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It is not Gold in and of itself that excites me, but
the many benefits of sound money. Another benefit is financial security.
Can sound money give you financial security? There is something very
comforting in knowing that what you earn today will retain its purchasing
power in the years to come. Indeed, the same silver dime that bought a loaf
of bread in the 1960s can still buy a loaf of bread with its precious metal
content – which is worth about $1.00 today.
An ounce of Gold has always been about evenly exchangeable for a finely
tailored men's suit, which these days is roughly $800. And in these days of
fluctuating gas prices, when priced in gold, oil has been stable.
Meanwhile, since the creation of the Federal Reserve, the Fiat Dollar has
lost 94% its purchasing power. The erosion of purchasing power rapidly
accelerated when it was completely Uncoupled from Gold in 1971.
This sort of fluctuation in the medium of exchange creates a lot of
uncertainty in the marketplace and necessitates that you either take
extraordinary defensive maneuvers, or face
financial ruin. Trusting in government for financial security in retirement is
not a safe option.
Indeed, a recent study by the Consumer Bankruptcy Project shows that
bankruptcies among those aged 75 and older has more than quadrupled since
1991. This represents wealth and savings that have been eroded by inflation,
and trust in entitlement promises that were more fantasy than reality. Even
with the pittance that social security pays to seniors, it is bankrupt and
bringing the economy to its knees. It is no wonder that many in the younger
generations want no part of it, and they should not be forced into a failed
system.
On the other hand, holding physical Gold can defend against aggressive
government monetary policies that threaten to inflate away the value of your
life savings.
During the hyperinflation in post WWI Germany, what used to be a comfortable
nest egg was suddenly the value of a postage stamp. If one held just a
portion of their savings in precious metals, the crisis was greatly softened.
Because Gold will never be worth nothing, even if the exact price fluctuates.
There is a famous photograph, however, of a German woman during this time
period burning piles of tightly bound banknotes to keep warm.
Imagine if the money you earned had honest, stable value, or even appreciated
like an investment! No such special measures, like converting dollars to
Gold, would be required to ensure that your savings would sustain you in your
golden years.
That is the way it could be and is supposed to be. However, the government's
thirst for power will not be easily, or cheaply, quenched. Fiat currency is
one tool governments have to extract wealth quietly from the working class.
It is time for the people to wake up to this ruse and look to the
Constitution to restore sound currency.
Ron
Paul
www.house.gov/paul
Congressman Ron
Paul of Texas enjoys a national reputation as the premier advocate for
liberty in politics today. Dr. Paul is the leading spokesman in Washington
for limited constitutional government, low taxes, free markets, and a return
to sound monetary policies based on commodity-backed currency. For more
information click on the Project Freedom website.
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