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Jan. 27, 2023 - Ron Paul Liberty Report
27:47
Why Does Our Government Lie About Inflation?

If government lies about Covid and the vaccines, lies about the reasons for wars and how the wars are going, do you think it tells the truth about inflation? If government almost completely ignores the Constitution (which is the 'Law of the Land' that they all swear to obey) are you surprised that your cost of living is skyrocketing way beyond what the government claims? You shouldn't be.

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Time Text
Why Governments Lie About Inflation 00:02:55
Hello, everybody, and thank you for tuning in to the Liberty Report.
Sorry for our little bit of technical problems, but we're back in business and ready to start our Friday show.
I want to start off with talking about inflation.
I've talked about inflation for a long time, and it influenced me a long time.
And a lot of people are talking about inflation.
But one of our things that we wanted to address today is the subject of why do governments lie about it?
And because the whole issue of fiat money is a big, rotten lie.
And I don't know how they get away with it, but they have for a long time because the Constitution was written to try to keep us away from making these stupid mistakes with inflation.
And yet they're there.
And I think it's crucial because it does involve about everything we do.
And it's not so simple to say, oh, the Democrats do it.
The Republicans do it.
And the Federal Reserve, they don't even talk about the Federal Reserve.
Spending does it, yes, indirectly does.
So there's a lot of things about it.
But right now, the government does, and they once again are at it and are in motion of just changing the statistics.
Like, oh, you all have inflation.
CPI is going up.
Oh, wow, that's bad.
No, they just changed the rules.
They lied to us.
And the markets have to accept it because the markets are saying, well, even if it's true or not true, it doesn't matter.
How's it going to be reacting?
How will the markets react to it?
So, you know, the other day I was looking through some records.
I came across a speech that I gave in 2006 on this subject.
And it was the end of dollar hegemony.
When is it going to end as a world reserve currency?
And that is a big if because nobody knows exactly.
But my argument back then was it will happen.
Central banks end, and we were on the road to that.
Didn't say what date, but I said one thing that would happen when you know it's coming near an end.
That is when the Saudis refuse to take dollars for their oil.
That'll be a sign that something's up, that we can't have a dollar backed by the world currency backed by dollars.
And right now we have an article out today on Zero Edge.
It says, a dollar collapse is now in motion.
Saudi Arabia signals the end of the petro status.
And that's what they're saying is they're getting tired of the dollar.
The dollar's losing value and they've put up with it.
So it sounds like we're getting awfully close.
There's going to be more havoc in the markets.
Why Dollars Are Losing Value 00:15:45
Gold and silver have been used for a long time as a protection against the destruction of the value of dollars.
That is nothing new.
It's just that the politicians Generally, they do some of the same things over and over again.
They lie to the people and they go to fiat and they print money.
Now, for that reason, it makes it more difficult to invest.
And in the early 70s, when it was quite, I became quite aware of the fact of that fact that the dollar would divorce itself from gold.
And in 1971, they did that.
But it's also the reason why I have a partnership with Birch Gold, because they deal with helping people to invest in gold to have protection against what we know is coming, but we don't know when it's going to come because the history is very, very clear that gold and silver has protected people from the debasement of currencies.
And that's why I do work with Birch Gold.
And you can get some free information from Birch.
If you look at the numbers on the bottom of the screen, if you look at the text number, it says text Ron, 989898.
That's text Ron, 989898.
They'll send you some free material to try to introduce or catch you up to date and get more information on gold.
And there's no cost for that.
But I think it's very important that we do what we can to straighten it out because I think we live in an age where governments are lying through their teeth.
You know, probably governments always lie.
But, you know, it's epidemic now when you, when you look at how many lies were we told during the COVID crisis, how many lies do we have have we been told throughout the century for getting us into unnecessary wars?
So the government lies.
You say, well, it's always the Democrats lie.
No, maybe both of them lie.
Maybe the Democrats are worse than the Republicans.
I don't know if I'd argue about that, but there's too much lying going on.
But the system itself is a big lie.
The paper money is a lie because they claim that we know how to manage it, but they never blame the Fed.
They have to blame something else.
Theoretically, the government is or the Federal Reserve is supposed to protect the purchasing power of the dollar and protect employment.
Well, generally, it doesn't work very well.
And so they have to find scapegoats and they have to blame somebody.
They have to tell a lot of lies and they limp along, but the economy comes more fractured.
And eventually everybody catches on and then they reject it.
And that's why I talk about the hegemony, that the hegemony of the dollar will end.
And quite frankly, there's a lot of arguing, arguments now put out there and saying it's coming, it's coming, coming.
And I agree, it's coming.
But I don't know tomorrow, next week, or what, because there are too many subjective reasons why these, there's a final collapse of the currency.
But I have no doubts that will happen.
And yes, you say, well, you just think of all that savings I did over these last 30, 40 years.
You didn't need it.
There was never a total collapse.
Well, there has been a total collapse.
The dollar has lost 98% of its value from the 1920s.
Gold used to be $20 an ounce.
Now it's almost $2,000 an ounce.
So, yes, it might not be the final collapse, but this is the reason that we offer this invitation to you.
If you want to get a little more information, you can take a look at that.
Text Ron Paul, 98988.
Chris, tell us a little bit about the CPI.
Sometimes they fudge in that.
I think they're going to do it again, but they've done it all along the way.
That's right, Dr. Paul.
We're not big fans of the CPI.
It really doesn't tell us very valuable information because prices don't change the same for everything at the same time.
Prices are the purpose of them is to tell us the relative scarcity of goods versus money.
So, if something is very high priced, it is scarce versus something that is low, like 20 cents, if you could buy a million of them.
So, you know, prices are supposed to tell us a very valuable information, but they have to be true.
Unfortunately, because of the Fed and because of government policies, you know, they prices are distorted.
They tell us they give an appearance of being true and it's not.
So, when they say seven, eight percent, you know, first off, you can't aggregate everything.
Uh, I, there are so many products that I buy at the store that's 50, sometimes 100% they're up.
And, you know, they can they can maneuver the CPI of what's in it, how they calculate it, uh, how they want.
And they've done it, they've changed it.
Uh, and you know, there's no reason to believe that we should believe the government when they tell us stuff.
I mean, look what they do with COVID, what they do with wars, the Twitter files.
They, you know, they could ignore what they want to ignore and tell us what they want to tell us.
And they also have an incentive to have a lower CPI or tell us that there is because there are some of their quote-unquote benefits that they pay out are tied to the CPI.
So, if it goes up, they got to pay more benefits out.
So, and they want to get elected.
There's a whole bunch of reasons why they wanted to, they'll say it's lower than it actually is.
But in the end, the government has no business in this.
Their purpose is to protect our liberty, not to be messing around with prices and the economy.
Very good.
You know, and you touched on it, Chris, but I think it's very important is the lies are told for a specific purpose.
And it's usually political, you know, getting the edge up, blame the other side, Republicans versus Democrats.
Oh, it's the Democrats.
They spent too much money on this, but the Republicans might be spending too much money on managing their empire around the world.
But they don't want to talk about that.
The other thing is, is both sides, though, demand secrecy.
They don't want auditing of the Fed to find out what happens because it would reveal too much.
So the real cause of our problems, the destruction of the dollar, comes from the Fed.
You say, yeah, but it was created by Congress.
Yes, it was for a purpose, but they hide the Fed.
They don't say, boy, we got to rein in the Fed.
They're printing too much money.
It's losing its value.
That's why prices go up.
They don't do that.
Usually they keep it out of the argument, but it's a very bipartisan activity.
And so bipartisanship gives no automatic cure to some of the diseases.
The bipartisanship and fibbing and lying, especially when it comes to overseas activity, banking activity, the political things, the fighting of wars, there's hardly much resistance to building weapons that we don't need or getting involved in wars that we shouldn't be involved in.
So the other thing that we have to remember, the purpose of the Fed, if you have a desire of the Fed, really is to prop up the stock market.
That's the immediate thing.
And that's why when things are crashing, they have to do something or say something to show that they're busy and taking care of it.
And they, you know, in 1987, when there was a crash, they established a commission.
It was, it was the nickname became the plunge protection team.
It's authority for them to interfere to stop the plunge in prices.
Well, why not?
That's what we have to do.
Why not prevent the artificial prices where you create these bubbles?
That's where the real problem is.
And they also have a fallacy in dealing with the Fed and the inflation is they say that, oh, we printed too much money.
And that worked for a while.
We had a good time.
And interest rates were too low.
We had to get them up.
And now that they're up, what we have to do is the economy is doing too much because prices are rising.
And that's a sign of a lot of activity, which is not necessarily so.
And so they have a choice.
Well, there's two ways of lowering the inflation rate.
First, crash the economy, put it into recession, which I think we're in.
We're in a recession.
And some people and some companies are forced to lower their prices.
But they argue that that's what you have to do wholesale.
Everybody has to have be in a recession.
And out of desperation, they have to lower prices and that will restore order, which is a bunch of nonsense.
Of course, what they should have never done was stimulate and create the bubble in the first place.
But there's another way that prices will come down.
And it has over the tradition.
The greater the amount of economic freedom we've had, especially at the end of the 18th, 19th century, there was tremendous economic growth.
And guess what?
Prices went down.
Oh, there was a recession.
No, it was the benefits of productivity.
And it was actually very beneficial.
So people had more purchasing power.
And exactly the opposite is happening now.
People have less purchasing power, but they have to say, oh, don't sweat it.
It's not going up.
It got better last couple of months.
Oh, it's getting better.
It's getting better.
We're only stealing 4% a month instead of 6% a month.
And neither one can be believed because if you talk to the people who do the shopping, I think if they want real information, they should look at their wallet at the end of the month because they have to find out how much is left of my income.
And they'll find out that their purchasing power goes down.
That's what's really, really important.
But this whole charade is built to be able to get stuff on either that the liberals want and the progressives want or the Republicans want or the military wants and they get away with it and until they can't get away with it.
And we've entered a period where they're not getting away with it.
$31, close to $32 trillion worth of debt and it's piling up when interest rates go up.
The interest rates to the government go up and it's sort of going up exponentially because they have to, when they renew debt, when government renews the debt, they have to do it at the new interest rate.
So the interest rates cost are uncontrollable.
And it's sort of the opposite of the benefit of compound interest when you're a saver.
It's unbelievable how compound interest is when you're a saver.
But this is the opposite.
We're compounding the payment to the government.
And then they say, well, the other goal that they have is to get rid of real debt.
They are trying to get rid of real debt because they want people to pay off what they owe, especially the government, with money that's worth a lot less.
So if you have 50% inflation, you give them a dollar, you're only giving them 50% of the purchasing power.
So it's something that is so disruptive.
The one result is an exaggeration and a continuation of what's going on already, and that is maldistribution of wealth.
And we know that's happening.
The rich get richer and the correction will do the same thing until who knows what will happen.
The whole thing will cave in.
Chris.
Very good.
And you make some great points about purchasing power.
And, you know, the point behind that is we need more goods, more services, not more money.
Goods and services are wealth.
You know, money, you could look how the Fed creates trillions.
They're not creating wealth, you know, they're just debasing the money.
You know, but when you have sound money, money increases in purchasing power when goods and services increase, when we have better technologies, you know, you're more productive.
And, you know, we have no reference of that in our lives because over the last hundred years, since the Fed's been around, we are used to our money constantly decreasing in value.
What you buy today will be more expensive tomorrow.
You know, but our ancestors lived differently.
Their money gained in purchasing power back when, as imperfect as it was because the government controlled it, when there was a gold standard, you know, money increased in, you know, you could buy more with the same amount of money as time went on.
And the reason, you know, that was because at least gold was there to keep the politicians honest.
And gold is very hard, very expensive, very capital-intensive to produce.
Anyone that has watched the show Gold Rush on Discovery, which I love, you can see how hard it is to get gold out of the ground.
And, you know, the government doesn't want to mess with that.
How much easier it is to just create electronic digits, you know, and then they'll send $100 billion to Ukraine.
And they don't care what we think.
They'll just do it because there is no backing to the money.
And, you know, because of that, we have the government that we have, and it's as ugly as it gets until we make big changes.
You know, one of the arguments going on now is a political argument between Republicans and Democrats.
And whoever's in power gets the criticism.
So they levy the criticism by saying, oh, yes, the Republicans want to default.
They're not going to pay their bills.
And yet, the default goes on because it's done differently.
When you get to a situation like this, and you can't work your way out of it, and you don't have any desire to work your way out of it, then there is a default.
But an old-fashioned default is you've an individual defaults, they've spent beyond their means.
The bank called in their loans.
They don't have it.
They have to do something.
They either have to declare bankruptcy or they have to get another job or do whatever.
But that is what they missed the payments.
Now, the government is not going to do that.
And the government is not going to say, oh, yeah, we owe money on Social Security and these checks, and we're not going to pay to Boeing and all these companies that are doing our bidding.
Excuse me.
That is not going to happen.
They default by printing more money that's worth less.
And it is a default.
Purchasing power goes down.
And that's why it's wicked.
It's cheating.
It's a thing that it should be charged like counterfeiters is charged.
It's an evil thing that they do and it becomes establishment, but you can't break it up because then you'd have to say the Fed has to quit printing money and the Congress has to quit spending money.
Because if the Fed couldn't print the money, the Congress wouldn't have any money to spend.
They're totally dependent on it.
The founders understood this little message clearly.
They said, don't do it.
Don't do it.
And they said, only gold and silver can be used as legal tender.
Constitutional Spending Crisis 00:06:57
There's no central bank.
But you know, what they failed to do was pass a bill and put it in the Constitution that Jefferson wanted.
And that is, you can't have deficit financing.
You can't build up debt and owe money.
But no, we owe money.
It's endless.
And on the short run, there's a lot of benefit.
If individuals can borrow a million dollars a month and the bank doesn't care for a year or two, eventually you default.
And that's what happens.
And governments, especially if you have the reserve currency of the world and you have a lot of wealth to begin with, you have a lot of gold to begin with.
You have a lot of military protection.
It could go on for a long time.
But eventually the default becomes noticeable.
And then there's a rush away from the fiat currency.
And that's exactly what is going on right now.
And this is the reason, though, when we get to that, things will be much worse.
And that is why we work so hard to try to get information, help people get protected from this.
But to me, the ultimate protection, I at the beginning thought, well, you have to protect against the devaluation of the dollar.
And I do my best.
A lot of people do their best for that.
But ultimately, the protection doesn't come from our military.
Our military is a detriment.
What is all this money and troops and weapons all around the world aggravating Russia and China trying to get them to start a fight with us?
I mean, it makes no sense whatsoever.
So it's a situation that people have to realize that it could get worse, but the problems are not that difficult.
We have to quit the spending and that hurts.
So the spending will quit.
Unfortunately, I think we're going to have a very, very serious crash that people then will still have a choice.
Right now, the people in the driver's seats, unfortunately, are the people who run the deep state and the people who ran the COVID epidemic and the ones the military industrial complex and the pharmaceuticals.
They're in charge, but they have to be removed from being in charge from this because they're not complaining about what's going on.
Do you think Pfizer is complaining now with all the planning they have to create viruses that they can treat?
You know, no, the viruses are coming.
So they'll have the have the vaccine ready.
And does anybody think they can get away with saying, let's quit building weapons?
Weapons, we're building World War II weapons, World War I weapons, tanks, and in the electronic age of great developments.
And we keep spending the money and that is not our solution.
That is our default.
That is what's going to bring us down.
That's right, Dr. Paul.
Excellent.
I will finish up.
If we want constitutional government, and I know that there are a ton of people out there because when we put those clips onto social media of Dr. Paul talking about constitutional government, you know, they get so many views.
So people are hungry for it.
They just don't know how to get there.
But in order to get there, one of the critical things is we must have sound money.
Without sound money, there is no way we're getting limited government at any time because they can just print money to expand themselves and their power.
When you have sound money, they must tax you.
If they want to send $100 billion to Ukraine, they have to tax you.
You have to agree to it and cough up the money to them.
Right now, they don't ask us.
They don't care.
As long as they can get away with it, they'll send $100 billion, $200 billion, whatever they want, because they just print the money.
They don't have to come to us for our opinions or our money.
We're just going to go to a supermarket and pay three times the price for everything.
Because they know that people would object.
That's another reason they don't want sound money.
They know we would never go for sending $100 billion if we had to physically take it out of our pockets and cough it up to the government.
So, if we want constitutional government, if we want to get rid of this nonsense, which so many people do, we need sound money.
And the best way to get there is to audit and end the Fed.
Very good.
You know, the one issue that comes up in every election, individual elections, presidential elections, congressional races, and that has to do with Social Security.
The routine is that the Democrats take the position that Republicans are going to do away with Social Security.
It's a terrible thing to have to defend against because if you say, yes, we're going to cut Social Security by 10% next year, which if you were going to have a real reform, you'd cut everything 10%.
But if you say that about Social Security, everybody assumes they would absolutely lose their election.
Probably so, because people are so dependent on that.
But that will continue.
But what has to be observed is the Social Security system is a Ponzi scam.
So it's an immoral promise that the new people coming in are going to pay for the people who are retiring.
But right now, the number of people working, you know, what if the recession gets really into a deep depression and there's less people working?
There's no way this can be funded because we're at that point now where there won't be money in the bank.
And that's all fake money anyway.
We put the money in, oh, it's in a social security trust fund.
Well, who borrowed it?
Oh, the government did.
They're building airplanes.
Boeing loves it.
It's the social security money that it is.
So it's a Ponzi scheme that goes on that will end.
And it's going to be very difficult.
That's why I believe that we will have a tough time and everything will have to go because the markets are very powerful.
The market really, or the special winters really wanted to keep the dollar scheme, the dollar at $35 an hour going forever.
And they had it going for too long.
But the market finally said, too many dollars.
We're not going to put up with this.
So then there is a crash.
So it does end, and the market forces are very, very powerful.
And then the whole issue will be trusting government, which is going downhill.
That's really in a recession.
And it's only held together with a multitude of lies and people who are still believing it, but less and less are believing the lies that were told to go along with all this activity.
Elections Cannot Last Forever 00:02:01
But I'm still optimistic on the long run because I think there's a lot of people are realizing the problem.
They're looking into it.
They're trying to protect themselves.
But liberty has to be the top of the list because if everything gets wiped clean and all the assets were wiped clean, but if you were given back liberty, where you could own your property, have a job and work, deal with money that you don't have to pay income tax on, I think we would be back on our feet in a real short time.
So if you have one thing that we should have to protect ourselves against this monstrosity, as well as get us out of it, once the bad times start, and that is the idea of letting people have their freedom back again.
The founders understood that.
They got us started in the right direction.
But there was a qualification they made.
Several of the founders mentioned, well, you know, it's a good constitution.
We did our very best, but it's not going to be worth much if the people approach this in an immoral fashion.
And I'm afraid we're at that point where we're seeing that morality is not part of the equation.
And all you have to do is look at the TV.
All you have to do is look at our elections.
Democracy will solve our all problems.
But look, look, the FBI is involved in messing up our elections.
So that can't last.
That has to end.
That's why liberty is the answer.
That's why I'll continue in there and continue to say that if we all participate in that and know what to do, in the meantime, we do our best to have our land and take care of ourselves and maybe have gold and silver coins and whatever, which is very important.
But ultimately, it's education.
And that's why we promote that strongly here.
And one of the reasons why I put a lot of time in that effort as well.
Want to thank everybody for tuning in today to the Liberty Report.
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