The Ron Paul Institute for Peace and Prosperity
Subscribe to the Institute View Us on YouTube Follow Us On Twitter Join Us on Facebook Join Us at Google Plus

Latest Posts

Ron Paul: Killing of Boris Nemtsov and War Propaganda
Who killed Russian opposition politician Boris Nemtsov? No one but the killers know at this point. But that does not stop the propagandists from speculating endlessly. Join Ron Paul and co-host Daniel McAdams for an unvarnished view...at the Ron Paul Liberty Report

2 March 2015read on...

Department of Homeland Security: What is it Good For?
Late Friday night, Congress passed legislation funding the Department of Homeland Security for one week. This vote followed weeks of debate over efforts to attach a prohibition on funding President Obama’s executive order granting amnesty to certain illegal immigrants to the Homeland Security funding bill.

1 March 2015read on...

Liberty in Search of Protector - Interview With Vaclav Klaus
Liberty is a fundamental human right; it is the cornerstone of our existence. But liberty is under attack from all directions, whether through higher state control or individuals themselves. Liberty is in search for its protector.

28 February 2015read on...

Ron Paul: Is Government Regulation of Internet Helpful?
Ron Paul explains his opposition to the recent FCC vote to begin regulating the Internet as a public utility. Dr. Paul warns that government control will lead to a decrease in innovation, an increase in prices, and more surveillance of Americans' online activities. Tune in to Ron Paul and co-host Daniel McAdams of the Ron Paul Institute in this latest Liberty Report:

27 February 2015read on...

State Department Gives 87 Percent of Afghan Funds to Only Five Recipients
The Special Inspector General for Afghan Reconstruction (SIGAR) issued a scathing report showing the Department of State gave a staggering 87 percent of all Afghan reconstruction funds to only five recipients.

27 February 2015read on...

Stephen Hawking and the Meaning of Non-Aggression
Ron Paul's latest Liberty Report takes a look at famed physicist Stephen Hawking's comments that aggression is the greatest human failing and that the solution is empathy, which "brings us together in a peaceful, loving state." Whether intentionally or not, Dr. Hawking spells out the beauty and simplicity of the non-aggression principle.

27 February 2015read on...

‘US Spends Millions on Overseas Propaganda, But No One is Buying it’
Despite the US’ bottomless PR budget to influence overseas, people are not attracted by what’s on offer as they are tired of US interventionism, exceptionalism, and the bombing of their countries, Daniel McAdams of the Ron Paul Institute told RT.

26 February 2015read on...

Domestic Fear is the Price of Empire
If you find no other argument against American intervention abroad persuasive, how about this one? When the US government invades and occupies other countries, or when it underwrites other governments’ invasions or oppression, the people in the victimized societies become angry enough to want and even to exact revenge — against Americans.

26 February 2015read on...

Janet Yellen On Capitol Hill - Ron Paul Liberty Report
Fed Chairman Janet Yellen goes to Capitol Hill this week for her bi-annual report to Congress. At her first stop, in the Senate Banking Committee, she rejected any call for an audit of the Federal Reserve and claimed that Fed is doing a fine job of managing the country's monetary policy. Join Ron Paul and co-host Daniel McAdams (of RPI), along with special guest Paul-Martin Foss, a former Ron Paul Congressional staffer and current president of the Carl Menger Center, to get the real story of the Federal Reserve and the US economy.

25 February 2015read on...

Ukraine: A Cuban Missile Crisis in Reverse
In a rather ghastly 19th century experiment, a biologist by the name of Heinzmann found that if he placed a frog in boiling water, the frog immediately leapt out but that if he placed the frog in tepid water and then gradually heated it, the frog stayed put until he was scalded to death. Are we like the frog? I see disturbing elements of that process today as we watch events unfold in the Ukraine confrontation. They profoundly frighten me and I believe they should frighten everyone. But they are so gradual that we do not see a specific moment in which we must jump or perish. So here briefly, let me lay out the process of the 1962 Cuban Missile Crisis and show how the process of that crisis compares with what we face today over the Ukraine.

24 February 2015read on...

Featured Articles

US Sanctions on Russia May Sink the Dollar


Rp Weekly Button

The US government's decision to apply more sanctions on Russia is a grave mistake and will only escalate an already tense situation, ultimately harming the US economy itself. While the effect of sanctions on the dollar may not be appreciated in the short term, in the long run these sanctions are just another step toward the dollar's eventual demise as the world's reserve currency.
 
Not only is the US sanctioning Russian banks and companies, but it also is trying to strong-arm European banks into enacting harsh sanctions against Russia as well. Given the amount of business that European banks do with Russia, European sanctions could hurt Europe at least as much as Russia. At the same time the US expects cooperation from European banks, it is also prosecuting those same banks and fining them billions of dollars for violating existing US sanctions. It is not difficult to imagine that European banks will increasingly become fed up with having to act as the US government's unpaid policemen, while having to pay billions of dollars in fines every time they engage in business that Washington doesn't like.
 
European banks are already cutting ties with American citizens and businesses due to the stringent compliance required by recently-passed laws such as FATCA (Foreign Account Tax Compliance Act). In the IRS's quest to suck in as much tax dollars as possible from around the world, the agency has made Americans into the pariahs of the international financial system. As the burdens the US government places on European banks grow heavier, it should be expected that more and more European banks will reduce their exposure to the United States and to the dollar, eventually leaving the US isolated. Attempting to isolate Russia, the US actually isolates itself.
 
Another effect of sanctions is that Russia will grow closer to its BRICS (Brazil/Russia/India/China/South Africa) allies. These countries count over 40 percent of the world's population, have a combined economic output almost equal to the US and EU, and have significant natural resources at their disposal. Russia is one of the world's largest oil producers and supplies Europe with a large percent of its natural gas. Brazil has the second-largest industrial sector in the Americas and is the world's largest exporter of ethanol. China is rich in mineral resources and is the world's largest food producer. Already Russia and China are signing agreements to conduct their bilateral trade with their own national currencies rather than with the dollar, a trend which, if it spreads, will continue to erode the dollar's position in international trade. Perhaps more importantly, China, Russia, and South Africa together produce nearly 40 percent of the world's gold, which could play a role if the BRICS countries decide to establish a gold-backed currency to challenge the dollar.
 
US policymakers fail to realize that the United States is not the global hegemon it was after World War II. They fail to understand that their overbearing actions toward other countries, even those considered friends, have severely eroded any good will that might previously have existed. And they fail to appreciate that more than 70 years of devaluing the dollar has put the rest of the world on edge. There is a reason the euro was created, a reason that China is moving to internationalize its currency, and a reason that other countries around the world seek to negotiate monetary and trade compacts. The rest of the world is tired of subsidizing the United States government's enormous debts, and tired of producing and exporting trillions of dollars of goods to the US, only to receive increasingly worthless dollars in return.
 
The US government has always relied on the cooperation of other countries to maintain the dollar's preeminent position. But international patience is wearing thin, especially as the carrot-and-stick approach of recent decades has become all stick and no carrot. If President Obama and his successors continue with their heavy-handed approach of levying sanctions against every country that does something US policymakers don’t like, it will only lead to more countries shunning the dollar and accelerating the dollar's slide into irrelevance.
Copyright © 2014 by RonPaul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.
Please donate to the Ron Paul Institute
What are you supporting?
When you join the
Ron Paul Institute
for Peace and Prosperity
You are supporting

News and analysis
like you'll get nowhere else

Brave insight on
foreign policy and civil liberties

A young writer's program
and much more!

Archives