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Ron Paul Redux: The Economic Crisis On Our Doorstep
Speaking, ironically, at the Economic Club of Detroit in 1988, Ron Paul warns oh-so-prophetically of a coming economic crisis and the profound implications of the government's fiscal and monetary program largesse.
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The fact that he is marginalized by MSM tells you all you need to know about who owns MSM and their agenda. The only really big thing he misses -- and I know he does so for a reason -- is that the "failings" of monetary policy are not failings at all, but by design.
And his free market ideas fail to account for globalization. Consumers won't decide not to do business with a monopoly that has power by virtue of cronyism overseas. And a consumer will not stop doing business with a polluter that pollutes overseas. But I agree with him 100% on a much more limited role of government and that special interests control both parties. Too bad his son is a douche.
Hello,
A week or so ago I think that you mentioned that the TBTF banks or Wall St stole the money or may have been responsible for Detroit's financial problems. If I am mistaken for attributing this to you I apologize, but if I am correct, do you mind elaborating for me?
Regards,
Fred
I don't recall that specifically, but it is true that TBTF banks sold public pension plans garbage including mortgage backed securities that they knew were "shit" (their words). And they took billions for themselves that could have been used to invest in cities like Detroit rather than pay for mega yachts for bankers. When the banks were bailed out, it did not include a bailout for the "shit" that was sold to public pension plans.
And "free trade" with low wage countries with no labor or environmental standards started the cascade that led to Detroit's downfall. Detroit is the canary in the coal mine. Despite what many believe, Detroit was not populated primarily by poor black EBT crowds until globalization sent all of the union jobs away. Detroit was an economic powerhouse when we were a manufacturing economy.
None of this is to suggest that unions are not corrupt and that auto workers are blameless. There is plenty of blame to go around.
Common knowledge that somehow doesn't make it into the conversation when the bugaboo of inept/corrupt negroes allowed to exercise control is so conveniently brought into play.
the tepid applause
the complicated ideas
the unfamiliar words
blah blah Ginger blah blah blah
[cue applause]
http://1.bp.blogspot.com/_PGvSoaafXiI/TDcHENr_V0I/AAAAAAAAIYc/QyeR_2Wpnt...
The TRUTH 25 years ago!
Ron Paul laid it all out there for everyone to see.
Did anyone listen? In one ear - and out the other.
Nothing in between to stop the sound waves! Red team, blue team, green team, - it doesn't matter what color - they are all the same - chasing the same big dollar. Remove money from politics. Just as church and state are seperate - so should Wall street and Washington be seperate.
Until there is reform nothing will change. When genuine desent and greivences are criminalized, margionalized, and ignored, then the only sound reaching the upper echealons, is the sound of a mob.
And here is one of the places that the libertarian argument falls apart (there are others). What is the libertarian solution to globalization, to offshoring? As an executive or owner, I have every right to move all of my production to slave-labor markets, leaving an economic wasteland like Detroit behind. How would Ron Paul´s libertarianism have prevented Detroit? The straight answer is that it would not have, and without the dollar devaluation of inflation, offshoring would have been even worse under a hard money regime.
This is not to say that I support the current corrupt banking-federal-reserve fiat system. I agree with the libertarians about the need for hard currency. I disagree in that a government only need to protect the liberty of the individual and everything else will take care of itself. This is naive foolishness, just as the notion that monopolies only exist because of government protection is also naive foolishness.
Like all binary economic theories, Ron's falls apart when applied to the complex real world. But he's still my hero for being one of the few voices on the national stage calling out the control grid. Balance. I only wish that more people would vote outside their comfort sphere on the issues that really matter like freedom.
The Libertarian view falls apart exactly nowhere. You just need to read more. To understand the environment, read about property rights. To understand national defense, read about private production of security. In fact both of those subjects are covered by Hoppe.
To understand "global" issues, understand the trade balance under the yoke of the hard currency you speak of. To understand interest rates and their impact on the capital structure of the economy, read Garrison.
The Libertarian view is naive on...nothing. In fact it's the only source of financial and economic truth available.
Cold, hard, truth.
Even in a national economy these ideas fall apart. Let's say that company A is located in Virginia. It pollutes the environment and treats workers like shit. I am a consumer in another state, and company A's goods are cheaper than the plant in my town that doesn't pollute and treats workers well. Company A kills anyone who talks about what it does, and has a slick free market ad campaign about how great it is to its local environment and workers. It pays the local private press to do stories about how great it is. It pays the local private police to bury the people it kills. The ads and "free" press tell me that it is so great, that it can do everything my local company can do and still ship its products to me for less than buying them locally. Being a big believer in building a better mousetrap and thinking that the free market will benefit from me doing business with the more efficient company, why don't I buy from Company A, being unaware of what it does in Virginia?
Says the guy that has likely never read a real Libertarian and bases all of his opinion on a fiction writer from the Soviet Union.
So Company A is located in Virginia, which respects property rights. Company A has no right to kill those who talk badly about it, first off. Second, if Company A treats its workers like shit, it will lose those workers to another company that treats the workers better, or alternatively Company A will see its costs go up as it must pay its workers more for them to voluntarily put up with the shitty way they are treated. Third, if Company A is defiling the valuable property in Virginia, the owners of that property could demand compensation for a violation of their property rights, or the state might act on their behalf to charge damages.
Customers of Company A don't need to worry about these matters, even if the customers are of upstanding moral character, as the price they pay for A's product would have to cover all of the costs of making it. In this way, enforcing property rights allows customers to focus on the costs and benefits of each company's mousetrap without needing to wonder about any production details. Resources flow to the most efficient operations, and those who get rich do so by offering the best value. It is all voluntary, all free choice, and all for the best (unless you are a community organizer, in which case there is nothing for you to do).
Sometimes I think rand developed his view of the world by watching old redford movies, starring jane fonda and alan alda. "evil, heartless businessman oppresses small town where every family has a paraplegic child who would get surgery, but said businessman needs a nose job and buys off the doctor." Oh, and don't forget the "of color" family that wants to break out of the ghetto and attend the local public school, but the businessman; being white and rich, ergo: racist, makes sure the school only has enough books for the spoiled white kids.
Life is easily explained by some folks.
Tbe reason those movies play so phony is that nobody - actors, directors, writers - is familiar with the real world. Their universe consists of lawyers, teachers, politicians, stereotypes and cariatures. In other words, straight from TV. I can't recall the number of "evil company takes out disagreeable critics" I've seen but they reflect the utter lack of business knowledge. Those with poor arguments use individual examples - re, our President.
a) you've presumed there's another company b) you've presumed it's not owned by the same people owning Company A c) real people can't just quit their jobs without consequence d) who will enforce property rights again? (hint: not a corporation or private security brownshirt brigade)
Libertardians will NEVER admit that their belief system is predicated on false axioms. You even admit that it's main feature for you is that it doesn't require you to think!
LetThemEatRand
You want to play the what-if, hypothetical game without having done any of the reading.
Dude if my neighbor poisons my groundwater I will sue him and win. Any further questions?
Do the reading, your mind will be blown.
No economic theory, regadless of merit, can withstand the debasement and debauchery of its currency.
As long as the fed is involved, you can forget about economic theory.
It's called (directly and indirectly) "central planning".
Perhaps you need to broaden YOUR reading Mars.
https://libertyrevival.wordpress.com/2010/03/23/false-leftright-paradigm...
Geoeconomics is far superior to Mises praxology.
https://libertyrevival.wordpress.com/2012/12/01/deflation-is-theft-simpl...
Says the guy that can't even spell praxeology correctly....
If you are going to be critical about something that you obviously actually know nothing about, at least be accurate about what it is that you are discussing. Not to mention that your links know as little as you do, and simply get too much wrong on what Praxeology is to understand why they are wrong.
Praxeology takes into account geopolitics, because it's designed from the ground up to be moldable to every situation. That is why it's so flexible. Had you actually read any Mises you would at least be aware of this. This whole delusion about Globalism, and calling Geopolitics: Geoeconomics is just more sophistic nonsense that is intented to keep you tied to the Macro worldview, which is erroneous from initial conception. Fucking amateurs that can't even read the material they are critiquing properly.
Nid
Well done, my man.
You create value that offsets the cheap for the sake of cheap.....
An example
I buy some cheap chinese piece shit item and it costs a dollar but it breaks on average 4 times a year so I have to replace it each time so in a year time frame I have to spend $4 rebuying a $1 at a time.
Now I am some American made good that costs $3. It is built well enough that on average it doesn't break down in a year's time.
Which one is the better value?
Chinese item was cheaper at $1 but costs me on average $4 during the course of a year
American item was more expensive at $3 but costs me $3 on average during the course of a year.
Also factor in it costs money everytime you need to re-buy that Chinese item, going to the store or buying it online you it costs in energy one way or the other interface with the merchant to make the purchase so I need to pay that cost if all things are equal with both items 3 more times for the cheaper one because of quality issues.
So higher price can be justified when the value is there and that is a function of quality among other things. That offsets globalization.
If we didn't have a re-education system that stifles critical thinking and problem skills at expense of control of individuals to keep them in line according to the needs of the state we could certainly compete in this regard through free market principles of competition and innovation to create value to offset that cost differential of doing business. If we had an education system works on basic free market libertarian philosophy we'd be pushing out people that can critically think and dynamically respond and adapt to just this sort of problem that globalization causes.
Education based on enlightenment and scientific thinking like scientific method as opposed to this one size fits all social engineering moron factory that is public education these daysis the answer to that problem but that would require centrally planning control freaks to give up their control.
"What is the libertarian solution to globalization, to offshoring? As an executive or owner, I have every right to move all of my production to slave-labor markets, leaving an economic wasteland like Detroit behind."
Then you don't understand libertarianism. True libertarianism, not the crap that is passed on as libertarianism by the likes of the tea party or even Rand Paul. True libertarians subscribe to the non aggression principle which says - “No person has the right to initiate physical force against another human being.”
True libertarian business people would never offshore or outsource to those that practice slave labor because that would violate the non aggression principle. How would Ron Paul's libertarianism have prevented Detroit? First of all it's not Ron Paul's libertarianism but to answer your question Paul is a hard currency kind of guy and favors ending the Fed. So that would mitigate most of the problems besetting this country. He's written extensively on the subject and his books are available on Amazon.
So sure, you may have the legal right to move production to slave labor markets but that just makes you the moral equivalent of being a slave holder. Just like an IRS agent who believes that it's okay to steal from his neighbor because direct taxation is the price we must pay to live in a civilized society. Or a drone pilot who kills an innocent person in a sovereign nation and claims to be fighting the "war on terror." But hey, if your conscience can handle being a successful businessman on the backs of slaves then by all means do so. Personally I wouldn't call that success and if I knew that was happening I would never do business with you or buy a thing you manufactured.
That particular example is based on a false premise. If Detroit (and the US) had always been using a real capitalist system then you cannot even predict what Detroit would have been like before the collapse, much less that it would have collapsed.
My point is that growth would have been more measured. There would have been failures along the way but they would have been limited based on it being a capitalist venture and the resources rolled over into other ventures. Government wouldn't have taken on the debts it has. Who knows how exactly that would have played out.
I can't speak for Let Them Eat Rand, but here's a pretty good primer imo:
http://www.commondreams.org/view/2013/10/30-6
The various links within the article offer further enlightening analysis.
Interesting take. Thanks for the link.
From Glen Ford, the man--the black man--who termed Barry O "The More Effective Evil" in the face of the pseudo-liberal desperation to re-elect that cocksucker as the "Lesser of Two Evils" within the red-blue paradigm.
Check out his links--he's on fire, like a black Glenn Greenwald.
Bob, I agree, nice link. The Emergency Manager law in Michigan is coming to every state soon, and if you're not well connected and/or an Ivy League grad, you're a peasant of the State.
A State that now exists at all levels of government primarily to serve the interests of the corporate borg or--more accurately--the self-dealing sociopaths who run them, the "investors" who finance and profit from them, and the cock-sucking politicians who get paid to make sure it happens.
Yet the paradox is that while serving corporate interest they also promote allegiance from the zombie class. It is truly those who neither want nor need the State that goverment fears. Crony capitalists and zombies both need the State in order to function.
Black Agenda Report is one of my reads which is run and edited by Glen Ford. I agree with about 45% of their position on issues, but at least it gives me a perspective I've not thought about. Ford's basic argument is that blacks have faired worse under Obama than any other president in modern times, yet blacks flock to vote for him or any of Obama's chosen candidates because he's black. He insists frequently that "blacks are asleep" in Obama's post-racial nation. Yet Obama has no problem scolding blacks as he did at the memorial on Martin Luther King day celebration or in two of his father's day speeches.
Tavis Smiley admitted to the same things. Racism and blind allegiance to a person SOLELY on the color of their skin. My oh my how MLK's word's have been turned on their head.
I hear his son is just like his dad.
So why again is his son a "douche"?
I love Ron, worked and contributed the max to his 2008 campaign, but anyone in the business of prophecy faces an inevitable problem. the failure of the prophecy (end of the world, collapse of the dollar or market, revolution, New World Order, etc). Detractors have a field day. Ron has continually warned about debt and growing authoritarianism but because these progress at a linear rate, most barely notice.
I remember Perot and his harangue and how naive that sounds. Yes, we can survive five trillion in debt, Ross. I remember each trillion after that until we hit $10T and then it blurs. Ron is right - it will not go on forever but it may for a long, long time and its denouement may be gradual and not explosive, along the lines of the UK slow decline.
It's like he freakin' peered into the future!
Paul is becoming GOD.
What would the US look like if Ron Paul became President in 2008?
The same, minus Ron Paul. I'm sure his funeral would have been nice though.....
;_;
I'm telling you! California will fall in the Pacific!
But he has taken on his task. He is out there to point out the obvious. The obvious which the majority does not want to hear. Screw the majority; they had their chance.
The only presidential candidate that I contributed to. (and I did it with my globalist FASFA money).
He should be president of the United States of America and Obama should be president of Washington D.C.
Technically obama should be impeached and barred from Federal Service. Or just send him back to Illinois where he can "community organize".
Throw all ethics out during this cycle of American history. When they can print the stock market up and pay 1/2+ the country to vote for TPTB, we will be many cycles away from any form of reality.
Best part was the speech was in Detroit.
as the motor city goes so goes the nation.
They've said the same about California, and I tend to believe them.
Two (2) off topic stories of note
NEWPORT BEACH, Calif. (AP) -- Four people have been charged with torturing a California marijuana dispensary owner during a robbery and cutting off his penis. http://hosted.ap.org/dynamic/stories/U/US_MARIJUANA_DEALER_SEVERED_PENIS...
California, the land of milk, honey and horror
and this, which is truly terrifying
https://rentmoola.com/
pay your rent with a credit card -- this is a Canadian company (you know, Canada where its citizens have one of the highest debt loads in the world and house prices that are reminiscent of America 2006
these brilliant dudes are expanding in the US and Landlords are loving it
Oh, sure, blame Canada...
eek *shudder*
O/T
US Federal Elections Commission now accepts Bitcoin.
http://cryptome.org/2013/11/fec-bitcoins.pdf
Global governance 4 U.
Over.
Too late now. Media blackout of RP in 2012 sealed the deal. TANSTAAFL. The truth will out. Kick back and enjoy whatever prosperity you have left while you can and pray for our children's future.
Ron Paul is a true visionary. It's unfortunate that we don't have more people in politics like him. Sadly his message doesn't resonate because the average iSheeple are afraid of real freedom and corporate America doesn't know how to survive without the government teet.
The fact that this speech is 25 years old and we still have the same problems, albeit now more magnified, is a testimant to the capabilities of TPTB to hold this together. Let's hope we don't have another 25 years if this shit.
Understood. Another 25? Maybe. Who can outlast who? That's the question.
Sadly his message doesn't resonate because the average iSheeple are afraid of real freedom...
I'm afraid that it's worse than that...if I may:
Sadly his message doesn't resonate because the average iSheeple don't even realize that their freedom is gone.
He was right on then, and still is.
Yeah, but 25 years ago he expected a crash, and today we're expecting a crash any day, but fuck, we'll all be dead before it ever comes! I need to leave a note for the kids to let them know where the stack is hidden.
Yeah, currency crisis's and transitions to new reserve currencies take a while to marinate. You have to be a visionary to recognize it but you might lose a few supporters along the way who have died while holding their breath.
If you watched the speech, he didn't give a timeline.
25 years ago, just prior to the speech in fact, was the "black monday" crash, and the Federal Reserve responded by "saving the world".
The end though comes when the US dollar is no longer considered the world reserve currency and nobody will give a fuck what the Federal Reserve is up to. Which he pointed out. Then there was no credible alternative, now there is the Euro, and China is also actively positioning itself as the inheritor of that privilege.
Though it might take another decade or two as macroscopic geopolitical events often do... You've been warned. You see it doesn't have to end, all you have to do is take responsibility.
Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative and creation, there is one elementary truth the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then Providence moves too. All sorts of things occur to help one that would never otherwise have occurred. A whole stream of events issues from the decision, raising in one's favor all manner of unforeseen incidents, meetings and material assistance which no man could have dreamed would have come his way. Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it. Begin now. - Goethe (illumined)
You change the world by first changing yourself. Success depends upon beginnings, so start where you are now, with what you have, and what you can do in the next 60 seconds. If you don't try, failure rate is 100%. So you must try; no choice, frightened treehuggers. You could win the lottery... if you just get off your ass. If you don't get off your ass, you'll lose. Mathematically true; zero.
Yea, Obama fucked up. BigTime. Under the lights with everyone to jeer. At least he tried. Could you have done better? You didn't try. Wake the fuck up. Pitch in.
Or don't.
If you think you can or you can't, you're right. Henry Ford
i didn't know it was lunatic day? tyler, is it lunatic day?
he tried to what?
Your defense mechanisms are showing. If you can do better, now is the time. But don't waste my time making excuses for someone else pulling you down. Its your life. Do what you want, and pay for it yourself.
The reasonable Man adapts himself to the world. The unreasonable Man adapts the world to himself. Therefore, all progress depends on the unreasonable Man. - Unknown
Are you drunk?
I'm free.
Argue for your limitations and they're yours - Richard Bach
paid in kind
paid in kind
George Bernard Shaw.
Oh, and the earlier quote, while having been inspired by Goethe's Faust, isn't actually his, according to the Goethe Institute.
(May or may not be lunatic day, but it's certainly pedants' day. Sorry.)
Thanks. Whether Goethe conceived it or carried it forward, its an empowering idea. Just grasping this idea when I was young has made my life better, and I share it. Its true.
Thank you. I like Shaw. He is no Shakespeare, but he's good.
paid in kind
Or I can finish my beer, play some computer games, and head back to the fridge for another beer.
A man's got to know his limitations.
You dig.
The ancient Athenians had the great man Socrates and yet they poisoned him. The US had a great man by the name of Ron Paul and they ignored him.
The fact that neither the people of the USA nor the established parties could embrace this man and use him to spearhead a great revival/transformation is an indication of how mentally and morally bankrupt the United States is as a nation.
The USA more than any other nation has screwed itself beyond the wildest hopes of any real or supposed terrorist.
Why did his head not explode in '08 when the TARP came?
Why was he not more vocal?
The masses are so stupid to ignore this amazing sage.
Norman Dodd, G. Edward Griffin, 1982: Reece Cmte., Central Bank C
http://www.youtube.com/watch?v=GgL8rqqddAU
.
e.g.: "why do the foundations generously support communist causes
in the united states?"
n.d.: "well, because to them communism represents a means of developing
what we call a monopoly, as the organization will say of large scale industry
into an administer-able unit.
e.g.: "do they think that they will be the beneficiary..
n.d.: "they will be the beneficiaries of it, yes."
.
you could replace the word "communism" with the word "terrorism"
or "fascism" here just to see how that might sound.
Tea anyone? http://shutupnsing.wordpress.com/2013/11/09/the-tempest-in-the-tea-pot/
Domesticted Amerika hates prophets but loves Cheese Makers
Ron Paul = Breath of Fresh Air= Speaks Truth
The French get their butts kicked by the viet minh at Dien Bien Phu in 1954.The valley was ringed with 105's and radar-guided AAA guns seized in Korea war,and shipped across China.
The war is settled at Geneva.The Americans step in to support the South Vietnamese.The war becomes very inflationary to the U.S. currency.Nixon inherits the Democrats war and ramps up the bombing.War is made possible due to the draft.Not that many volunteers for the Marines in this conflict.
The French send a cruiser to collect gold for dollars (the Bretton-Woods currency clause),emptying Ft. Knox within weeks.These are dollars recycled from Asia,paying the troops,and corrupt Gov'ts.Nixon scraps the Gold window,breaking the link which all major currencies relied on.The USA has technically defaulted on its debt (for the 1st time).The Asian peoples,with long memories,become suspicious of paper backed currencies,and start stacking gold.This accelerates after the 2007-8 Wall Street Banking crisis.The U.S. and U.K. central banks engage in massive market manipulation of the precious metals exchanges trying to keep the prices lower.This activity is welcomed by the Asians who can now purchase more gold.The Indian currency is trashed leading to huge demand for gold in India.
What part of Ron Pauls' philosophy on economics is flawed?
According to BMO Capital Markets:
https://app.box.com/s/38q5x8x29vv25ujcg7ef
November 8, 2013
In Search of the Mythical Market Correction
Strong Market Performance Has Amplified Correction Chatter
Many clients we speak with are convinced that the market is on the verge of correction. Sure, the stocks have been on an impressive and almost uninterrupted run these past few months, but we believe performance patterns alone are not enough to justify directional market calls. Instead, investors should consider the macro and fundamental backdrop along with risk-taking levels to determine whether or not the performance is justified. From our perspective, the data simply do not support the correction talk and we remain committed to our optimistic market outlook through year-end and into 2014. As such, we believe those investors waiting to “buy on the dip” are likely to be disappointed.
Performance Patterns Have Followed the Script
Despite the fact that it has been over a year since the last major market pullback, recent performance patterns are not totally unprecedented. In fact, the current bull market has already produced as many 5%-10% and 10%+ pullbacks as the prior six bull markets dating back to 1970, on average. The main difference has been the duration between corrections, which has been roughly half the average since 1970 even with the latest correction free period. Therefore, the past year or so can be at least partially viewed as a reversion to the mean since more investors are beginning to accept this market for what we believe it is – the early to middle stages of a secular cycle that has at least five more years of life in it.
Macro Trends Contradict the Correction Talk…
The one thing that almost all market corrections during bull markets have in common is that they are usually triggered by a Fed rate hike or a spike in oil prices. In addition, high levels of confidence, expensive market valuation, and underperformance from Financials are also typically associated with bull market corrections. Fortunately, most of these conditions are nonexistent in the current environment making the probability of any sort of major market correction very low over the near term, in our view.
…As Does the Absence of Excessive Risk Taking
Excessive risk taking has been another common precursor to meaningful market pullbacks based on our experience. However, the risk measures we track suggest no indication of excessive risk-taking by investors.