Ron Paul: "The Fed's Massive Bubble Is Creating A World Of Economic Pain"

Tyler Durden's picture

There shouldn't be a Federal Reserve, but it exists, and it's constantly creating a world of economic pain.?

Each Federal Reserve bubble must turn into a bust. It's unavoidable.

Ron Paul discusses the latest bubble below...

Via RonPaulLibertyReport.com

According to the central planners, the "solution" for the bust is more creation of new money and credit.

That's the only way they can keep their "system" alive.

When the Fed's stock market bubble burst in 2000, it responded by creating new money and credit. Lo and behold, this led directly to the next bubble that was even bigger.

 

When the housing bubble burst in 2008, Wall Street was bailed out by taxpayers, and TRILLIONS of new dollars were created as the "solution."

 

And now, almost 10 years later, we have an even bigger bubble than 2008.

 

The central planners at The Fed have done it again.

How much longer will we allow this "system" to last? How much economic pain will it take to return to sound money again?

 

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junction's picture

Right on, Ron Paul.  Now Facebook will surely freeze your account.  And just in, Harvey Weinstein got tossed from AMPAS.  Hasta la vista, Harvey!

Escrava Isaura's picture

Ron Paul, Kyle Bass, Hillary, James Rickards.

Does anyone with an iota of common sense and/or with 5 days in the internet really care what these have to say?

 

overbet's picture

Ron Paul will go down in history as one of the few sensible people fo our time. 

Paul Kersey's picture

Here's an interesting way to turn oneself into a multimillionaire:

"Larry Flynt, the founder and publisher of Hustler magazine is offering a $10 million reward for information leading to the impeachment of President Donald Trump."

MoreFreedom's picture

Seems more likely you'll go bankrupt looking for something that doesn't exist.

A. Boaty's picture

When asked why he doesn't leak dirt on Fearless Leader, Julian Assange said every negative story has already appeared in print.

BallAndChained's picture

No problem. If anything goes wrong, create more Bitcon cryptos and everybody can be RICH!!

malek's picture

You forgot to add your name to the list.

Mustafa Kemal's picture

"Does anyone with an iota of common sense and/or with 5 days in the internet really care what these have to say?"

Yes, I do, although my wife constantly suggests that I dont have any common sense.

IMO:Ending the Fed is one of the soundest ideas that I can imagine, especially if we want to avoid complete slavery for our children.

Right on Ron Paul

Escrava Isaura's picture

Ron Paul is wrong. Fed is not the problem.

America lifestyle (two car garage, two lanes highway, 70% of the economy is consuming the best the world offers/produce) is the crux of the problem.

And the way it was accomplished was by creating money out of nothing.

This post by Batman11 is very perceptive. Check it out.

Central Banks can clear bad assets from the banks with money they create out of nothing.

The US banks at the epicenter of the crisis recovered the fastest.

Central Banks were created to backstop the financial system and have the power to reflate the national banking system after a crisis with money they create out of nothing.

After WW2, Japanese banks were in a terrible state and full of non performing war loans, they were technically insolvent. The BoJ bought their bad assets at full value and restored them, so they could get back to business. All done at no cost, the money came out of nothing and the bad assets went to die quietly on the BoJ’s balance sheet.

This is something Central Banks can do and are designed to do.

 

The people that unlocked the secrets and Japan 1989 was a great time to start for two of them that lived there at the time.

Steve Keen - Minsky moments and affects of debt on the economy

Richard Koo - After the Minsky Moment, studied 1929, Japan 1989 and 2008.

Richard Werner - Money and debt, bank credit and how it must be allocated for economic success, studying Japan around 1989

Michael Hudson - The history of economics, the difference between earned and unearned income

 

Escrava Isaura's picture

We have crisis because life is created of chaos. But here are the three that matter under this forum:

Financial Crisis: It happens because our money system is created by the private sector, and this money comes with compound interest.

Population Growth: Our per-capita consumption of energy and resources is vastly greater than any other species, past and present. Earth’s pattern does not accommodate for that.

Thermodynamics: The end point of all evolutionary process is extinction of life. The best a specie can do is to adapt to their environment and never change it. So, once one specie creates, say a bicycle or a car, instead of walking, that specie is due to fail much faster than it would if it had not changed.   

 

 

Lordflin's picture

You have obviously taken the time to educate yourself. You have given a great deal of thought to your opinions. It is sad really that you have drawn so many utterly idiotic conclusions.

libertyanyday's picture

Ron Paul is wrong. Fed is not the problem.

Incorrect.  The FED is the problem, they can print any amount of fiat they want, the real problem is that they never MOP up the extra fiat when good times return.  The founders didnt want anything to do with a CB, they knew what they would do.

yogibear's picture

Fed says there's no inflation....

Ten years ago I used to be able to buy 2, 14 " pan pizza's for under $25.00.

Those same 14" pizzas are over $50.00 today.

 

Dsyno's picture

"Those same 14" pizzas are over $50.00 today."

Say wha? I'm eating a portion of 2 large pizzas right now, that cost $18 total. Where the hell are you buying your pizzas?

anarchitect's picture

"And the way it was accomplished was by creating money out of nothing."

Who creates money out of nothing?  The Fed!  So if the Fed didn't exist, neither would all of this debt and, assuming you're a Galbraith fan, neither would all of this "conspicuous consumption" that you find so offensive.

You were SO CLOSE to putting 2 and 2 together!  But you couldn't even see the nose in front of your face.

 

Escrava Isaura's picture

anarchitect: Who creates money out of nothing

That’s easy. The private sector.

 

D503's picture

People always start off talking about real values....then start talking about money. Real economies are measured in joules, calories, and kwh, not fucking money. Money is a currency, energy is a determined value.When "minimum wage" is five times the value of moving cargo, there is no economy. 

Escrava Isaura's picture

Don’t mix science with men’s creation.

Economy is men’s creation, like government, like religion, like culture, and so on.

These are not science.

These are folk science, meaning, all lies that cannot be taken seriously.  

 

dicksburnt's picture

well well Escrotum,  3 of the 4 have some pretty good credentials.  The other is just a neo-con cunt.   Do you know what 'sound money' is?  No, slick willie isn't sound money either.

Escrava Isaura's picture

Sound money?

Listen to you. You’re intoxicated by the regurgitating nonsense propaganda.

Money is a means ‘tool’ to an end —to acquire— and not wealth. Money is more humane way to extract from others compare say to slaves or robbing —violence.

Labor, energy, and resources are wealth. Money must be created to acquire those three.

If you don’t create money, produce lay on the ground rotting because there’s no money to pay the labor to harvest them. If you don’t create money items on the supermarket shelves won’t be sold because the customers don’t have money to buy them.

Your theory of sounding money is bogus because it doesn’t reflect human reality. To the contrarian.

 

jin187's picture

Money is what enables us to have an economy. Without it, it becomes unfeasible for people to exchange large quantities of goods and services. Could you imagine working at Intel, and being paid in computer chips? Going to restaurants and having to bring extra clothing, tools, or weapons to barter for your food? How would you pay for services? Once a month, load up a box truck with food, cattle, etc, and go to your ISP, and haggle over a price?

Vlad the Inhaler's picture

The only way to sustain a debt based system is to keep pumping more debt into it.  And anyone who has an iota of common sense knows that every system has its limits.  Any questions?

max2205's picture

Ron nail gun Paul 

GreatUncle's picture

No way to return to sound money except through debt cancellation and that will never happen because then it means money is worthless if debt can be cancelled when somebody feels like it.

overbet's picture

Our "money" is debt by it's definition its an iou. There is no nice way out of this mess. 

libertyanyday's picture

guns gold and food..............these will have definite value.

Gobble D. Goop's picture

Throw in a good set of hand tools.  Tools that need no gas or electricity, just old fashioned muscle grease and brains.  Then you're rockin for sure.

BBB comrade citizen

beans, bullets & bullion

holgerdanske's picture

I think some us knows where this ends.

But none knows when

Chupacabra-322's picture

Engineered Collapse.

It’s occured in 2008.

The restructuring has been & is being conducted behind the curtain.

Paul Kersey's picture

"The Fed's Massive Bubble Is Creating A World Of Economic Pain"

But for the Goldmanites, a world of pleasure and generational wealth.

FreeShitter's picture

Of course Ronnie, why dont you just come out and say why though....tell the sheep about usury and the evil reasons behind fractional reserve banking. 

Chupacabra-322's picture

Usury is Criminal.

Productivity stolen.

It’s perpetrators should be arrested, indicted, enprisoned. & Executed.

GunnerySgtHartman's picture

I don't want the Fed nullified.

I want it destroyed.

Mustafa Kemal's picture

" don't want the Fed nullified.

I want it destroyed.

" Here here!

 

frank further's picture

Did you mean to say "hear, hear"?

Innominate's picture

Obliterated down to the bedrock even.

Hkan's picture

Middleclass lives matters......

illuminatus's picture

Sure, cannon fodder and donkeys.

ReturnOfDaMac's picture

Get it through your thick skulls: we are NEVER going back to sound money again, NEVER!!  By gawd, as long as that printer has ink, they will print, you will accept their paper for your hard work, services, and goods, and you WILL like it.

itstippy's picture

"Get it through your thick skulls: we are NEVER going back to sound money again, NEVER!!"

This is a fact. 

The entire country runs on credit and has for a hundred years.  The vast majority of American citizens are in debt.  At least 50% of the nation's corporations are technically insolvent, including financial institutions.  The Municipalities, States, and the Federal Government are all hopelessly mired in debt and unfunded liabilities.  

There is no possible way to return to "sound money" anywhere in the developed world.  It can't be done.  Hedge accordingly.

libertyanyday's picture

There is no possible way to return to "sound money"

That statement guarantees we will return to sound money.  One big whale bailing ship, will cause an instant flight to physical gold and silver. 

sleigher's picture

There is no way systematically to go back to sound money.  That doesn't mean we can't or aren't going back to it.  It would just hurt really bad.  Probably cause a mass die off.  Regardless, we can't really continue the way we are going now.  Something has to give.  

Endgame Napoleon's picture

What if cryptocurrencies become the main currency?

ReturnOfDaMac's picture

They cannot, not in their present form.  Look, I'm a fan of crypto, wish it were the silver bullet but folks ain't gonna wait 2 days for a transaction to process to buy toilet paper and soap.  It's just not practical.

libertyanyday's picture

without having a physical prescense , he who controls banking  , controls you...........CB's will declare all crypto counterfeit and not acceptable for debts public and private.

zzzz88's picture

ok, guys,please take a look at this---

semiconductor stocks increased most, about 6 times since 2009 low.  the ETF ticker is SOX, you can check the component stocks yourself. 

many sox stocks price doubled in less than 2 years, some even increased 5 more times.

and then compare to 2000. 

they are so similar, 

timing is everything. please use your own judgement how long this will last