Prevent Bubbles, Stop Inflation? End the Fed!

Ron Paul appeared on Fox Business to talk about the Federal Reserve, the flawed monetary system and the inflation it creates.

Channel: Fox Business
Date: 03/16/2010

Transcript

News Anchor: Just over an hour ago, the Federal Reserve announced it will leave interest rates unchanged. So what does one of the most vocal critics of the Fed have to say about this decision, and then the possibility that the agency will expand its powers?

Republican Congressman Ron Paul of Texas is a member of the Joint Economic Committee, and the Financial Services Committee. He also wrote the book on the subject, literally. His book is titled “End the Fed”. He joins me now in an exclusive interview from Capitol Hill. Welcome, thank you for being here, Representative.

Ron Paul: Thank you, it is nice to be with you.

News Anchor: Good to have you. Well, we had the Fed meeting which wrapped up and, needless to say, nothing happened. They didn’t do anything right here. Do you think that the Fed’s exit strategy is on par with what really should be done?

Ron Paul: I don’t think they have one. I mean, it just really is totally bewildering that a country and billions of dollars can be held in check and waiting for the chairman to say well, is he going to say “extended period of time,” or not? I mean, how can one person have this much power over the monetary system? No, he has no plan. You know, I was looking back over some statistics to find out if the Fed ever shrunk their balance sheet. And it was very, very rarely. And the balance sheet is so huge. And he’s not even willing to say, “Maybe someday in the future I might raise interest rates.” They’re not even talking about raising interest rates, they’re just saying possibility in the future. So no, he is locked in with a lot of inflation. And by continuing the policy he is doing some… he’s continuing inflation.

News Anchor: Representative, there are no signs of inflation just yet. There is no wage inflation because we have such high unemployment.

Ron Paul: Yeah, but you’re talking about price inflation; inflation is the increase in the supply of money and credit. And then that subsequently leads to higher prices in some areas, like in education and in medical care. So you don’t have to have a CPI or wages to go up to have inflation. I think this is a misdiagnosis and misdefinition to say inflation is only rising prices. I mean, there are a lot of price increases. But the point is, we’ve already had the inflation. The money supply has been increased. Now we’re just ready and waiting for the inflationary expectations, which is psychological, it’s subjective. You don’t know when that’s going to turn on. You don’t know how to measure velocity of money. And that’s all sitting there. And if you ever get this economy going, that’s what you’re going to have; explosion of prices. It will be an explosion of prices.

News Anchor: Well, just as very smart investors say, for example, like Warren Buffett, and some members of Congress on both sides of the aisle support him and say he actually helped save the financial system. You, of course, have been a real critic of Fed chief Ben Bernanke. In fact, recently we couldn’t help but notice on February 24th, the last time chairman Bernanke testified on the hill, you two had an exchange that generated quite a bit of attention. Let’s watch for a minute and then we’ll talk more about it.

Ron Paul: It has been reported in the past that during the 1980s that the Fed actually facilitated a 5.5 billion dollar loan to Saddam Hussein, and he then brought weapons from our military-industrial complex. And also that is when he invested in a nuclear reactor. That money was not appropriated by the Congress as the Constitution says. Also, there have been reports that the cash used in the Watergate scandal came through the Federal Reserve. And when investigators back in those years tried to find out, they were always stonewalled and we couldn’t get the information. Would you grant that the American people deserve to know whether the Federal Reserve has been involved in this and what kind of shenanigans they involved with foreign countries and foreign central banks, and find out that possibly you’re working right now to bail out Greece, for all we know.

Ben Bernanke: Congressman, these specific allegations you’ve made, I think, are absolutely bizarre and I have absolutely no knowledge of anything remotely like what you just described.

News Anchor: So, Representative, I’m pretty sure you guys aren’t dinning inside the Beltway at those fancy restaurants there. Clearly there is arguing here between you two. Is what you were saying just a longer way of saying that you want more transparency from the Fed going forward?

Ron Paul: That’s right. And even the bill that Dodd has just presented, he’s giving more power to the Fed, and no auditing procedures. So I would say the problems are getting much worse rather than better. And it is to me so crucial that we do know what’s going on. I mean, literally the one thing that they really want to protect are their agreements with other central banks and other governments. Well, you know, what keeps them from extending a loan to another central bank and credit, and tell them to buy up treasury bills to keep interest rates low? So we can’t even measure what the Fed is doing directly, because we look at their balance sheet. But they literally have the ability to extend credit to other central banks and have them buy treasury bills. And you know, that might be the reason that foreigners are still buying our treasury bills. But this is not a solution. You say that he saved the economy, but that’s sort of like saying that you give a drug addict a shot and he feels better.

News Anchor: Let’s go back to Chris Dodd’s new plan for financial regulation changes. And it would give the Fed quite a bit more power, certainly, as far as consumer financial protection is concerned, but also giving them oversight of the largest banks; ones that are 50 billion plus. So, on balance, though, it also appears to rein in risks that financial institutions could take so that they don’t get into trouble again and need the tax payers’ shoulders to stand on again. Is this a bill you could support if it had tweaks to it?

Ron Paul: No, not at all. Because you’re not addressing the real problem. The real problem is the Federal Reserve has been designed and it has operated since its very beginning… it’s the lender of last resort. That means that there will always be people too big to fail. This idea that you can regulate away the imbalances of the malinvestment and the debt problems that we have by just having more regulators there, I think that’s very deceptive. You have to deal with the system of money if you want to prevent the bubbles from forming. And they’re struggling right now to create the next bubble. They’re trying to build more houses. Can you imagine trying to stimulate the housing business and keeping prices up? Well, in a correction you want the prices to come down and you want the market to clear itself. But you don’t want to stimulate housing. So all these derivatives dealing with housing, mortgages and securities; they haven’t been liquidated. They have been all bought up by the tax payer, they’re held on the books. And this prolongs the agony and prolongs the correction. So, therefore, we can expect this to go on for a long time, even if you have blips and you get a government statistic that says you’re feeling better. But I’ll tell you what; people who are unemployed – and now the government admits that there are 20% unemployed.

News Anchor: They don’t feel better at all. What if we simply said, “You guys will fail. If you get yourself in trouble again, you will fail”? Now, Chris Dodd would argue that that’s going to be in this bill.

Ron Paul: Good luck. No, it’s not going to happen because you’d have to repeal the Federal Reserve Act to do that, because the Fed is there to prop up bad debt. And when the banks get into trouble, the Federal Reserve, that’s their whole purpose, to keep the system together by making sure the bankruptcies don’t just catch hold and precipitate…

News Anchor: .. authority that’s built into the system to break them up in an orderly way, such as we have the SNL crisis.

Ron Paul: Yeah, I’m sure the government can do things very orderly. That would be like breaking up the post office in an orderly fashion. They’re not going to do it that way. They are allowing the bubbles to be formed because it’s all based on a flawed concept of money and this idea that one person can sit in a room and come out and say, “Well, we’re going to continue this for an indefinite period”, and the markets say, “Ahh, we feel better now because Ben Bernanke is going to inflate the currency forever.” It will not last forever. That’s one thing I can guarantee you.

News Anchor: Representative Ron Paul, please come again. Thank you so much.

Ron Paul: Thank you.

News Anchor: He’s an independent thinker, that’s for sure.

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  • Dfens

    Under a Paul administration, the United States would trade freely with any nation that seeks to engage with us. American citizens would be encouraged to visit other countries and interact with other peoples rather than be told by their own government that certain countries are off limits to them. American citizens would be allowed to spend their hard-earned money wherever they wish across the globe, not told that certain countries are under embargo and thus off limits. An American trade policy would encourage private American businesses to seek partners overseas and engage them in trade. – Union Leader by Ron Paul

    And why does Ron Paul advocate these “free trade” policies with countries such as Communist Red China? Because he wants to turn the US into Communist China. He wants us to encourage their labor practices with our money so that our labor can be reduced to the same conditions. This is what the US will become under a Ron Paul administration:

    Wu compares the Chinese slave camps to the Nazi concentration camps (more on that in a future report), all to produce goods for the American market. The communist regime in Beijing is using the profits from American shoppers to build the military machine to destroy the freest society on Earth — a prosperous society enjoyed by those same American consumers.

    The authorities have names for the stages in the slave camps. Harry Wu went through three stages, first for 19 years and then a second time when he risked his life to go back to China so he and his associates could document (often through film smuggled out of China) the stomach-turning conditions to which the Chinese have subjected their slave laborers.

    1. Reform through labor (laogai).
    2. Re-education through labor (laojiao).
    3. Forced labor placement (jiuye).

    Wu calls the entire system “laogai.” He estimates 50 million prisoners have been sent to the system since the communists grabbed power in China in 1949. – News Max

    Like or Dislike: Thumb up 2 Thumb down 4

    • Berg

      Not sure I agree with you here.

      In my opinion, liberals are the ones taking us on the fast track to socialism/communism. Bigger government leads to more government control, which can lead to socialism if kept unchecked. This is exactly what Ron Paul is fighting against.

      You can tell how well a country is doing by looking at it’s poorest citizens, and how well they are doing. Sure they are probably not doing as well as two years ago, but we are certainly better off than China! Socialism doesn’t work. We saw it in ancient Rome, we saw it in the USSR.

      Now the EU is turning socialist and the US is next in line. Ron Paul is a die-hard conservative. If you are looking for someone to be Anti-Socialist, Ron Paul is your man.

      Like or Dislike: Thumb up 2 Thumb down 1

      • Fred the Protectionist

        Libertarianism promotes socialism by destroying the middle class.

        Like or Dislike: Thumb up 1 Thumb down 3

      • Berg

        Liberalism promotes socialism by wasteful spending on government programs.

        Socialist/Liberal = All powerful government. You make the same amount of money no matter what you do for a living, hence no incentive for training/education/to do better. All wealth accumulated goes to programs to feed the poor. Great in theory, fails miserably in practice.

        Libertarian = Power to the people. Power to the businesses. Anything BUT power to the government. If everyone in government nowadays were libertarian, the system would also fail.

        My case is that we need young people to support the libertarian idea, solely because we as a people are all falling more and more dependent on the government. The country was founded on limited government, and that is why we became superpower after only 200 years.

        We have found excellent balance before, and we can do it again. This is the true libertarian argument.

        Political parties have to duke it out knowing the other will keep them in check also. We can’t soley base our political system on purely limited government, and we most certainly CANNOT have an all powerful government.

        Like or Dislike: Thumb up 2 Thumb down 1

        • Fred the Protectionist

          Libertarian=Power to the blue bloods.

          Libertarianism promotes socialism.

          Like or Dislike: Thumb up 0 Thumb down 3

          • Libertarian777

            you keep saying this Fred, but your argument makes no sense.

            Libertarians are for LESS government. How can a smaller government = socialism?

            Like or Dislike: Thumb up 2 Thumb down 1

          • Fred the Protectionist

            So asked Karl Marx to Joseph Stalin, “How can a smaller government = socialism?”

            Like or Dislike: Thumb up 0 Thumb down 1

      • Dfens

        So child labor, slavery, denial of a living wage, pollution, these are all ok as long as it occurs under the right form of government? Use your brain. Think.

        Like or Dislike: Thumb up 2 Thumb down 3

      • Berg

        What, so you are saying you’ve lost all hope in “good people”, that we can’t take care of ourselves?

        If our government went bankrupt right now, and all of our creditors called in our debts, would you enslave someone? No. Could you pay for it? No.

        Look ahead at the road we are on right now. We are on the road to an all powerful government. It wasn’t Abraham Lincoln or JFK who created slavery. It was from the Europeans, who did NOT have FREEDOM of speech or religion, that slavery in the U.S. came from. Not everyone believed in slavery back then, otherwise we would not have had the civil war.

        The citizens of all powerful governments don’t trust anybody, including their friends and neighbors. There is a reason for that!

        The U.K. has cameras looking over sidewalks. Why? So people in the UK can spend all day watching their CCTV monitors on their computer, and point out who is throwing McDonald’s wrappers on the ground, and fine them.

        Never trusted the government, and never will. Of course! I’m GLAD I’m paying all these taxes to support your need for food stamps and welfare. Start going to work. Get off those greedy welfare programs you are on now and understand why the hell I feel like I do about these things.

        Life, Liberty, and Pursuit of Happiness. Notice I didn’t just type “Life, Liberty, and Happiness.” You are NOT ENTITLED to happiness on MY behalf!

        Of course freedom always comes with a price. The government is not responsible for you. Period. Stop thinking it is. Why should we as citizens have to pay for Auto and Bank bailouts? You know the true socialist would have given the citizens the money. It came out to about $8,000 per citizen. Now how good of a stimulus would that be?

        You guys might start thinking differently once this inflation catches up, and all those boxes of Hamburger Helper start costing $10 instead of $2.

        »crosslinked«

        Like or Dislike: Thumb up 2 Thumb down 0

    • Libertarian777

      “The communist regime in Beijing is using the profits from American shoppers to build the military machine to destroy the freest society on Earth ”

      Defence spending – 2008 ranking by Stokholm International Peace Research Institute:
      1. United States – $607 BILLION
      2. China – $84.9 BILLION

      Beijing would have to spend 7 times more than it is today on its military to catch up to the US.

      BUT

      the 2010 Defense bill is… $663.8 BILLION. Up 10% from 2008.
      That’s faster than China’s economy is growing so that defense spending gap is going to get even large. In just over a year the INCREASE alone in the US’ defense spending matches China’s ENTIRE spending for a year.

      Like or Dislike: Thumb up 0 Thumb down 1

      • Fred the Protectionist

        Oh look, a Libertarian defending China and blaming America. Oh how unusual (not).

        Like or Dislike: Thumb up 0 Thumb down 1

  • Dfens

    “Free trade does not require coordination with another government to benefit citizens here. Just like domestic businesses don’t pay taxes, foreign businesses do not pay tariffs – consumers do, in the form of higher prices. If foreign governments want to hurt their own citizens with protectionist tariffs, let them. But let us set a good example here, and show the world an honest example of true free trade. – Texas Straight Talk by Ron Paul

    Ron Paul is quite clear. He wants us to unilaterally remove all tariffs so we can compete against companies in China that poison their workers. Given that kind of uneven playing field either our companies will be forced to adopt similar practices to stay in business or they will simply have to close up shop and outsource all work to the Communist Chinese. That’s Ron Paul’s vision for America. He wants a United States of America where our workers can share in this:

    The mysterious illness began with an odd tingling of the fingers one week, a creeping numbness in the feet the next.

    Sometimes, deep and painful muscle cramps would wake the factory workers from their dorm beds. Weeks later, many of the workers simply couldn’t walk right, staggering across the factory grounds, and struggling with once-nimble fingers to clean the delicate touch screens used in trendy gadgets. They had no idea that as they worked, the solvent they used to clean the screens was attacking their peripheral nerves. Unseen damage left them weak, shaky and often in pain. Sometimes their vision would blur. Headaches were common.

    GlobalPost recently visited a hospital ward where more than two dozen sick workers remain under care for nerve damage sustained last summer at Wintek’s factory in Suzhou. After interviewing seven former and current workers, as well as families, friends and labor activists, plus reviewing medical records and corporate documents, we’ve learned the health damage done to workers is more severe than portrayed in previous accounts.

    All the workers interviewed said n-hexane — the chemical that made people sick — was used in making touch screens for Apple, particularly the iPhone and iTouch. Apple rejected repeated interview requests, refused to confirm whether its products were involved and directed questions to its 2010 Supplier Responsibility audit, which does not address chemical poisoning.

    In a highly competitive industry where consumer demand drives companies to squeeze costs out of complex supply chains, the Suzhou case raises broad questions in China about labor rights, worker safety and the thorny issue of compensation. – Reuters

    Now you can spin this all you want. I’m not an ass kissing politician, so to me what Ron Paul and his followers are is quite plain, and I’m calling it just as I see it, you are traitors to the greatest nation on the face of the Earth. You suck. If you love China so much, do us all a favor and move there, and quit trying turn us into them, you maggots.

    Like or Dislike: Thumb up 2 Thumb down 5

  • Citizen

    Mr. Forest, since inception the FED has resided over the creation of Reserve Notes, by monetizing our political spending. Back then an ounce of gold cost 20 Reserve Notes, now 1150 Reserve Notes will buy that same ounce. That’s a mere 5700% inflation over just 97 years, an average of 58% per year.

    Yes I know it’s that barbaric metal, but so is copper, zinc, platinum, silver etc. all things the Federal Reserve alchemist haven’t been able to print.

    I’ll grant you that there is little overt evidence of inflation right now, as it always happens just before the tide returns, the calm before the storm, etc.

    You remind me of the poor fellow who walked 500 yards into the ocean basin during the Tsunami tidal withdrawal in Sumatra Dec 07. Then the tourist shooting the video panned over to the 60’ high wave crashing in at 80 mph and it was clear he was fish food.

    Forest maybe you should consider higher ground.

    Like or Dislike: Thumb up 4 Thumb down 0

    • SS

      The inflation in food and fuel has been overt enough for many of us.

      Like or Dislike: Thumb up 1 Thumb down 0

      • Fred the Protectionist

        The cause of that inflation is “Market Liberalization”, you.

        Like or Dislike: Thumb up 0 Thumb down 2

  • Citizen

    HEY DFENS, you’re confusing protection of Property Rights and the Rule of Law with a Free Market discussion. Stay on topic, it’s illogical to argue trade “Protectionism” as a solution for curbing Criminal activities.

    RP is not advocating anarchy in trade policy!

    This forum is about Fiscal Responsibility, sound money and Protection of the US Citizens from Federally sponsored bank robbery, aka fiat Federal Reserve Note currency.

    Like or Dislike: Thumb up 3 Thumb down 0

    • Fred the Protectionist

      “RP is not advocating anarchy in trade policy!”

      Yes he is.

      Like or Dislike: Thumb up 2 Thumb down 5

      • SS

        Would you elaborate, Freddie?

        Like or Dislike: Thumb up 1 Thumb down 0

        • Fred the Protectionist
          • SS

            That is nice, Freddie. A piece from Ron Paul about the dangers and unconstitutionality of CAFTA. Looks like he was right again, Freddie. I guess that makes you Ron Paul’s newest fan.

            Like or Dislike: Thumb up 4 Thumb down 1

          • Fred the Protectionist

            Trade treaties aren’t unconstitutional, fruitcake.

            Like or Dislike: Thumb up 1 Thumb down 3

    • http://www.yahoo.com Bottomline

      RP has been a staunch opponent to job killing free trade agreements that Clinton and Bush endorsed!

      Like or Dislike: Thumb up 0 Thumb down 1

      • Fred the Protectionist

        Ron Paul is worse than free trade agreements. He would lower us trade barriers to zero while foreign markets would be even more closed off to US exports.

        Like or Dislike: Thumb up 1 Thumb down 1

  • Citizen

    HEY FOREST, back in 1980, we paid $1.05 for gallon of Gas, today $2.67, hmmm 260% INFLATION, or about 8.7% avg. a year.

    Now how much has the FED banking system been paying depositor on savings, about 3%-5%. That’s only a NET LOSS on personal savings of 4-6% a year AND the FOOLS have been paying taxes on that too, insult to injury!

    That’s why RP is trying to school you clueless tools of the Status Quo!

    Like or Dislike: Thumb up 1 Thumb down 0

    • Fred the Protectionist

      OIL is an import, and OIL has risin’ because free trade destroyed the “petro-dollar”.

      Like or Dislike: Thumb up 1 Thumb down 2

  • Dfens

    The mysterious illness began with an odd tingling of the fingers one week, a creeping numbness in the feet the next.

    Sometimes, deep and painful muscle cramps would wake the factory workers from their dorm beds. Weeks later, many of the workers simply couldn’t walk right, staggering across the factory grounds, and struggling with once-nimble fingers to clean the delicate touch screens used in trendy gadgets. They had no idea that as they worked, the solvent they used to clean the screens was attacking their peripheral nerves. Unseen damage left them weak, shaky and often in pain. Sometimes their vision would blur. Headaches were common.

    GlobalPost recently visited a hospital ward where more than two dozen sick workers remain under care for nerve damage sustained last summer at Wintek’s factory in Suzhou. After interviewing seven former and current workers, as well as families, friends and labor activists, plus reviewing medical records and corporate documents, we’ve learned the health damage done to workers is more severe than portrayed in previous accounts.

    All the workers interviewed said n-hexane — the chemical that made people sick — was used in making touch screens for Apple, particularly the iPhone and iTouch. Apple rejected repeated interview requests, refused to confirm whether its products were involved and directed questions to its 2010 Supplier Responsibility audit, which does not address chemical poisoning.

    In a highly competitive industry where consumer demand drives companies to squeeze costs out of complex supply chains, the Suzhou case raises broad questions in China about labor rights, worker safety and the thorny issue of compensation. – Reuters

    I say we expose Ron Paul and his family to some n-hexane. He can live in a dorm, make $220 a month, and we’ll see how much he is in favor of “free trade” after that. In the mean time, maybe he can release another “podcast” on how great “free trade” has been for this country.

    Like or Dislike: Thumb up 5 Thumb down 8

  • F

    I believe you are entrenched in the wrong discussion, that is, who is wrigt or wrong.

    The main point is that the current economic system does not work for the current world, it obviously has not been working for several decades and the problems accumulated to detriment of most people.

    And the solution is beyond population management as may have been done in the past. Notice that knowledge is maximum, population too, communication is more than optimal, tools for defence can not be fancier and speedy, tools to improve health and society for real have never been better, tools for education are abundant, and entertainment is beyond could have been imagined before. Ah, also pollution is abundant.

    There is only one thing missing for a better world: an economic system that takes into account the above and the means to earn what is needed at all stages of life, and for everyone. Of course that at levels according to real effort and productivity.

    But people just want to be the first and only triunfant gladiator and owner of the truth, when what is needed is to own the means to live life better without having to make others suffer.

    Competition yes, but thievery/tripping/illegal shortcuts to achieve most wealth and fame for a few at the expense of others is a big NO.

    Now, why is it then that experts in economy don’t find a way to adjust the economy to a system beyond bubbles and wars? maybe because of the previous conditioning, it clouds reasoning and has as only goal to get revenge by becoming part of the wealthy elite, and the status and power to continue to pick on the bottom majority?

    I think people have the focus in the wrong goal for life, and that would be really their bussiness, the trouble is that with so much available and so many people feeling like conquerors peaceful humans can not keep the world viable.

    Like or Dislike: Thumb up 2 Thumb down 0

  • longshotlouie

    Looks like the spam team had a few Red Bulls.

    lmao

    Can you smell the fear?

    Like or Dislike: Thumb up 5 Thumb down 2

    • Forest

      Spam? I would say this raises a couple more points than your average ‘Buy Viagra’ junk mail you receive.

      Care to respond on how incorrect Ron Paul has been over the past 30 years or you just going to toss out folksy little sayings? Or are you still in the corner waiting for that 100%+ hyperinflation RP was COMPLETELY wrong in ‘predicting’ 30 years ago? (I mean, if we were fortunate it would ‘only’ be 100% according to RP’s actual words.)

      ************************
      New RP Slogan: “Wrong For 30 Years And Still Raking In The Contributions”

      So why does anyone still put any stock in what this crackpot thinks is going to happen? How did this same ’sky is falling’ crap work in the 1980’s? Here is Ron Paul’s prediction of what would happen in 1983:

      “In America, hyperinflation will not be the relatively “moderate/7 steady 100 percent per year or so that Israel or that many countries in Latin America have experienced. For in these small countries, particularly in Latin America, the currency becomes only hand-to-hand cash; all investments move to the U.S. and the dollar. The United States would not be so fortunate.”

      ‘How’s that gloomy-doomy stuff workin for ya Dr. Paul’? He better rake in the contributions now, because when this country comes out of this recession he will have to go back to pandering to racists, bigots, and truthers:

      http://www.dailykos.com/story/2007/5/15/124912/740
      ************************

      Like or Dislike: Thumb up 1 Thumb down 12

      • longshotlouie

        You are standing in the middle of the crumbling system, defending the same. We are seeing that he was correct while you stand in the middle of the crumbling system saying “NO, He’s Wrong”.

        Your position is indefensible. Your grasping at straws, ………. worn out straws.

        Ron Paul was Right

        Like or Dislike: Thumb up 4 Thumb down 2

        • Forest

          Ron ‘Chicken Little’ Paul Was Wrong

          “We probably will see widespread civil disorder in the 1980’s as a direct result of our faltering economic system.”
          http://mises.org/books/goldpeace.pdf

          Where was that civil disorder in the 1980’s? WAIT no he really meant the 1990’s! WAIT no really, he meant the 2000’s! WAIT no he really meant the 2010’s!

          See a pattern here LongshotNotNostradamus?

          Like or Dislike: Thumb up 1 Thumb down 8

          • longshotlouie

            Crumbling, and desperate.

            The same tired arguments you’ve ben trying over and over.

            The last bubble is inflating, and you’re out of ammo.

            Like or Dislike: Thumb up 3 Thumb down 2

          • Forest

            Funny, why aren’t you saying Ron Paul’s arguments are “crumbling and desparate”? He has been calling for the literal devolution of this nation to mass hysteria for… Nearly 30 years now? And you are still following your Chicken Little?

            Ahhh, so THIS is the last bubble? Prepare for the economic rapture! It is coming! Well, I mean the last time I was wrong, but THIS time I am right! Send me money as you don’t need it anymore because SOON, VERY SOON my flock we will face the long-forecast economic rapture!

            Like or Dislike: Thumb up 1 Thumb down 6

          • longshotlouie

            If you’ll stand on a chair when you speak, I might let you save me.

            Like or Dislike: Thumb up 1 Thumb down 2

          • http://www.yahoo.com Bottomline

            Good luck saving us Forest! Because you’re going to have to come up with a better way why we shouldn’t support Ron Paul! You’re going to have a very tough time.

            Like or Dislike: Thumb up 4 Thumb down 1

      • http://www.yahoo.com Bottomline

        Eh! Sorry we don’t speak Pig-Latin Forest, Fled, and Defens on how these rediculous accusations of RP’s theories on his outlook of our financial future

        Like or Dislike: Thumb up 0 Thumb down 1

  • Kilo

    Bubble, bubble, when is the next bubble. Ron Paul is right on point. Fortunes are made by some and lost by others on these wonderful bubbles. Sounds like a racket to me. One of my favorite interviews was when Greenspan said he saw the housing/stock market bubble coming way before it exploded but there was nothing he could do about it. Can you imagine those words coming from the head of the Federal Reserve?I would have called Bush at 3am and had him on national tv declaring that we have a national emergency and that the issuing of no documentation ARM loans has been banned immediately. Maybe we would have several thousand less forclosures now. Just a thought. Also some politicans think the Fed needs more power and no auditing???? Mr. Dodd thinks the Consumer Financial Protection Agency should be a unit of the Fed???? The frightening thing to me is the destruction from these bubbles has increased ten fold with each new one, and those in power say there was nothing they could do to stop it. Admission of incompetence from these guys is not acceptable to the American public any more.

    Like or Dislike: Thumb up 5 Thumb down 2

    • Forest

      Now that isn’t very libertarian of you. Why would you EVER try and manipulate free markets in such a way?

      “I would have called Bush at 3am and had him on national tv declaring that we have a national emergency and that the issuing of no documentation ARM loans has been banned immediately.”

      I want the Government OUT of my free markets! The Government ALWAYS screws things up, Free Markets know best!

      Like or Dislike: Thumb up 0 Thumb down 4

  • Forest

    New RP Slogan: “Wrong For 30 Years And Still Raking In The Contributions”

    So why does anyone still put any stock in what this crackpot thinks is going to happen? How did this same ‘sky is falling’ crap work in the 1980’s? Here is Ron Paul’s prediction of what would happen in 1983:

    “In America, hyperinflation will not be the relatively “moderate/7 steady 100 percent per year or so that Israel or that many countries in Latin America have experienced. For in these small countries, particularly in Latin America, the currency becomes only hand-to-hand cash; all investments move to the U.S. and the dollar. The United States would not be so fortunate.”

    ‘How’s that gloomy-doomy stuff workin for ya Dr. Paul’? He better rake in the contributions now, because when this country comes out of this recession he will have to go back to pandering to racists, bigots, and truthers:

    http://www.dailykos.com/story/2007/5/15/124912/740

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    • Ragnar

      Ron Paul wasn’t wrong, just early. He clearly underestimated the banksters’ capability to keep reinflating the bubble. Who knows what they’re up to next? Roll everything over into a world currency? Once thing’s for sure, this system can’t last forever.

      Like or Dislike: Thumb up 2 Thumb down 1

      • Forest

        Wow ‘he wasn’t wrong, just early’?

        Do you think a doctor says ‘sorry, you are going to die within the next year’ and you live another FORTY YEARS that doctor was not ‘wrong’ they were ‘just early’? Would you ever think that doctor knew what they were talking about ever again?

        Actually no. He WAS WRONG. He gave you a prediction, and a timeframe. The prediction DID NOT HAPPEN. How is that not wrong? This is the continuing, pathetic, rationalization of someone who sees only what they want to see. Unfortunately typical glossing over by a Ronbot.

        “We probably will see widespread civil disorder in the 1980’s as a direct result of our faltering economic system.”

        The 1980’s (as well as the 1990’s, and the 2000’s) have come and gone. And there WAS NO “CIVIL DISORDER”.

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        • longshotlouie

          You’ve got to love Forest for his fortitude.

          He couldn’t make any ground with his previous bullshit, so he finds a garbage can from 2008 filled with the tattered and useless attempts to sidetrack Paul. Then he pulls one of these disposed of relics and wipes away the refuse.

          It wouldn’t sell then, and with the l’odeur des ordures he thinks that he can sell it now.

          Got to love him for never giving up.

          Ride that bubble

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          • Forest

            “finds a garbage can from 2008 filled with the tattered and useless attempts to sidetrack Paul. ”

            Keep living in that rabbit hole.

            Remind me again how Ron Paul did in the primaries? What percent of the vote did he get?

            Right.

            So then, why are these simply ‘attempts’ and not something you would prefer to take seriously?

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          • longshotlouie

            “Remind me again how Ron Paul did in the primaries? What percent of the vote did he get?”

            OK, MattForest … let us use your distorted logic.
            Why are you and your ilk working so hard to bring down someone that did so poorly in the primaries? Why has your ilk started this ‘surge’?

            You might need another energy drink for this one.

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        • longshotlouie

          Oh wait, I meant to say:

          Ride that garbage can!!

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  • Forest

    Riiight. This just in:

    Producer Prices in U.S. Dropped More Than Forecast

    March 17 (Bloomberg) — Wholesale prices in the U.S. fell in February more than anticipated, led by a drop in fuel costs and signaling there are few inflation pressures building in the early stages of the economic recovery.

    The 0.6 percent decrease in prices paid to factories, farmers and other producers was the biggest since July and followed a 1.4 percent January increase, according to figures from the Labor Department in Washington. Excluding food and fuel, so-called core prices climbed 0.1 percent.

    Companies will probably continue to hold the line on prices as the expansion has yet to soak up enough excess capacity or create jobs. The report bears out forecasts by Federal Reserve policy makers, who yesterday retained a pledge to keep the main interest rate near zero for an “extended period,” and said “inflation is likely to be subdued for some time.”

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    • longshotlouie

      The Federal Reserve policy makers have just made Forest feel better.

      After all, isn’t that what is important here?

      Like or Dislike: Thumb up 3 Thumb down 0

      • Forest

        Or maybe you are still worshipping at the altar of John Williams (don’t forget to send him your hard-earned money too!) of ‘Shadowstats’ fame?

        He too has been calling for a ‘Hyperinflationary Depression’ and the basic collapse of civilization since April of 2008 (granted Ron Paul has been calling for a collapse in civilation since 1981 so he has a couple years on Williams)… But it’s like he took a page right out of Ron Paul’s ‘how to fleece money out of people that scare easily’ book!

        John Williams, April 2008:

        “The U.S. economy is in an intensifying inflationary recession that eventually will evolve into a hyperinflationary great depression. Hyperinflation could be experienced as early as 2010, if not before, and likely no more than a decade down the road.”

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        • longshotlouie

          They continue to be correct, and you continue to be wrong.

          Enjoy the dead cat bounce, and the next wave.

          Like or Dislike: Thumb up 3 Thumb down 0

          • Forest

            Right… Things are still bleak in the rabbit hole, eh Louie? The 1980’s were mass hysteria and replete with social unrest (Ron Paul really nailed that one) and we are in a “hyperinflationary depression” (John Williams, totally worth the money for that drivel) . Mind you JW is not referring to ‘inflation’ in the wonky Austrian sense, but the actual increase in prices. So that would be a ‘wrong, wrong, and WAYYYYY wrong’

            MAN, with advice as incredible as this, NO WAY is there a credibility issue on predicting the future.

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          • longshotlouie

            Saved By The Bubbles, until you are wiped out by the bubbles.

            Tell us everything is just fine, Forest
            but don’t forget to convince yourself.

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          • Forest

            Where do you get these folksy sayings that make no sense?

            I’ll keep waiting, on pins and needles nonetheless, for our imminent Economic Rapture that your Economic Priest predicted would ACTUALLY happen in 1983. I mean it is 2010, but who is splitting hairs really?

            Your neck must get sore waiting for the sky to fall for 30+ years. Keep hope, that we will all abandon hope, alive!

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          • longshotlouie

            Just continue your crusade to save the masses, MattForest.

            Everything gonna be OK

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      • Forest

        You might want to coordinate with this Ron Paul supporter:

        http://www.ronpaulforums.com/showthread.php?t=134320

        ********************************************
        Sep 2007
        “With the rise of food costs coming up this weekend”!!!!
        ********************************************

        AHHHHHHHHH HYPERINFLATION THIS WEEKEND! I mean THREE YEARS AGO! I mean tomorrow! What I really mean is I HAVE NO CLUE AND JUST LIKE LIVING SCARED!

        Like or Dislike: Thumb up 1 Thumb down 3

        • longshotlouie

          Show us a little more desperation. We like that.

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    • Lindsey

      Forest: What expansion does this article that you posted refer to? This country is not having an expansion. The article also excludes climbing food and fuel prices. These are middle America’s most basic expenses and when they go up it hurts them the most. Forest, I have to ask you, would you trust Ben Bernanke with your money? He is operating a scheme very similar to Bernie Madoff’s ponzi scheme except that he doesn’t need to continuously sell new investors to pay off his old ones. He simply increases the speed of his printing press!

      Like or Dislike: Thumb up 3 Thumb down 1

  • Fred the Protectionist

    If it were a simple matter of fiat money supply being artificially inflated, than wages would inflate along with the price of goods and services. Wages haven’t inflated.

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    • SS

      thank you for the neo-keynesian report, but do you have any arguments that are specific to the video?

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      • Fred the Protectionist

        Obviously the problem isn’t the FED cause there is no wage inflation.

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        • longshotlouie

          Happy Days Are Here Again !!!

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        • Forest

          Actually, in the Austrian sense ‘wage inflation’ doesn’t exist because ‘inflation’ doesn’t refer to an increase in prices or wages, it’s an increase in the general money supply.

          C’mon, aren’t y’all up on your wonky Austrian Economic defintions that noone uses except a tiny portion of Ron Paul followers?

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          • longshotlouie

            Was that the sound of synapse firing?

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    • Lindsey

      Fred- The supply of money has been inflated.

      Like or Dislike: Thumb up 2 Thumb down 0

      • Fred the Protectionist

        Then where is the wage inflation.

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        • longshotlouie

          So the money supply has not been inflated?

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          • Forest

            If there has been (in the Austrian sense) such an explosion of ‘inflation’, how come prices over the past two years have been flat/decreased?

            I have my reasons but would like to hear your theory on how ‘inflation’ really doesn’t translate into ‘inflation’. Oh hmmm, actually let me guess – the answer is ‘oh just you wait, dont underestimate those banksters’. I mean, isn’t that always the Ronbot answer to everything? Like a mental papering over of being wrong which leads to the blissful state of cognitive dissonance.

            Consumer Prices in U.S. Unchanged as Fuel Decreases

            “The cost of living in the U.S. was unchanged in February, underscoring the Federal Reserve’s forecast that inflation will remain low as the economy recovers.”

            http://www.bloomberg.com/apps/news?pid=20601087&sid=aWDVF.ax8HCU&pos=3

            You must be really frustrated

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  • Greg Harrington

    Comment to site admin: I love *reading* this blog, not watching the videos, so…when you post them before the transcript is complete, I miss 100% of the content since I only read them from my RSS feed.

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