Only the converted understand him, others are puzzled!
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RP is talking about just dissolving the debt...making it just go away. I agree because the people receiving the profits are illegal entities in the first place....remember the Magna Carta....?
..TM7
That is the Austrian Business Cycle. The Federal reserve pumps money into the economy along with low interest rates. This sparks mal investment with unsustainable enterprises that should never have been made. When inflation heats up as a symptom, interest rates are increased and the money spigot is closed, these unsustainable business are exposed and fail and you have a crash. This is a part of the cleansing process of a free economy. It is Adam Smith's "invisible hand" at work. When the government does not allow the liquidation of debt by bailing out businesses and printing money, they are preventing the recovery as the malinvestment is left in the economy. It prolongs the recession and makes it worse in the long run. That is what we are experiencing now. When the dot coms crashed, if Greenspan had left things alone, the malinvestment would have been liquified and we would have been in a new economy now. He caused the housing bubble. Bernanke is doing the same thing. Ron Paul is a whiz when it comes to economics and sometimes speaks over the peoples heads, although he does try to keep his message simple.
In the panic of 1919, the government did nothing except cut spending to match reduced revenues. This downturn was worse that the 1929 crash. By allowing the debt to be liquefied, the economy was in full recover in a year. The government intervened in the crash of 1929, Propping up failed businesses, preventing prices from falling, and other socialist themes giving us the great depression.
