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“They Can’t Print Money Forever” - Ron Paul
“They Can’t Print Money Forever” - Ron Paul
- Former U.S. Congressman blasts Fed’s role in markets
- Gives scathing analysis of modern economics and markets
- Highlights complete disregard of economic fundamentals in investment decisions today
- As will be the case with Greece, U.S. will eventually be forced to liquidate debt
- Attempts to forecast day of reckoning are futile as it is a function of psychology
- “They can’t print money forever”
- Gold and silver will weather and thrive in currency devaluation
Ron Paul, former congressman for Texas, laid plain the absurdity of central policy towards the markets in a recent interview with Amanda Diaz on CNBC. He believes a day of reckoning is in the cards because the central banks “can’t print money forever.”
Dr. Paul blasted the role of the Federal Reserve in markets where superficial pronouncements herd speculators to and fro: "I am utterly amazed at how these Federal Reserve Chairman reports can play havoc with the market: one word - what they say and what they don't say and who's going to interpret it,” he said.
He believes this manipulation of markets by the Fed is having very negative consequences for the economy. Speculators are chasing Fed-induced momentum rather than making investment decisions based on analysis of what is happening in the real world. Savings, once the bedrock of American capitalism, have been replaced by easy credit leading to “a lot of malinvestment and a pyramiding of gigantic debt”, adding, “People don't depend on savings for their capital - they depend on the Fed!”
He states that at some point the financial elites are going to have to admit that Greece’s debt is unpayable and will have to be liquidated. He sees the same thing eventually unfolding in the U.S. also, saying, “there will be an unwinding of this pyramiding of debt and all this malinvestment that has occurred for a good many years.”
The interviewer - abandoning any pretence that the markets are in anyway independent - states, “This is a Fed that has held this market up for quite some time now” and then asks Dr. Paul to indicate when he thinks the crisis will unfold.
He states that it could happen any time - maybe tomorrow, maybe two years from now. “It all depends on a psychological acceptance of this system. So, a lot of people who are still making a lot of money know that it is not going to last but they figure ‘well, everybody else thinks it's going to last…’ and they just keep owning bonds and buying stocks.”
He therefore believes that it is impossible to gauge when the day of reckoning will come.
“So no, I don’t think there is anyway to know what the time is but after thirty five years of a gigantic bull market in bonds: believe me, they cannot reverse history and you cannot print money forever and deceive the markets forever. Eventually, the markets will rule and that’s only a question of when that will happen and of course I’m running a little bit scared because I think there will be a day of reckoning."
In the event of currency devaluations, physical gold and silver - which cannot be printed and devalued by central banks with reckless abandon - will not only survive but thrive.
Must-read guide: 7 Key Gold Must Haves
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,174.60, EUR 1,052.51 and GBP 748.80 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,175.75, EUR 1,048.93 and GBP 744.71 per ounce.
Gold fell $3.20 or 0.27 percent yesterday to $1,174.40 an ounce. Silver climbed $0.07 or 0.44% percent to $15.90 an ounce.
- Gold in U.S. Dollars - 5 Years
Gold in Singapore for immediate delivery was up 0.2 percent to $1,176.80 an ounce.
Gold's move lower is counter intuitive as the poor GDP number, while expected, allied to lower stock markets on continuing Greek concerns should have provided a boost to gold.
It suggests that the gold market is still largely controlled by speculative, fast trading money going long and short and trading the range between $1,150 per ounce and $1,225 per ounce. Passive allocations to physical gold and global physical demand is not impacting prices at this time.
Even the introduction of a gold dinar as currency by the ISIS fanatics has been greeted with a huge yawn as traders hold sway for now.
- Gold in U.S. Dollars - 5 Years
China’s Industrial and Commercial Bank of China (ICBC) is making a move to be part of the London gold price benchmarking process, the bank said during the LBMA bullion market forum.
Only last week, the Bank of China (BOC) became the first Chinese bank to participate in the LBMA Gold Price, which formally replaced the 100 year old London Gold Fix on March 20th.
Standard Chartered and Morgan Stanley will join present members JPMorgan Chase Bank, Scotiabank, HSBC, Société Générale, UBS, Barclays and Goldman Sachs including the two Chinese banks.
The ICE Benchmark Administration (IBA), was established in April 2013 to administer benchmarks, and currently provides the price platform, methodology and overall administration and governance for the LBMA gold price after a price fixing scandal.
Chinese banks are ramping up their commodities business while some western banks are exiting them.
In late morning European trading gold is U.S. dollars is down 0.01 percent at $1,175.23 an ounce. Silver is down 0.30 percent at $15.85 an ounce and platinum is up 0.21 percent at $1,076.44 an ounce.
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"“They Can’t Print Money Forever” - Ron Paul"
The "printed" lucre of Zion's grifting banksters not only is an instrument of plunder, but of tyranny as well.
If the lucre were just "printed" and then spent into our economy and society, the plunder would be confined mostly to prices. However, Zion's plunder comes attached with usury that sustains them, their grifting banksters, and their violence-puppets, government.
It is this form of their plunder, with the necessary service and usury, that feeds their tyranny; pushes their tyranny to greater heights.
Tyranny becomes the turning upside down, and inside out, of the people, and the society, for that next payment. Just one payment more, if even at the cost of a bullet to someone's back, the choking of the life from a recalcitrant, or another slave for the gulags.
Their returns on their "printing" have diminished, but their tyranny is just getting started.
Liberty is a demand. Tyranny is submission..
However, like being caged with a lion, one must kill the lion before the lion becomes too hungry.
The Day of Reckoning will come, no doubt. But in what form? When? What will trigger the debt unwinding?
I'm certain many visitors and contributors to ZH mull over the above questions on a daily basis. Consider history. Consider the drastic steps that have been taken to "kick the can down the road." There are many, but these four indicate what will come next:
Since people, both foreign and domestic, have historically allowed their wealth to be stolen under the pretense of the greater good, perceived short term financial gain, physical force, or naivete, it's clear that next up is cash confiscation.
Since cash has no intrinsic value the entire concept of confiscating "physical" cash and mandating electronic FRN's seems surreal. However, cash is king for transactions hidden from government scrutiny. Gresham's law will follow as cash value will diverge from electronic value. Even now, legal cash transactions provide a discounted cost over check or digital transaction because they can remain outside governments reach. Imagine how much more valuable cash will become once its illegal.
People will trade digital units of a perceived value completely under the watchful eye of government, easily traced, easily taxed, and most importantly, easily diluted. The fed via its treasury puppet can literally push a button and revalue everyone's "digital wealth."
What better way to enslave mankind? We don't even know it's happening.
They will print as long as the currency lasts. Then, it won't make much difference.
Maybe Rand would ask his dad to be his VP running mate!!! We need this guy!!!
Rand's campaign will ask whomever will get Rand the most votes to be hip VP. Rand already has Ron's votes. Besides, the VP does nothing except maintain a backup heart beat. Albiet, it would be pretty interesting to see public's reaction.
I am starting to wonder: "Why not"?
Fuck {government Liars}
the central issue in printing money is who gets it. the first round went to the banks who bought stocks and kept the pension funds going, and you can tap your 401k and buy a new big screen tv. now the banks have theirs its time to print money and give it directly to consumers. now is not a good time to chop down the money tree.
I would have preferred to see the gold chart going back to 1980 ... or 1971.
yes we can
Change we can believe in!
Hoax and Chains
**** BUT ****
The central banks CAN and WILL print money for FAR FAR FAR longer than you can survive in retirement without fair and reasonable interest rate return on your lifetime EARNED savings.
this guru enlightened me to real economics and monetary policy, I am forever in his debt...which is the reason I am voting for his son.
The son is NOT the father and Presidents are selected, not elected...save a trip to the booth. Local and state elections may have some meaning or purpose, but not at the national. Who spends 150 million for a job that pays 150K?
Sure, but in America it has been more than 100 years and counting...
Ultimately I believe this debt is not owned by the American people and will be used to bankrupt the FED and all of the big banks in the U.S. and Europe as well.
Otherwise we will have to change the name of this planet from Earth to Hell.
Hope you are correct and that would take divine authority and action to accomplish.
The piles of shit just keep getting so huge, you can't keep moving them from stall to stall pretending the barn is clean..
… they’re gonna TRY !
And if they can get it to last 30-40 years,
NO ONE will complain!
(They promise they’ll only do it till they need glasses!)
They'll keep printing till it all falls apart, then they'll run like hell. Our lords and masters won't hang around for the implosian because they won't want a free haircut or neck stretching....
Exactly!
Why would they do anything different? Keep the party going as long as you can - and there does NOT seem to be any real limit, so why not? Anything else would be irrational.
"forever" for me is until I die, which can be anytime.
Forever is the eternal state; the state that is absent of time, which time is a created thing by the very One who created all of us. When you die and enter the eternal state; it will be very good or very bad depending if you are reconciled to the Creator (Jesus), thus "forgiven" by love and grace. The alternative is to enter the eternal state unreconciled and that will make your worse day here seem like a party.
yeah sure, if you say so. I guess god told you that himself while you were drunk.