This is a very compelling video mashup of Ron Paul and monetary policy, including lots of clips from CNBC and elsewhere. My guess is you’ll probably find it worth the 10 minutes of your time it’ll take.
While I don’t share Paul’s view of coming doom to the extent he does, you can’t evade reality forever. And, he’s right about one thing: the core problem is not money creation through credit (in and of itself). The core problem is the spending (enabled, of course, by the credit, so it’s true there’s a big link). In the simplest terms I can think of, imagine the argument as to whether you ought to use credit cards, or not. Well, they enable you to live beyond your means, so in that sense, it’s not responsible use in keeping with the reality of things. On the other hand, millions of small businesses have been created by entrepreneurs who had no source of capital other than credit cards. Yep, lots of ’em go bust, and my company has helped a lot of them get the mess cleaned up afterwards. My point is that credit, like many things, can be a fabulous resource when used properly.
That said, given the nature of the existing state and practical politics, it may very well be that the only way to manage the federal budget responsibly is to tie it to gold (or some precious commodity), because you sure aren’t going to get politicians to stop spending whatever they can.
I’m also sympathetic to the argument that regardless of global free markets — where it is actually quite possible to profit handsomely from the dollar’s decline if you’re willing to spend the time and have some tolerance for risk and volatility — people have a reasonable expectation that their currency not be devalued through actions of a force-backed state (to be distinguished from assets losing value due to voluntary market action).
In the end, Paul is advocating a reasonable approach to unwinding this thing. Just have competing currencies, like gold and silver coin and notes. See how it goes.