head?

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  • combovergi

    dont buy gold coins 30-40% mark up here in the UK, not sold on weight alone they say their rare it not true.

    »crosslinked«

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    • Forest

      Don’t buy gold from the UK, tungsten-plated coins from Russia are running rampant.

      :O

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      • fred the protectionist

        Fiat gold, omg

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  • http://www.youtube.com/profile?user=DanI Dan I

    Is paper, redeemable in NOTHING, money?

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  • iannetta11

    Is paper, redeemable in NOTHING, money?

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  • ShawnHydedotcom

    Could one not make gold in to small pieces and mark them for size? It would not technically be minting coins so anyone should be able to do it. and unless they outlaw free trade then we should all be able to use them in trade yes?

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    • Forest

      Yep! It’s really that easy!

      Just make tons of coins in, what, roughly 12 sizes ranging from $0.01 to $100, carry around super-fine scales to validate another persons money, testing kit to insure that it isn’t just gold-plated tungsten, assay kit to insure it meets minimum purity standards, train all cashiers everywhere, retrofit cash registers, lets go back to mailing cash for all of our monthly payments, and things will go SO MUCH SMOOTHER.

      Genius man, just genius.

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      • Machine

        To funny…your dispute is more a sign of ignorance and fear. Our current system has created a deep economic crisis, irresponsability, coruption, and a worthless dollar. As far as worring about conterfit coins…people do that with our current currency…10’s and 20’s are the most popular to pass off. By the way what kind of buisness do you do?

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        • Forest

          Really? So when you buy a movie ticket you pass off a gold shaving that is 99% pure and weighing exactly 1/120th of an ounce? Is that EXACTLY what is happening right now?

          Your groceries come to $60, after you ride your horse and carriage into town, you somehow found one farming collective that not only has everything you want, but also takes gold. You just shave off 1/20th of an ounce?

          You worry about my ignorance and fear, don’t. I worry about your intellectual depth, as your spelling and baseless rhetoric, combined with a historical lack of knowledge and current business climate, is a sign of a horrible public school system, which concerns me far more than our existing, functional, fiat system.

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        • Forest

          “Our current system has created a deep economic crisis, irresponsability, coruption”

          So, tell me where, and when, this utopian system existed that you so dearly yearn for?

          Where is this model of a large-scale society that exists, or has ever existed that had no corruption, no crisis EVER, completely stable, absolute responsibility, all costs and risks (owner, worker, enviornmental, societal) are equally shared – please, tell me where this ideal libertarian society is so that we may immediately model ourselves after it.

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        • fred the protectionist

          *shaves off a sliver of gold from my rock and gives it to Forest* You’ve earned it. lol

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  • TheBrotherMouzone

    Can someone explain to me in detail what it means in Congress to “yield back one’s time”? Does it mean he just wasted the time, or will it be accummulated so he can talk more on a different occasion later?

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  • RebelRouserMC

    In short form,, to be a successfull buisness person in the USA these days, you have to learn to rob and steal from everyone else..

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    • Forest

      Right.

      Hey ‘Rebel’. Why don’t you go door to door at local businesses in your state and just ‘tell them like it is’ and that they are all just ‘robbing and stealing from everyone else’ and YOU ALONE know how to make it right. AMEN REBEL!

      Your corrosive, juvenile attitude is a joke.

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      • Machine

        And you sir are a ignorant impotent obtuseminded boob, that sits back sucking on the tit of a corrupt government. Your obedience to this government is proof you do not value the virtues of Life Liberty and the pursuit of Happiness.

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        • Forest

          What the hell are you talking about?

          Seriously, Rebel says (sic) to be a “successfull buisness person in the USA these days, you have to learn to rob and steal from everyone else”.

          Clearly you don’t work, otherwise you just might take offense to offensive drivel such as this. If you want to go door to door and tell good, hardworking people they are only successful because we rob and steal – I pray you don’t darken my door.

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        • Machine

          Oh I work, I work 60 plus hours a week. I own a small buisness, I’m a teacher, and I am a freelance writer/photojournalist. And no I don’t take offense to the truth…Based on my own perspective through simple observation and experience over 38 years…I share rebels sentement.

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        • David

          Hehehehe, good post machine, i don’t have a lot of interest in the gold topic but i do check your posts when they come up on the board and i see you’ve been getting into it with Forest as well. I’m pegging him as a banker or something similar as that’s about all he could be from the statements he’s made on here. He obviously doesn’t live in the real world, and there’s no possible way he could be involved in anything useful.

          You and i on the other hand are involved in very useful and beneficial things as are most people in this country, and we do live in the real world and have sense enough not to believe the crap they are spouting as most others do too. Actually there are only two people on here whom i’ve noticed at any rate, who are defending the status quo at this point, and these are Forest, “the other david” the banker, and then of course Fred who believes them LOLOL. The simple fact that they are here is the best evidence that we could have that what we are doing is working and that they are living in absolute terror of you and me and the rest of the American population at this point, and hopefully you and me and all those like us can make sure that that terror was well justified as well.

          Always love your posts machine. Its interesting to know what you do as well, your definitely someone whom i would find very interesting and love to have as a friend. I guess we already have come to be so on here already. :)

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        • Machine

          Howdy David,

          Thank you for the compliments…I enjoy reading your posts too, you have “helped” me gain a greater understanding regarding the banking system and the Federal Reserve…I just downloaded information from the LudwigVon Mises Institute about “money” very educational, interesting and even historical. I am going to make it, along with books by the late great historian and social activist Howard Zinn, as a part of my required reading, and class discusion for my students come fall.

          I just became a member of the Oath Keepers and, Campaign for Liberty…how about you? I am looking forward to attending the Campaign for Liberty seminar this August in Orlando.

          Keep on Keepin’ on!

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        • David

          Hi again Machine. I was just checking this thing before going to bed. Well heck it looks like were on opposite sides of the country unfortunately.

          Yeah Mises is interesting, I haven’t been through it in great detail, i know there’s some good historical information there, but the theories seem to be missing the point and as usual trying to figure out how to make an economy work within the constraints of a banking system by switching to hard currencies thinking this will result in “honest banking” which in and of itself is an absolute contradiction in terms. It’s sort of like this buddy i had when i was a kid who broke his arm one summer when he built himself a set of cardboard wings and tried to fly off the garage roof, no matter how hard he flapped those wings he still hit the ground. As long as we tolerate the parasites in any way shape of form, eventually we have to fall down hard.

          I’ve just been working off common sense here, with a decent understanding of science, engineering and useful production, and looking at history and what has worked in the past as opposed to following any form of established economic theories. As per past discussions your well aware of what i think. I guess the only person who’s come up with any form of economic philosophy which would be even close would have been C. H. Douglas, who was a British engineer who applied standard engineering principles to economics. I think what he came up with is more complicated than things need to be and also included some aspects which i wouldn’t agree with such as price adjustment which would be completely unnecessary as the system would take care of this naturally through supply and demand and with proper currency distribution using inflation as the limiting factor, but he did have the right idea in terms of a national dividend to allow the population itself to buy the full value of our production and promote the increase of that production instead creating artificial shortage to buy power for Banks. To quote from Wikpedia “He published his observations and conclusions in an article in the English Review where he suggested: “That we are living under a system of accountancy which renders the delivery of the nation’s goods and services to itself a technical impossibility.” [3] The reason, Douglas concluded, was that the economic system was organized to maximize profits for those with economic power by creating unnecessary scarcity.” and this pretty much sums up the past and current situation as well.

          What’s interesting to note here, is that not one of the economic systems which did work were designed by economists. Franklin was a businessman, and a scientist, Hitler was a military dictator with ambitions to rule the world, and Douglas who again was promoting a free public currency with a national dividend to enable the people to actually buy the full value of that countries production was an engineer, and although his philosophies were really gaining ground at one point the banks managed to kill them off before anything could be accomplished to bring them about. Oddly enough there have been several orders from the Catholic church who have been and are actively promoting Douglas / Social Credit economics, and although i have no great love for organized religion this would definitely make them our allies in this as well. Anyway, the practicality is that Douglas was absolutely correct in his statement as we’ve all seen evidenced in front of our faces, and as opposed to an economic theory, his work was based on coming up with a tangible and practical means to resolve the “technical impossibility” for the benefit of a general population, as was Franklin’s which it did, and although this was not Hitler’s purpose, he made things work toward his ambitions through the same method, and every time it was done without banks.

          Keynes on the other hand was an economist, also British, and advocated massive government spending (loaned from the banks) as a solution to all economic woes. We’ve all seen the result of that, and this is what Obama subscribes to as well.

          Anyway, its something for you to check into, and it might be something to introduce your student to in order to get them thinking outside the box. :)

          BTW, My father was a high school teacher for 37 years and operated a small farm on the side. He came home with a story one day about this kid who swallowed a live frog on a $ 10.00 bet where the damn thing didn’t die and ended up hopping around in his stomach through the afternoon. Dad knew something was wrong with him and the kid finally couldn’t stand it anymore, told Dad what he had done and they ended up hauling him off to the hospital to get the frog out of him. LOL I’m sure you have a few stories of your own as well. :)

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        • Forest

          David says: “He obviously doesn’t live in the real world, and there’s no possible way he could be involved in anything useful.”

          Ohhh, pulling that Real ‘Merican crap? Please. Maybe I’ll pull the race card and our idiocy can negate each other.

          ‘Forest’ is not my given name, it is my business, not government, office.

          Now that we set your ignorant stereotype on end, ‘I live in absolute terror’?!?! So Paulites now have gone ‘bunker mentality’ huh? What is this, an ideological Waco? Now you think I am afraid? Riiiight. You think phrases such as what I have listed below are:

          A) So true they frighten me because of their accuracy and harken to a forthcoming economic rapture for which, even in my decades of being a prosperous businessman keep me completely unprepared
          OR
          B) Frighten me due to their violent, angry, uneducated nature

          I’ll give you a hint, it sure as hell is not ‘A’.

          Rebel says: “to be a successfull buisness person in the USA these days, you have to learn to rob and steal from everyone else..”
          Machine Says, while defending Rebel: “I own a small buisness”
          My Take: Rebel, meet Machine. Machine, meet Rebel. Machine has clearly been robbing and stealing from everyone else, Machine is the enemy, Rebel.

          OurTimeIsOut says: “Is the valueless dollar even made in America anymore?”
          My Take: I bet OurTimeIsOut uses dollars EVERY DAY for valid business transactions. How he thinks it is ‘valueless’ is rampant idiocy.

          Bottomline: “Because they want to opress (sic) us with a piece of paper”
          My Take: Yep! That is all it is, ‘suppressing us real ‘mericans who work in ‘real ‘merica’. Nothing about basic economics such as trade deficits and flow of funds, really, every gold standard ever has failed – BUT NOT THIS NEXT TIME. You know better than that – you read a blog! You listen to Ron Paul! Don’t mind those lerned’folks – they know nuttin.

          Machine says: “I just downloaded information from the LudwigVon Mises Institute about “money””
          My Take: The hell? You have been arguing about economics and haven’t even read Mises? Truly arguing from ignorance up until now huh? Or just taking your philosophy from the gut, scripture and ayn rand?

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    • David

      I’ll second Machine’s post Rebel, i do share your sentiment as well. I expect that Forests strong objection is due to the fact that he’s probably one of the ones doing the stealing. The local businesses he speaks of are not making money either because those doing the stealing have removed it all from the system, and left us nothing to conduct legitimate business with. The guy’s grasp of reality leaves very much to be desired to say the least.

      I’m going to give you a link to a conversation that some of us had on here about this which details the problems and solutions.

      http://www.ronpaul.com/2010-07-09/majority-of-americans-believe-obama-is-a-socialist/comment-page-3/#comment-115818

      There’s an a lot of us on here and everywhere else who are working very hard on criminalizing the theft, taking back whats been stolen, and establishing a free and legitimate economy where the only way to make money is by providing something of useful benefit to someone else, and it seems to be starting to work. Come help us make it happen.

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      • Forest

        David starts his own conspiracy theory: “I expect that Forests strong objection is due to the fact that he’s probably one of the ones doing the stealing.”

        Can’t keep a good conspiracy theorist down – when confronted with facts and real-world examples, attack them personally!

        By the way, you guys are getting all messy with your attacks.

        Rebel says: “to be a successfull buisness person in the USA these days, you have to learn to rob and steal from everyone else..”
        Machine Says, while defending Rebel: “I own a small buisness”
        David Says: “I expect that Forests strong objection is due to the fact that he’s probably one of the ones doing the stealing.”

        David, according to Rebel, and Machine, Machine is the thief who is doing the ‘stealing’ here. I’m just a hard-working ‘merican from the heartland.

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        • David

          And what kind of work would that be Forest ?

          Some of your statements have been bordering on insanity here and elsewhere, expecting the unemployed to establish work for themselves when even long established businesses are dying because the banks have pulled all the money from the system that we need to trade with. Your thinking is so far from reality that there’s no possible way you could be involved in anything real. If some way, some how, you are, and are actually involved in something useful, then you are the single and only such person i know, on here or in person, who has not figured out that we need to kill our banks if we are to survive, and if so it is beyond comprehension that you could think as you do.

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        • Forest

          David says two things:
          “when even long established businesses are dying because the banks have pulled all the money from the system that we need to trade with.”

          “who has not figured out that we need to kill our banks if we are to survive,”

          First off, David. Since when did hard-working ‘Mericans need a big-ol bad bank to work hard and prosper – you did say “established businesses are dying because the banks have pulled all the money from the system that we need to trade with”? You just need an idea or a skill, since when did Austrian economics begin requiring a bank, and thus availability of debt, to facilitate trade? Can’t you just pick yourself up off your bootstraps, come up with an idea, and make this a better country?

          Stop depending on banks and do it yourself.

          Then David says “who has not figured out that we need to kill our banks if we are to survive”. Wait, so at first you blame the banks for not extending credit (read first quote), now you want to kill them ‘in order to survive’? Is this some sort of an Oedipus complex? Don’t you know what history considered the tale of Oedipus – yes David, more than a little tragically confused.

          If I were you I would stop now, you are somehow managing to do nothing except FURTHER embarrass the concepts of Austrian economics – which is amazing considering they are embarrassing enough on their own.

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        • fred the protectionist

          “we need to kill our banks if we are to survive”

          Are you a Libertarian or a Communist?

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        • David

          Forrest your posts are so far beyond ridiculous, that there not worth responding too, but for the benefit of the very few here who may not have figured this out already, you have defined the problem very precisely in your post.

          In order for an economy that involves anything beyond local barter to function, we need a uniform means of exchange in order to trade with each other on a widespread scale. What we need is a free public currency, produced simply and only to facilitate trade and maximize production for the benefit of the population, instead of credit issued by banks which can only buy progressively more power and wealth for them at the expense of that production and the population.

          We sure as hell don’t need banks for the economy to function, and the fact that it isn’t is due to the fact that we have tolerated them for far too long already, but we do need an adequate means of trade, which can be introduced into the system in something other than the form of debt. For those very few who have not figured this out already, there it is.

          Fred, the standing Libertarian philosophy is “austrian economics” which makes the assumption that switching over to hard currencies would create “honest banking” which it never has and never will as such a thing is a contradiction in terms, so although i agree with many of their political philosophies, i can’t call myself a libertarian. Since Communism / socialism is simply the final evolution of bank controlled capitalism where the banks have managed to accumulate 100 % of the countries wealth for themselves leaving nothing for the people, and then establish the political power to keep it permanently, i cant qualify as one of those either. I guess i’m just an American who loves this country and would like to see its population do what they need to do in order to have the chance to secure their freedoms and create the abundant prosperity which they are actually capable of creating for themselves, without the influence of the F’ing parasites that you and Forrest defend to prevent them from doing so.

          As i said Forrest, you say you work, now answer my question, what exactly is it that you do ?

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        • Forest

          Huh David?

          “We sure as hell don’t need banks for the economy to function”

          OK, so where do people save your utopian ‘barterable non-money assets’? With the Knights Templar? You won’t have to pay for those services, right?

          How will you pay for everything that isn’t ‘bartered’? I mean, no banks means no checking accounts, you going to mail slivers of gold? That should work. Man, travelling will be FUN! It’ll be like the old west all over again!

          “but we do need an adequate means of trade, which can be introduced into the system in something other than the form of debt.”

          Like… Money?

          Ludicrous. Your musings are so ludicrous they make Mises seem sane.

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        • David

          http://www.ronpaul.com/2010-07-09/majority-of-americans-believe-obama-is-a-socialist/comment-page-3/#comment-115818

          Department of the Treasury, which we need to actually do their job and create the public currency and be the public bank, as opposed to abrogating that responsibility to the private banks as they do now, its a simple thing, and its been well discussed in that conversation, but you obviously can’t think and understand anything outside the tiny little box which has been defined for you to think within. You and fred are in good company LOL.

          It was done by the American colonies in Franklin’s time and worked magnificently, and it seems pretty much everyone involved in anything useful is figuring this out, and those are whom this would benefit as well. Everyone but you and fred and you never will.

          It seems like your contradicting your own posts, first you expect people to funcition without money and then you ask how they will pay for everything, ridiculous.

          As i asked before, you say you work, what exactly is it that you do ?

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        • Forest

          Fantastic. So the answer to limiting government is…

          “Department of the Treasury, which we need to actually do their job and create the public currency and be the public bank”

          BA-DUM

          Have a bureacracy control it all! Yay! Big government wins again!

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        • David

          No, make public things public so that the rest can be private and functioning for the benefit of the population. Right now we have an enormous government that represents the private interests in control of the public currency at the expense of the people which is exactly the cause of the huge bureaucracy they need in order to maintain that power, and the one guarantee we have is that things can only get worse instead of better.

          Fortunately, and you still haven’t answered my question as to what you do, i expect you will be out of business as you have to be making money by manipulating money in some way in order to think as you do and at such a point it will no longer be yours to manipulate, only such a person would object to something like this, and these are the ones which i and many others here are out to destroy as well.

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        • fred the protectionist

          “We sure as hell don’t need banks for the economy to function”

          If you said this in the 1990’s, the Libertarians and neocons would call you a Communist.

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  • SturmKorps

    7:20 why is that LMAOing behind him ?

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  • JD4x4

    I need to find this entire session’s transcript. As I read the law it is ILLEGAL for the mint NOT to produce these coins “in such quantities as the public may demand”. In fact I raised that with my rep in Congress when the mint stopped producing fractional gold coins when gold was at $900.00 an ounce a while back. I have a letter back signed in behalf of Mr. Moi stating that yes, they must be produced by law, but referred me to the fact that they were still selling proofs, so not in violation!

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  • NewAmericanOrder

    God bless Ron Paul. A true American hero in real life.

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  • brown55061

    1971 was the time we removed the last ties to a bullion backed US dollar. Ever since then the dollar has lost over 90% of its buying power. If you disagree, you have never bought anything from a store. 1970 Camaro Z28 was ~$3500 new, today that same vehicle is $27-30,000. Devalued trashed dollars buy less.

    Gold is rare, as are most all minerals. If you are required to back every USD by SOME metal, it stops a treasury from over printing dollars and creating inflation. The solution is simple.

    Like or Dislike: Thumb up 1 Thumb down 3

    • fred the protectionist

      Wrong, inflation wasn’t invented in 1971 cause the magical gold standard disappeared.

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    • Forest

      Only on Ron Paul… ‘How my folksy anecdote on the 1970 Camaro z28 proves the fact that there is inflation.’ Jeezus.

      So, champ, how about instead of a Camaro, you used… Say a computer? Hmmm….

      So a 12.5 mhz computer was $4.6 MILLION in 1970, now a 1600 mhz computer is $550.

      By my example, extreme DEFLATION of the dollar has occurred and we need to FIGHT DEFLATION OF ASSETS!

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      • fred the protectionist

        If you notice, computer development has been exponentially increasing in computational power/quality while the price has remained stagnant or has actually lowered. The core processors (hardest part to manufacture) are actually made in the USA or Germany (Intel and AMD respectively), while other components like memory or keyboards and power supplies are made with cheap foreign labor.

        The core processors cost just as much, or is cheaper, than the power supply or keyboard. Meaning the easiest to manufacture component of a computer is made with cheap foreign labor and it is the most expensive to purchase. Free Trade at work I guess.

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  • gunsandbullhorns

    He’s correct. At the time “regulate the value thereof” was written—which was prior to the Marginal Revolution—the term “value” meant composition. …in that context.

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  • nathuwjohn

    They want us to fill out 1099 for anything we buy or sell that is greater than $600 per year; GOLD & SILVER. They are looking to start this January 2012.

    We need to call our Representatives and tell them NOPE!

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    • Libertarian777

      and firearms over $600 too.

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      • fred the protectionist

        You don’t understand the concept of inflation. Irregardless of the level of inflation inflation is always exponential, therefore every generation thinks it is outrageous because the concept of the exponential is beyond their thinking capabilities.

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  • roger767

    I love this guy. You guys need to vote for him. I cant cuz im Dutch.

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  • JohnnyDizm

    Does Ron not know that gold is inherently worthless?

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    • GB

      Expound, please.

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    • Libertarian777

      do YOU know that US $ is intrinsicly worthless? it’s just paper.

      Pennies are worth something though, cost > 1c to manufacture

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    • Forest

      Does Ron Paul know that he is ‘intrinsically worthless’ too?

      Like or Dislike: Thumb up 3 Thumb down 1

      • fred the protectionist

        I don’t think he knows that. He should.

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  • benytink

    Mr Ron Paul such a true patriot.,love this man,RP..JV FOR 2012 my dream ticket!!

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  • hergs

    I don’t get what Paul is advocating for here. Is he suggesting that the Mint should be expanded and properly funded to produce their own planchets again? Or is he suggesting that we should outsource more American jobs to overseas planchet makers? He seems to be advocating for both at the same time. Article 1 Section 8 is very explicit that the government is tasked with this job. What do you all think?

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  • republicunderground

    guy laughing behind Ron Paul priceless 7:17

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  • BeantownJim

    The U.S. Mint outsourceing the production of gold bullion coins?Did i hear that right?

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  • eeepictures

    who’s the guy staring at Paul?

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