Re: [A-List] Ron Paul on the Dollar's Woes

["Anne Williamson" <annewilliamson@xxxxxxx>]

Yes, Xxxx, it's a copy of Dr. Paul's address to the
Congress on June fifth of this year.  I pulled it
from www.lewrockwell.com issue posted today.
Also, please note earlier posting regarding the letter
Larry Parks of the Foundation for the Advancement
of Monetary Education (www.fame.org) wrote
regarding Dr. Paul's introduction of legislation to
change IMF rules to allow for a nation to gold back its
currency.  Passage of such legislation (unlikely) would
pull the rug out from under the IMF's ability to loot
foreign nations via lending on behalf of the profits of
commercial banksters, and the US's ability to
advance its empire with other peoples' money. - Anne

----- Original Message -----
From: Xxxx Xxxxxx <xxxxxxxxxx@xxxxxxxxxxxxx>
To: <a-list@xxxxxxxxxxxxxxxxxxx>
Sent: Wednesday, June 12, 2002 10:04 AM
Subject: Re: [A-List] Ron Paul on the Dollar's Woes


> Hi Anne. Thanks for posting this information. where is it from? can you
give
> the exact citation?
>
> is this a speech at the House of Representatives?
>
> thanks,
> ---
> Xxxx Xxxxx Xxxxxx
> Ph.D Candidate, ABD
> Department of Political Science
> SUNY at Albany
> Nelson A. Rockefeller College
> 135 Western Ave.; Milne 102
> Albany, NY 12222
>
> ----- Original Message -----
> From: "Anne Williamson" <annewilliamson@xxxxxxx>
> To: <a-list@xxxxxxxxxxxxxxxxxxx>
> Sent: Wednesday, June 12, 2002 8:57 AM
> Subject: Re: [A-List] Ron Paul on the Dollar's Woes
>
>
> >
> >
> > The Declining Dollar
> >
> > by Rep. Ron Paul, MD
> >
> > US House of Representatives, June 5, 2002
> >
> > Mr. Speaker, I have for several years come to the House floor to express
> my
> > concern for the value of the dollar. It has been, and is, my concern
that
> we
> > in the Congress have not met our responsibility in this regard. The
> > constitutional mandate for Congress should only permit silver and gold
to
> be
> > used as legal tender and has been ignored for decades and has caused
much
> > economic pain for many innocent Americans. Instead of maintaining a
sound
> > dollar, Congress has by both default and deliberate action promoted a
> policy
> > that systematically depreciates the dollar. The financial markets are
> keenly
> > aware of the minute-by-minute fluctuations of all the fiat currencies
and
> > look to these swings in value for an investment advantage. This type of
> > anticipation and speculation does not exist in a sound monetary system.
> >
> > But Congress should be interested in the dollar fluctuation not as an
> > investment but because of our responsibility for maintaining a sound and
> > stable currency, a requirement for sustained economic growth.
> >
> > The consensus now is that the dollar is weakening and the hope is that
the
> > drop in its value will be neither too much nor occur too quickly; but no
> > matter what the spin is, a depreciating currency, one that is losing its
> > value against goods, services, other currencies and gold, cannot be
> > beneficial and may well be dangerous. A sharply dropping dollar,
> especially
> > since it is the reserve currency of the world, can play havoc with the
> > entire world economy.
> >
> > Gold is history's oldest and most stable currency. Central bankers and
> > politicians hate gold because it restrains spending and denies them the
> > power to create money and credit out of thin air. Those who promote big
> > government, whether to wage war and promote foreign expansionism or to
> > finance the welfare state here at home, cherish this power.
> >
> > History and economic law are on the side of the gold. Paper money always
> > fails. Unfortunately, though, this occurs only after many innocent
people
> > have suffered the consequences of the fraud that paper money represents.
> > Monetary inflation is a hidden tax levied more on the poor and those on
> > fixed incomes than the wealthy, the bankers, or the corporations.
> >
> > In the past 2 years, gold has been the strongest currency throughout the
> > world in spite of persistent central bank selling designed to suppress
the
> > gold price in hopes of hiding the evil caused by the inflationary
policies
> > that all central bankers follow. This type of depreciation only works
for
> > short periods; economic law always rules over the astounding power and
> > influence of central bankers.
> >
> > That is what is starting to happen, and trust in the dollar is being
lost.
> > The value of the dollar this year is down 18 percent compared to gold.
> This
> > drop in value should not be ignored by Congress. We should never have
> > permitted this policy that was deliberately designed to undermine the
> value
> > of the currency.
> >
> > There are a lot of reasons the market is pushing down the value of the
> > dollar at this time. But only one is foremost. Current world economic
and
> > political conditions lead to less trust in the dollar's value. Economic
> > strength here at home is questionable and causes concerns. Our huge
> foreign
> > debt is more than $2 trillion, and our current account deficit is now 4
> > percent of GDP and growing. Financing this debt requires borrowing $1.3
> > billion per day from overseas. But these problems are ancillary to the
> real
> > reason that the dollar must go down in value. For nearly 7 years the
U.S.
> > has had the privilege of creating unlimited amounts of dollars with
> > foreigners only too eager to accept them to satisfy our ravenous
appetite
> > for consumer items. The markets have yet to discount most of this
monetary
> > inflation. But they are doing so now; and for us to ignore what is
> > happening, we do so at the Nation's peril. Price inflation and much
higher
> > interest rates are around the corner.
> >
> > Misplaced confidence in a currency can lead money managers and investors
> > astray, but eventually the piper must be paid. Last year's record
interest
> > rate drop by the Federal Reserve was like pouring gasoline on a fire.
Now
> > the policy of the past decade is being recognized as being weak for the
> > dollar; and trust and confidence in it is justifiably being questioned.
> >
> > Trust in paper is difficult to measure and anticipate, but long-term
value
> > in gold is dependable and more reliably assessed. Printing money and
> > creating artificial credit may temporarily lower interest rates, but it
> also
> > causes the distortions of malinvestment, overcapacity, excessive debt
and
> > speculation. These conditions cause instability, and market forces
> > eventually overrule the intentions of the central bankers. That is when
> the
> > apparent benefits of the easy money disappear, such as we dramatically
> have
> > seen with the crash of the dot-coms and the Enrons and many other
stocks.
> >
> > Now it is back to reality. This is serious business, and the correction
> that
> > must come to adjust for the Federal Reserve's mischief of the past 30
> years
> > has only begun. Congress must soon consider significant changes in our
> > monetary system.
> >
> > Congress must soon consider significant changes in our monetary system
if
> we
> > hope to preserve a system of sound growth and wealth preservation. Paper
> > money managed by the Federal Reserve System cannot accomplish this. In
> fact,
> > it does the opposite.
> >
> > Dr. Ron Paul is a Republican member of Congress from Texas.
> > Ron Paul Archives
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
>
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