Ron Paul: "What Has QE Wrought?"
The search is now on for a solution to our financial time bomb, a foreign policy presenting great danger to the world, and the systematic attack on our liberties here at home. We’re beyond the point where more lies and deception will calm the anger. The wealth available for bribing the masses is quickly dwindling as the demands and expectations grow. The dollar is destined to go down in value, as it has been doing since 1971. We are getting weaker and poorer and other world governments are getting stronger and richer. The dollar this past year lost more than 10 percent.
There’s a lot of built-up resentment toward America for the privileged financial position that it has enjoyed for decades, while it flaunted its “exceptionalism,” backed by a militant foreign policy. This arrangement is ending and the process will not go smoothly. Though the consequences of QE are all around us, there’s little else the planners will consider. A repeat of this failed effort will be tried again-with worse results. Cutting spending, reining in the Fed, and strictly limiting the role of government, can only be achieved in the distant future after the current crony-capitalism and welfare state self-destructs. Preparing for that day is the job for all who desire to live in a free society. If current authoritarian policies are left unchecked, our economic conditions will deteriorate and true freedom will only be a memory.
There’s a growing number of people becoming aware of the significance of the Fed’s disastrous monetary policy and the utter silliness of QE. Since few people expect the privileged class to promote sound money, many outside of government are seeking a system of money that protects wealth rather than destroys it.
Historically, money originated in the marketplace as a tangible asset. The choice for thousands of years has been the precious metals, especially gold. Governments, notoriously, have taken over monopoly control of the monetary systems and used them to benefit the government over the people. Because of the abuse of the currency over the centuries, a return to gold was frequently needed to restore order and confidence in the money. For this reason, I have been a champion of competing currencies to allow the people to make the choice about the monetary unit, as long as no fraud was involved. A government-designed currency should also be free of fraud. This means no fiat currency and no legal tender laws. A tangible currency developed in the market, such as gold or silver, should not be subject to sales or capital gains taxes.