In a video interview by CNN’s John Roberts, Congressman Ron Paul condemns (in his polite, gentlemanly way) Obama’s bailout of the financial system. Further, the Congressman does not miss his chance to blast the Federal Reserve as the primary culprit of our financial nightmare.
Roberts accurately notes that “trillion-dollar” has replaced “billion-dollar” in today’s discussion of the financial matters. We’re now discussing government debt in numbers that only a decade ago seemed an exaggeration. Now those numbers are reality.
It is delightful to see the Congressman not back down when Roberts noted that Nobel Prize recipient Paul Krugman says that a big stimulus is needed and needed quickly. Basically, Paul replies with “How can doing the same thing that got us in this mess get us out?”
Paul notes that the financial system is falling apart because people are losing faith in it. He further notes that when the world loses faith in the dollar that will be an even bigger crisis. Any wonder that gold buying is at record levels?
The video is only four minutes and 27 seconds long and is packed with Paul’s insight into what’s wrong and why Obama’s plan will not work.
Ron Paul is always spot on. I wish that the government wouldn’t be this reckless, but at least I’m prepared and own gold and silver. But most people don’t, and a lot of them will feeling a lot of pain.
Yeah its true, I don’t understand why they just flood money into some stimulus that usually doesn’t help in the end. Just throws us more in debt.
Establishment economists have been fed Keynesian economics their entire lives and believe that the creation of fiat money will stimulate the economy. Certainly, the first recipients of the freshly-created money enjoy its benefits, but as the money winds through the economic system it eats away at the purchasing power of the money already there and lowers the standard of living of those who were not on the receiving end of the new money.
Additionally, the newly-created money distorts prices and causes businesses to make bad decisions, which usually end up being malinvestments, which later have to be liquidated at losses. For excellent material on problems with fiat money, visit http://www.mises.org.
Finally, don’t fall for the lie that Roosevelt got us out of the Great Depression by spending. In reality, Roosevelt’s programs prolonged the Great Depression, made it was it was. See Murray Rothbard’s America’s Great Depression for an excellent discussion of the causes of that calamity.