Re: Long article on the dollar -- but worth reading


"Rumpelstiltskin" <PleaseDoNotReplyByEmail@xxxxxxxxxxx> wrote in message
news:u9ehv11mh9d2sit0rgvjv1h8pnb0tsb86g@xxxxxxxxxx
On Sun, 19 Feb 2006 08:18:59 -0500, Gary James <gnjames43@xxxxxxxxx>
wrote:

The End of Dollar Hegemony

by Ron Paul

Before the US House of Representatives, February 15, 2006


Yes, that's the article sent to me by email, from which I quoted
just the last paragraph in a thread with MichaelC elsewhere.

Well, I have a couple of problems with Ron Paul's article. He's a good man,
an honest conservative, but hung up on gold mysticism. It's just a
commodity, like any other commodity. Traditionally, it has been used as the
medium of exchange, but that doesn't confer magic upon gold. I suppose that
in the remote past it worked for exchange because the amount of gold
increased in a very rough proportion to the increase in real economic
growth. Throughout the 19th Cent at least, and I suspect in other times,
there were frequent problems with gold not increasing enough to match
economic growth. Hence there were frequent bouts of "irrational exuberance"
with frequent bouts of depression.

I think we cannot use gold for exchange because the amount of gold we have
is insufficient for our actual economy. Our economy is worth more than our
gold.

Also, Paul's interpretation of our history is ok, but not quite enough.
Somebody, I forget who, said nations do not have morals, they have
interests. That's true for others and it's true for us. I get the feeling
that Paul thinks our national policy should be morally based rather than
interest based. But maybe I didn't read him carefully enough.

Hap


.

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