Comment: This is the future.

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This is the future.

This article at spells out the thinking that would prevail if Ron Paul were elected President:

Here is a relevant excerpt:

China is increasingly keen to provide her own currency for trade settlement purposes. She sees the dollar-monopoly as an important security threat, which is why she has in the past sought alternatives. She is now cautiously promoting her own currency for this role and is developing an offshore renminbi capital market in Hong Kong. At the same time she is evolving from manufacturing consumer goods towards capital goods, for which Hong Kong is the natural financing centre.

"Her targeted growth-markets are other rapidly developing economies, as well as the whole Asian continent, and no longer the US and Europe. One of her key strategies through the Shanghai Cooperation Organisation is to build a pan-Asian security and trade bloc in partnership with Russia, and the last element of this 10-year old plan is to settle cross-border trade without using the West’s financial system. China expects to play a major part with her currency, which explains why she is adding to her gold reserves.

The relevance of gold is that China will have to show to the people of Asia that her currency has better long-term prospects than the dollar, which goes some way to explaining why so many of the countries associated with the SCO are now also accumulating the metal. This analysis is confirmed by a leaked cable from the US Embassy in Beijing as long ago as April 2009 that can be seen in GATA’s database. As Iran and India also have SCO Observer status they are part of China’s grand strategy, and they have also been buying gold."

This is in line with the position I was advancing that by cutting spending and balancing the budget, by opening the Mint to gold and silver and introducing competing currencies the USD could be strengthened. By the time Dr. Paul takes office in 2013 the situation should have deteriorated to the point where his solutions would be embraced by a Congress at a loss over what to do. Certainly his solutions are preferable to those of the PNAC who want to destroy the world in order to recreate it in their own image.

There is no doubt that the situation is perilous for the FRN dollar system but a gold or silver dollar would not be under similar pressure. The tricky part would be the transition and that can be left to the market to sort out. The less the government is involved in that the better and quicker it will be. I am simply more sanguine about it than you appear to be.

No one has a real clear idea of what will happen but my own sense of it is that Dr. Paul will be able to accomplish a lot more than his critics give him credit for. Since we shall be entering a completely new paradigm the potential for rapid change is excellent.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)