Ron Paul Only One Prepared to Stop America's Pending Economic Crash

[Bradley in DC]

http://www.usaelectionpolls.com/2008/candidates/Ron-Paul.html

Ron Paul Only One Prepared to Stop America's Pending Economic Crash
August 2, 2007

In a day and time that foreclosure numbers are soaring and the grim reaper of adjustable rate mortgages finds a plentiful harvest for his sickle, a pending economic crash is inevitable. While there are still those who champion the growth in the job market and cite the numbers of jobs added on a monthly basis, even the staunchest believers in the notion that America is in a fiscal upswing are beginning to sound a bit shrill.

Thus it is not surprising that those who oppose the ideas of pandering to the public sentiment via the implementation of short-sighted and quite possibly short lived social reforms and programs that make a segment of the population feel good right now, but carry little foresight for the fiscal as well as societal needs for the future, are looking for a hero.

There is only one man who is willing to stand up against the practices so reminiscent of the fiscal policies associated with Hungary’s Goulash Communism: Ron Paul! If we may believe the findings of USA Election Polls, the incumbent representative from Texas’ 14th district which encompasses Galveston as well as other southern Greater Houston areas alongside the Gulf of Mexico, is offering a message that makes sense to some voters.

While only sporting low single digits in the January to July poll listings, the numbers are showing a general increase, and those convinced that only libertarian principles coupled with republican know-how will avoid the crash – or at least lessen its impact – bank on Ron Paul to make it happen.

References:

World Debt
Global Research
IM Diversity - Part 1
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[Kregener]

Not even Ron Paul can stop the coming crash.

[Slugg]

Not even Ron Paul can stop the coming crash.

Perhaps, but I'd rather have him in office to help pull us out without another Roosevelt fiasco...it could be very short lived...and a perfect time to reform our currency situation.

[briatx]

Nothing like a good old world economic depression to justify a world war.

I'm trying to decide if the people in charge are ignorant, malevolent, or just so greedy they're blind. Maybe they think they've gotten away with it so long that nothing will happen, the government will bail them out.

But who bails out the government?

[MsDoodahs]

But who bails out the government?

WE DO.

They (the men with the guns, otherwise known as "government," also known as "the state") put the squeeze on the taxpayer.

I saw a thread (maybe in General?) about New Orleans and HUGE tax increase being implemented there.

That's how the gov't bails itself out of everything it gets itself into.

The state does not do a thing to create wealth.

The state takes wealth and redistibutes it - including redistribution to those who work for the state.

When the state needs more money, it takes that money from us - through force - up to and including death if we don't comply. :mad:

[Bradley in DC]

WE DO.

They (the men with the guns, otherwise known as "government," also known as "the state") put the squeeze on the taxpayer.

I saw a thread (maybe in General?) about New Orleans and HUGE tax increase being implemented there.

That's how the gov't bails itself out of everything it gets itself into.

The state does not do a thing to create wealth.

The state takes wealth and redistibutes it - including redistribution to those who work for the state.

When the state needs more money, it takes that money from us - through force - up to and including death if we don't comply. :mad:

Agree with all except that the state can create conditions that make wealth creation easier: Rule of Law, enforcing contracts, etc.

[MsDoodahs]

Agree with all except that the state can create conditions that make wealth creation easier: Rule of Law, enforcing contracts, etc.

As well as conditions that make wealth creation vastly more difficult: morass of regulation comes to mind...

[michaelwise]

Our current economic policy needs an enema.

[bygone]

Our current economic policy needs an enema.

LOL.

I think we need something stronger:

http://en.wikipedia.org/wiki/Magnesium_citrate

[Bradley in DC]

As well as conditions that make wealth creation vastly more difficult: morass of regulation comes to mind...

Some good background material:

The Enterprise of Law: Justice without the State (Bruce Benson)

Freedom and the Law (Bruno Leoni) and especially

Law and Revolution (Berman)

[BarryDonegan]

he could fix it AFTER the crash

[Cowlesy]

There is absolutely a pending economic crash.

Many people on the Street are saying that the subprime fallout is contained to just subprime, but we are seeing default rates increase all levels of credit. The real issue is many hedge funds took massive bets on MBS/CLOs/CDOs; and 2 from the reputable firm Bear Stearns have already completely imploded. We thought this may have been local only to a few risky funds, but there are others freezing redemption rights, investment banks who provided debt for private equity firm LBOs can't sell the debt even as rates as high as LIBOR + 600. There is even a rumor that 1 Private Equity firm (small, $3bln AUM) is looking to restructure their organization as many of their levered to the hilt portfolio companies are getting squeezed on their FCF to debt payments. The USD has depreciated to the point where the lagging effects of price increases caused by increases in foreign inputs is beginning to become evident.

It's a scary time in the market right now. The only upsides are that other global markets are doing okay, and their valuations (spare China) are not out of control like dot.com in the late 1990's.

You can be certain that there will be many more hedge funds that will implode wiping out billions and billions of capital---let's hope it doesn't spread to Banks (I'm afraid it will) and PE firms. As one hedge fund executive said, "Any boom has crevices for the cockroaches of capitalism to hide in".

[Johnnybags]

tied to American mtg difficulty? They had to put a rescue package together 10 times larger than the company market cap i heard? If German banks are in deep, so are American banks. They are hiding the news thus far.

[Cowlesy]

It goes beyond the mortgage market into the entire credit market and the derivative products that are now essentially worthless. There BSHGSCSM fund, or Bear Stearns High-Grade Structured Credit Strategies Master Fund as well as another one (with another easy-to-remember acronym) have filed for Bankruptcy protection.

A lot of the I-Banks who have agreed to finance these big LBO's (a great one that's out in the public spotlight is Cerberus' buyout of Chrysler) can't sell the debt and are forced to wear the bridge financing. What hasn't happened yet is that they've placed a value on any of this debt, but the whisper is a LOT of it is underwater right now.

Every professional with exposure is going to clean their kitchen (if they can) before the general public really understands what is going on.

[Bradley in DC]

There is absolutely a pending economic crash.

Many people on the Street are saying that the subprime fallout is contained to just subprime, but we are seeing default rates increase all levels of credit. The real issue is many hedge funds took massive bets on MBS/CLOs/CDOs; and 2 from the reputable firm Bear Stearns have already completely imploded. We thought this may have been local only to a few risky funds, but there are others freezing redemption rights, investment banks who provided debt for private equity firm LBOs can't sell the debt even as rates as high as LIBOR + 600. There is even a rumor that 1 Private Equity firm (small, $3bln AUM) is looking to restructure their organization as many of their levered to the hilt portfolio companies are getting squeezed on their FCF to debt payments. The USD has depreciated to the point where the lagging effects of price increases caused by increases in foreign inputs is beginning to become evident.

It's a scary time in the market right now. The only upsides are that other global markets are doing okay, and their valuations (spare China) are not out of control like dot.com in the late 1990's.

You can be certain that there will be many more hedge funds that will implode wiping out billions and billions of capital---let's hope it doesn't spread to Banks (I'm afraid it will) and PE firms. As one hedge fund executive said, "Any boom has crevices for the cockroaches of capitalism to hide in".

Get ready for the traditional "flight to quality" on the markets--and the tanking of the US dollar!

[Cowlesy]

I agree, because as the flight to treasuries occurs and Henry moves to increase the debt level, we further devalue of treasuries while at the same time increasing their intrinsic risk premium. If a crack were to occur in the t-note market, I'll be glad I have a little vault of gold coins in the upper right side of my closet in a mini-vault.

[Bradley in DC]

I agree, because as the flight to treasuries occurs and Henry moves to increase the debt level, we further devalue of treasuries while at the same time increasing their intrinsic risk premium. If a crack were to occur in the t-note market, I'll be glad I have a little vault of gold coins in the upper right side of my closet in a mini-vault.

Henry? We're on a first name basis, are we?! Agreed--and foriegners will get spooked and flee.

[Cowlesy]

If we were on a first name basis, it'd probably be, "Ole Hank....Hank the Tank".

That being said, we are seeing more and more oil contracts being purchased in Euros, as who really wants anything dominated in dollars right now?

Let's just hope that when the fed sells paper on the open market to take us further into debt that they still have willing buyers.......hah.

[michaelwise]

Ron Paul cannot stop the collapse of the US economy, just as the world central bankers cannot stop the collapse of the world economy. Too much worldwide debt to the tune of 415 trillion dollars has been manufactured, 10X the world GDP. The unwinding is well underway with the collapse of the US housing market, and the collapse of hedge funds worldwide, which hold a large portion of the worldwide debt. Take heart. The worldwide economic crash is what's going to make possible, a Ron Paul Presidency.

[Syren123]

I'm trying to decide if the people in charge are ignorant, malevolent, or just so greedy they're blind.

Yes.

[ghemminger]

Crash is imminent!!! Death near