The Declining Dollar
Document 18.104.22.168 15 of 38.....Date: 11 June, 2002 4:26
The Declining Dollar By Rep. Ron Paul, MD
US House of Representatives, June 5, 2002
Mr. Speaker, I have for several years come to the House floor to express my
concern for the value of the dollar. It has been, and is, my concern that we
in the Congress have not met our responsibility in this regard. The
constitutional mandate for Congress should only permit silver and gold to be
used as legal tender and has been ignored for decades and has caused much
economic pain for many innocent Americans. Instead of maintaining a sound
dollar, Congress has by both default and deliberate action promoted a policy
that systematically depreciates the dollar. The financial markets are keenly
aware of the minute-by-minute fluctuations of all the fiat currencies and
look to these swings in value for an investment advantage. This type of
anticipation and speculation does not exist in a sound monetary system.
But Congress should be interested in the dollar fluctuation not as an
investment but because of our responsibility for maintaining a sound and
stable currency, a requirement for sustained economic growth.
The consensus now is that the dollar is weakening and the hope is that the
drop in its value will be neither too much nor occur too quickly; but no
matter what the spin is, a depreciating currency, one that is losing its
value against goods, services, other currencies and gold, cannot be
beneficial and may well be dangerous. A sharply dropping dollar, especially
since it is the reserve currency of the world, can play havoc with the
entire world economy.
Gold is history's oldest and most stable currency. Central bankers and
politicians hate gold because it restrains spending and denies them the
power to create money and credit out of thin air. Those who promote big
government, whether to wage war and promote foreign expansionism or to
finance the welfare state here at home, cherish this power.
History and economic law are on the side of the gold. Paper money always
fails. Unfortunately, though, this occurs only after many innocent people
have suffered the consequences of the fraud that paper money represents.
Monetary inflation is a hidden tax levied more on the poor and those on
fixed incomes than the wealthy, the bankers, or the corporations.
In the past 2 years, gold has been the strongest currency throughout the
world in spite of persistent central bank selling designed to suppress the
gold price in hopes of hiding the evil caused by the inflationary policies
that all central bankers follow. This type of depreciation only works for
short periods; economic law always rules over the astounding power and
influence of central bankers.
That is what is starting to happen, and trust in the dollar is being lost.
The value of the dollar this year is down 18 percent compared to gold. This
drop in value should not be ignored by Congress. We should never have
permitted this policy that was deliberately designed to undermine the value
of the currency.
There are a lot of reasons the market is pushing down the value of the
dollar at this time. But only one is foremost. Current world economic and
political conditions lead to less trust in the dollar's value. Economic
strength here at home is questionable and causes concerns. Our huge foreign
debt is more than $2 trillion, and our current account deficit is now 4
percent of GDP and growing. Financing this debt requires borrowing $1.3
billion per day from overseas. But these problems are ancillary to the real
reason that the dollar must go down in value. For nearly 7 years the U.S.
has had the privilege of creating unlimited amounts of dollars with
foreigners only too eager to accept them to satisfy our ravenous appetite
for consumer items. The markets have yet to discount most of this monetary
inflation. But they are doing so now; and for us to ignore what is
happening, we do so at the Nation's peril. Price inflation and much higher
interest rates are around the corner.
Misplaced confidence in a currency can lead money managers and investors
astray, but eventually the piper must be paid. Last year's record interest
rate drop by the Federal Reserve was like pouring gasoline on a fire. Now
the policy of the past decade is being recognized as being weak for the
dollar; and trust and confidence in it is justifiably being questioned.
Trust in paper is difficult to measure and anticipate, but long-term value
in gold is dependable and more reliably assessed. Printing money and
creating artificial credit may temporarily lower interest rates, but it also
causes the distortions of mal-investment, overcapacity, excessive debt and
speculation. These conditions cause instability, and market forces
eventually overrule the intentions of the central bankers. That is when the
apparent benefits of the easy money disappear, such as we dramatically have
seen with the crash of the dot-coms and the Enrons and many other stocks.
Now it is back to reality. This is serious business, and the correction
that must come to adjust for the Federal Reserve's mischief of the past 30
years has only begun. Congress must soon consider significant changes in our
Congress must soon consider significant changes in our monetary system if
we hope to preserve a system of sound growth and wealth preservation. Paper
money managed by the Federal Reserve System cannot accomplish this. In fact,
it does the opposite.
Dr. Ron Paul is a Republican member of Congress from Texas.
NOTE # 1: This is the FIFTEENTH doc in a string of about 38 regarding
the Income Tax, How it was illegally forced upon us, the collusion of
various nation banks, including The Bank of England, the Banks of Europe,
the Banks of the USA that make up the Non-Government organization known as
the Fed and the bankers themselves dedicated to making this a Socialist
Nation. As David Rockefeller reportedly said in 1973 when he and others
formed the Trilateral Commission, "We will have this a Socialist Nation by
the end of the year 2000." Well, with the help of our past Communist
President, he damned well nearly did it. If Comrade Gore had been elected,
it would be now! The last doc in this series is a plan that was presented to
President Bush when he visited Florida recently. It was put directly into
his hands. He has not acted upon it. We The People must initiate a campaign
of letters, faxes, e-mails, and phone calls to him and others in our
otherwise corrupt government letting them know of our displeasure. For God
and Country, Chet.
NOTE # 2: [ Should you wish to be removed from my mailing list, please
send a message with the word remove in the subject line. If you got this
from a mail list, such as firstname.lastname@example.org or something like that,
then it is up to the moderator or owner of the list to remove my access
based upon complaints of my material, abuse, or removal of your access if
you request it. ] Should you wish a copy of a numbered message
(this is the 15th one) that you may have missed, please e-mail me off net
for a copy of it and I will be very happy to provide it. Chet.
You may forward this to every member of Congress by using a Mail Blaster
application available on the Internet as follows:
Step 1. Access your web browser. Step 2. Type in the search block:
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Remember: Nothing beats a letter AND a phone call.
Forwarded by: Chester L McWhorter Sr, c/o 504 N. Brighton Rd, Lecanto,
Occupied Florida. 34461. Ph: 352-344-9073. Fax: Same. E-mail:
15 of 38.........22.214.171.124 End.
"Beware the leader who bangs the drums of war in order to whip the
citizenry into a patriotic fervor, for patriotism is indeed a double-edged
sword. It both emboldens the blood, just it narrows the mind. And when the
drums of war have reached a fever pitch and the blood boils with hate and
the mind has closed, the leader will have no need in seizing the rights of
the citizenry. Rather, the citizenry, infused with fear and blinded by
partiotism, will offer up all of their rights unto the leader and gladly so.
How do I know? For this is what I have done. And I am Caesar."--Julius
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