Ron Paul: End the Fed, Legalize Competing Currencies

Without the Federal Reserve there could be no welfare state and no warfare state, and that’s just two of the compelling reasons why we need to end the secretive and unaccountable institution’s financial monopoly as soon as possible.

Date: 09/29/2010


Eric Bolling: Hello, America, and welcome to “Money Rocks”. You know, yesterday we did a whole show about gold. Well, there’s more to the story. A real quick history lesson about where gold has been. 1880 to 1933, the US currency was on what was called the “gold standard”. That means every paper currency that we held was tied to a piece of gold. FDR killed that in 1933. 1944, Bretton Woods Agreement – fix the price of gold and also fix a basket of world currencies tied to that gold price. Guess what happened? Everyone around the world starting hoarding gold. We were quickly running out of gold, so in 1971, President Nixon “nixed” any ties to the gold standard.

Why is gold precious? A couple reasons. No. 1, jewelry demand, investment demand, and this one right here, guys, the fear, the perception of what is to come. Give me that full screen. Here is where the demand comes from for gold. Here’s all the gold ever mined by humans in the world. Only 163,000 metric tons that would fit under the Eiffel Tower. 51% of it is in jewelry. 18%, “official” sector. That means government’s holding gold. 17%, investment. 12%, industrial. And this one, the 2%, unaccounted for.

That brings us to today, in a situation where people are flocking the gold and leaving the dollar. What does that say about the status of our currency? What does it say about the status of our country? What if people no longer had faith in paper money and carried around anything, anything but dollar bills in their pocket? Congressman Ron Paul of Texas has been asking these tough questions longer than anyone on Capitol Hill. He thinks the answer lies in the Federal Reserve that is spiraling out of control. He joins us from Washington, D.C. Thanks for joining us, Congressman.

You’ve been talking about…

Ron Paul: Thank you.

Eric Bolling: … eliminating the Fed for a long time. That means eliminating the Fed printing presses but then, Sir. Then, Sir, how do we pay for all the spending?

Ron Paul: Well, you have to ask how did we pay for it before 1913. You have to pay your bills by spending less money. You can’t have a welfare state. You can’t police the world. You can’t have a warfare state. Government has to change. But if you want big government, you have to have a Federal Reserve and just think of what’s happened since 1930. I mean, we have had tremendous increase in government and it really exploded after 1971.

You know, before 1971, we had less than $1 billion measured by M3. Today it’s over $14 trillion. The price of gold is not going up. It’s just the dollar is being devalued and some people have this silly notion that a weak currency is good and that’s all our federal government doesn’t – even Bernanke admits he wants inflation. He’s looking for it because that’s the way you pay your debt down. That’s how you default on sovereign debt. So to me, it’s wicked, because the people get cheated. They get cheated out of…

Eric Bolling: Right.

Ron Paul: … their savings. They get low interest rates. So it’s a wicked system and it was never meant to be, and it’s coming to an end. That’s what people have to realize.

Eric Bolling: Well, Congressman, I think you’re alluding to, when you say “that’s how you pay your debt”… If you were to print a bunch of $100 bills and people held on to them under their mattress, eventually, those $100 bills would be worth less and less. Therefore, there’s lesson of commitment by the government. But here’s the question, Sir. We need the currency. What do we do? We’re still going to need dollars. They still have to go to the corner and hail a cab, and pay with a $20 instead of a $5, that they may have done 20 years ago.

Ron Paul: Yeah. Well… I mean, they did it before. They paid with coins but even in the modern age with the technology, you don’t have to. I mean, there are exchange rated funds now. You can exchange gold over the internet. So, yes, there would be substitutes and there could be certificates. We had gold certificates. It’s the limitation of the Fed to print and create money that is the purpose.

Eric Bolling: But, Sir…

Ron Paul: People didn’t log heavy gold around their pockets. They carried silver certificates in my lifetime. You know, in 1965.

Eric Bolling: What’s the difference? There’s the question. What’s the difference between a silver certificate and a $100 bill, the Benjamin’s stamp on the front?

Ron Paul: The big difference is they can’t print a silver certificate without having the silver. So it restrains the monetary authority. It retrains the counterfeiters. It restrains those people who want big government. See, Conservatives want big government for some reasons. Liberals want it for other reasons. But they work hand in hand. They work together because they both brought about the Fed. They like the Fed to monetize debt. That’s the purpose of the Fed. But they get us into trouble. Over these many decades, the Fed has gotten credit for the good times and when we had a recession, they got credit for getting us out, and it was all an illusion. They should get all the blame for the bubbles and all the blame for the inflation, all the blame for the unemployment. And now, the secret is out. People now, main street Americans are walking up and they know there’s something strange about the Federal Reserve.

Eric Bolling: Well, Congressman, let me ask. I think what you’re trying to tell me… Tell me if I’m reading this right, is that we have to go back to the gold standard, go back to a Bretton Woods type agreement where you say everything we print better have some sort of value to it other than just a seal of the US.

Ron Paul: Well, we need a gold standard but the Bretton Woods was deeply flawed. Henry Hazlitt wrote about that back in 1945 and said it wouldn’t work because there was too much license. We weren’t even allowed to own gold. Yes, we should have a gold standard. We could start off by obeying the Constitution: only gold and silver can be legal tender; no emitting bills of credit, which is printing press money. But today we know a lot more about monetary policy than we did in the 19th century. We had bimetallism then. We had silver and gold fixed at 16 to 1. But, that wasn’t the market. So there’s a lot of things that we can do but the most important thing is have money of real value. Paper money never last. All paper currencies end…

Eric Bolling: Congressman,…

Ron Paul: … badly and that’s what we’re in the process of doing right now.

Eric Bolling: We’re going to run out of time with you, Sir, but one of the panelists last night had what I consider a pretty darn good idea. Instead of tying the dollar or the dollar bill, or the US currency to an ounce of gold, tying it to some form of energy. Whether it’s a barrel of oil, a gallon of gasoline, something that’s a little bit more fungible, probably a lot more available to us. What do you think of that idea?

Ron Paul: Well, I would let the market to determine it. I believe in competing currency as I would legalize that. That wouldn’t be legal under the Constitution but I would think it’s incorrect to say it’s more fungible. The reason gold is money because it’s naturally fungible and you can convert it. If I want to check on you, if you’re the banker, you’re the government and you’re there to issue me a certificate, I can’t go and get a barrel of oil from you.

Eric Bolling: But, Sir, here’s the difference. Here lies the difference. If I wanted to hoard gold, I could probably do it myself. But you can’t really hoard barrels of oil because they’re hard to store. They’re too big.

Ron Paul: Well, that’s good. That’s why it won’t work. You have to be able to get it. And the gold coin standard is the most important because governments cheat. You can’t trust government. And if you have a gold coin standard, you always can check on the politicians to make sure they’re not cheating us. And that’s why you want a gold coin standard.

Eric Bolling: Congressman Ron Paul from Texas, we appreciate your time, Sir. Thank you very much.

  • momsstickytoes

    I dont know how Ron Paul can get away with the LIE “Fiat money is to blame for everything unemployment, recessions.”
    The recessions before fiat money were far longer, deeper and more constant.


  • Douglas

    The only way to End the Fed is behind ‘Closed Doors’. The American people cannot comprehend what has taken place and nether do many of our Congressmen. Ron Paul knows the Fed is the problem but still does not tell US the full answer to the problem. Reinstating the ‘Gold Standard’ is defiantly not the answer. That would create a major crisis overnight, one that would cause a ‘Gold Rush’ of insane proportions.

    By ending the Fed without the public knowing the economy could be brought ‘Swiftly’ back to a positive effort. However, this would require a brilliant cabinet of well seasoned economists and futuristic thinking civil engineers. Counter acting the ludicrous effects of total insane issuance by the Federal Reserve is not an easy task. Furthermore; asking Congress to ‘Do Their Job’, listen to their constituents, and Issue them the NEW currency they need to keep the economy going would require the re-education of Congress , which would not be too difficult.

    The fact is that the Private International Bankers have already served the US up to China and Hilary Clinton has signed the ‘Eminent Domain Agreement’ That means ‘when’ the US economy fails to repay China then China will have legal Eminent Domain to take any land, city or industry for payment they choose. However, if China declares war on the US than all claim are off unless taken by force.

    LISTEN ‘The International Bankers DO NOT CARE’!!!!!!!!!!!!! They have no Allegiance to any Nation. The Nations of the World are Their ‘Subjects’. The more we fight each other and blow each other up the more they stand to knowingly benefit.

    However, they will loose control just like they did with the Hitler experiment. This time it will be the Final End of them for good! The Final day of the last ‘Beast’ of their creation is upon them and will consume them all. However, it will take a large part of our civilization with it. That is OK. We will rebuild.

    The International Bankers are like little children playing a game where they do not have to worry about any ‘Accountability’ because they are the supreme controllers of everything. All the Nations are theirs to exploit and manipulate. What ‘World Government’? They already have one! All that is left is for the Nations to be managed by the ‘Socialistic’ UN implementation of ‘Share or Die’ land and resources management. They have everything they feel they need to complete their plans.

    Accept for one thing, the Hearts and Minds of Americans. That is why they must destroy America first and show the world that their will be no more Yankee saviors and you all must bend to their will. Hitler saw what they were planning to do ‘With Him’ and turned on them and created his own ‘sick’ version of a Global Socialistic Party.

    We can play “Politics’ all day but in the end it all comes down to who has Money and who Controls Money.

    • Douglas

      On the other hand there is in fact a’ Sleeping Giant, of US Citizens that do understand what true US Monetary Policy was supposed to be. I looked deep into US monetary history and found that it has been a rollercoaster since the US Revolution started. The rest of the World needs to understand this because they have all been adversely affected by this.

      However, they all know well the positive Hallmarks influenced by the US. For example, Patents, Copyrights and Trade Marks to state the ones I feel now truly influence the topic of our discussion. Although other ones have been adopted that work too, like, Freedom of the Press, Freedom of Speech, Freedom of Religion and Equal Rights before the Law. These Hallmarks have been so well receive that they without question accepted the Federal Reserves Private Control over US Monetary Policy.

      This is a Great International Problem. Not for the Private Central Bankers, cause they own and control ‘Not Only’ the ‘Federal Reserve’ but ‘many’ ‘Private Central Banking Systems throughout the world’. So, if the US fails to stay on their knees before ‘The Federal Reserve’ then they will simply let if fall and be consumed by another Nation.

      China and Russia called for a ‘World Currency’ because they know what the International Bankers have always dreamed of and want to benefit from this. However, courting the ‘Kings of the East’ is not as easy as taking advantage of as was the US. The US was the most lucrative society they have ever had the pleasure of exploiting. So much so, that they were able to use many other Nations to exploit the free markets of the US. However, this is a double edge sword.

      There is only so much exploitation they can do before it catches up with ‘Natural Laws’. Then balancing out the unnatural over production and consumption results in chaotic consequences. They are Masters at manipulating their way through these’ Chaotic Consequences’. Playing out that they can solve the problem with ‘Socialism’ is a cheap cop out. No one can escape the ‘Natural Laws or the Universe’.

  • Gassebol

    ….and we need to make the chinese to start to buy our stuff. The balance of trade is out of control. Soon we can not even pay the intrest on our national debt.

  • chelonia1663

    Gold is NOT solution. Mr Paul does NOT offer solution but more of the same. Think!

    There is only one and one solution for inflation, deflation, en the disposition of our currency. That is Mathematically Perfected Economy. Search it

    Trust me. Our Money, Our Rights. We do not need banks. Also no RP Austrian competing banks

  • chelonia1663

    Gold is NOT solution. Mr Paul does NOT offer solution but more of the same. Think!

    There is only one and one solution for inflation, deflation, en the disposition of our currency. That is Mathematically Perfected Economy. Search it

    Trust me. Our Money, Our Rights. We do not need banks. Also no RP Austrian competing banks

  • ImNoTLeavin2Day

    “You can’t trust the government” coming from a politician… If Ron Paul isn’t the remedy to everything wrong with the U.S. then there just isn’t any hope. RP2012

  • roseagain2

    Ron Paul wins again!

  • sillynanny44

    Libertarians #FTW

  • sillynanny44

    #lol #LOL

  • chaseef

    Goldbugs can send me all the hate they want, but I think Friedman had the right idea: all currencys freely floating, along with gold, competing with eachother. Then when governments get stupid, and do what they always do and ruin the currency, the people can go to gold.

    The monetary issue is so complicated, and I dont know what the perfect system is. Neither do the gold bugs.

    Besides, the massive deleveraging would destroy the structure of production and maybe billions would starve.

  • chaseef

    It is not true to say that gold restrains the government. It only does so in theory but the government finds ways to inflate anyways. Just look at monetary history: there are countless examples of gold currencys being debased, even in the united states.

    I like gold, and own gold, but it is not some panacea for all our problems.
    Governments will debase anyways.

  • RobertB

    “…you will have created an engine of inflation…”
    Elihu Root, debate in Congress re creation of Federal Reserve System, 1913.

    A few days before the Federal Reserve act was passed Senator Elihu Root denounced the Federal Reserve bill as an outrage on our liberties and made the following prediction: “Long before we wake up from our dreams of prosperity through an inflated currency, our gold, which alone could have kept us from catastrophe, will have vanished and no rate of interest will tempt it to return.”
    …From McFadden speech, 1932

    “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”
    -President Woodrow Wilson
    (reflecting a few years following his signing of the Federal Reserve Act)

    • Citizen


      Excellent “pithy” blog contribution.

      Wilson knew full well what the FED was, a License to Steal!

      FDR STOLE our gold and gave us Fiat Paper and Social Security.

      LBJ gave us Medicare and Massive Entitlements, to steal our savings

      Obama & Palosi gave us the coup de grâce, Socialized Medicine, to end our suffering and steal our dignity.

    • Michael Summerfield

      Well argued by “the available evidence suggests that the quote is an after-the-fact fabrication made by splicing together passages of different Wilson statements that have nothing at all to do with the Federal Reserve.”

  • chisler000009

    This was a pretty impressive segment considering it came from Fox. I’m impressed.

  • doford

    Ron’s a bit naive thinking the gold standard could work alone. Currencies based on production and energy would be great.

    • Libertarian777

      he’s not thinking about the gold standard alone. He talks constantly about competition in currencies act.

      Each state / company could issue its own currency backed by whatever they wanted. In the constitution states (presumably the federal government too) are restricted to coining money in gold and silver only, so legally states would actually be restricted in having gold/silver backed coin. However any other private company could issue currency backed by whatever they wish (e.g. a palladium miner could issue palladium coins).

      There are practical limitations though to pricing alternative currencies, so inevitablly a de facto standard currency would emerge.

    • Citizen

      Its much more than a “gold” standard, its a method of removing the governments systematic practice of generational theft by counterfeiting.

  • Mike Montagne (perfecteconomy dot com) has made enormously important contributions to the awakening of the many towards the most pressing problem of our time, our monetary ’system’. And most of all he is the only one I came across that offers real solution with his Mathematically Perfected Economy model.

    Most analysts concentrate on the fact that money is debt. There seems to be some kind of consensus that debt is the heart of the issue. But it is not. Without interest, debt would not be a problem , as I worked out here.

    Interest is one of the few things that is more profoundly understood in Europe,
    more specifically, Germany. Throughout the 20th century interest has been
    analyzed by some unknown, but brilliant thinkers. Silvio Gesell comes to mind,
    Gottfried Feder and later Helmut Creutz and their current standard bearer
    Margrit Kennedy. Feder wrote a book ‘breaking the shackles of interest’ and
    later advised Hitler, who was to say time and again, that ‘the kernel of National
    Socialism is breaking the thralldom of interest’. Maybe that did some damage
    by association to the theme.

    It is curious to realize, when studying Hitler, how close he came to the truth in
    his analysis (which was, no doubt, inspired by exactly the enemies he was
    purported to attack). It is mind boggling to realize how much the bankers were
    willing to give away and how they entrenched their supremacy by totally
    destroying him and his credibility. Be that as it may, it is time to make fully
    clear what the scale of the interest problem is. We need to get rid of any
    misunderstanding, let alone underestimation of this most terminal tool in the
    hands of the bankers.

    Dealing with Interest
    We’ll go through this point for point. Some points will in some way overlap
    others, but they are still worth mentioning because they widen our perspective.

    1. To begin with, I’ll put forward my standard example: a mortgage. Let’s say
    you want to buy a house and go the bank and get a loan. Say 200k. The
    simple truth is, after thirty years you will have payed back 600k. 200k for the
    principal and 400k (!!) in interest. Now this might be ok, or at least somewhat
    understandable, if you were borrowing this money from somebody else, who
    has been saving it. But as we know, this is not the case. The money is
    produced the moment the loan is granted by the bank. In a computer program.
    By pressing a few buttons.

    So basically you pay 400k interest for pressing a button. Granted, the bank
    needs to manage the loan during the time it is being repaid. But the cost for
    this is still only a fraction of the income they get through the interest.
    Now, we could stop here, because it is clear that the bank is ripping us off,
    also in legal terms, although they make the laws themselves, because there
    is no realistic service being delivered for the money.
    But there is so much more, we must continue.

    2. When the bank creates some money by giving you a loan, it takes the
    money out of circulation when you repay. Repaying debts means a
    diminishing money supply. The banks only provide the principal, in our
    previous example 200k. But after thirty years, 600k has been repayed and
    only 200k was created. So how can this be? How can 600k be repayed by

    It can’t. Somebody else needs to get into debt to create sufficient liquidity to
    pay the 400k interest. And the borrower of the original loan must start
    competing for this liquidity with everybody else to obtain that, intrinsically
    scarce, cash.

    This means that because of the combination of debt and interest, the money
    supply must grow forever. But we know that a growing money supply is the
    definition of inflation and that inflation is closely linked to rising prices.
    So inflation is inherent in the system. This sounds strange, because
    Central Banks raise interest rates to lower inflation, reasoning less credit
    will be issued because of rising prices for it. But the higher the interest
    rates go, the more money must be created to pay for this interest.
    Just one of the perverse side effects of interest in the current wealth transfer
    system we call ‘finance’.

    3. Due to interest, money circulates slower. This is a big problem, because
    the slower the money circulates, the more we need of it in circulation to meet
    our needs. And when you have interest bearing money as debt, that is quite a
    problem indeed.

    The reason for slower circulation is that it enhances the store of value function
    of money, with all it’s detrimental implications.
    This phenomenon can be best seen when thinking about paying bills. If you
    know you can increase your money by postponing paying your bills, you will
    help the money circulate slower. People will be encouraged to hoard the money
    instead of spending it.

    It is also more likely because of this reason rather than the growing cost of
    money which lessens inflation (or better, price rises) in the short term when
    raising interest rates. Because less money is circulating slower, demand falls.

    4. Now, because of the fact that the principal is created but not the money to
    pay the interest, money is intrinsically scarce. Because of scarce money,
    capital is the scarce factor of production, whereas reason has it that labor
    should be the scarcer than capital. How else can we say we live in abundance?
    I think it was Lietaer who pointed out the natural consequence of this state of
    affairs: competition. Economic actors in the current system compete with
    each other primarily for scarce working capital.

    Scarce money is a major driving force in the ever more competitive
    marketplace. Of course, the winners of this system have their lackeys
    (‘economists’) explain that competition leads to efficiency. But common
    sense dictates that humans are more effective when they can cooperate.
    Surely there is a place for competition in the market, but it has gotten
    totally out of hand and it is getting worse.
    Scarce money because of interest is one of the more profound reasons for
    this trend.

    5. So what of it you think. I was raised to be conservative in these matters
    and one should simply not get into debt, so you won’t pay interest.
    Wrong. Not only because if nobody went into debt, there would be no money,
    but because companies go into debt to finance their production. They pay
    interest (capital costs) over these loans. And like any cost this must be
    calculated into the prices they ask for their goods and services.
    And what percentage of prices can be related to interest? It depends on the
    kind of business, particularly how capital intensive it is. Going from 12% for
    garbage collection to 77% for renting a house. All in all about 40% of prices
    can be traced back to costs for capital. These figures are by Kennedy and
    they have been corroborated by an independent study done by Erasmus
    University, Rotterdam, the Netherlands under thesupervision of STRO,
    a leading monetary think tank in the Netherlands.
    So, you lose 40% (!!!!) of your disposable income to interest through prices.

    6. Interest is being payed by people borrowing money and received by people
    having loads of it. So it is per definition a wealth transfer from poor to rich.
    It transpires, that about 80% of the poorest people pay more interest than
    they receive to the richest 10%. The next richest 10% pay as much as they
    receive. This means the vast majority is losing a substantial part of their
    money to interest. The richest own the banks or have a lot of money there.
    We must keep in mind that this is totally for nothing, since most of the
    money is printed at the time it is loaned out. How much money are we
    talking about? I have only figures for Germany, but reason suggests it is
    basically the same everywhere. In Germany the poorest 80% pay 1 billion
    Euros in interest to the richest 10% PER DAY. Yes, that’s right, one billion
    euros per day. That is a grand total of 365 billion euro’s per year. That is one
    seventh of German GDP and extrapolating this to America, the poorest 80% must be paying at least a trillion a year.

    It conclusively explains the old adage that the rich get richer and the poor
    get poorer.

    This is the hidden tax that nobody is talking about.
    This is the yoke that we carry.
    This is the worst kind of slavery, because it is slavery without even realizing it.
    This is interest and let it never be forgotten.

    This is our mortal enemy and let us never take our eyes of it again, until it is
    thrown into the fire of hell, together with the usurers enslaving us with it.

    • Citizen


      With all do respect,

      you wrote: “without interest, debt would not be a problem”

      My savings have no merit?

      My wealth has is no Free Market value, other than what Math Perfect Econ says, or should I say DICTATES, what it’s worth?

      Your statements imply that MY WEALTH becomes property of the collective states “debt” , thus I’m not entitle to earn income, (interest) on my hard earned SAVED efforts?

      Each according to his ability, each according to his needs?

      Is resistance futile, Stuart Chase?

      • Dear Citizen,

        What would you rather have:

        1) Receive interest under the current system where your savings are loosing value every day.

        2) Not receive interest and the value of your money remains constant?

        Mr. Paul´s pretended solutions also fall under cat. 1

        Receiving interest on your money is part of the scam. Give a little, take lots!
        People won´t complain about it because they also receive interest on their money. What a joke!

        Imagine an independantly run/managed (chosen, controlled by the people) MPE Currency office (much like the fed but controlled by us) issuing our promissory notes interest free. Non profit, and paid by some of the tax money (taxes would be so much lower, trust me).

        That is the PRIMARY medium of exchange platform. We can park our money with those offices, and we can lend money at those offices. Interest rate free with our production/labor as backing and our credit worthiness. We loan, and we pay back principal in a (non) lineair way as we consume from the product, or as per how much the product depreciates over time.

        So, you are credit worthy and you want to buy that $20.000 car. Our (from the people) MPE office grants you the loan for the car because the car has a free market value of $20.000 (same as it happens now). You pay the 20k to the garage and pay back for the next 10 year (lifecycle of the car) 2000 a year. After 10 years the 20.000 has been retired out of the circulation. No inflation, no deflation.

        However, you are free to receive (or pay) interest on your money but not through our (from the people) MPE office.
        There will be instances where people are not granted a loan and those people can turn to the SECUNDARY market which we leave to the Austrians (RP competing banks and such)!

        I asked Mike Montagne to jump in here as he can better describe all of this and answer any questions, but he is extremely busy right now with the new website and the Global Amandement to make this all happen. Give him another couple of weeks and when we have everything live he will be available for further comments.

        Btw: I have never ever seen a post from Mr. Paul in this forum.

        • Citizen

          To my friend Jack,

          YOU SAY: “Immutable” currency…
          There is NO such concept in the know physical universe.

          YOU SAY: “contractual obligation”
          is what the US Constitution guarantees We The People, but the FED has violated that “obligation”
          repeatedly to the tune of 5700% inflation since 1913.

          YOU SAY: “the remaining volume of units of circulation must at all times equal the volume of remaining value of the
          ALL the products which the circulation is intended to represent,”
          That’s a mouth full and an paradoxical impossibility.
          First off, currency “circulates” assets do not. You can have money or assets (both are wealth) but you cannot have both simultaneously, that is unless you’re practicing FRACTIONAL RESERVE BANKING and then you can lend the same dollar 10 times over, our Current Problem.
          This has never existed in time or space, and I doubt could ever be CONTRIVED much less sustained by even the most DRACONIAN RULER alive. The concept would require a VIRTUAL Economic Super Computer that would instantly balance inequities of financial values; a condition that doesn’t even exist in our natural biosphere. Houses or land are not FUNGIBLE

          YOU SAY: “represented property out of circulation as the value of the property is perceived to be consumed, or to depreciate.” This statement ASSUMES that the “value of property” is STATIC, ergo that there are no Free Market forces that dictate the value of property in a time and space reference and based upon consumer use/demand only. EXAMPLE: two houses built 1975 for $100k, one in Beverly Hills, CA. the other in Flint Michigan. They both “depreciate” on the books however one is now worth “value of property”, $2.5M and the other is < $8k (salvage value of lot) YOU SAY: “someone would have received circulation for nothing.” Thus you assume that both houses would, or at least should, have the same ending value over time, but they DO NOT! And yes… People who SAVE often DO “”receive value for nothing”” BECAUSE they have reserved value (savings) and good timing. YOU SAY: “if the effective volume of circulation is ever less than the volume of represented property, …; and someone will not have received and persisted in just reward for their production.”
          Herein lays the value of SAVINGS! A person who postpones consumption and saves has a different “Time Preference” and is able to TAKE ADVANTAGE (in time) when values of goods are cheap relative to his SAVED VALUE.

          YOU SAY: “Thus interest makes abiding by our necessary principles of immutable tokenization impossible.” People who choose to SAVE earn INTEREST regardless if you’re willing to pay it or not! They choose to hold currency that has INTRINSIC value, like land, energy, minerals, etc., which have INTRINSIC value but not IMMUTABLE value. If something is made plentiful (plasma TVs) then the price drops and its intrinsic value diminishes. If something becomes scarce, food, water, shelter, gold, then its intrinsic value rises. NOTHING IS IMMUTABLE, except for God…. But that’s a whole other day.

          1. Your sounding like Milton Friedman, Chicago School Monetarist who sought to control M2 money supply in order to balance supply/demand forces. Problematic at best.
          2. “pay principal out of circulation” This is simply another term for CONSUMPTION, locking wealth into intrinsic assets. As things are consumed, demand entices suppliers to produce.
          3. “immediate conversion of equity into currency.” This last BURST BUBBLE (housing) disproved this notion with a loud THUD! Tens of Thousands of homeowners converted their false home equity to pay off credit cards, only to now be upside down with mortgages 30% higher then the value of their homes. When Mal-Investments run a muck and “equity” is INFERRED as in the hyper inflated housing market, corrections are inevitable…CRASH! A “Crack Up Boom” (LvM) occurs and HERE WE ARE!

          YOU SAY: “must eradicate all potential for systemic offense.”
          You’ve lost me here… What is “systemic offense”??
          Print more money??? Tell me it ain't so Tim Gietner

          YOU SAY: “tokenization must account for all products”
          Fiat currency IS TOKENIZATION and HIGHLY MUTABLE.
          Real Estate appraisers use a Mark to Market approach to valuate real estate both in good times and bad, and as WE all know, markets are NOT STATIC, much less IMMUTABLE! And neither is currency.

          Franklin’s Colonial Script was counterfeited with almost reckless abandonment, even under penalty of death,
          BUT eventually even that script went away when the silver coin act of 1794 was enacted
          and people dumped the script for REAL CONSTITUTIONAL MONEY.

          Gold and Silver COINS are hard assets with INTRINSIC value
          AND even currency value and even that value fluctuates with perceived human demand for the need to SAVE and PRESERVE VALUE.
          Gold is trading above 1,400 Fed Notes or MPE Notes (your choice), per oz but 6 months from now it may be 2,500 or 800 notes depending on how poorly or well helicopter Ben predicts and reacts to the market.

          Frankly I think he needs to raise the Discount Rate 500 basis points immediately,
          But what do I know, that's "interest"

  • Canuck Puck

    The announcer was about 80 percent right 20 percent skewed.
    Ron Paul speaks the full truth. here is some quotes to prove it,

    “Fiat money, in extremis, is accepted by nobody, Gold is always accepted. ”
    Alan Greenspan

    “Permit me to issue and control the money of a nation and I care not who makes its laws.”
    Mayer Amschel Rothschild

    “One actual Commodity unit in an investors hand is more secure than a leverage 1oo to one unit played against an investor.”
    Dr Vine L Dazaly

    • “We were not foolish enough to try to make a currency coverage of gold of which we had none, but for every mark that was issued we required the equivalent of a mark’s worth of work done or goods produced. . . .we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank.” -Adolf Hitler, 1937 (CC Veith, Citadels of Chaos, Meador, 1949.) “And it proved sound. It worked. In less than ten years Germany became easily the most powerful state in Europe. It worked so magically and magnificently that it sounded the death knell of the entire (Zionist) Jewish money system. World Jewry knew that they had to destroy Hitler’s system, by whatever means might prove necessary, or their own [system of usury] would necessarily die. And if it died, with it must die their dream and their hope of making themselves masters of the world. The primary issue over which World War II was fought was to determine which money system was to survive. At bottom it was not a war between Germany and the so-called allies. Primarily it was war to the death between Germany and the International Money Power.” –William Gayley Simpson, ‘Which Way Western Man’ (p.642)

  • falsedichotomies

    “You can’t trust the government.” Haha. Awesome.

  • RidleyReport

    To see my illustrated versions of Ron Paul’s speeches….click my name.

  • noyouaintgettingit

  • hq2345

    Ron Paul for president of 2012
    Rand Paul for U.S Senate of 2010
    We need true politicans in house and senate not a neoconsertve.