Wednesday, February 22, 2006

Ron Paul Explains Why I'm Buying Gold and Shorting the US Dollar

I've been wanting to write something about the growing US debt and the current fiat/dollar-based world monetary system for a while now. Quite a number of economists believe the current economic situation is unsustainable, and will probably lead to some difficult economic times ahead- not just the US economy, but for the world economy as a whole. To sum it up in a sentence, the gist is that the US is accumulating unsustainable levels of debt, which is largely a product of the present dollar-denominated floating currency markets, and soon foreigners will no longer be willing to buy up US debt leading to collapse of the greenback and basically global monetary chaos (which won't be good for anyone's economy)

Recently, I came across this link showing a recent congressional speech by Representative Ron Paul and he sums things up better than I can. Believe it or not Ron Paul is actually a Texas Republican, but definitely not a Neocon- he's also been connected to the Libertarian party as well as the GOP. It's pretty amazing to hear someone advocating the positions he does inside the US congress, his views are definitely far from the political orthodoxy that exists in the States. I don't agree with all his views; in particular, I find it hard to believe that the Iraq war is primarily motivated by a desire to keep the US dollar as the dominant denomination of the oil industry (it might be one of the motivations behind the war, but I very much doubt it's the primary one).

Hopefully I'll get a chance to write more about this topic a little later. Watch the Ron Paul video, it's worth taking the time.


Blogger eugene plawiuk said...

Actually his position on the petro dollar theory is supported by more mainstream ecomomists and the Left. Surprise surprise. In particular see An Alternative Perspective on the Reasons for Invading Iraq
by Anthony Haynes
The Canadian Institute of Strategic Studies (February, 2004) which is on my blog at: The Real Reason for the Iraq War

10:31 PM  
Anonymous Dave Olie said...

Wow. That is a real eye-opener. Thanks for bringing it to my attention. I'm spreading it around.

10:47 PM  
Anonymous Anonymous said...

You have a major falacy in your Blog. The US does not use "green backs". The term green back came from the US Civil War. The Government had ran up a debt and started printing a fiot currency called green backs, which worked rather well. In 1913 the US Senate and House of Rep.s passed the US Federal Reserve Act illegaly. Now all new money printed is taxed by a private bank that most people think is ran by the US Government. We no longer have green backs. What we have is dirty money.

3:38 AM  
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