Ron Paul: Gold Is the Ultimate Money




Transcript

David Asman: Well, the Fed announced it will continue pumping money into the economy, while the leaders in Washington still can’t balance the budget. Our next guest spent years battling policies like these when he was a Congressman, will his legacy live on? Joining me now on a Fox Business exclusive is the man, the legend, former Congressman Dr. Ron Paul. Dr. Paul, it’s great to hear from you, how are you and what have you been doing with your time since you left Congress.

Ron Paul: Just waiting on your call. I’m delighted to hear from you.

David Asman: We’re going to call everyday from now, you’re going to get sick of it.

Ron Paul: I’ve been pretty busy travelling and talking about … what are the things I talk about? I talk about the Fed, the economy, the fixing of the interest rates and all of the bizarre things that we’ve been living with, and why the Fed helped us run up that deficit and all those kinds of things that I think you’ve heard about.

David Asman: One thing that you haven’t been doing, unfortunately, is grilling Ben Bernanke like you used to do when you were a House member. And there was one classic exchange between you and Ben Bernanke, let’s just play the exchange and then I want to get you to it and current events. Play the exchange.

Ron Paul: Do you think gold is money?

Ben Bernanke: No, it’s a precious metal.

Ron Paul: It’s been money for 6,000 years, somebody reversed that and eliminated that economic law.

Ben Bernanke: Well, it’s an asset. Would you say treasury bills are money, I don’t think they’re money, either.

David Asman: So Ben Bernanke doesn’t think gold is money or a currency. But when you look at what happened in Cyprus, where the government was considering – and it still may do it, to some extent – going into your bank accounts and literally confiscating money that you have already earned and already paid taxes on, don’t you think that more people in the world are going to think of gold as money?

Ron Paul: Absolutely, and that’s the nature of government. When they get into trouble, they try to raise taxes, which is confiscation, but this is a little bit more blatant in the way they were doing it. But I’m just wondering what’s going to happen, whether they’re even going to open up those banks again. Instead of arguing whether they’re going to take 6% or 10%, they might be arguing, “When are we ever going to not open up these banks again”. So I’m sure it will happen, but I’m not amused by these kinds of things, it happened in the depression and at different times. In the ultimate test gold is money, not because I say its money, but because history has proven that. And if you really want to know the ultimate money, think of the countries that get into trouble and people try to leave their borders. You think you can give a paper dollar or a paper currency to bribe somebody at the border? No, you need gold, because gold is the ultimate money.

David Asman: Today, Ben Bernanke was been questioned a lot about QE2 and bond purchasing, about printing money to purchase government bonds, which, of course, helps the politician to pay for things he doesn’t have money for. But that idea of Quantitative Easing is running out of juice, and even people who have been supportertive of Bernanke are saying so now. Do you think that that policy might change in the coming months??

Ron Paul: It’s going to change, but not because they want to do it deliberately. Because, let’s say if today he would have announced, “We have a new policy. We think we have overdone it and we are going to gradually withdraw, we’re only going to buy 80 next month and 50 the next month”. I think that would have panicked the stock market. What we’re witnessing now is the result of this wild Quantitative Easing, pumping all the money into the bonds and the stocks, and at the same time we have 50,000 people in New York City that are homeless, we have 48 million people on food stamps. And free market economists claim, and I tend to believe them, that the real unemployment rate is probably close to 22%. So this pumping and Quantitative Easing has not solved our problems.

David Asman: Well, you mentioned the stock market, obviously it has helped the stock market go to greater heights, because if you feed free money to the stock market, they love it, they can borrow at no interest rates and make more money on deals, etc. But sometimes a company’s stock will go higher when they fire people, that happened recently with American Express, they fired thousands of people and their stock went up 5% – 6% in one day. Doesn’t trying to prop up the stock market contradict Ben Bernanke’s policy of keeping unemployment down?

Ron Paul: Yes, and I think there are two reasons for stocks to go up, one might be because the company is cleaning up its act and maybe firing people they don’t need, or there’s just a lot of money there participating in a bubble, such as with houses or with stocks, especially like the NASDAQ bubble. But that’s where the money is going, and fixing the price of money is the big deal. Many a times I watch these press releases and am fascinated with them where they go down second by second, and what is the announcement? On probably the most important price in the whole world, and most economist declare, “We don’t believe in price fixing”, but this is price fixing at its worse and everybody hangs on that, Wall Street hangs on it, and yet it’s completely foreign to the free market.

David Asman: Dr. Paul, we only have about 20 seconds, but as I said, people around the world realize the currency is not where they want to put their trust anymore. When you can look at Cyprus and you can look at what’s happening here, do you think the voters might turn back to a gold standard or something where the currency used is worth its weight in gold?

Ron Paul: I really think so, because that’s what history has shown, that ultimately once the government destroys its currency, they have to go back to something more trustworthy than a politician’s promise. And I go to a lot of campuses, and the younger generation are very much attuned to this, because I think they understand monetary policy a lot better than my generation did when we were in college.

David Asman: Dr. Ron Paul, it’s always great to have you, we will call you more frequently. By the way, how’s your son doing, is there anything you disagree with him on?

Ron Paul: I think he’s catching on pretty well, I think he’s doing great.

David Asman: Are you for his immigration policy?

Ron Paul: I haven’t got a hold of that yet, I’ve written my policy up, and I think it does pick up a lot from my book “Liberty defined”, I have a whole chapter in that. It’s not an easy subject for anybody to deal with, but it will be interesting to see how that shapes out.

David Asman: It’s a tough nut. Dr. Ron Paul, good to see you, thanks a lot.



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80 Comments:

  1. Ron Paul, Rand Paul, the Tea Party, and global elite would like you to agree that they should buy up the lion-share of gold, institute a gold standard for currency and then declare your federal reserve notes worthless. Alternately, they want to cause inflation through the platinum coin. The only real value in any currency that represents the economy is in work performed, goods produced, and taxes paid to build and maintain bridges, roads, schools, libraries, national defense, etc.

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  2. Be sure to vote in the next congressional election-VOTE OUT so called "free-market/small government", monopoly driven libertarians and/or Tea Party elite.Vote out politicians who swore allegiance to Grover Norquist. Vote out Roy Blunt, leader of the Monsanto Protection Act. Replace libertarian Republican with Independents or candidates who defend the 2nd Amendment, social safety-net programs, American-made products, and will separate treasury bills and mortgage securities from private banking

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  3. In the 113th Congress, the one just elected that began in January, 219 of 234 Republicans in the House signed the Norquist tax pledge; in the Senate, nine of 41 Republican senators signed it. By contrast, before the 112th Congress, which is still in session, 248 representatives and 41 senators signed it. The drop in support has brought the pledge into the media limelight. Search TPM's Running List Of Republicans Who Have Renounced Grover Norquist (Dec 11, 2012)

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  4. In general, I credit the proponents of so-called "free-market/small government" with the worst abuses. The ownership of business and resources by monopolies and corporate trusts is no better than if the government owns everything. They fight regulation, they believe they are more deserving even though they get tax subsidies to help their businesses or file bankruptcy when they fail. Libertarians run as conservatives and both promote the false idea that their "family values" are Christian values

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  5. Baby-boomers paid into social security and Medicare for a lifetime. Politicians have borrowed from social security and used medicaid funding without common sense for a prescription drug program that benefited big pharmacies and provided drugs in parents medicine cabinets for kids to experiment with. Watch, "Rand Paul says NO on fiscal cliff deal."He says, "The problem is that YOUR grandparents had too many children." Libertarian Republicans want you to throw YOUR family off the cliff.

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  6. Gold should be our economic standard

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  7. They can only do business in Europe and are not allowed to influence elections in their many parliaments. Alas I know that American corporations are ruthless and hungry for economic power so they will try to destroy the European Union's economy so that they can take it over as well as influence the austerity protesters to adopt the Anglo-American type of legal system. I cannot tell you more, I might cause anger.

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  8. I have a feeling that 2014 will be the year that Europe will be on the brink of civil war. I also have a feeling who is causing it. The legal systems on the European continent follow the old French and Roman civil codes founded by the traditional aristocracies of old who once ruled most of Europe before World War I. Because of these codes, American-based multinational corporations are forbidden from gaining political power.

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  9. somebody please kill these occult cock suckers on fox. msnbc, ...etc, thanks

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  10. Ron Paul for President in 2016

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  11. Well, I have worked behind the scenes. He is friends with all these people you think hate him.

    All these roman catholics hang together. Ron Paul is actually catholic. He is baptist only in name for political reasons. This is why he only has catholics working on his homeschool curriculum. And they are some of the worst catholics, Tom Woods, Dilorenzo, Gary North. All are notorious for corrupting history to favor the Catholic Church.

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  12. Man.. I hate that, when Paul is no threat he's everyone's best friend, but when he's actually got a chance to become president (arguably the best since Thomas Jefferson) he is invisible to them.

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  13. If you really want to make extra money, you should look up on google Certor Cash Code. They can guide you and help you get the financial freedom you deserve.

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  14. Yes, gold is a hedge in the sense that people try to use it in order to protect themselves from suffering a loss in dollar value, but it's just another useless bubble-forming hedge. It works in the same way that all of these stock market rackets work - invest in stock, then hype up the value, and then dump the shares on some suckers. It's not serving to curb inflation, it's serving as a way to exploit economic crises for some savvy investors personal profit. Might as well be investing in tulips.

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  15. This use of gold I think you must admit makes it exceptional in comparison to other commodities. It makes a lot more sense to use gold as the measure then other commodities. I would argue that it makes more sense then using dollars as well. Even if you try and adjust for inflation, which is mostly based off of gov't figures who would like to keep that number artificially low.

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  16. I agree mostly. However, due to the fact that gold as a commodity has little use other then to store value, it is a different type of commodity. Silver, Palladium, Corn, Wood etc these are commodities which are useful in production. Yes, I know gold is used in some applications, however, its main use is to store value and as a way to hedge against inflation risk. In the 1980's inflation was high, thus it was being used as a hedge against the future inflation, which got curbed.

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  17. "But looking at stable commodities for the devaluation of dollars can be fairly accurate" Yes I agree with this statement - my point is you can't just arbitrarily choose one and just use that, because often those commodities are NOT stable, like gold. If we were to use the price from 1980 instead of 1940 and use that for our measuring rod for house pricing today it would be *way* off. It's accurate when it's accurate, it's not when it's not - we need a better system than that, and that's by fiat

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  18. Consumer goods are naturally deflationary. To argue the value of the dollar has not fallen due to consumer good prices going down is silly, though I am not saying you are doing that. But looking at stable commodities for the devaluation of dollars can be fairly accurate. Also home prices in 1940s were around 3000 to 5000$ with gold at 35 an oz, at 5k it'd be 142.85 oz. Today's gold price and 142 ozs would get you a 214,000$ home. Still pretty accurate.

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  19. oohh true! this clip i want to dance! AND.. use this to get it on your pod > bit.ly/10j0a3Y?=nwtri

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  20. START EARNING REAL MONEY NOW. STOP WASTIN YOUR TIME
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