It Is Ron Paul Versus Inflation

Inflation seems to top the political barometer today – what with a nation-wide strike coming up on the issue, sponsored by the opposition BJP.

This inflation is blamed on the government – and the government blames in on the international situation: high prices of oil and food.

Yet, as this article shows, the price of oil, if adjusted for inflation and taxes, is much the same as it was 20 years back – in the US.

Thus, inflation is NOT NEW: it has been with us ever since the breakdown of the International Gold Standard.

A correct understanding of the current situation would stress the fact that it is not prices that are rising, but the value of money that is falling – and all this unsound money is government-issued fiat paper money. This “counterfeit money” is the real problem.

If our government believes we are importing inflation, then the root cause must also be pointed out: the US Fed, which exports inflation.

The US runs a huge trade deficit – it sends out paper dollars and buys up whatever it needs from the rest of the world. These dollars inflate other economies, like India.

Thus, the KEY ISSUE facing the world today is how the dollar can be fixed – because the dollar is the world’s dominant currency.

Once this is seen to be the key issue facing the entire planet – that America should export gold instead of paper if she wants to buy anything, which is precisely what The Honourable East India Company did – then the man of the moment is Ron Paul, the other Republican candidate, who is campaigning for sound money, the abolition of the Federal Reserve, and a return to gold.

It is unfortunate that economists from poor countries like India do not see the importance of sound money and the need to support Ron Paul – because inflation hurts the poor hardest.

Poor people earn daily wages, and the value of these wages is eroded on a daily basis. If they save a little, the same happens, and they are never able to accumulate “capital”, which is the life-blood of capitalism. They are condemned to remain capital-less; condemned to eternal poverty.

I am referring to Swaminathan Aiyar’s support for the other Republican candidate, John McCain. He claims “India will benefit” if McCain is elected.

Incidentally, McCain is a major Iraq hawk, and that is bad for America. Ron Paul stands for a non-interventionist foreign policy based on peace and commerce. This is good for America. And also the world.

I therefore reiterate that Ron Paul is the best choice for US president, the man all right thinking people should support.