What Ron Paul Told Me About The End of Dollar Hegemony
Nick Giambruno: I spent the past weekend in Tucson for the Casey Research 2013 Summit, indeed a memorable and information-packed experience. It was truly a pleasure to meet with everyone who joined us.
Notably, it was extremely encouraging to meet so many intelligent people who had taken concrete steps to internationalize their savings and obtain a second passport—and thus reducing their exposure to whatever happens in their home countries.
Doug Casey kicked things off with a look at the striking parallels between the rise and fall of Rome and the rise and fall of the US.
In a way, Doug reminded me of the video below, which I stumbled across recently and which I highly recommend that you view. It shows, in a little over three minutes, how the borders of Europe have changed over the past 1,000 years.
It is an amazing and concise illustration of how, contrary to popular opinion, the borders of political entities are anything but permanent. In a historical perspective, nations and national boundaries tend to have as much permanence as a double cheeseburger placed in front of Chris Christie.
It is for this reason (and many others) that I believe you should internationalize various aspects of your life and not totally bind your future to any particular nation-state.
At the Summit I also had the chance to do something that I had wanted to do for a long time—sit down with Ron Paul for an informal (but in-depth) discussion on what I believe to be his most important speech.
It is a speech that many, even most libertarians, have never heard. This is because it occurred in 2006, before Ron had really broken through on the national level, and during an otherwise dull session of Congress.
Nick Giambruno and Ron Paul
The speech is titled “The End of Dollar Hegemony” and discussed the breakdown of the Bretton Woods system—which most people know about—and the de facto system that replaced it—which most people do not know about. This speech is an absolute must-view you can watch it or read a transcript of it.
The most important part of the speech is when Paul discusses the petrodollar system, a primary factor in maintaining the dollar’s role as the world’s premier currency after the breakdown of Bretton Woods.
“It all ended on August 15, 1971, when Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold. In essence, we declared our insolvency and everyone recognized some other monetary system had to be devised in order to bring stability to the markets.