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Nov. 21, 2025 - Ron Paul Liberty Report
29:34
AI Spending: The Biggest Bubble Yet?

AI Bubble is a perfect example of why The Fed should not exist. Give human beings the ability to counterfeit money and their delusions of grandeur are going to follow. Economic laws become a relic of the past. The free will of every single person on earth is ignored as if it doesn't exist. The receivers of The Fed's counterfeit money believe that they will overcome it all, and reality will conform to their imaginations. End the Fed.

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Birch Gold Options 00:04:52
Hello, everybody, and thank you for tuning in to the Liberty Report.
With us today, we have Chris Rossini, a co-host.
Chris, welcome to the program.
Great to be with you, Dr. Paul.
Very good.
I think we're going to talk about bubbles.
And I said, which one?
And you had an answer because you're an expert in that.
And your answer was AI.
I said, but there's a lot more bubble.
And I remember somebody coining the word, everywhere bubbles.
And I don't know who first said that, but that sort of describes things.
So it makes us think about today about talking about this.
If you look at the markets, the markets are getting shaky.
We see gold sky high and very high.
We saw Bitcoin very high and now not quite so high and a lot of activity.
There's been tremendous move in gold.
If that's an indication of people becoming aware of bubbles, I would say that is correct because it has been something to see gold, especially from an individual like myself who remembers a couple of times that it was rather ironic.
It used to be $35 an ounce and nobody was allowed to own it.
We finally legalized gold and went up to $800.
I thought that was horrendous.
And now it's $4,000.
And it's still alive and active.
It makes a tough job for people who are in the investment business and giving investment advice to other people.
I would think that would be very hard.
I can talk about, you know, the philosophy of money and tell people where the dangers are, but to tell people exactly what to do, buy today, sell tomorrow.
And there are people who can do that.
And some of the very rich people are able to do that.
But the average person has to resort to something else to try to protect.
And the average person and the average people, as they wake up, usually resort to the precious metals.
And that's well known to happen in, say, India, because as soon as there's problems and they get worried about their politics or their economy, they buy gold, they buy it in jewelry, but they participate in the market because they know jewelry and the precious metals serve some protection.
So today, people have less options, but more options than we had before gold was actually legalized in 1975.
So this is one of the reasons we partner with Birch Gold Company, because they are experts in the gold business, and we've talked about them a lot, and we've advised people to, you know, contact them.
And I don't advise people to buy, sell, hold, and that sort of thing, but I can very honestly report history.
And it turns out that gold really is money.
That's why we emphasize this.
And this is why this partnership we have, Birch Gold, will offer some information to individuals who want to get involved in investing.
And it's not too late to do that, because if you say it's too late to buy gold and invest in gold, that's like saying, oh, the government's going to balance their budget.
Well, they're not even in session and the budget deficit swells up.
So, no, I think if you think the debt is going to go up and the spending is going to continue and we are still going to be involved in the deep state and the empire, then I think thinking about the precious metals is very important.
If you want to contact Birch Gold, you can do that by reaching out to Ron 989898.
And Birch Gold will send you material on how you might be able to, if you so desire, to participate in trying to get protection by owning gold and silver.
And there's different options there.
And that to me is something I thought about for the years because one of the things that they use right now is something that you have to deal with the government.
And I still worry about that because the government made it illegal one time to own gold.
And no matter what you do, it's difficult.
So it's good to get somebody in the business of trying to help people, the average person, to invest in or buy and control some of the precious metals.
So once again, if you want more material, Ron, 989898.
And Chris, we're going to go now to talking about bubbles.
AI Bubble Worries 00:03:10
And the one bubble that came to mind for you while thinking about this, even though there's many choices, but the one, the current one that's getting a lot of attention is this AI.
And I just thought from the very beginning, it's a bad name.
How can intelligence be artificial?
And some days people figured, no, it's going to be smarter than all of us.
So we have to invest in it.
So what's going on with AI, Chris?
Well, Dr. Paul, yeah, the AI bubble is a perfect example.
And this is our wheelhouse of why the Federal Reserve should not exist.
Because when you give any human beings the ability to counterfeit money, the people who get that counterfeit money will act like they have unlimited money.
And we see it with this bubble.
They're building data centers, galore, over 5,000 the U.S. already has.
The next country that has the most is Germany with 500.
So we have 10 times the next country.
They're driving up electricity prices like crazy because when you live in this fantasy world that the Fed creates, you ignore economics.
Just build, build, build, build.
We saw this with the housing bubble.
Just build the houses, build the shopping centers, build the skyscrapers.
And you hear the same things.
Oh, no, no.
This time there's genuine, there's real demand.
Yes, the people that were building the shopping centers were building it because they were under the impression that there's genuine demand.
This is what the Fed does.
It creates an Alice in Wonderland society.
But it goes beyond just economics.
The narratives get crazier and crazier.
We're hearing that they're going to tokenize everything and everyone, not just monitor us.
They're going to monitor everything.
Everything will be tokenized and on a blockchain.
Even Elon Musk, who we praise a lot this week, says there will be no more poverty, not alleviate poverty.
There'll be less poverty.
No more poverty.
Anyone will be able to have any product that they want.
And then today, I saw the NVIDIA CEO said, quote, the whole world would have fallen apart, end quote, if they would have missed their earnings yesterday.
So we see these outrageous narratives, outrageous construction.
This is their world.
And you know what?
When this bubble bursts, which it will, get ready because taxpayers will have to bail out, or there'll be calls to bail out these people.
Otherwise, you don't want the world to end, do you?
I mean, that's what happened.
Remember with the banking crisis?
We have to do this.
You're going to get ripped off for the banks to reward them for their bad decisions where the world's going to end.
I'll get ready because I'm sure we'll be doing a show in the future about how all these AI companies want to bail out.
Very good.
The Continental Dollar Dilemma 00:02:54
You know, when the founding of this country occurred many years ago, they were well aware of exactly what we're talking about today because they had experienced it wholesale because before the country was settled and before we had a constitution, they had a continental dollar.
But it had no definition.
It wasn't a value of anything.
They didn't have a unit of account.
And therefore, it was inflationary.
They were trying to start off with a currency.
Of course, it did invite something that was long enduring, and that is a slogan.
Not worth a continental, because that's what happened to the continental dollar.
But that motivated the founders to put into the Constitution something about money.
And there was a big debate in the Constitution about what money should be.
So they did this and they said that the one thing they did not want, or at least many spokesmen did, the argument was, oh, we'll have a central bank and we'll just put some restraints on them and they won't do, they won't run it like the continental dollar.
So they did this, but it really never worked well because from the very beginning, you know, there were people breaking the rules on it.
But they did say very clearly, though, hoping this would work, and it did for a while, is that the states, which they assume would be everybody and the federal government wouldn't be in this type of business, the states had to use gold or silver as legal tender.
That's very clear.
But now that is not the case.
I remember one time with my frustration with Bernanke.
He was before the banking committee, and I wanted to bring the subject up.
And I asked him, instead of getting long-winded, like I would get sometimes, I would just say, Chairman Bernanke, is gold money?
And he had, after a long pause, he says, no, no.
The only thing I could think to say is, boy, you have just taken on all of history because gold has been money for a long time.
And every time the big spenders and the big government people become abusive of it, you know, it comes down.
It doesn't work.
And that is what's been going on.
But right now, the AI bubble is a big one.
But I was just thinking of how many in recent years have we talked about it?
We talk about history.
We talk about the tulip mania, and that was unbelievable, except they got a pretty flower out of it, but that was worth more than a continental, maybe.
But it's a lot of things that we have experienced in recent years.
Inflation's Chaotic Cycle 00:15:16
And one, we experience the inflation, which means the depreciation of dollars and prices going on.
But when it seems to get out of control, then they want to call it a bubble.
So not too long ago, we had a dot-con bubble.
And all you had to do is say dot-com, and things would soar, and somebody would make a lot of money, and then it would dissipate.
And then there was the entered the era of crypto, narrowing down this technology.
And of course, there are a lot of cryptocurrencies, and the one that has survived the longest is the Bitcoin.
And the Bitcoin is more popular and more used, and people are determined that it will work.
But I would say that if you look carefully at this, this is going to prove to be a bubble because just recently it went down significantly.
That doesn't mean the promise and the truth has been known, and that's the end of it.
No, they don't.
That's not available yet.
But it should warn people always about when the government's involved.
Because sometimes these bubbles, you build the bubble because of easy credit and easy money.
And people think they're savings and they're deceived by the pricing mechanism.
But there's also the addition of regulations of government because they know they're doing wrong.
So now we have the Federal Reserve and the Congress always writing rules to protect people because people suffer from it.
And they always have to bail people out.
How do they do it?
By more inflation, more debasement of the currency.
So it makes no sense.
And that's why right now the biggest issue is government spending, which is doomed to be monetized by the Federal Reserve.
But there's other ones too.
I think the interferes with the benefits too.
They give these benefits and they're special help for companies and it's crony capitalism.
So it invites a different system.
But I think that there could be an argument for the electric cars because the electric cars were benefited by, oh, the government will give them $7,500 bonus or diffident.
You have to say, well, it might be the greatest car in the world.
It may survive, may do well, and many people made a lot of money on it, but it doesn't make a lot of sense.
So the last report did show that the electric cars are having a bit of trouble.
And because that's easy credit and then a bonus for it.
The government passed it out, but then they said, well, we can't do this forever.
So they canceled.
In October, they canceled.
So now there's more trouble with it.
So it's simple to say that the bubble, financial bubbles, are caused by too much money, easy credit.
And people, savings and business people, and everybody else, the governments, do dumb things.
They think they have real money and real saving, but you have to have real savings to have an economy move slowly because eventually the debts outlive the savings and something has to be done.
They have to stop, which they never do until the final dissolution of the whole system comes.
And that's where we are.
And that's why I think it's so dangerous.
And I think the bubbles are there and we ought to anticipate it.
And the answer is it would be, it would be rather simple if our currency today ended like the continental dollar.
Oh, it didn't work.
We're going to straighten it out.
We're going to have a revolution and we're going to introduce sound money.
That's not going to happen, at least not soon, because there's going to be a lot of people very unhappy, and they already are because the statistics that we're getting on a daily basis of how well the economy is doing is not there.
And probably the biggest bubble for me to contest is the bubble money and the system of the arms industry for our empire.
That is a big, big bubble.
And we are spending not only every year billions of dollars looking for a war, we also, you know, looking for this war to have.
And also, we have to pay interest on the money we've used to do that originally.
So that's why the coining of the everything bubble is everything.
It's distorted.
And it has to do with us refusing to look at the details of what an honest monetary system does and why we need one.
That's right, Dr. Paul.
And you mentioned the dot-com bubble.
I remember that very clearly.
I mean, companies were being valued on the number of eyeballs that were visiting their websites.
Not are you making money?
Are you making money from anybody?
That didn't matter.
Eyeballs was the catchphrase.
And during the housing bubble, I remember people flipping houses that they never even saw.
It was just a house in Florida.
They'd buy it and sell it real quick.
This is what the Fed creates in our society.
And it comes down, you know, it's not an eternal good time.
Everything comes crashing down.
We're still not out of the woods with that housing bubble.
There's still, I think I saw 20% of office vacancies exist now in this country.
20%?
That means landlords are not getting paid.
If those landlords bought those buildings on credit, the creditors are not being paid.
We have big problems.
Even though that housing bubble was way back now, we're still dealing with the fallout.
And we always hear the same and we're hearing it now with AI.
Traditional valuation, you can't value.
That's a relic of the past.
You have to create some way to value, like eyeballs.
You know, we're seeing that with AI.
And the bottom line is the people that have these delusions of grandeur, they think that they can just impose it onto the world.
But the world consists of 7 billion people, all with free will.
We all have our own dissatisfactions, and we act with purpose to remove them.
They totally ignore that.
They're just going to, here's the fantasy world that we have dreamed up, and we're just going to lay it on top of 7 billion people.
And the world does not work that way.
We saw that with vaccine passports.
They dreamt it up.
You are going to go get your shot every six months, like a software update, and then you are going to prove at the stadium, at the restaurant, that you're up to date.
You're going to show them you're up to date.
Otherwise, forget it.
Outside, you know, out on the street.
You're not going to participate in society.
This was their grand delusion.
It came crashing down because they can't anticipate all the unanticipatable stuff.
So, you know, we don't have to live through these dramas, but the Federal Reserve is what makes it all possible.
That suggests to me that we ought to get rid of the Federal Reserve.
Do you agree with that?
Yes.
Okay.
You know, there's a couple seemingly small things, but they would be gigantic in improving the situation, that the monetary system ought to have a unit of account.
And the market really has established that over the many centuries.
And that's been, you know, a weight of gold, you know, an ounce of gold or whatever.
They've used that.
And some currencies lasted for over a thousand years that once they established it and stuck to it.
If we had the unit of account and we know what money should look like and why it's the same the day after day after, no matter where you are in the world, you would have something to reference to.
But the other thing that would help us desperately is that everything has to be voluntary.
You know, of course, the best thing would be to have a voluntary income tax or whatever so that we didn't have to pay all the taxes.
But of course, that's not going to come.
But no, all transactions, when they're voluntary, it erases any need to barter and look at all the regulations of the government.
Because now that when we look at it and the process and the confusion that we have on what to do with the money and how much the terrorists would be, who's going to be hurt, and they figure that businessmen right now are throwing their hands up and say, it's too confusing.
It's too confusing.
How can we keep up with this?
Well, it would be kept up with if it'd be more voluntarism, that you didn't have government regulation.
You'd have regulations on the market.
But they say, well, it would be wild.
It would be chaotic, more chaotic than we have now.
No, we take people that they want to put these same people in to run the Federal Reserve.
And all we end up is with chaos.
But no, it would work much better because there would be rules.
The fact that you don't want the government doesn't mean that you don't have a set of rules and some standards of morality.
And of course, most governments and most people accept the natural law.
You can't lie, you can't cheat, you can't steal, and you can't counterfeit money.
So those are the things that would be understood.
And then when that's understood, you're dealing with something that is uniform and you don't change it, that you don't change the value.
We're here today when you're making plans, nobody knows what the dollar is going to be worth next week.
And that's why these bubbles go so easily because a lot of people don't understand it.
Because on the short one, somebody's going to benefit.
And people go along with this and they don't quite understand what it is a lot more complicated than saying, you politicians, what you ought to do is control these prices, you know, tax the rich and tax those unions and people who are gouging us and that'll take care of it.
It's a lot more complicated than that because that's exactly what is wrong.
Because it ends up that that process, the politician resorts to anybody that's having a tougher time because of the system, you know, need more money.
So they think if you just send them more money, the whole solution, the whole problem is solved, which is wrong because that's the source of the problem.
And more and more people are understanding this.
And I like the fact that a lot more people are talking about the Federal Reserve.
And more people are realizing that we ought to have an audit of the Federal Reserve.
So currently, there's some steps that I think are very positive because we think back, and I think back that, you know, when I went to Congress, I wasn't even allowed to own gold.
And then that was changed.
So we're moving in a direction, but not quite as thoroughly as we have to in not the too distant future.
Excellent, Dr. Paul.
Yeah, we need sound money again.
We say this all the time because it would give us an accurate picture of reality.
Prices would be genuine.
They would not be faked like they are now.
And, you know, nobody, it's always a terrible guess that people have to make with fake prices.
You know, sound money, we would at least have good prices.
It would reflect supply and demand.
You know, profits would be genuine.
Oh, this is what people want.
Look, they're willing to spend genuinely on this versus we should stop making this.
People don't want it.
Now, that does exist, but in a very flawed fashion today because of all the distortions from the Fed.
It would put a break, sound money, on the financial schemes.
And a lot of people know about this today.
I'm not an expert on it.
But these schemes that we see with open AI and it's like this circular investing with Microsoft and Oracle and NVIDIA.
They're all taking debts and investing in each other.
And people have gone into all of this.
And without even understanding every detail, you can tell this is not right.
Something is very wrong here and it's not going to work.
Sound money would curb that.
There will never be perfection because humans are very imperfect, but it would curb these excessive abuses.
It would give us genuine entrepreneurship.
An entrepreneur should spot imbalances and use the price system and resources to correct those imbalances.
Today, we have these AI tech dystopian dreams.
That's what's running things.
What a terrible thing to have to deal with.
We have real problems that have to be solved here.
And they have to get put on the back burner because all these data centers are being built.
So someday we're going to keep pushing until that someday for sound money.
Very good.
You know, when the Byzantine Empire existed, they had a coin called the Bazaar, and it was used in international trade.
It wasn't just for their area.
And it lasted for this long period of time, but they knew what gold was, and they knew the weight of gold.
And it worked rather well.
But there was not one central bank that said, this is it.
But it was something, and the government would be involved in making sure people aren't being dishonest and counterfeiting and lying about it because that doesn't happen.
It happens more now when you think about what a private group would do to have somebody checking for you versus what the government does to it.
They're the ones who do it.
They're the ones who are the counterfeiters.
And they control the whole thing.
Just recently, BlackRock had a sale.
They took out of BlackRock, took out $523 million.
That was just like yesterday or today.
It may be part of that dip ongoing now with Bitcoin.
But that is something that those are hints.
Those aren't promises.
Why We're Not Using Continental Money 00:03:19
Because the one thing is, is prices, even though we have an understanding that money supply and interest rates and all these things are very, very important effects.
But Mises taught that it was human action that finally made up the decision on where the money would go, when they make these decisions, when they will take the risk, when they will say, throw the towel in.
So it is the people that finally respond to that.
But it's not too difficult to sense when there's a bubble.
And I think the ones we mention here are bubbles.
But that doesn't mean that, oh, you guys probably know when the bubble's going to burst.
How long can this go?
I said, well, you can't do that because human action is individuals make these decisions on supply and demand.
And when it comes to money, it's more complicated because the most mischief is caused by our governments.
And the most government that's the most instrumental in this is the one that runs the world empire, and that's the United States government.
And the empire depends on this lasting.
And also, there's a lot of sympathy for those who are not in the United States because they have to use the dollars and the events have just driven that.
And yet, there's a developing competition with this because people are seeing the beginning of the end, this system won't last forever.
And every reserve major currency that has ever been known, and there's been about six or seven throughout history that were precise, they eventually ended and had to be restored with something that was using precious metals.
So I think the information is there.
I don't think it's complex.
I don't think inflation is complex.
I think people ought to know why we're not using continental money.
And I found a good reception when I campaigned around the country, especially by young people, because this is not complicated.
And they would see this and say, yeah, that makes sense.
And it was one, the one thing that came out of the Gold Commission on which I served was an argument to at least go back to mining gold coins and silver coins.
And that's how the silver eagle and the gold eagle has come about.
But there was a many debate over this is what will the weight be?
Will it be the weight of our old silver dollar or what?
And my argument was, and fortunately, I think the rest agreed with it, that it should be an ounce.
So that's why the silver eagle and the silver and the gold dollar piece is a pure ounce.
And I think that is important, getting people to think as a weight of gold and using precious metal and something that could be understood universally.
So we will continue to fight for sound money because it is equivalent to having a much sounder economy that's living within its means.
I want to thank everybody for tuning in today to the Liberty Report.
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