Here’s a nice little video of Ron Paul on MSNBC this morning talking about the economy in real terms, not some fantasy economy.
Is always a pleasure to watch Ron Paul on the 24 Hour News Networks. They react like common sense is crazy talk.
As many have known for years the only cure for out of control inflation is a drawn out recession which ultimately ends with deflation of the affected’s monetary system, in this case, the dollar. Energy prices have dropped 25% in the past two months, Oil has fallen from $147 a barrell to $36 a barrel in barely six months. The Fed have cut interest rates to nearly 0% and nothing has come out of it. Now us tax payers are forced to sit back and watch our extremely incompetent government throw piles of cash at banks to buy them out. Nationalization here we are.
Anyways, back to Inflation rates. What we are seeing is nothing more then the basic business principal of supply and demand panning out. Goods cost to much, people cut back, it’s that simple. Less consumption of goods, lower profits for business. We’re watching nearly every business sector tank, due to sheer irresonsibility, not due to a “changing world”. Now we sit and watch the government dig themselves into a deeper whole due to their gross mismanagement of our economy, not due to a failing free market system.
While our currency begins it’s deflation, we’ll watch prices on nearly all goods drop to the floor, while countless more lose their jobs. We’ll watch our dollar be worth a tenth of a euro, people will have to cut back their lifestlyes and the ones to blame will be the Government with their gross mismangement of our money.