Help need Rebuttal?

[VoteRonPaul2008]

The Fed is a system run by a board appointed by the president and confirmed by the senate. It's range and scope is determined by congress and it is answerable to congress and audited by the GAO. It pays net revenues back to treasury. To claim such an organization is private because it operates with and through private companies is dishonest. The pentagon is not private even though it does business with private companies and those companies are allowed to keep thier profits.
To return to gold is a recipe for disaster. We have been forced to drop such a system every time we have had any sort of shock to the economy. To take the control of the value of our currency away from an independent but accountable board and hand it over to the South African mining companies is irresponsible.

[VoteRonPaul2008]

?????????

[Elwar]

Ron Paul does not advocate a return to the gold standard that is often quoted in the media.

He advocates opening up the currency market to competition.

[noxagol]

Ron Paul has said gold standard is demanded by the Constitution, because well, it is!

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;

[VoteRonPaul2008]

thanks, I'm still confused..?

[bdmarti]

The Fed is a system run by a board appointed by the president and confirmed by the senate.

The president gets to choose those nominees from a list provided to him by the FED. It's not really a very open process.


It's range and scope is determined by congress and it is answerable to congress and audited by the GAO.

Really? Audited in what way?
What answers does it give?
What consequences does it face in reality?
When has congress ever given direction to the FED?



It pays net revenues back to treasury. To claim such an organization is private because it operates with and through private companies is dishonest. The pentagon is not private even though it does business with private companies and those companies are allowed to keep thier profits.

A distinct difference between any other government contractor and the FED is that the FED makes it's money directly because of federal legal tender laws and it's own policies such as the reserve ratio that it sets for itself, or the interest rates that it sets for itself, whereas other contractors actually have to perform a service and generally have to bid for the opportunity to provide that service.

The FED does not provide a legitimate service for the economy. It is nothing but a leech. It's ability to loan out some 9 times the currency/assets it has on deposit exists because of federal government and it badly confuses the marketplace when it comes to actual capital accumulation and credit services that should be provided by banks.



To return to gold is a recipe for disaster. We have been forced to drop such a system every time we have had any sort of shock to the economy.

This is a bold, and false accusation. We have, prior to 1913, used fiat currency a couple of times when we went to WAR. There were few shocks to the economy under the 100+ years we existed with commodity backing to our currency.


To take the control of the value of our currency away from an independent but accountable board and hand it over to the South African mining companies is irresponsible.

This is just dumb. The FED board IS NOT ACCOUNTABLE because they are NOT held accountable.

South african mining companies would have little, if any, influence over currency values were they backed by commodities such as gold.

and even if they COULD influence the value of the currency, it requires real work to produce more gold, or real goods to trade it out of circulation. Such a currency can't be added or removed by just typing digits into a computer.

What's really irresponsible is putting my savings and my work in the hands of a bunch of people that I don't trust, can't elect, and generally can't even talk to who all have a profit motive to inflate away the value of our money!

[Elwar]

http://www.gold-eagle.com/editorials_05/nystrom062807.html


Question: You support returning the country’s currency back to the gold standard. Is that correct?

Ron Paul: Not exactly. I’m for supporting the Constitution, and the Constitution still says only gold and silver can be legal tender. … The reasons I don’t like to say "go back" is because there were shortcomings in the original gold standard. What I reject, and the founders totally rejected, was a paper standard - creating money out of thin air. Spending money you don’t have. Printing it up. Causing inflation. Causing bubbles. Causing recessions. And wiping out the middle class. The middle class is getting poorer as the wealthy class is getting wealthier.

[VoteRonPaul2008]

Thank You Paul supporters!

[Mac Guy]

I must admit that in talking about the gold standard, I'm clueless. :(

Do we HAVE to have a currency based on gold?

It's a historical fact that The Fed was created in secret at Jekyll Island, Georgia and Woodrow Wilson was apparently tricked into signing the Federal Reserve Act into law. This is why we have Federal Reserve notes rather than Treasury notes. If elected, can't Dr. Paul use that as cause for eliminating The Fed?

[Cindy]

Ron Paul has said gold standard is demanded by the Constitution, because well, it is!

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts;

That constitutional law that was trampled on aside, Ron paul is not for a return to the gold standard. he is for creating a competing currency backed by gold.

Make that clear to people. And while at it, ask them if they would rather own currency backed by the rising value of gold, or currency backed by the depreciating negative value of debt?

[Snowfire]

Also, South Africa does not have a monopoly on gold mining:

http://www.gold.org/value/markets/supply_demand/mine_production.html


.

[VoteRonPaul2008]

good point cindy, can you expand on that... I still have some confusion on whether Paul wants to return to the gold standard.. or just have something solid to back up the dollar

[Mark Rushmore]

http://www.gold-eagle.com/editorials_05/nystrom062807.html

Nice to see another Gold-Eagle reader. I've long been using this link (http://www.gold-eagle.com/editorials_99/hannigan092099.html)as in introductory piece, but it's gaining even more traction under the circumstance.

[DaronWestbrooke]

Ron Paul does not advocate a return to the gold standard that is often quoted in the media.

He advocates opening up the currency market to competition.

?? This is the first I've heard this argument?

[Thurston Howell III]

?? This is the first I've heard this argument?

Indeed, I've even heard him say something like, let the market decide what to use for money.