Thursday, January 14, 2010

Ron Paul explains the root cause of the meltdown

Congressman Ron Paul continues getting airtime. In this Fox Business interview, he explains how the bank CEOs - who just got hauled before Congress - were simply taking advantage of a system that was intentionally rigged by Washington's Political Class, including Bush, Obama, Geithner, Bernanke, Dodd, Frank and many others.

If you have eight minutes to spare and want a fairly succinct recap of the true causes of the meltdown, then I encourage you to begin by understanding these highly philosophical issues:

1) fractional reserve banking vs. full reserve banking
fiat money vs. honest money
the existence of the Federal Reserve

Address these issues and you'll begin to understand the source of the financial meltdown.

I hope you watch this video.

Tim White

1 comment:

mcjk said...

As usual with Ron Paul, it is worth the watch. I think he got that shirt for Christmas. Thoughts?

Yes the problem is trifold: The Fed, the private sector (bankers), and the politicians. And if watch carefully they all blame each other and people are left wondering who is to blame. Who is the worst? Who really is the culprit? The answer is they are all to blame and they all must go. But the solution has to start with the politicians as they can legislate change appoint justices that will enforce their laws, etc. And for anyone who thinks this is a republican vs. democrat thing, you are not seeing the forest for the trees.

If you think I am wrong look at the root cause of this current mess we are in: OTC(over the counter) derivatives. The Fed/Greenspan was all about not regulating them, the bankers were pushing for it, and the politicians (dems and republicans) passed it (Commodity Futures Modernization Act of 2000 and Gramm-Leach-Bliley Act of 1999).