October 2, 2022

Ron Paul’s Call For Gold Backed Currency Would Value Gold At $54,300 Per Ounce

FORT KNOX

Ron Paul said today that the creation of a sound U.S. currency, “backed by gold or some other commodity respected by the market” was the most important first step to create new jobs and encourage capital investment in America.

In an article published on the Ron Paul website entitled “The Keys to Economic Growth“, Ron Paul argued that the U.S. economy was in “terrible shape” and that the trillions of dollars borrowed and printed by the U.S. government have done nothing to turn things around.  Rep. Paul noted that the real unemployment rate was closer to 20% rather than the officially published rate of 9.1% and that real job growth would only come from private capital financing existing business or entrepreneurial growth. New job growth will not occur, said Ron Paul, if we continue to punish those who accumulate capital needed for business expansion.

Ron Paul listed four essential steps that must be taken to turn around the American economy through new job creation.

  1. The U.S. economy cannot be restored, according to Ron Paul, until we “prohibit the Treasury and Federal Reserve from essentially creating money and credit from thin air.”  A currency that is rapidly being debased will not attract private capital.  In order to ensure a sound currency, the dollar should have its value legitimatized via gold or commodity convertibility.
  2. The extreme regulatory burdens on business have greatly inhibited job growth.  The vast bureaucracies and compliance nightmares being created by Obamacare and the Dodd-Frank Act have served to choke off business growth and new jobs since businesses cannot cope with “unknowable regulatory compliance burdens.”   Rep. Paul said it is time to “start shrinking the federal registry.”
  3. The trillion of borrowed dollars spent on foreign wars has reduced our economic growth by sapping the private sector and increasing the Federal debt. Rep. Paul declared that “There is no point in debating a foreign policy we cannot afford.”
  4. According to Ron Paul, the U.S. tax system needs to be revamped to allow U.S. foreign income to be repatriated tax free to the U.S. to allow the funds to be deployed in the domestic economy.   Ron Paul also said it would be better to simply “abolish the income tax altogether.”

Ron Paul noted that free market capitalism and respect for property rights was essential in allowing the creation of U.S. wealth.  The poorest nations on earth routinely demonstrate hostility to free markets, private property and the rule of law, with the predictable result of widespread poverty.

Ron Paul’s attempt to preserve the integrity of the U.S. dollar by backing the currency with gold has little chance of succeeding.  A gold backed currency would prevent Congress and the Fed from running deficits and printing money, something they would fight to avoid at all costs.

It is interesting to speculate, however, on what the value of gold would need to be to in order to back the massive debts and obligations that the U.S. government has piled up.  The United States has issued the most amount of debt of any nation on earth.  Ignoring the trillions in unfunded and off balance sheet obligations, the United States has official debt of $14.2 trillion dollars outstanding, including both marketable Treasuries and intergovernmental debt.

If the U.S. used its official gold reserves of 261.5 million ounces to back the $14.2 trillion of U.S. debt, gold would need to be valued at $54,300 per ounce.

 

 

 

Comments

  1. Or… just print more money. Money = social control. Its meaningless… so Gold is clearly the solution here.

  2. Baroni Parson says

    Small price to pay in my humble opinion for the damage that has been done to the currency. You can’t just continue to print more money. We have to turn off the printing press and actually deal with the consequences of the poor economic policy of years past. I NO LONGER WANT MY CURRENCY DEBASED! Backing the currency with real gold and silver will reign in government. Regardless if Congress will back it or not, it is the right thing to do.

  3. George Washington says

    Constitutionally, legislatively, and morally, Ron Paul has no equal. His 22 year voting record speaks for itself.
    Mr. Paul has not survived in politics for 22 years and maintain the ethics and morality he has by being anything other than stellar.
    If You refute the above comment, then I please invite You to listen to him speak about key issues. It is amazing how well he comes across because he doesn’t have to remember lies like other politicians. He understands what is happening in the world and knows how to apply the basic principles of liberty to achieve the real change that America so desperately deserves.
    American to American we are all on the same team. So I present Mr. Ron Paul as my Candidate for 2011 and invite anybody to meaningfully and respectfully debate why he is not the best for American and its people in 2012.
    Ron Paul = A real change, not for special interest, but for America’s Interests!
    Thank You for Your time
    Ron Paul 2012

  4. He isn’t saying pay the debt off using all the gold. Where did you get that ridiculous conclusion

    • What Ron Paul said was perfectly clear.
      When people who own US Treasury debt sell their securities, it would be comforting to know that the paper currency received in return is backed up by more than a printing press. The Fed has been monetizing the debt on a massive scale and has become the biggest holder of US debt securities.
      China and large US bond buyers such as Bill Gross at PIMCO have slowed or stopped their purchases of US debt securities. If the paper currency received when bonds are sold was backed by something of value, such as gold, the buyer’s strike on US debt would not be occurring.
      See Ron Paul’s interview on Fox, “Turn Off the Printing Presses, Allow the People to Keep What They Earn.”

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  6. weneedhelp says

    “backed by gold or some other commodity respected by the market” I just love the disreguard for “some other commodity” part of the equation. Is goldandsilverblog run by Faux “news”

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