Gary North: "Ron Paul is correct. The government should sell the gold."

[rp08orbust]

http://www.garynorth.com/public/8028.cfm

[YumYum]

Great article!

[TER]

Excellent article!

I personally liked this part: "A State-run monetary system, with the exception only of Byzantium, becomes a debased standard."

In fact, this is the time of history which first gave freedom and autonomy to the Church, as being neither under authority or tyranny of the State. The Second and baptized Roman Empire, the born again Roman Empire, the Byzantine empire, which lasted longer than the old Roman Empire and which practiced sound money as an institution. The very government was trusted with the empire's wealth and the nation and the people prospered, glorying in one voice the Lord of Lords and Kings of Kings, Jesus Christ. It's unfortunate the State-mandated school texts of the western world spend little to no time learning about this extraordinary and epic era of human history.

[Sola_Fide]

Man, that was so good.

That really helped me see the issue for what it is. Gary North is great.

[llepard]

Agree. But i take issue with one point and sent Dr. North the following email.

Sir:

Well said.

I only take issue with your characterization of all “gold bugs” as not wanting it to be sold. I am a gold bug, and I am fine with it being sold. If it happens to be there. I know from private conversations that Dr. Paul does not believe it is there, and neither do I. So in a sense I believe his move is a checkmate to the financial establishment. Brilliant. If it has no value, sell it. If it has value then why not build the system around it?

You say that some gold bugs do not want it to be sold because it would make the price go down and hurt their investment. I am sure there are gold bugs who feel that way, but I am not one of them. I do not think selling it would make the price go down. In the scheme of things 8,000 tons is not a big enough fraction of 160,000 tons mined since we became civilized to greatly affect the price for a long period of time. A couple hundred billion dollars of value is nothing compare to the trillions of paper assets that are floating around. When people move from paper to real money the value of real money as measured in paper is going to astonish everyone.

In my opinion if gold were to return to its rightful place as money in our society it would be valued at about $80,000 per ounce. The only reason for the government not to sell it is because it is leaving money on the table, but since I hate government I, like you, view that as a good thing.

It is a brilliant move by Ron Paul. But, don’t necessarily think all gold bugs are opposed, and don’t think the price would necessarily fall. I can argue that even with additional supply from the government the re-monetization of gold will move the demand curve enough that the paper price of gold will rise substantially.

Otherwise, thanks for the great article.

Larry