Friday, September 19, 2008

Ron Paul on the Financial Crisis...

It is no secret here that I have been a long term supporter and admirer of Ron Paul's message for a return to constitutional government, balancing the federal budget, and reducing government interventionism in markets, foreign affairs and legislated morality measures. Fortunately, at least for now, Rep. Paul is still attending to affairs on Capitol Hill and continuing like the "voice in the wilderness of reason" to communicate directly to the people the continued farce that is our current Federal government.

I think this video on the latest financial debacles hits many points squarely:

• The Federal Reserve monopoly on our money and our system of enterprise needs to be halted as soon as possible. The congress, nor anyone else for that matter, seems to have any affect or control on this non-elected body of bureaucrats who in a vacuum make all the major decisions in our country regarding currency release, interest rates...just generally controlling our economy with no checks and balances. SCARY!

• Our government needs to STOP its interventionist policies throughout the world. On top of Iraq, Afghanistan, N Korea, Iran and the rest of the Middle East, we now are RE igniting the cold war with Russia over the Georgia conflict. We just gave Georgia another 1 BILLION for defense and "humanitarian aid"...which we don’t have in the coffers to give.

• The diluting of our currency, the dollar, will continue to set us up for economic devastation and the wiping out of our middle class in purchasing power, retirement funding, or having any money to invest in small businesses...which are the lifeblood of our economy.

• We are working with our "friends" the Chinese to make more guarantees for all the currency debt they hold of ours. All this to keep them from making a run on our currency and in essence kicking out from under us a third or fourth leg of support for our country's system.

If all that isn't scary about THIS picture today of the government "leaders" who are coming to our rescue with this new multi-TRILLION dollar plan to bail us all out?

Makes me feel so much more about you?


Hank Robinson said...

Ron Paul is right.

In my business I deal with this crisis on a daily and hourly basis. We have to look at the root of this problem created a long time ago. Like Ed says, I believe looking at the root problems such as the Fed and privatization of Fannie Mae and Ginnie were main causes that need to be evaluated.

Initially I was upset with the fat cats that are sitting on a beach somewhere reaping the profits of this debacle while we bail out Bear Stearns. Unfortunately, I have come to realize this has to be done.

It would be great to say let them suffer but it is my "opinion" that it is a much bigger issue. We ourselves and the economy would suffer more if we "let the chips fall where they may".

A big mess has been created by letting things get this far. To walk away now...well it seems this will not fix things. We have to get involved in these things and remember so it does not happen again.

Funny we thought that privatization would have less corruption and manipulation but this has not been the case. Most people have no idea where their mortgages have gone. Even savvy real estate investors couldn't figure out who to talk to about these loans.

There was one I spoke with who hired someone to do nothing but call all day to find out who to speak to about these loans being traded on the market.

I'm saying we have to look at the root of what caused this.

Georgia is another issue. Personally I believe in their plight. This small Country is fighting hard for democracy and against Russia. I believe they deserve our support and unfortunately, only money talks.

Hopefully others will take our lead.

Other Countries in Europe are feeling a small downturn but not like the United States. They have old school banking in place which we will need to start moving toward. The United States is a great Country with hard working and the most innovative people. Still we need to pull back on this whole credit issue in all forms.

Go to Panama right now and try and buy a house or condo. One of the biggest banking centers in the world. If you don't have the cash, forget about it. This is reality.

Most of the people I speak with don't have a clue how serious the credit issue is in this Country. (And these are people feeling it the most.)

I believe in this Country but we are not close to the bottom. Mark my words, it will be two more years.

Timothy said...

Hi Ed,

You have to respect Ron Paul for having a unique perspective, and having the integrity to sticking to his beliefs no matter what the "popular" view of the day is. When I listen to him I find all of his criticisms of the Government are quite valid, but I think his proposed solutions are on the opposite side of the political spectrum to where I am.

For example, I don't know if this is Ron Paul or you, but abolishing the federal reserve and going back to the Gold standard is completely unviable. He seems to misunderstand the nature of the Federal Reserve. They aren't a bunch of non-elected bureaucrats, they are a group of the best economists in the country who's main task is to keep inflation in check and prevent a bank run or the financial system from collapsing. It is important that they are kept completely independent from Government, as they often have to make tough economic decisions which might hurt people in the short term but help the economy in the long term. The trade-off between inflation and unemployment is a good example of this.

Allowing alot of financial institutions to fall will cause a bank run, and potentially cause irreversible damage to consumer confidence in the banking system. Considering the foundation of the financial system is consumer confidence, the Federal Reserve has little choice but to nationalise the companies that are important to the continued existence of the financial markets as we know it.

Nevertheless, I think it is great that Ron Paul is bringing up all of these issues, and it's a shame that there isn't a democrat willing to do the same from a left-wing perspective.

Bibiana said...

Es, una lastima que los medios y los noticieros en Estados Unidos, solo se enfoquen en los dos candidatos que obviamente, mas dinero les produce por se de los dos partidos fuertes.

El estudio de los puntos importantes, en el vide de Mr.Paul, se nota que es un caballero con gran experiencia y capacidad para dirigir bien el pais.

Buena suerte.

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