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Ron Paul,monetary,policy,spending,debt,federal reserve Ron Paul: A Transfer of Wealth from the Poor to the Wealthy
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He was a trickle down man as well saying, "though the sole end which they (the rich) propose from the labours of all the thousands whom they employ, be the gratification of their own vain and insatiable desires, they divide with the poor the produce of all their improvements." In other words, the rich are selfish bastards, but they can't help but make other people money.
Just think about the trickle down from Paris Hilton alone. She's feeding a bunch of people.
National debt is not all bad, as long as you get something useful in return. However, I can't help but remember that quote from, I forget who, that went something like, "true democracy can only last as long as it takes the citizens to figure out they can vote all the money out of the coffers." Who did say that?
so the difference is, if you have the someone printing money you are giving them power. but if you agree on gold, then there's a finite amount and that's that. i know it's not that simple but anyway.
until alchemy is invented, gold makes more sense to me, and paper tied to gold (for practical reasons) is fine as long as you can trust the banks (which you currently can't, because the money isn't tied to gold so it is fundamentally corrupt or "counterfeit" as RP says).
However, don't listen to me, i have taken zero courses in economics... i just know that the dollar isn't worth shit any more because the military power and political stability that guaranteed its value is fubar.
That being said, I think I'm done on my economic discourse, because I've about reached the limits of my scant knowledge.
The problem with trickle down is the trickle. Sure, a couple of drops are bound fall on the unwashed masses, but most of it sits in stagnation.
Why not trickle up? If it's going to end up in Paris Hilton's bank account anyway, why not let me buy some groceries with it before it gets there?
On the other hand...if you let lower income families keep all their money...these are people who are living paycheck to paycheck and sometimes aren't able to pay all their bills every month. We pretty much "know" what they are going to do with that money. They are going to spend it and the more consumers spend the more money that is made by the rich who "are" investing there money in businesses and employees.
I want to just post the same thing to every Ron Paul thread, since the same stuff seems to come up again and again, but I'm not sure what video sifts policy on that is. Instead I'll just post some links with the heading:
READ THIS STUFF BEFORE YOU SUPPORT RON PAUL FOR THE LOVE OF GOD:
Or a nice summary of all his crazy:
http://www.iidb.org/vbb/showthread.php?p=5000274#post5000274
(at least read that, please, especially the gold standard part)
http://www.stormfront.org/forum/showthread.php?t=388512
http://www.lewrockwell.com/paul/paul148.html (4th paragraph for the lazy)
http://www.nizkor.org/ftp.cgi/people/g/ftp.py?people/g/gannon.dan/1992/gannon.0793
http://www.offthekuff.com/mt/archives/007597.html
http://www.youtube.com/watch?v=s4QbJ3phEYs
I welcome dissent, but I think what bothers us is this.....it's like Grimm says, you can't tell what the rich are going to do with their money. And it's more than that. It's how the rich people get rich. I know I will probably get bombed for making him an example, but Bill Gates has given the world technology that benefits society. You just can't deny that. While the company's tactics have been less than noble, at times, he has given us something we can use to be more productive. Aren't we really bothered by the many out there who are pushing piles of currency, or commodities around, making huge sums of money, and they don't contribute anything in return. They don't give us cars, computers, food, or anything we can use. I'm getting old and I can't remember who said these things anymore, but someone once said, "the saddest day in a man's life, is the day he tries to get some money for nothing."
Everyone who attacks Ron Paul on his support of bringing back the Gold Standard is being a little rash to presume he means a return to the '1900s', all he is saying is that the US dollar has no value based backing behind it as a currency and it requires one to prevent the senseless spending that has lead to such a large deficit and precarious currency position in the first place.
The US has been writing bad checks on it's currency for several years now based of it's de facto status as currency of reserve and exchange, this allowed them to increase spending without balancing it's huge trade deficits, essentially borrowing from China and Japan (combined they hold about 2.1 trillion USD in reserve).
The US continued to import most of it's goods, meanwhile off-shoring and the dismantling of the manufacturing sectors has meant that the US economy has become reliant on services mostly sold to each other. CEOs got paid massive paychecks for essentially off shoring manufacturing operations, the US now basically imports back most of it's products, a computer made by Dell in Asia is an import not an export to the US.
This splits off into two now, with the sub-prime mortgage crises and investor panic the Federal Reserve needs to lower interest rates to contain the problem, however if it does that the dollar depreciates even more, so the Federal Reserve needs to increase interest rates to convince foreign reserve holders to continue buying and holding US dollars, and thus allow Washington to continue borrowing. This is because the US dollar has depreciated rapidly against all currencies, because people are buying less dollars now, seeing how the US has not addressed it's budgetary and deficit problems.
The question now is will those holding to US dollars continue to do so? No one is selling now because no one wants to induce a panic, many have been talking of propping up the US dollar so it doesn't continue its decline, however this is unrealistic, how much value are foreign governments and banks willing to back against a falling US dollar? 100 billion? 1000 billion?
You might be wondering how it lead to this, The Federal Reserve has been backing non wealth creation financial instruments for several years now which lead to the sub prime mortgage crisis instead of investment into capital creation manufacturing industry (think of gambling instead of proper investment in industry).
Expectation was that the war in Iraq would mean the US would control massive oil resources that would allow it to continue writing bad checks, however this assumption back fired with the instability in Iraq.
The Fed now is cutting interest rates further to provide more money for investors, more cuts are expected that will send the dollar falling even further. With that might come the jettison of dollar reserves and a switch into the Euro, and then a recession in the US economy.
Can China and Japan afford to dump dollars at a low? If they dump and buy Euros, are they taking a huge hit? I guess it's like owning an individual stock, you have to decide where it' going in the future. But, the more you own, the tougher the decision. With the history of the dollar bouncing back, aren't they more likely to stick with it. If they start, from this point on, stock-piling Euros, or equivalent, as a cash reserve, is that all bad? Some on you folks with economic backgounds lend a hand here, please. Thank you.
But then they risk holding on to dollar reserves that are quickly dwindling in value, the question is how long will they continue to buy into a currency that is quickly losing it's value? In essence they are basically stuck and locked in, if they start to offload their reserves they do not benefit at all.
But then there is the question of rising US national debt and paying them off that interest rate and if people will still lend money to the US government to offset its debt obligations, for which I suggest reading this:
From AP News- National Debt Grows $1 Million a Minute
Although the latest figures I saw, although I couldn't tell you where, was that China had a reserve of at least 1 trillion US dollars, and Japan almost as much.
I was listening to NPR this morning and I couldn't help note the irony of this. Historians say, in a democracy, the government usually echoes the people.
Well, personal credit card debt in the US is estimated at nearly a trillion dollars, or on average about 2200 dollars per household. Seems the citizens aren't learning much about deficit spending. It's also making the banks tons of money on interest.
I suspect people will argue that they need to borrow because of their economic circumstance, but that's not what I see in the people I know. Although I think it's crazy, I have friends living a lifestyle consistent with upper middle class, who are maxed out on several credit cards.
Anyhow, thanks again, I enjoyed your insight.
Both Japan and China hold both around 2.1 trillion USD in reserves, at they same time they hold US debt as the article says - "Japan is first with $586 billion, followed by China ($400 billion) and Britain ($244 billion). Saudi Arabia and other oil-exporting countries account for $123 billion, according to the Treasury."
The reason that most don't know about this is that it's not a political issue being put forward by either congress or presidential candidates. It's ridiculous quite frankly.
Being a physician, I agree with some of Paul's stances and disagree with others. Regardless, THE NATIONAL COST OF HEALTH CARE IS KILLING US! (no pun intended.
The employee health care benefits, paid by business, are crippling our competitiveness in the world market. Product liability insurance costs are crippling our competitiveness in the world market. How much do you think corporations in China and India are paying for these in comparison? About zip.
Paul and I agree......A NATIONAL HEALTH SERVICE WILL WORK, BUT ONLY IF YOU ARE WILLING TO ACCEPT MAJOR HEALTH CARE RATIONING AND POOR SERVICE.
Therefore, we are both against it.