Dr. Paul’s contention, as outlined in an op-ed in USA Today, is that paper money is always debased over time. In the op-ed in USA Today, “Fed causes booms and busts,” Dr. Paul wrote that, “Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar (NYSEARCA:UUP). Since 1913, the dollar (NYSEARCA:UDN) has lost over 95% of its purchasing power, aided and abetted by the Fed’s loose monetary policy.”
To many, the fact that Dr. Paul has never received a single co-sponsor from any other member of Congress for this legislation is ample testimony to the wisdom of these ideas.
However, whatever is done to a fiat currency can be done to any replacement. If the US dollar were replaced by gold (NYSEARCA:GLD) or a basket of commodities, that too could easily be manipulated by the public or private sectors.
An example here is the way oil (NYSEARCA:USO) fluctuates.
According to Rex Tillerson, CEO of Exxon Mobil (NYSE:XOM), about half the price of oil is due to speculation as it should be trading around $70 a barrel based on economic demand.
The rest of the price reflects speculation.
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