Ron Paul Has His Eye On The Big Picture

Congressman Ron Paul Expresses Concern Over the Future of the U.S. Dollar

By Al Korelin
Apr 26 2007


When Congressman Ron Paul announced his candidacy for the presidency of the United States, we immediately expressed our support, as did many of our colleagues - Jay Taylor, Rick Rule, Doug Casey, Roger Weigand, Ben Johnson and a host of others. We began to discuss issues with the congressman and Jeff Deist, a senior member of his staff, each week on The Korelin Economics Report in order to make listeners aware of his views. We also posted a video of an interview with him which we did in San Francisco at the Gold Show on our website and on You Tube, which has been watched by thousands of people.
Why did we devote 20% of our program to the Congressman? Purely and simply because we believe that his views of the U.S. economy are spot on. For the past fifteen years we have presented all the economic views that we are aware of, both positive and negative. Each week we have guests who agree with the conventional financial press and those who disagree. We do this because we believe that people need to be aware of all sides of the issues so that they can effectively make up their own minds.
On our daily show of Tuesday, April 24th, we discussed with the Congressman his views of the U.S. dollar and the future interest or lack thereof of the Asian economies in purchasing our debt. His views are pessimistic and quite different from what you may read in your daily papers.
Why is all of this relevant to 'Sound Of Cannons' visitors?
Purely and simply because of the relationship between the price of gold and the value of the U.S. dollar. As you are aware when the U.S. dollar goes down in value the opposite usually occurs in the price of an ounce of gold.
Just last week, the U.S. dollar dropped rather significantly against the Euro and we saw an increase in gold’s value. Then, for whatever reason, on the following Monday the U.S. dollar firmed up and gold’s value decreased.
Prior to that weekend, Roger Weigand stated on our program that central bankers would buy dollars and sell Euros in order to increase the value of the dollar and reverse the trend. He said that this would happen because a “freefall” in the price of the dollar (as he put it) would be detrimental to our economy and to the world economy as a whole.
The interesting question here is, just how long will central bankers support the U.S. dollar. Or as Congressman Paul asked listeners of our show, “How long will China and Japan continue to purchase our debt?”
If you believe that inflation is under control; that unemployment in the U.S. is not a problem; that the current personal and governmental debt levels in the U.S. are not a problem; and, that the housing environment in the U.S. is just fine then I would suggest that you forget about buying gold and silver and the related investments. As long as people believe economic factors such as these are not a problem, the U.S. dollar will be just fine. If you believe, as Congressman Ron Paul does, that a problem does exist; however, than I suggest that gold and silver are a great investment.