Ron Paul recently sat down with the Birch Gold Group to offer up his take on on the Federal Reserve’s QE policy, investing in gold and the future of the U.S. dollar. Everything a fan of Paul would want to hear. All that is missing is the famous Ron Paul take on foreign policy.
The big talk on the Wall Street has been the nomination of Janet Yellen as the next Fed Chair. It doesn’t really take a massive leap of logic to see what Ron Paul thinks of the move. He thinks she will make things worse. She was, after all, the right hand of Ben Bernanke. She helped construct the very QE program that is going on right now.
Further in the interview, Paul brings up Yellen’s transparency issues. She’s more than happy to telegraph the Fed’s moves to the market, but balks at any moves that would allow for Congress to audit the Federal Reserve. Ron Paul pushed consistently in Congress to audit the Fed and its international transactions. He maintained that’s where the true power of the institution lies.
Asked who he would pick, Ron Paul responded in the interview with his tried and true ‘no one’. Had he won the Presidency, he would have had to pick someone, so he threw out Jim Grant’s name, an Austrian economist. Even then, Paul admits that the pick would have had disastrous impacts on the market. The market is hooked on QE, and a taper down to $75 billion, in his opinion, would crash the markets.
Obviously, that’s a bit of hyperbole, but the market is highly dependent on the Fed’s stimulus. Investors can look at the lack of volume and see that.
Deeper into the interview, Paul talked about the debt ceiling fight. He brought up the issue of spending in Washington. He says it will never go away, no matter what arbitrary date you put on it. One way to lower the national debt is to cancel the money owed to the Federal Reserve. That would buy the country a $2 trillion buffer.
Obviously this just gives the folks on Capitol Hill another $2 trillion to write checks against and solves nothing, because fundamentally both parties refuse to reign in spending.
Ron Paul treats gold like a lot of alternative investors in the metal – as insurances. He doesn’t really pay attention to the rise and fall of the spot prices. The demand coming out of India and China. He sees the dollar as a house of cards. As such, gold is like his health insurance for what he sees as its coming demise. Price doesn’t really come into play.
Overall, a vintage Ron Paul interview. A shame it didn’t dive into his foreign policy, especially coming off Syria and with negotiations with Iran heating up. It would have been interesting to hear his take on the two.