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Dec. 9, 2022 - Ron Paul Liberty Report
22:35
Central Banks Know The Game: They're Buying Gold

The fiat monetary system is built on trust in counterfeiting central banks. One should never trust a counterfeiter, so naturally, governments and central banks don't trust each other. They buy gold while claiming that gold is no longer money. They know that if the counterfeiting goes to extremes, gold will re-enter the monetary system. When the choice is between depreciating paper or gold, people ultimately reach for the gold.

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Trillions and Troubled Markets 00:15:10
Hello everybody and thank you for tuning in to the Liberty Report.
With us today is Chris Rossini, our co-host.
Chris, good to see you today.
Good to see you, Dr. Paul.
Good.
We're going to talk about something we've talked about before, but I believe our viewers are still interested in it because I got interested in this subject a long time ago, and I'm still interested more so than ever.
And I started watching this little item called gold way back in the 60s because I started reading about Henry Hazlitt saying, well, you know, this monetary system, the Bretton Woods system can't work, can't work.
So in the 60s, there was a lot of talk about that.
So that sort of fascinated me with that.
But this has been going on a long time, and lo and behold, the confirmation came in 1971 that we couldn't maintain that fake gold standard, but it was some type of relationship to gold, but it was a pseudo-gold standard.
And that's why Henry Hazlitt believed it would not work, and it didn't work.
And so we're still talking about it, and now we're seeing the end to the substitute of the Bretton Woods Agreement.
After all these years, I'm amazed that the substitute has worked so long.
But right now, I think we're seeing a lot of handwriting on the walls about what is coming.
The news is filled with it.
The markets are active, and the people are squirming around.
What do we do with our investments?
What's it going to do to the stock market?
Whatever.
Now, this is one of the reasons I work in partnership with Birch Gold Group, because they deal in this.
And matter of fact, they offer a package of information, which is free.
And you can text the number on the screen, 98-9898, and they'll send it to you.
They're not going to charge you for that, but it might give you an introduction to give you some ideas if you're still thinking about it.
And I know you must if you're interested in gold, because I thought about it in the 60s.
I wasn't even allowed to own gold.
It was illegal.
But there was a lot of activity.
Stock, you know, the gold stocks were involved, and there were a lot of things, and finally gold got legalized.
So a lot has happened to this, but it's changing.
And even today it's changing because it's in the news.
And one of the reasons we wanted to concentrate today on gold is what has been in the news this past week.
And all of a sudden, you know, something we've talked about a lot is the effort and desire of people who don't like us and are our competitors.
And we punish them with sanctions and war and all these things.
And they'd like to do us harm.
And that is a group that says, you know, we're sick and tired of being pushed around with the almighty dollar.
And they've talked about it for years.
The BRIC group of countries have talked about it.
And history indicates that the dollar is destined to be exchanged for another reserve currency.
And what we're witnessing now is the fishing around for what.
And of course, we're interested in people using gold.
We'd like to see it be used in a voluntary manner because that's how it got started.
You know, 6,000 years ago, they used gold.
But anyway, there's talk about that because there's a lot of resentment against the United States and our currency.
So once again, if you're interested in following up with Birch Gold, go to 98-9898.
You can text that number in.
But today we're going to talk a little bit about what we've seen in the news.
I'm going to start off with just at least one headline, even though you can find a lot.
And that is how much, who's doing this?
And the big news this week has been China.
that they don't report much.
And I think the last time they actually told people what they were doing was three years ago.
And this time, they picked up like 300 million ounces of gold.
So that's a bit.
So they're doing it more.
So are the other countries.
We're going to talk a little bit about that.
But basically, I want to address the subject.
Why, why, why do countries do this and why do they destroy it?
Sometimes gold standards last a long time.
The Byzantine Empire lasted a thousand years.
And the Byzantine, the gold coin, lasted a thousand years.
So it's pretty stable money in the long term.
But eventually, there's abuse.
Our dollar is not going to last a thousand years because I think there are signs that things are cracking.
People are tired of it.
And to summarize why I feel this way is we cannot sustain the debt.
We borrowed all this money to spend it, ran up the debt, and now the only way we can keep going is borrow more money to pay the interest on the debt.
That can't last.
So this is the reason I think this week, Chris, and I know you recognize this, that more and more people are starting to say, hey, maybe we ought to buy gold, and that's exactly what China's doing at this time.
Yeah, well, they all know how the game works, because they're counterfeiters too, let's be honest.
And counterfeiters don't trust each other because you should never trust the counterfeiter.
And that's why these countries, when it's an opportune time, they will buy, pile up, and hold gold, all the while telling the public that gold is not money.
It's an ancient thing that you never have to worry about because they want people to use their counterfeit legal tender.
But they know that once the musical chairs game stops, those who have the gold will make the rules.
They'll be in much better shape than those who don't.
You can think of after World War II, the United States had all the, or most of the gold.
They had all the manufacturing.
The economy was intact.
It wasn't war-torn.
So look at how the U.S. made the rules post-World War II.
So governments have gold.
They will keep buying gold because they know eventually the day will come where it's going to come in handy.
Very good.
You know, I have one headline here because people postulate what if, what if.
And this what if title is what if Russia accepts gold for oil and demands gold for oil.
Gold prices, this author says it double, it will double to $3,600.
And this is Pozaro, and he says Credit Suisse.
He works for them.
And they're credible people and they're an establishment.
And you say, oh, hey, it could double to $3,600.
But all you have to do is look back at history from the time the Fed was created and they were going to stabilize and protect our currency.
It was $20 an ounce.
And that worked for a long time.
It even survived the Civil War.
So that has happened.
But how many times has the gold price in dollars doubled, tripled, quadrupled, going from $20 to $3,500 and all the way up?
It's been as high as peaked out here a couple years ago at $1,800.
That's back where we are now.
I think it's a critical spot.
Evidently, the signs are that a lot of people are concerned.
They are buying gold, and the officials, like Chris points out, that they know what's going on, and they might be able to fool the people for a long time.
But eventually, they have to join in.
But if somebody asks me, Ron, is that what means what you're saying?
Is Russia ready to accept gold for oil?
And this is a time we can, you know, anticipate the gold price will double soon.
Now, who knows when it'll double?
But I know it's going to double because I know what's going to happen to the dollar.
So it's real hard predicting short runs because you have the variables in any market, but you also have the variables of our central bank and the dollars and the deficits and perceptions.
So it's real hard to do that.
So I've never enjoyed either telling people, oh, yeah, speculate you're going to become a billionaire.
And I didn't like the anxiety, but I still like the security of thinking about money as being sound.
And then the more I studied and understood the insecurity we all feel with our government.
And just think now, the insecurity in our country.
And I think the basic problem we're facing today is nobody believes the government.
And they deserve that distrust because they have not been honest with the people.
And there's a dishonest system.
The voting system is questioned.
And all these wars are questions.
And the special interests are questioned.
So, Chris, I think that people are waking up, and that's why you're seeing gold move.
And even today, there was one announcement because they've been buying the last week or two, six months, it's done pretty well.
But this morning there was a headline: central banks start 04, quarter four, fourth quarter, buying more gold.
So it hasn't stopped, but predicting the short runs is a bit difficult.
But I still feel more comfortable talking about fundamentals, but I'm also entertained by the technicians, you know, technical arguments for it.
And when they're right, they get real excited.
But I just personally have this feeling that, you know, the use of gold the way it started still is a pretty sound way of doing it.
And that is that gold is an asset and it can be used and the banks can't debase it.
Right.
Dr. Paul.
And Russia and China, we know from the headlines that they've been for a while now de-dollarizing.
They're trying to get rid of having to rely on the dollar.
And they're also the two countries that are accumulating a lot of gold, maybe perhaps the most gold.
Let's say that there's a financial crisis.
Let's just speculate that the Fed printing trillions and trillions and wars and welfares.
And let's say it's a bad idea and a crisis comes with the dollar.
Well, what happens if Russia or China or both take advantage of it and say, you know what, we have currencies and we're going to back it with gold?
I mean, obviously that would restore confidence into the market.
And, you know, eventually the United States would probably have to cave something that they do not want to do because their empire relies on printing money.
But, you know, the time may come where Russia and China say, hey, we have gold-backed currencies.
Let's do business.
And that's going to put the United States in a very big pickle.
You know, more recently, what's been happening with our finances in this country explains a lot of what's happening.
And recent for me is 2008 with the crash in 2008 and the bubble bursting.
And at that time, the debt was $10 trillion.
Oh, how can we live with $10 trillion?
Well, right now it's $31 trillion.
And interestingly enough, if you look at another number at the same time, the money supply back in 2008 was $7.5 trillion.
Guess what M2 now is today?
It's $21.8 trillion.
So the debt goes up, the printing goes up, the money supply goes up.
And guess what?
Prices go up.
And then what do they do?
They come up with a thousand different reasons why inflation, and they carelessly use that term, anytime somebody's price goes up, oh, that's inflation.
That's price inflation, but that's not the problem.
The problem is the devaluation of the currency.
And that is what will reflect in all the prices.
And people have to start thinking and understanding that that is a tax.
And the tragedy here is that the tax is placed on the middle class and they suffer so much more.
These central bankers and others are going to be pretty well protected.
The trillionaires probably have a little bit of gold stashed away already.
So that's the big problem is how is it going to hurt the middle class?
And right now they're hurting.
But people aren't talked about too much because they've been so mistreated by the system and misled and they had a trust in the government that now they're living in the tents without bathrooms in our big cities.
So it is a real tragedy that is going on.
So we have to decide, you know, how we're going to handle this.
You know, I mentioned the debt.
The debt was 10 in the 808.
Now it's $31 trillion.
But what if you count all our obligations, you know, unfunded obligations, which is probably the real debt.
All the promises we've made, because people that are on Social Security, they're not worried about where it is, just or, you know, am I going to get it?
And, well, when they want to get it, the government has to come up with it.
So right now, they don't have it in a savings account backed by gold.
They have it just on a piece of paper and the money has been spent.
So if you add up unfunded, the astronomical number is $130 trillion.
That's why I think that when this hits, it's really going to be a big deal.
And when you think $20 to $35 and $35 up to $1,800 is a big deal, the real fear that we should have is the total disintegration of it.
And some people say, yeah, that'll vindicate us.
We've been saying this all along.
But believe me, when it comes, even the people who predicted it probably aren't going to be overly happy because there's going to be a lot of other problems.
And then, of course, the government becomes more authoritarian as well.
Just like when they want to become doctors and tell people what to do with the flu, they all of a sudden find that authoritarianism is my real goal in life and they resort to it.
So when there's financial crises, there's more wars being fought.
And, you know, with all these things, and people in these other countries resent what we do.
And even today, it was announced that we're putting more sanctions on China and Russia.
And then we wonder why they are unhappy with us and want to destroy the dollar.
The Beginning Century Downturn 00:04:47
But it is real, but it also creates some big problems for us.
And I think every day more and more Americans are waking up to it.
Let's hope so, Dr. Paul.
I'll finish up.
Economic law is a truth.
These things are fixed.
We can discover them.
We could discover laws of the truth that we did not know before, but we can't create it.
You can't make fiction true, and unfortunately, our culture is rooted in that.
Everything is upside down.
But the bankers have our culture beat.
They've been at this for a much longer time.
They know that gold is money, but you can't counterfeit gold.
And the government doesn't like that either.
Government likes when, hey, we want to do this, print up trillions of dollars.
You can't say print up trillions of ounces.
Can't do it.
So, and this can go for a while, obviously.
We're about 100, a little over 100 years in, but it can't go on forever.
And they know that, and that's why they're buying gold, and that's why we talk about it, that they're buying gold.
Because they understand.
Now, unfortunately, the average person does not and does not buy gold.
And a lot of times you can't.
It's too expensive.
But the average person used to understand this.
And that's why you see movies of bank runs.
You know, if a banker got cute and started counterfeiting money, you'd go to the bank and say, give me the gold.
I don't trust you anymore.
You know, our population today does not have that reference.
We've never done that.
So, you know, but hopefully, you know, it's going to surprise a lot of people when there's a financial reset.
But hopefully no one watching this show will be surprised.
Very good, Chris.
You know, I mentioned a little bit about fundamentals versus the technical factors.
I'm fascinated with technical.
I think that people, if they live and die those things, that they can't be perfect because that all comes from human action, which can be varied.
But it also does, on the long run, shows what the fundamentals are all about.
And I think about the several times in my lifetime on some of the big moves in gold.
So 1971 was one of them.
Gold was $35 an ounce.
By the end of that decade, it was over $800.
That's a pretty good bump.
But then gold went into a slump for 20 years.
It had been up to $800.
And most people don't really remember this, probably don't care right now.
But it shows you how difficult it is to predict these things.
So at the beginning of the century, gold went up to $1,800.
And guess what?
No, it was at $800.
What happened was the gold crashed.
It went down to $270 at the beginning of this century.
And I think that was the beginning, technically, of a bull market at the beginning of the century.
And after 10 years, it was a bull, strong bull market in gold.
And the markets iron out the ups and downs.
You'd say, well, why doesn't it just go up as you look at the money supply?
No, there's a psychological human action effects that make it goes up and maybe down.
But it all comes out in the end about the same.
So by 2011, after it haven't been at 270 at the beginning of the century, it was up to 1,800.
And that's been historic in a sense.
That has been high.
And then it went into a downturn.
It went from $1,800 down to $1,000 by 2016.
So 10 years it was up, five years it was down, $1,800 down to $1,000.
I believe that the current events right now are one of these technical bull runs on gold, the adjustment period of the ups and downs.
So in 2016, it was $1,000.
Today it's back up to where the peak was in 2011, and that was $1,800.
It's around $1,800 right now.
So It's something that if you compare it to the others, I think the debt and spending and the conditions are much worse.
So you say, oh, no, you're trying to justify that gold could double in price.
No, I'm trying to wake people up and say it could be much worse.
It would be a sign of chaos.
And it will also be a sign that the government comes and cracks down on it when they didn't know what they were doing and wanted to crack down.
In the 1930s, the first thing they did was steal the gold from the people.
And of course, then they revalued.
They took gold at 20 and made it 35.
So that's the real fear.
Why We Should Follow Our Constitution 00:02:16
And it's not much fun being right if that's the case, but it's also very important for people to know about it and prepare it.
And as much as I think about investments and finances and all, I think really the most important investment for any of us is to invest in the cause of liberty.
Because what we're facing today and all this nonsense, it's dishonesty.
Chris used the word counterfeiting.
We've allowed our governments to counterfeit, be dishonest.
How can you trust the people in government that runs our government?
A lot of people don't even trust our elections anymore.
So it's the loss of trust in the political system.
So that's why we should spend as much time and energy in promoting that out of our own self-best interest.
Because that's what we want.
We want for our children.
But if you concentrate on, oh, I know gold's going to double in two weeks, Ron Paul said so.
Now, that's not the way to do it.
But to say, I'm going to contribute and pay attention to what a free society is all about, because that's where you can find some very positive things.
Quietly organizing around the world, in the United States, there are various groups and people waking up.
Just thinking, I like to use the analogy of people waking up on all the horrors of lockdown with COVID.
And all of a sudden, the parents, the mothers decided this is not good for our kids.
They became smarter than the government, smarter than the doctors who sold out to the government, and they finally stood their ground, and they're doing a much better job.
And even this last election improved things with people who want to try to straighten that out.
So there's a lot of work to do, and there's a lot of things that can be done, and it will not be smooth.
But people have to understand how it happens.
Why do they spend the money?
Why do they want to run up these debts?
Why are we involved in these wars?
It makes no sense.
If you're interested in peace and prosperity, I don't think there's any other way to go but to follow our instincts and follow our Constitution, because even with the imperfection, it's a far cry for what we're facing today.
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