" Ron Paul: Bernanke Deliberately Destroying Dollar"

[Prada]

It looks as though Paul is taking Bernanke to school. Link contains two videos.

http://www.prisonplanet.com/articles...destroying.htm

Congressman Ron Paul slammed Federal Reserve chairman Ben Bernanke during a House Financial Services Committee meeting today for following a policy of deliberately destroying the dollar and wiping out the American middle class.

Paul held Bernanke to task over his refusal to address the decline of the dollar and its clear link to inflation.

"Inflation comes from the unwise increase in the supply of money credit....to argue that we can continue to debase the currency, which is really the policy of that you're following, purposely debasing value of currency - which to me seems so destructive....it just puts more pressure on the federal reserve to create capital out of thin air in order to stimulate the economy and usually that just goes into mal-investment," said Paul.

Paul highlighted the fact that the M3 money supply was rising at a rate of 16 per cent and that this was the real rate of inflation.

"History is against you," Paul told Bernanke, "History is on the side of hard money - if you look at stable prices you have to look at the only historic sound money that's lasted more than a few years - fiat money always ends, gold is the only thing where you get stable prices," he added, pointing out that despite the price of oil's rapid ascent, it had remained flat when compared to the price of gold.

"I cannot see how we can continue to accept the policy of deliberately destroying the value of money as an economic value," said Paul, adding that the policy was "immoral," and would lead to a reduction in American's living standards and "the middle class being wiped out."

Asked how he could defend a policy of deliberately depreciating the dollar, Bernanke stumbled through his response and was basically forced to agree with Paul's point.

Paul's comments come on the day that the dollar hit its all time low against the Euro.

Earlier this week, former Fed chairman Alan Greenspan laid the groundwork for the further collapse of the greenback by encouraging Gulf states to abandon their dollar peg.

[Kärnfysikern]

I dont se how a modern currency can be based on a comodity like gold, is there even enough gold in the entire world to be able to bind the dollar to gold again?

[soulstealer]

I dont se how a modern currency can be based on a comodity like gold, is there even enough gold in the entire world to be able to bind the dollar to gold again?

You have to stop thinking of it as binding the dollar to gold and think of it as binding the dollar to a stable commodity whatever that maybe.... but we absolutely could.... unfortunately I think we have super inflated our currency beyond what is told... and if we did link it to gold it would be a disaster thats why noone talks about it....

[Kärnfysikern]

Correct me if Im wrong(I know hardly nothing about economy) but if a currency is bound to a comodity, doesnt this mean the state has to ensure they own as much of the comodity as the money they print?

In that case I cant think of any metall or similar that can be used in a large modern economy.

[soulstealer]

Correct me if Im wrong(I know hardly nothing about economy) but if a currency is bound to a comodity, doesnt this mean the state has to ensure they own as much of the comodity as the money they print?

In that case I cant think of any metall or similar that can be used in a large modern economy.

I think your thinking along the lines of our money holding intrinsic value which it has none... its paper it has no value.... its only value is that its accepted as payment.... gold is gold.... it has a constant value.... a constant demand.... if the demand rises then so does its value.... if we link money to that your money would actually appreciate as their is only a fixed supply of money.... and items you went to purchase would be priced in gold... forget how much something costs as its irrelivent the value of the dollar would be set by the amount of a commedity we held... whatever that may be... weather your mortgage is 1,000 dollars or a million dollars a month as long as you make enough to pay it with roughly the same amount of income it has the same value to you..... we could completely replace our currenty money supply with a new smaller supply with much greater value...or not...

[Pooks]

Correct me if Im wrong(I know hardly nothing about economy) but if a currency is bound to a comodity, doesnt this mean the state has to ensure they own as much of the comodity as the money they print?

In that case I cant think of any metall or similar that can be used in a large modern economy.

I believe they could still inflate their currency, by changing what they consider the value of gold.

I havent read any books tho on the gold standard.
Usually how it works.. the Gov't decided on a fixed price of gold, and they stick to it..

It has to be a fair price for gold though.. if its too low, it will cause sudden deflation, and people losing jobs (England in the 1930's when they went back to the gold standard, but kept pre ww1 gold value)

If it priced too high, it will cause sudden inflation.
so it has to be fixed just right, and than they keep to it.. so overtime as supplies of goods increase.. you will have slow controllable deflation.

[Kärnfysikern]

I have a hard time seeing the gold as a more fixed value than a fiat currency because the value of gold is just as subjective as the value of a fiat currency. We happen to like gold and that what keeps it valuable, but its nothing fixed.

[spywizard]

I dont se how a modern currency can be based on a comodity like gold, is there even enough gold in the entire world to be able to bind the dollar to gold again?

nope, there is, but the price for a troy ounce would be $24,000

[Panzerfaust]

Correct me if Im wrong(I know hardly nothing about economy) but if a currency is bound to a comodity, doesnt this mean the state has to ensure they own as much of the comodity as the money they print?

In that case I cant think of any metall or similar that can be used in a large modern economy.

That is exactly why it should be backed by gold. It simply limits the amount the government can print. Why print money if it has no value? That is exactly what is wrong with the dollar today.

It is printed and yet has no real value behind it. Inflation is merely the value of the currency going down, not the price of goods going up. A t-shirt is no more valuable today as it ever was but the value of your dollar has changed and that is what is wrong here.

Fiat money is destroying our economy, the Fed keeps printing up paper money out of thin air and in doing so is consistently destroying the dollar.

[goose]

They (USA) want to destroy the dollar,so they bring the new currency.This is the plan,according to a doctor at LSE.

[Prada]

I think your thinking along the lines of our money holding intrinsic value which it has none... its paper it has no value.... its only value is that its accepted as payment.... gold is gold.... it has a constant value.... a constant demand.... if the demand rises then so does its value.... if we link money to that your money would actually appreciate as their is only a fixed supply of money.... and items you went to purchase would be priced in gold... forget how much something costs as its irrelivent the value of the dollar would be set by the amount of a commedity we held... whatever that may be... weather your mortgage is 1,000 dollars or a million dollars a month as long as you make enough to pay it with roughly the same amount of income it has the same value to you..... we could completely replace our currenty money supply with a new smaller supply with much greater value...or not...

Right, I wouldn't say the value of Gold is as subjective as fiat money J. There is stability involved as well.


Can you elaborate Goose?

[Kärnfysikern]

Right, I wouldn't say the value of Gold is as subjective as fiat money J. There is stability involved as well.

Well if you really go to the extrem then the value of anything is a very subjective thing totaly created by how much we humans want it. Nothing has a intrinsic value. It seems like gold is always in demand and will always be valuable and quite stable. But I se no reason that a fiat currency cant be just as stable.

I dont quite understand one thing(as I said I dont know anything about economy ). If a currency is bound to a comodity, lets say its gold. How do you handle economic growth without "running out" of the comodity, the economic growth rate is exponential but the resource base offcourse isnt.

Lets play with arbitray numbers, If you say one dollar is worth one gram of gold and the ammount of currency is 10 000 000 000 dollars. With a growth rate of 3% you would after 200 years need around 3.7 million tons of gold bound to the currency. But so far only 142 000 tons of gold has EVER been mined.

I would guess there are also Issues with deflation when the comodity resource base is starting to get depleted?

[Panzerfaust]

They (USA) want to destroy the dollar,so they bring the new currency.This is the plan,according to a doctor at LSE.

Wait and see, the "Amero" will be introduced as the saviour for the fallen dollar etc.

[goose]

Wait and see, the "Amero" will be introduced as the saviour for the fallen dollar etc.

Yep you got it,best way to convince the people to change if its in a weak condition,really weak.Them high ways that are being build scare me connecting USA,mexico and canada.Poor canada,the USA needs them for H20 (water).Good cheap labor from mexico for the states too.

[Panzerfaust]

Yep you got it,best way to convince the people to change if its in a weak condition,really weak.Them high ways that are being build scare me connecting USA,mexico and canada.

Nah, not scary. I mean this shit will never happen will it? hahaha

Most people are in lala land about this shit, very soon it is going to hit them right in the face and then they will cry "Boo ****ing hooo, i can't believe this"..

But you know what...I honest to god would not be surprised to see people going along with it without any fight or concern, they are that far gone.

I mean Goose, you are not even American for ****s sake and have more knowledge about it than most Americans, what does that tell you?

[goose]

The history of imperialism of England is very sick,blood all around London.Just a fancy street in London these 2-3 bedroom flats costing 1-5 million each or more.Where does this wealth come from? So we were the masters of this type of economic dominance.
I find the Americans quite unusual in a diverse manner,in the sense you got some of the most academic guys (that you would expect from the number one economy) but the flip side to the coin you got many zombies.The most dangerous drug in the states is called the electronic drug (TV) within half an hour extreme change in brain activity accurs.The average American averages 8 hours and 10 minutes per day.I guess thats why most of americans are so fat,well the ones I have met are.With Tv the system can implant there agenda and change the ethos of the people,I dont know any drugs that have this power.

[Panzerfaust]

The history of imperialism of England is very sick,blood all around London.Just a fancy street in London these 2-3 bedroom flats costing 1-5 million each or more.Where does this wealth come from? So we were the masters of this type of economic dominance.
I find the Americans quite unusual in a diverse manner,in the sense you got some of the most academic guys (that you would expect from the number one economy) but the flip side to the coin you got many zombies.The most dangerous drug in the states is called the electronic drug (TV) within half an hour extreme change in brain activity accurs.The average American averages 8 hours and 10 minutes per day.I guess thats why most of americans are so fat,well the ones I have met are.With Tv the system can implant there agenda and change the ethos of the people,I dont know any drugs that have this power.

That is why we (Americans) must continue to get the word out about the serious issues rotting our country to the core. Slowly more and more are waking up.

[Pooks]

The history of imperialism of England is very sick,blood all around London.Just a fancy street in London these 2-3 bedroom flats costing 1-5 million each or more.Where does this wealth come from? So we were the masters of this type of economic dominance.
I find the Americans quite unusual in a diverse manner,in the sense you got some of the most academic guys (that you would expect from the number one economy) but the flip side to the coin you got many zombies.The most dangerous drug in the states is called the electronic drug (TV) within half an hour extreme change in brain activity accurs.The average American averages 8 hours and 10 minutes per day.I guess thats why most of americans are so fat,well the ones I have met are.With Tv the system can implant there agenda and change the ethos of the people,I dont know any drugs that have this power.

I agree, lack of proper education, most people are bred on weakness, nonsense and wackness