DownsizeDC.org
July 26, 2011
Ron Paul Discusses Gold and the Fed on the Kudlow Report
By John Markley

Quote of the Day: "Why do central banks hold it (gold)? . . . Why don't they hold diamonds?" - Ron Paul

I recently saw two interesting videos:

These videos motivated me to send a letter to Congress in support of Ron Paul's Free Competition in Currency Act.

You may borrow from or copy this letter . . .

Should a Fed Chairman who doesn't even know what money is, have monopoly control over money?

When asked by Ron Paul at a July 13 hearing if gold is money, Bernanke said "No" and later said "It's an asset." He later said people purchase it in times of economic uncertainty. There are two things wrong with this.

First, gold isn't an "asset" like real estate, valuable for its utility. In fact, just a tiny percentage of gold is used for industry. Most gold is kept as jewelry, coin, or bullion. http://www.csmonitor.com/World/2011/0716/The-price-of-gold-as-influential-as-a-global-power/%28page%29/2

Second, if gold is purchased in times of uncertainty, then investors would have bought gold during the meltdown of September, 2008. Instead, they bought Treasury bills because they had a safe return on investment, whereas the gold market can be highly speculative from day to day. http://www.lewrockwell.com/schiff/schiff130.html

The reason people buy gold is because it is a hedge against MONETARY INFLATION. Which means . . .

Gold is the money that doesn't inflate.

Which means . . .

 Gold is the REAL money.

When people see that their dollars aren't buying as much as they used to, and their incomes and savings aren't keeping up with inflation, they buy gold. That's because, over time, a unit of gold INCREASES in purchasing power, while the dollar buys less and less.

You would do the American people a tremendous amount of good if you accepted the reality that gold is money, and passed Ron Paul's Free Competition in Currency Act . . .

* People would be free to make contracts where purchases are made in gold, silver, or another precious metal directly, without being taxed
* This would induce the Fed to protect the dollar's purchasing power, and the Fed would stop inflating
* And this would keep prices down and preserve the value of my savings

I don't want an unelected bureaucrat who doesn't even know economic history to determine the value of the money I earn. The Free Competition in Currency Act would be a check on the powers of the Fed, and force it to behave more responsibly or go out of business.

END LETTER

You can send your letter through DownsizeDC.org's Educate the Powerful System.

And we recommend you read these related posts from the Downsize DC Foundation

The Seperation of Money and State

Nations Don't Have Economies

Thank you for being a DC Downsizer!

James Wilson
Policy Research Director
DownsizeDC.org, Inc.

Filed under Peace & Commerce
Blog commenting is currently under construction. In the meantime, you can send an email if there's something you'd like to tell us.

What Can We Do For You?

We can help you downsize the federal government, if you want that. All you have to do is join. It's free! In return...

We'll give you an army.

We're recruiting a huge army of supporters to work for what you want.

We'll give you influence.

The Downsize DC Army will exert relentless, resistance-numbing pressure on Congress.

We'll make your voice heard.

We'll use our growing army to make your beliefs heard by everyone, everywhere, every day.

We'll give you winning strategies.

Ideas like our "Read the Bills Act" and the "One Subject at a Time Act" will give you the leverage to win the public debate, control Congress, and Downsize DC!

We'll give you powerful tools.

  • Your free membership includes a subscription to our free email newsletter, the Consent Chronicle, which national talk show host Jerry Hughes calls by far the best newsletter he receives.
  • You'll be able to use our Educate the Powerful SystemSM to pressure Congress. It's easy. All it takes is a few mouse clicks and keyboard strokes. You can do it in your bathrobe while you're drinking your morning coffee, or during a break at work.
  • You'll also gain access to our 16-page strategy document, "The Downsize DC Vision." You'll learn about important insights like "ignoring an axiom," and powerful strategies like "picking off the herd." One reader called this document "the unified field theory" of political change.

To gain these benefits, just enter your email address in the box below and hit Subscribe!

Subscribe to the Consent Chronicle
Enter your email address twice: