Ron Paul – The Revolution: A Manifesto – Page 137 through Page 139

Page 137: Americans are deeply worried about the economy but they can’t put their fingers on what exactly is causing the problem. Politicians refuse to frankly acknowledge what is wrong. Pundits and economists tell us that the Federal Reserve just needs to print some more money and the problems will disappear. Americans are told that there is nothing fundamentally wrong with the system. This type of discourse deprives Americans of the true knowledge they need to comprehend the serious issues facing the economy.

Quote: “Read the major newspapers and watch the cable news channels: you will not see any fundamental questions raised. The debate will be resolutely confined to superficialities.”

Page 138: In the year 2000 Ron Paul correctly predicted that a loss of confidence in the dollar would cause grave economic problems in the United States. In 2007 and 2008, the dollar experienced a dramatic decline in market value. Americans must open their eyes and see who is responsible for the destruction of the American dollar. The best way to understand the issue and to fix the problem is to heed the advice of the free market economists who have accurately predicted the predicament that we now find ourselves in. These economists recommend a return to sound money. The Constitution states clearly that congress has the responsibility to protect the value of the dollar by ensuring that only gold and silver are money. The Constitution also prohibits the government from emitting bills of credit, unbacked paper money.

Quote (John Adams): “All the perplexities, confusions, and distress in America, arise, not from defects in their Constitution or Confederation, not from a want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation.”

Quote: “The power to regulate the value of money does not mean the federal government can debase the currency; the Framers would never have given the federal government such a power.”

Page 139: The Constitution gave the federal government the power to legally formalize an already existing market definition of the dollar, in terms of gold. It also gave the federal government the power to regulate the ratio between the prices of gold, silver and any other monetary metal. Accept for the during the Civil War, the federal government actually did a good job of protecting the value of the American currency during the nineteenth century. As a result, prices were relatively stable. The Founders had first hand knowledge of the problems caused by paper currency. The government partially financed the Revolutionary War with paper currency. By making the currency legal tender, the government was able to force it upon the population. So much paper money was printed that by the end of the war, it was worthless. This fact explains why most of the states voted to explicitly prohibit paper money in the Constitution.

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