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Nov. 6, 2020 - Ron Paul Liberty Report
27:14
The Last Gold Rush…Ever! - With Special Guest Charles Goyette

New York Times bestselling author Charles Goyette joins today's Liberty Report to talk about his new book, "The Last Gold Rush…Ever!: 7 Reasons for the Runaway Gold Market and How You Can Profit from It," and about the coming big economic crash. What to do? Watch the program!

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Time Text
Money and Gold 00:03:10
Hello, everybody, and thank you for tuning in to the Liberty Report.
With me today is co-host Daniel McAdams.
Daniel, good to see you today.
How are you this morning, Dr. Paul?
Good.
We're going to have a good program today.
We have a very special guest, and I will find this very interesting because he is somebody I've known for a long time.
His name is Charles Goyette.
He's written a book along with Bill Haynes.
I've known them for a long time, and I still hold it against him for getting me involved in running for president because they were a conspiracy behind the scenes to try to say, oh, you're going to be president next week.
You know that, don't you?
But anyway, they've been good friends.
And one reason why I've worked with and know so much about Charles is that we have worked together.
He was involved in the campaign.
And also, I got to know him because I found out that he really knows a lot about Austrian economics.
Charles, Charles Goyet, welcome to our program.
Dr. Paul, it's so great to be on your program.
Good to see you.
And Daniel, great to speak with you as well.
Very good.
And the main reason why we have you today is your book came out, a recent book.
I don't know, is it third, fourth, or fifth one?
You had a bestseller, New York Times.
So this is not your first book, and it's on an issue that you're very well versed on, and that has to do with money and the issue of gold.
If you're looking for sound money, you have to talk about gold.
Now, I want to just put up the book here so people get a view of it, and we'll be talking about this.
And also, this book is available on Amazon.
So we hope that you'll find it interesting enough to go to Amazon and purchase one of these books.
So I want to start off, Charles, with sort of a generalized question that I like to find out.
And even though we've known each other for a long time, I don't think I got ever asked you this particular question because most libertarians like to know, how did you become a libertarian?
Was there influences?
Of course, mine is not complex.
I said, I was born that way.
But other people will say, no, I had somebody influence me.
I read a book and that sort of thing.
Did you have any vent or meet somebody that influenced you into accepting the libertarian view?
Well, I had a congenital disposition to like freedom, but probably got introduced to Austrian economics in the 70s from investment newsletter writers.
And I've read a number of, regularly read a number of investment newsletters.
And I started running across names like Rothbard, Rothbard, and Mises and looked into it a little further.
And as a matter of fact, dating myself, it was back in the 70s, shortly after I came across Austrian economics that I came across a fellow in Congress named Ron Paul too.
So it all worked together for the good.
Well, good.
And obviously, you and I and Bill and Daniel, we sort of come up to an agreement that the money issue is pretty important.
The End Game of Empire 00:13:43
You know, you can talk about some of the things that we spend our money on and say, well, we shouldn't be spending that money on.
The answer is quit spending the money on that.
But the bigger picture is how do you finance this?
You know, you have to pay for it no matter what they tell you.
Government doesn't do it.
The people have to bleed, and they have to do it.
But the government can do certain things.
One of the common things they do is they just tax us.
But there's a limitation on taxes.
And then they also will borrow money.
Then there's a limitation on borrowing money.
And then they come up with other things too, and one that they have done notoriously, and you certainly talk about this in your book, that over many years, what they do is they dilute the value of the money, and it's sort of a sinister way of taxing people.
And this is the way they pay for things.
So this has to be a concern of yours about how the connection.
I want you to just visit with us a little bit on the connection about the monetary issue and the bigness of government and the ability to get away with stealing money to pay for all these bills.
But as you well know, it won't last forever.
And it is, I'm glad you used the word stealing money because it is, it's actually stealth taxation.
And we have perfectly, not that I approve them, but we have perfectly established means of raising taxes of the state raising revenue for things that their representatives approve of.
But now we have this backdoor means that we've had for over 100 years in its present incarnation.
We have this backdoor means of the state financing wars, getting involved in all kinds of social policies and so on without the approval of the elected representatives.
So they just print the money.
And, you know, you talked about this many times.
And I like to use the term print the money, even though it's done digitally because it has this kind of opprobrium.
People understand, hey, yeah, they're printing it just like counterfeiters.
But this is what they do.
And they have become desperate in this policy in the last few years.
And you know something, Dr. Paul, thinking back to the beginning of the Federal Reserve, it was sold to the American people in part because there were, well, for a couple of reasons.
One of the things is the banking panic of 1907 was fresh on people's minds.
And so the people that promoted the idea of a centralized national bank knew they had a problem on their hands.
How could they market this?
And they were very, very clever about how they sold it to the people.
And so they called it, first of all, they called it federal because they wanted to invoke the power of the United States, a growing, strong, prosperous country.
And they didn't dare call it a bank because they knew that the populist American people had a predisposition against a national bank.
So they called it the system.
So it was a federal system, but the operative term for it was reserve.
And they used this reserve function to sell the American people on the idea that there would be one central place where banks would put excess deposits and so on.
And there would be a reserve of currency that would be available if there was a bank run or a bank panic in one region or another.
And it would be so big that it could solve and stop bank panics in the future.
And the reason I mentioned this, Dr. Paul, is something very, very important happened this year that went almost, almost without mention in the financial press.
In May, Jerome Powell, the chairman, and the Federal Reserve Board, bulldozed this whole foundation, this whole reason that they, for the justification for the Fed, they got rid entirely of the Fed's reserve function.
So the whole rationale that was used to sell the Federal Reserve to the American people to begin with, that this bank, you know, the idea, of course, was for the banking cartels to have somebody to bail them out when they got in trouble and to use money in extra legal or extra extra legal ways to fund wars and regime changes and so on.
And all that was perfectly effective.
But the idea that the federal central bank would hold reserves in case there was a panic has been tossed out the window.
They just got rid of it.
And of course, they're able to do that because they've reached the point of money printing madness now that they wonder what is the point of having a currency reserve if there's ever a problem or a run on the bank.
We'll just print more.
Right.
Daniel, you have a question?
Yeah, I'd like to go over to the book a little bit, The Last Gold Rush Ever.
You know, I mean, we often get way too caught up panicking about the huge things, the big things.
We just had a presidential election.
Everyone's in a panic.
And I think we're all, the three of us, are as guilty as anyone, panicking about the big things that we really can't do very much about.
Now, your book is important, I think, because it focuses on the small, important things that we can do for our own selves, our own families, and our own futures to make things better and to hedge against what you see rightly, I'm sure, as a disaster coming.
Maybe if you can outline a few of these small things that we can do to help empower ourselves against this.
Well, I think the big thing is that people need to insulate themselves from this failing system.
And the signs of failure on the current monetary system are everywhere.
I noted the other day a senior Fed official, long-time Fed official, was replicating speech from other Fed officials saying, oh, we're looking to Congress now.
We've got to look to Washington.
We've got to look to the new president of the new Congress to do something with fiscal policy.
In the meantime, you know the new Congress is going to come in and they're going to ask the Federal Reserve to fix our problems with monetary policy.
And so the Fed's going to look at Congress and Congress is going to look at the Fed and it's going to be business as usual.
And it brings us kind of to the end game that we talk about.
And that's the reason we call this the last gold rush.
It's not about mining or prospecting.
It's about the last rush of people out of the dollar as it fails in its present form.
And so we suggest that people begin to insulate themselves from the failure of the U.S. dollar and similarly situated foreign currencies as well.
And the best way to do that, of course, the enduring money of the ages has always been gold, and it will continue to be gold for so long as most of us watching this are alive, that's certain.
Charles, now that we have several members of the Congress that admit, or at least they're identified now as Marxists, and that's four women that are very engaged, and they easily got re-elected this week in the election, and they're back in Congress.
But they have something that they advertise and advocate, and that is the modern monetary theory.
And it's almost like, oh, this is something pretty new, and we're going to modernize it, and we can take care of this.
And it deals with the Federal Reserve, and I'm sure you're aware of what they're talking about.
But why don't you give us a brief assessment of what you think they're thinking about and what it really is?
Yes, they're thinking that there never has to be a financial reckoning.
They're thinking there's only one side of the balance sheet.
They're thinking that they can spend.
You hear this in political campaigns.
They only talk about programs to spend.
Nobody ever talks about, well, where does the money come from?
And this is an evolution of even the old Keynesian economics.
Even the Keynesians said, well, you know, in good times, maybe we could restore the surpluses.
They never did that.
You know, they just continued to spend money in good times and bad.
But the modern monetary theorists have the idea that there doesn't have to be any financial reckoning whatsoever.
They have the idea that as long as the government has a monopoly on printing money, everything is affordable.
There need be no accounting.
And I watched the introduction of this concept over the last few years, as I know both of you did.
And I thought, well, this is going to be nobody in their right minds.
This is an endgame philosophy.
I mean, we've seen this, you know, I don't know, Gideon Gano in Zimbabwe 10 or 20 years ago.
We saw it with Dr. Havertstein in the Weimar Republic when they printed their way.
We've seen this before.
I wonder how many times this lesson has to be learned.
But people like Professor Stephanie Kelton and now a big subset of members of Congress all have subscribed to this idea that there need be no reckoning.
If we want it, we can have it.
And that is, as I say, it's an endgame scenario.
It's a real, it's banana republic economics.
And it's a very sad thing to look at the United States and realize that we've gone down a banana republic pathway, but that's what they have us on.
Yes, for sure.
That sounds a lot like me, Charles, when I got my first credit card when I first went to college.
There's no day of reckoning.
This is going to be great.
And then I got a bill and a couple of bills.
Oh, you have to pay.
I changed my tune.
It wasn't so fun all of a sudden.
But I was wondering if maybe we can kind of speculate a little bit.
And I know that you write about this in the book, but maybe what would you say?
What does the end of the U.S.-led New World Order look like?
How does it all end?
What does it look like post-collapse?
Would you say?
Yeah.
This one is different.
And I try to, and Bill and I try to distinguish this from other prior gold bull markets.
You know, most of the time, bull markets and gold are fueled by things like money printing.
They're fueled by monetary policy.
They're fueled by debt, by exorbitant debt.
And this has been the case with bull markets in gold and silver throughout history.
This one's a little different.
The best example I can think of is when arson investigators go to the scene of the fire, they don't just look at the fuel that's in the construction of the building that went up, you know, the wood framing or the particle board or whatever might have been fueled the fire.
They look around for the accelerants, the things that were used to drive the spread of the fire.
And this is what we do in the last gold rush ever.
So we start off, of course, with the foundational issues of debt and what the deep state, well, we call them the deep state money manipulators, what the Federal Reserve have done with monetary policy and money printing, and what Congress and Washington have done with debt.
But we're also focused on a number of additional accelerants, things that will fuel this, making it different than just an ordinary or a secular gold bull market, the one that paint this, that stain this with the signs of an endgame.
And those things include, for example, the accelerating currency wars, trade wars, war on cash, the ending of American political, geopolitical hegemony, the spread of Banana Republic economics, its new popularity in the United States, and then the ending of the American global military empire.
And this is crucial in the last two gold markets, bull markets in the United States back in the late 70s and the one that topped out in 2011.
The American military empire wasn't on its last legs, but it is clearly there now.
And the pattern that we describe is that when people, when conventional politicians, and by that I mean Republicans and Democrats alike, look at America's waning geopolitical might and threats to its military empire, to its global hegemony, they think that the answer, you know, it was economic vitality that made America mighty.
It was its economic strength.
It was its powerful domestic economy that made it mighty.
But these people, like the Mike Pompeos of the world and the Bidens and the Trumps and so on, they look at America's waning geopolitical authority as an excuse to beef up or a problem that is to be answered by spending yet more on the military, more on the overseas empire, more on international intervention.
The consequence of that, of course, is to drain those resources from the domestic economy.
So the fundamental problem of the overstretch of the empire, besides its inhumane qualities, the fundamental economic problem is it drains the resources that made American Might possible to begin with.
And this is what I see.
And, you know, as you both know so well, that empires on the edge, on the ragged edge that see their power or authority waning, they often lash out.
They try to distract the masses, to busy them with the foreign wars and so on.
And this is clearly, clearly what is on tap for the United States.
The establishment politicians, governing classes of both parties, you know, are not going to let the American empire end easily.
It's going to end badly.
And of course, the reign of the dollar, the global reign of the dollar, is coextensive with the empire, and they rose as one and they will fall as one as well.
We talked a little bit so far about how governments collect money through the monetary system, and it's really a taxing system.
War on Cash 00:04:56
But they're also, they work on this whole idea that people shouldn't have cash, they shouldn't use it, and they're working toward a cashless society.
And this involves not only the monetary mischief they do and paying for governments they shouldn't be paying for, but it's also very, very invasive of our civil liberties.
So tell us a little bit about what's going on.
And do you think this is a passing fancy?
They've talked about it.
I know they've talked about it for a lot of years.
But it seems like there's a slow movement.
But how do you analyze that?
Have they gotten very far?
Are they going to move quicker?
Or when do you think they'll get pushed to canceling out?
I come up with a problem with, you know, 15 or 20% of the people never use banks.
So how are they going to do that?
I hope they have a problem.
Yeah, they have a problem.
Well, again, the establishment, the establishment classes, the governing classes see a lot of virtues in ending people's use of cash.
It brings everybody into the national surveillance state.
I mean, they can monitor, you know, they can monitor everything you do with the elimination of cash, not just most of the things that you do, not just your communications, but every commercial activity.
And they have a lot of other ideas.
The war on cash is a means of, they want to stampede, they want to herd and corral human beings like cattle into the financial institutions.
And once there's no cash, once everybody's money and their wealth is institutionalized, they can instantly transmit policy changes, tax rate changes and stuff without worrying about compliance.
So I think the war on cash is, in fact, I'm sure that the war on cash has picked up a new momentum now, particularly with interest by so many Fed economists and others in negative interest rates.
You know, who is going to deposit their money in the bank to withdraw it a year or two later for less than the principal they deposited, but this is the theory of negative interest rates.
So the only way they can really successfully impose a negative interest rate regime is by institutionalizing everybody and getting rid of cash.
But, you know, there's something even more fundamental that the war on cash says about what these people's view is of you and all of your viewers and all of the American people.
And it's something that, you know, we address sometimes we address it inadvertently, sometimes more directly.
But I think it's as crystal clear as possible.
Kenneth Rogoff, one of the Harvard economists, written a book about the war on cash and getting rid of $100 bills.
And he and Larry Summers and all the same old cast characters, almost the criminals, but the same cast of characters.
You know, they're really pushing a war on cash right now.
And Rogoff has written a book about it, and he even says basically that here's a great idea.
We want to make cash, we want to make coins solely inconvenient.
We want to make them bulky.
We want to make them a problem so that American people won't want to carry them.
And then when they won't want to carry them, then they'll gradually relinquish the use of them.
So here's the idea.
They want to burden the American people to achieve goals of the state that were never approved by the American people.
So it frames a question that goes back in philosophy almost forever.
Who's in charge here?
Jesus asked this question, in fact.
He was accused of healing on the Sabbath.
He said, well, was the Sabbath created to serve human beings or were people put here, basically like ants in an ant colony, to serve the bigger institution or to serve the Sabbath?
And by the same token, it is clear that these people that are heading the war on cash have the idea that the people are here to be treated like cattle, to be inconvenienced to the max to achieve goals of the state.
So their order, their hierarchy is that the state is superordinate and the people are subordinate, the property of the state.
And this is a battle that we have to fight on many, many fronts that we've all been fighting for a very long time.
Yeah.
Charles, you mentioned and talked a little bit about the deep state.
And we have our Ron Paul Institute for Peace and Prosperity, and we talk a lot about that along with the Fed and the finances.
Because I work on the assumption that the people wouldn't pay for these wars.
And that's why honest money might keep the politicians on it.
But it would also be a good way to rein in the military-industrial complex.
But it seems like the various empires throughout history have done it in various ways.
Coronavirus and Currency Manipulation 00:04:26
Sometimes they just steal the gold, and sometimes direct taxation and other things.
But right now, it's through the currency.
But to me, it's amazing that they've been able to keep this thing going for as long as they have.
And because the markets work real hard to deflate.
The government wants to inflate and keep it doing.
They keep saying more inflation, more inflation, and we're going to get it up to 2%, maybe 3%.
And yet the market says to deflate.
And I see that there's a connection between this and what coronavirus has done because coronavirus is deflationary in the sense that it wipes out a lot of businesses, the ones that don't deserve it, but a lot who probably were in weaker shape.
So that is a liquidation.
And yet they're still getting away with this.
But it almost seems like it's been a convenience to have the coronavirus have deflationary forces, and you didn't have to depend on the correction like we had in 1921.
There was a correction.
They cut back and they had a liquidation of debt and they got over it.
But those were different times.
Do you think that what's your explanation for why they get away with this for longer than some of us probably would have ever expected?
I don't know, but it reaches a point at some point where you have, in fact, in Mises' term, you have the crackup boom and people start to realize that it's not just a matter of prices that are rising, but the currency itself is losing value.
But I call them the deep state money manipulators for the exact reason that you've described.
They've been able to do these things without the attention of the American people being focused on who they are, the tools, the means that they bring to bear.
And the coronavirus has been a good example of that because we've actually, we were talking earlier about modern monetary theory.
We moved into modern, we moved out of helicopter money and into modern monetary theory with the COVID shutdown and the Fed's ability to just create $3 trillion out of nothing and to get rid of the reserve function, by the way, that I talked about earlier.
So they've got, you know, whenever there's a crisis, they're able to get away with an awful lot of things.
But they have moved us into modern monetary theory and they've moved us into a frenzied game, I would say, of money printing.
And it's kind of an endgame.
And I feel like the authorities sort of know it.
And they're scrambling around to come up with things that they can do.
So they're talking about a national Fed bank that everybody must be a member of.
They're talking about Fed bonds that are in everybody's account.
They're talking about Fed crypto wallet, Bitcoin, Federal Reserve run currency.
They're looking around desperately, knowing that they've got a problem and one for which there is no solution except the return to honest money.
But they never relinquish their authority willingly.
They'd rather go down with the ship, in my experience.
Yeah, and it's my opinion that the longer they can get away with this by propping things up and having a balance between the deflationary forces and the inflationary forces, and they get by with it.
But the bubble, the debt bubble, is the one that I'm concerned about the most.
That keeps getting bigger and bigger.
So in my estimation, I think that means that when the market overwhelms, and that goes along with what Misha's anticipates, then the pain and the suffering is going to be a lot worse.
Well, let me just say that I think that you get the idea that they've reached the limit when exactly what is going on now begins to happen.
And that is, you know, foreign governments moving their dollar reserves, the dollars they once held in reserve, and exchanging them for gold.
So it's sort of an open secret.
The other central banks of the world don't mind cheating their own citizens with their own fraudulent fiat money.
They just don't want to be cheated by ours any longer.
And so this is a clear symptom that we're at sort of what we describe as the crossroads of history.
Charles Great: Book Remind Close 00:00:45
Charles, this has been great.
We're going to have to call a close to it.
I'm going to put your book up again to remind our viewers that they need to take a look at this and go to Amazon.
They can catch it there and buy it there.
But Charles, this has been great because I think our audience will be very much attuned to just about everything you said.
So I want to thank you for being with us today.
Well, thank you both very much.
It's great to speak with you both, and it's great to be on such an important program.
I'm a great admirer and a fan of the show.
And so it's an honor to be on here.
Thank you very much.
Very good.
And I want to thank our viewers today.
That helps us very much to keep us going.
So we appreciate that very much.
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