Ron Paul has been saying this 30 years, why did WSJ wait until today to endorse competing currency and gold?
http://online.wsj.com/article/SB123440593696275773.html
Wouldn't it have been nice if they'd drawn attention to this earlier? Before the Fed increased the monetary supply by 70% in a few months?
Well, with more bailouts in the works, I guess now is better than never. What do you think?
"By JUDY SHELTON
Let's go back to the gold standard.
If the very idea seems at odds with what is currently happening in our country — with Congress preparing to pass a massive economic stimulus bill that will push the fiscal deficit to triple the size of last year's record budget gap — it's because a gold standard stands in the way of runaway government spending.
Under a gold standard, if people think the paper money printed by government is losing value, they have the right to switch to gold. Fiat money — i.e., currency with no intrinsic worth that government has decreed legal tender — loses its value when government creates more than can be absorbed by the productive real economy. Too much fiat money results in inflation — which pools in certain sectors at first, such as housing or financial assets, but ultimately raises prices in general.
Inflation is the enemy of capitalism, chiseling away at the foundation of free markets and the laws of supply and demand. It distorts price signals, making retailers look like profiteers and deceiving workers into thinking their wages have gone up. It pushes families into higher income tax brackets without increasing their real consumption opportunities.
In short, inflation undermines capitalism by destroying the rationale for dedicating a portion of today's earnings to savings. Accumulated savings provide the capital that finances projects that generate higher future returns; it's how an economy grows, how a society reaches higher levels of prosperity. But inflation makes suckers out of savers.
If capitalism is to be preserved, it can't be through the con game of diluting the value of money. People see through such tactics; they recognize the signs of impending inflation. When we see Congress getting ready to pay for 40% of 2009 federal budget expenditures with money created from thin air, there's no getting around it. Our money will lose its capacity to serve as an honest measure, a meaningful unit of account. Our paper currency cannot provide a reliable store of value.
March 16th, 2009 at 2:54 am
Unfortunately too little, too late. The wheels of socialism are in motion and nothing short of revolution will change it. And, seriously, I doubt if that would work either. Foreign 'peacekeepers' would be brought in.
March 16th, 2009 at 2:54 am
Cat - Astrophe: I disagree with you on that point. We can always stop it short of revolution so long as we still have the power to vote. People have to wise up before we lose that right. But who knows, that could be coming up just around the corner.
It's only been 38 years since Bretton Woods ended (with Nixon removing us completely from the gold standard), and that is how long it has taken to get where we are. Less than half a century. Fiat doesn't work.
March 16th, 2009 at 2:54 am
The Government always tries to ignore Ron Paul because he votes in the peoples best interest and votes against the Gov. when it is only in their best interest.
March 16th, 2009 at 2:54 am
people are finally listening to the good doctor.
March 16th, 2009 at 2:54 am
You Ron Paul really make me wonder! Just because he has been on all the financial programs for 30 years and has been right about the economy for 30 years, you seem to think he might be right! If that's the case how come none of the crooks, I mean powers that be on capital Hill have never given him a shot? Naw, just kidding, but since I didn't see the obligatory "Who is ron Paul?" detractor, I thought I would beat them to the punch, but under the circumstances maybe everyone knows who he is.
Superintendent when I worked at building nuclear plants told me that he was now running the a gold mine in California for the company anda that when it fell below $300 they stopped production. Last time i saw him was when gold was that low, what 1998?
It's sad that the NWO people have such grand ideas and what is going on now seems to fit in line. Kissingertated that Obama has a "great opportunity to accomplish this. They also have the new G meeting coming up.
Unfortunately Paul is not in the "loop", but people are finally waking up, they normally turn a blind eye to what is going on as they take care of their "piece of the pie" (I have stated this all along), but now it seems even their piece is being taken away.
So it would be interesting to go on it, but as we know will not happen. I don't even think we have much gold anymore as the Mint is buying from third party suppliers, which makes me wonder about purity (another scandal?).
But if we do go to it I would like the coins to have a hole in the middle so we can put them on a rawhide strip and wear it on our clothes or like they did in the gawdy 70s around their necks, remember that. ha.
I wonder if the fact that Chinese and Mayan calendars stopped at 2012
means anything? How true about inflation. I have raise cane about Lillte Debbie cakes going from a buck to $2.29, before long ten?
Not sure what I have said means anything, but do agree. Also wonder why the temp of the earth has fallen for the past six years.
Npw their is actually a core that is honest and idealist in the Congress, but they will have major forces against them from within and out.