Ron Paul On The "Illusion" Economy And "Why Socialism Always Fails"

Tyler Durden's picture

"If we look only at the stock market, then we're in denial," warns Ron Paul in this brief 'uncomfortable-for-the-anchor' CNBC interview, adding that "it's an illusion." While the stock market has performed well, Paul explains that the economy-at-large continues to struggle noting that it's due to the Fed: "I don't think any one individual knows how to plan the economy by manipulating interest rates' [they] are so important that if you give this power to one small group - there will be distortion." That's why socialism fails, slams the Fed critic, "it's the invisible hand that we lack, not the wisdom of a few people. Few people can't be wise enough to dictate the market," and the Fed's history shows their track "record is pretty bad."

"So sometimes you have housing bubbles and sometimes you have housing busts, then you have housing bubbles and bond bubbles that's all [the] result of the manipulation of interest rates, which is my real objection to it."


"So one half of our economy is socialized, because it's the control of the money supply, the control of the interest rates,"


"We don't believe they're capable of doing it and I think history shows that the record is pretty bad."


"The economy on the surface looks good, but if you look at hardcore unemployment and standard of living of the middle class, there's still a lot of problems out there... So if we look only at the stock market, then we're in denial."


Furthermore, Ron Paul went to note that "low interest rates are not a panacea - though they won't admit this," adding that the reason for a lack of recovery and hiring is all aboyt "confidence" and that can't be manufactured by stock markets... "we are bankrupt and have been encouraged to take on more debt" - simply put, he adds "the financial system is deeply flawed"...



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0b1knob's picture

Ever notice how much he looks like Pat Paulsen?

Perhaps the only candidate for President who actually admitted he was a joke.

DoChenRollingBearing's picture



I realy, really, really wish I could respond:

"Well said, Mr. President!"

JLee2027's picture

Ron Paul is so good. He should try again in 2016.

TeamDepends's picture

Brothers and sisters, after posting this innocuous, witty retort, we were attacked by some nsaty (no error) malware.  Fortunately, our interweb pitbull, Janet Reno, brushed it aside without incident.  We do not in any way blame Tyler for this smash 'n grab silliness, as it most likely came from the desk of Batty Jarrett, she of no humor.

Flakmeister's picture

Time to put the old guy out to pasture...

The only thing that is *really* lacking is about 10 million barrels a day from a  cheap new oil supply... 

I'll give you a hint, the Bakken and the Tar Sands ain't cheap and if it wasn't for them world production would be down about 1 million barrels a bay since 2005....

Despite spending nearly $3.5 trillion in CAPEX since then....

sylviasays's picture

Someone must be bitter after investing enitre life savings into phony solar companies like Solyndra before they went bankrupt

Flakmeister's picture

That  wouldn't be me....

Polycrystalline kicked thin film's ass and ate it's lunch....

Atlas Crapped's picture

I suspect if you could respond that way, we'd be well on our way to not needing to respond at all ... until we get our Dallas '63 moment for Ron.

vortmax's picture

He looks tired to me.

agent default's picture

You know anyone with half a brain who is not tired of this central planing crap?

Miss Expectations's picture

It bothered me when I noticed that Yellen didn't look a bit tired.

LetThemEatRand's picture

Are they going to call it Life in the Fat Lane or Fat Times at Ridgemont High?  Or maybe Fatliners?  Or more timely, Fat and Furious.

BLOTTO's picture

Reality is their illusion


Their fiction is the reality...

Hobbleknee's picture

Oh man, I totally forgot about Flatliners.

Greenskeeper_Carl's picture

With a sound track by rascal fats?

Hobbleknee's picture

It probably is him. Not only are the obvious features identical, like the nose and brow, but look at the ears. Ears are unique, like fingerprints, and the ears are the same in both pics.

zerozulu's picture

Its greed that fails.

NOTaREALmerican's picture

Re: Its greed that fails.

But greed is natural.   It's a society that can't regulate greed that's the failure.

We can't even regulate predatory lending to nearly retarded people.   Doesn't say much for our society.

NotApplicable's picture

Maybe it's all due to that insane idea that one person can acquire the privilege to regulate another?


NOTaREALmerican's picture

Unfortunately,  with humans,  the assholes and sociopaths have to regulated somehow (as anybody that went through high-school knows).

Societies are just a bunch of rules to keep the assholes and sociopaths from ruining the society, usually in exchange for the assholes and sociopaths running it, getting most of the loot, and getting first dibs on the best females.  

But,  if the sociopaths and assholes don't care about the society (or fear the rest of the lower-evolved dumbasses), well... 


Blankenstein's picture

We have millions of rules and none of them are working to control the assholes and sociopaths.  Instead, TPTB keep making more rules and regulations to keep themselves in power and strip the honest, hard-working people of their freedom and assets.  

And yes there should be laws to punish those who harm others, but the bloated government we currently have exists only to benefit the elite who control it.

NOTaREALmerican's picture

Re:  but the bloated government we currently have exists only to benefit the elite who control it.

Well, what do you expect.   Most of the dumbasses can't even figure out who the enemy is when somebody says "the government is bloated".    Test question,  who is winning - getting most of the 1.5 trillion bucks spent - by the bloated governemtn?

1)  "those people"
2) The goddamn worthless government unionized workers
3) Everybody leaching off of:  Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState.

Who is the enemy?

Anusocracy's picture

People are designed to want government because 'tribal government' promoted the survival of those who wanted or supported 'tribal government'. 'Tribal government' was a net benefit.

Now, it is a huge detriment to progress and survival, but people are still wired for it. Which means disaster.

NOTaREALmerican's picture

Re:  Which means disaster.

Not for the top 10%!   There are those who win,  those who lose, and those who don't even KNOW they are getting eaten alive by the sociopaths.  

You make it sound like when "the collapse" happens the current winners will be with the Trash Class, and justice with prevail.   The Trash Class is just food.

Anusocracy's picture

Sociopaths possess a high-function social mind that has little to do with being more evolved.

Social animals have been around for a long time and the human social mind developed clever intuitive ways to manipulate others, but the behavior of your evolved ones is hardly any different than a wolf alpha-male.

What is new and more evolved is the Aspergers mind which gave man greater technology through engineering, math, and science. It basically substituted manipulating people as a motivating force with manipulating things as a motivator.

Without which, people would still be living in caves

NOTaREALmerican's picture

OMG..    Dude, who's going to get the females with the best teeth, and whose DNA bling is going to rule the world?  

FFCS...   The semi-austistic don't rule the world.   The assholes and sociopaths do.  

Would you semi-autistic open your eyes and look that the top 10%'s DNA bling?   These people HAVE BEEN running things for generations now.

samsara's picture

"who's going to get the females with the best teeth, and whose DNA bling is going to rule the world?"

In ten or so years it will be those who have heat and food probably

Anusocracy's picture

"The assholes and sociopaths do." I understand that better than you apparently.

It's because that's how it was designed in the ANIMAL WORLD.

The psychopaths in charge are only capable of reshaping the world to resemble the animal world. It promotes their survival and, in previous times, the masses also. The increased presence of psychopaths (rulers) in today's positive-sum economic world correlates with decreased progress. They are no longer needed.

The benefit no longer exists for the masses but they can't rid themselves of millions of years of genetic programming.

That is what the psychopaths are taking advantage of, they are in no way the most evolved, just the most violent, destructive, and parasitic.

Fox-Scully's picture

Why can't the sociopaths worry and regulate their own assholes?  That would take care of half of the problem.

Dr. Destructo's picture

Probably because they're sociopaths?

Moon Pie's picture

Bingo.  Also, greed is not necessarily "natural" and in its purest form is devastatingly destructive.  It is moral degradation on a continuing downward path that "allows" or calls for regulation.  If you're honest (even 95% of the time), you don't steal or use other people's shit without their permission, you obey the law (basic ones), you don't need to be regulated.  Our so called financial "leadership" is nothing but a bunch of "Little Hitlers" that have chosen zero-sum-morality in order to conduct their blitzkreigs.  Politicians are no better, most of them.

Who the shit is doing anything like the "right thing" in terms of acting as an so-called institution of "trust"? No one.  Who the shit is breaking laws left, right and center to fill their pockets to the harm of others and not being prosecuted?  All of them, it seems, except for a token poor bastard here and there.  And the rest of society takes their cues.  Virtue, or even half-assed attempts at it are laughed at.  Good is bad and bad is good.

What a mess. 

stormsailor's picture

Woe unto them that call evil good, and good evil; that put darkness for light, and light for darkness; that put bitter for sweet, and sweet for bitter!    Isaiah 5:20

A Lunatic's picture

It's a society that is not allowed to regulate greed that fails......

Leaving Babylon's picture

We need the market, not society, to regulate greed. If predatory lending were allowed to fail as it should, then banks would be forced to tighten requirements. No need for outside intervention (i.e. central planning). Capitalism works. /irony

NOTaREALmerican's picture

Re:  Capitalism works

What is it about assholes and socipaths that you don't comprehend?  Did you skip highschool? 

The assholes and sociopaths win.   There's no such thing as a free market.    Predatory lending has always existed because it's completely natural for the assholes and sociopaths to fuck the dumbasses.  

All these ISM words were invented by semi-autistic males confused about what the assholes and socioapths were doing every day.   There's no rules, the semi-autistic Austrian economic rules don't apply to anything except other semi-autistic males who can't figure out other humans.   There's ONLY ScrewISM.   That's what's NATURAL.   

Christ, it's like dealing with children sometimes on here.

agent default's picture

"Predatory lending has always existed because it's completely natural for the assholes and sociopaths to fuck the dumbasses."

You do realize that if found guilty of predatory lending you don't get a penny back, right? Have you even been to highschool?



Leaving Babylon's picture

But in fucking the dumbasses they would be fucking themselves. If self-preservation is of any interest to a lender, they won't lend to a recipient who is likely to default.

Hundred Dollar Bonus's picture

Greed isn't a crime, it is a motive. 


WelfareFTW's picture

Go RP, laying down truth bombs!

Freddie's picture

How sad.  He could have been President and he deals in reality.  A nation of idiots brainwashed by TV and Hollywood.

BlackChicken's picture

Most truthful thing I read all day.

Rainman's picture

Sorry deal.....public employees, retirees, the unions, the MIC and all their kinfolk are running the polls now. The public funded teat is too big and strong. Ike is long dead. Now it'll all have to be burned down must arson itself...and it will.

samsara's picture

The Best President America Never Had

Greenskeeper_Carl's picture

Of course it is going to be socialized and manipulated. The stock market is the ONLY thing they can point to that has 'improved' during this 'recovery'. Even though it is bullshit, it must be maintained at all costs, because it helps conceal the disaster that is the real economy.

buzzsaw99's picture

socialism my ass. all fascism all the time.

Stuck on Zero's picture

Socialism, fascism, communism, totalitarianism, oligarchism, ...  all names for the same system od central control.


zionhead's picture

Socialism in its PUREST FORM doesn't have Gubmint.

ANARCHISM - "Socialsim in its purest form is communalism without government"

"The purpose of all government is beating, killing and imprisoning" - Von Mises


The problem is the EVIL brought down upon us is the GUBMINT (AIPAC) that the ZIONIST have given us.

"The people have at all times the right to abolish the government" - US Constituion