Understanding Ron Paul..

Credit: Nathan F

 

 

 

 

 

 

 

 

A friend of mine has written an article that gives a great break down of Ron Paul & some of his key beliefs. He’s agreed to let me share it with you all. I sincerely hope you will take a few moments to read it.

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Author: Nathan F

It’s understandable that we all have our certain beliefs and opinions, and it’s important that we respect that. But it is also equally important for those of you that disagree with his beliefs and opinions, to at least respect those decisions instead of calling him a kook, idiotic, racist, ignorant, etc. without even backing up your claims. This article is merely here to help you understand a little bit better where he is coming from. But it’s important to understand that no one is perfect, and trying the same thing over and over again in terms of foreign policy, monetary policy, etc. will not change anything.

For those of you that call Ron Paul a racist, it’s understandable why you might think that, but what you need to keep in mind is everyone slips up and actually says something that goes along with their views during a debate, a speech, or simply in an interview with the media. I challenge you to find video proof of him saying something racist. The articles you may be referring to have been debunked. Dr. Paul has disavowed the parts considered controversial, but he takes full responsibility for what was published. The author of these controversial articles, which is very, very few amongst several, has been identified as James B. Powell. The full eight pages of this article actually match closely to the other so-called “racist” newsletters. But what’s important to remember is that every single candidate has been called racist in this election cycle. Herman Cain was called racist because he said that blacks were brainwashed to follow the democratic party. Mitt Romney has been called racist because he is Mormon and because he refers to President Obama by his first and last name. Newt Gingrich was called racist for saying the Palestine ethnicity was non-existent and instead made up. Michelle Bachmann was called racist because she believed African Americans to be better off during slavery because they had both their parents, but she says she was taken out of context. Rick Perry was called racist for a name spray painted on a rock. Rick Santorum has been called racist for saying blacks shouldn’t receive welfare. President Obama has been called racist for the alleged belief that he doesn’t like white people. So I invite you to find an instance of Ron Paul saying something racist. Good Luck.

Some of you may like all of Ron Paul’s ideas except for his foreign policy. There is actually an ad on youtube that explores our foreign policy being enacted upon us by Russia or China. Suppose for a minute that they had bases in Texas. Imagine that they can do whatever they please and bomb site after site in Texas. Imagine if the people of Texas decided they have had enough and start to revolt. Imagine if the Texans were considered terrorists by the Russians or Chinese. Sure, it’s purely hypothetical, but NOT EXACTLY. We are currently doing this to Iran, after doing it to Afghanistan and Iraq. Suppose for a second that you have an arsenal of guns in your home, except you have had these guns for years. Imagine that rumors start arising that your neighbors are looking to purchase a gun. I suppose you wouldn’t like that one bit if you supported what is going on in Iran. Whether you like it or not, people will find ways to get what they want. Is Iran close to getting a nuclear weapon? Maybe. But it’s not certain. No one knows for sure how close they are to getting a nuclear weapon. But this irrational fear that if they get a nuclear weapon, they are going to destroy Israel or the US because they are Arab, and therefore are terrorists, is absolutely ridiculous. Israel has 300 nukes. We have an absolutely ridiculous amount. Again, back to the previous point. Iranians are actually not Arab to begin with; they are Persian. Just remember that there really is no such thing as being safe. You can always be careful, but the idea that you can control the outcome of everything is one of pure idiocracy.

Consider this last point: Many people say they dislike Ron Paul’s “foreign policy.” They seem to think for some reason that he wants to turn our back on Israel and ignore Iran. This is simply not true. He believes that we should stop providing aid to all countries for political purposes. For example, we give Israel billions of dollars in aid and then turn around and give their adversaries billions of dollars more in aid. We destabilize regions when we overthrow their “goverment regimes” and install puppet governments only overthrow them again years later. Ron Paul is the only candidate that acknowledges the fact that our actions around the world have consequences, or “blow back.” For example, the 9/11 terrorists were from Saudi Arabia. They repeatedly stated their reasoning for attacking America was because of our occupation in the “holy lands” of Saudi Arabia. However, Americans were told they attacked us because of our prosperity and freedom.

This is simply not the case.

Some of you think his economic policy will bankrupt the United States. But I guess $15 trillion dollars of debt isn’t considered bankrupt. So consider the following for a moment:

When supply is greater than demand, prices are high. Mass production puts supply greater than or equal to demand and the price simply goes down. If there’s only one computer in America, and everyone wants to use it, it will cost a lot to own that computer. But once we have factories churning out more computers than Americans want, the price is much much lower. The same idea applies to just about any technology new or old: Cars, LCD TVs, blu-ray players, etc. The price goes down, but this is not deflation.

Depreciation is when you buy a car in 1998 and the same car has a lower value in 2012 because of the actual wear-and-tear from consistent use, as well as new products being technologically superior. If I bought a CRT television in 1980 and didn’t open it until today, it’s value would still depreciate because people want an HDTV. Again, the price goes down, but this also is not deflation.

Inflation/deflation is evaluating your dollar against a fixed commodity. For example, crude oil, gold, land, and milk are the same today as they were in 1970. Suppose you bought an ounce of gold in in 1970. Functionally, it would be no different than if you bought that same ounce of gold in a store today. But in this case there would be a difference in price. If you pay more for an ounce of gold today, the only reason would be because the US dollar is or could be worth less than it was in 1970.

How can the dollar oscillate in worth? Simple: Quantity, discernment, and rate.

Let’s look at quantity first. The more dollar bills there are, the less scarce they become, and the less value they become. This is the fundamental nature of Paul’s argument; that the government endlessly prints dollar bills to pay off its debts/entitlements/bureaucrats/wars/foreign aid. As a result, each that money we have stowed away in our rainy day funds become worth less than it was the previous year, thus making it harder to purchase goods. The government takes money away from us in taxes, and then takes value away from our remaining money through inflation. Using the gold standard would order, by law, that each dollar bill should represent a certain amount of gold in the government’s vaults each and every year. We could only have as many dollars as there is gold to back them. So, the quantity would stay the same over time.

Human discernment is what contributes to market bubbles. So when we see a chart of the price of housing or technology stocks rise, we assume it will continue to rise after we get in and assume we’ll be smart enough to get out before its value skyrockets the opposite direction. It’s not our first impulse to try to evaluate what the real value of the benefit is; instead we fear that if we don’t get in right now, we’ll miss the opportunity. On the other hand, we have panic. Suppose we see a line of people pulling their money out of our bank. We also get in line out of fear that the bank is shutting down and our savings account will be gone. Conversely, if our stock slips more than we think it should, we all pull out, and it absolutely falls apart.

Here we will look at the rate at which money flows and how it affects the economy. Suppose 20 people were in a town and the only currency was a single quarter. If every time someone received that quarter they immediately went to one of the other town folk and purchased something, the quarter would flow very quickly and they would each receive a lot of goods and/or services from each other. Now suppose one man decided that when the quarter came to him, he was going to horde it. Maybe he liked the thought that he alone had all of the power because he had the quarter, or maybe he was fearful that one day he would desperately need it and couldn’t afford to give it up. But whatever the case may be, nobody is making goods and services for each other because the rate of currency stopped. Therefore, the value of that quarter is worth more, because it shows up less. One of the other town folk may offer to build a house for that quarter, just to get it from the guy holding it. In a real economy this is what happens when people stop spending, such as in the Great Depression. Everyone was afraid, so they spent as little as possible. Even though the quantity of dollars was the same, and they were on the gold standard (but the Federal Reserve was enacted before then), they became rare due to low rate.
This is generally why economists consider deflation to be a bad thing. If currency rate slows down and the value of the dollar starts rising, then a normal person thinks, “Why buy a car today for $40,000 when I could buy one next year for $20,000?” If everyone is saving money, and no one is buying things, then no one needs to make things. Nobody is working, which is a depression.

If, on the other hand, the value of the dollar is dropping, which is inflation, then a normal person wants to spend it before it loses even more value. If inflation is like it is now, you take your paycheck to the store immediately after you receive it and buy as many groceries as you can, because next week you would only get half as many. Employees would need a raise every week and it’s impossible for a bank to make a loan because the amount you write it is for is going to be small change when the borrower pays it back.

Sources: Ben Swann’s Reality Check

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