Ron Paul Discusses Contagion, Gold, Goldman And The Fed

05-17-2010 • ZeroHedge.com

"When the history of this time is written people will say - how in the world did they believe that a few people in a secret room can decide what interest rates should be, how much the money supply should be, who should fail, what worthless assets taxpayers have to buy. It is absolutely bizarre." Lastly, Ron has a word of caution against those politicians who time after time vote to retain the Fed's secrecy: "The Fed is a big issue and those individuals in the Senate who votes against auditing the Fed, there will be a political price to pay for that just as much as those who voted for the bail out. Right now those who vote to enhance the Fed will get punished politically because the people are waking up and they realize that the Fed is the culprit." Not surprisingly, Ron Paul is not too happy with the handling of the Vitter amendment. Yet Paul's conclusion is most insightful: "The markets are more powerful than governments, the markets are even more powerful than the Fed. We fixed the price of gold at $35 for years, but we knew the market couldn't sustain it. We knew the Bretton Woods agreement would break down. This is why we knew in 2000 that the dollar would crash in measurement toward gold." Paul shuts up Becky Quick who makes fun of his bearishness on the market by saying he bought gold at $35, using the system against itself. "I am on a reserve gold standard, and I don't feel that badly about that, because my reserves are in pretty good shape, because I knew in 1971 that paper would lose its value. Now the gold surge recently as people are discovering that they are really printing money. You can expect a lot more price inflation."