Ron Paul on the fiat currency system. Enjoy the video below.
“99 or 98 percent of the dollar value is gone from the 1913-dollar. So that’s not a really a very good record [of the Fed].”
“every single day it buys less than the next (!) day. It’s like having a yard stick that would change its value every single day”
“[Inflation.] It’s theft. (…) Somebody is stealing wealth.”
“Prices go up. That to me is not inflation. It is one of the bad consequences of the inflation.”
The fiat money debate will continue forever or until the system is no longer fiat. Very, very few peole actually get it – even Ron Paul,I think.
Gold and Silver as money is medieval and in today’s world would not be an efficient way of doing business. To revert back to, I believe would create a larger depression than the current system threatens. It’ not the amount of Gold in a Central Banks vault that backs their currenecy, it is; The stability of it’s Government, The democracy in the country, It’s membership in global unions and traeties, How transparent it is, The level of corruption, The Military strength and reach, The Science, reserach and inovation in a country, It’s nuclear technology, It’s Education system, It’s IT and communications, It’s natural resources and enerygy and ability to aquire from elseswhere, It’s agricultutal abiliity, – The stabilty of it’s society as a whole … it’s these type of things that back a currency not gold in the vault.
The world has changed massively in the last 40-50 years and a gold backed currncey is just a way too simplistic idea for modern complexity.
Gold.. you spend loads of money finding it and digging it out of the ground only to put it back into the ground and pay alod of big guys to guard it. Great idea!!! I think Warren Buffett has some good points here: http://www.marketwatch.com/story/buffett-rebuffs-gold-but-inflation-says-buy-2012-02-29
Gold is a great investment, but not because we will ever go back to a gold standard. It’s is beacause everybody is bidding it up and talking endlessly about it… a bubble plain and simple like Nasdaq stocks back in 99/2000. Alot of people will get burnt in this bubble too.
Oil has far more uses.. why shouldn’t a country be backed by oil… Saudia Arabia is really isn’t it?
Food for thought.. if Zimbabwe suddenly had loads and loads of Gold.. would all their financial probelms suddenly be solved?? unlikely as corruption is very entrencehd and they would probably have a lot of neighbours trying to take that gold off their hands for free!
Sorry for any typos,
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