Ron Paul: Blame the Fed for the Financial Crisis

Visaria · Oct 23, 2011

Quote from ronblack:

Ron Paul doesn't understand basic differences between US and EU money creation and some people want him to run this country?

http://pragcap.com/debunking-ron-pauls-talking-points

P.S. I agree with some of his points, like the need for a strong dollar.

From that pragcap article:

"You can call this manipulation or whatever you want, but it is an irrefutable fact that the Fed controls interest rates as the monopoly supplier of reserves to the banking system."

No, the Fed does not control interest rates, it's targets them. It is generally successful in doing so in the short end i.e. 3 month Fed Funds rates, but the jury is out on the long term rates eg 30 year bond yields .

hayman · Oct 23, 2011

I just listened to Ron Paul's interview with David Gregory on Meet the Press. Man, the guy has his pulse on what's wrong with our country in both domestic and international affairs. I really recommend you listening to it, if you can.

Of course, he'll never win. He's too old (76), too quirky, and too radical from the main stream, to be considered a viable candidate by most. Nonetheless, he makes the most sense to me, out of all these talking heads on both sides of the aisle.

Lornz · Oct 23, 2011

Quote from hayman:

I just listened to Ron Paul's interview with David Gregory on Meet the Press. Man, the guy has his pulse on what's wrong with our country in both domestic and international affairs. I really recommend you listening to it, if you can.

Of course, he'll never win. He's too old (76), too quirky, and too radical from the main stream, to be considered a viable candidate by most. Nonetheless, he makes the most sense to me, out of all these talking heads on both sides of the aisle.

Yes, it was really good.

<iframe width="560" height="315" src="http://www.youtube.com/embed/Gfth22IuyXU" frameborder="0" allowfullscreen></iframe>

hayman · Oct 23, 2011

Thanks for posting that, Lornz !!

Random.Capital · Oct 23, 2011

Quote from Visaria:

No, the Fed does not control interest rates, it's targets them. It is generally successful in doing so in the short end i.e. 3 month Fed Funds rates, but the jury is out on the long term rates eg 30 year bond yields .

IMO the jury came in a long time ago - anything beyond the three month rate is clealry not controllable by the Fed. More importantly, in times of actual economic dislocation, the Fed barely even has an influence at the long end.

Mr. Paul is flat out wrong on this.

Eight · Oct 23, 2011

Quote from Random.Capital:

IMO he is wrong. The seeds of this were planted when Reagan abandoned the drive for energy self-sufficiency started by Nixon and continued by Carter. That was the defining moment for America's "leverage forever" gambit, and it's been a one-way trip to the present problems ever since.

The Fed has virtually no power in the face of an electorate that keeps demanding unsustainable economic policies.

same goes for grownups in general.. about that same time historically Graham Rudmann passed a bill to outlaw borrowing by the Federal Gov. Then Democrats took it to the Supreme court and had it tossed out... I'm really thinking that a shift in attitude towards government took place at that time, not so much a change in economic policy. Conservatives ceased to exist as such, instead they gave us the S&L bailout thingy where all the loan requirements were removed but the guarantees were kept in place. I think that Conservatives always knew that they were the smart adults in the scenario so they said "f^&k it" and went for the slaughter of the pig in the biggest ways they could find. They did it again with the policies of lending to people in the Inner City Reservations put in place and enforced by the Democrats.. they bundled those loans, sold them to risk aversive institiutions all over the world and Fannie MAE/MAC and basically had a field day shoving those leftist policies so far sideways it gives Democrats migraines and makes them dizzy to this very day...

Random.Capital · Oct 23, 2011

Quote from ajcrshr:

What current presidential candidate has a greater understand than Paul?

None, better. Also, none, worse. They are all equally avoiding dealing with the fundamental issue, and are all, therefore, pandering to the American self-image of perpetual growth and prosperity for all.

Random.Capital · Oct 23, 2011

Quote from Eight:

...about that same time historically Graham Rudmann passed a bill to outlaw borrowing by the Federal Gov.

Are you referring to Gramm-Rudmann-Hollings? That didn't "outlaw" borrowing by anyone, it was a mechanism for automatically forcing arbitrary spending cuts. It was also bipartisan legislation, both in terms of sponsorship and congressional voting.

Your posts would be more useful if you could grow beyond the Bullwinkle vs Natasha perspective.

oldtime · Oct 23, 2011

Quote from Lornz:

Yes, it was really good.

<iframe width="560" height="315" src="http://www.youtube.com/embed/Gfth22IuyXU" frameborder="0" allowfullscreen></iframe>

thanks for posting that Lornz, WOW, there really is no such thing as a "gotcha" question with Ron Paul. The answer starts pouring out of his heart before the little wannabee pixie can get it off his lips.

Watch for the other morons to start parroting Ron Paul's words even though they have no idea what they mean.

The democrats won't admit it, but Ron Paul cares more about the little guy than Obama and all the republicans combined.

But also, check out Keynes and find out why they call it the "dismal science".

oldtime · Oct 23, 2011

Maybe the media doesn't like him because he doesn't make them look smart by making him look stupid.