Quote from scriabinop23:
Ron Paul is a silly hyperbole of someone who lacks the capacity to understand the implications of his ideas if actually enacted. He uses every moment in front of Bernanke to grandstand, and Bernanke is justified to treat him as if he is an ill-informed, albeit enthusiastic student in one of his intro to economics classes. Bernanke could do intellectual acrobatics that would put Paul to shame. I think its popular to identify with mediocrity (Ron Paul) on these message boards, esp. since being a trader has an analogous prerequisite (none) of knowledge, intellectual edge, and social standing.
That said, when I said 2T versus 14T in GDP, I meant in real terms, not nominal. My point stands strong. Frac reserve banking and use of credit allows much more efficient use of capital. The problem here was that of regulations and lack of common sense. But don't even think Ron Paul's grand proposals will somehow prevent the cyclical nature of economies from occuring. That has more to do with human nature - a natural need to cycle through bubbles and busts. This can be easily proven throughout history.