Obama might be the dumbest president we have ever had.

[akuma587]

Final-Fan said:

TheRealMafoo said:

So the part where he said Soon Freddy, Fanny, and the banks are going to come to congress, ask for money, and the Feds are just going to print it up and give it to them means nothing to you?

That the people who are going to get the money first when it has purchasing power is Banks, Wall-street, but when that money enters circulation, inflation is going to hit, and tax everyone, the poor the most, didn't ring a bell at all? (inflation is on the rise, and won't stop for some time)

How about the part where soon the US is going to try to centrally regulate the economy, and that it's not going to work?

I guess you and I watched a different video.

(1) He said: 
...
Because at the rate we're going, we resort daily on inflating the money supply:  no matter who gets into trouble, the federal reserve opens up the line of credit, the banks come, freddie mac, fannie mae come, and also the congress goes to the fed, we run up the deficits -- all the pressure is put on the dollar. 

And in the last 35 years or so, since the breakdown of (brettin woods??) agreement, we have had a buildup of a dollar bubble.  We've heard about the housing bubble, and the NASDAQ bubble, and the various bubbles that burst and then we go through a period of suffering.  But what we're witnessing now is the beginning of the bursting of the dollar bubble, where there's loss of confidence.  We can't get away with continuing to just create new money. 
...
(my own transcription)

To argue after the fact that he was referring to a bailout is ... not something that I will believe without more an example of something more specific.  Greenspan's Fed made a habit of lowering interest rates everytime clouds covered up the sun, let alone if there was rain.  What makes you so sure he wasn't referring to this or some other thing? 

(2) I understood that to be referring to the general "use it or lose it" phenomenon of money in an inflating environment.  Spending, investing, etc. and the only ones that really lose are those who put it in a mattress or otherwise earn a return smaller than inflation on their money.  This would not be specifically referring to 'banks get the money, then businesses, and so on until the poor are left with inflated dregs'. 

(3) Ron Paul has, unless I am greatly mistaken, been on about encroaching govenment power for DECADES.  Does that make him right when it actually happens?  Yes.  Should I be amazed at his wisdom?  No. 

P.S.  Thanks for telling me where to find the tiny, tiny relevant parts in the seven minute speech. 

And ironically he is raving about inflationary pressures.  Right now economists are equally or more worried about deflationary pressures on the dollar.

Now I do agree that long-term the national debt needs to be significantly reduced or entirely eliminated or it will cause a lot of inflation (what Ron Paul is talking about).  You acheive that by cutting government spending and raising taxes.  But the middle of huge recession that is teetering on the edge of depression is not the time to start being a fiscal conservative.  Ask Herbert Hoover.