Ron Paul on the Economy

[Sassy]

  Ron Paul Blasts "Secret Government" Running Economy
watch video http://www.youtube.com/watch?v=KX9r-L1gKQc&eurl=http://www.infowars.com/?p=4619
Congressman warns middle class in danger of being wiped out, says Congress is oblivious and Fed has no clue

Steve Watson
Infowars.net
September 18, 2008

Congressman Ron Paul has issued a stinging address concerning the financial crisis in which he outlines how the current economic problems, created via malinvestment and shift to a debt based economy, are now being mismanaged by private interests in secret.

What's more he says he is not sure the Federal Reserve has any idea what to do next and that the Congress is totally oblivious to the whole sorry state of affairs - a cocktail of elements he warns puts the middle class of America in serious jeopardy.

"Today we had a lot of financial fireworks in the markets, a lot of things are going on, and I think we are in the middle of something very big." the Congressman stated.

Speaking on the recent collapse and government bailout of several big financial institutions he warned:

"We're talking about big bucks, we're not talking about hundreds of millions or even hundreds of billions, we're talking about trillions of dollars, the obligation is immeasurable."

"The interesting thing is that they (the financial institutions) don't come to the Congress, I mean the Federal Reserve buys them out, they own it. We as tax payers now own Fannie Mae and Freddie Mac and know one knows how much that will cost. They don't come to the Congress, we don't have appropriations, it's done by secret government, private individuals behind the scenes maneuvering and manipulating and trying to patch things up. While in the meantime, I'm sure there's a few people making a couple of bucks out of this whole thing."
The Congressman highlighted how an economy structured on debt and credit and a financial system based on interventionism and self serving moral hazard has led to gross devaluation of the dollar and ultimately lies at the root of the current financial meltdown.

"Our problems come first of all from the Federal Reserve. It is a monopoly and it controls interest rates artificially low, causes people to make mistakes, that's the basic source. But then on top of that in the Housing market we had the community reinvestment act which told investors that they had to loan to risky borrowers, and that was a risky complication. HUD contributes to this, FDIC contributes, it's called moral hazard, everything that we have done over here creates moral hazard, that is we assure people or assume that we will take care of everybody, just go out and create the risk, it is the opposite of the market place." Paul stated.

"You can't create money like we're doing in order to support the dollar, because ultimately it hurts the dollar and everything we do in Washington today whether its on the appropriations side, whether it's what the Fed is doing, buying up America, it's all putting pressure on the dollar. One of these days we're just going to have to wake up and say that we need to liquidate debt. This is malinvestment." he urged.

The Congressman then slammed those who have blamed the crisis on failures of the free market:

"And then they have people come along and say 'see, this is the failure of capitalism', this has nothing to do with capitalism, this is something that started off as interventionism and us being too involved in the economy for the benefit of special interests. But now it is being socialized out in the open."

"The end of this comes when people reject the dollar and I think we're getting awfully close to this." Paul stated echoing comments from leading investors such as Jim Rogers, who predicted Monday that the dollar would soon lose its world reserve status.

"When you see the movement in the markets that we have today, you know that there are serious problems out there and Congress basically are oblivious, they have no idea what's going on." Paul continued.

"As a matter of fact I'm not even sure the Federal Reserve has any idea what to do about this. They've been manipulating and maneuvering for their own benefit over the years but eventually the market wins out."

The Congressman's comments were echoed today by reports indicating that the Congress cannot agree on any form of action and is likely to simply adjourn and "get out of the way".

Senate Majority Leader Harry Reid told reporters that "no one knows what to do".

In a stark warning, Ron Paul stressed that the longer the value of the dollar is allowed to depreciate, the greater the risk becomes for the majority of Americans:

"The reason this is so important is that if you care about people in a humanitarian sense, what you want to do is protect the value of the money. Just think of the third world nations when they have total run away inflation, the middle class gets wiped out. And what we are seeing today is the middle class being jeopardized by this type of system that we have, unlimited spending, unlimited debt, unlimited creation of new credit."
"So it's time that we wake up... The answers are in the free market, sound money and our Constitution." Paul concluded.
http://www.infowars.com/?p=4619

[StinkerBell]

Ron Paul was on Glenn Beck to night discussing this.

[apaknad]

he would have had my vote as a presidential candidate but the national news cabal made him to look like a whacko. now he's the lone voice crying out of the financial wilderness. muldoon, keep typing, although i saw this mess coming years ago(did not know how it was going to manifest) i don't have the understanding of the details that you do and appreciate your insight. just as a thought i wondered a long time ago what would happen to the dollar if the people in charge slowly started to back it with silver or gold again(incremental small percentage steps)? any thoughts on that? i know it's too late to help now but just something to mull over at 4:45 am.

[apaknad]

i guess if i am going to rant i might as well let it all hang out. we are financially, morally, spiritually bankrupt as a nation. we turned our back on God and he has taken away the protection that we have had thanks to our forfathers and now we are in a mess of our own creating. we can't protect our borders, we send are armies to fight wars that have nothing to do with our divinly inspired constitutional directives(the patriot game), we are killing babies in the name of women's right to choose(it might be your body but the babies body/soul is not), secret government within elected gov't that allows greedy unscrupulous bankers and power brokers to buy off and manipulate our unrepresenting representatives, hidden agendas that undermine help given to people in need(if you're going to help somebody don't do it with the idea of what's in it for me?). taxation above 50%(we fought our war of independence because of a 17% tax), court interventions in the family that allow marriages to easily break up instead of trying a little harder to make it work that leads to more single family households and children getting into serious trouble and vicious gang influences. until we turn back to our creator and acknowledge that we are lost w/o him then it will only get worse, not better. it is not within the power of man to straighten these problems out. Pogo, we have found the enemy, and he is us.

[ScottA]

Dead on apaknad. But don't forget they sold us this mess wrapped up in a giant red white and blue lie. Everything they have done for the last 40 years was sold as all american and patriotic. Now we have an all american mess.

[glenn kangiser]

They have also brainwashed the American public to where they can't see the conspiracy in front of their face, it is also unpatriotic to question it (black is white).

"The individual is handicapped by coming face-to-face with a conspiracy so monstrous he cannot believe it exists." J. Edgar Hoover

Don't just read that.....think about it.  They are blinding us.  All of the things you want to think they couldn't be evil enough to do, they are doing because they know 95% of the brainwashed people don't want to look.

Things are changing.  Only about 18% now think the emperor is wearing clothes, some wonder if he has clothes, some are pretty sure he doesn't and many can see the naked fool sitting there.

[Sassy]

i guess if i am going to rant i might as well let it all hang out. we are financially, morally, spiritually bankrupt as a nation. we turned our back on God and he has taken away the protection that we have had thanks to our forfathers and now we are in a mess of our own creating. we can't protect our borders, we send are armies to fight wars that have nothing to do with our divinly inspired constitutional directives(the patriot game), we are killing babies in the name of women's right to choose(it might be your body but the babies body/soul is not), secret government within elected gov't that allows greedy unscrupulous bankers and power brokers to buy off and manipulate our unrepresenting representatives, hidden agendas that undermine help given to people in need(if you're going to help somebody don't do it with the idea of what's in it for me?). taxation above 50%(we fought our war of independence because of a 17% tax), court interventions in the family that allow marriages to easily break up instead of trying a little harder to make it work that leads to more single family households and children getting into serious trouble and vicious gang influences. until we turn back to our creator and acknowledge that we are lost w/o him then it will only get worse, not better. it is not within the power of man to straighten these problems out. Pogo, we have found the enemy, and he is us.

Right on, apaknad!

[MikeC]

For more on this subject, read "Creature from Jekyll Island" by G. Edward Griffin, about the machinations leading to the creation of the "federal" reserve.  Your blood will boil.

[apaknad]

my blood boils just "thinking" about the federal reserve(which is no more federal than federal express).

[Sassy]

You aren't kidding!  I read that about 3 yrs ago  

[muldoon]

Mr. Paul was on fox news earlier and tried to speak out about whats going on.  Due to technical difficulties he just faded out and was dropped.

http://www.liveleak.com/view?i=8a2_1221923073

[glenn kangiser]

Not a surprise ...and you think the media isn't owned by gov? hmm

[Sassy]

A little more background on the mortgage fiasco...

Clinton Pressure to Promote Affordable Housing Led to Mortgage Meltdown
Posted by Hans Bader
The current mortgage crisis came about in large part because of Clinton-era government pressure on lenders to make risky loans in order to "make homeownership more affordable for lower-income Americans and those with a poor credit history," the DC Examiner notes today.   "Those steps encouraged riskier mortgage lending by minimizing the role of credit histories in lending decisions, loosening required debt-to-equity ratios to allow  borrowers to make small or even no down payments at all, and encouraging lenders the use of floating or adjustable interest-rate mortgages, including those with low 'teasers.'"

The liberal Village Voice previously chronicled how Clinton Administration housing secretary Andrew Cuomo helped spawn the mortgage crisis through his pressure on lenders to promote affordable housing and diversity.   "Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments.


http://www.openmarket.org/2008/09/16/clinton-pressure-to-promote-affordable-housing-led-to-mortgage-meltdown/