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.



style="display:inline-block;width:728px;height:90px"
data-ad-client="ca-pub-3666212842414688"
data-ad-slot="9478233584">

Likes(0)Dislikes(0)

267 Comments:

  1. Ron Paul is against amnesty! Gary Johnson is for amnesty!

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 3 Thumb down 1

  2. Ron Paul is against amnesty! Gary Johnson is pro amnesty!

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 1

  3. I AGREE!

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 0

  4. THERE IS NO WAY WE WOULD EVER VOTE FOR A SELL OUT THAT IS RUN BY ROGER STONE AKA GOP HITMAN! GARY JOHNSON LOST ALL OF HIS CREDIBILITY AND ALL OF HIS REPUTATION AS WELL FOR SELLING OUT TO THE WALL STREET BANKSTERS!: watch?v=0Y1egV2Q2FE

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 1

  5. Gary Johnson would NOT win at all because he is a sell out to the Wall Street Banksters! He is a controlled opposition run by Roger Stone aka GOP Hitman!: watch?v=0Y1egV2Q2FE

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 1

  6. RON PAUL 2012 / JESSE VENTURA 2012!: ronpaul2012dotnet

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 0

  7. COME ON PEOPLE! LET"S NOT GIVE UP AT ALL! IF RON PAUL RUNS AS AN INDEPENDENT ALONG WITH JESSE VENTURA AS VICE PRESIDENT THEN THAT WOULD BE GREAT! JESSE VENTURA WOULD ALSO WITHDRAW HIS ENDORSEMENT OF GARY JOHNSON AS WELL!: watch?v=0Y1egV2Q2FE

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 0

  8. Gary Johnson LIED to his supporters when he said he would NOT audit and abolish the Federal Reserve System at all! He would NOT abolish the Internal Revenue Service (IRS) at all!: watch?v=0Y1egV2Q2FE

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 1

  9. I AM WARNING ALL OF YOU PEOPLE! GARY JOHNSON IS A DANGEROUS GUY! HE IS A CONTROLLED OPPOSITION RUN BY ROGER STONE AKA GOP HITMAN!: watch?v=0Y1egV2Q2FE

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 2 Thumb down 1

  10. JFK had it right, no secret societies, no secrets. The truth will set you free?, so can America really be called a free country anymore? Was it ever truelly free? Does anyone really know what it is to be free? So the saying goes, "There are only two things for sure in life, death and taxes." Reverse it and thats a fact at least in Canada. So as far as i can see America's hooped, your presidential hope is bad or worse. Your states are mostly bankrupt and your country is in shambles, your voices are silenced by media and government, brain washing you, your parents, and your grand parents. I'd say take your country back but it has been so long in lies and deception you've lost what truth is. Your schools teach it, your system embraces it, your government uses it to govern you! Your country has evolved to system of brainwashed robots, God Bless America? says who? Pic a color and vote for the color at least it is genuine and you know it changes with the light. If you ever revolt start with the puppet masters as the new world order is upon you. Ron Paul could never change all that is wrong with America but eventualy the truth would set you free!, would take 1 or 2 generations to get back to reality.

    Take your country back! outlaw lies and deception, limit wealth, have universal health for all, cure disease don't treat it, laugh, love, live long be healthy and prosper!

    Without Ron Paul in 2012 as president it is less likely it will ever happen. The dark side won this battle but the war has just begun!

    If you read this congradulations! and Thanks! Cure your cancer!

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 4 Thumb down 0

  11. Correction: Americans have no hope, if they don't vote for Gary Johnson. It's not only them, but the whole world.

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 2

  12. he wasn't muzzled, he was being smart, keeping our options open, both as infiltrators of the GOP, and as LPers.

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  13. Paulbots have no hope.... lmao

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 3

  14. Sadly, Ron Paul said he will very unlikely run independently or join a third party. To all of you Ron Paul supporters, please vote for Gary Johnson!!! Don't say shit like "I'm still writing Ron Paul" because he won't win either way.

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 1

  15. Beep beep, must be destroyed
    Beep beep, bdtaq has no mind
    beep beep must be destroyed

    Happy now?
    Stupid is no way to get thru life
    wish you well but you're gonna have to put some effort in yourself

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  16. Why? Why would you say such a thing? Ron Paul is not muzzled. If he wanted to endorse Gary Johnson there is nothing keeping him from doing so. Where do you get off making endorsements in anyone's name but your own?

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 1

  17. Before people found out about the atrocities of segregation and discrimination in the south, Martin Luther King jr. was considered a trouble maker deviant from the south. Now that people knew what really happened, he is now considered a heroic figure who changed the course of American history for the better. Ron Paul may be considered a trouble making deviant from the south now but once people know what really is happening, he will also be known as a hero who changed the course of history.

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 2 Thumb down 0

  18. Folks- Ron Paul is done and he should be given the highest grade for his efforts to educate us and create this grass roots movement. I hope that you guys are not too hard on him for retiring, because he has earned a retirement. What do YOU plan on doing after 77?

    That said... the ONLY recourse is to immediately get behind Gary Johnson as the only true alternative to Romney and Obama. Don't write in Paul... if you do, who do you think will actually see that "protest" vote that it will actually have an impact on, and even if it did, what difference will it make in bringing change to the US anytime before 2016?

    VOTE GARY JOHNSON!!!

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 2 Thumb down 3

  19. I remember reading an article, years ago, which said that Saddam Hussein was getting ready to switch to the Euro to trade in oil. This was right before we invaded Iraq. I believe it was Forbes. I have tried to find the article but haven't been successful. Does anyone have a link?

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 2

  20. neither would have Ron Paul. that isn't what it is about. it's about making progress step by step, and keeping the liberty message out there.

    Gary Johnson and Jim Gray will do that.

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 1 Thumb down 0

Leave a Reply

Your email address will not be published. Required fields are marked *


× 9 = twenty seven

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>