Nations Ditch Dollars --- That's The Real "Debt Ceiling"
Just because the U.S. government has made a mockery of the term "debt ceiling" by raising it 90+ times, doesn't mean that a debt ceiling doesn't exist. A limit to debt certainly exists and judging by its actions, the government is determined to finally reach it. In practice, it's not the U.S. government that will ultimately determine what the debt limit will be.
The market is always more powerful than the state, and nations across the world are divesting themselves of dollars and using other currencies at an increasing pace. The U.S. government must halt its reckless spending. The consequences of continuing down it's current path must lead to a very severe economic crisis.
Just because the U.S. government has made a mockery of the term "debt ceiling" by raising it 90+ times, doesn't mean that a debt ceiling doesn't exist. A limit to debt certainly exists and judging by its actions, the government is determined to finally reach it. In practice, it's not the U.S. government that will ultimately determine what the debt limit will be.
The market is always more powerful than the state, and nations across the world are divesting themselves of dollars and using other currencies at an increasing pace. The U.S. government must halt its reckless spending. The consequences of continuing down it's current path must lead to a very severe economic crisis.
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.
It's great to be with you, Dr. Paul.
Very good.
You know, we deal in economic policies generally on Friday, and there's a little information we have this past week.
The Republicans passed a bill, the solution to the problem.
We have a spending problem and we have a deficit problem.
And they came up and they passed the bill, which is pretty amazing in this day and age with all the fighting going on.
About four Republicans resisted it.
But it simply says that we're going to get control of things by limiting the debt increase by $1.5 trillion in the next year.
So this is hardly the solution.
Chris and I will be talking about that.
But the times that I've sat through these debates and tried to get information in there about the philosophy of government that really counts and not tinkering with the deficit.
But when I looked at this, Chris, I got to thinking, all the points in here gives everybody a chance to pontificate.
I voted for this, I voted against that.
And I don't believe too many people believe it makes a difference.
I see this as not changing things like monetary policy or foreign policy, but it's a matter of, oh, if we could just get control of waste, abuse, and fraud, you know, this would solve the problem.
And that's tinkering.
And I think that we're getting more of that.
So that means I believe, and I think Chris probably agrees, that the spending will continue.
It'll continue to increase, and the money printing is going to continue all along.
So it is for this reason that I partners with Birch Gold because we're talking about at least trying to protect our wealth because it's getting more difficult than ever.
And if we try to simplify this whole thing about why are people so upset about inflation, which they should be, what's the problem?
Well, they don't really define it because they just say it's rising prices, rising prices, all kinds of reasons for rising prices, but they hardly ever talk about the Fed.
And all this money spending and talking, they essentially never talked about the Fed.
But just think about bailing out the bank.
There's a recent bank failure.
They're talking about they might need $100 billion and it doesn't even need appropriation.
That's where the problems are.
It's that reason that I try to help people look at the problems and what's happening.
I'm not an investment advisor, but I recite history and why I got into politics and had to do with inflation back in the 70s and the lack of the gold standard and all these things.
And right now there's a rising interest around the country and around the world.
Central banks are even reserving to buying more gold.
So if you want some more information on that, if you text Ron at 98-9898, that will take you to Birch and they will send you some free information in an effort to try to explain more and understanding how investments may be changed to make at least a sincere effort.
Debt Ceiling Debate00:11:39
Of course, my belief is unless we get hold of the government and have the government reduced, you know, by a tremendous percentage, it's going to be difficult.
But in the meantime, over the 30 or 40 years that I've been interested in that, I've done my best to try to protect the interests of my family and our fund money and this sort of thing and talk about sound economic policy.
But if you would like to get a little information, it doesn't cost anything, text Ron at 98989A and they will send you some material.
And Chris, I wanted to go ahead and talk a little bit about this budget, you know, going on.
There were four Republicans, you know, that voted against it.
And I always like to look at that.
And I would say that I would, if I had been there, I would have been the fifth one probably, even though the arguments are made by some of the conservatives who generally would have voted against this, said this one is a little bit better.
It's actually changing things and changing the philosophy.
And I understand their arguments, but I also understand the dreams of the political promises and hope that it will work.
But Matt Goetz, Ken Buck, Andy Biggs, Tim Buchet, Bucha, and they all voted against it.
And that always takes something because they only passed this bill by a couple votes.
And they were not the most welcome people in the Republican Party.
But anyway, the bill passed.
And under the circumstances, I would say, you know, from their viewpoint and from the public perception, it's a type of a success that it was passed.
But it doesn't mean a whole lot.
The debate was okay.
They talked about cutting back on the IRS and a few other things.
But they didn't talk about the Fed.
They didn't talk about the military industrial complex.
They didn't touch all the big issues.
So it's a benefit to have something, but it still has to go to the Senate.
It still has to go to the President.
And it still has to go to the people.
And if this cuts anything for the people, believe me, they're going to hear from it.
The people, the average person, the mainstream, the masses of people, want to get rid of the inflation.
But unfortunately, they've been educated in government schools.
And they hear political arguments.
And that's what carries the day, whether it's social media or regular MSM, mainstream media.
And it's always the same thing.
So I'm not very optimistic.
I would say you could find a few things in here like cutting back on the IRS, but they'll tax us some other way.
The taxes aren't going to go away.
And the taxes are going to continue to go up.
The spending is going to continue to go up.
So I guess people could put me down as being a little bit cynical about the whole thing.
But yet, I want to stay involved and discuss it and try to guide people in the direction that I think the Constitution would guide us if we followed the rules.
And Chris, I know you've thought about this, and I want to hear what you have to say.
Thank you, Dr. Paul.
Yes, the government has made a mockery of the term debt ceiling.
They've raised it over 90 times.
So there is no debt ceiling in their eyes.
Now, there is a debt ceiling, but it won't be set by the U.S. Congress.
It'll be, you know, by the rest of the world when they ditch the dollar.
There's your ceiling.
And that's happening.
We saw again this week, Argentina is going to be paying China and Yuan for the exports.
And, you know, one after another, we're seeing countries divest themselves and stop using the dollar.
So the debt ceiling will come, not by some vote in the U.S. Congress.
And, you know, this whole time, this whole charade, we've been fed such a litany of lies that deficits don't matter.
There's the modern monetary theory of just, you know, just print the money.
It doesn't matter.
There is the, everyone has heard this, oh, we just owe it to ourselves.
I'm sure the rest of the world loves that line.
And also this one, and we see this on social media.
America always pays its bills.
I mean, no, it does not.
Dr. Paul just always points out you're printing money to pay the bills.
You're defaulting all the time.
So it's all wrong.
But as we should know, politicians will say whatever they have to say, truth, lie, whatever, just to get what they want in the moment.
And they just hope that they're not the ones holding the bag when the game of musical chairs is over.
They try to push off the pain to the future, to the future generations, to us, to those who come after us.
That's how nice they are.
But the future is here.
And countries are getting, like I mentioned, getting rid of dollars, stopping to use it.
And that is going to give us a major economic crisis if the government doesn't cut, first off, cut anything, but they have to cut severely what they can't even imagine.
And that's the only thing that will ever get us out of this.
You know, we clipped a story this week, and you found this on the internet, and I find it interesting.
And this comes from the BBC.
And it's the Bank of England's economists says people need to accept they are poorer.
Probably a pretty true statement.
But it's interesting on exactly what has to happen because he is trying to be blunt.
And some truth to that, they will, but they don't have any choices about accepting it.
But there was never any talk about the Bank of England saying we need to stop the monetary inflation because that causes the debasement of the currency and that causes the prices to go up.
No, it wasn't that.
And it was more or less saying that we can regulate and put pressure on prices.
But he recognized that there was a danger to all this.
But the resorting to what happens when they say they talk about prices, CPIs, and whatever, that they're going to be price control.
They want to control wages.
Now, there's a little debate going on in England because the unions are very powerful and they want wages to go up.
Now this official was arguing the case, at least on paper, he was arguing that we can't do that.
We can't just pass out more money.
Besides, wages are going down faster than the prices because the wages are going down because they're printing the money.
So they have a big problem.
That's why I say if they're not going to deal with it, but this central bank is no better than ours, and our central bank isn't going to offer a question, offer an answer.
But there was another statement made by some of the items in the bill that's going on.
And I find one, the last one has an interesting twist.
It says, require congressional authorization for major administration regulatory initiatives.
Oh, it was astounding.
What a wonderful idea, getting authorization from the Congress.
And I keep thinking of the bailout.
You know, they're talking about a bailout of banks up to $100 billion.
But the Congress doesn't vote on that.
They don't have anything to say about it.
It's not even executive orders.
It's still the Federal Reserve over there doing things.
You say, well, we need to check that out.
Why don't we audit the Fed and find out exactly who's benefiting by this?
Well, you can't really audit the Fed.
That's top secret.
And that's even more secret to the CIA.
So that would be difficult.
But anyway, I thought that was rather interesting that this bill that they passed will require it.
It's a good idea.
But the odds of that happening, where Congress will assume responsibility, there's no real coalition in Congress to say that no more wars unless the people, through their members of Congress, vote for the war and then also find out where the funding's coming from, and they can't spend the money without the permission of the Congress.
So we have a long way to go.
I have to give the Republicans a little bit of credit because, you know, cutting back on the IRS and a few other things, at least it's there.
But like I said at the beginning, each one of the items in there serves us, you know, a little bit of attention to special interest groups.
And unfortunately, even the good stuff, or especially the good stuff, will be rejected by the Democrat Senate and that president that we have at this particular time.
He will also make sure that anything good in this bill that the Republicans pass will ever get into law.
Cliff?
Yes, thank you, Chris.
Yes, I wanted to comment on that Bank of England statement that the representative, I don't know who he was, said that, you know, people have to get used to being poor.
And I mean, that's very bold to say.
Is that why there's a Bank of England?
And in fact, for those who know their history, the Bank of England is the one that started all this mess.
The Fed is even modeled after the Bank of England.
But yeah, they're confident enough to say that you're going to get used to it.
And, you know, it reminds me of just the general attitude of people in power.
There is zero accountability for anything that happens, whether it be Afghanistan, Iraq, all the wars to Syria.
I mean, the people in power, oh, COVID, I mean, we're just going to move on from that, really.
It's like the biggest crime ever committed.
And, you know, but and we mentioned this week how they're coming out with denials.
Trudeau, I never forced anybody to get the shots.
And Fauci, you know, they're going to rewrite reality.
What you went through, they're going to tell you it never happened.
So, but, and that's the problem when there's no accountability, because what it does is, A, it attracts all the people that want to do big crimes.
They say, look, you go into government.
You could get away with all of this if you have your own crazy ideas, which they all have.
So this is a very bad, and it's very bad for the people because then they just expect, you know, oh, this happened.
Oh, classified documents.
Oh, nothing's going to happen to anybody.
And, you know, the people in power, then they start to think, well, we're just going to tell you, you're going to be poor and deal with it.
And that's it.
Or you're going to be sick.
It doesn't, you know, it doesn't matter.
You're not going to do anything to us.
This is all very bad.
And it all stems from what that Bank of England and the Fed does, that unlimited money.
They have the money to pay anybody they want for whatever they want.
And that's what's giving us this rotten view of humanity.
You know, it's interesting that they had this concept in Washington and in the public that there's discretionary and indiscretionary funding.
But if it's discretionary, they can work on it.
But the indiscretionary, you can't touch it.
And that's military, not absolute, but it's military.
Nobody messes around with that.
And also welfare benefits.
They'll try to.
The Republicans mentioned it in here that they'd like to get rid of that bailout for suitant loans.
But basically, it's off limits.
It was certainly Social Security and Medicare.
They're flat out broke.
End of Bretton Woods System00:10:55
But they're going to resort to printing money as long as they can until they bring on a worldwide monetary crisis, which will demand changes.
And that's what happened after many, many decades of the fake Bretton Woods pseudo-gold standard, where the predictions came true in 1971.
They had to throw the towel in, and that's when we declared our first declaration of bankruptcy because we no longer would meet our commitment.
Our promises were broken because it worked, and the people accepted it, and they accepted the dollar because we were the kingpins.
We had the military, we had the wealth in the country, and we were the most productive.
That's all changing now.
That's not true.
So, this is the reason that they want to talk about discretionary and industrial, but you can't touch a lot of them.
And it won't work that way.
The reason for this is that we're an interventionist government.
We intervene in personal liberty, we intervene in economic liberty, we intervene in the internal affairs of all the other nations of the world.
We tell them what to do.
We put on sanctions to punish them.
And then we're surprised.
Well, you mean they're competing with the dollar?
Well, that's not fair.
I mean, we take care of the world, we do everything.
And now they're attacking the dollar.
And those are the cracks that we're seeing this past year was a significant decrease in the use of the dollar as the reserve currency of the world.
And that is a big number, but it hasn't concluded it.
So I think it'll continue in that direction.
But the end stage is sort of like the end stage of Bretton Woods.
It was dramatic.
I'll tell you, when they were fixing gold at $35 an ounce, once they released and decided, well, we can't do this anymore, you know, to pass out gold because it's worth a lot more than that.
So they did that.
And during that decade, gold went up to over $800.
So something is going to happen here, or the dollar is going to be rejected.
You can't compare it to the details of the Bretton Woods collapsing.
But the principle will be the same.
The dollar system will collapse.
It's already started.
Every day you'll read another story that some major country could be India.
It could be China, especially, could be Russia, making deals around the world and exchanging in their local currencies.
And then also BRIC.
That's five countries getting together and saying, we want to compete in this.
So there will be a filling in of the vacuum that will occur.
A different situation than when the Bretton Woods collapsed, because all they did was doctor up the dollar, and the people said, well, we're not strong enough to do about it.
We'll just have to do what the Americans want.
We'll take their dollars and we'll keep trying to obey.
But I think that era is over, and now they're looking, and we're looking, and everybody's worried about it, but they're not talking about it.
I couldn't find any mention in this debt discussion and legislation dealing with this issue of what's happening to the dollar of the world.
We're living by borrowing and spending and running up debt.
And I just don't believe, even if they passed every single thing in this bill that the Republicans just wrote, would solve anything.
Besides, even if they did it sincerely and they passed it, you know, I remember under Reagan, we would vote on something and we'd cut it.
And they say, well, the budget is such and such.
I think it was on food stamps.
But we'll spend it faster.
And after six months, we won't have any money.
It'll be an emergency that we have an emergency appropriation.
Well, they do that in the military all the time.
China's going to attack us.
No, Sudan.
Yesterday, we talked about Sudan.
We have to be ready for that.
And we have to have not a two-front war.
We might have to have a three-front war.
But I tell you what, the abuse of the monetary system and the spending and the deficits and this nonsense and this inability to do anything about it will be the kinkpin of all this, and that's why we need to prepare for it.
Chris.
Very good, Dr. Paul.
I will make my closing statement now.
Kind of looking into the future, looking at what's happening now, and something that kind of bothers me a little bit because our position, Dr. Paul's position is obviously to end the Fed, but to replace it with sound money.
That's the key part of it.
And, you know, today and over the last months, the Fed has been raising rates, and it's making it harder on the big spenders.
The big spenders on the left in government are not happy with the Fed.
They're doing this, they're doing that, because it's making all of their uneconomic ideological projects that shouldn't have been started in the first place, it's choking them off, the higher rates.
And we see Elizabeth Warren blaming the Fed.
And, you know, what can happen, it's not happening now, but what can happen in the future is they may start calling to end the Fed.
And that's not the same as a Ron Paul person calling to end the Fed because they would want the printing press for themselves.
You know, not the Fed to print the money, but for Congress to print the money.
And that would be terrible and even worse than what we'd have right now because we would get the hyperinflation in seconds.
Can you imagine with how many trillions they would want to spend on the weather and all their other anti-social projects that they have?
They would print like crazy and there would be no breaks.
But they would probably frame it as, look, Ron Paul people, we're just like you.
We want to end the Fed too.
No, they are not just like us.
We are for sound money.
We're no counterfeiting.
It's unconstitutional for the Fed to counterfeit.
It's unconstitutional for Congress to counterfeit.
So this is just something to keep in your mind for the future because they are getting upset that the Fed is choking off all the projects that were started because of 0% interest rates and now they're all falling apart.
But we can't have our position used against us to put something even worse into place, which would be Congress being able to print whatever money they want for whatever they want.
That would be a terrible tragedy.
Very good.
You know, while in Congress, we would not too infrequently have votes because they were very popular with the people.
This bill is to stop waste, fraud, and abuse.
But they're not thinking about stopping the waste, fraud, and abuse by the government itself.
I mean, the principle of government, the economic system, the monetary system.
Because, yes, there's waste, fraud, and abuse, just like we send all this money over to Ukraine to fight a war to save America.
You know, and we send money over there, but they do concentrate.
You know, some of that money is stolen and used by the politician.
Of course it is.
But where did they first steal it?
They stole it from the American people.
And then they abused it by printing money and giving us all the inflation.
But so there's different types of waste, fraud, and abuse.
The system is wasteful and fraudulent and immoral and it's abusive and they don't follow the Constitution.
The big banks receive a lot of benefits and credits and 90% of everything that goes for green energy ends up in the pockets of the bankers.
They end up doing that, probably like the student loans.
My guess is there's some few bankers making this money.
If somebody doesn't pay their bill, why do you have to appropriate it?
If they're not going to pay the bill, why don't they declare a bankruptcy?
That doesn't happen.
The money has to be bailed out because somebody's holding that paper.
And a lot of times, it's not all held by private banks, but the banks would get bailed out as well.
But the whole thing is, you know, the First Republic, they're going to be around for a while.
And if you read some stories, some of them sound like, we've got to be tough, we've got to be tough.
But they can't be too tough because if not, you won't stop the run.
This is what is, if they, you know, we argue for hands-off type of thing and liquidate the debt and the malinvestment.
Under today's circumstances, I'd still support that idea, but it's very tough medicine.
So that's what they want to do in the First Republic.
If they don't get bailed out, and they've been tided over, they can get loans from the bank.
We don't know exactly what they're doing.
But if another bank does that, see, the bankers, the central bankers and our politicians know that we can't tolerate much more of this.
Because if you have 10 First Republics, I mean, the whole thing has come down on our heads.
And then you would see maybe a rapid change and drop in the dollar reserve currency and accepting something new and different.
So, and what that you can't predict because right now, I bet on it that they will do whatever they can to stop the run.
And that's what they're doing right now with First Republic without saying whatever you want, we'll do.
They can't say that, but they cannot let anybody all of a sudden let this spread, individuals losing their deposits.
You know, a lot of people say, well, will it be like the Depression where the deposits were lost in certain banks?
I don't think so.
Everybody's going to get their money.
Everybody's going to get their Social Security check.
What they won't get is value.
And that's hard for a lot of people to understand because they think the solution, if you go out and the politicians go out and ask the people what's wrong, inflation, inflation.
Well, what do you think we should do?
Send me more money.
And that's what they did under COVID.
We have a medical problem created by the government.
What do you want to do?
Send us a check?
Because everything's chaotic.
Well, obviously, I think, Chris, our audience understands most of this.
And we just want to encourage everybody to continue the effort to understand to the best of their ability how the free market works and how the system, you know, it's not complicated.
I think if I had to have only one word for the non-intervention and staying out of affairs, it's just the word voluntarism.
Voluntary Approach00:01:08
Have everybody do everything under a voluntary approach, whether it's social, economic, sexual, anything.
Voluntary, voluntary, voluntary.
A lot would be solved.
And of course, the government would have to be restrained because most people wouldn't voluntarily associate with the government because most of us, even the ones who want benefits, aren't begging and pleading for more taxes.
Anyway, it's a big problem.
But the interesting thing, if you want to find interesting thing, this thing is coming to a conclusion.
And even though I date a lot of my interest to Bretton Woods in 1971, August 15, this one is going to be four plus Bretton Woods crackdown or breakdown.
So we should be prepared.
Most we can do is get information, pass it on, and help people to prepare themselves personally.
But I think the most important preparation is knowing, understanding, and spreading the message of liberty.