Gold and the Dollar


By U.S. Rep Ron Paul

(Remarks to the U.S. House of
Representatives, June 5, 2002)
http://www.house.gov/paul/congrec/congrec2002/cr060502.htm


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 two 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 seven years the United States 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 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.



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>Gold and the Dollar
>
>By U.S. Rep Ron Paul
>(Remarks to the U.S. House of
>Representatives, June 5, 2002)
>http://www.house.gov/paul/congrec/congrec2002/cr060502.htm
>
>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 two 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 seven years the United States 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 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.

Ich denke, das eine solche Rede eher in zum US-kongress als zum Bundestag passt: Die Klientel ist vermutlich doch ein wenig verständiger, was einige der Fachwörter angeht... ;-))




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... typischen mehrjährigen zeitlichen Verzögerung von ca. 5 - 10 Jahren.

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mich nervt dieser so oft wiederholte Wunsch: Wer hat denn mal Zeit und Lust...
Bei längeren texten müsstest du 'nem kleinen Selbständigen eigentlich gleich einen dreistelligen €uro-Betrag hinblättern, oder?

Winkää, winkää
yatri

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Toller Beitrag. In Deutschland wird es so etwas aus zwei Gründen nicht geben.

1. DER EURO IST NIEMANDSLAND ---> Welche europäische Regierung stellt sich irgendwo hin und kritisiert die ehemals eigene Richtlinienkompetenz in Sachen Geldpolitik nach einer Einigung Europas, die leider in Wahrheit keine ist.

2. In Deutschland gibt es keine Politik ohne Parteipolitik. Da ist, wenn überhaupt, immer der politische Gegner schuld und nie man selbst.

Aber die Rede ist klasse, R.D.... danke für´s Reinstellen.

winkääää
stocksorcerer

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das gerne übersetzen, genauso wie es manchmal leute gibt, die kein oder wenig englisch können..........

Toby

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