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Wednesday, August 10, 2011

Ron Paul:"I think what we're dealing with is the end of the dollar reserve standard"


By Pete Kasperowicz - 08/10/11 09:03 AM ET

The Federal Reserve has taken another step to end the dollar's reign as a global reserve currency, Rep. Ron Paul said Wednesday.

Paul, the GOP presidential candidate and frequent Fed critic, criticized the central bank's Tuesday announcement that it would keep a key interest rate at or near zero percent for another two years.
"I think what we're dealing with is the end of the dollar reserve standard, and that's a world-wide phenomenon," Paul (R-Texas) said on CNBC.

The Fed on Tuesday did not announce a third round of quantitative easing as some were hoping, which could have led to more Fed purchases of Treasury debt and a flood of new money, something Paul has criticized in the past. Still, Paul implied that the Fed's decision to keep interest rates low through mid-2013 is a supplemental strategy that will push the dollar down, and said the recent surge in gold prices is a sign of that.

"Actually gold prices don't go up," he said. "It's just that the dollar goes down, and people are anticipating the dollar's going to continue to lose its value, so we can anticipate there's going to be a lot of price inflation down the road.

"There's not much left other than commodities, you know, and real value," he added. FULL STORY