Ron Paul: Why The Markets Lost Confidence

Ron Paul gives us his thoughts on how the markets lost confidence and what can be done to address the real problems.


I wanted to visit a little bit with you about the press conference that George Bush held today. Once again, the President addressed the nation for the purpose of restoring confidence to the market. He gave a five minute talk and during that time I noticed that the stock market went down approximately 200 points.

This to me is not a surprise. It is true – there is a loss of confidence, and confidence is what is necessary. But quite frankly, if over a trillion dollars worth of new credit pumped into the economy didn’t restore confidence, a five minute talk by the president is not going to restore confidence.

This loss of confidence is a consequence of the type of system we’ve had for so many years because it was built on a confidence in a system that was non-viable. It’s just discovered that everything that we’ve been doing for so long – the accumulation of debt and all the malinvestment that has gone on, the overtaxation and overregulation – it’s finally given out. And it’s justified for the markets to lose confidence, and a […] talk is not going to solve that problem.

It’s only going to be solved when we address the real problem. And the real problem is big government big spending, deficits, a foreign policy that contributes so much deficit financing for us.

So, another talk is not going to work. Another program, another bailout package will not work because they’re doing exactly the opposite of what they’re supposed to do.

When the system is built on an inflationary monetary system, the excessive debt and the malinvestment and the dislocation […] needs correcting, and they’re doing everything to prevent that correction. This is exactly what they did in the Depression, and now we’re repeating the same mistakes.

So yes, we need a restoration of confidence, but it will not come with another program or another five minute talk by anybody.

Ron Paul answered additional questions today. Watch his response here…

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  • jack

    Up to a world banking system with you and me as slaves in a feer driven police state…..we cannot let this happen. Yes we need to reform the monetary system, but first kick the central banks and industries out of the money supply and interest rate control and give those controls back to a government elected by the public.

    British Prime Minister Gordon Brown called on world leaders to create a new financial architecture to replace the system set up at a conference in Bretton Woods, New Hampshire, in 1944.

    “Sometimes it does take a crisis for people to agree that what is obvious and should have been done years ago can no longer be postponed,” Brown said in a speech at the London offices of Thomson Reuters.


  • Weiyu

    The only reason you didn’t became a presidential candidate is because people don’t understand that you are someone who really qualified.
    your insight on economy is really impressive. But as a scholar in public office, you are a way more straigtforward but more insightful than those “actors” in office.

  • David

    you can not be so general in your explanation of what is going on in this country. The problem is not the fundamental understanding of money that you have but the media that believes that people can only understand what they here in a 90 second segment. The people you are teaching must receive the tools of learning that you have about the Constitution, laws of money, economics, and political theory. Freedom is only present in the educated mind. Give your supporters the complete and honest truth, the resources to support and offend your statements, and the empirical evidence to support your claims and you will have offered them freedom. We want exposition in the media because without it we are pundits spouting rhetoric and political divisiveness.

  • jack

    The political process for one world central bank has started this weekend with Paulson’s statement, see how he creates the problem with his statement, now guess what the answer will be in the near future??

    “I think that some people in the press and some in the markets are naive if they think that different countries with different financial systems – and different political systems, different laws – are going to come up with precisely the same policy to deal with the issues,” Paulson said.

    Full article by propaganda machine CNN:

  • LC

    2 minutes of non stop animated pics and tunes on financial conditions