Ron Paul: 'We're Going To All Suffer And Pay' For The Bailout

Ron Paul: 'We're Going To All Suffer And Pay' For The Bailout

rawstory.com

"I don't think it's going to do any good whatsoever," Paul told CNN's Kiran Chetry on Friday."The credit markets are starting to loosen up a bit," Chetry suggested. "Is that a sign that maybe it is working?"

"Maybe to some degree on the short run," Paul acknowledged. "But that just means that we'll have more inflation. You can't create $5 trillion out of thin air and not expect inflation. ... In time, we're going to all suffer and pay for this."

"Economically, it's a disaster," continued Paul. "This is going to cause a great deal of harm. It's like a drug addict taking a strong fix, and he feels better for a day or two, but believe me, we're going to kill the patient ... so I would say, let's get off this addiction."

(visit the link for the full news article)



[edit on 17-10-2008 by DimensionalDetective]

Poor Dr. Paul sounds like a broken record. He just keeps painting the picture of where this thievery is leading, and it all falls on deaf ears of the fraudulent fed and Wall Street extortionists.

I'm guessing 6 months from now, all these people that are screaming about how great this is for the economy will be the same ones admitting that Dr. Paul was right all along.

The core principles which he keeps shouting into the wind ( printing up trillions of an ever-devaluing currency out of thin air, and propping up a broken system) really don't take a genius to understand why they have DISASTROUS long-term implications, yet there are STILL talking head pundits and politicians who just don't get it, or are deliberately not getting it.

This is a trainwreck waiting to happen and these guys are stepping on the accelerator.

rawstory.com
(visit the link for the full news article)

[edit on 17-10-2008 by DimensionalDetective]

They will never publicly admit that Dr. Paul is right. That would give him enourmous credibility and perhaps seal the deal for his presidential run in 2012. God I hope they do....

I hate the bailout plan, and think Ron Paul is correct in his evaluation of its future impact.

On the other hand, isn't the current administration just trying to keep things afloat for a few months? Then when its worse in 6 months, the Republicans can blame the Democrats for this mess?

For those who think that the Republicans will win the white house, look at the facts. polls suggest that Dems have over 277 electoral votes. McCain would have to win every remaining toss up state, and manage to wrangle a state away from Obama. (BTW, i'm only counting states with obama up by over 10% in the electoral map projections).

If the republicans can manage to win this election, It will look more like another stolen election than the 2, and people will raise a stink.

If McCain can manage to close the gap in the polls a little bit though, he might have a shot at the oval office. And my theory will be for naught.

Anyway this got convoluted enough... I seem to have gone on a tangent... Major point I am trying to make is that the Bailout wasn't meant to work... it was meant to buy some time until there was another administration to blame.

I wonder though... if the bailout money was used properly, and not to pad people's pockets and arrange trips for crooks would Ron Paul still be so against it.

Most people who follow the financial markets are in agreement that something needed to be done. Not to save Wall Street but to save the economy itself.

With a frozen credit market you can't buy a car, a house, a tractor, or anything else. Executed properly a bailout plan can "bail out" the economy.

The way it will be run by this government, Ron Paul is quite correct. We will all pay and suffer.

Ron Paul would just as soon see everyone go down the tubes than to admit that the goverment should interefere. His comments on inflation show he doesn't really have a clue. Inflation comes around with a large amount of dolalrs in circulation. Right now we have anything but. All the dollars being pumped into the system is only replacing multiples of dollars lost. We are heading for deflation, which would be worse if no money was injected. Ron Paul is only right about the Federal Reserve.

Ron Paul is a goverment hater. I do not understand why he even chooses to be a part of the goverment. "The federal goverment should have no powerand I want to be it's President." It's really pretty funny when you think about it.

Originally posted by disgustedbyhumanity
Ron Paul would just as soon see everyone go down the tubes than to admit that the goverment should interefere. His comments on inflation show he doesn't really have a clue. Inflation comes around with a large amount of dolalrs in circulation. Right now we have anything but. All the dollars being pumped into the system is only replacing multiples of dollars lost. We are heading for deflation, which would be worse if no money was injected. Ron Paul is only right about the Federal Reserve.

Ron Paul is a goverment hater. I do not understand why he even chooses to be a part of the goverment. "The federal goverment should have no powerand I want to be it's President." It's really pretty funny when you think about it.

The money lost was not removed from circulation. It was already spent in the form of credit. These "lost" dollars are just going to pay IOUs between huge companies and such.

The only way that money gets removed from the system is when the United States pays off some of its loans from the Fed. Its quite obvious THAT hasn't happened.

Originally posted by disgustedbyhumanity
Ron Paul would just as soon see everyone go down the tubes than to admit that the goverment should interefere. His comments on inflation show he doesn't really have a clue. Inflation comes around with a large amount of dolalrs in circulation. Right now we have anything but. All the dollars being pumped into the system is only replacing multiples of dollars lost. We are heading for deflation, which would be worse if no money was injected. Ron Paul is only right about the Federal Reserve.

Ron Paul is a goverment hater. I do not understand why he even chooses to be a part of the goverment. "The federal goverment should have no powerand I want to be it's President." It's really pretty funny when you think about it.

What you say makes it sound like you dont have a clue. The fact is the dollars lost by the banks need to be liquidated in the form of a bankruptcy. Not being propped up by more bad debt. It may not be inflationary now but it will be trust me. If these banks were allowed to fail the smaller banks that havent gambled like the big ones would come in and buy all the assets for crack money. Then you would see new bigger and better banks. That is how the free market works. There is an article about how the small banks are mad right now because of the big bank bailouts and they ask the question "We have to compete with these big banks that are to big to fail. How are we supposed to compete with that?"

The federal government should have power and does. But only what the constitution allows. We are way beyond that point.

[edit on 17-10-2008 by mybigunit]

To add to the poster above me...Do you know where that credit comes from? NOWHERE, The fed magically adds a number to the banks balance and because of our wonderful fractional reserve banking system, those new reserves get thrown into an even larger addition to the overall quantity of currency in circulation.

Respect...

...for the last honest man in Congress.

“During times of universal deceit, telling the truth becomes a revolutionary act.”

-- George Orwell

And no, surprisingly enough, printing money out of thin air will never make it more valuable, even in the most bizarre or fanciful of financial ponzi schemes. :shk:





NOTE: This post is a purely personal opinion and does not represent the views of anyone other than myself. Since I have expressed an opinion on this topic, I will not be moderating in this thread and promise not to take any action against any member for holding or expressing a different point of view. -- Majic

[edit on 10/17/2008 by Majic]

Great thread,I just wish Ron Paul was still in the race.

as we all can see, government intervention in the free market causes instability, and people lose confidence

i mean, how stable would something look, if the govt had to "save it" and "prop it up" or "bail it out"

thats directly causing instability and uncertainty

and everyones losing confidence , that is if they have any left

Ron Paul is right about this. It is a short term fix and will end up worse in the long run. We need to abolish the federal reserve system. It is too bad Dr. Paul is not running as an independent candidate.

You want to see what happens when you just create money out of thin air without backing it with anything just take a look at what is going on in Zimbabwe.

Zimbabwe's inflation rate soars to 11.2 million percent
A loaf of bread costs 1.6 trillion Zimbabwe dollars
edition.cnn.com...

Dr RP gave me hope that there still IS HONEST men in the congress...

And, proved the theroy that no dencent/smart/moral person can become president.


RP has the balls to tell what this bail out is...

Overt fiscal socialism. The Nationalisation/Socialisaion of our financial system...

But the bush-bots cannot stop sining the praises of Commrade Jorge Bush.


In a few years, not only will our socilist fiscal policy continue, but the social socialism will come next.

Then we willl have socialised education and healthcare
Then, after that, the socialism will affect our food supply.


Have you prepared?
I have taken a step, i have dug up the glorious anthem of the Soviot Union.

Better learn our new anthem.

I got it all set up, so that during our election night party, we open up with a pledge to GOldman Scachs of Wallstreet, then play our national anthem, and then, later in the night, when it is clear weather the liberal or the socialist has won, we will play the Soviot anthem.

Complete with us belting out lyrics in russian.



With the inflation.
When the USSA starts to face HYPER-inflation, will Obama keep his same tax plan?
250k isnt going to be that much in a couple years if we keep printing money at this rate.

Because the United States of America has the dollar as world reserve currency

WE EXPORT alot of our INflation. We export it to country's who maintain a "dollar peg" as well as those who recycle our petro dollars into treaury debt, and China and Japan have kept there currency's weak so that our imports will be high (there exports) , they want our inflation to be low, so we can buy there crap. Without this Trump Card , our monetary and fiscal policy would = very high inflation and very high intrest rates on U.S Gov't Debt.

As we saw this spring, the biggest threat from inflation came when a relatively small market (commodity's i.e Oil, Food) gets flooded as ASset managers threw tons of money at a trendy asset class with a subsequent rapid increase in prices of said assets. Now with the big hedge funds being forced to give there spooked clients there money back, these funds have to panic sell there long positions in OIL to get there clients money. Combine this with a dollar spike and burned investors may not rush back into this asset class for a while and prices have been cut in Half.

Notice also gold did not decline in step w/ Oil. Lots of investors seek short term treasury bills and /or GOLD in times of stress.

I wonder if there has been a time in history when A currency was devalued at the same time wages were stagnant and neither inflation or deflation "won out" but there was a collapse.

The fed can print money, but it can't really direct it. When they start directing money to JOE 6 PACK in a very HEAVY DOSE i.e 5,000$ 20,000$ then we COULD have hyperinflation until then not happening

[edit on 17-10-2008 by cpdaman]

Originally posted by disgustedbyhumanity
Ron Paul is a goverment hater. I do not understand why he even chooses to be a part of the goverment. "The federal goverment should have no powerand I want to be it's President." It's really pretty funny when you think about it.

Ron Paul hates corruption and extra-constitutional powers being seized by this "government". He's a strict constitutionalist -- same as the founding fathers.

The fact that he is systematically ignored by the MSM is reason enough to listen to him. The fact that he's right is reason enough to put him in charge.

Interest rates and inflation are already increasing...

news.yahoo.com...

This will only lead to even more foreclosures, etc.
Economics 100 (also called common sense); when you flood an economy (in this case global economy) with uncounted trillions of $, the price of everything increases, for everyone (unless you isolate yourself in a closed system like a self-sustaining village or community, I suppose).

Ron Paul and Peter Schiff have said this on a daily basis for many months now. It doesn't matter if the Wall Street pundits don't want to believe it because their huge ego's might pop, it's already happening.

the 'bailout' is not for mortgages, nor is it for the credit creation market,


the actual 'bailout' is for the $500Trillion in derivatives, CDS, and other trash...that the Elite investor class say needs to be paid to them...

do you, your neighbors, your fellow workers, your fellowship at your church....
do Any of these people say that they have lost a bunch of money on those insurance risk 'bets'....
Rest Assured... none of the working, toiling class are vested by $1.00 in the
credit swaps and other risky paper that was leveraged 60-1 on average.


Let the debt Go "Unpaid!
Let the risk takers take their lumps & lose their cash
99% of Americans never bought a CDO, or a CDS or any of those exotic financial instrumentys...
WE were busy putting a meal on the table, paying rent & mortgage, paying credit card debt, buying clothers for the rug rats, filling the car with $4 gas on a $250 wk paycheck ... etc etc


All those Trillions of default debt... are monies Trading between the Rich elites...betting against each other (not against the working masses)
?Why should WE pick up their Tab??
We are not responsible for their gains nor losses

Let the corporations, which took the 'bets' and made money on writing up these insurance policies 'Pay' their own bills & debts....

nationalizing Freddie & Fannie is the only program that addresses the real issue...
which is the outstanding and approaching bad & defaulting mortgages


the bank solvency, the credit crunch by the banks, the CDS policies by the rich & affluent....are a subset of the financial world that drives the American economic system... the debt defaults should not be presented to the whole of society to pay....its all between the buyers and the policy insurers-> if one can't pay, then the other has been 'Stiffed'--->
And It Ain't The Duty of the Public To Pay Off That Debt

Oh.....................what could have been!

Truth and Freedom

instead of 4 - 8 more years of constant lies and bankrupting foreign policy

This bailout isn't only bad for the United States, but it is also bad for any country that trades with the U.S. Canada is not immune from what is going to happen to the American stock market nor any other country for that matter as has been already seen. you americans WILL bear the brunt of it with higher taxes and higher ineterst rates, and when that happens you will be back to square one-again. This is a quick fix for a problem which requires the markets to fix themselves painful as it may be. I'm interested to see what comes out of the meeting of the European leaders and the President at Camp David this weekend................