Bring It On!

Rep. Ron Paul on Gold and the Dollar

April 27th, 2006 | by Paul Merda |

Particular things to remember:

-If one endorses small government and maximum liberty, one must support commodity money.
-One of the strongest restraints against unnecessary war is a gold standard.
-Deficit financing by government is severely restricted by sound money.
-The harmful effects of the business cycle are virtually eliminated with an honest gold standard.
-Saving and thrift are encouraged by a gold standard; and discouraged by paper money.
-Price inflation, with generally rising price levels, is characteristic of paper money. Reports that the consumer price index and the producer price index are rising are distractions: the real cause of inflation is the Fed’s creation of new money.
-Interest rate manipulation by central bank helps the rich, the banks, the government, and the politicians.
-Paper money permits the regressive inflation tax to be passed off on the poor and the middle class.
-Speculative financial bubbles are characteristic of paper money – not gold.
-Paper money encourages economic and political chaos, which subsequently causes a search for scapegoats rather than blaming the central bank.
-Dangerous protectionist measures frequently are implemented to compensate for the dislocations caused by fiat money.
-Paper money, inflation, and the conditions they create contribute to the problems of illegal immigration.
-The value of gold is remarkably stable.
-The dollar price of gold reflects dollar depreciation.
-Holding gold helps preserve and store wealth, but technically gold is not a true investment.
-Since 2001 the dollar has been devalued by 60%.
-In 1934 FDR devalued the dollar by 41%.
-In 1971 Nixon devalued the dollar by 7.9%.
-In 1973 Nixon devalued the dollar by 10%.

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