Gold, Peace, and Prosperity

The Birth of a New Currency

Ron Paul

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The People Are Demanding an End to Inflation


The recent chaos in the money markets is telling us that the world is rejecting the American dollar as a reserve currency, and agreeing with the young man in Martin Gilbert’s story.  Tragically, there is probably little future for the dollar, or dollar-denominated assets.


Because all other nations are inflating and therefore destroying their currencies, trading foreign currencies to protect against the ravages of a depreciating currency is also becoming less attractive.  The alternative, as it has been throughout history, is to seek and hold real money: gold and silver.


Fifty years of systematic monetary destruction now threaten the existence of our constitutional republic.  The American people are frightened by what they see, and they are demanding that the inflation stop.  More citizens are realizing that Congress and the Federal Reserve have generated a flood of paper money with no intrinsic value.


It is rare to find anyone today who believes that wealth can come out of a printing press.  The corporate bailouts, guaranteed loans, government contracts, and welfare gimmicks all have failed, and the people can no longer be duped.


Politicians who have been in office for too many years, and have therefore lost touch with the people, pay no heed to the [17] rising clamor for money of real value.  But the old scapegoats no longer work.  Blaming Arabs, businessmen, labor unions, or consumers for rising prices doesn’t drown out the steady hum of printing presses running 24-hours-a-day, ballooning the money supply, and thereby debasing every dollar previously printed.


Congress alone is responsible for inflation, and Congress alone can stop it.  It has shirked its responsibility for decades, but events are making a continuation impossible.  It is time now to prepare for monetary reform.

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Forward to Chapter Three

Copyright © 1981 by the Foundation for Rational Economics and Education, Inc., Post Office Box 1776, Lake Jackson, Texas 77566.

Permission to quote from, or to reproduce liberal portions of, this publication is granted, provided due acknowledgement is made.

Printed in the United States of America.

Photographs courtesy of the Chase Manhattan Archives.

Second printing.