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There are many things I like about Paul, for one he has the best foreign policy, and I think he is absolutely right about the drug war and its relationship to racism. With that said I have a differing view on economics, environmentalism, and Constitutional interpretation and personally I think the gold standard would bring about economic disaster as it has done every time it is implemented. One need only look at the history in Britain to learn that it triggers and prolongs recessions. That is why I am voting for Obama.
Good article from Forbes about the various ways a gold standard could and has been implemented. It's only 2 pages. My conclusion is that we must first audit the Fed and find out if we have any gold bullion in reserve, if so, how much. Then we can explore ideas on how to implement a workable gold std for this country.
he summarizes:
Quote:
If there were just ten more people, in the entire English-speaking world, who were able to have an intelligent and informed discussion about these topics, it would be, I think, a major step forward for the entire human race. How are you going to establish and manage a gold standard system, lasting decades and centuries, without the knowledge of how to do so? You can’t. So, let’s start there.
Good article from Forbes about the various ways a gold standard could and has been implemented. It's only 2 pages. My conclusion is that we must first audit the Fed and find out if we have any gold bullion in reserve, if so, how much. Then we can explore ideas on how to implement a workable gold std for this country.
The last time they tried it in Britain it caused their to be exceedingly high interest rates to encourage people to keep their money in the bank instead of changing it for gold.
The fact is because of borrowing the money supply will outpace the gold supply and anytime there is a panic it will make the panic incredibly bad, because you will have no only deflation from the panic, but a push by bankers and the government to raise interest rates to have people keep money in the bank. This will be especially the case if the gov't only holds a 20% reserve and fears default. The result will be terrible as the number of borrows decreases, further worsening inflation, and the interest rates have to continue to rise. If propagated to long this would result in an inevitable collapse of both credit and the currency with it.
As to the idea of a non redemibility that failed in the early 1970s with the collapse of the BW system. I see no reason to try and dredge it up.
The last time they tried it in Britain it caused their to be exceedingly high interest rates to encourage people to keep their money in the bank instead of changing it for gold.
The fact is because of borrowing the money supply will outpace the gold supply and anytime there is a panic it will make the panic incredibly bad, because you will have no only deflation from the panic, but a push by bankers and the government to raise interest rates to have people keep money in the bank. This will be especially the case if the gov't only holds a 20% reserve and fears default. The result will be terrible as the number of borrows decreases, further worsening inflation, and the interest rates have to continue to rise. If propagated to long this would result in an inevitable collapse of both credit and the currency with it.
As to the idea of a non redemibility that failed in the early 1970s with the collapse of the BW system. I see no reason to try and dredge it up.
People forget that the reason why no country on earth has a true Gold Standard is because it was less stable than our current system.
He covers that in the article, if you read it.
Let's find out how much gold we have, for starters. I trust Ron Paul to know what needs to be done and take us in the right direction.
Quote:
However, this wouldn’t work for the United States. The amount of bullion necessary to provide a 100% bullion reserve would be very, very large. The United States would be better off with more like a 20% average bullion reserve, which is what the United States indeed used for the entire 182-year history of gold standard usage, from 1789 to 1971. The U.S. Treasury still has enough gold bullion to reinstate a system like this without a lot of preparatory activity. They claim to, anyway.
People forget that the reason why no country on earth has a true Gold Standard is because it was less stable than our current system.
Exactly, especially when it comes to interest rates.
Basically one thing I remember from college economics was that you can have up to 2 of 3 things, but thus far no-one has figured out how to deal with all 3 at the same time.
control of interest rates.
control of debt.
control of inflation.
Austrians claim their theory is perfect, and have all the answers when it comes to debt and inflation, but will clam up the moment you discuss interest rates with them or they will go off on a tangent.
He covers that in the article, if you read it.
Let's find out how much gold we have, for starters. I trust Ron Paul to know what needs to be done and take us in the right direction.
I read it he is basically arguing for a return to the Bretton Woods system. The problem with that is as what happened in the late 60s early 70s, and what has happened with every peg, if you cannot keep the peg then the system collapses.
Here is what happens when you set pegs you cannot keep.
Exactly, especially when it comes to interest rates.
Basically one thing I remember from college economics was that you can have up to 2 of 3 things, but thus far no-one has figured out how to deal with all 3 at the same time.
control of interest rates.
control of debt.
control of inflation.
Austrians claim their theory is perfect, and have all the answers when it comes to debt and inflation, but will clam up the moment you discuss interest rates with them or they will go off on a tangent.
Interest rates need to come up, in order to take away the incentive of making bad investments. When you people talk about how stable the fiat system we have now is, you are not considering the reality of hyper inflation. When you print money there is no argument that it devalues the spending power of the dollar, and in the end commodity prices will go up, and all the price control in the world isn't going to stop it, in fact it will only make things worse, because that is how bubbles are formed.
the people who should NOT vote for obama again are:
anyone who values freedom.
anyone who dislikes obamacare.
anyone who works for the private sector.
anyone who works for the government sector and thinks that this massive spending cannot be maintained indefinitely.
anyone who dislikes having their currency debased.
anyone who hates inflation and rising gasoline and food prices-especially amazing during a worldwide recession.
anyone who dislikes war.
anyone who wants to see some actual wall street prosecutions (because as long as obama is president fraud is just going to be called "chaos", not fraud-see MF global posts, or jesse's american cafe)
anyone who thinks our money would be better off spent in the united states, rather than on foreign aid and/or wars.
anyone who thinks illegal immigration has harmed the fabric of our country.
anyone who thinks that it is ridiculous that we can even pretend that there is a worldwide "terrorist" threat when we won't even secure our own borders.
anyone who thinks that it is jackass stupid to have a foreign policy with mexico where we actually pay to arm and equip mexican drug cartels, and get OUR citizens killed.
anyone who would like to see prosecution over fast and furious, or have someone accept responsibility.
anyone who thinks that the cost of social services are rising too fast to GDP "growth".
anyone who now thinks (knows) that the bank bailout was a lie.
anyone who would like some federal reserve transparency, and/or the auditing of the gold.
anyone who objected to our dead soldiers being dumped in landfills.
anyone who thinks past today and cares about the future for their children tomorrow.
anyone who doesn't want cap and trade implemented down the road.
Last edited by floridasandy; 02-12-2012 at 03:14 PM..
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