We had a chance to attend the NY Metals & Minerals Investment Conference recently at the Marriott Marquis in Times Square. The esteemed Dr. Ron Paul gave a keynote to this audience of mainly investors and executives about some topics very close to his heart.
He began the talk by recalling a conversation with the Federal Reserve then-governor Ben Bernanke.
Dr. Paul: Is gold money?
Dr. Paul: Then why do central banks hold so much of it?
Bernanke … (blank stare)
Incredulous? So is Dr. Paul, it seems. This is the type of dodging he expects from a central banker. Ron Paul has long argued that we should get rid of the Fed. When Bretton Woods broke down in 1971 (effectively terminating the US dollar’s convertibility to gold), the price of gold skyrocketed shortly thereafter. Since then, there has been a relentless expansion of the money supply in the US. In fact, it’s followed an almost perfect exponential curve!
Furthermore, Dr. Paul believes that the Fed’s wholehearted embrace of Keynesian Economics has set us on a path of unchecked spending that lined the pockets of the legislators and companies that directly benefit from the Military-Industrial Complex, but has bankrupted our country in the process.
“Our country went bankrupt and they haven’t admitted it”
As Dr. Paul says, people continue to take our dollars, but that will end, and probably soon. The CPI shows no inflation, but that metric masks a difficult truth that nobody seems ready to face.
He is also gravely concerned with the erosion of civil liberties over the past several years. In fact, it was his #1 concern when he left congress. Dr. Paul believes that protecting liberty and protecting your financial assets are one and the same. Ron Paul pushed for an audit of Fort Knox, but was never able to get it through congress. He strongly suspects that all the gold they say is there is not. He points to a case in which the Germans asked for their gold back and didn’t get it. And even if the gold is physically there, what’s to say it hasn’t been pledged to fund the government’s historic budget deficits we saw in the wake of the 2008 financial crisis?
When wrapping up this hour-long talk, Dr. Paul left the audience with one final thought:
“You should be buying the gold and holding the gold. It’s meant to be in the hands of the people.”