Monthly Archives: January 2014

Ron Paul: Bitcoin Skeptic

The virtual currency known as Bitcoin is beginning to become accepted by more and more businesses even beyond underground websites such as the recently shuttered Silkroad. Overstock.com is among the more ‘mainstream’ internet retailers to accept Bitcoin (Overstock.com sold $126k in merchandise in Bitcoin the first day of Bitcoin sales) and a few Las Vegas casinos have jumped on the bandwagon as well. No doubt there will be even more merchants participate in this experiment in 2014.

Many in the liberty movement are very bullish on what they believe is or will be an alternative to the dollar but there are a few notable skeptics within the movement. Among the high profile Bitcoin skeptics are Peter Schiff and Ron Paul.

Just over a month ago, Ron Paul expressed his skepticism of Bitcoin in his weekly podcast (Episode #43).

I’m suspicious. I don’t fall into the category and say ‘Hey, this is it. This is the solution. This is going to replace the dollar.’

One time somebody quoted me in the media saying ‘I believe that Bitcoin was going to destroy the dollar’ and that’s not quite my position. But the Bitcoin could be a participant in a process where the dollar destroys itself…or that is the Federal Reserve policy destroys the dollar. Then people have to leave the dollar and go into something else.

Ron Paul went on to say that he believes Bitcoin (along with any other medium of exchange) should be legal currency for those who wish to accept it as such but wondered out loud why the government hasn’t cracked down on Bitcoin in a significant way.

The reason I’m hesitant to say ‘Hey, this Bitcoin sounds like the answer’ is that it’s hard for anybody who knows a lot more about Bitcoins than I do to tell me what it really is. If I had to, and you had never heard of gold as money I could show you a gold coin and you could put it in your hand and you could feel it and then we could look at some history. That’s not the case with Bitcoin.

[…]

But right now the Fed hasn’t come down hard on Bitcoin so you wonder what’s going on. Why haven’t they? Because I am absolutely convinced that the federal government and our central bank does not permit, will not permit competition in currencies. They’re not going to let you and I mint some gold coins and put them out in circulation. You can go to jail for that. […] It must not seem at the moment to be a threat to the Federal Reserve and to our system.

Paul also expressed some doubts that Bitcoin could become a preferred medium of exchange with a crash of the dollar:

This is why Bitcoin is around is to offer an alternative [to a weak dollar]. […] I’m a skeptic on that but I certainly think it’s fascinating. I try to keep up with it the best I can but I would feel much better having some gold coins in my pocket than a little computer that I can carry around and recover my Bitcoin. I wouldn’t feel very secure doing that.

However one feels about Bitcoin, I think it’s important that Ron Paul’s views on the subject be reported accurately. I’m personally intrigued by Bitcoin and hope it turns out to be everything its supporters hope but I do think some skepticism is warranted (for the reasons Paul gave and more). I certainly wouldn’t put all my eggs in the Bitcoin basket but I wouldn’t worry about a little experimentation.

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Quote of the Day: MLK Day Edition

(Re-post)

Martin Luther King Jr.’s “I Have a Dream” speech is unquestionably one of the most famous speeches in American history. In listening to the speech today, I found the following passages that aren’t as often quoted to be some of the most powerful lines in the speech.

In a sense we have come to our nation’s capital to cash a check. When the architects of our republic wrote the magnificent words of the Constitution and the Declaration of Independence, they were signing a promissory note to which every American was to fall heir. This note was a promise that all men, yes, black men as well as white men, would be guaranteed the unalienable rights of life, liberty, and the pursuit of happiness.

It is obvious today that America has defaulted on this promissory note insofar as her citizens of color are concerned. Instead of honoring this sacred obligation, America has given the Negro people a bad check, a check which has come back marked “insufficient funds.” But we refuse to believe that the bank of justice is bankrupt. We refuse to believe that there are insufficient funds in the great vaults of opportunity of this nation. So we have come to cash this check — a check that will give us upon demand the riches of freedom and the security of justice.

America has come a long way since King delivered this speech. Racial and ethnic minorities have made great strides thanks to courageous individuals like King who made a stand for liberty and justice (and in King’s case, paid with his life) and we are all better off for it.

Here is the rest of the speech. Listen and be inspired.

The First of Many “Outrages” of 2014

I’m not much of a fan of New Jersey Governor Chris Christie but I find the faux outrage by the Left about the George Washington Bridge closing* absolutely nauseating. Louis DeBroux over at United Liberty almost completely matches my attitude about how the Left and the MSM (but I repeat myself) are handling this scandal. DeBroux rattles off a good number of scandals on the part of the Obama administration, nearly all of which make the bridge closing look like a prank (read the article and you will understand my point). On his last two sentences, however; DeBroux hits it out of the park:

So was the bridge closing an abuse of power? Absolutely. Illegal? Very likely. Should everyone involved be fired or prosecuted? Without a doubt.

But forgive me if I can’t work myself up into a lather with outrage when the same people now bellowing their fury have been conspicuously silent over far worse abuses from their own camp.

*When I first heard of this, my reaction was “But if not for government, who would close the bridges and roads to exact revenge on political foes?” Seriously. What would happen if this bridge was managed by a *gasp* private, for profit greedy Capitalistic company? What would be the motivation to ever close the bridge other than necessary repairs?