Anyone who listens to Ron Paul is simply a fool.. It is sad the news even covers him.. I have yet to hear him actually say something useful and informed..
Ron Paul should be declared a loon in need of a straightjacket and a muzzle....hes cracked
61 trillion in unfunded liabilities
50 trillion in the entire world
America can print all the money she needs, so why worry?
Yes, it can lead to hyperinflation but not bankruptcy.
The headline is a fine example of taking someone out of context. Read the whole article and Paul said we should write off the debt owned by the Federal Reserve.
It has been some time since I read it but I read a comprehensive article about the benefits of the US filing bankruptcy. While it has it negative the article made it not sound as crazy as it may seem.
if we filed we could eliminate all debt ( or simply refuse to make payment ). This is debt that we will never pay off anyway so its not like they are losing as much as we owe due to the bankruptcy, there never gonna get it all not matter what. In turn we go back to a gold backed standard and reissue new currency. This would help ensure the value of our dollar in potential future trade agreements.
We would also lose much of our imports do to the bankruptcy. This while bad short term could actually have a very positive outcome. We would once again manufacture most of our goods and not be losing hundreds of billions a year in trade deficits.
It would also help to insure that countries would be hesitant to loan us money. This would help keep the government spending in check. No more blank check for government spending.
While Im sure it would be bad short term I could see it having the potential to benefit us in the long run. We have been living beyond our means for decades. Its about time we correct this.
Here is an adult look at Ron Paul's suggestion...
Representative Ron Paul has hit upon a remarkably creative way to deal with the impasse over the debt ceiling: have the Federal Reserve Board destroy the $1.6 trillion in government bonds it now holds. While at first blush this idea may seem crazy, on more careful thought it is actually a very reasonable way to deal with the crisis. Furthermore, it provides a way to have lasting savings to the budget.
The basic story is that the Fed has bought roughly $1.6 trillion in government bonds through its various quantitative easing programs over the last two and a half years. This money is part of the $14.3 trillion debt that is subject to the debt ceiling. However, the Fed is an agency of the government. Its assets are in fact assets of the government. Each year, the Fed refunds the interest earned on its assets in excess of the money needed to cover its operating expenses. Last year the Fed refunded almost $80 billion to the Treasury. In this sense, the bonds held by the Fed are literally money that the government owes to itself.