(2006) Ron Paul: GOLD AND THE US DOLLAR [Part 2]

( 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)

There is no single measurement that reveals what the Fed has done in the recent past or tells us exactly what it is about to do in the future. Forget about the lip service given to transparency by the new Fed Chairman Bernanke. Not only is this administration one of the most secretive across the board in our history, the current Fed firmly supports denying the most important measurement of current monetary policy to Congress, the financial community and the American public.

Because of a lack of interest and poor understanding of monetary policy, Congress has expressed essentially no concern about the significant change in reporting statistics on the money supply. Beginning in March, though planned before Bernanke arrived at the Fed, the central bank discontinued compiling and reporting monetary aggregates known as M3. M3 is the best description of how quickly the Fed is creating new money and credit. Common sense tells us that a government central bank creating
new money out of thin air depreciates the value of each dollar in circulation. Yet this report is no longer available to us, and Congress makes no demands to receive it.

Though M3 is the most helpful statistic to track Fed activity, it by no means tells us everything we need to know about trends in monetary policy. Total bank credit, still available to us, gives us indirect information reflecting the Fed's inflationary policies. But ultimately the markets will figure out exactly what the Fed is up to, and then individuals, financial institutions, governments and other central bankers will act accordingly.

The fact that our money supply is rising significantly cannot be hidden from the markets. The response in time will drive the dollar down while driving interest rates and commodity prices up.

Already we see this trend developing, which surely will accelerate in the not-too-distant future. Part of this reaction will be from those who seek a haven to protect their wealth, not invest, by treating gold and silver as universal and historic money. This means holding fewer dollars that are decreasing in value while holding gold as it increases in value.

A soaring gold price is a vote of no confidence in the central bank and the dollar. This certainly was the case in 1979 and 1980. Today gold prices reflect a growing restlessness with the increasing money supply, our budgetary and trade deficits, our unfunded liabilities, and the inability of this Congress and the administration to rein in runaway spending.

Denying us statistical information, manipulating interest rates, and artificially trying to keep gold prices in check won't help in the long run. If the markets are fooled only on the short term, it only means the adjustments will be much more dramatic later on, and in the meantime other market imbalances develop.

The Fed tries to keep the consumer spending spree going, not through hard work and savings, but by creating artificial wealth in stock market bubbles and housing bubbles. When these distortions run these courses and are discovered, the corrections will be quite painful as was witnessed with the collapse of the NASDAQ bubble. Likewise a fiat monetary system encourages speculation and unsound borrowing.

As problems develop, scapegoats are sought and frequently found in foreign nations. This prompts many to demand altering exchange rates and protectionist measures. The sentiment for this type of solution is growing each day. Though everyone decries inflation, trade imbalances, economic downturns and Federal deficits, few attempt a closer study of our monetary system and how these events are interconnected.

Even if it were recognized that a gold standard without monetary inflation would be advantageous, few in Washington would accept the political disadvantages of living with the discipline [Page: H1731]
of gold since it serves as a check on government size and power. This is a sad commentary on the politics of today.

(...)

[ 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

[OghamTheBold]

Gold 'was' 'historically' currency - but gold is and always will be just soft metal with little practical use (shiny though it be) - it has some use and some 'small value', but not enough to justify a 'large price'.

If gold had practical value - it would not just sit in private vaults for 100's of years - piling higher and higher.

[jaralero]

Ogham,

Gold is piling lower and lower where debt is piling higher and higher: Italy. Look also into the German case, which is interesting because of the stubborn opposition to sell any of those reserves of so "small value." £438/£441 per troy oz. (£371 in 1980).

"No practical value." Thermal properties, non toxic, highly conductive, dense, most malleable and ductile of metals, reflector of electromagnetic radiation, Engineering, Medicine, Electronics, useless. Thanks for the laughs.

[chaserehn]

There is gold in ALMOST all technology today. i worked for a recycling company about 2 years ago and it would blow your mind if you knew how much gold you can find in the trash.

[jaralero]

chaserehn,

Very good point!, though it is in minute amounts, NOW WE HAVE TO LOOK INTO TRASH instead of rivers. I'm not eager to explore bins but hey, there's another business for Silicon Valley ;D

[OghamTheBold]

Money's physical form is not the problem - a massive chunk of gold has hardly more use than paper - OK you can bang a nail in with it; but the gold will dent, so it's not even a decent hammer

[jaralero]

OghamTheBold,

I'm not sure if you are being serious, just in case you are, or for those who think so: nobody has any problem with the physical form of money, the argument is about the -value- of money (the paper is a receipt, obviously). Hammers are good for bricolage, Ron Paul's "The Case for Gold" (he is in favour of hard assets, gold being one) is a good starter for monetary policy.

[cuthroughthecrap]

common guys, gold is a resource with scarcity and holds value inherently, it makes sure that our societies don't artificially expand beyond our means to sustain them. Look whats happening now. Fiat money systems with no backing, a currency where 97% is digital.. creating a worldwide economic stronghold by allowing private corporations to control the supply of money. If it was hard gold, they couldn't do it..

[patriotsundergod]

Gold and silver have had value for all of known human history! What makes your 50-85 years so special?

[MrColts420]

Ron Paul 2012

Down with Federal Reserve, and this whole criminal system that they call a "free market"

[UserNumber112358]

Dr. Paul was ahead of the curve a long time ago.

[zardcat1111]

@kismatkakhel you speak the truth. No one has a clue what the fuck is happening. OBLIVIOUS.

[leoveteran]

we need to get this man in office soon!!!

He actually called out Bernanke for giving lip service about transparency!!

And Predicted everything happening right now!!

[Thesniper21]

We are being pushed into a corner with pressure from Asia and the Euro to form a North American /south American central currency. The Amero.

If we reset the already artificial currency rates with a single currency for all of the Americas, this would be a potent economic event. This is a /Bilderberg /Rockefeller idea, but its what we are headed for..its the only solution besides wholesale depression and wars.

[kismatkakhel]

not "was" right... he is always right... just not many ears to him.....

[kismatkakhel]

Honestly, there are a bunch of fuckin idiots sitting in washington who dont have a damn idea of what the US is going thu...... with exceptions such as Ron Paul..... and on the other hand we have an ignorant public who cares more who will be the next American Idol or celebrity gossips,.... All these assholes are gonna wake up only when the next depression arrives......

[yourboyken]

RonPaulisRight!

[ojsdaddy]

Idiot gold will never be worthless unless there was some miraculous new material is discovered that is more rare and useful than gold. The dollar is not printed because of the gold reserves today. It's just printed and given value, devaluing the whole lot of it.

[Dasifter]

When the US dollars falls you can sell your gold overseas where the value is strong. The Euro will be the strong dollar like the Sterling pound was in the past.