Ron Paul has the Answer to the current economic collapse
Posted January 21st, 2008 by evolution2008
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I am amazed at the disinformation fed thought the media. Both with the true message of the Ron Paul Revolution but the current economic collapse we are witnessing. Ron Paul has the solution. Convert all US debt to ZERO % rates. Rates will have to drop to near Zero to turn the deflationary debt spiral that has started.
I see so many running to recommend to Gold and Silver. DO NOT listen to Gold bugs. They have been wrong for 40 years! What makes you think buying gold and silver is the answer?
I have posted that the problem is a deflationary collapse created by massive debt creation. This is an implosion of asset values. Gold and silver will also be destroyed in the coming deflationary collapse. I have also said that contrary to the “Consensus”, the value of the dollar will soar. I started in November 2007; the dollar is up 10% against the British Pound, 10% against the Canadian Dollar, all except the Yen will suffer in the coming collapse. Rates will have to drop to less than 1%. Demand for dollars is huge in a deflationary collapse since banks will not be able to create debt fast enough, or better yet, fed to the by the public to sped. When you are in debt every extra dollar held is worth MORE not less.
Just before going into bankruptcy you will do what ever you can to earn or get that all mighty green back. The dollar will soar! The stock market which feeds on earning of that dollar; will collapse. Why are pundits so blind!
This is a deflationary collapse, not inflation. Like pushing on a string? Nothing happens.
One more time,
value of the dollar soars not collapses in a deflationary spiral.
Think what a dollar is worth to you when you are indebted and have no cash? Is that one dollar worth more or less?
Use you heads!
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3 points
1. Money is cheap now interest is a little over 4% bank to bank the problem is oil has soaked up the money and the war has made the dollar cheap.
2. Inflation in 2007 was the highest in 17 years because of higher oil and the weak dollar. We are a nation on wheels oil has tripled in 6 years.
3. Along with housing bankruptcy people are losing their cars and defaulting on their credit cards.
"First they ignore you, then they ridicule you, then they fight you, then you win."
-- Mahatma Gandhi
I vote for a Jubilee
;-)
Hold them to their oath:
President
"I do solemnly swear (or affirm) that I will faithfully execute the office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States."
yes, i agree...
we are at least 150 years past due for "Jubilee"...
First of all, gold bugs have
First of all, gold bugs have not been wrong for 40 years. They were very right when they were buying gold in the 1970s for 50 an ounce and rode it over 650.
Secondly, have you studied Ben Bernanke's dissortation? He opined that the great depression would not have happened if there was adequate liquidity (ie inflation). His recommendation was inflation. The great irony is that he will get to test his theory. How do you think he'll handle it?
There is alot of speculation as to whether this will be an inflationary or deflationary depression. Given that Bernanke is behind the wheel, inflation seems more likely. Consider that M3 is increasing by more than 16% a year and is increasing exponentially each month. (shadowstats.com)
Remember the Weimar Republic?
BOTH!
Dr Antal Fekete, noted authority on gold-based currency and the history and role of gold as money, has an excellent recent article pointing out that it is very likely that we will experience, in the collapse of the dollar, both inflation AND deflation at the same time. This is not as crazy as it first sounds. The difference is that when we casually talk about "the dollar", we are talking about two (or more) very different things. He suggests that in the flight from more risky dollars (derivatives and other paper) to physical cash (Federal Reserve Notes), we could experience inflation in the former as the Fed pumps massive liquidity into the market, and yet also at the same time experience deflation (at least temporarily) as people hoard cash. An interesting scenario that strikes me as realistic. Yet, in the end, I think it is a foregone conclusion that rampant inflation will take hold in all aspects of the dollar.
Anyone telling you otherwise is a shill for big business/big government, or whistling past the graveyard of the dollar.
I am Conviced it is deflation
Creating more bank debt will not help if no one will borrow more.
Gold has underperform the Dow since 1980 by multiple of 100.
Gold is a static investment and offers no growth.
For inflation to occur Incomes have to grow faster and with the Importation of Chinese and Indian wages, wage growth in USA is collapsing which is the reason that the debt collapse spiral has started.
Japan is a classic example, rates are at 0.25% and the Nikkei is a fraction of what it was in 1990, 40,000 to 13,500 today.
The Japanese tried to give away Yen to spur inflation and no one would cash their checks. Deflation creates more deflation.
Deflation, my ass!
Frankly, you are talking out of your ass in saying that the Dow has outperformed gold by 100X since 1980. Adjusted for REAL inflation (not the government's laughably low CPI propaganda) and capital gains taxes, the REAL dow has average a measly 1.1% return in the last 100 years. Now, I'm not saying that gold has long-term done any better, but the point is that gold (ans silver) are NOT investments, but are safe havens in times of economic turmoil. The precious metals are life-savers during a currency collapse, whereas the dollar and the Dow will be nothing more than concrete galoshes.
akak is right...
Gold doesn't perform up or down. Sure there are some swings...generally artificial, but one ounce of gold bought a fine suit in 1913 and today...one ounce of gold buys you a fine suit. Listen...gold is not about profiting...only it's dollar value goes up or down depending on the dollar...it remains fairly constant in it's trade/purchasing value averaged over time. The currency is the problem...increase supply...each dollar has less purchasing power. Lower the money supply or tie it to any hard limited substance preventing the expansion of the supply...and it will stay relatively stable.
This is not rocket science...it is supply and demand.
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Federal Reserve to the American People:
"Catapultam habeo. Nisi pecuniam omnem mihi dabis, ad caput tuum saxum immane mittam."