-- Published: Thursday, 4 July 2019 | Print  | Disqus 

• He outlines how this event could mark the beginning of a 1970's style stagflationary episode, where galloping inflation required only 5 years.
• Resolving the inflationary quagmire required considerable effort of the Fed Chairman, Paul Volker to contain the price genie.
• Fast forward 40 years and the global economy faces much more dire conditions than the 1980's inflation scare.
• Dr. Paul outlines an ideal panacea to sidestep the impending calamity.
• The trade skirmish between the US and key trading partners, particularly China has investors on edge.
• Some economists are nervous over the potential for tariff reverberations to echo the 1930's Great Depression.
• Dr. Ron Paul disagrees with the trade tax policies, noting that "We The People," the working and middle classes carry the burden of such taxes.
• Tariffs translate into higher prices on store shelves, with little overall benefit to the country as a whole.
• Few if any net benefits have resulted from the trade tariffs in the domestic and global economic arenas.
• Our guest also notes, "If a country destroys its currency, it destroys the middle class."
• Vigilance on the part of all citizens is required to avoid the threat of profligate government spending to the detriment of society as a whole.
• Our guest notes a key threat for investors today is the very real risk of negative US interest rates, where Fed policymakers press the nuclear-option.
• US rates could drop below zero for the first time in modern history, mirroring their EU and Beijing colleagues.
• Negative rates suggest desperation on the part of officials to keep the debt-ridden global Titanic economy afloat.
• Investors will quickly recognize this ploy and abandon ship, preferring the safety of golden lifeboats and lifejackets over Davey-Jones locker.
• Dr. Paul asks, "What if our officials could no longer finance retirement related programs and various welfare schemes through borrowing additional debt?"
• Taxpayers would be forced to embrace fiscal responsibility and conservative, libertarian frugality, key concepts embraced by our predecessors that lifted America from a tiny 3rd world nation to superpower status.

Founder of The Ron Paul Institute for Peace And Prosperity returns to the show with his case for restoring sound money as mandated by the US Constitution via a gold-backed US dollar. In the Ron Paul Liberty Report last month, Dr. Paul noted, "The Fed Can't Save Us, But Gold Can," in response to the new rate cut cycle that will likely begin at this months FOMC meeting slated for the 31st. He outlines how this event could mark the beginning of a 1970's style stagflationary episode, where galloping inflation required only 5 years after former President Richard Nixon closed the gold window to US creditors. Resolving the inflationary quagmire required considerable effort of the Fed Chairman, Paul Volker to contain the price genie. Fast forward 40 years and the global economy faces much more dire conditions than the 1980's inflation scare. Dr. Paul outlines an ideal panacea to sidestep the impending calamity. Meanwhile, the trade skirmish between the US and key trading partners, particularly China has investors on edge, with some economists nervous over the potential for tariff reverberations to echo the 1930's Great Depression. Dr. Ron Paul disagrees with the trade tax policies, noting that "We The People," the working and middle classes carry the burden of such taxes in the form of higher prices on store shelves, with little overall benefit to the country as a whole. Few if any net benefits have resulted from the trade tariffs in the domestic and global economic arenas. Our guest also cites Dr. Ludwig von Mises, founder of the Austrian School of Economics, "If a country destroys its currency, it destroys the middle class," so all citizens must remain vigilant to the very real threat of profligate government spending to the detriment of society as a whole. Our guest notes a key threat for investors today is the very real risk of negative US interest rates, where Fed policymakers press the nuclear-option, sending rates below zero for the first time in modern history, mirroring their EU and Beijing colleagues, where benchmark rates dropped below zero during the Great Recession. Negative rates suggest desperation on the part of officials to keep the debt-ridden global Titanic economy afloat; investors will quickly recognize this ploy and abandon ship, preferring the safety of golden lifeboats and lifejackets over Davey-Jones locker saddled with debt-ridden fiat assets. Dr. Paul asks a pertinent question, "What if our officials could no longer finance retirement related programs and various welfare schemes through borrowing additional debt?" Taxpayers would be forced to embrace fiscal responsibility and conservative, libertarian frugality, key concepts embraced by our predecessors that lifted America from a tiny 3rd world nation to superpower status.

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 -- Published: Thursday, 4 July 2019 | E-Mail  | Print  | Source: GoldSeek.com

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