Ron Paul says the bailout will bring a worse inflation crises.

You might want to know what Ron Paul has to say about the government’s bailout. He thinks it is unconstitutional (which it is). He thinks it will cost $5 trillion dollars and although it may bring a fix that will last a year or two it will lead to much more inflation after that. There is no question in my mind that if you just double the money supply with no increase in productivity that it will cause hyper-inflation. The inflation that is coming will bring a complete economic collapse.

Ron Paul thinks many more people will see this and his movement for more limited government will grow but if a third party movement is not started before the government controls everything the movement is never going to get off the ground. Especially since half the nation will become dependents of Uncle Sam. Only after the collapse when the funny money given to them buys almost nothing will people understand that if the productive are forced to transfer their wealth to the unproductive they also stop producing. When few are paying taxes the government’s only option is to print more money but that money will rapidly lose value producing inflation, and foreigners will not want to hold it or finance our debt. Then the real crash will come, with martial law, rationing, dictatorship and finally a popular revolution to restore our Constitutional government. That is the future that has been chosen for us by both political parties and it therefore does not matter who gets elected. The end result will be much the same. Obama will just bring the collapse a bit quicker than McCain.

Ron Paul: Bailout means we’ll all suffer - CNN.com

U.S. Rep. Ron Paul, who has been an opponent of the government’s bailout plan, spoke Friday with CNN’s Kiran Chetry on “American Morning.”
Ron Paul: “Give up on this idea that inflation solves everybody’s problems.”

The Texas Republican says the bailout’s infusion of government money will lead to inflation, that our current monetary system is coming to end, and the market, not politicians, can best solve the economic crisis.

U.S. Rep. Ron Paul: They tweaked it up. It started out as a three-page document and went up to 450 pages. Instead of $700 billion it’s up to $850 billion. Reuters had a story out today. They estimate it’s going to cost the American taxpayer about $5 trillion. It’s tweaking in the wrong direction, and I don’t think it’s going to do any good whatsoever.

Chetry: The credit markets are starting to loosen up a bit, at least from what we’ve seen this week. Is that a sign that maybe it is working?

Paul: Maybe to some degree in the short run, but that just means we’ll have more inflation. You can’t create $5 trillion out of thin air and not expect inflation. So although the dollar may be up a little bit right now because the markets are a little calmer, this just means that in time we’re going to all suffer and pay for this, and we’re going to pay for it with higher prices.

This is the serious problem. It’s the attack on the dollar system. They’re trying to save the dollar, but this system that we’ve had since 1971 is nonviable, and it’s coming to an end. That’s what this whole story is about, the end of a monetary system that we’ve had since 1971.

Something has to give. You just can’t create more money out of thin air and propping up everybody. It’s an immoral system. You’re asking the poor people to bail out the rich. You’re asking the innocent people to bail out the guilty. You’re asking people to just totally defy the Constitution because there’s no place in the Constitution that says that we can do these things.

Besides, economically, it’s a disaster. This is going to cause a great deal of harm. It’s like a drug addict taking a strong fix, and he feels better for a day or two, but believe me, we’re going to kill the patient. And the patient here is the dollar system and our entire world economy. I would say let’s get off this addiction.

Get the government out of this overregulation, and give up on this idea that inflation solves everybody’s problems. If inflation, that is the creation of new money, could solve everybody’s problems, which they’re claiming right now, nobody would ever have to work again. If $5 trillion could save this economy, why work? Just print money, and everybody will be happy.

They don’t understand the idea that people have to work. People have to save, instead of consumers spending more money.

It’s arrogant for the politicians and the bureaucrats to believe they can plan the economy and sort this all out. We’ve been doing it for all these years, and the monetary system is so confusing and so corrupt, that the sooner we get back to believing in ourselves, believing in freedom, believing in sound money, believing in the Constitution, we’re going to solve these problems.

Right now there’s a fight going on in this country. Our numbers are growing. We’re not the majority, but our numbers are growing. And as this situation deteriorates, more people are going to say, hey, maybe it’s right. Maybe limited government and freedom works.

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