This week, Fed Chairman Jerome Powell was asked if he would step down if President Trump asked him to resign. Powell answered “No.” The law does not permit the president to fire the Fed chairman. Powell didn’t mention, however, that The Federal Reserve is unconstitutional to begin with. No power was ever granted to the federal government to create a monopoly bank that manipulates interest rates and counterfeits money. So the big issue is not who has more authority over the other; the president or the Fed chairman. The issue is that the Federal Reserve should not exist at all!
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.
Happy Friday.
Great to be with you, Dr. Paul.
Good.
I don't know how we can make news today.
It looks like all the news came out last week, and everybody knows what's going to happen from here on out.
But I'm obviously being very facetious.
Things are in flux, even though victory has been declared, and a lot of happy people are about that.
And we'll wait and see.
I keep arguing the market forces will determine what will happen.
Not today or tomorrow, but within weeks or months, all the questions will be ironed out.
But there were quite a few things that went on this week, obviously the election, but there was also the Federal Reserve Board meeting.
That came up, and they have this full discussion.
I watched the interview on the chairman after the announcement, and I have never seen a chairman so flustered in my life.
You know, he was like he was responding, you know, the conservative Republican stations have been reflecting and getting comments made by the liberals who were actually crying and all this sort of thing.
They were very upset with it.
Well, Powell was very, very upset.
But he wasn't joining the language as much, but he exuded it even stronger because there were a couple times they asked him questions that were serious and he said, no.
And then they'd ask him again, no, no, you can't do that.
Skits the law.
It was pretty amazing.
He was pretty unhappy because in truth, he didn't have the answers.
But it tells you about the influence that the Fed has on the economy.
And it also has the whole universe of activity, whether it's the Federal Reserve or the Congress or elections.
It has a lot to do with pricing of the metals and what the stock market is doing, what cryptocurrencies are doing.
And it's not easy to predict exactly what will happen.
I operate personally on the assumption that long-term history helps me more than last week's announcements by the Fed and all the pretense that comes from the university professors.
So I look at the fact that the long-term monetary issues have generally been well known.
Even before they were coining gold, they knew about the value of gold.
And that's 6,000 years.
So there's a lot of knowledge, and I don't think we should dismiss it.
The one thing that I watch And I will continue to watch because it's unknown, especially on how much money is going to be spent and what the deficits are going to be.
But deficits are major, the debt is major, and malinvestment is important, and there always has to be liquidation when it gets out of whack.
I think that's what people are concerned about right now is getting all this system resolved back to a more orderly fashion.
And there's a lot of talk, but there's a lot of room to go because as long as that debt is going up, and I don't expect spending to cut in a real sense, even though there's people in the new administration that are talking about it, and we've visited with some of them in a positive manner.
But the problem is overwhelming.
And this is the reason we have a close relationship and partnership with Birch Gold.
Because Birch Gold offers an alternative if you are concerned.
If you say you listen to the propaganda, oh, it's going to be okay.
New administration, after Reagan was elected, it was amazing how things were calmed down for a long time, and everybody quit donating to conservative groups because they said Reagan's in, it's going to all be solved.
Well, all the problems have not been solved, and therefore, I think the monetary issue is bigger than either political party, and that's going to continue.
So, this is the reason we continue the relationship with Birch Gold Group.
And one thing that they have done over the years, because we were in agreement, that there is a bubble out there.
There's a bubble in a lot of things, real estate, you know, and stocks, and the bubbles don't last forever.
So, they have advocated, and we have promoted the idea that you could take your stocks and your 401ks and your IRA accounts and convert it without a tax penalty into a gold IRA, which makes you sensible because I remember quite a few years, half of my life at one time, 40-something years, we weren't even allowed to own gold, so it was hard to invest in gold.
But here it is, it's not simple because you can't just put it into a regular, you can't put bullion into a regular gold IRA, and that's why they have these special directions on how to do it.
And that's the information that Birch Gold offers.
So, if you're interested in that, if you haven't already talked to them, keep track of it.
And if you want some more information, the information is free on how to start it, how to do this transfer.
So, if you're interested in that on the screen, you should see how to do that.
And you want to text Ron at 989898 and get this information.
So, this is very important.
And I will say that number again so that you can know what to do because the problems aren't going to go away.
I know gold goes up sharply and down, the same with the stock markets, but there are certain events that are steadily getting worse: spending, taxes, Federal Reserve printing of money.
So, that's why I advocate looking into this if you haven't already done it.
And that would be Ron, 989898, get in touch with Birch Gold to get some free information on how you can do this.
So, Chris, that's our hit that we make as frequently as we can to try to get as many people, I believe, as many people as possible that are protected by looking into the metals.
And I understand that there may be other ways to do it other than the IRA accounts that people can look at through working with Birch Gold.
Dramatic Audits Debate00:04:50
That's right, Dr. Paul.
Yeah, just an addition that we'll be adding this month.
Until Black Friday, every $5,000 that you invest in gold, silver, anything at Birch Gold, they will give you a free Silver Eagle coin, one ounce.
So that's a nice little incentive.
So yeah, text Ron to 989898, and they will take care of you with free information.
Today's topic, Dr. Paul and I noticed that Fed Chair Powell was asked, if President Trump asks you to resign, will you?
And he flat out says no, I will not.
The law says that the president can't fire me.
And right away, my mind says, law says, well, there's a higher law, the supreme law of the land, that everybody raises their right hand, they swear an oath to.
It's called the U.S. Constitution.
And that law never gave any authority to the federal government to create a monopoly central bank that can manipulate interest rates and counterfeit money.
Counterfeiting is a crime.
So the government created this bank that counterfeits.
That's the law.
The Fed should not exist according to the law.
But Powell, he didn't mention any of this.
And of all monopolies to give, this isn't a monopoly to create milkshakes for people.
This is money.
This is a part of every single transaction in our nation that they gave them a monopoly.
It's astounding.
So he's saying, no, the president, because of the law, can't fire me.
You know, that's not even the issue here.
The issue is the existence of the Federal Reserve.
And, you know, while that may not be addressed today, it will be someday.
And we say the sooner the better.
Is that right, Dr. Paul?
Absolutely.
They're going to continue to mess around with that.
But your point is perfect.
And that is, how can they be so choosy?
You know, I can't do that under the law.
So your point is right.
They're pointing out that the laws, the arbitrary laws that they write that do not follow the rules of the Constitution or natural law, it becomes the law because they've instituted it.
And, you know, the worst part about this is that they cling to that like it's a biblical message.
I mean, it is ingrained in them because they don't for a minute think, oh, we have a little trick here we're going to play on the people because they've talked themselves into believing that the Constitution is dangerous if it's overly rigid.
So here's a perfect example of this where they arbitrarily pick what is legal and what is not.
You know, the constitutional restraint against a central bank, there's no authority for that, is one thing that they totally ignore.
But if they think they can get some benefits from this, they do.
But that was the one question that Powell really became distressed about, about whether there could be whether the president would gain more power authority.
Who has it?
And the proper thing is, is neither one of them should have this authority.
And yet, this is one of the things that I've worked with a couple years, a year or two, the idea is there's a lot of shenanigans going on with the Federal Reserve, and they have been.
They continue to do it.
And it's part of the deep state.
But they continue to do it at the same time.
They all who say we need transparency, they resist giving any endorsement to the audit.
Except when we worked on this for many years, the support for the audit has continued to grow.
And I think that's very good.
But the people who control the ultimate power structure are what I call the deep state.
It's not going to come easily because there are too many secrets in there.
And they say, well, they have audits.
Yeah, they have CPA audits and say, oh, yeah, they have the accounting of all this.
But they don't have any accounting of all the activities overseas, the international activities, what happens in emergencies, and where the money goes and who gets bailed out.
I mean, it's really a big deal.
So someday, well, I don't have any doubt it's going to end.
I mean, we see the weak spots already.
Just like in the third world countries that you read about, you know, Venezuela and other countries, they have runaway inflation and it all ends.
Central Bank Permissiveness00:11:08
It won't be quite as dramatic.
Well, it'll be dramatic, but it won't go the quite same way.
But eventually, powerful central banks that overdo it and print too much and devalue the currency.
So right now, I didn't see any real sincere concern about the long-term value of the dollar.
And that isn't just not on the exchange market, but what does the dollar purchase when somebody goes to the store to buy groceries?
And for some reason, there's very, very little effort to grasp the difference.
Oh, I thought we just needed more bonus, more bona, more government, more government handouts so we could pay for our groceries.
So there's a lot to go yet.
But I think the climactic end to this is coming quickly, and we ought to try to help as many people as possible get prepared for it.
Very good, Dr. Paul.
Yes, I'm going to do something that I rarely, if ever, do, and that's I'll give him a small compliment because relatively speaking, you know, the Fed exists.
Powell is not the worst Fed chair.
And I could, you know, I could say that because the income tax also exists.
But relatively speaking, a 10% income tax would be much better than a 50%.
So that's the qualifier.
But Powell did raise interest rates against a lot of resistance.
You know, people wanted zero interest rates for until today.
They still want them.
And those days are gone.
And that's where a lot of damage was happening.
That's where the BlackRocks were taking advantage at zero rates.
And every time that Powell raised rates, he had a lot of people, oh, he has to pivot.
He has to pivot back.
You know, Elizabeth Warren was constantly, look at what you're doing to everybody.
But he kept raising rates, which was the right thing to do.
And it looks like zero rates are now a thing of the past.
You know, nobody knows the future.
But as of now, so as a Fed chair, because it exists, you know, he did the right thing.
There could have been a worse person there, you know, like an Elizabeth Warren.
She would have kept him at zero.
So all of this, again, we'll get back to the truth here about it, is wrong.
None of this should exist.
The income tax should not exist.
The Fed should not exist and it has to go.
All of this happened in a revolution against our freedom back in 1913.
The income tax, the Federal Reserve.
That all has to be reversed.
But, you know, speaking in relative terms, Powell is not the worst guy to have the job.
Very good.
And I think your tone and explanation is very good because when a so-called political or philosophic enemy acknowledging what they have said and done right, that is important.
But overwhelmingly, though, we suffer the consequence for the other side where they hide everything and do it to the people and punish people and hide it.
But I think clear, you know, keep everything clear and above board and civil is important.
I do want to read one quote from Powell because they were asking him about, you know, how is he going to respond to the new administration?
And that is the big issue.
How's he going to handle Trump?
And how's the market going to handle Trump?
And so to us who don't think it's sacred, that the whole organization is sacred, the monetary system, that a little bit of honest debate might be beneficial.
But in an article from Zero Hedge yesterday, they were talking about this, another irrelevant 25 basis points.
And the point was that they raised the interest rate 25 points just recently.
And nobody knows exactly what it was supposed to do.
I mean, that's supposed to be helpful to the economy.
It keep rates to keep the interest rates low.
But at the same time, the longer rates were going up.
So immediately it wasn't working right.
But when they were pressing Powell on how is he going to respond to Trump, I think he had something interesting.
He says, this is regarding the impact of the new administration of monetary policy.
Powell said, we don't know what the timing and substance of any policy will be.
And he's talking about coming from what the administration, Trump, is going to propose.
We therefore don't know what the effects on the economy would be.
Specifically, whether and to what extent these policies would matter for the achievement of our goal variables, maximum unemployment and price stability.
And the whole thing is, but the Fed knows.
You know, all this stuff.
Nobody in the administration, nobody in academia, nobody in a libertarian position saying you guys shouldn't even exist.
No, you don't want to listen to that, but you don't want to listen to anybody from the administration.
But what you want to do is, matter of fact, what you want to do is recognize, and what he was doing was defending the champion knowledge of the Federal Reserve, and they believe it, and they'll do it, and they do politely sometimes say, well, we did this a little too soon.
And they play these games.
But really, they want to be the kingpin on the ultimate policy.
He can't stand the idea that maybe somebody other than the Fed would participate in policy.
And people will argue with me, and they say, you know, that's true.
If you turn it over to Congress and turn it over to the House and they're going to dictate all these minutiae on the monetary policy, it's going to be terrible.
They'll make it work, which is probably true.
So why have one?
Why don't we just resort to the market?
If lowering the rates the other day didn't work and rates actually went up, why don't we admit that they're just a game they play?
It's a lot of politicians and it's a lot of bureaucracy.
It's propaganda.
And it's powerful stuff.
And sometimes the market and everybody needs tons of money.
I might have to have QE again.
And we're not talking about a few trillion.
Now we're talking about how are we going to bail out $35 trillion.
So I think it's amazing.
This is very clear-cut to show we don't want to listen to any of that nonsense because they don't know how the market works.
They can't know what's going to happen if they do this.
But we at the Fed know.
But I would advise you, don't let your guard down.
Excellent, Dr. Paul.
I'll finish up.
Yeah, ultimately, the Federal Reserve cares about its own survival, itself, and the biggest bank, the biggest banks.
I mean, that's what it's there for.
It's a cartel of the biggest banks that has a government privilege, which it should not have.
So their ultimate priority is themselves.
And this is wrong, because everybody else, including us, is lower on the totem pole of their priorities.
So this power should not exist.
And as long as the Fed does exist, we can't have a genuinely free society, free economic life.
It's impossible.
You can't have a monopoly central bank.
You need sound money for freedom.
So while we can do better than before, we can't have a free market, a free society.
But people need to understand this.
Not many do, more than ever, thanks to Dr. Paul.
But there's still a lot of work to be done, and people can ultimately understand it.
I mean, look what happened with the open border.
People finally understood, you know, this is, we have to stop this.
And they voted for it.
So people can, over time, see the problems and get the right solutions and understand.
So that's the goal.
And ultimately, the Fed will face some type of, you know, public backlash.
When that day comes is anybody's guess.
It could be a long time from now, it could be a short time from now.
But the goal is to educate people so they want sound money, they understand the problem, and then finally the Fed will be gone.
Oh, wonderful.
We ought to stop right there.
So you're positive of that.
You'll guarantee it, won't you?
Well, you know, in a way, we can, if we perceive, if we continue to do what we're doing now, there are some things that you could almost guarantee.
Well, one thing is, if the central bank is permitted to permit money at will and to cover all government debt, you could assume that the value of the currency is going to go down and prices will go up.
And that's not real complicated.
But along with that, this concern about Trump telling the Fed what to do, Naval defending the position of the Fed, he was saying, well, what we'll do is since we can't know in advance what Trump is proposing, whether it's good or bad, he says, we wait and see the data, and then we make the decision.
And then they take these thousands of pages and hundreds of economists and all the propagandists and all the specialists.
And they claim they can put that together and decide whether interest rates should go up or down, how much money we need this month.
But they're going to be more deliberate in their way for the data.
But the one thing that I think they ignore in making these decisions, because we think it's not wise, not good economic policy, it's because they don't know.
They can't know.
They don't know what the interest rates would be.
And it's the most important price in economics.
It's what is the true price of the borrowed money, the interest rate.
And nobody knows about it because there's so much interference, except in the black market.
Maybe the true interest rates is by our credit card interest rates.
I understand that's pretty high.
So maybe that's where the true interest rate is, not whether it's 0.25 or 0.46 or whatever, some fictitious number.
But there's a, and also the Fed will say, well, we figured it out.
We know where we are now.
So we're going to change the interest rates.
We know what the price should be and how much money we need.
And they send all the cash out into there and say, well, they're going to do this.
And we expect them to take this money and pay these bills or invest in this and all these things.
Understanding Money Flow00:01:21
They have a plan.
But the whole thing is, they have no control of that because the way people spend money, if you create trillions of dollars to pay off debt, maybe they want to go to the racetrack or something.
They don't know how because there's a subjective decision made by the people on all their purchases.
And one of the reasons why all this calculation and all these mathematical formulas for taking a look at the statistic, page after page of statistic, and then putting them down and get advice from so many people, and then they'll know what to do.
Well, it's a joke because they don't know what to do.
And that's why we get ourselves into this mess.
We do too much, we get too much involved overseas, we get a welfare state that's a runaway, and then we end up with a $35 trillion deficit and debt that's expanding rapidly.
But the answers are not confusing.
The founders are on the right track.
They knew what honest money was about.
We should follow the path of the money and recognize that creating money does not create wealth.
Productivity creates wealth, and that's a different story.
In freedom, you have the maximum amount of productivity and the maximum amount of prosperity.