Wednesday, Apr 23, 2008
Very short movie, introducing Ron Paul
CNBC: A transfer of wealth from the poor to the wealthy
Thanks Malct. I thought this relevant for the front page. I'll be posting a similar audiotape on Sat morning. This film is just 1.5mins long and a great intro to a great man who freely espouses the monetary principles I've been discussing recently.
Posted by planning4acrash @ 10:09 PM (1486 views) Add Comment
17 Comments
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1. alan said...
Super. This is one of the most succinct analyses of the American monetary system that I've heard in a while.
Can't we import him to the UK?
2. japanese uncle said...
This is unarguably the voice of reason.
3. drewster said...
Excellent clip. Ron Paul would have been an amazing President and his understanding of the economic system is beyond most of us, and far above that of any other presidential candidates. Sadly at the age of 72 (older than John McCain) he's not likely to be a contender for the 2012 elections. On the off chance that John McCain pops his clogs before the election then Ron Paul might have a chance.
4. James said...
Ron Paul is an unelectable idiot.
5. Rajd said...
The only politician I've ever heard talk the truth about the fake fiat monetary system. Unfortunately, that's the reason why he'll never make it to the Whitehouse. Too many politicians and their friends would have too much to lose if he was to get in and make reforms.
6. Muddlingthrough said...
Word of caution: Ron Paul also believes in Creationism and denies the validity of evolution theory. I'm not saying that makes him wrong on monetary system but descriptions like "voice of reason" and "great man" seem a little OTT. "Import him to the UK"? Let's just agree with him on monetary theory and leave the man and his hard core right wing religious fundamentalist supporters in the US.
7. Dbc Reed said...
Returning to the Gold Standard which is what Ron Paul proposes is nonsensical. You cannot constrict the flow of credit artificially without there being insufficent money in circulation to buy all the goods and services available: goods and services will contract to fit the tiny money supply. Result: 30% unemployment like the 30's. A more practicable policy is for the banks to issue plenty of cheap credit but stop it being diverted into property by a tax like the old Schedule A in the UK (abolished in 1964) which taxed ,out of earned and unearned income, how much owner occupiers could get if they rented out their houses.Better is land value tax which taxes the real cause of house price inflation; that the value of the land the house stands on is going up not the value of the bricks and mortar which will naturally deteriorate: this stops developers sitting on vast land banks ,getting loans on empty land,being rewarded for articially restricting the supply of houses.
You can get an idea of the value of bricks and mortar by googling the Association of British Insurers (abi)house re-build insurance value web-site .Deduct this value from the asking price and whats left is the land value.In places in London it is nearly 100% of the asking-price becausedevelopers are keen to knock houses down to de-clutter the sites,
If private banks stick in your craw, then the answer is to nationalise all of them.We are nearly there already,since the banks have effectively gone on strike in order to hoard money ( So we have two horses of the financial Apocalypse : land hoarding and the hoarding of money by banks).As banks create money by making loans without stopping people accessing their existing accounts , Sorry pal we ve loaned your deposit to someone else, your account's empty .This does n't happen does it?It should do because the amount they keep on deposit is a fraction of the value of their loans (fractional banking). The banking system being a gigantic scam , it would be sensible to nationalise the lot of it,using interest rates as a tax on money not to reward banks for lending money into existenceSo what with a tax on land values and a tax on the creation of credit, you'd have a viable economic sytem. it is the present alledged system that is fantastical.
DBC Reed
8. Bananasplit said...
And nobody interrupted his assessment of the corrupt capitalism that harms only the poor and less well off.
9. layers said...
And he got to mention the MIC!
10. mark wadsworth said...
Ron Paul rocks, but does he mention that Land Value Tax is the least worst tax?
11. Sneaky said...
There is a big misunderstanding in most of the "sound money" analysis around. The central banks do NOT print money endlessly. It is the banking system itself which multiplies up the base money issued by CB's. Fractional banking inherently leads to an expanding money supply. If you search out the data on the St Louis Fed website, you will see that US base money has actually been falling for years. The reason that the money supply is expanding so fast is that reserve ratios were lowered to such a low level that the CB's effectively lost control of the money supply. Also, expansion of the money supply was needed to allow for the integration of China and the other emerging economies into the global financial system.
Excessive money supply inflation is NOT a good thing, when it exceeds the demand for it. The trouble is that the supply of money is now driven by commercial banks' loan businesses, and their incentive is not to meet demand, but to issue as much as they can to secure bonuses. We have an over-supply of money, over and above the increased demand, and that is what caused mis-allocation of capital, the housing bubble and thus the credit bust. Subprime is actually just a pawn in a much larger game.
Ron Paul is a great guy but seemingly has not quite understood this facet of monetary economics. It's a tough subject, but it's important to get these points right if one is standing for President on a "sound money" platform.
12. malct said...
thanks p4ac
some positive comments to.
shame it was late in the day. ah well.
13. Planning4acrash said...
DBC Reed, you are wrong, wrong, wrong! The value of money would go up so that all money in circulation would equal the goods in circulation. Then the value of currency would always be relative to the size of the economy. There can never be a shortage of currency, if one bar of gold represented the world economy, that bar of gold would be worth the world economy!! If you print a trillion trillion paper bank notes, then each bank note is worth one trillion trillionth of the world economy. Each bank note will have been worth one millionth of the world economy if a million bank notes existed previously.
Bankers need to keep printing to rob the middle class of their wealth to ensure that they and the ruling classes have a grip on the economy. That's all.
I didn't know that Ron Paul was a creationist, but that is little surprise given that he is in his 70's and from Texas! The fact is, that he believes in the constitution, freedom, stable economics and a small state, he believes in not meddling with the middle east etc, he's essentially a pacafist. Compared with Bush tho, who uses god as an excuse to invade Iraq, he is a religious moderate!!
14. malct said...
sneaky @ 11 - I hear what you say and agree with most of it, good clarification though short on fundamentals.
but this
"Ron Paul is a great guy but seemingly has not quite understood this facet of monetary economics. It's a tough subject, but it's important to get these points right if one is standing for President on a "sound money" platform."
So what did BUSH get right ? probably nothing and he's president twice over. yuk
America needs you!
Sadly Aarron Russo died of cancer he was doing a great job of waking people up especially via "America, from Freedom to Fascism" the film, still available free.
15. Crutchley said...
P4AC - "all money in circulation would equal the goods in circulation."
I tend to agree with Marx's assertion that Labour has a factor in the value of money - not just goods
16. Dbc Reed said...
planning for crash (why are you all anonymous on this site/ its not that subversive is it?)has got his elasticity of demand in a twist.Chancellors put up interest rates to slow demand for goods and services by restricting credit,and lower interest rates to expand credit and increase economic activity.Thats just the way it is:the money supply stimulates production/consumpton. The weird bit is that the Chancellor does not roll the printing presses as in popular myth: the banks do the job by pouring out more loans because they create the money supply.They get to keep the interest payments (minus any they pay out to the fractional number of depositors) though these are ,by rights, an ideal source of state revenue.
Unfortunately Mark (who is recognisable by using his own name), Paul has disappointed a lot of his libertarian fans by not endorsing LVT .It was Milton Friedman who called LVT the least worst tax,
much to the embarrassment of some of your erstwhile colleagues in the Labour Land Campaign who did n't like his name being mentioned (Don't ask what libertarian firebrand Mark Wadsworth was doing in this highly politically correct organisation: he lasted a surprisingly long time.)
DBC Reed
17. malct said...
16. Dbc Reed said...
planning for crash (why are you all anonymous on this site/ its not that subversive is it?)
no, well yes, but the owners of the site enjoy the income it generates and have compiled a great database of potential inmates.
Torture? no they didn't torture us to get this information, ah well, perhaps we didn't feel comfortable, but that's not torture is it?
anyway who the H£ll is Dbc Reed for dogs sake?