Tuesday, June 4, 2013

Ron Paul on “Gold and the Dollar”

This final article about the value of the US dollar serves as a transition to our next subject, the Gold Standard. This article is based on the speech of Congressman Ron Paul dated June 5, 2002. Compared with the previous two speeches on the same subject, we see here a progression in the way the value of the US dollar has been treated. Ron Paul indicated in July 20, 1979 speech that the US government was guilty of destroying the dollar. In September 6, 2001 speech, the Congressman reminded the US Congress of their constitutional responsibility to protect the dollar. After 9 months, this June 5, 2002 speech shows that the US Congress is not fulfilling its responsibility to protect the value of its own currency.
Gold and US dollar
Reading the last speech, I keep on encountering familiar themes that have already been mentioned in previous speeches like the connection of the price of gold and the dollar, inflation, the loss of trust in the US dollar, social tensions, and the call to return to gold standard. This only shows that the call of Dr. Paul for change in monetary policy has been ignored even after several decades of admonishing the US Congress.
Instead of protecting the dollar, the Congress, says Dr. Paul, is either deliberately or by default promotes a monetary policy that erodes the value of the dollar. This erosion is dangerous not only to US economy, but also to world economy since the dollar is the reserve currency of the world.
Repeatedly and consistently, despite of the Congressman’s awareness that politicians dislike the limiting power inherent in a monetary system connected to gold, he has kept on reminding the US Congress about its task to maintain a stable currency by attaching the dollar into gold once again. He believes that monetary history and economic laws show the value of a stable currency in maintaining a system of healthy economic growth and wealth preservation.
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Personal Prayer
Creator of heaven and earth and the Ultimate Owner of all things, I pray that you remove whatever forces that exist in the US Congress that prevents reform of monetary policy leading to a sound, honest, and stable system of currency. Grant knowledge, courage, and tenacity for lawmakers and politicians working to see this change. Help us enjoy your gift of freedom through the Gospel of your Son. Help us live in peace and productivity. Amen!