Dr. Ron Paul on Debt and Default
The Federal Reserve began 100 years ago with one mandate: protect the currency of the United States of America.
So, how has it done?
Since then, the value of the dollar has plummeted 98%.
I can remember doing service work for my dad’s business in the mid-80’s, AFTER then Fed Chairman Paul Volcker reigned in inflation. The service we performed for $15 back then goes for $80 now.
Gasoline was 55 cents per gallon. We’ve now seen $4 gas at times and pray for $2 gas.
It’s no wonder to me how young people raised in the Government school system don’t get this, but “highly esteemed” members of Congress? Dr. Paul lectures eloquently and receives mostly yawns. He draws huge crowds wherever he speaks… OUTSIDE of the beltway.
As they say, Washington DC is 20 square miles surrounded by reality (not including the non-politicians…).
Devaluation Dates Back To Rome
Politicians devaluing the currency to have more currency to spend to buy votes dates all the way back to ancient Rome, at least.
Back then they knew what real money was – Gold & Silver.
And that is what they used for currency.
Until someone got the bright idea to start substituting junk metal… just a little at first; then more, and more…
Finally the currency was as worthless as the metal it contained. Today we would say “as worthless as the paper it’s printed on”.
Fluctuations in foreign currency markets can temporarily mask the “default” that occurs as your currency is debased. The real issue is how much purchasing power do you have compared to what you used to have. When Walmart switches from USA made products to Made in China products then the visible effects can be muted – for a while.
The Problem With Debt
It seems most everyone sees a problem of some kind or another with debt. Congress thinks more debt will fix things.
And according to Ron Paul, funky accounting – that would be illegal for private companies – masks the problem as well.
Congress and it’s sidekick of the Federal Reserve are now simply printing money out of thin air. It cannot go on.
As Dr. Paul points out, the value of the dollar has plummeted in relation to Gold; the definition of real money.
One side of the aisle wants continuous entitlement spending (to buy votes) and the other side wants continuous war (because the military industrial complex is very profitable in war time and will reward those who propagate wars).
Yet, the people get what they ask for. The people are getting addicted to big government.. cradle to grave assistance.
It cannot continue. As Dr. Paul says, the checks will always be written (Social Security checks, etc) but the problem will be that those checks won’t buy anything.
Protect Your Wealth From US Default
You can help protect yourself from this “stealth default” by buying gold and storing it safely out of the normal reach of the U.S. Government.
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