In a 13-minute interview on CNBC’s Squawk Box last week, Congressman Ron Paul stated one phrase that really stuck out at around 4:50:
“Gold is money. Gold measures the value of currencies. And right now gold is telling us, in spite of the fact that the gold price is rigged by central banks and various entities, gold is telling us that the dollar is in danger – great danger!! We’re in worse shape then we were in the 70′s, and it was rather chaotic then. So we’re moving into a very dangerous era according to what the gold price is telling us.”
What does Congressman Paul mean? Now, I certainly cannot speak for him, but I am re-posting below my July 2009 article “The Summers Gold Price Suppression Scheme.” Another recent, well-document essay is GATA’s Chris Powell’s speech “Gold Suppression is Public Policy and Public Record.” Be sure to check out my reference to rarely-discussed London Gold Pool of the 1960s, we are living through its modern equivalent currently. Take a look, decide for yourself, and leave any questions you may have below. Read More »
by John Browne – Senior Market Strategist, Euro Pacific Capital
Over past years, we at Euro Pacific have taken an increasingly jaundiced view of paper currencies and written repeatedly about gold as an alternative. Along the way, we have urged investors to consider both the security and physical accessibility of their gold investments, and have advocated for at least some holdings to be in physical form. There are those who may have felt our views were overly cautious, even alarmist. Now, however, it is increasingly clear that major investors, including even central banks, are following our advice. Meanwhile, we continue to set the curve by calling for an even greater share of investors’ portfolios to be in physical bullion or secure equivalents.
Despite the trials Western economies have already experienced, worse economic times still lie ahead. The current administration appears unable to accept the pain of deleveraging and has instead set upon a course of limitless public-sector spending, financed by increased taxation, deficits, and the covert debasement of the U.S. dollar. Obama’s acolytes haven’t acknowledged the threat that their policies could cause the dollar to lose its privileged position as the world’s reserve currency, which would devastate the relative value of the U.S. dollar and many paper investments denominated in dollars, including Treasuries. Indeed, it would likely trigger a second financial collapse, this time with accompanying hyperinflation.
To protect their wealth from inflation and financial panic, big players like hedge funds, sovereign wealth funds, and central banks are turning not just to gold, but to physical gold.
Many investors are demanding and prepared to pay for physical delivery. This indicates an intention to remain invested for a significant period of time, removing considerable selling pressure from the market. More concerning, the willingness to finance physical delivery and storage indicates a fundamental decline in the credibility of paper contracts.
For centuries, gold has been the bane of profligate governments. For decades, Western governments, led by the U.S., have sought to demonetize the ‘embarrassing’ metal. Most recently, the U.S. led other central banks into the secretive Central Bank Gold Agreements (CBGA). These were designed to coordinate, through the IMF, the sale of some 500 metric tonnes of central bank gold into the market each year. The covert aim has been to make gold less attractive by concealing its appreciation and, simultaneously, create maximum price volatility to destroy gold’s legitimacy as a monetary instrument.
Ron Paul took his anti-Fed, anti-regulatory, pro-transparency message to the CNBC Squawk Box crew today. This is another winning appearance from Ron Paul. He outlines his views fairly well and makes extremely good arguments for his side of the Fed transparency debate.
His appearance was so positive that they end up telling him that he should come on the show as a special guest (as they have from time to time) for the full 2 hours of the show. Paul makes a joke in response. Check it out below.
Yesterday I gave a fast-paced lecture on constitutional money and the Federal Reserve to the Lehigh Valley Tea Party. The playlist can be found below, and the PDF of the presentation here. I am also available to present this material at a much slower rate, with plenty of time for Q&A to groups. Monetary economics is very crucial to understand as it underlies EVERYTHING that is going on with the economy.
Here’s what I wrote in my letter to Congress . . .
Several countries are making plans to stop using Federal Reserve Notes for oil purchases. I want the same freedom for my personal transactions.
The Fed has nearly doubled the money supply since last Fall. This will cut the future value of my savings in half and send my cost of living through the roof. Add to that . . .
* The $100 trillion in unfunded liabilities for Social Security and Medicare
* Your big bailout schemes,
* Your so-called stimulus package,
* Your cap and trade boondoggle,
* Your disastrous healthcare plans, and the result is . . .
I see no hope for the dollar. You guys have ruined our currency, and I WANT OUT.
If foreigners can stop using Federal Reserve Notes, I should have the same freedom. Why should foreigners have more right to control their own economic destiny than I do?
Many in Washington claim they want to protect the Fed’s independence. What about my independence? I just want you to repeal the legal tender law so I can use forms of money other than Federal Reserve Notes (like gold and silver for instance). Doing this would also moderate the Fed’s behavior. If they want me to keep using Federal Reserve Notes then they’ll have to stop their legalized counterfeiting activities.
Please represent me. Break the Federal Reserve’s money monopoly. Give me the same right that foreigners have.
Slides 4-36 of the below presentation have been presented to several groups around the district for educational purposes. Although you are missing my critical narrative and explanations, I invite you to take a look. If you do disagree or find something new, check my sourcing and citations.
While the hour-long presentation is of course only a snapshot, or a look at the critical pieces of puzzle, I emphasize the importance of the gold market, and view the housing crisis as merely a symptom of the causes – excess FED inflation and artificially low interest rates that were held too low for too long. The irony is not lost that currently the FED interest rates is roughly 0.15%, far lower than previously. In the interests of time and for simplicity, I omitted the Treasury market almost entirely – just a brief mention in the slide on the national debt. The Treasury market is definitely also quite critical.
As part of the New Deal, Franklin D. Roosevelt confiscated all privately-owned gold and made it illegal to own the shiny metal, and fixed its price. Jim Powell of the Future of Freedom Foundation goes through the history of the disastrous actions taken by FDR and the aftermath.
Roosevelt understood that he must apply the full force of federal power to suppress the natural desire for gold in troubled times. The Emergency Banking Act, signed into law March 9, amended the Federal Reserve Act by adding a new subsection (n), which empowered the secretary of the Treasury to demand that all Americans surrender their gold and receive paper money. The following day, Roosevelt issued Executive Order 6073, which made it illegal for Americans to take gold out of the country.
In his first “fireside chat,” delivered on March 12, Roosevelt didn’t say a word about his backstage maneuvering to seize gold. He remarked that “hoarding during the past week has become an exceedingly unfashionable pastime.”
Less than a month later, on April 5, 1933, Roosevelt issued Executive Order 6012, which expropriated privately owned gold. He ordered Americans to surrender their gold to the government by May 1, 1933. Violators would be subject to a $10,000 fine or as many as 10 years in prison.
Ron Paul was interviewed on the Jason Lewis Show by guest host Rod Grams this evening. They talked for about 16 minutes and covered several topics but in the end focused on auditing and potentially ending the Federal Reserve.
Paul specifically discusses why he doesn’t think the way to get HR1207 to a House vote is through a discharge petition. He suggests continuing to drum up grassroots support for HR1207 is the best method.
Grams allowed Ron Paul to speak until he was done on each topic. He even pointed out that his niece convinced him that Paul was a great candidate during the 2008 election.
Listen to the interview in it’s entirety below.
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
Most of the public is still unaware of that the gold price is currently suppressed by governments and central banks in collusion with bullion dealers. Even fewer realize that suppression of the price of gold has plenty of historical precedence. The following is the story of the London Gold Pool.
by Jake Towne, the Champion of the Constitution Originally published on Sunday, June 14, 2009 at http://www.nolanchart.com/article6535.html
“When gold speaks, all tongues are silent.” – Italian proverb
This article will briefly review the history and aftermath of the infamous London Gold Pool. For those unfamiliar with monetary history, let me quickly establish the events framing the London Gold Pool.
In 1933, the FED’s monetary inflation caused the Great Depression which was also America’s first bankruptcy. FDR plundered the American people’s gold and one month later outlawed the private possession of gold, an illegal act that existed until 1975. From 1933 onwards, America was on a “gold bullion standard.” A “gold bullion standard” exists when gold coins are not minted and owned by the people, but large international transactions with foreigners are handled in gold bar. However, the FED, America’s central bank, continued inflating the monetary supply which debases the currency and likewise increases the foreigner’s redemption of gold. (emblem)
“What can I do to protect my family?” – Arthur Burns, Federal Reserve Chairman, 1978
by Jake Towne, the Champion of the Constitution Originally published Sunday, May 17, 2009 at http://www.nolanchart.com/article6430.html
The following is a message from Alan Greenspan’s “vaunted Federal Reserve” to the “Average Man.” (Hat-tip to LeMetropoleCafe.com for the lead.) (photo)
On January 17th, 1978, Federal Reserve Chairman Arthur Burns stated from the meeting transcript (emphasis mine):
“You know, the American public, in contrast to some or many of our politicians–perhaps most of them–is very deeply concerned about inflation. People all over the country have been asking themselves the question:
“The average man is also capable of judging neighborhoods. All he has to do is get into an automobile or walk and he can locate areas where the prospect of maintaining good conditions in the neighborhood or some improvement are pretty good over the next ten years or twenty years. People can do that. And they’re doing it in increasing numbers. It’s surprising to me. I hear it from college professors; I hear it from young people; I hear it from my own children.”
“What can I do to protect my family? What can I do to protect my children, my family, and myself against the ravages of inflation? And gradually the thought has evolved and is spreading rapidly that, on the negative side, putting money in the bank or a savings and loan account is no protection.
“What will he turn to? Well, there is farm real estate, a remarkable record there. But the average man doesn’t know how to buy farm real estate. He realizes that location can make an enormous difference. But there’s one thing the average man is capable of doing. If he doesn’t have a home, he can buy a home. If he already has a home, he can buy another.
“Buying bonds, Treasury bonds or corporate bonds, is no protection. Buying common stocks is no protection. It used to be a major protection but it no longer is.
“Then what is left? Well, gold or paintings. But the average man cannot invest in gold; he doesn’t know how. It’s not something he’s accustomed to. Likewise with paintings.
Liberty Maven
by John Browne – Senior Market Strategist, Euro Pacific Capital
Loading ...
