Ron Paul’s Response to Donald Trump’s Attack on Gold Bugs is Simply Awesome
Presidential candidate Donald Trump is bashing gold ownership, but former Congressman Ron Paul was quick to shut him down.
In a latest interview with Fox Business, GOP frontrunner Donald Trump said he considered investing in gold. But now that we’re off the gold standard, it doesn’t seem like we’ll ever go back to it again. Trump said, “Gold used to be something I used to like but I have not bought gold, no.” (Source: Ron Paul on the benefits of buying gold, Fox Business, October 23, 2015.)
In response, the libertarian activist Ron Paul took to Fox News to respond to Trump’s views on gold. Ron Paul responded to Donald Trump saying Trump’s lack of interest in gold is a buy signal for gold bugs. According to Ron Paul, it fares well for gold bulls to have more sellers out there because it creates a great entry point for long-term investment in the yellow precious metal.
“I would think that people would start thinking that someone [Trump] who had liked gold and had turned against it – it might be a good buy signal. You know more sellers! We’ll wait and see. I don’t think about these daily changes [in prices]. I think about what happened in 1933. When you turned in an ounce of gold, you got 20 Federal Reserve notes that are worth two Federal Reserve notes now.
If you kept your gold and turned it in today, you would get 1,170 Federal Reserve notes now! That’s what counts. The gold standard hasn’t ended. The people vote for gold all the time. Governments always destroy paper money and they are on the verge of doing it again.”
Ron Paul also maintained that gold prices will go up even if inflation appears to be low. He is of the view that even if government-released economic inflation numbers seem low, the inflation often translates into higher stock market prices, which we’re witnessing at the moment.
“I think it’s not right to say there’s no inflation. If you adhere to Austrian economics, just an increase in the money supply and monetary base is inflation. What it does is sometimes it pushes up commodity prices and sometimes consumer price indices, which are rigged by the government. But at other times they go into the stock market.
You, just a few minutes ago, reported horrendous inflation—stocks went up 300 yesterday, 200 today. This is the whole purpose of central banking—rig the stock prices up and make people feel better.”
You can watch the entire interview here.