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Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital, an SEC-Registered Investment Adviser and a full service broker/dealer. He is also Chairman of SchiffGold, his precious metals dealer, more

Ron Paul On Gold And The Health Of The US Dollar

Date: Thursday, April 23, 2015 4:34 PM EDT

Dr. Ron Paul discussed the future of the dollar on the Ron Paul Liberty Report this week. He believes that the value of the dollar is in a bubble that will eventually pop when the Federal Reserve is forced to raise interest rates.

The best measurement throughout history for the value of a currency is its relationship to gold… On the long run, it is in the interest of governments to make sure gold prices do not go up. During the 60s and the 70s, they did everything to dump gold and pretend gold was $35 an ounce… Even though gold may seem to be in the doldrums right now, eventually [it] will break out.”

Highlights from the video:

“Is the dollar healthy? Right now, the markets are saying the dollar is pretty good. Yet the other day, I was on CNBC and they were rather taken back because I had a different opinion. I thought the dollar was vulnerable. It’s way out of whack. It’s overvalued in many ways… I believe the dollar is in a bubble…

“The market is distorted, because…it is not a gold standard; it is a political system; it’s paper. Therefore, [subjective values] can have sudden changes. The housing bubble – it looks great when the bubble is being blown up and everybody has houses and the interest rates are low, but eventually it has to crack. This reserve currency in the dollar will have to make this correction…

“[The dollar is in a bubble] because of the way other countries have valued it. They think it’s very good, out of proportion to what it really is. But the trust is still there. The trust factor is very, very important…

“I believe we could be in a transition already. If you look at what foreign banks are doing… They essentially haven’t increased their holdings of Treasury Bills and our debt in the last two years… I think they’re worried about the dollar bubble in the future…

“Paper money never lasts. I remember bringing this up to Alan Greenspan before a committee. I said, ‘Well, if you can achieve this (that is, perpetuate this paper money)… you’re actually changing 6,000 years of history that you can make paper money true currency.’ He acknowledged that…

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