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Ron Paul: 6,000 Years of History Shows Gold is Always Money

Ron Paul, former Republican Congressman from Texas and contender for the U.S. Presidency, told Bloomberg television that we are in a currency war and we have been for decades. Paul noted that governments have always competed against each other’s currencies, even under the Bretton Woods agreement. Currencies are a form of protectionism and will make people want to export more.

Paul gave the example of Japan, oft cited with China for its currency, but said that one need only look at the debt the U.S. is buying. While the Bank of Japan claims it needs to defend itself against deflation and decades of slow growth, Paul noted the Bank of Japan’s yen devaluations would eventually lead to further price inflations that are yet to come. He also said investors and citizens will eventually reject the yen and switch to other currencies like dollars or Swiss francs. Eventually, people will move to hard assets altogether as they are losing confidence in paper assets.

It seems that all we have is more debt, Paul said, more printing money, and more government interventions. He added that governments won’t even talk cutting things, they only want to make slight decreases of proposed increases in their budgets.

Paul is a longtime proponent of gold and silver as money, criticizing U.S. monetary policy for the much-feared inflation it could cause in the future. Paul is also noted for displaying a silver coin during Federal Reserve Chairman Ben Bernanke’s testimony before a committee of Congress in which he said silver is money and always has been.

Evgeny Federov, a lawmaker for Putin’s United Russia party, said the more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency. Russia, for example, has for the past decade been on the tack of acquiring gold and using it to bolster economic policy in its version of protectionism.

Ron Paul has often spoken the U.S. and a gold standard, particularly the trouble taking the U.S. dollar off the gold standard in 1972 has caused for our economic dynamics.

Paul is the most visible of the political proponents for what he terms a sound money policy that is a more honest reflection of the wave of investors who have been seeking refuge with returns in hard assets and tangible commodities, specifically gold and silver, since the beginning of the financial crises in 2008.

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