Ron Paul: Restore the Dollar




by Ron Paul

We frequently hear the financial press refer to the U.S. dollar as the “world’s reserve currency,” implying that our dollar will always retain its value in an ever shifting world economy. But this is a dangerous and mistaken assumption.

Since August 15, 1971, when President Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold, the U.S. dollar has operated as a pure fiat currency. This means the dollar became an article of faith in the continued stability and might of the U.S. government.

In essence, we declared our insolvency in 1971. Everyone recognized some other monetary system had to be devised in order to bring stability to the markets.

Amazingly, a new system was devised which allowed the U.S. to operate the printing presses for the world reserve currency with no restraints placed on it– not even a pretense of gold convertibility! Realizing the world was embarking on something new and mind-boggling, elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC in the 1970s to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence backed the dollar with oil.

In return, the U.S. promised to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic coup. This arrangement helped ignite radical Islamic movements among those who resented our influence in the region. The arrangement also gave the dollar artificial strength, with tremendous financial benefits for the United States. It allowed us to export our monetary inflation by buying oil and other goods at a great discount as the dollar flourished.

In 2003, however, Iran began pricing its oil exports in Euro for Asian and European buyers. The Iranian government also opened an oil bourse in 2008 on the island of Kish in the Persian Gulf for the express purpose of trading oil in Euro and other currencies. In 2009 Iran completely ceased any oil transactions in U.S. dollars. These actions by the second largest OPEC oil producer pose a direct threat to the continued status of our dollar as the world’s reserve currency, a threat which partially explains our ongoing hostility toward Tehran.

While the erosion of our petrodollar agreement with OPEC certainly threatens the dollar’s status in the Middle East, an even larger threat resides in the Far East. Our greatest benefactors for the last twenty years– Asian central banks– have lost their appetite for holding U.S. dollars. China, Japan, and Asia in general have been happy to hold U.S. debt instruments in recent decades, but they will not prop up our spending habits forever. Foreign central banks understand that American leaders do not have the discipline to maintain a stable currency.

If we act now to replace the fiat system with a stable dollar backed by precious metals or commodities, the dollar can regain its status as the safest store of value among all government currencies. If not, the rest of the world will abandon the dollar as the global reserve currency.

Both Congress and American consumers will then find borrowing a dramatically more expensive proposition. Remember, our entire consumption economy is based on the willingness of foreigners to hold U.S. debt. We face a reordering of the entire world economy if the federal government cannot print, borrow, and spend money at a rate that satisfies its endless appetite for deficit spending.



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267 Comments:

  1. Perhaps you should do as 22y32g9 stated and look up the Act of 1871. The "slippery slope" to where we are today economically speaking began with the Federal Reserve Act of 1913. Then came the New Deal, Bretton Woods, the "Great Society ", social security, the welfare state, "the Nixon Shock of 1971" and all the god damned war mongering/ world policing since WWII. Most of those domestic cluster fucks and much of the war mongering but for the assistance of EO & Federalism and fiat currency.

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  2. "Racist imbecile"? Where the fuck did that come from you dilusional prick? Let me guess I dared to besmirch Abraham Lincoln or worse yet I addressed the failure of Federalism and that would make me a racist? Give it a rest you dumb shit, political correctness is as much of a failure as Picket's charge & Gettysburg. Dumb fucks like you have cried wolf to many times and nobody is buying it anymore much like our Treasury bonds. Did you not notice the (politically speaking" part of my comment idiot?

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  3. "Racist imbecile"? Where the fuck did that come from you dilusional prick? Let me guess I dared to besmirch Abraham Lincoln or worse yet I addressed the failure of Federalism and that would make me a racist? Give it a rest you dumb shit, political correctness is as much of a failure as Picket's charge & Gettysburg. Dumb fucks like you have cried wolf to many times and nobody is buying it anymore much like our Treasury bonds. Did you not notice the (politically speaking" part of my comment idiot?

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  4. You racist imbecile. The national debt in 1866 was 2,773,236,173. The national debt in 1911 was 2,765,600,606.69. Go ahead and explain how there was a "slippery slope" when the national debt did not increase for nearly a half fucking century. You dumb ass.

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  5. Hey stupid, Ron Paul is a Texan. Romney will win Texas very easily. Ron Paul's vote does not matter.

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  6. Let's Restore the Dollar to It's Former Luster

    Audit the Fed then replace it

    For Ron Paul

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  7. Always good info.

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  8. That's right, pure gold... Let the snowball roll baby!

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  9. Take your government back and put Ron Paul on his deserved presidential throne. Bear arms and take your country back for your childrens, childrens future the time is now no more waiting!

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  10. Ron Paul — the Greatest American of the 21st Century!

    Dr. Paul started the peaceful Intellectual Revolution — to save our Nation from a criminal US Government that has FINALLY declared that We, The People, are NOW considered “their Enemy” (not some rag-tag band of crazy Muslims they want us to think have a chance to cross thousands of miles of oceans in… rowboats… to INVADE US)!

    Ron Paul started it — and We, The People, will finish it!

    True Ideas never die — so eventually — Bye, bye, NWO wannabe despots (NOW, We, The People, know WHO YOU ARE…and WILL END YOU)!

    Time to start organizing to win our country back!

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    • First Step:
      Do NOT vote for The Mitt

      Second Step:
      Do NOT vote for The BO

      Third Step:
      Vote your Conciseness (NEVER vote what you consider the lesser of two Evils)!

      Forth Step:
      Get Harry Reid removed from US Senate!
      -------------------------------------------------------

      That's just the beginning!

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    • Surfisher,

      You talk just like Alex Jones. This is exactly what he was saying today on his show. The people will crush these globalists scums. The people will WIN.

      ---------------------------

      Robin,

      I was thinking about you tonight while I was listening to the Alex jones Show. At the very beginning of his show he was talking about your friends (lol)... at least for 10 to 15 minutes in a row. How dumb down people have become. It was so funny the way he described them. I'm putting the link below in case you want to listen to that part.

      Later in the show, he described how MSM were deliberately lying to the people by a ruse they always use. Like the numbers of amnos that this government had purchased, 1 billions something amnos. MSM, took the last purchase that was only in thousands of amnos to say what are these conspiracy sites talking about? They are crazy... why worry for a few thousands of ammos? The sorry part is that most people will believe the MSM numbers... and not the real numbers of a billions and plus. I really enjoyed that show today. I wonder how your friends would have felt if they would have listen to that?

      Alex Jones Show: Sunday (9-9-12) Full Live TV Edition
      http://panoffolin.wordpress.com/2012/09/10/alex-jones-show-sunday-9-9-12-full-live-tv-edition/

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  11. New World Order Rising In The USSA

    We read about it, We heard about it, but now We have seen It's hideous face.

    It has shown to all, it does not care if We know the elections are rigged, whith it's in your face boldness

    I'm afraid our President has already been chosen, for US.

    Now that Ron Paul is out of the way, Its charade can play out.

    The only solution a REVOLUTION

    The only problem, it takes the type of Wild Guts, that I think the domesticated American Sheeple have lost.

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  12. There are many residual effects from the "Rebellion" of 1861-65 (politically speaking" that are still alive & well with us very much to this day. The fact that Constitutional government was never restored is one of them. Lincoln took us off the gold standard to fund the war effort and the debt that followed was the beginning of a slippery sloap down hill. Without Constitutional government perhaps Executive Order was essential during the "rebellion" but it has been used and abused ever since.

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  13. There are many residual effects from the "Rebellion" of 1861-65 (politically speaking" that are still alive & well with us very much to this day. The fact that Constitutional government was never restored is one of them. Lincoln took us off the gold standard to fund the war effort and the debt that followed was the beginning of a slippery sloap down hill. Without Constitutional government perhaps Executive Order was essential during the "rebellion" but it has been used and abused ever since.

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  14. Yes I've read before of the symbolism & significance of lower cased/upper cased lettering in documentation & how that pertains to the Constitution. When the Southern legislators walked out of Congress secession from the Union followed that essentially lead to the disolvment of lawfull Constitutional government and there is no evidence to lead one to believe steps were ever taken to restore Constitutional government after the "REBELLION". I believe this isthe real reason why Lincoln was killed.

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  15. French Canadian,
    Thank you for this information about campaign contributions. I went to opensecrets and they posted it for this year, and he did not have any banker contributions and my friend claims it's because the Democrats decided they didn't want them after the bailouts. Don't buy it but unless I find definitive proof, I can't bring this up. I obviously did get to the friend who posted this info. I shared this morning. She is anti=war, and I asked why she isn't up in arms about what Obama has been doing=went down the list. Also, about his executive orders. I also told her to investigate for herself=not to take my word for it. I've caught her in a dilemma that so many have in this country= inconsistency in their belief systems. So, I think that you can't give up because waking up does not happen overnight. It took me years. The other one who deleted my post about Obama will also read this as these two are friends.

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    • Good work, Robin!

      I never was the type of liberal (Democrat) person. I've always been a conservative (republican) person. But I always had a hard time understanding neo-cons... till I found Infowars and the Alex Jones Show.

      Boy, did I learn things out there. Everything became perfectly CLEAR in less than 2 weeks. That when I found out who I really was: A conservative / libertarian type.

      I believe that when people will understand that Democrats and Republicans are the same people... they will also realize that they are also conservative / libertarian types.. In other words: Conservative in values (morale, Constitution, family, religion, sound money)... and libertarians values (freedoms, rights and Free Market).

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  16. Robin,

    Scroll down, I gave you information on Obama's listing below, using the reply button.

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  17. French Canadian,
    I listened to that interview with LaRouche this morning and my husband dropped in to listen. First, he is very observant and knowledgeable and says this is not the same LaRouche he has listened to. We both were furious with Alex Jones who again interrupted the Ron Paul caller and completely misrepresented what he was trying to say. Nothing was said about George Bush or the CFR/Bilderberger group or Romney. My husband says it looks like the GOP paid this guy off because it doesn't sound like the same guy. So much missing from this exchange that is very important. He also did not agree with what they were saying about how Obama is another Nero, etc. Just went too far, and not far enough where it was important. No credibility for my husband who has studied everything he can get his hands on regarding what is happening on a global scale. He is very educated. He has been a seeker of the truth his entire life in all areas and they were never able to indoctrinate him in higher education.He has little respect for the "experts" as back in the 80's during perestroika and Gorbachev, there was a supposed coo to seize power and he immediately said it was all staged to reinvent Yeltsin to get the people to move in a new direction as they were going under financially and would no longer be a super power. All the experts even to this day have bought into this staged event. My husband started to look into it and gather information as he always does. When he went to study there and he shared this with well=educated students and scholars who were willing to share their feelings(bugs at the time, heavy surveillance, etc), they agreed and said many knew this was all planned. Control the opposition...As far as my husband being paranoid, he is very analytical person(math, science person and a critical thinker), so he does not trust someone like Gary Johnson based on where he stands on the issues. Most people would say the same thing about many of us on here=we are paranoid. I've been called that by many people I know.

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    • Robin,

      "My husband says it looks like the GOP paid this guy off because it doesn’t sound like the same guy.!"

      Lyndon Larouche bought? I don't think so. No one can buy Larouche.
      Besides, he is not for the GOP, he said they were no better. Larouche really believes that if Obama wins this one it will be over for America sooner than we think, since Obama works for the criminal corrupted British oligarchy. I agree with him on this. But if Romney wins, it will be a bit harder to destroy America as fast, since a FEW good men still exist in the GOP.

      As far as Alex interupting callers, he often does that. He talks so much during the Show, that in the end, it leaves almost no times for callers. Since he wants to take as many calls as he can, he rushes the questions. I hate when he does that, but that is one of his flaw that irritates me. But not enough to stop listening to the Show, since there is no other Show where you can learn so much.

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      • French Canadian,
        Basically what he was saying indirectly is you better vote for Romney because he is better than Obama. That is why my husband said what he did. It's what he didn't say that concerned him.

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        • Robin,

          I see what you mean. Maybe it is because of lack of time at the end. But Alex said he will have him back on the show in a very short time to continue this discussion... we will see then.

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  18. Here is an example of a well-educated high school teacher I know and why she supports Obama. Denial again is a powerful emotion. Anything that she is unaware of goes under the guise of conspiracy theory=or pure fiction-little fairies in her TV when I shared about the executive order that the government now controls all communications and what that means.
    Robin, I AM happy with what my president has been doing. He has a plan to end the war and is following through on it. He is getting healthcare (my passion!) moving the right direction. Equality is coming along as well, slowly. His vision is spot on and things take time. As to magic fairies inside of my TV, I'm not sure I care to take the time to look into that one. :)
    Then she got a friend into the exchange...
    Bobby -As to why I invited you into this discussion. Obviously, we have our financial bases on either side. But one of those bases is so obviously visionary while the other is obviously reactionary. And I can't believe that's your lunch table! As to decentralizing the gov't., I couldn't disagree more. You have a business background, right? Does it make sense to take 1 system (albeit a flawed one) and separate it into 50 different systems and honestly believe that this will make it less complicated and better? I don't think so. We should improve and streamline the single system we have. So again, this is why it will have to affect people personally who don't want to find out the truth, but hang onto their belief systems with a vengeance on both sides of the spectrum.

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    • Robin,

      Incredible! These people have drank too much fluoride and eaten too many GMO... their brain is severely damaged.

      Don't loose your energy with them, they are at the point of NO RETURN.

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      • French Canadian,
        When she posted something, I had to respond, but it told me she is too far gone although she is aware of the NWO and other things. I have another friend like her as well, so they will both have to learn the hard way as most of America will. They reinforce each other on those hot button issues. My other friend deleted what I posted because I know I got to her. She is in complete denial as well. Both creatures of the system=both educators that are idealists. They believe the government needs to take care of people and they protect us, and apparently don't know or want to know what is really going on in the Middle East or all the executive orders. Remember I said denial is so powerful and I see it more and more everyday with people I know. A close relative asked me the other day who was ahead in the polls, and I had to remind her what difference does it make because the elections are rigged. It was difficult for her to hear, although we got her to vote for Ron Paul. I know now she will vote for Obama and her husband will vote for Romney=although we got both of them to vote for Ron Paul. Still stuck in the dynamic as it is so hard to break. It took us a long time ourselves, so I have to remember this.

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  19. Google presidential order# 11110 by President J F Kennedy. Learn the truth.
    Google the Act of 1871 as well.

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  20. Thanks Surfisher, just watched the doug wead 21 minute video and i agree it was brilliant. It cleared up a lot of questions for me. I am still learning and will not give up the fight. Thanks again.

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