The Fed Decides To Pour Gasoline On The Inflation Fires
Donald Trump calls Kamala Harris a Marxist and (rightfully) warns against price fixing. But we already have a Marxist-style monopoly central bank that price fixes. The Federal Reserve consists of a handful of individuals that get together like the Soviet Politburo and announce the arbitrary fixing of interest rates. As Americans suffer from years of the inflation inferno, The Fed Politburo decided this week to pour gasoline on the fire. More inflation is on the way!
Hello, everybody, and thank you for tuning in to the Liberty Report.
With us today, we have Chris Rossini, our co-host.
Chris, welcome to the program.
Great to be with you, Dr. Paul.
Very good, and I bet you paid a little attention to the precious metals market, the dollar market, and our friend Powell, you know, I wonder if he'd come on our program and try to explain a few things to us.
So that was going on yesterday, so it was hard to avoid the news.
It made it all over the place.
Interpretations is a different story.
You know, what does all this mean?
But people were a little bit surprised that he went with a half a point instead of a quarter of a point.
But it means, you know, economically and politically speaking, it doesn't mean a whole lot, you know, because they have no idea what they're doing.
They don't know what the results will be.
They put fancy words on.
They're recalibrating and readjusting.
But tomorrow they might have to recalibrate again, you know, because, as a matter of fact, I think that, you know, a lot of the interest rates did go down with this announcement.
But just glancing at some of the short rates, I think they're back up where they were.
This is not going to do anything, really.
But one thing for certain, people who are trying to, you know, preserve their wealth and be comfortable when the big crutch comes, you know, it tells you that it can get pretty difficult to figure out exactly what to do.
But most people, most people watching this program realize that one of the ways that you try to preserve wealth and protect against what's happening is you try to have an investment or own precious metals.
So we recommend that.
But we specifically work with Birch Gold.
And Birch Gold partners with us and they are advisors to people who want to do something.
But their specialty is taking IRA accounts and other investments and switching them over, switching their rigor stocks over to these companies where you can hold the gold.
They've made it difficult.
Many years ago, when I had a pension fund in my medical practice, it was very difficult to put gold in those pension funds.
So these gold IRAs are what people are doing.
Now, Birch are specialists in this.
And if you haven't done it or need some information or you're curious about it, you can reach Birch Gold by texting Ron at 98-9898 and they'll send you some material.
They're not even going to charge you for it.
And hopefully it will be helpful to you because there's no protection against the audacity of our government because they can do all sorts of things.
But we have to do the best we can.
The one other piece of philosophy that I've always followed is you don't want to be in a special category and say, look, I protected myself.
I had some gold and silver.
No, you want as many people involved as possible because in the rebuilding, I think they will have to have either a pretense or actually really use gold in reforming and reauthorizing a sound currency.
So that to me is important to get as many people involved as possible.
So if you need a little bit of information and would like to talk to somebody at Birch Gold, text Ron 989898 and they'll send you some material.
And Chris, by golly, I guess what we're going to talk about today.
With your help and information you've already provided, that you've paid attention to what was happening yesterday.
And it was a big deal because everybody was predicting exactly what Powell was to do.
And I've always been annoyed about this because they don't know what they're doing.
It has a big effect maybe for an hour or two, or it might have an effect that is not expected.
But they play this up as if something really, really big is happening.
But there's no reason to be shocked at, oh, oh, they lowered the interest rates more than most people thought.
And that means, and I've been saying this all along, I said, I think they'll have to do something like that because I think the economy is in worse shape than the Federal Reserve and their government is willing to say.
I think what they do is you can't believe government statistics.
And I put the Federal Reserve in there.
So if they say all is well, I mean, who's going to believe that?
But you know, the people who trade in the future market, you don't have to believe what they tell you, and you don't have to believe that's going to happen.
But traders have to believe that it's going to have an effect.
So they have to anticipate what they're doing and what it means if everybody had hands off or what will it be like when everybody has to interpret this.
So it's a messy time.
That's why I voluntarily stay away from trading futures because it's tough.
Some of the professionals do quite well, but I think it's risky.
I think it's much better to put some gold in a savings account, and that's what we recommended.
But historically, it's been gold that has been the gold and the precious metals have been what they have resorted to to correct the problems.
Now, they say that, you know, why would you expect them to do that, fight the market and raise interest rates higher and say things were worse off?
Well, to tell you what the politicians, especially the feds, are terrified about is deflation.
Deflation is just so horrible.
They'll do anything, and anything means that they are going to print money.
And that is why it's always safe long term.
There were a decade, actually, I was watching this, and you know, gold just sat still.
But the policies were there.
The policies that changed in 1971, when we abandoned the gold standard, they were set in stone, and they're still there, but now they're building more and more.
And what do they do?
Any hint of a problem or any problem they're hiding from them, they're going to start the inflation.
So I think what they did yesterday, you should check the mark off.
Is this inflationary?
Obviously is.
And they say, well, we have to stop the stock market from dropping.
The stock market's going to come up.
But they never say, what are you going to do about the debt?
Actually, when you raise interest rates, we're already spending a trillion dollars a year on interest rates, on government borrowing.
So what we do is we tell them that that is precarious, so we have to be very careful.
We have to lower these rates.
And of course, you're going to buy up all this debt with us a bunch of hocus-pocus.
That's not going to happen.
So once again, I think we're at a crucial point.
I've often thought over the years that, you know, there's going to be a big one, big one where anybody who's ever existed and thought about their dollar and inflation and all the things government does in debt, that it will be noticeable and it will be a big event.
And I was told many years ago, I was just studying this, people who had studied it a lot more, they said, when it comes, because you might say, oh, I have 10 gold coins, the gold coin's going to go up a lot in price.
And they said, they warned people, and they said, just don't be too overwhelmed by that, because that may be a point where we're all less happy about it.
And of course, just think of how they responded to the Depression.
First thing they did, they stole all the gold from the people.
So we have a problem ahead.
And that is why I always, you know, when I talk about gold and investment, that you better invest in liberty.
And that's what we hope to do on this program.
Chris.
Yes, very good, Dr. Paul.
Yeah, our current situation is dire.
And yeah, the Fed has decided that, you know, maybe we need some more inflation.
I mean, my Walmart has stuff like laundry detergent behind glass.
Theft is so bad.
The restaurant, and this happens a lot to me.
The restaurants I go to, they prefer cash.
They don't even want to pay the credit card fees anymore.
So inflation is out of control.
And the Fed's like, well, let's lower interest rates and create more inflation.
That's a great idea.
It's nowhere near 2% target, which is absurd.
They should have zero target.
I don't want you to steal anything from my paycheck.
And 2%, my electric bill was up three times, triple what I normally pay.
My food is up.
So this is, it's such a bad situation.
And the Fed is lowering rates.
So here comes more money printing, more government spending.
The government, speaking of the government, is now paying a trillion dollars a year in interest alone.
And we all know what happens, you know, people that have gotten into credit card trouble.
When you can't pay the interest, that's it.
Lights out.
You're done.
Well, the same thing works for governments.
And our government has such a massive welfare state.
So many Americans, probably half of Americans, have this expectation that the government's going to take care of them and they're going to give them this and that and free this and Social Security.
And the government is now, you know, a trillion in interest they're paying.
And you have all these wars around the world at the same exact time of all this that they just want to be a part of.
And wars are what bring down nations.
That's usually the coup de grace.
You know, World War II, that was it for the British.
This massive British Empire.
World War II was the coup de grace.
Unfortunately, America became the British Empire 2.0.
And now we're going down the same bankruptcy road.
So it's a shame that this is the situation, but more inflation is what the Fed thinks.
You know, in politics, and we've heard a lot of the political charanging that's going on with the Trump presidential race.
And his enemies have been driven by hate, and they've tried a lot of things.
You know, I think it's historic to think this president or ex-president has been impeached twice just to try to punish him.
And the more they try to punish them, even trying to shoot at them, everything backfires on them, which is really amazing.
And sometimes you can look at economic policies and the policies sometimes, oh, yes, we're going to raise this interest rate to solve our economic problems.
And they make it worse.
But they never wake up because to do so is painful.
You can't all of a sudden stop without somebody suffering.
So I work on the assumption that the debt and the malinvestment of decades, especially since 1971, has built a foundation in the economy that, yes, it still has a lot of token value to it, but it's also counterbalanced by the debt.
And the debt is out there.
And all this, like yesterday, with all this talk about, you know, what the Fed was doing, they really don't talk about the debt.
How much do the presidential candidates talk about debt?
Because they had one vote on interference and spending more money on foreign policy.
And there was about 35 Republicans that voted against it.
So in spite of all this stuff and trouble, you know, the momentum is nobody is going to say this is what has to happen.
People say, well, well, that's understandable.
In a way, it is understandable, but it doesn't solve the problem.
The one thing that I believe, the one thing I believe is that if you do it and you make the move, it's honest and above board, and you don't lie to people about statistics.
All this motivation is you have to lie about the statistics to get people to accept all these policies and all these spending.
So it just doesn't work.
And that is why people go along with this, but they hear the lies that are being told and the results are so poor.
And what they need to do is realize that deficit spending and the printing of money is wicked.
It is serious.
And it's a tax.
And it's a tax on the middle class and the poor more than the wealthy.
Because what they do is they steal value from the dollar.
So they don't even have to knock on the door.
They don't have to have a gun.
The IRS does not have to come and collect their bills because all they have to do is inflate the currency, which is what Powell was doing yesterday.
So if they can reduce the real value of the debt, you know, real debt actually goes down.
But never enough.
That's not a restoration of a market economy.
Day of Reckoning Approaches00:07:43
And this is what they're facing up to.
But eventually the people have to wake up.
The big question is, are we going to help the people wake up before we have Zimbabwe and Venezuela or the American inflation that we had a couple times?
Right now, it's a toss-up, but it has to be done.
And it's not going to be easy.
And we don't know when that day of reckoning is coming.
But in the last couple of days, I got, boy, this is getting bad.
For decades, I thought by gold, $35 an ounce.
Well, before that, $20 and $35 an ounce.
And then initially, it would double and triple as a whole.
$35, $70, $140.
Where's it going?
But here we are at $2,600.
I mean, I think it's time to get people's attention and say, it can't last.
And don't think you're going to get a barde.
Don't think they're going to lower the interest rates enough that all of a sudden you're going to have the down payment for a house.
And that to me is tragic.
And that is what we're facing today.
We have to be realistic, and the people have to look to sound economic policy.
I cannot believe that you can understand economics without being introduced to Austrian free market economics.
Excellent, Dr. Paul.
Yes, you know, Dr. Paul, I saw a lot of people on Twitter and stuff were mentioning, oh, this is to help Harris, Biden-Harris, they pressured to lower interest rates.
And there may be a short-term PR aspect to that.
But by the time the election comes around, nobody's going to remember this Fed meeting.
The election's only a month and a half away.
So anything the Fed does now, the artificial effects of the inflation is not going to be felt in the next month and a half.
So nobody's going to notice in the prices or any short-term stimulus in that short a time because it takes time for the money and for loans, if it happens, to go through the economy.
And the Fed is much bigger than Biden and Harris.
They're bigger than any administration.
Unfortunately, they're a globalist institution.
They were created by our government, but they think globally.
They don't think about us here.
A, they think about themselves first and self-preservation.
But when you have this globalist institution, you lose your sovereignty as a nation.
And we have because we have this unchecked power above us.
You know, when Trump was president, people say, oh, he's the most powerful person in the world.
How many times did he say, you know, we're going to do this, going to this, and somebody would come out the next day and say, oh, the president misspoke.
That's not going to happen.
And didn't.
And that was it.
But when the Fed fixes interest rates, there's nobody to say, hey, you can't do that.
They'll say, well, says who?
You know, we are independent.
We're independent of you.
You have nothing over us.
You can't tell us what we can do with interest rates.
And that's the way it is.
And nobody can do anything.
That's the real power in our country.
But, you know, the government can repeal that Federal Reserve Act, and that would be that.
But they're not going to do that, of course.
So the Fed doesn't think in terms of they're going to make these decisions to help Harris.
They're much bigger than Harris or anybody else.
And that's the real danger to us and our freedom here in America.
You know, Nassim Taleb wrote a book about the black swan.
He hit a lot of attention there.
And I was always pleased that Nassim Taleb was a supporter during our campaign.
But he had an article here recently where he made a point that, you know, most people know the bricks are out there and they are trading.
You see here and there they're using it.
But still, the dollar is the reserve currency of the world.
But he thinks it's his article was stating that it's much worse than appears on the surface because he believes what has happened, when he looks at the figures, is that the people in the fore and the many governments and the federal, you know, many central banks, they're buying gold.
You know, the Chinese and the Russians, they're building up on gold.
We in the United States are not doing that.
So what they do, he says when they get that gold, they don't exchange it.
You don't measure that.
It's not in the marketplace.
But that is also an indication of the giving up of the dollar.
Yes, they use the dollars.
They get rid of the bad dollars and they use those in transactions, but they save the gold.
So, the gold is there in reserve.
So, he said the higher the savings is in gold, and the more they get people get rid of the dollars.
And it's a sign that the dollar is much weaker.
So, I thought it was an interesting point to make because, in other words, he's saying a lot of people are on a gold standard.
And I've always thought that if I did it the right way, I could be on my personal gold standard once they legalize gold.
Before gold was legal, you couldn't do that.
But once I knew you could, you know, maybe match your investments.
If you have a mortgage for $100,000, maybe you should have gold to back that up and always have gold.
So, you can do this in a personal way, but they're doing what his point was, they're doing it in a big way when the central banks are buying gold and they're saving it for the day that there's a remonetization.
And I think that's a healthy move.
Excellent, Dr. Paul.
I'll finish up with my closing statement.
Donald Trump calls Kamala Harris a Marxist.
Maybe he's right.
I don't know.
But he does, he is right to warn against price fixing that she wants.
But, you know, when you look at the big picture of what we live in, we already have a Marxist-style monopoly central bank that fixes prices, the Federal Reserve.
And if you go into Karl Marx's Communist Manifesto, he had 10 planks.
One of them was to have a central bank that controls the credit, a monopoly.
We've got it.
So we're already living a Marxist life in the financial aspect.
They fix prices.
It's a handful of people that sit around the table, like a Soviet Politburo, and announce arbitrary prices.
I mean, what if I sat here and said, okay, these nice sneakers, $100, period, that's how it is.
Everybody would look at me like I'm nuts.
But this is the financial system that we have.
They sit around and they decree.
These are the interest rates.
And Americans sit around their phones or their TVs.
What's the Fed?
What did the Fed say?
What are they going to do?
Are they going to raise 50 basis points or lower?
I mean, this is a broken people that are used to Soviet-style price fixing.
And unfortunately, it's not just in our financial aspect that this Marxism.
We have political prisoners here, kangaroo courts and trials, law fair against Trump.
The law fair against him, the wokeism, censorship.
I mean, we're ticking a lot of Marxist boxes in this country.
The one thing that we don't have yet, and I have to emphasize the word yet, is breadlines.
Before Breadlines00:02:13
But do we really have to go that far?
Can we not generate a little bit of will to turn this around before we actually meet the breadlines?
Nobody knows the future.
I hope so.
But I'm sure as anything that the people that want total power, they're like, you will not resist the breadlines.
You're eventually going to reach them.
I hope they're wrong.
But this is how far we have fallen into Marxism.
You know, I mentioned earlier that we should be paying more attention to spending and debt.
And the politicians don't want to because that's a little bit embarrassing and it's too painful.
So that'll continue that way.
But we always hope when we change the administrators of our government, a different party, maybe it will be better.
And in some ways, it might be if we have a change of party with this election.
But to be overly optimistic or even very optimistic that spending is going to be cut, I think that's a fairy tale.
It's not going to happen.
There's ways to do this.
They say, how would you do it, Ron?
What would you do?
How could you get them?
But what if you just cut, what if we just gave up on all our foreign military adventurism and just half of our empire?
We could save tens, if not hundreds of billions of dollars and, you know, take care of the people at home that have become so dependent.
You don't go after child health care, but you could go.
But that is a sacred area is the foreign, because if you're not for these foreign entanglements, that means you're unpatriotic.
And these are bad people, and they're going to come here and do these things to us.
So they don't want to deal with the debt because that means that we'd have to live within our means.
So this is going to continue, and that is rather sad.
I think we had a good initiation of how both parties would respond for something like COVID.
I mean, there was no help from either party, at least for the initial stages of that.
Preparing for Authoritarian Threats00:02:38
And that's still something to be concerned about.
Yes, we sort of got by with COVID, and a lot of people, you know, had to be a bit embarrassed because of their position.
But that's not, it's still there.
The policy is intervention, intervention, because the politician believes you have to look like you're doing something.
And if not, you're not going to get voted for.
What if you were concerned and you could convince the people that you're concerned about the most important thing ever?
And that's their personal liberty.
The right to keep what they earn.
The right to have all associations voluntary.
The right to stop your dollars from flowing overseas.
I think that should be attractive rather than saying, oh, what's the government going to do?
Because right now, especially in elections, Republicans and Democrats notoriously have passed out more special funds that are always sitting there that they pop up and they go into a town and say, oh, okay, we can give you this amount of money and on and on.
But that'll end because the dollar is going to end.
And Taleb, you know, made a good point that it's already there.
The international support for another standard is much further along than most people realize.
And that means that there are a lot of people in this world, this country, that do understand what gold is, and they might not want people to know.
And they're starting to use other things than the dollar.
But ultimately, I think the significant thing is if, and I assume this is true of what Nassim has told us, is that many foreign governments are sort of not hiding it, but not talking about it, but are buying gold, but they're not trying to trade it and off and on and demand the gold standard be there tomorrow in a complete manner.
But that's what they're preparing for.
And I think a lot more people are preparing for that.
And that is one thing that we should do.
The more people that are protected, the better off all of us would be.
It's sort of like the gun issue.
If the gun issue and the Second Amendment is correct, the more people who know and understand it and have a gun are going to be more able to protect against the people who want to come and with an authoritarian government and take our gold and our guns.