Ron Paul - Goldfinger?

Associated Content ^ | 01-17-08 | Ranger

[rineaux]

LOL.

[NoLibZone]

Author gives way to much credit to Dr Earmark’s being effective at anything.

[ARridgerunner]

Many Thanks for posting the link.

[mission9]

A “true blood conservative” who votes like Dennis Kuscinech.

[mission9]

{So why are we wasting time paying him any attention]

Virtually every economic imbalance which Ron Paul decries can be addressed by a sane energy policy which emphasizes production of both conventional and alternative resources. If this truth is hammered home to the last shred of sanity left AFTER THIS CHARADE COMES TO ITS CRASHING HALT, enough of them will join a winning coalition to help defeat the socialists in November. FREEDOM IS AT STAKE.

[libs_kma]

[fortheDeclaration]

If gold “was” money, the expansion of the currency would be determined simply by how much was dug out of the ground. Not enough and we get deflation. Too much and we get inflation.

If you had gold backed money you would have a stable currency which the government/Fed would not be able to manipulate.

The value of gold would adjust to reflect general prices.

[fortheDeclaration]

How much worse could deflation of the dollar be under the gold standard then it has been under the Fed?

The problem with the Fed is its cutting interest rates below what the real market level, which causes inflation, and which leads to deflation, (the boom-bust cycle).

With gold you would not have that problem.

[fortheDeclaration]

One big factor in the expansion of the west in America was the adoption of silver as a currency, to increase economic frequency and growth. The new money fueled the growth of this nation and manifest destiny. Now that the dollar is backed by the GDP, we have the most productive economy in history. Gold bugs are financial illiterates.

Oh, you mean silver, a real commodity and not paper?

The dollar is backed by the GDP-what is that?

You mean the dollar is backed by nothing.

[fortheDeclaration]

Amen to your post.

[fortheDeclaration]

A Doctor, a veteran, and Congressman skilled in economics with a consistent record of voting based on the Constitution. right of center...full blooded conservative

Amen!

[Sherman Logan]

The value of gold would adjust to reflect general prices.

True, if the amount of gold increased in close tandem with the total amount of goods and services.

If not, then either inflation or deflation would occur, possibly severe.

[mission9]

{You mean the dollar is backed by nothing.}

You repeat the lie of the demagogue which is debunked in the article. Your money is backed by the GDP of the United States of America. Your money is backed by everything, every pizza sold, every cell phone, every video game, every John Deere tractor made, etc.

The money is free, not in the golden prison and your prosperity is multiplied.

[publiusF27]

Your money is backed by the GDP of the United States of America.

Then why is the value falling?

Our money is backed by the promises of politicians regarding a part of the future GDP of the USA. That's what is happening when the government goes to the fed and sells them T-bills and the fed prints money to buy them.

As long as everyone believes the politicians will have the future tax money to pay off the bills, the value of the dollar is stable. But when people start to think that the politicians might just be overly optimistic, the value of the dollar falls.

[mission9]

We are in agreement that monetary policy is the result of inflation. Returning to the gold standard would throw the baby out with the bathwater. Economic dislocation is occurring because of unrealistic pricing of the Chinese yuan, which China is orchestrating; we are now seeing markets restore a more correct relationship, relative to the products of our different economies. It ain’t pretty.
Foreign manufactuers will continue to locate plants in the U.S. If for no other reason than shipping costs.

[mission9]

Just to be clear- bad monetary policy is the cause of inflation. Monetary policy based on the gold standard is not necessarily good monetary policy. Countries that operate on the gold standard, such as Switzerland, do not compete with the United States in growth rate or innovation. This is not an accident.

[publiusF27]

Maybe we should look for something else to back the currency. Gold has problems. The promises of politicians about people as yet unborn also has problems. One interesting suggestion is backing a currency with kilowatt hours of energy. It doesn't suffer from the upper limit problem of gold, but technology could suddenly change things at times. It also doesn't suffer from being backed by the promises of politicians.

Another thread shows that they think the solution is an efficient and temporary government spending program, coupled with printing some more money. Government spending programs are rarely efficient or temporary, which is part of the problem. Printing too much money is another part. The solution: add to the problem. It's insane.