Ron Paul: America Is Hurting While the Fed’s Cronies Enjoy Full Employment and Jackpot Bonuses




by Ron Paul

Unemployment continues to plague our economy. In spite of constant claims that we have just turned the corner into recovery, the jobs report remains grim with no real signs of improvement. While Keynesian economists and big government apologists scratch their heads about persistent unemployment in spite of unprecedented government so-called “investment” in the economy, free-market economists understand the problem perfectly well. In short, they understand that we are looking to the Federal Reserve to solve an unemployment crisis that the Fed itself largely created.

For example, the Fed is supposed to maintain full employment as half of its dual mandate. But the Fed simply has the wrong tools to do this. In fact, its credit expansion and manipulation of interest rates cause harm when they are applied to “help the economy.” As we saw with the housing boom and bust, Fed-created inflation cannot be sustained without harmful consequences. The Fed’s artificial boom led to the unemployment we’re suffering today.

The Fed is not a small business or a manufacturer that creates value or increases productivity to sustain real job growth. It literally destroys value by printing more money and distributing it through sweetheart deals to well-connected banks and corporations, including foreign banks. The only success the Fed has had in maintaining full employment has been on Wall Street, where it props up crony banks and investment houses to protect them from going bankrupt as they should. Instead they survive to malinvest another day while their executives enjoy jackpot bonuses.

The Fed also pumped up employment in the housing industry with artificially low interest rates that created an unsustainable demand for housing. Millions jumped into the sector when the money was loose and the bubble inflated. Besides the many who bought houses they could not afford and now face foreclosure, there were also those who became employed in housing-related fields. These people invested time and money in training and spent years establishing careers in real estate, mortgage lending, construction and contracting. Careers that all vanished into thin air with the burst of the bubble. Now they face considerable disruption in their lives as they struggle with unemployment, underemployment, and decisions about retraining for different careers. This amounts to a tremendous amount of unnecessary waste that would not have occurred had the housing industry be allowed to develop naturally according to market demands.

Jobs are properly created by entrepreneurs who are willing to work hard and take calculated risks. Jobs are also created through real increases in productivity, resulting from real investment profits or conservative borrowing at market interest rates. But the Fed has made those risks impossible to calculate and made borrowing money artificially cheap. As a result, economic growth has been chilled while unemployment skyrockets.

Until those in power understand the harm they do with central economic planning, we will continue to slide backwards and lose jobs. The Fed needs to stay out of the job-creating business altogether, and the federal government needs to focus on its constitutional duties. Just when we need government to back off, we hear about more government intervention in the economy in the form of “more spending”, only they call it “investment”. It is more properly called “malinvestment”, and the resources that are funnelled into industries by government policies will only hurt employment more in the long run.

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119 Comments:

  1. How many times, from how many sources must we review history and OVERSTATE what is KNOWN ? Seriously. We know What happened. We know WHY it happened. We Know how it could have been avoided. We are reasonably certain that by not doing the same thing a different result will happen - SO .what's the problem. Why aren't we doing it? Why aren't we talking about how we can and will make progress simply by not doing what was done ?

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  2. Does anyone really think that Dr.Paul running is going to make him president. Even if he gets the majority of the vote, it can easily be staged and none would be the wiser.

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  3. Livefreerevolution

    As usual Ron Paul is....RIGHT!

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  4. Once again you make perfect sense! Thank you Mr President…. Oops! I mean Ron Paul… :)

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  5. Legalize competing currency!!!

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  6. The US is in for a BIG wake up call. The R's and D's who have been spouting ignorant chatter all these years will look back and see that Dr. Paul and other free-market champions were right. Dr. Paul, please run for President. May you help redirect this country and help prevent an utter collapse of this great country.

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  7. RP12! V

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  8. PLEASE RUN FOR PRESIDENT!!

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  9. I hope you will run.

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  10. Yes...I'm an Architect for the past 8 years. Went to Columbia U. NO JOBS! I stopped sending out resumes for a job to save paper to build my cardboard house to live in. My UI ran out after 3 months. I don't even get a wet food stamp anymore. I'm one of the millions the government hopes can just disappear.

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  11. Inflation is definitely theft.

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  12. quiet running your mouth and do something run for president mr paul stand up!!!!!!

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  13. We need you now!!!! RUNNNNNNNNNNNNNNNNNNN!!!!!!!!!!!!!

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  14. noyouaintgettingit

    RUN RON RUN!!!

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  15. Paul and Jesse for 2012 to kick out corruption once and for all.

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  16. Paul in2012

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  17. keep spreading the truth

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  18. RUN PAUL!!!!

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  19. If Ron can end the fed, that would do far more good for the US than him being elected president. All the other excessive government programs and militarism would come to an end without the printing press.Ron knows this and everyone needs to keep the pressure on the theives behind the curtain.

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  20. Don't cooperate with banks, corporations! Don't give them anything! Organize! Say it to your friends! Thanks! Good Luck!

    Invite me who like my channel for Truth to be heard!

    Good luck Good People! V!

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