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Ron Paul's New Monetary System "Get The Government Out Of The Way"
As part of Mike Maloney's recent documentary, Ron Paul was interviewed to discuss the monetary system that he proposes. He begins... "Just get the government out-of-the-way, you know, and let the markets decide and apply the rules of ’no counterfeiting’ to the people and to the government..." as he goes on to discuss everything from The Founding Fathers to how a gold standard could work...
Via Market Sanity,
The following is a bonus feature on the Hidden Secrets of Money episode 4. The video can only be watched by subscribing to Hidden Secrets of Money. However, a full transcript of the interview has been written by Market Sanity for your convenience:
Mike Maloney: If you could create a monetary system for the world, what would it be?
Ron Paul: Just get the government out-of-the-way, you know, and let the markets decide and apply the rules of ’no counterfeiting’ to the people and to the government.
MM: So you would make fraud and theft illegal for everybody, not just everybody except the financial sector?
RP: Ya. If you and I devised a gold standard and we issued certificates that were guaranteed in gold, then if we ever defrauded people we ought to go to jail for it. That would be the minimal role of government. But you know, today, the Constitution still says – even though they ignore it – that only gold and silver can be used as legal tender.
If the government wanted to issue a gold coin and make sure that it was an honest weight and measure, it still would be legal for the state to do that. But, I think because it’s a mandate on the states; the states should not use anything other than silver and gold. That interpretation should be rather broad too: that the states could do it. The prohibition against the states was that they couldn’t issue bills of credit. The Founders knew what paper money meant because the states were doing it like crazy. That’s one of the reasons why they had the Constitutional Convention was because of the monetary issue. So they [the states] aren’t allowed to print money. And that’s OK, that’s counterfeiting. At the same time, they could use gold and silver.
But I would allow the market to work, because I think we’re more sophisticated on money now through free market understanding. The Founders accepted the notion of a fixed ratio between gold and silver. Bimetallism is not a good economic theory because it’s too rigid. If there’s a discovery of silver, and the price of silver goes down, you know, you want that to be flexible.
But that doesn’t mean the free market wouldn’t use gold and silver. Just look today. It’s so much easier to adjust, you know, with our computers and all. If you walked into a store, I could just imagine. In many places, more likely in foreign countries, they’ll take dollar or their local currencies and have immediate conversion. But you can also have immediate conversion between gold and silver, or certificates in silver or a credit card in silver. You could pay it in silver. You can pay it in dollars or Euros today and it’s immediate.
I would let the market decide it. It could be that they want to use a basket of commodities. I’m still old-fashioned enough that if I’m thinking in terms of a unit of an account, and I have a bunch of them on paper or on a credit card…if I want to put them in a handful of silver or a handful of gold, I like that idea. That for me is the ultimate test, but it doesn’t mean another system wouldn’t work if you followed these basic rules.
It would not be flawless because people have the tendency to break the rules, but happens when a government has the worldwide fiat currency and breaks the rules for 40 years? That is such gross distortion, and that’s why the imbalances are so great right now of the debt and the debt system and all the malinvestment. They did not prevent the correction, they just propped it up in 09′. So the correction didn’t occur, and if you want the system to continue you really have to allow the correction to happen. That, of course, is why we haven’t had a recovery.
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Ron,
Tell the people they need to revolt. Everything is else is bullSHIT.
Step 1: Get rid of government. Step 2:? Step 3: Profit.
Yep, no holes in this plot!
Are you part of operation D.I.L.D.O.
How so?
To get the government out of the way you have to push aside 50+ million people. Good luck, though I agree.
Turn off the free shit and they'll do most of the work for you.
I wonder if RP will be around to see the reset. or if he will pass away with the dow at 30k and the 10yr under 1% with 30 trillion on the debt clock.
yes if you buck too hard, it's a Carlinphoma for yu
I'll take the under on that.
Fuck you Ron Paul and your little charlatan son Rand.
As if letting the bankers and the Captains of Global Industry take over is any better than the government.
Either way......we are all serfs now.
RP does fail to mention the beheadings that would need to take place...
"Fuck you Ron Paul and your little charlatan son Rand."
I disagree with RP on letting the bankers and the Captains of Global Industry take over, too. But I'd still rather have that debate in a free society which would exist if more people believe as he does that government needs to have a much smaller role. The Founders disagreed on some of these issues as well, and he is much more aligned with their thinking than any of the globalist fascists running the country. So I downed you for the fuck you RP. He is a man of principles unlike the rest of the fucks. If I could, I would up you for the FU Rand Paul. He's just a wolf in libertarian clothing. But I'll add that Rand got big points from me today for saying he wants to audit the Fed.
Not to be argumentative, but, I thought Ron Paul established in 2009 and got passed in the House in 2011/12 the Federal Reserve Transparency Act (HR 1207). It was at the time, as I recall, played by the media as the government's parting gift to RP when he left Congress to run for President. It was also near this time when gold was $1900/oz, which provided pretty strong justification for pressing Congress to take seriously some sort of reckoning and auditing of the FED. But, I think it never reached the Senate - hence Rand is using this debt/deficit impasse as a means for seeing HR 1207 through.
The bankers and the "Captains of Global Industry" have already taken over. What the hell planet do you live on that you don't know that? Getting rid of the government, or the 99.999% of it that is useless/criminal/etc just means taking the government guns out of the hands of the bankers and "Captains of Global Industry".
We need to have a separation between money and state, just as we recognize (well, most of us outside of Islamic fundamentalists and some in the Bible Belt anyway) the wisdom of the separation of church and state.
Separation of Church and state is an excellent way to separate citizens from God. Separation of money and state is an excellent way to separate citizens from wealth...
Money was seperated from the state in 1913.
#41
The original concept of separation of church and state is without a doubt one of the most misunderstood liberties espoused by the original pilgrims coming to this continent and of the founding fathers of America.
There is a HUGE difference between having a "State Church" (e.g. Romanist, Lutheran, Anglican, etc.) and full religious liberty in all areas of society.
Are you saying you need government to legitimize and confirm your faith? You need a right to freely practice your faith but wait a minute, you already have that. No, what you want is a government to enforce your version of faith. Are you a Muslim or Christian?
Has anyone visualized how it all ends, the "reset" ? Will we be looking at 50 trillion of debt while the fed and it's private share holders have purchased everything under the sun with counterfeit money? Do they protect all the assets they then own with mercenaries/drones/privatized police forces? If the fed defaults...does that mean the debt goes *poof*? I imagine they will get to keep all the assets they purchased with the fake money and I'm thinking as the sheeples start waking up and begin to threaten the power of the fed and their private owners lurking in the shadows...that the fed will have to re-double their purchases and accelerate their plans to own everything under the sun before the sheeples can stop them.
The Fed has a bottomless checkbook so it can't default. They could become technically insolvent (assets < liabilities), but so what? Their liabilities (bank reserves) can't be redeemed at the Fed for anything tangible. Furthermore they would just reduce interest rebates to the U.S. Treasury until they were solvent again.
Can the Fed Become Insolvent?
What's the quote? Allow me to control the nations money and I care not who makes its laws. Something like that anyways...
Mayer Amschel Rothschild
If the govt is defunded, rule of law re-established, and all the bullshit laws are repealed (thats basically all laws) - there would be no mega corporations (especially if you remove their current status as persons), they are inefficient and would not compete effectively with small flexible businesses.
All of our current problems in the west are derived from two sources, counterfiet money and the expansion of govt size and power that it enables. The expanded powers of govts are then bought up by those who control the money, and they use that power to destroy small business and centralize economic power into multi national corporations.
People like to blame capitalism for the problems, but the source of the western worlds problems is failure of the rule of law, failure to prosecute central banks for counterfieting for a start.
A new monetary system is a worthwhile goal, but step 1 could be the elimination of all taxes on gold and silver gains. As it is now, if you purchase gold or silver to preserve purchasing power, you would end up behind even if gold keeps up with inflation. Example, assuming the price level doubles, and there's a 30% combined federal and state tax on the "profits":
$1 -> $2 (gold doubling in price) - > $1.70 (paying taxes on "gain") -> $0.85 (adjusting for inflation)
So you'd take a 15% purchasing power hit in this example. A small downside would be that you wouldn't be able to deduct losses, but over long time periods gold has gone up (from $35 -> $1,300, or 37 times), over the last 45 years.
It seems like practically every person who admits to having ever purchased gold and/or silver has also been a notoriously bad canoeist. Taxes will probably not be a major issue with them.
I can prove government is incompittent with just one example.
Men are required to buy maternity benefits under Obama care.
There you have it, Men Can Not get Pregnant but they are required to buy insurance, JUST IN CASE THEY (MEN) get pregnant.
https://www.youtube.com/watch?v=YkRe_K-EjHU
Incompetent.
Same here.old people have a component in health insurance for pregnancy.
Even if you 90 years of age.
Scam scam scam
The insurance/pension/investment community are there to fuck you from every direction(if you engage).
"MM: So you would make fraud and theft illegal for everybody, not just everybody except the financial sector ? "
Yes, and that 's what a lot of people, very often, tried to do, in the past ; apparently with very limited success .
RP: "It would not be flawless because people have the tendency to break the rules, ..."
Oh ! so you noticed that too . You are not so naive after all .
Now, a good question could be : " why do the people (and that includes us, not only the bankers and the politicians) have the tendency to break the rules ? "
Maybe it's time to read about mirror neurons (it appears that each one of us is fully equipped with that kind of hardware) , reread the tenth commandment, and think about the implications of that kind of information .
And after all has been said, isn't it time to realize that whatever "clever", "good", "fair" system you devise, it is, more or less rapidly, destined to fail ? And this, not only because of some other people's fault .
biggest piece of mumbo jumbo; trying to pretend a market power play "free of oligarchy dominant position (big business) interventionsim" can exist without a controlling political body, elected by people, which defines and executes general good. No way around that conundrum.
This type of reasoning is a true invitation for elitist neofeudalism ad vitam aeternem...useful idiots are the milk that Oligarchy predators, the 1%, love to drink.
In order to have markets even working on non strategic economic plays you need unbaised referees like in sport.
On strategic economic plays like major money printing that condition the future of the nation, all decisions are made according to a grid which does NOT just base itself on short term market impulses and knee jerks. NEVER has, just look at the current NSA spiel ....not saying a mixture of private and government is bad; just saying the government of the people should NEVER be totally bypassed.
Ron PAul should remember as that 12 year old girl from Canada pointed out : THe FED is privately owned by those who LIVE OFF that great free market invention : fractional reserve banking and compound interest rates! Holy cow, privately owned!
Pure private enterprise concoction Mr RON PAUL ! WHat we need is a true Government central bank, as that girl said!
So why insult history by pretending the contrary?
The problem today is not so much free markets as representative, transparent and accountable government!
Put the horse before the cart.
" In order to have markets even working on non strategic economic plays you need unbiased referees like in sport. "
Interesting to note that you chose the example of sport . Haven't you heard a lot of stories about biased ( I mean corrupt ) referees ?
Where will you find those unbiased people ? And how much time will they stay unbiased ?
If I follow your line of reasoning the human race is doomed...we should all go back to living in caves.
I don't think that is going to happen; we will continue to have pseudo kings who will manipulate and butt bash those who get in their way. So lets stick to sports...as I don't like looking at dead cats bouncing.
Ok, professional sports is mega bucks so referees do get bought. So maybe those of us who like competitive sport should stick to amateur sport, where referees make human errors of judgement but are not corrupt.
Never was a world of perfect humanoids, unless they replace referees by "expert systems" that NOBODY doctors (some dream to think a NSA type shill won't reprog the algo to win side bets!). I'm human, when I morph into humanoid I'll let you know.
" Never was a world of perfect humanoids, ... "
And you can bet on the fact that everyone has its own perception of what "perfect" means .
The constitution grants the Congress the right to coin money and to regulate its value. Doesn't mean it has to be gold or silver. History clearly shows rich and powerful successfully consolidate these precious metals into very few hands as will. A non-interest bearing currency like Lincoln's Greenback worked. Ron Paul advocating a return to feudalism, and why not? we are already serfs.
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We can all relax, China is laready buiding new monbetary system
Gold COMEX Claims Per Deliverable Ounce Rises Above 55 at These Prices
Jesse reports about the ongoing Game of Musical Chairs in the Western Fractional Reserve Gold System with manipulated LBMA and COMEX Gold markets. With China taking now all physical delivery from the system the entire Western Gold market is under enormous pressure. We found it very positive that with more unleashed attacks on Gold - in order to redeem physical Gold from GLD ETF holdings - it is more and more difficult for Gold market manipulators to keep it under $1300. Physical demand is pushing the price right back up. Goldman Sachs clients are not doing very well if they Sold their gold below $1300 following the House Gold Sell Call. This week we had a very impressive breakout in Gold, Silver and Gold & Silver mining stocks. http://sufiy.blogspot.co.uk/2013/10/comex-claims-per-deliverable-ounce.html#
Peter Schiff On Gold Catalyst: Janet Yellen Exposed Part 2 - The Truth Behind the Myth
Market is already reacting to Janet Yellen's appointment to the FED chair - US Dollar is solidly below crucial 80.00 level and Gold and Silver are in breakout stage this week.http://sufiy.blogspot.co.uk/2013/10/peter-schiff-on-gold-catalyst-janet_26.html#
Wouldn't the banks still use the fractional reserve banking system with silver and gold?
That is a very good question, without as far as I know as good answer.
Well paper gold certificates are claims on real gold, just like what (virtual) bank reserves are to cash. What should be done is commercial banks be banned from charging interest on freshly created principal loans, because that is fraud and it ensures the world is always in a perpetual state of odious indebtedness. How can you charge interest on money that you conjured into existance at a flick of a pen? If money-creating banks could only create the principal and not demand interest for their magic, the system would be much less indebted. Thats the reform we have to pass. People should read up on this little publication that explains the whole money creation process to better understand how money works and is created in the economy:
http://www.rayservers.com/images/ModernMoneyMechanics.pdf
What you say is Ellen Brown's misguided myth (Web of Debt). In a properly managed Medium of Exchange, INTEREST is used to recover DEFAULTed currency. The governing relation is INFLATION = DEFAULT - INTEREST. The proper (and only knowable) value for INFLATION is zero. Thus, you just measure DEFAULTs and collect an equal amount of INTEREST.
Ya. If you and I devised a gold standard and we issued certificates that were guaranteed in gold, then if we ever defrauded people we ought to go to jail for it. That would be the minimal role of government. But you know, today, the Constitution still says – even though they ignore it – that only gold and silver can be used as legal tender.
Would someone please ask Ron Paul how he expects this to work when there is only one ounce of gold per person on earth (about $1300 currently ... petty cash) and only 1/5th that amount of value in silver. And don't forget, it now costs miners a little less than one ounce of gold to create a new ounce of gold, so saying it is worth something different can't work!
He may be a nice guy, and he has correctly identified the Fed as "the" problem, but he is clueless about what money is.
Money is "a promise to complete a trade". It is used to extend a trading promise and delivery over time and space. It is created by traders making trading promises. When properly managed, INFLATION is guaranteed to be zero; money supply is guaranteed to equal demand; and money is in free supply to all traders wishing to make trading promises.
Gold and silver are just stuff ... objects of simple barter.
Todd Marshall
Plantersville, TX
Goldmoney.com is a pretty good answer to the questions of how a gold standard would be implemented. It is a pay-pal like virtual payment system built on top of 100% gold bullion. Payments are in gold grams, not some abstract fiat concept, like dollars or euros.
The IMF should adopt Goldmoney.com, not some further abstract fiat concept like SDR's, which are nothing but the average price of a basket of fiat currencies (which means SDRs are fiat).
Goldmoney.com solves the problem of fiat money printing, so why not take a closer look?
If everyone used goldmoney.com as you say, the gold in the world would quickly be exhausted. There is only 1oz of gold per person on earth and that is valued currently at less than $1,400. Further, it takes just a little less than an ounce of gold (exchanged for labor, machinery, land, etc.) to bring a new ounce of gold into existence. It's not rocket science to know that gold cannot be used as a Medium of Exchange. There is not enough of it and there never will be.
You need to understand what money is. Money is "a promise to complete a trade". Digging up metal and bartering it around does not meet that definition.
Todd Marshall
Plantersville, TX
Todd, your argument is historically ignorant and without merit, as for the last 500 years, at least, there has NEVER been more than roughly one ounce of gold per person in the world --- and yet gold served as money just fine for most of that period, and for most of history.
I do not claim to know right off the bat where the flaw in your theory lies, but it certainly is not in the specious claim that "there is not enough gold".