New world order, fiat dollars, gold, reserve currency of the world.Submitted by StevenNYC on Thu, 04/17/2008 - 03:34
I want to start off by thanking Ron Paul and this forum for opening my eyes to the truths, half truths, falicies and realities of the world we live in. Before Ron Paul's campaign, I was always a libertarian and believed in minimal govt and free markets but it wasnt until I listened Ron Paul's message that I began to spend countless hours researching monetary policy and macro-economics.
I have only begun to scratch the surface but slowly the big picture is begining to unfold in front of my eyes. The following is my assesment as to what is going on in the world today.
Fiat money allows the govt to grow to unsustainable levels. We went off the gold standard because during the Vietnam war the gold standard was restraining the govt too much from printing money carelessly to pay for guns and butter. It was the gold standard that made dollars so attractive to foreign investers and made USD the world's reserve currency. Thanx to Nixxon that is all coming to an end soon.
Jean Claude Trichet (Euro Central bank) has his eyes on making the Euro the new reserve currency of the world so that they will be able to tax the world through inflation the same way america has been doin for the last 40 years. Up until recently no other nation had a currency with enough liquidity in the world market to play the roll as world reserve currency. Now that the Euro is here and there is an alternative, while Bernake keeps slashing rates and Trichet intelligently holds strong and keeps the Euro at 4%, he is creating a high demand for the Euro which has the liquidity to serve as the new world reserve currency. Once this happens they will be able to tax the world through inflation and wealth will gravitate towards Europe.
The Euro is current selling at 1.59 USD. The Rate at which the Euro is rising while the Dollar is dropping suggests that most foreign investers are switching to the Euro. Now mind you, while Gold is very cheap these days, the Euro is overbought and over-rated. Simply put, the increasing value of the Euro is a direct result of higher demand for the currency, not economic growth.
For 40 years or so the dollar was overvalued as well due to its world reserve status. Much of America's wealth in the last 40 years was attained by taxation through inflation. Basically Americas growth was depended on exporting its inflation to the world through its world reserve currency status. Although inflation existed it was moderate and offset by the high demand for our currency.
Our entire wealth was depended upon this system which was very fragile and came crashing down as a result of two things. One the Creation of the Euro which provided an alternative to the dollar, and two, the Fed overinflating because of the welfare/warfare state of the Bush administration.
Ron Paul has said many times "they take our dollar because their is faith in the dollar, but that is slowly coming to and end". That is exactly what is happening today,
Once America loses its currency status govt will no longer be able to fund its welfare/warfare/entitlement programs by taxing the world through inflating its currency.
Putin in Russia is fully aware of this scenario unfolding and is trying to get people to buy Russia's oil in Rubles. Although Russia's economy has benefited greatly by the declining dollar its too little too late. The reserve currency role is going to be handed over to the Euro zone nations.
Once the Euro is the new reserve currency, they will be able to tax the world through inflation to fund its growth. Americans will suffer greatly we will no longer be the worlds super power. Unless of corase Ron Paul is elected :)
In 1979-1980, Precious metals were the only alternative to the dollar. Today we have to Euro, and this is why Gold hasnt reached 2000 dollars and ounce, otherwise I suspect it would have already
Final note, I've started trading on the foreign exchange market lately and was able to make 10,000 dollars with an initial investment of 4,000.(4k+10K=14k) I made this in a week thanks to Ron Paul and what I've learned in the past year... I am sharing this information with you all because I would like to see all Ron Paul supporters make a bundle of money and possibly fund another Ron Paulian campaign in the future. They are destroying our nation right in front of our eyes and we need to do something about it.
Good Luck to you all and may God Bless America.