Ron Paul on "Gold is Good Money"

Ron Paul continues his decades-long assault on the Federal Reserve creating money out of thin air, saying on his congressional website that gold is in fact, "good money," against the anemic quality of paper or digital money.

According to Paul, "Fiat money is not good money because it can be issued without limit and therefore cannot act as a stable store of value."

Also of significance is Paul's exposure of the central banks, government/media axis, which continues to speak badly of gold because the "defamation of gold wrought by central banks and governments is because gold exposes the devaluation of fiat currencies and the flawed policies of government. Governments hate gold because the people cannot be fooled by it."

Paul has had other allies for years, including those associated with the Austrian school of economics, but he cites others who are apparently starting to get the message, such as the Bundesbank president, who recently stated that gold is "a timeless classic."

Also noted are a couple of analysts at Deutsche Bank (DB), which also said gold is good money.

According to Paul, gold should be considered good money because it offers everything the market (people) demand, "it is divisible, portable, recognizable and, most importantly, scarce - making it a stable store of value. It is all things the market needs good money to be and has been recognized as such throughout history," says Paul.

Contrary to the assertions of central banks around the world concerning gold not being real money, they continue to acquire more gold holdings in response to the outrageous boost in fiat money into the global economy.

Ron Paul concludes this on the evil of fiat money: "A fiat monetary system gives complete discretion to those who run the printing press, allowing governments to spend money without having to suffer the political consequences of raising taxes. Fiat money benefits those who create it and receive it first, enriching government and its cronies. And the negative effects of fiat money are disguised so that people do not realize that money the Fed creates today is the reason for the busts, rising prices and unemployment, and diminished standard of living tomorrow."

He is right. Among other things, as mentioned above, inflation is always the hidden tax associated with the creation of money out of thin air.

It has already been shown to be ineffective to boost the economy, as evidenced by the anemic results of QE1 and QE2, and will be the same results of QE3 and beyond.

People should have the option to choose what money they want to use for transactions, savings and investing, and the central banks and governments around the world fight this because it knows if that were to happen, it would expose the negative effects of fiat money, as those holding gold would wildly prosper in contrast to those using paper and digital funny money.

Monetary Chairman Ron Paul? Now That's What I'm Talking About!

Although this could be an interesting next several years in American politics, depending on whether or not the Republicans actually got the message the American people really sent, nothing will be more fun to watch and informative as Rep. Ron Paul (R-Texas) being named chair of the House subcommittee overseeing monetary policy.

If you though Paul put Bernanke's and others' feet to the fire before, I don't think we've seen anything yet if Republicans do the right thing and appoint him there.

There is no doubt part of the uprising from the electorate was inspired by Ron Paul, and that part of it associated with monetary policy most definitely was.

Paul has rightly blasted the policies of the Federal Reserve, which has become so powerful it pretty much does whatever it wants with impunity, led by whoever the chairman is at the time.

Forget the American presidency, the most powerful man in America is the one chairing the Federal Reserve, and that is of course Ben Bernanke. Hopefully when Paul is through with both the Fed and Bernanke, they'll be taken down a big notch and on the road to weakened power, and ultimately in the years ahead, its eventual abolishment.

But more realistic and possible in the short term is for the Federal Reserve to be forced to open its books so the American people can see that they're up to.

“We need to create transparency there. To see what it is they are buying and lending, and who it is they are dealing with,” said Paul.

Other things Paul wants to accomplish is to use the position to educate the public on Austrian economics, which as part of its core, sees central banks and their shady dealings as the reason for the seemingly endless business cycles, not the free market, which the socialists attempt to paint the economic problems with.

Paul also wants to audit the gold reserves of the U.S. in order to prepare for a competing currency market and hopefully return to a gold standard.

Finally, part of his ambitious goal is to look much closer at the International Monetary Fund and other global financial institutions who want to institute a global currency.

“We will have to have monetary reform. I think those on the other side of this issue are already planning. They are going to try to replace a bad system with an equally bad system,” Paul concluded.

Ultimately Paul doesn't see the U.S. dollar being able to remain the reserve currency of the world.

Go Ron! This is not going to be boring or business as usual in Washington if Paul is named as chairman of the subcommittee. If he isn't, the Republican leadership will hear from us quickly.

Rand Paul, Economics, and Why They Fear Him

An article from a Keynesian attempted to make Rand Paul look like a clueless idiot when it comes to his style of economics, which the writer hates.

Here's one thing David Weidner said about Paul in what he believes Paul's economic vision is for America:

"It's easier to imagine than you might think. Until 1933, there was no Securities and Exchange Commission, no Federal Deposit Insurance Corp., the Federal Reserve was a nascent, inactive and poor regulator. It's different now in that the Fed is no longer new.

"The decade that preceded the creation of the SEC and FDIC was not too far from the vision Paul and his kind want to see again: markets full of speculation, manipulation and unprecedented leverage through investment trusts -- a kind of mutual fund on steroids that promised to give investors access to an ever-inflating stocks market. We were on the gold standard. The U.S. had a balanced budget policy. It was Paul's kind of market."

I just want to mention one quick thing about the above before getting into the reason behind Weidner's tortured fear of Rand Paul.

In the first paragraph quoted, it's obvious Weidner expects no one to understand the ineptness and idiocy of the Federal Reserve and how it reacted to the housing market, and what is has evolved to today. For him to say the Federal Reserve of old "was a nascent, inactive and poor regulator. It's different now in that the Fed is no longer new," is almost beyond believe.

The Federal Reserve is no different now than it was back when it started, except it prints even more money than ever before in history, and is even more crooked, ineffective and dangerous. That doesn't include the secrecy surrounded it that is protected by politicians.

He even says the poor performance of the Fed in the crisis (which he now evidently admits to) doesn't "explain the behavior of big banks which, without regulation, loaned billions to investors to speculate in the market."

It doesn't explain the failure of the Fed? Who does he think supplied the banks with the billions?

Anyway, as far as Rand Paul, it shows the underlying panic and fear about a candidate like him? Why? Because he's the first to emerge with a real chance to win the Senate seat. He was leading his Democratic opponent by almost the same margin he won over his primary opponent, by about 59 percent to 35 percent.

This of course has driven the liberals and Democrats crazy (and some Republicans), because he could be the first of many, and his primary victory gave others hope, and that could lead to some key victories for some that could change the course of American politics for years to come, and America itself. That's what Rand Paul represents, and why on a national level the attacks are seemingly out of proportion for someone running for a Senate seat.

In other words, it's an attempt to kill what the tea party represents at its birth, as if they can get rid of Paul by presenting him as a nut and out of tune with average Americans, they can then use those same tactics to go after those that follow him.

Imagine a solid group of lawmakers like Rand Paul inhabiting Washington, and the past practices of Politicians would be over. There would be no backroom deals which they didn't believe in to allow dubious legislation to go forth. There could be the strong possibilities of repealing legislation like Obamacare, which Americans by a majority didn't want, but was forced upon them.

Bottom line is Rand Paul represents what the Tea Party stands for, and that is a threat to those whose only faith seems to be in government, and the idea of someone coming in to limit their daddy is just too much for many to take.

The attacks on Paul will continue, but others are starting to rise up after his primary victory, and that could deflect some of the focus that is on Paul.

Rand Paul is more connected to what most Americans want and stand for than the vast majority of politicians, and to see him gain victory as a Senator would be great for America, and hopefully a significant number will follow him and win in their races; if not this election, in many elections to come.

Again, that's what people fear in Rand Paul, and why many will do almost anything to attempt to defeat him in November.

For the sake of our economic future and freedoms, I hope he wildly succeeds.

Overstock CEO Patrick Byrne: Get Rid of the Federal Reserve

Overstock CEO Patrick Byrne calling for an end to the federal reserve and negative role fiat money plays in the current economic disaster.

Byrne also talks about the possibilities of the retail industry getting a piece of the bailout money.

Commodity: Current Economic System Unworkable

Commodities could be crushed under existing economic system

Ron Paul asking what are we going to do when we realize the current economic system in U.S. is unworkable.

Insights into Austrian economics.



For commodities to reach their full potential, we do need the present way the economy is attempted to be run to be abandoned.