It’s no secret that former Congressman Ron Paul is a fan of free market competition in the currency sector.
For decades, he has been a staunch advocate of sound money and has called for the abolition of the Federal Reserve.
In a tweet that he posted on April 9, 2022, he offered a hot economic take on monetary policy. He tweeted, “Government forbids competition in currencies. Why is that? Is it because The Fed’s dollar would quickly lose the competition with gold, silver, and perhaps even Bitcoin? Government can’t create gold out-of-thin-air (like it does with dollars) to fund its relentless expansion.”
Government forbids competition in currencies. Why is that?
Is it because The Fed's dollar would quickly lose the competition with gold, silver, and perhaps even Bitcoin?
Government can't create gold out-of-thin-air (like it does with dollars) to fund its relentless expansion.
— Ron Paul (@RonPaul) April 9, 2022
In an episode of the Ron Paul Liberty Report that he recorded with his co-host Chris Rossini on April 8, Paul discussed how the days of the dollar remaining as the world reserve currency are likely numbered. The former congressman argued that the “dollar is a mess.”
Paul observed that there are “interesting things happening right now” with the US’s warfare/welfare state still intact, alongside Russia’s invasion of Ukraine. In the latter case, the US is trying to get into a proxy conflict with Russia by sending lavish military aid and imposing sanctions on it. However, the US’s policies towards Russia may backfire.
Paul noted that Russia’s invasion may not just be some crass power grab or even a military incursion for the purposes of resource extraction. He believes that this invasion is a move to totally overturn the dollar monetary system.
Paul argued that Russia, “ironically” is “at the forefront” of unraveling the fiat monetary system. Rossini added that Russia is doing so by tying the Ruble to gold and natural gas.
Paul, unlike most politicians and commentators, understands the big picture, structural problems in political affairs. During the interview, he called attention to how the West’s expansion into areas that have traditionally been in Russia’s zone of interest over the past few decades have culminated into the present geopolitical unrest. The West’s interference in the Euromaidan crisis of 2014 where the US and its Western allies took advantage of the domestic unrest to destabilize Ukraine and install a more Western-friendly government was one of the most significant events that heightened tension between Russia and the West.
With the West continuing to ratchet tensions and not address any of Russia’s legitimate security concerns, Russia decided to take matters into their own hands and effectively break the international system by invading Ukraine.
The US’s response has been bone-headed to say the least, through its heightened military aid to Ukraine and imposition of heavy sanctions on Russia. Paul contended that these types of sanctions “tend to backfire.”
When the conversation shifted to the topic of cryptocurrency, Ron Paul admitted that he doesn’t understand the cryptocurrency sector. However, he’s not keen on government regulation in said area. He stressed the need to “keep the government out of it.” Rossini agreed and said that the market should decide what the most popularly used currency should be.
While we’re living in a time of chaos, there’s a silver lining. The current system breakdown is allowing people recognize that the many sacred cows that have been allowed to freely graze are disposable. Now, many people are ready to slaughter these cows and consider monetary alternatives such as gold and cryptocurrencies like Bitcoin.
This moment in international economic history is one where liberty conservatives can stand out and offer an alternative to the present fiat order that has enabled all sorts of political misbehavior such as big spending and never-ending wars. Let’s not pass up on this opportunity to completely redefine the monetary system.
