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Dec. 1, 2023 - Ron Paul Liberty Report
33:50
Can We Learn Anything About Gold From China?

We seem to be moving (slowly, but steadily) to a multi-polar world. The U.S. empire is continually losing wars and credibility. Meanwhile, other major powers are stockpiling gold and forming economic relationships with other nations around the world. A hundred years of American wars have been fueled by debt, which are fueled by fiat money. Counterfeit money did this to us; and it can only be fixed with sound money.

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Time Text
Nixon's Gold Window Closing 00:06:28
Hello everybody and thank you for tuning in to the Liberty Report.
With us today, Chris Rossini, our co-host.
Chris, good to see you this morning.
Great to be with you, Dr. Paul.
Very good.
We have a program that is not unique to what we do here, but something we talk about a lot.
It's something, a subject that motivated me to speak out just because I thought it was an important issue a long time ago, a long time even before I was in Congress.
And that dates back to 1971 with Nixon closing the gold window, putting on tariffs and wage and price controls.
And that was the solution to restore us to a free market capitalism because we needed that.
Well, we know all about that.
And the article we're going to talk a bit about is written by a person from Gold Switzerland.
He's writing about gold, but what I got fascinated with, he put tremendous emphasis on August 15th, 1971.
And I was looking at his likely age, and he probably wasn't too much into thinking about that back then.
And I think he got involved in some of this gold finances in the 1990s.
I said, oh, yeah, that's real recent.
Yes, it's probably almost 30 years for that.
But anyway, the fascination to me was the emphasis on August 15th.
There are a lot of people who recognize that and they know how significant it was and how we had capitulated.
And it was sort of an accomplishment or an announcement that, you know, we're bankrupt.
We said we would honor the dollar and there were leaks to gold up until that time, even though Americans weren't allowed to own gold as 1971.
Foreigners could.
So there were restraints and there was confidence conveyed by that.
But finally, we ran out of gold or we were going to run out of gold.
So Nixon and I think Kissinger was very much involved too.
They decided that the gold window had to be closed, which was essentially a bankruptcy because we defaulted.
And I can remember a light bulb going on because I had been involved in thinking about this issue probably five to ten years before that when I had discovered Austrian economics.
And that to me was something there were very few people I could visit with.
You know, there weren't many people talking, but there was a group that knew it was coming, and they were the Austrian economists.
And that is the reason why I did my best to learn what I could about that.
But this was something that the writer of this article really emphasized all about it.
And because it's right, I just want to mention a couple things that he complained about this.
He said, history never lies, but politicians do fail.
In a fake system based on false values, lying is considered to be an essential part of political survival.
Well, I don't think I'll argue with that.
But then he goes on, he said, let's just look at Nixon's ignorant and irresponsible statements of August 15, 1971, when he took away the gold backing of the dollar.
Later on, we will show how clear some, this is an interesting point we wanted to talk about.
Later on, we will show you how clear-sighted the Chinese leaders were about the destiny of the U.S. and its economy.
And, you know, you better not, I better not say that.
You know, I could get canceled because the conventional wisdom is bash China.
And I've argued the case that it's misplaced.
Yes, they have problems, but it is misnamed.
But one thing is the Chinese took credit for this and said that they knew this was coming and it was proof that capitalism didn't work because of this failure and they're bankrupt and all.
And I object to that because we weren't having capitalism then.
We never had it purely spoken.
But over the years, we did, until that bankruptcy, there was some link to capitalism, free markets, interest rates.
It got much worse, of course, once they established the Federal Reserve System that regulated the whole economy and especially the interest rate.
But the People's Daily back in 1971 has a statement that tells you how the Chinese responded.
These unpopular measures reflect the seriousness of the U.S. economic crisis and the decay and decline of the entire capitalist system.
Well, you know, and all the things that are going on now, you know, I agree with a lot of that, but that's not capitalism.
You know, it was the falsehoods.
It was the deceptions.
It was the cheating.
It was the counterfeiting of the dollar.
But for political reasons or maybe out of ignorance, back then in 1971, the Chinese, see, their system doesn't work.
Well, of course it doesn't work because for 10 years before that, I had been reading from the free market economists and the Austrians, and they said, it's coming, it's coming.
And sure enough, it did.
So I always admired the fact that in this article in particular, brought about the significance of that.
Someday it'll even be of a greater significance in monetary history, but right now it's growing and growing.
And all the predictions going on are not strange to the people that are looking at the market.
For instance, as a short time before we started the program, I think I glanced at the screen.
It said gold was up $22.
People say, what, whoa, how'd that happen?
And, you know, if you understand it, you say, why wasn't it $32?
Birch Gold's Rise 00:14:28
Because we have abused it so badly.
And it ends up with a challenge to peace and prosperity and the counterfeiting of money.
Chris?
Yes, Dr. Paul.
And we do live with a counterfeit economy.
And our story today with the Chinese and gold, and even the Russians are big buyers and holders of gold.
They fit into this bigger picture that for many decades and even today, slowly and steadily, from my vantage point, it looks like we're moving towards a multipolar world where there's not just one superpower that dominates the world.
And that, unfortunately, has been the policy of the United States with the Brzezinski doctrine, the Wolfowitz doctrine, that nobody can challenge the United States.
And it doesn't seem to be going so well because now we're butting up against the big boys.
And the big boys are Russia and China.
And from their vantage point, they are stocking up on gold.
Meanwhile, we are blowing everything with debts that we cannot pay, that someday will have to be addressed, and we certainly will not have the upper hand when that is addressed.
But it also is a part of weapons.
They are both nuclear powers.
They have very powerful weapons.
They can hurt us here in the United States and also with relationships.
We go around, we've destroyed many countries.
We lost Iraq, Syria, Assad must go.
That didn't happen.
Ukraine, that didn't happen.
You know, our government should not be doing any of this.
We speak out against this, but it's so tempting to want to dominate the world that your voice gets drowned out, especially by the media, who is very pro-empire.
But, you know, we're now hitting the wall over and over with Russia and China.
And, you know, I think most Americans don't realize this.
We live our lives daily.
We don't realize what our government is doing out there trying to take over everything.
You know, it's bad, and it's now coming back to hurt us with inflation, with poverty rising, with everything's unaffordable.
The American dream is gone.
Suicides are at a record high.
This is how it comes back.
If we could just stop with this crazy idea of running the world, our country would be much, much better.
Right.
And, you know, the emphasis, of course, as you imply, it's the way they fight wars that shouldn't be fought.
And it does lead to bankruptcy just because more people spend it and the distortion.
So the country becomes bankrupt.
That's why they admitted back in 1971 that this is the sign that we are bankrupt, but it's going to keep getting worse.
Now, since that time, GoldSwitzerland.com, in this article we're looking at, quotes, the suspension of the convertibility of the dollar in 1971 is still in effect 52 years later.
As the dollar has declined by almost 99% since 1971, the strength of the economy is also declining fast and also and although using that fiat money as a measure hides the truth.
There's a lot of hiding in fiction because people don't think of that because they go from this moment.
How much is it going to cost?
And it so distorts politics.
And that's why I think the education is critical because when people are hurting and the innocent people get hurt, the people who didn't benefit from all the inflation, like the banks and the big corporations and the military industrial complex and the pharmaceutical companies, the people don't understand that, but they get the bill.
And the bill is the inflation tax.
So prices go up.
The very wealthy who made a lot of money with this gimmick, you know, they don't care about what the price of bread is.
Eventually, they will have to care because this usually leads to more chaos.
And I want to use this just as a point of the reasons that we partner with Birch Gold because Birch Gold's been around a bit and the problem's been around a lot.
I started my interest back in or before 1971 and it was that incident in 1971 that motivated me to speak out.
And then surprising to me, I go to Congress over that.
It's a big issue.
So this is the reason why we see this.
I find it fascinating economically, fascinating educationally, and politically for wars and all the tragedies.
But really, a lot of people can and should.
They say, well, you've got to protect yourself.
How do you protect yourself?
They're destroying the value of money.
Now, that's a real question.
And somebody says, well, that's just being selfish.
No, it's the self-interest.
That's fine.
And people have done it for a long time, but more and more people are doing this.
Now, you know, Birch Gold has been doing this and advising and guiding people on how to buy gold and understand what the system is.
So that is the reason that we work with Birch Gold.
And they were one of the early ones to talk about seeing how you get your gold into a pension fund, a retirement account, because otherwise it gets complicated.
So right now there are some complications.
So a little bit of help getting through the tax code and everything else is important.
But this is the reason how we advise people to get started.
If they say, I don't know what you're talking about, and I've never thought about it, but I see you tell me gold's going up and it is a protection.
Neither a magic, never 100%, but it's the best we can for the individual to protect themselves.
So I think this is important.
So if you want to get a little bit of a follow-up, you can text Birch by doing this.
Text Ron at 989898.
And this will get you in touch with Birch Gold, and they will send you materials, some explanatory materials to tell you how to get involved.
And I think any information you get is of value.
And I think find it fascinating.
I still fascinated with all the news.
And we have to be, you know, looking at what did the Fed say yesterday?
And why did they change their mind today?
And why did that change about a trillion dollars in the financial market?
It's totally obscene what happens and the power and the influence it has.
So it would be to your advantage to get the advantage if you're not involved is to get in touch with Birch Gold and that is Ron 989898.
And Chris, we want to go ahead and talk a little bit more about this because I think this whole problem is going to be around for a while.
And it's such a, to me, it's a moral issue.
It's theft.
And counterfeit is a good description of what happened.
But, you know, there are people in Washington that break the rules and some of them go to prison and that's right.
They should, they should.
But when you think of the big things, taking our government and our people to war in an unconstitutional fashion to protect the special interest, that is obscene.
And the same way, monetarily, just think of the people who do benefit from that and who control it.
That is why there were even a lot of people that were available that understood the institution, the instituting of the Federal Reserve back in 1913.
But they did something there.
I think it was Christmas Eve or the day before that they slipped it through when everybody had left town and get that bill passed.
So it was started with deceit from the very beginning.
And this to me is so important that there is an understanding.
So I think it's very important people do their best to protect themselves.
And there's different ways of doing it.
I mean, there's not only just one way, but just owning and paying for your house, that's one way people protect themselves to some degree.
So that is important, but eventually, though, the biggest issue that has to be faced, because we can do all those things, but governments are obscene.
And when you think about it, well, would a government ever come along and steal your gold if you were saving gold?
Well, they did it already a long time ago.
People didn't fuss with it.
1933.
Roosevelt, as soon as he gets in office, he confiscates the gold at $20 an ounce, and then he revalues at $35 an ounce.
And guess who benefited from that markup?
The government, so that they could inflate at will for all the nonsense that they want to get involved with.
So it's been going on a long time, and that's why you can't know exactly what will happen.
But the governments will not ignore what is happening today.
Because if people are protecting and actually an answer to the fiat money, the government is not going to like that.
So that's a big burden, but it's also part of the system.
And it's also part of human nature and how it's been going on for thousands of years, how there are some people who are evil and mischievous, and they'll steal and rob.
And the destruction and the manipulation of monetary policy has been known for a long, long time.
And so they're going to continue to do that.
So, of course, I fight for sound money and getting the government out of the way and make them quit doing the things they are doing.
But still, we all should participate in working for a free society with that sound money.
The founders gave us sound money.
Then the Federal Reserve got to the point where they finally destroyed any semblance of trying to keep our dollar related to gold.
Chris?
Right, Dr. Paul.
And you mentioned the fear that, oh, well, the government will take my gold.
Well, the government is taking your dollars.
So I personally don't think that Americans, America is the same as 1933.
There was a lot more trust than government in 1933.
Unfortunately, the trust led to a lot of bad things than today.
And so they're already taking your dollars.
And you may think, no, I go to my bank account and it's the same.
I don't see any dollars missing.
No, they don't take the amount.
But what those dollars buy, you know, now you're buying a lot less, even though you have the same amount.
And that's because they're destroying the value of the dollar.
So they're already stealing from you right now.
So if you're worried about them stealing gold, they can't counterfeit gold.
Okay.
So there's that.
And I also wanted to bring up President Biden in one of his tweets.
You know, of course, politicians never blame themselves.
So they have to blame someone else for the inflation.
And his tweet was funny.
He says, let me be clear.
And, you know, whenever they start with let me be clear, get ready because they're about to snow you.
So he says, let me be clear to any corporation that hasn't brought prices back down, even as inflation has come down.
It's time to stop the price gouging.
Give Americans, consumers, a break.
Now, this is such deception.
Inflation is not down.
Inflation is still up.
It's just less than several months ago, but it's still rising.
Prices are still rising.
It's the same as when government spends more one year over the previous year, but if it's a less percentage, they call it a cut.
They're cutting and everything is going to fall apart.
But they're still spending more.
So it's the same thing with the inflation.
That's how they deceive you.
And I feel bad, even though they are on the rotten end of the stick for the businesses that create products because they have to adapt.
Their prices are also rising, and they have to, their consumers expect to pay relatively the same thing.
So, what are they supposed to do?
And that's why we see shrinkflation.
You see, the package gets a little bit smaller, but the price when you go to the store is still the same.
So, you feel like you're and they really have that's their option because they can't go to everybody and teach everybody economics and say, you know, this is why we're doing this.
We're getting squeezed.
We have to stay in business.
We have to stay profitable to stay in business.
They can't go and explain to everybody.
But consumers are still upset because you could see it.
I see it when I go to the store.
You're getting less, but paying the same amount that you did before.
But you know, you're getting less.
And it's easy to just blame, oh, it's the company, it's the company.
And that's what Biden is doing here.
He's trying to blame them.
But it's the Bidens, it's the Trumps, it's the Obamas, it's all of them that spend trillions and trillions of dollars that they do not have, that the Federal Reserve prints, and that's why the dollar loses its value continually.
But they will never point the fingers at themselves, which is where it belongs.
Very well.
You said it so well that you have proven that there's nothing complex about this, if you know the motivations of those people in charge.
But we have to keep our fight up against the people who would do it nevertheless, because people have been destroying the value of money for a long period of time.
Chaos and Sound Money 00:05:56
I'm going to read a couple headlines to show where the chaos is and what to do about it, because the stocks are doing very well right now.
I don't know about this minute, but last week, they were doing very well.
And I've been asked, well, isn't that protecting against inflation?
They print too much money, and maybe it is a bit of malinvestment, and they buy these stocks, and they go up, and they look at their portfolio, and they're doing pretty well.
And to some degree, that is true.
And some very, very good companies probably will survive, and there will be a little bit of protection.
But most people who think about hard money and investments against runaway inflation don't depend on the stock market.
But this past week, it was at a point where it looked pretty good to be in stocks.
Here I had the NASDAQ in this past month advanced 10.7%.
Not too bad.
But the big problem, though, is if there's a crackup boom, which this could be part of, they could skyrocket even higher and then they'll either disappear in value in real terms because the dollar isn't buying anything or those things crash.
So with a crackup boom, when everything is in shambles, that's when it's very important to understand the precious metals.
Here's another one.
Dow jumps 500 points to a new 20 high this third, past Thursday.
And was 8% increase in November.
Another one, oh, I know.
Here's one that bugs me because I've been watching and trying to keep up with Larry Fink and BlackRock because they're radical leftists, environmentalists, but they also know how to work with the government and they can also blackmail people into doing whatever they want because your line of credit is always going to be challenged if you don't promote the social policies that you want.
But there were some reports that maybe some of their stocks aren't doing so well, which on long term they're not going to do well because they're investing in things for the wrong reason.
But here's an article just recently, November 29th.
BlackRock's plan for additional $4 trillion in climate investment.
Boy, because they've been so successful and everything, I guess people are going to jump on that.
But no, it's just typical stuff.
And to me, that would involve malinvestment.
But to depend on that kind of an investment, even if it looks like so far some people are doing better than they did a year ago, that is not an indication that if a year from now there's a lot more problems.
And here is another article to indicate the chaos that we're living with at this present moment.
What happens when millions of renters can no longer afford high rents and move back home?
Well, I'll tell you what, there's going to be a crash in the housing market.
There's one of those once before it was vicious in 08.
And because interest rates went down to 0%, you can imagine they were back doing the same thing, even going doing QE when they were buying up all these mortgages.
It's just, you know, tiding it over, pretending it's wealth.
And the people have nothing else to do.
So they take the money.
And even though they might have bought their housing at 0%, they can't afford it because when people were buying that, that probably was above market value.
But it's to me just another sign of how disruptive this system is and why the crack up boom that Mises talks about is coming.
And that's when everybody gets out of dollars.
You have no idea what they're going to put it in or when because one day it'd be one thing and then it shifts to another.
But it's not a good sign.
And then there's not going to be a vote on should we have reform of the monetary system.
No, the market will work it out and decide when there has to be monetary reform.
That's why we're seeing that already.
And that's why people are getting pretty nervous.
Chris?
Fantastic.
Dr. Paul, I will finish up with my closing thoughts.
Yeah, counterfeit money did this to us.
No one should ever have the power to counterfeit, and our government doesn't have the power to counterfeit.
But they are slick.
They found the workaround and they just outsourced it to the private Fed.
They'll do it.
And it's, you know, we're not counterfeiting.
They're the ones that are doing it.
And you could relate it to something we just went through with the censorship and Twitter.
Government says we weren't doing it.
It was the private Twitter.
They were the ones.
And meanwhile, in the background, the government's, you know, all these people are getting canceled.
And nobody, I'm sure, expected Elon Musk to show with the Twitter files what was going on behind the scenes.
So it was outsourced, and that's how they can pull it off and say, we're not doing it.
The private company is doing it.
So it's the same thing with counterfeiting money.
We're not doing it.
The Fed is counterfeiting money.
It really doesn't matter how it's being done.
It's being done.
And it's a recipe for the most arrogant government you could imagine.
If you could print, I mean, nobody should print money, but especially not the government.
I mean, they will think that they can take over the world, that they could give money to everybody.
Everything should be free.
It's what we have today.
And it all stems from that.
And the only way to stop this is: A, they're going to bankrupt themselves.
Moving to Sound Money 00:05:02
But if there's a way to head it off ahead of time before they create such crazy economic damage, it's to start moving to sound money.
And that's the only thing that can help us.
Something that cannot be counterfeited.
That's what the Constitution says.
Only gold and silver.
But they ignore it.
That wasn't amended.
You're supposed to amend the Constitution.
They just totally flat out ignored it.
Gave the Fed a monopoly to print dollars, and here we are today, and we're suffering because of it.
So that's the goal, to get to sound money.
We must have something that nobody, especially the politicians, have the ability to counterfeit.
Very good.
You know, I like to look at the charts and the gold and silver and stocks and everything else, but there's a limit to how charts predict the future.
They usually don't.
They usually tell you about the past.
But sometimes you can get some hints and people believe that they can watch out and anticipate.
But I want to just talk for a minute because I usually don't talk about the charts on gold.
But, you know, in 2011, gold went up for the first time to $1,800 after it had lingered for a long time at the beginning of this century.
It was at $270 an ounce.
Can you believe that?
But by January of 2011, it was up to $1,800.
And then there was a correction.
From 2011 to 2016, it went down.
And so it was a significant amount.
So there's no easy way if you think you're going to make a quick buck because some of this is unpredictable.
And even the Fed saying one word or two, you know, can change the short run.
They can't change the long run, though.
But so 2011, it was $1,800.
By 2016, in January, it was down to $2,000.
It was $1,800.
And today's phase, 2016, it went down to $1,000.
And now it's recovered from $1,000.
So January in 2016, there was $1,800 and it went down to $1,000.
Now it has essentially doubled that.
It's up to $2,000.
And in my mind, because if you look at the way that gold does, sometimes it stays negative for much longer than it's supposed to.
Sometimes it's overbought and it goes higher and lasts for too long.
And everybody pretends they know the future.
But here in 2000, by 2016, it was $1,000.
And it is now $2,000.
In my mind, I date 2016 as the beginning of a long run, because when you look at some of these charts about once gold gets moving and there's momentum, it goes much further.
Because, you know, I think when it was $35 an ounce artificially, and then the gold window was closed and the gold was legalized, it went up to $800.
And that was like 58 times the normal or the original price.
And now this has doubled it.
According to what happens in some of these bull runs with gold is a lot more than doubling, but it also goes down more than doubling too.
But I just think that January of 2016 will be looked back on as the time a big, big run was going to occur in gold.
And the more we read about the collapse of the economic system and the need for more printing money and the deficits, I think debt is a good indicator that tells you what kind of pressure will be put on the Fed to print.
But so if this is anywhere close to what I think about gold can go up several times, which would still be a lot less than it did on the other time of gold runs, especially that first one, when it went up 50-fold.
But if it goes up two or three times, it's huge.
But if the whole system comes crashing down, though, the charts don't mean anything because you lost your ruler, you lost your measurement round, you lost the key value, and that's a unit of account.
It'll be a hard time to find out what the next unit of account will be.
But I'll tell you one thing: history will always defend a unit of account as being gold.
Challenging the Elite's Grip 00:01:38
They've done it for 5,000 years, and that's what they have to go back to.
But it's going to be a rocky road to get back to that.
So anyway, I think the monetary system gives you a lot of information.
It's fascinating.
It tells you a lot about human nature.
It also tells you about the very evilness in people that want to have a free ride at the expense of the middle class and the poor.
Because when you inflate, you're taxing the poor, and the rich are getting richer, and that's why we end up with political chaos.
And this bankruptcy has a long way to do before it's over.
We're going to do our very best to expose the culprits that have run this and get people to try to get protected the best they can.
And in the meantime, it doesn't mean that it's inevitable that we have to live like this forever.
If we do the right thing, really, if we did the right thing, there would be some pain with it.
And if you just took your hands on it and let people take care of things, it would last about a year.
What if you could work and you didn't have any forms to fill out?
You didn't have any regulations, you didn't have any taxes to pay.
People would go back to work.
No welfare, though.
People would go back to work.
You mean I can go out and work and I don't have to do all this thing?
You know, it would be pretty nice.
So the solution is not difficult.
It's not complicated, but it's politically resisted by the powerful elite.
And that's where our problem is.
I want to thank everybody for tuning in today to the Liberty Report.
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