We published an analysis on "Dollar Myths" in which we criticized spending habits in Washington:
"Interestingly, nobody seemed to focus on the fact that there is an unconventional solution to foreigners holding too much of our debt: live within your means and do not issue debt. Such an old fashioned concept would indeed strengthen the dollar. Unfortunately, none of the presidential candidates at either side of the aisle seem to have heard of this notion."
We missed that there is indeed a presidential candidate who believes in the old fashioned view to "live within your means." Our apologies go to Congressman Ron Paul, who threw his hat in the ring on March 12, 2007, announcing is candidacy for the Republican presidential nomination. Ron Paul is the one member of Congress who is a true fiscal conservative. As a member of the House Committee of Financial Services, he does not hesitate to speak out against inflationary policies. On his campaign website, Ron Paul 2008, he writes:
"Real conservatives have always supported low taxes and low spending.
But today, too many politicians and lobbyists are spending America into ruin. We are nine trillion dollars in debt as a nation... If we don't cut spending now, higher taxes and economic disaster will be in their future - and yours.
In addition, the Federal Reserve, our central bank, fosters runaway debt by increasing the money supply - making each dollar in your pocket worth less."
It is not our role to endorse a presidential candidate, especially not this early in the process. We don't agree with all of his views, but highly respect his no-nonsense approach to fiscal and monetary policy issues. We encourage everyone to familiarize themselves with the fiscal views of Congressman Ron Paul. He is living proof that it is possible to be a fiscally conservative politician with integrity.
If you have not read our analysis on "Dollar Myths", please do so by clicking here. We manage the Merk Hard Currency Fund, a fund that seeks to profit from a potential decline in the dollar. To learn more about the Fund, or to subscribe to our free newsletter, please visit www.merkfund.com.