I was reading a story in the New York Times Magazine today and saw this in the comment section below. It succinctly sums up why we need a complete overhaul to our monetary system, before its too late.
We should all hope that Ron Paul is not only nominated, but elected President, for if not then this country is in for an extremely hard road ahead due to the pressing issue of the failing fiat monetary system. If Ron Paul is not elected then the next President, either Republican or more probably Democratic, will only continue allowing the Federal Reserve creating money out of debt until the entire system fails under the mounting pressure of an irreversible debt which will rapidly require far more service than the economy can continue to produce.
Dr. Paul is the only candidate that even brings up the issue of our failing monetary system.
Consider this: a person making $32,000 per year today has the equivalent purchasing power of $5,907.40 1970 dollars. So, the same person making $15.38 per hour today is equal to making $2.84 per hour in real purchasing power in 1970 dollars. It is not the price of goods and services that have risen so much, but the purchasing power of our dollar that has been so drastically reduced. Our standard of living has been effectively reduced through fiat money inflation.
Is there any wonder that poverty is becoming rampant? The government has no other choice but enforce minimum wages in order to keep the working poor at some level of subsistence. At the current $5.85 per hour a person has the same 1970 purchasing power of $1.08 per hour, at 40 hours per week that person is effectively making $43.20 per week to make ends meet.
What are we waiting on, to become serfs of the State?
The fiat system has a finite lifespan and will terminate due to the fact that every single fiat note is nothing more than a legal notification of a debt obligation carrying on top of that debt an interest obligation. It is simply mathematically impossible for such a system to maintain viability for an extended period of time before it collapses under the weight of the debt that both maintains it and must be serviced by it.
We will begin to notice that all the patches and band-aids the Federal Reserve slaps on the economy no longer do the trick as we approach the fiat systems lifespan termination point. Everything we now place our collective faith in regarding the economy and our financial futures are hinged upon a system that is failing like all fiat systems before it have. Every single Federal Reserve Note is borrowed into existence and the expansion of monetary circulation is in direct proportion to the underlying debt on which it was created however, on top of all that debt is the attachment of an interest obligation which only adds to the pressure and shortens the lifespan of the entire system. All your investments, your pensions, your 401ks, your savings, your insurance, government bonds, all government programs and all commerce is completely built upon a fiat monetary system that will terminate in the near future and there is absolutely nothing that the government or the Federal Reserve can do within that system to stop that collapse. It will take a complete scrapping of the entire system and only Dr. Ron Paul has an inkling of what it is going to take to accomplish such a transition.
By 2012 we will all wish that it was Ron Paul in the White House instead of the establishment darling candidate that is most likely going to “win” this election.
From Republicae on January 21, 2008 3:09 PM in the story here.