Ron Paul's Faith-based Monetary Policy

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With electronic money inflation is not a problem because you do not need a wheelbarrow full of money to buy a loaf of bread.

I don't see anything in that video where he claims he does what he does because of his beliefs in religion. Listen to the clip and pay attention. He makes comparisons with what is on the bible and the constitution and DOES quote a founding father's words on that respect. His audience was a group of religious and he was not there alone.. I believe all the other candidates were there and he was present via long range communication as Dr Paul was in washington doing his day job: congressman.

I could go into the huge clusterf**k the current capitalist system is in because of fiat currency and why returning to a tangible, physical back-up of money is what ensures stability but it'd take me five pages to type it out.

The simplest way to explain the difference is that, as shown in the above posts, if the economy tanks it will tank. There is no way to prevent economic problems or crashes because they are caused by a series of human errors that eventually implode.

At the core of those problems is credit. Whether there is a gold standard or merely paper money backed economies the issue is always that credit gets out of hand. Credit is the backbone of the entire stock exchange and the economic system since..well, probably since before the middle ages.

The big difference however is that with a gold standard backing the credit lines have a significantly harder time reaching that implosion point (in fact the great depression was largely caused by the federal reserve's mismanagement of credit in their attempt to prevent economic problems of the first decade of the 1900's). Without the ability to print endless money the credit lines do not overextend that easily.

In a pure paper economy there is virtually unlimited means to overextend credit lines and the entire system becomes addicted to it because of the multiple-decades of insane growth it creates. It cannot go on forever however.

When the crash does happen is when the difference between gold and paper standard comes to play. With gold standard there is a tangible asset that backs the money while in paper economy there is nothing. Our current system bases the value of money largely on expected future income which is absolutely idiotic and fatal because when the crash does hit there IS no future income of any sort that can be relied upon.

As the old saying goes... if you have gold in hand you can trade with it but if you're stuck with paper money all you can do is burn it.

Now, Dr. Paul's idea of a gold-backed economy may not be entirely viable in our current economy because there is not enough gold around to account for the assets out there. Gold or precious metals that is. But there are alternatives or add-ons that can be used to back the currency and bring long term stability to the market... things like land, mineral rights and other natural resources can be used as part of the back-the-money-with-something 'portafolio' .

A great majority, if not all of societies problems can be traced back to the monetary system. There has never been any idea that has been so utterly devastating and destructive to the earth, to each other and to other creatures than the concept of money. The pursuit of money and posessions will probably lead to our own extinction eventually, already it is the driving motive behind nearly every form of cruelty, atrocity and destructive act around the world.

It does appear that the USA doesn't have enough gold to cover a gold standard

http://economywatch.nbcnews.com/_news/2 ... short?lite

My God. Just when I think Ron Paul is crazy enough, he opens his mouth and astounds me even more.

-Bill, otherwise known as Kraichgauer