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.

  • robin

    Surfisher,
    I see where my friend found her information on opensecrets.com. According to them, the Obama campaign did not get their money from banks. Love to hear your thoughts on this since we continue to say that they get their money from the same places.
    http://www.opensecrets.org/pres12/index.php

    Like or Dislike: Thumb up 1 Thumb down 0

    • French Canadian

      Robin,

      Here are a few informations for you on these people:

      Push to Put Your Money in Google’s CIA Cloud Wallet
      http://www.infowars.com/push-to-put-your-money-in-googles-cia-cloud-wallet/

      Excerpts:

      “In Google’s Brave New World, all of your money will be in the “cloud” – a metaphor for data stored and retrieved over the internet – and you will pay for stuff with a swipe of a mobile device.

      Google has partnered with the multinational banksters at Citigroup and the scheme currently works with MasterCard and Visa.”

      Now for the rest of the Obama’s listing… see the link below:

      Bilderberg 2012: The Official List of Participants
      http://www.infowars.com/bilderberg-2012-the-official-list-of-participants/

      USA Ferguson, Niall Laurence A. Tisch Professor of History, Harvard University

      USA Mundie, Craig J. Chief Research and Strategy Officer, Microsoft Corporation

      USA Orszag, Peter R. Vice Chairman, Citigroup

      USA Rogoff, Kenneth S. Professor of Economics, Harvard University

      USA Schmidt, Eric E. Executive Chairman, Google Inc.

      »crosslinked«

      Like or Dislike: Thumb up 2 Thumb down 0

      • French Canadian

        Robin,

        This might also interest you:

        Hacked Email Reveals Democrats Remain Clueless on Obama’s Bankster Ties
        http://www.infowars.com/hacked-email-reveals-democrats-remain-clueless-on-obamas-bankster-ties/

        Excerpts:

        How is it possible Democrats still do not realize Obama is owned by the banksters and he does not tie his shoes in the morning without first consulting them? Evidence is bountiful.

        Soon after Barry the CIA groomed candidate was selected and trotted out with messianic fervor, Open Secrets posted a list of his top contributors, including: Goldman Sachs, Citigroup, UBS and Morgan Stanley.

        Obama is still the preferred candidate of the money masters. “Obama has brought in more money from employees of banks, hedge funds and other financial service companies than all of the GOP candidates combined,” reports the Washington Post.

        Like or Dislike: Thumb up 2 Thumb down 0

    • Surfisher

      robin — they do.

      The only difference is one Jewish Cartel finances one, and their partner finances the other. Both assure either puppet wins!

      Like or Dislike: Thumb up 0 Thumb down 0

  • Surfisher

    Brilliant observations and conclusions of our current state!

    This is the best interview this year that is a MUST WATCH — see, hear, comprehend and SHARE!

    Ron Paul’s senior adviser — Doug Wead — is absolutely brilliant !!!

    Like or Dislike: Thumb up 3 Thumb down 0

    • robin

      Surfisher,
      I was hoping you would respond to my friend’s list of top contributors to Obama’s campaign because I have read that most were the same as Romney’s. Any good sources on this to send to this friend who believes Obama doesn’t get any money from the banking world… See list below…

      Like or Dislike: Thumb up 0 Thumb down 1

  • Surfisher

    The Soviet Union collapsed but didn’t die…moved lock, stock and barrel to America.

    RNC=DNC=CCCP

    2012 — the year when your votes won’t count.

    Like or Dislike: Thumb up 2 Thumb down 0

  • http://www.youtube.com/profile?user=panopticon761 panopticon761

    And here we can see why America is such a shitty country now, too many fucking idiots.

    Like or Dislike: Thumb up 2 Thumb down 0

  • robin

    Someone care to respond to this information posted by an educated friend who said she did a fact check on this. She is voting for Obama…Claims the democrats said they would not accept any money after the bailouts from the banksters…
    Barack Obama (D)
    1 University of California $491,868
    2 Microsoft Corp $443,748
    3 Google Inc $357,382
    4 DLA Piper $331,715
    5 Harvard University $317,516
    Mitt Romney (R)
    1 Goldman Sachs $676,080
    2 JPMorgan Chase & Co $520,299
    3 Morgan Stanley $513,647
    4 Bank of America $510,728
    5 Credit Suisse Group $427,560

    Like or Dislike: Thumb up 1 Thumb down 0

    • French Canadian

      Robin,

      I don’t know about this, but I don’t trust Obama. The list regarding Obama is no better than the list for Romeny… all globalists.

      But I would like you to give me your opinion on Lyndon larouche interview last thursday. The things he sais about Obama… are pretty scary. Larouche iwho is 90 years old, still has quite a brilliant mind. Very interesting and intreguing interview. I believe your husband would also like to listen to it.

      The Interview begins at 1:10:00

      Alex Jones Show: Friday (9-7-12) Lyndon LaRouche, David Crowley & Danny Mason
      http://panoffolin.wordpress.com/2012/09/07/alex-jones-show-friday-9-7-12-lyndon-larouche-david-crowley-danny-mason/

      ———————————

      Right after Larouche is another very interesting interview with a film maker and an actor who are producing: Gray State. You can see the trailer in the interview… wow… scary stuff!

      Like or Dislike: Thumb up 3 Thumb down 0

  • Citizen

    MONEY must to be a function of Free Market Economics
    NOT corrupt politics ….

    Minting Bullion Coin without fixed value…

    DEFINED as a unit of MEASURE, WEIGHT of PRECIOUS METAL

    Judge the coins by their CONTENT WEIGHT and not their Political color

    STATES are permitted by the Constitution to MINT their own bullion coin
    and THEY SHOULD…. They should mint coins to pay for the PUBLIC use with a common MEASURE of WEIGHT as
    Legal Tender AND Stabilize our Economy

    This would defeat the FED Banksters.
    REJECT their Worthless Fiat Paper Notes!

    Like or Dislike: Thumb up 5 Thumb down 0

  • http://www.youtube.com/profile?user=PANACEA420CANABIS PANACEA420CANABIS

    May Reince Priebus of the RNC burn in hell for selling out America in 2012 ,,, the RNC & DNC are NWO Whores unfit for public service .

    Like or Dislike: Thumb up 5 Thumb down 0

  • Won’t Get Fooled Again

    “a stable dollar backed by precious metals or commodities”

    You mean, like “land”? Don’t like the sound of that. Let’s not creep away from the Constitution … AGAIN. Gold and silver. Period.

    Like or Dislike: Thumb up 3 Thumb down 0

  • http://www.youtube.com/profile?user=BradNC11175 BradNC11175

    Sure we do. When your golden boy Mitt Romney or Barrack Obama (which ever traitor you prefer) effectively destroy whats left of the economy, have us bogged down in another senseless war with no end because there are no defined terms of victory or a plausable exit strategy, and when your golden boy has effectively wiped his ass on the Constitution us “Paulbots” will be able to say WE TOLD YA SO FUCK FACE!!!! lol.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=drubekalb drubekalb

    lol 1 no wonder youre so stupid your not from america.
    2.beavis and butthead is retarded
    3 you are a fag so who cares
    4 youre dumb like black people
    5 y are you still commenting
    6 you care about your image on youtube comments
    7 why dont you get a job and do something productive
    8 ron paul will never be president
    9 your still reading to number nine so you obviously have no friends and a tiny penis which means you get no chicks
    10 you watch beavis and butthead and enjoy it so you must be a retard

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  • John

    PLEASE SEE PROPOSED LEGISLATION at http://www.monetary.org

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://RonPaul.com Brad

    I wonder who will be the next to live in “The White House” (of “Rothschild!”)
    No wonder they squeezed Ron Paul’s majority to nil he’s onto them, as we all are now i hope.

    “President Paul!” “President Paul!” “President Paul!” Go Ron Paul!

    You’all must take your government back, if you can do it!
    Well said BradNC ):-)>
    shark890 what have you been drinking? ):-(>

    Like or Dislike: Thumb up 1 Thumb down 0

  • Michael

    I’ve been thinking about this only lightly – ronpaul2012.net has a bit under 20,000 signatures right now, and even if that quota was met, he’d still have to run 3rd party to begin with.

    I think voting Johnson is probably the only really viable option for freedom-loving Americans this November. I’ve heard nothing but good things about him, and he’s also been personally endorsed by former Gov. Ventura, should that be an imputus for anyone.

    As for Senators and Congressmen/women, now is probably the right time to start investigating the candidates from your state.

    Vote free or die!

    Like or Dislike: Thumb up 1 Thumb down 0

  • tagstar

    What is the better strategy?

    1) Increase spending, increase the deficit in order to ensure the far east holds our debt. And make sure we always increase debt at an accelerated rate to make holding our debt more appealing.

    2) Or do we decrease our spending, increase the value of the dollar, decrease our debt, so that the far east declines holding our debt. And then we fall into economic collapse.

    Which option is better? I can’t really see a beneficial outcome for any of this? Can you???

    Like or Dislike: Thumb up 0 Thumb down 1

  • http://www.youtube.com/profile?user=shark890 shark890

    1. I’m not american
    2. Watching Beavis and Butt-head is my fucking business
    3. I’m still in high school and I participate in extra curricular activities
    4. You’re a racist piece of shit
    5. You make up bullshit instead of saying truthful things
    6. Your comments are getting too many negative votes, that proves that people think that you’re retarded

    Like or Dislike: Thumb up 0 Thumb down 2

  • http://RonPaul.com Brad

    You people make my brain hurt and my heart ache!

    “The financiers are the nations worse enemies. They have done more than any to undermine the foundation of freedom and it is unquestionable that most of Europe would buy this time be in full possession of liberty if such men as Rothschilds—– did not lend auto crats the support of their capitol.”
    Ludwig Burne (1820 +-)

    Rothschilds support Obama must have loved both Bushes and all Americans thirst for debt. Rothschilds love war supporting both sides and crashing markets.
    They are the puppet masters indeed and they are Jewish obviously financing the WW II the winners of the most greedy in the world! Support CIA, mafia Israel
    etc etc etc. Get back to zero to rebuild debt free take your freedom back destroy Rothschilds and they’re hold on America and the world!

    Ron Paul must be president to start the re calibration of the system and dependance on debt living!

    Like or Dislike: Thumb up 0 Thumb down 1

  • http://www.youtube.com/profile?user=rovoojoy rovoojoy

    Another fear mongering tactics used by all of the Gary Johnson supporters by using all of the Ron Paul supporters as guinea pigs!: watch?v=0Y1egV2Q2FE

    Like or Dislike: Thumb up 0 Thumb down 4

  • http://www.youtube.com/profile?user=rovoojoy rovoojoy

    Alex Jones should have NEVER interviewed Gary Johnson in the first place at all!

    Like or Dislike: Thumb up 0 Thumb down 4

  • http://www.youtube.com/profile?user=BradNC11175 BradNC11175

    The two reasons our system of cheques & ballances is broken are A) We have gotten further & further away from the Constitution since the Civil War. B) this is a large country and different states/regions have different cultures & interests yet Federal government that tries & fails to be everything for everyone everywhere. The Federalists won the Civil War and by now it’s quite clear that Federalism has failed. Power needs be returned to states to govern themselves within the Constitution.

    Like or Dislike: Thumb up 4 Thumb down 0

  • http://www.youtube.com/profile?user=Bound4Earth Bound4Earth

    By design the system of checks and balances works on paper. The system stops working when all of them are flooded with candidates that are so heavily biased that it taints every decision they make. Their opinions are not their own but their party. Anyone that still thinks the current checks and balances is working is far beyond ignorant. If the system worked properly, the supreme court would not have voted that money=speech, all speech should be equal. Our system is bought and paid for.

    Like or Dislike: Thumb up 1 Thumb down 1