Explanation of his gold reserve theory

[tommy949]

I am questioning his theory. With the federal reserve, we print out a currency which represents how much assets the government has and since we do international trade which he promotes with countries like China, how would we use the gold standard to change our currency to some other currency once in foreign nations especially because gold prices have gone up by 15 dollars an ounce then down 15 dollars an ounce for the past few decades, which are so unstable that we cannot have a stable exchange rate with other countries for trade. I am not 100% positive of how this gold standard theory works but can somebody explain why it is better than the federal reserve?

[sailingaway]

It isn't gold that has been unstable but the commodity you are pricing the gold in...dollars. IN a panic, gold reacts in price as people flee there, but otherwise, put how much commodity, not dollars you could have bought with gold or silver against how much of that commodity you could buy with gold. don't price it in dollars which are essentially worthless next to what they were, and trade on confidence, which fluctuates.

But you will do better to discuss this in the hard money subforum where people far more educated than I will give you a lot more details.

I will say Ron doesn't want to go back to a gold standard, but, if the laws can be changed to allow it, to (a) let people save in gold or silver so their savings don't depreciate with inflation, and not be taxed on 'gain' measured by the drop in value of the dollar when they spend it, (b) trade in competing currency (gold and silver) if the PREFER to do so without those 'gains' taxes (this would keep competition to the fed so they couldn't print as much money as they want or no one would use it) and (c) as a much longer range goal, move into a commodity backed dollar, not necessarily gold, but a basket of commodities such as Hayek described, where the market chose the commodities. The point is to peg it to value so it can't be arbitrarily devalued by the Fed.

[wgadget]

You can also learn a LOT at the kitco forums. Www.kitco.com Click on the gold forum tab near the top of the page. Lots of knowledge over there!

[ronpaulfollower999]

http://whyisupportronpaul.us/

[floridasun1983]

This is an issue I think Ron could do a better job explaining. A lot of conflicting information and lack of details out there, when you tell people "competing currency" just imagine chaos. Needs to be articulated better.

[Travlyr]

"Gold, Peace, and Prosperity" by Ron Paul

[WilliamC]

Question number one, how much gold is there anyway?

Until we know that then we cannot know how to implement a fair or impartial gold standard.

No one to my knowledge really knows how much gold there is, or where it is, or who controls it, or at least very few people know even a majority of the truth about this.

Supposedly the Brenton-Woods Accords at the end of WWII divided the World's gold into open, or public gold, and secret, or blacklisted gold.

The USA was given control of much of the gold, both open and secret, to base the worlds currency on and rebuild the world in the wake of WWII's devastation, on a scale much much larger than the Marshall plan.

Instead the FED gained control over this cold and used it to fund wars and enrich the bankers and globalists who were in charge of the various Central Banks of the worlds Nations, and by now the rest of the power structure in the world is basically FED up with them to make a pun.

So supposedly we are now witnessing the final positioning of the factions at the top of the geopolitical power structure of the world before fundamental change is brought about. There are those who wish to use their wealth and power to cause WWIII, which they think will further cement themselves and their families as literal rulers of the rest of humanity, and more who want to remain wealthy and powerful but who have much less interest in being rulers, or at least tyrannical despotic rulers.

I'm sure things are a bit more complicated in real life but most of the worlds problems aren't really that hard to figure out if you aren't out to screw everyone else to advance yourself, and hopefully the time is upon us when those who do want to do so will be exposed and revealed and dealt with appropriately and justly.