Ron Paul: Foreign Central Banks Going for Gold
Foreign central banks have been stocking up on gold for months. According to the World Gold Council, a dozen central banks have increased their gold reserves by at least 1 ton through the first eight months of 2019. This continues a trend we saw through 2018. In total, the world’s central banks accumulated 651.5 tons of gold last year. The World Gold Council noted that 2018 marked the highest level of annual net central bank gold purchases since the suspension of dollar convertibility into gold in 1971, and the second-highest annual total on record.
Peter Schiff has talked about central bank gold-buying. He has noted that the US went off the gold standard in 1971, but he thinks the world is going to go back on it.
The days where the dollar is the reserve currency are numbered and we’re going back to basics. You know, everything old is new again. Gold was money in the past and it will be money again in the future, and central banks that are smart enough to read that writing on the wall are increasing their gold reserves now.”
Ron Paul made a similar point in a recent episode of the Liberty report. He said foreign central banks are increasingly gravitating to sound money like gold and ripping themselves away from the Fed’s dollar.
HIGHLIGHTS FROM THE SHOW
“That’s the position of the president. He wants this market to stay up. That’s the purpose of the plunge protection team and all the financial administrators in Washington. You can’t let the stock market drop or people will get nervous about what’s really happening.”
“The fixing of interest rates is the big game the Fed plays and that’s what the markets like — fix the rates so the banks get it cheap and the consumer has to pay a lot, and that’s the big rip-off.”
“They’re pouring in massive amounts of money. The balance sheet is growing by leaps and bounds. It sort of reminds you of QE, but the establishment says, ‘No, you don’t call this QE. That scares people so call it something else.'”
“I think it’s a fragile situation. I don’t believe just printing more money is going to be satisfactory for everybody.”
“The middle class, they can’t quite keep up. They use their credit cards — credit card interest rate of 17%.”
“Powell is doing exactly what Trump wants, and I know exactly what must be going through Trump’s mind. Can we get this election here soon before the big event occurs? And that’s why they will never let up on the Fed.”
“The central banks of the world are looking at gold again.”
“It’s going to be hard to get a new currency or restore our currency without the use of gold.”
“An alternate currency for me right now is the constitutional money of silver and gold.”
“I think we’re in the midst now of the early stages of major, major, changes.”
“It always hurts the middle class — all of this mischief … They suffer the consequences of inflation and then distortion and loss of jobs.”