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Ron Paul Appeals To America: "Default Now, Or Suffer A More Expensive Crisis Later"

Tyler Durden's picture




 

By Ron Paul, op-ed first posted in Bloomberg

Default Now, Or Suffer A More Expensive Crisis Later

Debate over the debt ceiling has
reached a fever pitch in recent weeks, with each side trying to
outdo the other in a game of political chicken. If you
believe some of the things that are being written, the world
will come to an end if the U.S. defaults on even the tiniest
portion of its debt.

In strict terms, the default being discussed will occur if
the U.S. fails to meet its debt obligations, through failure to
pay either interest or principal due a bondholder. Proponents of
raising the debt ceiling claim that a default on Aug. 2 is
unprecedented and will result in calamity (never mind that this
is simply an arbitrary date, easily changed, marking a
congressional recess). My expectations of such a scenario are
more sanguine.

The U.S. government defaulted at least three times on its
obligations during the 20th century.

-- In 1934, the government banned ownership of gold and
eliminated the right to exchange gold certificates for gold
coins. It then immediately revalued gold from $20.67 per troy
ounce to $35, thus devaluing the dollar holdings of all
Americans by 40 percent.

-- From 1934 to 1968, the federal government continued to
issue and redeem silver certificates, notes that circulated as
legal tender that could be redeemed for silver coins or silver
bars. In 1968, Congress unilaterally reneged on this obligation,
too.

-- From 1934 to 1971, foreign governments were permitted by
the U.S. government to exchange their dollars for gold through
the gold window. In 1971, President Richard Nixon severed this
final link between the dollar and gold by closing the gold
window, thus in effect defaulting once again on a debt
obligation of the U.S. government.

Unlimited Spending

No longer constrained by any sort of commodity backing, the
federal government was now free to engage in almost unlimited
fiscal profligacy, the only check on its spending being the
market’s appetite for Treasury debt. Despite the defaults in
1934, 1968 and 1971, world markets have been only too willing to
purchase Treasury debt and thereby fund the government’s deficit
spending. If these major defaults didn’t result in decreased
investor appetite for U.S. obligations, I see no reason why
defaulting on a small amount of debt this August would cause any
major changes.

The national debt now stands at just over $14 trillion,
while net total liabilities are estimated at over $200 trillion.
The government is insolvent, as there is no way that this
massive sum of liabilities can ever be paid off. Successive
Congresses and administrations have shown absolutely no
restraint when it comes to the budget process, and the idea that
either of the two parties is serious about getting our fiscal
house in order is laughable.

Boom and Bust

The Austrian School’s theory of the business cycle
describes how loose central bank monetary policy causes booms
and busts: It drives down interest rates below the market rate,
lowering the cost of borrowing; encourages malinvestment; and
causes economic miscalculation as resources are diverted from
the highest value use as reflected in true consumer preferences.
Loose monetary policy caused the dot-com bubble and the housing
bubble, and now is causing the government debt bubble.

For far too long, the Federal Reserve’s monetary
policy and quantitative easing have kept interest rates
artificially low, enabling the government to drastically
increase its spending by funding its profligacy through new debt
whose service costs were lower than they otherwise would have
been.

Neither Republicans nor Democrats sought to end this gravy
train, with one party prioritizing war spending and the other
prioritizing welfare spending, and with both supporting both
types of spending. But now, with the end of the second round of
quantitative easing, the federal funds rate at the zero bound,
and the debt limit maxed out, Congress finds itself in a real
quandary.

Hard Decisions

It isn’t too late to return to fiscal sanity. We could
start by canceling out the debt held by the Federal Reserve,
which would clear $1.6 trillion under the debt ceiling. Or we
could cut trillions of dollars in spending by bringing our
troops home from overseas, making gradual reforms to Social
Security and Medicare, and bringing the federal government back
within the limits envisioned by the Constitution. Yet no one is
willing to step up to the plate and make the hard decisions that
are necessary. Everyone wants to kick the can down the road and
believe that deficit spending can continue unabated.

Unless major changes are made today, the U.S. will default
on its debt sooner or later, and it is certainly preferable that
it be sooner rather than later.

If the government defaults on its debt now, the
consequences undoubtedly will be painful in the short term. The
loss of its AAA rating will raise the cost of issuing new debt,
but this is not altogether a bad thing. Higher borrowing costs
will ensure that the government cannot continue the same old
spending policies. Budgets will have to be brought into balance
(as the cost of servicing debt will be so expensive as to
preclude future debt financing of government operations), so
hopefully, in the long term, the government will return to sound
financial footing.

Raising the Ceiling

The alternative to defaulting now is to keep increasing the
debt ceiling, keep spending like a drunken sailor, and hope that
the default comes after we die. A future default won’t take the
form of a missed payment, but rather will come through
hyperinflation. The already incestuous relationship between the
Federal Reserve and the Treasury will grow even closer as the
Fed begins to purchase debt directly from the Treasury and
monetizes debt on a scale that makes QE2 look like a drop in the
bucket. Imagine the societal breakdown of Weimar Germany, but in
a country five times as large. That is what we face if we do not
come to terms with our debt problem immediately.

Default will be painful, but it is all but inevitable for a
country as heavily indebted as the U.S. Just as pumping money
into the system to combat a recession only ensures an
unsustainable economic boom and a future recession worse than
the first, so too does continuously raising the debt ceiling
only forestall the day of reckoning and ensure that, when it
comes, it will be cataclysmic.

We have a choice: default now and take our medicine, or put
it off as long as possible, when the effects will be much worse.

 

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Fri, 07/22/2011 - 15:25 | 1481972 legal eagle
legal eagle's picture

Too reasonable to be heard

Fri, 07/22/2011 - 16:10 | 1482270 ZerOhead
ZerOhead's picture

Don't look now but your ass is on fire!

(New York is 102 today... I think you'll beat that easily :)

Fri, 07/22/2011 - 16:05 | 1482278 sun tzu
sun tzu's picture

STFU Benny Boy

Fri, 07/22/2011 - 16:08 | 1482305 Bay of Pigs
Bay of Pigs's picture

Maybe yo mama Max?

 

Fri, 07/22/2011 - 16:24 | 1482397 max2205
max2205's picture

you guys junked 2 "..." ? lol

the deleted post said RP is a toothless duweeb

Fri, 07/22/2011 - 16:44 | 1482510 Oh regional Indian
Oh regional Indian's picture

Interesting, because I happen to agree.

ANd now it is clear why Grampappy Paul, Not so Free Mason was groomed in that image all these years.

The rational voice of Professor (or is that Pontiff to some?) Paul will move his herd in teh right direction. His moment of truth; Default my brothers and sisters, the voice of fiscal sanity in the USSA hasss ssssspoken.

Hisssssss........

ORI

http://aadivaahan.wordpress.com/2010/10/18/an-opportunity-and-a-golden-warning/

 

Fri, 07/22/2011 - 17:34 | 1482674 High Plains Drifter
High Plains Drifter's picture

it is interesting that in all of ron paul's  career, his most important part in the play comes at the end of his life and his career. now his time has come. like a falling star streaking across the sky, he is shining brightly now and his light attacts the disaffected to its brightness, as it was intended, when the plan was concocted so many years ago........

Fri, 07/22/2011 - 17:55 | 1482735 Quintus
Quintus's picture

......or could it just be that he's getting more recognition now that the stuff he's been predicting for several decades is actually coming to pass just like he said it would?

Fri, 07/22/2011 - 18:12 | 1482778 High Plains Drifter
High Plains Drifter's picture

yes and who listens to him? you? me?  so what? we don't matter. get it ?  he is just playing his part.   why won't he go near 911?  and please don't tell me, it is because it is politically not viable for him. heck if he ever did start asking the right questions, how long do you think he would live?  anyone can say this or that is coming. nobody listens. nobody. he is playing the part of the controlled opposition. watch him run third party this time and see as he splits the vote just like another controlled opposition person (ross perot)  did in 1992. it never gets better but always get worse. there is no hope unless you take the hope by force. this is the game as it is played. this is our only option now. there is no more time for talk and no more time for voting games. the system is broken and ron paul will not fix it. not him or anyone else.........except you and me......

Fri, 07/22/2011 - 18:22 | 1482847 traderjoe
traderjoe's picture

+1 - he's been in the house since the 70's...

Fri, 07/22/2011 - 21:38 | 1483770 mouthpiece
mouthpiece's picture

That's a nice little theory, and I suppose it could be true.  I don't know for sure.  But I'm willing to take a gamble on Ron Paul.  What if he is the real deal?  What have I got to lose voting for him?  It's worth a shot.

After all, there's no one else to vote for.

Fri, 07/22/2011 - 23:29 | 1484084 dark pools of soros
dark pools of soros's picture

plenty of people talk about 9/11 - look what they did to Sibel - so why does Ron have to be everything for everyone?? Blame the rest of congress that do not join forces with him.

 

 

Sat, 07/23/2011 - 09:35 | 1484442 Ra-Marduk
Ra-Marduk's picture

Stop smoking da weed. You have been junked - now have a nice day.

Sat, 07/23/2011 - 12:32 | 1484825 Baptiste Say
Baptiste Say's picture

Because going near 9/11 would have him incur the wrath of 99% of the obese, mentally deficient, brainwashed, fluoridated and ultranationalist citizens subjects of your broke, shithole, war mongering nation fiefdom and would almost certainly ruin his chances of ever taking down the Federal reserve.

Fri, 07/22/2011 - 18:26 | 1482875 Shell Game
Shell Game's picture

Short answer:  yes.   I don't buy the "Ross Perots and Ron Pauls" of the world are paid stooges to throw us off.  Bullshit.  The herd needs no stooge to be thrown off. LOL!  They are thrown quite far off by the game as it is without a third party conspiracy theory.

If I might pen some hope.. When all this shyte goes down, there will be many who remember the few who spoke the truth.  I may be naive, but I believe this will catalyze a new era of realism and sound living.

 

Fri, 07/22/2011 - 20:13 | 1483368 Havana White
Havana White's picture

Agree.  We'd probably be in pretty good shape if Perot had won.

Fri, 07/22/2011 - 21:26 | 1483717 DCFusor
DCFusor's picture

I live in a small town.  Only two polls.  As a goof (and partly serious) we all decided to vote for Perot, just to see what the returns looked like.  They recorded almost no votes for him -- he didn't have a poll watcher in our district, so the DemoCans just canned all the votes for him outright.  This created another few hundred people who *KNOW* how corrupt things are - we doggone well know we voted and who for, and hundreds of our votes got tossed.  Can't prove it, of course, just that we all did, and we all know what was reported.  What a joke.  In bad taste, of course.

Fri, 07/22/2011 - 21:51 | 1483816 mouthpiece
mouthpiece's picture

Assuming you aren't just full of shit, what you should do is try to organize this small town of yours again, and this time, videotape every single person in the town going in to place their vote, and when the votes get counted, if yours aren't, post the video on youtube.  There's proof.

Sat, 07/23/2011 - 11:57 | 1484717 yeah right
yeah right's picture

Solution, write your name on the ballot!!

Sat, 07/23/2011 - 00:14 | 1484193 bigkahuna
bigkahuna's picture

I have seen this kind of thing during the 2008 republican state convention. The Ron Paul delegates were harassed continuously by the mccain thugs - I almost knocked one of the thugs out. It was downright nasty and hostile. I am a Paul supporter who is not prone to violence but the bs I encountered there tore what was left of the blinders off of my eyes and revealed the political process to me to be a sham. Oh boy I was ANGRY! I will never get myself elected to be a delegate again. Needless to say fuser, I believe what you are saying. 

Sat, 07/23/2011 - 09:40 | 1484449 GreenSideUp
GreenSideUp's picture

+++++

My experience exactly.  One of my friends was threatened with arrest if he didn't shut up in response to a neo-con speaker saying the RP folks should be thrown out of the party. 

4 of my friends were delegates to the national convention.  Thier books and other materials were confiscated, they were watched constantly and they were told that they could not vote for Ron Paul.  Remember, RP was not allowed to speak at the repub convention but Joe LIEberman was.

Those events ripped the last of the scales off my eyes.  Any notion I had of honesty in the electoral process was ripped to shreads.  This isn't a republic or a democracy, and the entire election process is nothing but a show.  

 

 

Sat, 07/23/2011 - 12:09 | 1484756 Havana White
Havana White's picture

In many of the black neighborhoods here in Florida, signs will appear overnight, urging citizens to vote, on such and such a date - that date being one day late.  Other dirty tricks too many to mention.  Of course this kind of thing is as old as voting itself.

Not as old was the notorious Ohio incident, when the top dog at Diebold, the maker of the voting machines, guaranteed R-party officials he "could deliver Bush."  Same election, same place: we saw TV of blacks having to wait in long lines for hours, to vote, while white voters breezed through their precincts.

In swing states, campaigns are only part of the persuasive process.

Sun, 07/24/2011 - 07:23 | 1486745 Bob
Bob's picture

A majority of states are implementing state ID requirements for voting.  This will definitely cut down on the black vote: If you have outstanding warrants--traffic tickets, child support being the most common, wouldn't be surprised if it were 20% of black men--for shit you don't have the money to pay, would you show up to vote if suddenly a lot of attention were being focuses on ID?

Fri, 07/22/2011 - 23:02 | 1483981 CompassionateFascist
CompassionateFascist's picture

RP's libertarian economics = open borders labor sweatshopping + Free Trade job outsourcing. These STRUCTURAL disasters are one of the prime sources of gov't effort to force demand via funnymoney. He's got part of the solution - HardMoney - but he's also part of the problem. Also, he grossly understates the consequences of Fed Govt default. There will be cascading defaults throughout our entire political economy, and the dollar will be run w/in hours. Unless you are armed, provisioned, networked, and non-urban....Kiss Tomorrow Goodbye. But I still think the Republicrats in the House will crack wide open before the so-called deadline, with the liberal wing of the party lining up with the Dems to up the debt ceiling. Result: can kicked down the road to summer of 2012, + huge - tho temporary - political victory for Zero. Remember, this guy is Chicago Mafia. He won't back down.

Fri, 07/22/2011 - 18:19 | 1482820 traderjoe
traderjoe's picture

Why does a sovereign country borrow its own 'money' from private corporations at interest? Ron never addresses why we borrow in the first place.

I bought a 1966 United States Note recently. Very different in terms of how that money comes into existence.

Fri, 07/22/2011 - 22:01 | 1483858 samslaught
samslaught's picture

maybe I can help you out.  Dollars are not "money," dollars are debt.  Gold has been and is (secretly) still the money of nations.  Dollars can only be brought into existence through borrowing.  The use of Fiat currencies is a brilliant scam that allows nations to inslave their people through debt and steal from them through inflation.  When the scam finally runs it's course the governments of the world will have just as much "money" (gold) as they did before they started the scam.  The government has no intention of paying back the principal or interest on any of the "dollars" it borrows.  It would however like to keep the scam going as long as possible.  Any attempts at fiscal responsibility is just to extend the ponzi and nothing more 

Fri, 07/22/2011 - 23:39 | 1484111 dark pools of soros
dark pools of soros's picture

and that is why Another used to say 'Gold goes where it needs to be' as far as countries are concerned...

 

small self-sustaining towns have no need for big government....  remember the Kulaks

http://www.indepthinfo.com/russia/kulaks.htm

 

Sat, 07/23/2011 - 12:08 | 1484748 Prometheus418
Prometheus418's picture

No, "Dollars" are 371.25 grains of pure silver.

http://en.wikipedia.org/wiki/Coinage_Act_of_1792

 

Sat, 07/23/2011 - 18:54 | 1485672 samslaught
samslaught's picture

not anymore they aren't.  The fiat scam always starts and ends the same way. 

Fri, 07/22/2011 - 15:37 | 1482075 Gringo Viejo
Gringo Viejo's picture

Copy that, eagle.

Fri, 07/22/2011 - 15:53 | 1482204 B9K9
B9K9's picture

Actually, too clueless to understand.

Why is it so difficult to grasp that the US is nothing more than an empire? Our very lifestyles (by that, I mean taking a crap and having the shit actually flush down the toilet, or getting in your car and driving somewhere with -0- concern whatsoever about fuel availability/affordability, etc.) are based on two key predicates: we control the world's most critical resources via our military, and the tools/personnel are paid with FRNs backed by this self-same resource. A perfect, virtuous cycle if you will.

Break one segment, and the other fails. The banks don't control our government; the federal government is THE bank. It's truly all we've got - our economy doesn't produce anything of value that the world wants/needs. All we've got are the most techologically advanced arms in which to dominate other peoples. No one, even Ron Paul, wants to call that out, because what it means is we're nothing more than a scaled up mafia operation controlling local neighborhoods.

Is it sustainable? Of course not. So what does that mean? Well, it means stop paying attention to the day-day BS and focus on the bigger picture in terms of surviving the coming cull.

Fri, 07/22/2011 - 16:03 | 1482257 legal eagle
legal eagle's picture

Just not true.  The United States was only surpassed this year in manufacturing by China.  For all the hot air about our lack of manufacturing, we still do manufacture. We shoud, of course, attempt to increase the manufacturing by entering into "fair" trade agreements, not those which benefit other nations.  China is bankrupting the US by keeping its currency pegged to the dollar at a low rate so their goods are incredibly cheap.  If we simply have trade agreements that equalized the currency debasement, manufacturing would return home. Time is of the essence, because we do lose manufacturing jobs every month.

You are simply buying into the US propoganda regarding its "necessary" war machine.  This is the same propoganda every abusive government in history has used, you should not fall for it so easily.

Fri, 07/22/2011 - 16:19 | 1482323 Vic Vinegar
Vic Vinegar's picture

Absolutely all of what B9K9 said is true.  The only question you need to ask yourself is do you keep on trading stocks on the internet or worry about "surviving the coming cull".  Pick a side brother!

Fri, 07/22/2011 - 16:46 | 1482522 Oh regional Indian
Oh regional Indian's picture

The B9K9 is definitely a woof of sanity.

ORI

Fri, 07/22/2011 - 17:16 | 1482624 Vic Vinegar
Vic Vinegar's picture

Agreed, ORI.  For your sake, mine and I guess everybody's, let's hope the stuff CPL was prattling on about the other night doesn't come to fruition.  Have a great weekend. 

Fri, 07/22/2011 - 17:39 | 1482691 BoNeSxxx
BoNeSxxx's picture

CPL???

Fri, 07/22/2011 - 17:41 | 1482699 jm
jm's picture

"Corn Pone Lameass"

Fri, 07/22/2011 - 17:56 | 1482743 Vic Vinegar
Vic Vinegar's picture

It was the highlight of the week when it came to Zero Hedge.  Four minutes after Tyler gives us an update about the budget talks, CPL rolls into town with this magic:

http://www.zerohedge.com/article/paul-ryan-responds-gang-six-bipartisan-deficit-cutting-plan

Fri, 07/22/2011 - 16:51 | 1482535 ATM
ATM's picture

Only everything he posted isn't true and demonstrably so.

I got no problem with the Empire stuff but the controlling oil crap thru the military isn't accurate. We are able to use much more oil than we should because we have the reserve currency and oil is priced in dollars. This gives us a huge discount every day.

Also, the propoganda about the US not producing anything of value that the rest of the world wants is horseshit. Come to the industrial Midwest and I will show you a hundred companies that produce all sorts of things that are sent all over the world.

How about things like construction equipment, ball bearings, transmissions, aircraft, HVAC, machine tools, farm equipment, mining equipment, yada yada yada?

Our enemy is the same that it has always been - those that seek power. Govt is the problem in the US because it is one that has done what all govts do - it has assumed more and more and more power until it has stiffled individual liberty to a point that it almost makes no sense to even try any longer.

The power seekers always bankrupt the people who then have to try to throw off the oppressors. I hope we can.

Fri, 07/22/2011 - 17:14 | 1482619 Vic Vinegar
Vic Vinegar's picture

All fair points.  But sorry I can't resist:

Come to the industrial Midwest and I will show you a hundred companies that produce all sorts of things that are sent all over the world.

And come to Van Nuys and I will show you the same.  :-)

Fri, 07/22/2011 - 17:28 | 1482654 Joe Sixpack
Joe Sixpack's picture

pornography is not wanted everywhere.

Fri, 07/22/2011 - 17:47 | 1482713 Nathan Muir
Nathan Muir's picture

Think macro - as long as we import more than we export it doesn't really matter how much we produce.  The thing that saves us (or has in the past), as you point out, is what we really export are FRN's...I also agree that is why we can consume 35% of the world's energy.  It's all about the FRN.

Fri, 07/22/2011 - 21:29 | 1483728 DCFusor
DCFusor's picture

No need to create a false dichotomy -- I am ready for the cull, and still trade and make hay while the sun shines (or whatever that is that makes stocks go up and down).

 

Fri, 07/22/2011 - 22:30 | 1483945 TruthInSunshine
TruthInSunshine's picture
by legal eagle
on Fri, 07/22/2011 - 16:03
#1482257

Just not true.  The United States was only surpassed this year in manufacturing by China.  For all the hot air about our lack of manufacturing, we still do manufacture. We shoud, of course, attempt to increase the manufacturing by entering into "fair" trade agreements...

 

It's the trend that matters, LG, and the trend is quite bad, and since NAFTA was passed and China given MFN trading status, that quite bad trend has been firmly entrenched.

You say we still manufacture things; I say that we're still losing manufacturing capacity, manufacturing jobs, and manufacturing prowess, technology and innovative processes to foreign nations each and every year since NAFTA and China's MFN status were signed into law.

Whether this is a good, bad or neutral thing is a matter for debate, though I tend to think that it's net negative for our future (multinationals have no national allegiance, and once the IP and technology is gone, it's gone for good).

Fri, 07/22/2011 - 16:13 | 1482330 JW n FL
JW n FL's picture

 

The Federal Reserve is a PRIVATE BANK!

 

The ShareHolders! of the Federal Reserve Bank earn 6% for EVERY! dollar Printed out of thin air.

 

http://webskeptic.wikidot.com/federal-reserve-system

 

At their web site, the Federal Reserve describes the branches as corporations operated for non-profit purposes *[http://federalreserve.gov/generalinfo/faq/faqfrs.htm#5]. The Fed indicates the shares do not constitute ownership as such. The 'non-profit' aspect is only partly true as member banks receive a 6% dividend on their shares.

* the link has been killed off but is 100% accurate. http://www.federalreserve.gov/aboutthefed/default.htm

 

Big Picture? Let the Culling Continue Un-Abated!

Fri, 07/22/2011 - 16:55 | 1482552 ATM
ATM's picture

That's why the first thing we should default on is the Treasuries the Fed has now and the second thing is the treasuries that are owned by federal agencies. Then we can default on foreign owned debt because we haven't been billing them for police services for 65 years. If my math is right the rest of the world owes us about $200T. 

Fri, 07/22/2011 - 17:19 | 1482632 nufio
nufio's picture

nobody asked for police service... and nobody is going to give the US any resources for its police service..i can understand that the US needs money because its broke, but its not going to be able to convince anyone else that they owe it money for services rendered. thats laughable.

what i really dont understand is why bullies need a moral justificaiton for thier acts of bullying?

Fri, 07/22/2011 - 17:41 | 1482700 SilverRhino
SilverRhino's picture

Enjoy your land bound existence then.  Who owns the seas again?  

Something to consider.   The day the US wants to isolate each continent it pretty much has the capability to do so. 

 

Fri, 07/22/2011 - 18:15 | 1482793 HellFish
HellFish's picture

Are you referring to the bullying that in WWII that cost the US 400K deaths to preserve a free Europe?  Or maybe The deaths US deaths due to the bullying during WWI?  Or maybe the bullying during the cold war?  Or the bullying from the Gulf war where the US stepped up to enforce UN resolutions the rest of the hapless world couldn't or wouldn't do without them.

 

You might need to revisit your definition of bullying.

Fri, 07/22/2011 - 17:51 | 1482725 Sudden Debt
Sudden Debt's picture

6%?!

THAT'S MORE THEN ON THE OPEN MARKET!

WAW!

I didn't know that. That's highway robbery because if they priced their bonds at 5% demand would be way over 100%.

 

Fri, 07/22/2011 - 18:16 | 1482798 laughing_swordfish
laughing_swordfish's picture

DEFAULT NOW !!!

As Ron Paul said, better to take our medicine now and undergo the cure, rather than have it incurable later.

Bu the default should be "selective" ...and that means a decision on who we pay, and who we don't.

And what no one is considering that if we defaulted on the Treasury holdings of the Fed, we'd be ok for at least another 13-14 months..and if we defaulted to China, and at the same time imposed an emergency 3-400% TARIFF on all Chinese imports, we'd be just fine.

Only the Financial /MNC elite would be harmed. And it's way past time that they were.

STIFF THE BERNANK AND THE CHINK !!!

Fri, 07/22/2011 - 23:10 | 1484044 CompassionateFascist
CompassionateFascist's picture

Just a slight problem with defaulting on Fed debt holdings: the Red Shield does not take kindly to this sort of thing. And these people arrange World Wars - cf. 1920s-30s Zionist financing of BOTH Churchill and Hitler.

Sat, 07/23/2011 - 08:42 | 1484393 CoolClo
CoolClo's picture

The 6% dividend is free from Federal, State, and local income taxes. It is derived from the "profits" on the interest the Fed receives from its vast US Treasury and other bond holdings.

Fri, 07/22/2011 - 16:26 | 1482405 Shameful
Shameful's picture

Actually Paul has called out the Empire.  Oh note Murray Rothbard has referred to government as "A gang of thieves, writ large".  That's all government is, a monopoly of force, a mafia.  They are the guys with the guns, and oddly enough the guys with the guns get to tell the people without guns what to do.  Been that way throughout history, except substitute guns for other weapons.  Of course the people are conned into believing that they are the government.  The masses are no more the government than the prostitute is the same as her pimp.  At least with autocratic monarchs the masses did not suffer under the delusion that they had a say in the public affairs.

As to the coming cull people don't want to see it.  Much talk is made of over population and the culling of humanity but like good cattle they ignore it.  The cattle will gleefully run into the abattoir never knowing what awaits them.

Fri, 07/22/2011 - 17:41 | 1482696 CH1
CH1's picture

Quite right on the guv, Shameful, though I'm less certain on "the cull." Hope you're wrong.

Peace.

Fri, 07/22/2011 - 18:11 | 1482776 Moe Howard
Moe Howard's picture

Exactly. Even the stupidest, most ignorant hick in America should have understood this when they passed TARP over the objection of 89% of the population, when they stuck their fingers in their ears, closed their eyes, stuck out their tounge and said, nah, nah, can't hear you, can't see you, when they marched on Washington in the millions, ordinary taxpayers demanding redress. The result? More unconstitutional wars, more debt, more illegals invading, more theft in high places. 

 

At that point, even the thickest must understand they have no real control over government.

Sat, 07/23/2011 - 20:10 | 1485818 smiler03
smiler03's picture

+ 22.825

Fri, 07/22/2011 - 17:06 | 1482590 Nonconformist
Nonconformist's picture

B9K9,

Very true, the whole point of creating MBS was to have a product to sell to the oil producers.  Government debt serves the same purpose.  How long we can keep the oil producers in line and accepting our debt is anybody's guess but now that the house of cards has been exposed, our use of force will have to be more explicit.

As far as manufacturing goes, if the military is taken out of the equation, I would guess that the picture is even worse than commonly believed.

Fri, 07/22/2011 - 19:24 | 1483167 NidStyles
NidStyles's picture

You apparently have never listened to Ron Paul.

Fri, 07/22/2011 - 18:26 | 1482872 mkkby
mkkby's picture

Reasonable SOUNDING, yes.  But why kill the golden goose.  The US gets a nice standard of living using the reserve currency to buy trinkets and resources from around the world.  If they are stupid enough to accept bernanke bucks, then that's their loss.

Look, the world has finite resources and the population is unsustainable.  It's better that we slowly devalue currencies and slowly increase commodity prices, so there is pressure to slowly reduce having babies.  That is much better than exponential growth and then an "event".

Fri, 07/22/2011 - 17:42 | 1482701 CH1
CH1's picture

Why is it so rare?

Because it doesn't promise something for nothing.

Fri, 07/22/2011 - 18:26 | 1482871 SilverDosed
SilverDosed's picture

I beg to differ, he argues that if they had just simply done nothing we would have something better. Great interview by the way, rare truth bombs dropped.

Fri, 07/22/2011 - 15:25 | 1481974 Pool Shark
Pool Shark's picture

 

First sensible thing anybody's said yet...

 

Fri, 07/22/2011 - 15:45 | 1482137 redpill
redpill's picture

Which is precisely why Boner and OBoner will ignore it.

Fri, 07/22/2011 - 15:48 | 1482168 Arthor Bearing
Arthor Bearing's picture

The dueling Boners... were not politics ever so?

 

Fri, 07/22/2011 - 17:22 | 1482640 r101958
r101958's picture

You mean Barney's Frank or Anthony's Weiner?

Fri, 07/22/2011 - 15:47 | 1482162 carbonmutant
carbonmutant's picture

Ballsy appeal by a politician....

Fri, 07/22/2011 - 17:31 | 1482664 Joe Sixpack
Joe Sixpack's picture

Where's Dick Nixon when you need him?

Fri, 07/22/2011 - 15:36 | 1482044 Quintus
Quintus's picture

You're quite right.  

 

Just imagine the scene many years ago as Dr. Paul formulated his long-term investment strategy.  

"What I shall do" he no doubt said to himself "Is build myself an investment portfolio based primarily on precious metals.  Then I shall enter politics, become president, make the US default on it's national debt and re-institute a Gold Standard!  I'll be rich!  Rich I tell you!!!!"

"Bwahahahahahaha!!" he went on to add as he stroked his white persian cat.

Fri, 07/22/2011 - 15:45 | 1482140 Quintus
Quintus's picture

As it happens my investment portfolio is remarkably similar to his, although I had never heard of him before I made those decisions. Therefore he cannot 'Sink me' financially without sinking himself also.

Fact is that he is right.  We can face the music now or later.  Later will be worse.

Fri, 07/22/2011 - 15:59 | 1482238 scratch_and_sniff
scratch_and_sniff's picture

No you got the wrong end of the stick bro, what i meant was that he will sink the other 98% of the population that does not own any gold...see i think you have trouble thinking outside your own needs, in that sense you are probably a lot like Mr Paul.

Fri, 07/22/2011 - 16:09 | 1482272 Quintus
Quintus's picture

You seem to be operating on the mistaken assumption there there is any alternative to 98% of the population sinking.  The point is that the longer we expend time, effort and resources in a vain attempt to forestall the inevitable, the further people will sink when eventually the inevitable happens.

If you haven't already, I suggest you read Jared Diamond's book 'How societies choose to fail or succeed'.  He charts the progress of a number of previous civilizations through the same process we are now experiencing and identifies the key criteria that separate success from failure.  A default and complete restructuring of our way of life is probably the only way we will avoid drifting into failure like so many civilizations before us.

Fri, 07/22/2011 - 16:32 | 1482444 scratch_and_sniff
scratch_and_sniff's picture

But its not inevitable, its not, its nowhere near it...where are you getting your information? Read though all of this site im about to post, all the interviews, transcripts of people at the coal face and the heart of the problems, understand how the problems were created and hence how they evolved to this day, then have an honest look at your concerns and come back at me. My ears are huge man, I don’t forget.

http://bancroft.berkeley.edu/ROHO/projects/debt/index.html

Fri, 07/22/2011 - 17:05 | 1482589 watchingdogma
watchingdogma's picture

You've missed the whole theory of money and it's application (much like the other 98%).  You think these things are political, left versus right.  What you haven't figured out is that they (your heros and your villains) are all on the same side of the Austrian versus Keynes arguement.  You can keep argueing that your flavor of Keynes is right - but most of us on ZH recognize you as the being on the Keynes side - the side that is causing all of this strife.  The side that is causing most of our (ZHers) portfolios to grow.  We don't wish you to fail, we just think you don't have the sense not to fail, and we are protecting ourselves.  If your side could get their head out of their ass, we would be happy.  If you don't - we wont be happy - but we wont be broke either.

Fri, 07/22/2011 - 17:24 | 1482642 scratch_and_sniff
scratch_and_sniff's picture

No no, you are just so fixed on the price of gold being the arbiter of all things, but its really just a bitter psychosis, a cruel faith in material simplicity; you fantasize that this worlds political battles belong in a consolidation of the price of gold…I suppose that’s why they call you goldtard man. Its not because you howl at the moon, collect beans and own a shotgun, its because you overlook all subtleties of the modern practices, for one and one thing only…you’re gold psychosis - you pang to reduced all things into one, because you cant process the rest. This kind of psychosis overarches into making all gold bugs conspiracy theorists - the desire to reduce, or moreover the inability to expound.

Fri, 07/22/2011 - 17:38 | 1482684 watchingdogma
watchingdogma's picture

Lots of big words, do you know what any of them mean?  So when you say, "all subtleties of the modern practices" - you do realize you mean "steal from the people because I know better". 

You're right.  I don't enjoy it when you steal from me, and invest in crap.  I don't enjoy it when you take from me to reduce my standard of living.  You can wrap it in all of the big words you want.  But it is what it is.  And I choose to put what I earn today into an asset that you can't steal.  I know that pisses you off - because in your head, what's mine is yours.  But it's not yours.  And you can't have it.

No shotgun though.  But I am strapped 24/7.  Beans too.

Fri, 07/22/2011 - 18:11 | 1482774 scratch_and_sniff
scratch_and_sniff's picture

you dont know you have been fucking born son, whos stealing from who? check out Mogadishu and greater Somalia, Palestine, Chad, Laos, North Korea, Botswana, Liberia, Syria, Malawi...fuck bro the list is endless, go take a trip and have a look, then come back and convince random inhabitants of the planet that they are stealing from you. Watch them eat you in disgust.

Fri, 07/22/2011 - 21:42 | 1483788 watchingdogma
watchingdogma's picture

Just because some people steal from other people, doesn't mean I aprove of my government stealing from me.  Go find some other high horse to climb on.

Don't stray too far off topic - you'll start sounding crazy - wait a minute - too late...

Fri, 07/22/2011 - 17:54 | 1482726 BigJim
BigJim's picture

And you, chum, appear to have no understanding of the monetary system currently enslaving us. It's not a 'right' or 'left' thing.

BTW - just what is a 'conspiracy theorist'? Someone who doesn't accept the 'official' line on something?

Well, given officialdom's (known) track record of telling the truth, it's pretty clear you're the one with the psychosis if you think being a 'conspiracy theorist' is anything other than the most intelligent position to adopt on practically everything our leaders are told to tell us.

As for gold - since it can't be printed at will, unlike fiat, it protects the citizenry from confiscation by stealth (inflation).

RP understands this, even if you don't.

Fri, 07/22/2011 - 18:12 | 1482783 scratch_and_sniff
Fri, 07/22/2011 - 17:48 | 1482716 AbandonShip
AbandonShip's picture

I'll see your berkeley.edu and raise you a Rogoff/Reinhardt "This Time is Different".  IT IS INEVITABLE, we are doomed.   We'll soon reach (or have already reached depending on govt lies...ahem, calculations) the infamous 78% Debt-to-GDP....for the last 400 years no country has comeback after reaching that point.  You've got a lot of historical data working against your "[it's] not inevitable" claim mister.

Fri, 07/22/2011 - 18:17 | 1482806 scratch_and_sniff
scratch_and_sniff's picture

yeah, you've been doomed from the 30's on the same principals.

Fri, 07/22/2011 - 16:08 | 1482306 sun tzu
sun tzu's picture

Hey dumbfuck, the US will sink anyway due to $1.5 trillion deficits for the next 10 years. By 2011, we'll have $30 trillion of debt. I'm sure dumbfucks like you will still blame Ron Paul.

Fri, 07/22/2011 - 16:12 | 1482328 Bay of Pigs
Bay of Pigs's picture

scratch and sniff is as dumb as a fuckan brick.

Head firmly in ass.

Fri, 07/22/2011 - 23:18 | 1484063 CompassionateFascist
CompassionateFascist's picture

No, he's prolly receiving 3 or 4 gov't debtbux chex each month & lovin' it. Working the System.

Fri, 07/22/2011 - 17:48 | 1482718 CH1
CH1's picture

Lots of time wasters here.I'd bet that half or more are sponsored by some flavor of Fed parasite.

Fri, 07/22/2011 - 15:46 | 1482144 Doyle Hargraves
Doyle Hargraves's picture

Again, in another thread you sir are the idiot...I mean 5,000+ years of gold as money, long before central banks and fiat and long after, if your gonna make an argument, at least read a little history to back it stupid f*ckin' limey!

Fri, 07/22/2011 - 15:48 | 1482171 Quintus
Quintus's picture

Is that directed at me? 

Fri, 07/22/2011 - 16:18 | 1482362 Doyle Hargraves
Doyle Hargraves's picture

No my portfolio is strikingly the same as yours and Dr. Paul's. Long gold and ammo!

Fri, 07/22/2011 - 16:24 | 1482391 Quintus
Quintus's picture

No problem.  Just that us Limeys are touchy bastards sometimes :-)

Fri, 07/22/2011 - 16:26 | 1482408 Doyle Hargraves
Doyle Hargraves's picture

Sorry bout that, maybe limey isn't so great a epithet, I mean after all my wife's entire family is from the isles she is first gen american, fish and chips and all that!

Fri, 07/22/2011 - 15:54 | 1482209 scratch_and_sniff
scratch_and_sniff's picture

They used a fucking spear for 500 years, they used a horse and cart for another few hundred, they even used to think your mom was good looking...why not diamonds, why not some other scarce commodity to be used as money? I'll tell you why, because there are too many rich cunts holding gold in largesse to let its fervour wane, that’s all. The only people that pump gold are the ones with gold, coincidence? Not really..."they know that it money", yawn.

Fri, 07/22/2011 - 16:09 | 1482312 magis00
magis00's picture

You are so dumb.  You are really dumb, for real.

 

http://www.youtube.com/watch?v=EzNhaLUT520&feature=related

Fri, 07/22/2011 - 16:35 | 1482465 scratch_and_sniff
scratch_and_sniff's picture

umm idiosyncratically you.

Fri, 07/22/2011 - 16:12 | 1482327 sun tzu
sun tzu's picture

Why not print ink on paper and use it as money? When they need more money, just print some more or now just push a key on a computer and bam, you have another trillion

Fri, 07/22/2011 - 16:16 | 1482353 EHM
EHM's picture

Why not diamonds? I thought Benny already answered that.

Fri, 07/22/2011 - 17:57 | 1482745 Sudden Debt
Sudden Debt's picture

Diamonds can be industrially created. To hard to figure out which ones are natural and which ones are not.

Sure they have serial numbers but does everybody cary a microscope and does everybody know how to read those serial numbers?

The price difference between industrial 1/4 and natural are way to high.

Also, there is 1 player who controls the diamond market. Nobody want's a player like that in rule things.

 

Fri, 07/22/2011 - 16:23 | 1482396 Doyle Hargraves
Doyle Hargraves's picture

Hey assclown I know my mom still turns head on younger men even though she is going on 55+. Not only that but she shoots better than most people and can drive a racecar faster than most men. That being said let us not talk about mom's judging from your lack of intelligence and history, your mom did you wrong! I am not a 'rich cunt' but have gold and silver all the same. Like the bernank said it's tradition to hold gold because traditionally gold is money. Have they found anything better than gold to use as money? Obviously not if we all have some.

Fri, 07/22/2011 - 17:00 | 1482571 scratch_and_sniff
scratch_and_sniff's picture

word is money, value in perception is money, advertising is money, design is money, faith is money, everything is money.

Fri, 07/22/2011 - 17:33 | 1482662 Doyle Hargraves
Doyle Hargraves's picture
Money-from the free dictionary 1. A medium that can be exchanged for goods and services and is used as a measure of their values on the market, including among its forms a commodity such as gold, an officially issued coin or note, or a deposit in a checking account or other readily liquefiable account. 2. The official currency, coins, and negotiable paper notes issued by a government. 3. Assets and property considered in terms of monetary value; wealth. Characteristics of Money: 1. A store of value/wealth (gold has always had a store of value/wealth) 2. A medium of exchange (I can exchange gold for federal reserve notes and buy whatever I may need or just pay with gold in a lot of places). 3. A unit of account (the dollar's history is on a gold standard and gold has a history as being a unit of account, i.e. $50 gold certificates, redeemable at mints for $50 worth of bullion). I would love to see you use anything you mentioned in any of the three characteristics above. Did I mention physical gold has no counterclaim against it.
Fri, 07/22/2011 - 17:39 | 1482693 scratch_and_sniff
scratch_and_sniff's picture

since when were you a philosopher? The only time i cant use "what i said above" is in the fucking stone age...a time where you belong.

Fri, 07/22/2011 - 17:51 | 1482728 Doyle Hargraves
Doyle Hargraves's picture

Philospher? I can use what I got whenever I want to buy or acquire whatever I may need, and that is the point of gold. It keeps you honest. And when your euros and dollars are worthless you'll be screwed along with the other 98%. Unless you have a a useful skill, (judging from your posts you don't), you and your family will starve and die. Sucks to be you, what is even worse is you are stuck in ireland with very scarce resources to begin with.

Fri, 07/22/2011 - 18:28 | 1482889 scratch_and_sniff
scratch_and_sniff's picture

ok then, take the buyers challenge

You need to buy ten things, I will give your challenger cash and a mastercard, and give you the weight in gold or silver, your choice. You have 24 hrs to complete the buyers challenge, the winner gets to keep all the bought items.

In 24 hrs you must buy,

1. A toothbrush

2. Five ounces of cocaine

3. A flight to Australia for a family of four

4. A chocolate bar from wallmart

5. 3 nights in a Swiss hotel

6. 2 Trails bike rear tyres

7. Two tins of Budweiser

8. A PC from Amazon

9. The services of a gardner for 2 weeks

10. A 1993 signed photo of Tom Jones from Ebay.

?

Your time starts now…

Sat, 07/23/2011 - 14:31 | 1484668 Doyle Hargraves
Doyle Hargraves's picture

What the fuck would I wanna goto Australia for? Maybe check out the Perth Mint? I have a perfectly good desktop now, I have teeth unlike most people where you are from so I have a stock of toothbrushes, Budweiser is shit and I wouldn't feed it to my dawg (I prefer German Hefe-Dunkel which is in short supply here), maybe the swiss hotel would have some utility to me (the swiss have introduced legislation for a gold franc something you probably were not aware of so that would be an easy one with gold), I do not need a gardener I have a drought resistant landscape because I live in the desert, There is no Wallmart but Walmart has chocolate bars which will not help my diabetes so nothing there, and I have been trying to keep cocaine out of my diet due to the side effects of a shriveled up penis, jail time, and big ass holes in your nose and sinuses that result from its use. I have met many a marijuana dealer over the years that would accept silver for their product. But even if half of these things had any sort of utility to me (which they don't) why would I part with some of my 'emergency stash' of PMs if I know that the future is pretty grim for paper currencies? Maybe that is the thing you have the hardest time grasping in economics is presented by the Austrian School and the fact that the Austrian School has a SOLID understanding of opportunity cost perhaps much more than ANY other school of thought. (after all they are PMs, why not delay consumption and loss of wealth to a time when your money will most assuredly get you more? The opportunity cost of buying all those 'consumer goods' now would require me to part with wealth at a time when my wealth is increasing daily thanks to mismanagement of the current 'monetary system'). The link is here perhaps you should listen to it it because it gives an overview of why present goods are not always worth more than future goods it also may help you understand what you are talking about..."time is ticking" it is an hour and a minute long maybe you can learn a little about hard economics it really is not that hard of a subject to grasp if you see through the bullshit potato head.

 

http://mises.org/media/5213

Sat, 07/23/2011 - 20:42 | 1485893 smiler03
smiler03's picture

I was bored shitless after your second sentence. 

 

 

 

 

 

 

Sat, 07/23/2011 - 12:47 | 1484874 Prometheus418
Prometheus418's picture

Why would you buy a flight to Austrailia when you booked the hotel in Switzerland?

How 'bout this- Lets see who can buy untracable guns, ammo and survival gear faster- me with silver, or you with plastic.

Sat, 07/23/2011 - 14:28 | 1485123 Doyle Hargraves
Doyle Hargraves's picture

PMs world tour, LOL...Switzerland and AUstralia are deep with maybe we could screw the international dateline and travel back in time (via the SnS time machine)...good point though, it is always good to have stuff you need that cannot be traced, and after all the fiat currency and associated money through the stroke of a key the fed then sent and lent via plastic serves only one purpose-to control and track every single exchange that happens here. After all, then they could 'model' the economy better, and people would not be able to participate in those pesky 'black markets' (sarcasm all the way). Yet another reason PMs outshine everything around...untraceable bitchez!

Sat, 07/23/2011 - 20:46 | 1485902 smiler03
smiler03's picture

So you announce to all and sundry that you want to buy guns. Have you any idea what the outcome would be when the sellers know that?

You won't be in possesion of your gold for very long.

 

 

 

Fri, 07/22/2011 - 18:30 | 1482905 scratch_and_sniff
scratch_and_sniff's picture

did i forget to mention, youre a fucking gimp?

Sat, 07/23/2011 - 11:53 | 1484702 Doyle Hargraves
Doyle Hargraves's picture

You misspelled that homey, it's PIMP not gimp. As in I pimped your wife out for 10 Euros last night, unfortunately she was so bad, I had give back 5 euros to the jon because she tried stealing his gold chain saying something about 'my husband hates gold, but I love real wealth, all he has is those worthless euros'.

Fri, 07/22/2011 - 17:55 | 1482737 AbandonShip
AbandonShip's picture

"everything is money"  wtf are you talking about?  Go take a basic Money and Banking class you half-educated clown.  I suggest Ric Mishkin's textbook for starters.  He's a Fed guy so you'd probably enjoy reading it.

Fri, 07/22/2011 - 18:23 | 1482853 jm
jm's picture

A website that publicizes the best efforts of a gynecolgist turned senator jawboning his nation into a default...

now that is money.

Fri, 07/22/2011 - 20:31 | 1483474 Chump
Chump's picture

You're  so money and you don't even know it.

http://www.youtube.com/watch?v=qhmcJ7Zg5ko

 

Sat, 07/23/2011 - 12:08 | 1484749 Doyle Hargraves
Doyle Hargraves's picture

I used that book to get my Bachelors in Economics. Typical fed drivel but required reading to pass a money and banking core requirement. Of course the instructor was a whole hearted fed bred idiot complete with the gold is not money fiat is money crap, and the fed just gives all its profits over to the gubmint at the end of the year. Hard to learn real economics when you have these assclowns running the show.

Fri, 07/22/2011 - 23:55 | 1484160 The Malamute Kid
The Malamute Kid's picture

Is your mother Sarah Palin?

Fri, 07/22/2011 - 16:28 | 1482419 Smiddywesson
Smiddywesson's picture

Wow, you hate gold and hang around ZeroHedge goading us with your ignorant opinions.  Why are you here? 

Why not something other than gold as the the base currency? 

Maybe because gold is money, has always been money, and will always be money.

Maybe other things are not scarce enough, or can be manufactured like diamonds.

Maybe because other commodities like silver are needed in manufacturing and can't be locked into a role as money without destroying those industries.

Maybe you should read a bit more and type a bit less. 

Fri, 07/22/2011 - 16:55 | 1482496 wisefool
wisefool's picture

Be Gentle with the padawans.

I am a huge Ron Paul supporter, I participate in zerohedge. But I do not hold any precious metals. Gold is the traditional form of sound money. I respect that. If someone wanted a good or service from me I would accept it. I know it has a value, that can be agreed upon, and it can not be manipulated as it has been done with fiat for failed social engineering over the last 40 years. But as soon as I wanted a good or service from somebody else, I'd get rid of it as fast as I can.

Gold is one form of sound money, but sound money is not always gold.

FRNs could be sound money if managed properly. They just currently are not.

Fri, 07/22/2011 - 17:09 | 1482600 watchingdogma
watchingdogma's picture

"FRNs could be sound money if managed properly. They just currently are not."

nor have they been for the last 98 years.  Maybe we should hire you to manage the FRNs.  Maybe you could keep government and the art of stealing by inflation under control.

Fri, 07/22/2011 - 17:35 | 1482677 wisefool
wisefool's picture

If RP asks me to be VP, I will happily do it. I would vehemently support sound money principles, and RP would probably be OK with that, but I would not support a gold standard so that takes me out of his voter base.

Fri, 07/22/2011 - 17:43 | 1482704 watchingdogma
watchingdogma's picture

Any standard that is not governed by mother nature is doomed to fail. You've bought into the arguments of government - and their desire to inflate.  If you take away inflation, government suffers and the people prosper. (as long as property rights are protected).  All governments love inflation.  Throw away the text books and put your thinking cap on.  Think through all of the arguements on your own - don't take the academics word for it.  If you come to the same conclusion - fine.

So why don't you want a gold standard?

Fri, 07/22/2011 - 18:01 | 1482749 wisefool
wisefool's picture

I would support a currency based on mother nature. A basket of commodities that america can produce.

My honest answer/opinion about a gold standard is based on ancedotal evidence. It has mostly been hauled out of america. Through the colonial times all the way up to the Nixon shock, which is the only reason the CHF has value. They got our gold cause we were on a gold standard.

Lets try coal+nat gas+corn+oil = USD. If the foriegners do thier pity party stuff again (start wars, failed regimes, etc) we can give them a Marshall Plan. But to reedeem it those swisterlandians would need to send a fleet of boats over here to get the goods.

They could take all the gold in day, or in the case of FRNs, a nano-second.

There is a reason the former SecDef says the US Debt is the largest threat to national security. But most people probably think he is crazy like RP.

Fri, 07/22/2011 - 16:42 | 1482497 scratch_and_sniff
scratch_and_sniff's picture

What is this, a fucking love-in? Does this site exist just so people can blow smoke up each others asses about how right they are about the relic? Its fucks like you i want to beat around the head with a golden baseball bat.

Fri, 07/22/2011 - 17:39 | 1482688 Doyle Hargraves
Doyle Hargraves's picture

Maybe if you had some gold you could make a bat out of it. Love to see you beat us in the head with that bat made out of euros...oh yeah ireland is broke, maybe you could throw potatoes bitch!

Fri, 07/22/2011 - 17:43 | 1482702 scratch_and_sniff
scratch_and_sniff's picture

yeah i'll throw potatoes instead. I'll throw potatoes and you can throw gold.

Fri, 07/22/2011 - 17:53 | 1482732 Doyle Hargraves
Doyle Hargraves's picture

I have gold, and other PMs to throw. Since I have gold, I will have ammo, and since I have ammo I will throw lead and copper. Hey never bring a potato to a gunfight!

Fri, 07/22/2011 - 18:38 | 1482949 scratch_and_sniff
scratch_and_sniff's picture

yeah ,you just keep throwing them you stupid fuck.

Sat, 07/23/2011 - 11:18 | 1484578 Doyle Hargraves
Doyle Hargraves's picture

I think I have sufficiently demonstrated who the 'stupid fuck' is here potato breath. But there are rules and rule #7 is a bitch so maybe you enjoy the pain.

 

http://www.youtube.com/watch?v=WxKiK-SeBhE&feature=related

Sat, 07/23/2011 - 20:59 | 1485931 smiler03
smiler03's picture

You and your ilk who think that gold will save you from the "end of days" appear to bask in the belief that you will never be robbed or murdered for your stash. Buy as many arms as you wish but the streetwise survivor without anything will take everything you have. They'll probably shit on your corpse too for a laugh.

Sat, 07/23/2011 - 12:52 | 1484893 Prometheus418
Prometheus418's picture

What a waste of good tubers- you can make Vodka from that, you know.  Might be worth even more than gold in the right places at the right times.

Sat, 07/23/2011 - 14:35 | 1485139 Doyle Hargraves
Doyle Hargraves's picture

One thing I have always noticed about you Prometheus, you bring clarity to every fight you enter. You also have a pretty positive assessment of everything, you make a lot of lemonade don't you?

Fri, 07/22/2011 - 18:27 | 1482883 Rhodin
Rhodin's picture

I doubt you have the gold or the skill to cast a golden baseball bat in regulation size.   Be a bit heavy to wield effectively if you did.  Most of the "fucks" you want to beat would just shoot you and take the bat.

Fri, 07/22/2011 - 17:41 | 1482698 nodhannum
nodhannum's picture

I think he is here to capture and/or derail the thread at hand.  Who knows he might even wor for the Bernak.

Fri, 07/22/2011 - 18:18 | 1482811 Moe Howard
Moe Howard's picture

The fact that you said "why not diamonds" shows you don't understand the requirements of real money.

I don't know who is paying you, Mossad or the Fed or some combination, but you better go over to yahoo where you belong with the other rocket surgeons.

Fri, 07/22/2011 - 15:47 | 1482160 Re-Discovery
Re-Discovery's picture

go scratch and sniff yourself, among other things

Fri, 07/22/2011 - 15:49 | 1482174 InconvenientCou...
InconvenientCounterParty's picture

ROLMFAO. <crawls back to the computer in tears.>

Fri, 07/22/2011 - 15:49 | 1482175 Pladizow
Pladizow's picture

To: scratch_and_sniff

I think your moniker and ass have met one to many times.

Fri, 07/22/2011 - 16:18 | 1482366 JimBowie1958
JimBowie1958's picture

since he has found himself in this situation thinking like the demented paranoid fuck all his life

Ad Hominem; pointless, proves nothing and reveals your irrationality.

you really think he would think twice about sinking you and everyone else if he could?

Projection of your own thought for that of Dr Paul.

Pathetic.

Over the next 10 years, even if the most severe budget is passed (saving $4 TRILLION) and actually kept to, we will still build up an additional $10 TRILLION on top of the current $14 TRILLION of debt we now have for a grand total of $24 TRILLION not counting interest.

We are insolvent as a nation and these thieves simply want to kick the can down the road some more, and if you cannot see that then you are the idiot and/or liar, no one else. 

 

Fri, 07/22/2011 - 16:20 | 1482373 DosZap
DosZap's picture

S&S,

Your a dork.

Dr.Paul,is one of  ONLY a handfull of politicians that has ever held a private sector position, and a medical one at that.

He has preached his message for 25+ years, and he's been called everything in the book,ignored,and short of being spit on, has held his core beliefs.

He might be the ONLY honest man,left in the Congress.

He has recently gained some respectability, because of his lifelong calls for fiscal/Constitutional sanity.

About damn time.

Fri, 07/22/2011 - 16:44 | 1482507 scratch_and_sniff
scratch_and_sniff's picture

Weeeeeeelll, hes about to be ignored again, sorry.

Fri, 07/22/2011 - 16:00 | 1482250 Clint
Clint's picture

That's Great!

Fri, 07/22/2011 - 15:44 | 1482117 redpill
redpill's picture

So, he is only allowed to recognize reality if he has a stock portfolio that guarantees his personal ruin should necessary although unlikely steps were to actually be taken?

Whatever he stands to gain is nothing compared to the utter looting that subsidized TBTF banks have been permitted to do over the last few years. Your point makes no sense at all.

What exactly would you have him do, invest in the opposite manner of his political stance?  Then you would be calling him a hypocrite.

Fri, 07/22/2011 - 16:00 | 1482248 Pool Shark
Pool Shark's picture

 

Thanks redpill,

You saved me the time/effort of replying to the troll.

(don't feed the trolls....)

 

Fri, 07/22/2011 - 16:08 | 1482297 scratch_and_sniff
scratch_and_sniff's picture

But this is the head fuck, you take so much of the gold argument for granted that you now quote such referential terms as "reality" with respect to the price of gold, the gold price becomes the arbiter of your reality itself...it's fucking madness man. All this nonsense is based on the fact that it cant be diluted? Do me a fucking favour.

Fri, 07/22/2011 - 16:11 | 1482318 redpill
redpill's picture

5000 years of human history > your filthy mouth and ignorant opinion

Fri, 07/22/2011 - 16:21 | 1482378 scratch_and_sniff
scratch_and_sniff's picture

Trust me dude, im not ignorant, there is not one speck of the gold argument that have not read...you are welcome to try and turn me, but it would be like trying to turn to BA Baracus into a rampant homosexual. I accept it’s a store of value in tricky times, always have done, but lets face it, if it was to do “what it says on the tin” it would be a lot more expensive.

Fri, 07/22/2011 - 16:31 | 1482440 Cheesy Bastard
Cheesy Bastard's picture

 

it would be like trying to turn to BA Baracus into a rampant homosexual

http://thenewgay.net/2009/09/sartorial-advice-from-mr-t.html

Do NOT follow this link or you will be banned from the site!