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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Whiteshadowmovement's picture

Lol, yeah as I said, once etrade starts taking ebt cards, thats the day the game is over. You knowmy thinking behind the welfare state providing lots and lots more extend and pretend:

PS- fonz, did you happen to see my last comment to you friday?

Hey fonz, this is my over and out, i just want to recommend one more film that came out this year that I would fucking love to recommend to you:

This documentary is a straight masterpiece fonz, its gets uclose and personal with David Siegel (timeshare king) and his family, right as they happen to almost go bankrupt. a great movie because what is so nicely illustrated is that this guy's comically grotesque fortune was built with the same cheap money that he uses to sell timeshares to people that can't afford them. And as soon as 2008 hits, all of a sudden his money spigot is cut off and he barely has the money to keep the lights on in his 20,000
sq. ft house...not to mention finish construction on is 90,000 sq. ft. mausoleum where good taste apparently goes to die. The whole of what this film accomplishes is an unbelievaably deep insight into the American financial system, though it wasnt the films original intent.

Try to check it out bro, if i recommend only 1 movie to you, this might be it:

Fonz, if you dont love this movie, I will buy you all the pizza and pints you want when you end up moving here. Seriously, i really hope youll give it a watch. Its the best movie on the financialmcollapse ive ever seen

fonzannoon's picture

yeah I am planning on checking it out this week. Thanks for throwing it out there.

Whiteshadowmovement's picture

Awesome bro, i am actually really looking forward to hearing what you think, i have a feeling youll love it...

Whiteshadowmovement's picture

Awesome bro, i am actually really looking forward to hearing what you think, i have a feeling youll love it...

In a way it can sum up my whole argument better than i ever could in writing

fuu's picture

wtf would you link to a torrent?

Whiteshadowmovement's picture

God cant you read, im trying to recommend a film to fonz and i included the link to reviews and the torrent where he can dowload it for his convenience

fuu's picture

"the torrent where he can dowload" the copywritten movie from a compromised file sharing site.

Bravo dude.

Whiteshadowmovement's picture

hahaha you cant be serious- copyright infringement? Is this fightclub or are you a high school guidance counsellor? Theres nothing compromised about it, I downloaded the film at the same place (kind of hard to access movies otherwise in certain parts of the world) and hundreds of others without issues...

Whiteshadowmovement's picture

Ps- i do think zh provides plenty of useful articles in helping people see how trade the system, especially when zh exposes how the algos are in control and how things like low volume dont seem to matter

I need more cowbell's picture

Kewl. It takes all kinds to make a world.

Whiteshadowmovement's picture

yeah, i feel the same, nice talking and see you around

I need more cowbell's picture

Gotta love fight club, lol. you get junked on a " see ya round" salutation. Some people.

Whiteshadowmovement's picture

yup, lol, and they did the same again- sometimes it feels more like a middle school playground than fight club...

francis_sawyer's picture

cept when you're around... Then it feels more like a Simon Black travelogue...

JimS's picture

White: I am not sure where you live, but I live in a farming heartland, and the price of farmland has appreciated 3 fold in the last few years. So what was your point with your post? Trading is not something that anyone should do now, just ask the MF Global account holders. Gold/siver, in your hand, is a good value. Period.

Whiteshadowmovement's picture

Jim i know the prices of iowa farmland have tripled for example, but that really isnt true of all hard assets. Good forest land can be had relatively cheaply, as low as $800 per acres in many areas in NA. Ive also had a long discussion on the classic car market (where the appreciation is slower than gold in recent history but much steadier).

Lots of antiques also do well, antique guns for example hold eir value quite well depending on rarity and condition (much like any antique market)

Burr's 2nd Shot's picture

You mean by converting to silver or farmland?

Whiteshadowmovement's picture

Yes, this actually is what I mean (though I would contend silver is much the same bet as gold), or art or antiques or even certain equities (i have a feeling SWHC might very well appreciate faster than gold over the next 6 months)

espirit's picture

I worked with an old Alabama boy that told me 'As long as they still make thutty eight pistols and gas stations, I'll never go back to farmin'.

Also, history is not kind to farmers governed by occupying forces.  That and the fact that you do not really own the land, or that it is a liquid asset.

Jeez, how naive. 

Whiteshadowmovement's picture

Well if thats your mentality, then every square inch of this planet is held by one occupying force or another. You dont own the gold either according to that logic, sure it may be in your possession, but if the whole world is but an occupied planet, its going to be tough for you to do anything except "squat" on the occupiers land and carry your gold around in a briefcase handcuffed to your arm...

Bay of Pigs's picture

WTF are you talking about? You don't seem well informed on gold or silver.

caconhma's picture

I like to put my money in safe places, so, I can have a good night sleep.

Some people are afraid that Obama or any other scumbag might declare that holding gold is illegal. So what? Illegal just because some corrupt politician said so? WOW!

Booze was illegal in 1920s, and people did make good money on it because almost everybody used it. The same with drugs. Yes, they are illegal but people use it.

Only idiots who will giveaway their gold, booze, and guns to the government deserve their fucking misery!

hmmtellmemore's picture

"In one to two years, gold will be well over $3,000."


Look dude, I'm a fan of gold hoarding as well.  But you are wrong.  In reality you will be waiting until 2020 until gold passes $3000.  That is still a decent store of wealth, don't get me wrong.  But I don't want you to delude yourself.

TWSceptic's picture

from which the doomer libertarian community may never recover.


LOL. Despite the sarcasm I still have to junk or the newbies get confused.

LawsofPhysics's picture

Isn't funny how an ounce of either gold or silver still purchases the same amount of just about any given commodity (you know those things you need to survive) as they did almost 100 years ago?  Bubble?  I think not.

narnia's picture

The gold & silver price will collapse in the next great margin call, along with everything else.

LawsofPhysics's picture

Yet, a gram will still be a gram and still have significant purchasing power.  Some things never change.

Hongcha's picture

Yes Narnia and the chart tells the tale.  Smart PM traders, who have been up and down on the roller-coaster dozens of times since $260 oz., have seen this coming.

As always, we read here a mix of positions - traders who get in and out of the paper; and buyers of the hard metal - and both.

For the former, the handwriting was on the wall months ago.  As to the latter, it is a matter of indifference or should be.

You can have both intellectual positions (opinions, if you will) and still be correct.

Right now I would not touch the paper sector; it has fallen out of favor in the beauty contest and has more to fall.

I have my own shoebox collection at home, which I do not even remotely consider breaking out to recount, still less to sell.

No margin, no cry.


larz's picture

HOLY SHIITE MDB!!!! I better start unloading THANKS for saving me from myself - run for CONgress got my vote

Jugdish's picture

What do gay guys like you invest in? Do tell.

lunaticfringe's picture

I realized that MDB has been right all along. I dumped all of my hard assets and junior miners. I bought all kinds of equities and Facebook after someone on CNBC said it was a screaming buy. 

I'm in MDB, thanks to you. Here's to DJ 15000 and more stimulus. Let the good times roll!

LawsofPhysics's picture

So long as you are making predictions, what will a loaf of bread cost when the Dow hits 15K?  That sure is a lot of paper promises you have there...

RebelDevil's picture

Your ignorance astounds me. - Sure "Gold is in a bubble, and it collaspe." .. eventually, that is after bonds collaspe first!

Anyone who's not a dumbass knows this: If you don't have precious metals after the bond bubble pops, you're fucked.

meghaljani's picture

Does US Government give you money to do this?

Watauga's picture

MDB--Okay, "uncle!" I give. For what seems like years on ZH I have defended you as one who uses sarcasm in many of his posts to both make a point and make us laugh.  Well, you have now convinced me I was wrong, and I give.  You still make us laugh, but your point seems way off the mark.  In what universe does all the currency devaluation lead to the collapse of precious metals?  Answer: not this one.   

sgt_doom's picture

Well spoken, MDB, and this entire post reads like a fundamentalist revival of religionist nutcakes!

It's not about the substances behind the currency, IT IS about the hierarchical control of it, the divine right of the banksters and private banksters to create money, i.e., the greatest entitlement program of all time, with untold riches going to those greedheads!

'Nuff said, doom out!

Blue Boat's picture

Watauga, sgt_doom and all you other silly folk that can so easily be baited ---

My money says that Million Dollar Bonus = Tyler Durden .....providing counterpoint to his own articles and having a TON OF FUN watching you (ahem...cough,cough) otherwise intelligent people, fall all over yourselves in sputtering defensiveness.

Cool with me -- I enjoy the entertainment too.

(Tyler, thumbs up!)

orez65's picture

You are a mental retard or a complete shit head.

Brutal collapse? A 15% drop last year but an increase of $1400 per ounce since 2001!

Do you fucking know the definition of money, ass hole?

Read the "warning" on each and every dollar denomination: "This NOTE is legal tender for all debts public and private".

Dollars are PAPER, you shit head, signed by some asshole Federal Government bureaucrat.

Make sure that you save enough of them to wipe the shit off your brain.

caconhma's picture

I wish Ron Paul retire (he can take his Christian Zionist son with him) for good. He is just another "old timer" seeking publicity and a spotlight.

When the time came to be a man, he just “faded away” instead of indorsing independent candidate Johnson.  No, he did not want to upset the GOP establishment. Now, the old man will go for a pay-for-appearance speaking tour.


After all, there is no way to teach an old dog to new tricks.

lotusblue's picture

Paul crackpot he is,really must leave the stage.His fear mongerring,Birchers psychosis has been appealing to weak minds.The simpleton solutions Paul preaches entirely ridiculous when looked upon depthfully!

narnia's picture

If you believe the governments of the world aren't shilling out far too many promises they can't keep, setting up an inevitable global crisis, you are the weak mind.

Shell Game's picture

Channeling Yoda, he is..  

Dipshit Leftists like caconhma and lotusblue will never understand the systemic problems we face. These weaker hands look to boob-tube propaganda for guidance.  In the meantime, they're gonna garmmar, err, grammar the shit out of us.....

Obama4Ever's picture

Testify! I really hoped once Congressman RP was no more we'd never hear from him again. Go gently into that good night, you old goat.

Watauga's picture

Barack Hussein Obama himself.  After all, the moniker is Obama4ever.  And the photo is all Obama.  Surely no human being on this planet, other than Obama himself, would use that moniker or photo.  Any one who did would be, of course, a disciple of his false god.  And that would be, well, just sick.

jonan's picture

personally, 2008-2012 were the years of gold and silver

2013 and beyond will be the years of hollow points and lead...

i pity the fool who hasn't been buying either for the past 5 years...stack and pack bitches...

All Risk No Reward's picture

"Keynesians" don't practice Keynesianism.  That's a false narrative designed to sucker in those with establishment gobemouche tendencies and to fool those who realize it can't work into thinking their paradigm is wrong.

These people are *criminals*.

Their one aim is simply moar for them and less for you.  They want to run the world and treat you like a Dark Ages serf...  or worse.  Remember all those torture devices in the castle basement? 

Easy access.  And guess what kind of world they are re-creating...

These people lie about everything.  How's that "Affordable Care Act" working out for ya?  Oh, yeah, the establishment gobemouches are taking it hard and heavy - the chumps.

The New World Order is easy to define...  they are liars...  Just review history at the Old World Disorder.

These criminals are authoritarian criminals.

Their power exists only because we don't call them out.  I do - almost every time I post.

How come so few others do?  I don't mean, "Bernanke's dumb."

No, he's smarter than you and ripping off your community's face while conning the masses that he's working for the masses.

Bernanke is a front puppet for the Debt Money Tyrants who want to run your impoverished community like "Work is Freedom."

Debt Money Tyranny

Mongo's picture


Age of men is over

Time of thr bankster has come

LasVegasDave's picture

A box of Lake City .308 will fix that