{"id":576,"date":"2012-10-02T00:44:22","date_gmt":"2012-10-02T00:44:22","guid":{"rendered":"http:\/\/www.rationalargumentator.com\/index\/?p=576"},"modified":"2014-02-09T05:04:57","modified_gmt":"2014-02-09T05:04:57","slug":"gold-is-good-money","status":"publish","type":"post","link":"https:\/\/www.rationalargumentator.com\/index\/blog\/2012\/10\/gold-is-good-money\/","title":{"rendered":"Gold is Good Money – Article by Ron Paul"},"content":{"rendered":"
\n
\"The<\/div>\n<\/div>\n
Ron Paul
\n<\/big><\/big><\/strong><\/span><\/div>\n
October 1, 2012<\/big><\/span><\/div>\n
Recommend this page<\/a>.<\/strong><\/div>\n
******************************<\/div>\n
\n

Last year the Chairman of the Federal Reserve told me that gold is not money<\/a>, a position which central banks, national governments, and mainstream economists have claimed is the consensus for decades.\u00a0 But lately there have been some high-profile defections from that consensus.\u00a0 As Forbes recently reported<\/a>, the president of the Bundesbank (Germany’s central bank) and two highly respected analysts at Deutsche Bank have praised gold as good money.<\/p>\n

Why is gold good money?\u00a0 Because it possesses all the monetary properties that the market demands: it is divisible, portable, recognizable and, most importantly, scarce – making it a stable store of value. It is all things the market needs good money to be and has been recognized as such throughout history. \u00a0Gold rose to nearly $1800 an ounce<\/a> after the Fed’s most recent round of quantitative easing because the people know that gold is money when fiat money fails.<\/p>\n

Central bankers recognize this too, even if they officially deny it.\u00a0 Some analysts have speculated<\/a> that the International Monetary Fund’s real clout is due to its large holdings of gold.\u00a0 And central banks around the world have increased their gold holdings over the last year, especially in emerging market economies trying to protect themselves from the collapse of Western fiat currencies.<\/p>\n

Fiat money is not good money because it can be issued without limit and therefore cannot act as a stable store of value. A fiat monetary system gives complete discretion to those who run the printing press, allowing national governments to spend money without having to suffer the political consequences of raising taxes.\u00a0 Fiat money benefits those who create it and receive it first<\/a>, enriching national governments and their cronies.\u00a0 And the negative effects of fiat money are disguised so that people do not realize that money the Fed creates today is the reason for the busts, rising prices and unemployment, and diminished standard of living tomorrow.<\/p>\n

This is why it is so important to allow people the freedom to choose stable money. \u00a0Earlier this Congress I introduced the Free Competition in Currency Act (H.R. 1098) to permit people to use gold as money again. By eliminating taxes on gold and other precious metals and repealing legal tender laws, people are given the option between using good money or fiat money. If the federal government persists in debasing the dollar \u2013 as money monopolists <\/a>have always done \u2013 then the people would be able to protect themselves by using alternatives such as gold that are both sound and stable.<\/p>\n

As the fiat money pyramid crumbles, gold retains its luster.\u00a0 Rather than being the barbarous relic Keynesians have tried to lead us to believe it is, gold is, as the Bundesbank president put it, “a timeless classic.”\u00a0 The defamation of gold wrought by central banks and national governments is because gold exposes the devaluation of fiat currencies and the flawed policies of the national government.\u00a0 National governments hate gold because the people cannot be fooled by it.<\/p>\n

Representative Ron Paul (R \u2013 TX), MD, was a three-time Republican candidate for U. S. President. See his Congressional webpage<\/a> and his official campaign website<\/a>.\u00a0<\/strong><\/p>\n

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ron Paul October 1, 2012 Recommend this page. ****************************** Last year the Chairman of the Federal Reserve told me that gold is not money, a position which central banks, national governments, and mainstream economists have claimed is the consensus for decades.\u00a0 But lately there have been some high-profile defections from that consensus.\u00a0 As Forbes recently reported, the president of the Bundesbank (Germany’s central bank) and two highly respected analysts at Deutsche Bank have praised gold as good money. Why is…<\/p>\n

Read More Read More<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,5],"tags":[641,340,1342,634,444,838,18,339,234,839,84,687,692,236,1343,1341,59,686,17,1054,65,690],"class_list":["post-576","post","type-post","status-publish","format-standard","hentry","category-economics","category-politics","tag-austrian-economics","tag-ben-bernanke","tag-bundesbank","tag-competition","tag-congress","tag-currency","tag-economy","tag-fed","tag-federal-reserve","tag-fiat-money","tag-freedom","tag-gold","tag-gold-standard","tag-inflation","tag-international-monetary-fund","tag-keynesian-economics","tag-liberty","tag-money","tag-prices","tag-quantitative-easing","tag-ron-paul","tag-sound-money"],"_links":{"self":[{"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/posts\/576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/comments?post=576"}],"version-history":[{"count":4,"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/posts\/576\/revisions"}],"predecessor-version":[{"id":2087,"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/posts\/576\/revisions\/2087"}],"wp:attachment":[{"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/media?parent=576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/categories?post=576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rationalargumentator.com\/index\/wp-json\/wp\/v2\/tags?post=576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}