From the Congressional Record:
Thank you very much, Mr. Chairman, for allowing me to appear before your subcommittee this morning to discuss the feasibility of establishing a gold standard.Absolutely shocking and completely frightening. If Ron Paul predicts hyperinflation in the near future, then dammit, it must be true. Even more shocking is when the speech was given: February 23, 1981. That means that we're 27 years overdue, and that the hyperinflation that Ron Paul predicted in the near future is even nearer.
As you know, I have introduced, and other members have cosponsored, H.R. 7874, which is a comprehensive bill to place the United States on a full gold coin standard within two years of the date of its passage.
I believe such a standard to be not only desirable and feasible, but absolutely necessary if we aim to avoid the very real possibility of hyperinflation in the near future, and economic collapse.
BTW, what about the rest of the article? Here's a basic summary of what Ron Paul has to say:
- Myth #1: There isn't enough gold. False. There will always be enough gold, as long as we put our faith in the invisible hand to provide it.
- Myth #2: A gold standard would enable Russia and South Africa to hold us hostage. False. There's a rumor that Russia already sold a lot of gold to Saudi Arabia, so we would actually be held hostage by the Middle East. Also, the only reason why gold is considered valuable is because of fear and panic, so if we return to the gold standard, than the fear and panic would end and gold wouldn't be valuable anymore and Russia wouldn't be in a favorable position, even though the value of gold was the very reason I advocate a return to the gold standard in the first place.
- Myth #3: Gold causes depressions. False. Actual statement: "Were we to establish a gold standard, we would have to pursue a course that would not result in deflation and would not cause a depression. We would redeem at the market price for a period of one year the greenbacks we have printed, and then cease redemption, allowing the gold coins we have put into circulation to function as our money of account. If we proceed to a gold standard in an orderly fashion, such as I have proposed in my bill H.R. 7874, then there will be no depression. A gold standard cannot be achieved if we do not end our budget deficits as well. The standard must be accompanied by tax cuts, an end to the printing of paper money, and a significant reduction of federal regulations if we expect a restoration of a sound economy. Unless we are committed to all these things, even the establishment of 100 percent gold coin standard cannot stop our descent into economic chaos." Dear readers, feel free to cite this excerpt the next time you hear Ron Paul insist that he is only advocating for "competing currencies.
- Myth #4: Gold causes inflation. False. It's almost as bad as the people who criticize Michael Bay for being too intellectual for audiences.
- Myth #5: Gold would be speculative. False. After all, how could the invisible hand ever lead to economic instability?