Rand Paul/Peter Schiff: Confronting the Myth of Deflation, by Wendy Macy
Submitted by legalizeliberty on Mon, 11/09/2009 - 18:18
From Wendy Macy's site at: Wendy Macy.com
Rand Paul and Peter Schiff respond to the erroneous claim that inflation is not a problem and that we should really be concerned about deflation. Also, Sean Ryan, a liberty activist from Boston, talks about his confrontations with Barney Frank and the president of the Cleveland Federal Reserve Bank.
The Federal Reserve has increased the monetary base to an unprecedented level. If that money works its way through the economy, we will see inflation. Bernanke claims that the Fed can reduce the money supply if necessary, but Rand Paul suspects that if stagflation occurs (high inflation plus a slow economy), the Fed will not be willing to reduce the money supply.
At the root of the problem is the fact that the Federal Reserve claims to control inflation, when it is really the vehicle for inflation.
what are the factors Peter
what are the factors Peter Schiff is talking about? What factors are keeping prices low? just credit?
RAND PAUL CARDS!
www.CardsForLiberty.com
The banks are not lending
The banks are not lending the money out(credit contraction) The money is not actually in the market, therefore nominal prices will not rise. Once they're satisfied that the recession is over, they will begin to lend out the money, re-inflate the bubble fully, and prices will rise again. He has talked extensively during his interviews on the LRC podcast.
he would say inventory
he would say inventory clearance from all the failing businesses. I am not sure that that is enough to keep prices down but that is his theory.
Ventura 2012
Not only that
But I think he would say that their is too much manufacturing base, and until that shrinks (business failure), then prices can't be raised.
Why do you say "If"?
"If that money works its way through the economy, we will see inflation." Isn't this the crux of the inflation/deflation debate? Shouldn't you be using "when..." instead of "if"? Because if the money does not work it's way through the economy and credit continues to contract, that would be deflationary don't you think?
I believe a part of the FEDs reluctance concerning
an audit might be the money taken out of circulation in the years leading up to 1929 and the subsequent crash and depression. The FED did intentionally take massive amounts of money out of circulation and initiate a depression
in 1929. IU believe they have the same thing planned for the current crisis.
Look at all the third world countries they've ruined ? Now it's our turn.
What say you ?
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Money And Credit And National Sovereighty
When You Create Money That Has No Value (Paper), It Doesn't Matter How Much Of It You Make Or Reproduce..It Is Still Worthless And Has Zero Backing Expressed In Reserve (Gold)..Therefore, Any Money Printing In Excess Of Any Currency Reserve (Gold) Is Still Worthless..Credit lending Is A Non-Issue, Because The Money Or Credit Lended Out By The Commercial Banks Is Totally Worthless Anyway...At First The Credit Has An Illusion Of Worth, And Confidence Is High, But Soon Afterward, It Becomes A Reality That Paper Is Still Worthless, It Buys Nothing Except The Illusion Of Worth By Those That Create It (The Federal Reserve) And Its Associated MouthPieces, (The Banker Controlled Corporate Media).. ..How Can Paper Be Worth Anything? We Are Broke, Spending Way Beyond Our Means And Without Any Reserve Currency To Fall Back On..When The Dollar Is Finally Allowed To Crash By Those That Perpertrated The Lie Of Illusion (The FED) The United States Of America Will Cease To Exist As A World Economic And Military Power..Then,
The End Will Come, Civil War Will Break Out, Gang Wars, Food And Water Shortages, Housing Needs And Pandemics And Death Everywhere..
Only By Devine Providence Will This Nation Survive.. The Event Is In The Hands of God..
** Note : Money, Expressed In Paper Currency Is A Fake, A Fraud, Like A Ghost, It Eventually Returning To Its Real Intrinsic Value..Zero
~ Voltaire
We are in a deflation
Inflation is the increase of money and credit cumulatively. Whereas they're inflating the money supply the credit is melting. The amount of dollars as credit in several times higher than money supply measured in the number of dollar bills circulating if you will. So credit is collapsing so fast that even if the Federal Reserve is printing their minds out they still can't compensate for the collapsing credit and cause inflation. Even if they print it the banks will not lend it.
Anyway, I loved the stuttering witch when she was asked the question. Of course, "our responsibility is price stability and maximum employment" blah-blah. Nobody listens to you anymore, morons! Your days are numbered, Miss. Get a real job! How about flipping burgers to begin with. Losers!
Furthermore
Access to credit cards is falling for Americans:
----------
Already, banks are shifting to a model in which a smaller pool of Americans will be eligible for credit cards, and customers with cards will probably pay more for the privilege through annual fees and higher interest.
Meanwhile, the banks are in the process of shedding customers considered too risky. That means tens of thousands of Americans will no longer be able to splurge on Nike gym shoes or flat-screen televisions unless, of course, they have enough cash to pay for them.
Still, even consumer advocates have said that the banks were too quick in the past to give out credit. “You know, it doesn’t take a rocket scientist to figure out that if you keep borrowing and borrowing in order to consume now, eventually you crash and burn,” said Martin Eakes, chief executive for the Center for Responsible Lending. “That’s what we’re facing.”
In the 12 months that ended in September, the number of Visa, MasterCard, American Express and Discover card accounts in the United States fell by 72 million, according to David Robertson, publisher of The Nilson Report, an industry newsletter. There are 555 million accounts still in the marketplace, he said.
In roughly the same time period, banks lowered credit limits by 26 percent, to $3.4 billion, from $4.6 billion, according to an analysis of government data by Foresight Analytics.
http://www.nytimes.com/2009/11/10/your-money/credit-and-debi...
flipping burgers is honest work.
It's above her skill level.
let's have a healthy exchange of opinions
I just don't understand why the owner of this site Michael would remove this video from his front page based on opposite viewpoint like yours.
Front page in spot nr 4 for two hours and now gone!
There is so much pseudo-value that was created by creation of derivatives...
UPDATE - Video is back on front page.
Thank you Michael.
___________________
"a half truth is a full lie" old Jewish saying quoted by Gary Null
exposing big pharma and their deadly vaccines
http://www.youtube.com/watch?v=gavenB_AJ9A
___________________
Jake Towne "Fire Cake" Money Bomb February 15
http://www.dailypaul.com/node/122445
Donate = Freedom*))
Thank you Michael
special cyber hug for you for posting this front page*))
btw woman that creates these great vids is working outside of Rand's official campaign - she did interviews with Rand and music video in his support...she is a beautiful soul - one of my fave youtuber activists.
___________________
"a half truth is a full lie" old Jewish saying quoted by Gary Null
exposing big pharma and their deadly vaccines
http://www.youtube.com/watch?v=gavenB_AJ9A
___________________
Jake Towne "Fire Cake" Money Bomb February 15
http://www.dailypaul.com/node/122445
Donate = Freedom*))
you are correct... A prudent
you are correct...
A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.
Thank you so much
for the all important first bump - now perhaps Michael can see this great video and post it front page?
cyber hug flowing your way*))
___________________
"a half truth is a full lie" old Jewish saying quoted by Gary Null
exposing big pharma and their deadly vaccines
http://www.youtube.com/watch?v=gavenB_AJ9A
___________________
Jake Towne "Fire Cake" Money Bomb February 15
http://www.dailypaul.com/node/122445
Donate = Freedom*))