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Ron Paul's Texas Straight Talk 10/29/2012 - Let the Markets Clear!

by Ron Paul | October 29, 2012

French businessman and economist Jean-Baptiste Say is credited with identifying the fundamental economic principle that aggregate demand for goods in an economy will equal the aggregate supply of goods when markets are permitted to operate. Or in Say’s words, “products are paid for with products.”

English classical economist David Ricardo, among others, more fully developed this principle into what has become known as “Say’s Law.” Say’s Law, according to Ricardo, leads us to understand that market equilibrium for goods is constant. This simply means that markets, when left alone by government planners or other fraudulent actors, inexorably tend toward an “equilibrium price” which eventually balances supply and demand for any particular good. Thus markets will clear themselves of any surpluses or shortages in the form of excess supply and demand.

This important corollary of Say’s Law-- that markets clear-- is critical to understanding the moribund US housing market. In housing, perhaps more than any other good, we see the terrible consequences of government and central bank interference with market forces.

First, the Federal Reserve Bank relentlessly increased the money supply over the last few decades. Much of this newly created money and credit flowed from Fed member banks into the residential and commercial real estate markets, causing prices to rise dramatically prior to the housing bust of 2007.

At the same time, the Fed systematically suppressed interest rates for decades. This led to tremendous malinvestment both by homebuilders and individuals, and encouraged a seedy subprime mortgage industry to make nonviable loans that would not make economic sense under market interest rates.

Congressional meddling in the mortgage market also added tremendously to the problem. Inane legislation like The Community Reinvestment Act literally forced banks to make thousands of loans to bad credit risks. Similarly, Fannie Mae and Freddie Mac put taxpayers on the hook for millions of mortgages that never would meet market underwriting criteria. And of course the real estate and homebuilder lobbies made sure mortgage interest debt (unlike most personal debt) remains tax-deductible.

The ultimate result of these interventions by our caring friends in Congress and the Fed has been the biggest housing bubble and crash in US history, leaving millions of Americans underwater on their mortgages if they have not already lost their houses altogether. Congress and the Fed are directly responsible for millions of shattered lives, and almost unknowable economic damage in the form of trillions of dollars in mortgage backed securities.

The only solution to this mess is to allow the US housing market to clear. All of the bad mortgage debt must be liquidated, whether via foreclosure or bankruptcy. Banks holding substantial mortgages or mortgage backed assets must face the music and adjust their balance sheets to reflect today’s reality. Undoubtedly this will force many banks into immediate insolvency, but such banks must be allowed to fail without receiving another nickel of taxpayer money. Banks took the risks and made money during the bubble years; those who exercised bad judgment must now accept the consequences of their actions.

Never in American history have we needed to adopt a policy of laissez faire more desperately; never has government seemed more determined to artificially prop up an industry. But only by allowing the housing market to clear can we hope to rebuild our shattered economy from a stable foundation. Clearly there will be pain in the short term, but we owe it to younger Americans and future generations to allow the reemergence of a rational housing market.

Source:
http://paul.house.gov/index.php?option=com_content&view=arti...

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Call This...

1-888-322-1414

and just read along.

I think some of his best words have come from these recordings.

When he's by himself on the phone, his honesty and sincerity really shows.

Bumpidge!

~Good Night, And Good Luck~

Economic honesty is the best economic policy.

B-U-M-P-!

With all due respect, I will no longer be a voting prostitute for Constitution rejecting harlots.

Bump

Bumpity bump bump

Dr. Paul's words are always so refreshing to read.

Wisdom in a sea of chaos. In liberty for all.

Qwerk you know I am a hard core Gary Johnson supporter

I say this to you and everyone else: Dr. Ron Paul is.... the only statesman of our time.

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

Bump 2 Font Page???

Hopefully Ron Paul Texas Straight Talk can remain Monday front page until he is no longer in Congress. Is not that at least the respect we can give this Champion of Liberty?

This week's subject seems especially particular to PAuL.

Seems it used to be right up front early every Monday...until...that fateful Tampa?

Of course, I can always go look for it in New Topics.

Thank you Bear for bumping this

Saluting you my 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

Sister, my Friend

I know you talk to so many people! Have a good week :)

smile

Saluting my sister in Liberty.

Thank you Bear.

Hugs*))

Blaise Pascal said: "drop of Love is more than an ocean of wisdom."

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

Solomon said:

Proverbs 10:12 NKJV

Hatred stirs up strife, But love covers all sins.
-----

Love is the key!

Just posted this on Twitter

Love is the key!

In one of my poems I say "Love is the only bridge to God"

Tweeted seconds ago:

@LibertyPoet
Blaise Pascal said: "drop of #Love is more than an ocean of #wisdom." Vote for #peace @GovGaryJohnson vs. #GoldmanSachsCandidates #war

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

Love Bridge

One of the most beautiful Scriptures in the New Testament talks about that Love Bridge:

John 3:16 For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.

Jesus made a love bridge from himself to the world and those that choose to can take that love bridge from the world back to God.

Never read that before

Thank you.

Here is one of my poems:

A New World is Coming - by Tomasz Dybowski

a new world is coming
where peace love liberty
will be our daily bread

we will forget our tears
just as a mother forgets them
seeing her child born into this world

wars and slavery
in all its manifestations
will become just a history lesson

all nations will realize
we are as one and we are blessed

all people will see
we are all brothers and sisters

hurry my friends
hurry up
hurry to love one another

a new world is coming
the time is short!
http://www.libertypoet.com/poetry/anewworld/

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

Your Beautiful Poem

made me think of this beautiful promise:

Revelation 21:4
And God shall wipe away all tears from their eyes; and there shall be no more death, neither sorrow, nor crying, neither shall there be any more pain: for the former things are passed away

also in that same chapter:
Revelation 21:26 And they shall bring the glory and honour of the nations into it. 27 And there shall in no wise enter into it any thing that defileth, neither whatsoever worketh abomination, or maketh a lie: but they which are written in the Lamb's book of life.
-------------
The reference to the Lamb is a reference to Jesus. The Scriptures tell that Jesus is the Lamb of God that takes away the sin of the World.
-------------
Full audio of Rev 21: http://www.biblestudytools.com/kjv/revelation/21-audio.html

That chapter whole chapter makes me think of the future promise put to poetic words by Tomasz Dybowski

Thank you

Another of my poems:

Wars Will Be No More!

When planet earth becomes dressed in Liberty
Every creature will stand tall for Love
Just as a Christmas tree uncut

All within one
And as one voice
Purified hearts of saints shall shine

Mother will ask her son
Do you remember war?
Her son will answer
No I don't because I am dancing

Father will ask his daughter
Do you remember war?
His daughter will answer
No because I am singing in joy

When stars give sudden births
When oceans become married to winds
When tears flow as rivers feeding cornfields
When you follow your pure innermost essence

Wars Will Be No More!

Another poem of mine:

When You Have Love Within You

Planet our earthly home is enslaved
Our chains are many
Wars without end
Toxic foods big pharma drugs
Prisons to house us because we grew plants

Seems the darkness of the evil night
Will never fade away

But the Universe sees all
God is patient and just

The war machine its killing hand will be cut off

The meek the humble the peacemakers
Those that seek justice will inherit kings crowns

When you have love within you
You are truly alive forever
Love is the only bridge to God

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

Thank you for sharing beautiful thoughts on peace

I don't know if you know this already, but Jesus is referred to in Old Testament Scripture Prophecy as the "Prince of Peace!"

Isaiah 9:6 KJV
For unto us a child is born, unto us a son is given: and the government shall be upon his shoulder: and his name shall be called Wonderful, Counsellor, The mighty God, The everlasting Father, The Prince of Peace.
------------
Here is something frightening though. Another Old Testament Prophecy:

Daniel 8:25 KJV
And through his policy also he shall cause craft to prosper in his hand; and he shall magnify himself in his heart, and by peace shall destroy many: he shall also stand up against the Prince of princes; but he shall be broken without hand.

Here is New Testament Prophecy

1 Thessalonians 5:3 KJV
For when they shall say, Peace and safety; then sudden destruction cometh upon them, as travail upon a woman with child; and they shall not escape.
----------
There will be one called the Anti Christ who will stand up for peace and yet thru it destroy many. That same one who will stand for peace will stand against the Prince of Peace. That one will be destroyed, but only by the return of the Prince of Peace.
Here is an Old Testament Prophecy about the future world your poems describe:

Isaiah 11:6 KJV
The wolf also shall dwell with the lamb, and the leopard shall lie down with the kid; and the calf and the young lion and the fatling together; and a little child shall lead them.

This is talked about in the very last chapter of the Bible. Revelations 22: http://www.biblestudytools.com/kjv/revelation/22-audio.html

Legalizeliberty, I know peace is of high interest to you. I hope at least you will listen to that audio above. It is a wonderful promise of things to come. But Legalize, we can seek peace, and we should, but truly peace will only last when the Prince of Peace rules. That Prince of Peace tells us how to have peace, and you are right, it is thru love. Love people and love God. Unfortunately, it is impossible to love completely and additionally the Bible tells us in the last days the love of many will become cold. That is found in Matthew 24, but I will not inundate you with more scripture.

...

lion will sleep in peace

with a lamb.

God Bless bear.

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

May God Bless you with

May God Bless you with faithful knowledge of the promises of the Lord Jesus Christ who is due all glory and honor and who will bring Peace on earth.

Sweet

I share these articles every week on Facebook when they come out. It may be too late for me to affect my friends' and family's voting decisions, but I can still educate them.

"Moderation in temper is always a virtue; but moderation in principle is always a vice." -- Thomas Paine

The good fight continues

Thank you for educating folks.
I try to educate thousands daily on the Twitter social site....

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

Folks please help keep this bumped

I have to go off-line.

This is the latest message from the good doctor and deserves to be front paged.
I hope Michael/mods see this soon.

Video is not posted anywhere on Youtube -- so for now just the text is available.

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

*Suggestion

You should put the number at the top of the article to remind people they can still listen to it the old fashion way And read along.

1-888-322-1414

Cheers!

~Good Night, And Good Luck~