Ron Paul: Why Big Government Hates Gold

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http://www.RonPaul.com '>http://www.RonPaul.com - 06/07/2010Why Big Government Hates Goldby Ron PaulThis past week several emerging and ongoing crises took attention away from the ongoing sovereign debt problems in Greece. The bailouts are merely kicking the can down the road and making things worse for taxpaying citizens here and abroad. Greece is unfortunately not unique in its irresponsible spending habits. Greek-style debt explosions are quickly spreading to other nations one by one and yes, the United Stated is one of the dominoes on down the line.Time and again it has been proven that the Keynesian system of big government and fiat paper money are abject failures in the long run. However, the nature of government is to ignore reality when there is an avenue that allows growth in power and control. Thus, most politicians and economists will ignore the long-term damage of Keynesianism in the early stage of a bubble when there is the illusion of prosperity, suggesting that the basic laws of economics have been repealed. In fact, one way to tell that a bubble is about to burst is if economists start talking about how the government and the central banks have repealed the business cycle. The truth is, the laws of economics are constant and real, no matter how inconvenient they might be to politicians and bankers. This reality is setting in and the bills are coming due. In the meantime, countries that have no money have bailed out other countries that have no money except for the phony money created by politicians, bureaucrats, and their partners in crime at the central banks. This may be preventing big, well-connected banks from having to take on massive debt, but it is all at the expense of the taxpaying citizen. As government and central banks continue the cycle of spending and inflating, the purchasing power of their currencies is constantly being degraded. These currencies are what the people are working for and saving. This inflation guts the savings and earnings of the people who have very limited options for protecting themselves against these ravages.One option is to convert their fiat currency into something out of reach of central banks and government spending, such as gold or silver. It is fairly typical in the midst of economic crises like these for gold to come under attack by Keynesian economists and their amen corner in the media. The arguments against gold are usually straw men based on a fundamental misunderstanding of the purpose of buying gold. Gold is not a typical investment. It is a defense against the predictable behavior of governments to debase a fiat currency under its absolute control.The people who run the printing presses have trouble shutting them off. In order to limit one's exposure to this reckless behavior it is wise to exchange unsound assets for sound ones. As the foundation for their power, their fiat currency, is rejected or avoided, government power is compromised. Fiat currencies trade the people's freedom and security for the government's freedom to squander the wealth of the nation on wasteful pet programs, wars and corruption. This is why the freedom of the people is so intertwined with a sound monetary unit. This is also why the founders liked gold and silver and supporters of big government hate them.--Ron Paul is America's leading voice for limited, constitutional government, low taxes, free markets, and a return to sound monetary policies.For more information visit the following sites: http://www.RonPaul.com '>http://www.RonPaul.com http://www.CampaignForLiberty.... http://www.house.gov/paul http://www.YALiberty.org http://www.DailyPaul.com http://www.RonPaulForums.com

Channel: News & Politics
Uploaded: November 30, 1999 at 12:00 am
Author: RonPaul2008dotcom

Length: 03:49
Rating: 4.967807
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Video Comments

danewheeler (November 30, 1999 at 12:00 am)
@stealx97 Paper cannot work because it is an infinite Object (I cannot say resource because it denies the reality of resources). Without something backing the dollar besides an unfulfillable promise the value will continue to drop and it will soon fail. Look up the term "Not Worth a Continental" and see why most the founders (with the exception of Hamilton and 1 other) were very worried about a paper FIAT system.
nanocalp (November 30, 1999 at 12:00 am)
It's not enough to say "Vote Ron Paul"PEOPLE NEED TO SWITCH PARTIES 12 WEEKS IN ADVANCE OF THE PRIMARIES IN MOST STATES.IF YOU DO NOT SWITCH IN TIME YOU CANNOT VOTE IN PRIMARY.IF YOU ARE NOT REGISTERED REPUBLICAN YOU CANNOT VOTE IN PRIMARY.IF RON PAUL DOES NOT WIN PRIMARY, NO GENERAL ELECTION ! REGISTER AS A REPUBLICAN. FIND OUT WHEN YOUR STATE HAS PRIMARIES. FIND OUT WHERE AND VOTE VOTE VOTE ! PLEASE !WE NEED EVERY LAST VOTE ! Copy and paste this everywhere
MrYouKnowWho1975 (November 30, 1999 at 12:00 am)
@stealx97 it all depends on value not availability
dimers1989 (November 30, 1999 at 12:00 am)
@stealx97 There is more than enough gold to represent. when it is finally all sourced then gold will just depreciate. e.g. 1 kilo=$1000 10 years later for example 1kilo will be worth 10,000 simple
jaberzak (November 30, 1999 at 12:00 am)
It's not enough to say "Vote Ron Paul"PEOPLE NEED TO SWITCH PARTIES 12 WEEKS IN ADVANCE OF THE PRIMARIES IN MOST STATES.IF YOU DO NOT SWITCH IN TIME YOU CANNOT VOTE IN PRIMARY.IF YOU ARE NOT REGISTERED REPUBLICAN YOU CANNOT VOTE IN PRIMARY.IF RON PAUL DOES NOT WIN PRIMARY, NO GENERAL ELECTION ! REGISTER AS A REPUBLICAN. FIND OUT WHEN YOUR STATE HAS PRIMARIES. FIND OUT WHERE AND VOTE VOTE VOTE ! PLEASE !
QCBEC (November 30, 1999 at 12:00 am)
Between January and September 2011, Mitt Romney's Bain Capital gave Barack Obama $27,500!So far this year, Bain Capital donated $123,200 to the Democratic National Committee. They also donated to a Romney super PAC; $1.25 million!Romney's companies have sent 25% of this year's donations to the Democrats, while in 2008, 2/3 of their money went to Obama!Donkey or Elephant -- Corporations keep them FED.
stealx97 (November 30, 1999 at 12:00 am)
GOLD CANNOT WORK BECAUSE IT IS A FINITE RESOURCE. that being said, Ron Paul is still the best Republican candidate and I might vote for him ^^
plwcdi (November 30, 1999 at 12:00 am)
VOTE *RON PAUL* FOR 1012 PRESIDENT!!!
insomniacdude (November 30, 1999 at 12:00 am)
@TheYounghector @insomniacdude 2: More abstractly, the great thing about the gold standard is that its value is set by market fluctuations, not what the government insists its value should be. Which means that if things start to come around and gold is a less useful resource as money, other materials would crop up and take its place. Everything can be a currency because everything has value. It can be silver, diamonds, Steinbeck novels, rubber bands, or DVD players. The market would evolve.
insomniacdude (November 30, 1999 at 12:00 am)
@TheYounghector Monopolization of the gold supply would never be an issue, and I say that for two reasons. 1: Just thinking practically, do you know what it would take for one person to have control of the supply and the flow of all gold, everywhere, at the same time? The only way they could do that is if people were to sell their supply of gold, and as this monopolizer bought more gold, the "goldmines" would grow larger and larger in value, meaning that people would be more reluctant to sell.

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