Texas Straight Talk

A weekly column

Faith-Based Currency

The Latin term “fiat” roughly translates to “there shall be”.  When we refer to fiat money, we are referring to money that exists because the government declares it into existence.  It is not based on production or earnings, and not backed by any commodity.  It is solely based on trusting the government.  Fiat money is exchanged in the economy as long as there is faith in the government that issues it.

 

Some are blaming the recent shakeup in the markets to “whining” or financial fear-mongering, which misses the whole point.  History has shown that fiat money, or “faith-based currency” always fails, because when governments claim this power, they always behave irresponsibly.

 

When government has the ability to create and spend all the money it wants, priorities shift, and the concept of budgeting, as most Americans know it, loses all meaning.  Hand a teenager a credit card, and tell him there is no limit and no accountability for what he spends, and the effect would be the same.  You see, this problem is not unique to our government.  It is a predictable outcome based on human nature, and we’ve seen variations of what we are experiencing now happen over and over throughout history.  I didn’t have a crystal ball or a fortune teller when I predicted this 3, 7, or even 30 years ago.  Actions have logical consequences.  The government becomes the reckless teenager with the credit card, and in the end, the taxpaying citizens get the bill.  What happens after that is never pretty.

 

This is why our founding fathers considered, but decidedly rejected the creation of a national central bank.  They understood that governments, even the best of governments, cannot control spending.  Even the current administration, which promised strict fiscal responsibility, has had to increase the national debt limit by 65 percent to keep up with its spending sprees.  Every dollar created and spent by government makes the dollars in your pocket worth less and less.   Eventually any currency controlled by government will be debased to worthlessness, and will wipe out the savings of the citizens who put faith in that currency.

 

Hard currencies, on the other hand, force governments to remain in check, strictly limited to the revenues they can raise from the country’s economic health.  This is also an incentive for government to stay out of the way of productivity.  The hyper-regulation in today’s economy demonstrates that this is no longer the case.  What does it matter if the economy is crippled and the tax-base eroded, if government can create whatever dollars they need to keep the special interests happy?

 

We have been building economic castles on the sand, and the tide is coming in.  The answer is not to bring in more sand, but to move to more solid foundation.

 

So yes, it is true that many are complaining about our economic trouble, but our economic trouble is not caused by their complaining.  Many are being forced to wake up to the predictable troubles associated with faith-based currency.  As more people notice the hardships, more will lose faith.

 

We are long overdue for a course correction and I can only hope that this awakening translates to a solid approach to currency reform.

 


Feel free to leave a comment.  Your comment may not appear immediately.

Posted by Ron Paul (07-21-2008, 12:13 PM) filed under Monetary Policy

Comments

Comment by Bob Gomez
July 21, 2008 12:30 PM
I see a typo in paragraph four. What is "65?o"?

Excellent essay.

Do we still have gold in Ft. Knox vaults? If not, send the Marines to London and bring it back home.
Comment by Mark Cross
July 21, 2008 12:41 PM
You sir are my president, now and after the November elections. Thank you for your lifelong defense of the Constitution and human liberty. You inspire me and countless others to emulate that defense. Current events vindicate your counsel and warnings, and will continue to do so. Future generations of Americans will look back on today's political establishment as a black hole, with one brilliant exception, the TRULY Honorable Rep. Dr. Ron Paul. Peace be with you and your family now and always.
Comment by David Burns
July 21, 2008 12:41 PM
Dr. Paul, once again you have hit a home run. Thank you for your insightful analysis and keep up the fight for liberty. You are everyone's hero, whether they know it or not.
Comment by Donna May
July 21, 2008 12:46 PM
WEll, first let me say I trust Ron Paul because of his integriety,experience, knowledge and heart toward an america I usto to know. I am 64 and remember.
I love these updates on freedom watch because I get to hear him speek, which is always full of wisdom. My response to this one is colored with confusion because of a recient video I watched. It seems to me that our currency will not matter. The video featured a man called Lindsay Williams. He talked about the world powers called IMF and the world bank. Looks to me like they call the shots. If this stuff is true, then currecy will be baced on oil and those men will decide our future. Even though the largest oil fields in the world are in our country, Alaska, how would we ever get out of the cluthches IMF and the world bank.
They will decide currency, wars, elected offical...everything. Right?
Comment by Jared
July 21, 2008 12:47 PM
It is an article like this from Dr. Paul that reassures me of his policy points during his presidential campaign. This republic would be much better off with a President Paul...

In Liberty, Jared
Comment by Wesley H. Davis
July 21, 2008 12:55 PM
Mr. Paul has BINGO again!!

When we let the government run the education system, the education system fails and those who came thru the failed education system come back to run the government.

When we let the government run the banks (or perhaps it's the other way around) the banks fail and the failed banking system ends up running the government.

The dangers that we face today can be traced directly to our historical blindness.

Thank you Mr. Paul for your pin-point historical vision!!
Comment by Casey James Brown
July 21, 2008 01:02 PM
I don't know what else to say, so I will simply repeat what I said when I met you in Des Moines.

Thank-you,
Dr. Paul.
Comment by Dennis Smith
July 21, 2008 01:03 PM
Dr. Paul,
I'm 68, and you are the first politician I ever gave money to. You are an inspiration.

Re fiat money: Off with the FED's head. They should be summarily dismissed for both corruption and incompetence. If we got rid of these rapacious central bankers, and if Congress took back control of our "money", we might have a chance to insulate America from what has been correctly identified as the coming "Long Emergency".

Regards,
Dennis Smith
San Diego
Comment by Jim Manly
July 21, 2008 01:06 PM
What steps would likely be taken to "a solid reproach to currency reform"?
Comment by Kevin Moore
July 21, 2008 01:07 PM
I hope you get on the ticket with Chuck Baldwin and the Constitution Party.
Comment by Matt
July 21, 2008 01:09 PM
Words alone are not enough to express my gratitude Dr. Paul. You have been and continue to do this country a great service and I applaude you! Thank you for everything!
Comment by banner conanan
July 21, 2008 01:11 PM
This is the #1 issue in the US, and really has been for years. I've already put much of my money into gold - I did so back in 2003, but I have limited capital and still need to keep dollars open for various necessities, being that I lvie in the US. And I still need to hold onto a job. Things are going to get very ugly in this economy - worse than any of us think unforunately. In the 80's when Volker raised rates, at least bonds were owed to other Americans. Now they are mostly financed by foreigners which is a big difference. When they diversify out and interest rates skyrocket - watch out. It will be devastating.
Comment by DPH
July 21, 2008 01:12 PM
In 1964, gasoline cost about 30 cents a gallon. 1964 was also the last year our coins were minted with a 90% silver content. Today, the silver in three 1964 dimes is worth about $4.00, or, amazingly enough, the price of a gallon of gas. Energy prices measured in real money have not changed in over 40 years. The value of our dollar has just been reduced by 93 per cent.

It really is just that simple. Hopefully, enough people will come to understand this before the Fed is granted even more power to destroy our money.
Comment by Patrick McCarthy
July 21, 2008 01:12 PM
Greetings;

All of America’s fiscal problems and social ills are based in mankind’s failure to live in accordance with Spiritual Law, learn from the mistakes of the past, be ever vigilante in regards to the rise of evil and totally comply with all of the constraints and mandates found in the Constitution!

Timothy 6:10 “For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.”

Today, many people promote and justify Fractional Reserve Banking and the Federal Reserve Banking System. Even though, they were designed to enrich the few, by enslaving the many. Via a thoroughly corrupt and ungodly system of unjust weights and measures that has usury/interest attached to imaginary loans.

Leviticus 19:35 “You shall not cheat in measuring length, weight, or quantity.”

Leviticus 25:37 “Thou shalt not give him thy money upon usury, nor lend him thy victuals for increase.”

Thomas Jefferson wrote this in a letter to John Adams, in 1787: "All the perplexities, confusion, and distress in America arise, not from defects of the Constitution, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation."

Thomas Jefferson wrote this in a letter to the Secretary of the Treasury, Albert Gallatin, in 1802: “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them, will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.”

Thomas Jefferson’s prophetic beliefs constitute the true state and nature of reality today!
Congressman James Traficant, Jr. read this into the Congressional Record on March 17, 1993: “Prior to 1913, most Americans owned clear, allodial title to property, free and clear of any liens or mortgages until the Federal Reserve Act (1913) “hypothecated” all property within the federal United States to the Board of Governors of the Federal Reserve, in which the Trustees (stockholders) held legal title. The U.S. citizen (tenant, franchisee) was registered as a “beneficiary” of the trust via his/her birth certificate. In 1933, the federal United States hypothecated all of the present and future properties, assets and labor of their “subjects”, the 14th Amendment U.S. citizen, to the Federal Reserve System.”

“In return, the Federal Reserve System agreed to extend the federal United States corporation all of the credit “money substitute” it needed. Like any other debtor, the federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the federal United States didn't have any assets, they assigned the private property of their “economic slaves”, the U.S. citizens as collateral against the un-payable federal debt. They also pledged the unincorporated federal territories, national parks forests, birth certificates, and nonprofit organizations (all 501c3 church's), as collateral against the federal debt. All has already been transferred as payment to the International bankers (moneychangers).”

“Unwittingly, America has returned to its pre-American Revolution feudal roots whereby all land is held by a sovereign and the common people had no rights to hold allodial title to property. Once again, “We the People” are the tenants and sharecroppers renting our own property from a Sovereign in the guise of the Federal Reserve Bank. “We the People” have exchanged one master for another.”

Benjamin Franklin wrote this in his autobiography: “The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the International bankers (moneychangers) was the PRIME reason for the Revolutionary War.”

President James Madison (4th President): “History records that moneychangers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”

Matthew 21:12 “And Jesus went into the temple of God, and cast out all of them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves,”

Andrew Jackson (7th President) said this to a group of International bankers (moneychangers) he was addressing in the 1828 presidential campaign: "You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, will rout you out."

Senator Daniel Webster read this into the Congressional Record on March 4, 1846: "A disordered currency is one of the greatest political evils. It undermines the virtues necessary for the support of the social system, and encourages propensities destructive to its happiness. It wars against industry, frugality and economy, and it fosters the evil spirits of extravagance and speculation. Of all the contrivances for cheating the laboring classes of mankind, none has been more effectual than that which deludes them with paper money."

Congressman Ron Paul read this into the Congressional Record on June 5, 2002: “Gold is history's oldest and most stable currency. Central bankers and politicians hate gold because it restrains spending and denies them the power to create money and credit out of thin air. Those, who promote big government, whether to wage war and promote foreign expansionism, or to finance the welfare state here at home, cherish this power.”

“History and economic law are on the side of the gold. Paper money always fails. Unfortunately, though, this occurs only after many innocent people have suffered the consequences of the fraud that paper money represents. Monetary inflation is a hidden tax levied more on the poor and those on fixed incomes than the wealthy, the bankers, or the corporations.”

Richard Russell stated in “The Daily Remarks” on August 21, 2006: “Under the current system with a central bank creating and controlling our money, you are guaranteed to lose purchasing power two different ways- via taxes and via inflation. The central bank system is the greatest scam ever perpetrated on an ignorant public. The eternal enemy of every central bank is- gold.”

People tend to forget, that the laws that govern the physical universe, apply to all aspects of their lives. Be it construction, economics, finance, government, industry, law, science, technology and religion. When things are built on a sound foundation, they stand the test of time. When things are built on a corrupt foundation, they decay and crumble.

Matthew 12:33 “Either make the tree good, and its fruit good; or make the tree corrupt, and its fruit corrupt: for the tree is known by its fruit.”

The Federal Reserve Act was railroaded through a carefully prepared Congressional Conference Committee scheduled from 1:30 a.m. to 4:30 a.m. on Monday, December 22, 1913, when most members were sleeping. The 40 substantial differences in the House and Senate versions were supposedly described, deliberated, debated, reconciled and voted on, at the rate of 4 1/2 minutes per item, in those early morning hours.

At 4:30 a.m. the Congressional Conference Committee’s report was handed to the printers. Senator Joseph Little Bristow, serving as the Republican Senate leader; stated in the Congressional Record that the Conference Committee had met without notifying them.

The Conference Committee’s repor
Comment by Christopher Hightower
July 21, 2008 01:12 PM
It comes down to limiting government, limiting the power of a central bank that funds big government. Both parties are the same option, big government. Neither, care to take on the real problems. Neither, uphold the constitution or represent the people. Promises of social welfare or city or state expansion buys votes. Government has drifted out to sea, from the land of Liberty.
Comment by J.B.
July 21, 2008 01:15 PM
Bob Gomez, you must have problems with something. I show 65 followed by the word "percent" in paragraph four. And what do you think a broke country like GB has? To Donna May, yes, we are pretty much powerless. The mainstream media is bought off which is why you saw the so-called pundits smirking, laughing at and calling Ron Paul a kook during the debates. They cannot let anyone who would dare threaten the status quo be seen as having any credibility. Unfortunately, the only thing you can take to the bank is what Ron is telling you.
Comment by Jim Obenschain
July 21, 2008 01:16 PM
Congressman Ron Paul analysis on ‘Faith-based Currency’ is crystal clear, and you won’t read his views in the New York Times or hear it on CNN. There is however, an organization that has for many years not only championed Ron Paul and his efforts for fiscal responsibility, but has a successful educational action program working for the same end. Recently Dr. Paul had this to say about that organization; “The John Birch Society is a great patriotic organization featuring an educational program solidly based on constitutional principles. I congratulate the Society in this, its 50th year. I wish them continued success and endorse their untiring efforts to foster ‘less government, more responsibility — and with God’s help — a better world.”
That’s quite an endorsement. So check them out at <jbs.org>, and get involved.
Comment by Marvin
July 21, 2008 01:19 PM
Just as four years ago I will continue to vote for Ron Paul whether on the ballot or not.

He is a life-saving doctor not just for babies, but the whole country! Others (of whatever party) will only kill it.
Comment by Ben Johnson
July 21, 2008 01:19 PM
The question becomes, what are we going to do about it? I think many American's know what is taking place. The question becomes when do we act and take back our government because until Americans unify, Congress and the Bush Administration will always characterize us as a nation of Whiners!
Comment by Fred Cummins
July 21, 2008 01:21 PM
write in Ron Paul on your Presidential ballot this fall. The campaign is on and you can help spread the word "Write Ron Paul" in for President. Dr. Paul is the divine Intervention that has been put into place and it is up to us to get him elected.
Comment by Michael Z
July 21, 2008 01:27 PM
Donna May,

I would say that if the "powers that be" have their way, then yes, they will decide all these things. However, if the American people reawaken their sense of outrage, personal responsibility, and individual liberty then I think we'll make it very difficult for them to accomplish those goals.

I pray that we act in a manor that would make our founders proud that their people have not forgotten the indelible legacy of freedom.
Comment by Smitty
July 21, 2008 01:30 PM
I heard Bob Brinker during the primary say once that Ron Paul was least economically astute candidate of the lot, I had to chuckle.

His show is sponsored by one of those giant funds stuffed with Fannie Mae backed bonds.
Comment by Howard Bernbaum
July 21, 2008 01:30 PM
What's the difference between stealing from the taxpayer and just plain stealing. I think all 535 are criminals. Those that watch are no better than those who do the stealing.
Comment by Antifederalist
July 21, 2008 01:33 PM
Let me begin by stating that I voted for Dr. Paul over McLame in the DC primary and I'm currently reading Dr. Paul's book, "The Revolution". Dr. Paul is one of my favorite members of Congress...but the monetary policy issue is one where I'm still not sure I agree with him. I agree that governments cna be fiscally irresponsible if they believe they can get away with it...BUT, there ARE downsides to fiscal irresponsibility. Dr. Paul suggests there are none in this article. If a country is fiscally irresponsibly, they face a weakening currency, also borrowing incurrs interst charges, and if you borrow too much, not only can this affect the nation's credit rating, but interest charges can eat away at the budget. Additionally, this nation faces a looming entitlement spending crisis. Soon, Medicare, Medicaid, and Social Security will take up every tax dollar and we'll have to borrow just to cover the rest of our expenses unless we impose socialistic Euro tax rates or slash entitlement spending to the quick. So, I should have outlines the downsides to profligate government spending, even in a fiat money system.

What else concerns me about commodities based money is that commodities can be manipulated, and commodities can crash. We've seen natural gas prices manipulated by Amaranth, so, it stands to reason that if one commodity can be manipulated, so can others, like gold, silver, and other precious metals. Additionally, Spain at one point based their currency on gold. Conquistadors brought so much gold home that it flooded the market with gold and the price of gold dropped drastically. I fear that if we peg our money to commodities, a mad rush to mine money will result in market crashes and a resultant devaluation of the dollar.

I've not made up my mind on this issue. If anyone could provide counter-arguments to rid me of my concerns, i'd be appreciative.

As for the poster above claiming that the IMF and World Bank call the shots...I don't see how. I know the World bank makes loans to developing nations to improve their infrastructure, but this is disasterous and doesn't encourage developing nations to fend for themselves. The IMF supposedly aids monetary exchange betweennations and aids with imbalances in payments between nations. Not sure how either entity could control what our currency is based on, call the shots, etc.
Comment by Dorsett Bennett
July 21, 2008 01:47 PM
I am a 55 year old lawyer who was a lifelong republican until last year when the neo-cons finally drove me to become an independent. I spent about $2,000.00 in one way or the other supporting your campaign. If the republican primary voters would have pulled their heads out, you could have beaten Obama in a general election. As pathetic as [Shiite; Sunni, what the hell is the difference!] McCain is, he will give Obama a good run. McCain [I do not know much about the economy---even though I have been in congress for 26 years---but it is great to dump your family and marry a pretty rich young thing 18 years your junior] verses Ron Paul, who has actually written books about the economy. Just how incredibly stupid are the republicans? Seeing Democracy at work can cause one not to be all misty eyed about it. Sigh!
Comment by Michaeline Dilworth-Adkins
July 21, 2008 02:05 PM
Hear, Hear! And this is why the Apostle Paul in the New Testament said we should "owe no man anything except love, which is a debt one can never repay". What is folks had stayed debt free and we, as a nation, stayed debt free. What if we (gasp) saved up our money to buy something new instead of buying on credit. We would be no man's slave.
Comment by David Whittenbarger
July 21, 2008 02:27 PM
Ah yes! This is the Ron Paul Revolution at its finest. Attacking the heart of the Federal Beast! Money! Enforce the 10th Bill of Rights and we will bury the evil that has become our Fdedral Gov't.
Comment by Michael
July 21, 2008 02:30 PM
This essay introduces what is at the heart of our current economic problems, namely the surrender of the country's financial system that began with the creation of the Federal Reserve. To this day, an astonishing number of people are unaware that the Federal Reserve is, for all intents and purposes, a private, unregulated institution that is headed by prominent Wall Street and banking executives, and not a government run agency looking out for the interests of the American people. In his excellent questioning of Fed Chairman Bernanke a few months ago, Congressman Ron Paul pointed out that the Fed's books have never been audited - an astonishing fact given the virtual wholesale control over our monetary policy that the institution holds. In response, a smirking Bernanke commented that he would be happy to come before our elected representatives and "answer questions" about the Fed's operations - an arrogant, demeaning statement that certinly falls far short of allowing a thorough and proper audit. In 2004 I reported to the Fed concerning improprieties at a major money center bank, one that is all but collapsing today. Although I was able to provide substantive evidence that the bank's legal and audit functions were compromised, and that the bank had no meaningful internal controls, the Fed took no action. Four years later the proverbial chickens are coming home to roost and this particular bank is becoming a poster child for what will likely become a collapse of our banking system in the very near future. The problems we face are more than dire. The incompetence of Paulson in the Treasury Department and Bernanke at the Fed is nothing short of treason. The solution to date has been to engineer illegal and taxpayer sponsored bailouts of the likes of Bear Stearns, but the problem is systemic, and finding somewhat solvent institutions to merge with those about to go under only further weakens an already broken system, as does providing new "liquidity" by printing money backed by the issuance of new debt. Calls for "regulation" and the illusion of further oversight for the banking system is a joke, as existing rules aren't enforced, and anything short of a government takeover of the Fed is akin to letting the crooks run the prison. Furthermore, Paulson allowing the corrupt Fannie Mae and Freddie Mac to be likewise "rescued," again at taxpayer expense (and with the blessing of senators and congressmen who have benefitted from the lobbying dollars these institutions have spread around Washington) again mortgages our future while permitting those in charge to bilk our country of billions of dollars. Our nation is rapidly facing one option only, an action that would effectively place the United States in receivership. The day when we are begging holders of US securities to forgive our debt (much as Latin American and African nations have been forced to do) is not far off.
Comment by Ron Van Dyke
July 21, 2008 02:31 PM
I like Mr. Paul's article; however, the problem is NOT fiat currency! The problem is a private bank (The Fed) creating currency for the private government (USA, Inc.) at interest to fleece the flock (citizens). Usury and fractional reserve banking are the real problem. Watch The Money Masters (www.themoneymasters.com) for an in-depth analysis of the situation we face in America and the entire world. If we go to a gold-backed currency, or any other precious metal, those who hold the gold will continue to make the rules. Lest you think governments hold the gold, think again. It is, as it has long been, the international bankers, the so-called money trust, that has confiscated the vast majority of the world's precious metals. To have them issue a non-fiat currency would change nothing. These are criminal minds with an insatiable lust for control over the entire world. Their ponzi scheme has gone on for centuries, and finally it is coming home to roost. People are waking up.

While I have been an active supporter of Ron Paul - even on this issue - I have learned more about the situation after watching nearly four hours of the video mentioned above. We must hold the robber barons accountable for the banking fraud they have committed against the entire human race. There is only one real issue we face: lack of integrity and accountability of those we have allowed to co-opt our nation...and all nations of the world. All government must be open to the people. "For reasons of national security" only protects the criminal element from being discovered.

Let's get Ron Paul and Dennis Kucinich on the same ticket to save our nation. They have different viewpoints, which is wonderful, AND both are men of integrity. And while we're at it, let's somehow get Cynthia McKinney in there as well: a black woman with integrity and courage. Now there's a combination I could trust to work through the issues to put honesty and common sense in the seat of power. They would candidly report the issues to the people as they worked to restore America and begin the process of healing the world.

Finally, we need a change in human nature, which can only come from spiritual awakening. First truth, then justice with mercy, and finally the love that recognizes the Divine in everyone. A house divided against itself cannot stand; and a polarized world is on course for self-destruction. We all stand at the crossroads. The Creator beckons us to open our hearts and minds to see the new beginning we are offered.
Comment by sheep69
July 21, 2008 02:57 PM
All gold ever found equals a cube 66x66x66 feet, worth 1.4 trillion. Paper money circulating in the world 100 trillion. Every Gov, provice, state and city is creating wealth out of thin air, to keep the masses happy. Blue horseshoe loves precious metal...buy some, unless you have Faith in the Governments...not...
Comment by Chuck D
July 21, 2008 02:58 PM
Dr. Paul's essay is excellent. Unfortunately, too many American citizens are too poorly read, un inadequately versed to recognize the core concepts (and larger ones) were clearly thought through and expressed in "Atlas Shrugged" Ayn Rands classic work is now required reading in several universities, and used to be require by Ohio State University's School of Business.

The Objective think should also download "The Creature From Jekyll Island,' and learn how corrupt our banking cartel truly is, and to what length's CONgress will go to protect its monopoly on your wallet. Like minded people should also download Aaron Russo's video regarding the IRS and OCNgress - before Oboma and the Socialists have it remove from your ability to access.

Remember: Destruction of stable monetary systems is but onw of Karl Marx's 10 planks of the Communist Manifesto.

We need Dr. Paul, and many other like him. Dr. Michael Save is also Right: Liberalism IS a mental disorder!
Comment by Gillette Alvin
July 21, 2008 03:10 PM
I am so fed up with Washington’s concept of "democracy" and "capitalism" that I'm rapidly drifting away from the whole concept of the great American way. One thing is plain to me, we are "over" as a world "force", "influence", or "leader". GWB, (and the followers of his axis of evil), have manifested the dying final days of glory for Old Glory. When I saw a couple of the debates where the likes of McCain, Romney, and Gulliani showed their pomposity, ignorance and arrogance by snickering and leering at the comments of Dr. Paul, I was pretty well convinced that the system has already removed the power from us, the constituency.

What no one, except Dr. Paul, is talking about, is the fact that as a nation, we are broke. We have no money, and we have huge debt. If any one of us ran our households or our businesses this way, we would be locked up in prison. The craziness of our spending on GWB’s wars has about finished us off. As I understand it, Bush’s wars are the first in history completely financed by debt. In our usual arrogance, we have acted as if we had the money to continue on. We don’t. Look at the deficit. We are broke. Until someone in Washington steps up and admits this to us and the rest of the world, look for continuing status quo.

As a people, we have become fat, complacent, and incredibly lazy. Our interests don't reach much beyond our "entertainment" and our "comforts". NASCAR, football, and American Idol are what is important. GWB, Barack Obama and John McCain are excellent examples of the "best we could do" toward choosing a leader. It really is naive to believe that we, “the concerned” have the power to change much of anything, sadly.

My 65 year old gut reaction is that the only chance for us now IS an out and out revolution. A complete removal, by force, of the filth and lies of the politicians, corrupt lobbyists, and fat cat lawyers is what is needed. In order to affect a return to the goals of our founding fathers, we’d have to do what they did during the American Revolution. Unfortunately, our soft under bellied citizenry more than likely wouldn’t be able to pull it off. It would appear that the only warriors we have left are under the control of what needs to be eliminated. Thus, our immense sense of complacency will allow us to sit back and fiddle while our once promising country goes, quite literally, up in smoke. Sad indeed.

The karmic pendulum, pushed by our dreadful treatment of the Native Americans, African Americans, along with our own poor, and all of the others we have slaughtered, neglected, ignored, and demeaned over the last two hundred plus years, has finally begun to swing back, long overdue. Our time in the spotlight has come and passed. The current decline of our once meaningful voice in the world has already faded. God help us.
Comment by Alfred Ducharme
July 21, 2008 03:12 PM
The media has decided that either BHO or McCain will be our next president so we can be certain of more excess and bad government. If the media were not controlled in so few hands we might actually have the kind of free press and free speech our Founders knew was required to insure good government. With an honest, objective and diversified media ownership, Ron Paul might have been able to discuss his good ideas with the American people and have a real chance at being elected.
Comment by Mark Rossetti
July 21, 2008 03:15 PM
Gee Congressman Paul, Our country is going down in flames and only a few of you in the position to do something are trying your best, and I thank you. What you've done...literally is wake up millions of Americans. After seeing this, a few true patriots have set up a website to try and reach the masses with the same message as the one you have used...truth ! This website is called usa180.org Those at usa180 have done all that they can to reach these same people, but with only small success...but more is sure to come. I ask you and all of your faithful followers (like me) to take a look at OUR ( The American Citizens) site, and if it is to your liking, to join us. Our site is non-biased and set up..(we're trying our best) as something that Gandhi would have been proud of. I can't imagine what your schedule is like...but maybe this would add to taking some of the load off of you...Please check us out. Thank you sir. Yours, National deputy Director/usa180.org Mark Rossetti
Comment by John
July 21, 2008 03:41 PM
Ron Paul... Hitting home runs without steroids.
Comment by kjdamrau
July 21, 2008 03:49 PM
Dr. Paul:

Whether purposely or not, you have confused two completely separate issues. The government's inability to control its own spending has nothing to do with the fact that we have a central bank, nor with the fact that the U.S. dollar is fiat money.


Consider this: how many people actually know what fiat money is? How many know that the U.S. dollar is fiat money? How many people's behavior was influenced by this knowledge? Did anybody reading your blog burn their dollars, knowing that they are backed "merely" by the full faith and credit of the United States? Has any foreign government resisted buying U.S. treasury paper because they will only be paid with fiat money?

I can see where whipping up uninformed individuals has some political payoff, but I think that you may have some kind of duty to be intellectually honest.

What is your alternative? The gold standard? Are you completely nuts? The entire world went off the gold standard because it was inflationary and unsustainable. As an apparently educated man, you surely know this. I fail to see the political upshot to making people believe that the gold standard (for instance) has a place in the modern world.

You and your supporters here make contradictory points here, too. On the one hand, you lament the government's inability to keep its financial house in order. Then you lament the fact that the government has no power to oversee the Fed. The whole point of the Fed is that it is an independent organization, as free as possible from politics and politicians. Monetary policy is an immensely complicated topic and should surely not be dictated by the fact that Ron Paul's constituents back home would like to see the interest rates adjusted this way, or the money supply changed that way.

You are doing your readers a disservice . Instead of gaining popularity by feeding them what you surely know to be false, you could use this forum to educate people these complex issues.

Remember, there are good reasons why complex matters are handled by educated, intelligent and experienced people. Presenting these issues as something that any Joe on the street could competently handle, or even comment on, is ludicrous.
Comment by Old golfer
July 21, 2008 04:04 PM
Dr. Paul,
What can the "little guy" do to protect the buying power of his "fiat" currency?
Both political parties will spend and borrow us into bankruptcy.
Comment by Bernard Palmer
July 21, 2008 04:07 PM
Dearly beloved Ron Paul,
If as you say "Eventually any currency controlled by government will be debased to worthlessness", then a world wide return to a gold standard is inevitable. This collapse of the US dollar could mean all government owned gold and silver would probably need to be equally distributed to each US citizen with more gold being raised by a fire sale of government owned property.
A family of 4 could receive around $3500 in gold at today's prices seeing that the government holds about 8600 tonnes of gold @ $30 a gram. This might tide them over the collapse of the world monetary system and the introduction of a unadulterated gold standard which should take no longer than 1 month to implement once the US Mint is opened to everyone to convert their own gold into gold currency.
http://www.primaryfundamentalright.org/index.php?pageName=pfrWhatIs
Comment by Wesley
July 21, 2008 04:29 PM
I work for a newspaper and when I heard last fall that the Fed was going to inflate the money supply I asked one of the editors if he could ask our readers what do they think will happen when the Federal Reserve inflates the money supply? I was told that most readers have no idea who the Federal Reserve is and how inflating the money supply affects the economy?

As a result of the Federal Reserve's actions I am almost out of a job. Our advertisers have cut way back and management has never seen revenues this low. With no advertisers it makes it hard to design ads.

I thank you Dr. Paul and wish you were running the country.
Comment by Travis Peterson
July 21, 2008 04:35 PM
Please Dr. Paul, how would you advise us individually to protect the money we have in our personal accounts if in fact the dollar becomes totally useless?
Comment by Doug Eberhardt
July 21, 2008 05:24 PM
Comment by kjdamrau
July 21, 2008 03:49 PM

kjdamrau, you wrote that the gold standard was inflationary. You are wrong. It was the gold backed paper standard that was inflationary.

Read "The Gold Standard" written by intellectuals on the subject whereby the last chapter is written by Ron Paul.

In this last chapter he calls for a gold standard of metal, not "paper backed." Surely an intellectual as yourself would know the difference or at least read a little about Ron Paul's thoughts on the Gold Standard before criticizing.

This type of metal backed gold standard does away with the government's opportunity to manipulate or debase the currency. This also puts "golden handcuffs" on congress so they just don't print money out of thin air to pay their bills, but rather live within their means.

Lastly, the Keynesian economics education spewed by our universities, including Harvard MBA's and Wharton PhD's have been hired by administration after administration, both right and left and have done such a fantastic job with their "we know more than you about economics" education so far haven't they?

9.3 trillion of debt and the necessity to borrow more (hidden tax called inflation) and tax more (you ain't seen nothing yet) policies have sure served We The People well haven't they?
Comment by Salah Mounir
July 21, 2008 05:52 PM
I escaped from Iraq 40 years ago to my promised land (America), but over the years I see our governments and more particularly this one resembling the Iraqi government I left!
Comment by William T. Kane
July 21, 2008 06:25 PM
Kjdamrau's opinion is a big part of the problem.
He believes that monetary complexities must be handled by our "educated, intelligent and experienced"
central planners at the Fed. He fails to understand that in a free economy rates and prices are set by individuals voluntarily interacting with other individuals. No central control is necessary as the marketplace is always on automatic.
Comment by Andy White
July 21, 2008 06:37 PM
It amazes me that this simple concept is so difficult for people to understand. We must redouble our education efforts so when the dollar dies people know who did it.
Comment by Chris Grant
July 21, 2008 06:39 PM
Wonderful writings as always Dr. Paul. If you can't be the President of our country, hopefully at the LEAST, the goofs in D.C. will at least make you Secretary of the Treasury. You'd be a fine man watching over our monetary policies!
Comment by Mike B
July 21, 2008 06:56 PM
Dr. Paul,

I agree with almost everything you say, but I believe the problem to be bigger than can solved by this government.

I believe it is time for the American People to reconvene the Philadelphia Convention. There needs to be explicit language in the Constitution that prevents the kind of Socialist programs that have led Congress to believe that they have the right and duty to guarantee the happiness of the People (and corporations).

Which has led to the Facists declaring that they shall have the right to intefere with private concerns and businesses for the "greater good."

You know it's broke when the government is telling you how to cook your food, who you can have in your club or association, wages war for personal reasons, and has to return money to the People to boost the economy.

If the entire federal government no longer gives even a passing glance to the Constitutionality of their actions, then they have already forfitted the basis of their authority and should be replaced.

Good luck to you in your endeavors. God Bless the American People.
Comment by Mike B
July 21, 2008 06:56 PM
Dr. Paul,

I agree with almost everything you say, but I believe the problem to be bigger than can solved by this government.

I believe it is time for the American People to reconvene the Philadelphia Convention. There needs to be explicit language in the Constitution that prevents the kind of Socialist programs that have led Congress to believe that they have the right and duty to guarantee the happiness of the People (and corporations).

Which has led to the Facists declaring that they shall have the right to intefere with private concerns and businesses for the "greater good."

You know it's broke when the government is telling you how to cook your food, who you can have in your club or association, wages war for personal reasons, and has to return money to the People to boost the economy.

If the entire federal government no longer gives even a passing glance to the Constitutionality of their actions, then they have already forfitted the basis of their authority and should be replaced.

Good luck to you in your endeavors. God Bless the American People.
Comment by Bobby
July 21, 2008 07:03 PM
OK, all of this said, which I agree with, what can we do as citizens, you Dr.Ron Paul tell us, run the ticket, there is no one out there now that I would vote for...Can you run??
One more thing, the only way that our dollar will be powerful again is by the power of an Industrious Nation, if we keep buying shoes and televisions from China, than they will own us on the long run ( and they probably do). Maybe we should consider paying a bit more for shoes that are made in the good old United States, one pair or two pairs are enough, and maybe instead of filling your big RV's tanks to the fullest, maybe a half of a tank is better, supply and demand is our enemy.

America needs to go back to basics, this is what made our country, our Industry and our principles as citizens of the United States of America.....together we can do what has to be done, everything else is pure speculation.
Comment by captainah
July 21, 2008 07:10 PM
Dr. Paul,sir you are the only true republican in our entire government structure today.I have been following your campaign since day one and now i am speaking to you as one of the unfortunate victims of our economy.myself and my family have suffered dramatically due to my unemployment and lack of jobs in the marketplace of my profession. It was truly heartbreaking when you decided to back down from the presidential race, however my family and many of my friends as well as others i have spoken with to write your name in on the ballot come this november election.we as americans support you and will not let anyone other than yourself have the presidency.there is not one candidate that even comes close to you when it comes to the concerns of our country.i beg of you please do not let "them" take the whitehouse again the percentage of the population in this country is supporting you and since you have backed out these same americans are still going to place your name on the ballot.Myself and my family as well as the majority of americans want you sir,Dr. Ron Paul as the next president of these United States of America,for you sir are "The Patriot" of this country of ours .Please make this country a great place again.We The People are in grave danger if any one of "Them" get in office again,if "They" take office again there will be no more United States of America,land of the free and home of the brave.It will become We the sheople and home of the slaves. Please dont let this happen.Dr. Paul I have the utmost respect for you and your patriotism,please dont let it go to waste.For our children and our childrens children,take it and run with it you ,sir have all the support in this country.
Respectfully,
Captainah
Comment by Jenna
July 21, 2008 07:11 PM
You of people deserve to be in the race for presidency. If you were running right now you would turn a non voter into one. I would vote for you definitely! You are one of few politicians to see how absurd our country is being ran and i thank you for fighting for me! I really appreciate it. I just really hope people and whoever can stop them see cause it's not going to be pretty at all. We are not free anymore and until our country can except someone of sure truth then we may never see hope until it's too late. I thank you again Ron Paul! For in my eyes you are a true definition of a hero! Thank you for actually caring!
Comment by Bruce Bessell
July 21, 2008 08:47 PM
Let us divorce the Federal Reserve Banking System, and the International Monetary Fund. They are not part of the U.S. anyways.

Let us return to the Specie Money authorized by the Constitution, AND declare all debt to the FED and the IMF "Paid In Full."

We can let Oil go where it will and switch to Alcohol, Brazil did it years ago, are we that much stupider?

While we are at it let's cancel the Income Tax in favor of a 10% Sales Tax.
Comment by Arthur Ringwalt
July 21, 2008 09:26 PM
Before he ran for Congress, Dr. Ron Paul studied "What Has the Government Done to Our Money?" (5th Ed.) and "The Case for a 100 Percent Gold Dollar" (2nd. ed.), now bound together, by Murray N. Rothbard, . (Mises Institute, Auburn, AL, 2005), 191 pages, www.mises.org . You can also download these essays in *.pdf, free, from http://mises.org/money.asp and http://mises.org/story/1829 .
Comment by Craig Alan Feinstein
July 21, 2008 09:53 PM
Dr. Paul,

It is great to have the privilege to post on your website. I believe the problem goes much deeper than whether the currency is fiat or commodity. The heart of the problem is the fact that that usury is legal - that it is legal for people to make money without any risk.

The formula for compound interest is exponential, which means that there must be an exponential growth in debt of usurious transactions. When this happens, eventually there will not be enough of a commodity to pay off the debts, so the commodity currency must die and a fiat currency must replace it in order for the usury-based economic system to survive. In fact, this is what happened in 1971 when Nixon made dollars completely fiat.

The way to fundamentally take care of the problem is to make usury illegal, where usury is defined as making money without risk.

Furthermore, usury not only adds instability to an economy - usury as an institution is immoral too. The end result of a usurious transaction is the same as the end result of a theft in that one of the parties loses while the other party gains. The only difference between theft and usury is that usury is voluntary - but usury is voluntary in the same way as if you were in the desert with no food or water and I charged you thousands of dollars for a glass of water, you would probably volunteer to engage in the transaction and pay me thousands of dollars for the glass of water.
Comment by Eric
July 21, 2008 10:38 PM
I am so thankful that SOMEONE in Congress gets this and is willing to talk about it. At times I am amazed at the peoples' belief that if we ignore these things they will go away. Is it truly too late to restore the U.S.? Keep giving the warnings, Dr. Paul. Perhaps some will listen!
Comment by Roy Stewart
July 21, 2008 11:53 PM
WRITE IN RON PAUL !

A second Bill of Rights is needed.

Vote out the 'DC Aristocracy'.
Aristocracies are anathema to Freedom!

WRITE IN RON PAUL !
Comment by I'm Eric, WhoRU??
July 21, 2008 11:57 PM
I host Eric WhoRU Promotes Ron Paul for President on www.wtprn.com M-F Midnight-2:00 AM (central).

I have a 70 minute Solution video, "America: From Fascism To Freedom" that presents a means of funding government with the interest collected on Central Bank loans to private sector borrowers.

This Solution will eliminate all the problems inherent in the private ownership of the Federal Reserve and at the same time eliminate all taxes in the entire country.

http://video.google.com/videosearch?q=eric+whoru

All paper money is not unbacked fiat money - paper money brought into circulation by private sector borrowers is backed by the productivity of the borrower - this is a point that Ron Paul seems to have overlooked.

When gold is used as money the lending to private borrowers (and to government) will always be privately owned and private sector borrtowers will always be subject to foreclosures caused by the imbalance of the circulating supply of gold just as under paper money!

Please watch my video for "The Rest Of The Story".

I'm Eric, WhoRU??
Comment by vlastic
July 22, 2008 01:15 AM
Government sure acts like a teenager: always knows better, never worries about tomorrow, wants to tell you what to do with your life and money, everything is always somebody else's fault and then when s--t happens, comes back crying for more money promising again this time it's the last time.
Comment by ralph
July 22, 2008 01:19 AM
Down with the welfare/warfare state. The financial policy of the welfare state does not allow its citizens to protect their wealth from confiscation through inflation. Gold stands in the way of this insideous process. It stands as the ultimate protector of property rights. Alan Greenspan was a "gold bug". Dr.Paul and the constitution is what We the People want. Not Barack, or Mccidiot.
Comment by bc1812
July 22, 2008 02:08 AM
Thank you Congressman Paul. As someone before this said, "You are MY PRESIDENT!
Thank God, the wheels of real CHANGE have been started rolling, not the false ones by certain candidates for president.
In the dark of night, the Federal Reserve Act of 1913 was pushed through Congress, which acted illegally in voting for it. Every one of those in Congress swore an oath, that they would support the powers of the United States Constitution. However, especially since 1913, it seems that none of our Congressmen know what those powers are! Thank you for standing up for the Constitution, and please, write a bill on the same issue as Oklahoma as far as the 9th and 10th amendments, which have been lost long ago.
I'm happy to know that in Congress, there's one person I can rely on to tell the "Truth". Unfortunately it's not mine, but YOU! Thank You! BC1812
Comment by Mitchell Sloane
July 22, 2008 06:31 AM
From your mouth to their ears, Dr. Paul. That is all I can say. I am amazed gold is not $1500, and silver $50. Someone is keeping these prices down b/c they tell the truth about the state of this nation.
Comment by colonelhurl
July 22, 2008 08:25 AM
Mr. Paul, you are the true and deserving leader of our nation. No other candidate comes even close to truly representing the good people of this nation and their will. When the revolution happens, and it will, you are the man to whom we must turn in order to lead us from the vally of darkness. your warnings and counsel have NOT gone un-heard. The powers that be are certainly attempting to silence you (or at least drown you out) but in vain are their efforts. A large number of people know the score and will stand behind you, by you, and all around you. We must not let the globalists win! we must fight them and to do that we need a real leader. You are he, and I offer my sword and very life to the cause for which our fore-fathers faught and to you, our "Thomas Jefferson" and "George Washington" rolled into one. Lead Us Home!!
Comment by Wesley H. Davis
July 22, 2008 08:32 AM
Comment by kjdamrau
July 21, 2008 03:49 PM

Well at least we've now heard it straight from the horses mouth (or the other end). The educated elite are supposed to be running things and the rest of us are supposed to shut up and enjoy our blissfull ignorance.

I beg to differ with you Sir.
Comment by Frank Livingston
July 22, 2008 09:56 AM
I totally agree with Dr. Paul, I just wish our other politicians would listen to him. It would be great if we seen an honest assessment of how far in debt our politicians now have us. This site might be it. Google, Truth in 2008 and watch our politicians spend our children and grandchildren’s money for years to come.
Dr. Paul, how accurate is this clock?
Comment by Silverbug
July 22, 2008 11:43 AM
Old Golfer & Travis:

The key here is to start converting those accounts in dollars to things that are real and tangible before those dollars lose more value! I'm sure Ron Paul would agree this is sound advice!

I can tell you what I did: #1 no money in the bank!! I use bank acct only to cash a paycheck and debit card (no credit card, I wont buy a stick of gum on credit!) I keep some dollars on hand for everyday expenses and as savings just in case I have some obligation to meet.

#2 Buy Gold and Silver, preferably bullion form (also pre 1933 mintage for numismatic bang for your buck), both as an investment and a hedge! This will hedge the loss in the dollars you have to keep on hand, therefore you have a savings that will keep if not continue to accumilate purchasing power as it has been for me!! Both allamericangold.com and eaglesup.com are a great place to start to buy, and educate yourself more. A local coin dealer might provide you with a good buy and more advice.

This is just the beginning of what you can do, but what I just outlined will lay the foundation.. I also advise buying extra food, fresh water & storage, and a way to defend yourself.. Remember tangibles is what you need not that stinkin debt-usury-fiat-could-become-toilet-paper currency.
Comment by Mike Peshman
July 22, 2008 11:56 AM
Dear Dr. Paul,
Again, right on the mark. The only extras I would like to add are; 1.Like Dennis Smith said above, off with the fed's head. They, however, need to be executed for treason because this central banking scam was set up for just the purpose you stated, Dr. Paul, to spent without accountability while leaving us citizens holding the bag. This will never change unless we citizens demand and pass legislation mandating gold as a backing with the death penalty as a consequence for messing with it's value. Similar to the Byzantine empire's gold standard
Comment by Michael
July 22, 2008 12:21 PM
The above comment by Mr. Eberhardt is excellent. Commentator kjdamrau criticizes Congressman Paul and his supporters by, on one hand, claiming that the Fed is an "independent" institution as "free as possible from politics and politicians." To suggest that the Fed is independent is intellectually dishonest. Take a look at the composition of the board of the Federal Reserve Bank of New York, kjdamrau. Do you mean to suggest that having the chairman of JPMorgan Chase, Jamie Dimon, sitting on the board, constitutes independence? Doesn't it appear suspicious to anyone that this man is on the board of an institution that engineered the takeover of Bear Stearns by JPMorgan Chase while granting Mr. Dimon's bank $30 billion in loans at very favorable terms? This constitutes a conflict-of-interest in any legitimate test, yet the transaction went through unchallenged by all with the exception of a few individuals such as Congressman Paul. To address some of the other criticisms levied in the blogs above, fractional reserve banking and fiat currency are, in effect, the same thing. The ability of banks to lend out multiples of deposits on hand is another insidious way of creating fiat (unbacked) currency, and is, by its nature, inflationary. I do agree with Mr. Van Dyke (above) in his astute observation that banking is a legalized Ponzi scheme through its ability, through fractional reserve banking, to, in effect, and with the blessing of the government, issue counterfeit money. What the gold standard does, as pointed out by Mr. Eberhardt, is to instill discipline in the system. Through this the Fed would become meaningless and could either be shut down or taken over by the government, while the government would be prevented from spending beyond its means.
Comment by David Burns
July 22, 2008 12:54 PM
This comment is in response to kdjamrau - a man so confident in his intellectual ability that he does not need to use his real name on this site.

The arrogance of your comment is staggering. You haven't the faintest understanding of the simple term "inflation," and yet you preach to us that the subject of Economics is too difficult for simpletons to understand.

Now I can pick up a book, read left to right, top-to-bottom, put words together, and form a sentence. Not only that, I can use the reasoned and logical mind that I own to form conclusions from what I have read. I didn't need a degree from Harvard to make that possible. And while I don't dismiss a Harvard education out-of-hand, as that would be illogical as well, I understand the simple idea that a man's mind is what he makes of it.

You, on the other hand, have decided that man's mind is an unchangeable entity. Either one has the intelligence to deal with the complex economic questions of the day, or they do not. No amount of study will change this.

So here is a lesson I will waste on you. I call it a waste, since in your mind, all knowledge has been learned, and there is nothing that can be added to the discussion.

Inflation, according to Websters dictionary, is defined as: "a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services."

Notice the phrase "an increase in the volume of money."

Austrian economists might even argue that inflation is the increase in the volume of money. Price rises are a result of that inflation.

But, hey, what do I know? I couldn't possibly comprehend these complex theories and ideas.

Who is John Galt?
Comment by DK
July 22, 2008 02:15 PM
I would suggest that everyone re-read Antifederalist's and Ron Van Dyke's comments as they make some very valid points.

Regarding kjdamrau's comments that these are complex matters, it only appears to be so because of the great mix on how to handle monetary policy. It's been my belief that people use the word complicated out of fear of true simplicity. The world certainly is not complicated, but we sure try to make it seem so and will give every excuse that it is.

Yes, we do need educated, intelligent and experienced people, but I would want to question where a person received such an education and experience.

Jim Manly asked, "What steps would likely be taken to a solid reproach to currency reform?"

I asked myself this question several months back and have researched a lot of material and while this doesn't make me an expert I can probably say I know more than McCain or Obama profess to. Dr. Ron Paul is not the only individual who proposes monetary reform for sure; though, he's drawn a significant amount of attention to the issue.

Who are those other people? I draw your attention to Stephen Zarlenga and the American Monetary Institute (AMI). Zarlenga has done extensive research and written a 736 page book on money called "The Lost Science of Money." The AMI has actually put together proposed legislation called The American Monetary Act which doesn't get rid of the Federal Reserve, but it does strip them of their power to create and control the money supply, nor does it go back to any unstable commodity such as gold. Essentially the act would allocate money such that it represents real wealth of the U.S., wealth based upon production and consumption.

Some of you have mentioned that we are broke. Do a little research and explain to me how we are broke as a nation. Is it because we have a huge debt? Who do we owe this debt to, the Federal Reserve Banks that printed the money "out of thin air" in the first place? In all honesty, how can anyone expect us to pay back money plus interest when the money is never created to pay for the interest in the first place. This is a mathematical impossibility of which is called usury.

What is money? "Money has value because of skilled people, resources, and infrastructure, working together in a supportive social and legal framework. Money is the indispensable lubricant that lets them “run.” It is not tangible wealth in itself, but a power to obtain wealth. Money is an abstract social power based in law; and whatever government accepts in payment of taxes will be money. Money’s value is not created by the private corporations that now control it (The American Monetary Act)."

If you want a good education about monetary policy and the best way to "fix" our broke policy, check out http://www.monetary.org/.

Another wealth of information is the Michael Journal (http://www.michaeljournal.org/articles.htm) though heavily Catholic based. I don't think any one should rule out opinions and thoughts about monetary policy simply out of any religious dislike.

While I agree with Ron Paul that we need to in essence get rid of the Federal Reserve and the IRS, I don't agree necessarily on a gold standard.

DK
Comment by Tom
July 22, 2008 04:29 PM
I agree that we need to eliminate the Fed and establish a monetary system based on hard assets.

My question is, since they control the military, they control of the Corporate Media and therefore the minds of the people who haven't awaken to what's happeing, and with the advent of the electronic voting machine, they hold control over the election process, how do we extricate ourselves from them?

And if we did manage to do it, where will we get the gold from? My bet is that it's already gone and in the vaults of the Federal Reserve somewhere off shore. How would we get it back?
Comment by John Morgan
July 22, 2008 05:28 PM
Please offer a "printer friendly" option for your editorials.
To "spread the word",they are very useful.John Morgan
Comment by Henry
July 22, 2008 06:00 PM
I am a retired banker of 30 years plus. My job was a work out specialist trying to save small community bank, in all about 8 of them. All of the problems with these banks was the boards and senior managers thought these insitutions to be their piggy banks much like the federal grovernment. Whenever you want to make something out of nothing open a commercial bank or approve government spending without the necessary non-borrowed money. A commercial bank can print money by lending 95% of their deposits (other people'n money)and not be deemed bankrupt. Try to do this in a regular business!
Comment by Don
July 22, 2008 06:23 PM
First of all, be warned that the folks at http://www.monetary,org are only trying to lure you in with some relatively superficial proposed changes to the Fed. The monster will be largely left in place. In fact, they are specifically targeting the "luring" of Ron Paul supporters. Don't believe it? Read at:
http://www.monetary.org/monetarytransparency.htm

Dr. Paul's piece is all too true. Unfortunately, the history of fiat currencies provides an end that is not very nice. That is to say, a collapse (of some degree small or complete) followed by the institution of a totalitarian regime. We already have most of the totalitarian regime in place, trained and supplied. We have replaced gold & silver, a standard of value and stability for over 4000 years, and replaced it with a sorry invention of politics.
Comment by Javier Valles
July 22, 2008 06:27 PM
Thank you Dr. Paul, you are the reason, I have been spending a lot of time since early 2007, educating myself on issues that affect our country. I had never cared about any politician in the past. The time I woke up, was when you educated Rudy in a debate about the reason terrorists attacked us. I had always held this belief and it still amazes me how the public has been accepting the idea that they hate us because we are free. You are the only one capable of protecting America.
Comment by Matt
July 22, 2008 06:46 PM
Our currency system is based on nothing but the public's willingness to accept electronic points and pieces of paper that are created out of nothing and then paid back with the fruits of your labor to benefit the special interests that live on top of society. If our currency was backed by gold, then as the population increases and as society around the world becomes more industrialized, the demand for gold would increase. What this means is that the value of your money would increase just through saving. You could actually save for retirement because your money would grow on its own. Imagine saving a dollar and having it be worth more tomorrow instead of less. Http://www.IAmSoOverMe.com
Comment by the patriot
July 22, 2008 06:47 PM
i hear there is a bull market in metals ,namely steel and lead aka guns and ammo
Comment by Mary Fitzgerald
July 22, 2008 07:02 PM
Dear Ron, Thank you for being a persistent man! I can't imagine what it has taken to watch this mess accumulate over the years.I have read your books and your consistency and clarity of view is awesome!
Thank you also for moving forward with Campaign for Liberty. It gives us hope for the future.
Love, Mary
Comment by John Schluter
July 22, 2008 10:10 PM
Looks like our government intends to follow Zimbabwe's lead. (out of control inflation)
Comment by Marion Wm. Steele
July 23, 2008 08:53 AM
I believe that Ron Paul's wisdom be added to McCain's campaign in the form of a Vice Presidency. I am thoroughly impresssed with all the for-going posts as they all approve of Ron Paul
Comment by Shane Good
July 23, 2008 09:54 AM
TRUTH as usual. Why is it so hard for others to see it? You are my political hero Ron Paul! Keep spreading the word.
Comment by Zed Tompkins
July 23, 2008 11:14 AM
kjdamrau, your words suggest that you are a biased benefactor of the Federal machine by denying their political & financial power they wield over U.S. citizens by manipulating interest rates and increasing or decreasing the money supply. You are probably intellectually dishonest enough to deny the Fed had any role in causing or perpetuating the Great Depression in the 1930's by inflating the money supply during the "roaring 1920's."
America's problems have accrued over decades and unfortunately Ron Paul is only one of a handful of honest, courageous representatives who even suggest reigning in this corrupt bureaucratic monster. Any politician in Washington who isn't walking lockstep with the bankers & Council on Foreign Relations crowd (corporate globalists & socialists) is either marginalized or ignored by our propaganda media networks. Since the Fed was created in 1913 the U.S. has been involved in a multitude of wars solely for the benefit of bankers & corporations. In 1935 America's most decorated WW I Brigadier General - Smedley Butler wrote the book "War Is A Racket" in which he described how U.S. servicemen died in order for corporate & financial bosses to increase their power & line their pockets. How many times have you heard the phrase "America's interests?" In reality, America's interests are ALL of her citizens, not corporate bosses & bankers. So you believe we need the Fed to direct the U.S. Treasury to issue currency to fund wars until our dollar is worthless? I'd rather live in an agriculturally-based economy as a poor farmer than be a slave to corporate traitors who condemn our sons & daughters to die and subvert our constitution. Tens of thousands of Americans died in SE Asia during the 50's & 60's "to prevent the spread of communism." To show their gratitude, U.S. corporations continue to move their factories to communist & third world nations. How any American can still believe the treacherous liars in Washington are representing their best interests is beyond me. If we as citizens conducted our finances like these criminal pieces of filth, we'd be thrown in prison or executed. The only course of action I can see to take is to support true patriots such as Ron Paul & to starve the beast in Washington who oprresses us. Refuse to contribute any more of the fruits of your labor to the globalist pirates who suck the money out of your wallet & spill the blood of your sons & daughters on foreign battlefields.
Comment by Abolish Fractional Reserve Banking
July 23, 2008 11:55 AM
As much as I love Dr. Paul he does not mention that money manipulation is still possible even when there is a Gold standard. There are many examples in history. It is much better than any central bank but to really root out what we are fighting here is to abolish the fractional reserve banking system and usury. If you look at money as just another commodity, one that everyone wants and needs and you have a monopoly on it, it is easy to manipulate it to aggregate wealth. That includes Gold. Watch "The Money Masters" to get a great grasp of what the root of the problem really is. http://www.themoneymasters.com/mra.htm
Comment by Jacqueline
July 23, 2008 12:19 PM
Rep. Ron Paul: I feel is already President, but he must be sitting in the Oval Office in order to sign laws. How does one write in his name on a ballot that has only two candidates on the ballot or is Rep.Ron Paul going to be on the ballot ? Or is there a write in space? I would like to know well in advance of November 2008.
Comment by Lee Cheney
July 23, 2008 01:10 PM
Most people do not know that the Federal Reserve Banking System is based on Deuteronomy 15:6 and that the American Constitution is also based on Old Testament monetary laws which is why Abraham Lincoln said the American Constitution is a covenant with hell. Even a gold standard will not solve the financial and economic slavery of the American people (which the Jewish Torah calls "meliorated" slavery ordained by God) unless interest on money lending is elminated. Step #1 to eliminating the economic and financial slavery of the American people is to provide the American people with INTEREST FREE HOME MORTGAGES as proposed by the UNITED STATES INTEREST FREE HOME MORTGAGE CORPORATION at www.usifhmc.com and related links which provde complete details.

Lee Cheney
Comment by Dave Redick
July 23, 2008 02:28 PM
Right On ! See a longer discussion on Fake Money at #1 in the left margin of my site www.forward-usa.org. Heck, read it all !

Dave
Comment by Lee
July 23, 2008 03:46 PM
I believe Ron Paul is one of the few Statesmen who has the courage to tell the truth.

Under the current system with the Federal Reserve Bank it is impossible to pay off the National Debt, it would be the same as trying to pay off one credit card with another, the interest and the system makes it impossible.

It is not that the system is hard to understand for us uneducated people like kdjamrau refers to "Remember, there are good reasons why complex matters are handled by educated, intelligent and experienced people. Presenting these issues as something that any Joe on the street could competently handle, or even comment on, is ludicrous"

The only reason these matters may seem complicated is because we are told lies, the money brokers and most politicians do not want us to know the truth.

I have added a speech by Colonel Edward Mandel who was a top aid to President Woodrow Wilson when the Social Security system was established and when income tax was first implemented, he was instrumental in bringing in the Federal Reserve Act.

“[Very} soon, every American will be required to register their biological property (that's you and your children) in a national system designed to keep track of the people and that will operate under the ancient system of pledging. By such methodology, we can compel people to submit to our agenda, which will affect our security as a charge back for our fiat paper currency.

“Every American will be forced to register or suffer not being able to work and earn a living."

"They will be our chattels, (property) and we will hold the security interest over them forever, by operation of the law merchant under the scheme of secured transactions. Americans, by unknowingly or unwittingly delivering the bills of lading to us will be rendered bankrupt and insolvent, secured by their pledges."

“They will be stripped of their rights and given a commercial value designed to make us a profit and they will be none the wiser, for not one man in a million could ever figure our plans and, if by accident one or two should figure it out, we have in our arsenal plausible deniability. After all, this is the only logical way to fund government, by floating liens and debts to the registrants in the form of benefits and privileges."

"This will inevitably reap us huge profits beyond our wildest expectations and leave every American a contributor to this fraud, which we will call “Social Insurance.” Without realizing it, every American will unknowingly be our servant, however begrudgingly. The people will become helpless and without any hope for their redemption and we will employ the high office of our dummy corporation to foment this plot against America.”

This is a quote from President Woodrow wilson after he realized what had happened when Congress voted in the Federal Reserve Act in the early hours of December 22 1913. I hhave a few quotes that you may find interesting.

U.S. President Woodrow Wilson
(commenting on the U.S. Federal Reserve.)

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world. No longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small amount of dominant men."


This 1935 quote by Prime Minister of Canada,
William Lyon Mackenzie King says it all.

" Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talks of the sovereignty of Parliament and of democracy is idle and futile... Once a nation parts with the control of its credit, it matters not who makes the laws....


Sir Josiah Stamp
(President of the Bank of England in the 1920's)

"Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them but leave them the power to create deposits, and with the flick of a pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits."

There is another great man, who was honest enough to tell the truth....

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
~ Henry Ford
Comment by Derek
July 23, 2008 04:57 PM
Dear Dr. Paul,

It has been such a blessing from God to have men like you working to end so much of this government fraud. Please, don't stop. I had hoped that you would be the next President of the United States, but I am ever thankful that you continue to work hard for the citizens of this great nation that began under the guidance of the founders.

Wisdom is so lacking in this world today that it is almost unbearable to associate with the world around us. Poor judgment and complacency have caused many to be part of the problem as they are easily lulled by the influences of the elitist propaganda. The very sad thing is that some people know this, and they still don’t care that they are losing their freedoms in the process. One may feel as though they should give up because there is no hope. I believe there is hope in Jesus Christ the Lord and Savior but, until his time is here, we must continue to do what is right.

I know that what you stand for is right. Many people say they believe portions of your views, but not the whole. PEOPLE WHO DISAGREE ARE STILL IGNORANT OF THE FACTS. Some will say “Oh, I agree with most of what you say, but I don’t think we should go back to a gold standard.” Are they kidding themselves? That’s almost the whole point. Our currency is not money. It does not satisfy the definition of money except that it is a medium of exchange, because most people are fools. What else can be used as money? Gold is one of the most durable and rare materials on Earth that makes it perfect for use as money along with silver, platinum, and other metals. Most of my savings is in hard assets, and I am turning my life around and getting out of debt from student loans as fast as possible. I see paying off debt as purchasing back my freedom.

I wonder if the people know that, by majority vote, they can change our country without going to the Congress. Even so, nobody cares. I talk to graduate students that I go to school with, and they don’t care about these issues. Wow, the best and brightest of our future don’t care about this? Dr. Paul, I think we are in trouble beyond repair. It seems that we will relive history again and again and again because this American Empire, which is much worse off than the Roman Empire, is so fat with laziness, full of entitlement, lacking in accountability, lacking in integrity, poor because of debt, and just has a total lack of any good qualities out of most of its current citizenry, government, and worst of all the elite who have unseen great influence.

Truth that is embarrassing to ourselves is difficult to deal with because it means that we have to face the facts. It is challenging to change habits that develop over long periods of time, but if there is anything that the American people have been able to do, it’s to work hard and be determined in the face of adversity.

Thank you Dr. Paul for all that you do for this country.

Sincerely,
Derek
Comment by Jim
July 23, 2008 05:15 PM
Ron Paul is seemingly the only person with any brains that function in common sense what I find funny is why do not more people listen to him 6 percent in the primaries? or are we the people being CENSORED I cannot understand how such practical truth brought forth in such a way that children can understand can keep being swept underneath the rug by the media
Comment by Lakshmi Narasimhan Madhavan
July 23, 2008 05:26 PM
It is most unfortunate that you are not the president. Some Philosopher said that great empires mostly fall due to the decline of mainly three qualities,
a) Morality
b) Fiscal Prudence
c) Military Prudence

Some empires woke up and corrected themselves but most went down due the above cited decline.
Looks like America is going the same way as the Roman empire.
Comment by Sherri Young
July 23, 2008 07:34 PM
Maybe someday Dr. Paul will have the time and a forum to venture off into esoterica and explain how "wealth has been created" through "innovative financial instruments" such as credit default swaps and naked short sales exemptions for options market makers. One has caused the appearance of safety and increased assets out of thin air. The other has legally created shares of companies' stocks out of thin air and injected those shares into the marketplace thus diluting the value of legal shares and running down the assets of true investors and the companies involved. When these things are understood, there will be a true revolution.

God bless Ron Paul.
Comment by hsk01945
July 23, 2008 09:01 PM
Write in Kucinich on your ballot. And vote 3rd party candidates - throw the incumbents out! Power to the people!
Comment by jim
July 23, 2008 09:57 PM
Ron Paul,

who do you view as the "lesser of the two evils" for president in regards to fiscal responsibility?
Comment by Jim V
July 23, 2008 11:04 PM
Ron, I have never supported Republicans traditionally (I'm only 30) because they lack the 'conservative' part of what they're supposed to stand for. Not that democrats are any better...

But why, oh why, do you associate yourself with these republicans who are for the most part phonies pretending to stand for something they don't?

I'm planning on voting Obama, because we can't have another 4 or 8 years of a Bushlike regime.

I plead of you, though, run for office as a 3rd party. This country is getting sick of the people in control right now stripping our rights away and throwing our dollar down the drain. The time is coming where both Dems/Republicans as a whole will have to respond or get out of office.
Comment by blaise
July 23, 2008 11:08 PM
my grandfather has been preaching this and the effects of fiat currency, or currency that is not backed by anything but our imagination. since i was a child. the solution for the individual is simple silver and gold, eventually the economy will fail and this will happen
very soon the answer
is to buy up as much
silver or gold as possible, because in the end everything will go back to base
value. or what it melts down to pretty much. and paper money will be worth less then the printing process to make it. its a sad day, but fortunately ive been preparing for it. I government knew what they would be doing and knowingly left, our generation to clean up the biggest mess in U.S. history.
Comment by tom
July 23, 2008 11:24 PM
Rep Paul:

I truly appreciate you taking the time to read through this bill and decipher this piece of legislation for the people.

My question to you and all patriots: how much of your wealth are you putting into REAL money? I would bet, this legislation will surpress gold and silver prices TEMPORARILY. It is a buying opportunity. I feel I am well read on the issues but would like outside perspectives: thayes@matlensilver.com
Rep Paul, I enjoyed the march for freedom, peace and prosperity 7/12 and look forward to the rally in Minn. Please continue to fight for lovers of freedom, liberty and free markets.
Respectfully,
Tom
Comment by Adam
July 23, 2008 11:29 PM
Dear Dr. Ron Paul:

Thank you for being the only Congressman who's not for sale, and for not being afraid to speak the truth.

PS please run as a libertarian!
Comment by Oleg
July 23, 2008 11:52 PM
Ron, I will vote for you and I contributed money to your campaign, BUT all money is fiat money. Even if you tie your money to Gold there will still be a need (and a group of people) to assign the ration of gold / paper money. The Government. And : as long people are greedy and value security over Freedom the problem will persist. Now the solution is to have a Responsible Government (elected officials that is) which (government) will choose not to debase the money and be accountable to the people. Unforntunately we in the US are beyond the point where we can elect such a Government (Congress, that is) because we have been seduced by handouts and subsidies. America appears to be doomed. Like Rome.
Comment by Larry
July 24, 2008 01:02 AM
Be careful of the rhetoric in the essay; Gov't represents business interests which are run by white business men, and the odd white business woman, from the corporate world. It is to bad that Ron tries to use paranoia of "Gov't" to make his point. None the less, the over printing of money is a very serious matter, but so is the leveraging of the enviroment which, more or less, is the same thing.

Anyway, good luck!
Comment by Yasuhiko Nakata
July 24, 2008 06:40 AM
Very Great Commentary,Dr.Paul.

Your execelent explanation on current financial crisis in America and our world is very easy to understand.

No other congressman could explain current situation in such a easy way to understand.

I will recommend every my friends to read this essay.

and,I will translate your essay into Japanese language.

Yes,the Answer is return to the gold standard because it has deflationary effect on currencies.

Thank you,Yasuhiko Nakata
Comment by Ronald M George
July 24, 2008 09:08 AM
“In God we Trust” … we better make sure that God has the list of our creditors so he can pay them in time because the scam, perpetuated by religious preamble, has suckered a world of people and a nation of sheep to follow their faith right into the abyss. It’s almost shameless, and a certain sign that America will cease to exist through the courtesy of it’s “elected” government criminals, when the words of warnings by an eloquent United States Representative (Ron Paul, TX) have no echo and fall upon deaf senses. Amazingly, this man, as a candidate for President on the Republican ticket, was only able to garnish 5% or less of the public’s support after promising that one of his immediate actions as President would be to abolish the Nazi Gestapo styled IRS out of existence. The American Sheep who chant “God Bless America” would do themselves well to look behind the curtain and see just who “God” really is.

Ronald M. George
Comment by Roger F
July 24, 2008 09:27 AM
Can anyone point to an example of a prosperous, industrialized country that does not use fiat currency?
Comment by Nick Manolache
July 24, 2008 09:28 AM
While I (think) understand the concern of giving the government the ability to print its own money, I like the uniformity of the currency across the land. The US Treasury Dept. designs and holds control over the printing plates and other materials needed to make the "legal tender" we shuffle around each day. As far as I can read from their official web pages, the US Treasury prints the money as ordered by Congress; the FED distributes the paper, as ordered.

If the US Dollar is a promisory note from the FED and is listed by the US Treasury as "unlawful money" are we allowed as citizens to ask our employer to pay us in "lawful money"?

From the late 1700s to the inception of the FED, the US government kept both gold/silver coins and paper currency (promisory note backed by gold or silver). Keeping the paper money endorsed by gold or silver is the proper way to control inflation; can't print promisory notes unless you can deliver the goods. Paper money (US Treasury notes and early FED notes) were proof of deposit; you handed the US Treasury $50 gold dollars (for example) and they issued you a certificate with which you can redeem your deposit anytime.

Those days are over.

Congressman Paul,
We all moan, groan and complain about the future of our kids and grandkids under the current system. I've supported your efforts to make the changes legally, as you submitted bills in Congress. You have many allies and supporters (whether you believe that or not), but we do not have the political and financial power - like the corporations endorsing our current political front-runners. On the other hand, The Boston Tea Party was not manned by the rich and powerful. I'm not suggesting anything radical, but I am looking for effective solutions to these problems.


Nick Manolache
Comment by Eric
July 24, 2008 10:00 AM
Why doesn't Dr Paul simply publicly name the owners of the Fed, and call attention to the fact that this for-profit organisation is the only one in the US which does not have to submit to government audit?
Comment by Lou Gamboa
July 24, 2008 10:24 AM
I have been luck enough to have all my article printed in the newspaper. The following was a respone to George Will's recently written article called, “The Gas Prices You Deserve”

George Will recently wrote an article called, “The Gas Prices You Deserve” in the article he blames the Democrats and tells us “high gas prices are the fault of the Democrats because they will not allow oil drilling in Alaska’s Arctic National Wildlife Refuge.”
But in fact, it is the fault of both parties because the major reason for “high gas prices” is inflation and it has only one basic definition Webster’s Ninth Collegiate Dictionary: “an increase in the volume of money and credit relative to available goods resulting in a substantial and continuing rise in the general price level.” The news reported on 6/23/08 that, “Some legislators want to pass a bill to put a curb on individuals who move their money to oil and other commodities which ends in biding up the price of these commodities.” Of course, the only reason they are moving to these commodities in the first place, is to protect their devaluing dollar from inflation.
The unlawful private corporation called the Federal Reserve System using fiat currency, coupled with Congresses unrestrained spending (80 to 90%) outside their lawful authority is the main reason for the rise in prices. The unconstitutional war and the bail out of bank and mortgage companies is also a big factor.
On 6/23/08 the news reported that “Bush was pushing the Arabs to increase oil production in an effort to reduce oil prices but economists said this would do little to reduce oil prices.” They also said “the problem is not supply and demand.”
Current Fed Chairman Bernanke and Alan Greenspan are students of the Great Depression. Both know the risks and stated them in earlier speeches. They said: "… The US dollars have value only to the extent that they are strictly limited in supply. But the US government has a technology called a printing press (now its electronic equivalent), that allows it to produce as many US dollars as it wishes." By doing so, it "reduce(s) the value of a dollar in terms of goods and services" which raises their prices…."under a paper-money system, a determined government can always generate higher spending and hence positive inflation."
Instead of Mr. Will’s political propaganda, he should be honest enough to get to the root cause of these “higher gas prices”, he should also consider the following from an Associated press 4/2/08 report: “Critics in Congress are fuming, The U.S., they say, is getting suckered as the cost of the war exceeds half a trillion dollars — $10.3 billion a month, according to the Congressional Research Service”, and the use of more than 100,000 to 200,000 gallons a day for war fuel.
Since the oil companies make big profits from war, and might receive this benefit on taxpayers land (ANWR) accompanied by large tax breaks; and coupled with the fact that they do not just use the new found oil for the American people, they sell it world wide. Maybe this new found oil should be held for U.S. consumption only?
Comment by Michael A. Deas
July 24, 2008 11:37 AM
A call to arms
With every gut-shot Iraqi child, limp in a grieving parent’s arms, we see a bullet that is sold. And a profit that is made. With every suffering, limbless soldier, the military-industrial complex sees a reason to persist. And finds more profits to be made. With every tank that’s ripped-apart, with every screaming, dying civilian, the White House imagines a "surge" that is working. And sees a profit for a friend.
A government that endorses mass murder for profit, and calls it war, deserves no latitude. It deserves a cage.
And so do we, if we stand by in passive assent. Every American deserves what he tolerates. The time for tolerance is over.
There’s only one candidate for President of the United States in 2008 who has the depth of understanding, and the character, necessary to place meaningful restraints upon our profit-centered system of cowardly warmongering – Ron Paul.
Positions of Dr. Paul’s that would help achieve this objective include:
Getting rid of the Federal Reserve (bank of the new world order), which functions as the financial enabler of war, as well as its head-coach.
Forcing politicians in favor of war to make a formal declaration of war, as specified in the Constitution.
To which I would add:
Patriotism requires that the profit-motive be put-aside in time of war. Therefore, financially profiting from a soldier’s courage, and, possibly, from the sacrifice of a soldier’s life, should be forbidden by law.
By law, every elected representative espousing war must either personally ship-off to battle, or, send a close family member in his stead.
The Ron Paul Revolution is, among other things, a revolution to reclaim our original American spirit, a spirit mangled, at least since the time of Lincoln, by the passive acceptance, and tacit encouragement, of state-sponsored mass-murder for profit.
With God’s help, it is a revolution that will come to pass, I now stand armed and at the ready. Even so, Lord Jesus come quickly!
Comment by LAMBO
July 24, 2008 12:24 PM
Sir,

We need to convince

the people of our nation that their is a vast sorce of money to be had. All that needs to be done is get all the illeagle aliens asocialsecurity card and let them begin to pay their fair share of the burden. The only requirement is that all bussiness be conducted in english. Once they are on the tax roles the more money they make the more we get to build roads finsh projects ie; MOUNT RUSHMORE, YELLOW STONE, & ALL OF OUR INTER STATE HWY SYSTEM.
Comment by Brad
July 24, 2008 01:32 PM
Excellent essay. So, if the central bank is the problem, how do we abolish it? how do we return the dollar to something backed by commodities such as gold and silver? if we do this, then it will have a domino effect. our gov't will be forced to spend responsibly which will inevitably lead to the limitation of programs such as welfare, social security, and medicare. the abolition of the federal reserve system is the answer to many of our nation's woes...
Comment by Pete
July 24, 2008 02:03 PM
Why don't we return to the Gold Standard so that we can only print the money backed by the amount of Gold we keep on hand?
Comment by Donald Meikle
July 24, 2008 02:24 PM
We started with there shall be no money that is not backed by gold or silver.
We need to replace 574 elected govt. SERVANTS
Comment by Kevin C.
July 24, 2008 03:18 PM
Ok,
So we have the Fed, that no one likes but it appears it will stay with us forever. We have the US govt. engaging in overspending and the debt continues to grow. The Fed Govt. prints money because it can. And the gold standard is a thing the past. Are there any pragmatic solutions to the economic woes of the US? I can not see buying gold bars and placing them next to my gun, gas mask and MREs. But be nice, being an average joe, I may not understand.

To Congressman Paul,
If I remember my US history correctly, Mr. Hamilton was a strong advocate for both a national debt and a central bank. Had he not been killed by Mr. Burr our Founding Fathers may well have decided in Mr. Hamilton's favor.
Comment by Daniel M.
July 24, 2008 05:53 PM
I've never posted here before but I just wanted to say I love the messages you have shared with us.

Your messages are full of truth, sincerity, and wisdom. I wish everyone thought like you did - the US would be a much better place.

Thanks for everything.
Comment by Thinking Clearly
July 24, 2008 06:02 PM
Learn for yourself.

Please provide a list of all currencies currently in use backed by the gold standard.

Please provide a list of all countries that previously used gold standard backed currencies. Note the year and circumstance under which the gold standard was abolished.

Compare with the total amount of gold ever mined on the face of the earth with the total money supply of the US. How much more gold would we need if gold were priced at even $1000 per ounce.

If gold currency is impractical, aren't we right back to having to trust or government institutions?
Comment by Joan
July 24, 2008 07:34 PM
Thank you for producing videos and written reports on Congressional events.

Throughout history it has been shown that government currency backed by gold has been stable while currency that is not has failed.
Comment by Jerry White
July 24, 2008 07:37 PM
There is not enough physical gold in the world to cary on commerce in the U.S. alone. We have to have paper money--and restrain our free-spending politicians. Eisenhower's admonition about the military-industry complex has come true. you want to see a depression worse than the 30's? Just try going back to gold-backed currency.
Comment by James
July 24, 2008 10:28 PM
http://home.att.net/~mwhodges/debt_b.htm#deficitgame

I found this link really eye opening.
Comment by Gerard Waggett
July 24, 2008 10:43 PM
Congressman Paul,

As an American, I just want to thank you for standing up and speaking your mind. It's refreshing to know there are some politicians (small minority) that truly care about their country and not just getting contributions from special interest.

I am deeply concerned with the direction our great country is headed, and the government (and most politicians) are clueless. The government is racking up bailout after bailout and placing the liabilities on the balance sheet of the American taxpayers. The banks and financial companies all profited handsomely from floating these garbage mortgage backed securities and are now running hat in hand looking to trade their garbage securities with the fed for treasuries. These financial companies enjoyed the profits privately but want to socialize their losses. Will the taxpayers ever know what they're on the hook for, or losses from the shadowy agency called the fed.

A lot of these homeowners also knew they probably couldn't afford their house but thought they could sell it at a profit. Now the responsible citizens will be left holding the bag. Admittedly, there were some that were preyed upon.

Keep up the good work. Hopefully America is watching, or will soon because we will have a real catastrophe on our hands very soon.

Best Regards.
Comment by Bryan Baggett
July 25, 2008 01:49 AM
Dr. Paul,

Thank you so teaching me so much. You are America's only hope for getting through this mess we are in and deficit financing AKA big government + war + printing money out of nothing is not the way to fix anything long term. I will write you in on the ballot and please keep spreading keep up your good work in Congress. I just wish there were more people like you who truly understand what we really need.

Thanks and best regards,
Bryan
Comment by Ezra Pound
July 25, 2008 01:57 AM
Most people think the Federal Reserve is a U.S owned institution, but it is a private credit monopoly created in 1913 (while president Wilson)that as Louis McFadden said "Prey upon the people of the U.S". Owned by super rich families and only 12 banks; the Fed as its best know, has our gov. in its hands. To have an idea, the U.S.A debt in 1913 was CERO and today is more than 5 trillions.
I strongly recomend the book "Secrets Of The Federal Reserve" by Eutace Mullins, its a most read to learn how and why the Fed was created, who pushed for that and how it works. Thanks
Comment by lewsta
July 25, 2008 06:05 PM
So, Rush was right. No, not Mr. Limbaugh, the radio chap, but J R Rushdoony. He wrote Larceny in the Heart many years ago, and hits the rood cause of all this sort of thing spot in. It is all rooted in the greed of the human heart, greed for wealth not earned, and for power not rightly assigned. But, we as a nation can surely do better than we've done.
One previous commenter above made the claim that Spain had their economy on a "gold standard", and failed economically. True, they DID have gold in store. Also true, and what negates a true "gold standard" is that they stole the gold from the Aztecs, Incas, and Mayas of the western hemisphere. Those people had been getting it out and storing it for generations. Spain came along and, by trickery and main force and disease deliberately set upon them, took it wihout returning any value for it. That does not comprise a true gold standard. That is greed and power gone to an extreme.

Interesting how the Boston Tea Party, staged as a protest against the British government's unrightful power over the colonies, did use the immediacy and specificity of the tea tax as their focus. However, in reading further into the situation to hand, it becomes rather plain that the REAL root was not the one cent the pound tax on tea. No, it was the entire fiscal slavery system foisted upon the colonies, contrary to both British law and the charters granted by the Crown (NOT Parliament, the oppressors in the instant) The Crown had abdicated their responsibility to keep Parliament in check, and thus was equally culpable. Since we have in view, at present, a return of the same sort of fiscal slavery, perhaps another tea party is in order. Not against taxation, but against the entire system that holds us at least as bound as did the Parliamentary system of the mid eighteenth century. I've been wondering for some twenty years now just what would have to transpire before such a party is celebrated, and on what specific excuse. One thing is certain: if either of the present candidates actually takes the position of President of the United States, it will simply assure continued travel in the same downward direction. How many more election charades will we endure (and their dismal results when done) before the time for that next tea party is uppon us?
Comment by Texas Joe
July 25, 2008 07:56 PM
Rah, rah, rah. Hooray, team!

So we're all whipped into a frenzy.... to do what? Write comments online?

We need ACTION.

With all due respect, Dr. Paul, you've only managed to stir things up.

Is that the most we can accomplish?

My questions:

1) How do we take the laws back when the corporations own Congress?

2) How do we put the criminals behind bars or in front of a firing squad?

3) Do we have to wait until our daily lives will kill us (starvation or police state whatever) before we take action?

4) Do I have to leave the country or lead a revolution?

History points to a violent ending. How long do I have to wait to get on with it?

Talk, talk, talk. Waste of energy, waste of time.

Should we start a private, self-reliant club based on community values and commitment (sort of like the Amish) and fence out the rest of the country, stock up on ammo?

I do not want my kids to know this America. I need change, be it here or elsewhere.

What ACTIONS will work?

Will ANY actions work, short of revolution?

Thx, Texas Joe
Comment by Tom K.
July 25, 2008 11:22 PM
Thanks Mr. Paul, and if only someone like you had a chance to take on the Big 2 and maybe even win! Obviously we needed to abolish the Federal Reserve and the IRS a long time ago, I'm afraid it might be too late now. And for anyone out there who would like to find more about how all this got started, read "The Creature From Jekyll Island",(story of how the ILLEGAL Federal Reserve came to be, and another book called "None Dare Call It Treason" which details the infiltration and subversion of our government by Communists. And last, but certainly not least, look at how we've gone away from God in the last 60 years. You better believe that if we don't start some kind of BIG return of control to our Heavenly Father, this once great nation will not survive much longer. God tells us in His Word to love our enemies and pray for them! Yea that's right, not just our families and friends but our ENEMIES too. So if you're not doing it already people there's no time like the present! Thank you Jesus and God Bless America!
Comment by Maria A.
July 26, 2008 10:43 AM
Knowing all this, why haven't the American People pushed this type of leadership, a President who will abide by the U.S. Constitution/restore Citizens Bill of Rights? What will it take?
Comment by Rob in Maryland
July 26, 2008 12:12 PM
Thank you, Doctor Paul, for your tireless defense of freedom, economic and otherwise. You are the only politician I have *ever* given money to. Your presidential candidacy helped me discover the value of a constitutional libertarian approach to government.
Comment by Robert W
July 26, 2008 05:07 PM
Abolish Fractional Reserve banking hit it on the head. It's the money printers who maintain power by having their stoolies, the banks, print the $$ whenever they want to excite the economy, or slow the economy by printing less. There is no such thing as "natural inflation." Done by the Federal Reserve for us. If you've got the guts, get the DVD at http://www.themoneymasters.com/faqs.htm#q5
Comment by George Campbell
July 27, 2008 08:30 AM
Congressman:

I was having a discussion on this issue with someone recently and I was explaining why we needed a gold backed currency, or even a bimetallic standard.

The question came up as to if we had these types of currency, how would we grow the economy, since we could only have growth to the extent of the gold/silver that is added to the stock.

I know about the circular flow of gold theory, but I'm not sure it addresses this issue completely.

Your comments would be appreciated.
Comment by Leonard
July 27, 2008 01:51 PM
Dear Congressman and Dr. Ron Paul, We need you to stay safe and healthy!! It is you who are helping us to prepare and to pick up the pieces left to our constitution for the sake of all our children!
Comment by John Williams
July 28, 2008 02:14 AM
We only need a currency that is backed by the goods we produce. If I built a house that I wanted to sell and it might take awhile to sell I could get a loan on it. If the loan had interest that interest would be used for infrastructure research etc. The I could work to get the interest that was spent into the economy. If I did not pay off the loan the house would be seized. Money only needs to be backed by a good or asset I own.
Comment by Emily H.
July 28, 2008 09:06 AM
Please Dr. Paul, tell us what to do! How can we protect our money and ourselves? What can we tell our elected officials to do so things don't get worse? I'm already worried about safety issues as a result of so many of our freedoms having been taken away. Just as Jack Mclane warned at your rally in Boston
on July 12th, "they" have come to my neighborhood and put dots on the mailboxes. Will they begin raiding our homes next?
Please guide us!
Comment by Gloria Biermann
July 28, 2008 12:08 PM
The sad truth is that our voting is NOT going to be able to get rid of the crooks and men of treason nor the Federal Reserve. I wish I could get someone to organize an American citizen march on Washington for all the reasons Mr. Paul states. Seems only talk show hosts can get the message out - am working on that. Love you, Ron Paul -YOU ARE the statesman this country needs.
Comment by Brian Douglas
July 28, 2008 07:26 PM
I can say one thing the civil war wasn't fought over slavery the south was defending the union over states rights and a all powerful central government.
Comment by Ryan Powers
July 30, 2008 09:59 PM
If anyone wants to know just how right Dr. Paul is on monetary issues, just look at how infuriated the Central System (via the FBI & IRS) is over people starting to bypass the fiat money system altogether and use real "just weights and measures" in precious metals as currency. They are cracking down on people even where they don't have the law on their side, because: 1) they are the government and they can, and 2) they are terrified of the collapse of the current smoke and mirrors Ponzi scheme that is our currency system in the US. keep speaking the truth, Dr. Paul, and i'll keep telling everyone i know about you.
Comment by sandra lee
August 03, 2008 05:09 PM
Dr.Ron Paul,You are truely A man of God.Thank you,Sincerly Sandra Lee
Comment by dave b.
August 05, 2008 03:34 PM
The Federal Reserve System, Freddie Mac, and Fannie Mae are truly complicated and for much the same reason that Enron's accounting was truly complicated.
Comment by Victor Aguilar
August 26, 2008 06:11 PM
Ron Paul writes, "History has shown that fiat money, or 'faith-based currency' always fails, because when governments claim this power, they always behave irresponsibly."

I reply:

In my Critique of Mathematically Perfected Economy, www.axiomaticeconomics.com/perfected_economy.php, I write:

“The basic flaw in the logic of modern socialists (Montagne, Cook, Zarlenga, etc.) is confusion between motivation and capability. ‘He’s privately controlled!’ the socialist sneers at the Federal Reserve chairman, the unspoken assumption being that, were the socialist put in charge, he would immediately open the floodgates of wealth and prosperity for us all. It would be a veritable socialistic paradise, if only the Benevolent One were given the authority to print money! But, the fact is, the Fed is in a box. If a socialist were put in charge, he would be in the same box.”

In my Critique of Austrian Economics, www.axiomaticeconomics.com/critiques.php, I write:

“Rothbard discusses an inevitable ‘distortion-reversion process’ but says little about how it actually plays out. Apparently forgetting his master’s regression theorem, he declares ‘the continuance of confidence in the banks is something of a psychological marvel’ (1970, p. 867).

“Garrison (2001, p. 44) redefines the Production Possibilities Frontier, PPF, to be sustainable combinations of investment and consumption, but says nothing about what is so unsustainable about a credit expansion. Since he defines consumption on the PPF (which is real) to be the same as consumption on the Hayekian triangle (which is nominal), the unsustainability cannot have anything to do with a devaluation of the currency.

“So we see that Mises, writing in 1949, was really the last Austrian to make much of an effort to explain or predict interest rate spikes. After that, their discussion of this issue, including Mises’ later writings, increasingly took on the tone of a morality play, with the greedy bankers getting their ‘inevitable’ comeuppance.”

Clearly, the socialists and the Austrians are at opposite ends of the spectrum of views on inevitability. Socialists believe that the Federal Reserve can turn on a dime, veering away from economic collapse towards a socialistic paradise simply by giving the right person the chairmanship. And how would the Benevolent One accomplish this feat? According to the Debt Virus Theory, it is as simple as printing money and spending it directly into the economy, rather than buying Treasury Bills. On the other hand, the Austrians believe that a “distortion-reversion process” is inevitable. Credit expansion is unsustainable and this, apparently, is true no matter how benevolent the chairman of the Fed may be.

Is hyperinflation the inevitable result of inflation? In America we have only had one bout with hyperinflation and, over 200 years later, the phrase “not worth a Continental” is still part of our language. “In conclusion,” I write in my Critique of Mathematically Perfected Economy, “to Montagne, Cook, Zarlenga and anyone else who claims that they can open the floodgates of prosperity by spending paper money directly into the economy, I say: ‘The Debt Virus Theory is not worth a Continental!’” Debt Virus Theorists’ followers are mostly laymen (for obvious reasons) and, when I wrote this, I fully expected any American with a passing interest in economics to be familiar with the expression, “not worth a Continental.”

Indeed, the collapse of the Continental was inevitable because, having spent Continentals directly into the economy (mostly for soldiers’ wages), the Continental Congress had nothing in their portfolio with which they could buy them back. They were, in fact, benevolent men who had no desire to see their newly-won nation racked with hyperinflation, but they could no more recall the paper money that they had printed than Frankenstein could recall his monster.

But surely the Federal Reserve is smarter than the Continental Congress! Until as recently as last year (2007), I would have responded to this question with a begrudging “yes.” As much as I dislike the United States having a central bank (I advocate free banking), I will admit that, by buying only Treasury Bills, the Federal Reserve has given themselves a portfolio with which they can buy back dollars in the event that inflation should threaten to turn into hyperinflation. Unless the Federal Government itself collapses – by losing a war, for instance – there will always be a market for T-Bills. Selling T-Bills for cash and destroying the cash is a painful, recession-inducing process, as evidenced by our experience during Reagan’s first term, but it can be done. Contra Rothbard, hyperinflation is not inevitable under a central bank.

So what has Ben Bernanke done to make me question his intelligence, if not his benevolence? He polluted the Fed’s portfolio with AAA-rated securities, which I have mocked as being “about as marketable as the chocolate-covered cotton balls that Milo Minderbinder was trying to foist on people in Catch 22.” Everybody knows that, in spite of their impressive-sounding AAA rating, these securities are really just packages of sub-prime loans that nobody wants – what I defined in my Devil’s Dictionary of Economics, www.axiomaticeconomics.com/devils_dictionary.php, as “worthless crap.” If people wanted them, in the sense of being willing to pay cash for them, then we wouldn’t be having a credit crisis in the first place.

Bernanke’s actions have made the question of hyperinflation a murky one. The Austrian’s depiction of hyperinflation as being the inevitable fate of central banking has always been cartoonishly simplistic, and it remains so. However, economists of all schools must now admit that hyperinflation is at least a possibility. If the dollar appears to be losing its status as the world’s reserve currency, what will the Fed do about it? Sell their AAA-rated securities for cash and destroy the cash? But what if nobody is impressed with the AAA rating and won’t buy their securities at any price? Then the Fed will be in the same position as the Continental Congress: Benevolent men who have no desire to see their beloved nation racked with hyperinflation, but who have no more ability to recall the paper money that they have printed than Frankenstein had to recall his monster.

Of course, not all of the Fed’s portfolio is in AAA-rated securities and not everything with an AAA rating is worthless crap. They still have lots of T-Bills and there is a market for at least some of their AAA-rated securities. This is why the question of hyperinflation has become so murky. The bottom line is that nobody – not even Ben Bernanke – really knows what the Fed’s portfolio is worth these days. For this reason, I would be very leery of any economist, from any school, who speaks confidently about the future of the dollar. Is the collapse of the dollar inevitable, as the Austrians claim? Or are we at the dawn of a socialistic paradise, provided only that we install the Benevolent One in the Federal Reserve’s chair, as the Debt Virus Theorists claim? The answer is certainly somewhere between these extremes, but where exactly I cannot tell you.

Source: www.axiomaticeconomics.com/golden_calf.php

References

Garrison, Roger. 2001. Time and Money: The Macroeconomics of Capital Structure. New York, NY: Routledge

Rothbard, Murray N. [1962] 1970. Man, Economy and State. Los Angeles, CA: Nash Publishing
Comment by Payday Loan Advocate
October 22, 2008 04:17 AM
On Wednesday, October 14, 2008, the eyes of the world were fixed on Hempstead, New York and the third and final U.S. Presidential Debate. Sen. Barack Obama of Illinois entered the arena with an eight-point lead according to an average of national polls as compiled by CNN, and it appeared that he was content to sit on that lead. Sen. John McCain of Arizona took advantage of Obama’s laurel resting and brought the fight to him regarding the younger candidate’s policies, judgment and qualities of character. When Obama did adopt a more critical stance regarding the economic policies of the past eight years, McCain was quick to point out that he is “not President Bush.” He stated that he would enact an “across the board spending freeze,” take a hatchet to some programs and use a scalpel on the remainder once the dust settled. Obama’s stance sounded more conservative; he would “go through the federal budget page by page, line by line” in order to close programs that aren’t working as they should. Both candidates claim their economic plans will bring needed change to a broken America, but will it leave consumers with the ability to choose where and when they’ll have access to payday loans? That remains to be seen. Just because Americans see themselves as living in “the land of the free” doesn’t mean that interest groups (i.e. banks and credit unions) want them to have the freedom to choose.

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Comment by alan black
November 06, 2008 06:56 PM
Dr. Paul,

I watched as you commented on the recent bail out package on the Glen Beck show. I can say that my representative voted against the bailout, because of pressure from his constituents. Due to the fact that our currency is backed by absolutely nothing, the dollar will only decrease in value. How can the economy be fixed if the currency we use is not worth the paper it's printed on? I guess my question would be, how can we go from the current currency back to the gold standard? Is it even possible?

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