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Calamity to come - Ron Paul statement in congress

gimpyrancher

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I remember way back when my parents told me that "I owed the government" about $1000. My share of the national debt. We were all horrified by that debt. Recently I read where "each family now owes the government over $90,000. It's estimated that just over 60% of our national budget is servicing debt. Yet we spend billions to bail out giant businesses that go broke because of bad management, instead of paying down our own debt.

I guess my parents were stupid. They taught me that when money was tight I had to stop spending it. They taught me wrong? :?
 

djinwa

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I've learned on other sites that people with dialup have hard time with youtube. Here's the written word:

http://www.ronpaul.org/


Statement of Congressman Ron Paul

United States House of Representatives


Statement at Financial Services Committee Hearing

July 21, 2009

The Federal Reserve in collaboration with the giant banks has created the greatest financial crisis the world has ever seen. The foolish notion that unlimited amounts of money and credit, created out of thin air, can provide sustained economic growth has delivered this crisis to us. Instead of economic growth and stable prices it has given us a system of government and finance that now threatens the world financial and political institutions.


Real unemployment is now 20% and there has not been any economic growth since the onset of the crisis in the year 2000, according to non-government statistics. Pyramiding debt and credit expansion, over the past 38 years, has come to an abrupt end—as predicted by free-market economists. Pursuing the same policy of excessive spending, debt expansion, and monetary inflation, can only compound the problems and prevent the required correction. Doubling the money supply didn’t work; quadrupling it won’t work either. The problem of debt must be addressed.


Expanding debt when it was a principal cause of the crisis is foolhardy. Excessive government and private debt is a consequence of a loose Federal Reserve monetary policy. Once a debt crisis hits, the solution must be paying it off or liquidating it. We are doing neither. Net US debt is now 372% of GDP. In the crisis of the 1930s it peaked at 301%. Household debt services requires 14% of the disposable income—an historic high. Between 2000 and 2007 credit debt expanded five times as fast as gross domestic product.


With no restraint on spending, and revenues dropping due to the weak economy, raising taxes will be poison to the economy. Buying up the bad debt of privileged institutions and dumping worthless assets on the American people is morally wrong and economically futile. Monetizing government debt, as the Fed is currently doing, is destined to do great harm. In the past 12 months the national debt has risen over $2.7 trillion. Future entitlement obligations are now reaching $100 trillion. US foreign indebtedness is $6 trillion. Foreign purchases of US securities in May were $7.4 billion, down from a monthly peak of $95 billion in 2006.


The fact that the Fed had to buy $38.5 billion of government securities last week indicates that it will continue its complicity with Congress to monetize the rapidly expanding deficit. This policy is used to pay for the socialization of America and for the maintenance of an unwise American empire overseas, and to make up for the diminished appetite of foreigners for our debt.


Since the attack on the dollar will continue, I would suggest that the problems we have faced so far are nothing compared to what it will be like when the world, not only rejects our debt, but our dollar as well. That’s when we’ll witness political turmoil which will be to no one’s benefit.
 

1982vett

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djinwa":f334x1rx said:
I've learned on other sites that people with dialup have hard time with youtube.
Unfortunatly, I think internet technology has far outpaced dialup and the problems aren't just youtube related.
 

kerley

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Looking at the video. Looked to me like several of the senators were sleeping.
Tom
 

djinwa

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kerley":3h30njlz said:
Looking at the video. Looked to me like several of the senators were sleeping.
Tom

Or pretending to sleep. I have a feeling most just don't want to hear this stuff. Bury your head in the sand. Print and borrow, print and borrow.
 

TexasBred

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kerley":11cim4l2 said:
Looking at the video. Looked to me like several of the senators were sleeping.
Tom

Probably still drunk as well from the previous night of playing "Tom Cat".
 

Alberta farmer

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"Playing tomcat"...That cracked me up! Thanks for the chuckle!
I do believe Ron Paul has pretty well got it right? Always was impressed with this mans common sense.
 

djinwa

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Alberta farmer":19v6cxa3 said:
"Playing tomcat"...That cracked me up! Thanks for the chuckle!
I do believe Ron Paul has pretty well got it right? Always was impressed with this mans common sense.

Interesting that you post from Alberta. My sister from there borrowed my Ron Paul book (The Revolution, A Manifesto), and I just got it back. How's Canada doing?

This topic came up at work and a young guy said the debt doesn't matter - it will just go away and we'll start over. If the debt didn't matter, I asked why the gov't couldn't give us each a million dollars. He then said if they did, then the money wouldn't be worth as much. Bingo! If money is worth less, you need more of it to buy things, meaning higher prices - price inflation. And thus a dollar in 1913 when the Federal Reserve (central bank) was created, is now worth only 5 cents.

So the way the game is played, the central bank creates new money, and the first to get it (banks, gov't bailouts), get to spend it before it hits the general economy and causes higher prices.

Found this video yesterday of an interesting debate bringing up some of these points (5 parts)

http://www.youtube.com/watch?v=zoK1uWmCXVM
 

Alberta farmer

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djinwa: Hows Canada doing? Well according to the government we are just peachy! Good times right around the corner!
However after running 12 straight years of budget surplusses the present government has blown the whole accumulated savings in about 6 months! This from a so called "Conservative" government!
In Alberta we rely on oil and gas to power our economy.Thanks in part to our inept premier and "Conservative" provincial government that industry is on the ropes. From huge provincial surplusses we have gone to huge deficits in less than two years.
Agriculture is the other big industry in Alberta. We are facing a pretty tough drought and a failing hog and cattle industry. It is not a pretty picture.
I think you could consider Canada as little more than a branch plant of the USA? Basically we follow the USA...if America is hurting so is Canada! I think our politicians could fit right in with yours...a bunch of inept scoundrels who should all be fired!
 

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