Bailout Everyone? The Fed Is Doomed To Fail

[PAF]

March 20, 2020

[Bern]

The Fed will be creating trillions of new dollars based upon the programs that they've announced in the last week or so. More bailouts are likely coming for States and Municipalities. The Fed is going to be buying up every asset under the sun. They are going to own everything. This is a sane and logical outcome for a fiat money system.

[Sammy]

The FED is economic illiterate.
Republicans are once again exposed as Socialists like Bernie Sanders!

[Brian4Liberty]

Good episode.

Ron mentioned that the economic Marxists and cultural Marxists want chaos and panic, as they believe they can use the crisis to push their agenda.

Makes me wonder where some of these ”everybody panic” emails originate.

Also related is the fact that local media in California keeps talking about the things that the Democratic Socialists are doing to help the homeless during this crisis... hmm.

Ron also spoke positively about the idea to cut or eliminate income taxes for the rest of the year. Variations of that idea have been floating around.

They don’t like the idea of direct payments to everybody, as that would accelerate into an inflationary depression. It’s the new modern monetary theory: print as much money as possible!

[CCTelander]

"...socialism has been around a long time, socialist thinking, but right now we're verging on something closer to fascism..." - Ron Paul

[osan]

March 20, 2020

Um, no.

The fed is by no means doomed to fail. I would love to see it fail, but the fact is that it can go on like this indefinitely, so long as certain conditions hold. That's the beauty of the system as it is architected. So long as purchasing power remains above a threshold and the rate of expansion of the money supply remains below a certain threshold, this system can go on indefinitely. It matters no whit whether a loaf of bread costs $800, so long as one's income is commensurately high. So long as the rate of inflation occurs at or below some value, it can go on forever without immediate harm to anything, except for cash savings, which will naturally lose relative value because savings accounts return $#@! for interest.

I'm not defending the system. I do, in fact, resolutely condemn it. But this system can go on forever so long as it is managed properly. The real danger is that inept or malicious "management" could destroy the economy in a matter of weeks or perhaps even less. I do not trust those bastards to the door.

[Krugminator2]

Here's Ron Paul's reading list. https://store.mises.org/Ron-Pauls-Re...List-C111.aspx

From Bastiat

There is an article in the Constitution which states:
“Society assists and encourages the development of labor…. through the establishment by the state, the departments, and the municipalities, of appropriate public works to employ idle hands.”
As a temporary measure in a time of crisis, during a severe winter, this intervention on the part of the taxpayer could have good effects. It acts in the same way as insurance. It adds nothing to the number of jobs nor to total wages, but it takes labor and wages from ordinary times and doles them out, at a loss it is true, in difficult times.

Ron also puts Road to Serfdom on that list. From Hayek in the Road to Serfdom

There is no reason why, in a society which has reached the general level of wealth ours has, (the certainty of a given minimum of sustenance) should not be guaranteed to all without endangering general freedom; that is: some minimum of food, shelter and clothing, sufficient to preserve health. Nor is there any reason why the state should not help to organize a comprehensive system of social insurance in providing for those common hazards of life against which few can make adequate provision.

Strange that two of Ron's three favorite authors were "socialists".


Ron Paul also was a fan of Milton Friedman. He eulogized him on the House floor in a very nice speech.

INTERVIEWER: Now, at the time of the Depression, did you personally support New Deal policies?

MILTON FRIEDMAN The other part of the new deal policy was relief and recovery... providing relief for the unemployed, providing jobs for the unemployed, and motivating the economy to expand... an expansive monetary policy. Those parts of the New Deal I did support.


INTERVIEWER: But why did you support those?


MILTON FRIEDMAN: Because it was a very exceptional circumstance. We'd gotten into an extraordinarily difficult situation, unprecedented in the nation's history. You had millions of people out of work. Something had to be done; it was intolerable. And it was a case in which, unlike most cases, the short run deserved to dominate.

This is 1929 right now.

[RonZeplin]

The FED is doomed.