Ron Paul: There’s Anger… There’s Going To Be Riots In The Streets

05/07/10 Stockholm, Sweden – Rep. Ron Paul (R-TX) was on Fox News yesterday, discussing Greece and describing how the financial crisis has become a currency crisis… which is much worse. He sees an attack on the dollar in terms of gold, and has no doubt that the currency crisis is a worldwide problem.

Referring to whether or not Greece-like riots could take place in the US he says:

“Absolutely, there’s going to be anger. There’s going to be riots in the streets as well. But this is all a consequence of the fact of why and how government could spend like this. It’s because they don’t have sound money.

“When we run up deficits, we tax, but never enough. We can’t tax, it would ruin the economy. Then we borrow, and we get away with that for a long time. But, we rely on printing presses from the Federal Reserve to create money and that’s where the problem is [...] we can’t have fake money, this is counterfeit.”

If you are keeping it then you must believe in it's worth and therefore disagree with Ron Paul.

You are so right - and don't realize it amid your sarcasm.

Cash? Have very little at any time, and that only because it's convenient for simple transactions for which I have the cash a very short time. The value is plummeting, so when obtained I trade it for something of value ASAP.

Cash used to be something you'd keep under the mattress - and I mean really keep a fat wad of it under the mattress, or in the safe, or in the sock drawer. It may not increase in value, but you were sure you had it and had easy access to it. It was real money.

Now, with QEx underway and the value of the dollar plummeting, the value of that cash is evaporating. Sure, it's not all gone now, but it's less "money" and more "counterfeit" - that dollar under the mattress which used to be worth a gallon of gas is now worth a quart of gas (ditto 75% drop against any other inherent stable value commodity).

You're right: if it's [insert variant of "no value" here], then why would anybody want it? Exactly. We DON'T want it. We have an economy where the best thing you can do with cash when you get it is spend it as fast as possible, before its imputed value decreases any further.

Your sarcasm is spot-on true. Generally speaking, nobody hoards cash any more. The value of cash is evaporating, leaving a "fractional counterfeit" behind. Send you my cash? Ya know, frankly, if I don't that's because doing so costs more than it's worth: registered delivery + packaging + gas + travel time + queue time > what's in my pocket now.

As Japan awaited wholesale assault on its homeland, citizens acquired gold - tangible asset, not mere paper. After devastation was wrought, those with gold went out in confidence to buy the bread they needed to survive. None had bread to sell; those who did either traded it for vast amounts of inedible gold, or did not trade it at all.

Those pieces of paper are a token of honor...

you correctly observe...gold may not buy that loaf of bread you need to feed your child either...

but the barter and exchange of “things” of honor and skill...

those things will ...

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