September 8, 2008 - By True Patriot and Congressman
Ron
Paul
Can sound money give you financial security? There is something
very comforting in knowing that what you earn today will retain
its purchasing power in the years to come. Indeed, the same
silver dime that bought a loaf of bread in the 1960's can still
buy a loaf of bread with its precious metal content – which
is worth about $1.00 today. An ouLast week I discussed how
sound money contributes to peaceful relationships around the
world. It is not gold, in and of
itself that excites me, but the many benefits of sound money.
Another benefit is financial security.nce of gold has always
been about evenly exchangeable for a finely tailored men's
suit,
which these days is roughly $800. And in these days of fluctuating
gas prices, when priced in gold, oil has been stable. Meanwhile,
since the creation of the Federal Reserve, the fiat dollar
has lost 94f its purchasing power. The erosion of purchasing
power rapidly accelerated when it was completely uncoupled
from gold in 1971. This sort of fluctuation in the medium of
exchange creates a lot of uncertainty in the marketplace and
necessitates that you either take extraordinary defensive maneuvers,
or face financial ruin. Trusting in government for financial
security in retirement is not a safe option. Indeed, a recent
study by the Consumer Bankruptcy Project shows that bankruptcies
among those 75 and older has more than quadrupled since 1991.
This represents wealth and savings that have been eroded by
inflation, and trust in entitlement promises that were more
fantasy than reality. Even with the pittance that social security
pays to seniors, it is bankrupt and bringing the economy to
its knees. It is no wonder that many in the younger generations
want no part of it, and they should not be forced into a failed
system.
On the other hand, holding physical gold can defend against
aggressive government monetary policies that threaten to inflate
away the value of your life savings. During the hyperinflation
in post WWI Germany, what used to be a comfortable nest egg
was suddenly the value of a postage stamp. If one held just
a portion of their savings in precious metals, the crisis was
greatly softened. Gold will never be worth nothing, even if
the exact price fluctuates. There is a famous photograph, however,
of a German woman during this time period burning piles of
tightly bound banknotes to keep warm.
Imagine if the money you earned had honest, stable value,
or even appreciated like an investment! No such special measures,
like converting dollars to gold, would be required to ensure
that your savings would sustain you in your golden years. That
is the way it could be and is supposed to be. However, the
government's thirst for power will not be easily, or cheaply,
quenched. Fiat currency is one tool governments have to extract
wealth quietly from the working class. It is time for the people
to wake up to this ruse and look to the Constitution to restore
sound currency.
Read more Articles by Ron Paul at http://www.house.gov/paul/legis.shtml
----------------------------------------------------------------------------------------------------------------------------------------
(In accordance with Title
17 U.S.C. Section 107, this material is distributed
without profit to those who have expressed a prior interest
in receiving the included information for research and
educational purposes. BadConcress.com has no affiliation
whatsoever with the originator of this article nor is BadCongress.com
endorsed or sponsored by the originator.
|
