Ron Paul joins the Alex Jones Show to look at the different bubbles that are getting ready to burst. He explains how the world and US economic foundations have been eroded away by bankers and technocrats.
Ron Paul: I think, for it not to come would be a surprise to me and you’ve been involved in this a long time and it wasn’t like you didn’t know what was happening with the housing bubble. We had the NASDAQ bubble and now we have other bubbles. We still have another stock market bubble and there’s another housing bubble going on. The big bubble is in the bond bubble. It’s been going on for 35 years, taking interest rates from 21 percent down to, actually negative.
They’ve been getting away with it. This means distortion. Not only is there money involved, but it distorted all the investment over these periods of time and the biggest distortion that it encourages is debt. Encourages debt for a lot of people, but in particular government. As long as our government is able to print the reserve currency, it’s going to limp along, even though our economy is limping along. But that will come to an end. Right now, we are starting to see the whole thing coming apart. We look at Detroit as an example; we see what’s happening in Greece. They are worrying about what’s going to happen after Greece recognizes that it’s actually totally bankrupt. There’ll be other countries.
This distortion has been going on for so long. Most people think that when governments print money that the only thing that happens is that prices go up as a consequence of inflation and a lot of that is true and it’s a serious problem. It destroys the middle class and the poor.
To me, the bigger distortion is the lack of pricing for money and causing people to do dumb things. That’s why they overbuild and overinvest and governments overspend and then you have the Keynesian still in charge that says ‘The solution for this is just to spend more money and print more money’ and that’s coming to an end and the day of reckoning is at hand.
The governments will lie to us; they’ll get away with it for a long time. There will be an illusion, a false trust and we will benefit tremendously because we have a military might and because we have this privilege of issuing the reserve currency of the world. The obligations that we have, the unfunded obligations that we have, over 200 trillion dollars. That is not going to be paid. The only argument that goes on with these countries, like in Greece and others is who is going to get stuck. The bankers are worried they are going to get stuck and that’s what they’re arguing about.
The debt will not be paid and we cannot pay our debt. It’s just a matter of time that people will say ‘Tell me when, tell me when.’ Nobody knows the exact moment or the exact event. But you can tell when the foundation has eroded and the foundation, of not only our economic system, but the world financial system, like no other time in history has been eroded and there is going to be serious problems, because there will have to be a correction of this and you can’t correct it with more spending and more debt, which is what they’re trying to do.
Yes, the bottom is falling out and this is the big problem, because it’s unsustainable and eventually the people will have to recognize this and something else has to change. The system is not viable, but there’s always this willingness to try to prop it up, like we did in 2008 and 2009. We propped it up. The debt is illiquid, it’s not worth anything. The sooner you liquidate the debt, the better and you cannot preserve the debt.
My argument is, and you alluded to this, is the fact that this is a big problem for everybody and people are going to lose a lot of wealth and even some wealthy people are going to lose out. Everybody has to adjust to the fact that there will be a change and there will be a liquidation and there will be a living beneath our means. We’ve lived way beyond our means, but it’s what we do about it. If we keep doing the wrong things, it will last too long and this recession, which is a depression, is lasting too long.
If we do this, what we have to preserve is our liberty, because if we eliminate all our wealth and have our liberties where you just eliminate all those things you just listed here what our government is going to do, we would be back on our feet rather shortly. But that’s where the real crisis is. Now, if we don’t build our strength on those individuals who know and understand what liberty is all about, we’re going to lose our wealth, we are going to further loose our liberty and all of this is going to be available to some guy walking in with a white horse and say ‘I’m in charge now. If you listen what I’m going to do, I will deliver you from all the tragedy that exists.’