“”Even though the Fed did great harm before 1971, after the total elimination of the gold dollar linkage, the problems of deficit spending, welfare expansion, and military industrial complex influence have gotten much worse.
Although many claim the 1990s have been great economic years, Federal Reserve board action of the past decade has caused problems yet to manifest themselves. The inevitable correction will come as the new century begins and is likely to be quite serious.
The stage has been set. Rampant monetary growth has led to historic high asset inflation, massive speculation, over-capacity, malinvestment, excessive debt, negative savings rate, and a current account deficit of huge proportions. These conditions dictate a painful adjustment, something that would have never occurred under a gold standard. The special benefits of foreigners taking our inflated dollars for low-priced goods and then loaning them back to us will eventually end. The dollar must fall, interest rates must rise, price inflation will accelerate, the financial asset bubble will burst, and a dangerous downturn in the economy will follow.”
http://www.house.gov/paul/congrec/congrec2000/cr020200.htm
It was entitled “A Republic If You Can Keep It.”
Since he predicted this crash when no one else in government did, isn’t he the one we should be listening to now, as he fiercely opposes the bailout?
Del Fuego – it is actually an entire school of economic thought that has been ignored during the keynesian ponzi scheme era. Nixon’s dropping the tie to the gold standard is what sent Ron Paul into politics because then it became critical. Doubtless McFadden would have voted for him.
I would say Ron Paul. Who else?
Chilling, is it not?
Sounds like a Mcfadden speech to me and he beat Paul by nearly 70 years and amazingly we are all still alive.