Ron Paul’s Currency Plan and Merovingian France

RedState.com ^ | 16 August 2007 | .cnI redruM

[.cnI redruM]

The Gold Standard could work. As long as we can always find enough gold to back $7.243 Trillion in currency.

[BlabItGrabIt]

Ain’t never gonna happen—but we can dream and believe =-(

[Oberon]

Gresham’s Law states that good money drives bad money out of circulation.

That's incorrect. In fact, that's exactly the opposite of Gresham's Law.

[mnehring]

As long as we can always find enough gold to back $7.243 Trillion in currency.

..and there is one of the rubs.. along with that we must hold that gold, and the world market for the value of gold isn't inflated or deflated. Value (in relation to price), unlike quantity, is an abstract.

[3AngelaD]

Shades of Williams Jenning Bryan, who must be spinning in his grave. In his day, he was the populist: "You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold." -- 1896

[MNJohnnie]

Yet another example of Ron Paul’s fundamental unfitness for the office of President.

He simply ignores all practical reality to cling to how he feels things should work. That is a dangerously naive and ignorant world view. Like his followers, Paul simply ignore the facts to cling to his dogmas.

This sort of inability to deal with the world as it is, rather then how he wishes it, makes him unfit for the office he NOW holds in Congress, much less any higher office.

[gusopol3]

interesting the role lack of specie played in colonial America as well.

[NCBraveheart]

I am sure Ron Paul’s pal Alex Jones knows how to get it.

[taxcontrol]

That is why I prefer the concept of “gold equivalent ounces - GEOs”. Consider that the timber and land and ships and planes and silver and buildings and dams and roads and all the other “stuff” the US Government owns (that is unfettered assets).

If each of these were valued at current market rates for the sell of those assets, then that amount of money converted back to gold ounces as a pure book keeping exercise, you would then have a value of the US assets in the equivalent of gold ounces. That would allow for a realistic holding and benchmarking of an asset based currency without the strict need to hold gold in reserve.

[.cnI redruM]

An interesting idea. It sort splits the difference between a fiat and a specie-backed money. I would worry about the externalities of currency fluctuations on the markets of some these commodities. Particularly, if they had strategic or economic impact.

[.cnI redruM]

Particularly, when people were told they could come here to mine gold. A lot of the people at Jamestown were told that to get them on the ship in the first place.

[martin_fierro]

"ZUT ALORS! Ah would lak to 'ave a BAHOG!"

[Lloyd227]

You sir are missing the forest for the trees... and calculating things in reverse in order to prove an imaginary "fact"

Now, I don't hold any imaginings that there is any chance that we'll ever see a specie backed currency again, but... To use the current price of gold in current dollars to "prove" that we can't possibly hoard enough gold to back our currency is a fruitless calculation and proves nothing whatsoever. It's simply an irrelevant calculation and a waste of your time typing in the numbers... the current value of the dollar has no relation whatever to the value of a species backed currency which might replace it.

This entire posting is a waste of time and doesn't even string rational thoughts end to end.

[.cnI redruM]

Of course he was arguing for bimetallism. I lend you gold, you pay me with an equal weight of silver. That, to me, is the basic concept pedaled by most populists.

[martin_fierro]

(non coupable)

[mnehring]

This idea (in practice) really isn’t all that different than what we have now, it’s just a matter of semantics. Either way, you will need a governing body to determine relative value of ‘gold equivalents’ just like we have a governing body determining value of reserve notes. Now, it is based on production, that will be based on physical assets, the latter, however, leaves out a large factor of our current production, non physical assets, information. (ie, moving of information builds into production value. As time moves forward, this segment will become a greater and greater part of our overall GDP.)

[gusopol3]

I was thinking of a bit later, like when George Washington shifted out of tobacco production at Mount Vernon to general crops; also, obviously, the slave trade

[mnehring]

Why do I have a feeling a lot of ‘gold bugs’ also think that they can buy into a business where they can hire friends, who will hire friends who will hire friends, and they will get a cut of what all their ‘friends’ sell?

[RockinRight]

This is gonna be fun...the goldbugs are a’comin!

[Titus Quinctius Cincinnatus]

Somewhat off-topic, but Ron Paul ran for President on the ticket of the Libertarian Party back in 1988. Does anyone know in which state Dr. Paul earned the highest percentage of the vote, coming to within 57% of winning the state’s electoral votes?