91 responses to “Currency Wars: A Race to the Bottom of the Inflationary Barrel”

  1. mjl1621

    I don’t think you can trust either politicians or private banks to control the money supply because they will always be more interested in carrying out their own agendas through abuse of the money supply than to do what’s best for the country. Ron Paul supports a competing currency standard backed by commodities, with weighted gold coins issued along side paper, so the people have the option to opt out of the dollar if the politicians abuse the currency.

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  2. mjl1621

    I don’t think you can trust either politicians or private banks to control the money supply because they will always be more interested in carrying out their own agendas through abuse of the money supply than to do what’s best for the country. Ron Paul supports a competing currency standard backed by commodities, with weighted gold coins issued along side paper, so the people have the option to opt out of the dollar if the politicians abuse the currency.

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  3. Joseph La

    I know not what others will say , but as for myself , I would be willing to put my back to the wheel and help push start our economy when it crashes , however I realize that there is much too much damage for one person to fix , So with Ron Paul as President getting us back to the Constitution and ensuring a free market enviorment while Vice president Ross Perot or someone very much like him works to bring back manufacturing to the US< < anything less this than this will cause me to walk

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  4. jhunted7667

    I know not what others will say , but as for myself , I would be willing to put my back to the wheel and help push start our economy when it crashes , however I realize that there is much too much damage for one person to fix , So with Ron Paul as President getting us back to the Constitution and ensuring a free market enviorment while Vice president Ross Perot or someone very much like him works to bring back manufacturing to the US< < anything less this than this will cause me to walk

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  5. tnexmarinecop

    “that excludes things, such as Food and Energy”. Oh my God. Who needs food and energy??

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  6. Dfens

    Ron Paul’s “sound money” is a pipe dream. We can’t have commodity backed money and run at a continual trade deficit. What are we going to do, borrow commodities and use those borrowed goods to back our money? That’s absurd! Let’s get our trade deficit under control first.

    Here are important key facts on why the Trade Deficit now threatens our future:

    1) First and foremost, there is absolutely no history that shows that any country including the U.S. can long sustain large yearly trade deficits without putting its future at risk. However, there are instances where empires have fallen due to trade deficit failures including the 17th Century Spanish Economy and a trade deficit was partially responsible for the fall of the great Roman Empire .

    2) In the last 10 years the trade deficit has averaged $0.55 trillion. The U.S. Trade Deficit since 1971 is over $7.5 trillion and $6.5 trillion in just the last 20 years. By comparison, the national debt is now about $13 trillion.

    3) This year the current trade deficit through May is $0.170 trillion on track for about $0.4 trillion. It’s only lower than average due to the lingering modern recession. The NAFTA (from 1993 through 2003) free trade agreement displaced a reported 879,280 jobs. Since the entrance of China, the U.S. has lost another 2.4 million jobs. The two combine for about 3.5 million total jobs lost due to the free trade policy allowing for these large deficits. This number is growing as more and more outsourcing is occurring. Last year 60% of the U.S. trade deficit was with China.

    4) The free trade deficit profits have allowed foreigners to buy up America. According to the Grant Thornton report, “total assets at foreign-owned companies increased 15% to $9.2 trillion in 2005 from $8.0 trillion a year earlier and was more than three times the 1996 total of $3 trillion. Foreign-owned assets totaled just $37 billion in 1971″.

    5) Foreign-owned companies in the United States have a work force of about 5.3 million, or some 3.5% of all workers. According to the last note (2005), they owned 15% of all U.S. businesses but only employ 3.5% of the workforce. Extrapolating this to 100% ownership (that we are on a crash course for) this would only equate to 25% employment in the U.S. This is our future.

    6) Most of the U.S. trade deficit is with China and their ownership is the largest share of U.S. businesses and debt. Thus the U.S. is slowly being sold mostly to China from trade deficit profits dollars obtained from U.S. consumers.

    7) The U.S. has a national debt crisis of about $13 Trillion. However with the massive trade deficit job losses, this author estimates lost tax revenues of about $1 trillion dollars. Thus the trade deficit contributes significantly to our national debt. Free trade is really not free!

    8 ) We have a viscous cycle, we outsource jobs, increase unemployment, this creates tax losses, the U.S. goes further into debt from these lost tax revenues, the U.S. must then sell more treasury bonds to China and foreigners, consumers are forced to purchase more and more foreign imports with few U.S. made alternative products, this enables foreign to make huge trade deficit profits, which allows them to purchase more U.S. businesses and debt, foreign owned business pay far less taxes then U.S. equivalent businesses and hire fewer American employers, this creates higher unemployment and more tax losses, and the cycle continues.

    9) Economic global greed is excessive; the U.S. free trade policy encourages foreigners to cheat as every country wants a piece of America. Well known is unethical trade deficit problems related to: Currency manipulation by U.S. trading partners, 2) Excessive Job outsourcing by U.S. businesses, 3) Product subsidies by foreign governments, 4) Unfair non tariff trade barriers by our trading partners, 5) Lack of intellectual property rights protection, and 6) Product counterfeiting.

    10) Because of these massive trade deficit tax losses, this is like a reverse tariff that U.S. citizens must pay on trade deficit goods. These lost revenues cause increase tax programs. Every citizen must pay more taxes which means in part we are actually supporting all the unethical foreign greed issues cited above. — Economy in Crisis

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  7. jtube740

    Im not an expert economist by any means, and I am a huge Ron Paul fan, but after watching documentary “The secret of Oz” I have changed my views of what monetary policy should be. I still agree with Ron that the congress should control monetary policy but I disagree on the gold standard. The gold standard would just leave the power in the ultra rich that control the gold market and gold reserves. Money doesnt need to be backed by anything, just the supply of currency needs to be controlled

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  8. economic historian

    I’m not advocating the inflation. What I said was that after the greenback inflation during Civil War, the U.S. adopted a deflationary policy, back to the prewar gold parity. Ron Paul advocated this in a Interview to FoxBusiness (published here), without having weighed the pros and cons of that measure. Ricardo never would advise a government to restore a currency which had been depreciated 30 per cent to par.
    Mises and Hayek warned us about the problem deflation. If we want return to sound money, we must doing rightly, without repeat the errors of past.

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  9. pretorious700

    The sad inescapable fact is that Bush and Greenspan, and now Obama and Bernanke, have sold out the American public because of their personal hubris. They are of the mistaken notion that they are smarter than the market, that their Ivy league degrees enpower them to ignore reality. They have nothing to lose-the elite power structure have outlets not available to average Americans.

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  10. Akillesblood

    If I was the elite I would inflate a little more and when gold hits 10000 then I would exchange my gold for currency and gain commodities. After I had all that I wanted I would stabilize the economy and get gold back down to 500. Then I would simply buy more gold. And repeat.

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  11. Jack

    Hi to all,

    There’s been much going on behind the scenes. This email is to notify all of us that Saturday will be the first broadcast live of my new radio show, “mike montagne on mathematically perfected economy and absolute consensual representation.” The 3-hour broadcast will be available live from http://www.tnsradio.ning.com at 3 PM to 6 PM Pacific Time. Please notify your friends, who can listen in from a live link at the top left-hand corner of the TNS Radio home page. You can also tune in directly from any iTunes installation by clicking the Advanced menu… Open audio stream… and tuning in to the URL: http://184.82.19.16:8300/listen.pls.

    Warm regards,
    mike montagne

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  12. How?

    How return to sound money? How avoid the deflation? Already we know effects of inflation, but we must avoid only not the Inflation, but the deflation also. According to Mises, both are bad: deflation as inflation. Deflation never played a noticeable role in economic history. The effects were deflationary, when the United States return, after the wartime inflation of the War of Secession, to the sound money. Calamitous economic hardships resulted from this deflation; they stirred social unrest.

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    1. GB

      Sound money does not cause deflation, only dis-inflation.

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      1. debate

        If “Sound money does not cause deflation”, this should subject of debate to Ron Paul, because in a Interview, he advocated the transition to gold after Civil War, that was a deflationist policy, when the U.S. returned to old parity before war.

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        1. GB

          Fine. My point here is that, whether you call it deflation or disinflation, the “calamitous” effects are likely due to the correction of a problem caused by unsound money, i.e. bubbles. If we had sound money the whole time, there wouldn’t be the need for the corrections.

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        2. Brian Handey

          Deflation is not a bad thing. It’s good for the American people. Prices go down and your money purchases more product. People are conditioned to believe inflation is a good, natural part of the market, but it’s not. The exact opposite is true. When the Amazon Kindle came out, it was $349. Now you can get them for $189, and the newer versions are better. That’s because there are more produced, which in turn, cranks up the buying power of the dollar in relation to the kindle. Prices were deflated. This is a good thing. We get a better product for a lower price, Amazon sells more, so its profit margin remains steady, and everyone comes out ahead. That is the free market. Deflation isn’t a bad thing, contrary to what some “experts” tell you.

          The free-market, when allowed to function, wins every time. Sound money would prevent inflation, which would cause price deflation as popular products were mass produced.

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  13. Emir Babic

    systemdownfalldotorg – Fuck The System

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  14. rim3

    systemdownfalldotorg – Fuck The System

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  15. cherokeedoll1

    Ron Paul, why wont they impeach obama before its forever to late ? I dont understand why that man is still in office

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  16. Ken Abromowitz

    The Federal Reserve needs to go away, that’s for sure. Of course, this is not likely to happen, but in lieu of that I would like to see someone at the Fed with the same philosophy as Paul Volcker. Raise the Fed Funds rate/Overnight rate to 10% for a start.

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  17. HardKnocks60

    The Federal Reserve needs to go away, that’s for sure. Of course, this is not likely to happen, but in lieu of that I would like to see someone at the Fed with the same philosophy as Paul Volcker. Raise the Fed Funds rate/Overnight rate to 10% for a start.

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  18. economic historian

    In 1873, the United States returned to sound money. The results of this measure were bankruptcies, unemployment, contraction credit, thus, the economic chaos.

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    1. GB

      If this happened, maybe it caused an artificially grown bubble to burst, as took place when the Great Depression. Don’t blame sound money, blame the reasons it’s needed.

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    2. Brian Handey

      The panic of 1873 was due to an over-investment in the railroad industry, which was encouraged by government land grants and subsidies. Just like an over-investment in the housing market today. The coinage act, which depressed silver prices, and the fact Ulysses S. Grant was selling gold for greenbacks, didn’t help matters. It wasn’t because of sound money, but instead due to over-investment which led to bank failures when Ulysses S. Grant contracted the money supply with a poor monetary policy.

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    3. Ross

      Economic Historian,the crime of 1873 was the war between the elites who wanted gold to be the currency as apposed to the ordinary folk who wanted the freely available silver to be the currency.Ron Paul is only talking about having a % of our currency being backed by precious metals to stop the counterfeiting of the US Federal Reserve.They are the real crminals.They create new money to equal GDP which is not theirs.The extra GDP growth belongs to all Americans,not to a select group of banksters.

      see http://secretofoz.com/ by Bill Still

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  19. RonPaulWI

    1 Dislike? – Was Bernanke or Obama here?

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  20. Koolance

    youtube is hiding videos, not showing hardly anything from today , what B.S, u upload date and get 2 to 3 vids come on youtube , u belong to the wrong side u pigs

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  21. koolance2012

    youtube is hiding videos, not showing hardly anything from today , what B.S, u upload date and get 2 to 3 vids come on youtube , u belong to the wrong side u pigs

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  22. jeremy8080

    What’s with the one thumbs down? Was Bernanke here?

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  23. croissantanyone

    Hey, this isn’t American Idol!

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  24. Dfens

    Here’s your “new world order”. Communist Red China manipulates the “free” market while people like Ron Paul call for the “unilateral elimination of tariffs”. Ron Paul’s definition of “free” is we will soon all be “free” to serve his masters in Communist China. Hey, as long as he got his 30 pieces of silver, why should he care?

    Japan’s Kyodo news agency reported on Wednesday that an unidentified diplomatic source in Beijing had said that rare earth shipments to the United States and Europe were being held up by customs officials for tighter inspections, one of the explanations that customs officials have also given in blocking shipments to Japan for the past month. But John Clancy, the trade spokesman for the European Commission, said in a statement on Wednesday that, “at this time, we cannot confirm claims made by European industry officials in media reports of China blocking rare-earth shipments to the” European Union.

    The signals of a tougher Chinese trade stance come after American trade officials announced on Friday that they would investigate whether China was violating World Trade Organization rules by subsidizing its clean energy exports and limiting clean energy imports. The inquiry includes whether China’s steady reductions in rare earth export quotas since 2005, along with steep export taxes on rare earths, are illegal attempts to force multinational companies to produce more of their high-technology goods in China. — New York Times

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  25. NorthStar20121

    2012.

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  26. PandoraLeigh

    If the Fed. is announcing another 1 trillion in QE, wouldn’t one be prudent to increase precious metal holdings knowing that their price is guaranteed to increase? Is it possible to even know the amount of increase with the knowledge of the QE quantity over a given time?

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  27. kmg501

    Ron Paul is more optimistic than I am. Barring a very serious administration shake up or intense pressure by congress, I’m pretty sure that the next 20 years of life in America are going to be the worst of our nation’s history.

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  28. SweeterThanKisses

    giday from oz…lol usa currupt,,lower there buck put gold up with our buck then say invest in gold as alot advertising was spent..so the gov can get money back,if it was unsafe to pull it from banks they wudnt say this….

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  29. sweetpete420

    i live in Canada, we depend on a lower dollar to keep our exports competitive, recently the u.s dollar was at PARITY with the Canadian dollars. The American dollar is losing its value.

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  30. jhunted7667

    My warning is to not to allow the Government to confiscate your Gold because they will replace it with worthless paper and when the time comes to restart the economy should it crash we would have no real captilal to do it,

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  31. Aanthanur

    oh well, more teabagging nonsense from Dr. Paul, damn i respected that man.

    bye bye unsubscribe ,

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  32. ha38bb1

    I work at a Bakery and yesterday we raised our prices from .75 to .85 cents a piece. I then asked my coworker how much doughnuts cost 9 years ago when she first started working there and they were 59 cents a piece. This is gonna cause a chainreaction of priceups.

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  33. uturniaphobic

    ironically the money concept and its value is the only tool bankers and the like have to keep all us sheep acting right. so destroying it will surely unsettle the sheep.
    thanks Ron!

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  34. Citizen

    The New World Order and a New World Currency !

    That’s just where we are heading given the “quantitative easing”…
    Which is FED speak for
    >>Crank Up the Cyber Cash, full steam ahead and ignore the icebergs ahead!

    Start buying silver ounce coins as savings tokens!

    DO NOT keep your money in Fed Reserve Notes!

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    1. Forest

      “DO NOT keep your money in Fed Reserve Notes!”

      I’ll give you two shiny quarters for that ugly Federal Reserve Note.

      –> How you separate a Libertarian and his money.

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  35. How?

    Dr. Ron Paul.

    How return to Sound Money?

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    1. Forest

      Good luck getting a framework with actual details. You’ll get a bunch of gibbberish such as:

      “We need currencies that compete on the free market”
      “We need commodity-backed currencies”
      “Let markets control everything, because they are so magical and wise”
      “Don’t worry about the complexities that come with having multiple currencies, this is all a hypothetical thought process intended to sucker people in, it’s not a feasible solution in the least”
      “Ignore that if we have multiple, competing currencies, Ron Paul just re-started the MoneyChanger profession”

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    2. Brian Handey

      “In times of change, the Patriot is a scarce man; brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot.” – Mark Twain

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