Highest Monthly Layoffs In 22 Years America's New Golden Age
There's a stark disconnect between the Trump Administration's description of the economy and the economy that we all live in. There are some things that can't be faked. We pay our bills. We see our bank accounts, and credit card accounts. We don't need the president, or the media, to tell us that "inflation is dead." Inflation is not dead! Yesterday, it was reported that monthly layoffs from October were the highest total in 22 years! President Trump was elected to deliver a smaller government with less spending and debt, and an end to the wars. He has done the opposite on all fronts, and the battered economy is reflecting his decisions.
Hello, everybody, and thank you for tuning into the Liberty Report.
With us today, we have Chris Rossetti, our co-host.
Chris, welcome to the program.
Great to be with you, Dr. Paul.
Very good.
Today, we're going to talk about important things like why there's no problems with balancing the budget.
They only have to follow one rule, a rule that was made a long time ago, and the budget would be balanced overnight, and there would be no more wars, and a lot more peace, and a lot more prosperity.
But I guess it's asking too much.
For everybody who takes the oath of the office and working in Washington, they ought to be made to obey the Constitution.
And magic would happen.
But I'm not holding my breath because I'm short of breath and I wouldn't be able to hold it very long.
But anyway, we want to talk about some of the things that are going on.
And before I do this, I want to mention that we do partner with Birch Gold Company because they're interested in gold.
I'm interested in gold.
I've been interested in gold for a long time.
And of course, I've told many people the memorable date for me was August 15th, 1971, when I decided a personal decision that, you know, somebody ought to talk about the significance of the Federal Reserve and what it means when a country abandons, you know, the gold standard.
And that's what it was back then.
And I've been talking about it ever since.
But guess what?
We still have our problem, except I think we have an additional group of people that are knowing what's going on.
But that is why we partner with a company like Birch Gold.
And we invite you, if you want to get involved or get interested a little bit more in gold investing, you can text what's on your screen, text Ron 989898.
And that will connect you to Birch Gold and they will send you some material.
They don't charge you for this.
And there's lots to understand because, you know, the biggest obstacle that I've had over these many years thinking about gold has been the government.
And we have to always think about that because even on that memorable date of August 7, 1971, we weren't even allowed to own gold.
It was illegal in this country.
It had been illegal since 1933.
So there's a lot of transitions.
I think we're better off today in that sense because at least we're allowed to own gold and understand it.
And millions of people right now are trying to protect themselves about what is anticipated, which nobody can absolutely know what is going to occur.
But once again, if you want to connect with Birch Gold, Ron, 989898.
And Chris, I want to go into our first subject, and that has to do with unemployment, because that's a symbol of not understanding monetary policy.
Because the news is coming out, there's some in the leadership of this country are saying this is the golden age of economics.
It's just wonderful.
Well, I think overdoing and over-promising is always dangerous.
I tended to always want to under-promise so that if it's a little bit better, then I get a little extra credit.
But to over-promise, not a good idea.
And I think that's what's being promised to the people that we're going to be in the age of golden economy coming.
But the subject we're going to start with doesn't show that it's so golden.
And the first thing we want to talk about is a headline.
It's been in many of the papers now.
It says, October, and this comes from Zero Hedge, October layoffs surge most since 2003 amid cost-cutting, AI adoption, challenger data shows.
So I believe that This is another sign that we've been in an economic bubble and that it is unwinding and it's threatening, but it's been able to cover over.
So if a person is literally bankrupt and everybody knows it, if they get one more loan, they get by and people say, well, maybe they'll come out of this.
And that's about what the government does.
They get one more loan from the people and the world because the people are still using the dollar.
But with a great deal of difficulty, do the people have trouble and the business people have trouble because in reality, when you adopt a system like this, the real nemesis for us is prices are going to go up.
The value of the dollar goes down.
Prices go up.
It's an absolute and it's been known for a long time.
And there's an easy solution.
Quit printing the money.
And that would mean you would have to cut spending.
Well, they're not going to do that.
So we have this problem.
We talk about, we talk about it, but we also talk about the positive side of it.
This could be solved.
The whole problem could be solved if we change the nature of our government.
It's been changed and it's even changing more.
We sure hope the mayor of New York City doesn't have control of which direction we're going in.
But it is something that changed certainly 120 years ago when a progressive era moved in, economically and socially speaking.
And it has led to a lot of trouble, bad education, bad medical care, bad economic problems, even though there's been a tremendous increase in wealth.
And some of it is an illusion, some of it is a false pretense, because a lot of people got wealthy, say, over our foreign policy.
They get to build weapons and sell them to the world.
And we have an empire that we have used to make ourselves wealthier.
But I think all the signs we're going to talk about, including the one incident here of people being laid off, and that is losing this 153,000 jobs in a month, it did awaken a lot of people.
So I think there's more and more of that.
I found that when I campaigned on a national scale, that young people were especially interested in it.
And I didn't have to mince words and say it's magic.
You know, just get better people in Congress and get them to be fair, get them to the middle of the road and to have make everybody happy.
Now, that's not the answer.
Matter of fact, I never thought I heard the answer very often in Washington, you know, what needed to be done because it was a philosophic answer.
And I was much more interested in talking about, you know, sound economic policy, Austrian economics, and the various economists that followed this, because it's a growing thing.
It's been growing, and that's what I'm excited about.
But here we are now losing this number of jobs, and it's the highest in 20 years.
So that should wake some people up.
And you say, well, why didn't it happen before?
You scaremongers have said this for a lot of times.
Yeah, but the scaremongers have been right for a long time.
It's just that you don't know when things are going to happen.
This has been smoldering along.
And even the subject of, well, are people really suffering?
You can find articles.
I saw an article today of food banks, people hungry.
I said, not in America.
And you know what really disturbed me?
Because we talk about the golden spot in a country, Texas.
But Texas is having this kind of trouble.
Food banks are being overwhelmed.
And in the midst of all this prosperity and in the midst of billion-dollar Salaries for the deep state people.
That to me is indicating, Chris, that our message needs to be heard because I have full confidence that moving toward liberty is a much better game, much better plan than moving toward more authoritarianism.
Chris?
That's right, Dr. Paul.
And you nailed it.
Over promise.
I mean, the Trump administration, if anything, is one giant overpromise.
And yes, this caught our eye just in October last month.
150,000, 53,000 layoffs, the most in 22 years in a month.
Right before we went on, I wanted to look up how many manufacturing jobs have been lost just since President Trump took office in January.
39,000, so almost 40,000 manufacturing jobs.
Yet there's a great disconnect between what the administration says and the reality.
You know, another thing is the tariff war.
No one came begging.
You remember the whole hoopla of all these countries, they're going to be on their knees begging.
No, it was just President Trump issuing insane threats that spent, you know, sent the markets into a tailspin.
And then he has to retract the threats because we have no leverage.
We're the deadbeat of the world.
He has no leverage on anyone else.
So he has to retract it.
But the administration is dangling, oh, $20 trillion is going to be invested in America.
You know, when President Trump was running against the Democrats, it was a novelty.
Oh, he says these things and he keeps his enemies on their toes.
They don't know which way he's going.
That has worn off.
You know, it's gotten to the point where nobody even believes anything he says at any time.
And that's a shame because you can't, there are some things you can't fake.
You can't say we're in a golden age.
And everybody in America knows this is no golden age.
So I don't know.
It's a big overpromise.
He needs to pivot because he's going in the wrong direction.
You know, Chris, sometimes our explanation goes over well and people know what we're talking about.
But sometimes a chart is very valuable.
If we can put a chart up and see the picture, that leaves a more impression than just talking about it.
But I think we do have a charge.
Just take a look at this.
Layoffs for any October high since 2003.
And there it is.
You see the last line over there.
That's the most recent one.
And although it was worse after the dot-com bubble crashed, the bubble that we have today, I think the bubble, there's no way to estimate exactly, but I think it's many, many fold bigger than the bubble that was available back then.
Then there was a further understanding that you could just spend your way out and print your way out of it and achieve it.
But now the confidence is being lost because this is dramatic.
And it'd be interesting, Chris, if we do bring this up maybe next month, too.
Unfortunately, it just will probably emphasize this chart getting worse.
So that is something that we should remember about.
And the other thing is, is remembering this is a very personal thing that is going on.
But you know, it's this bubble that I'm enamored about.
And I think the bubble is there.
I think it's the biggest bubble ever.
And when you think, even though back in 71, I said, sky's the limit.
They're going to destroy the value of the dollar.
And I could believe that things would be big.
But even when it happens, when gold goes to $4,000, I'm still, holy man.
It's still when it does it.
It dawns on me how serious this is.
And, you know, this other thing that demonstrates, you know, system that we live in, and this has to do with the vote that just occurred this week, Tesla shareholders approve Elon Musk $1 trillion pay package.
And I happen to, you know, have had some contacts with Musk, and I sort of like him.
I think he's brilliant.
Market Forces at Work00:15:38
I think he's rich, too.
And so he's there.
But he's also been invested involved with government contract, but he doesn't deny it.
And he says, well, when the subject came up about subsidies to his automobiles, he says, I don't need that.
I just get rid of it.
And evidently, they don't have this tremendous subsidy.
For a long time, there's $7,500 subsidy going if you bought a Tesla automobile.
So it was a tremendous benefit.
But the fact that he's going to make a trillion dollars, you know, that's a lot of money.
But I think it's there because I'm sure that he's smart enough and wealthy enough to know what exactly the rules are, the laws are, but he might not have an intense interest in, you know, misdirection of investments and how important things are, because most people who are rich also knows the system, how important interest rates are and spending and how to run a business.
And they do quite well.
So one big advantage for wealthy people is the fact that they get hold of the money early on.
When the government monetizes the debt, they have to distribute it through the banks and big corporations and anybody that has an influence with government, you know, they might get more contracts because they believe the money is unlimited.
And there's still, there's people in Washington that say, you guys that believe this stuff, you're so misled.
You've been saying this for years.
Well, tell you what, I want to keep saying it because I think we're in the middle.
No, we're not even in the middle yet.
We're in the beginning phases of the liquidation that is a must under market economy.
It's a contest between the market economy and the rigged economy.
And the market economy says when you have too much debt to get economic growth in the right direction again, you have to liquidate the debt and you have to liquidate malinvestment, bad investment, the malinvestment based on the erroneous interest rates.
Interest rates are vital in a free market.
And we don't have market interest rates.
Maybe the closest thing you could come is maybe the interest rates on a credit card or some other thing like that.
That might be getting closer to it.
But I think we live at historic times.
I think the problems we had in the 70s, they were really attention getting interest rates at 21%.
And we don't even know if interest rates will sell or just 21%.
Maybe it doesn't have to do exactly that.
But one thing is it's going to be liquidation of malinvestment.
And that's why you see what's happening on this unemployment.
That's the beginning of it.
I think that is going to grow.
And that is why it's vital that somebody pays attention to me.
The most important thing, if people come to the conclusion that a free market economy is superior to a rigged economy and a planned economy, their duty to themselves and their family is to get people to understand why.
Because when the time comes when you have to get the government out of the way, because they won't have any money of value, that they have to understand what's going on in order to restore something somewhat similar to what the founders intended, Chris.
That's right, Dr. Paul.
The duty of public officials should be to tell the truth.
But we live in a system, quote unquote, that even people think, you know, well, of course, politicians lie.
There are some people who say they have to lie.
You know, they take it to the belief that that's, you're never going to fix a country's problems if your leadership don't tell the truth.
I mean, here's President Trump yesterday: quote: Our energy costs are way down.
Our groceries are way down.
Everything is way down, and the press does not report it, end quote.
Now, we pay our own bills.
We don't need you to tell us what they are.
I see my bills.
I have to pay them.
So does everybody, other Americans.
We don't sit around and say, I wonder what the president thinks about prices or let me go to the media because I need them to tell me how prices are.
Absolutely not.
We pay them.
Prices are not down.
And there's no talking your way out of that.
But this is, you know, this is how the whole eight, nine months, whatever it is, we started with the Epstein, the binders, phase one from the most transparent administration in history.
That's what it says on the binder.
And now it's a hoax, you know, and the peace president.
And there's no peace.
We're still in Ukraine and Iran and now Venezuela, they're going.
And the Senate's like, let the president do whatever he wants.
They even voted.
What are we going to do our constitutional duty for?
I mean, this is the exact opposite of what President Trump was elected.
I mean, we may have memories of a goldfish, but we can remember back to January and November and December.
This is total opposite.
And this is why he's got to turn this around.
Otherwise, you know, it's going into the next election, it's going to be very, very bad.
Very good.
I want to mention how the interest and the excitement about electric automobiles.
I don't know anything about automobiles, but for some reason, I haven't been sold on the idea.
This sounds like a real solution because it's electric and it's going to save all this problem that people claim for the environment.
We get rid of the cars and things will be okay.
But what they don't say is, where do they get the electricity to run the cars?
If you're going to have electricity, well, they're going to have to produce it by burning coal.
And literally, we are subsidizing.
There was a big subsidy announced this past week to help pay over and encourage people to open up their coal mining so that they can have more electricity.
So all this time, that doesn't mean we'd ever give up on electricity, because especially the size of the unit that you're doing, I think the electrical thing, some of these home tools are just great with electricity.
But the Ford company had to quit.
It looks like they're going to quit making the F-150 truck because it lost $13 billion in the past two years.
Well, that's a wake-up call.
So they have to back on.
But that wouldn't have happened, I don't think, if there wouldn't have been mandates, tafts or tariffs being used and messing up the economy.
And then finally, Ford company, and to just think of the F-150 truck, has had the best reputation I think of any truck ever for the average person.
But the electric truck didn't work.
And that doesn't mean it should never be tried, but it shouldn't ever be artificially subsidized by the government.
And right now, the government is still trying to bail out because now they say that we need electricity for AI.
So we have to subsidize electricity.
And what are they doing?
They're subsidizing the coal.
Why don't they just get out of the way and make a rule pretty generally?
Don't you don't have any right to pollute your neighbor's property or your neighbor's hair.
And that would be so simple.
The market would be more thorough than government.
Governments are manipulated all the time.
The regulations are controlled by lobbyists and the rest of them.
So, in this case, this would be a big help if we allowed the market to work.
And once again, one problem leads to another.
And one thing in this car business that may have been made worse has been the tariffs because the cars are they want to protect the car business here?
They buy all the parts from overseas, essentially.
I mean, if it turns out, after people stop, why did they do that?
It's stupid.
And yet, we on to it, but then because of one reason, we have control of the world printing press and we have used it.
We have been wealthy, but the end of that is coming.
And that's what people are recognizing now.
And that's why they're getting very, very nervous and rightfully so.
And they should use that as an incentive to further understand how markets really work and why free markets are so far superior to the markets run by governments.
Excellent, Dr. Paul.
I'll finish with my closing thoughts.
Yeah, we are, as you mentioned earlier, in the biggest bubble of them all.
I mean, we've been through the stock market bubble, the housing bubble, and the NASDAQ bubble.
This one's the biggest.
And I would call it the AI bubble if I had to brand it.
And you could tell by our government, that's all they wanted.
They're investing.
We're going to be the AI this, AI that, AI.
And they're pumping just, you know, crazy amounts of money.
It's the same story.
And it's a bubble.
I saw this week the U.S. has 5,381 data centers, the most in the world.
The next highest is Germany with 521.
We have 5,000, and the next highest is 500 in Germany.
What do we need, all of these data centers?
What are they building the Star Wars Death Star with this?
I mean, what are we going to do with all the data centers when this bubble bursts?
How do you repurpose these things to make them useful when they're half finished, when they're useless?
They don't think about that.
They just build, build, build, and this is supposedly prosperity.
And, you know, government uses their thoughts about how they want to use AI is much different than me looking up how many jobs were lost in manufacturing.
You know, I use AI, and that's not what they want.
This is a control mechanism for them in their dreams.
This is what they want: a way to control just about everything with AI.
That's how they are with all tools.
You know, we use planes to travel from place to place.
They use planes to drop bombs.
We could use nuclear energy for energy.
They bomb hero sheet.
They use every tool for evil.
So they're going to use AI for evil.
And they have 5,000 data centers already.
And they're just keep pumping more and more money.
So same story.
It's the AI bubble this time.
It's not going to end well.
And they're just wasting resources, which is a shame.
Chris, very good.
I'm going to close by mentioning something I've mentioned a little earlier, and that has to do with people getting hungry.
And here's an article.
It says food banks are all over the U.S. are being overwhelmed by a tsunami of hungry people.
That again sort of blows my mind in America.
But, you know, right now, the farmers, the farmers are suffering more than ever, and tariffs have aggravated that.
The regulations and the radical environmentalists have done all this.
Government has done this to them.
So what is the solution?
Well, the solution, the administration says, let's send them more money.
That is a problem that has to be solved.
But the idea that people in this country are hungry just baffles me to no end.
But that has been going on systematically over the years.
And there's so many regulations.
And you say, well, what would you do?
You wouldn't have all the regulation to make sure our food is safe.
Yes, it would be.
It's not in their interest to sell bad products.
There's a lot of things done by voluntarism and having inspections.
And it's been known for a long time that commodity and consumer goods can't be inspected and ruled safe or not by non-government agency.
When you have the government, then you have lobbyists and you have people on the take that will wrinkle all this.
So I think the farming problem is a big deal.
But right now, it's recognized by the government because the farmers are upset and they should be.
And the farmers want bailed out.
And that's really all available to them now, because the problems that they have developed over decades.
It didn't happen in one week.
Okay, repeal those tariffs that have aggravated the industry.
You can go one step at a time, but that is the real problem.
It's a whole philosophy of the doctor, the relationship between the patients and the doctors and the farmers with the government.
And it encourages something that is really bad.
And it was very noticeable, and I could recognize it so much.
It's the inviting of the people who really want control.
And those are the lobbyists.
And the lobbyists, you say, well, aren't they independent and aren't they private organizations?
And they just lobby.
It's not quite that simple.
They're made up of the people with a deep state behind there.
They're made up of the military-industrial complex, the pharmaceutical industry, and they lobby everything.
That's why some of these tough votes in the Congress right now seems like they would vote the right way, but they might have a tradition of talking to be conservatives.
Then all of a sudden they roll over and vote for.
And that means the lobbyists are behind them and say, you know, you're going to have a tough election.
If you want to stay here to help save the country, you better do this and do what you're told to do and how you're supposed to vote.
So I see all these problems as a big deal and very dangerous.
But I see the answer is very simple and clear-cut.
Divide the world up into two patterns, authoritarianism and liberty.
Now, you're never going to get 100% authoritarianism, even under the worst dictator.
And you'll never get a perfect system of liberty.
But everything that we do and that we pretend we're doing, we ought to know what direction we're going in.
And we've been moving in the wrong direction for a long time.
And this is the time for people wake up and shift gears.
There was a lot of hope six months ago during the election, and yet they're not so hopeful today because we don't seem to be moving in that direction at all.
We're not moving in the direction of stopping wars and don't start any new ones.
And the DOD is one of the most sacred and safest budget in Washington because it's patriotic.
If you don't vote for it, you're unpatriotic.
So, this is the mess that's in there, but I still say it's not complicated.
People just have to understand the principles of liberty and have a desire to preserve it.
I want to thank everybody for tuning in today to the Liberty Report.