Ron Paul: You Can’t Argue with History – Gold Is Money and the Dollar Will Self-Destruct!


Male News Anchor: Today when the DOW is down 180 and the words “QE3” keep cropping up again and again, whether you like it or not, do you expect the Fed to step in with some kind of additional easing?

Ron Paul: Oh, obviously. That’s the only thing they know how to do, and they are desperate, they have no other options. Even though I think that makes conditions worse, I think they’ll continue to do it. I am sure they have been purchasing a few treasury bills in these last few days since the national debt limit was raised. So QE seems to go on constantly, but maybe they’ll announce a precise program to try to calm the markets down a bit. But it certainly won’t solve our problems.

Male News Anchor: We took a listen to the testimony, the hearing the other day where you addressed the Fed chairman and asked him whether gold was money, and he said no. And then you asked him, “Why do you have so much of it?” And he said it’s tradition. I don’t think I ever got the sense as to whether or not you were satisfied with that answer.

Ron Paul: Well, I thought it was sort of humorous because obviously gold is money, and it’s not because I say it’s money, it because history says it’s money. And all central banks essentially hold gold and a lot of central banks are buying more gold. The West, of course, has been looking down on gold and getting rid of it, but the countries that are more productive than we are in the Far East are buying gold. So gold is money and you can’t eliminate it as money just because our Federal Reserve Board Chairman says no longer. Besides, my argument also has been that the law of the land, which is the constitution, still says that gold and silver are legal tender, that’s never been repealed.

Female News Anchor: Congressman, I want to ask you about a potential move to a gold standard, which perhaps you would like to see. Why would you want to move to a standard which is based on an asset which the U.S. don’t have control of? We’re not the major holder of gold assets around the world, other countries are.

Ron Paul: I don’t think that’s all that relevant. I think if you’re a prosperous country and you produce, then you can defend the gold standard. But I’m not so much for dictating anything, I’m wanting to allow the market to choose. I think we can do much better than what we had in the 19th century where we had fixed ratios between gold and silver. I think we need a much more modern approach. Matter of fact, as much as I’m against the Fed, I’m not for closing the Fed, I want competition. I don’t want people to go to jail because they used gold and silver as legal tender, and I want to make it legal to compete; this was sort of Hayek’s viewpoint of competing currencies. So I’m much more in favor of that than deciding what should be money. I just think that history shows that the wealth is gold, and I think gold is acting as a very strong currency right now because people are very, very nervous and guess what, they’re going to gold.

Male News Anchor: Mr. Ron, you have a very radical strategy for a smaller government, you don’t like Social Security, Medicare very much, you’re not totally in favor of public schools, say some. Given the backlash that there was with Paul Ryan’s attempt that cut Medicare and Social Security, do you think that there’s mileage in that with the American people still, when 1 in 5 dollars received at the personal level comes from entitlements.

Ron Paul: That’s the key political question. Assuming probably 51% of people are still anxious to get a check from the government, and 49% are tired of paying it, I would say my views are very appealing to those people who have to work for a living. And those others who might lose their benefits are very nervous about it. But my programs wouldn’t cause the loss, the loss is coming anyway because these programs are ending because our country is bankrupt and we won’t be able to afford them. Even if we have now opted to keep sending the checks out, we’re not going to declare a default by not sending the checks, we decided to print the money and send them checks that have less value and that’s why the standard of living is going down. So those programs are not viable, just as our foreign policy and our foreign occupations; that is not a viable option anymore either.

Male News Anchor: You voted no other debt ceiling vote, you said you’ll never vote to raise the debt ceiling, you never have and you never will. But since it is now the law of the land, how would you structure this super Congress committee if you could do it, because a lot of cynics say it’s going to be 6 to 6 and it’s going to be awfully difficult to find someone who will want to bargain and make it 7 to 5.

Ron Paul: Well, I would challenge it in the courts and I would say that it’s not a constitutional function, there is no authority to have a super Congress that takes over for what the House and the Senate are supposed to do.

Male News Anchor: You think the committee is unconstitutional?

Ron Paul: Oh, I don’t think there’s any doubt about it, where does it say that we can set up a program like this and then pop something back into the House and the Senate and say you have and up-and-down vote, you can’t take it to sub-committee or full committee, you can’t negotiate it and you don’t know what is going on there. So no, that is not what was set up by the constitution, that’s so far removed from what was intended, that it almost becomes a silly notion. And it is not going to solve the problem, you know. We have to decide what our country is all about and what the role of government ought to be. So if it’s strictly a budgetary thing, it can be settled by appointing 12 select individuals, but they’re not dealing with, “do we need to change our foreign policy, do we need to change our attitude about the entitlement system, do we need to change this system where we have a Federal Reserve that monetizes our debt?” which is the moral hazard of the economy. Because that’s why Congress spends because they know somebody will buy the debt and it’s been going on wholesale since 1971 since we lost the last link to gold. And so these problems that we’re facing today were anticipated and expected by all the free market economist ever since 1971.

Male News Anchor: Some people have pointed out today that those who are most opposed to QE3, in a lot of cases, have the most to gain because a lot of them are in gold, and if the Fed ploughs ahead that’s more money they’re going to make in the yellow metal.

Ron Paul: I think I understand what you’re saying, that my policy would be such that if they followed my policy, the gold coins that I hold will not go up in dollar value anymore. That is true and it sort of contradicts it, but if you have sound money, gold, in many ways, remains more stable in relationship to the dollar.

Male News Anchor: So how badly do you feel the need to enact change at the moment? If you don’t get the nomination of the Republican Party, would you consider declaring as a libertarian third party candidate, even if that splits the anti-Obama vote?

Ron Paul: Well, I think whether it splits the anti-Obama vote or not is pretty irrelevant, but I have not given that option any consideration.

Male News Anchor: Congressman, its’ good to talk to you as always, and we’ll watching closely with that Ames straw poll just a few days away.

Ron Paul: Thank you, good to be with you.

Male News Anchor: Congressman Ron Paul.

Female News Anchor: Alright, we, of course, will have much more on the market sell off right after this break. Right now the SNP 500 is down by about 1.6.

  • emya098

    Over 56 here. We supported Ron Paul in 2008. We will support him in 2012. My opinion: It is the mass media who hurts Dr. Paul by either not covering him as a candidate or by over covering all the other candidates. If you listen & research Ron, the only workable conclusion is Ron Paul. Didn’t the internet using youth elect Obama in 2008? He fooled the youth & many other age groups. Ron has a plan & experience, Obama had no experience & no plan! Vote Ron Paul 2012.

  • xpxzampop

    mr. ron? lol

  • carcabe

    Ron Paul is one man and he can’t do it alone. Our Founding Fathers pledged “our lives, our fortunes and our sacred honor”. It will take nothing less today. Give your time, your talents and your money. It’s your future and your life that’s at stake.
    Ron Paul2012 and Ron Paul TODAY.

  • sedonastarman99

    This is all Perfect! When you look at the big picture of it all. We have for a very long long build castles on the sand and now a big wave of wake up is soon to be upon us. This may be the end of the of what we know it to be but by all means its not the end of the world. We have the responsibility to pray for the world that in which we wish to see.. The Power of directing our thoughts towards a better world is ours to have if we let go of the fear let go of the illusion of things.



  • Hardware952

    Ron Paul 2012 Rand Paul 2020


  • BlasphemyWerks0

    End the Fed!
    Bring back the Greenback, gold has always turned the poor into slaves to the rich.

  • MrPokerGentleman

    You can’t argue with history but you can argue how it’s interpreted.

  • Hope is for losers; WE!!! have to make it happen.

  • michiganfan51

    i’ll most likely vote ron paul in 2012 if he runs

  • MrGb1965

    Paul can beat Obama.

  • taznruby
  • songforamericans

    BEWARE…the Gold Market and Physical Gold at $1,000 – $1,600 or more an ounce “COULD” be the “housing bubble” part 2…..for a single major food crises will crash Gold…..ever try to eat gold coins???…a box of cheezits will be worth more than gold when your children are STARVING……

    • Libertarian777

      Yep. You know a gold coin from 400 years ago is worthless. That box of cheezits from 400 years ago is still worth more and is edible.

      Your argument is fallacious. You can’t eat US dollars either. I’d like to see you store 100% of your retirement funds and savings in cheezits. Let me know what they taste like in 30 years when you retire.

      • Educated Citizen

        All money is fiat, because money does not exist in nature, but gold sure does exists in nature. You see, money is a creation of law, an act of the legislature is necessary to create money. This act also includes the prohibition of barter (such as gold) to exchange goods and services.

        Gold was used as barter for thousands of years, but it was never money because no laws were created that forced people to sell their production for gold first, before using only gold to buy the good and services people needed or desired which they can not produce themselves. If they had enacted such laws, then indeed gold would have been money for all those thousands of years.

        Dr. Paul is a wonderful man, and I support him based on the totality of is positions and his integrity, but he is no economist and is clueless about legal issues such as money. This is not a knock on the good doctor, heck, I am ignorant of medicine, I would never tell others medical advice!

        Gold has no intrinsic value.
        Lots of people value sex.
        Is sex now money too because people desire it?

  • trentthehunter

    0 dislikes

  • ChrisPCrunchy

    WOW a SUPER congress. I vote for a Batman congress as well.


    Giving people the option to opt out of Social Security is against? Thought it was FREEDOM!

  • Yeah, ask Romney if he will join the Corporate party when Ron Paul gets the nomination or ask Palin when people stop caring about seeing her if she will make a sex tape, or when the Tea Party calls Bachmann a fake when she will find another up and rising movement to leech off of, or if Pawlenty and Santorum would consider being elementary school teachers because they suck as politicians or if Cain will give the banks our money since he worked for the Fed. Ya know, REAL questions.

  • MikeM3113

    Paper promises have value,why should look to CONSTITUTION!Dollar was good as gold,stable currency goes with free people! Pseudo private branch of government AKA FED NEVER meant to abuse system in conjunction with treasury to enable irresponsible in red debt/play toxic asset games! Paul advocates back dollar with basket of commodity goods! Gold HAS VALUE. A precious metal with diverse applications from it’s durability/properties (ask scientist,gold is formed by multi-nuclear reactions of stars)!

  • liberty1stpls

    Seriously thanks for raising that debt ceiling there buddy…How long will it take for masses to realize that the dollar is being destroyed by the accumulation of national debt…Why people vote to destroy their own purchasing power is beyond me…We’re not going anywhere like this…Sheeple are falling off the cliff left and right I guess I’ll retaliate by putting even more worthless dollars into gold and silver. We better learn Austrian economics quick while the Republic has a foundation…

  • whougan

    FOX NEWS: STOP censoring Ron Paul! This man is the only one who speaks the truth and can actually win against the Obama machine!!!