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Ron Paul Straight Talk "Federal Reserve Blows More Bubbles," 5-6-13

Federal Reserve Blows More Bubbles [Link thanks to adap2k]

http://youtu.be/mTRtSEUtmNY
Last week at its regular policy-setting meeting, the Federal Reserve announced it would double down on the policies that have failed to produce anything but a stagnant economy. It was a disappointing, but not surprising, move.
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Ron Paul's Texas Straight Talk 5-6-2013 ~ Federal Reserve Blows

Ron Paul's Texas Straight Talk 5-6-2013 ~ Federal Reserve Blows More Bubbles
Submitted by Mark Twain on Wed, 05/15/2013 - 12:39

[Transcript] ~ Last week at its regular policy-setting meeting, the Federal Reserve announced it would double down on the policies that have failed to produce anything but a stagnant economy. It was a disappointing, but not surprising, move.

The Fed affirmed that it is prepared to increase its monthly purchases of Treasuries and mortgage-backed securities if things don't start looking up. But actually the Fed has already been buying more than the announced $85 billion per month. Between February and March, the Fed's securities holdings increased $95 billion. From March to April, they increased $100 billion. In all, the Fed has pumped more than a half trillion dollars into the economy since announcing its latest round of "quantitative easing" (QE3) in September 2012.

Although many were up in arms when the Fed said it would buy $600 billion in government debt outright for the previous round, QE2, all seems quiet about the magnitude of QE3 because it doesn't come with huge up-front total price tag. But by year's end the Fed's balance sheet could hit $4 trillion.

With no recovery in sight, where's all this money going? It is creating bubbles. Bubbles in the housing sector, the stock market, and government debt. The national debt is fast approaching $17 trillion, with the Fed monetizing most of the newly issued debt. The stock market has been hitting record highs for the past two months as investors seek to capitalize on the Fed's easy money. After all, as long as the Fed keeps the spigot open, nominal profits are there for the taking. But this is a house of cards. Eventually, just like in 2008-2009, the market will discipline the bad actions of the Fed and seek to find the real normal.

In the meantime, real families are suffering. While Wall Street and the government take advantage of access to the Fed's new "free" money, the Fed claims there is no inflation. But who hasn't paid higher prices at the grocery store, the gas pump, for tuition, for insurance? It's bad enough that household incomes have stagnated, but real purchasing power has declined so much that one in seven Americans, 47.3 million people, are on food stamps. Five million are collecting unemployment insurance with 21.5 million afflicted by unemployment according to the government's own figures. That's 13.9 percent -- close to double the 7.5 percent unemployment number reported last week.

We are certainly not in a recovery. We don't see the long unemployment and soup kitchen lines like in the Great Depression, but that's just because the lines are electronic now.

It is not surprising the Fed has decided to hand the American people more of the same failed policies. But it is disappointing. We know what the real solution is: allow the marketplace to work. Allow entrepreneurs the chance to create instead of stifling innovation with arbitrary regulations. Allow interest rates to rise to equal the risks in the economy. Allow bad debts to be liquidated so we can build on a firm foundation. Stop printing money to benefit the government and big banks. Restore sound money to the economy and the American people. Sound money is the bedrock for prosperity and the best check on big government and crony capitalism.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

What really gets on my nerves

What really gets on my nerves is when people think what we have right now is a "free market" and "capitalism". This is NOT capitalism.

Cyril's picture

Only the self-proclaimed socialists

Only the self-proclaimed socialists really believe that (from what I observed, anyway)

Or pretend they do. Some are champion liars, not just idiots.

Common sense people like you and I have long ago recognized it as nothing but rampant fascism. Mafia plus socialism, both on steroids, if they aren't the exact same one thing.

It's been tried dozens of times in 2 centuries all over the place on this planet.

Examples are plenty to ponder about, when one has two neurons AND two grams of intellectual honesty.

Anybody can re-read about Rome. Or Burke's or Bastiat's writings.

Ignorance has no longer much of excuses:

http://www.w3.org/History/1989/proposal.html

... That which helps to fix it.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Bump bump bump

Thanks for posting Steve.

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

SteveMT's picture

You are welcome, LL.

I finally got to a Straight Talk before you guys could. Preemptive Straight Talk searchers are allowed, but preemptive wars are NOT!

I'd like to hear right-wing talk radio refute ANY of that!!!

....that's right, I'm not going to get over the SLAM on Ron Paul, and us who know he is patriotically TRUTHFUL beyond measure....

DOWN WITH THE IRRELEVANT LIARS AND THEIR SMEAR CAMPAIGN!!!!

(it's great to think we're still a major problem for them 8 months after being summarily shut out of the RNC!!!)

Debbie's picture

Thank you Dr. Paul - keep speaking the truth, for as you said,

. . ."they cannot un-hear what we have said."

Debbie

Cyril's picture

BUMP for Dr. Ron Paul

BUMP for Dr. Ron Paul who tells the people like it is, as usual.

Indefatigably.

http://youtu.be/Qr7nL2xIZqI

http://youtu.be/2NJnL10vZ1Y

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

[Warning: profanity] Best comment read so far on the ZH article:

[Warning: profanity] Best comment read so far on the ZH article:

There are Lies.
Damn Lies.
Goddamn Lies.
Goddamn Fucking Lies.
Goddamn Motherfucking Lies.
Goddamn Motherfucking Money-shot-to-the-face Lies.
and...
Government Statistics.

Well, profanity, for sure.

But that does sound about right!

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

SteveMT's picture

Thanks for that link.

Appreciated

SteveMT's picture

Story picked up by ZH - Ron Paul: "This Is A House Of Cards"

ZH likes Ron Paul!
Ron Paul: "This Is A House Of Cards"
http://www.zerohedge.com/news/2013-05-05/ron-paul-house-cards

We all know what happens to bubbles.

Eventually they do this:

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

SteveMT's picture

Good one, Josh.

This time the pop will be heard as far away as the moon. Thanks for the bump.