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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BeerBrewer09's picture

For most people with a little bit of discretionary income to spare it will be:

"I wish I bought more silver when it was hanging out around $30"

disabledvet's picture

I think the question that needs to be asked of the Professor is "are you leveraging your gold and (since obviously this is true) what are you buying with it?" I'm sorry but I'd don't believe this guy either. The history books are pretty clear what the relationship of "bank to politician" is...and with the price falling and Venezuela not getting hyper-inflated I think the fact that we live in an inherently corrupt system "and there's no way out" must be called (our bullshit) reality. I mean "stop those banks before they..." what again? Provide liquidity for your Big Government Program? "Start a war somewhere." call me names..."just don't call me wrong."

gwar5's picture

Oh yeah. Sinclair is screaming $3500 and beyond, and QBAMCO's shadow price/oz is now $15,000/oz based on the ignored Bretton Woods formula. Note: I went to a gun show last month and found some tables were selling gold coin at good prices (2% over spot), no minimum. 




DoChenRollingBearing's picture

FOFOA says $55,000.


Re guns, about two years ago I bought a "Saiga" (Russian-American) AK-47 for $900 and something.  Last time I was at the range, one of the employees there asked to look at it when I was paying for range time.  I had bought the gun at that same store.  He then looked in his computer, and said the Saiga AK now retails for $2900!  Better than any of my other investments, including gold.

Kavklov's picture

HAve you guys seen this?


In the Money, Federal Reserve, World Banks Foreclosed On

asteroids's picture

The "money printers" that are generating all the debt refuse to answer two simple questions. Who will repay all this debt, and When will they do it. These theifs have totally embrased moral hazard and have no answer.

EscapeKey's picture

... not forgetting:

3. Who owns the Federal Reserve?

Never One Roach's picture

"Gold Is Always Money, Paper Money Fails


Did the good Doctor just say that?

Silveramada's picture

hhhm silver at 31$ today is not a bad idea...

dick cheneys ghost's picture

Bought some this weekend with my Rothschild Plantation Script...........

Clint Liquor's picture

Ron is right about a Gold Standard it is unworkable. What the 'People' need is convertability. Make it so every bank has to accept or supply soveriegn Gold and Silver coins at the current price. Competition for Fiat.

TeddyBear's picture



Yes buddy,

Bubba Retail will buy hi and sell low.

Do you work for a bank?

If they do, buy bank stock:)

falak pema's picture

oh the Ron PAul Midas touch! 

You'd think that'll make gold spike?

JLee2027's picture

She of the hidden equipment under the dress trick:


ShrNfr's picture

Actually, John Law of the Mississippi Company pushed silver.

r101958's picture

Notice how Bloomberg continually alternates showing the gold price (down) and the dollar index (up) right underneath Ron Paul while he is speaking. Yeah, I believe that is just coincidence.

Quinvarius's picture

No wonder the bankers are trying to get people to sell today.  Ron Paul and Eric Sprott scared the bejeesus out of them with some simple facts.  But to no avail.  Take your pick:

Its on again.

Aegelis's picture

They are very different than sound people and different than the Austrian economists, rather than "...they are very different then sound people and different then the Austrian economists." .  Bearish on proofreaders.

TeddyBear's picture



He said the same thing 20 years ago.

Broken clock$$$$$$

I am back in DDD, You should too..

My AAPL is on fire.

My TZA buy is green, Chart looks like a few months of up, I hope not.

It was the Regantard that started all this spending, Look up a chart.

When everyone says buy gold it is time to sell to them. Right?

$700.00 - $1200.00 rebuy.


Quinvarius's picture

The Fed balance sheet is currently backed by US gold at 15%.  That is as low as it ever gets.  In a year, when the Fed balance sheet hits 3.8 trillion, or higher, the 15% mark will be $2150.  Gold is as cheap as it has ever been here and now.  In 2007, during the height of the housing bubble, the Fed balance sheet was 25% backed by gold.

smiler03's picture

I thought the concensus on ZH was that the claim to 8000+ tons of gold is a bit dubious? 

Whiteshadowmovement's picture

+1 sometimes its as though people would really rather be right than make money. There is no question of AAPL not being ramped back to $600, its beyond doubt, its just too systemically important. Who doesnt want to make the easiest 25% ever?

Shell Game's picture

Hey look! There's a dime over there in front of that steam-roller, hurry!

Dr. Engali's picture

Some people like to make money and be right at the same time. Myself I like to make money where I can and then take the house money to buy precious metals.

Whiteshadowmovement's picture

I am with you 100% doc, we just differ on which hard assets are the best for converting your play money into after you cash your chips from the casino

jimmyjames's picture

When everyone says buy gold it is time to sell to them. Right?


Another completly dumb fuck-

Sigep0612's picture

We live in a debt fueled false prosperity.   It is compounded by central banks all over the globe manipulating the price of precious metals to retain the value of their currency.   Ask yourself....why does JPMorgan hedge gold and silver?  What purpose would it serve?  After all, it's such a small market, there is only 1% of the people on the planet that own gold and silver. Why has Germany ordered the return of their gold holdings from the US & London?    Why has China become a major purchaser of gold when they are already the world's largest producer?   Why has China forbidden anyone from removing gold outside their boundaries?   Is it because we're in a bubble?   I doubt it.   Banks suppress the price of gold because they know that if gold gains momentum, their currency becomes worth less.  Do you really believe what the medai peddles....things are going great?  Why has shipping containers declined world wide?  What are there  fewer trucks on the road delivering products?  Because things are going great ?  Gold and silver need to drop because the media tells us so.  Wait until 2014 when Obamacare kicks in and America really gets to understand "what's in it."  That enough is reason for gold to hit $2000 an oz.

There is no resolution to US binge spending.  Especially, when the President tells the world "we don't have a spending problem."  No one wants any financial pain which mandates more central bank printing.  Gold is heading north.  Buy.        


Confundido's picture

This post seems like a desperate act for all of us who try to see through the darkness of this manipulation on gold. Since 2011, the cartel has made sure that investing in gold be simply an act of faith. Buying a coin is a leap of faith. They want to destroy your morale, laugh at you and your crazy conspiracy stories. The problem is that if they lose, the pain will be even bigger, because they will shift from manipulation to outright confiscation. It is going to be a long, long battle...

Whiteshadowmovement's picture

how do you think the battle is going?

jimmyjames's picture

how do you think the battle is going?


You got none huh-

How does it look like its been going?

Whiteshadowmovement's picture

Haha, that chart is hilariously out of date, your 12 month returns are clearly negative but the chart shows a profit.

And as we know from reverse analysis, all bubbles last forever...

jimmyjames's picture

And as we know from reverse analysis, all bubbles last forever...


Yes..real bubble characteristics-

 btw... forgot to add--gold was trading Feb 2012 at a low of 1607 today it's trading 1640--so clearly you're full of shit about 12 month negative-

Whiteshadowmovement's picture

In the first place, I have never put much stock in sentiment indicators as they arent really useful in real life. But since its the second time youve shown me the same chart, mind telling me what actually goes into Hulberts sentiment indicators (ie what metrics does he use to actually guage this)


jimmyjames's picture

But since its the second time youve shown me the same chart,

 mind telling me what actually goes into Hulberts sentiment indicators (ie what metrics does he use to actually guage this)


If you had been paying attention-you would see these are not Hulburt indicators-in fact--I've never posted them before-

2nd--Hulburt uses long vs short position recomendation data from major fund managers-

3rd--open this click on monthly and draw a trend line from Feb 2012 low to today--

Whiteshadowmovement's picture

Dude youre trying to spin that a little bit, 12 months is 12 months, period. Not from that low... Besides, we still havent stopped declining, so if you wanna wait till the end of the month we can compare lows, but the point is if you had bought gold exactly 1 year ago today, then your position would be down. If we can cherry pick dates then I will go with 1990, when gold made a high of $424 and 1998, when gold made a high of $308.

Actually the first time you did post Hulburt indicators (check your original post), but maybe i didnt look closely and this time you posted some other sentiment indicator. In any case, sorry I dont really put much stock in sentiment indicators overall, its no more useful than put/call macd or any other T/A analysis.

jimmyjames's picture

 In any case, sorry I dont really put much stock in sentiment indicators overall, its no more useful than put/call macd or any other T/A analysis.


Yes you've ignored the technicals--you've ignored the fundamentals--you've ignored the "facts" ie: "price"

So--you've missed the biggest gains--gold isn't as cheap as it once was-but you...calling the just pure bullshit jealousy--

Gold was in a bear market for 20 years--how many bulls got there head handed to them after calling the bottom 10 years in?

You have no fucken idea about where the top will be..and neither do i--or any other goldbug...but..if we were capable of buying the bottom..i suspect we'll know when the top is in--

Edit--btw--it was you who first used 12 months as a referance..not me-

Whiteshadowmovement's picture

Dude calm down, my thesis on gold is the Bernank slamming it, not technicals or fundamentals. In my opinion the gold market is determined 100% by psychology, and if the Bernank succeeds in turning it against it, then technicals and fundamentals wont matter. It depends on how you look at it- is gold really driven by marlet forces and for the Bernanks total control of markets. So im not calling a top for technical reasons, im calling it because im trying to think like the Bernank and expect him to continue slamming gold the way he has been,

Also, as Ive mentioned a couple of times, i actually own some phyz (which I inherited so youd have to gp back to the 60's to find out what my grandfather paid) and im not jealous of anybody, im very happy with the returns i make in equities. But even though i own gold, i just dont see it appreciating further.

Lastly, no it was you who brought up 12 mons by purporting to show me an out of date chart wheirein gold was a supposed outperformer over 12 months, when it reality it declined over 12 months, as we have more than established now.

jimmyjames's picture

Do you really believe Bernanke/central planners are more powerful than the market--what a laugh-

That first chart i showed you was 20-15-5 and 12 month returns--ending 2011--i showed you feb 2012 to feb 2013 that gold has "at this point" not "crashed" but has in fact been drifting sideways and is in fact up slightly over that time frame-

You have established absoulutly zero-

I know you won't show up here-when this turns against you BS "theory"

jomama's picture

just in time for the weekly PM smackdown!

CDNX fan's picture

The problem is that most mutts buy gold with money expected to be returned to money over a short time period. They are not savers or investors; they are money-changers and should be thrown from the temple. In the short run, I see gold crashing to $1350 so that I may convert an even greater amount of paper and for the saver/investor, that is a very good thing. Sell that which is "dear" (cash,currencies, bonds) to own that which is "cheap" (gold,silver, farmland, energy). Makes sense as long as your monthly bills are paid from non-gold/silver sources.

Confundido's picture

I know my name is confundido, but help me out here: If I bought an ounce at $600 and saw it all the way up to $1,900 and now is at $1,645, then I lost the opportunity of getting out $255/oz ago, right?

If I bought the ounce at $1750/oz, then I am $105/oz down, right?

Who is really mocking whom?

Not Too Important's picture

PM's aren't for day traders. You'd be better off buying the single malt market and drinking your profits.

Silversinner's picture

Altough I am not American I always love to listen

to Ron Paul.This man is so incredible wise and

I never ever saw I politition whom can stand in

this man shadow.Next to him they all look like

complete morons.Honesty and integrety,how

rare these days.

overmedicatedundersexed's picture

joe paterno did all he could, same with ron - although in ron's defense he did not want his family or himself have a dallas morning.

Venerability's picture

Chinese off all week for Lunar New Year's. And another three Treasury Note auction week.

In other words, All Is By Rote yet again.

"Coordinated worldwide devaluation" if such DOES occur is extraordinarily Bullish for Gold and Silver, not the opposite, as everyone sentient actually understands, do we not?

And the Biggest Story - in terms of Technical Analysis of Propaganda - is that about ten days ago, The Bird was summarily "Report Abused" entirely by Script Bots at Seeking Alpha, a la the long-time Yahoo Finance nonsense, and is still being "moderated," which effectively means Unable to Post.

Said Moderator of the PM, Commodities, and Currencies groups at SA is a 27 year old, whose only prior experience was in "advertising" - and not much of that! - and who one believes is the younger brother of a young lady utilized fairly often at CNBC to loudly proclaim the Anti-Gold Script.

The above is all so silly, it is so silly - and banal - and filthy - and childish - and proof positive that not only has nothing changed, the DOGs are literally quaking in their itty bitty shoes like mewling puppies. 


Hongcha's picture

You will be just fine if your metal is fully paid for and hidden away.  Otherwise, you are in for more pain.

Venerability's picture

I don't trade bullion, thank you. (Nor do I trade BOO's.)

And you're advised to tell your little buddies at AmDocs that they are only harming themselves.

Turn SA into Yahoo Finance, and it gets just as much respect as Yahoo Finance - which is to say NONE!

There are many, many more Market Participants now on The Bird's side than the DOGs' side, now that the average age of an active Prop Desk DOG is under 25, while the average age of active Market Participants is now about 52.

I'm absolutely correct about this and have been for some time.

By creating thinner and thinner Markets, you've been INCREASING this skew and this "generation gap."

It is very, very dangerous for the health of the financial services industry - not to mention the hedge fund industry.

I think more and more Influential Ones within the industry are coming to agree with me. But the financial media is as per usual still behind.

They'll improve. Because now they have to.

Joe moneybags's picture

Pioneer Joe goes to his bank and asks for a loan to buy a plow for a new farm, which he dreams of creating from the Midwestern wilderness. His hard-money banker says "Sorry, I don't have any gold in my vault to back another loan." Joe just keeps his job as a farm worker for someone else.

Pioneer Bob goes to his wildcat bank, who makes up credit out of thin air, and gives him a loan.  And the wildcat bank get repaid from Bob Evans hard work, and westward expansion continues.  Eventually, the wildcat bank screws up and gets gobbled up by lawyers, money is stolen from duped depositors, but by now Bob Evans Farm products are sold nation wide, people have jobs, and nobody cares about the security of the original credit.

That's how fiat works: imperfectly and sometimes unfairly.  And, Ironically, in his old age, Bob becomes a stacker, and a lurker on ZH.