Ron Paul spoke with Bloomberg television and said that we are in a currency war and we have been for decades. He noted that governments have always competed against each other’s currencies even under Bretton Woods. It has always been a form or protectionism and will make people want to export more.
Dr. Paul said don’t blame countries like China and Japan just look at the debt the U.S. is buying. There will always be currency wars. The Bank of Japan claims it has to defend itself against deflation and decades of slow growth.
Ron Paul noted that the Bank of Japan’s yen devaluations will eventually lead to further price inflations that are to come. Investors and citizens will eventually reject the yen and switch to other currencies like dollars or Swiss francs. Then eventually people will move to hard assets altogether as they are losing confidence in paper assets.
Ron Paul says for over 6000 years of history gold is always money and paper money fails.
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From Goldcore:
Today’s AM fix was USD 1,663.50, EUR 1,242.16 and GBP 1,057.94 per ounce.
Friday’s AM fix was USD 1,669.75, EUR 1,245.15 and GBP 1,059.55 per ounce.
Silver is trading at $31.24/oz, €23.40/oz and £19.99/oz. Platinum is trading at $1,720.75/oz, palladium at $748.00/oz and rhodium at $1,220/oz.
Cross Currency and Precious Metal Table – (Bloomberg)
Gold fell $3.20 or 0.19% on Friday closing at $1,668.60/oz. Silver edged down to $31.31 in early New York trade, but it then climbed higher and finished unchanged on the day.
Spot gold was up 0.05% for the week while silver was off 1.13%.
Gold Spot $/oz, Daily, 03JAN2010-11FEB2013 – (Bloomberg)
Gold is slightly weaker in dollar and euro terms today but higher in pounds and yen.
Volumes are light in thin trade as most of Asia is closed for the week long Lunar New Year holiday.
Palladium and platinum remain just shy of their strongest levels in almost a year and a half.
Europe’s finance ministers are meeting to discuss aid to Greece and Cyprus. They aim to tidy the sea of debt before the Italian elections on February 24-25 and a political scandal in Spain – both of which could quickly destroy the market calm.
Pro-independence parties in Scotland and Catalonia are preparing for referendums next year that they hope could see their regions as independent free countries. A few analysts feel the freedom of seceding may incite others in Europe to follow suit.
Venezuelan President, Hugo Chávez announced a surprise devaluation of the bolivar by 36% over the carnival weekend.
Some analysts say that although the exchange rate adjustment was necessary to correct growing distortions in the economy, it did not go far enough as they feel the currency is still overvalued.
The moved shows the importance of gold as a diversification to protect against currency devaluations.
U.S. economic highlights this week follow: The Treasury Budget on Tuesday, Retail Sales, Export and Import Prices, and Business Inventories on Wednesday, Initial Jobless Claims on Thursday, and Empire Manufacturing, Net Long-Term TIC Flows, Industrial Production, Capacity Utilization and Michigan Sentiment on Friday.
Silver Spot $/oz, 13FEB2010-11FEB2013 – (Bloomberg)
Ron Paul spoke with Bloomberg television (see video in Commentary) and said that we are in a currency war and we have been for decades. He noted that governments have always competed against each other’s currencies even under Bretton Woods. It has always been a form or protectionism and will make people want to export more.
Dr. Paul said don’t blame countries like China and Japan just look at the debt the U.S. is buying. There will always be currency wars. The Bank of Japan claims it has to defend itself against deflation and decades of slow growth.
Ron Paul noted that the Bank of Japan’s yen devaluations will eventually lead to further price inflations that are to come. Investors and citizens will eventually reject the yen and switch to other currencies like dollars or Swiss francs. Then eventually people will move to hard assets altogether as they are losing confidence in paper assets.
Dr. Paul was asked, “Do you think protectionism will lead to a crash in the international monetary system? He replied, “Nothing good can come of it. Even short run trade benefits leads to a weaker economy and higher prices. It doesn’t solve the problem they won’t face the truth. That is that all governments spend too much money, there is too much debt and they get away with it by taxing people”.
“It seems that all we have is more debt, more printing money, and more government interventions. Governments won’t even talk cutting things. They only want to make slight decreases of proposed increases in their budgets!”
On the next U.S. Treasury Secretary, Jack Lew, Paul says, “We don’t need an intervener. He should have a strong dollar policy by defining it, and not by propping up the market. Don’t devalue a currency. It is then that you hurt savers and cost of living goes up. This only damages the middle class and the poor no matter what welfare programmes you have because they lose purchasing power.”
Dr. Paul says that he feels the Obama administration is trying to devalue the dollar, they are very different then sound people and different then the Austrian economists. They feel debt is ok.
The interviewer noted that the gold standard has not immunized us from financial crisis.
Dr. Paul retorts, “If you look at it over several years it does maintain money. There were flaws with the gold standard, during wars, there were problems in the past and we understand so much more today and we could do better.”
“If you think we need a wiser Federal Reserve, central economic planning for the manipulation of credit, or a better Treasury Secretary, I reject that. “
After all, Ron Paul says for over 6000 years of history gold is always money and paper money fails.
IMF Russia Gold in Million Fine Troy Oz, Monthly – (Bloomberg)
Russia buys gold to protect against “cataclysm with the dollar, euro, pound or any other reserve currency”
Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty.
“The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency,” Evgeny Fedorov, a lawmaker for Putin’s United Russia party in the lower house of parliament, said in a telephone interview in Moscow.
Gold, coveted by Russian rulers including Tsar Nicholas II and the Bolshevik leader whose forces assassinated him, Vladimir Lenin, has soared almost 400% in the period of Putin’s purchases. Central banks around the world have printed money to escape the global financial crisis, sapping investor appetite for dollars and euros and setting off a scramble for safety.
In 1998, the year Russia defaulted on $40 billion of domestic debt, it took as many as 28 barrels of crude to buy an ounce of gold, data compiled by Bloomberg show. That ratio tumbled to 11.5 by the time Putin first came to power a year later and in 2005, after it touched 6.5 — less than half what it is now — the president told the central bank to buy.
NEWS
Gold ticks up in holiday-thinned trade – Reuters
Silver Climbs as Gold Little Changed Before Euro Finance Meeting – Bloomberg
Gold edges higher as dollar weakens – Market Watch
Putin Turns Black Gold Into Bullion as Russia Out-Buys World – Bloomberg
Venezuelan devaluation sparks panic – The Financial Times
COMMENTARY
Video – Ron Paul: Are We in a Currency War? – Bloomberg
Venezuela Launches First Nuke In Currency Wars, Devalues Currency By 46% – Zero Hedge
No One Knows How Much Gold China’s Central Bank Is Buying – Seeking Alpha
How Much Gold Does China Really Have? – Money Morning
Economist Predicts Higher Gold Prices In 2013 – Lower Thereafter – CME Group
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Too bad Ron Paul was slightly ahead of his time. The populace will soon see the day when Ron’s warnings and predictions become clear and true and then we will wonder why we couldn’t see it when he was running….THRICE!!!!!! Too late now folks, we had our chance to get on the right track and we snoozed through it. Ron wrote the play bill on this theater that we are witnessing…to the letter. I voted for him twice as a write in, as I saw through the globalist veil early on. I will go out knowing I made the right choice. Thanks for giving it hell Ron…
I am guessing that most people voted for the current administration for ‘revenge’ against past wrongs/jealousy over what they feel they are entitled to (but don’t have), and guilt at what they have (celebrities, ect.). Sadly, when you are after revenge, you really hurt yourself more than anything (as evidenced by the unemployment rate among minorities).
Such a shame the majority of this country did not understand (or want to believe) what Ron Paul was warning us about. At least he tried.
Just curious-If Russia just bought so much gold, why did the price plummet this morning. I’m a novice, but it would seem when a huge purchase is made-It would go up?
This is 1984 my friend where down is up, war is peace and 2+2 always equals 5.
As long as the US dollar is going up people are going to put their money in other things besides gold. Where as most of us buy PMs because we know it’s real money, most people only buy it as a hedge against the US dollar. Right now their putting that money elsewhere. That’s just the way it is and will continue to be for awhile.
Ron Paul belonged to the wrong tribe—the tribe that’s in power now. there’s not much difference in any of these tribal leaders, Bush, Bush, Clinton Obama. Those hacked Bush accounts show how daddy Bush worked hard to get Clinton’s bad rep rehabilitated. Mightly white of him.
You hit it Stacksmack3000. No one has woken up the the fact that the dollar is nothing more than the best looking horse at the glue factory. We always back a winner until they stop winning. When the Dollar stops winning, look out. All these currency wars will come to a bad end and the Dollar willget whacked.
I’m a Ron Paul supporter but I’m still trying to understand why he quit. Now he does his little call in phone message and such and does interviews. It’s just not the same as someone out front fighting for you.
He is no longer young and the campaign trail is rough. Add in TPTB probably leaned on him to back off or become a crime statistic
We are all endebted to Dr. Paul. I was in college during his 2008 campaign, and he visited campus frequently, just standing on the main drag through campus for us to speak with him. I didn’t wake up until a couple years later, and looking back I would give anything for the chance to shake his hand and pick his brain. History will look back on him as one of America’s re-founding fathers, hoping we can come out of the coming sh*tstorm with humanity on top of the globalists. Sometimes I wish he were more more vocal, but I think his style allows his message to reach the cool-headed. He will have to be very wise in how he plays his hand when the house of cards comes crashing down. Hopefully the masses looking for answers will start to listen.