Ron Paul: “6,000 Years of History, Gold Is Always Money, Paper Money Fails”

Tyler Durden's picture

From GoldCore

Ron Paul: “6,000 Years of History, Gold Is Always Money, Paper Money Fails”

Ron Paul spoke with Bloomberg television and said that we are in a currency war and we have been for decades. He noted that governments have always competed against each other’s currencies even under Bretton Woods. It has always been a form or protectionism and will make people want to export more.

Dr. Paul said don’t blame countries like China and Japan just look at the debt the U.S. is buying. There will always be currency wars. The Bank of Japan claims it has to defend itself against deflation and decades of slow growth.

Ron Paul noted that the Bank of Japan’s yen devaluations will eventually lead to further price inflations that are to come. Investors and citizens will eventually reject the yen and switch to other currencies like dollars or Swiss francs.  Then eventually people will move to hard assets altogether as they are losing confidence in paper assets. 

Dr. Paul was asked, “Do you think protectionism will lead to a crash in the international monetary system? He replied, “Nothing good can come of it. Even short run trade benefits leads to a weaker economy and higher prices. It doesn't solve the problem they won't face the truth. That is that all governments spend too much money, there is too much debt and they get away with it by taxing people”.

“It seems that all we have is more debt, more printing money, and more government interventions. Governments won’t even talk cutting things. They only want to make slight decreases of proposed increases in their budgets!”

On the next U.S. Treasury Secretary, Jack Lew, Paul says, “We don't need an intervener.  He should have a strong dollar policy by defining it, and not by propping up the market. Don't devalue a currency. It is then that you hurt savers and cost of living goes up. This only damages the middle class and the poor no matter what welfare programmes you have because they lose purchasing power.”

Dr. Paul says that he feels the Obama administration is trying to devalue the dollar, they are very different then sound people and different then the Austrian economists. They feel debt is ok.

The interviewer noted that the gold standard has not immunized us from financial crisis.

Dr. Paul retorts, “If you look at it over several years it does maintain money. There were flaws with the gold standard, during wars, there were problems in the past and we understand so much more today and we could do better.”

“If you think we need a wiser Federal Reserve, central economic planning for the manipulation of credit, or a better Treasury Secretary, I reject that. “

After all, Ron Paul says for over 6000 years of history gold is always money and paper money fails. 

IMF Russia Gold in Million Fine Troy Oz, Monthly – (Bloomberg)

Russia buys gold to protect against “cataclysm with the dollar, euro, pound or any other reserve currency"

Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty.

“The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency,” Evgeny Fedorov, a lawmaker for Putin’s United Russia party in the lower house of parliament, said in a telephone interview in Moscow.

Gold, coveted by Russian rulers including Tsar Nicholas II and the Bolshevik leader whose forces assassinated him, Vladimir Lenin, has soared almost 400% in the period of Putin’s purchases. Central banks around the world have printed money to escape the global financial crisis, sapping investor appetite for dollars and euros and setting off a scramble for safety.

In 1998, the year Russia defaulted on $40 billion of domestic debt, it took as many as 28 barrels of crude to buy an ounce of gold, data compiled by Bloomberg show. That ratio tumbled to 11.5 by the time Putin first came to power a year later and in 2005, after it touched 6.5 -- less than half what it is now -- the president told the central bank to buy.

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EscapeKey's picture

I thought the Keynesians had redefined history to "anything that's happened since 1971", ie, "US Treasuries have always historically been the safest asset".

Cognitive Dissonance's picture

Yes........they have.

It's different this time. Really!

MillionDollarBonus_'s picture

It just doesn’t matter how many times goldbug and silverbug lemmings get destroyed by a brutal collapse in the gold price or blowtorched by a “junior mining stock” – they always come back for more. Goldbugs and silverbugs show all the symptoms of addiction. They plow their life’s savings into shiny metal and junior mining stocks that just keep falling, and to fill the black hole in their wallets they indulge in fantasies of “financial collapse” and “monetary revolution”. They cling to the ridiculous idea that, simply by “stacking” these shiny bars of metal, they will be one day become kings of the universe. I’m afraid that precious metals cultists are in for a rude awakening. This IS a bubble. The gold market WILL collapse. I can’t say whether it will be a week or two months, but the collapse is coming, and goldbugs better brace themselves for a hair raising shock from which the doomer libertarian community may never recover.

EscapeKey's picture

Well, it's a good thing I recently sold all my gold and invested it all in LinkedIn, Facebook, and Amazon. As you say, gold is clearly a bubble just waiting to pop.

francis_sawyer's picture

Gold is money because it's 'backed' by lead...


MDB [bent over & holding his ankles] is "backed" by Bernanke's 7 inch long 'Hebrew National'...

BaBaBouy's picture

US Has 7 Drones Constantly Tracking Ron Paul !!!

redpill's picture

Tin drones and Chris Dorner comin'

We're finally gonna see

This winter I hear the drummin'

4 dead at L.A.P.D.

BaBaBouy's picture

They Probably already have Dorner at CLUB WATERBOARD, Guantanamo ...

Never to be seen or heard from again...


Ahhhh, isn't it nice to live in the land Of The Free And Brave...


redpill's picture

Buy your own Predator Drone today!**


** Due process not included

kchrisc's picture

I've heard that he may be the drone equivalent of Sandy Hook.

Not sure on that, but Sandy Hook is definitely a false-flag.



Hippocratic Oaf's picture

I think giving him 7 is too much credit.

redpill's picture

Might as well just round to the nearest $20.  They put bank-killer Jackson's pic on there just to piss on his grave.

EscapingProgress's picture

Ya, that was a low blow by the banksters.

eclectic syncretist's picture

Are you shittin' me?  And you didn't buy any Salesforce (CRM), Priceline (PCLN) or Netflix (NFLX)?  You're just not getting diversified there Escape.  

gwar5's picture

From your lips to Robotraders ears.


hmmtellmemore's picture

Actually, Amazon is an amazing company that is basically crushing its online retail competition.  I wouldn't put them in the same sentence as Facebook.

Cognitive Dissonance's picture

I just love it when MDB whispers sweet nothings in my ear.

Say it again MDB, say it again.

DoChenRollingBearing's picture

$million, that's not the kind of thing I am reading from the brand new magazine American Hard Assets, which I just bought at Barnes & Noble Saturday.  That magazine is oriented to us friends of gold...

Whiteshadowmovement's picture

amazing that a magazine whose business it is to sell as many copies as possible, will say things their target audience wants to hear...

forwardho's picture

That Sir is capitalism at work.

+1 for the publisher knowing his target market.


Whiteshadowmovement's picture

Absolutely right- there's a sucker born every minute and two to take him

A Nanny Moose's picture

..and government is there to coerce the transaction. Bobody willfully participates in a transaction which is of no personal benefit. All value is subjective.

Whiteshadowmovement's picture

yeah so true- all value is subjective- like what paying $7 for a magazine (with lots of ads on top of that), whose purpose is to reinforce your confirmation bias, your does for each of us...small wonder most other magazine circulations are declining...

Pegasus Muse's picture

If you're having trouble with the video link above, try this one.  Worked for me:

Are We in a Currency War? Ron Paul on Bloomberg TV

Whiteshadowmovement's picture

At least nobody's trying to charge $7 for it...

NidStyles's picture

Speaking of Confirmation Bias, I rarely if ever see you anywhere but attacking PM supporters...

Whiteshadowmovement's picture

I also told people to buy AAPL at $435. Pms are just where I find myself on the opposite side from most ZH'ers so its the most interesting debate for me...(maybe I am missing something)

moonstears's picture

MDB, will not "goldbug and silverbug lemmings", simply buy more at $1500, and $500, and $300, then? I mean, being "lemmings" and all. 

Nostradamus's picture

You wouldn't know a bubble if it was tickling your nose. 

caconhma's picture


A few years ago, I bought physical gold for $530/oz and now it is $1,650. What is your problem shill?

In one to two years, gold will be well over $3,000. Gold is not for trading unless you are a part of the Central Banking Mafia. It is for having physical and holding it.


Whiteshadowmovement's picture

In all seriousness I am just asking- have you ever considered taking profits, it sounds like youve had a great run?

DoChenRollingBearing's picture

NEVER sell your gold.  GIVE it to your children.

Whiteshadowmovement's picture

This is actually a good point, if you really have this mindset, I think gold makes an excellent generational heirloom

I need more cowbell's picture

You honestly dont get it, do you? Once you exchange your fiat for a tangible good, you have at that point been paid in full ( for whatever labor you performed to acquire said fiat ). If you have more fiat than is necessary at a point in time to buy necessities, you exchange it for gold or some other store of value, for use in the future but only when required. Gold has historically been the most preferred SoV: fungible, transportable, universally coveted, doesn't oxidize, etc. Yes, I know your mindset, you're a trader and gold to you is just another buy low, sell high thingy. For truly wealthy folks, it is not, it is generational wealth, par excellence.

Question: you win a million dollars, but have to wait 10 years to collect ( lousy lottery rules, but at least you won ). You have a choice of any fiat you prefer; dollars; euros; yen, swiss francs to put in the ten year safe, or gold. What do you choose?

Whiteshadowmovement's picture

No I do get it, I happen to think though that within the realm of hard assets, gold may be a medium term (perhaps 10 years as you mentioned) underpeformer. The above poster could theoretically book his 300% profit in gold and put it in another hard asset that has not appreciated quite as fast (land perhaps). And yes I do look it as a trader, so I think even stackers would be better off waiting a good deal longer until the Bernank is through crushing the price rather than just having the same "every dip should be bought mentality" that is no different from equity traders. 

To answer your question: I would really rather put art or antiques (of my choice) in that lottery safe (or even equities of my selection before any of your choices), but if its between those options or losing the prize, then my honest answer would be CHF

fuu's picture

"I would really rather put art or antiques (of my choice) in that lottery safe (or even equities of my selection before any of your choices), but if its between those options or losing the prize, then my honest answer would be CHF"

We call that the Simon Black method.

francis_sawyer's picture

Thanks fuu for finally pointing it out...


Whiteshadowmovement = Simon Black

francis_sawyer's picture

<== I want to hear Simon Black stories all day

<== I'd rather blow my head clean off with a Magnum

espirit's picture

I think I understand what you really mean.

Whiteshadowmovement's picture

I kind of like Simon but I find myself disagreeing with him as often as not. Living and investing in Latin America, i have done a little of both, is not nearly what he makes it out to be, good luck if you ever find yourself in the grip of their court systems! Also, for my taste he is too bearish on the dollar and most of the advice he gives has little practical use.

francis_sawyer's picture

Make sure you 'diversify' into 9 million rand South African vineyards, swiss joobuck francs, & Renoirs to survive the coming apocalypse...


Me?... I'm just trying to acclimate myself to the taste of scorpions [which aren't actually that bad]...

Whiteshadowmovement's picture

Well good luck witht that, but you make it sound like I only recommend the most expensive things on the planet, but Ive also mentioned plenty of things people can buy for less than 20 oz of gold. Anyway, you might not have to eat scorpions if you are willing to consider the idea of '"if you can't beat 'em, join 'em"

fonzannoon's picture

whiteshadow all the people on this thread took their ball and went home, and they are happier that way. You keep ringing their doorbell and yelling for them to come back out and play. They ain't comin back.

Your main point is, hey, the market is a complete and total giant manipulated fraud. But a bunch of people higher up on the food chain who completely and totally don't give a shit about you, are intent on getting you to throw your money at their ponzi....which they have dumped on your head several times maybe you should throw your money into the ponzi again?

That is a tough sell here.

Whiteshadowmovement's picture

Yeah tell me about it fonz, but you know what, the bottom line is really the ponzi didnt collapse and every day we get further away from March 2009, the odds of a near term collapse seem to be going down.

What in my opinion people are missing here is that gold, much as they all would like to think is exempt from this ponzi, is nothing of the sort, its just another button for the Fed to hit.

The truth is fonz, there is no taking your toys and going home, you can leave but the toys stay right where they are. Even these people who have been stacking their phyz will lose purchasing power, unless of course they really do accept it could take a long while to make it back.

Dude there really is a way for people to profit in this casino, and use zh to help them rather than just dig a deeper bunker, if only theyd be willing to
open their eyes and pay attention to how rigged the mearket really is.

Btw fonz, check out AGNCs and MTGEs conference callt from friday, if theres anyone who knows how to make money from the new normal its gary kain

fonzannoon's picture

"Dude there really is a way for people to profit in this casino, and use zh to help them rather than just dig a deeper bunker, if only theyd be willing to
open their eyes and pay attention to how rigged the mearket really is."

This is from the ZH Janet Yellen article just now from Tyler(s).

"And there are those who wonder why we detest "central planned" attempts to attain a fake equilibrium more than anything. Luckily, now that the core driver of economic growth has failed just so a centrally planned administration can get 4 more years of "hope and change" it won't be much longer until the wheels finally and terminaly fall off the centrally panned bus tour."

How do you reconcile those two statements?

Whiteshadowmovement's picture

Very simple, the bottom article is fully accurate except for the "won't be much longer until the wheels finally and terminaly fall off the centrally panned bus tour" which is nothing but wishful thinking. I now understand thats primarily why people come here, not to LEARN about the rigged market, but rather its like those cults where e cult leader predicts the end of the earth but has to adjust it every few years. Except here readers come to hear "tomorrow"

fonzannoon's picture

when everyone has agreed the wheels will absolutely fall off and the only point of contention is when, that does not make the best etrade commercial.

People come here not to learn about a rigged market, they come here to realize the market is rigged. What they do from there is up to them.