ron paul

All posts tagged ron paul

The offices of Liberty Dollar were raided by the FBI yesterday. Apparently they didn’t like the fact that they were selling Silver Ron Paul Dollars! I don’t understand how anyone buying the $20 coin for $25 would mistakenly assume that they were legal tender but I guess someone at the FBI HQ did!Actually, they were also selling Silver certificates, redeemable for actual silver. This can be construed as a currency which is illegal. Only the Federal Reserve has the right to issue pieces of paper (that aren’t backed by anything) to use as barter.
The silver dollars which were available for $25 a few days are currently going on Ebay for $305! Damn, I wish I had bought a few.

How is this different from the local currency of southern Massachusettes, the Berskshire?

“BerkShares are a local currency designed for use in the Southern Berkshire region of Massachusetts with issue by BerkShares, Inc., a non-profit organization working in collaboration with the Southern Berkshire Chamber of Commerce, participating local banks, local businesses, and local non-profit organizations.The purpose of a local currency is to function on a local scale the same way that national currencies have functioned on a national scale—building the local economy by maximizing circulation of trade within a defined region.”

Check out this excellent, excellent video where Ron Paul rips Bernanke a new one. He explains why lowering the interest rates is screwing the US citizens. Low rates leads to a weak dollar which causes inflation (since we import nearly everything from foreign countries).

By lowering the rates, the Feds are enabling inflation. Which they probably want because it makes it is much easier to pay back all the money the government has borrowed from foreigners. The government currently needs around $2 Billion per day to sustain itself. Paying back foreign countries with dollars that are worthless is quite an enticing option.However, it doesn’t come without any cost. Putting more dollars in circulation devalues the current value of each existing dollar. If the Fed increases the money supply by 10% per year, the value of each dollar of your savings is decreased by a corresponding 10% too. Since you’re not getting 10% interest in the bank, your savings are being eroded every year. This is what Ron Paul was concerned about. The savings of elderly people are being eroded while simultaneously, everything is getting more expensive.

As the cost of everything goes up, eventually the cost of real assets will catch up. Real assets include commodities like gold, wheat, corn, lumber, oil and especially investments like real estate. So the low interest rates has the effect of propping up real estate prices and engendering the so-called soft landing in the real estate market. However, since its mostly wealthy people who own multiple properties that are leveraged with mortgages, as the value of the dollar drops and the value of real estate increases, they get to pay down their mortgage with cheaper dollars while simultaneously enjoying the appreciation in their properties.

This is basically a redistribution of wealth from the poor and middle classes to the wealthy. So you should either vote for Ron Paul or invest in gold (pretty easy to do), foreign currencies (slightly more difficult) or cash-flowing properties (pretty difficult right now). The worst thing to do is nothing or whine about how unfair life is.

I know for a fact that I’m not going to get my share of Social Security and I don’t even have a choice whether I want to contribute or not.  But how much will my share be?

Lets assuming the average person makes $50,000 a year for 35 years. Even though most people start working with they’re 16 and keep working until they’re 65, we’ll exclude the first 14 years when they may not be making a lot. We’ll also ignore the effects of inflation and salary increases to keep the math simple.

Considering that Social Security taxes (FICA and Medicaid) are ~15%, (even if you’re an employee andd only pay half of that, its a cost to your company that results in a lower salary to you) that comes out to $7,500 per year.  Considering the savings could have been invested in the stock market at 8%, the total comes to a whopping $1,395,766.11.

But the Government doesn’t have enough to pay out the baby boomers through the end of the next decade. So I’m sure I’m not going to get of my Social Security checks in 30+ years.

I think the government should privatize Social Security and create individual accounts for everyone. Or atleast stop taxing me and let me figure out my own retirement!

To see the opinions of various  presidential candiates regarding Social Security, check out this link. And please vote for Ron Paul if you’d like the president to be someone who realizes that we’re bankrupt and the monetary system needs to be fixed.