Paul's Case for Gold
Llewellyn H. Rockwell, Jr.
by Llewellyn H. Rockwell, Jr.: Down
With the Dictator
to the second edition of The
Case for Gold (2011)
had the chance to avoid the disastrous meltdown of 2008 and following,
the one that has led to the nationalization of industries, the creation
of oceans of paper money, and the destruction of so many American
dreams. The answer that might have been is the one you hold in your
hands: the minority report of the US Gold Commission of 1982, written
by Ron Paul and signed by Lewis E. Lehrman. It provides an outstanding
history, wonderful theoretical analytics, and a proposal for the
return of sound money, which is gold.
Alas, it was
the minority report and therefore killed by political forces. Of
course, the fix was in from the beginning. The commission only came
to exist in the first place as payoff to certain "goldbugs"
in the Republican Party in those years. Ronald Reagan was one of
them. So his influence was part of the reason the Commission was
created. But it wasn't created to institute a gold standard. It
was created to bury the idea once and for all.
Ron Paul wouldn't
let it happen. The result was this book, which remains a mighty
case for sound money and the blessings that change would bring to
this country. A gold currency would restore economic stability and
growth. It would eliminate unemployment. It would force government
to spend only what it can collect in taxes. It would rein in the
welfare state and the warfare state. It would give the people control
of money again. It would restore what we used to call freedom, which
is a core of social and civic life that is impenetrable and inaccessible
to government planners.
With a gold
standard, the Fed could disappear. The banking industry would become
an industry like any other, subject to the profit and loss test
and given no guaranteed bailouts at taxpayer expense. The financial
industry would be forced to surrender its love of socialism (for
losses, not gains) and become honest again. We would all start living
within our means and thriving off private wealth rather than depending
on the public sector to save us.
other nations would benefit. Protectionist wars rooted in currency
manipulation would cease. Policy options in Washington would be
mercifully restricted to only what Washington could afford to do
and afford to enforce. Vast swaths of the public sector as we know
it would have to just pack up and go home. This would be the greatest
blessing visited on this country in a century. But can you see why
Washington isn't interested? It has nothing to do with disagreements
over economic theory. It is all about who has power in society.
Paper money gives power to tyrants. Sound money that is gold
gives power to the people and the free markets they control.
yes, we should have listened to Ron in 1982. The thing is that he
wisely and bravely never stopped talking about this
issue. It turns out that this book, this minority report, is the
work of a prophet. It tells the truth and shows the way. It should
be our manifesto again. This timeless statement on behalf of economic
truth can be our guide.
listen then. But maybe they'll listen now. We need monetary freedom
more than anything else. The way digital markets are advancing,
it might come about with or without Washington's permission. As
Ron has always known, paper money cannot last. Either it has to
go, or the American dream has to go. They cannot forever live side
H. Rockwell, Jr. [send him
mail], former editorial assistant to Ludwig von Mises and congressional
chief of staff to Ron Paul, is founder and chairman of the Mises
Institute, executor for the estate of Murray N. Rothbard, and
editor of LewRockwell.com.
© 2011 by LewRockwell.com. Permission to reprint in whole or in
part is gladly granted, provided full credit is given.
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