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Old 11-23-2008, 08:44 PM   #1
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Thumbs up THE AUSTRIANS WERE RIGHT ~ Ron Paul Statement 11/20/08

Ron Paul's Speeches And Statements ~ www.house.gov/paul

The Austrians Were Right 11/20/2008

Madame Speaker, many Americans are hoping the new administration will solve the economic problems we face. That’s not likely to happen, because the economic advisors to the new President have no more understanding of how to get us out of this mess than previous administrations and Congresses understood how the crisis was brought about in the first place.

Except for a rare few, Members of Congress are unaware of Austrian Free Market economics. For the last 80 years, the legislative, judiciary and executive branches of our government have been totally influenced by Keynesian economics. If they had had any understanding of the Austrian economic explanation of the business cycle, they would have never permitted the dangerous bubbles that always lead to painful corrections.

Today, a major economic crisis is unfolding. New government programs are started daily, and future plans are being made for even more. All are based on the belief that we’re in this mess because free-market capitalism and sound money failed. The obsession is with more spending, bailouts of bad investments, more debt, and further dollar debasement. Many are saying we need an international answer to our problems with the establishment of a world central bank and a single fiat reserve currency. These suggestions are merely more of the same policies that created our mess and are doomed to fail.

At least 90% of the cause for the financial crisis can be laid at the doorstep of the Federal Reserve. It is the manipulation of credit, the money supply, and interest rates that caused the various bubbles to form. Congress added fuel to the fire by various programs and institutions like the Community Reinvestment Act, Fannie Mae and Freddie Mac, FDIC, and HUD mandates, which were all backed up by aggressive court rulings.



Last edited by peaceandlove; 11-23-2008 at 11:06 PM.
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Old 11-24-2008, 12:40 AM   #2
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Default Re: THE AUSTRIANS WERE RIGHT ~ Ron Paul Statement 11/20/08

austrians always know it better: arnie, freud, reich, adolf, porsche, mozart
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Old 11-24-2008, 04:01 AM   #3
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Default Re: THE AUSTRIANS WERE RIGHT ~ Ron Paul Statement 11/20/08

The Keynesian model is based on fractional reserve banking and that's how our Federal Reserve operates. This means if you deposit $10,000 in your bank then your bank can turn around and lend out 9x that amount as if it had that money. When people are unable to pay, it collapses. Then we have the Fed manipulating interest rates (that's NOT free market) by keeping them low artificially so people will borrow more. Our economy depends on people going into debt. Is that sustainable? At what point are people in so much debt they can't pay? It's nothing more than a giant ponzi scheme. Total fraud.

Chances are the money you "borrowed" to buy your house didn't even exist except on your loan documents. Here's a great video- Money as Debt http://video.google.com/videoplay?do...arch&plindex=0
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