Ron Paul is Describing Freegold

Ron Paul needs to be elected President of the United States. He is the only one that is telling the country the truth, we are on a collision course and our current system of money is going to fail.

Do not be put off by terminology that is improperly used whenever MSM attempts to explain Ron Paul’s position on gold. Nearly always the argument is framed as a “return to the gold standard.” What Ron Paul is describing is not a gold standard where gold is exchanged at a fixed rate with currency. He specifically calls for a “competing” form of money in gold and silver to operate in parallel with paper. He suggests people could “save” in gold and silver.

In defense of MSM, Ron Paul seems to allow the monicker of gold standard to reduce confusion and to dumb down the concept for public consumption. In the process he puts off those of us who know what a gold standard is and why a true gold standard can never work. He could easily say this system is Freegold where gold is used as a reserve asset on both the personal and central bank balance sheet. Specifically, gold is for saving and paper is used for spending and credit. The Freegold concept is really that easy:

1. Prohibit credit creation through gold and limit gold supply to just that of physical gold. No more unallocated gold that can be used to create credit. No futures market where the price of gold is determined by paper contacts to deliver future production.

2. Let the market determine the floating price of gold, where the price is dictated specifically by demand and supply of physical gold.

Over time as Ron Paul suggests, the market will decide what the price is gold and how much capital it attracts from the paper market. Paper currency, and its supplier, will have to compete for capital. This will keep it honest. This is the very last thing the politicians want, restraint, and they will fight the concept until they politically can benefit from the advocacy of such a system.

Want such a system? You had better write in Ron Paul for President. There is no way MSM media or big money will ever allow this man to win the nomination.

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