We would start a transition away from the paper money to a gold or silver standard, it will not be done overnight but possibly over 2 terms. The central banks are running the show, and they might have the biggest reserves of gold also, so I really don't see how they will be in a disadvantage.
Guess what chief? I googled the end the fed benefits from ron paul, and it states that the gold standard, will eliminate inflation and dollar will not be devalued!! Maybe that helps, becuase we can see how inflation is dragging our dollar down.
... Did it mention the fact that one of the first recorded instances of hyperinflation was during the Spanish pure gold standard and the discovery of New World gold? I find it hard to believe that you read the book, because from my understanding, Uncle Paul is asking for a basket of commodity-backed currencies or private currencies. I don't think he is dumb enough to advocate for a pure gold standard wherein nature or gold companies set your monetary policy for you.
I like Ron Paul and agree with a lot of what he stands for but his totally clueless when it comes to the economics. He bases his economics theories on a book written by a fiction writer. I don't want our monetary policy to be governed by a bunch of pandering politicians or mother nature.
Good info! Will look into the spanish hyperinflation. I have not finish reading the book, maybe read the first chapter. Personal question, do you have a background in finance or economics??
I don't know if anyone can confirm or deny this, but it's been reported that Ron Paul is really really farty, but he never smells his own farts because his supporters come up behind him and inhale all the buttgas.
Good to hear, I wonder how can we achieve deflation, in order for our currency to gain its value as before.
Basic Economics 101: Deflation is much, much worse than inflation. And something to ponder about with your statement: fifty years ago, a piece of candy cost 5 cents or something like that. Consequently, we've had a lot of inflation within these past fifty years. But are we or is the world actually worse off than it was fifty years ago?
Avoiding deflation has been a central tenet of central banking in the modern age. There are a myriad of costs that outweigh the marginal benefits of price stability, chief among them the fact that you are intentionally leading yourself into a liquidity trap.
Sorry - to clarify, I understand what his proposed policies are. I'm curious, since you seem to aggressively support them and believe them to be the solution to our problems, how you believe implmenting them would play out. For example, if we went to the gold/silver/basket-of-currencies standards, how do you think that would affect you, poor people, rich people, banks, the economy as a whole, etc? In what ways do you think this change would fix our problems?
What do you see as the negative and positive consequences of inflation and the dollar being "dragged down"?
You also found common ground with Obama and the Democrats, as that's their basic proposal. Obama has been talking about entitlement reform since the week he came into office.
Isn't a liquidity trap (a) only a tenet of Keynesian economics, and completely rejected by the Austrian school, and (b) already in existence in America because our effective interest rate is at or near zero (and thus cannot be reduced by printing more money). In support of (b): Paul Krugman.
I know, I was a democrat for the past 12 years. See one can promise you change, (no pun intended) but its a cluster **** to achieve that change, when the majority of politicians will work against each other to prevent it.
Now, the only individuals who will benefit from deflation would be the ones who have a huge existing savings??
The working class or the working poor who work per hour will earn less money for the same amount of work due to a high rate of inflation. Most employers will not give their employees a cost of living adjustment to be in par with inflation rates. Food and gas gets more expensive while the worker makes the same pay. Our dollar is worth less.
We are witnessing currency losing its value today, even other countries were thinking about droping our dollar as the reserve for the yen before they suffered an earthquake a year ago. That is why maybe we should try a different approach or we might have the same results.
Northside Storm, what solutions do you see fit to fix our dollar value. Why is both silver and gold skyrocketing in price compare to our dollar?? How do you reverse that??
