Congressman: Stock Market Will Eventually Collapse
Congressman: Stock Market Will Eventually Collapse: “Paul explained that recent attempts to pump liquidity into the markets are only a temporary fix and that the long-term effects of doing so spell disaster for the economy. ‘The dollar is plunging no matter what you read and hear about and no matter how hard they work to keep the bubble going the only way they can do that is creating more money….causing the dollar to go down even faster, the market seems to be reassured - there’s a contrivance to try to hold this together….but it won’t last, eventually it’s going to collapse,’ said Paul.
The Texas Congressman cited the repeal of the Insurrection Act as opening the door to a declaration of national emergency and martial law which could be instituted for any number of reasons, including civil disobedience in the event of an economic downturn and a run on the banks. “
Ron Paul is correct. The big question is only when it will happen. It could be days or a decade.
Date posted: Thursday, August 30th, 2007 2:50 pm | Under category: economy, terrorism
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Monetary policy folly. You know, this is what people like Hitler did to revive the German economy in no time. Issuing more money allowed him to build up one of the world’s most advanced war machine at the time and achieve almost zero unemployment. The result? Hyper-inflation and enormous debts.
Just cut back on excessive gov’t spending and taxes to create a better financial climate if you want to keep inflation low. All pumping more liquidity in the market eventually does is increasing inflation and hurting the economy. Maybe the folks at Mises Institute are right to suggest replacing the Fed with a gold standard.