Any nation with a central bank (fractional reserve) is beholden to boom & bust cycles. The challenge today is nobody wants to experience a reasonable "bust" so the economy can eventually make another move higher. Not in an election year, at least. I am a futures trader who trades for myself & others. Also, I work at an FCM in Chicago so I pay close attention to things. Bernanke's cheap money policy should have already ended. We'll probably see interest rate hikes in 2009 as inflation quickens & demand for dollars declines. Ron Paul's a threat because he tells the truth.
Ron Paul is able to identify the cause of our ills . . . but he rarely provides an answer to the current financial crisis in the banking system. Ever notice that?
And therein lies the rub . . . Our country doesn't know how to SAVE. "The recent data are part of a trend of declining personal saving rates observed for two decades. During the 1980s, the personal saving rate averaged 9.0%. During the 1990s, the personal saving rate averaged 5.2%. Since 2000, the personal saving rate has averaged only 1.9%. Remember, the savings rate as recent as 2005 was NEGATIVE for the entire year! That is why we have the Fed. Sad, but true.
What incentive do the Americans have to save? Saving doesn't mean jack if they steal it from you through inflationary policy.
it's not about nation the fed discourages savings with its low rates and cheap money policy. give people decent savings rates and i guaranty you we will have 10% savings rate easy of course, it will put economy into recession so according to Fed they need to stimulate economy with low rates discouraging people from savings
We have the Fed because we don't save? or, we don't save and that's why we have a Fed? Totally wrong.. Go read "The Creature from Jekyll Island".. Why would anyone save when artificially low interest rates induces consumers to almost always do the wrong thing? Why put your money in the bank to earn nothing when real estate and stocks and commodities are a 'sure thing'?
every now and then, it is necessary to confuse the matter with facts. If pabst were a legal Latino immigrant, I doubt he would be so vehement about the minority problem. In fact, he would probably be here, arguing the opposite with himself. You can usually tell an idiot, by the fact that his argument would drastically change depending on what body he happens to inhabit.
About 5 posters beat me to it. Inflationary monetary policy promotes consumption. Not savings. Deflationary or stable policy promotes savings. Before the FED, the nations savings rate was much higher. It paid to save. Now, savings equates to money lost. Its really the FED that discourages private savings by inflation. Not the other way around.
Ron Paul's solution to a financial crisis is to prevent one from hapening in the first place by using sound money instead of a fiat currency that allows politicians to easily spend beyond their means. you should read up on what he's been saying before you make false statements http://www.lewrockwell.com/paul/paul-arch.html
Ever notice that you don't listen? The solution is the FREE MARKET Let the MARKET determine interest rates, and not a bunch of unelected elitists meeting in marble palaces... Let the MARKET determine the value of the currency, and not a bunch of counterfeiters.. Back the currency to a commodity, as stated in the Constitution - it's the only way you can stop the money manipulators from destroying the economy via inflationary policy...