Monday, April 30, 2012

Ron Paul Gives Paul Krugman a Smackdown

Two interesting things Krugman says:

1) US dollars "are not just green pieces of paper with the faces of dead presidents on them." (2:20)
- Who is he trying to fool? That's exactly what money by fiat means! It's money because a law says it is, not because it became money as the result of market evolution.

2) He's unaware of the fact that the US government has jailed people for floating private currency. (9:00)
Bernard von NotHaus was convicted last month in federal court on conspiracy and counterfeiting charges for his development of silver "Liberty Dollars." He faces up to 25 years in prison. Earlier this week the feds moved to seize about $7 million of precious metals from the operation as well.
Besides the government's dubious legal maneuvers, its broader message here is clear: "Don't try to provide Americans with any alternative to the fiat dollar, or we will come after you." For those who have always wondered why free-market monies haven't supplanted various state's fiat currencies, we have yet another illustration of the answer. (The "Crime" of Private Money)
Krugman really swung for the rafters when he suggested that people are free to barter! The hypocrisy of this guy: he blasts hard money types for being backward, yet he takes this prehistoric position.

For an Ivy League economics professor, you'd think he's more up-to-date on this stuff.


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