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. Qvo Vadis America...?

    "Whither goest thou?" --- to be reduced to Vote for a Mexican Mormon or a Muslim-trained Kenyan...?

    No Real Americans (that built this Nation)...left...what a "Brave New World"....

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  2. sounds like you are jealous i was the first person to comment on this video. im glad it bothers you so much that you are trying to talk shit to me about it. i dont care what you think

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  3. Vote your conscience!

    But NEVER vote for the Rmoney!

    Mitt Rmoney must be punished for his Anti-American actions in getting the GOP to Lie, Cheat and commit Fraud on his behalf!

    DO NOT VOTE for this subhuman Creature — Cheater Mitt — or you’ll reward it for its PERFIDY!

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    • DNC=RNC=CCCP

      “The GOP is smarter than we” and so are the Democrooks!

      While, We The People, have hopes of saving our Nation — THEY, the GOP Elite, and DNC have none.

      We are idealistic — believers that Truth, Liberty and Justice will eventually prevail, thus saving US from imminent economic collapse and the loss of all freedoms!

      The GOP Establishment has no such illusions — THEY want to assure that ONLY THEY and THEIR OWN have first dibs on the choices pieces of meat, when the carving of the American People starts. THEY do not want rejuvenation of the Republican Party, nor is stagnation enough — PURGING is needed, so THEY are first in line to pick our bones clean when the economic collapse starts. (Same goes for the Dems in power).
      ——————————————————————————-

      We, the Real American People (the producers), are the HOST — and THEY, the Non-Producers, are the Parasites!

      While the Host was strong and healthy in the past — the parasites fed well with little notice on OUR loss.

      But, NOW the Parasites have become GREATER than the HOST — meaning in order to survive, THEY have to suck MORE blood out of US than we can produce for ourselves, let alone THEM.

      Realizing this, THEY are preparing the road ONLY for THEMSELVES and THEIR OWN to strip our carcass clean (after they’ve sucked US dry).
      ————————————————————————

      Now, back to working two jobs Real Americans, so you can produce some more to feed THEM longer…until THEY are finally ready to send you to the glue factory… (“Animal Farm” by George Orwell).

      ————————————————————————————–

      NEVER vote for the Mitt — this creature is an American Destroyer!

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    • Surfisher,
      So, who are you voting for??? Looks like Ben Swann is finally getting noticed by the mainstream media. He did an interview with Romney/Ryan and one with Obama this past weekend. Where do we go from here? Any thoughts. What are your thoughts on Gary Johnson??

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      • robin --- vote for anyone but CHEATING Rmoney!

        Writing Ron Paul IN --- knowing they won't count such votes, but assuring that Rmoney won't get elected and a Mormon Dynasty with his brood following his SICKENING Steps TO OWN THE GOP will be OVER!

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      • Robin,

        Give another look at Gary Johnson. Sure there are a few things we don't agree with him... but he is what is better after Ron Paul. The few things we disagree on don't really matters, since he wont win this time around. If he should win, these few things would be easy to correct since his followers would educate him.

        Voting for Gary Johnson, will make a bigger effect on the GOP, because they will know that if his popularity skyrocketed, it is because he got Ron Paul's supporter votes. Writing in Ron Paul will not be noticed by anyone. Voting for Gary Johnson will be noticed and the MSM will have to talk about it.

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    • How STUPID does the GOP Establishment think US to be --- not to SEE that "the vote" to pass despotic "rule" 16 (a) (2) WAS ALREADY PROGRAMMED A DAY AHEAD OF THE ACTUAL VOTE---Therefore, their Teleprompter ALREADY "KNEW" the "Aye" vote, BEFORE IT WAS SOLICITED!

      DO NOT VOTE for the Mitt --- The Creature that BOUGHT the RNC and GOP!

      Punish this Anti-American by refusing to support IT!

      (pause at 2:00 and advance to 2:05 to SEE This RNC Perfidy) --- spread this 2 minute video!

      http://www.youtube.com/watch?feature=player_embedded&v=77W5OKStO5s

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    • Sunfisher,

      Your correct....

      Now what are WE going to do about it????

      Neither party has a plan to improve the economy.

      We're stuck producing an ever smaller product
      and
      They will continue to suck an ever larger piece!

      It sucks to be us!

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  4. DNC=RNC=CCCP

    Great speaker, DNC deserves him: Bill Clinton, who Bombed the Christian Nation Serbia's Capital Belgrade — killing Christians to save Muslims…?…or his OWN SKIN from the Monika Lewinsky Scandal's media scrutiny!

    The last time an European Capitol was bombed was in WW2 by Hitler!

    Slick Willy did one better — BOMB them on their Orthodox Easter Sunday! (After all, they were only Christians…so, no-one could Politically Correctly object to Christians getting the shaft, since even having a Christmas Tree was not approved)! The BIG NO-NO was US warring on Muslim Hollidays (OK to kill Christians on Easter, but NOT OK to kill Muslim Terrorists on Ramadan…)!

    http://americandefenseleague.wordpress.com/2011/11/14/apologizing-for-president-bill-clintons-serbia-war-crimes/

    —————————————————–
    Ron Paul — the Greatest American of the 21st Century!

    Dr. Paul started the peaceful Intellectual Revolution — to save our Nation from a false 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)!

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  5. from what i have seen, benton text schiff and told him to stay away from paulfest because it was fringe and bad, and bad people organized it. i have yrt to verify that fully.
    regardless, using benton for your argument seems pretty shaky on several levels, considering his overall handling of the RP Campaign.

    however, i have seen the video you suggest and others as well. even if Gary Johnson is a total status quo infiltrator, he will not win, but will draw as much attention to the LP hopefully.

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  6. typical zionist sheep follower. lmao

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  7. Well I'm just telling you that everyone thinks that you're retarded. You act like that everyone is impressed that you got first comment on a video, well let me ask you this: why did your comment receive too many negative votes?

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  8. I disagree! That is the reason why Jesse Benton urged the Ron Paul supporters not to attend the Paul Festival at all because he knows that Gary Johnson is corrupted by the Wall Street Banksters and is a controlled opposition run by Roger Stone aka GOP Hitman! Ron Paul would NEVER EVER vote for Gary Johnson at all!: watch?v=0Y1egV2Q2FE

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  9. GARY JOHNSON FOR PRESIDENT!!!!!

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  10. lol youre a douche bag read what you just said hahah get the fuck outta here

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  11. the JP Morgan approved, Rockefeller funded Von Mises Institute ideology towards the gold standard is WRONG. its not solving anything to RE-give the power of money to them, unless you believe something retarded like the Fed's gold reserve becomes the new backing for the Amero or whatever shit comes of it. just look at gold prices lately! george soros is already bettin against this.. it's just more money changing and theyll crash it and squeeze more from you, to death. not eventually.. immediately

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    • aah geees, another greenbacker losing the plot.

      Listen to Ron Paul's interview on CNBC a few days ago and on Bloomberg. They ask about the 'gold standard' and he says "well ideally we'd let the market decide", but that he believes the market will come back to gold.

      Note, he is wanting COMPETING currencies, and, following 6,000 years of history, expects gold and silver to become de facto standards through market forces.

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  12. Ron Paulbot 2012 \m/

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  13. typical paulbot.... lmao

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  14. "Vote for Gary Johnson?

    Why not? No one will know. A good showing will put the GOP on notice that they had better be respectful to the Liberty Movement and make room for it. They made it clear they didn't want us. Shouldn't there be consequences?

    If the showing is small, well, they were lucky it was Gary Johnson, not Ron Paul. No harm done."

    -From Doug Wead's Blog

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  15. "Vote for Gary Johnson?

    Why not? No one will know. A good showing will put the GOP on notice that they had better be respectful to the Liberty Movement and make room for it. They made it clear they didn't want us. Shouldn't there be consequences?

    If the showing is small, well, they were lucky it was Gary Johnson, not Ron Paul. No harm done."

    -From Doug Wead's Blog

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  16. *lose

    And I agree, Ron Paul is awesome.

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  17. I love Ron Paul and would have voted for him. But, what planet are you living on? I want to go there with you.

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  18. please don't sound like Dr.William Price over some phone-shit. makes me think of Alex Jones. radicals.

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  19. RP said on Leno that he will be voting. He certainly won't vote for Obama or Romney.

    He will vote for the only liberty candidate left in the race. Gary Johnson. He has said very good things about Johnson. And even had Johnson stump for himself at Paulfest.

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  20. What does me watching Beavis and Butthead have to do with anything dumbshit? The only people that care about getting first comment are retards.

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