This page has been archived and commenting is disabled.

Ron Paul: "Americans Must Choose Non-Interventionist Free Markets For Peace & Prosperity"

Tyler Durden's picture




 

Originally posted at Voices Of Liberty, powered by Ron Paul,

Ron Paul and Mark Spitznagel are passionate about non-interventionism, free markets, and Austrian economics. In spite of their years, these passions former Congressman Paul and Mr. Spitznagel hold dear are growing in popularity among the youth of our nation.

Congressman Paul served many years as a U.S. Representative from Texas, spanning 1976 to 2013, and was a Republican presidential candidate in 2008 and 2012. He has written extensively on liberty and politics, including The Revolution: A Manifesto and End the Fed. Spitznagel is the founder of Universa Investments, an investment advisor that specializes in tail-hedging, and is the author of The Dao of Capital, for which Paul wrote the Foreword.

The longtime friends (and friends of freedom) recently had the opportunity to catch up in person on topics ranging from the liberty movement and agricultural policy, to the consequences of Federal Reserve monetary policy. Here is a transcript of their conversation:

Mark Spitznagel: Ron, you have been the galvanizing force of a resurgent liberty movement in the United States. Yet, we find ourselves in this world where interventionism is on the rise, and much of America remains complacent about it. For instance, I think we would agree that today’s crony-capitalism and monetary-interventionism by central banks is at an unprecedented scale that will once again leave destruction in its wake. Why is America letting this happen, and moving away from its Jeffersonian ideals? Moreover, I have to ask you, has the liberty movement stalled, or even failed?

Ron Paul: Mark, on the surface and in Washington it may appear that interventionism is on the rise but in reality it’s on the defensive, more so than ever. Indeed there is a lot of complacency as that is frequently the rule for the majority of people regardless of the system. Where there is little complacency is with the intellectual leaders now leading the charge against the foreign and economic interventionists who have been in charge for decades and created the major crisis that we face today.1419433321_82a893a11c_z It’s never easy politically to turn off bad policies and many times we have to wait until the policies self-destruct. The philosophy of non-intervention is growing significantly and that is crucial since ideas do have consequences. The obvious failure of the current system, and the current intellectual leaders of the younger generation who are more favorably inclined toward non-intervention, provide the encouragement we need to clean up the mess. During my presidential campaigns, I was always quite pleased when students held up signs saying: “You cured my apathy.”

A question for you, Mark: I know you and a very few others like Jimmy Rogers know about authentic non-intervention in the economy, but what are Wall Street traders and investors like? Are they helpful in exposing crony-capitalism or are they part of the problem?

Mark: Unfortunately, Wall Street can’t help but respond to monetary intervention, like puppets to the Federal Reserve puppet master. Not only has the Fed turned just about every investor into a crazed gambler desperate for any yield above today’s artificially low interest rates, for professional investors the desperation is compounded by the career risk associated with underperforming in the very next period. If you’re fired for not having played the Fed’s game in the next round, who cares about what will happen in future rounds, and who cares about the long-run implications of this crony-capitalist game?

11213428415_250e025a2d_o

I see this temporal myopia at the very heart of Washington politics as well. If politicians don’t get reelected each period, then from a career standpoint any concern for the future was for naught. It ranges far and wide, from corporate managers to, even more significantly, farmers: Think of how debt and farm policy distortions induce wringing out everything that we can from each harvest, even at the expense of future harvests (such as with soil erosion).

Frédéric Bastiat said it best when he condemned the pursuit of a small present good that will be followed by a great evil to come, rather than a great good to come at the risk of a present small evil. The latter is extraordinarily difficult today. To me, your ability to focus away from the present and truly see the great good or evil to come was really so astonishing about your political career. What was your secret, Ron, and what kept you from losing sight of that?

Ron: The simple answer (and there’s a more detailed one) about my not “losing sight” is that I detest the current political process. Originally, I never expected to be elected and had one goal in mind: promote the cause of Liberty. I firmly believed our country was headed in the wrong direction. I was confident that the Freedom Philosophy and the non-aggression principle offered the solutions to our problems. I had no interest in being molded or manipulated by those who held different views.

Your views on political myopia are correct. This myopia, fueled by self-serving politicians and justified by economic mysticism, is at the heart of the problem. This myopia dictates that politicians, the day after they’re elected, start concentrating on the next election. The lobbyists love the system. They receive high rewards for getting benefits that frequently benefit a Member’s district. The lobbyists convince the voters that the system can be used for their benefit and the Member gets the credit. Good economic policy, moral principle, the Constitution, or challenging one’s party’s leadership rarely enters into the equation. At times I think the myopia approaches blindness.

Your point about how the government farm program greatly distorts the market is a perfect example of how long bad policies can last when some people immediately benefit at the often gradual expense of others. It happens with all government programs. Dairy farmers and dairies, in protecting their interests, have made it difficult, if not impossible, to drink raw milk—hardly a policy that a free society would endorse.

Mark: Oh yes, a subject near and dear to my heart! There’s a parallel between the case where benefits from policies are concentrated in the few and the costs dispersed among the many, and the case where benefits are concentrated early on while the costs are dispersed over time. In both cases, for many people it’s not an obvious fight worth fighting. But of course it is worth fighting. When the State gives special privileges to certain crops, for instance, the result is an artificial, disease- and pest-prone monoculture and a distorted ecosystem and food system around those crops. CAFOs (Concentrated Animal Feeding Operations), corn syrup and the corn-fed-everything industries are products of government favoritism. More long-term, natural, and sustainable agricultural systems like organic or pasture-based are made to look impractical. It’s crazy how much bureaucrats determine what we grow and what we eat.
5972693831_942471594f_z

Sustainable farmers should all be libertarians. The problem is that many “hippie” types coming from the Left see big agricultural companies implementing these harmful policies, and they understandably conclude, “That’s pure capitalism at work, that’s how the profit motive leads to disaster when it comes to food.” But no, that’s cronyism at work, that’s how government intervention leads to disaster. The very same thing happens with financial crises, of course—capitalism is always wrongly accused. We blame the system when we interfere with its natural homeostatic functioning.

Ron: Sustainable farming and libertarianism are a natural mix. I know that you yourself, in addition to being a hedge fund manager, are a pasture-based dairy goat farmer and artisanal cheese maker. Sustainable farming recognizes the perils of tinkering with the complex interactions of natural systems. And it rejects the notion of dependency on the government and emphasizes the principle of self-reliance. Of course, if this principle were to be followed in all areas of the economy we wouldn’t have to worry about prosperity or a shrinking middle class.

Mark: Do you think your background as a physician has influenced your acceptance of the idea of having reverence for a system’s natural resiliency, and not messing with that through tinkering?

Ron: There is no doubt that it did. I kept a copy of the Hippocratic Oath hanging on the wall at my medical practice of about 35 years. We know that today the government has little reverence for the economy’s natural resiliency, what Adam Smith referred to as the “invisible hand” of the market. Interestingly, in modern times the Hippocratic Oath has been changed to be more in tune with today’s legal system. The Oath now shows less reverence for life than it did originally. Maybe it’s a sign of the times. Once we restore the principles of a free, self-adjusting market, we’ll have to check and see if the Hippocratic Oath has been restored to its original form.

Speaking of doing no harm, I followed the story last June when you were blocked from trying to help a struggling, blighted neighborhood in Detroit by bringing in a herd of goats from your farm in Michigan, Idyll Farms. The goats would have cleared the neglected overgrowth, and the project was providing jobs and education to the community. But the Detroit City Hall chose to enforce an ordinance banning all livestock and immediately kicked your goats right out.

Mark: I’m a big believer in urban farming, especially for large open and economically-challenged areas like parts of Detroit. Call it a return to Jefferson’s yeoman farmer. One of the previously unemployed people I hired there told me he wanted to use his earnings from the summer to purchase a house. It was a win-win. By the way, we didn’t ask the city for permission to bring in the goats—and the local community encouraged us not to ask—because we knew what their answer would be. Hopefully we provided some momentum to change this bad ordinance.

Ron: What is your opinion of political action versus the importance of education?

Mark: They go together. How could our utterly failed public education system not have something to do with today’s complacency? Of course our system requires a thinking electorate, one that can see through the central planners’ economic mysticism you mentioned. As you know, Ludwig von Mises argued that all governments—even dictatorships—ultimately rest on public opinion. We can complain about the politicians and central bankers, but ultimately the only reason they can get away with these outrageous and wealth-destroying policies like corporate bailouts and asset inflation is that the public assumes they do something good. With our current state of economic ignorance and political apathy among the general public, we’re left with the lowest common denominator of plundering—not only of ourselves, but especially of those who are most powerless: future generations who, sadly, cannot yet vote. When you think about it, this is a huge burden on an electorate. Would you agree?

Ron: Definitely. It’s a safe bet that the quality of education in this country is inversely proportional to the increase in the Federal government’s involvement in it. Government schools have a predictable agenda: justifying the government and its programs. I was warned never to try to educate in a campaign yet that was always my goal. The understanding that public opinion is crucial to all political change recognizes that the intellectual leaders are key to a country’s future, both good and bad. But for the most part politicians aren’t interested in changing people’s minds. Their concern is to put their finger up to the wind to see which way it’s blowing and accommodate. I have always had an interest in working to change public opinion regarding the proper role for government in a free society, such as my efforts with my own FREE Foundation for 38 years and currently with the Ron Paul Curriculum for K-12.

Mark, when did you first get interested in Austrian Economics? Was it before you became a professional investor? How long did you contemplate writing your book The Dao of Capital? Do you issue any guarantees with its purchase?

Mark: Ha! Yes, the one guarantee is that you will incur much psychological trauma by practicing what I preach. Seriously, my book is about the thinking behind my way of investing, what I call “roundabout” investing (after the Austrian economics concept of roundaboutness)—so I’ve basically been contemplating it my entire adult life. But it took me about a year or so to actually write down.

2879039015_079c9d2e5e_z

Roundabout investing is all about delaying gratification and taking small setbacks now for enormous positional advantage later. I regularly fall behind other asset classes during monetary expansions in order to maintain a position that eventually soundly passes them all by when the stock market crashes. The key is that the strategy (which I run in my hedge funds) pairs with a stock portfolio to robustly protect it against large losses—a “tail hedge.” The whole necessity of this protection specifically follows the bubble-blowing distortions of the Fed’s monetary policy. Austrian economics has always been central to my awareness of this. I happened upon the Austrians in college from Henry Hazlitt’s magisterial Economics in One Lesson which then turned me on to Bastiat and Mises—and my career would have been entirely different without them.

Mises will ultimately be right yet again about the inevitable final collapse of the current asset boom brought about by credit expansion. The term “black swan” (the surprising, unforeseen event) used for bursting financial bubbles has been and will remain a misnomer—we can and, indeed, should expect such tumults to occur at some point as a consequence of massive central bank intervention and economic distortion. Given the unprecedented scale of the Fed’s market manipulation this time around, how do you think this next one will play out, and will the Fed stop at anything to continue to delay the inevitable? Might they ever be politically restrained?

Ron: I agree with you that these “black swan” events should be anticipated, though timing is a different matter. The fact that you say you’re willing to “fall behind” other asset classes, it seems to me, means you have to practice patience, accept some losses, and be prepared. Since these are not usual human characteristics, do you think this gives us some insight into why those who understand Austrian economics are not necessarily good at market investing?

When Mises got married, he told his wife Margit that she would hear him talk a lot about money but they would never have a lot. I once asked Hans Sennholz, one of the few who got a PhD under Mises, whether Mises dealt with investments. His answer was that he did not. Sennholz believed that if the theories were correct one should participate and prove it. I know in the ‘70s Sennholz highly favored real estate investments. I pressed him a little on Mises’s apparent disinterest in personal investments and his response was that Mises’s responsibility was “to write and explain economics for the ages,” and leave it for another generation, the Mark Spitznagels, to prove the theories correct. I have tried to follow Mises’s admonition that it is our responsibility to make the economic theories “palatable” to the general public through persuasion.

As to the unwinding of this mess, I’m convinced that when the current expansion ends it will be abrupt, gigantic, and worldwide. The 43-year expansion of Fed credit and debt, delivered to us by a fiat dollar standard, and held together artificially by an undeserved trust will end badly. Though I’m optimistic on the long run because of the ideological groundwork being laid, I anticipate both serious economic and political crises. No one should expect Congress to cut spending or the deficits.

Unfortunately, the welfare/warfare state is alive and well.children for ron paul They will continue to write regulations that are supposed to correct the previous regulatory mistakes and all the malinvestment generated by the Fed’s easy money policy. I can’t conceive of [Fed Chair Janet] Yellen ever persistently lightening up on the monetary pedal, despite her tapering to date. It is my belief that a dollar crisis will result from a major loss of confidence in it as a reserve currency.

What do you think the odds are for a “soft landing” for the economy? Am I overstating the seriousness of the problems we face?

Mark: I don’t think you are, Ron. I cannot see how a soft landing would be possible here. Net corporate debt is at all-time highs (so don’t let anyone tell you that corporate balance sheets are strong), interest rates are essentially pinned at zero, and the Fed’s balance sheet has exploded. Based on the Q-ratio—the most robust and predictive valuation measure there is—the stock market is more overvalued today than it was at every major top over the past century, save 2000. How could this get corrected in an orderly way?

As for your comments about Austrian economics, yes, it’s one thing to get it, quite another thing to practice it. Patience is everything. Everything. Unfortunately, human beings are wired to do the opposite of what we really need to do. In some ways I think of my investing just as you describe: a test to prove the Austrian theories correct. Of course this notion of “proof” is something that no deductive Austrian would accept. But I look at it from an entirely practical, rubber-meets-the-road vantage point.

Ron: What kind of preparations should average folks be taking? Should they own gold? Maybe some farmland?

Mark: Today’s environment is a quagmire for retail mom and pop investors out there. This is part of what is so insidious about the Fed’s trap. I believe—and history is entirely on my side—that retaining “dry powder” (capital to be invested later) and thus playing the roundabout will be the victorious strategy here. One way or another, we need to position ourselves for much greater opportunities to come. Gold has proven a sound store of value over the long term—with a good degree of trading noise thrown in just to make it difficult. Most stocks, credit, or long duration treasuries are clearly not a terrific idea when these markets are pricing in today’s very artificial, unsustainable economy. Productive, real assets that make things that people need and are reasonably priced regardless of interest rates, inflation, and the state of the economy are, to me, the best store of value these days. So farmland would be a terrific example, at least where prices haven’t already spiked. The economics, demographics, and ecological implications of agriculture will be profound.

I see you haven’t lost a step now that you are a non-Congressman, Ron. I have one final pressing question for you: Is your political career really over? Will you be personally involved in a political race in 2016? You will be sorely needed in order to direct the conversation on both sides. How can the presumed free market Republican Party nominate another candidate who favors bailouts and market manipulation? More than anything else, Americans need to be provided a clear choice between intervention and non-intervention.

Ron: Thank you for that word of confidence. But for me it looks rather clear that electoral politics is not on my agenda. There are no plans forron-paul-revolution my personal involvement in a political race in 2016. My continual campaign for liberty, nevertheless, will remain active. The exact format will be determined by the market. The financial support for the different activities I’m involved in will indicate which vehicle I should use to continue the “R3VOLUTION.” For me this campaign has been going on since 1973.

Five months after your birth, Mark, on August 15, 1971, Nixon announced that the gold standard was dead. That event motivated me to start speaking out about the serious problems I anticipated would result. Hazlitt, whose book you mentioned earlier as your first exposure to Austrian economics, predicted this would happen from the time the Bretton Woods Agreement was signed in 1945. This event convinced me that Austrian economists were right and motivated me to get involved. My first race for Congress was in 1974.

My political success was modest and surprising. The reception by the current Millennials was well beyond my expectations. I especially enjoy reaching out to the young people on college campuses and see only the positive signs of their interest in the liberty movement. That is the campaign I can’t imagine abandoning. As you have been motivated to “prove” the validity of Austrian economics with your financial success, I, in a somewhat similar way, have used politics for promoting the same ideological principle through political action.

Your challenge that Americans must choose between intervention and non-intervention is precisely the issue. When pressed for a political label to describe myself, my favorite is “non-interventionist.” This must be in all areas: social, economic, and in foreign affairs. All intervention condones the initiation of force; non-intervention requires voluntarism and persuasion. The latter is the only road to peace and prosperity.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 08/26/2014 - 20:05 | 5147215 Tinky
Tinky's picture

Actually "black swan" is not a misnomer – it's an apt description of the event that will trigger the collapse, not the collapse itself.

Tue, 08/26/2014 - 20:28 | 5147267 Oldwood
Oldwood's picture

That's racist and YOU know it! What are you trying to do, start another riot in Ferguson?

Beige swan....get it?

Tue, 08/26/2014 - 20:29 | 5147279 LetThemEatRand
LetThemEatRand's picture

I wonder if Ron Paul wants to suck Putin's cock?  I think not.

Tue, 08/26/2014 - 20:35 | 5147289 Escrava Isaura
Escrava Isaura's picture

Could you please elaborate some more?

I hate to second guess!

Tue, 08/26/2014 - 20:52 | 5147323 Thanatos
Thanatos's picture

I'm with you..

Huh?

I think it's a dig at his foriegn policy stance.

Not that it matters one way or the other at this point.

Big Mic always wins in the end... Or Else.

Tue, 08/26/2014 - 21:21 | 5147407 Escrava Isaura
Escrava Isaura's picture

Thanatos.

It depends who you ask!

“When I asked Pentagon officials about the nature of war in the twenty-first century, the answer I frequently got was: Read Martin van Creveld of Hebrew University in Jerusalem…, Not because these top brass are enamored of this historian or not because his writing justify their existence but, rather, the opposite: Van Creveld warns them that huge state military machines like Pentagon’s are dinosaurs about to go extinct, and that something far more terrible awaits us” Robert Kaplan

Wed, 08/27/2014 - 01:40 | 5148109 AldousHuxley
AldousHuxley's picture

Ron Paul is proposing utopia but he doesn't realize that America today is not America of yesterdays.

America today does not have the moral high ground to pursue free markets.

IF America pursues free markets at the global scale, SHE WILL GET KILLED.

THINK ABOUT IT.

 

In which industry sector can America compete? NONE.

Especially when Chinese are using government resources to concentrate resources into strategic areas. Free market today would be like going to a war zone with good intentions. NOBODY IS PLAYING FAIR.

The real sad news is that the battle has already taken place. We are already in the end game. China demonstrated that fascism works effectively. American elites will follow it to keep up. Europe with world war pains a long lost memory will also follow. Russia will provide arms for anyone competing.

Wed, 08/27/2014 - 07:14 | 5148349 piratepiet
piratepiet's picture

"In which industry sector can America compete? NONE."

Ever heard of the concept comparative advantage as opposed to absolute advantage ?  Look it up

Wed, 08/27/2014 - 09:20 | 5148697 Keyser
Keyser's picture

No amount of bit-twiddling is going to bring back manufacturing to the US, which is the only thing that will save the working class... In other words, the US is fucked... 

Wed, 08/27/2014 - 11:22 | 5149224 piratepiet
piratepiet's picture

From what I understand ( warning ! ) :

Of course the US is not fucked.  The country is huge, not as dependent on trade as the place I am from.

The US could supply itself with everything and still survive I guess ( risky strategy nevertheless )

But the point was no absolute advantage is necessary to benefit from trade.  Concentrate on your comparative advantages, and please, have a heart for those Americans who lose out in the process.  The working class can be transformed if need be.  Where is the American optimism that helped skyrocketing you before ?     

 

 

Tue, 08/26/2014 - 21:28 | 5147415 LetThemEatRand
LetThemEatRand's picture

It's a dig at all of the ZH Putin worshipers who claim they are Libertarian.  Although I suppose Oldwood just wants to stick oldwood in the Centaur.

Tue, 08/26/2014 - 21:28 | 5147431 Oldwood
Oldwood's picture

People admire strength, even when it scares the shit out of them.

Tue, 08/26/2014 - 21:30 | 5147436 LetThemEatRand
LetThemEatRand's picture

I don't think you'd do anything other than stir the shit around with your old wood.  Not enough gerth to cause the vacuum effect you're looking for.  You can always go suck Putin's balls to let him know how much you admire [them] him.

Tue, 08/26/2014 - 21:38 | 5147458 Harbanger
Harbanger's picture

You hated libertarians, you hated conservatives.  Now you hate people that love Putin?

Tue, 08/26/2014 - 21:50 | 5147478 LetThemEatRand
LetThemEatRand's picture

I guess I just don't like self-righteous hyporcrites, Harbanger.

During Putin's time with the KGB, they had Gulags.  Remember that word?  They held political prisoners who disagreed with Soviet policy.   This wasn't Alex Jones or some other guy talking about FEMA camps.  This was real and out in the open.   During that same time, Putin [the hero of many here who claim to love Liberty] rose through the ranks of the Soviet political structure.  And now, because he says shit you agree with, you support him.  To quote another ZH'r and The Talking Heads, same as it ever was.

Tue, 08/26/2014 - 21:52 | 5147512 Harbanger
Harbanger's picture

I walk my talk.  What you don't like is criticism.  Self righteous hypocrisy is all we've been eating since the cultural revolution in the 60's.

Tue, 08/26/2014 - 21:53 | 5147517 LetThemEatRand
LetThemEatRand's picture

Okay Putin bone smoker.

Tue, 08/26/2014 - 21:56 | 5147525 Harbanger
Harbanger's picture

Me love Putin? You are very confused Lola, you always have been.

Tue, 08/26/2014 - 22:02 | 5147539 Oldwood
Oldwood's picture

Lola got issues.

never said I admired Putin, simply suggested why some do.

Lola got big issues.

Tue, 08/26/2014 - 22:18 | 5147609 LetThemEatRand
LetThemEatRand's picture

Very sad, indeed.  I thought this place was different.  

Tue, 08/26/2014 - 22:37 | 5147662 Oldwood
Oldwood's picture

Do not worry...you are definitely different.

Just try to get past your obsession with cocks.

It ain't healthy Lola

Tue, 08/26/2014 - 22:43 | 5147663 Harbanger
Harbanger's picture

It's all the same Lola, what difference does it make?  )maybe it makes all the difference.  I don't want to get on your case, I feel for you, everything is always changing.  I welcome change, even through fire because I know where it's ultimately going.  There is No fear, I know you think I'm diluting myself, we've argued this before. PS- A part of you knows, I will defend your sorry ass when no one else will.

Wed, 08/27/2014 - 01:05 | 5148051 A Nanny Moose
A Nanny Moose's picture

What you seek is not the knowledge of which form of Government might rule it's slaves the best, but the knowledge that government is simply free evil.

Carry on spongy, jellyfish, spineless one

Tue, 08/26/2014 - 21:52 | 5147509 Escrava Isaura
Escrava Isaura's picture

Well, thanks to clear that for me, Rand.

And sorry that I goth this "Oldwood" out of his neck of the woods.

Tue, 08/26/2014 - 22:12 | 5147577 Oldwood
Oldwood's picture

Is it possible Lola has cock issues? It sure seems to be a significant focus.

Fight club, not fuck club or suck club. There are other sites for that, that may be more "fulfilling"

But don't let me tell you kids how to spend your spare time together.

Tue, 08/26/2014 - 20:07 | 5147221 blu
blu's picture

Soooooo ... how do I trade this one?

Tue, 08/26/2014 - 20:18 | 5147248 Soul Glow
Soul Glow's picture

Markets crash in a day.  One morning the sheeple wake up and their precious stocks, which they have in pension funds and other forms of IOUs, have crashed something horribly.  20% or 30%.  This has happened, and will happen again.

Tue, 08/26/2014 - 20:23 | 5147257 Oldwood
Oldwood's picture

All that stuff has been fixed. we now have government whos primary job (besides scaring us into submission) is to create and maintain "consumer confidence". We know it works..Look around. Its like those dreams I used to have where I could fly as long as I could stay asleep.

Can you pass a doobie?

Tue, 08/26/2014 - 20:24 | 5147259 Escrava Isaura
Escrava Isaura's picture

Soul Glow,

30%? That is it?

Tue, 08/26/2014 - 22:01 | 5147536 medium giraffe
medium giraffe's picture

I think the CME mess of Sunday night Asian open just goes to prove that the machines can be switched off whenever and there's not a damn thing you can do about it.  Except withdraw all your cash from your bank - oh, wait, the ATMs aren't working this weekend?  I'll wait until Monday then - what? What do you mean 20% depositor haircut?!

Because fuck you, that's why.

 

 

Wed, 08/27/2014 - 08:40 | 5148538 StandardDeviant
StandardDeviant's picture

You're right -- but automatic -1 for the idiotic "sheeple".  It makes you sound like a whack job; it invariably detracts from your argument.

Tue, 08/26/2014 - 20:30 | 5147274 Escrava Isaura
Escrava Isaura's picture

Blu,

Mark to Ron: "Wall Street can’t help but respond to monetary intervention, like puppets to the Federal Reserve puppet master."

It's the other way around!

 

Tue, 08/26/2014 - 20:15 | 5147241 Soul Glow
Soul Glow's picture

....or else they choose their death with the ruling of the corporate elite.

Tue, 08/26/2014 - 20:24 | 5147258 grunk
grunk's picture

LOOK, A PONY!!!

Tue, 08/26/2014 - 20:25 | 5147263 Oldwood
Oldwood's picture

A PONY? Where?

Is there a squirrel too?

Tue, 08/26/2014 - 20:29 | 5147278 p00k1e
p00k1e's picture

What kind of knucklehead is this guy?

C’mon, Insider Ron, should make something happened already. 

Frère Jacques, frère Jacques, Bitchez!

Paperback Writer - The Beatles

https://www.youtube.com/watch?v=taADLPtyDb0

Tue, 08/26/2014 - 20:44 | 5147307 BeetleBailey
BeetleBailey's picture

Lots of Michael Corelone style wiping out needs to happen before we get anything close to "non-intervention" style markets....

Love Ron Paul....but the guy is nuttier than a Claxton Georgia fruitcake if he thinks words and pragmatism can over-turn decades of fraud, abuse, corruption and outright theft.

Oligarchs, Wankin Bankers by the score, D.C. needs a complete douching/enema, and K Street needs to be napalmed....

JeEEEEEEEEEEEEEsus tits the list is long as to whom and what need to vanish from the planet....and they all fucking DESERVE IT!

 

Tue, 08/26/2014 - 21:13 | 5147378 TrulyStupid
TrulyStupid's picture

Try to listen more carefully.. he says that the market will ultimately clean out the fraud, abuse and corruption...it must end badly and suddenly. A sudden crash followed by a multi year bear market and reckoning... no quick fixes but the collapse of the credit ponzi. Try not to be one of those swimming naked when the tide goes out.

Tue, 08/26/2014 - 21:29 | 5147438 Oldwood
Oldwood's picture

When the tide goes out we will be left with lots of mud wrestlers

Tue, 08/26/2014 - 21:14 | 5147386 Cabreado
Cabreado's picture

"but the guy is nuttier than a Claxton Georgia fruitcake if he thinks words and pragmatism can over-turn..."

I suspect Ron Paul always knew that he would need some help.
He tried anyway.
And still keeps plugging...

"Nutty" is a misdiagnosis, one that helped to shut him down, and one that should haunt lots of people for a long time to come.

Tue, 08/26/2014 - 20:51 | 5147324 Atomizer
Atomizer's picture

We can always just hijack a Google driverless car and raid the three branches of corrupt government. It will be tough to shove all these bastards into a clown car.

After they're captured, we can override the computer system. Doors and bulletproof windows are locked out and we then lastly activated the mobile phone system jammer. GPS mapping is set for you driving off the nearest dock for a swim into the ocean.

Sounds far fetched? Not really. 

Tue, 08/26/2014 - 21:44 | 5147483 BlackChicken
BlackChicken's picture

" It will be tough to shove all these bastards into a clown car."

I disagree, not if a food processor was used and the excess fluids were drained off first.

Tue, 08/26/2014 - 20:53 | 5147333 Econolingus
Econolingus's picture

This is a "buy" signal for SF Bay Area real estate. No matter Case Shiller says.

Tue, 08/26/2014 - 21:05 | 5147361 Atomizer
Atomizer's picture

Sure, just make sure your insurance pays back 20% over the market value of home. Watch AIG, and Alflac go broke in a 10 second EBS advanced notice warning signal.

Tue, 08/26/2014 - 21:27 | 5147426 p00k1e
p00k1e's picture

Severe flooding took place in the Detroit MSA about two weeks ago.

The insurance companies started declining claims right off the bat.

FEMA is rolling around town for two weeks surveying the damage as we type. 

Tue, 08/26/2014 - 20:52 | 5147335 Wahooo
Wahooo's picture

That 10 times as much as any politician should have to say about what we do.

Tue, 08/26/2014 - 21:18 | 5147401 g speed
g speed's picture

thanks for the excellent post Tyler---

Tue, 08/26/2014 - 21:19 | 5147404 FreedomGuy
FreedomGuy's picture

There were two poles in the Congress, Bernie Sanders the socialist and Ron Paul the libertarian. I actually respect both and disagree with one. When you have men of principle and you vote them in you can predict with a high degree of reliability how they will vote on numerous issues, even before the issues arise. This is the basis for confidence. The fact that we know a huge percentage of Congress will vote their own political interest is actually what makes things unpredictable and leaves the opening for lobbyists, cronyism and whatever evil influences you like to name.

Tue, 08/26/2014 - 22:12 | 5147583 Raymond K Hessel
Raymond K Hessel's picture

Which is why the Constitution was set up the way it was: to keep them doing much harm.  

When it was changed to chose Senators by popular election and give it power to tax income, then it was all over.  They could do whatever they wanted...and they did.

Wed, 08/27/2014 - 00:01 | 5147935 Greenskeeper_Carl
Greenskeeper_Carl's picture

As a big time ron Paul fan, I disagree with sanders on almost everything, but I was impressed and surprised that he actually spoke about about the results of the half assed fed audit and posted the results on his website. I doubt I would like his proposal to replace our central bank, as he would doubtless feel the need to have some formof central planning authority over monetary matters. However, he is at least honest about his views, I will give him that.

Tue, 08/26/2014 - 21:27 | 5147411 Chupacabra-322
Chupacabra-322's picture

Nothing, absolutely nothing will be repaired until the Criminal Fraud UNITED STATES, CORP. INC. (Posing as a functional Government of The People, by The People & For The People) is dissolved followed by mass arrests, indictments, trials, convictions & executions of the Criminals at large for Crimes Against Humanity / Crimes Against The American People.

Nothing.

Tue, 08/26/2014 - 21:34 | 5147448 Oldwood
Oldwood's picture

Bullshit!

We will elect another crop of elite social/market masterminds that will save us from the fires of hell...again.

Or is it from the frying pan into the fire?

Whatever. the point is our elected officials will save us

Don't hassle me...I'm trying to adopt this fucking delusion thing as it seems to be working so well for so many.

its just not working for me, damnit

Tue, 08/26/2014 - 22:07 | 5147546 Escrava Isaura
Escrava Isaura's picture

Oldwood,

 Go easy, Cowboy!

I called my friend in Boston that is a psychiatrist (doctor). I asked him how can people look at the same facts and have total different take on it. He told me it is because of how the brain processes these data/facts. He then asked me why I was asking him all these questions.

I told him that I decided to blog for a while and that I met these very smart people on line that keep saying the same thing over and over. That wants to change the world overnight and have many solutions. I told him that I found it very disturbing, some of their solutions.

He started laughing!

He told me: I see very sick people. People that can’t cross bridges alone without having panic attacks. High anxiety to the point of uncontrollable shaking. With all levels of schizophrenia, some even believes that God will come to save them.

Your new friends at blogging have minor defect, compared to what I have to deal with.

 

Tue, 08/26/2014 - 22:19 | 5147612 Raymond K Hessel
Raymond K Hessel's picture

I think you're a front for the wangluo shuijun.  

Your grammar, the voice you're writing with, it's just off.  

You're not American/Canadian and you're not writing in an Britlish voice, like most Europeans.

You are either wangluo shuijun or maybe you work for Igor at the Internet Research Agency.

 

Tue, 08/26/2014 - 22:30 | 5147638 Escrava Isaura
Escrava Isaura's picture

You're getting closer.

Figuratively speaking.

Tue, 08/26/2014 - 22:32 | 5147651 Oldwood
Oldwood's picture

Most people pretty much think the same. They are focused on their most immediate benefits and work backward from that. We tend to develop perspectives over time that support our rationalizations. If you have done your best and succeeded, you see the rewards of effort and can't understand why others do not. If you did your best and failed, you see everything as rigged against you and tend to blame everyone who has money or success as part of the problem. The politicians get into the middle of this conflict and seek their own personal advantage from it. This escalates to what we have today. Division, distrust and eventually violence.

I am stuck with reality, watching everyone fighting over stupid shit rather than actually seeking to remedy their own problems. Our entire economic mess is an outgrowth of our unwillingness to deal with reality and choose the easiest path of evasion. Debt and defeat and dependency and someone, anyone to blame. Bankers, politicians war mongers can do nothing without our participation. We participate and then complain about the results. We buy cheap imports and complain about the loss of American jobs. We complain about illegals and then hire them to mow our yard and build our homes. And then we have the left right fight that so many complain about, pointing out the futility of it all while continuing to play our role in the "system".

There are lots of problems and stupidity is a big one, and while I enjoy the hedge blogs for opinion contrasts, Idiots like Letthemeatrand, are the worst/best examples because lacking any intelligence are left to cast dispersions on cocks.... I saw better arguments on the third grade school bus a 50 years ago.

Tue, 08/26/2014 - 21:43 | 5147425 JuliaS
JuliaS's picture

Even Ron must understand that it's too late to undo the damage. He's just trying to be optimistic and sound diplomatic. Seeds of imperialistic ambition take 2-3 decades to bear fruit. The simple formula is - look at how long it takes for a kid who witnessed his parents be torn to shreds by one of our missiles, to grow up nurturing revenge plans. See how long it takes for person's hatred to completely cloud his mind while he becomes not only willing but able to carry out a sophisticated act.

Look at the biography of Ayman al-Zawahiri or even Osama Bin Laden himself and plot your blowback timeline.

What we're doing in Afghanistan, Iraq, Syria, Libya, Egypt, Ukraine, Pakistan, Brazil even - it will not simply go away, even if we turn on a dime. It will not even be us, witnessing attacks and thinking "why are they doing this to us". It'll be our kids, scratching their heads, raised on the latest and gratest brands of cell phones and gaming consoles, completely detached from reality, suddenly faced with grown up kids of parents whom we murdered or abused through incation.

One day our kids will be faced with their brand of "freedom haters" and old men running the world, who still remember what it was actually like, who know and remember all the real reasons, will sell them another beautiful lie, taking away the last batch of rights and freedoms the Forefathers envisioned. The blowback will be presented as an unexpected one-off, in order to justify another great war, another great invasion.

And when the economy crumbles again under the weight of military spending, they'll pull a dusty old Atlantic magazine from 2012. Tap the photo of a bald bearded Santa no one remembers and tell fairy tales of how printing money rescued everyone from depression. And they'll do it all over again.

Tue, 08/26/2014 - 21:27 | 5147434 djsmps
djsmps's picture

Any article about someone that says I much do "this" for peace and prosperity" I am writing off as propaganda. I like Ron Paul, but I skipped this piece of propaganda.

Tue, 08/26/2014 - 21:38 | 5147452 Oldwood
Oldwood's picture

We live in a world dominated by propaganda, lies loosely associated with a smattering of facts. Many of us have been screaming our truths from the roof tops only to be carried away by the white coats. Maybe the only way to fight propaganda is with propaganda. Don't know but wondering

Tue, 08/26/2014 - 22:11 | 5147580 BOPOH
BOPOH's picture

Americans have no idea how powerful electoral voting can be if voting against all candidates would be ever allowed in US of imbeciles.

Wed, 08/27/2014 - 03:39 | 5148208 fukidontknow
fukidontknow's picture

We have that here and have ended up with ex NY fed and Merrill Lynch man John Key.

Tue, 08/26/2014 - 22:17 | 5147603 disabledvet
disabledvet's picture

I've come to the conclusion that I am now incapable of reading more than three sentences.

And even that is getting hard.

Three angry and critical comments and I'm like "wow, thank God. The entire article now makes sense to me."

Tue, 08/26/2014 - 23:19 | 5147810 Otto Zitte
Tue, 08/26/2014 - 23:20 | 5147812 AdvancingTime
AdvancingTime's picture

Sometimes the old guys who have seen it all have the most perspective and the guts to speak up because they have less to lose. What I like about numbers is that when they are not jockeyed, jerked around, and falsified they tend to tell the truth. Looking down the road the numbers do not work.

Ron Paul is not alone, Allen H Meltzer is viewed by many economist as America’s foremost expert in monetary policy, Meltzer is the author of the three-volume “A History of the Federal Reserve.” For over 25 years he was the chair of the Shadow Open Market Committee, a group that meets regularly to discuss the policy of the Federal Reserve. “We’re in the biggest mess we’ve been in since the 1930s,” he recently stated. “We’ve never had a more problematic future.” More on his thoughts in the article below.

http://brucewilds.blogspot.com/2013/07/it-will-all-end-badly.html

Tue, 08/26/2014 - 23:43 | 5147881 nc551
nc551's picture

Open comment to Ron.  Since you helped cure my apathy I can't help but find most all your publishings to be a broken record of common sense, logical obviousness, and depressing fact.  Keep it up though.

Wed, 08/27/2014 - 00:00 | 5147929 Marley
Marley's picture

Yeah, look where that's gotten us.  Anarchal-Capitalist are idiots.

Wed, 08/27/2014 - 09:27 | 5148729 shovelhead
shovelhead's picture

Still waiting for someone to push you and your lazyboy lounger over the finish line?

Keep waiting and cursing.

Wed, 08/27/2014 - 08:37 | 5148529 falak pema
falak pema's picture

43 years of "our money, your problem" and petrodollar on steroids hegemony. 

Wed, 08/27/2014 - 09:04 | 5148631 luckystars
luckystars's picture

The US was founded as a Constitutional Republic…not a Democracy.  In fact the founding fathers warned us of a Democracy.  Thomas Jefferson said that “A democracy is nothing more than mob rule, where fifty-one percent of the people may take away the rights of the other forty-nine.”  With so many of this nation uninformed of what’s going on, it’s no wonder that the elite want a Democracy.  The US was never set up to attain international supremacy, and was certainly not set up to achieve “imperial mobilization.”  The US was set up to stay out of the affairs of other nations and never wanted to use soldiers as cannon fodder to invade the planet.

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