BEWARE: The Weak US Dollar Is Beginning To Be Abandoned Worldwide

Ron Paul: World Will Leave Dollar Unless We Replace It With A Gold Backed One

On this Labor Day holiday, Congressman and former Presidential candidate Ron Paul is still working hard trying to reach all American on how dire the U.S. monetary system is in the economy. On Sept. 3, the Texas Congressman shared his views on how the dollar is quickly losing its reserve currency status between nations, and that if changes aren’t made quickly, to a gold backed, or other metal based system, the dollar is destined to waste away like the dozens of other fiat currencies littered throughout history.

“If we act now to replace the fiat system with a stable dollar backed by precious metals or commodities, the dollar can regain its status as the safest store of value among all government currencies. If not, the rest of the world will abandon the dollar as the global reserve currency.” – Ron Paul – Paul.House.Gov

Ron Paul is not the only lone voice in economics today calling for a return to gold backed, sound money. This last week, the Republican National Convention (RNC) voted to call for a return to the gold standard as one of their many planks during their convention in Tampa. Additionally, many economists and financial advisers are predicting a return to the gold standard within a short amount of years, as the life cycle of a fiat currency historically is only 40 years.

Germany, China, Iran, and many other strong and developing nations are preparing for an exit of current reserve currencies like the dollar and Euro. In 2003, Iran began to sell oil in currencies other than the petro-dollar, and within the past year, China has created several trade agreements with BRIC nations, Japan, and even Russia using currencies other than the dollar.

Since 1971 when the U.S. took the dollar off the gold standard, the value of the currency has fallen over 85%, with massive deficits inflating prices in conjunction with Federal Reserve policies. These actions have accelerated price inflation for consumers, while at the same time, allowed wages to stagnate or fall, and for industry to move offshore in search of better fiscal environs.

Congressman Ron Paul may have lost the Republican nomination for President in 2012, but he has not given up the fight to educate and help change America’s monetary system back to one of sound money. His assessments of how the world sees the dollar, and its status as the reserve currency, are proving correct as more global economies increasingly move away from the dollar, and prepare for a gold backed currency from a new source.

September 3, 2012
By: Kenneth Schortgen Jr

  • Share/Bookmark

Comments are closed.

FAIR USE NOTICE: This web site may contain copyrighted material. Such material is made available for educational purposes only. This constitutes a 'fair use' of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law.