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Last week I discussed
how sound money contributes to peaceful relationships around the world.
It is not gold, in and of itself that excites me, but the many benefits of
sound money. Another benefit is financial security.
Can sound money give
you financial security? There is something very comforting in knowing
that what you earn today will retain its purchasing power in the years to
come. Indeed, the same silver dime that bought a loaf of bread in the
1960's can still buy a loaf of bread with its precious metal content –
which is worth about $1.00 today. An ounce of gold has always been
about evenly exchangeable for a finely tailored men's suit, which these days
is roughly $800. And in these days of fluctuating gas prices, when
priced in gold, oil has been stable. Meanwhile, since the creation of
the Federal Reserve, the fiat dollar has lost 94f its purchasing power. The erosion of purchasing power rapidly accelerated when it was
completely uncoupled from gold in 1971. This sort of fluctuation in the
medium of exchange creates a lot of uncertainty in the marketplace and
necessitates that you either take extraordinary defensive maneuvers, or face
financial ruin. Trusting in government for financial security in
retirement is not a safe option. Indeed, a recent study by the Consumer
Bankruptcy Project shows that bankruptcies among those 75 and older has more
than quadrupled since 1991. This represents wealth and savings that
have been eroded by inflation, and trust in entitlement promises that were
more fantasy than reality. Even with the pittance that social security
pays to seniors, it is bankrupt and bringing the economy to its
knees. It is no wonder that many in the younger generations want no
part of it, and they should not be forced into a failed system.
On the other hand,
holding physical gold can defend against aggressive government monetary
policies that threaten to inflate away the value of your life savings. During
the hyperinflation in post WWI Germany, what used to be a comfortable nest
egg was suddenly the value of a postage stamp. If one held just a
portion of their savings in precious metals, the crisis was greatly
softened. Gold will never be worth nothing, even if the exact
price fluctuates. There is a famous photograph, however, of a German
woman during this time period burning piles of tightly bound banknotes to
keep warm.
Imagine if the money
you earned had honest, stable value, or even appreciated like an
investment! No such special measures, like converting dollars to gold,
would be required to ensure that your savings would sustain you in your
golden years. That is the way it could be and is supposed to be. However,
the government's thirst for power will not be easily, or cheaply,
quenched. Fiat currency is one tool governments have to extract wealth
quietly from the working class. It is time for the people to wake up to
this ruse and look to the Constitution to restore sound currency.
Ron Paul
www.house.gov/paul
Congressman Ron Paul
of Texas enjoys a national reputation as the premier advocate for liberty in
politics today. Dr. Paul is the leading spokesman in Washington for limited
constitutional government, low taxes, free markets, and a return to sound
monetary policies based on commodity-backed currency. For more information
click on the Project Freedom website.
Published with the
authorization of Dr. Paul.
Copyright Dr. Ron Paul
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