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Ron Paul in Bloomberg: Default Now, or Suffer a More Expensive Crisis Later - 7/22

Great read. Ron Paul article on debt ceiling and default in Bloomberg.

By Ron Paul | Jul 22, 2011

Debate over the debt ceiling has reached a fever pitch in recent weeks, with each side trying to outdo the other in a game of political chicken. If you believe some of the things that are being written, the world will come to an end if the U.S. defaults on even the tiniest portion of its debt.

In strict terms, the default being discussed will occur if the U.S. fails to meet its debt obligations, through failure to pay either interest or principal due a bondholder. Proponents of raising the debt ceiling claim that a default on Aug. 2 is unprecedented and will result in calamity (never mind that this is simply an arbitrary date, easily changed, marking a congressional recess). My expectations of such a scenario are more sanguine.

The U.S. government defaulted at least three times on its obligations during the 20th century.

Continue reading at: Bloomberg

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Congressional Wheeling & Dealing Proposes A "Super Congress"

Ah, now the people know the result of behind-the-scenes wheeling and dealing by congressional traitors (leadership), a proposal to concentrate increasing amounts of power into fewer hands in order to resolve the crisis of excessive deficit spending.

Problem, Reaction, Solution leading to further impoverishment of the American people.

They don't care about us

They'll throw us under the bus and raise the ceiling AGAIN.


Compromised To Oblivion

After this morning's little chitchat between Boehner and Obama at the WH, Boehner will now float another "plan" which will inevitably lead to raising the debt ceiling. The Paul campaign's recent advertisement, Conviction, is a self-fulfilling prophecy because the probability that cuts will be made BEFORE raising the debt ceiling is essentially zero. Just like Reagan, the debt ceiling will likely be raised, but the promises, i.e. the cuts, will never occur.

No, the push to raising the debt ceiling isn't dead as the clandestine wheeling and dealing continues unabated. In the process, the American people will again pay the price in higher inflation and lower standard of living. The American people can only hope that this congressional session remains deadlocked and unable to compromise the wealth of the American people yet again.


It should now be apparent to anyone reading that article, that Ron Paul is a man of true character. Lesser men will call for temporary measures, all the while trying to convince us that they are the right ones to fix this problem. Vote for me, and I will fix it, instead of let's fix it now, in spite of the contest ahead. John McCain tried to be that greater man, when he "suspended" his campaign, to fly back to Washington in the wake of economic meltdown. But the corruption had already infected his soul. And so he urged us to support the bailouts of his masters at the expense of his country. Right now, with that article at the top of my thoughts, I really believe Ron Paul can win.

RP is absolutely correct imo

The punishment must be delivered this time around otherwise the repercussions will be double next time around.

This knavery and graft cannot be allowed to continue. The rule of law over the rule of men !!

This is like an 'economic Dunkirk' imo. The debt limit must be curtailed and spending put in retreat to save the army (country).



This is also posted on Zerohedge.com

They know what's up with reality like Congressman Paul.


History does not long entrust the care of freedom to the weak or the timid.
Dwight D. Eisenhower

Here was my reply to

Here was my reply to MADOSONPROGRESSIVE who decided to put Mr Paul down on not knowing anything about economics :) ... She is obviously a Kool Aid sipping Fed Reserve lover.

here was my reply, which is awaiting moderation.

Madison, you are totally mistaken.. Before the Federal Reserve there were regional depressions on a very regular basis. It was this reason that the Federal Reserve was pushed for and ultimately created in 1913 after decades of pushing. On average the regional depressions lasted 12 to 18 months and were catastrophic for those that were caught up in them. From 1913 till the 1st American Great Depression, we saw numerous booms and busts of the kind referenced by Doctor Paul. The land bubble in the early 20's and the war bubble during the Great War. And as these bubbles moved to liquidation(or bust) The Federal Reserve stepped in to prop up the malinvestment to keep it from turning into a regional depression. By pouring liquidity into those areas to prevent a collapse, they re-inflated the bubbles or created entirely new ones, each getting bigger than the last. It culminated in the collapse of the entire banking system in the US that could no longer be papered over by Federal Reserve Liquidity. THE FED IS GREAT AT COMBATING LIQUIDITY PROBLEMS.. HOWEVER THEY HAVE NOTHING TO ADDRESS SYSTEMIC INVOLVENCY ISSUES!! The US was insolvent at the time of the Great Depression. Debt levels had reached insane levels... Then like now, we are facing not a liquidity problem, but rather a systemic solvency problem that has been created and exacorbated by the Federal Reserve preventing market discipline. The FED WILL NOT ALLOW THE CORRECTION TO COME. And every single year they prevent this needed correction, it will add another 12 to 18 months of misery on this country. The correction is coming, the question is how long will we prevent it from happening, and how many more years of misery are you willing to endure in the futile hope of avoiding economic pain..


Duplicate post


Article on Bloomberg needs comments - if the mods over there will allow (civil) free speech.