[Gridlock]

The worst words uttered in recent times are, `too big to fail`.

No one can tell you what would have happened if they just let companies go down. They can only speculate. My speculation is, it would have been worse, but much faster.

In a world with no AIG, GM, Chrysler and several other banks, it would have galvanized other institutions to get their shit together. Yes, the unemployment numbers would have been bad, but I believe, in my uneducated on the subject mind that re-organizing the remaining survivors would have created the growth.

All thats happening now is a slow decline. The economic problems weren't caused by the housing market. That was a symptom. The problem was cheap money. And that is what Paul talks about with Fiat currency. Here's the history of the US economic problems of what brings us to today:

2008-housing crash. Banking failure.
2000-2008-Bush lowered taxes
2000-dot com bust. Housing boom(bubble)
1990's-deregulation of banking sector. Dot com boom(bubble)
1980's-Reaganomics lowers taxes. Money gets cheaper as interest rates fall. I'd almost say that there was a consumption boom(bubble).
1970's-Bretton-Woods suspended, US no longer on gold standard, other countries follow suit.

Took about 35 years for it to unravel.

Play it backwards. With the US no longer on the gold standard, there is nothing physical to control the amount of the money supply. This allows interest rates to fall as all that holds the economy together, is the belief that it works. This is why Reagan was successful; he was a charasmatic leader. Now, without the gold standard, the sky is the limit on the belief that the economy can provide. That leads to the excess of the 1980's. Add in a little deregulation, allowing banks to go unchecked. Cheaper money again leads people to buy big houses and use them as ATM's...and what do you know, people start looking at whats happening, believe it to be unsustainable, and it is so. It crashed because people, people in the macroeconomic sense, wanted it to. People think, the bubble had to pop. It doesn't just do it on its own. People make it pop.

The only thing that is keeping the economy from improving now is people lack the belief that it works. And that is Obama's downfall. He spent his time on Obamacare, instead of doing "something" to instill confidence in the economy. And at the heart, that's all it takes. People can get on the news and talk about economic indicators and interest rates and tax rates and everything else, but at the end of the day, people need to make the decision to spend, thinking that they have more money coming in to replace it. That's it. All Ron Paul wants to do is make all the other 'stuff' that happens in the background have some type of accountability to the people.

That's been the problem for the last year. The democrats and republicans have been having a pissing match over every single issue and the losers are the people that need to have faith in the system. It all comes down to the republicans wanting power-meaning the economy needs to go to shit to take out Obama, and the democrats don't want the Republicans to be able to say, "we did this, and this caused the economy to grow".

And great, you can do that, but those of us that are enlightened know that the paper we have in our wallets, and the number in the bank account is meaningless. The paper is worth maybe a penny, and on a computer I can type an extra 0 and it costs nothing. It has value because we as a people choose for it to.

So, that's why Ron Paul has support. Because he understands that there needs to be something there. This paper can be redeemed for gold. It has value. That's why people will ignore every other fucked up thing out of his mouth, because he gets that changing this 'system' will give people something to believe in, and that is the only thing that will change the current economic conditions.

Everything was predicted. In the last 40 years, we've gone to a system of bubbles. Whats the next big thing? Steady economic growth isn't sexy. We need 80% returns on money now. As I put above, I see 3 major bubbles in the last 40 years.

1. Consumption Bubble-people in the 80's just bought the fuck out of everything.
2. Dot Com bubble-how fucking stupid. Here we have a company called 'flooze' raking in millions of investor cash without a hope in sight of profit. Good call.
3. Housing Bubble-been beat to death.

Manufacturing isn't sexy anymore. Fuck it, we'll let China do that. Oops.

If you are willing to hand over your entire base of "things that actually add value" such as farming, and manufacturing in favor of more consumption, then your country is indeed doomed.

Would I think that Ron Paul would make a good president? No, not really. I think its too late to return to the system that he proposes. His system of states rights may work for the people in terms of representation, but would result in a system of infighting as the states diverge from one another. Gays are married in one state, and lynched in another.

I do believe that he is good for the discussion, as he continually brings up good, valid points. You have the Bachmann's, the Santorum's and the Perry's all trying to outdo each other on how conservative they can get-ie. Perry saying, "I hate gay rights", to which Santorum responds, "really, I've hated gay rights for way longer. So much so that my name is synonymous with evil, rectal things on google"

That is all meaningless bullshit in the election. It panders to the unenlightened.

I'd like to see him do well enough that he is a choice for VP, or made Secretary of the Treasury.


Holy shit...that was a long-winded post.