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Ron Paul's Texas Straight Talk 12/19/11: European Bailout Will Make Crisis Far Worse

Ron Paul's Texas Straight Talk 12/19/11: European Bailout Will Make Crisis Far Worse

http://youtu.be/jK2B61DAaB8



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The economic establishment in this country has come to the conclusion that it is not a matter of "if" the United States must intervene in the bailout of the euro, but simply a question of "when" and "how". Newspaper articles and editorials are full of assertions that the breakup of the euro would result in a worldwide depression, and that economic assistance to Europe is the only way to stave off this calamity. These assertions are yet again more scare-mongering, just as we witnessed during the depths of the 2008 financial crisis. After just a decade of the euro, people have forgotten that Europe functioned for centuries without a common currency.

The real cause of economic depression is loose monetary policy: the creation of money and credit out of thin air and the monetization of government debt by a central bank. This inflationary monetary policy is the cause of every boom and bust, yet it is precisely what political and economic elites both in Europe and the United States are prescribing as a resolution for the present crisis. The drastic next step being discussed is a multi-trillion dollar bailout of Europe by the European Central Bank, aided by the IMF and the Federal Reserve.

The euro was built on an unstable foundation. Its creators attempted to establish a dollar-like currency for Europe, while forgetting that it took nearly two centuries for the dollar to devolve from a defined unit of silver to a completely unbacked fiat currency note. The euro had no such history and from the outset was a purely fiat system, thus it is not surprising to followers of Austrian economics that it barely survived a decade and is now completely collapsing. Europe's economic depression is the result of the euro's very structure, a fiat money system that allowed member governments to spend themselves into oblivion and expect that someone else would pick up the tab.

A bailout of European banks by the European Central Bank and the Federal Reserve will exacerbate the crisis rather than alleviate it. What is needed is for bad debts to be liquidated. Banks that invested in sovereign debt need to take their losses rather than socializing those losses and prolonging the process of adjusting their balance sheets to reflect reality. If this was done, the correction would be painful, but quick, like tearing off a large band-aid, but this is necessary to get back on solid economic footing. Until the correction takes place there can be no recovery. Bailing out profligate European governments will only ensure that no correction will take place.

A multi-trillion dollar European aid package cannot be undertaken by Europe alone, and will require IMF and Federal Reserve involvement. The Federal Reserve already has pumped trillions of dollars into the US economy with nothing to show for it. Just considering Fed involvement in Europe is ludicrous. The US economy is in horrible shape precisely because of too much government debt and too much money creation and the European economy is destined to flounder for the same reasons. We have an unsustainable amount of debt here at home; it is hardly fair to US taxpayers to take on Europe's debt as well. That will only ensure an accelerated erosion of the dollar and a lower standard of living for all Americans.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

HIT PEACE FROM ABC

Everyone needs to be alert to an ABC story from Jason Volack... he is following Dr. Paul's campaign I think and he was apparently at the NH townhall that was streaming on CSPAN.org last night. He posted a story on ABC.com titled: "Ron Paul Attacked for Views on Health Care" In the article, he writes that the woman who questioned him called him "cold-hearted" The woman asked a simple question, and Dr. Paul gave here a good answer and explained the reason health care was so bad and so expensive. He went on to say that conservatives and libertarians don't always do a good job of explaining this and sometimes people view them as "cold-hearted".

The first version of this story that he released was titled "Woman calls Ron Paul "Cold-Hearted" for Views on Health Care"... but this was taken down

Please be aware of this and give ABC hell! Also alert others!

http://abcnews.go.com/blogs/politics/2011/12/ron-paul-attack...

Silence Dogood IX

Now I understnd

why the entire world is behind Ron Paul.
World reboot! now!

One day, I'm gonna' change my name to Dale Lee Paul

I know the message is strong and very much alive...but

Have you guy's been out trolling the social media sites? It is a real battlefield out there; I know this is to be expected and only to get worse. Yet, we need to get our troops organized. There are some people that just really need to be more able to handle this attack. I don't know if there is any solution to this or if we just rely on the message. Supporters should understand that we need to be kind, respectful, and open to opinion from the attack. Somebody needs to address this, or things are gonna get messy.

The attacks are a sign that we are succeeding.

We have both the higher moral ground and logical practical arguments on our side - which is no surprise, the two go together. It is easy to take out - always with compassion but unhesitating assertiveness - the silly, illogical, lazy counter arguments to freedom which are nothing more than predigested thought inserts from those still hypnotized by the media, and perhaps their own low self-esteem. When the sleepers finally get us, they feel alive again. We give them back a sense of hope. Now let us go back out to that battlefield you refer to and help one another as we make the case for Freedom.

Bill Still for vice president!

He's running for president through the Libertarian Party. His economics understanding and solutions are unmatched...seriously. Just listen to him.

This would be the best partnership ever! Ending the Fed would do absolutely nothing...IF the power to create money out of thin air (fractional reserve lending) is not abolished, because the Fed is just a smoke screen for the large banks themselves who would continue the insanity.

If Libertarians really love Liberty, this year it is time to...

cross over and vote Ron Paul along with Democrats and Independents. Competing currencies will end the Fed. True competition will sort out the Truth of Fiat versus Gold and Silver. And, by the way, what is Bill Still's approach to the wars in Iraq, Afghanistan, bombing of Pakistan...?

If you want the equivalent of Weimar Germany...

...support Bill Still.

This will be the result of what he advocates. It will be government printing money into existence and spending it into the economy, with no debt associated with it. This results in massive inflation.

When you hear someone talking about how our nation needs to have a money system like the state of North Dakota, this is an indication they support the Bill Still/Ellen Brown "Web of Debt" system.

Debt money is bad, but the debt serves as a curb. When the debt gets high people start screaming. With no debt, government can print with abandon. There is no curb.

In Bill Still's world, we will still have fiat money, legal tender laws, and a government monopoly of the money supply. Bills Still's money system is not libertarian. It is a monopoly money system.

Dr Paul advocates honest money and competition in currency.

Gary North debunked this system last fall. He debunked it so thoroughly Ellen Brown jumped ship to the Bernake bandwagon. You can follow the debunking here. http://www.garynorth.com/public/department141.cfm

The MMTers (Modern Monetary Theory, there is nothing modern about it) and the Rockefeller Foundation also support printing money with no debt.

There are also those who claim to be adherents of Austrian economics, who speak at Tea Party groups, who hold seminars for high school students, who teach concepts that are the basis of printing money with no debt.

Beware.

There are many, many wolves in incredibly realistic sheep's clothing.

If we embrace these ideas and allow our nation to convert to this money system, our dollars will be worth so little we will all be using dollars as kindling, just like the citizens of Weimar Germany.

“None are so hopelessly enslaved as those who falsely believe they are free.” – Goethe

Money out of thin air...

My understanding of Mr Still is that he supports money out of thin air. Its just that he believes it should be created out of thin air by the treasury in public with full disclosure and not by a private corporation in secret. He wants a fiat national currency not a commodity backed one.

I would rather have Ron Paul's policy of competing currencies. When the fed dollar has to compete against gold and silver the fed will end itself.

Debbie's picture

Agreed!! Fiat is still fiat. Ron Paul talks about "sound

money". I support his monetary policy and his bill for competition in currency. That will end the Fed!

Debbie

I'm intrigued by Paul's

I'm intrigued by Paul's competing currencies as well.. That's why I think Paul should be president but also Still would make a good partner or at least one of Pauls consultants.. Fiat money isnt necessarily a bad thing, as long as its controlled by and for the people. History shows us that this works (Colonial Script, Greenbacks, etc). God, has shown to bring oppression because it is a rare metal, which can be (and has been) controlled by the very same greedy sources. If Paul just wanted us to return to the old Gold Standard, and thats it, I would disagree, based on history. But he's still a champ because it doesn't stop there.

The main issue is whether our money is debt free or not and first and foremost, who's in control of it. Right now, its the private banks!

Fiat currency is necessarily a bad thing.

If it weren't it would not require a government initiation of force to impose a monopoly. Colonial Scripts weren't "worth a Continental". Let the market decide. Gold and Silver will win every time.

Front Page

great message.

Thanks

It is hard to believe Ron Paul's very own Straight Talk seems to be so unimportant these days on the Daily Paul.

Very frustrating very sad to see Ron's work to be ignored by so many members of this community.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

I have trouble reading it

Could you pleeease add the link for the text version when you post these? ;-)

Edit:
O.K., I'll just have to do it myself...
http://paul.house.gov/index.php?option=com_content&view=arti...

Thanks

When RP Straight Talk comes out there is no text at first.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Ohhhhh...

O.K. ;-)

Debbie's picture

Texas Straight Talk - very important!! Thanks for posting them!

These are the extremely valuable "weekly updates". You cannot get an update like this and the truth about what's going on from anyone else in Congress. Only Ron Paul can and will give us the straight scoop on what's happening there.

Debbie

Or zerohedge

Another important source to check daily: www.zerohedge.com

Most support Dr. Paul on that site, and I have been a fan of their blunt and real commentary for a couple of years.

love that site

Thanks Mary.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Debbie you rock!

Merry Christmas.
Song for you:
http://www.youtube.com/watch?v=CcJJMk81ZSw&feature=fvst

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Debbie's picture

Thank you! Just saw this. Merry Christmas and Happy New

Year LL!!

Debbie

Bump It!

thanks for posting..

Thanks for a bump

Loved your comments on the Money Bomb thread.
Keep up the good work brother in Liberty!

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Thanks for posting.

Good catch.

For some reason I can't hear it.

Thanks DeMolay

Has to be your computer or headphones.

Such an exciting day - hard to fall asleep now.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15