Ron Paul on CNBC: I worry most about consequences of Currency Destruction - August 10, 2011

Ron Paul's knows what's up. The Fed is the root cause of all political evil. He who controls the money, controls the world. The Fed's continual printing and inflation of the currency is what is ripping off and destroying the middle class. People don't understand that 'Inflation' is a tax on us! I fear for the future that awaits us, I mean, look at all the violence in London, Greece etc.

“In some ways I think it’s relevant,” Paul said. “You know, the markets are much more powerful. They’ll downgrade whatever they need to. But for the moment, and for traders, you know, this can be a big deal. And politically it can be a big deal.

“But if one announcement like that from somebody like Standard & Poor’s, who didn’t have any idea what was going on with Fannie Mae and Freddie Mac, could change things — so, if that announcement pushes the dollar down and causes chaos in the stock market, they’re destined to do that anyway. So those are just excuses.

“[W]hat I worry about the most is the consequence of currency destruction and violence,” Paul said. “And, boy, every day there’s more and more violence whether it’s in London, a demonstration in Israel, all around the world, revolutions going on. And this is all related to sometimes prices of food going up. This is all related to the fictitious notion about what money is and what it should be.”

Source

It would be fun to see a one on one debate between Ron Paul and Obama. I almost can hear the Ob's screams crying for his mama.

Can you hear the screams too?

Ron Paul: I Can Win This Thing!

reply to post by RUSSO


Ron Paul is spot on in saying fiat money is THE problem.



If you have any doubts at all about the CRIMINAL INTENT of those who conspired on Jekyll Island to bring about the Federal Reserve Act of 1913. Here are the words of the organizer, one of the biggest traitors to the USA Senator Nelson W. Aldrich.

Of all the contrivances for cheating the laboring classes of mankind, none is so effectual as that which deludes them with paper money. It is the most perfect expedient ever invented for fertilizing the rich man’s fields by the sweat of the poor man’s brow. Ordinary tyranny, oppression, excessive taxation, these bear lightly on the happiness of the community compared with fraudulent currencies and the robberies committed by depreciated paper. [inflation cv] Our own history has recorded enough, and more than enough, of the demoralizing tendency, the injustice and intolerable oppression on the virtuous and well disposed, of a degraded paper currency, authorized by law, or in any way countenanced by Government. ~Nelson W. Aldrich, United States Senator, at a New York City dinner speech on October 15, 1913 IV Proceedings of the Academy of Political Science #1, at 38 (Columbia University, New York (1914)). [He was quoting Andrew Jackson. cv] www.linuxtoday.com...

The Average credit card debt per household is $14,687 this does not include education loans, car loans and house mortgages. 97% of the US money supply is in the form of banks loans.- Interesting that the US dollar has lost 96% of its value since the Federal Reserve Act.

Originally posted by RUSSO


It would be fun to see a one on one debate between Ron Paul and Obama. I almost can hear the Ob's screams crying for his mama.

This is why the opponents of liberty must by whatever means necessary stop Ron Paul from becoming the Republican nomination, because if Ron Paul becomes the republican candidate there is no way Obama could stand up to him. Have you ever noticed that Obama has never mentioned Ron Paul by name? He'll make jokes about Trump or talk about his frustrations with Boehner but never will he even acknowledge Ron Paul's existence. That's not because of over-confidence, it's because of absolute fear. The GOP is a by far harder opponent for Ron Paul than Obama, Obama is a soft ball for Ron Paul, which is why the media will non-stop run stories on Sarah Palin and Sarah Palin 2.0 (Michelle Bachman) and talk about how much influence Rick Perry has because they can not survive if Ron Paul faces off against Obama on national television. That would give liberty a foothold in the debate and they are finished at that point. No chance for the "constitutional scholar" Obama.

And yes, I'll agree with you, that debate would be fun.

reply to post by crimvelvet


He truly wants a change and wants good for the people of this country. FedGov.Inc profits from the selective enforcement of our laws. Ron Paul would put an end to that. He understands what is happening in the world and knows how to apply the basic principles of liberty to achieve the real change that America deserves.

Gold is the money of kings, Silver is the money of gentlemen, barter is the money of pesants and DEBT is the money of slaves

This guy is dangerous because he speaks the truth.

The Average credit card debt per household is $14,687 this does not include education loans, car loans and house mortgages. 97% of the US money supply is in the form of banks loans.

So what do we get in return for our obligation to pay all those loans with money we earn through our labor??? The US banks are now operating on an effective ZERO reserve In other words they loan us NOTHING and the entire US is paying INTEREST on 97% of the US money supply! On June 1st 2011,the money supply was $2647.969 BILLION. The banks are earning interest on $2568.53 billion dollars!

First National Bank of Montgomery vs. Daly (1969)

Mr. Morgan, the bank's president, took the stand. To everyone's surprise, Morgan admitted that the bank routinely created money "out of thin air" for its loans, and that this was standard banking practice. "It sounds like fraud to me," intoned Presiding Justice Martin Mahoney amid nods from the jurors. In his court memorandum, Justice Mahoney stated:

Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, . . . did create the entire $14,000.00 in money and credit upon its own books by bookkeeping entry. That this was the consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created it. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note.

www.webofdebt.com...

So given we are stuck with a fiat currency and the FED more than doubled the money supply, why hasn't the USA seen hypeinflation??? I finally found a reasonable explanation.

...Given the previous hyperinflation, clearly there was ample reason for currency revulsion. So you can consider this argument a necessary but not sufficient precondition. What makes the universal acceptance stick is that government accepts its own money to expunge liabilities to it. In plain English, fiat money has value because it is the only money you can use to pay taxes. ....The fact that this money is also the medium of exchange only entrenches its use. So the tax liability is a necessary pre-condition for fiat currency to work, something I will return to....

[No wonder Amendment 16 - Status of Income Tax Clarified was Ratified 2/3/1913, a couple months after the Federal Reserve Act. cv]


Weimar Germany 1919-1923

The key to Weimar's hyperinflation was two-fold.

1. The German government had a large foreign currency debt obligation.
2. The German economy lost huge amounts of productive capacity causing prices to soar as demand outstripped supply....


Zimbabwe

While the facts in Zimbabwe are different, the underlying causes for hyperinflation were the same: foreign currency obligations and a loss of productive capacity.

Zimbabwe had established Independence from Britain in 1980. Yet, by the late 1990s 70% of productive arable land was still held by the small minority 1% of white farmers in the country. After years of talk about redistribution, in 2000, the President Robert Mugabe began to redistribute this land.

The redistribution process was a disaster, .... With agricultural production having plummeted, Zimbabwe was forced to pay to import food in hard currency.

Meanwhile, the government turned to the printing presses to fulfil its domestic obligations. as in Germany, the foreign currency obligations, the loss of productive capacity and the money printing was a toxic brew which ended in hyperinflation.

Hyperinflation in the USA, May 2010

As you can see from the two most severe cases of hyperinflation, the problem in each case was a loss of productive capacity, foreign currency liabilities, and a loss of the ability to tax....

In the German example, the Germans had a huge foreign currency liability that it had to pay, meaning it could not make good on the liability by printing money. It was a currency user as far as these liabilities went. Meanwhile, with productive capacity limited, the government was then unable to ease price pressure through the tax lever. The shortage of goods drove up prices inexorably and the government was forced to turn to the printing press in order to meet its domestic obligations.

In the Zimbabwe example, taxes were again central. Unable to recoup enough tax revenue and with large foreign currency obligations and a loss of productive capacity, the government resorted to printing money in an environment where prices were rising.

So, hyperinflation has very specific preconditions that are not apparent in the U.S..

1. No foreign currency liability: The U.S. dollar is the world's reserve currency so the U.S. can pay for trade goods in U.S. dollars.. The U.S. does not have a peg to gold or some other currency which acts as a de facto foreign currency liability. And the U.S. government has substantially no foreign currency liabilities. All of the debt is issued in domestic currency.

2. Price pressures are still anchored: While commodity prices are rising, they are rising in all currencies, not just in USD. Moreover, their rise will create demand destruction before any hyperinflation could occur. Why? Unemployment is high and capacity utilization is low, meaning there are no inflationary pressures on that front to help push inflation higher before demand destruction sets in.

3. Currency revulsion has not set in: Tax compliance is high in the U.S. We are not talking about Russia, Greece or Argentina where government has had a difficult time in raising tax. Moreover, as the USD is still the world's reserve currency, there has been no freefall sell off of dollars, nor do I anticipate any in the near-to-medium term.

In short, there will be no hyperinflation in the U.S. any time soon.... www.creditwritedowns.com...

SO Where Are We Now???

The article states tax compliance is high in the U.S yet the Grace Commission Report to the President (1984) states"...one-third of all their taxes escapes collection from others as the underground economy blossoms in direct proportion to tax increases and places even more pressure on law abiding taxpayers, promoting still more underground economy-a vicious cycle that must be broken...." Now we have a 20% unemployment rate and the retiring of the baby boomers as well as a federal debt increase from fiscal 1983 deficit of $195 billion to over $14 TRILLION (Interestingly the report projected $13 trillion by the year 2000)

Increasingly more and more people are not paying taxes because they do not have a job or their job has a taxable income below $33,300. (97% of taxes are paid on income above $33,300)


World Reserve Currency
Other countries are not happy with the situation. The Russians, China and others are calling for a different world reserve currency than the dollar for the last couple of years.

The OPEC oil countries are moving to the Euro instead of the US dollar, that is the real reason for the heating up of the middle east. The Real But Unspoken Reasons For The Iraq War

The shocking admission Ft Knox holds very little good delivery gold was made to Mr. Durell by the chief official of the General Accounting Office (GAO). This happened a few months after the September 1974 tour.

www.lewrockwell.com...

WHO owns the gold still in Ft Knox??? Seems 66% of Germany's gold (3,400 tons???) resides in fort Knox!

Jim Rickards lays out a plan to commandeer Germany’s and all foreign depositors of sovereign gold at the New York Fed as currency wars heat up... maxkeiser.com...

Also China is amassing gold:

The Wall Street Journal reports Friday that gold prices are soaring to record highs as a new powerful factor has emerged as a driver of that rally — China.

According to the Journal, China is now buying huge amounts of gold ...
key data released by China’s state-run Xinhua news agency showing that China imported 209.7 metric tons of gold in the first 10 months of this year. That’s a five hundred percent increase compared to the same period in 2009... www.moneynews.com...

Jun 18, 2010 ... As the world's largest producer of the metal, China often buys gold from its own mines and doesn't report those sales publicly... www.businessinsider.com...

The People's Bank of China(PBOC) recommended yesterday that 1 billion Chinese consider buying gold as a hedge against inflation ; blogs.forbes.com...

Last is the Foreign Trade in-balance aka a loss of productive capacity and an increase foreign currency liabilities

Congress should be VERY VERY worried if they gave a flying flip about this country instead of their own bank accounts.

World Trade Organization was ratified in 1995, China's entry was in 2001. (Negative is jobs and money flowing out of the USA)

[atsimg]http://files.abovetopsecret.com/images/member/e419473c7f7b.png[/atsimg]

reply to post by filosophia


Constitutionally, legislatively, and morally, Ron Paul has no equal. His 22 year voting record speaks for itself. And you said it very well. FEAR is the word.

reply to post by filosophia

...This is why the opponents of liberty must by whatever means necessary stop Ron Paul from becoming the Republican nomination, because if Ron Paul becomes the republican candidate there is no way Obama could stand up to him....

I really fear for this country if we can not wake enough people up before the next election.

99.99% of the politicians are bought and paid for. Very few give a flying flip about this country. Even if they do have some integrity they have bought into the "Best thing for Humanity is Global Governance where an intellectual Elite guides the masses" crap and have jumped on the "We must destroy the USA to build a better world." bandwagon.


The Fabian Society Stain Glass Window was hung in the London School of Economics with ex-Chair of the Fabian society ex Prime Minister Tony Blair in attendance along with President Bill Clinton. (George Soros among others is a graduate of the school) It should be noted that Tony Blair as a part time consultant will earn £2 million a year in his part-time role as adviser to the Wall Street bank JP Morgan as wellas being a UN Middle East peace envoy. LINK

...The three most prominent leaders in the early days were Sidney and Beatrice Webb and George Bernard Shaw. [2] A stained-glass window from the Beatrice Webb House in Surrey, England is

especially enlightening. Across the top appears the last line from Omar Khayyam:

Dear love, couldst thou and I with fate conspire
To grasp this sorry scheme of things entire,
Would we not shatter it to bits, and then
Remould it nearer to the heart's desire!

Beneath the line Remould it nearer to the heart's desire, the mural depicts Shaw and Webb striking the earth with hammers. Across the bottom, the masses kneel in worship of a stack of books advocating the theories of socialism. Thumbing his nose at the docile masses is H.G. Wells who, after quitting the Fabians, denounced them as "the new machiavellians."

The most revealing component, however, is the Fabian crest which appears Between Shaw and Webb. It is a wolf in sheep's clothing!

Source

Again we find Bill Clinton at the opening of Tony Blair's new Tony Blair Faith Foundation

Faith and Globalisation | The Tony Blair Faith Foundation

I do not know how much more obvious they can get without standing in front of a TV camera during a State of the Union Address and telling us point blank that they have decided to disolve the USA and we are now going to be a part of a newly formed World government!

[atsimg]http://files.abovetopsecret.com/images/member/f3cf6bffbab0.jpg[/atsimg]

reply to post by RUSSO

"...A man who hasn't been afraid to criticize the central bank..."

Is this MSM-jockey admitting that people aught to be afraid?

But he is right, Ron Paul has NOT afraid.

“Never before has a single fiat currency been used so pervasively around the world.” – Ron Paul.

Ron Paul with NBC's Anthony Terrell

I can't wait for the debates tomorrow night. I will watch for him and him only, applauding at his every remark.

reply to post by ForeverDusk


I'm waiting the debate tomorrow too, and I'm sure our guy is going to own the stage.

Good luck and godspeed Dr. Paul.

In the vid of opening post I liked how the anchor at the end didn’t know how to end the interview. Had it been Romney, Bachman or anyone else he would have said “Good luck at the debate and straw poll this weekend.” But since it was Ron he almost hated to admit that he was polling top 3 and has a very good chance of winning the straw poll.