Nina Smith

Ron Paul and Money

Filed By Nina Smith | November 23, 2007 9:15 AM | comments

Filed in: Living
Tags: Federal Reserve, money, personal finances, Queercents, Ron Paul

We’ve learned before at The Bilerico Project, that some like him and some don’t – regardless of your stance, Ron Paul has interesting views on monetary policy.

Bill Long at Queercents gives the topic some coverage. He writes:

The Federal Reserve has been getting a lot of attention in the last few months. With the recent housing meltdown and market volatility, it’s hard to miss the articles in the financial press. Some have blamed the Fed for causing the housing bubble, and others have argued that the Fed should take action to provide some relief. Meanwhile, one of the 2008 presidential candidates, Dr. Ron Paul, has long argued for abolishing the Federal Reserve and returning to a gold standard of the kind used around the turn of the century (as opposed to the Bretton Woods system which was in place from 1946-1971). Would that really restore financial stability to the economy? Volumes have been written on this subject, but I will try to at least summarize my own views without reciting every monetary theory in existence.

Continue reading here.

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Thanks Nina this was a good read.
without going too deep into things The Fed's approval of sub prime loans for a time and then tightening up the available money to back those lones could be seen as a weapon to cause failure of lending institutions and subsequently the consolidation of wealth among a few of the higher tire institutions.

Be that as it may....
Dr Paul's policy regarding the Fed is only one part of a larger plan to strengthen the US by providing a stable source of monies and with the adoption of Fair Trade (not free trade) would bring manufacturing back to this country and make it a stronger nation by providing a balance between domestic goods and foreign goods which tariffs would be applied against.

The problem will be weening the American public off Wall*Mart and Chinese made crap.

Take care
Susan Robins

Well I hate to bust your bubble but we are not a manufacturing contry any more I know I have seen my company I work for go from 3 plants to just a warehouse operation.Lots of other companies have gone this route an sorry Ron Pau's ideas on this just would never work were a country based on trade and imports. The gold standard died when FDR killed it no it wont come back so forget that kill the IRS? right wont ever happen.No matter how happy youd like to see evey town with several plants that takes time and money and oh yeah all thos high paying union jobs well guess what thats what killed most of our manufacturing here in the US its easier and cheaper to make it elsewhere.

Susan: I'm glad you found it to be a thought-provoking read. I did too.

When funding for residential mortgage-backed securities decreased, the tightening of credit availability hurt the US economy and has made home ownership more difficult. I'm not sure the intent was "consolidation of wealth" amongst the top tier lending institutions as you suggest... but in this age of Haliburton, it wouldn't surprise me either.

Cathy: I agree with you... nothing is going to make those jobs come home again. Of course, this isn't stopping "Cliff" from Cheers from trying to promote Made in USA.

Only 3 comments on a Ron Paul post? How did that happen? Boy, when I said blog readership went down for the Turkey Day holiday, I meant it. Not even the Ron Paul trolls came out of the woodwork! LOL

Sorry Cathy but I hate to burst your bubble.
If we don’t make something and export it
(war excluded) we will slide back into third world status.
That is the facts of economic life…

Gee bill I don’t know how such few comments came about.
Maybe Dr Paul is making too much sense…..

Take care
Susan Robins

Sue you obviously have not worked in the manufaturing sector of industry or you would have known that it can be made cheaper overseas no matter the location China or the DR ie Dominican Republic.The high cost of labor has killed us we killed the golden goose that laid the golden eggs ie US labor.Also Sue The President cna not create jobs or force people to make things here nor can the rest of the government.Only business creates jobs all government can do is get is offer incentives and watch them be declared illegal by the WTO which is why my compnay moved all the rest of our jobs when the WTO said tax breaks to manufactuer part of what you make overseas and as long as it was made with US parts cost lots of my coworkers there jobs.So does that suck yes it does but sorry Sue all a President cna do on th eeconomy is take th eheat when its bad and get none of th ecredit when its good.

i worked in manufacturing for close to ten years.
I worked for Loral Corp as an electronics technician, i built, tuned and tested much of what kept you and I safe throughout the 80's and 90's.
before going to work for a Motorola service station here in SanDIego.

i would also say Cathy that what you may not understand is a country that cannot produce a product will end with worthless currency in time and that time is just around the corner for the US.
The money that flows out of a country must flow back in in some way or nobody will support the currency on the world market.

This is an oversimplification of what really goes on but this is why the price of Gas in the US has gone up 15% every year since 2003 here in the US and not in Europe.

We don't sell anything the rest of the world wants. Too many dollars and not enough US Goods for other countries to spend those dollars on.

Take Care

Sue nice work dancing around what I said but nice to see you have worked in the manufacturing industry but because of that you should have learned that government does not make jobs.Btw I was working for the DOD during the 80's and early 90's as a civilian tech rep. But you have to understand this it takes time and lots of money and a reason to get factorys going again here.Plants are shutdown and equipment sold off and if one place becomes to high they move on to another always some fool willing to work for less but to them the less appears high.Im in the clothing manufacting side of the fashion industry and trust me the dollars go to where the goods get swen the cheapest and that aint US union wage.Right now we make and export high end big ticket items no they aint clothes etc but big ticket items like computers electornics etc which right now are dirt cheap due to the lousy exchange rates. But no President can wave a magic wand and fix the economy if there name is Ron Paul or Bill Clinton.Thats just one piece of magic even me a a witch cant pull off so how do you expect some politician to do it? But we sure can and do blame them when things go bad on them. You ever buy gas in Europe Sue its not cheap trust me. We have it easy compared to them.When I was in Germany a couple years a go visiting it was expensive and this was buyng it on the base my neaphew was stationed at!

a good way to get factories going again is to adopt Fair Trade not Free Trade levy tariffs against all that Chinese made garbage people (not me) buy at Wall Mart. we can also close the borders to illegal aliens who are taking jobs that US Citizens are willing to do.

Se don't export enough big ticket items to reabsorb the trillion or so balance of payments in favor of everyone else not the United States.

I am aware of what a president can and cannot do.
Like Bill Clinton signing NAFTA which does not allow for fair trade. The president can block the leasing of ports like Long Beach Harbor to the Chinese. Clearly int in our national interest but was allowed by a president who had big business in his pants.

the most important thing a president can do is get us the hell out of the middle east and stop spending some 400 million dollars a day on a war that shouldn't have been started in the first place. (there were no weapons of mass destruction in Iraq) Have you ever wondered why Bush ordered the M3 money supply figures to be classified?
Well i will tell you because that useless eater in the white house has expanded the money supply so much that monetary inflation is running at about 15% per year. Oh and the Other Clinton (Hill-Dog) wants to keep the war going so don't look for an end to the war from her or any other Democrat for that matter.

fixing the economy is going to take most of the 45 or so years it took to get thas bad. we have to start now of we won't have a country or a middle class.

What do you suggest we do?
I have had three semesters of collage level economics and what administrations have been doing since 1964 has brought us to this place. President Kennedy in June of 1963 ordered the treasury to print notes backed by the national silver supply and proposed abolishing the FED. Those silver certificates did get printed, it's a shame LBJ didn't continue the replacement of silver certificates with FED notes.

The article did point out how the business cycles effected poor managed and largely unregulated banking industry. What Nina didn't mention was that compared to post 1913 United states prior to that their was almost no inflation.

Take care
Susan Robins

There is something tragic about working people who embrace their own pauperization and hopelessness. Cathy’s version of economics is a feeble rehash of Reaganite/Thatcherite voodoo economics. It’s true that huge inequalities of wealth and power have always been a defining characteristic of the American social landscape, but recently they’ve metastasized, growing ominously large.

There are 432 billionaires in the United States who are part of the .001 % of the population that boast unassailable wealth and power. The utter obscenity of that equation, and the use of swindles like NAFTA have devastated the standard of living in the US. The emergence of this vast inequality was accelerated by a bipartisan tidal wave of deregulation. It’s estimated that as many as two million homeowners face foreclosure in the coming months. When two income families, overtime, second jobs and skipped vacations can’t cut it, out comes the plastic. Consumer credit has morphed from a balloon to the dirigible Hindenburg on steroids. Watch for a hot landing soon.

The American economy has been shedding jobs at an accelerating rate. GM, Ford and Chrysler exported jobs to lower paid workers in Mexico (but didn’t cut prices). Now they’re in the process of exporting them to China where the Stalinists guarantee them even more profit.

It's not surprising that Several EU countries including France, England and Germany have a much better standard of living and better quality of life and insure that insuring that well paying jobs are plentiful. But other indicators are shocking. According to the CIA fact book the US has a worse infant mortality rate than 42 other nations including Cuba, Taiwan, Greece, Slovenia and Macau and Singapore. Our rank in terms of average buying power is 10th ranked behind Luxembourg , Bermuda, Equatorial Guinea, the United Arab Emirates, Norway, and Ireland.

The U.S. share of world manufacturing production is now 25%, collapsed down from 60% in 1950. About 45 million Americans have no health insurance. That includes 1.8 million veterans who work at low wages and don’t qualify for VA coverage. However difficult things are getting for the “working poor”, whose standard of living is in free fall, the ultimate price is paid by those who’ve been shoved into poverty. The Census Bureau notes that in 2006, 36.5 million people or 12.3 % lived in poverty, primarily non Euro-Americans. According to Second Harvest an additional 16.8 million people, or 7.7 % can be counted as working-poor.
We’re living on the edge. Obscene income disparities, the loss of good paying jobs with good benefits, an elevated persistent level of poverty and a looming credit crisis are flash points that could create a general economic crisis at any time. Savings actually went negative last year, the first time since the depths of the Great Depression in 1933.

For the last 30 years, under Democrats and Republicans the rich have gotten a cornucopia of tax breaks. 42% of all taxpayers, about 59 million people will average annual savings or $1,294.00 from these tax cuts, which are immediately wiped out by inflation. The richest 432 odd individuals mentioned earlier save about $8,300,000.00 a year.

The loss of jobs, insurance and the onset of poverty are directly coupled to the economic vampirism of the rich. The ‘malign neglect’ policies introduced by Reagan and strengthened by the Clintons and the Bush’s illustrate the price paid for living under governments run by, for and of the wealthy. The nightmare in New Orleans was an unnatural disaster rooted in harsh poverty; a broken health care system, unchecked criminality by police and others, a rotting infrastructure, social collapse, and abandonment by a boorish, heartless regime. It’s a chilling forecast of our future.

(You can keep track of most of these developments at the sites of the US Bureaus of the Census, Labor Statistics, Economic Analysis, the CIA and various other agencies. Or, if you lazy like me just go to AlterNet and browse.
Today’s top story at AlterNet reveals that about 120 returning oil war vets commit suicide each week. That another reason to impeach Bush, but the pigheaded Democrats say no.)

Hi Bill

Call it what you want but thats the real world like it or not see your business you work in go from 3 to 0 plants.It doesnt take much to figure it out. Oh yeah I do keep up with the news with other scources both US and European. But back to topic Ron Paul will never get my vote the guy is just plain to shady for my tastes and im a Republican most of the time though I have voted all over the map Libertaian Democrate and independents.

Speaking of voting that time is almost here again so make sure you can vote in the primary you want to so check that out now.


Well Put Bill
Most people cannot see their own destruction at the hands of those who want to wipe out the middle class in this country.

Dr Paul may not be able to stop this train wreck but he can slow it down with some of the tools he will have at his disposal as President.

Take care
Susan Robins