GDP Crash! V-Shaped Recovery or 'Greater' Depression? Who's To Blame?
Hello everybody and thank you for tuning into the Liberty Report. With Me Today Chris Rosanna. Host Chris Welcome to the program. Morning great to be with Dr Paul Good. I thought it would be very appropriate to talk a big event that's ongoing. A lot of people talking by a lot of people have their different interpretations. We have hours and that has to do with the economy, of course. The other big issue that's going on is the corona virus and Lo and behold there's a connection there and everybody now trying to figure out who to blame they they're blaming the virus. Four. This because it's costing a lot of money and and there were a lot of very statistics since there take. For instance, the GDP want to put up a chart here about the GDP because it's so dramatic look at that last part of that chart that's straight you red line down it's a it's a record breaker and it tells you they talk about things fallen off a cliff I, that's a pretty good description for that the market and the are Connie fell off a cliff stock market's doing great. The social is Doing fantastically, certain segments are benefiting I'm sure the banks are going to be able to, and if you happen to be in the business of making vaccine, you might be able to make a lot of money and. So it's where you look because you can look and see unemployment rates are very high you know and the food lines are getting longer and there's a lot of unemployment and and a lot of spending just think of what's happened since people got attention by the about the corona virus because it was very easy to stir up emotions and say, this is the end of the world and we have to sacrifice our liberties. We have to give up all local control anybody who disagrees with the official word about how to treat the virus they are in big trouble like. Dr Simone the the woman doctor who? Leads the American doctors. Group, and she called Americans frontline doctors and she and others had this press conference. She was fantastic and she knew the issues but she didn't fit into FAUCI and Gates's scenario. So she got into big trouble. So if you define, you know their nose laws against what she said and she had free speech and you can't even introduce that notion about the first amendment. There she was. Giving the speech. But what is outrageous says she got fired and The does raise questions because she was working in a hospital which gets money from the government, but she was fired. She was fired and twitter cut her off and She had. She had the nerve to disagree with the conventional wisdom of and of course, you don't do that because. In order to create this Hysteria worldwide, and that is the big one. You see that line dropping off dropping off the cliff, the same thing happened to. Common. Sense common sense dropped off a cliff to and the whole world has joined in at the same time. They have very, very little proof of what they're talking about and you know the the dependency of tests the argument for Vac vaccines whether it's a good argument or bad argument because it's complicated medical and there definitely needs a discussion but this whole is thin idea the sent science has settled this the politicians have settled it the doctors on a lot of talk about it only the only the medical people who agree with the authorities. With the establishment who agreed with the deep state because we have to scare people and Mitch, you mentioned this briefly, but we'll get into this a little bit more. Because I've talked about it before is this whole thing of coronavirus pandemic yes. There is a serious problem out there but a series it was I think it's been made much worse in as the dust begins to settle more damage more lives lost and more long-term detriment has come from the shutdowns and that is that is the big problem but anyway, Chris you already know this that when we talk This way and try to get a little bit of a balance on this and not get hysterical about it Then they say, well, we don't care what we do care. That's why we're looking for the truth and we're GONNA keep working out and that's why today I wanNa have you help us exp explain I exactly how this GDP goes and drops off and and all that means go ahead Chris. Paul and it's it really isn't a surprise if you lock down the economy, what else could you expect while it was bad the worst since one, thousand, nine, hundred, forty, seven, and it's a shame because you know at the beginning of all this, the rumpole liberal report, we're saying you know. That government is not a problem solver multiplies problems. You know we have this covert is a real problem. However, the last thing you need is for government to get involved that they dove in headfirst and look what they've done. You know they didn't fix Kobe they fixed nothing what they added forty to fifty million unemployed this week Daniel pointed out that now suicides and drug overdoses are higher than to Cova death rate and yesterday I saw zero hedge that domestic violence has more than doubled during these lockdown. So again. Problem and that it just multiplies and I also WANNA mention this because it's we're starting to see more and more is the marcus time into like a an East Germany where people are snitching one other and turning on one another for over arbiter Chari things like how far you're standing apart or where or whether or not you're putting a mask on your face. So again, the the worst words that you can hear as I'm from government and here to help and they always need the exact. That's right. There are three issues involved here in these last several months and most of the noise you hear and explanations, and the fear Marnie has to do with the virus and that's way overblown and yet we keep saying very very serious but the reaction so far has made things much worse. But there are other things that are important. A Federal Reserve is important to bubble that was forming long time before. The. Whole Story of the virus broke out. We were saying look, there's a bubble out there is way too big. It's going to burst. We're going to have a recession it's going to be a calamity. So we have the fair we have ours but we have black lives matter. So they join in because there's chaos in the streets and they are they are on a very serious mission. To create Marxism in this country and and they are if you understand how the Marxist work chaos in the streets is very beneficial. So it works together now or are they just astute in Ohio to join in and take advantage of the chaos from the virus? Could it be that the people who are orchestrating the the concerns and the history over the virus or the same people who don't arrest people who are burning down our cities? Anyway they're all three are very important all contribute and they. All contribute to a weaker economy and they all contribute to the loss of liberty but I think this is a climactic and a to a long period of time I would I was even even before our last depression in the thirties all the way back to the establishment of the Federal Reserve and I've dated a lot of things. One, thousand, nine, hundred, seventy, one in all this. But I don't think that we're going to just work our way out because there's been a question you know about the. About the drop off of the GDP in that is will this be a VDI up? You know all of a sudden shoot right up again, which I'm sure the president is hoping for and others believe in it but quite frankly I think it's naive to believe all of a sudden all these problems we're talking because we're in bankruptcy, we have a bankrupt financial system. We have a bankrupted trading system we have a bankrupt moral system and this is not going to clear up the wealth of. The country is shrinking the amount of dollars flowing into the market is skyrocketing, which means the the The wealth that we have that exists is going to be further distorted and further mail distributed. But when you talk about, you know three trillion dollars so far and one in the process and maybe two or three more it does absolutely nothing other than give people shot in the arm and they can pay the rent for a month or two doesn't solve the problem but to one thing that I would. I would conclude is it's not GonNa Change, we talk about it and hope we plant some seeds, but it can't be changed. You cannot expect Washington DC's with the makeup of Washington, DC, all of us starting to act reasonably because they've never understood they've never studied Austrian economics they buy into this thing that what exists today is. Concrete evidence that freedom fails the free enterprise system failed gold standard failed all these things and they put the blame on on wrong things and so Republicans and conservatives. So often are in the position of being justifiably criticized at the same time. The Marxist know exactly what's going on and they see the chaos as a time to move in and take over, and that is what I really fear because the issue of liberty that makes the difference. But as bad as it is I still think if the people in this country who still know and understand love liberty if they. Heard I think we can pull out out of this not with Salvi. Salvaging. We have as much as having a replacement for this because what we have today cannot be patched up. It's too too. Too much work. It's not salvageable. We can't do that. But that doesn't mean that we can exist and we can't restore common sense which a lot of Americans agree to. Chris we have a major task force aisles. Wonderful what you said Paul and you know you are right that this is not this is a combination of a long time hundred years one, hundred, fifty years at least you know there's these ideas, socialist ideas and we're saying again with with great reset great reset as if you can just destroy the economy capitalism and hit a reset button and poof out will come this centrally planned utopia. It is nonsense. It has always been nonsense civilization is not built with a blueprint. It doesn't matter how many PhD's you have how much money you have whether you're billionaire trillionaire. There are an infinite number of variables involved in the economy in the marketplace with millions. And billions of individual decisions no these people they suffer from what Frederick Hayek called the pretense of knowledge. They presume to know what they do not know and cannot no, and you know how many times have we seen countries destroyed whether it be in Latin America or in Europe by socialist ideas, Hans and how many have bloomed into the Socialist Utopias zero and that's because it's impossible and it would be a shame to let something like that. Happen to the what was the land of the free. But I, still think we have a fighting chance defendants right and I question a lot. A lot of people visit with and they want to know win. And we know that. Nobody's capable of saying which is going to be your win is going to happen. Because all Austrian economists that are worth ourselves for the last flow for the last several recessions that we've had have always worn to people. There's a bubble a bubble they did this before this one and. And they? They admit the Austrian school teachers that you don't know because it has to do with the subjective reactions of billions of people who finally panic and get out so far there's a bit of that going on when you see GDP dropping off like like it has been, but you don't know the day and the date we do notice coming and we know we're getting closer but one thing that I watch I watch the price of Gold I. Imagine I haven't taken my eyes off gold since August Fifteenth Nineteen seventy-one event that I I watched with Wild is about you know divorcing the dollar from the. Gold and the whole world being put on. Fiat currency and seventy. One is a long time ago and I said, why are you worry about it? Well, it lasted. Trust a lot of wealth that we're we've consumed all that now and now, and now we're at a point where just doing the usual things spending more and printing more. Hasn't been working so well, but you know back. The other thing is is the storage. Now we're reading about dedollarization the Senate, and that's important because we have the reserve currency of the world that gives us an edge at means we can you know. We can print the paper gold and people accepted for long time as paper gold but not so much anymore, and that is what's happening. You know four years ago the the two major countries like China and Russia and others that we're using the dollar. Ninety percent of their transactions for years ago was usually paper. Or the dollar, and now it's down to fifty percents. So is dropping off rapidly and that's a strong single also reflected in the value of the dollar to the other currencies of the world, which takes a whole lot of doing because we're competing with pretty trashy current around the world. You'd get our dollars going down and the the price of gold is going up so that that is happening and it's always nice to remind people of what the reserves record. Well since they came into existence, they've been able to destroy about ninety seven percent of the value of the dollar. In the old days when a coin, if you had an ounce of gold and you lost it and somebody found it fifty or sixty years later on, you had an ounce of gold it would be still announce of goal. It might have a different value in dollar terms, but he was still some gold but no, they had the dollar they were supposed. To maintain the integrity of the dollar is ninety seven percent. Now, the most bizarre thing about what's going on in these last years has been that it's an open policy of the Federal Reserve and they've been working so hard at this to make sure that prices go up at least two percent a year. Well, tell you what the way that people are now. The prices are going up a lot faster but I haven't heard that they actually canceled out but that's always been a goal of their lives and I always thought some day they're gonNA, they're gonNA be talking about, why is it ten percent instead of two percent? We want to just two percent, which is a ridiculous policy, and that again will work its way out because that's set you know imperfectly, it involves objectivity of the value and the amount of paper money and how much debt we have but also. It has to do with how much trust there is, but there is less trust now than ever in the whole system because it's built on all this debt and when you just listened to the news, it isn't a couple billion or a hundred billion if they're talking about trillions and trillions of dollars so they say well would stock market's still doing. Okay I. Have I have a little bit of money in there and they say it's okay. But the big bucks are in the hands of the establishment and. Even, they will suffer to some degree there'll there'll be some who always know what's coming because they're in the planning business, but there's GonNa be a lot of people who think they're say because it is going to be very, very bad for us in this country. So my my prediction is going to get worse before it gets better, but it's worthwhile to work for that time when it's going to get better. So we can. Participate that's exactly what the Marxists doing. They're waiting for this whole clarity because they have something in store for us, and that is what we ought to pay attention to and right now we're not getting a whole lot of support out of Washington DC and believe me I have a little experience there. Don't don't expect any. You have to expect it from people who are in the business of ideas and the people who are talking about free market economics in reality not this capitalist that we have today you know. Assisi what capitalism does to it the Marxists will say, and then too many Conservatives and Republicans will defend as a Oh. No, it's okay. We we only wanted We only wanted two trillion dollars. We didn't went three trillion dollars a matter of fact on the three choices both Republicans and Democrats. Now, they're arguing over the next part, but that's not enough of a distinction to make a different. There's a solid support in Washington as bipartisan to support the ideas of interventionism and authoritarianism in inevitably as though she just Dwindle in in their efficiency. They always gravitate authoritarianism and less the ideas and the principles of independence and individualism and self reliance or restored to a community emphasizing personal liberty. As Dr Paul, I'll finish up by stressing a word that you you stress there, and that's trust and there are a lot of people that have lost trust. But you know it's always been a mystery to me that no matter how many how many times politicians the media lie to people they still go back to the it's almost as if they want moralize. And that has to stop gotTA trust the in yourself and your liberty let politicians talk all they want. But once they start coming for, you have to do this you can't through this. That's where you have to draw the line and it always starts out really innocent. We could use this covert as an example just give us fifteen days. Let's flat in the CARVER will get you out of here. Well, we're August first tomorrow that the fifteen days was a long time ago it always starts innocently they. Put. On the mask and yesterday we hear doctor foul chief saying that you know maybe we should wear the mask I flew to. So this is how power works. Their interests are not the same as yours. Your interest is deliver your life to carry your family feed yourself and your family. Their interest is to rule over you. You are a means to their ends and as an individual human being you're not meant to be a means to anybody else's at. So we gotTA stop trusting. Them Stop Trusting people that continuously Lybia and trust yourself and your individual liberty. That is very good because I've argued to that. That's what happens people say. You know you can't trust the people. So therefore, we want to take these people. We don't trust send him the Washington, and then we're supposed to trust them. Right now, we found that we find out that we shouldn't be trusting them and you know I don't think anybody can argue now in this country even those who might try to justify that is there's been a crash in our economy the worst dip in. GP In in our history, there's there's been a crash and there's more hunger and more problems and more unemployment. So we have have the problem. There is this argument of shaped recovery and yes, they will recover and things will get better. It'll be short-lived that happened one time in nineteen twenty one but they took a different position and just said. Tan's off we're not spending billions and billions of dollars and lo and behold the liquidation of data occurred. You know and and they went back to work again and they got the had a clean slate but that's not going to happen either but what what does exist is the question how much worse will get? The depression get a lot worse beating or are we gonNA wake up when my my bet is it's going to get worse I hate that because I think it's so unnecessary and it's GonNa hurt the innocent people the most who trust it and you can't say, well, they were stupid because this this thing has lasted for one hundred year to put trust in the government appreciate from cradle to grave about it. So there's a lot of trust there about the the thing. That will be decided here in the next several weeks or months. We'll be who's to blame of course If you ask anybody on the left, the Democrats, what's trumps fault how two percent of it we hate his guts on they never say that and we're envious him because he wanted his election and it's on and on it's it's just that is what modems. So it's very easy for them to they blame him for the virus they blame for the Federal Reserve and he he's contributed to it. He didn't changing things he participated in the he said some good things about the the. Military Industrial. Complex and our presidents around the world but he's made some reasonable changes but still no matter what no matter. If he does exactly what the Democrats have been trying to who twenty years, he's still going to get blamed and hated for it. So who to blame is a big deal and can't be done politically politically. Yeah, if you, if you haven't noticed politics is made up of a lot of demagogues and that's a polite word or saying they're cotton picking liars and you can't trust them. So blame has to go and I don't even look for the Party or the individual and pick a name but I see they're all victims, victims of bad education in victims of this deceitful way of doing and and victims of having this. Desire to have more power and wealth over. So it's an ideological thing and this started especially. During the nineteen thirties because. In one thousand nine hundred is even said free enterprise and the gold standard. The worst thing we ever did, and of course, that was the first depression we had that lasted for fifteen year and it never ended until after World War Two. So yes, they they did blame. You know the free enterprise system and the gold standard. Well, they're still doing that except right now people individuals are. Concerned about this, even in China and Russia and this this is not a reason to make them a bad person but they're taking their buying gold and they don't think it's a good idea to trust the dollar. Well, maybe there's a good message maybe it's a positive message disregarding. That you might have but it's deciding what is the problem and one thing is, is the type of system we have today is not in free markets and it is they use the word capitalism, but it's crony capitalism and I think Libertarians and conservatives a lousy job at distinguishing that from. Interventionism which has gotten out of control, and when you see the expenditures and the foreign policy and the Federal Reserve and all this, there's not enough difference to say which side is going to be like you have to blame him look ideology you have to decide I is the purpose of government is the purpose of government to do everything for everybody. From cradle to grade, which is impossible or is the government there to have very small jobs a small job it be doable and would know bureaucracy. All you have to have is the goal and the purpose of government is to protect our freedoms protect our liberties, make sure that we can speak out and we can have a debate debate on medical problems or a monetary policy but. This whole thing is you can't even really discuss medical treatment for Corona, Var so we've we've lost much. We have to emphasize the fact that the government shouldn't be there the reason I keep arguing the case the one of the biggest mistakes the last hundred years has been allowing the medical profession to be engulfed by the government and the bureaucrats. So the epitome of all that is Easy Epitome of all that and and the people by by into him as being the expert just think of the grief that trump God finally when he realized what he had didn't have anything to do with them. But until until the people decide, they don't WanNA listen to the FAO cheese of the world and the bill gazes the world when the when the vaccines come nothing's going to change. So to me, it's philosophically. So everybody should contribute to it to self education to educating family friends and neighbors and being in groups of. People that know and understand and want to learn more about it that to me is the answer that's why I keep coming over hope and I visit with a few people with our report here today to encourage them because so many people are involved, and when I get a little bit discouraged, all of a sudden I'll find out whether there's doesn't hear people here they have their different organizations. So there's a lot of people out there that agree with us and I think that's good. That's why it encourages me to continue to do this. I WANNA. Thank you very much for being viewers and coming to the Liberty Report for information and please come back soon.