Dr. Ron Paul: The People Vote for Gold All the Time (Video)
Last week, Donald Trump told Fox Business that he no longer buys gold. Dr. Ron Paul later rebutted Mr. Trump’s position, explaining the logic for long-term investment in the yellow metal. Much like Peter Schiff, Dr. Paul has been a consistent advocate for sound money and an opponent of the Federal Reserve. Watch and read some of Dr. Paul’s recent commentary here, here, and here.
I don’t think about these daily changes [in the price of gold]. I think about what happened in 1933. When you turned in an ounce of gold, you got 20 federal reserve notes that are worth 2 federal reserve notes now. If you kept your gold and turned it in today, you would get 1,170 federal reserve notes. That’s what counts.”
Highlights from the interview:
“I would think that people would start thinking that someone who had liked gold and had turned against it – it might be a good buy signal. You know, more sellers. We’ll wait and see. I don’t think about these daily changes [in the price of gold]. I think about what happened in 1933. When you turned in an ounce of gold, you got 20 federal reserve notes that are worth 2 federal reserve notes now. If you kept your gold and turned it in today, you would get 1,170 federal reserve notes. That’s what counts. The gold standard hasn’t ended. The people vote for gold all the time. Governments always destroy paper money. We’re on the verge of doing it again…
“Absolutely [I think we could have a real rally in the price of gold without inflation], because I think it’s not right to say there’s no inflation. If you adhere to Austrian economics, just an increase in the money supply and monetary base is inflation. What it does is sometimes it pushes up commodity prices and sometimes consumer price indices, which are rigged by the government. But at other times they go into the stock market. Just a few minutes ago, you reported horrendous inflation – stocks went up 300 yesterday, 200 today. This is the whole purpose of central banking – rig the stock prices up and make people feel better…
“No [I don’t have a time frame for a collapse of the monetary system], because that’s one thing that if you understand Austrian economics, you understand trends. You understand that if you print a lot of money, the value of the money goes down, and you have excessive debt and excessive malinvestment, which are the important issues. One thing is for sure – the collapse of it is psychological… There’s still tremendous confidence. We have a strong military and everybody still wants dollars, and they’re still loaning us these dollars. They still think that if they pump up these stock prices, then the executives get all their bonuses [and] everything is going to be okay. But we have to look at it as a distortion that has destroyed the middle class. 50% of the people can’t even make a living by themselves. So that’s a consequence of inflating the money supply and distorting the economy. Just because we can prop up markets and claim there’s no inflation – I think there’s a lot of deception there.”
Dr. Ron Paul: The People Vote for Gold All the Time (Video)
Last week, Donald Trump told Fox Business that he no longer buys gold. Dr. Ron Paul rebutted Mr. Trump’s position, explaining the logic for long-term investment in the yellow metal:
I don’t think about these daily changes [in the price of gold]. I think about what happened in 1933. When you turned in an ounce of gold, you got 20 federal reserve notes that are worth 2 federal reserve notes now. If you kept your gold and turned it in today, you would get 1,170 federal reserve notes. That’s what counts.”
Highlights from the interview:
“I would think that people would start thinking that someone who had liked gold and had turned against it – it might be a good buy signal. You know, more sellers. We’ll wait and see. I don’t think about these daily changes [in the price of gold]. I think about what happened in 1933. When you turned in an ounce of gold, you got 20 federal reserve notes that are worth 2 federal reserve notes now. If you kept your gold and turned it in today, you would get 1,170 federal reserve notes. That’s what counts. The gold standard hasn’t ended. The people vote for gold all the time. Governments always destroy paper money. We’re on the verge of doing it again…
“Absolutely [I think we could have a real rally in the price of gold without inflation], because I think it’s not right to say there’s no inflation. If you adhere to Austrian economics, just an increase in the money supply and monetary base is inflation. What it does is sometimes it pushes up commodity prices and sometimes consumer price indices, which are rigged by the government. But at other times they go into the stock market. Just a few minutes ago, you reported horrendous inflation – stocks went up 300 yesterday, 200 today. This is the whole purpose of central banking – rig the stock prices up and make people feel better…
“No [I don’t have a time frame for a collapse of the monetary system], because that’s one thing that if you understand Austrian economics, you understand trends. You understand that if you print a lot of money, the value of the money goes down, and you have excessive debt and excessive malinvestment, which are the important issues. One thing is for sure – the collapse of it is psychological… There’s still tremendous confidence. We have a strong military and everybody still wants dollars, and they’re still loaning us these dollars. They still think that if they pump up these stock prices, then the executives get all their bonuses [and] everything is going to be okay. But we have to look at it as a distortion that has destroyed the middle class. 50% of the people can’t even make a living by themselves. So that’s a consequence of inflating the money supply and distorting the economy. Just because we can prop up markets and claim there’s no inflation – I think there’s a lot of deception there.”
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