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Is our current economic policy ”working” for all Americans?

*Texas Straight Talk, by Congressman Ron Paul, September 7, 2010

”As more Americans are added to the unemployment rolls, the tax base from which to hand out their benefits is shrinking.  Still, businesses are being taxed and regulated out of the market, adding to the problem.  What solutions are put forth?  More government spending – even as each citizen’s portion of the public debt is over $43,000 and expected to increase by $250,000 over the next 40 years.

No, this economy is not working for these people. But current economic policy does ‘work’ for some people.  For example, it has worked out very well for certain bankers and large corporations, who took on too much risk and got themselves in hot water, and were declared ‘too big to fail’ which is really a euphemism for ‘friends in high places.’  It works well for large, well-connected military industrial corporations, who can always count on perpetual war and conflict to keep them in business.  It also works for those on the government’s payroll, which is increasing as the tax base is decreasing.

So where does the government get all this money even as its most obvious stream of revenue dries up?  How can it keep spending seemingly indefinitely?  Once it steals as much from you as it can get away with through taxation, it steals even more from you through what central bankers like to call quantitative easing, which is more or less the same thing as counterfeiting.  When the money is no longer based on a finite quantity of something of value, like a store of gold or silver, the amount of money in circulation is not limited by anything but the restraint of those in control of the printing presses, in our case the Fed and the US Treasury.  When increasing pressure is put upon them by irresponsible politicians, it is predictable that out of thin air, more money will be created to satisfy the insatiable appetites of those on political spending sprees.  As money becomes more plentiful, it becomes less valuable, and the average citizen suffers again as the value of their savings evaporates.  It has happened over and over in history, and what usually follows is the total debasement of the currency, hyperinflation and chaos.”


*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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