Why the Fed Hates Gold & Why the Middle Class Needs Gold
Gold is money, despite the propaganda saying otherwise. Don't be the last to know this important fact. Ron Paul discusses on today's Liberty Report!
Gold is money, despite the propaganda saying otherwise. Don't be the last to know this important fact. Ron Paul discusses on today's Liberty Report!
Gold is money, despite the propaganda saying otherwise. Don't be the last to know this important fact. Ron Paul discusses on today's Liberty Report!
Hello, everybody, and thank you for tuning in to the Liberty Report.
As you can see, we are improvising today due to some equipment that we had to adjust to.
We are back from our visit to DC and our conference.
And with me today as co-host is Chris Rossini, who also was in Washington.
Chris, good to be back with you today on a program.
Great to be back with you.
Yes, we had a great weekend, Dr. Paul, meeting so many hundreds of people that came up to us.
And it was really rewarding to see everyone and to know that we're making a difference.
Right.
And, you know, today we want to talk about the Fed.
Now, the Fed was mentioned.
I'm sure I mentioned at least once in my speech, which I always do because it's so important.
But I want to talk a little bit more about the Fed today.
And the theme is, why does the Fed hate gold?
And, you know, a lot of people, at least in this audience, would remember the little exchange I had with Bernanke and I asked him, is gold money?
And it took him a long time to figure it out.
You know, a long, long pause.
He says, no.
So I guess he just dispelled, and I even mentioned that to him, dispelled 6,000 years of history.
Oh, it used to be money.
A lot of people still think it's money.
But it has its ups and downs.
But right now, I think gold is moving back into the arena of monetary fair.
Not necessarily here.
But on the subject of why does the Fed hate it so much?
And very simply, I think big government hates it.
And the Fed is a facilitator.
It's a way they print money and create power, create wealth for special interests.
It's a way to tax people, spend money, run up the debt and print the money.
So it's a sinister plot against the people.
That's why I'm convinced when the people really get an understanding, they want something better than the Federal Reserve.
Money, we know, originated in the marketplace before we had anything else when they had very, very complicated and inefficient bartering.
It finally advanced in history when they accepted the notion that a universal money like gold and silver, the precious metals, all of a sudden it advanced trades and development.
And this is something that is recognizable when money fails.
And our money's been failing.
And we can talk a little bit about that history on how the Fed deliberately did that because they wanted to enhance the power.
But now that we're seeing the failure, in spite of the problems that it is claimed we don't have anymore and everything is hunky-dory in this in this economy that we have, we have a lot of problems basically around debt and the debt accumulation.
But around the world, the world depends on the dollar.
We're seeing the failure of the system, whether it's Turkey and the Euro and Spain and Italy and Venezuela, all these places.
But guess what?
You don't have to guess, Chris, because I know you've thought about it.
There are people now that are working on a strategy of what's going to happen after the dollar loses its reserve status.
And I think that is a big issue.
Yes, and our position is for as many people as possible to understand the importance of gold, silver, just market money.
And as you mentioned, these were created, these were chosen by market participants because of the qualities they had.
Now, the reason government hates it is because government is about power and they don't want any financial checks by the population.
And right now, they have none.
They can finance whatever they want, whether, and it's all the things that we hate.
They could finance their wars.
They could finance their bailouts of their cronies or foreign countries or God knows who they're bailing out.
And because they can create the money.
They do not have to come to us and ask us.
So they basically do as they please.
And that's why they hate gold.
Yeah, and the Fed is their weapon.
You know, the challenge to gold comes from the Fed, and that is a weapon.
And they have to challenge the middle class.
There is a transfer of wealth from the middle class to the wealthy, even though it's, you know, argued that, oh, no, we're spending this money for the welfare state.
But we know who gets bailed out and how the system works.
And the warfare state does much better.
The military-industrial complex does much better.
So they know exactly what's going on.
And the gold, you know, since it originated in the marketplace right now, that's where the demand is coming.
I'm not at the point where I think they're going to have a success with the latest proposal in Venezuela, but at least they're talking about devaluing and then having a convertible currency into a crypto currency backed by oil.
Well, that's not quite there, but it also means the pressure is that the people want something better.
The people are rebelling.
They're the ones who suffer.
And the people have always been more sensible about this, but immediately governments take it over.
And sometimes we've had periods of time in history, whether it's the Roman Empire or the Benzentine Empire, and various empires have used gold, and this worked rather well.
But ultimately, when those empires fail or they overextend themselves, they debase the currency and then they have to start all over again.
And I think that's where we are today.
But on the surface, I don't think the American people are quite aware of this because they're still saying, yeah, there is a trouble with the cost of living for the elderly.
And therefore, that's why we need socialism.
Students have trouble paying their bills and getting through college.
We have to give them free education, free medical care, and they don't think through.
But I think more, I think that's propaganda for the bad guys to try to change the government toward a strongly authoritarian state.
And that's why they talk about the socialism.
But the movement, I think, will drive the average person will because the people who survive in these countries just think the very few that might have had some gold coins and silver coins or could get out of town and have their wealth preserved in a sound way, they do much better.
But it also leaves a mess because this leads to class warfare.
We already have that.
There's so much hatred going on.
And I think that's a lot of this political stuff going on right now has a lot to do with the distortion of wealth distribution and that the prediction that Mises made has come true.
The middle class gets wiped out.
Believing in Gold's Role00:10:47
And I remember talking about gold early on, even in the 70s, especially.
And I had a union leader come up to me who was a bit sophisticated.
And he came up and he says, I know what you're talking about.
Gold has always been the friend of the working class.
And a lot of people, you know, sort of frown on that.
But that really is true.
It protects the purchasing power.
It protects us real wages.
Real wages go up.
There's so many things that you can argue.
And yet we're challenged and we have to challenge them.
And that is the universal teaching in our universities.
I mean, that is really the problem.
You know, whether it's the cultural Marxism in the social sense or whether it's the economics of Keynesianism or socialism, those are the things that we have to challenge because we're confident enough that liberty can answer these questions and protecting liberty at the same time of enhancing prosperity.
That's a worthy goal as far as I'm concerned.
Yes, and I believe, and I have no proof of this, that Ben Bernanke knows that gold is money.
He just can't say it.
That would be for the central banker to say gold is money.
Americans are not supposed to think that gold is money.
So much, so many years of propaganda have been invested to have Americans just dollars are it.
But you know, the world is a lot bigger than America.
And the areas of the world where a majority of the population lives, China, Russia, they're, you know, China recently set up an oil for gold exchange.
Russia has been stockpiling gold.
Recently, Turkey's president Erdogan, I have a quote from him.
He said, why do we make all loans in dollars?
Let's use another currency.
I suggest that loans should be made based on gold.
Well, how about that?
So gold really is thought of money around the world.
It's just America.
We're kept in a bubble over here.
Yeah, they're at least thinking about the right thing and going in the right direction.
But if you look at our history and the history of the Fed and how they have accommodated these special interests, the Fed systematically since 1913, a little over 100 years.
They didn't do it overnight and they didn't do it one year at a time.
But over time, they took a dollar that was equivalent to $20 was equivalent to one ounce of gold.
And systematically, they changed all that, you know, to the point where even in the depression, they took away our right to own gold because gold is the friend of the middle class.
And they were moving in, the socialism and welfarism and big government was moving in.
So they had to suppress anybody, you know, being able to protect themselves.
But what they do is they have to do a lot of rigging.
They know that gold is important.
But if gold prices go up, that's a vote against the dollar.
So for years and years, and even now, they spend a lot of time fudging and rigging the price of gold because right now, you know, gold is a little over $1,100 and they say, see how bad it is.
And they rate it and that it's not a good haven.
But the gold has actually protected a lot of people over a lot of years.
And the government, you know, will do anything and everything to knock down gold because gold tells the people what's happening to the dollar.
And for years and years, when I started studying Austrian economics, gold was rigged at $35 an ounce.
It was a terrible gimmick because the Americans weren't even allowed to own it.
Foreigners could.
But finally, we, you know, we were exhausted too many dollars and not enough gold.
So we had to declare the monetary bankruptcy.
We couldn't do it anymore.
So they had to give up on rigging the price and pretending it was worth $35 an ounce.
But then again, they have continued to do it.
I am convinced that they're in the gold market and they suppress the prices.
But ultimately, it wins out in the end.
And even though people are really, really worried about today's price of gold because it's not where they think it should be, just think of the people who believe that gold was more than $35 an ounce.
They went years and years before the market overwhelmed and told the world what the price of gold was.
And it turned out that as soon as the guarantee that it would be at $35 an ounce, all of a sudden gold overshot, of course, and went up to $800.
But I think right now that's what they're doing.
And the traders are very, very important.
Gold is a commodity.
Money has to be a commodity as well as a money.
And traders are looking at everything.
But ultimately, the rigging of the gold will fall down.
They will not work any longer because they kept it, even though it went up to $800, it went back to $270.
You know, just a short while ago, it went from $270 in the year 2000, and it was up every year for 10 years and went to $1,800.
But now it's down to $1,100, $1,200.
And people think, oh, gold, I guess, is not money.
Why would anybody want to get involved in that?
But if you look at it long term, the biggest number that I think people should watch and wonder about what's happening in the gold market is the debt that we're running up.
If we're running up a lot of debt, people are starting to run out of loaning us the money back again.
It will push interest rates up.
And if they do that, if they do that, they have to print the money.
For the bailout of the terrible crisis they created, the Fed created 08 and 09, you know, the great recession.
They wouldn't call it a depression.
What did they do?
They took the balance sheet from less than $1 trillion and increased it fourfold, over $3 trillion.
And it didn't work.
It just sort of is working right now.
And everybody says, oh, it's over.
It's finally over.
But the thing is, you cannot say it's over until you see an adjustment to the debt.
And the debt, the debt at this size has to be liquidated.
That's what it's all about.
That's why they actually want inflation.
And who does it hurt on the inflation?
It's the middle class.
It's the retirees.
So that's why the middle class and retire needs the gold standard because that produces savings.
It produces, it is a sign of liberty and that the market will work.
But people who do not believe in the market, they do not want gold.
They do not want gold to break out.
But markets always are stronger than the government.
And we are in this transition, Chris, is the way I see it.
The transition between all the lying and the scheming and the printing and the power that we as an issue of a reserve currency, that will come to an end.
And I think it is ending.
I think we're definitely in a transition.
And I think it's shifting.
And a lot of people made this point.
It's shifting from west to east.
And that's why you see the accumulation of gold in places like Russia and Japan and also China.
And they're going to be in the driver's seat.
But we don't need to worry about it if we do the right thing.
Restore a sound currency and restore the liberties of the American people and get out of this belief that we have to run the world.
I think that's where the real problem is.
I agree, Dr. Paul.
And I'll finish up echoing you.
You know, one day this will stop.
And the more people that understand the truth and how to move forward in the correct way, that's our goal is to help you to get to that point.
Because we live in America in a propaganda bubble.
If there's one thing that Donald Trump has done, and we're not big fans of his, but he has exposed the media for what they are.
And it's not just the media.
It's government schools, like what Dr. Paul said about the professors and universities.
These are all ideas that are just drilled into you from the moment you're bored until you're gone.
But there's another way you can get yourself individually at your mind out of it.
And that's just not, don't believe them anymore.
Think.
Take these ideas in.
Make up your own decision.
It doesn't have to be gold.
Just understand why the system is the way it is today and take care of yourself and your family.
Well, I'm going to close with a little story that I've told before and has to do with a short conversation with President Reagan about gold because he was known to support the gold standard.
And I was serving on the gold commission in his first year in office.
But I had an opportunity to visit with him and he made a statement, which I believe to be very factually correct.
He says, all great nations that have gone off the gold standard no longer remain great.
And if you think now that his interpretation is exactly what's been happening to us, we still have great power and we still are occupying a lot of people and throwing our weight around.
But the greatness of the country in the sense of our liberties, our privacy, and our getting along together, you know, it's been being undermined.
So I think money is very important.
If you have dishonest money, you have a lot of dishonesty in the people.
But the basic flaw in it is that it enhances the power of the people who pull the strings on what is really happening.
That is the deep state, the banking system.
All these people have to have this type of system.
And then they always say, yeah, it might not be perfect, but we'll be prepared when it comes.
And many of them will.
Many of them who know it, probably along the way, they'll be buying gold and all of these things.
But they don't care about the middle class and they don't call about liberty because the undermining of liberty comes from this idea that you can spend and at will for anything just to maintain the support for special interest.
At the same time, don't worry about the debt, print the money.
And then you have the intellectuals come in and say, yeah, that's good philosophy.
There's nothing wrong with deficits.
These conservative libertarians think that you should pay for what you have.
Well, if that were the case, why is it that individuals and small companies, if they run out their debt too much, they eventually aren't able to borrow the money and they go broke and they have to be liquidated.
So the liquidation of great nations and great powers is different.
The liquidation is the undermining of the whole system and also the weakening of the middle class and the destruction of the middle class.
Think Zimbabwe, Think Venezuela00:00:20
And too often it's class warfare.
And when you think about the chaos of the extreme example of what I'm talking about, just think Zimbabwe, think about Venezuela.
It's not good.
We can prevent this and we certainly ought to present the answer to the problems because we're moving in that direction.
I want to thank everybody for tuning in today to the Liberty Report.