WASHINGTON (FMLiveWire) - The current fraud of US dollar proliferation is coming to an end, says Congressman and Republican Presidential Candidate Ron Paul, and his message just gave George Bush a nervous breakdown.
Paul advocates a return to the gold standard to back the US dollar, which would prevent the continual debasement of the US currency by the overprinting of dollars by governments such as George Bush's. It would also halt US imperial wars and overseas adventurism as in Iraq and Afghanistan.
"When gold was used, and the rules protected honest commerce, productive nations thrived," Paul notes. Yet now, "Gold no longer is the currency of the realm; paper is."
He warns that printing paper money with a gold backing "is nothing short of counterfeiting."
When paper money is rejected, or when gold runs out, wealth and political stability are lost, as is occurring presently to the USA.
He points out that the US Federal Reserve has found it much easier to expand the money supply at will for financing war or manipulating the economy without a gold standard.
After World War 2, Paul notes that "the world chose not to return to the discipline of the gold standard, and the politicians applauded. Printing money to pay the bills was a lot more popular than taxing or restraining unnecessary spending."
"The 1944 Bretton Woods agreement solidified the dollar as the preeminent world reserve currency, replacing the British pound. Due to our political and military muscle, and because we had a huge amount of physical gold, the world readily accepted our dollar (defined as 1/35th of an ounce of gold) as the world's reserve currency. The dollar was said to be 'as good as gold,' and convertible to all foreign central banks at that rate."
Yet this system finally failed in 1971 after the French and other countries in the late 1960s demanded the USA fulfill its promise to pay one ounce of gold for each $35. Nixon closed the gold window and refused to pay out any remaining gold. In essence, the USA declared insolvency, but the day of reckoning was delayed by backing the US dollar with in an unstable arrangement with OPEC oil.
Yet the debasement of the dollar continues. In the past 5 years for instance, the dollar has been devalued in terms of gold by more than 50%.
Paul states, "You just can't fool all the people all the time, even with the power of the mighty printing press and money creating system of the Federal Reserve."
The results have been horrendous but predictable, and George Bush's monstrous and illegal wars are the result of the inflated and debased US dollar.
Paul observes that "Protectionism, fixing exchange rates, punitive tariffs, politically motivated sanctions, corporate subsidies, international trade management, price controls, interest rate and wage controls, super-nationalist sentiments, threats of force, and even war are resorted to-all to solve the problems artificially created by deeply flawed monetary and economic systems."
Upon hearing Paul's diagnosis, George Bush broke down and cried and was given a strong sedative by Karl Rove and Dick Cheney.
As Bush fell asleep, he blurted, "Ron Paul is right and I'm wrong, wrong, wrong! OMG, my presidency has been so off-base and dishonest! The American people must elect Ron the next US President! That guy is a genius!"
--Copyright FM Live Wire