All attempts at central planning (like the Federal Reserve) lead to economic ruin. The planners ultimately drive themselves into a corner, where every single move they make equals economic pain. Nothing that they do takes the pain away, but only increases it further. It has been 100+ years since the immoral and unconstitutional Fed was shackled onto the American citizen. They've destroyed the money, the economy, funded the endless wars, and crushed the American Dream. They will ultimately reach the point where they won't be able to keep this up any longer.
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.
Very good.
You know, we talk a lot about gold and money and the Fed.
And boy, there was sure some activity today so far.
And who knows where the gold and the dollar and crypto will be at the end of the day?
Because there's a lot of hectic things going on.
And even before today, there's been a lot of comments made by the Fed themselves.
The Fed is out there talking about, you know, we're in a dilemma.
They were more or less admitting it.
Powell was saying, we have this tough job.
We have to make a decision.
And are we going to deal with unemployment or are we going to deal with inflation?
And he says, we, and then he pointed out that there was a discussion at the Fed.
The more they discussion, the more they argue, as far as I'm concerned, the better off we would all be to discourage people from depending on the Fed to solve our problems.
But they think that the Fed can run the economy.
And they're surprised that they're in a dilemma of who's doing.
They're the ones who create these crises with it being encouraged by a system of government.
It's just not, you know, seven, eight, ten guys getting together and saying, well, let's run the economy.
There has to be an endorsement.
The deep state has to be involved in it.
The top-notch politicians are involved in it.
The philosophy of empire building.
It all has to come together.
And then they have to fib to the average person, the middle-class people, that they would benefit and they could show we could have endless welfare benefits until we can't.
So that's what's happening right now.
We still send out a lot of money to everybody, but the money is running out of its purchasing power, and people are getting a little bit nervous.
And that's why the Fed even is admitting that they're getting a bit nervous because, you know, they have to do one thing.
The argument of the Fed is what's happening with jobs.
Oh, there's jobs are looking like they're going down.
So we better stimulate it.
We want to stimulate the economy.
Oh, okay.
Well, this worry about inflation.
Oh, well, we have to cut back on that because we don't want a healthy economy.
If we could crash the economy, it'll decrease demand.
It'll handle those high prices.
But they never mention the real cause of it.
And they keep talking about prices, prices, prices, and the different reasons to all kinds of policies, everything from tariffs to taxes and everything as an excuse.
Rarely do they touch in a serious manner what's really behind this.
It's a system of government that the American people have accepted by the manipulation of those in charge and accepted the idea that deficits really don't matter.
And they're beginning to think so.
But for these decades, they have worked on this, especially since 1917.
And that was the original intent as far as I'm concerned of 1913 when they established the Federal Reserve.
So it doesn't surprise us that the people aren't happy.
It really is delightful to know the Fed is actually admitting the truth.
They have no darn idea what to do.
What should we do?
Treat unemployment or inflation.
And they'll probably try to do and just extend stagflation.
And my suggestion is don't do either.
Get out of the way.
Let the market take its care of it.
Let the market liquidate the debt.
But that is heresy because somebody might have to pay the price of the breakdown of the currency.
And I agree.
That would be that.
But what are they going to do?
They eventually have to pay the price of an over-exuberant Federal Reserve that will not be able to settle our problems without admitting to the truth that the big problem is the appetite for big spending and all the special interest groups.
I see this at times as radical democracy.
The people yelling and screaming for everything, and they get together, they band together, and they become a block of auditing and auditing and checking on what's going on and solicit more favors.
So they got more favors till we're in this mess.
So, Chris, we need to do a lot more hard work for those of us and many others who are starting to realize where the real problem is.
And not so much that we think tomorrow we could solve all the problems, but if we go the right way, at least the people will know, you know, when we have the chance to do something and we expect more chaos, maybe they'll just look at what sound money really means.
That's right, Dr. Paul.
They don't know what they're doing.
And people who observe the Fed also don't know what the heck are they going to do.
And this is the story of central planning.
Central planners always corner themselves and they end up at a point where no matter what they do, they create pain.
And everything creates just more pain.
And they're pressured from all sides, from the president, from the banks, from every angle, do this, do this.
And another side, do this, do this.
And it all ends in disaster.
That's why you never want central planners.
And in our world, I think we're reaching peak central planning, where these people who are above governments control the governments, control the corporations, control the media, control the people.
People are just data, just have all these data points.
That's all people are.
And then you trade the people like they're cows.
So we're peak central planning in our world.
It's as insane as you could imagine it to be.
And it all runs on fake money.
But the fake money is not working anymore.
And the credit, where the Fed, what are they going to do?
Lower rates and give us more inflation?
Inflation is so bad right now, despite what the president says.
He says the same thing, and he'll say it all four years if he has to.
Our prices are rising through the roof.
So if they lower rates, we're going to get even more inflation.
And now you have that problem to deal with.
But if they raise rates, they have the problem that the debts are insane, whether it's auto or student or mortgage or credit card, everything is at record levels.
And you now have to be 40 to buy your house.
I mean, my grandparents paid cash to my parents for their house.
Now you have to be 40, and they were in our 20s.
I mean, this is what the Fed has done.
This is what central planning has done.
They've ruined the economy, the money, end swars.
So now they're trapped.
Every move they make, they're going to create massive problems.
And they did it to themselves.
But we need, as you say, Dr. Paul, to go back to sound money and get rid of all this central planning.
You know, the people that invest in money and are investment advisors, they really have a job, you know, trying to preserve wealth under these conditions.
Some are not that Knowledgeable about Austrian economics and some money, but they still do a lot of advising.
And this becomes difficult.
But right now, if you look at what the markets were doing today, you know, with the gold going down significantly, crypto going down significantly, stocks crashing, and they'll probably recover to some degree, but it won't change, change anything.
So we still have many, many people who have been trying to deal with debt.
The people who can't buy houses now, in the old days, as Chris points out, a family or a couple could start their house or, you know, if they get married in their early 20s, that's one of the first things they think about.
And yet now it's a much older age, and that has to do with just the fact that things are more expensive in real terms and they have to wait.
But the investors, the people who advise and people who try to preserve their wealth are the ones that have a dilemma how to do it.
Traditionally, over all of history, since this has happened many times before, the most significant way people preserve wealth under these conditions was to use precious metals and things of real value.
And the precious metals are around right now.
Gold at $4,000 an ounce, it's still, it's still, although I anticipated it and thought it would happen, and I think it's getting worse, it's still astounding to see that little old Gulkoi, $4,000.
And yet, I think it's going to go a lot more.
But one thing we do is we partner with Birch Gold Company because they offer some advice and ways that you can protect yourself by getting involved in precious metals.
And if you want to contact them, you can look at what's on the screen and contact them for some information.
If you text Ron, 989898, and that will get you in touch with some people that can send some information because taxes are involved, the government's involved, the whole works.
Protecting Ourselves Against Crisis00:10:23
But it is good.
Nothing is perfect and nothing is easy, but I'll tell you what, something that is exactly the opposite, very imperfect and very harmful is this tremendous spending and the Fed trying to just prick their way out of it.
So if you're interested in a little more information to help you make decisions on precious metals, text Ron 989898.
Hey, Chris, what do you have to say now about where we're going to go?
What's the Fed going to do?
Do you want to make a prediction or what?
No, because we both know that they shouldn't even, the market should be setting the interest rates.
But I wanted to talk about, Dr. Paul, throughout my life, we always hear whoever the U.S. government wants us to hate, whether it's Iraq or North Korea, oh, those poor people that live there.
But they don't know any better.
They don't know what it's like to be free.
You know, I've heard this throughout my life.
This is what it's like to be in America.
We don't know any better.
We don't know what it's like to be free.
Our entire culture and everything revolves around what's the Fed going to do?
People, you know, what are they going to do with interest rates?
What's the president?
The president has comments about everything, every single aspect.
Oh, those air traffic controllers give them $10,000 extra dollars.
You know, it's everything revolves around, well, what does Washington have to say about this?
This is not a free society.
This is Soviet stuff.
You know, you look for the Soviet Polypher.
How are they going to rule?
You know, it's the exact opposite of a free society, but we live in it.
And we think, oh, these poor people in other countries, they don't know any better.
We don't know any better.
We should have a government that is in the background.
You barely know that it's there.
That's how Americans lived.
That's how they produced all the prosperity.
It was there if there was a problem and you have to arbitrate a dispute.
You know, in a free society, you have somebody to turn to.
They are the society.
Everything revolves around the government.
So that has to change.
Otherwise, no American ever will ever know what it's like to be free again.
That would be a shame.
But it starts with ideas, and hopefully Liberty Report helps with that.
You know, I think that it might be a safe prediction on my part and my anticipation about what's happening because they've done it so often.
You know, they talk about tightening their belt and cutting back and raising interest rates and this sort of thing.
But I think what they're going to do, the health of the economy and inflation, they're going to opt for decreasing the interest rates and increasing the money supply.
That's what I think they always do.
And this is supposed to help, but the whole thing doesn't work.
Whether it's the unemployment or whether it's prices, the government is bedded with this idea that just more money is going to help and devalue the currency, which is a tax.
You know, just like we argue that tariffs are taxes, taxes on the American people, not Florida.
And tax, the inflation, the destruction of the value of money affects most of the middle class and the poor.
And that's why the average middle class person now and the younger people are suffering from an inability to save enough real money to buy a house.
And right now, though, they always want more inflation, lower interest rates, because that will save them.
And that will decrease the desire to go bankrupt because if they just had more money.
You know what I think that is like?
That's like an alcoholic that finally decides he wants to quit, went through DTs and almost dies.
So he comes in.
What's the first thing that happens when he gets, you know, wakes up again?
He says, give me a beer, give me alcohol.
And that's what the economy is doing.
Give me another drink.
Give me a fix me again.
Whether it's a drug, and this drug is just printing money and convincing the people that this will solve the problem.
And yet it's what created the problem.
But you have to admit, short-term benefits do come from what they have been doing because the people don't know exactly what printing money does.
You think, well, I got some of it.
My social security money is pretty good.
We're getting along.
And the food stamps are still there.
So they're not going to want to stop it then.
So they keep doing it until it gets very, very serious.
And they're at this point that we are addicted to the system.
And that's why they're in a dilemma.
They don't know whether to raise interest rates and worry about employment or whether they should worry about prices.
And they're going to just flounder around trying to seek what to do.
But I think it should be a wake-up call for the people because we shouldn't assume that there's nothing to do.
Even now, there's ways people are protecting themselves against what's coming.
But it's difficult when the government's in control of this and the special interest.
And the one special interest that I think should be more vulnerable for control than anything else if we wanted to nibble away at the spending and the danger that we live in.
And that is looking at the military-industrial complex and all the places we are around the world.
And this current administration, they've advanced this.
They were going to cut way back on this adventurism overseas.
And yet, we have more ships and bombs going around the world.
So that is there.
And that should be the easiest way to cut.
Because, you know, you could start cutting and say, okay, we're going to cut food stamps for little children.
Maybe we can get that passed.
And then it doesn't pass.
And I wonder why.
But the problem with my suggestion is they're not going to do it.
Because I think in a way, the special interests have a place for the military-industrial complex, which is superior to the desire to protect people who are starving because of the economy that they've been presented with.
So I think the best we can do is do our best to explain what's happening and also protect ourselves the best we can because the more the people know what's happening, the more the people that are protecting themselves with gold and precious metals, the better off we'll all be.
But ultimately, it's getting people to eliminate the false illusions of interventionist Keynesian economic policy that taught generation after generations.
Don't worry about the deficits.
They don't mean much.
And these are you worry words about, you know, worrying about deficit.
Well, I'll tell you what, even if they say don't worry about it, they're already starting to worry about they just have to clearly understand what's going on.
Fantastic.
Dr. Paul, I'll finish up my closing thoughts.
Yeah, at some point, this will spiral out of control for these planners because it has to, if no other reason than that.
And no one can know ahead of time what that's going to look like.
You know, sometimes I get asked that question.
Well, what, you know, there's, I don't know what the rest of the day looks like, let alone a major financial crisis.
So our purpose is not, you know, to be no strategist, but to put out good ideas, because when the crisis comes, that's when the good ideas, they're going to have to step up to the plate.
When people are comfortable enough, whether it's like Dr. Paul says, drinking, smoking, when there's no crisis, even if they're doing it too much, they're not going to change.
But once they get that, you know, crisis, then they think, well, what can I do here?
That's where the ideas of liberty have to be strong enough to prevail.
The right ideas need to prevail at that time.
Right now, people are comfortable.
They're not going to be comfortable at some point.
There has to be enough people that are passionate about liberty to explain.
This is what we have to do.
Explain, you have to stop drinking.
You got to cut it down.
And people will be open then because they're hurting.
Now, here's the other side of the coin.
The authoritarians and the tyrants, they're going to be promising, no, we're going to end the pain.
We're going to end the pain by shoving people into something even worse.
So there's always a competition of ideas, the good and the ones that are going to be like, yeah, it's bad now.
Let's go into this.
It'll be much worse.
They're not going to say it's much worse.
They'll promise that it's going to take away the pain.
So they don't have to succeed.
You know, the vaccine passports, they tried to capitalize on that to shove people into something that was much worse, crazy, but they were going with it.
It was out there and it failed.
So, but that's what we have.
We have the internet.
We can speak.
We all have to be a part of it because it's going to be a competition when the crisis really hits.
Do we go in the right direction or do we let these people take us into another ring of hell?
So hopefully we'll do our part.
You do your part, whoever's watching, and hopefully the good ideas prevail.
Very, very, very good.
Chris, I think you've explained that so well.
And to go in that direction, I think one of the most important things we can do is have proper definition of words.
The Inflation Conundrum00:04:16
And the one word that I think is misused constantly, and that is inflation.
And inflation, everybody knows inflation.
That's when I can't afford to buy a house.
You know, the prices went up.
But though, that is a consequence of inflation.
Inflation is when the government or a culture spent too much money and then they decide to monetize it, print the money to pay the bills.
So when they have run-up debt, that is not inflation.
It might be an incentive for inflation, but the inflation comes when you have a central bank.
That's why central banks are so wicked is because they're there for one purpose, to take care of their friends.
And they can do that for a long time and consume the wealth.
But the problem today is the wealth is being can consume.
But tariffs, I hear all the time, well, and they discuss it very seriously.
Do you think the tariffs are going to be inflationary?
What they're saying is, do you think the tariffs could push up some prices, which would be more accurate?
But why should I worry about that?
Because if they just say that it's a price, if it's just the price of something, they just deal with the price and they don't deal with deficits in the Federal Reserve.
They opt out of that.
They just say, well, what we'll have to do is stimulate this or hold back on that.
And that's how we can get by.
And the other thing is about the inflation.
People will think that inflation is universal.
They double the money supply, so all prices are going to double.
Wages that are going to double.
That's not true at all.
It's very irregular.
And sometimes it goes in the opposite direction.
When they're debasing the currency for various economic reasons, the prices might even go down.
But the distortion is there, the increase in the amount of debt and balancing is still there.
And that is more important.
That's why people should understand that.
And people must talk and think about inflation as the debasement, the ruining of the value of a currency.
And the one thing about a gold standard, if you stick on the gold standard, you can't devalue the gold.
And it really isn't there to be automatically going up in dollar price unless the government is debasing the paper currency, which is going on now.
So I think it's very important for people to not be drawn into it.
Talk about prices.
But if they tell you tariffs are inflationary and you stop the tariff, it doesn't solve the whole problem because that isn't where the problem is.
The problem is the addiction to the deficit and the false notions that it really doesn't matter.
It matters a whole lot.
And the false information we get is on purpose so that people don't think if every time they had a price problem, if they also noted, do you know, folks, this is all caused by the Federal Reserve and it could be stopped with honest money.
That, of course, is what we're working for.
And that is the major issue or one of the major issues of what it would be like to live in a free society.
The founders intended that to be.
We had a bit of that at the beginning, but right now it's being diminished on a daily basis.
Our First Amendment rights are being diminished.
Our whole effort to keep us out of war, they don't want to hear about declaring war.
that they even get a chance to vote on it.
They will not vote not to go to another war.
They say, oh, the president, he can do it when he needs to with an executive order.
We've been doing that ever since World War II.
So enough is enough.
It's a system that's bad, that breeds it.
And they think that because it worked on the short run, they can forever inflate the currency, debase the currency, and get away with it.
And they are going to have a rude awakening.
And I think that's what's happening right now.
They're getting rudely awakened.
And I hope they pay attention.
I want to thank everybody for tuning in today to the Liberty Report.