Ron Paul | ¿Colapsará el Dólar Americano?

thank you for joining us i'm jared kelly here with 12 term congressman three-time presidential candidate Ron Paul with an urgent warning he's sharing exclusively right here for all Americans who are watching this regardless of political party dr. Paul it's an honor to have you with us sir it's my pleasure Jaron well let's get right to it you believe our country is on the cusp of a massive financial crisis just how bad are you predicting the crisis will be I think it's going to be very bad I think it will probably be worse than our Great Depression I think it would be worse than the crisis that we had in 2008 and 2009 and I'm going to talk very specifically about the steps you should take to protect yourself in short I believe we as a nation are on the brink of a massive financial crisis infinitely worse than the crisis of 2008 and that's because it won't be a banking and mortgage problem but a full-blown currency crisis the likes of which we've never experienced in this country the savings of millions of people could be wiped out overnight the stock market crash by 50% or more the way of life we've enjoyed as Americans for 50 years could come to an end it's not a question of if this will happen but when so why now why are you speaking out about this prediction today I'll tell you why because most Americans don't have a clue about what's going on most people have no idea that in the past six years we've created four trillion dollars of new money out of thin air at the same time since 2006 we've doubled our national debt I've said hundreds of times throughout my career in the house prosperity cannot be created out of thin air by a central bank the people running our country today are living a fantasy world and if you're not careful you and millions of other everyday Americans will pay the price the doctor Paul who you think will be the biggest impact of this crisis well sooner than most people think I predict we'll see people losing confidence in the US dollar as a simple result of investors around the world realizing our currency is no longer the safe haven it once was and you cannot restore confidence with more paper money and when the currency collapses nearly everything else goes with it stocks bonds commodities you name it when you destroy a currency you can destroy the entire economy you can destroy the whole nation the middle class gets wiped out the way you live work travel and retire and invest in America everything is going to change some of it in ways most people can't even imagine so essentially you're predicting the entire US financial system will collapse as someone who spent 22 years in Congress what do you think will be the immediate impact on the federal government well I'm fearful of a collapse Jared for one thing it makes it a lot harder for our government to borrow money and pay interest on all the debt we've racked up or to expand the welfare state or to station' the US military in 140 countries but forget the government the real concern is what happens to everyday Americans especially the middle class also well for the everyday American if the government's broke all your wealth all your savings will be put in jeopardy we'll see massive changes in our retirement system and Social Security I wouldn't be surprised at all to see the government take over people's 401ks and IRAs and why is that because doing that would essentially force people to buy worthless government bonds whereas investors in the free market wouldn't touch them in fact I think we're likely to see huge tax increases and even a wealth tax a fee on all your savings and valuable assets can you explain further about what you mean by a wealth tax absolutely anything is possible it's only going to get worse when this currency crisis hits the government's number-one priority will be to control the existing supply of capital we'll see all kinds of new laws and rules about what you can do with your money where you can put it where you can move it and of course we'll see a massive inflation when all those trillions and trillions of newly printed dollars make their way into the economy because we can barely find the answer our debt right now so you can imagine what it's going to be like when interest rates go up half a percent or 1% or 2% the ball game is over it's going to be especially rough on seniors or anyone who relies on the government for an income but even if inflation is that really the main worry I mean we've had inflation before back in the 70s well for starters it'll lead to a total breakdown of the stock market imagine 2008 Black Monday and even the crash of 29 all happening in a single day the middle class will be wiped out but you're right in a certain sense what really worries the isn't necessary a stock market crash the real killer will be the effect of all deaths on our society and our liberties but we have to have an understanding about how important personal liberty is because it is connected to our prosperity we were the most prosperous country in the world mainly because we had the most Liberty but now we've lost our Liberty and guess what our prosperity is being threatened you mean unemployment no it goes deeper than that when you destroy a nation's currency you destroyed businesses you destroy friendships and Families faith in money is critical to a free society without it you can forget about businesses and commerce and you can forget about any sense of normalcy people won't have any clue what to do when there's a line around the block just to access the ATM or when the banks start shutting down they won't have any idea what to do when stores stops accepting dollars as payment or when no one's willing to make a loan anymore so you're predicting social unrest definitely I think we'll see problems in the big cities especially in fact we're already seeing the beginnings of that Ferguson the riots in New York and Detroit what it comes down to is that people are going to be very very unhappy when they turn on the TV one morning and hear that their life savings is suddenly worth a fraction of its former value if investors around the world lose confidence in the US dollar the prosperity we've enjoyed since World War two will essentially cease to exist our governments on both the federal and state level could temporarily shut down businesses will close their doors the price of things like milk and bread could skyrocket government created it how can you depend on the federal reserve to solve this problem when they are the culprit who brought about the bubble and brought about the crash the US dollar is built entirely on confidence if that confidence dissolves so does everything else and that's the weakness of paper money right you see governments have the power to declare paper to be legal tender but they do not have power to give that money value and this is something the politicians won't tell you they've all been taught bad economic laws I don't think they're bad people I think I guess another term that is not as generous but they're just ignorant of good sound economic I know because I spent 12 terms in Congress fighting the people who control our monetary system in fact the threat of a currency crisis is would first journey back into politics back in the 70s when President Nixon took the u.s. dollar off the gold standard in 1971 you became a Republican candidate for Congress he served on the House Banking Committee where you blame the Federal Reserve for inflation and railed against banking mismanagement as the cause of the savings and loan crisis that's correct the Federal Reserve should be abolished the average American doesn't have a clue just how dangerous and corrupt the Federal Reserve System really is today we've essentially embarked on an out of control experiment with our currency printing absurd amounts of money out of thin air and borrowing so much that we can never ever hope to pay back our creditors you realize it took our nation 216 years to rack up eight point five trillion dollars in debt than just eight more years to double that amount well let me ask you this you served on the House Banking Committee the Committee on Foreign Affairs and you sponsored over 600 legislative bills why aren't you back on Capitol Hill trying to spread your message from a congressional office because I'm finished with Congress for me this has nothing to do with politics or fundraising it's the biggest financial story of my life which I've been tracking my entire career and now that it's finally here on our doorstep I just want to warn as many people as possible the simple fact is the more people who prepare themselves the better off we're all going to be the fewer people relying on the government to fix this problem the stronger our country will turn out in the long run because believe me the government won't be able to do a single thing about this crisis remain the other ones who caused it and remember this too by the time we see a full-blown currency crisis it'll be too late for you to protect yourself the government won't warn you or save you and I say that as someone who's met with every US president for the past 40 years in every Fed Chairman I remember I once rode alongside President Reagan on his helicopter Marine one the subject of what's happening to our money came up and he told me he said Ron no great nation that abandoned the gold standard has ever remained a great nation I also confronted Alan Greenspan about this and he told me he still stands by his original thesis which was published decades ago he wrote in the absence of the gold standard there is no way to protect savings from confiscation through inflation there is no safe store of value but you're through with Washington now yes my years of fighting in Washington are over I don't work in Congress anymore and I'm not making any more runs for the presidency and that's why today all I can do is spread this public message right here right now for anyone who's watching and explain exactly how I believe you should protect yourself and get prepared in fact you're recommending an entire blueprint of steps to get ready correct that's right I think it's remarkably simple for most everyday Americans to prepare now keep in mind I don't think you need to open foreign bank accounts and I don't think you need to flee the country the fact is there's still nowhere else on earth I'd rather live than right here but the important thing to realize is that you have to take action now you have to realize that your financial safety is in your own hands you can't wait for Washington to fix these problems real monetary reform will only come after a major currency crisis hits and for most Americans that will be much much too late that will be only after a catastrophic stock market crash after the bankruptcy of dozens of financial institutions and after many people's savings are completely wiped out and you're convinced these problems can't be fixed by elected officials inside our government right I try to change the policy myself from the inside for 22 years believe me I tried my conclusion is that there's absolutely no hope for the Fed or the government to conduct responsible monetary policy I've spent decades grappling with Fed officials and committee meetings and at luncheons and private discussions with Fed Chairman the problem is that our government cares very little about the basic laws of economics they have very little understanding about how a free market actually works what do you mean by the basic laws of economics I'm talking about the consequence of printing paper money with no regard whatsoever for the value of that money you see government's can fool people for a while by printing paper money but in the end it's inevitable that trust in the money will be lost without trust paper money is nothing trust in the dollar is absolutely required for it to keep its status as a vehicle of economic exchange and we're already starting to see that trust fall apart and billions of dollars worth of transactions with more than 10 countries around the world for example China is also beginning to trade directly with Germany Brazil Russia Australia Chile India in South Korea all outside the US dollar some politicians might say what about all the positive changes and steps we've seen in the economy in recent years I mean the markets up 200 percent since 2009 real estate prices have rebounded at a glance many people believe that America is back to normal don't believe it the problem is these politicians typically look in the wrong places for evidence the Consumer Price Index for example you can't rely on a report like that because the numbers simply aren't believable whatever you might think about the market and economy whatever political party you affiliate with you can't afford to ignore the possibility that things are not back to normal in America right now but now what's going on in the world is is the West selling gold the gold is leaving United States and other places and Europe and going east after all could things really be normal when roughly 75 percent of Americans I've been living paycheck-to-paycheck could things really be back to normal in America when the number of people in food stamps has doubled since 2008 and when half of all children born today will be on food stamps at some point in their life or when the too-big-to-fail banks that got bailed out in 2008 are now 37 percent larger than they were back then can things really be normal when our country's money supply has increased by 400% since 2006 all just printed out of thin air it's like something out of Weimar Germany or the last 20 years in Zimbabwe do you do you have an exact date when you believe this crisis is going to hit now no one can tell you exactly when this new crisis is coming not meaning on anyone else the point is simply that what's going on today certainly isn't normal and it's guaranteed to end in disaster people are going to lose a lot of money they aren't going to understand exactly how it happened but they're going to be angry and they'll act on that anger in very predictable ways so you believe the bull market that we've experienced in recent years is all just smoke and mirrors by the Fed and most of the government reports that we listen to our misleading yes what's inflating the world's equity markets today is the intentional and foolish behavior of our political leaders and central bankers and when these people make mistakes their big mistakes they're not the little mistakes civil society and private markets could fix like I said America is not immune to the laws of basic economics and we're not the first country who's tried printing massive amounts of money as a way of cleaning up a financial mess it never works over the past 100 years the type of debt crisis we're facing here in America has appeared in Germany and Russia Austria Brazil Argentina Chile Poland Japan China Greece Ukraine Italy Ireland Portugal and Spain and every single case throughout human history printing more money has never solved the problem ever and has always led to severe consequences for ordinary citizens who found themselves unprepared what about all the positive steps we've seen in the economy in recent years I mean isn't there a chance that a lot of these concerns just may not surface at all I don't think it's a positive step when 52 percent of all American workers make less than $30,000 a year by one recent measure do you and I definitely don't think it's a positive step when every single hour of every day the US government spends about 200 million dollars it doesn't have it's precisely that sort of fiscal mismanagement that caused me to sever all ties with the Republican Party in 1987 and run for president the following year okay well let me ask you this will set this whole thing off I mean where's the tipping point the tipping point happens when people lose confidence in the US dollar and when that happens interest rates will rise dramatically and I believe it's going to happen sooner than most people think think about this every two months the US government borrows more money than the combined annual profits of the 100 biggest publicly traded companies in America does that sound sustainable to you no but but at this point it's completely normal for America right I mean the world already knows we have this huge debt so how is that new America can't be a debtor forever it can't be normal that we owe more government debt than any country in the history of the world it can't be normal that we have more debt than every country in the European Union combined granted we've been hearing about this stuff for years but what's new about all this is that the cost of maintaining all that debt are about to skyrocket again you can't put off paying your debts forever it always catches up to you it's not a question of if but when well but if paying is wait wait a minute on think of it like this the Fed has manipulated interest rates ten times since August 2007 from around 5% to between zero and point two five okay how can a rate of near zero percent last forever it can't so ask yourself what happens if the average real interest rate goes up I'm not talking about skyrocketing rates of ten percent or so which aren't hard to imagine but I'm talking about if rates just go up - no of all what if the rate ends up being just 4% annually how does the government pay off all our debt you realize that even if we paid it off over 30 years a 4% would end up spending 58 trillion dollars just to simply repay what we owe right now if the rate ends up at 6% we'd spend 102 trillion dollars how do we pull that off well a lot of this stuff is just mismanagement by politicians right isn't there a chance the rest of the world might I don't know cut Americans some slack and wait around for a policy change no that's not how international credit works 10 different countries have already signed deals to be again phasing out the US dollar as the basis of trade and you definitely can't wait for politicians to solve the problem our net public debt has more than doubled since 2006 this is years and years in the making the politicians can't solve this problem there's no chance they'll work this out it's too late as far as the world cutting America slack you have to remember that the entire concept of money is based upon soundeth to promise a value that's what money is all about you've heard the expression good faith sure if we don't make a good-faith attempt to pay back our debt nobody will loan us any more money and printing even more money makes the problem worse and that's because the entire idea of honest money developed naturally to replace bartering so that farmers didn't have to walk around with a bag of potatoes anytime they wanted to buy something right paper money is a promise that something of value is tied to it like gold we left the gold standard decades ago so the US dollar is only as good as the faith people have in it and that confidence is already starting to crumble exactly it would money can't be trusted the price signals in the market all around the world can't be relied on anymore which makes it harder and harder for people to exchange labor and capital internationally the entire system breaks down as a result of the inevitable mistakes people make investing and saving their money the scary thing is that many people in America including many politicians in Washington don't understand this because the US dollar has in the financial world for more than 50 years okay so to summarize you believe all the trillions of dollars of new money being printed by the government will cause a massive devaluation of the dollar on a scale that we've never seen before people could lose a bulk of their savings in a matter of hours and most people will be completely surprised for some people the only warning you're going to get is me sitting here right now and talking to you you won't hear about this on the news until it's already happened and the government won't say a word it would cause a panic and yes the crisis could arrive literally overnight as it did in Great Britain in the 1970s we're already seeing the warning signs the Fed itself has announced that since 2003 the exchange value of the US dollar has plummeted by as much as 20% the IMF has proposed an entirely new world's reserve currency system even Warren Buffett a man who built his fortune on the strength of America has moved something like 70% of his remaining government fixed income investments into foreign currencies now dr. Paul you have a unique record in Congress so you never voted for more debt you tried to Aude it and even abolish the Federal Reserve and you refuse to vote for anything that didn't strictly adhere to the Constitution isn't there anything that monetary experts or fiscally minded politicians can do to stop this crisis from happening and prevent this tragedy before it's too late theoretically maybe but they won't do it for political reasons no way the actions of the Fed and the last two White House administrations have gone beyond anything I could have ever imagined they're fought in Congress it's too late I fear there could be civil unrest massive unemployment a huge drop in stock prices great destruction of wealth the erosion of personal liberties vicious capital controls the suppression of privacy authoritarian clamp downs bank and brokerage closings on a massive scale and ultimately a major crisis as the US dollar is rejected for almost any non-paper alternative and believe me I'm not trying to scare you at this point in my life all I want is for Americans to wake up pay attention and realize the logical conclusion of what our government is doing today the only question is will you take the steps necessary to get ready

Channel: Spanish Libertarian

Views: 5,913

Rating: 4.8655462 out of 5

Keywords:

Id: yTKjmbgIX3A

Length: 22min 24sec (1344 seconds)

Published: Sun May 28 2017