Dec 12, 2007

The Impending Destruction of US Economy and Ron Paul's Solution

Economist and former assistant treasury secretary in the Reagan administration, Paul Craig Roberts, does not mince words in the article below. Recall that some Wall Street firms this week finally issued a warning of coming recession. (Yes, Don Surber, there is a recession coming). Roberts points out just who Washington and the Fed will support--and it will not be you, the American citizen or taxpayer. (In fact just yesterday the Fed compromised, lowering interest rates a quarter percent, which sent investors grumbling as too little.)

Meanwhile Ron Paul is the only presidential candidate consistently warning about the economy and taking on the Fed (interest rates and money supply) while offering the best solution for this problem: (1) stop the utopian global wars for "democracy" (costing $1 trillion thus far) per the neoconservative agenda (its not really about terrorism, but hegemony per their own blueprint), (2) eliminate the Income Tax (which would be the biggest economic stimulus package in US history), (3) reduce the size and scope of the federal government by eliminating useless and corrupt agencies (like Reagan on steroids), all of which would retrieve much of our freedoms.

Why should conservatives or republicans be against any of this, given the present economic danger? Do republicans really want to stop big government and limit it and stimulate the economy and lower taxes, or 'stay the course' into certain economic disaster? Republicans, being hijacked by the neoconservatives, have forgotten what made Reagan popular, which is the reason behind the "revolution" of Ron Paul as well. It was speeches like this:

In this present crisis, government is not the solution to our problem; government is the problem...It is my intention to curb the size and influence of the federal establishment.
--Ronald Reagan

And the same applies to the present. We will soon see what the republican electorate says, if they can be heard over the repetitious propaganda coming from the establishment to continue on the same course as the first neoconservative republican ever to hold the White House.

Meanwhile the lives of Americans hangs in the balance. The issue is now on the table and the people should demand it to be dealt with openly, whether republican or democrat.

Impending Destruction of the US Economy

Hubris and arrogance are too ensconced in Washington
for policymakers to be aware of the economic policy trap
in which they have placed the US economy. If the
subprime mortgage meltdown is half as bad as predicted,
low US interest rates will be required in order to
contain the crisis. But if the dollar’s plight is half
as bad as predicted, high US interest rates will be
required if foreigners are to continue to hold dollars
and to finance US budget and trade deficits.

Which will Washington sacrifice, the domestic
financial system and over-extended homeowners or its
ability to finance deficits?

The answer seems obvious. Everything will be
sacrificed in order to protect Washington’s ability to
borrow abroad. Without the ability to borrow abroad,
Washington cannot conduct its wars of aggression, and Americans cannot continue to
consume $800 billion dollars more each year than the
economy produces.