gringostarr
01-12-2008, 08:31 AM
Stop supporting ron paul!
Here's a nice little article about the Gold Standard and what would happen if it were brought back:
"The US converting to a gold standard would require them to re-issue all currency in circulation as a fixed amount of gold. Since the US government doesn't have a lot of gold, it would mean a lot less currency. Thus, they would need to purchase gold — as a result, the price of gold would skyrocket. The US government would have to sell assets in order to purchase the now absurdly expensive gold, or run a deficit. Taxes would be forced to rise to finance this.
However, this would be pointless, since approximately 1 trillion dollars of goods flows out of the US economy every year. Thus, the economy would literally bled gold bullion. The only way to balance out is a recession, so deep and crippling, that it would eliminate the US trade deficit.
Okay, the regulatory mechanism for the gold standard works like this. Suppose we have two countries, A and B.
Now, for whatever reason, country A is on the gold standard. It doesn't matter what country B is on. Now, A and B buy and sell goods to one another. In order to buy and sell goods, the people in these countries need to purchase currency from one another to buy them.
When an economy buys things from another economy, they need to purchase money from the other economy to buy goods. So, for instance, country A needs to buy country B's currency (call it B$) to buy goods from country B. And vice versa.
Now, as they buy and sell, there usually will be an imbalance been how much people buy and sell in a given country. For instance, country A may be buying more from country B than it is selling. This leads to an imbalance in the currencies, because people in country A will be buying up B$ and selling A$. When it all comes out in the wash, there is a surplus of A$ on the market -- that is, the demand for A$ is lower than the amount supplied.
Now, people will work to correct this surplus, because it's pointless for them to have A$ sitting around no one wants to own. In a quasi-fiat system of freely traded currencies, the exchange rate does this. Bankers and financial dealers adjust the relative values of the currencies to make the "price" of A$ optimal. Currencies wax and wane in value based on their economies and variety of other complex mumbo jumbo which doesn't really matter here.
However, in the gold standard this doesn't happen, because A$ are linked to a fixed amount of gold -- that is, a commodity. Instead, people who hold A$ start redeeming them for gold, in order to sell them as a useful commodity. As a result, Country A's stockpile of gold, which they use to back their currency on, dwindles. In turn, the supply of money for country A falls.
Not enough money is circulation causes the economy to constrict, since doing basic business becomes increasingly difficult. It also can cause deflation, and a host of other problems. In short, the only way for A's domestic economy to come into equillibrium is for it to crash. Businesses shut down, and domestic demand for goods slows as the economy stalls.
While this is a bad thing, it does do one very good thing. If you have no money, because the economy is in recession, you can't very well afford to buy items from country B. Thus, the supply of A$ on the market falls, and people stop redeeming the excess for gold. The process brings the two markets into equilibrium again, and all is well in the world of international commerce.
Of course, the side effects are not exactly pleasant for people in country A."
END OF UPDATE
Here's why he's a fucking lunatic:
http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.300.IH:;
This is something that Ron Paul has introduced EVERY YEAR FOR MANY YEARS as one of his core issues. In the link is the full text of the bill HR 300 (Introduced by Ron Paul).
For those of you too lazy to read it, here's a fun quote:
"(5) Congress has constitutional authority to set broad limits on the jurisdiction of both the Supreme Court and the lower Federal courts in order to correct abuses of judicial power and continuing violations of the Constitution of the United States by Federal courts"
To sum it up, Ron Paul wants to leave the protection of civil liberties in the hands of state courts, which have a terrible track record of doing so, rather than in the hands of federal courts. While a good idea in theory to prevent the federal courts from interfering in state's affairs, the state courts rarely actually defend civil liberties, which is why so many cases end up in the hands of the supreme court.
Oh also he supports sending all illegal immigrants back to where they came from, nevermind the possibility of a 10% death rate for those people. THIS IS AMERICA GET OUT YOU DIRTY IMMEGRANTS
Also, he wants to get rid of income taxes. Never mind that roughly half of the government's money comes from income taxes. Where will they get money for federal programs? WHO CARES NO MORE INCOME TAXES YEEE HAW RON PUAL
please read up on the candidate so many people blindly support because he's a raving lunatic
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Sorry it's so long, but I really don't know what to say to this person, and I was hoping for a little help. I'd be very appreciative if anyone were to offer me any advice. Thank you.
Here's a nice little article about the Gold Standard and what would happen if it were brought back:
"The US converting to a gold standard would require them to re-issue all currency in circulation as a fixed amount of gold. Since the US government doesn't have a lot of gold, it would mean a lot less currency. Thus, they would need to purchase gold — as a result, the price of gold would skyrocket. The US government would have to sell assets in order to purchase the now absurdly expensive gold, or run a deficit. Taxes would be forced to rise to finance this.
However, this would be pointless, since approximately 1 trillion dollars of goods flows out of the US economy every year. Thus, the economy would literally bled gold bullion. The only way to balance out is a recession, so deep and crippling, that it would eliminate the US trade deficit.
Okay, the regulatory mechanism for the gold standard works like this. Suppose we have two countries, A and B.
Now, for whatever reason, country A is on the gold standard. It doesn't matter what country B is on. Now, A and B buy and sell goods to one another. In order to buy and sell goods, the people in these countries need to purchase currency from one another to buy them.
When an economy buys things from another economy, they need to purchase money from the other economy to buy goods. So, for instance, country A needs to buy country B's currency (call it B$) to buy goods from country B. And vice versa.
Now, as they buy and sell, there usually will be an imbalance been how much people buy and sell in a given country. For instance, country A may be buying more from country B than it is selling. This leads to an imbalance in the currencies, because people in country A will be buying up B$ and selling A$. When it all comes out in the wash, there is a surplus of A$ on the market -- that is, the demand for A$ is lower than the amount supplied.
Now, people will work to correct this surplus, because it's pointless for them to have A$ sitting around no one wants to own. In a quasi-fiat system of freely traded currencies, the exchange rate does this. Bankers and financial dealers adjust the relative values of the currencies to make the "price" of A$ optimal. Currencies wax and wane in value based on their economies and variety of other complex mumbo jumbo which doesn't really matter here.
However, in the gold standard this doesn't happen, because A$ are linked to a fixed amount of gold -- that is, a commodity. Instead, people who hold A$ start redeeming them for gold, in order to sell them as a useful commodity. As a result, Country A's stockpile of gold, which they use to back their currency on, dwindles. In turn, the supply of money for country A falls.
Not enough money is circulation causes the economy to constrict, since doing basic business becomes increasingly difficult. It also can cause deflation, and a host of other problems. In short, the only way for A's domestic economy to come into equillibrium is for it to crash. Businesses shut down, and domestic demand for goods slows as the economy stalls.
While this is a bad thing, it does do one very good thing. If you have no money, because the economy is in recession, you can't very well afford to buy items from country B. Thus, the supply of A$ on the market falls, and people stop redeeming the excess for gold. The process brings the two markets into equilibrium again, and all is well in the world of international commerce.
Of course, the side effects are not exactly pleasant for people in country A."
END OF UPDATE
Here's why he's a fucking lunatic:
http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.300.IH:;
This is something that Ron Paul has introduced EVERY YEAR FOR MANY YEARS as one of his core issues. In the link is the full text of the bill HR 300 (Introduced by Ron Paul).
For those of you too lazy to read it, here's a fun quote:
"(5) Congress has constitutional authority to set broad limits on the jurisdiction of both the Supreme Court and the lower Federal courts in order to correct abuses of judicial power and continuing violations of the Constitution of the United States by Federal courts"
To sum it up, Ron Paul wants to leave the protection of civil liberties in the hands of state courts, which have a terrible track record of doing so, rather than in the hands of federal courts. While a good idea in theory to prevent the federal courts from interfering in state's affairs, the state courts rarely actually defend civil liberties, which is why so many cases end up in the hands of the supreme court.
Oh also he supports sending all illegal immigrants back to where they came from, nevermind the possibility of a 10% death rate for those people. THIS IS AMERICA GET OUT YOU DIRTY IMMEGRANTS
Also, he wants to get rid of income taxes. Never mind that roughly half of the government's money comes from income taxes. Where will they get money for federal programs? WHO CARES NO MORE INCOME TAXES YEEE HAW RON PUAL
please read up on the candidate so many people blindly support because he's a raving lunatic
-----
Sorry it's so long, but I really don't know what to say to this person, and I was hoping for a little help. I'd be very appreciative if anyone were to offer me any advice. Thank you.