Thursday, August 11, 2011

Rep. Paul slams Fed for steps risking US dollar's reserve status

People just don't grasp that the dollar's reserve currency status is the only thing that keeps it from hyperinflating to total worthlessness, as has happened to every other country in history who has followed the same reckless economic policies as our government and banking system. Once that status is lost, and it will be, because we keep inflating the dollar beyond the massive global demand, causing it to weaken in value, the gates of hell will be thrown open, as the dollar will have a mega-surplus in supply and no global demand. Surplus plus no demand equals plummeting value. It's basic economic law, and it will destroy everything you have it you keep yourself tied to the dollar.

Life's necessities, especially in this modern age, are free as the air you breathe. But if you insist on paying for them, out of laziness, then you will suffer when the means you use to buy them becomes worthless. And I'm not the only one saying this, nor is this the opinion of fringe loons and apocalypse conspiracy theorists. As an example:

    The Hill -

    The Federal Reserve has taken another step to end the dollar's reign as a global reserve currency, Rep. Ron Paul (R-Texas) said Wednesday.

    Paul, a 2012 presidential candidate and frequent Fed critic, criticized the central bank's Tuesday announcement that it would keep a key interest rate at or near zero percent for another two years.

    "I think what we're dealing with is the end of the dollar reserve standard, and that's a world-wide phenomenon," Paul said on CNBC.

    The Fed on Tuesday did not announce a third round of quantitative easing as some had hoped it would, which could have led to more Fed purchases of Treasury debt and a flood of new money, something Paul has criticized in the past. Still, Paul implied that the Fed's decision to keep interest rates low through mid-2013 is a supplemental strategy that will push the dollar down, and said the recent surge in gold prices is a sign of that.

    "Actually, gold prices don't go up," he said. "It's just that the dollar goes down, and people are anticipating the dollar's going to continue to lose its value, so we can anticipate there's going to be a lot of price inflation down the road."

Read it all.