My Take, on Ron Paul's Take

Does Ron Paul have what it takes to be president?  I haven't decided yet.  He understands the country's fiscal situation better than anyone else in the running.  He has common sense solutions to our spending problem.  No One on Capitol Hill understands the Federal Reserve better than he does, that's why for the good of the county he'd like to dissolve the damned thing..  He believes government has virtually no right to interfere in peoples lives, property rights or how they run their businesses.  As the Constitution intended he believes in power of the individual, the state and then the Federal Government... And he believes in common sense solutions

I have concerns about his ability to deal with International and Military Issues.  As much as I'd like to stay out of other peoples affairs, I'm not sure we can..  We've been doing it so long the world's come to expect it, and in many cases demand it...  If we can go back to the days of walking softly and carrying a big stick, I'm all for it.  But the stick has to be big enough, and our resolve strong enough the worlds bad guy are terrified we 'll use it...

Back to something he does understand

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Ron Paul Rejects Debt Ceiling Deal as “Smoke and Mirrors

Today, 2012 Republican presidential candidate Ron Paulissued a statement outlining his opposition to the debt ceiling deal struck between the White House and Congress. See statement below.

Ron Paul: “While it is good to see serious debate about our debt crisis, I cannot support the reported deal on raising the nation’s debt ceiling. I have never voted to raise the debt ceiling, and I never will. 

This deal will reportedly cut spending by only slightly over $900 billion over 10 years. But we will have a $1.6 trillion deficit after this year alone, meaning those meager cuts will do nothing to solve our unsustainable spending problem. In fact, this bill will never balance the budget. Instead, it will add untold trillions of dollars to our deficit. This also assumes the cuts are real cuts and not the same old Washington smoke and mirrors game of spending less than originally projected so you can claim the difference as a ‘cut.

The plan also calls for the formation of a deficit commission, which will accomplish nothing outside of providing Congress and the White House with another way to abdicate responsibility. In my many years of public service, there have been commissions on everything from Social Security to energy policy, yet not one solution has been produced out of these commissions.

By denying members the ability to offer amendments and only allowing an up-or-down vote that will take place in the hectic time between Thanksgiving and Christmas, this Commission essentially disenfranchises the vast majority of members from meaningfully participating in the debate over reducing spending and balancing the budget. Furthermore, despite the claims of the bill’s proponents, there is nothing to stop the commission from recommending tax increases.

One of the reasons why I humbly suggest that I am the most qualified Presidential candidate is my experience to see and understand the long track record of failure, disappointments, and bad recommendations made by such commissions.Times like these require statesmanship and steady leadership, which I and the grassroots activists who have joined my campaign believe I am uniquely qualified to provide.

What should bother Americans most is that under cover of this debt ceiling circus, we learned from a recent GAO one-time, limited audit that the Federal Reserve secretly pumped $16 trillion into American and foreign banks over three years. All of the Fed’s fat cat cronies were taken care of at the expense of the American public.

To put that into perspective, our entire national debt is $14.5 trillion, and our annual deficit will be about $1.6 trillion, meaning the Federal Reserve created and appropriated more than our entire national debt to banks around the world in a few short years. We have been fighting in Congress these past few weeks over raising our debt ceiling by $2 trillion, an amount the Fed secretly gave away to just one big bank.

For decades, politicians have promised future restraint in exchange for hikes in the debt limit. We are always told that we must act immediately to avoid a crisis. But time and time again, politicians reveal themselves to be untrustworthy, and we soon find ourselves in a crisis being led by the same folks who wish only to maintain the status quo.

I believe in the great American traditions of free markets, sound money, and personal Liberty. But we are moving far away from what made us the greatest nation in human history. We must cut spending and balance our budget now, before it is too late.

Let me be clear. The cuts we must make will not be easy, and there will be difficult times in the short run. But I have the greatest confidence that if we come together as a People, work hard, and do the right things, our country will be back on track in no time and on its way to unprecedented prosperity. But, if we continue to print money and pyramid debt, we will destroy ourselves and lose the promise of America forever.

I believe in the great American traditions of free markets, sound money, and personal Liberty. But we are moving far away from what made us the greatest nation in human history. We must cut spending and balance our budget now, before it is too late.

Let me be clear. The cuts we must make will not be easy, and there will be difficult times in the short run. But I have the greatest confidence that if we come together as a People, work hard, and do the right things, our country will be back on track in no time and on its way to unprecedented prosperity. But, if we continue to print money and pyramid debt, we will destroy ourselves and lose the promise of America forever.

These difficult times require a President willing to stand against runaway spending. If elected, I will veto any spending bill that contributes to an unbalanced budget, and I will balance the budget in the first year of my term. I will not allow the Federal Reserve to destroy the value of our money by shoveling dollars into the pockets of its banker friends.

I remain committed to working on behalf of the American people to drastically reduce spending and implement fundamental changes that will reform government and restore our nation’s prosperity.”

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Think about it a second.. the Federal Reserve managed to loan their friends at the Super Banks here and in other countries more than enough money to pay off the entire National Debt..  For most of us the number is unfathomable..  One trillion dollars is enough to cover a $50,000.oo salary for 20,000,000 (yeah, that's twenty million people) people for a year.  Sixteen trillion $16,000,000,000,000.oo is enough to give every man woman and child in the country including the damned illegals, Fifty Thousand Dollars a piece.

The Feds gave that all to a handful of super banks. 

 I have to wonder how much of that went into oil future speculation.. Obama and Tim Giethner have friends and donors running those banks, maybe that's why we haven't seen a serious investigation into why gasoline prices are so high. 

The US Treasury via the Federal Reserve owes the US Treasury 1.6 Trillion Dollars..

Yeah I have to agree with Ron Paul on this

TNR agrees with Ron Paul's Debt Ceiling solution

When I can agree with Vermont's admittedly Socialist Senator Bernie Saunders, and The New Republic almost, not quite,  gives Ron Paul a compliment, either someone drugged the country's water supply or we're talking about the Federal Reserve...  Outside of a few Blogs the results of the GSA's Congressional Audit of the Federal Reserve went almost unnoticed when it came out last week.  Also almost unnoticed was the statement the Country's only elected  US Senator willing to publicly refer to himself as a Socialist made.

Saunders' statement  explains nicely the reason we need to be deadly afraid of the Federal Reserves power.  They print the money,   They control the money, they control who gets the money and they don't answer to anyone.  As the report shows, there is almost nothing to prevent the Fed, if it wanted, from giving Libya's Qaddafi an interest free billion dollar loan at no interest, even thought we are at war with him.  They operate in total secrecy, and without any restrictions..

When the Fed was first chartered they were supposed to regulate the money supply in order protect the nations banking system, regulate unemployment, and control inflation....  over the years they've done great things for the banking industry at the expense of the other two,  The dollar is now worth about 1/20 of it's value when the Fed was first chartered, that's how they controlled inflation...They've also failed miserably with unemployment..

As a side note, Obama's Treasury Secretary ran the NY Federal Reserve during part of the period covered by the audit..

Here is Bernie Saunders' Statement... I high lighted a few things..

July 21, 2011
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."
Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. "No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president," Sanders said.
The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse.  In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.
For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed.  Moreover, JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs.In another disturbing finding, the GAO said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds.  One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest.
To Sanders, the conclusion is simple. "No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed's board of directors or be employed by the Fed," he said.
The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.
The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo.  The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.
A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear. "The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."
To read the GAO report, click here.

Clicking here will take you to the two hundred plus page PDF of the Audit results.  Secret loans to foreign banks.. so that in turn, those banks could provide the money to their government which might or might not have our best interests at heart.

No wonder JP Morgan Chase, Morgan Stanley, Wells Fargo and Obama's friends at  General Electric recovered so quickly.. the they getting .


To put the entire thing into perspective, I addition to the bailouts knew about the banks were give the equivalent of the value of they entire United States Domestic Gross Product for one year.  The Federal Reserve secretly gave the banks MORE than enough to COMPLETELY PAY OFF THE NATIONAL DEBT.  It's enough to give every man, woman and child in the country $50,000.00 in freshly created money.  They gave it to the Banks, big overseas companies, and other governments almost interest free.


Paulson, Bernanke and the current Treasury Secretary Tim Geithner all played a role..in the biggest scam in history..




Now that you have some background... take a look at Ron Paul's thought process as explained accurately by and without any of the negative spin or hostility you'd expect (and normally get) from a far left publication.. like the The New Republic 

Ron Paul’s Surprisingly Lucid Solution to the Debt Ceiling Impasse

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.Unlike the debt held by Social Security, the debt held by the Fed is not tied to any specific obligations. The bonds held by the Fed are assets of the Fed. It has no obligations that it must use these assets to meet. There is no one who loses their retirement income if the Fed doesn’t have its bonds. In fact, there is no direct loss of income to anyone associated with the Fed’s destruction of its bonds. This means that if Congress told the Fed to burn the bonds, it would in effect just be destroying a liability that the government had to itself, but it would still reduce the debt subject to the debt ceiling by $1.6 trillion. 

Read the Rest (It's worth it)  Click Here

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There you have it..  A socialist who like his predecessors  Woodrow Wilson, FDR, Johnson and Jimmy Carter you'd expect to be supportive of the Federal Reserve pissed off about it. and The New Republic supporting a proposal by a Conservative Libertarian and TEA Party favorite.

Now, how do we get the Jackasses in DC to stop floating around aimlessly and and listen??

The American Dream By The Provocateur Network

Explaing how the Federal Reseve System works, an how it affect each one of us and the Country as a whole is difficult. USAT Member Amerikan Woman was kind enough to let me know about this video. It's one of the best and easiest to understand presentations I've seen yet

Silver to paper, to?

I'm going to leave Obama and his vacation on the other side of the Planet for the moment.  It's unlikely he'll do anything that will cause immediate damage.  I predict he won't do much more than prove once again he's more politician than statesman.  The real damage has been done much closer to home.  With the exception of the business community, most Americans didn't pay much attention to the Federal Reserve Bank.  Running out of tricks, the Fed decided to try a last ditch effort to stimulate the economy.  They Purposely Devalued the US Dollar.  It's an old trick, in a conversation earlier Lewis, a Grumpy Contributor, who actually understands how the Money Supply Works, and who I wish I could have conned into trying to explained it, put it to me this way;

I think what's going on now with the FED does have something to do with wanting to devalue the currency to make our economy more competitive internationally. However, I believe the main reason is that there simply isn't the demand for more US debt internationally. So the FED is bailing out Congress right now. It is monetizing the debt. This will eventually lead to hyperinflation. The only reason the first round of QE didn't do that, was because the commercial banks were too afraid to lend, and they could get a safe return with US treasuries and shoring up their reserves with the FED.


Also, those commodity spikes we've been seeing recently will hit the stores eventually, full force. Probably starting early next year.

Like I said, monetary policy is very difficult to understand. Good luck trying to explain it to the masses. The best way you can put it is - government counterfeiting. That's really all it is. All states attempt to counterfeit, and devalue the currency. Rome did it by clipping parts of gold and silver coins. We're in the digital age now, with no currency anywhere backed up by anything. It's very dangerous territory. I think we will eventually see a world-wide collapse at some point.