Ron Paul: Well it’d be nice for the American people to know whether or not the gold is there, they took it from the American people and then they made it illegal for people to own the gold, and in the recent decade or so Central Banks have either sold a lot of gold or leased it out. Now our government denies that they have done any of that, so they shouldn’t have any fear of an audit, and we have not had an audit for more than 30 years.
Joe Bartlett: Alright, that’s Congressman Ron Paul. He wants to know just how much gold we have there at Fort Knox behind our currency. Congressman Paul is with us this morning here on the John Gambling Show with Joe Bartlett, Congressman good morning…
Ron Paul: Good morning John, nice to be with you.
Joe Bartlett: Is there any doubt that we have enough gold at Fort Knox to back up our currency?
Ron Paul: They don’t even pretend that that’s the case, they gave up on that a long time ago. That’s what they gave up on in 1971 when they closed the gold window. We had almost 700 million ounces of gold and we gave 490 million ounces away at $35 an ounce. And of course it was worth a whole lot more. So we’re down to 262 million, I guess if you tried to just protect M1 which is cash and checking account money, I mean gold would have to be, who knows, I’ve had to do the calculation, 5 or $10,000 so we don’t have enough gold to back it.
But it’d be nice to know how much gold we have, because the paper I’m convinced will eventually quit working. Because all we’re doing is printing money and creating new money and not too long ago during the midst of the financial crisis the Federal Reserve just within weeks created $2 trillion and they’re thinking about doing it again and so it’d be nice to know if we have the gold and they shouldn’t hesitate to do this but it’s been a long time, nobody is quite sure couldn’t give me the information when we’ve had a real audit in the past.
Joe Bartlett: Then how does that work, I mean, do we just have gold, do we put more gold deposits in there to back it up or it’s…
Ron Paul: Oh no, it stays the same and, gold isn’t allowed to go up in dollar price by the Central Bankers because that reflects on the value of the dollar and that’s why in the 1960s they wouldn’t allow gold to go up but that meant the dollar was much weaker than the markets perceive. Right now the Central Banks of the west, Europeans, they were very open about it, they would sell gold and they would try to knock down the price of gold and we pretend that we don’t participate but my guess is that we probably do, either indirectly or directly. I mean, they can manipulate futures markets, so we should know about this and I think since it’s the responsibility of the Federal Government to have a sound currency it’d be nice to know if we have any real money. Paper money actually is illegal under the constitution so it’s a responsibility of the Congress that they’ve neglected for a long time.
Joe Bartlett: What do you think we’d find if this were to be done?
Ron Paul: There’s a lot of people who believe it really isn’t there, I don’t take that, I think it’s, I think the gold is probably there I think there’s some gold that the quality might not be as good as they claim. There may have been some commitments because a lot of banks have loaned out their gold or guaranteed loans, so some of that may have gone on, but it’s really hard to say and that’s the reason I think it’s so important that we look into it.
Joe Bartlett: Alright Congressman, let me ask you about the midterm elections that are coming up in November. Everybody is predicting a big huge Republican sweep, Republicans winning the house, potentially even the Senate, what’s your take on what we might see in November?
Ron Paul: Well I think I agree with that, the sentiment is even getting stronger for the Republicans so I think this is good news not because I’m a diehard partisan but I think anything that put a break on what’s happening in Washington might be helpful to the psychology of the country and to the markets. I think people fear endless regulations, endless spending and endless debt. My biggest concern is the credibility of the Republican Party. We had our chance and introduced the country into some of this mess that we have because we ran up deficits too.
So it’s a real challenge for the Republicans whether they’re going to live up to it, but I predict they’re going to do a pretty good job because in opposition they have been voting much better, and if we have control of the House, they’re going to resist and they’re going to not be so anxious to accommodate the president.
Joe Bartlett: But don’t we end up then with a stalemate or do you think that the Republicans can drive policy if they have both House sets of Congress?
Ron Paul: Well, no they can’t because there’ll be vetos but a stalemate is better than the onslaught, so it’s a heck of a way to look at it. But it’s a benefit, if you’re breaking it and then maybe they’ll wake up. Now Clinton did a better job once he lost control of the House and the Senate. He was more willing to work. Most people including myself we’re little skeptical of whether or not our current president will be willing to work along, maybe moderate his position to maybe not want to raise taxes and maybe want to back of a little bit on his agenda.
But if we get the House and the Senate and we pass a bill to remove this medical mandate, at least give people a freedom of choice, then he’s probably going to veto that, so that’s the dilemma we have. But the message has to be heard, the message has already been heard in the primaries, but I like the idea that it’s the independent type of Conservative and Republican that’s winning a lot of these primaries and that’s sending a strong signal as well.
Joe Bartlett: Congressman Ron Paul with his, I know you’ve been outspoken on this Mosque issue here at ground zero and we follow the rhetoric here obviously every single day. The latest coming from the Iman saying that this is an issue that is going to demonstrate whether Muslims get a fair shake in America, I don’t buy that and I know you support their right under the Constitution to do this. What do you make of all of the debate though?
Ron Paul: Well I think the debate is the most important thing, I don’t think anybody really cares about the building because there’s a Mosque nearby and there’s this community centers, so this is propaganda from the very beginning and my take on this is that we’re in a lot of war mongering in the Middle East but we have to have an enemy, so the enemy has to be Islam and not Al-Qaeda so it makes a big difference, and this is an attempt to continue to build up the hostility toward Islam is per-se, and therefore the people who like what we’re doing in Middle East are then justified.
Joe Bartlett: Interesting, I read the piece that you wrote about the end of combat in Iraq is pretty interesting, that it really isn’t the end of combat because we have troops there.
Ron Paul: Yeah, with just 50,000 plus 100,000 contractors and that number is supposed to up, there was a real neat cartoon this morning in the paper that just sort of fit what I was saying because it showed the troops leaving but they had a sign pointing toward Afghanistan, they’re not really coming home so it is a bit of deception. I mean, we’re going to keep the biggest Embassy in the world in Baghdad, we’re going to have many many military bases and the people of Baghdad, you take the guy that’s, the one with the most political power is Al Sadr and he’s a strong, strong nationalist aligned with Iran.
So I would say that we really haven’t won a heck of a lot, I think we probably have lost on this because this whole process benefits Osama Bin Laden because he now has Al-Qaeda in Iraq, Saddam Hussein would never have allowed that and he, Saddam Hussein was an enemy of the Iranians, so I think geopolitically we’re in much worse shape.
Joe Bartlett: Congressman Ron Paul, always a pleasure to talk to you, thanks a lot for your time this morning.
Ron Paul: Thanks for having me.
Joe Bartlett: You’re welcome, Congressman Ron Paul here on the John Gambling Show with Joe Bartlett.