Ron Paul Predicted Fannie/Freddie Fiasco - 5 Years Ago

[xpanda]

If being the world's biggest military were enough to maintain the fiat fraud, the Romans would still be standing.

Sadly for them, they are not.

You don't see that the very thing you believe will protect your precious dollar is also the very thing that will collapse it. You can't afford your military anymore, Joe, but you're too caught up in killing the Ay-rabs to see it.

 

[tiznow]

If being the world's biggest military were enough to maintain the fiat fraud, the Romans would still be standing.

Sadly for them, they are not.

You don't see that the very thing you believe will protect your precious dollar is also the very thing that will collapse it. You can't afford your military anymore, Joe, but you're too caught up in killing the Ay-rabs to see it.

the rest of the world elite is just fine and dandy with "the game" as it currently stands

the ME elite controlling all the oil

the putins

the chavez

the darfur

china

unless the rest of the world's central bankers say okay US no more debt for you (via bonds....the recent government bond auctions went well) the game continues

and if they do pull the plug they (the world elite) going down the shitter with us

 

[JoeContrarian]

If being the world's biggest military were enough to maintain the fiat fraud, the Romans would still be standing.

Sadly for them, they are not.

You don't see that the very thing you believe will protect your precious dollar is also the very thing that will collapse it. You can't afford your military anymore, Joe, but you're too caught up in killing the Ay-rabs to see it.

As tizdoom loves to say, "time will tell."

Most of the budget is swallowed by entitlements. So I'm not sure what your point is about the military.

I wouldn't be so quick to make all these doom-gloom predictions about the USD, X. Now that Russia is starting to flex it's military muscle, "Soft Europe " is one crisis away from their Euro being flushed down the toilet. Ditto if Iran lobs a missile at a major European capital.

There are an endless list variables at play when discussing economics.

Bottom line: you can have all the gold and treasure in the world, if you don't have the means to protect your assets, eventually someone will come and steal them. Since so few countries can actually defend themselves against foreign aggression, I'd say the US is in very good shape now and in the foreseeable future.

It's all relative.

 

[xpanda]

and if they do pull the plug they (the world elite) going down the shitter with us

Doubtful. They will have full knowledge of the events before they happen and will be well-positioned to take advantage of the collapse.

 

[Romanowski]

first 300 years of american history had a gold standard?

what?

was that a true gold standard or fractional reserve?

the Romans fell contrary to what tiz loves to quote out of a brilliant military attack after years of civil war. Nothing to do with a currency.

 

[xpanda]

Most of the budget is swallowed by entitlements. So I'm not sure what your point is about the military.

I guess it would be an easy point to miss if you choose to ignore off-budget military expenditures.

Moreover, entitlement programs are part of the politically expedient deficit spending I blamed earlier for the hyperinflation of fiat and its coming collapse. Whether you're talking about social security or bombing Iran, deficit spending is still deficit spending.

You can't afford another war any more than you can afford current SS liabilities. In fact, neither would even be up for discussion were it not for fiat.

But, whatever. Your argument has nothing to do with the 'soundness of fiat against the volatility of the gold standard' (lol) and everything to do with your now very boring save the joos agenda.

 

[xpanda]

first 300 years of american history had a gold standard?

what?

was that a true gold standard or fractional reserve?

the Romans fell contrary to what tiz loves to quote out of a brilliant military attack after years of civil war. Nothing to do with a currency.

The bank failures that Joe points to were typically among those that tried fractional reserve...customers would find out and get nervous about the security of their money, a run on the bank would ensue, and the bank would collapse.

But, yes, you were on a gold standard until the Federal Reserve Act of 1913. With the exception of a few inflationary blips (very tiny) a dollar in 1665 bought the same thing - or more - as a dollar in 1865. Since 1913, the dollar's purchasing power has decreased 95%.

 

[tiznow]

first 300 years of american history had a gold standard?

what?

was that a true gold standard or fractional reserve?

the Romans fell contrary to what tiz loves to quote out of a brilliant military attack after years of civil war. Nothing to do with a currency.

the fiat allowed the military to expand is size and scope all empires fail with time

you can only macromanage for so long....

 

[xpanda]

The Romans fell to a number of reasons, the inability to maintain the empire chief among them.

To blame a military attack is to forget how such a weakness grew in such a formerly impervious empire.

(It's a little like blaming Reagan for the collapse of the Soviet Union, when it was years of unsustainable expansion that led to the problem. Empires cost exponentially more to maintain year over year after all assets in colonised areas are confiscated. From there, the currency debasement begins. It's a pattern that is true to all empires in history. And the hyper-debasement of the currency is the signal of collapse, that deficit spending is unsustainable, and rising exponentially. Specific to the Romans, their currency held its value for hundreds of years, then lost 95% of its value in its final century.)

 

[JoeContrarian]

X, US isn't a colonial power. Comparing the United States to the Roman Empire is deeply flawed for this and many other reasons.

 

[tiznow]

yeah we aren't colonizing iraq and putting troops long term in every country in the world

gimme a break

over time as a species we just figured out you have to give the local citizens a sense of control vs. just taking it

 

[JoeContrarian]

yeah we aren't colonizing iraq and putting troops long term in every country in the world

gimme a break

over time as a species we just figured out you have to give the local citizens a sense of control vs. just taking it

Ugh.

 

[xpanda]

X, US isn't a colonial power. Comparing the United States to the Roman Empire is deeply flawed for this and many other reasons.

It's an empire mired in exponentially increasing debt obligations with concurrent exponentially increasing deficit spending.

It killed Rome and it will kill the US, too.

 

[JoeContrarian]

It's an empire mired in exponentially increasing debt obligations with concurrent exponentially increasing deficit spending.

It killed Rome and it will kill the US, too.

Nah, the deficit will come under control with a John McCain victory in 2008 and a GOP mid-term landslide in 2010.

Budget will be close to balanced within 4 years. No doom-gloom to see here, move along.

But what about the annual 700 billion in gas Americans are pumping out over seas? That's gotta stop.

Bottom line, X: America will be swept away by a new wave of prosperity once it reigns in entitlements and adopt a sane energy policy.

There's no telling the amount of wealth sitting off the coast of CA -- one of many areas enviro-wackos haven't allowed anyone to go near.

Drill! Drill! Drill!

 

[tiznow]

Budget will be close to balanced within 4 years. No doom-gloom to see here, move along.

:lolBIG:

 

[xpanda]

Joe is a politician's wet dream.

 

[Willie99]

• In Ron Paul's zero-inflation scenario, the "money supply" stays unchanged, which implies that, in a growing economy, wages and prices must decrease. In simplified terms, the same amount of money paid out for producing and purchasing more goods and services translates to lower wages and prices in the aggregate. Ron Paul's definition of zero-inflation, in a growing economy, equates to what many others think of as "deflation." [Would you feel comfortable with a pay cut, just because Congressman X said "don't worry, prices are dropping too, and there's no inflation"?]

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falling prices or no inflation? Is that really an argument one wants to make?

into infinity no less

simply not practical

 

[xpanda]

If you're comfortable with prices constantly increasing because, hey, your wages are going up (due to cost-of-living increases, not increased productivity) then why not have wages decrease because, hey, prices are going down?

 

[xpanda]

Decreasing wages, btw, increase incentives to entrepreneurship.

 

[JoeContrarian]

Gold standard, btw, would make us all slaves to South American and African gold mining cartels, resulting in -- drum roll -- MORE WARS! I know how much you'd love that, X. :thumbsup:

In any case, for a 3 trillion dollar economy it's a national security non-starter.