Ron Insana: Ron Paul doesn't understand basic economics

New York - Republican Congressman Ron Paul doesn't have an understanding of basic economics and doesn’t know how to invest, at least that’s what CNBC senior analyst and commentator Ron Insana thinks.

CNBC had a discussion about a recent article published in the Washington Post that questioned Congressman Ron Paul’s investment strategies and his stances on many financial and monetary issues. The article states that Paul has $1.5 million in stocks in gold mining companies and an additional $200,000 in silver stocks. For the authors, this is a conflict of interest with his policy stances. However, Paul feels it’s just a reflection of his philosophy and that his advocacy on gold is consistent with his views on monetary policy, which he has been discussing in books and in speeches for more than three decades. On Friday, CNBC senior analyst and commentator Ron Insana believes the former Presidential candidate is one of many in Washington who do not have a basic understanding of the fundamentals of economics and feels Paul doesn’t know what he’s doing when he’s investing because gold is a complex instrument. “Listen, the Ron Paul stuff, you know, if it weren't part of a conflict story would be funny because Ron Paul is one of the many elected representatives who we have that doesn't even have a basic understanding of fundamental economics, let alone more complex issues and better ways to hedge against inflation than buying gold,” pontificates Insana. “Gold is a complex instrument. You know, it speaks to a bigger point. He doesn't even know what he's doing.” Is Insana correct? Is Paul a simpleton when it comes to investing? You be the judge. However, one must look at the price of gold over the last ten years. Since the year 2000, gold has gone from $200 to more than $1,200 and many experts feel it will go higher as governments around the world face a tremendous debt crisis.