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. Gary Johnson is a phony Libertarian candidate!: watch?v=0Y1egV2Q2FE

    Ron Paul for President as an Independent with Jesse Ventura as Vice President in 2012!: ronpaul2012dotnet

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  2. yay ron paul is retiring. Thank God.

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  3. haha yea im sure thats what everyone thinks thats why you are the only one commenting CORNHOLIO hHAHAHA grow up you got a retarded cartoon as your pic and u tellin me to grow up haha you must be one of thoes stupid americans that sit at home and dont do shit and think ron paul is the greatest political figure on the planet and jerk off to his videos

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  4. moron

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  5. Rumor has it that the Bilderberg is going to collapse the dollar around the day of Christmas 2012

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  6. I'm not bothered by it I'm just telling you what everyone thinks. And stop making up bullshit like I'm jealous. If you actually think that getting first comment on a video is a big accomplishment you have to grow up.

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  7. Lucy "Loose Wh0re" McGee

    To all the ladies out there trying to decide between Ron Paul and Gary Johnson, here is my helpful suggestion:

    Think about which one you would want to have hollow out your pu$$y. After I started following Gary a bit more, I started have dreams about him reaming my f*ckhole with is fat c0ck. So hot. I sometimes wake up from those dreams and finger myself until I squirt everywhere lol!!!

    Everyone has their own criteria but this worked for me.

    Go Gary and Go Freedom!

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  8. i donated for the first time a few months ago. It just upsets me. It is like they are trying to lead us to Romney and they are not the same at all, by a LONG shot. Im keeping it to remind me that anything can be bought with money. It is sad but true.

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  9. Ron Paul Supporters Getting Mail From Mitt Romney

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  10. I found this on youtube that a 2009 RP staffer - sold the supporter lists to his camp. No worries. Use the mail to line the bird cage, wipe puppy butt - whatev. They are wasting CAMPAIGN MONEY and that is a GOOD THING!!

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    • I'm on the HIT list, Mitt sent me an email in Aug30

      Calls me friend wants my support and a $20 donation

      Never Mitt, I can not stoop that Low!

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  11. Their are 40 people in congress - senate - pentagon . etc that have USA / ISRAEL dual citizenship !

    Same thing happened in GERMANY in 1925 - this is why Hitler did what he had to do..

    The JEWS wiped out the whole economy - this is why Hitler created AUSCHWITZ - he was just trying to preserve his own race !

    NOW NYPD is expanding into ISRAEL and GERMANY !

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  12. The Alex Jones Show was so great today.
    You don't know what you are missing by not watching it.
    This is where the REAL fight for liberty goes on.

    Alex Jones Show: Thursday (9-6-12) Tyrel Ventura, Lenore Skenazy & Andre…
    http://beforeitsnews.com/politics/2012/09/alex-jones-show-thursday-9-6-12-tyrel-ventura-lenore-skenazy-andre-2454316.html

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  13. http://www.gop.com/images/legal/2008_RULES_Adopted.pdf

    The first paragraph from the 2008 RNC rule book seems a bit of a joke after the assault on Liberty they pulled last week.

    "...BE IT RESOLVED, That the Republican
    Party is the party of the open door. Ours is the party
    of liberty, the party of equality, of opportunity for all,
    and favoritism for none...."

    So much for the grass-roots, constitutionally-minded young patriots out there.

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  14. To EVERYONE, (and specially you Robin),

    Before you make your mind about who you want to vote for, PLEASE watch this video:

    Gov. Gary Johnson on The Alex Jones Show (2012-06-14)
    https://www.youtube.com/watch?v=_4ZGjK84WN8

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  15. Two questions for the fellow RP supporters:

    Why are we all so sure that Ron Paul won't go 3rd party? On Leno he did not rule it out completely. (there was no absolute)

    Other then his policy on illegals, what is different about Gary Johnson's view on the issues compared to Ron Paul? I've heard many of you mention that he has problems, but I haven't come up with anything myself. Either way... seems like Gary is the way to go on election day to send the GOP a message to stop ignoring and cheating the Libertarians!

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    • listen to Ron Paul's meeting with the Liberty Youth Movement. He talks a bit about 3rd parties and how they are marginalised. He even mentioned on Leno that he would not have gotten as far as he did if he was with the independent or libertarian party.

      I know Ron Paul's goal is education and an intellectual revolution, but I really wish he'd want to be president. I know as a single person even the president can't change the US, but he will have so much air time he can eventually get stuff done (not to mention veto every stimulus bill, every liberty infringing bill and he can vacate all prior executive orders)

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  16. Surfisher, Just read that Doug Weed says Ron Paul could run in 2016...Is this for real? I have left our local GOP because I am so disgusted. Not enough like=minded people in our precinct to make a difference, but there are enough in our state to hopefully get rid of Allen Alley the crook that robbed us of our votes and put in his cronies. I was physically sick at our meetings to hear these people who talk about the immorality of those liberals and democrats yet don't see it in their own party. I made sure before I left to point out what went on during the convention and that it is completely rigged and that Romney is part of the evil cabal that is going to take this country down. His allegiance is to Israel as you mentioned and it just makes me sick. Those I know who support Obama I keep asking them if they know what he has done during his administration and if this makes them happy. Again, they are voting for him because they are more afraid of Romney and those in our GOP are voting for Romney only to get out Obama. They don't care where anyone stands on issues as long as they have an R after their name. Again, I plan to ask Ben how his Reality Check is coming on the C... issue...He is one brave patriot...I'll post it if he does it while this site is still up and running...

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  17. People!

    Come on now... stop looking for a Messiah

    He's already come, and will return soon again.

    NOW start using REAL money...
    Gold and Silver COIN.... not fiat paper notes!

    A dollar is 371.25 grains of silver
    What's the problem?

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  18. Can you imagine Mormon Mitt winning — and than his 50+ sons (as a Mormon he probably has more than the token 5 showing up at conventions from his claimed only one wife) — taking over our Nation as A Mormon Dynasty… for the next 100+years!

    Kissing Israel’s behind — by supporting any wars Israel demands, to protect them (not the USA Citizens)!

    Questions:

    1) Which one will be Mitt’s First Lady (since Mormons must have two or more wives to be TRUE to their sectarianism)?

    2) Does Mitt Rmoney want to become a God (since Mormon scripture states that ALL true Mormons eventually will BECOME GODS)?

    3) Anyone with the smallest brain from BO’s campaign will devastate the Mitt with this question —
    “Do you, Mitt Rmoney, expect to become a God”?

    No human being will vote for someone that EXPECTS to become a GOD!

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    • "No human being will vote for someone that EXPECTS to become a GOD!" (Surfisher)

      Except for the brain dead warmonger neocons...lol

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  19. Gary Johnson 2012

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  20. RON, I LOVE YOU AND KNOW YOU ARE THE BEST THAT OUR COUNTRY NEEDED. I HAVE A BONE TO PICK WITH YOU. TODAY, YES, IM YELLING, I GOT MY MAIL AND I HAD A LETTER FROM MITT. I DONATED TO YOU. NO ONE HAS MY ADDRESS IN MY NAME BUT YOU. THE LETTER WAS ADDRESSED TO ME. MY HUSBAND RECEIVES ALL MAIL IN HIS NAME EXCEPT, I PUT MY NAME FOR DONATIONS. HOW MUCH DID HE PAY YOU?? MY REAL BIRTH NAME IS FREEDOM AND RON, FREEDOM IS MAD AS HELL:(

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