EXPONENTIAL BAILOUTS: The Fed, the Stock Market & Big Jewish scams: The Crack-Up is Coming by Ron Paul – My Comments
[There is truth to this. The only problem is that a lot of the time these people predict things, whereas the hidden Jews in the system are busy thinking up new scams in order to keep the big scams running longer. There are many methods of inventing money that has no basis in reality. However, I think the time for collapse IS COMING, and I'll tell you why: The mere fact that the USA printed 22% of the money in 2020 that it has created in all of US history, should show you the size of the problem. Remember, you have mathematicians and economists calculating how much money is needed so that the markets do not collapse. Remember the 2008 "bailout" which was $700 billion? Well, consider that in 2020, they printed at least $6 trillion (and maybe as much as $9 trillion). Notice the increase is almost 10 fold what it was in 2008. The amount of money needed each time, to keep the markets up is INCREASING EXPONENTIALLY! This is UNSUSTAINABLE. In the next 10 years what will be needed? $70 trillion? And the decade after that, $700 trillion? Do you see where this is going? This is unsustainable. It will of course destroy the value of money … of cash, but it will push up the value of assets and physical items. The stock market has been OVER VALUED for years. I have spoken to an investment consultant I know and she's mentioned this to me for years, that the US stock market is way overvalued. The current system is unsustainable, UNLESS you just suck new money out of thin air Jewish Weimar style endlessly. But that will eventually fall apart. Here in South Africa, they also dropped the interest rates a lot in order to stimulate the economy. I see people borrowing more money and revamping their houses. It's all done on debt. We're in a permanent debt based system. Its madness. Jan]
The Crack-Up is Coming
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Guest Post by Ron Paul
Some Federal Reserve officials are calling for tougher banking regulations in order to prevent the Fed’s low interest rate policy from leading investors to take “excessive” risks that will create asset bubbles. The Fed is understandably worried that these bubbles will burst leading to another market meltdown. However, the boom-and-bust cycle will not end because regulators stop investors from taking “excessive” risks. Almost every bubble and economic downturn America has experienced over the past 107 years was caused by the Federal Reserve’s manipulation of the money supply.
The Federal Reserve’s actions artificially lower interest rates, thus distorting the signals sent by the rates, which are the price of money. Artificially low interest rates cause investments to be made in projects that are not supported by the real underlying market conditions. This results in a boom, inevitably followed by a crash, then by a new round of money creation and government bailouts restarting the cycle.
Increased regulations will not just fail to head off the next crash, they will make the next recession worse. Federal regulators are not capable of determining what is “excessive” risk. Instead, that determination is best left to market participants. Regulators are subject to having the same Fed-induced distorted view of the marketplace as nearly everyone else. Thus, regulators may mistake a growing asset bubble as a thriving sector of the economy that will serve as a long-term source of growth. This is especially the case if, as with the housing bubble, government policies such as the Community Reinvestment Act encourage the malinvestments. Also, regulators may impede the growth of businesses that are actually responding to real economic conditions instead of Fed-creationLIST
Support among the people, if not among the financial and political elites, for auditing and even ending the Fed, as well as for cryptocurrencies and precious metals, suggests we may soon reach what Ludwig von Mises referred to as the “crack-up.” The crack-up occurs when enough people realize that continuous expanding of the money supply, and the accompanying decline in a currency’s purchasing power, is a feature of central banking. Therefore, they spend their money as soon as they get it, accelerating the rise of hyperinflation. Rejection of the dollar’s reserve currency status abroad and the crack-up at home will cause an economic meltdown worse than the Great Depression. Among the problems this will lead to is increased violence as some Americans who believe they are entitled to live off the stolen property of others cut out the government middleman and start stealing from their fellow citizens.
Concerns over the effects of the US government’s debt, the precarious American economic condition, and growing resentment of US foreign policy have led to a decline in the dollar’s international value. Eventually, these factors will lead to a rej
The only way to avoid this fate is to spread the ideas of liberty among the people. A strong liberty movement that can pressure politicians to cut spending, audit and end the Fed, legalize competing currencies, and stop promoting divisive identity politics is the key to peacefully transitioning away from the Keynesian welfare-warfare state to a free society.