There is still a chance for Americans to stem the inexorable push “To Narnia!”, as exhorted by fake Presidential candidate and comedian, Stephen Colbert. As humourous as it may be that Colbert trumped a candidate in a GOP Presidential nomination poll in South Carolina (nailing 5% of the votes to Jon Huntsman’s 4%), it’s a sobering footnote in the race for the 2012 Republican presidential nomination.
Sobering footnotes riddle America. America’s national debt increases an average of $3.96 billion per day. And, as economic Armageddon ravages America, the Presidential race is rife with candidates completely clueless about basic economics.
Who will staunch the bleeding of America – and how?
The lone GOP candidate to grasp the immensity and complexity of monetary policy is the 11-term Congressman from The Lone Star state – Dr. Ron Paul. He’s seen blood before – first as a flight surgeon in the U.S. air force; then as a Texas obstetrician delivering 4,000 babies; and, more recently, as a politician.
Paul supports an audit – then a cut – of the Federal Reserve System, believing it should be abolished. Typifying The Fed as counterfeiters, he has been vociferous about the “power and authority by Congress to create money out of thin air”. In February 2009, he introduced a bill to audit the Federal Reserve, opining that the “financial system is very friable, very vulnerable….and that it was the Fed that was creating the bubbles”. Believing that Americans have long been boondoggled by an increasingly corrupt Congress (the chicken that laid The Fed egg), Paul admitted that, as a Congressman, he can find out more about the CIA than the Federal Reserve System. Smell that rotten egg.
It’s time to cut the cozy “symbiosis between Congress and the Fed”. While speaking about the Federal Reserve, Paul noted that “not a lot of American people understand it and not a lot of people here in Congress understand it either” and “even members of the banking committee have come up to me and said you mean our dollar isn’t backed by gold anymore”?
Long advocating that gold is “the surest path back to sound money”, Paul eschews the fiat monetary system of money, staunchly supporting the gold standard which will tighten up the printing of ridiculous sums of currency and keep in check the powers that are responsible in doing so. This would also be bullish for gold as the reserve would have to back at least part of the currency with gold sending the price of the precious metal northward.
In his 1981 book (re-released in 2007) Gold, Peace and Prosperity: The Birth of a New Currency, Paul wrote “The gold coin standard, although imperfectly adhered to, permitted startling economic growth combined with falling prices in the 19th century. In the 67 years since the abolition of the gold standard, the Consumer Price Index has gone up 625 percent. In the previous 67 years, under an imperfect gold coin standard, the CPI increased 10 percent”.
But, does Ron Paul put his money where his mouth is?