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Capitalism Without Capital?
Ron Paul
Thursday, Oct 16, 2008
It has been long understood that our federal government is going deeper into debt, consistently raising the debt ceiling and demonstrating no fiscal restraint. In recent years, debt ceiling increases have been placed in “must pass” legislation as a means to guarantee that Republicans as well as Democrats would vote for them when Congress was under Republican control.
We also know our nation’s “negative savings rate” reflects the habits of private citizens, showing those habits to be not tremendously different than the habits of the public sector. Yet, the signs of decline are becoming ever more apparent. So apparent, in fact, that it seems unlikely that bailouts or other gimmicks will have even short-term success. More inflation, and creating moral hazard by bailing out egregious offenders, is a recipe for disaster. These activities can seem to provide some short-term relief, but it seems we are now at a significant crisis point, where monetary policy gimmicks don’t provide the band-aids they did in the past.
Not only is our nation on the verge of bankruptcy, but so are its people and private institutions. We are now repeatedly hearing about businesses “needing to access the credit market to make payroll.” This is an unmistakable sign of more dire consequences ahead for the economy. If businesses must borrow just to make payroll, this is evidence of a severe undercapitalization that cannot be sustained, even for the short run.
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Couple these facts with items such as the explosion of the “payday loan” industry and the unmasking of the false sense of economic well-being is nearly complete. These payday loan companies use preferred access to easy credit to inject cash into the hands of the working poor. They are nearly always set up in lower-income neighborhoods. These people, who are struggling to buy food and pay rent, get addicted to the credit drug. Their standard of living is only further depressed by the interest payments on these loans that make them profitable to their providers. Thus, the recipients are left even less capable of paying for items such as food and housing in the long run, without using this credit again and again.
These people are often the very ones being paid by businesses who “borrow to make payroll.” This is the dark underbelly of the fiat money, borrow-and-spend economy this nation has been building. As the government takes over more and more functions of the economy many see the rise of socialism as an antidote to this failure of “capitalism.” However, the fact remains that our economy has been increasingly running on debt, not capital. Capitalism does not exist without capital and debt is not, has never been and will never be a form of capital. Only now are we seeing the more dire implications of an economy without capital.
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October 16th, 2008 at 5:42 am
I LOVE IT!
October 16th, 2008 at 5:43 am
RON HITS THE NAIL ON THE HEAD ONCE AGAIN!
October 16th, 2008 at 6:26 am
Why can’t people turn to a real leader that know what is going on? Why do people follow the other two wind bags?! God help this country we are going to need it!
October 16th, 2008 at 6:55 am
Mr. Paul is correct!
Has been correct in the past!
.. and this is why the ‘power that be’ will not allow Mr. Paul the opportunity to FIX the MESS!
May the Lord Bless Mr. Paul, his Clan and all the Truth and Freedom Seekers!
letter from an old soldier..
October 16th, 2008 at 7:08 am
Stess to as many as you can to vote for 3rd party, independent candidates. No more ping pong.
October 16th, 2008 at 7:37 am
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!WRITE IN RON PAUL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
October 16th, 2008 at 8:15 am
Words from Chairman George Soros:
US consumers will not be able to play the role of the engine of the world economy if world recession occurs. The US administration must stimulate the demand.
“Since there is global warming and energy dependence threatening the USA, the next administration will need to direct all development programs on the energy saving, the development of alternative energy and the construction of green infrastructure,” Soros said.
The United States and a part of Europe will have nationalized banks and huge debts. China will become the new global financial empire.
“The USA’s influence has already begun to decline. For the past 25 years, we have been running a constant current account deficit. The Chinese and the oil-producing countries have been running a surplus. We have consumed more than we produced. While we have run up debt, they have acquired wealth with their savings. Increasingly, the Chinese will own a lot more of the world because they will be converting their dollar reserves and US government bonds into real assets. The power shift towards Asia will occur as a result of the sins which America committed during the recent 25 years,” Soros said.
I think Obama is tuned in to Soros’ Red Book on economy!
October 16th, 2008 at 8:49 am
Yes Mr. Paul your right. When you going to do something instead of just stating facts we already logical know about our screwed up banking system. Which sadly, I enjoy watching fall now. The system design to ruin people so they cant get into good paying jobs with bad credit scores. Where students are forced to get 30k in debt so they can get a decent foot in the door. When are you going to MAKE your CHANGE or gather more of a team?
October 16th, 2008 at 9:07 am
http://video.google.com/videop.....7695921912
One Video every person should watch how our currency was created and used and who and why people and Governments were killed and over thrown for reasons of preserving this currency exchange. Its Profits they are controlling and protecting. What ever happened to the “Green Back” Dollar and why European Banks done what they could do to end the Greenback Dollar, And bring on Loans and Interst. Nothing more then Modern day Slavery since loans are made on paper with no actual real currency. They Put nothing up for the so-called Loan where you put up everything of value. Same as this Bailout Bill. Knowledge is and can be a weapon. This is and can be looked at “Corruption” within Our Governments, in this reality.
October 16th, 2008 at 9:13 am
statue of liberty repr4esents this.. it is actually queen semerimis babylonian queen of the slaves. how apt we find out this at the end
October 16th, 2008 at 9:16 am
“When you going to do something instead of just stating facts we already logical know about our screwed up banking system.”
This is why I wonder if RP’s roll with the NWO is to just be a fear monger? It’s great to have someone spouting off but what effect is it really having? Other than a few more people flocking to an internet board like this, none that I can see.
The powerful NWO has us all in its grip. Just try to stay out of its way and be independent, including not gettng yourself too far in debt. F the NWO!!
October 16th, 2008 at 9:49 am
I NEED YOUR HELP, Has anyone else In the midwest “or in the states period” recieved a Propaganda DVD in the mail titled “OBSESSION… Radical islams war against the west” this is soo rediculous… everyone at my work has recieved it in the mail and im concerned… Are people BUYING INTO THIS CRAP? the cover says “as seen on CNN and FOX NEWS… LOL imagine that huh… ALEX PLZ ASK YOUR LISTENERS ABOUT THIS MAJOR BRAINWASHING PROPAGANDA campaing… its put out by the Clarion Fund 255 w 36th street suite 800 new york, NY 10018 tel: 646.502.8380
October 16th, 2008 at 10:26 am
Look, they came up with the 16th Amendment in order to tax the people. It would not pass.
They came up with the 17th Amendment, fraudulently claimed to have had it ratified, then packed the Senate with Progressives in order to pass the 16th, or income tax amendment.
Then the Fed Act so they could control the money and its value.
As long as the majority of Joe the Plumbers and their respective employees are willing to vote themselves a bigger share of everybody else’s paycheck, this system will continue to crash until population control is finally exerted by the one limiting factor that cannot be artificially inflated and that is the amount of food available and the means to produce it.
I think the cure for the individual household is to return to living like Proverbs tells us. Borrow no money, pay off all debts, realize that your OWN HOME is the number one economy you need to be worried about. The banker bastards want you indebted to them as does the government. Start recapitilizing your own economies. This will free you from the burden of interest, give you the comfort of knowing you have a failsafe mechanism in place, and it will drain the Keynesian bankers dry from being able to squeeze your life the way they do. No, I do not have a complete coherent plan in place, but I think maybe learning to live without the services of banks and credit might not be the worst thing the individual could do. Let the banks return to the business of helping companies expand when they are in need of excess capital for the unusual opporunity instead of being in the middle and receiving a piece of every transaction that takes place.
The ONLY reason the banks have been able to exert such force over the economy at large is because the individual has allowed themselves to be lured by the siren song of easy credit and the idea that you have to have what idiot credit citizen down the street has.
Just my opinion. -Tim
October 16th, 2008 at 10:50 am
Hell my credit rating is one of the worst possible in History, i hate credit and have tarnished i on purpous for my own reasons, cause i pay cash. But I still get offers in mail for Credit cards daily with a score of like 91? ahahahhahahahhah
October 16th, 2008 at 12:43 pm
I will write you in Ron Paul, or Bob Barr otherwise.
October 16th, 2008 at 3:17 pm
realitybase:wtf? he has spent his life trying to get the message across…what do you want him to do? take an ak and shoot people??? actually WTF have YOU done? I say that with all due respect. I am at least glad you are visiting this website to learn and I commend you for that.
theresnofed: Yes, the dvd’s are out. more propaganda to bring hate.
Have any of you seen tho old star trek where hate got into their ship, and it wasnt until they realized it that they kept from total destruction? They laughed.
These blogs need more jokes and laughter.. not hate.
October 16th, 2008 at 3:37 pm
Np doubt the poor are a good investment for greed with payday loans. Off the topic, I watched a u tube claiming Ron Paul was a free mason. Any one else know if this is true.
http://ca.youtube.com/watch?v=yMg-q19RJck
October 16th, 2008 at 4:13 pm
Just think what could have been had Ron Paul been nominated.
October 16th, 2008 at 5:52 pm
#18.Are you that surpised?!Humans are just talking monkeys.Some of us are aware of this,some of us talking monkeys.That’s why all are earlier books are about WHEN IT WILL ALL END.It doesn’t have to,but yeah, it will.We’re all f#cked.If you want it to.
October 16th, 2008 at 6:27 pm
Wow, this site works!Next time ya talk to alex,ask him why I’m banned from infowars.Tell him I only make a pitance.And have all the gravy and tea a youngling like he should have. f--- America!!I’ve been kicked off his site all day.That’s how it works here though.You show up,much like in birth,and they blame ya for s--- your not aware of.Like covert facisim.I wasn’t sensetive to your(infoWars’) covert fasisim.Appy polly loggies.
October 17th, 2008 at 6:35 am
“They want a fascist planet with the superwealthy ruling it all
Since we’re too independent, America must be led to fall
When our credit’s been exhausted to subdue the Middle East,
They’ll install our debtor nation in the body of The Beast
Traitor…Dare call it treason”
http://www.youtube.com/watch?v=uw5dP5gy2Vs
–The Cornbread Mafia
October 17th, 2008 at 9:35 am
Comments here fall into three categories:
Ron Paul doesn’t know what he’s talking about.
Ron Paul knows what he’s talking about.
Does Ron Paul know what he’s talking about?
I don’t know what I’m talking about.
I know what I’m talking about.
Do I know what I’m talking about?
You don’t know what you’re talking about
You know what you’re talking about.
Do you know what you’re talking about?
Today Dr. Paul is calling for an audit of the Federal Reserve and for voting out of office those who are facilitating the highway robbery…. Unfortunately, the real perpetrators aren’t elected to their positions of power.
For the sake of clarity, please refrain from referring to the actions of ‘Americans’ in general.
It is over simplification to the point of being offensive.
I am a ‘native’ citizen of the United State of America.
I did NOT cause this economic crisis.
I am, however, being victimized by the policies, plans and power moves of person over whom I have no influence whatsoever.
Suggestion to those chatting here:
Get ready for ‘hard’ martial law.
Get ready for food shortages.
Get ready for rolling power outages.
Get ready for needing 3 hours to walk what used to be a 15 minute trip in a car.
Get ready for medical shortages.
Get ready for cocktail vaccinations that KILL.
Get ready for angry mobs.
In other words:
Get ready for the game our masters have designed.