Ron Paul Humiliates Ben Bernanke so bad that CNBC had to cut him off.

Quote from PohPoh:

Ever notice that you don't listen?

The solution is the FREE MARKET
Let the MARKET determine interest rates, and not a bunch of unelected elitists meeting in marble palaces...
Let the MARKET determine the value of the currency, and not a bunch of counterfeiters..

Back the currency to a commodity, as stated in the Constitution - it's the only way you can stop the money manipulators from destroying the economy via inflationary policy...
More...

I'm a Ron Paul guy but let's state some facts instead of hyperbolic stuff that just sounds good.

Fact 1: The dollar DOES trade without anti free market hindrance. After all the Bush administration has NEVER entered the market to prop up the dollar. Nor have any other CB's in recent memory bought dollars. So according to all recent evidence the dollar is a free market commodity.

Fact 2: The dollar has lost value to other currencies whose CB's are ALSO are engaged in accomodative monetary policies. The BOJ for instance makes the Fed look like titans of tight money.

Here's a chart of Short Sterling (U.K. 3mo rates)

http://tfc-charts.w2d.com/chart/SS/M

Here's a chart of Fed Funds

http://tfc-charts.w2d.com/chart/ff/M

Now here's a chart of the Pound.

http://tfc-charts.w2d.com/chart/bp/M

Holy cow right? While England and the U.S. BOTH raised rates from 2004-2006 the dollar STILL got smoked.

Don't get me wrong. Rate differentials are still an important arbiter of exchange rates. Also to a limited degree is fiscal policy. But at the EOD the single most important factor in currency values is trade.

American's tend to be VERY ignorant about global markets (and policies ect.) To wit if you saw the friggin' negativity in the NYT this morning you'd think the Dax, FTSE and NIKKEI were making ATH's while only the U.S. was plunging. The fact is Japan has a FAR WORSE national debt than the U.S. and the lowest rates known to man. Yet the Yen hangs tough against the dollar. Why? Because Japan has a manufacturing export base.

Americans still don't get it. We bemoan a cheap dollar because it makes imports more expensive while it's our reliance on imported goods that caused the dollar to auction lower. And to tie in my earlier comments about why demographics are important: A nation of unskilled brown and black workers is not a good bet going forward for trading partners to extend credit. Even with Japans problems which country, Japan or the U.S. would you as an investor feel confident about a rebound and the ability to "live small"? Some day the Treasury vis a vis the Obama type deadbeat supporter will "walk away" in the same manner we bk our credit card debt and upside down mortgages. The same folks who argue against tougher domestic bk laws are the same people who'll say "forget giving up MY entitlement-let's screw those Arabs and Asians who own our debt." Oh yea, Change is coming.
 
Quote from PohPoh:

Ever notice that you don't listen?

The solution is the FREE MARKET
Let the MARKET determine interest rates, and not a bunch of unelected elitists meeting in marble palaces...

Let the MARKET determine the value of the currency, and not a bunch of counterfeiters...
More...

Congratulations!

As Pabst just showed above, you are extremely naive when it comes to even a most basic understanding of the markets, and what determines value.

"The fact is Japan has a FAR WORSE national debt than the U.S. and the lowest rates known to man. Yet the Yen hangs tough against the dollar. Why? Because Japan has a manufacturing export base."

I simply didn't have the time this weekend to give an Econ lesson - - - the weather here in California is simply too nice! But I suggest you re-read the bold-italics passage above from Pabsts' previous post.

Thanks for the Econ. 101A class, Pabst.
Nicely done.

:)
 
Yes, Pabst did give some good info, but it is you who is completely clueless...

America produces nothing and consumes everything.
We save nothing and borrow everything...
Every currency in the world will strengthen, OVER THE LONG HAUL, relative to the USD, so long as this continues to happen.

Also, there is no consideration for the USD being the world's reserve currency...and the Petrodollar recycling which occurs the globally, as the US continues to export her inflation worldwide. Comparing the Pound or the Yen to the USD is like comparing apples to pencils...our reserve currency status means we don't play their game - we have our own field and we have set it on fire..

The Japs trashed the Yen during the 90's, but they could do it because they were producers AND savers. They had a double digit savings rate! Remember that we are NEITHER...and in the long run (not between 04 and 06 or other arbitrary time frames) the USD will continue to suffer.

And while much of the world continues to inflate much like us, no one in the world exports inflation like the good ol US of A..

Get a clue Landis..

Quote from Landis82:

Congratulations!

As Pabst just showed above, you are extremely naive when it comes to even a most basic understanding of the markets, and what determines value.

"The fact is Japan has a FAR WORSE national debt than the U.S. and the lowest rates known to man. Yet the Yen hangs tough against the dollar. Why? Because Japan has a manufacturing export base."

I simply didn't have the time this weekend to give an Econ lesson - - - the weather here in California is simply too nice! But I suggest you re-read the bold-italics passage above from Pabsts' previous post.

Thanks for the Econ. 101A class, Pabst.
Nicely done.

:)
More...
 
It's a shame the lot of you can't discuss the issue like mature adults, rather than flinging feces on each other like a couple of spidermonkies.

There are some extremely well-thought arguments on both sides. Why the need for the sarcasm and stupidity mixed within it is beyond me.
 
Insults are the last vestige of those who can no longer rationally defend their positions, and have run out of logical responses.

Once the insults start flying, as well as the strawmen and red herrings, you know the debate has turned the corner, and one side has begun to win on the merits.
 
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