according to ron paul, the sanctions on russian is an idiot move. What the fuck is the us thinking? Fucking idiots. Russian holds a shit load of us dollars and all they would have to do is dump their dollar holdings and go buy oil via another currency with the middle east. What fucking arrogance is the us to think that it is so fucking indispensable to the russian economy as to think that if it applies sanctions that russia would just have to fold its tail between its legs and bend to the us's will?
Pure fucking arrogance. Maybe in the old days, US dollar wielded that kind of power. But, the demise of the dollar is coming and then what the fuckk are the idiots in US going to do? Fucking arrogance.
here is the quote from ron paul:
The US government's decision to apply more sanctions on Russia is a grave mistake and will only escalate an already tense situation, ultimately harming the US economy itself. While the effect of sanctions on the dollar may not be appreciated in the short term, in the long run these sanctions are just another step toward the dollar's eventual demise as the world's reserve currency.
Not only is the US sanctioning Russian banks and companies, but it also is trying to strong-arm European banks into enacting harsh sanctions against Russia as well. Given the amount of business that European banks do with Russia, European sanctions could hurt Europe at least as much as Russia. At the same time the US expects cooperation from European banks, it is also prosecuting those same banks and fining them billions of dollars for violating existing US sanctions. It is not difficult to imagine that European banks will increasingly become fed up with having to act as the US government's unpaid policemen, while having to pay billions of dollars in fines every time they engage in business that Washington doesn't like.
European banks are already cutting ties with American citizens and businesses due to the stringent compliance required by recently-passed laws such as FATCA (Foreign Account Tax Compliance Act). In the IRS's quest to suck in as much tax dollars as possible from around the world, the agency has made Americans into the pariahs of the international financial system. As the burdens the US government places on European banks grow heavier, it should be expected that more and more European banks will reduce their exposure to the United States and to the dollar, eventually leaving the US isolated. Attempting to isolate Russia, the US actually isolates itself.
Another effect of sanctions is that Russia will grow closer to its BRICS (Brazil/Russia/India/China/South Africa) allies. These countries count over 40 percent of the world's population, have a combined economic output almost equal to the US and EU, and have significant natural resources at their disposal. Russia is one of the world's largest oil producers and supplies Europe with a large percent of its natural gas. Brazil has the second-largest industrial sector in the Americas and is the world's largest exporter of ethanol. China is rich in mineral resources and is the world's largest food producer. Already Russia and China are signing agreements to conduct their bilateral trade with their own national currencies rather than with the dollar, a trend which, if it spreads, will continue to erode the dollar's position in international trade. Perhaps more importantly, China, Russia, and South Africa together produce nearly 40 percent of the world's gold, which could play a role if the BRICS countries decide to establish a gold-backed currency to challenge the dollar.
US policymakers fail to realize that the United States is not the global hegemon it was after World War II. They fail to understand that their overbearing actions toward other countries, even those considered friends, have severely eroded any good will that might previously have existed. And they fail to appreciate that more than 70 years of devaluing the dollar has put the rest of the world on edge. There is a reason the euro was created, a reason that China is moving to internationalize its currency, and a reason that other countries around the world seek to negotiate monetary and trade compacts. The rest of the world is tired of subsidizing the United States government's enormous debts, and tired of producing and exporting trillions of dollars of goods to the US, only to receive increasingly worthless dollars in return.
The US government has always relied on the cooperation of other countries to maintain the dollar's preeminent position. But international patience is wearing thin, especially as the carrot-and-stick approach of recent decades has become all stick and no carrot. If President Obama and his successors continue with their heavy-handed approach of levying sanctions against every country that does something US policymakers don’t like, it will only lead to more countries shunning the dollar and accelerating the dollar's slide into irrelevance.
There are some errors in Ron Paul's statement.
For example, he suggests that Russia may find the dollar somewhat flawed as a way to hold value. But look at the Ruple - 1/38 what it was worth in 1993 today. That's why other nations preferred to get $ in trade, the $ held it's value better than the Ruple.
And the Yuan is a out and out rigged currency.
Other nations are printing money as fast or faster as we are, granted with a few exceptions here and there.
Now Paul mixes these errors in with some talk of US banks trying to get compliance from other banks regarding deposits of US Citizens, but he neglects to mention the beneficial reasons for that - that's US citizens hold other countries currencies. Those countries might revolt against the heavy handed policy of the US Government, but what do the people of the US care? We'd just move more money to foreign accounts.
What Paul has not done is to prove up that the US currency slides into irrelevance faster than the other G20 currencies. And so what if it or they all do?
We'd just go bitcoin. Let me know when Ron Paul "gets it."
ok how about this?:
ron Paul detailed his thoughts on Bitcoin in one of two posts he wrote on the question-and-answer site Quora Wednesday. While the former Republican presidential candidate and congressman expressed support for the cryptocurrency, he also said it is not "true money."
"Though I don’t personally believe that Bitcoin is true money, it should be perfectly legal and there should be no restrictions on it, there should be no taxes on it," Paul wrote. "The people who operate Bitcoin would, of course, be prohibited from committing fraud but the people should be able to have competition whether it is a basket of commodities or crypto-currencies - it should be perfectly legal."
Paul described Bitcoin as an "introduction" to competition for the dollar that could improve our "terrible monetary system."
"Bitcoin is a very interesting subject because for many years in Congress I was a champion of legalizing competition in currencies," wrote Paul. "We have a terrible monetary system today. We have a government that purposely counterfeits and debases the currencies and I believe that the alternative would be a competition. That means that anything that wants to substitute for the American dollar should be permitted. There should be no prohibitions; there should not be a monopoly and a cartel running our monetary system because it so often benefits the privileged few. ... Bitcoin is an introduction to that."
Paul also noted Bitcoin requires "freedom from government intervention when it comes to the Internet" to flourish. He said he is "concerned that the government ultimately wants to curtail the Internet."
"The internet is the salvation for those of us who believe in liberty because it is an alternative way of getting around the system not only in the spreading of our ideas in this instance but in in terms of getting around the monetary system on the whole if they do permit crypto-currencies and other forms of transactions. So, this is something that we should all be concerned about whether we endorse it or not," Paul wrote.
Read Paul's full discussion of Bitcoin here.
Read more:
http://www.businessinsider.com/ron-paul-bitcoin-is-not-true-money-2014-4#ixzz3C2W3X1f4
