President Trump visited the Fed yesterday, seemingly to shake-down Jerome Powell for lower interest rates. Is this how interests should be derived in a so-called "capitalist" society? Two men, disagreeing over price fixing? That's the Soviet way of doing things. Also, is President Trump who continues to run-up government spending and debt, in the right position to accuse the Fed of "cost overruns"? Once again, both are guilty. End the price-fixing. End the government spending us into bankruptcy. End The Fed.
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.
Oh, this is Friday.
Oh, that's right.
End of the week.
But I imagine all the problems of the world will continue on weekends.
They never take a break.
Congress is taking a break.
The politics was getting too hot where they didn't know what to do.
So let's go home.
And maybe things will be better when we come back.
We'll take an early vacation.
But that's a complicated issue because it's just typical of what Washington's always involved in.
But you know, this gold markets have been jumping all over the place.
And lately, it's been skyrocketing, and they're still very, very high.
I think in terms of when I look at gold for the last few years since 1971, I would say gold over $3,000 is pretty astounding.
And yet, it still has a long way to go.
But today, it was taking a rest.
It's down a bit, makes people nervous.
But what is not down is the spending.
The spending is continuing, and what is not down is the deficit and the pretense that there was a sincere effort, you know, to lower spending and lower the deficit.
But it looks like it wasn't serious and that the spending continues.
And we'll talk a little bit about this today because the Fed is involved in various ways.
But anyway, if anybody has a concern about what to do under these conditions, of course, a lot of people, including myself, we have resorted, you know, to looking at what gold can do to help protect our assets.
And when I first discovered this, it wasn't easy to do because back in the 70s and 60s, it was illegal for us to go out and buy gold.
It was astounding.
This caught my attention.
So I've been talking about it ever since.
But at least they re-legalized gold in 1975, and we have gold, and gold does tell us a little bit.
But for 42 years, it was fixed because we were a powerhouse.
We could fix the dollar at $35 an ounce.
And that conveyed great confidence and it gave us the insight into establish our empire.
And that has worked until 1971 when it fell apart.
And right now, they're still trying to rebuild that empire and save the dollar.
But it's also the subject of money and gold.
Even though Bernanke denied to me gold is not money, there's a lot of us that still believe that gold is money and history would be on our side.
Matter of fact, I think I mentioned that to Bernanke that you're challenging history.
So anyway, but we work with and we partner with Burch Gold Company because they've been dealing with this subject for a long time.
How do you protect your assets, you know, in periods of times like this?
And they talk a lot about gold.
Now, if you want to find out more about what they're talking about, how you should possibly look at shifted regular stocks over into gold shares, there was a time when you couldn't just take your bullion gold and put it in an IRA.
But it can be done.
There's a little technology that is involved, but it's permissible.
But that is one of their specialties that they work with.
So if you want more information on how one might be able to shift funds from regular stocks into an IRA holding bullion, you can get this information.
They don't even charge you.
That's nice.
And that is on the screen.
If you text Ron at 989898, they will send you some free information about how this can be done and a way to follow up on it if you're interested.
So, once again, if you're interested in knowing more about putting bullion gold into an IRA, which is approved, and explain the ramifications of it and the tax conditions of it, text Ron 989898.
And we will now start a regular part of our program and start talking about gold and other things, especially the Federal Reserve and the dollar.
So that's in the news, but it's always been in the news, but more so.
I'm fascinated, Chris, about what's been on the regular television because they talk casually about, you know, they might not be serious and they might be just playing into it, but they're playing into the atmosphere of the people who now think the issue of auditing a Fiat is an important issue.
And they're talking about that.
And people know it's important.
And yet, the policies have not been changed, but there's also talk about it.
Powell's Squabble with the President00:13:26
But there are a lot more people interested in it.
And I think Elon Musk helped to draw attention to this because he wants a lot of people taking a lot of things checked.
And he might be in a bit of a squabble with the president.
But I think the issue is out in the open more than ever before.
And people are interested in it.
And I think this is very important because the gold issue has been around, you know, approximately five, six thousand years.
Nobody knows exactly.
It was less used as coinage, but they always knew about gold.
So I think this is something to keep up with.
And right now, I think it's a good opportunity to get some more information.
But we want to talk about, you know, an event that has gone on in the last couple of days.
Trump says, I got to visit this place.
Where is this Federal Reserve?
Maybe I'll buy that building.
I wish he had said that and wish they'd sell it to him or sell them to somebody, put it up with auction.
But no, they have found out that there's rebuilding, they're remodeling the Federal Reserve.
They want it up to spar.
They want to have the fastest printing machines ever.
So Trump was interested in this, and he went over and had this tour with Powell, which I found fascinating.
I don't think that's happened very often.
Maybe it never has.
But the picture of the two of them during the tour caught my attention before I read anything about what the visit was like and what they talked about.
But when I saw Powell walking along with Trump, I thought, this man looks sad and he looks older.
And I actually thought, is that really Powell?
So I don't know.
That might be a good sign that he's on the defense.
But saying that our president is going to come to the rescue, not advocating getting rid of the Fed or changing policies directly, but put him in charge of what the interest rate should be.
So they've been arguing about who knew the most about what the interest rate ought to be.
And we've mentioned before, Chris, you know, we said neither one of them knows the answer.
Why are they doing all this fighting?
The person that wins, that might be the worst thing to do because they're going to be blamed for what's coming because this system won't work.
He never has worked it before.
And we're sort of entering in the end stage of the manipulation of the Federal Reserve that was started in 1913.
But there's lots of questions going on.
And this visit to the Fed, ironically, is very interesting.
And we found out that they're spending a lot of money doing this.
Chris?
Yeah, that's right, Dr. Paul.
We're talking about Trump's visit to the Fed to shake down Jerome Powell for more lower interest rates, more money.
And they're talking about the renovation of the Fed.
The Fed should not be renovated.
It should be turned into a museum.
So every American can walk through and see, never have a central bank that's allowed to counterfeit.
It'll destroy your country.
We're not there yet.
Perhaps someday the Fed will be turned into a museum.
But yesterday, it was really bad political theater.
You know, you had these two men, Trump and Powell, who do not wear hard hats during the day.
And in fact, who take money and make life very much harder for people that do wear hard hats every day.
So they threw on some hard hats and they're sitting talking in front of the camera.
Trump wants lower rates.
This is not how rates should be derived by two people saying what rates should be.
Could you imagine if all prices were like that, if we had to get approval from a person on what a price should be and something as pivotal as interest rates?
So we have a Soviet-style system when it comes to our monetary system.
And then you have Trump trying to embarrass Powell.
That's not how you get him on your side by saying he would fire him because of the cost overruns of the Federal Reserve renovation.
I mean, of all people to talk about cost overruns, the president is running up debt, spending, deficits, and he's talking about $2 to $3 billion in cost overruns.
So both of them, there's no praise for either one.
It's just really bad political theater that goes along with the bad policies of the government.
Talk about cost overruns.
The Congress doesn't have anything to say about the money.
The Fed say, we need a new building.
So they build it, but it doesn't go through budget.
And why should it?
The Fed could create as much credit.
And I think the $2.5 billion that they're admitting, and they're already over what they have admitted that they're spending over what they plan to spend.
But this is so silly what they do because of the amount of money that is spent outside that.
And they're arguing.
It is many of trillions of dollars that they don't even know about.
I mean, yes, we have a national debt and we have those other numbers that go around, but they, many times, aren't really.
But they use those figures because that's what the law says they should be.
And yet, I think when the emergencies hit, when the big emergencies, like we had in 08, a lot of money is spent and printed and bailouts go and nobody knows what the details are.
And I think that what they do is pretend they're doing it and pretend to create crises in order for them to be left alone because we don't want anybody interfering with the Federal Reserve and they want their secrecy.
So that's an argument right now, too, about between Trump and Powell is, no, we don't need Trump and the Congress interfering with their decision makings at the Fed.
So that should be, we don't need that kind of thing.
But when they talk about Non-interference with them.
What they're talking about is secrecy.
And the Fed is designed to be secret, but the damages done never remain secret.
And I think that's the crisis that we're facing today.
And that's why I think that, you know, even with a revolutionary election in many ways, it doesn't add up to much because deep down, the policies don't change, although there are some policy here, there, and there that are probably very good that they're changing them.
But when it comes to the Federal Reserve, the foreign policy, the welfare state, you know, the control of education, there's talk about it.
But that is going to continue.
So the bankruptcy will continue.
And that, of course, Chris, is one of the reasons why I think that the precious metals are always going to be important for people to look at.
Always, Dr. Paul.
Yeah.
And we have to consider the environment that this is happening in, where Trump wants lower rates and more inflation.
I mean, inflation, I don't care what anybody says, is bad.
In fact, people know it.
I remember years, it was a years ago or a year ago, I lost track of time, but the Biden administration announced that inflation was 0%.
I remember Dr. Paul and I doing a show about it.
They came out, it's 0%.
And today, Trump says inflation is dead.
They all repeat it on television.
So no matter who's in office, there's no inflation, according to them, whether it's Biden, whether it's Trump, everything is always great, but everything is not great.
You know, just because they won't tell the truth, you know, I see polls all the time.
The approval rating for President Trump on inflation is as bad as it was for Biden because people know we see our bills.
You can't lie, you know, we have to pay them.
So for President Trump to say inflation is dead, who's he kidding?
You know, and he wants more of it.
He wants lower rates, which means the Fed and the banking system is going to have to create more money to maintain artificially low rates.
And this is on top of the tariffs that he's added that we're paying more for.
And this morning, right before we started the show, I saw Trump is considering rebate checks for the tariff revenues.
I mean, why tax us in the first place if you're just going to give us a rebate?
It's so backwards, everything that they do, but they do it, you know.
So it's a bad situation, and we do not need 1% rates because it will really make inflation even worse.
And that's the argument you hear the most about, and it's in the media, is this argument between Powell and the president on what interest rates should be.
Of course, Trump says that they should go down 3%.
They're only round 4%.
And you alluded to the, oh, hey, that period of time when it was at zero for a long time, because we're still suffering from all that inflation back then and all the distortion.
That's when a lot of debt was accumulated.
And certainly around COVID, it was tremendously in the debt was increased too, which means that the Fed has to monetize all that.
And that's the consequence.
Some of the things they're talking about have already been done.
The inflation has occurred.
The inflation is the destruction, you know, the distortion of interest rates and the spending and the printing of money.
That's been done.
You can't cancel it by it.
They could tinker around it and try to get by with it, but that doesn't solve the problem.
And, you know, Trump was on a, I think he was trying to be on his best behavior.
So on this trip, he says, oh, I'm no longer, I'm no longer looking at firing pile.
So, oh, great.
Now we're good best friends.
And yet they go on, and the whole argument is, I think that what they're doing is who's going to be blamed for the depression that's coming?
Who will be the most blamed for it?
And I think in some ways that motivates Trump.
And if you were to talk about two interveners, I say Trump is intervening to help protect himself, which they all do, because he's saying that we have to lower interest rates.
Of course, lowering interest rates is the first thing they do if they admit that there is a recession already started.
And if it's getting worse, it's moving toward a depression.
They say, well, we have to stimulate the economy.
So we have to print money faster.
So they do this.
And they think that Trump can avoid it because if the depression is really clearly visible before his term is up, he'll be blamed for it.
But if Trump, if Powell doesn't raise the interest rates or lower the interest rate, Trump's going to say, it was your fault, your fault, your fault.
So in a way, it's a complex issue and it's a power struggle too.
But the one thing for sure, Chris, and we've said it so many times, neither one of them had the vaguest idea, nor can they produce the interest rates that's going to solve this problem because it's a little more complicated than that.
And Volcker, Volcker gets some credit for pulling a nosedive out of a nosedive in the 70s.
And it took interest rates to try to quiet things down up to 21%.
And yet there's still people who believe that when you have trouble, you lower interest rates.
So lowering the interest rates won't solve the problems of too low of interest rates over this period of time.
So I think this is why the people are getting a little annoyed and a little cynical and not overly confident.
And I think as the days go on, they're going to realize that monetary policy really is the same with Republicans and Democrats.
So it doesn't matter a whole lot.
And right now, I think people are starting to conclude maybe the spending isn't different for the two parties because they both believe in the military-industrial complex, and that's the biggest one.
You know, there's a couple dozen people will vote against the military-industrial complex.
So that is why this is designated to last for a while.
Prices Go Up in Depression?00:06:33
And why my argument is prepare for the future because somebody is going to have to pick up the pieces.
And there are a lot of people out there angling to want to pick up those people pieces.
And it's obvious a Marxist position.
The more chaos, the better.
The more opportunities we have.
So we should wake up and work very hard on how we should replace this system.
And the question fairly asked is, you guys want to get rid of the Fed.
What are you going to do?
Could we live without the Fed?
Well, we did up until 1913.
And there were some pretty good economic years before and less world wars.
So anyway, we're going to be watching all this closely, but I don't think the visit is going to solve the problems.
I don't believe they went out and had a beer after that trip the other day.
Yeah, I doubt it, Dr. Paul.
I'll finish up.
We wanted to just touch up, and you brought it up during the week with Daniel on stagflation, stagnation.
So my way of tackling it, first off, stagflation is when they print money, you have inflation and lower growth.
So that's where we're heading.
But I want to treat it in like a global sense, a universal sense, because the way the government operates is wrong fundamentally because they don't treat human beings like human beings.
They treat human beings like the physical sciences, and they think that their regulations and stuff will work, and they don't, which is why they keep piling up.
So in the physical sciences, let's say you take a rock and you drop it to the ground over and over.
You get the same result.
You have the rock, you have gravity.
You could be in China, do the same thing.
You could be anywhere on there.
That's how the physical sciences work.
The rock does not choose.
Gravity does not choose.
Human beings are not this way.
We are valuing and choosing human beings constantly, constantly changing our values and constantly choosing differently.
So economists, they look at their models and stuff and they say, let's do this regulation.
We'll get this result, as if it's a Petri dish, you know, where they will get a result over and over.
But humans don't act that way.
We don't act the same way, even in the same circumstances.
You could be a human being, see lightning, and run scared one time, and then in the same situation, see lightning again, not be scared and not run away.
So we are not like the physical sciences, but this is how government treats us, not just in money, but in everything that they regulate.
And they get very frustrated.
They just keep piling regulations.
Oh, yeah, you're going to do this.
Well, we're going to make you do this, and we're going to make you do this.
And after 100 years, you have so many regulations that nobody even knows what they are, what can be enforced, because they're constantly chasing their own tails.
They will not treat human beings like human beings.
And you end up with massive inflation, with stagflation, stagnation, and a government that is so corrupt that it's beyond belief.
So that's, yeah, that's how I would summarize it.
Very good.
And some people think that they don't quite understand how prices can do this.
If you have a depression, would the prices go down?
Not necessarily.
Look at the countries that go to the bitter end, like a Zimbabwe or Venezuela, they have runaway inflation.
So if inflating the currency is the great tool, why is it that when the countries finally disintegrate, they have runaway inflation.
And that's one fallacy that they have.
And I think that there's a time when people will wake up and have to do something else.
But the whole idea that you could have house prices going up and at the same time in the middle of a depression.
Prices are helpful, but you can't depend on them because the prices are going down in a depression.
And then everybody, and I was alluding to the fact that Trump or Trump, if there's a depression or a recession, he wants those interest rates lowered, but he wants to lower them.
They believe lowering interest rates.
The other fallacy about, I think this is a very serious fallacy in economics, is they say we have a relatively free market and it's enough freedom where things are going well.
And guess what happens if you lean toward or have a gold standard?
Prices go down.
But all the economists have taught now today: if prices are going to go down, that's a bad sign.
The economy is slowing up.
So, if the prices are down, but the economy is working perfectly, then they still want to ruin it.
So, they come in and they say, Oh, well, we have to raise those interest rates and we have to interfere with it.
So, it's the interference, the mischief that is involved.
That's how we get these bubbles and all the distortions.
But, big thing is, that's how they undermine our liberties on a personal level with the welfare warfare state.
And that's how they finance all the wars that are involved is because there's no money in the bank.
And we lived off our stored wealth.
And that's why we had to stop honoring the dollar with gold, as we had promised from 19 from World War II up until 1971.
But then we ran out of gold.
We had to quit.
There was just not enough left.
And look at what has happened.
So both parties and 99% of the people coming out of government universities think that it's crazy to think that you should restrain the supply of money by this arbitrary secret group of people that you don't know anything about and you don't have a right to even audit them.
Building Without Policy00:00:25
But we let them go ahead, and now they're building a fancy building, and they are not going to touch foreign policy.
They're going to have a nice, neat $2.5 billion building, but they are not going to touch policy.
And guess what?
They're going to print the money to do the building and make the whole thing worse.
I do want to thank everybody today for tuning in to the Liberty Report.