Ron Paul Speaks the Truth...

[rexanglorum]

Originally Posted by gko2408

Econ. guys, what would be the impacts/effects of getting rid of the Fed and moving back to the gold standard?

The problem with going to a gold standard is that you become much more vulnerable to inflation as well as deflation.

If a large deposit of gold is discovered anywhere in the world then your gold backed money is worth less. That causes inflation and when you have inflationthat's larger than three or four percent, people's savings will be eroded and interest rates will rise.

Conversely you can have deflation with a gold standard. If an economy grows for several years, the demand for money to carry out transactions will increase. Ifno additional gold is discovered that means that the supply of your money has not changed. An increase in demand and no change in supply means that your moneybecomes worth more with time. The problem with deflation is that people will simply hold onto there money instead of investing it. If your money goes up invalue by 10% per year. why take the risk of lending it out in the form of bonds or CDs? When people do not invest, economic growth slows because businessescannot expand or get started up in the first place and we are made worse off.

This risk of inflation and deflation makes a gold standard unreliable in my opinion. What you want is very mild inflation, somewhere between one to threepercent. That way your money is worth close to the same from year to year but there is no incentive to not invest at all.

A central bank can control the supply of money and therefore it can do a pretty good job of insuring the right rate of inflation.

 

[moemza]

If you truly know the reasons behind JFK's assassination...............you'd easily vote for Ron Paul.

 

[wawaweewa]

AC IX wrote:Wrong. If Ron Paul was president, forget standard of living, no American would be safe in his own home let alone school, church, airports, etc.

BTW the "status quo" has been working for 200 + years, and has made us THE most powerful country in over a thousand years. Why would you want to change that?

There's no point in even arguing because apparently you believe that the status quo has been the same in this country for over 200 years.

A central bank can control the supply of money and therefore it can do a pretty good job of insuring the right rate of inflation.
You;'re correct. However, when you have a bank that can print money whenever it wants and essentially do it by controlling interest rates thenyou create some very big problems. Namely those concerning human corruption and greed. Many economic problems aren't solved the hard way by the fed.Instead they choose to print more money by lowering interest rates. That's all they do. Increasing M3 might solve problems in the short term but it createsmany more in the long term.

If you truly know the reasons behind JFK's assassination...............you'd easily vote for Ron Paul.
you're a conspiracy theorist. How dare you imply that members in our government are just as corrupt as some in developing nations.

 

[ninjahood]

Originally Posted by MilitaryIV

• • Repeal most federal drug laws; blacks are treated unfairly. (Sep 2007)
  • Inner-city minorities are punished unfairly in war on drugs. (Sep 2007)
  • $500B on War on Drugs since 1970s has been a total failure. (Sep 2007)
  • Legalize industrial hemp. (Jan 2007)
  • Voted NO on military border patrols to battle drugs & terrorism. (Sep 2001)
  • Voted NO on subjecting federal employees to random drug tests. (Sep 199
  • War on Drugs has abused Bill of Rights . (Dec 2000)
  • Legalize medical marijuana. (Jul 2001)
  • Rated A by VOTE-HEMP, indicating a pro-hemp voting record. (Dec 2003)

[Frank Lucas] my man... [Frank Lucus]


word...and he's down to go back to da gold standard from what it sounds like

 

[nickthesneakerkid]

ron paul followers have littered my neighborhood with "Google Ron Paul" and "Ron Paul '08" signs. they're on every telephonepole.its disturbing. i really feel that he has followers, not supporters

 

[nothingbefore]

Ether way We are done American is not the same and next 5 years is going to be the worst years ever Whoever we Vote on is going to Fail us and get trick'dagain, Thats when We shall Get the co-sign to push the new gov't then Everything is going to be Hell Mock my Words and laugh now but Cry later .....