You’re Going To Guarantee Another Great Depression
Full Text of Ron Pauls speech to the House of Representatives today:
āMadam Speaker, I rise in strong opposition to this bill, because it wonāt solve our problem. It is said that weāre in a liquidity crisis and a credit crunch, and all we need is more credit. The Federal Reserve has already injected over a trillion dollars worth of credit, and it hasnāt seemed to help a whole lot. Injecting another 600 or 700 billion dollars will not solve the problem.
I think one of the reasons why weāre floundering around here is that we donāt understand the problem, because instead of it being a credit crunch I think a lot more serious than that and that is, I think whatās happening in the market today is signaling something much more draconian.
Because itās probably telling us that our government is insolvent, that weāre on the verge of bankruptcy, and big things are starting to happen, and we donāt quite understand it, so we fall back on the old cliches: What we need is more appropriations, more spending, more debt, and more credit in the market, that means more inflation by the Federal Reserve system. And yet that is what caused the trouble.
We want to do this, it is said, to prevent the recession or depression, because that is āunbearableā. But the truth is, you should have thought of that about 10 or 15 years ago, because the financial bubble created by the excess of credit and the lowering of the interest rates is the cause of the recession.
The recession is a demand. Itās a must. You canāt avoid it. Yes, itās been papered over several times over these last several decades, but that just made the bubble bigger. But the message now is you canāt paper it over any longer, so the recession and/or the depression will come.
My sincere conviction is that by doing more mischief and not allowing markets to adjust, debt to be liquidated, youāre going to guarantee a depression. Itās going to be prolonged, the agony is going to be there a lot longer than if you allow markets to adjust. Liquidation of debt, let the bankruptcy occur, let the good assets come up, and let it react.
This idea that thereās just not enough regulation is completely wrong. Thereās too much regulation and lack of regulation of the Federal Reserve system and the Exchange and Stabilization Fund.ā
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See Also: Ron Paul to Congress: Youāre Going to Guarantee a Depression, Ron Paulās Texas Straight Talk on the Bailout, House Passes $700 Billion Bailout, Bailout Round-up, McCain on economics, Republicans Fight Back, Bob Barr Television Commercial, and Bernie Sanders: progressive champion.
[tags]ron paul, economy, great depression, federal regulation, federal bailout, financial sector, bailout of banks, washington dc, house of representatives, speech on october 3, 10/3/2008, ron paul speech, video, youtube, government bailout[/tags]
