Monday, January 21, 2008

Who can save us from a Recession? Ron Paul?

It appears as if we are in a recession. (Yes I used used the R word). Of course we need two
consecutive quarters for it to be declared an official recession. By they
time they declare that we are in a recession let's hope that we are out of the
recession. Consumer spending has slowed and financial markets have yet to
find solid ground. It looks like we can blame the Federal Reserve for some
of our financial pain for keeping interest rates artificially low for way to
long. Whenever Alan Greenspan faced a problem he would solve it by
lowering rates. This has led to the huge housing bubble that can take
years to stabilize. With rising real estate prices consumers had a false
sense of wealth due to the double digit increase in their home equity. In
effecting they were borrowing against their home equity which can also explain
why the savings rate is so low. The dollar has been crippled when compared
to the Euro or Loonie. Crude prices have risen faster in dollars than in Euros.

So every candidate running now has come up with a plan to solve our nations
woes. The democrats favor deficit spending and the republicans favor tax
relief but continued government spending. The only candidate who has the
right plan is Ron Paul. He wants
to eliminate the IRS and therefore grind the federal bureaucracy to a halt.
Just think of the instant savings we would have. Since the start of the
debates Ron Paul has been the only politician concerned with the economy.
Dr. Paul clearly understands the beauty of the free market. He even wants
to go on the gold standard to protect the integrity of our money supply and
fight inflation. Had we been on the gold standard the fed would not
have been able to manipulate the housing market and create this asset bubble.

Does Ron Paul have a chance? Not in this election because the
mainstream media only ignores him. Also he does not have charisma, but he
is a great educator. The good news is that he is really educating the
younger generation of Americans who are becoming more involved in politics.
He came in 2nd place in Nevada on Saturday and I would love to continue to see
people with likeminded ideas ban together. It is truly amazing what the
Ron Paul Revolution has accomplished in just a few weeks.

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