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Sept. 3, 2024 - Ron Paul Liberty Report
23:46
Bubbles Everywhere...Blame The Federal Reserve!

We live in the greatest government bubble in the history of the world. The U.S. federal government intervenes everywhere, and ruins everything that it touches. Its interventions aren't restricted to the geographical United States, but are worldwide! The engine of this great catastrophe is The Federal Reserve System. Without The Fed, none of this would have been possible.

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The Great Government Bubble 00:12:52
Hello everybody and thank you for tuning in to the Liberty Report.
With us today we have Chris Rossini, our co-host.
Chris, good to have you with us.
It's great to be with you, Dr. Paul.
Good.
We're going to be talking about bubbles and lots of lots of information about financial bubbles.
You know, we had a big one and a lot of attention paid in 2008 and that's when they ended up with QE and they inflated their way to a level which surprised some because it was so bad and everybody remembers it being very bad.
But it settled down and they got back to doing what they always do and that is print more money.
And the market settled down.
But all they did was they temporarily let a little air out of the big bubble and now with the re-inflating now they're facing another one.
Now the article that we picked up on comes from Politico which is interesting and it was published yesterday and it talks about the bubble that we'll talk about a little bit at least today and that's the real estate bubble.
But there's been hints and talk of real estate, real estate.
It's going to happen.
But this article points out some of the things that are happening.
There was one huge deal up in the Manhattan, hundreds of million dollars, and it lost 97% of its value.
So it's already hitting and people are getting more worried.
And I thought it was interesting what the chairman of the Federal Reserve said.
I think he said December.
He said, Powell has voiced his concern about this.
Well, that's good.
He should be concerned.
Saying that commercial and estate risk, quote, will be with us for some time, probably for years.
And then I was going to add, and he probably in his mind's head, it's not my fault, but it is his fault.
It's his fault because he's the manager of a system that was never intended by the Constitution.
People know that it's ridiculous.
It's funny money and makes for so much harm and tragedy.
It facilitates runaway spending in the welfare state and the welfare state for the wealthy corporate companies, as well as war that we don't need to fight.
So it's a terrible organization.
But the day that the Federal Reserve chairman gets up and say, and it was all my fault, and then in denial, you know, in the last few weeks, they kept talking about, well, you know, things looked, the statistics they were putting out, the statistics looked half decent, you know, stock market high, and that's exactly what happened in the 20s.
Stock market stayed hot, and everybody reassured themselves things were okay.
But the whole thing is, is the stock market is not the final test.
But the real problem is debt behind all this and all the promises made.
And now that they were able to get us to a period which is just with more inflation and get by 2008, but here we are in 2024 and we're back at it.
And we didn't start from the same level that we've been in the past.
Like the beginning of these big bubbles really happened, started, especially in 1971.
But no, no, right now, the bubble, I imagine in my own mind, I think of the bubble now.
Not only are they everywhere to be found, the ones they will identify are huge.
So I think this real estate thing is a great threat to a lot of people.
And I keep thinking, how's it going to evolve?
Because nobody knows exactly what will happen.
The only thing I can say is when push comes to shove and people get worried, you know, the old-fashioned bank run, they're probably not going to allow it because, you know, that was when they had gold and they'd rush in to get their gold.
But if you rushed in now to pick up paper, people will want to try to get their money out of it, but there's not many other places to put your money on an average-day person because there's still a lot of people working and a lot of people have money and a lot of people are buying and selling and paying their bills.
But I think this bubble is really leaking air and it's going to burst.
I think we're on the verge of a bubble bursting.
I think you're right, Dr. Paul.
Before I begin, I want to thank everyone who came to our weekend conference up in Virginia.
We had a great time.
It was great meeting everyone.
Daniel is going to take the week off, a much deserved week off, for all the work he did in putting it together.
So I will be the host all of this week, and Daniel will be back next week.
Yes, so we do live in the biggest government bubble in the history of the world by far.
It's not even close.
And Ringo Starr once said something along the lines that everything the government touches turns to trash.
And we're getting it one by one.
It's like dominoes falling.
Yes, with the commercial real estate, rates were held at zero.
Everybody remembers that.
So of course, people went and borrowed money thinking that they're going to get rich with commercial real estate because they were artificially suppressed interest rates at 0%.
It's like any other artificially suppressed price.
If you go to a supermarket and ribeyes are a dollar, you're going to be like, yeah, I'll buy 10 of them.
They're a dollar.
So people go to the bank, zero rates, and they take out more money than they could end up paying back, and they go build all this commercial real estate.
Then COVID comes along, and the next domino to fall is they send everybody home and lock them in their homes.
And now you have all these empty offices.
And many of them are still empty.
New habits were formed.
We don't need those offices now.
So now you have a glut of commercial real estate that, again, remember, started with the Fed's zero rates and then compounded by, you know, unnecessarily sending everybody home.
That was unnecessary to do.
And now you have all these empty offices.
We have inflation today that can be traced back.
At least it got its jolt with the $6 trillion CARES Act during COVID in the Trump administration, where they pumped trillions and trillions of dollars.
And now we have skyrocketing prices.
And at the same time, they opened the borders, let millions of illegals in, and now we're told there's a shortage of homes.
So we have empty offices, shortage of homes.
Government has everything to do with all of this.
And the Fed is like the drug dealer that enables it all to happen.
So this is the great government bubble that we live in.
It is going to pop.
It has to pop in order for us to get back to reality.
But it's all created by this addiction to having government involved in everything.
You mean, Chris, that you're not reassured that we're in the midst of an important election and they're having a full debate of the causes of the problems that we have.
And we can avoid that bursting of the bubble.
Of course, being very facetious, I think I agree with everything you said there because it's persistent.
One thing we hear very little about in the campaign is debt is our problems.
We've got to balance the budget.
We've got to cut back.
We start to have to, all debt like this is going to be liquidated.
All the mail investment will eventually liquidate it.
The sooner we live up to the honest assessment side, the better.
No, it's not going to happen, so don't pretend it will.
So you expect the governments to do what they do, and that is cheat.
And they cheat with counterfeiting money.
That's what criminals do.
When you look at who are the criminals in the world, just think of the hoodlums on the streets that get rewards and get free stuff and hotels to stay in.
And other people are going to prison because they're politically incorrect.
Anyway, there are other things.
We do talk about the Fed.
We talk about money supply, interest rates, the unit of account.
You have to have a definition to have a sound economy.
We have none of that.
And if you had to change one thing, that is what you do.
But there are other factors made because all prices don't go up the same.
All people don't get jobs and lose their jobs together, even with the inflation, even though overall there's going to be a lot of suffering.
But everybody won't suffer the same.
Unfortunately, the people who have benefited so much from the inflation are going to benefit from the correction made.
But one thing I wanted to point out is that people don't talk as much about the malinvestment, the mistakes that people make.
Interest rates, sound money, you have a definition of a unit of account, and then the interest rates tell you what the market value is for loaning it.
And that gives a tremendous amount of information to investors, entrepreneurs, savers, the whole work.
Should be a signal to the government, but usually it's totally denied by the Federal Reserve and the government and the government spending because they don't want to hear about that.
So they just say, We've got to solve the problems.
That's why we have to print more money.
But one malinvestment, a condition that has been a major part of what's going on around now, happened four and a half years ago.
And that was with the pandemic, the fake pandemic that was concocted for political reasons.
And what do they do?
You know, with inflation and the breakdown of the economy in this way, and the debt is expected, and it's very bad.
But then when they come along and compound it by like, you know, there's one candidate, I think she even wants to put wage and price controls.
Keep the prices down.
Stop the gouging.
But four and a half years ago, we had this massive intervention.
People weren't allowed to go to school.
They weren't allowed out of homes.
And people, if they talked about a little bit of honesty in medicine, they could be canceled from their jobs and the whole works.
And there's still a lot of suffering going on.
Just think of how many kids are still suffering from not being allowed to go to school during this time.
So that affects the part of the infrastructure and it adds on to the big problem of the manipulation of money and the cost of money and interest rates and the huge deficit.
But that is added on, but that's being worked into it.
And that's one of the contributing factors, I believe, to make this bubble the biggest, as Chris pointed out.
Right, Dr. Paul, yes.
And it's really not rocket science to figure out, well, how should it be if it shouldn't be like this?
Well, there shouldn't be a Federal Reserve, number one.
And if there wasn't, there would be no manipulation, legal and centralized manipulation of interest rates.
So we wouldn't have these constant bubbles, stock market, real estate, and stock market, real estate.
And we wouldn't have the inflation that we have because they couldn't counterfeit money.
That's what creates the inflation.
Instead, money would actually gain value, which we in our modern lives have no comprehension of.
We have no frame of reference.
It's like telling somebody that there's unicorns.
They have no idea, except this is real.
Money would actually gain in value because the more productive and the more goods that are produced, the money gains in value.
Instead, what we have is the more money produced, counterfeiting for this, for that, for wars, for the list is endless.
So our money is constantly losing value.
A burger was a nickel before, and now it's $15.
The burger is the same.
It comes from a cow.
The difference is the money has lost tremendous value because they just constantly counterfeit it.
So we can do without this.
We need to do without this.
But none of this was done for us anyway.
It was done for global domination.
Our country has proven that you don't invade the world and try to control the, you know, put bases all over the world for your own benefit, for your own people, because it has done nothing for us.
It was a desire to dominate the world.
Politicians' Global Domination Dream 00:02:53
It has failed, as was very predictable.
It is failing.
So it's not going to work, but we're paying the price for it.
You know, we are the citizens.
Our government went nuts, and we're paying for the price for it.
But it doesn't have to be this way.
You just have to do the opposite, and we could be on a much better path.
You know, one thing that's coming up in the next several months, we'll see exactly what happens.
That is that there's a lot of loans out there coming due.
The real estate loans are for shorter period of times than other loans, house mortgages and other things.
And there's, I think, like a trillion dollars coming due soon.
But they can't renew them at the old rate.
The rates are going to be very high.
And the owners of these properties, you know, some of these towns and cities have gotten into trouble.
They've been raising rates on the real estate.
And that certainly doesn't help.
But, you know, the politicians don't know any better, so they have to do that.
They'll even try to raise taxes under these conditions.
But how about the things that you mentioned just now, Chris?
How many other things go up in price, you know, from food to clothing and everything?
Because that's massive, although you can't pick out the sum because there are some that might not go up.
If there's a new invention or something, it might even drive a price down.
But it's the distortion and the unfairness of it.
Some people are punished more than others.
But the operation costs, the price of energy, the price of repairs, labor costs, you know, right now, you know, labor is pretty angry.
And there are some politicians appealing to this.
Oh, we're going to take care of you there.
We'll make sure your labor goes, you know, your wages go up.
And it might be honest sympathy and concern for it.
But the whole problem there is the raising of these wages or the artificial, it might tinker, make it make a tinker increase in their income.
But the one thing of past recessions is the working person and the middle class, the people who are suffering the most, they never, they get a little improvement, but the inflation always eats their lunch.
And that's what's happening.
So you can help a working person.
And I don't think that's an excuse for not giving up on the policies that drove this.
But the thing of it is, there's no evidence that that's going to be the solution.
So there's going to be anger.
And that's what's happening now.
There was a lot of people who are concerned about this.
I saw something the other day.
The Best Candidate's Punches 00:05:34
There was a candidate out, and he was running for political office.
And he was bragging, I am the best candidate for labor.
And I thought, well, how about the person who's the best candidate for defending our country and et cetera?
So the whole thing is, whether it's labor or business or environmentalism or whatever, what you want is the best candidate for liberty.
And they never do that.
Just as a little trick or a little thing that I was doing for myself, once I saw this, the best candidate for labor, I started, I was going to say, well, there are other candidates for business, et cetera, and national defense.
My list got too long.
There are so many.
I'm the best candidate for this, this, this.
Nobody says, what I'm the best candidate for is to free you up from the obsessions and the injury that the government places on us, and we could start with getting rid of the Federal Reserve.
Excellent, Dr. Paul.
I'll finish up with my closing statement.
All trends, good and bad, they start off slowly and they head in direction up or down.
And then at the end, it's very rapid.
There's like a blow-off of fear, blow-off of confidence, where it gets out of hand.
Well, we're in the rapidness of the decline of our nation.
But it's been going on for a long time.
You know, the Fed was created over 100 years ago.
So this is not something that's new, but now it's very rapid.
And the more rapid that it gets, the more reckless the leaders become.
And we can see in their rhetoric.
They're talking about fighting wars in China and Russia and Iran.
I mean, they're absolutely insane.
That's the recklessness that comes with the blow-off at the end.
While the country at large struggles, it is possible for our families and yourself to do relatively well.
The country itself, there's really, that's a different story.
It really has to go through struggle.
But our families, you can do relatively well.
Not everybody suffers to the same extent.
And it all depends on how much you believe the government.
If you do the opposite of what they say, most of the time, you're going to do rather well.
Unless they're saying we're going to cut, we're going to get rid of, we're not going to restrict, that's all good stuff.
But they don't do that.
They just want to intervene.
One thing that just came to my mind is this fight for $15 an hour.
Remember that with the fast food?
And Dr. Paul and I are doing shows saying this is bad.
They're going to throw these people out of work.
Here we are, several years later.
If you go into a fast food place, it's screens.
You know, there's very few people at a McDonald's now.
They don't even take your orders in some of them.
But they were fighting for 15, and what they got was you're out of a job.
But that was very predictable.
You want to do the opposite.
If the government is telling you something, again, unless they're getting out of your way, you can do relatively well.
The people that obey during COVID and got all the shots, they're the ones that did the worst because they took these people seriously and didn't realize that their interests were not being served.
So we could alleviate, none of us, and even if we do this, you can't alleviate all the heartaches.
We live in this society.
We're going to get the punches too.
But we can alleviate a lot of the punches and not have to take all of them.
So that's a good way to think about it.
Very good.
You know, I'm going to read one sentence from the article from Politico that went over this subject, because it tells us a lot about what's happening.
It said, over the last four months, seven office properties were sold at a staggering loss of more than $100 million.
Well, that's a lot of money.
But wait, $100 million each of the seven, each upfront, just one such sale in the first three months.
And now there's seven.
And that tells you that we shouldn't get careless and say, you know, the rich always benefit and they're on the inside because a bunch of them are.
You know, if you look at the military-industrial complex and the pharmaceutical industries and all these things.
But they're still, we're all a threat because I say the protection and what we have to deal with is the freedom that we have.
Because as far as I'm concerned, if they came in and wiped the books clean and we're all, we have nothing left.
They take all our money goes to zero.
But they open up the doors to liberty.
And you could go to work.
And the principle is what you earn is yours.
And the government can't take it away unless you voluntarily donate it.
People would go to work fast.
And I think people would recover quickly.
And that would remove all the benefits and the largesse that the big companies and the banks get because they would not be allowed to do this under those circumstances.
But you know, the other thing that I think is important this week already is that the Fed's tone has changed.
Run Our Own Lives 00:02:09
You know, they keep talking, and they went back and forth and back and forth.
Well, I think we ought to lower interest rates.
Of course, you know, if the economy is in real bad shape and these defaults are coming, they're going to raise interest rates.
The market will help tell them what they have to do.
But now just recently they announced that, well, we were going to do one, but maybe we'll do two and three and maybe this year, maybe next year.
So they're planning on lowering interest rate.
So I think, even though they would never admit it, I think they're getting a little panicky because even those people who are in the Fed that are supposed to know so much, they don't know so much as far as I'm concerned.
So those issues are there.
I think this debt is the big deal, and it will affect all of us.
And the tragedy is that the people who do work hard, they want to save, you know, if you're a very average person and you are very frugal, you take care of your family, you pay your rent, or you pay your house market, and then all of a sudden, they're the ones who suffer the most.
And they'll have a tough time.
But there'll be a lot of schemes going on right now because right now, the two political parties are ahead of the liberty lovers.
They're not going to cut spending.
There's no way.
And they're not going to bring the troops home.
Just hope and pray that they don't start another hot war.
But we're already at a hot war.
We have troops in so many places.
You know, every once in a while you read, we still have troops in Syria?
Do we have news today?
Do we still have troops in Iraq?
Afghanistan.
I thought we won those wars.
Yeah, sure.
We haven't won those wars.
The biggest war is against the spenders in Washington who think that they deserve the power and the control, and they have the knowledge on how to run our lives, and that's where the mistake is.
And that's what we have to deal with.
We have to decide that we in a free country want to run our own lives and we want to spend our own money the way we want.
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