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All right, y'all.
Welcome back to the show.
I'm Scott Horton.
And introducing our good friend Charles Goyette.
You all know this guy.
He's the most independent talk show host in the world.
Even when he doesn't have a talk show anymore.
That's pretty independent.
Yeah, extremely independent, even from his microphone.
Well, sort of.
Let's see.
He wrote this book.
It's big and it's yellow and it's at your local bookstore.
It's called The Dollar Meltdown and it's got a melting dollar on the front.
You can't miss it.
They got it at Amazon and all your favorite book buying websites, too.
And it's really, really good and you ought to read it.
And all of that same stuff goes for Red, Blue, and Broke All Over, except for it ain't yellow.
It's a different book and it's red and blue and white.
And both of those books are absolutely incredible.
Find out all about them at CharlesGoyette.com and buy them at Amazon and etc. like that.
So, welcome back to the show.
How are you doing?
Scott, it's great to talk to you.
I'm doing well, sir.
How are you?
I'm doing great.
Hey, listen.
So, you got the coolest project, I think, in the whole world.
Wait, let me think.
Yeah.
Is anybody actually doing anything about getting rid of the hydrogen bombs?
No, not really, right?
No.
I know that the royal family is doing something about land mines, so that's good.
Okay.
They're right up there with you anyway.
But you got the greatest project probably in the history of mankind here.
I think you've got millions and millions and millions and millions of people listening to Ron Paul say wise things on their AM radio every day.
Five days a week, anyway.
You know, it's a really great opportunity, and I'm so happy that it developed because there are people that aren't like us that listen to these conversations on talk radio or follow political debates.
There are people who've never seen Ron Paul in one of the presidential debates and so on.
And so all they get day in and day out is inundated with the mainstream consensus view, the statist view, the governing class' view on all the issues of the day, day in and day out.
And now, I think for really the first time in a very long time, there is a regular voice in opposition to the state on the issues of the day.
So what we have is Ron Paul's America, which is a twice a day commentary, short commentary like Rush Limbaugh's minute or Bill O'Reilly's Talking Point minute or something.
Short commentary by Ron Paul on radio stations all over the country.
And they generally run it once in the morning and then run another one in the afternoon.
So two a day, two new commentaries every day, five days a week on stations all over the country.
So now all of a sudden, people who have gotten the statist view all of their lives, whatever their routine is, maybe they pick the kids up at the same time or they go to the grocery store or they shave in the morning or they're driving to work.
Day in and day out, every single day of the week, there's Ron Paul with his commentary, his take on liberty and freedom as applied to whatever the breaking, the big breaking, jabbering, talking head story of the day is.
And there's Ron Paul inserting the freedom perspective.
Yeah.
Well, see, this is the thing about Ron Paul, and I've known this for a long, long time, that, well, it used to be really exciting if he was interviewed on CNN at all.
Wow, they got Ron Paul on.
Remember that before he ever ran for president?
Yeah.
Wow, hey, Ron Paul's on Washington Journal, everybody.
All exciting.
But what I learned real quickly when he got on TV all the time from the presidential campaigns and all that is that it's okay if I'm busy and it's on mute and I don't get a chance to actually see what they're talking about.
He never lets me down, never.
He says the right thing about everything.
I mean, he's really good.
And this is why everybody loves the guy so much is because he's a legendary truth teller.
He doesn't care about how mad people are going to get about it.
He just says what he thinks is right.
And the thing is he happens to be right about everything.
And so it's such a great mix.
You know, he's got his his character is so he's just such a decent, kind old man.
And everybody can tell what a what a decent guy he is and how how, you know, his honesty is just on his sleeve.
And he never beats anybody over the head with anything in a negative way.
He just always has the soundest advice for policy ever anywhere.
And and then this whole gig has got you playing Ed McMahon to his Johnny, where you're the one who makes sure that the topic is on point.
You're asking the question they would never ask on MSNBC or CNN because they don't even know that's the question.
But you know what the real question is.
You know what the important thing is.
And so it's not just twice a day.
They hear Ron Paul answer a stupid question about a stupid Democrat from a stupid CNN person.
But they're hearing you, you know, asking him about gold and about Syria and about the police state and about, you know, the most important issues in the society.
So I just I can't really say, you know what I expect the effect of this will be.
But as far as attempts to spread real libertarianism out into the world, this is as big a deal as him running for president.
I think, Charles, this is huge.
Well, it's a good deal.
It's a great forum.
People, you know, radio, as you and I both know, is a great way to wake people up over time.
Over time is the key.
You know, if you see somebody like Ron Paul one time and you don't pay attention to these debates and stuff, then that's not necessarily life-changing.
But for people who are apolitical or not involved in these things and haven't thought about them, you know, it's a drip, drip, drip to hear about freedom every single day.
Over time, I think it's hugely important.
Anyway, it's off to a great start.
We haven't even been around.
I guess we've been doing it for about six weeks or so now, maybe a little less.
But we're already on 125 radio stations across the country.
So it's had a great launch.
And, yeah, we're doing really well.
And you're right.
It's the things that people don't hear.
I'll tell you, so help me, you know, since I'm a media guy, I mean, I've watched a fair amount of TV about it and listened to a fair amount of, you know, orthodox talk radio.
I never, never in all of the discussion about Syria, never hear the kind of thing, actually, I would have heard on your show or read about on antiwar.com.
But in all of this serious stuff, you know, the Republicans trying to tank Hillary in the future and make sure that, you know, that they put a final nail in her political coffin.
In all of this seeking for political advantage in Washington, nobody ever really talks about what exactly were we doing in Syria or, I mean, in Benghazi.
And were we running guns to Syria?
And was the CIA or was the ambassador, Chris Stevens, a CIA guy and then operating in violation of international law and stuff?
So we never get the story behind the story in any of this stuff from the establishment media.
They're just toadies of the establishment.
And so Ron Paul doesn't mind saying, yeah, what is the story behind the story here?
I mean, it's just great.
It's really a plus.
Yep.
And, well, and this is always the thing, and I just said it, but I'll say it again, too.
It's his character, too.
Yep.
You know, the first time I ever saw Ron Paul, and I actually heard him on talk radio in 96 when he was running again, but I didn't know who he was.
That was my first introduction to him.
But then I saw him after he won.
I saw him on the House floor.
And you can look up this speech.
I at one time found it on the House website.
The first thing I ever heard him saying was, hey, it was in the British papers today.
He's holding them in his hand, about George Bush Senior, or just George Bush as he was known then, I guess, selling chemical weapons to Saddam Hussein even during Operation Desert Shield before the start of the war.
But during the buildup to the war, they're still transferring this stuff to him.
And I got it right here.
And what's up with that, Mr. Speaker?
And, of course, it's the middle of the night in an empty House chamber, right?
But at the bottom of the screen it says, Ron Paul, R, Texas.
And I'm going, no way.
Because, you know, George Bush is a carpetbagger down here and everything, and everybody, you know, he's a pseudo-Texan.
Certainly to the Republicans, he's a Texan.
And here's a Texas Republican who's willing to say this about George Bush, who's one of the most powerful Sith Lords in the hemisphere.
You know, like, wow.
And it was real easy.
He's just going, oh, yeah, didn't you guys see this in The Guardian or wherever it was?
You know, it's not a big deal.
He's just telling the truth.
It's simply just he wouldn't know how not to, Charles.
He is.
I know.
And I'll tell you honestly, over the years, if I ever were to find myself, and it's happened maybe once, disagreeing with Ron Paul about everything, I don't check his assumptions.
I check my own.
Because he's always so principled and so solidly grounded in philosophical consistency that it's just, I mean, there's simply been nobody like him.
Period.
End of story.
In American politics, at least on the national stage, in my lifetime, and I think probably for generations, there has simply been nobody like him.
All right.
Now, so for people who don't really listen to AM radio anymore, they podcast when they're driving or whatever, listen to CDs, how do they find the podcast?
Now, is the podcast basically just the repackaged radio show or it's a whole different four slots a day you're doing?
Or how does that work?
We do that, too.
But we have a weekly podcast, you know, 10 or 15-minute conversation about things going on.
We're putting one up today about the drug war.
But, you know, we had one about Syria.
We had one about North Korea.
We had one about just, you know, whatever seems to be the dominant, the leading story in the news.
We did one about the Fed the other day when they were, you know, just destroying the economy a little bit further.
So, I mean, we do something in-depth every single week, 10 or 15 minutes, and it's called Ron Paul, The Weekly Podcast.
And you can find it at podcast1.com, podcast1.com, or just Google Ron Paul, The Weekly Podcast, and you can find it there.
Cool.
Now, I guess I was confused.
I sort of thought that there were short podcasts as well as the weekly.
Well, you're right.
And they are, as you suggested, and it was a great idea and it wasn't mine, but they are also repackaging the daily commentaries.
Oh, I got you.
And so they'll string, I don't know how they're doing it exactly, three or four of them together and make those available for download, too.
And they're great fun because they're, you know, they're really tight, concise takes on the things that are in the headlines and, you know, dominating the national political conversation.
And so, yeah, you're right.
They're repackaging those for podcast listeners, too.
But it's been a great venture.
We're just really getting going, but we've hit a really big milestone.
I thought if we could get it on 100 radio stations, it would be just like I'd be out of my mind with excitement.
And as I say, we're already at, I think, 125.
Yeah, I mean, it's so exciting for me knowing about all the people who are going to be exposed to this kind of thing for the first time.
You brought up Libya and Syria, for example, where, you know, the point really is that all AM radio hosts in America are exactly the same as each other and all have exactly the same thing to say about everything.
Everything.
And, you know, down to whatever non-details they don't even delve into.
And so, you know, then Ron Paul comes and just upends the whole thing and just says things where he wins the argument on the first try because he's that far ahead of the game that they're playing.
He just leaves them in the dust and says, oh, yeah.
Oh, of course.
Yes.
Stop the evil Assad.
Huh?
Well, you know, the leaders of the stop Assad movement are also the Al-Qaeda suicide bombers of the region.
And so, you know, which do you really prefer?
Republicans?
You know, it's great, Scott, here in Phoenix.
I mean, it's different.
Every radio station that carries the Ron Paul's America commentary, they run them on their own schedule and their own format and different shows according to their needs.
Some of them run it in their morning news block and then the second one, the afternoon commentary in their afternoon news block.
But here where I live in Phoenix, the radio station that grabbed the rights to it, they were the first affiliate for it, the radio station that grabbed the rights to it runs the first one in the middle of Dennis Miller's show.
And they run the second one in the middle of Laura Ingraham's show.
So, you know, there's you know, there's all the conventional wisdom and all the talk show hosts that are all saying the same thing with the same talking points.
And here's Ron Paul with a moment of light and clarity in the middle of those programs.
And it's just like, you know, how can they how can they remain?
Yeah, I don't know.
I mean, the only way that they ever got away with it before was they were only ever up against Alan Combs or some punching bag.
Right, right.
But I don't know how you listen to half of Dennis Miller and then listen to Ron Paul and then go back and listen.
Keep listening to the other half.
You know, might as well turn it back to classic rock at that point.
I think so.
That's my thing.
All right.
Hey, listen, we still got like 15 minutes here.
And here's the thing that I know that you know that nobody knows.
Well, some people, not nearly enough people in our country, in our society, in the world.
Charles, understand the Austrian theory of the business cycle.
And I know that people are going, what?
But wait, this is the most exciting thing in the whole wide world, I think.
And, Charles, would you please tell them how it works and why it's so damn important?
Yeah, let me give you the CliffsNotes version of the Austrian business cycle.
The Austrian school economists, and it's not because it's a practice in Austria.
It's not.
It's just because the real bright lights of the school of economics are mainly Austrian, like Ludwig von Mises and Friedrich Hayek, both Austrian.
Probably the third great light in the last century in Austrian school economics is Murray Rothbard at American.
But it's called Austrian economics.
And their achievements, their accomplishments, their intellectual victories in terms of economics and human freedom and free economic interaction of people in free markets and sound money are so many.
But probably they are most noted for the Austrian business cycle theory.
And basically, Karl Marx, for example, said there's a problem with capitalism.
And the problem with capitalism is it's endemic to capitalism, a congenital problem of capitalism.
And that problem is this successive series of booms and busts.
The economy booms and it busts, and it dislocates people, and it's destructive of wealth, and it's very, very harmful.
And because this is an essential ingrained part of capitalism, capitalism itself is a failure.
And really, the Austrian school economists took the problem and effectively said, not so.
That the cycle of boom and bust is actually the result of the central bank, the government or the central bank, artificially manipulating conditions of money and credit.
So when they artificially create artificially low interest rates, as the Fed is doing and as the Fed has done, as central banks all over the world do, this sends signals to the economy about the availability of money.
Entrepreneurs and business people, people in the capital markets see these signals and they launch projects based on the cost of money.
Because interest rate is the cost of buying money for a period of time or renting money for a period of time.
So entrepreneurs and producers and stuff look at the cost of money, and it misleads them about the prosperity of the people, about the amount of savings, for example.
So they decide on a new project, new plant and equipment, new capital spending on something because of the availability of capital.
The truth is that in the absence of artificial manipulation of the interest rates by the central bank, the truth is that extraordinarily low interest rates would signal that the people are prosperous and have a lot of savings.
And then the capital projects that are being designed or on the drawing boards by entrepreneurs could probably function.
Assuming they're sound in the normal business sense, they could probably function.
Or at least there is enough capital and prosperity among the people to sustain them if they're reasonable projects, reasonably designed and so on.
And they have a fighting chance.
But when the conditions of money and credit are artificially controlled by the Fed, it sends bad signals.
It sends false signals to people about the prosperity, about the savings, about the available capital, and therefore about the success of their projects.
So they are inclined to borrow, and they do things like build housing in the desert outside Las Vegas in Phoenix, Arizona, drives up the price of homes to a level that is not sustainable according to the prosperity, the incomes and the savings of the people.
And so it's a bubble that has been blown up by the central bankers, and all bubbles eventually burst.
So this whole cycle of booms and busts has nothing to do with capitalism, has nothing to do with the free economy, has nothing to do with the fault of entrepreneurs or business people.
It is entirely the creation of the government, the state, or the central bank.
And, of course, some people call the Austrian business cycle theory, some people call it the alcoholic syndrome theory, the hangover theory, where you wake up in the morning after Saturday night's indulgences and you just feel like you know what.
And so you take the hair of the dog, you take another drink to fix the problem.
And this is what we go through with the madness of the central banks in the Western world, particularly in the United States today, since they don't understand the critique of the business cycle that the Austrians presented.
When one bubble busts, when the dot-com bubble busts, they open the floodgates and they further distort economic conditions by further interfering in the supply of money and credit.
And so they answer the busting of the dot-com bubble, which was the creation of the Fed and its easy money policies to begin with, with Alan Greenspan trying to provide liquidity to the banks, the banking cartel that created the Fed to serve their needs in the first place.
He blew up the dot-com bubble.
When it popped, they did the exact same thing and blew up yet another bubble, and this one was the housing bubble.
So when the housing bubble blows up, are things allowed to liquidate?
Are we allowed to return to normalcy, to clear out the malinvestment?
The investments that people made that aren't sound need to be wiped off the books so that we can start building again for our prosperity and restore the American dream?
No.
They come in with another round of the same.
So they drive interest rates to zero to try to reinflate the last bubble, and they end up blowing up yet another bubble, and we're in the midst of that right now.
Well, perfect.
You see why I say you guys ought to read this guy's books?
I'm telling you.
Now listen here.
So yesterday on CNBC they go, or two days ago, wow, $15,000.
The Dow's doing better than ever.
I guess the economy has recovered, and obviously I'm no expert like you, but even I can tell that this is what Robert Gates, although he was wrong when he used the phrase, but I'm stealing it.
This is what Robert Gates called war, looking at war through a soda straw and figuring that, well, you know the answer.
And I don't mean to mix metaphors because you could use the straw to blow up the bubble with a bunch of hot air, too, so that's a different one.
But this is looking through a soda straw and seeing, wow, this month people in downtown New York are making a lot of money.
I guess everything's okay again.
And these are the experts on TV who, you know, make a hell of a lot more money than I'm making, and they just can't seem to see more than a couple of feet in either direction.
Charles, I don't understand why.
Do you know why that is?
How does it work?
Yeah, you're right.
They're looking through the soda straw.
But it is true the economy, you know, we're almost 48 million people on food stamps in America, I guess one in five households and so on.
And you have still depression era, depression era levels of unemployment in this country.
You have a middle class that's not getting richer but getting poorer.
You have the top 7% in the two years after the so-called recovery started in 2009.
Oh, we had a recovery that started in 2009?
I hadn't noticed.
After the so-called recovery started in 2009, a Pew Research study shows that the top 7% of the American people increased their net worth by, I think it was about 28%.
As far as the other 93% of the American people, they were net losers by about 4%.
So the Federal Reserve is shoveling money at Wall Street.
You know, when you hear that interest rates are zero, can you go borrow money at zero?
No, but Wall Street can.
And you see the consequences of this everywhere you look.
Oh, Wall Street is now suddenly in the business of buying houses.
I mean not just a house here in the neighborhood, they're buying a lot of houses, Wall Street is.
Because they look at the bond market, you can't get an interest rate return.
They can't get an interest rate return on their billions of dollars in the bond market.
Returns are pathetic.
So they go, oh, real estate, real estate's available.
And since they can borrow from the Fed at effectively zero, or rates that are close enough to zero that it's not significantly different, why not?
Borrow money from the central bank at zero effectively, and go out and load up in real estate.
So they're driving up the price of real estate, and it's institutional investors, and it all looks good to them.
So you've got the Fed creating another bubble, and they've created a bubble in the bond market.
And they're helping Wall Street move into single-family homes across the country now.
And so it's just here we go again.
We will eventually have the biggest bond market crash in history in this country, because it's another bubble that's been blown up by the Federal Reserve over the course of the last 30-some years.
All right, now, is it possible that the high precious metal prices, that that's a bubble too?
Yeah, I don't really think so.
I mean, you can do an overlay of the growth of – I'll tell you what.
In fact, you do an overlay if you put chart over chart of the Fed's monetary activities, for example, just since the end of the recession.
You know, the waves of quantitative easing, the waves of huge debt monetization and money printing.
And overlay that with a chart of the gold market, you can see that gold has been pulled up all along by money printing.
I mean, there is a relationship between the inexhaustible flow of paper money and the price of an alternative to paper money called gold.
And it looks as though, to the casual observer, as though that relationship started to break down a little bit here this year, particularly in April.
But it's a temporary blip along the way.
But it's very clear, if you overlay those charts, that it is a close correlation between the rising price of gold over the last 10 years and money creation by the Fed.
All right, and then can you tell us real quick, and maybe cite a source for where people can find the answer to, what's the real unemployment rate and the real inflation rate or CPI?
Well, yeah, you can do a web search.
You can go to shadowstats.com, and John Williams does a great job of that.
And he actually just uses the government's own methodology to tell you what the real inflation rate is with the real CPI.
Can you give us a ballpark on that?
He just uses the government's methodology, but the methodology that they used before they changed the methodology to make the numbers look better.
Right.
So can you give us a ballpark on what those numbers are now, those two?
I think my guess is that inflation rates – I'd hate to say what he's saying.
He may say as high as 12 percent.
So I'm not sure what it is.
I haven't looked at his say-so.
We all know grocery shopping sucks.
We are caught between two forces here.
There's a powerful deflationary force out there.
We saw that in the housing market beginning in 2008 with the collapse of the housing market.
Very powerful destruction of a massive amount of credit.
Trillions of dollars in credit was destroyed.
When we talk about inflation, we're talking about the expansion of the supply of money and credit.
So credit destruction is deflationary, and there's the Fed printing money by the trillions to try to overcome the credit deflation of a couple trillion.
So we're in a massive battle between this King Kong and this Godzilla of the twoflations, inflation and deflation.
And one seems to prevail for a minute, and the Fed's out there grinding out the money to try to make sure that inflation prevails.
But you know the world is in an economic slowdown.
Europe is in the tank.
China is slowing down very, very badly.
So there are powerful deflationary forces out there, too.
But don't forget that gold can rise in a deflation.
I mean, to give you the case of the 1930s, there was a global deflation with higher gold prices.
All right, and now tell us very quickly again how we can find your radio show and your podcast on the web.
Yeah, just Google Ron Paul's America or podcastone.com is the syndicator.
They syndicate a lot of podcasts for a lot of people.
But you can Google Ron Paul's America and find it, or go to podcastone.com and find it there.
All right.
Thanks very much, Charles.
Appreciate it.
Great to speak with you.
All right, everybody, that's the great Charles Goyette, charlesgoyette.com.
Read his books The Dollar Meltdown and Red Bloom Broke All Over.
We'll be right back.
Hey, Al, Scott Horton here, inviting you to check out wallstreetwindow.com.
It's a financial blog written by former hedge fund manager Mike Swanson, who's investing in commodities, mining stocks and European markets.
Wall Street Window is unique in that Mike shows people what he's really investing in and updates you when he buys or sells in his main account.
Mike thinks his positions are going to go up because of all the money the Federal Reserve is printing to finance the deficit.
See what happens at wallstreetwindow.com.
And Mike's got a great new book coming out.
So also keep your eye on writermichaelswanson.com for more details.
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