Friday evening, December 4, 2009 my wife and I will be honored to hold a reception for the world’s most popular congressman, Ron Paul. The good doctor will be in the Phoenix area in support of Campaign for Liberty, an educational organization that sprang from Dr. Paul’s exhilarating 2008 campaign for the presidency.
Earlier Friday, Dr. Paul will address the Arizona State University chapter of Young Americans for Liberty at ASU’s Hayden Lawn. Following the address, he will sign copies of his bestseller, End the Fed. The reception will be held at our home 6:00 p.m. to 8:00 p.m. A $250 donation to Campaign for Liberty earns entrance. Attendance will be limited to 80 persons.
I’ve often joked about why I should support Ron Paul’s efforts when, if he were successful, his programs would effectively put me out of business. Dr. Paul believes in the gold standard, under which people could redeem their paper dollars (digital dollars nowadays) for gold at their local banks, as was the case before Roosevelt’s 1933 Executive Order # 6102, which called for all Americans to turn in their gold and gold certificates to the government.
Prior to 1933, U.S. paper currency was freely redeemable in gold coin coins, the most common of which were Double Eagles ($20 Liberties and $20 St. Gaudens), Eagles ($10 gold coins) and Quarter Eagles ($5 gold coins). Yes, that means that before Roosevelt’s dastardly deed, a $20 bill could be exchanged for a $20 gold coin. Today, a common-date circulated $20 Double Eagle carries a paper dollar price of about $1500.
Actually, though, if Ron Paul were successful and there were no need for CMI Gold & Silver Inc. to be in business, I and my staff would have to find other forms of employment. Maybe I would become a furniture maker and increase the wealth of our country (and the world) ever so little. As is it, my economic activity creates no wealth.
I’m not apologizing for making it possible for Americans to convert their dollars into gold. I see the ownership of gold (and silver) as essential to financial survival nowadays. But, if the nation were on the gold standard and banks redeemed paper money for gold, I would have to do something else, and maybe that something else would be positive, like producing something to be consumed.
Further, and obviously, Dr. Paul wants to End the Fed, as his bestseller is titled. Because the Fed is an inflation machine, ending the Fed (at least its money creation ability) would also lessen the need for gold bullion dealers to exist, thereby possibly adding more workers to the productive sector.
For those readers who live in Arizona and would like to attend the reception, I urge them to make the $250 donation ASAP. (Be sure to mark the $250 Event Ticket radio button at the bottom of the page.) I’m optimistic that we will reach the 80 person limit, and I am certain it will be an exciting evening with great conversation with a lot of good people.