Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

The Curious Capitalist posted the following article:

Fort Knox: What to Do with Old Yeller
Posted by Roya Wolverson Tuesday, June 28, 2011

Should the U.S. sell off its gold reserves to pay down debt? That’s the latest idea being tossed around by gold bug Ron Paul. Not only would selling Old Yeller help the U.S. pay its bills, says libertarian Paul, but it would put more gold in the hands of the American people and pull back the reins on the Federal Reserve, which is printing money like mad and debasing the value of our currency.

So insistent is Paul about this strategy that he challenged the government to a gold audit to make sure its stash of bullion at Fort Knox is really all there. (According to the Treasury’s inspector general, it is.) So is selling it a good strategy, or is Paul just a crazy kook?

Wonderful idea. The federal government exchange gold for dollars the federal government already has the unlimited ability to create??? What is his next suggestion – Hawaii exchange pineapples for salt water?

And as for “debasing” the value of our currency, the other word for that is inflation. So where is the inflation?

I see no relationship between “printing money like mad” and inflation, not for the short term (above graph) nor for the long term. Paul is just mouthing popular belief, with zero supporting data.

Can there be any doubt? The man is certifiable. Or just doesn’t give a damn about America in his hunger for political gain.

Rodger Malcolm Mitchell

No nation can tax itself into prosperity, nor grow without money growth. It’s been 40 years since the U.S. became Monetary Sovereign, , and neither Congress, nor the President, nor the Fed, nor the vast majority of economists and economics bloggers, nor the preponderance of the media, nor the most famous educational institutions, nor the Nobel committee, nor the International Monetary Fund have yet acquired even the slightest notion of what that means.

Remember that the next time you’re tempted to ask a teenager, “What were you thinking?” He’s liable to respond, “Pretty much what your generation was thinking when it ruined my future.”