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Author Topic: Ron Paul on Euro debt  (Read 2609 times)

Offline Peter1469

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Ron Paul on Euro debt
« on: November 15, 2011, 04:58:55 PM »
via zerohedge
From Ron Paul
European Debt Crisis Threatens the Dollar

The global economic situation is becoming more dire every day.  Approximately half of all US banks have significant exposure to the debt crisis in Europe.  Much more dangerous for the US taxpayer is the dollar’s status as reserve currency for the world, and the US Federal Reserve’s status as the lender of last resort.  As we’ve learned in recent disclosures, this has not only benefitted companies like AIG, the auto industry and various US banks, but multiple foreign central banks as they have run into trouble.  Nothing has been solved, however, by offering up the productivity of Americans as a sacrificial lamb.  Greece is set to be the first domino to fall in the string of European economies at risk.  Rather than learning from Greece’s terrible example of an over-consuming public sector and drowning private sector, what is more likely from our politicians is an eventual bailout of European investors.

The US has a relatively small exposure to overwhelmed Greek banks, but much larger economies in Europe are set to follow and that will have serious implications for US banks.  Greece is technically small enough to bail out.  Italy is not.  Germany is not.  France is not.  It is estimated that US banks have over a trillion dollars tied up in at-risk German and French banks.  Because the urge to paper over the debt with more credit is so strong, the collapse of the Euro is imminent.  Will the Fed be held responsible if the Euro brings the US dollar down with it?

The most disingenuous aspect of the narrative about the European sovereign debt crisis is that entire economies will collapse if more resources are not bilked from productive people around the world.  This is untrue.  Tough times are coming for the banks, to be sure, but free people always find a way back to prosperity if the politicians leave them alone.  Communities within Greece are coming together and forming barter systems because they know the Euro is becoming unstable.  Greeks are learning how to engage in commerce with each other, without the use of fiat currency controlled by central banks.  In other words, they are rediscovering what money really is, and they are trading with each other in ways that cannot be controlled, manipulated, squandered, inflated away and generally ruined by corrupt bankers and the politicians that enable them.  Farmers will still grow food, mechanics will still fix cars, people will still make things and exchange them with each other.  No banker, no politician can stop that by destroying one medium of exchange.  People will find or create another medium of exchange.

Unfortunately when politicians try to monopolize currency with legal tender laws, the people find it harder and harder to survive the inflation and taxation to which they are subjected.  Bankers should take their dreaded haircut rather than making innocent people pay for their mistakes.   The losses should be limited and liquidated, rather than perpetuated and rewarded.  This is the only way we can recover.
Government debt is often considered rock solid because it is backed by a government’s ability to forcibly extract interest payments out of the public.  The public is increasingly unwilling to be bilked to make bankers whole.  The riots and the violence in Greece should tell us something about the sustainability of this system.

If we continue to bail out banks and bankers so they can continue to lose money, if we cavalierly put this burden on the taxpayer, it is all too predictable what will happen here.


http://silveristhenew.com/

Offline Conley

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Re: Ron Paul on Euro debt
« Reply #1 on: November 15, 2011, 05:28:03 PM »
Quote
Communities within Greece are coming together and forming barter systems because they know the Euro is becoming unstable.  Greeks are learning how to engage in commerce with each other, without the use of fiat currency controlled by central banks.  In other words, they are rediscovering what money really is, and they are trading with each other in ways that cannot be controlled, manipulated, squandered, inflated away and generally ruined by corrupt bankers and the politicians that enable them.  Farmers will still grow food, mechanics will still fix cars, people will still make things and exchange them with each other.  No banker, no politician can stop that by destroying one medium of exchange.  People will find or create another medium of exchange.

This sounds a bit idyllic but when confronted with no other options it is definitely appealing. Certainly no one wants to be left holding worthless currency, and in my neighborhood we already trade services depending on our skills (roofer, computer guy, etc.) It's just a larger version of that. Works out better for us since there's no taxes on it either. Keep the pols out of it.
Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. -Eisenhower

Offline GRUMPY

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Re: Ron Paul on Euro debt
« Reply #2 on: November 15, 2011, 06:47:56 PM »
Quote
Communities within Greece are coming together and forming barter systems because they know the Euro is becoming unstable.  Greeks are learning how to engage in commerce with each other, without the use of fiat currency controlled by central banks.  In other words, they are rediscovering what money really is, and they are trading with each other in ways that cannot be controlled, manipulated, squandered, inflated away and generally ruined by corrupt bankers and the politicians that enable them.  Farmers will still grow food, mechanics will still fix cars, people will still make things and exchange them with each other.  No banker, no politician can stop that by destroying one medium of exchange.  People will find or create another medium of exchange.

This sounds a bit idyllic but when confronted with no other options it is definitely appealing. Certainly no one wants to be left holding worthless currency, and in my neighborhood we already trade services depending on our skills (roofer, computer guy, etc.) It's just a larger version of that. Works out better for us since there's no taxes on it either. Keep the pols out of it.
not idyllic at all, this is exactly what must be done and what tarp and all of the bailouts avoid pushing the inevitable down the road until there is no road....if only paul could grace us with a definition of torture when ranting about torture.....

Offline Conley

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Re: Ron Paul on Euro debt
« Reply #3 on: November 15, 2011, 06:53:12 PM »
Bartering works for small purchases, not so sure about large ones...
Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. -Eisenhower

Offline Mister D

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Re: Ron Paul on Euro debt
« Reply #4 on: November 15, 2011, 07:03:17 PM »
Bartering works for small purchases, not so sure about large ones...

I certainly don't know the ins and outs but it must have worked for all manner of purchases in the past. A money economy is a relatively new thing. I believe it had its start in the late Middle Ages or soon thereafter.
"Pushing people forward simply because of their colour, irrespective of merit, would be most unfortunate and would of course lead to disaster. It would mean that Rhodesia would then develop into a kind of banana republic where the country would in no time be bankrupt."


~Ian Smith

Offline Mister D

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Re: Ron Paul on Euro debt
« Reply #5 on: November 15, 2011, 07:04:58 PM »
Quote
Communities within Greece are coming together and forming barter systems because they know the Euro is becoming unstable.  Greeks are learning how to engage in commerce with each other, without the use of fiat currency controlled by central banks.  In other words, they are rediscovering what money really is, and they are trading with each other in ways that cannot be controlled, manipulated, squandered, inflated away and generally ruined by corrupt bankers and the politicians that enable them.  Farmers will still grow food, mechanics will still fix cars, people will still make things and exchange them with each other.  No banker, no politician can stop that by destroying one medium of exchange.  People will find or create another medium of exchange.

This sounds a bit idyllic but when confronted with no other options it is definitely appealing. Certainly no one wants to be left holding worthless currency, and in my neighborhood we already trade services depending on our skills (roofer, computer guy, etc.) It's just a larger version of that. Works out better for us since there's no taxes on it either. Keep the pols out of it.
not idyllic at all, this is exactly what must be done and what tarp and all of the bailouts avoid pushing the inevitable down the road until there is no road....if only paul could grace us with a definition of torture when ranting about torture.....

I'm so tired of the torture crap. So what is some Arab terrorists were water boarded.
"Pushing people forward simply because of their colour, irrespective of merit, would be most unfortunate and would of course lead to disaster. It would mean that Rhodesia would then develop into a kind of banana republic where the country would in no time be bankrupt."


~Ian Smith

Offline Conley

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Re: Ron Paul on Euro debt
« Reply #6 on: November 15, 2011, 07:06:54 PM »
Bartering works for small purchases, not so sure about large ones...

I certainly don't know the ins and outs but it must have worked for all manner of purchases in the past. A money economy is a relatively new thing. I believe it had its start in the late Middle Ages or soon thereafter.

You want a sack of potatoes? No problem. You want to buy a new laptop? Going to be tough :D
Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. -Eisenhower

Offline Mister D

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Re: Ron Paul on Euro debt
« Reply #7 on: November 15, 2011, 07:36:01 PM »
Bartering works for small purchases, not so sure about large ones...

I certainly don't know the ins and outs but it must have worked for all manner of purchases in the past. A money economy is a relatively new thing. I believe it had its start in the late Middle Ages or soon thereafter.

You want a sack of potatoes? No problem. You want to buy a new laptop? Going to be tough :D

 ;D True. Society and the economy have become much more complex.
"Pushing people forward simply because of their colour, irrespective of merit, would be most unfortunate and would of course lead to disaster. It would mean that Rhodesia would then develop into a kind of banana republic where the country would in no time be bankrupt."


~Ian Smith

Offline Mister D

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Re: Ron Paul on Euro debt
« Reply #8 on: November 15, 2011, 07:37:08 PM »
Don't forget that a money economy and traditional economies have existed side by side.
"Pushing people forward simply because of their colour, irrespective of merit, would be most unfortunate and would of course lead to disaster. It would mean that Rhodesia would then develop into a kind of banana republic where the country would in no time be bankrupt."


~Ian Smith

Offline Peter1469

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Re: Ron Paul on Euro debt
« Reply #9 on: November 15, 2011, 10:19:58 PM »
Quote
Communities within Greece are coming together and forming barter systems because they know the Euro is becoming unstable.  Greeks are learning how to engage in commerce with each other, without the use of fiat currency controlled by central banks.  In other words, they are rediscovering what money really is, and they are trading with each other in ways that cannot be controlled, manipulated, squandered, inflated away and generally ruined by corrupt bankers and the politicians that enable them.  Farmers will still grow food, mechanics will still fix cars, people will still make things and exchange them with each other.  No banker, no politician can stop that by destroying one medium of exchange.  People will find or create another medium of exchange.

This sounds a bit idyllic but when confronted with no other options it is definitely appealing. Certainly no one wants to be left holding worthless currency, and in my neighborhood we already trade services depending on our skills (roofer, computer guy, etc.) It's just a larger version of that. Works out better for us since there's no taxes on it either. Keep the pols out of it.
not idyllic at all, this is exactly what must be done and what tarp and all of the bailouts avoid pushing the inevitable down the road until there is no road....if only paul could grace us with a definition of torture when ranting about torture.....

I'm so tired of the torture crap. So what is some Arab terrorists were water boarded.

Yes, it is a complete non-issue for a people who are spending way much more money than they can possibly pay off.  It is like a person not working asking the State to pay his electricity bill. 

 


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