But that's how EVERYbody does it. Euro? Not backed by anything. Yen? Not backed by anything.
He's preying on your ignorance on the topic. And I'm not saying your stupid, but that you don't have an understanding of how the current system works. He says "the dollar isn't backed by anything! Its worthless"! And you say "yeah, he's right, that makes no sense" When in reality it is much more complex than that.
Seems to me we've gotten along just fine that last 35 years since quitting the Gold standard. Leaving the gold standard is not a magic pill that ruined our economy. I'd argue that since we left the gold standard we've had some pretty good runs on the economy. Anybody want to go back to 1972 economic conditions? Cut govt spending, get taxes down on corporations and individuals, and cut excessive regulation and you'd fix everything that's wrong.
The thing hurting the value of the dollar isn't the lack of backing, but the fact we're borrowing so heavily.
[QUOTE][You can't just print up a bunch of paper that says 'one dollar us tender' on it, and expect the economy to be just fine./QUOTE] I agree. So its probably a pretty good thing that's not how things are done here. Its called Monetary Policy
, and the value of money is managed by controlling the supply of money (how much you print, plus how expensive it is to borrow money (interest rate).
Monetary policy is the process by which the government, central bank, or monetary authority manages the supply of money, or trading in foreign exchange markets. Monetary theory provides insight into how to craft optimal monetary policy.
Again, Ron Paul is taking advantage of the fact that w/o a knowledge of economics and in particular monetary policy, the common sense answer is that its a bad idea to just "print money w/o a backing resource".
Heck, all gold is is another form of money. Its value is set by the market too. What happens if we go back on the Gold standard and the value of gold drops like a brick? Does that mean the dollar drops too?
Like I said, I agree with Ron on a lot re: going back to the Constitution and his tax/spending positions. But his foreign policy is naive and this Gold standard thing is just silly.
Bottom line is I can't vote for him because I cannot trust we won't be in more danger from the terrorists if he's elected, because he clearly doesn't understand the nature of the threat. Even if he were elected I don't think there's a legitimate chance of going back to the GOld Standard. Its just like Huckabee's fair tax. National sales tax and no IRS? Sounds great but it is never going to get through congress, period.