(2006) Ron Paul: GOLD AND THE US DOLLAR [Part 1]

( April 25th, 2006) Rep. Ron Paul speaks before the US House of Representatives.

(2006) Ron Paul: GOLD AND THE US DOLLAR [Part 1]
http://www.youtube.com/watch?v=_GcP_Lw4BCc

(2006) Ron Paul: GOLD AND THE US DOLLAR [Part 2]
http://www.youtube.com/watch?v=sHsh_SwAstw

(2006) Ron Paul: GOLD AND THE US DOLLAR [Part 3]
http://www.youtube.com/watch?v=C04kIwnzRSg

(2006) Ron Paul: GOLD AND THE US DOLLAR [Part 4]
http://www.youtube.com/watch?v=GEm03U7eXTw

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(Transcript)

Madam Speaker, the financial press and even the network news shows have begun reporting the price of gold regularly.

For 20 years, between 1980 and 2000, the price of gold was rarely mentioned. There was little interest, and the price was either falling or remaining steady. Since 2001, however, interest in gold has soared along with its price.

With the price now over $600 an ounce, a lot more people are becoming interested in gold as an investment and an economic indicator. Much can be learned by understanding what the rising dollar price of gold means.

The rise in gold prices, from $250 per ounce in 2001 to over $600 today has drawn investors and speculators into precious metals markets. Though many already have made handsome profits, buying gold, per se, should not be touted as a good investment. After all, gold earns no interest, and its quality never changes. It is static and does not grow as sound investments should.

It is more accurate to say that one might invest in a gold or silver mining company, where management, labor costs, and the nature of new discoveries all play a vital role in determining the quality of the investment and the profits made.

Buying gold and holding it is somewhat analogous to converting one's saving into $100 bills and hiding them under the mattress, yet not exactly the same. Both gold and dollars are considered money, and holding money does not qualify as an investment. There is a big difference between the two, however, since by holding paper money, one loses purchasing power. The purchasing power of commodity money, that is gold, however, goes up if the government devalues the circulating paper currency.

Holding gold is protection or insurance against government's proclivity to debase the currency. The purchasing power of gold goes up not because it is a so-called good investment. It goes up in value only because the paper currency goes down in value. In our current situation, that means the dollar.

One of the characteristics of commodity money, one that originated naturally in the marketplace, is that it must serve as a store of value. Gold and silver meet the test; paper does not. Because of this profound difference, the incentive and wisdom of holding emergency funds in the form of gold becomes attractive when the official currency is being devalued. It is more attractive than trying to save wealth in the form of a fiat currency, even when earning some nominal interest.

The lack of earned interest on gold is not a problem once people realize the purchasing power of their currency is declining faster than the interest rates they might earn. The purchasing power of gold can rise even faster than increases in the cost of living.

The point is that most who buy gold do so to protect against the depreciating currency, rather than as an investment in the classical sense. Americans understand this less than citizens of other countries. Some nations have suffered from severe monetary inflation that literally led to the destruction of their national currency.

Though our inflation, that is the depreciation of the U.S. dollar, has been insidious, average Americans are unaware of how this occurs. For instance, [Page: H1730]
few Americans know nor seem concerned that the 1913 pre-Federal Reserve dollar is now worth only 4 cents. Officially, our central bankers and our politicians express no fear that the course on which we are set is fraught with great danger to our economy and to our political system.

The belief that money created out of thin air can work economic miracles if only properly managed is pervasive in the District of Columbia. In many ways, we should not be surprised about this trust in such an unsound system. For at least four generations our government-run universities have systematically preached a monetary doctrine justifying the so-called wisdom of paper money over the foolishness of sound money.

Not only that, paper money has worked surprisingly well in the past 35 years, the years the world has accepted pure paper money as currency. Alan Greenspan bragged that central bankers in these decades have gained the knowledge necessary to make paper money respond as if it were gold.

(...)

[ http://www.c-spanarchives.org/congress/?q=node/77531&id=7442935 ]

Category:

News & Politics

Tags:

• ron
• paul
• liberty
• usa
• elections
• 2008
• constitution
• dollar
• gold
• fiat
• paper
• money

[michaelandolga]

The timeline of the infinesis is independent of the stochiochastic results therein. That's were the contradiction lies! If the epistemological foundations regress towards the monetary mean, all will be lost. Fathers, brothers, sons and their kin will reconcile the wildebeast's haunting raillery. Who would have thought in 2008 that Adrakan's Mean would have so deciphered the congery?!

[jaralero]

Hahaha, WONDERFUL. Contradiction does not lie in either sense, Omnia sol temperat, purus et subtilis. Contradiction is the sun of April and the God of means, it is useful to some, harmful to others, and unreasonable to all. You know wild beasts sing and pray,

"If a congery of states be a nation, let eels rule on earth"

Which is why Ron Paul has deciphered Inflation, so the whole crew may say: "Foul Play!"

[freedomintheus]

RON PAUL 08

[hrihiratu]

His voting records consistency is unmatched. His has sponsored a lot of good bills. If only the congress is not hijacked by the warmongers.

[CabhanListis]

In a country where you have a brilliant, educated man like Ron Paul, and someone like Michele Bachmann, both representing the interests of their constituents, one must wonder if maybe, just maybe, someone shook the cake pan.

[Abuzwebstar]

damn gold was $200 on 2001, $600 on 2006 and now $1700 on 2012!!

[GarrettYngbld]

I love Ron Paul, you have my vote any day

[derfowvayer]

Notice Dr. Paul mentions about *only* $85 billion deficits. He mentions this will accelerate. He is so right. To predict the future, watch more Ron Paul. It's pretty grim stuff, but if you know, you can prepare yourself

[byox]

wish i had seen this in 2006. woulda bought some gold! it's over $1000/oz now.

[WAKEUPAMERICANDREAM]

Thanks for uploading this video!!

[ic300x]

JFK was killed trying to back with silver

[thoughtcrime5]

GO fuck Ayn Rand. The American people will never wake up until the dollar collapses. We cant do anything about it unless you want to result to fight force with force. No one has the guts to take on the Fed with guns.

[jebril]

When the top control and manipulate your society and money and what your asking is to break the locks and destroy the vehicles they use to keep the wealth and control in their hand, its not fucking Socialism, its called a Free Market system and under a Free Market system all the wealth won't be in the hands of a small group of motherfuckers who make fucking laws and create organizations to secure and increase their profits.