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Nov. 1, 2024 - Ron Paul Liberty Report
24:09
JD Vance & The Fed

This week, JD Vance addressed the unjust and arbitrary nature of the Federal Reserve. Also this week, Elon Musk, in front of a Madison Square Garden crowd, mentioned cutting $2 Trillion from the federal government’s budget. The two topics are very much intertwined. After all, it is the Fed that enables the government to grow into the Leviathan that it is today. Members of Trump’s team are very much on the right track.

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Time Text
Birch Gold: Preserving Wealth 00:04:21
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.
In a few minutes we're going to start on our main part of our program because we have an interesting tidbit and a little conversation about somebody running for vice president, that's on JD Vance, who has given us a little hint as to what he might believe in the issue of the Federal Reserve.
But we know a lot about the Federal Reserve, at least we pretend to, and the Federal Reserve has been around a long time.
We know they print a lot of money.
We know they're the source of the inflation.
It's not price gouging.
It's not wages that gives us these prices going up.
It's the fact that there's too much debt, too many special interests, too much socialism, welfarism, warism, all these things.
And it's a convenient thing that the politicians who vote for the spending or spending behind the scenes and they don't tell us.
And that is because they can pay for it through the Federal Reserve.
They just print the money.
And it's hard for people to understand this because when an individual goes to the grocery store and the prices are up, you know, they say, no, I don't have enough money to pay the bill.
I need more money.
Of course, that's a fallacy because it's too much money floating around.
Too much inflation of the money, too much depreciation of the money.
And people are worried about it now.
I think when the death settles, that'll probably be the biggest issue in this current campaign because people are unhappy and the propaganda by our government is never accurate.
I think things are worse than the statisticians in the government tries to tell us, oh, they're not too bad.
We're taking care of it.
So this is the reason why we work closely with Birch Gold because they've been working on this for quite a while and trying to get people to protect against this because it's protecting against the depreciation of the dollar.
And there were times when the options weren't very good.
A good bit of my early life, we weren't even a lot of owned gold, and you couldn't take your gold later on when it was legal.
You couldn't put it into your pension fund.
But that's a little bit different now.
And it's available to individuals who want some protection.
If they want to do something with their 401k and IRA money, there's a technique for doing that.
And that's one of the specialties of Birch Gold.
They help people to do that.
And this is one way you can get around some of the bureaucracy that people try to prevent us from being protection.
We have to remember what was the first thing that Roosevelt did was he confiscated the gold.
I don't think that's about to happen.
But what they're confiscating is the value of the dollar.
And that's what we have to deal with.
And this is the reason we work with Birch Gold.
And if you want some information, it's free, you can text Ron at 989898.
That's Ron, 989898.
And Birch Gold will send you some investment material, stuff that you can read and read it.
And they won't send a bill for this.
You don't have to pay for it.
So once again, if you're interested in following up and getting involved in preserving some of your wealth away from the government inflation, go ahead and text Ron, 989898.
Very good.
And Chris, we do want to follow up now and talk a little bit about inflation and where it comes from.
And the interesting thing that happened this past week, because all of us out of the clear blue, JD Vance entered this and actually mentioned my name, which is a little risky.
And he says, well, he recognizes.
He's a nice guy.
He says, we don't endorse every talking for himself.
I don't accept everything Ron Paul said, but matter of fact, that gives it more credibility.
It wasn't a blatant endorsement.
JD Vance's Money Issue 00:10:54
But he said, I really believe he's on the right track on this money issue in the Federal Reserve.
And that's a lot.
You say, well, JD Vance, he's not even in office right now.
Yes, well, he is a senator.
But J.D. is probably going to be vice president.
And he's probably high on the ladder of becoming president.
And I kept thinking, well, it was very important one time, long time ago, 1832, who was president then when they stopped the second national bank.
It was Andrew Jackson.
So maybe these are the early stages of getting an individual to be in a position that can really help.
So we were very pleased with what J.D. had to say.
And I found the most interesting part, and I may expand on that in a little bit, but he started off by saying it's an unfair system.
It distributed credit in an unfair manner.
And sometimes the wealthy and the special interests get special deals and lower interest rates.
And that is one of the reasons why he had a complaint actually about BlackRock, which is a very controversial business, as getting very low interest rate and helping to build their powerhouse.
And they are a very wealthy company.
So, Chris, I know you've given this some thought and you sort of discovered some of those statements and followed what J.D. was saying.
So what do you think is going on here?
Yeah, it was a very good week, I would say, between Elon Musk saying that he would cut $2 trillion of the budget and JD Vance talking about the arbitrary and he didn't use the word, but it's an immoral system that we have, monetary system.
That's because the Fed counterfeits money.
You know, you're not supposed to counterfeit because immediately when you counterfeit, you create winners and losers.
And the winners are those who get the money first.
And he talked about BlackRock.
And that's the whole point of counterfeiting is to get that benefit, to get that money immediately once it's created, because then you can go into the economy and bid up prices.
It would be no different than if you had like a neighborhood auction and everybody knows each other and everybody shows up.
But before you show up, you counterfeit tens of thousands of dollars and take it to the auction.
Well, what's going to happen?
You're going to go in and you're going to bid up all the prices way beyond what anybody else could do.
So this is what happens when corporations get this newly printed money and they go into the economy and they start bidding up all the prices.
They are the winners in this situation.
It's very immoral.
Now, who are the losers?
Well, it's us.
We look around and we see our grocery bill double.
My electric bill tripled.
All our prices are up and we didn't get any of this new counterfeit money.
We just get to watch all the prices go up as these people who get this counterfeit money go into the economy and bid up everything and now everybody's upset because of inflation.
while the inflation begins when the Fed counterfeits.
As to a society, but...
But I liked the point that his first issue that he brought up was the special privilege of BlackRock getting very low interest rates compared to other people.
And that to me is the way we should start.
What is it doing?
Most of the time, people start with, you know, the grocery bills are too high or my electric bill is too high.
And they go on and on, and they're starting on the wrong end.
Those are the consequences of it.
But what JD points out here is that somebody's getting a deal.
They get the interest rates very low.
When others are paying a lot more, they have an unfair advantage of this.
And this is the reason this issue is the reason why there's eventually class warfare.
And there is class warfare going on right now because the rich are getting richer and people are pointing this out.
And the gougers have to be taxed.
And you hear this over and over again.
So I think this is a very, very important point that JD makes because I think he picked the right thing.
And the most dangerous thing, and that is inflation leads to class warfare.
It leads to the excesses in the spending in the military-industrial complex and all around there.
And so it's very, very powerful.
And it also indicates that why don't we start with, instead of finding out who the price gougers are, why don't we just find out why it's being manipulated?
And why should somebody else be in charge of why don't we have an audit of Fed knowing what's going on?
So I think the fact that JD has brought this to attention and to a lot of people, and I understand, Chris, that a lot of people looked at these emails or these tweets and all on the internet.
And that to me, I think, is really encouraging.
You know, there was a time when, oh, we got 300 hits today.
That was exciting.
So I think this is very, very important.
It's a reflection of more and more people coming around to thinking about these issues and somebody like JD advancing this and for the right reason and making a strong point about the class conflicts that come as a consequence of inflation.
Yes, it's a conflict creator for sure.
But the people that benefit, they only care about their benefits.
They don't really care about anything else.
And the purpose of the Fed, I mean, it's illegal to counterfeit.
So why does it exist?
Well, the government created it as a workaround.
Government can't print money.
So just like they get some, not all, social media companies, but most of them, besides one, to censor, they create this bank that can counterfeit.
And the government could say, hey, we're not doing it.
It's this private bank.
The purpose for the banks is to keep them sovereign so they can make all the profits that they want making loans and stuff.
But when it goes bad, then they socialize the losses.
The taxpayers bail them out.
We have to bail out all their bad decisions.
So why did the government do this?
What's in it for the government?
We could see what's in it for the banks.
But why did the government do this?
Well, the government wants to spend money without limit.
And the only way they can do that is if they have somebody to give them money.
It's not going to be us.
They know that they can only tax us to a certain point before people revolt.
So that's a bottleneck for them.
They wanted to get rid of the bottleneck and have the Federal Reserve create money for the government to spend.
And that's exactly what it does.
When the government wants money, they create a bond, and the Fed prints up money and buys the bond, and that's it.
And they have all this money.
And that's how we got into this mess that is beyond belief, where we have a government that spends $6 trillion a year, and that's not enough.
They're $35 trillion in debt that they can't possibly pay.
I mean, that's how when you give people, when you have this moral hazard and you have no responsibility for yourself, that's what the federal government has become.
They're just like a chicken with its head cut off going nuts, and all the money is always there for them.
So we have a big problem in this country, and it all stems from that counterfeiting Federal Reserve.
That's very well said.
You know, there's one quote that I use very often in the campaign, and it was well received because people could easily understand that, and that is by Victor Hugo.
He said, nothing else in the world, not all the armies is so powerful, has an idea whose time has come.
And I keep thinking, maybe this is an idea that's popping up in the opening.
Because even back, even when the Fed was being started, there were always people complaining and saying this is going to be bad.
And it did.
It financed the horrible things that happened.
But since World War II, it looks like the consequence of this manipulation benefited the United States because we ended up with the military might that never existed before.
And also, it was also the fact that we had the reserve currency of the world.
So we could get away with, can't use the word murder, but we could get away with murdering the economy by having so much power in our empire that gets to print all the money and have this very powerful military force.
And I think this is so important because I see this as an ideological problem that's going on.
And, you know, we have this famous quote by Reagan and others that we have to have peace through strength.
That makes a lot of sense.
What country doesn't want to have strength and be able to defend against invading enemies?
So that's logical and it's constitutional.
But sometimes what they seem to think that if you just have more and more weapons and occupy more and more territory, that that's how you're going to have peace.
And I think that philosophy, carrying it that far, should be challenged because I think ideas, ideas are strong.
And in this case, it's the idea of money that is going to work.
This is just us being have a more powerful matter.
Of fact, our empire is introducing the resentment toward us because we throw our weight around by putting on sanctions.
We threaten our weaponry.
We get involved in all these wars.
And they say that's peace through strength.
I don't quite see it that way because I think you have to be strong.
I think you have to have a strong defense.
But I also think you have to have some very strong people who are ideological.
And in this case, this is why I've been so pleased to see or hear our marriage from our message from JD because I think he's on to it.
I think he understands it.
And I think he will be a big help when the opportunity presents itself.
Rules For Sound Money 00:05:54
I mean, I'm amazed that an issue like this is generally controversial, but he brought it up at the right time because it sent a signal to a lot of people who understand the importance of sound money.
Chris?
Very good, Dr. Paul.
Yes, I agree with you.
I will finish up with my closing thoughts.
Yeah, I think Trump, with Elon and JD speaking like this, I think this is a very positive thing.
People need to know because we live in a bad system.
And the people that run the system aren't going to tell you that.
They're going to make sure that you don't know it.
The key with the Federal Reserve is, you know, we don't want to reform it.
We don't want better people there.
That's a total fantasy that you could put a good counterfeiter into the Fed and everything will be fine.
Nobody, not anybody in our society should be able to counterfeit.
It's one of the few constitutional rules for the federal government.
No counterfeiting that has been broken.
The second thing is you can't reform it and you can't create rules.
That'll be the next idea.
Well, let's give the Fed these rules.
If they do this, this rule will kick in.
They're going to have to stop.
Nonsense.
People break rules.
In fact, the government are the experts at breaking rules.
They break the Constitution every second, even as we're sitting here.
They're violating the rules they swore to uphold.
So they will use crisis.
Anytime there's a crisis, oh, the Fed has to break the rule.
We can't follow that now.
Look at all the suffering there's going to be.
And they'll even create the crisis themselves just to break the rules.
So you can't reform this thing.
You can't create rules for it in order to make it behave.
The only solution is to end the Fed.
No more counterfeiting.
Sound money.
We will get there at some point.
Whether or not it's in our lifetime, I don't know.
But we will get there.
The only question is how bad does it have to get before we get there?
Before people realize this thing has to go.
It has done enough damage.
That's the big question.
And you never know because the way people are, they will string things along much longer than it should be.
Look at COVID.
It went from 15 days to years.
And all the wars, you know, they were over at the beginning and we're still years into them and they're still going just because they can.
So that's how the Fed will be.
It'll run on fumes as long as they can.
So we'll do our best to talk about why this should not exist.
And the best advice we should have is get there faster.
Realize faster that we can be much, much better and live much better lives without this immoral institution.
Very good, Chris.
You know, there's along the way, something else that we could do that we've worked on, staff and friends and people who have worked in this area, and that is auditing the Fed.
And somebody said, no, I'll get rid of the Fed, get rid of the Fed.
Well, yes, you are.
But I think a helping step would be a true audit.
Find out what they're doing.
There's a lot of corruption there, and it's powerful.
So that's why an honest audit would helpful.
And during the time I worked on that and had some votes in the House, we had support from a lot of the Democrats and they depend the people because just openness and knowing what's going on is very appealing.
And that's a good sign that a lot of people think that we should have access to what the government's doing, especially in this case.
So if we had a real audit going on and find out who else is benefiting from 1% interest rates and how does that work, the better off we would be.
But you know, the other subject, and you did mention, Musk, about cutting $2 trillion, paying off $2 trillion of debt.
Well, whether you pay it off or cut the spending or whatever, it's a big job.
And I'm sort of pessimistic on thinking that if somebody next week did it tomorrow, we'd probably have a civil war.
I mean, it's bad.
That doesn't mean we shouldn't do it and point it out.
But the one thing I want to point out about that, that the debt is shrinking to a degree that most people don't think about.
And that is the debt is not going to be liquidated by the next generation working hard and paying off the debt.
That's not going to happen.
The debt gets liquidated under these circumstances by the destruction of money.
So you pay 10 cents of the dollar.
We can get rid of it.
You know, you just print enough money.
That's what they're doing.
It's already in real terms.
You know, every time they said there's 5% inflation, there's probably 15% inflation because we never hear the real truth of things.
So the real purchasing power goes down.
So the real debt goes down.
It's just more deception is what happened.
And that's probably what's going to happen.
But the more we get into this issue and the more we understand it and get the people to understand, you know, what's going on and why debt will be liquidated and why we have to talk about sound money.
We have to talk about the Constitution and we have to talk about Andrew Jackson too.
You know, so the time will come up where there's going to be an opportunity for a president to veto or cancel out the continuation of this monstrosity which has created the biggest bubble in the history of the world.
And there's leaks in that bubble and there's great danger ahead and it shouldn't be that way.
It should be to just follow the Constitution.
You can't do anything that's not authorized in the Constitution and it's only gold and silver that is authorized.
So there's a lot of good hints there.
Dangers Ahead 00:02:45
And yet the temptation was that with our military might to tell other people what to do and operate an empire.
At the same time, we have the world currency, the reserve currency, has given us tremendous power, economic power.
But everybody knows something's happening there.
There are threats to our dollar now.
There's even military threats.
And certainly, you know, if you want strength, if you want to have peace through strength, we have a lot of strength.
But if that were the case, why have we had so many people invade our country?
And they're not honorable citizens, a lot of them.
And it causes a lot of grief.
And that puts a burden on the people who are still working in this country because somebody has to pay.
So I think people need to look at this in a dignified manner.
And one of these days, the people are going to work up.
So quite frankly, I'm encouraged what I heard both from Musk and JD this week, and especially JD, pointing out something very important about how the Fed operates and what is going on with the system and how it benefits one group over another.
And if you don't watch out, you have class warfare.
So I think it's an interesting subject.
I have a lot of fun thinking about it, but I get distraught when I think of how much bad information we have and we have to cancel it.
And I used to kid, but I was very serious, though, when I thought about it all.
I said, you know, all of us, in my case, I felt like I went through grade school and I remember some of the things I was taught in grade school, politically speaking.
And they were subtle, but they were there same way in college and all along.
And that was something I said, you know, but when I got out of college and had a few economic courses and all, I would say, you know, our job is, is to unlearn the thing that the state schools have pumped into our brain.
And that is a challenge because you have to challenge the status quo, quote, and the people and our government.
And although it's dangerous, what's going on right now, people don't believe the government.
The majority of people feel you can't trust them.
And you say, well, that's terrible.
Yeah, it is terrible, but it's because they're untrustworthy.
It's not that they've not created it out of thin air.
So I think that what we have to do is work on guiding these ideas, make it ideological, and say that we can have peace through the strength of ideas.
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