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Ron Paul: Fed's only solution for every problem is to print more money

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posted on Sep, 16 2012 @ 09:04 AM
Following the FED's new round of QE, Ron Paul has released a statement saying he is not surprised by the central bank's actions and that the only solution the Fed ever has regarding monetary problems is to print more money-

"No one is surprised by the Fed's action today to inject even more money into the economy through additional asset purchases. The Fed's only solution for every problem is to print more money and provide more liquidity. Mr. Bernanke and Fed governors appear not to understand that our current economic malaise resulted directly because of the excessive credit the Fed already pumped into the system."

"For all of its vaunted policy tools, the Fed now finds itself repeating the same basic action over and over in an attempt to prime the economy with more debt and credit. But this latest decision to provide more quantitative easing will only prolong our economic stagnation, corrupt market signals, and encourage even more misallocation and malinvestment of resources. Rather than stimulating a real recovery by focusing on a strong dollar and market interest rates, the Fed's announcement today shows a disastrous detachment from reality on the part of our central bank. Any further quantitative easing from the Fed, in whatever form, will only make our next economic crash that much more serious." -

The British comic Jasper Carrot helps to sum up the madness of QE and the apparent intention to collapse the US economy, for you simply cannot continue to print money from thin air forever-

It's just so obvious to everyone that more QE at this scale is bad, so we can only assume they are doing this deliberetely until it bursts and brings everything down with it. What other conculsion can we make?

posted on Sep, 16 2012 @ 09:09 AM
reply to post by Wonderer2012

The country is so broke that rapper 50 cent will have to change his name to 10 cent.

The country is so broke that Angelina Jolie will adopt an American baby.

posted on Sep, 16 2012 @ 09:23 AM
reply to post by Wonderer2012

There was a post on Zerohedge about Egan Jones Downgrades US From AA To AA-
a few days ago.

Synopsis: UNITED STATES (GOVT OF) EJR Sen Rating(Curr/Prj) AA-/ N/A Rating Analysis - 9/14/12 EJR CP Rating: A1+ Debt: $15.2B EJR's 1 yr. Default Probability: 1.2%

Up, up, and away - the FED's QE3 will stoke the stock market and commodity prices, but in our opinion will hurt the US economy and, by extension, credit quality. Issuing additional currency and depressing interest rates via the purchasing of MBS does little to raise the real GDP of the US, but does reduce the value of the dollar (because of the increase in money supply), and in turn increase the cost of commodities (see the recent rise in the prices of energy, gold, and other commodities). The increased cost of commodities will pressure profitability of businesses, and increase the costs of consumers thereby reducing consumer purchasing power. Hence, in our opinion QE3 will be detrimental to credit quality for the US.

Going by the above the markets are far more important than people.

edit on 16/9/2012 by skuly because: colour again

posted on Sep, 16 2012 @ 09:24 AM
They issue more bonds to gov't, then print more money, give it to the banks, they lend out the money (at interest) that can only be paid back by getting money from working which gets their money from banks to pay you, (at interest). It's mass madness!

posted on Sep, 16 2012 @ 09:38 AM
The Fed isn't just printing paper per se.

Do remember - there is an OBSCENE 26 TRILLION dollars hoarded up and gathering dust.

The fed prints the money based upon bonds, and are purchased by those funds seeking for either safety or at least some returns.

And those monies will be circulated into the economy to bring about jobs and distribution of wealth.

As more money is circulated, more wealth is generated, with more GDP and the tax revenues will be able to pay off loans.

What is critical is that the US economic gurus in govt makes sure those funds circulated ensures returns, and not dumped into the hole where it is lost forever.

Returns such as infrastructure improvement, so that productivity can be increased and thus more profits to be shared around. Funding for targetted manufacturing start-ups of innovative entreprenuers identified transparently.

Investment in education for the young and skill improvement for the current generation to upgrade to better tech and wages. Help for the unemployed temporarily to get by while looking for job or starting entreprenuership. Ensuring every citizen remains healthy with healthcare so as to contribute to society. There is more, but many can get the drift.

There is absolutely no reason for USA to fail, unless it thinks taxing the poor and middle class while letting the rich and corporations go free and austerity is a better path, as spain with its 26% unemployed, and UK mired in a recession had done.

A nation should not use debts for social expenditure. It should be based upon savings and from tax revenues. But all that is too late. Now is the time for pulling up americans from the morass debts had gotten us all in, by ironically, using that system, as it is the only way to get out in one piece. When the nation is stable, that's when finacial changes will have to be made, but not now. Any other way and we will all be doomed.
edit on 16-9-2012 by SeekerofTruth101 because: (no reason given)

posted on Sep, 16 2012 @ 09:44 AM
the treasury prints money

the fed creates it out of thin air

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