Here are a few quotes from his website I want to touch on.
“Dr. Paul is the leading spokesman in Washington for limited constitutional government, low taxes, free markets, and a return to sound monetary policies based on commodity-backed currency.”
“Dr. Paul consistently voted to lower or abolish federal taxes, spending, and regulation, and used his House seat to actively promote the return of government to its proper constitutional levels.”
“He continues to advocate a dramatic reduction in the size of the federal government and a return to constitutional principles.”
Limited Government: (What is limited government?).
My biggest problem with the government is manipulation. No the manipulation of just the citizens of the United States, but rather the manipulation of the market. Simple economics will tell you that “the invisible hand of the market” will set prices and ensure a thriving economy. However, the government is constantly chopping of this hand.
The government does this by two principal ways (that I know of).
a. By injecting the market with useless worthless currency:
Our money is backed by nothing of value (except maybe the threat of violence). So whenever the government want more money, they just create it – out of thin air. This injection of currency often has a short term effect of boosting the economy, but in the long run simply devalues our money. Think about it – if you had 1 Babe Ruth card how much would that be worth? A lot! Now the government comes in and creates a trillion more – does the card hold it’s value? No. Similarly, the government creates money – trillions of dollars – thus, this is one reason our currency devalues. This in turn makes products more expensive and traveling abroad almost impossible.
b. By adjusting the Fed funds rate. (what the hell is the fed funds rate?)
Lets just leave it at, that basically the fed funds rate is the rate at which banks charge eachother to barrow money – this rate is set by the federal government. A lower rate means that banks can lend more money to us, a higher rate means they lend less money. So if the government sets an artificially low rate, the banks lend and artificially high amount of money (usually to people who can’t afford it, hints the housing boom and bust).
This rate should be decided by the free market based on who the best customers are – not manipulated by the government to artificially boost the economy! In the end, it’s a house of cards and will all come tumbling down. See what Ron Paul has to say.
Commodity-Backed Currency: (What is commodity- backed currency?)
As discussed our Government creates money out of thin air. It is basically monopoly money. That’s bad. So to stop them from creating artificially valued money, we should return to a commodity backed currency. Using a stable raw material as our commodity.
Take gold for example – it retains its value fairly well. (Gold is expensive in terms of dollars, but in terms of itself, holds its value) So if we back our currency (meaning you can take your $10 and get x grams of gold from the bank) it limits how much currency the government can print – because they simply do not have the Gold to back it. This in turn, hinders inflation caused by excess creation of currency. Here is a decent video.