Ron Paul to Chair Monetary Policy Subcommittee

[MaggieMae]

And that's where the debate would begin over what caused the collapse in the first place. You say there needs to be a wedge in place so that this doesn't happen, and I would say that we need to get rid of the Fed so that this doesn't happen.

Not if there's no protection for the way the system operates at present. The dollar would be worthless, and all our creditors would immediately be clamoring for their bullion as payment. That would mean billions in "paper" deposits would also be worthless. I'm not saying monetary policy doesn't need to be changed; I'm simply looking at the fixes and the practicality of doing it so that we don't need to go back to bartering beads and pelts for food until a "better" system is put in place.

The dollar would actually gain in value under the gold standard. The dollar is nearly worthless now thanks to the Fed.

How can you say that when we don't even know how much is left in reserve?

Ron Paul questions whether there's gold at Fort Knox, NY Fed - The Hill's Blog Briefing Room

 

[MaggieMae]

2003, 2004, 2005, 2006. 4 years.

They didn't have to come right out and say it. Deficit spending, all else being equal, is inflationary. Tax cuts increased the structural deficit. That is standard textbook economics. But it wasn't just that. It was also 1% interest rates. And gold went from $300 to $900. Surprise, surprise.

The same conditions exist today, only more extreme. So another of the three times I invested based on politics was to increase my gold exposure after the Obama stimulus. The mistake Republicans make is to assume that the Democrats and Republicans are much different when running the fiscal affairs of the nation. Republicans are as bad, if not worse at fiscal mismanagement than the Democrats.

Alan Greenspan once remarked in an interview that of all four presidents he served under, Clinton understood economics better than any other. (I have the source somewhere, but can't put my fingers on it right now.)

Not exactly high praise considering Greenspan is chiefly responsible for our current mess.

Not really. Greenspan was always a Randian free-market based economist. He confessed (before Congress) that he had assumed the market would adjust to any pending housing bubble just as it has adjusted to other bubbles and dips in the economy over the years. By the time all this came crashing down, Greenspan was also getting a little long in the tooth and relying too heavily on reporting from counterparts (and the SEC, which also failed to recognize that major shenanigans were occurring) instead of his own intuition.

 

[uscitizen]

2003, 2004, 2005, 2006. 4 years.

They didn't have to come right out and say it. Deficit spending, all else being equal, is inflationary. Tax cuts increased the structural deficit. That is standard textbook economics. But it wasn't just that. It was also 1% interest rates. And gold went from $300 to $900. Surprise, surprise.

The same conditions exist today, only more extreme. So another of the three times I invested based on politics was to increase my gold exposure after the Obama stimulus. The mistake Republicans make is to assume that the Democrats and Republicans are much different when running the fiscal affairs of the nation. Republicans are as bad, if not worse at fiscal mismanagement than the Democrats.

Alan Greenspan once remarked in an interview that of all four presidents he served under, Clinton understood economics better than any other. (I have the source somewhere, but can't put my fingers on it right now.)

Not exactly high praise considering Greenspan is chiefly responsible for our current mess.

that is a very valid point.
And Geitner is Mr. More of the same.

 

[dilloduck]

My quetion is there an immediate solution? Because looking back, all it took for a run on banks all over the world to begin OVERNIGHT was the collapse of Bear Stearns and followed by Lehman Brothers. There needs to be something in place that will act as a wedge so that doesn't happen.

And that's where the debate would begin over what caused the collapse in the first place. You say there needs to be a wedge in place so that this doesn't happen, and I would say that we need to get rid of the Fed so that this doesn't happen.

Not if there's no protection for the way the system operates at present. The dollar would be worthless, and all our creditors would immediately be clamoring for their bullion as payment. That would mean billions in "paper" deposits would also be worthless. I'm not saying monetary policy doesn't need to be changed; I'm simply looking at the fixes and the practicality of doing it so that we don't need to go back to bartering beads and pelts for food until a "better" system is put in place.

Speaking of pelts--

In 1998, the United States maintained its position as the world's largest producer and exporter of hides and skins. It produced about 987,000 tons of bovine hides, virtually unchanged from 1997, representing about one-quarter of the world cattle hide production.

U.S. exporters dominate markets for cattle hides and skins | AgExporter | Find Articles at BNET

 

[Kevin_Kennedy]

Not if there's no protection for the way the system operates at present. The dollar would be worthless, and all our creditors would immediately be clamoring for their bullion as payment. That would mean billions in "paper" deposits would also be worthless. I'm not saying monetary policy doesn't need to be changed; I'm simply looking at the fixes and the practicality of doing it so that we don't need to go back to bartering beads and pelts for food until a "better" system is put in place.

The dollar would actually gain in value under the gold standard. The dollar is nearly worthless now thanks to the Fed.

How can you say that when we don't even know how much is left in reserve?

Ron Paul questions whether there's gold at Fort Knox, NY Fed - The Hill's Blog Briefing Room

Well the gold standard implies that there is some amount of gold backing the dollar, which would cause the value of the dollar to rise because it would put an end to inflation.

 

[Kevin_Kennedy]

Alan Greenspan once remarked in an interview that of all four presidents he served under, Clinton understood economics better than any other. (I have the source somewhere, but can't put my fingers on it right now.)

Not exactly high praise considering Greenspan is chiefly responsible for our current mess.

Not really. Greenspan was always a Randian free-market based economist. He confessed (before Congress) that he had assumed the market would adjust to any pending housing bubble just as it has adjusted to other bubbles and dips in the economy over the years. By the time all this came crashing down, Greenspan was also getting a little long in the tooth and relying too heavily on reporting from counterparts (and the SEC, which also failed to recognize that major shenanigans were occurring) instead of his own intuition.

One of the greatest myths is that Greenspan was somehow the great free market economist when he was the central planner-in-chief. You can't favor a free market while simultaneously controlling the market, it makes no sense. As Fed chairman he created the housing bubble by attempting to inflate our way out of the dot-com bust, which was not a free market policy by any means.

 

[Paulie]

Since when does a Congressional term last 3 years?

They never said anything about devaluing the dollar. Tax-cuts don't automatically mean inflation. In the last year Obama has decided to print $1.2 trillion dollars and give it to banks to induce them into loaning money. It's never gonna work because the risk is too great right now. All that's gonna happen is grocery bills are gonna go up and the Fat-cats are gonna shore up their portfolios.

He said THROUGH 2006.

Meaning that in January of 2007, the GOP control was over when the new congress was seated.

It was 4 years, not 2.

I said he was saying 3 not 2.

It should have been from 03 to 07...when Congress was seated.

He said from 2003 through 2006.

That means the same as saying to 2007. Through 2006 means until it's over, at which point the new congress is seated.

He didn't say anything wrong.

 

[uscitizen]

The dollar would actually gain in value under the gold standard. The dollar is nearly worthless now thanks to the Fed.

How can you say that when we don't even know how much is left in reserve?

Ron Paul questions whether there's gold at Fort Knox, NY Fed - The Hill's Blog Briefing Room

Well the gold standard implies that there is some amount of gold backing the dollar, which would cause the value of the dollar to rise because it would put an end to inflation.

The US govt does not even have enough gold to cover one years budget, let alone the debt.

 

[Paulie]

How can you say that when we don't even know how much is left in reserve?

Ron Paul questions whether there's gold at Fort Knox, NY Fed - The Hill's Blog Briefing Room

Well the gold standard implies that there is some amount of gold backing the dollar, which would cause the value of the dollar to rise because it would put an end to inflation.

The US govt does not even have enough gold to cover one years budget, let alone the debt.

The truth is, you don't have any clue how much gold the government has.

No one does.

 

[KissMy]

GOLD!!!!!!!!!! $1408.00 per ozt & climbing.

 

[Paulie]

GOLD!!!!!!!!!! $1408.00 per ozt & climbing.

Oh it's just a speculative bubble, it will burst ANY DAY NOW

 

[Kevin_Kennedy]

How can you say that when we don't even know how much is left in reserve?

Ron Paul questions whether there's gold at Fort Knox, NY Fed - The Hill's Blog Briefing Room

Well the gold standard implies that there is some amount of gold backing the dollar, which would cause the value of the dollar to rise because it would put an end to inflation.

The US govt does not even have enough gold to cover one years budget, let alone the debt.

The amount of gold is essentially irrelevant.

 

[Big Fitz]

GOLD!!!!!!!!!! $1408.00 per ozt & climbing.

Oh it's just a speculative bubble, it will burst ANY DAY NOW

Not after QE2 it isn't. Growth just got real for as long as they keep printing money.

Anyone else notice that QE2 is going to be an economic Poseidon Adventure? We're all at the New Years party and the Tsunami is about to hit any second now. Oh I hope I'm not playing the part done by Shelley Winters or the Purser. Those were two crappy ways to go.

 

[LordBrownTrout]

GOLD!!!!!!!!!! $1408.00 per ozt & climbing.

Oh it's just a speculative bubble, it will burst ANY DAY NOW

Not after QE2 it isn't. Growth just got real for as long as they keep printing money.

Anyone else notice that QE2 is going to be an economic Poseidon Adventure? We're all at the New Years party and the Tsunami is about to hit any second now. Oh I hope I'm not playing the part done by Shelley Winters or the Purser. Those were two crappy ways to go.

Pretty good analogy and for whomever makes it to the top of the capsized boat they'll be on their own in terms of swimming to shore. Probably be good to have some inflatable rafts in your pocket.

 

[Big Fitz]

And remember, "up" is down.