Posted on 11/12/2007 3:11:27 PM PST by republicpictures
Our own view is that Mr. Paul's prescience on the dollar is one of the reasons he's showing what the pundits are calling surprising strength on the hustings. [snip] We have a lot of differences with Mr. Paul, but on monetary matters, we've been covering him since his days, in the early 1980s, as a member of the United States Gold Commission, when he coauthored, with New York's own Lewis Lehrman, a minority report favoring a return to a version of the gold standard. What can be said about Mr. Paul is that he's not only ahead of Mr. Bernanke but also of his fellow Republicans, and he will eat into their standing until they address the question of the soundness of our currency.
(Excerpt) Read more at nysun.com ...
It can be, yes. Cash is an intermediary holder of value; as the value of a dollar decreases, the less time you want to hold onto a dollar. Good or bad, it encourages people to minimize their cash holdings, and exchange cash for goods. One benefit is that long-term loans become significantly cheaper (in value) to pay off.
We had wild inflation in housing.
Sellers discovered buyers were willing to pay more. Prices rose until they reached the point that buyers were not willing to pay more. Is that inflation or a market correction?
Now we have wild inflation in energy.
Again: inflation or market correction? My Canadian wife laughs at our concerns over gas prices, as prices which concern us are barely reaching the low end of what our northern neighbor has been paying for years. There's also this little thing about a war in the Middle East...
And there seems to me to be under-the-radar inflation in food prices.
How much of that is connected to corn being increasingly used for ethanol instead of food? Again: inflation or market correction?
Be aware some "inflation" is also highly localized. Near Atlanta, I find prices very reasonable (housing, gas, food...).
Got something polite & rational to contribute to the debate?
Two currencies circulating at the same time? Great idea. LOL!
All the idiots who can't add or subtract will easily factor the spot price of gold into their decision about which currency to use.
Constant, long-term deflation. Great idea! LOL!
The issue isn't the quantity of the money, it is purchasing power of the dollar that matters.
Unemployed people during the Great Depression didn't have any money, but that money bought more and more. Deflation was very helpful to people with no jobs.
There's a serious school of thought that says mismanagement of the money supply by the fed is what caused the Great Depression. I believe Milton Friedman held this view. It wasn't the gold standard that caused the depression - I don't believe any credible economist argues that it was.
what’s interesting about this editorial is that it comes from the NY Sun, which is not a fringe newspaper - and wouldn’t be called “libertarian.” The importance of a sound currency - and using some kind of gold standard to achieve that goal - are not kooky ideas.
Caused it or greatly exacerbated it, yes.
Now, what do you think would happen it we had long-term deflation because the gold supply grows more slowly than the economy?
How much gold is there? How much do we need to back the currency? Sorry, still kooky.
We only exported $1 trillion in goods last year. Hardly worth discussing. LOL!
If you're going to make up numbers, why not say they hold $100 trillion in US debt?
Ron Paul Revolution Ping
Constant, long-term deflation. Great idea! LOL!
That isn't deflation, that is monetary stability.
Deflation is a contraction in the money supply.
[ The issue isn't the quantity of the money, it is purchasing power of the dollar that matters. ]
Unemployed people during the Great Depression didn't have any money, but that money bought more and more. Deflation was very helpful to people with no jobs.
What causes the unemployment is the inflation which leads to a 'bust', and that was the cause of the Great Depression, inflation during the 1920's.
Deflation is a correction of a previous inflation.
With a Gold standard you remove the Government's ability to inflate and cause the 'boom and bust' cycle.
Prices remain stable based on the productivity of the market and money's purchasing power responds to that.
Had the Gov't not intervened extensively during the Hoover and Roosevelt administrations, the Great Depression would have ended quickly as the market adjusted to the correct interest rates.
Keynes is dead!
Economics 101-keep the Government out of the economy.
“After Bernanke saves the bankers’ bacon and we’re looking for lenders to continue our $1 trillion p/year borrowing on our $9 trillion debt, tell me who is going to be dumb enough to want to buy U.S. bonds?”
My god, you are good. You really get this stuff.
I was listening to a MSM ‘journalist’ on C-span one morning. He said the rising cost of oil didn’t effect him. He biked to work. LOL.. Like his food, his clothes, and his imported beer were not TRUCKED into DC. Or like the farmer on the tractor whose Diesel went up 80% that year wasn’t hurting. Gotta get these kids some education! .. or maybe its too late.
I you allow a parallel currency backed by real value, be it gold, silver, platinum or whatever, you cannot then tax the value of that money. Ergo, the income tax must go!
“The constitution allows for two types of taxation with specific rules that govern each specie of tax. A direct tax must be apportioned and indirect taxes must be uniform. I know if it’s a direct tax that the income tax is not apportioned and if it’s an indirect tax it’s not uniform.”
Not original but can’t recall where I got this quote. It says what we know is true, however.
I saw a video of those traders cheering for Ron Paul.
We are brushing up on a crisis as bad as 1929. If cycles repeat every 80-100 years, we are 78 years down the road... scary.
We cannot afford to keep sending Musharrof a billions to keep him in power so we can use our three airbases. The Pakistani are starting to get really pissed at our intervention. I wish we could be like Switzerland — a gun behind every door.. and trade freely with all friendly nations.
Have the Swiss had a terrorist event yet?
The housing inflation was caused by the fed and their insanely low interest rates, coupled with the federal government’s policy that everyone should be able to own a house, rather they can afford it or not. The rich speculators got into the act as well, and are now going bust. Several Realtors locally, big name franchise outfits, are going bust because they bought too many ‘investment properties’ on no money down. The interest rate went up, the market gave up, the payments kept coming.
Amen!
High Five
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