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Ron Paul Redux: "The End Of Dollar Hegemony"

Tyler Durden's picture





 

In a little-known 2006 speech (in the US, though widely known around the world), entitled "The End of Dollar Hegemony," Ron Paul discusses the breakdown of the Bretton Woods system - which most people know about - and the de-facto system that replaced it - which most people do not know about. As Casey Research's Nick Giambruno notes it is a must listen with the most important part of the speech where Paul discusses the petrodollar system, a primary factor in maintaining the dollar's role as the world's premier currency after the breakdown of Bretton Woods.

The End of Dollar Hegemony Part 1

 

The End of Dollar Hegemony Part 2

 

The End of Dollar Hegemony Part 3

 

Via Nick Giambruno of Casey Research,

The speech is an absolute must-listen...

...

The most important part of the speech is where Paul discusses the petrodollar system, a primary factor in maintaining the dollar's role as the world's premier currency after the breakdown of Bretton Woods.

"It all ended on August 15, 1971, when Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold. In essence, we declared our insolvency and everyone recognized some other monetary system had to be devised in order to bring stability to the markets.

 

Amazingly, a new system was devised which allowed the US to operate the printing presses for the world reserve currency with no restraints placed on it—not even a pretense of gold convertibility, none whatsoever! Though the new policy was even more deeply flawed, it nevertheless opened the door for dollar hegemony to spread.

 

Realizing the world was embarking on something new and mind-boggling, elite money managers, with especially strong support from US authorities, struck an agreement with OPEC to price oil in US dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence "backed" the dollar with oil. In return, the US promised to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic coup. This arrangement helped ignite the radical Islamic movement (Al Qaeda) among those who resented our influence in the region. The arrangement gave the dollar artificial strength, with tremendous financial benefits for the United States. It allowed us to export our monetary inflation by buying oil and other goods at a great discount as dollar influence flourished.

 

This post-Bretton Woods system was much more fragile than the system that existed between 1945 and 1971. Though the dollar/oil arrangement was helpful, it was not nearly as stable as the pseudo—gold standard under Bretton Woods. It certainly was less stable than the gold standard of the late 19th century.

 

The agreement with OPEC in the 1970s to price oil in dollars has provided tremendous artificial strength to the dollar as the preeminent reserve currency. This has created a universal demand for the dollar, and soaks up the huge number of new dollars generated each year.

Using force to compel people to accept money without real value can only work in the short run. It ultimately leads to economic dislocation, both domestic and international, and always ends with a price to be paid.

 

The economic law that honest exchange demands only things of real value as currency cannot be repealed. The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better."

Ron Paul told me that although this speech is relatively unknown in the US, it was widely received around the world. As we discussed the implications of these issues, Paul said that the premise of this speech still applies today.

I believe that once the dollar loses its status as the world's premier reserve, the US will start to implement the destructive measures we frequently discuss: capital controls, people controls, price controls, currency devaluations, confiscations, nationalizing pensions, etc.

Such things have happened recently in Poland, Cyprus, Iceland, Argentina, Zimbabwe, Venezuela, and a number of other countries.

Take a glance at history and you will quickly notice these measures are the norm when a government gets into serious fiscal trouble. Many nations have made the mistake of thinking they were somehow "exceptional" and that these kinds of things couldn't happen to them.

There is no question the US is and will continue to be in serious fiscal trouble unless it implements drastic (and politically impossible) changes. The only saving grace for the US has been its ability to print the world's reserve currency. But once that special privilege is lost, it will revert to the measures all other governments throughout history have taken.

You absolutely want to be internationalized before the US dollar loses its status as the world's premier reserve currency. I truly believe the window opportunity to take protective action will slam shut at that time. You can find our specific guidance on how to do that here.

 


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Wed, 10/09/2013 - 22:17 | Link to Comment Deo vindice
Deo vindice's picture

Ron Paul - the best president the United States never had.

Wed, 10/09/2013 - 22:30 | Link to Comment AlaricBalth
AlaricBalth's picture

"Look at Rome. The mighty mistress of the ancient world. Whose conquests burst the the boudaries of Europe, laid Carthage waste, and made from Britain to Egypt tributary to her power! Enervated by success, patriotism became but a name. Corruption stalked along her streets, and centered on her capital. The Republic withered, civil wars ensued, rival chiefs sought for sovereign sway, her seven centuries of glory began to wane, her power to depart, and now the owl doth build her nest where Cato counseled and Cicero declaimed! Shall this be the fate of our dear country?"
Daniel Doughery, 26 July 1859

Wed, 10/09/2013 - 22:40 | Link to Comment Ham-bone
Ham-bone's picture

Ron Paul is a crazy old coot and gold is no good cause it's not backed by anything...unlike the dollar.  Plus gold supply increases by like 1 or 2% a year...how can something that increases by that much every year hold it's value???

Wed, 10/09/2013 - 22:45 | Link to Comment BlackChicken
BlackChicken's picture

I really hope you forgot the sarc tag.

Wed, 10/09/2013 - 22:48 | Link to Comment Ham-bone
Ham-bone's picture

Fun to polk the ZH bears w/ a stick...guess my sarcastic intonation is a little tough to pick up over the internets

Wed, 10/09/2013 - 23:01 | Link to Comment Deo vindice
Deo vindice's picture

Polk? We'll need an explanation on that one...

But I did give an upvote on your first comment on faith - believing you forgot to turn on the sarcasm switch.

Wed, 10/09/2013 - 23:23 | Link to Comment Ham-bone
Ham-bone's picture

Heck - I didn't even mention they're gonna lasso a comet anyday now and increase the metals supply by a 1000%...read it on the internets...my source tells me to sell your barbarous relics while you can and despite what crazy old uncle Ron sez, enjoy the safety of the dollar...Janets got your back w/ low and stable inflation.

Wed, 10/09/2013 - 23:38 | Link to Comment optimator
optimator's picture

Our Government will probably lasso a meteor containing gold, and hopefully it would contain enough to replace what used to be in the Treasury.  You can have all the comets you want, hate to educate you but they contain only ice and a bit of dust.

Wed, 10/09/2013 - 23:47 | Link to Comment Ham-bone
Ham-bone's picture

damn that internet!!!  Well maybe they said it was a meteor?  you're good to try and help me understand...

Thu, 10/10/2013 - 05:56 | Link to Comment Zero Point
Zero Point's picture

Comet? I read they can now get bacteria to GROW gold out of nuthin.

Us stackers are fucked now, I guess I better put on some scuba gear, find mine, and sell it quick!

LOL. Their stories get better every minute.

Wed, 10/09/2013 - 22:50 | Link to Comment sgorem
sgorem's picture

is a ham boner the same thing as a pig fucker? just askin............

Thu, 10/10/2013 - 00:44 | Link to Comment Geruda
Geruda's picture

That's pretty funny.   Why would anybody junk that?!

Thu, 10/10/2013 - 01:26 | Link to Comment Ham-bone
Ham-bone's picture

greenie worthy - good stuff but if I had to pick, I'd probably look to fuck the sheeple and cull the pigs...jus saying

Wed, 10/09/2013 - 23:33 | Link to Comment optimator
optimator's picture

Your correct that anything that increases in value by one percent a year is not value.  Gold went from 350 an ounce to 1700 an ounce in 15 years.  What did tha value of your dollar gain?

Wed, 10/09/2013 - 23:55 | Link to Comment Ham-bone
Ham-bone's picture

gold only had a 12yr bull market!  If your buying what's in a bull market, take those dollars and buy government bonds, they've had a 32yr bull market since they replaced that fool Volcker with some professional managers at the Fed!!!

Thu, 10/10/2013 - 00:27 | Link to Comment Geruda
Geruda's picture

Shall this be the fate of our dear country?"

 

If the question even has to be asked someone is obviously not paying attention.   Never in the entire history of the human race has any civiization that rose to the top not consequently sunken into collapse.   

 

A great civilization is not conquered from without until it has destroyed itself within. The essential cause of Rome’s decline lay in her people, her morals, her class struggle, her failing trade, her bureaucratic despotism, her stifling taxes, her consuming wars.

~ William Durant

 

 I should throw in here - cheney and bush started the ball rolling with the worst foreign policy blunder in the history of our existence as a nation, and the tea baggers are hastening the end with their mindless efforts to effect changes to favor the rich (class struggle).  If there was something in there about an ignorant people who are unable to grasp the significance of 1% owning 40% of the wealth then I guess my work here is done.

Thu, 10/10/2013 - 08:41 | Link to Comment earnyermoney
earnyermoney's picture

LOL. teabaggers? the inequality between the classes has accelerated under Barry and the Democrats and will continue to do so under Ol Yellin and Hitlery.

Thu, 10/10/2013 - 09:55 | Link to Comment Lednbrass
Lednbrass's picture

Cheney and Bush? LOL

It goes much farther back than that, but I suppose when your worldview was formed by Nickelodeon and your knowledge of history only extends back to your own childhood that's about all you can grasp.  Go read a book or 500 child, you are embarrasing yourself but are too stupid to know it.

Fri, 10/11/2013 - 09:46 | Link to Comment Obese-Redneck
Obese-Redneck's picture

Help I've fallen and I can't remember,

Just to refresh:

1. The worst terror attack in history, and response.

2. A war of choice based completely on lies and revenge. ( 1 trillion plus, long term 6 trillion)

3. Another war of choice, wtf? (1 trillion plus)

4. The worst Depression in our history, in dollar terms. (wiped out 2 trillion)

How do you like them apples?  Obama is killing the country, waaah! Are you for real?

Thu, 10/10/2013 - 08:45 | Link to Comment dizzyfingers
dizzyfingers's picture

AlaricBalth  "Look at Rome. The mighty mistress of the ancient world. Whose conquests burst the the boudaries of Europe, laid Carthage waste, and made from Britain to Egypt tributary to her power! Enervated by success, patriotism became but a name. Corruption stalked along her streets, and centered on her capital. The Republic withered, civil wars ensued, rival chiefs sought for sovereign sway, her seven centuries of glory began to wane, her power to depart, and now the owl doth build her nest where Cato counseled and Cicero declaimed! Shall this be the fate of our dear country?"

And during Rome's decline two prominent coping strategies were debasing the money to buy bread and circuses to satisfy the rabble, and  sports (gladiators) to show its pseudo might.

Sound familiar? Too bad they didn't have satellite TV and cell phones!

Thu, 10/10/2013 - 17:33 | Link to Comment halfawake
halfawake's picture

seven centuries!!!

Fri, 10/11/2013 - 09:24 | Link to Comment Obese-Redneck
Obese-Redneck's picture

At the speed of the ox cart 7 centuries,

At the speed of airplanes or internet 7 decades.

And it's gone folks!

Wed, 10/09/2013 - 22:32 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

The dollar is still king, and if we really try, the dollar will remain king,

because every other country that could challenge the dollar is having 

problems with debt too. Problem is that the jokers in D.C. are not 

trying. They are on a path to destroy the $.  Assholes!!!!!

Wed, 10/09/2013 - 22:39 | Link to Comment Ham-bone
Ham-bone's picture

uhhhmm, no.  Try hard???  Like reform our economy to run a balance of trade, balanced budget, moral leaders, and engaged citizens...uhhhmmm, no.  Think we'd rather jus print money and pretend we're rich.

Thu, 10/10/2013 - 00:07 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

You don't understand:

 

"We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros."

Paul doesn't understand entirely either, but he's closer than most.

An oil producing country has no use for gold.  Gold doesn't have any value outside one's head.  A barrel of oil has 5.6 million BTUs in it whether one believes in it or not.  That's real.  It would be foolish of an oil producer to trade 5.6 million BTUs for shiny metal or paper.

And so the demand won't be for gold.  It will be for aircraft carriers.  And fighter aircraft.  But mind you, not manufactured and then delivered.  No, they will want those already manufactured and in the US Navy.  They will disarm the US by withholding the go juice that brings food to city grocery store shelves.

And we'll pay it.  Or starve.

Thu, 10/10/2013 - 05:34 | Link to Comment Squid-puppets a...
Squid-puppets a-go-go's picture

except that the micro electronics industry is now valuing gold above all else for its unparallelled efficiency in electrical conductivity

gold has practical uses

Thu, 10/10/2013 - 10:09 | Link to Comment Conax
Conax's picture

umm, I've seen this idea posted around the nets, but silver is the best conductor.

Gold is a great shielding material against nuclear radiation and cosmic rays, it never corrodes and is useful in satellites because it doesn't develop those microscopic hairs that short out electronics. It is used to electroplate the pins and jacks in connectors for reliable long-term use. 

However, silver is the best conductor of electricity, the best reflector of light and has thousands of uses in the tech fields.  Which is why I had some, until the canoe fiasco on Lake Tahoe.

Thu, 10/10/2013 - 09:21 | Link to Comment Hedgetard55
Hedgetard55's picture

+55 for one of the most entertaining, if ridiculous, scenarios ever offered here at ZH.

 

Can you imagine the Saudis trying to man the Fleet? Or are they going to hire all US Navy personnel to fly the jets and run the ships?

 

Dude, they already HAVE everything you say the will want, and they are getting it for free!

Fri, 10/11/2013 - 09:37 | Link to Comment MiTasol
MiTasol's picture

Gonna be priceless when the Saudi puimps start to run dry and their lies about their reserves become obvious.

Fri, 10/11/2013 - 09:29 | Link to Comment Obese-Redneck
Obese-Redneck's picture

But, but, the US is now the worlds largest producer of oil, CNBFux told me so.

And why in hell would Saud want paper dollars when they can have cold hard gold at rock bottom prices, not Comex prices, but out the back door US Treasury prices.

Fri, 10/11/2013 - 09:39 | Link to Comment MiTasol
MiTasol's picture

If Saud doesn't accept the paper dollars he'll end up like Gadaffi with a bayonet up his arse.

Wed, 10/09/2013 - 22:49 | Link to Comment prains
prains's picture

You absolutely want to be internationalized before the US dollar loses its status

 

which is double speak for....you need to move

Thu, 10/10/2013 - 03:08 | Link to Comment SunRise
SunRise's picture

To Puerto Rico?

Wed, 10/09/2013 - 22:56 | Link to Comment grid-b-gone
grid-b-gone's picture

Over 30 years of truth and insight. Like some appirition that only the young, those hardened by futile wars, and patriotic idealists could see as valuable, he moved through resistance but could not displace the entrenched. 

Now we are left to watch that electoral failure play out. Reset sounds almost simple, rhythmic, expected, like pins being stood up again between frames.

We have a front row seat to history. This doesn't look like Jefferson's America (neither Thomas's nor George's). Own outright that which is real, and good luck.

Wed, 10/09/2013 - 23:15 | Link to Comment prains
prains's picture

The only thing you truly own is the bag of skin you carry and the electrified fat you use to move it, after that it's all a construct. The more it's constructed, the more it's built to fail. Why? because human beings can't build beyond themselves. We are in the end animals built to shit, fuck and eat. No matter what the story or the construct the ending will always be the same, we want to shit in luxury, fuck the best and eat the most. Until this story changes one parent at a time we're doomed to repeat it generation after generation. Our Fin de Siecle is fast approaching and a new story needs to be rebuilt. At this points it looks like the thugs will win again but it's not over yet.

Wed, 10/09/2013 - 23:41 | Link to Comment Anusocracy
Anusocracy's picture

"An organism is a collection of problem solving devices - adaptations - that were shaped by natural selection over evolutionary time to promote, in some specific way, the survival of the genes that directed their construction." Donald Symons

The problem is that our mental adaptations developed thousands or millions of years ago and are often maladaptive in our modern technological society.

Deferring to psychopathic rulers is one of those maladaptive traits.

Thu, 10/10/2013 - 09:30 | Link to Comment Hedgetard55
Hedgetard55's picture

Darwinism has to be the most inane, absurd theory ever in science. Listen to what this adherent says, that the "genes directed their construction", and yet Darwinist natural selection is supposed to be a mindless, randiom process, without direction, which is why Darwinists hate Intelligent Design Theory. How did the genes ever survive before they directed everything else to ensure the gene's survival? Crazy.

Thu, 10/10/2013 - 21:14 | Link to Comment Anusocracy
Anusocracy's picture

Genes are selected for.

They carry information that does something.

That information can promote the survival of the genes.

Such is life.

Thu, 10/10/2013 - 11:12 | Link to Comment Escapedgoat
Escapedgoat's picture

Part of the problem was solved by the Spartans that had 0% fat as for the other they faught well and fucked well, and also had no use for any other metals bar pure cold steel to kill with. They did rely on each other though. Even though  I also owned That "useless" gold and  still do (in my mouth), I am not a Spartan. But fiat paper dollar is uselles in many places, like in times of real upheaval and anything is tradable with value like Brandy and things like that.

Wed, 10/09/2013 - 22:19 | Link to Comment Top_Kill
Top_Kill's picture

I wish RP was my dad

Wed, 10/09/2013 - 22:30 | Link to Comment BlackChicken
BlackChicken's picture

I wish RP was our President, not little stompy feet.

Wed, 10/09/2013 - 22:51 | Link to Comment unununium
unununium's picture

+1 silver dime's worth of gasoline

Thu, 10/10/2013 - 00:30 | Link to Comment Geruda
Geruda's picture

Trying shitting in one hand and wishing in the other and see which one produces better results.

Thu, 10/10/2013 - 01:06 | Link to Comment BlackChicken
BlackChicken's picture

I yield to your intellectual superiority geruda.

Thu, 10/10/2013 - 09:25 | Link to Comment akak
akak's picture

For the Chinese Citizenism citizen, both are the better result.

Too bad that there's no third hand that you can use in helping to be making the doing of the sucking of the cock of the president who is Obama.

Wed, 10/09/2013 - 22:51 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

"I wish RP was my dad"

Zorba wishes his dad didn't sign him up to be cabin boy

on a Greek vasoline tanker when Zorba was 14 years old.

Thu, 10/10/2013 - 06:43 | Link to Comment greatbeard
greatbeard's picture

>> I wish RP was my dad

If I had a dad he'd look like Ron Paul.

 

 

Thu, 10/10/2013 - 08:39 | Link to Comment falak pema
falak pema's picture

If I had a golden retriever I would call him Ron and teach him to bark back Paul Revere. 

As for his looks I would make sure he had Ron's ears. 4040161

Wed, 10/09/2013 - 22:20 | Link to Comment seek
seek's picture

It's no accident the US is ramping oil production back up and is now the #1 supplier again.

In a couple years the only country that will accept USD for Oil is Texas, and I have my doubts about that being true for long.

Wed, 10/09/2013 - 22:39 | Link to Comment putaipan
putaipan's picture

ya know it's funny .... the end of fiat and all that, but i'd wager that after the collapse of the dollar, for a good decade or so, if i had a couple of breifcases full of pre gietner benjamins (not the digital kind or the new fangled ones) i'll still be able to get me some oil at a reasonable rate of exchange. i'm just sayin' that if you can get a nice pile of pre-gietner jacksons and bens out of the country you'd be in just as good a shape as some gold or silver.

Wed, 10/09/2013 - 23:04 | Link to Comment putaipan
putaipan's picture

one lil' reddie sez - you didn't get my point. you could also turn 'em into pesos or bhat or whatever and back into digie-dollars before you come back and double your money.

Wed, 10/09/2013 - 22:20 | Link to Comment max2205
max2205's picture

He needs to go into the woods with Mc Cainus...and ....you know

Wed, 10/09/2013 - 22:23 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Everything of significance in U.S. foreign policy since the 1970's has centered around the critical importance of the petro dollar.  A bunch of collateral damage even had to happen in New York City and DC in order to justify it.  Syria was supposed to be the next Risk move but that got fucked up.  Wonder what they're going to do now.

Wed, 10/09/2013 - 22:36 | Link to Comment centerline
centerline's picture

+1 again.  It's all about the petrodollar.  Imperialism isn't for spreading democracy.

Wed, 10/09/2013 - 22:59 | Link to Comment Harbanger
Harbanger's picture

Every foreign involvement of the U.S. since 1913 has been centered around the expansion of the Fed, fractional reserve banking and the march of progressivism. (Fixed it for you)

Wed, 10/09/2013 - 23:01 | Link to Comment Harbanger
Harbanger's picture

Respond to me, pretender bitch. Or I will ream you mercilessly.

Thu, 10/10/2013 - 00:37 | Link to Comment Harbanger
Harbanger's picture

Downvotes but No challenge to my argument is proof that progressives live by lies and deception.

Thu, 10/10/2013 - 02:29 | Link to Comment evokanivo
evokanivo's picture

You imbecile. They are the same thing. You can't print forever without being able to translate that into real goods, like oil.

Thu, 10/10/2013 - 02:54 | Link to Comment Harbanger
Harbanger's picture

Yes, evokanivo.  You are translated into a genius.

Wed, 10/09/2013 - 22:24 | Link to Comment Al Huxley
Al Huxley's picture

If you buy into what FOFOA (and his sources) analysis, the oil producing countries have ALWAYS demanded gold for their oil - just it's been done in a back-room deal to keep the wealth transfer under control.  Makes some sense, more sense than 'them stupid fuckin A-RABS done bin sellin' us all thur oil for bits a paper we can print up for free'.

Wed, 10/09/2013 - 22:31 | Link to Comment centerline
centerline's picture

Religious clusterfuck instability and musical puppet governments suggests otherwise I think.  MENA has always been "played" and only the smartest (Saudis per se) have managed to play back some.

Thu, 10/10/2013 - 00:31 | Link to Comment NidStyles
NidStyles's picture

Why would they need ot do back room deals when the bankers keep the gold price cheap for them?

Thu, 10/10/2013 - 10:12 | Link to Comment Non Passaran
Non Passaran's picture

Your argument is "valid" only because there is someone outside of the US who will accept those dollars from foreign oil exporters in return for gold (or for anything of value, for that matter).

Wed, 10/09/2013 - 22:29 | Link to Comment A Lunatic
A Lunatic's picture

Being Internationalized will not save your ass when this ship goes down. I recommend working toward being invisible instead........

Thu, 10/10/2013 - 09:32 | Link to Comment Drachma
Drachma's picture

It was my first thought also while reading the article, and then of course at the end we get the sales pitch: For only $99

You can find our specific guidance on how to do that here.

You see, it's just that easy.

Wed, 10/09/2013 - 22:36 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

There is a gold for oil strategy for the Saudis, devised by JLS of the Bank of England - John Laing Sangster, and implemented by the BIS.

Wed, 10/09/2013 - 22:37 | Link to Comment Geruda
Geruda's picture

Any fool who wishes to return to the gold standard is coo-coo bananas.   Apart from the fact there isn't enough physcial gold to underwrite the volume of commerce that goes on in the world unless the value assigned to the relatively pitiful amount that exists would make all holders of physical gold the equivalent of scrooge McDuck, the stark reality is that the laws would become such that to possess gold would be more dangerous than possessing and posting child pornography on your own website.  

 

Do all the people who fantasize about such happy horseshit forget that the last time we were on a gold standard it was illegal to own it?    

Wed, 10/09/2013 - 22:52 | Link to Comment Herkimer Jerkimer
Herkimer Jerkimer's picture

'

'

'

'

Let gold go to 30-50K!

 

And let them come and try to pry it from my cold, dead hands!

 

Get yer guns!

@J@
V—V

Wed, 10/09/2013 - 23:01 | Link to Comment Geruda
Geruda's picture

Your hands WILL be dead and cold before the gold does you any good.  Surely you understand that if transacting in gold becomes illegal it is worthless to you?   You might as well start pretending today it's worth anything you want it to be worth.  It'll be worth nothing except for whatever pleasure it gives you to rub your own gack on it in the secret confines of wherever you and Miss October have your dates together.

Wed, 10/09/2013 - 23:30 | Link to Comment optimator
optimator's picture

It was also illegal when Rosenfelt made it so in the 30's.  A Friend of mine's father had gold, illegally, from the thirties valued at $35 an oz.  He wouldn't even sell when it became legal again.   It was just a large part of the wealth he left his son when he passed on.  Obviously his son is now very rich and hopefully will leave some behind when his turn comes to check out.

And you?  Well, if you're in cash you offspring will simply need a wood stove to survive.

Wed, 10/09/2013 - 23:45 | Link to Comment Geruda
Geruda's picture

Boy!  You touch on several interesting points.

But first, I am often annoyed when people misuse the word "obvious".  It isn't obvious at all what you assert.  You said nothing about the quantity of gold the kid's father left him.  "Whoopee.  "Dad left me ten gold coins!!!!"   They are now worth 40 times what he paid for them.  i can buy me that new used honda I been hankerin' for."

 

I'm in cash, I'm in real estate (rentals), I'm in stock, I'm in TIPS, I heat my house with a woodstove 24/7.  It meets EPA air standards using the type of woodstove technology that utilizes a secondary burn chamber rather than catalytic converter.  I don't do it to save or burn money i do it because wood heat is so much nicer than gas.

OK, enough idle chit chat about me.  Where did you get your education?  Who the fuck is Rosenfelt?

Yeah, that is a big problem with owning gold.  When the hell do you ever sell it.  When it goes up you don't want to because of greed, when it goes down you don't want to for practically the same reason.  It's an awkward conundrum.  Fear and Greed.  Fear makes you/us buy it, greed makes us never sell it.   

Thu, 10/10/2013 - 00:01 | Link to Comment optimator
optimator's picture

You know who Rosefelt is, he was our only 4 term Pres.  Now, seriously, careful of that wood stove.  My Dad heated with it for years and when my Mom died, pancreatic cancer,  her doctor asked how long she had smoked!  Mom never smoked in her life.  Rental property is OK, I've been out of that for a few decades.  Phone calls because a bulb in the hallway burned our.  No heat cause they have too many windows open for fresh air.  I've got 250 acres of woodland, have it forested every ten years.  Ten years ago it brought in 50K and its due again now.  Requires no effort from me and the taxes are low.  Put my mutual fund in Amex INPMX gold fund very early and traded it up till they dropped the fund two years ago.  Was in BEMA gold (BGO) until they were bought out and did well with that. 

Check your doctor on your wood stove.  There are stoves you can buy that will burn coal or oil with a simple half hour of labor and it make a nice central heating core if you have hot water heat.

Thu, 10/10/2013 - 00:40 | Link to Comment Geruda
Geruda's picture

Wood stove technology is vastly superior than in the olden days.   You never smell smoke in our house and I burn damn near 24/7 over 6 mos. a year.    Seems so odd to me that it wasn't until Kent stoves in the 80's discovered the efficiency of a secondary burn chamber.   All the years wood heat was the norm and apparently no one discovered such a simple thing.   Yep, rentals can be a pain if you are not scrupulously careful about selecting your renters. 

Thu, 10/10/2013 - 09:23 | Link to Comment Baal
Baal's picture

Legality has nothing to do with making something worthless.  Things that are illegal actually cost your more because of the risk involved in conducting an illegal transaction. 

Thu, 10/10/2013 - 09:58 | Link to Comment Non Passaran
Non Passaran's picture

As far as I can tell products that become illegal usually also become more expensive ... biatch

Wed, 10/09/2013 - 23:23 | Link to Comment optimator
optimator's picture

I'm sorry you didn't buy gold when it was $350 an oz, really.  10 or 20% gold would be quite enough to start putting a value on the paper it was backing.  Right now I don't think anything is backing paper. 

Wed, 10/09/2013 - 23:35 | Link to Comment Geruda
Geruda's picture

I'm sorry too.  I'll bet lots of people are sorry.   I'll bet lots of other people are sorry they didn't buy it at the price I DID buy it for.

Wed, 10/09/2013 - 23:44 | Link to Comment optimator
optimator's picture

Tell us real quick what and when and how your bought your gold.  And real quick I'll tell you what and when I did my gold and silver.

Wed, 10/09/2013 - 23:54 | Link to Comment Geruda
Geruda's picture

Let's see:  What - 1 oz gold coins - more than I can hold in my mouth   When - long before Obama was elected the first time  How - with cash

 

happy now?

Thu, 10/10/2013 - 07:57 | Link to Comment Gold Eyed Cat
Gold Eyed Cat's picture

Interesting fact, Geruda estimates the amount and magnitude of a thing by how it fits in his mouth.

Thu, 10/10/2013 - 09:29 | Link to Comment akak
akak's picture

Funny then how he still insists on sucking Obama's cock at every opportunity.

Wed, 10/09/2013 - 22:58 | Link to Comment sgorem
sgorem's picture

stock up on "lead" also. it'll definitely be part of the precious metal equation when this fucking ship goes down.

Wed, 10/09/2013 - 23:32 | Link to Comment Geruda
Geruda's picture

As you must know, thanks to the right wing freak out, getting your hands on lead, primers, and powder is almost a bigger challenge than acquiring gold.  If you aren't stocked up already then why reveal your lack of perspicacity.

Fri, 10/11/2013 - 09:49 | Link to Comment sgorem
sgorem's picture

i wouldn't be advising other ZH'ers to "stock" if i hadn't loaded up already. sorry, i must have mistaken your obtuseness for light sarcasm, d.s.

Wed, 10/09/2013 - 23:04 | Link to Comment Seasmoke
Seasmoke's picture

Saddam and Mohmar approve this message. 

Wed, 10/09/2013 - 23:12 | Link to Comment tarsubil
tarsubil's picture

I really think the price of oil in dollars is the most important indicator to Americans. Once that starts to blow, the end is nigh. I agree with Ron: the sooner, the better.

Wed, 10/09/2013 - 23:30 | Link to Comment Geruda
Geruda's picture

I hear tell the real reason we invaded Iraq was because Saddam was successfully abetting the movement to abandon the petro-dollar.  I hope you nice folks here didn't buy into the bullshit cheney and his monkey tried to sell you.

Thu, 10/10/2013 - 08:34 | Link to Comment earnyermoney
earnyermoney's picture

I hear tell the real reason we invaded Libya was MG wanting to establish a pan-African gold backed currency and a desire to be paid in something other than the worthless paper of the United States. I hope you did not fall for the "protecting civilians" BS the current Monkey tried tried to sell you.

 

Murdering brown people to force them to accept the plunder of their natural resources in exchange for worthless FRNs. Democrats and Republicans are 2 faces of the Fascist coin.

Wed, 10/09/2013 - 23:18 | Link to Comment zaphod
zaphod's picture

Edit: This was in reply to Geruda above

 

Um, this is one of the 6 properties of money which gold has:

"Easy to transport and identify"

Easy to transport means easy to move undetected because a relatively small physical amount stores a large amount of value (for example copper does not have this because you need a truck to move any real value)

Wed, 10/09/2013 - 23:26 | Link to Comment Geruda
Geruda's picture

I guess your idea of large amount isn't the same as people who know what "large amount" really is.  Try taking your large amount to a foreign country.  If you succeed it ain't such a large amount after all I reckon.

Thu, 10/10/2013 - 02:04 | Link to Comment zipit
zipit's picture

Which would you rather smuggle up your rear end, a million dollars worth of gold or a million dollars worth of Bitcoin?

Wed, 10/09/2013 - 23:20 | Link to Comment optimator
optimator's picture

Dr. Paul knows.  All his years in office while those around him played on inside information Dr. Paul was buying and holding every miner there was for the last three decades. 

Wed, 10/09/2013 - 23:50 | Link to Comment Constitutional ...
Constitutional Republic's picture

Hmmm. Now, let's see who wanted to trade their oil for gold and what happened to them: Iraq, Libya...

You get my drift. Now, let's see who wrecked those countries under the pretense of an Arab Spring which has become an Arab nightmare: Israel using the U.S. as a false flag, with the plot to conquer '7 countries in 5 years', much liked by the Trilateral Commission of batshit crazy zionists who care nothing for ordinary jews or anyone else, so long as they can pursue their sociopathic agenda of a technocracy ruling the world, led by their central banks,, employing indoctrinated academia and bureaucrats to do their bidding, the House slaves to keep the field slaves at bay.

That is their vision of a New World Order, one currency, one government; the new feudalism, the old fascism. One more Hill to climb: crush Congress, and the USD. Make sure the world has no hope, no change, and accepts its subservience to the old money masters based in Britain and Europe who own the un-Federal no-Reserve Board, a private company, contrary to what most people think.

President John Kennedy warned about 'secret societies' and 'forces' polluting the USA and vowed to expose them; he vowed to stop Israel from getting nuclear weapons; he wanted to make peace with the Russians (Kruschev agreed)  and Europe as a whole; mutual respect.

And we all know what happened to him.

Dr. Paul is a shining light. Information is power.

Wed, 10/09/2013 - 23:52 | Link to Comment butler401
butler401's picture

This is proof that ZH is lazy day at news,

 

This is a 2006 non-story, what is the point?

 

There isn't one,

 

Just to bash RP, is the only reason,

 

Just attract morons to get more ad clicks, ... truly the tyler's have lost their moribund compass.

 

Thu, 10/10/2013 - 00:24 | Link to Comment Constitutional ...
Constitutional Republic's picture

The butler is supposed to serve the drinks, not imbibe. Put down the glass, and re-read the article, listen to the videos.

You have two eyes, two ears and one mouth. Use in that proportion, butler.

Thu, 10/10/2013 - 05:59 | Link to Comment butler401
butler401's picture

Smedly Butler

 

Well I note that nobody here has the balls or the brains to tell us why the gods posted a 2006 story?

Thu, 10/10/2013 - 08:19 | Link to Comment falak pema
falak pema's picture

well I went even further back and posted one dated 1972. Old balls at that. 

As for the brains, I think the message, as in my post ; and as in RP's as  latter-day-prophet getting wake up call in 2006 ; is that the system was skewed as of 1971 and that the skew got to be become a true cork screw with repeated twists and turns of NWO type hubris resulting in ZIRP, GL-ST revoke etc. etc.etc. All potent with bubbly potential of magnitude megatonian level.

The only question in my mind is how did these stalwart sons, the "best and the brightest" of the greatest nation on earth, ever have the gall to look in the mirror and sing : mirror mirror on the wall whose the fairest of the WS fairies of them all?

You know which fairies I'm referring to; the Greenspans, Summertimers, Ruby Rubins, Burning Bushes, Monica's wet cigar loving types.

Now who can match that type of clever statesmanship on the Titanic?

Maybe we should ask the Gods. 

Thu, 10/10/2013 - 02:01 | Link to Comment q99x2
q99x2's picture

Redistribute globalist wealth and power. Democratize through Open Source Software Applications.

Thu, 10/10/2013 - 05:46 | Link to Comment falak pema
falak pema's picture

well this speech is just a repetition of what Jacques Rueff wrote in 1972; just after BW revoke.

Remember that france was prime mover in the 60s during the gold club crisis of London to demand gold refunds for its dollar surpluses (it even sent a naval destroyer in 1965 to collect the gold in NY harbour). And Rueff at that time fathered that Gaullist policy. He lost his influence in 1967 when the Americans cussed De Gaulle for thumbing his nose at them by kicking out Nato from France and making anti Vietnam war noises in Pnom Phen Cambod. Speech.

French monetary policy went more conventionally Friedman monetarist in 1967 and Giscard D'Estaing then financial minister later President bowed; along with Pompidou then prime minister; to US demands by changing french banking/monetary rules. They also scuttled french bank note printing in 1973 relying on Euro dollar borrowing in London; aka total subserviency to petrodollar hegemony, for french imports of oil and Japanese goods. France joined the money changers international brigade of London bigtime from then on.

Jacques Rueff seminal diatribe : the monetary sin of the west...very Ron Paul stuff but of 1972 vintage.

‎mises.org/books/monetarysin.pdf 

(I am not a fan of the Mises institute but history is history and bears no subjective sophistry).

Thu, 10/10/2013 - 06:04 | Link to Comment thestarl
thestarl's picture

We all know what happened to Saddam and Gaddaffi when they threatened to trade their oil in alternatives.

Thu, 10/10/2013 - 07:17 | Link to Comment El_Puerco
El_Puerco's picture

RON PAUL!...Hey!...Where are you?!...

 

(•?•)

Thu, 10/10/2013 - 08:47 | Link to Comment Its_the_economy...
Its_the_economy_stupid's picture

We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros.

 

That will be the day that their demand is met w high velocity lead projectiles.

Thu, 10/10/2013 - 08:56 | Link to Comment Sufiy
Sufiy's picture

Ron Paul is a pure delight and this speech is the Classics now. Gold and Rock against Machines:


Sci-Fi Movie Script: "Federal Reserve - Keeping The Strong US Dollar Policy From 1913 - Established To Serve and Protect" GS, JPM, BAK, C, HBC


Sci-Fi Movie Script.
In-House Working Title: "Keeping the Faith In the US Dollar"
Suggested Change: "Finding the Faith In the US Dollar"
General Story-Line: "Federal Reserve: We as Federal As Federal Express. But Better For Our Shareholders"   http://sufiy.blogspot.co.uk/2012/11/federal-reserve-keeping-strong-us.html#

Thu, 10/10/2013 - 09:25 | Link to Comment rosiescenario
rosiescenario's picture

You'll know this is about to happen when there is an inexplicable rise in all the PM mining stocks.

Thu, 10/10/2013 - 10:15 | Link to Comment resaci
resaci's picture

Another brick in the wall 

"The European Central Bank (ECB) announced this morning that they have signed a bilateral currency swap agreement with China "

 

From the Daily Pfennig

Thu, 10/10/2013 - 10:22 | Link to Comment kenezen
kenezen's picture

While I give great regard to Ron Paul, I believe the World bank has already signaled possible Currency changes. They came out over a year ago and announced two additional "Reserve Currencies". The Aussie Dollar and Canadian Dollar. This buttresses the argument that Lightly populated, high natural resource Countries are looked upon with favor. The next may well be Russia with the amazing discoveries in Yamal Nenets. There have been numerous moves between India China and Russia to trade between the countries in their own currencies. It is safe to proclaim some obvious cracks in the dollar's Reserve Currency conversation as payment. Currencies based on low debt and high natural resource production for export will probably be the future answer.

America does have one great resource other than banking. It is Agriculture which in terms of manufactured product is by far our greatest resource.    

Thu, 10/10/2013 - 10:43 | Link to Comment withglee
withglee's picture

It's evident from this article, Ron Paul's speeches and the comments that this world can not function with a properly managed Medium of Exchange (MOE). If it could, we would have had one years ago as it is trivial to provide it.

Such a properly managed MOE guarantees inflation is zero everywhere at all times. It guarantees that there is a perfect balance between supply and demand for money at all times everywhere. It guarantees a free supply of money to meet trader's needs at all times everywhere. It recognizes that money is "a promise to complete a trade".

Everything else (e.g. gold, silver, etc.), including circulating money itself, is just items of barter.

Money comes into being by a trader making a trading promise and having it certified. Money is extinguished when the trading promise is delivered. If the trading promise is broken, the orphaned certificates are recovered with interest collections. In the interem, money is exchanged because it is trusted. When properly managed, it never loses its value. Our money is no longer trusted. It has never been properly managed. It has inflated at the rate of about 4% per year for 100 years. Even the managers of our money think it should purposely be inflated at the rate of 2% per year. These people are truly clueless.

Todd Marshall
Plantersville, TX

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