Former US congressman Ron Paul says the US dollar is overdue for a major downturn in the face of out of control debt.
In a new discussion on his YouTube channel, Paul says the reason that central banks and even private citizens have increased their gold reserves is a waning confidence in the US dollar.
Paul, who identifies as a constitutionalist, says the dollar’s existence is definitely only temporary, like most fiat currencies in its wake.
He says that there some people who have foreseen and anticipated the dollar’s eventual demise since Bretton Woods, the 1944 agreement between the US, Canada, Western Europe, Australia and Japan to create a new monetary order centered around the dollar.
“The one thing I feel certain about [is] the dollar will not last indefinitely. It’s been around a lot longer than it has deserved. Like right now it’s anticipated in a very short period of time the interest on the national debt, the federal debt it’s going to be a trillion dollars. That used to be a lot of money. But at the rate it’s going, just the interest is going to be many many trillions of dollars.
That’s why anybody with a little bit of common sense and a little bit of economic knowledge and a little bit of instincts about this, they’d say ‘this can’t continue.’ But of course the people who really understood this who argued against the whole system from the beginning, even from the beginning of Bretton Woods, they know it’s coming.”
The libertarian icon says replacing the dollar with a new supreme currency will be a long and drawn out process, but that the attitudes towards the greenback have already changed.
“One thing for sure, is the attitude and the language has changed. Central banks are buying gold, people are buying gold, and people are negative on the dollar. But the hurdle between going away from a reserve currency like the dollar who’s kingpin in many ways, in spite of the many shortcomings of the dollar and our policies, there’s a long way to go before taking it down and ushering in a reserve currency that will replace that.”
