GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Monday, April 23, 2012

Ron Paul on Gold Standard & Paper Money Moral Hazard

"I want a market economy," says GOP presidential candidate, Ron Paul " what I want is a market economy. I don't want the dependency as a matter of fact, that's the big disadvantage of paper because of the moral hazard. if we get into trouble, we always know the lender of last resort. it was set up for that reason. the lender of last resort gambled , do anything, take risks, the government's insurance. so they get into trouble. but if they get into trouble, they shouldn't come and rescue the economy. they shouldn't be bailing out general motors in these trillions of dollars in both the fed and congress, that was set up. And i complained about that for ten years. you know, this line of credit of fannie mae, freddie mac. and they overdo things. they overinvest. a lot of times they talk about the inflation, about the price level. But really the biggest problem with inflating the money supply and giving you artificially low interest rates is the mal investment..."

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