Posts Tagged ‘Inflation’

This speech comes in February 2009 in the midst of the bailouts.  Ron Paul calls the Fed “a tool of socialists” and is responsible for recessions and depressions, feeds the fires of war, and is immoral.  I am not going to comment a lot on this today because Ron Paul does such a great job of characterizing the Federal Reserve, but consider this: Everyday the Fed shreds millions of USD’s, proving that the money is valueless.

The Federal Reserve embodies the worst form of corruption and coercion.  It is the largest counterfeiting operation ever.

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Praise Ron Paul for freezing Congressional pay raise and calling for members of Congress to taking a pay cut.  Our country is coming to the point where funds are needing to be frozen.  I hate to say this but the economy is going to get much, much worse.

This is a three part video, so if you do not have the time to watch it, here is a link that you can click on to view the  transcript to Ron Paul’s address: http://www.campaignforliberty.com/blog.php?view=31623

I was in a temp agency trying to find a job that is left in my area the other day when I heard two women talking about something that was sent over an email.  She read it to me and though I was tempted to argue the point but that’s not good to do before an interview.  So here is what the email said:

There are an estimated forty million Americans over the age of fifty.  Here is an economic stimulus package that Congress should consider.  Every worker over fifty would get 1 million dollars (households with two over fifty would get 2 million dollars), but they must follow these guidelines:

They must retire.  They must buy a house.  Housing problem fixed.  They must buy an American vehicle.  Auto industry problem fixed.

As dubious as a plan like this sounds, it would not surprise me in the coming years if a “solution” like this would arise.  I don’t know, I just can’t keep my mouth shut.  And here are my problems with this.

  1. The fact that a plan, though as I have said is dubious at best, should even come up in the minds of the American people proves that we have come too reliable on easy money.  If a program like this would actually be considered the initial cost would be anywhere from forty million to eighty million dollars.  Top it all off with the money that the American taxpayer would have to pay back (because all this would come from the Federal Reserve) and you’re looking at something around over 100 million dollars – ballpark.
  2. When the Federal Reserve prints money and loans it to the United States Government, it is printed out of thin air.  Thusly, the bankers and the governors of the Fed make money (interest) off of the money loaned.  The more money is printed, the lower the value of the dollar.  Everyday the Fed is able to shred millions of dollars proving that the U.S. dollar holds very little value, and that it is the biggest counterfeiting operation ever devised.
  3. The some-odd millions of dollars that the auto and housing and banking industry would get would only be a short-term solution for a long-term problem.  Hence, end the Federal Reserve.
  4. The very possibility that the government could buy someone’s retirement with money is just too ridiculous to argue with.  But with today’s government trying to make power grabs at every turn – who knows?

Once again, this is fictitious plan and I do not mean to incite panic – if any would be incited.  However, with the politicians, bankers and CEO’s trying to buy this nation out of debt – and when I say nation, I mean them, because they really want to cover their mistakes – who knows what could happen?  I think that it has been the philosophy of politicians for years to buy our way into prosperity but all it really has brought us is strive.

LONDON (AFP) – The dollar fell on Monday as China accused the United States of increasing protectionism and following unexpectedly strong Japanese economic growth figures, pushing gold prices to a record high point.

US President Barack Obama is in China for a three-day mission aimed at convincing Beijing that Washington is its partner, not its rival.

As the dollar dropped against the euro and yen, gold struck an all-time peak of 1,133.20 dollars an ounce.

In late morning trading here, the euro climbed to 1.4969 dollars from 1.4918 dollars late in New York on Friday.

Against the Japanese currency, the dollar fell to 89.42 yen from 89.66 yen late on Friday.

“Far better than expected Japanese third-quarter GDP data…spurred risk appetite,” said Jane Foley, an analyst for online trading firm Forex.com.

“This pushed the euro close to 1.50 dollars in early European hours.”

Japan’s gross domestic product (GDP) grew 1.2 percent in the third quarter of 2009 from the previous quarter — the fastest pace in two-and-a-half years and much better than expected, the government reported.

The euro also gained as higher commodity prices, driven by hopes of a global economic recovery, spurred investor risk appetite, market watchers said.

To read more: http://news.yahoo.com/s/afp/20091116/bs_afp/forexeurope_20091116120712

Any number of pundits claim that we have now passed the worst of the recession. Green shoots of recovery are supposedly popping up all around the country, and the economy is expected to resume growing soon at an annual rate of 3% to 4%. Many of these are the same people who insisted that the economy would continue growing last year, even while it was clear that we were already in the beginning stages of a recession.

 

A false recovery is under way. I am reminded of the outlook in 1930, when the experts were certain that the worst of the Depression was over and that recovery was just around the corner. The economy and stock market seemed to be recovering, and there was optimism that the recession, like many of those before it, would be over in a year or less. Instead, the interventionist policies of Hoover and Roosevelt caused the Depression to worsen, and the Dow Jones industrial average did not recover to 1929 levels until 1954. I fear that our stimulus and bailout programs have already done too much to prevent the economy from recovering in a natural manner and will result in yet another asset bubble.

 

Congressman Ron Paul explains why the Federal Reserve (a private central bank) runs a counterfeit operation, and the government perpetuates a fraudulent system, and if we continue on the same course disaster is inevitable.