Ron Paul Talks Gold, 'The Lepriconomy' On 'Colbert Report'

On the Colbert Report Tuesday night, Rep. Ron Paul and NYT reporter David Leonhardt went mano-a-mano over the value of gold (or, the "lepriconomy," as Colbert put it). Paul -- a long time opponent of the Federal Reserve and frequent advocate of returning to a gold-based economy -- was predictably down on paper money.

"Paper is always destroyed; there's been no example of paper money lasting for long, long periods of time," he announced to the group.

Colbert nodded: "I think it's time we return to an economy that's based on trading cattle or the value of our daughter for dowry."

Paul is not alone in his belief that gold is the solution to hedging against a collapsing American economy, the dangers of inflation, etc -- Glenn Beck is in favor too -- but the logic can be confounding. As Leonhardt put it: "The problem we've had recently is not inflation, it's not too strong an economy. It is too weak an economy."

As Colbert said, by way of a conclusion: "Would you rather worship a calf made of paper or a calf made of gold?"

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Comments

[toocoolfoschool1234]

07:06 AM on 02/22/2011

Inflation is the dollar loosing value, not things becoming more expensive, and it happens when banks are allowed to invent money from this air.

[EdCorner]

11:52 PM on 01/09/2011

It's obvious now that Cum-bay-ahma does not care about the people, he's only interested in paying back those that got him into office, thinking that they got me into office once, they can do it again. I thought he was just being dumb, but this goes deeper than dumb - it's goes to eye's wide open aligning with corruption. Time to dump this bozo. Might I suggest another FDR? Dr. Ron Paul will end the endless wars, dissolve the Fed and break up the banks. Anybody still gullible enough to believe that Cum-ba-yahma has "we the people"'s best interests at heart is living in a dream world. I'm not one to buy into conspiracies very easily, but it sure appears that Cum-bay-ahma has aligned himself and this country with a world-wide takeover by the banks. Look up inverted totalitarianism at wiki - I think you'll recognize much of what we see.

[joyf1]

09:52 PM on 01/09/2011

What are the farmers feelings about a gold standard?

[sloppybear16]

02:57 PM on 01/09/2011

END THE FED

[planetmondo]

04:51 AM on 01/09/2011

http://www.youtube.com/watch?v=VlpfzGX3uLk
Ron Paul 4 the long haul!

[planetmondo]

04:42 AM on 01/09/2011

Steven Cobert is no dummy,Dr. Ron Paul held his own and that other guy looked like a fool.
Dr, Ron Paul for secretary of defense!.

[Jasonnn]

04:39 AM on 01/09/2011

It is absolutely terrifying how much most of the people who read and comment on this site do not understand basic economic truth.
its not a philosophy, its a natural function that can be observed and worked in tune with.
education = http://mises.org/
Please register republican and vote for Ron Paul in the 2012 republican primaries, don’t worry you can switch back and no one will know. but at least then we wont have to deal with something that is actually bad like Sarah Palin.
You know he’s the only one that would actually end the wars, including the one on drugs, and the patriot act, ect..
If he doesn’t win the primaries im taking my medical degree and going to one of the BRIC countries and you can have fun with the bottom of the wellfare ponzi thing.

[EdCorner]

12:54 PM on 01/09/2011

Well said Jasonnn - #2 fanned fav'd.

[Vyslichajici]

11:22 PM on 01/09/2011

it is very naive to think that the elections are won by votes. the reverse is actually true. whoever the banks decide upon is the person who receives the most votes. the elections are rigged and
the votes are manufactured. voting in america is like attending church in medieval rome.
start packing and good luck to you.

[PWM]

01:00 AM on 01/09/2011

The problem with a gold standard is that currency is a small part of money. Most money is credit. If Macy's gives someone a credit card, that card becomes money. If we link our money to gold all that will happen is the super rich will simply monopolize the currency, or China will simply take our gold to pay some of the debt we owe. Also, gold is subject to market forces and bubbles. There was a bubble in the early 80s which ruined many investors, we are now in another bubble and again many investors will be ruined.

[southingtonian]

06:45 AM on 01/09/2011

gold standard would have done nothing to prevent the recent collapse of the economy.

[EdCorner]

12:28 PM on 01/09/2011

Wrong. With a gold standard inflation and greedy speculation would not have been possible

[PWM]

04:38 PM on 01/09/2011

Totally agree.

[Noah Glaser]

04:32 PM on 01/08/2011

It is important to remember that most economist did not see this crisis and still don't see that we are in a depression possibly the greatest in world history. Remember that in the early 1930s they were talking about a recovery as well. I believe we will see massive deflation and the stock market will crash, this deflation will last for a year or two followed by the beginning of hyperinflation. The end result must be hyperinflation because western governments can't pay off their debt thus must devalue the currency. They will not break their promises to the public openly and honestly, they will do it by printing money. The price of Gold and Silver represent this destruction. Good luck in these hard times.

My suggestions are:
1. Get out of debt
2. Grow a garden and store some food
3. Get in shape
4. Get a gun
5. Get out of the dollar and into hard assets that you touch with your hand

Remember possession is 9/10 the law.

[EdCorner]

03:54 PM on 01/08/2011

Fiat money is a ponzi scheme

[EdCorner]

03:52 PM on 01/08/2011

The Industrial Revolution that was the greatest technological revolution ever, was based not on investment banks and not of fiat paper. It was real investors that bet the most valuable things in the world, gold and silver backed money, that financed it. We don't need banks for growth and we certainly don't need central banks printing money from thin air and calling it legal tender. How corrupt is that? Very

[EdCorner]

02:23 PM on 01/08/2011

The other guy was totally off-base and he's taken as an expert??!! Ron Paul for President in 2012! We need another FDR and he's it! http://www.ronpaul2012.net/

[EdCorner]

02:10 PM on 01/08/2011

Ron Paul is right - inflation and hyper inflation is caused not by a strong economy but by a weak economy that needs to print money to cover it's debts. Inflation is a loss of value of the dollar and not a strong economy.

[PWM]

01:01 AM on 01/09/2011

Historically even when our currency was based on a gold standard inflation took its toll.

[EdCorner]

12:31 PM on 01/09/2011

Wrong. With the gold standard our nation enjoyed over 200 years of zero inflation. If there was inflation for a war, after the war inflation dropped back to it's pre-war levels. Not so now. As a matter of fact, inflation no longer drops - it just keeps rising. Here's a link for your edification : http://www.chrismartenson.com/crashcourse/chapter-10-inflation

[EdCorner]

10:56 AM on 01/11/2011

I'm ready to admit a mistake - are you? I was somewhat wrong "From 1665 to 1776 there was absolutely no inflation. For 111 years, a dollar saved was, well, a dollar saved." We know why there was inflation in 1776, don't we? "The next serious bout of inflation was also associated with a war, again due to overprinting of paper currency, and again, upon conclusion of the war, we saw a relatively prompt return of prices to their pre-war levels, where they stayed for an additional 30 years. By now we are nearly 200 years into this chart, and we find that the cost of living is roughly that same as it was in 1665." You still haven't checked out that link I gave you, did you. Please educate yourself further before you send people down the wrong path.

[wowisdabomb]

12:13 PM on 01/08/2011

US Gold reserves has tons of gold.. but bringing it as a 'standard' is outdated.

US dollar is a fiat currency.. it is not backed up by our Gold.. it is backed up by our Nuclear stockpile of missles we can unleash and destroy the world.

in which case.. who gives a rats ...s about GOld.

[Vyslichajici]

01:26 PM on 01/08/2011

no, it doesnt work like that.
nukes or not, the world will not continue using the usa dollar as the default reserve currency (the currency they choose to hoard because they think it is the most liquid and stable asset store) if dollar devaluation continues. the quantitative easing that has already happened, combined with the fed's statements that they intend to increase inflation in america, has already sent many countries shedding the dollar. many that have held us treasury bonds as stores of wealth have begun selling them and buying tons of gold instead of keeping usa treasuries. the military has nothing to do with it. we have the most guns, but it won't keep us from going broke unless we actually start a war with someone (who has more money than we do) and actually win it. iraq was almost that - but if you havent noticed, we lost that one :-( notice how oil contracts went to non-american companies, prime minister takes orders from iran, and al-sadr is saying resist americans by all means necessary?

the fed is how banks control american government. ending it would be the best thing that could happen for american ideals - but it won't happen, rome never got rid of its caesars. the only place for optimism is to hope the dollar's demise will be gentle and slow. banks own the government. they are bankrupting america for financial benefit.

[kareemachan]

11:09 AM on 01/08/2011

Of course beckie is in favor of gold - he's shilling for those gold coin corporations.

[PWM]

01:02 AM on 01/09/2011

And he will bump his gold before the bubble bursts.

[monkeymuggs]

01:34 AM on 01/09/2011

Only time will tell, and we'll all be waiting and watching.

[monkeymuggs]

01:05 AM on 01/09/2011

I'm no fan of the Beckster, but the point of understanding Gold is a basic one.
in 1970 you could buy a nice mens suit for 40 bucks or an Ounce of Gold.
Today you can still buy a nice mens suit for an Ounce of Gold, but 40 paper dollars won't get you the Tie.