More than any other presidential candidate, Ron Paul stresses the need for the U.S. to save the dollar. Inflation is running rampant and the Fed, along with much of the government, doesn’t seem to care. The emergency meeting of the Fed to lower rates last week, along with the $150 billion economic stimulus package which passed the House in a landslide, are the latest examples of that. Today the Fed is expected to announce yet another rate cut. When will it stop, and when it does stop, what will the state of the U.S. dollar be?
According to Ron Paul’s campaign website, “Today, the federal government burdens us with one of the most dangerous taxes it can impose—the inflation tax. When the federal government finds that it cannot afford its out-of-control spending, and is unwilling to directly tax the public, it resorts simply to creating the money out of thin air.
Inflating the money supply is the easiest form of financing the government. The Federal Reserve, an unelected and unaccountable private organization, pumps more dollars into the economy whenever it chooses. Because the public is forced to accept these bills, the Fed essentially gets away with legally counterfeiting. We cannot possibly expect the government to control spending when it has a blank checkbook.”
Watching the government--and the Fed in particular--during the last month, it seems Ron Paul is right on in his assessment of how things are being run. In my opinion, it is a shame that his ideas have not gained more traction among U.S. voters. Ron Paul only won 3 percent of the vote in Florida's Republican primary last night, and really hasn’t shown well in any of the primaries. Until the citizens of this country stand up to the monetary decisions being made by their government nothing will change.
Sadly, right now what these officials see is the majority of U.S. citizens demanding further rate cuts and the further devaluation of the dollar. It makes sense, though, as America is the land of debtors; the more debt people have (in U.S. dollars), the more they cheer the dollar's decline. For the minority of Americans who are savers rather than spenders, they unfortunately have been and probably will continue to be forgotten and out of luck.
Unless by some miracle Americans get their act together and see that their futures, along with the futures of their children, are at stake here, the dollar will continue its monumental slide. For the savers out there, here are a few pieces of advice:
1) Start paying attention to the monetary positions of your politicians
2) Help make others aware of the issue
3) Get out of dollar holdings. For more info on potential ideas check out our article: Decline of the Dollar Spurs Diversification