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Thursday, February 14, 2008

Ron Paul

The republican candidate Ron Paul, has attracted a giant following of younger people who respond to his message of semi isolationism and the end of the IRS. I do not believe he stands a chance. Not because of his message but because I have never seen a dark horse win the nomination in the 44 years I have been "sentient". Though his concepts seem good at first, if you examine them closely they will not hold water. What most people do not get is that our money is NOT REAL. When the US left the gold standard our money became an IOU. It is a promissory note. It is worth what the government calls $1. On any given day that $1 buys different amounts goods and services. It is subject to the whims we call inflation. Today my dollar buys me a thin sliver of gold-last week it bought me a bigger sliver. And then we have the concept of price. I will price my item to make me a profit. That could be 50%,40%,30% or in the case of groceries as little as 2%. So when I say-this is ON SALE-you think your getting a deal. When in actuality you might be giving the store-20% instead of 50%-but they are still making money. You are agreeing to pay x for y apples. If no one will pay x-then I have to price at a value they will pay. So what is money then-It is an agreement between you and someone else-I think that your widget is worth $10 and that is what I will give you. If I do not think your widget is worth $10 and no one else does either than you will have to lower your price. The point here is that the IRS is a function of inflationary control. If people have too much money-The prices go up to compensate because you will be willing to pay more. By the government taking some of your money back, which they print at, will now, it helps to stabilize prices. The wealthy are taxed far less because if they have capital, they can invest it to create more dollar flow or profit. The average citizen does not have capital investment. By taxing him more-it reduces inflation. So we have a system, which is considered Unfair. And the reality is that it is unfair. But it works, without having a standard to tie our money to like gold or silver. If we eliminate the IRS, we will see more inflation. Your boss will say, well no more taxes so now I can pay you less-because you will actually have more money. And you might actually have to take a pay cut. So even if Ron Paul did manage to get rid of the IRS, there is no guarantee that you will actually have more "spending power". May be more dollars, but they might buy less. The other issue with Ron Paul is that he wants out of the United Nations. Though it might help us temporarily, in the long run we become isolated because we don't know what the rest of the world is doing. Our leaders might not make choices, which are informed. That could have very bad consequences...
Ron Paul has a great vision for the average man, but the practicality of it is in severe question.

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