Channel: Fox Business
Host: Stuart Varney
Stuart Varney: Congressman, the price of gold is down a bit this morning. How do you account for that?
Ron Paul: Well, I think it’s like other markets too. Sometimes they go up and sometimes they go down. But I look at gold not on a weekly basis but more on long term and it’s a good measurement of value and the value of currencies.
I think our current mess we’re in now started in the year 2000, when the NASDAQ burst. At that time gold was at $262, so I would say that gold did pretty good in the last decade, and I think we’re still on track for the only tool that the Fed has and the government has: spending debt and printing money. In the long term, that’s very good for gold as a protector against lost value in currency. It’s going to continue, but it doesn’t mean gold might not drop a bit more.
Stuart Varney: Congressman, you have appeared several times on this program and I’ve always asked you the same question. You see real, real economic distress, but you said it’s coming two or three years down the road. Have you speeded up your time frame a bit, bearing in mind what’s been happening over the past week?
Ron Paul: I worry about that, and I think we have months to prepare and be ready and condition people and prepare them for what we ought to change the system to. I think it’ll limp along. As long as they are buying Treasury bills and buying dollars, that’s the last bastion. And there’s no justification for it. Who wants to buy a Treasury bill for 10 years and take it out in 10 years and think they’re going to have value in that. I don’t think anybody believes that. It’s just that there’s just so many dollars that they’re parking, they’re still resorting to us to help bail out Europe and Greece and the IMF. It’s pretty amazing how resilient this can be.
But if I were betting, I’m not saying, well, “I don’t think it’s going to happen for 3 years, so this is a good time to buy stock” – is the last thing I would think. So I’m sort of preparing my mind that we could have this bigger crisis.
I think we have this ongoing crisis. I never believed we were going to bull market. I don’t think we’re going to bear market correction and that’s what it looks like it is.
I hope your question is sort of wrong, that we don’t have it in 3 months. I hope we have 3 more years to prepare the people for what we have to do when we have a serious crisis.
Stuart Varney: Well, I hope you’ll join us again and we’ll watch for this, what exactly is going on. Always a pleasure, Congressman Ron Paul. Thanks for joining us.