Ron Paul: Federal Reserve Printing Money Out of Thin Air = Legalized Fraud, Part 1/4

[a552bcx]

the wealth of a country is determine by natural resources such as metals, minerals, oil, lumber and land; more importantly nowaday wealth also constitute scientific knowledge that can be put into industrial use. that's why private and university research should be the main focus to increase the nation's wealth such as the U.S. Japan doesn't have any natural resources, japan is a rocky island , but their scientific knowledge is immense that are put into industrial use.

[MONOPOLY35]

At this rate, the wealthy will be holding large cash reserves in the form of gold, silver, and platinum. According to the History Channel, when major disaster strikes, precious metals are the only source of value for trade.

[Photog60]

If your money is peg to gold and lets say the bill is worth $100 worth of gold. Now you want to loan money to someone to start a business. You can't because you can't expand the money supply faster than the gold being mined and refined.

Strickly basing money peg to gold won't work. 1 million oz ( just to pick a number)of gold only gives you a certain amount of money, you can't leverage it with loans but only loan out exactly what is deposited - reserves, since the value can't change.

[LivingWithUncleRay]

No Photog60.  If we can't mine the gold fast enough, then each piece is worth more. The market decides what the standard is worth. There is also silver and copper. As long as we are producing and saving we are creating wealth.

[MrAfilao]

@Photog60

That's correct, you can't loan money you don't have, that's the way it should be.

Regarding value it is incorrect because if demand of businesses growing for money is bigger and that money is backed by gold then the purchasing power of that gold rises, the value of the money rises.

You have the inflationary set like the only way it could be but it can work also the other way.

[Photog60]

I like Ron Paul but if you think a gold or silver standard for money is or was feasible, better think again. If growth were tied to gold mining it we would be around 1975. You can't mine gold fast enough to keep up with needed monetary growth. This is not condoning endless spending, so first cut our military budget in half. Pull back troops from bases around the world. Our health care is much more important than hundreds of bases. Stop production of the F22. See, its not too hard.

[dleksen]

How is monetary growth a good thing? Why would we ever need to mine more gold? Can't prices in terms of gold just go down? Why does the amount of gold matter at all?

[bschinzel]

horrible feedback. Hope that wasn't originally on the broadcast; it sounds like he was broadcasting from space