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Old 09-20-2008, 02:55 PM   #1
Zarathustra
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Default Ron Paul: This Bailout Won't Be the Last

http://www.usnews.com/blogs/the-home...-the-last.html

Ron Paul: This Bailout Won't Be the Last

September 19, 2008 05:35 PM ET | Luke Mullins | Permanent Link

I recently chatted with Rep. Ron Paul (R-Texas) about the gigantic financial bailout that the government is preparing to undertake.

Some excerpts from the interview:

What's your take on this huge financial bailout?
"It's more of the same. More debt and more inflation and more pressure on the dollar. Ultimately, although the markets are responding very favorably at the moment, I think it is going to be devastating to the dollar and to our financial situation in this country."

But don't we need to get these toxic assets off banks' balance sheets?
"Sure, they need to be removed. Somebody needs to suffer the consequences [but] not the taxpayer. Everybody knows that they have to be removed. They are priced too high. The assets don't have real value—some have zero and some have 10 cents on the dollar.

The people who had been making profits for all these years and dealing in all of this debt creation and derivatives—that now is becoming unwound—are claiming that it would be so painful if somebody went bankrupt and therefore we have to put so much burden on the taxpayer and on the dollar because the alternative is worse. But quite frankly, if they destroy the dollar and the dollar system, then they have a much bigger problem that they are going to have to deal with and it would be the collapse of the whole international monetary system—which is conceivable."

So instead of having taxpayers buy the bad debt, the market should take care of it by itself?
"Sure, prices need to go down. Bad debt needs to be eliminated. The taxpayer ought to be protected. Taxes ought to be lowered...We are following the same routine that we did in the Depression, and that is artificially try to keep prices up. People were starving in the Depression and the only thing they did was try to keep wages artificially high and keep food prices high. We are doing the same thing now—we are trying to keep housing prices high. Low prices for houses mean poor people could buy a house. This is the most important part of a free market economy and that is free market pricing. Without free market pricing, the market can't work. And this is in a way a major effort to price fix."

So you think the government should not have bailed out an y companies during this crisis?
"That would have been the best thing. It would have been painful, but housing prices would have come down sharper and faster, and it would have been over by now. But this whole idea of price fixing—that's what they are doing—has been trying to keep housing prices up and trying to stimulate home building. Well, if you have 100 percent more homes than the market really wants, you can't keep prices up and you can't stimulate home building. If the prices go down, then people will go out and buy homes again. So they should allow the liquidation of debt.

Before the Depression, [the government] generally allowed these kinds of problems to unwind. They were very severe. They would last six months or a year—a lot of liquidation of debt would be wiped off the books. And then it would go back to work again. What we've been doing now—especially since 1971—is preventing the real liquidation of the malinvestment and the excess of debt . . . If this process continues, we're going to own General Motors and Ford, then we will have to own the airlines. We are socializing our country without even a vote by the Congress. It's a horrible situation."

Will this bailout stabilize the crisis?
"I personally don't think so. It might be temporary, but no, there is much more involved. I mean, we are talking about trying to unwind trillions of dollars of derivatives . . . You have to get rid of all that stuff."

Will this bailout be the last?
"No, no. This won't be the last one. There will be something else later on. But that doesn't mean you might not have a few months of a reprieve. But it will continue."

Will we have to bail out the auto makers?
"Oh I think so. We are not going to let them fail. Our policy is such that everybody gets bailed out. It's like a drug addict, they've got to take their fix. It's too tough getting off these drugs. And the drug here is easy credit.
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Old 09-20-2008, 03:12 PM   #2
Richard T
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Default Re: Ron Paul: This Bailout Won't Be the Last

Which goes to show that there is no such thing as free market.

This term is a concept, while there are those behind the veil, pulling the ropes to their advantage.

There never was free market. But there has been the organization of free access to markets in a unilateral fashion. And this, of course, means that certain people had to organize for this situation to happen.

Believing that the 'market' has a life of its own is like believing that rocks dance at night.

The market is a concept behind which occult forces organize society.

Wondering why the Republicans were so blinded as to not pay more attention to this man, Ron Paul. Perhaps he does not deal in concepts enough for the taste of the average American.

In America, everything has become a concept to be marketed. Everything is an image, a form. The spirit of the form is of no value, the image prevails.
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Old 09-20-2008, 03:19 PM   #3
Zarathustra
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Default Re: Ron Paul: This Bailout Won't Be the Last

Quote:
Originally Posted by Richard T View Post
Which goes to show that there is no such thing as free market.

This term is a concept, while there are those behind the veil, pulling the ropes to their advantage.

There never was free market. But there has been the organization of free access to markets in a unilateral fashion. And this, of course, means that certain people had to organize for this situation to happen.

Believing that the 'market' has a life of its own is like believing that rocks dance at night.

The market is a concept behind which occult forces organize society.

Wondering why the Republicans were so blinded as to not pay more attention to this man, Ron Paul. Perhaps he does not deal in concepts enough for the taste of the average American.

In America, everything has become a concept to be marketed. Everything is an image, a form. The spirit of the form is of no value, the image prevails.
You are dead right.
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Old 09-20-2008, 05:57 PM   #4
Love/Light 13
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Arrow Re: Ron Paul: This Bailout Won't Be the Last

Ron Paul is one serious monetary mind. Too bad he doesn't have a bigger backbone. He says so casually there will be more bailouts, that our leaders have a drug addiction. I want someone, anyone to stand up and really say ENOUGH is ENOUGH! I have had a vision of Ron Paul in Obama's administration, though I know this is overly optimistic and ambitious. Are we really gonna just socialize our country without any sort of referendum on behalf of the citizens of our great nation? Thanks for the post....

may WISDOM guide COMPASSION

"out of MANY, we are ONE"
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Old 09-20-2008, 08:08 PM   #5
Zarathustra
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Default Re: Ron Paul: This Bailout Won't Be the Last

Quote:
Originally Posted by Love/Light 13 View Post
Ron Paul is one serious monetary mind. Too bad he doesn't have a bigger backbone. He says so casually there will be more bailouts, that our leaders have a drug addiction. I want someone, anyone to stand up and really say ENOUGH is ENOUGH! I have had a vision of Ron Paul in Obama's administration, though I know this is overly optimistic and ambitious. Are we really gonna just socialize our country without any sort of referendum on behalf of the citizens of our great nation? Thanks for the post....

may WISDOM guide COMPASSION

"out of MANY, we are ONE"

I agree with your post, with the exception of Dr. Paul being characterized as not having a bigger backbone. Name a member of the Dem or Rep party who has stood on national tv and decried the election process as a "charade" and urged Americans to vote for a third party candidate, other than Dr. Paul. I know he could do more, but he is one of the VERY few trying to do anything, and deserves credit for that.
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Old 09-20-2008, 10:39 PM   #6
Love/Light 13
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Post Re: Ron Paul: This Bailout Won't Be the Last

Z-

Thanks for the response. It just infuriates me to hear Dr. Paul seemingly conceeding to the global elite that more bailouts are coming, and there is nothing anyone can do about it. Start convincing those in Congress who care about the sovreignty of the USA to begin de-constructing the illusions of the FED.

Live life with Love and LIght........
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Old 09-20-2008, 11:40 PM   #7
Zarathustra
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Default Re: Ron Paul: This Bailout Won't Be the Last

Quote:
Originally Posted by Love/Light 13 View Post
Z-

Thanks for the response. It just infuriates me to hear Dr. Paul seemingly conceeding to the global elite that more bailouts are coming, and there is nothing anyone can do about it. Start convincing those in Congress who care about the sovreignty of the USA to begin de-constructing the illusions of the FED.

Live life with Love and LIght........
I understand where you're coming from. It has to be tough to be in Dr. Paul's position, shouting daily that the Fed and fiat currency are ruining the economy, which he has been doing for years, while all of your colleagues seem to find some perverse joy in "feeding the monster". A major problem, and Dr. Paul has said it himself, is that the vast majority of his colleagues in the house and the senate literally don't understand economics well enough to see the problem. In addition, they turn their blind eyes away from the destructive influence of privatized central banking and fiat currency because much of that currency finds its way into their pockets. They will banter endlessly about "whether the Fed should raise or lower interst rates", etc... ad nauseum, and feel like they are doing the people's business - without the realization that it is the Fed itself that causes the economic problems that it purports to "fix", and worse, that it does so at the behest of masters whose agenda it is to not only impoverish the American people, but to destroy the nation itself, and eliminate the majority of the people from the globe. Yes L, I share your frustration and anger, and I FIRMLY believe that the American people are waking up, will wake up, and unfortunately revolution, bloodless or bloody, will follow. The question is whether that moment will be too late. The answer to that I do not know.
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Old 09-21-2008, 12:18 PM   #8
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Default Re: Ron Paul: This Bailout Won't Be the Last

People still have way too much to lose before doing something.
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