Here are related issues which can accurately be called ‘elephants in the living room’ of our U.S. government; I believe that only Ron Paul has the correct approach required to tackle these issues of mounting importance… the US National Debt and the value of the dollar.
At 9 Trillion the US Debt is getting to the point where only massive inflation of the US dollar may correct the current course (IE: pay back the debt with dollars that are worth a lot less than the value at the time this money was borrowed). This is due in part to our voting record as citizens, and the spending habits of US politicians especially in the last decade. What does a central bank do to keep the nation’s Federal Government afloat? Print money, lots of money…
Speaking of printing presses… the falling U.S. dollar has seen a few headlines in the news recently, perhaps because the financial markets and Wall Street pay close attention to the value of the dollar. The recent downward trend of the dollar could be the tip of a very large iceberg, but you won’t read that in the newspapers.
The press seems reluctant to report on the minor Republican candidates like Ron Paul, and the long-term threats which could unravel our country’s economic system. The recent increase in the ceiling of the US Debt, for example… just type “9.815 trillion” in Google under the “news” listings … only 4 entries for the new US debt ceiling… I guess we in the US would rather hear about Britney Spears than issues which effect future generations?
Perhaps we don’t hear much about “debt monetization” outside of Macro Economic courses (or fringe-right circles) because we need a crisis to wake us up? These are issues we may want to pay attention to because they will definitely have a much larger impact than the recent “sub-prime financial crisis” that we’ve all heard so much about in the news recently. I hope I’m wrong however I’m a bit of a futurist so mark my words on this.
What will happen if (or when) China, Russia, and perhaps other countries abandon the dollar in favor of, say, the Euro? It’s like a financial ‘bomb’ that will shake our nation. (see http://wnd.com/news/article.asp?ARTICLE_ID=57936 )
A good indicator of where we are headed financially is that one of the economic indicators is missing! The Federal Reserve has stopped publishing a “key economic indicator” of the total money supply, known as M3. http://en.wikipedia.org/wiki/Money_supply (I will write more on this later as I am taking one more Macro economics course in December).
Why would they (the Fed) desire to end the disclosure of M3 numbers? Likely it’s due to monetization of the debt, which increases the money supply reported in M3. If this is happening as many suspect, we will know because it will be followed by higher prices ( a symptom of inflation) http://www.gillespieresearch.com/cgi-bin/bgn/article/id=712
In doing research on the reasons for the Fed no longer collecting / reporting M3 data… I was pleased to find that Ron Paul has already been working on this same issue! He introduced H.R. 4892 [109th] Sunshine in Monetary Policy Act: http://www.govtrack.us/congress/bill.xpd?bill=h109-4892the
What’s it going to take to get those who run the printing presses at the newspapers to roll out the real news? We the people need to elect a new type of leader – one who is equipped to handle these threats, and won’t back down, and won’t let our economy fall into disarray, we need Ron Paul.