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June 3, 2022 - Ron Paul Liberty Report
26:32
"Woke" Capitalism Is An Economic Disaster In The Making

Every form of authoritarianism has been tried (many times over) in an attempt to turn free human beings into obedient robots. The failure rate is 100%. "Woke" Capitalism, with "ESG scores" for corporations, and "social credit scores" for individuals, are merely the newest iteration. They too are destined for disaster. The costliest lesson in all of economic and political history is that freedom always prevails.

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Gold and Inflation Confusion 00:05:49
Hello everybody and thank you for tuning in to the Liberty Report.
With us today is Chris Rossini, our co-host Chris.
Welcome to the program.
Great to be with you, Dr. Paul.
Very good.
We're going to start off today, Chris, by talking about somebody that I've quizzed on a couple occasions when I was in Congress.
She used to be the chairman of the Federal Reserve Board, and also she's still a very important person.
That's Janet Yellen.
She's the Secretary of the Treasury now.
So she's on the know-how.
And so right now, there's a tinge of truth released this weekend.
And I don't know what it means.
I don't know whether that means that Yellen telling the truth, there's a change of heart, or she's been reading Austrian economics or just what's going on, or somebody caught her in an inconsistency.
That, of course, is somebody asked her this week and asked Chairman Yellen that, you know, a year ago you said such and such, no big deal, you know, on inflation.
It's one of these things that we can handle and it's pretty mild, transitory.
Well, she had a little confession.
She said, well, it didn't work out that way.
And she says, I made a mistake.
That's pretty amazing.
But I think she was caught in the mistakes, but she came clean.
But you don't usually get that type of answer that's so clearly matched, even though we know that they don't know exactly what they're doing.
And, you know, she said that she just didn't understand it.
And she has some reasons why she got mixed up.
She didn't measure this statistic and that statistic.
But it did make the news.
But, you know, here we have a person that's really up on it.
And she's been a professor, written books, the expert.
And somebody said, Ron, if you were there and she was coming before the committee and you had a chance to quiz her, what would you ask her?
I said, well, let me think about that.
I think I would ask her, Chairman Yellen, have you ever heard of this system of economic policy called Austrian free market economics?
Have you ever heard of this stuff?
And I'd wait and see what happened.
Maybe it would be like Bernanke.
Maybe there'd be a long pause.
Remember when Bernanke, I asked him, you know, is gold money?
And it was, you know.
So might have gotten a result that.
But I wasn't there and she wasn't there, but she's still in an important position.
But I can see why people could get confused about the monetary system.
You know, the Constitution still says money should be backed by gold.
And that's important.
That doesn't happen.
But the people in Washington have neglected the Constitution on more than one time.
So that's not a big deal.
There's nothing different.
But she evidently, though, is acknowledged and she's respected and she has these answers.
And I said, well, if she's confused and has no idea that inflation was coming, then the country has a problem.
Because the Austrian answer to this is, well, the inflation was already there.
It isn't coming.
No.
This is why it's so important to get the separation of monetary inflation and price inflation and just call it all price inflation because they don't want you to use monetary inflation because then you have to address the Federal Reserve system.
So she has participated in the confusion that goes on.
Now, all I can say to our viewers today is I can understand, especially if you're new into understanding the monetary issue and what gold should be used for and whether it is a haven and what we should do about the monetary system.
And one thing is, you know, I'm working with partnering with a company called Birch Gold.
And they have a lot of different ways you can invest in gold.
And they have people that will answer questions because it isn't like the only thing you can do is walk into a shop and buy an ounce of gold, something like that.
There's different ways to put it into retirement accounts.
And there's different ways of interpreting, you know, the period of time that we're in.
Sometimes people are pretty smart and know the short term.
But anyway, if you have any desire to talk with somebody at Birch Gold, the number is on the screen there.
You can give a call and they will help you make a decision because when the Bretton Woods broke down in 1971, gold wasn't even legal.
I wasn't even technically allowed to have gold.
But there were gold dealers because you could still sell precious coins and things like this.
So we were able to get it.
And of course, the amazing thing is when gold broke down in the 70s, it went from $35 an ounce to over $800 an ounce.
So it was contained for all those years.
40 years we weren't allowed to own gold.
Chris, you know, the one thing that this has encouraged, this corruption in our monetary system, is something that we refer to all the time, and that's corporatism.
It causes the businessman to work in cahoots with the legislators as well as the Federal Reserve.
The collusion with the Federal Reserve is sort of behind the scenes because they're the deep state.
They don't tell you what they're doing.
Corruption's Grip on Corporatism 00:16:11
You have to guess what they're going to do.
But usually the evidence is in the marketplace.
We know when the inflation comes and what's causing it, even though we wouldn't get an answer from Yellen that she understands it.
So maybe we should send her a book or two and ask her, find out what this Austrian economics is all about.
But Chris, I know you've thought about and have written a bit about corporatism.
And we've sort of liked that term to describe what has been going on in this country.
Right, Dr. Paul.
And we're covering specifically what is known as ESG, which stands for Environmental, Social, and Governance.
And basically, these are social credit scores for corporations.
You know, those who look to centrally plan the economy, the world, they love to do scores.
You know, this earlier this week, we were talking about, do you know what your green carbon score is, you know, tongue-in-cheek.
But they're serious about it.
They want to score us as individuals and they want to score corporations.
And based on that score, you're going to be rewarded by, you know, obviously the state and probably most importantly by the huge asset managers, the investors, like BlackRock, Vanguard, and State Street.
Those are, they're known as the big three.
And, you know, I was looking them up, and it's astonishing that 90% of the SP 500, one of those three, are the largest shareholders out of 90% of those companies.
So is it really a surprise?
You know, and a lot of people are noticing this: that these big corporations, no matter what the quote-unquote latest thing is, they all march in lockstep with one another.
They just follow one another.
It's become very predictable that when something happens, I'll read on Twitter, oh, here we go.
Now all the corporations are going to pile on and all say the same thing.
You know, it's very obvious because this is not natural at all, because you can't even get the five people in a single household to all agree 100% with one another.
And all of a sudden, all these big major corporations are all saying the same exact thing at the same exact time.
You know, we can see why they're all doing this.
They have leverage.
There's asset managers and the politicians that you all have to toe the line, otherwise, you're going to be punished either legislatively or with your stock price.
So that's the enemy that we face today.
Obviously, the antidote is free markets, which is a separation of corporation and state.
But right now, this ESG and woke capitalism are the problems that we have to deal with today.
Chris, you've explained that very well, and that helps us all to understand the collusion that goes on between the corporations and the monetary authorities.
And a lot of that is deep state stuff.
You don't know about it.
But we do know a lot about BlackRock.
And Chris mentioned there's three major asset management companies, but BlackRock is a big one.
It's the biggest, the biggest in the world.
Fink, Larry Fink, has under his authority to manage $10 trillion.
He has more authority and more manipulation and more intrusion than even the Federal Reserve.
And guess what?
When there's money to be distributed and some of these emergency funds go out, they have used him as the advisor and the one who will make sure the money gets distributed fairly.
So it's a real shame of what goes on with that because the collusion is that they can threaten people.
I mean, with that much money on the assets and they have control of this stuff, the policies of the government can be carried out because the people whose money is being held can accomplish a whole lot.
Now, the worst part of this whole thing about ESG and BlackRock is that Larry Fink is a cultural Marxist.
He's one of these guys that's into this environmental stuff, radically so.
And so, what does he do?
These companies, and there are people, though, he's responding in a way to a market because there's a lot of people been terrified and told about how important the environment is, and you can invest in good companies.
And a lot of that goes on, so he can become the judge, even though in recent weeks and months, he has been under some pressure because, you know, the profits aren't always going to be the same.
And sometimes people hear, you know, he's one of these radical environmentalists, and it's not good for a lot of the businesses because there's a lot of deception that goes on.
But he is able to put the threat under them.
And this is why these big corporations do what the government wants, and then the government says, not us.
And they have the same type of arrangement with the social media.
And that is where it really tells you how big a job we have is trying to get information out and the truth out about the monetary system and how government is run.
But there are threats and intimidation because there's so much control.
And the people who like it.
Some people say this is a good idea.
I want my money invested.
Sometimes they'll complain he's not doing enough of this mischief that he has signed up for.
So this is something that is a vehicle for how they control things.
And I think that until people realize this, that it will continue.
The situation is like this.
It's not a free market.
It is a deep state controlled market that are able to control the investment fund.
Can you imagine $10 trillion they have a say in how this money will be spent?
And the people go along.
What about you throw in the part of it will be the military-industrial complex.
They'll be part of that too.
And the government not only can do their bidding, but they can also deny benefits if the corporations don't go along with it.
But this explains, all of a sudden they say, how did they get those corporations to enforce all those dumb regulations that now it's turned to not have been proven harmful dealing with COVID?
And the corporations did that, and of course many of the local politicians went along with it.
And there's more and more articles now showing that, you know, most of this stuff was sort of fiction, you know, and that right now there's a statistic out to show India that essentially didn't inoculate anybody has the best percentage of people who are immune from COVID.
And it was all natural immunity.
So this whole idea that Bill Gates and Fauci know exactly what we can do, we can pressure them into doing it because of this financial situation.
So that, Chris, is something that is corporatism at its worst, and it will lead to more trouble.
The one thing that I think economically one could think about is inflation, distortion of the money system, lower interest rates than normal, a lot of cash going out causes inflation of prices and malinvestment.
People making mistakes because they're getting the wrong information.
But add on to this, somebody managed in the country and he's a devoted climate believer.
And so you mix that in because that isn't based on the proper functioning.
Somebody said, well, you don't care about the environment at all.
But that isn't the case.
There's lots of ways you can take care of the environment without selling your soul and turning management and intimidating and threaten people.
If you don't do it our way, we're going to punish you or you'll not get the next loan or whatever that happened.
So Chris, unfortunately, we have a task.
We want to keep after understanding exactly what corporatism is.
Chris?
Yes, and people need to keep their eye on the ball.
We got a great taste of what this system is during COVID.
Notice it was the big corporations that did quite well during COVID, and it was the small businesses that had to close and they were locked down and this.
Don't go to this shop.
Go to Walmart where there's lots of people.
There you can do your shopping.
But there's a reason for this.
If you get rid of small businesses, all you're left with are the big corporations.
And they're all going to be towing the same line.
So you can see the thinking here of why, even with regulations, regulations throw small businessmen out too, because they favor the big corporations.
So this is, it's nasty.
But, you know, so you always have to push for small business.
They're our savior.
Need an out somewhere out of this beast system that they're creating.
But one thing we also have to have to stress is this is not communism.
There are still a lot of people that I read.
They're communists, communists, communists.
Communism is a deadly ideology, the deadliest, but this is not who we are facing against today.
Even when you say, oh no, the communist China communist, one of the biggest investors in China is BlackRock.
They have the same problem that we have here.
It's a merger of the corporations and the state, the big corporations and the state, you know, against, I guess you would say, the people.
And that's the power arrangement.
It's not communism where the state is the only owner of all the means of production.
There is private, at least in name only, and the state.
So that's what we are up against, and we have to keep that in mind.
Communism is not the big enemy that we face today.
Very good, Chris.
And, you know, right now people are talking more about a black swan event, meaning that there's going to be something pop up all of a sudden like Lehman Brothers did, and then a lot of ramifications from that.
So there will be a black swan.
We don't know the day, but we're in a big enough mess we don't even need a black swan.
We have a gray swan out there constantly.
And it's been very disruptive.
And the black swan event, though, really causes things to crash.
But, you know, right, and it may be something that the Federal Reserve will do, thinking, well, they don't understand what's going on, but there will be a policy.
Now, just two days ago, on June 1st, it was decided that once again, the Fed was going to pursue this issue of shrinking the balance sheet.
They have $9 trillion on the balance sheet, you know, and they've accumulated it, and it's a sign of that was inflated.
Now they want to get rid of it and sell it and put it back in the market.
They tried it a couple years ago, and as predicted, it didn't work.
After several months, they had to quit.
But also, COVID came along, and so they threw the tile in.
But now they're ready again.
They've conditioned the businessman.
They've conditioned the banks.
And we're going to raise the interest rate.
We're going to raise it slowly.
And we will help people when they need it.
But we're going to have a soft landing.
Well, I just wonder whether that's ever happened.
You can't gracefully get out of a mess that we have here now.
But anyway, starting on June 1st, they started the withdrawal of $9 trillion, $95 billion.
Every month they're taking out to lower the balance sheet.
Well, I'm going to make a prediction.
It won't last a long time.
I think the markets won't like it.
They'll yell and scream.
And no matter how well organized they think they are and how much control they have, and they always brag that we can handle this.
We can handle this.
But if they don't even want to talk about the malinvestment because of low interest rates and they caused the whole thing, they're not going to solve the problem.
It's the malinvestment, and it will have to be liquidated.
And that's what we're in the process of doing.
And they do it by debasing the currency.
The debt will be paid.
Everybody's going to get a check.
But prices are going to go up because the money is going to become less valuable.
And the thing that I fear the most is the anger that may develop or will develop, is developing between the classes in the United States because some people benefit a lot more than others.
Right now it's getting to the point where even people making $100,000, $200,000 aren't rolling into the dough because the cost of living, even for them, has gone up and there's a problem.
So this unwinding, there's no way to know when it'll quit or when they'll throw in the towel, but there's no way that they're going to have a soft landing and we're going to gradually have a little temporary inflation, let it go away, and we'll be back to normal.
It doesn't happen that way.
So the big thing is for people to know that this is a tough situation.
The best thing we can do right now, from our viewpoint, is trying to get people to understand the necessity of having some money.
Chris?
Very good, Dr. Paul.
I'm going to try to end on a positive note because these are scary things.
The bad guys, they tell us what they want to do to us, which you know, but you have to always know in the back of your mind that they cannot succeed and they really can't succeed.
They could do a lot of damage, but they can't get what they ultimately want.
And that's to control all of humanity, human beings.
You can't do that because human beings are not mechanical.
We don't run on zeros and ones.
And while you can program robots and algorithms, you cannot do that with human beings because we have a choice.
A robot will obey you.
Humans do not.
We choose every single second.
And a lot of the time, our choices are made emotionally, where you can't even explain the decisions in like a formula of zeros and ones.
So think about COVID, what we just went through.
Look at how many people did things simply because an authority said to do it.
And that was it.
And much of it wasn't even true.
But people did it anyway.
So it wasn't even logical what they were doing.
And many people did not, you know, because they could see that it wasn't true.
And there are some many people out there that they won't do anything that an authority says simply because they're an authority.
And that's the thing that we have.
We have that ability to choose.
We're not like robots that obey.
And these people that want to do all these things, social credit scores, they want to create like a population of robots that will obey.
But it's not going to happen.
And it gets even worse than that.
You know, there are people that will tell you that 2 plus 2 equals 5 simply because some other group, some people that they like and they associate with, say that 2 plus 2 is 5.
People Blame Authorities 00:04:05
And they could know it in their head, it's not.
But I'm going to say it anyway.
So you see how tricky humanity is?
We cannot be put into an algorithm or a formula or a model that everything is going to go, you know, when you see on TV this World Economic Forum, they speak as if what they want is inevitable.
It is far from inevitable.
But, you know, they have good PR, so that's why it works.
In any case, we have the freedom to choose, and we definitely advocate that on this show, and that is what is going to win in the end.
Excellent, Chris.
You know, I'm going to finish up by talking about who should be blamed and who can explain what's going on.
We'd like to think that we're leaning in this position of explaining what's happening rather than saying, well, they're at fault.
And that's sort of what Yellen was doing.
They find people to blame because they have to avoid any directing our considerations and blaming the Federal Reserve.
See, they don't want to touch that.
So they have to find different people.
Right now, it's the most common thing for Republicans to blame Biden.
And Biden has a responsibility for a lot of problems.
All the spending that he's done throughout his political career, all the regulations that he is stuck on, doing what he has done to oil to push those prices up.
But that kind of stuff is not the inflation.
The inflation is still deficits turned into money by monetizing that debt by the Federal Reserve.
You don't have an increase in the money slide without the Federal Reserve doing that.
And so there's a lot of blame to go along.
And there were two new ones here in the last couple of days that I thought was a little bit entertaining because one person said, well, it's credit cards.
Because people have credit cards, that's why the prices go up.
Well, that's a real stretch.
I mean, there's a lot of credit card out there because the government created the credit.
It passed it out, you know, in checks during COVID, that sort of thing.
So the other thing that came up, I think I saw it today or yesterday, is that, no, the inflation comes from labor shortages.
We're short labor.
There's a maldistribution of labor, which occurs when you take away the unit of account and you have to have corrections from financial bubbles and all this.
But just to say that it's a labor shortage, that's a symptom.
That's a cause of the Federal Reserve inflation.
But they say, well, nope, it's the labor shortages that are causing the prices to go up.
And I think that people have this easy explanation.
Republicans have it too, you know, just by saying Biden has that fault.
But the Democrats, they still think Trump is president, so they're blaming Trump.
Oh, it's all Trump's fault because of this.
But he contributed to it too.
So a lot of these things are contributing factors or the result of it.
You know, if there's a hurricane and a lot of damage done, prices are going to go up because that's how you find it, get people to come in and fix it.
But it didn't create inflation.
It didn't cause the increases in the prices locally, and that's good because more people will come in and help.
So this whole thing about that causes inflation.
So it's very important to distinguish the difference between the inflation of the money supply, the printing of money, versus the symptoms that are caused by doing that.
And right now, about 99% of what you hear on television and all the explanations of why we have inflation is misled because Janet Yellen didn't learn her lesson longer.
Inflation Misconceptions 00:00:10
She got confused and she said, I just got mixed up on this.
Anyway, I want to thank our viewers for tuning in today to the Liberty Report.
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