Ron Paul warns of sudden Dollar Collapse!
Silver Stock Report
by Jason Hommel, November 19, 2007
Ron Paul, Republican Congressman from Texas, running for President of the U.S., was interviewed today by Al Korelin at the San Francisco Gold conference.
A few highlights from the interview:
Ron Paul is very concerned about the declining value of the dollar, because we have internationalized inflation by exporting dollars, but nations are beginning to reject the dollar.
The consensus and popular theory is that they are rejecting the dollar slowly, and that's somehow ok.
Ron Paul noted that it "never happens that way in history". Typically, paper currencies crash suddenly!
Ron Paul said that what is most important now is not the CPI (consumer price index) or M3 (money in the banks): but rather, it's value of the dollar on international exchanges.
Events now will be worse than in 1979-80, when gold spiked up to $850/oz.
(I note that while the CPI inflation adjusted high price of gold might be about $2500, the money-creation inflation-adjusted high price of gold is now over $6000/oz., since M3 in 1980 was $1.8 trillion and is now nearly $13 trillion. But I wonder how much higher the gold price could go if China decides to spend their foreign exchange reserves of $1.4 trillion dollars on gold! I suppose it could rise above $30,000/oz!)
How does Ron Paul feel about us deviating from the Constitution?
It could lead to economic collapse, which can undermine liberties. But people can protect themselves with silver and gold.
Before Ron ran for President, and raised $4 million in one day; nobody ever cared about him grilling the Fed.
Recently, in response to Ron Paul's questions, Bernanke, while seeming
flustered and off guard, said a declining dollar would not hurt
Why is Ron Paul so unique among the members of Congress?
Ron Paul said that he rest of Congress is not malicious; instead, they just don't care, or understand, or think [the money issue is] important!
And those who do, shut up, or lie!
Ron Paul admits that the government manipulates the gold price to stay low!
The big news this week in precious metals circles was the FBI raid on the Liberty Dollar on 11-15, which was minting and selling Ron Paul liberty dollars.
You can read the Fed's 38 page "seizure warrant" here:
The Feds seem most concerned about the fact that the Liberty dollars are marketed as if they are minted by the U.S. and look like U.S. coinage.
The Feds also make issue, as I have, about the marketing claim that the Liberty dollar is "100% backed". A $20 note, is, indeed, 100% backed by one ounce of silver, but silver is not valued at $20, so the silver pieces are generally overvalued, which is why I have never endorsed the Liberty dollar.
Many people in the precious metal community are concerned that this is a Federal attack on the entire concept of ownership of silver and gold, or that this is a Federal attack on Ron Paul.
But I sincerely believe it is neither an attack on Silver nor on Ron Paul. Silver and gold are still being bought and sold in over 4000 coin shops across the nation, and Ron Paul is not affiliated with the Liberty Dollar.
The Feds have been investigating the Liberty dollar since before Ron Paul announced he was running for President. About a year ago after the Feds issued a complaint against the Liberty dollar, I begged Bernard von NotHaus in an email exchange to take the government's complaint against him seriously, and to change the look of his Liberty dollars to make them look significantly different from U.S. coinage, and to market them differently. He did, with the new Ron Paul Liberty dollars!
But apparently, the change to "Ron Paul" coins, which put the likeness of a living man who is running for President on the coins, which is against the code for U.S. coins, which requires that only images of dead people be put on U.S. coins or notes, was not sufficient to ward off the recent FBI raid. On the other hand, perhaps that will be a key part of von NotHaus's defense!
The Fed's seizure warrant does not make any mention of the new design of the Liberty dollars bearing Ron Paul's likeness.
A typical one ounce Ron Paul $20 silver Liberty is now selling on ebay for about $150 to $200. If you own any of these coins, perhaps you sell them now, and take advantage of the hype, and use the proceeds to buy 10-15 more ounces of silver at your local coin shop.
My tips on how to buy silver:
To donate to Ron Paul's campaign: