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July 21, 2025 - Ron Paul Liberty Report
21:04
President Trump's Policies Are Destined To Increase Inflation 1

President Trump wants the Fed to drastically lower interest rates. This means more Fed counterfeiting and more inflation. With government spending, deficits, and debts continuing their march higher (and tariffs on top) ... Are you excited for higher prices?

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Time Text
Financial World Turmoil 00:06:33
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.
Very good.
Lots of things happening today, especially in the financial world.
You know, and I've announced on this program that I frequently are, I'm frequently anxious to see what the gold is doing, saying that gold, you know, really tells you a lot about what's happening, you know, whether they started a new war.
So money supply is really important, but also what they're anticipating in the financial markets and in a foreign policy and whatnot.
So today, gold up $50 and silver up sharply and the dollar not doing so well.
Something big is going on, but you don't even have to look hard.
I think something big has gone on.
And I think this started in 1971 when we declared bankruptcy and said we can put as much money as we want as long as the people will take it.
And so that's lasted a long time.
So that's one thing, but we could also look more recently is that it got loosened with the last big recession, and that was in 08.
And then we went to massive inflation and taking interest rates for a long, for interest, a long period of time, down to zero.
That had never been done before.
So now everything that's going on is related to that.
And you can pick and choose which you think is the most important.
But the other article that we wanted to bring up was something that was written in Zero Hedge, and that is, you know, by the Raven.
He calls attention to an article or a speech by Steve Hanke, who's been very much involved as a teacher.
I think it's John Hopkins in financial things and the gold standard.
The Fed, the title is what caught my attention.
The Fed pours jet fuel on the inequality gap.
And why that's caught my attention is I've tried to make people aware of that and emphasize it.
It's to me the most dangerous thing that happens.
It's the excuse for people getting very, very angry once the prices go up and people get poorer and poorer.
And yet, some people get richer and richer.
And this can lead to conflicts only within groups of people within a country, but also internationally.
And so often this leads to military conflict.
So these are the things that are going on.
One thing that Hanke emphasized here is that money supply was very important to watch.
It isn't just tinkering with the interest rates and the necessity or the importance of the battle between Powell and Trump.
Well, that is important, but it's not the whole thing.
Interest rates are probably more the result of the monetary manipulation and what the Fed's doing.
And it's a slight difference, but it gives a better explanation of what's going on.
But then we have to throw in another thing, Chris, about people we've talked about and we've talked about.
And I think the best summation of to beware of is that is tariffs are taxes.
It is a tax and it's very important.
And yet we live with chaos.
And yet, if you don't look at the financial markets, the gold market, if you look at the stock market, everything's doing fine, you know.
And if you listen to the propaganda from those in charge, everything is always all right.
So, Chris, I am sure you've been wondering what's going on here and how do you assess a few of these events?
Yeah.
Dr. Paul, President Trump's, from all angles, I mean, increased spending, that hasn't decreased, increased deficits, the debt.
This was a whole big problem with Elon Musk, you know, swamp, cut the government, and that was reversed on us and prices.
And President Trump wants the Fed to drastically lower interest rates, you know, down to 1%, I think he said.
I mean, this is like back to Janet Yellen days.
This pushes prices higher, more Fed counterfeiting.
And prices are bad.
I mean, I could just speak for myself, but it's bad.
We've had no relief at all.
And I'm constantly getting emails.
We're so sorry.
We have to raise prices from one company after another.
And a lot of times you don't even get emails.
You just get the higher bills.
Even the CPI itself, which is a very flawed statistic, but they use it, you know, that has been trending month after month higher and higher, that itself.
So, you know, I know President Trump, we could keep our shoes on at the airports now, and we're getting sugar, real sugar in Coca-Cola, but economically, we are getting hammered.
And we're the ones getting hammered.
Not the government itself.
It's not shrinking.
They're not taking any economic hits themselves.
They're growing.
This is not what America voted for.
I don't care what anybody says.
I don't care what all his cheerleaders say.
We're going backwards, and that's not good.
You know, there was one other thing that went on that probably contributed to the chaos and what was happening in the gold market was the Russians today launched a gold contract to take on the market in London.
And I don't know the details on how that works, but that is very important to trade in the precious metals and it's over the counter.
And I believe this could have contributed to what's going on now.
People Benefiting from Trade Policies 00:12:59
To me, that's just another sign of the competition with the dollar.
And, you know, we talk about that, the various countries have gotten together to talk about it.
But this is another way for people to strike back to our aggressiveness in our dealing with foreign policy, especially trade policy.
That because we are rich, we have the currency, you know, the world trading currency.
And also because people are frightened.
And we get them dependent on us and we threaten that we're going to do this and that.
So I think this is another thing that is indicating probably a weakness in the dollar.
And today the dollar was down, whether that's going to be a significant event.
But I mentioned the other day that it was calculated in the last quarter, the first half of this year, it was down 10%.
I would say that's a big deal.
And that is continuing.
And all this will add to the chaos.
And once again, I think the emphasis that Chris made, and we've talked about before, that is that the rich do benefit.
And that's why they like manipulation of interest rates.
Trump is even, I think, his whole time that he's been in public life.
I think he's, I give him credit for being consistent.
And he's always saying that we need low interest rates.
Yes, because that's what Akazian wants.
But he's, I think Trump is more aggressive than the rest because he's almost doing this in prevention.
He's not waiting for anybody to admit there's a recession, but either he's admitting it or he anticipates it.
And the only treatment an Acacian has to a downturn is lowering the interest rates and trying to get people to back to back to work again and back to investing.
But the whole thing is, is when you really have a problem, you know, the interest rates go up and even the correction requires even higher interest rates.
What Volcker was trying and did, you know, soften the penalty we were suffering in the 70s, they had interest rates up to 21%.
And that wasn't a credit card race.
It was a national credit card rate that we're on.
And it's never been changed.
And I have argued, and I'll continue to argue that this isn't going to be solved with tinkering with tariffs and tinkering with interest rates and settling this dispute with Powell and Trump because they don't have the answers.
They can pretend they're smarter than each other.
But the trouble is people can't anticipate and know what a market will do.
And the market is smarter and will finally win the battles, even though a lot of people will suffer from the battle that goes on.
And I think that's what we're witnessing at the present time.
That's right, Dr. Paul.
And the suffering is the abnormal wealth inequality.
Now, there's always wealth inequality.
There is no equality.
And that's a good thing.
We don't want that.
But we have an abnormal, distorted wealth inequality from the printing of money and lowering of interest rates artificially.
And why is that?
Because those who receive the money first are the beneficiaries.
They don't just print this money and evenly distribute it to everybody because there would be no point.
Nobody gets any advantages.
The first ones to get that newly printed money are the ones that get the advantages.
And that's government and everybody tied to the government, not us, not average citizens.
I mean, and the way to think about it is: imagine if the Fed printed a million dollars and handed it right to you, the average citizen, and you went into Sotheby's.
What could you do?
You could go in there and bid up prices and bid and bid and bid.
Same thing if you went into the stock market.
If somebody gave you a billion dollars, freshly printed, just came out of the computer.
You could go into the market and start bidding up prices.
Well, that's what happens.
The first receivers, they get the money and then they flood it into the economy, and prices rise all around us.
We're not getting raises in our paychecks.
People are on fixed debt, you know, and we have to suffer the consequences of this new money that floods in that no work was created for it.
They print it up.
You know, they don't even print it.
It's digits.
So that's what happens.
And how do the average citizen, how do they cope with this?
They go into debt.
Their credit cards are maxed out.
Record debt.
We're just like the government, the citizens.
Everybody's in debt that nobody can pay.
I mean, this is not a prescription for making America great again.
In fact, it's a prescription for a huge economic disaster.
Chris, that's a very important point you make that there's an inequality in the distribution of that free money, the new money that's passed out, because they can't do that.
If everybody's, you know, if everybody's CPI, the money they spend to run their household, if it went up the same for everybody, people wouldn't care if the wages would go up.
But notoriously, it has been found that the prices always go up faster than the salaries.
You know, oh, yeah, but look, we're getting minimum wage.
It used to be $3.
Now it's up to $25 and $30 and more.
But they can't keep up.
They always lose on this.
But the people, like you say, who get it first and benefit even by high or low interest rates.
And I don't think that all this rigging comes from just two people talking about interest rates.
I think that we're touching on this whole idea of the deep state, whether they can hold this system together.
And I think it's very, very shaky.
And that's why people are lining up with alternatives.
And that's why we see the prices of precious metals going up.
And I think this is a reason that people are very, very nervous.
And politically, they're very, very nervous.
And politically, we're seeing more violence.
I mean, when we see somebody that is a declared communist in New York get elected, you know, I don't think that has the ultimate consequence of settling the argument over the philosophy we're going to follow.
But it still is a sign that people are upset and very worried about this.
And it's been predictable.
And, you know, the whole thing is it was preventable.
It was preventable because the founders understood the issue and they knew what to do.
And that's why they put it in the Constitution that we could not use anything other than silver and gold as legal tender.
And yet we violated that.
And Jefferson said that we shouldn't even borrow money.
They shouldn't be able to print out treasury bills and sell up to the government, the treasury.
The treasury couldn't do that.
But they've done all those things.
And that's why if you want to talk about a financial bubble, I think it's in there.
And I think it's in many of the stocks that are being sold today.
And that there's going to be a big problem.
And I think the cracks are there.
And there's a lot of people are going to suffer from this.
But, you know, when they get the Congress involved, the Congress knows that.
They're getting hit at home.
People are complaining.
And people want something done about it.
So they will always design programs that it will look like we're going to subsidize people.
Oh, this group of people aren't doing as well under these conditions.
And you have to have sympathy for them because for the most part, many of those things were not their fault.
It was the fault of the people who ripped them off, where the wealth was going.
It was going into the hands of the wealthy people and the military-industrial complex, the whole works.
So it is a big problem.
And that is why you just can't have one person say one thing, even if he was saying the right thing.
It's like if the individual happened to believe as we do, and we put him in place in the Federal Reserve System and say, you could do what you want, it wouldn't work.
People aren't going to believe that.
They're not going to accept it because you couldn't correct the mistakes.
The mistakes have to be corrected.
The debt, in a way, has to be liquidated.
The bad investments will have to be liquidated.
And yet today, if you see the news, the business news, they're still pretty euphoric.
But if they talk to the people, they would get a different impression.
Very good, Dr. Paul.
I'll finish with my last topic.
I will be short and sweet today.
Yeah, so there are Trump supporters out there that are celebrating.
Look at how much is being brought in by the tariffs.
They're bringing in, the government is bringing in more revenue than I forget how many years it's been.
Big deal.
I'm not interested in the government taking in more of our money.
Yeah, so they raised taxes and more tax revenue came in.
That does nothing for me.
I wanted my revenue to come in, not celebrate the government.
Look how much they're bringing in in tariff taxes.
But they're doing it.
They're out there.
Trump was right.
We're bringing in these revenues.
The government's taking in more money.
You know, the government is spending more money.
The government is growing.
The government is going further into debt deficits.
If tariff money was coming in and there was no income tax, but we still have an income tax.
We still have all our taxes.
There's no benefit to us.
But they're trying to make this look good, as if this is some kind of win.
No, it's not.
And, you know, Dr. Paul and I were talking before the show that the Republican population is much better when Democrats are in office because they focus in on the Democrat and they say all the right things.
But when a Republican gets in there like Trump, they just discard all of their principles and just cheer on what Biden himself would do.
It's really a weird psychological thing that happens, but this is how it works.
You know, the left is the same way with war.
They'll be against a war with a Republican.
But if a Biden and Obama go to war, they'll zip their lips.
You know, they won't complain.
They won't go out into the streets.
So we have two hands tied behind our back with these two parties.
So it's very tough, but we got to do what we can to speak the truth.
You know, if there was something magic about tariffs and the money just fell on our laps and taxes were reduced for the common person and spending was reduced, but that's not what's happening.
You know, the taxes are going up.
The spending is going up.
And they can't even claim it's a benefit for doing this because no matter how, let's say they quadruple or just make the tariff revenues go skyrocketing high.
It just is another distortion.
It's not going to solve the problem because just as we've seen just recently in trying to cut $9 billion out of a $36 billion national debt, people got pretty hysterical over that.
And they're actually laughed at and ridiculed for talking about cutting $9 billion out of foreign aid and public broadcasting.
Well, public broadcasting is a challenge to the First Amendment.
And of course, the rest is all that militarism and the military industrial.
They're only cutting $9 billion.
Well, they can give away that money.
And then we say, well, aren't we making progress and we've decreased what we're sending to Ukraine?
Well, prove it to me.
Actually, we never send a penny to see Ukraine.
We send it all to the arms manufacturers.
It doesn't go to Ukraine and then they buy, they call up the military industrial complex in the United States and say, hey, we need 35 jets.
No, it goes to the jet makers and they're told what to build.
And then they ship them out to the country.
So it's all a gimmick.
Pessimism In A Mess 00:01:31
And people have a hard time.
So, I end up with saying, well, I have to become more pessimistic because this is a mess.
I'm pessimistic enough because it's a mess, and I realize this could get very much worse.
But the truth is, I'm more optimistic because I think more and more people, even though they are not identified, that are agreeing with what we're talking about because we hear from them now and they're out there, and there's a lot of concern that they're having too much influence.
And that's why the people who love the empire are getting pretty rough with the First Amendment.
I think it's very, very tough.
But I think in the last 30, 40 years, the understanding of economics and Austrian economics and the details of liberty, I think, has been greatly improved.
But I'll tell you what, people better be willing to go through what is the withdrawal symptoms, and that's where the hang-up is.
The drug addict always wants to go through the withdrawal, but they can't do it.
It's so difficult.
And that's what's going to happen.
That's what will be with the economy.
But it can be done because ultimately, if you want to live in a better world where there's more peace and more prosperity, that is exactly what we have to do.
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