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Ron Paul: "The U.S. Government Must Admit It Is Bankrupt"
Any time you bring the two Pauls together in an interview, and start discussing items such as the debt ceiling, government spending, and monetary policy you know the results will be good. Sure enough, in this rare ABC interview with father and son, the sparks fly, and among the topic touched is the most popular story on Zero Hedge from yesterday, namely President Obama fabulous hypocrisy, who after bashing the debt ceiling as a senator 4 years ago, has bet the outcome of his entire economic policy on maxing out every single credit card available to him. Paul's response: "we have to face the fact that we are bankrupt and we can't pay our bills." Not exactly the kind of thing one wants to hear if one's name is Hu Jintao. That said you know the Paul-led interrogation of Bernanke will be something else, even if it is ultimately totally fruitless.
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one reason military spending will not cease or decrease:when in default of debt made to buy them, tanks and missles are seldom repossessed in a peaceful fashion.
This is the fourth time Ron Paul has impressed me with his candour and lucidity. A very rare feat. It's frustrating for an outsider like me because clearly, he shows that there are Americans who are not stereotypical thumbless morons. I guess this will mean that these gentlemen are bound to be vilified by the press, and generally shat upon by the rest of their countrymen in the next election.
Interesting final comment from Paul Sr. on the 'bankrupt' US govt' situation. As Commodity futures trade near their record highs..
http://chart.ly/ash3cfr
an interesting development has begun with the EURODOLLAR contract (see chart) implying that LIBOR rates may well be moving up here.
http://en.wikipedia.org/wiki/Eurodollar
The future implication of this is that we may be now on the verge of another credit crisis possibly manifesting in Europe and spilling over to the US very shortly...
With the Euro currency collapsing as well it may be not just the US Bankrupt situation that the world needs to worry about, rather the PIIGS whose 10 year note yields are inching toward all time record highs on a daily basis.
A very real credit crisis may be in store for the new year 2011 and Congress may have a bit more to ponder as they look to raise the Debt ceiling on The Ben Bernake (mis)led country...
[A very real credit crisis may be in store for the new year 2011 and Congress may have a bit more to ponder as they look to raise the Debt ceiling]---fedspeak
Thanks for your post, fedspeak.
The Debt Ceiling will be raised, no question. The news outlets sure are having a terrific time with the issue. Lots of heated arguments, Dems vs Repubs, etc. All great for viewer ratings. Politicians vying for the cameras, sending up test balloons checking which way the electorate(2012) winds are blowing.
All this "great television" while our country is burning to the ground.
Raising the Debt Ceiling is a given. There are far more significant economic events unfolding.
Just say NO!
We don't have to default on our debt. We just have to pare back our spending to meet our revenues. It is literally that simple! We can do that overnight!
A government that issues a fiat currency can succumb to inflation but it cannot go bankrupt if all its obligations are denominated in its own currency, because it can always meet its obligations through currency issuance. This is as basic as it gets.
Do you have an example of this working (for any extended period)?
Yes it has worked now for almost a century here in the USA. Others are impressed by our productivity, innovative added value tech and our slow moving "balanced" political framework. The question is not "does it work," the question is how much longer will others remain confident in the USD. Will Bernanke reign in the expansion just in time? “THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS THE RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION (BERNANKE HAS WHOLE HEARTEDLY SAID – “NO THANKS” TO THIS OPTION) OR LATER AS A FINAL AND TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED.”
I would say it goes down one of two ways:
Option one: Bernacke gets on TV, and admits that the FED is a private company, and that they've been stealing your wealth for a hundred years, and oh sorry, but we're broke and you're not getting shit. OR....
Option two: Collapse the grid through a false flag op, let the sheople panic and kill each other when food gets scarce, and then let them come to one of the 800 warm and cozy FEMA camps where food is free, and undesireables are eliminated.
Blame it all on terrorists, and reorganize the USA in to a group of idiots welcoming the global comunist state.
You give the bad guys too much credit.
Global comunist (sic) state?
And you were doing so well until your hidden colors popped out...
Next thing you're going to tell is us that Federal Express is a private company too.
Dammit, if it's Federal, it's got to be solid and good and governmental.
cock your head to one side and scratch the crown with your elbow on the table when you read this http://ppjg.wordpress.com/2010/04/28/where-is-that-ellusive-us-treasury-can-you-say-puerto-rico/ WTF?
Well, I watched the video, was impressed and then read the comments and commented some on my own. I probably insulted a few more people than normally, but it is 2:35 am and I wonder who the fuck besides me is reading this shit.
But what really depresses me is that I'm almost finished with my drink and soon I'll have to go to bed and to sleep and then wake up and try to stay sober for another eight hours or so and try not to laugh at the ludicrous idiots who cross my path every day and try not to physically assault somebody just because they're part of the herd and I'm trying very hard to be more like a wolf.
It's a life, but not a good one.
Me too. Good night.
Sadly, with enough death combined with inflation collapse is not mathematically certain.
If things continue as they are collapse is certain; however, with hyperinflation and millions of deaths in large metropolitan areas the "liabilities" and confiscation of "leftover" money would about do it.
Not that I condone it but think of Germany; did they ever pay the debt they created to build the Third Reich - or even to us from rebuilding Germany? No. They haven't even paid Greece their reparations from WWII.
A war with China would let the FED default on any Treasury obligations cleanly also.
But, long term, the goal is to enrich themselves and leave for Brazil, Switzerland, Chile, etc.
What happens when the Chinese housing bubble pops? I hear they have enough vacant property to house 2/3 of the US population. This would make a good topic for discussion.
Ron Paul is only stating the obvious, obvious for anyone above room temperature financially.
But the best speech on this obvious default that the U.S. is going to face was given by Peter Schiff in 2009:
http://www.youtube.com/watch?v=NkEtArDFNYA