Open Thread: How do we solve the crisis?

By we, I mean “we the people.”

What has become apparent so far is that the large institutions that we have tasked with running our society have been inept in 1) anticipating the crisis, 2) understanding the crisis and 3) taking steps to solve it.

The government’s answer is the same as ever: Print more money. But you can’t solve the problem of inflation with more inflation. That will just get us deeper in the hole. And look at the response of corporations, which has been no better. GM hasn’t built a decent car for 40 years or more. They’re washed up as an organization, and they’re begging for money, too.

I’ve heard stories of credit card companies that are lowering responsible customers’ credit limits – to below customers’ outstanding balances – then saying, “You’re over your limit.” Then they raise the interest rate and charge a hefty monthly “over limit fee.” I cannot think of a better example of parasitic corporate behavior.

I will be away for the weekend. In the mean time, this thread is a place to discuss alternative solutions to the crisis. The problem with the “solutions” we’ve seen so far from the government / the Fed is that they seem to have absolutely no understanding of the myriad problems we’re facing. Credit is one problem, but it is a symptom, not the root problem.

In your comments, please address what you believe to be the root of the problem, and then how to we solve it?

Also, I’d like to hear comments on something I’ve been thinking about recently – alternative currencies. As we head into what is likely to be a Second Great Depression, a problem we’ll see again is: a lot of people looking for work; a lot of work to be done; but no money to pay them. Alternative currencies are a parallel system of exchange that bypasses FRNs and I believe they are tax free. They are usually community based, but with the internet, we could have a big community!

Alabama Senator: “If we don’t stop I’m afraid the People might rise up and stop us”

WOW they are starting to fear us… (can it be??)

Please watch this really short clip……

Congressman Neugebauer and Bachus (R) “where does it stop?!”


Ron Paul Interviewed By Hans Lysglimt At Mises Institute

Long time Ron Paul supporter Hans Lysglimt (me 😉 ) interview with Ron Paul at the Mises benefactors summit this November 1.
We talk about the international aspects of Ron Paul’s message.

Please help promote this video on Ron Paul forums etc – thanks!…

Hans Lysglimt

New York Times: Ron Paul Answers Your Questions Pt.1

Do you love the smell of libertarianism in the morning? If so, today is a good day for you.

Last week we solicited your questions for Congressman Ron Paul.

There was such a big response (more than 400 comments) that we have split Paul’s answers into two batches, the first of which is posted below.

Thanks to Paul for his answers and all of you for your good questions.

Quiltingsando: I got the quilt!

It is breathtakingly beautiful! Thank you so much! I will be away this weekend, so I will have pictures up next week. I am really impressed and my wife loves it!

Thank you to you, and to my entire family here at the Daily Paul.

Peter Schiff: Will China Print or Sell?

Make or break. Will Peter Schiff be right?

Will China sell US Treasuries to fund its stimulus package or will it print / borrow?


China’s Stimulus Spells Trouble for U.S.

This week, Asian markets were initially energized by China’s announcement of a near $600 billion economic stimulus package for its own economy. Although I have never been a fan of government-fueled stimuli, the relative wisdom of the plan hinges on the source of funds the Chinese government decides to utilize. Their best choice would be the country’s nearly $2 trillion in foreign reserves, the largest portion of which is held in U.S. Treasury and agency debt. This pile of dollars, which really amounts to no more than a subsidy for U.S. consumers, does nothing to benefit Chinese citizens.

If it does decide to employ this ocean of cash, China will become a net seller of U.S Treasuries just as the U.S. Government itself will be pushing up its issuance of new Treasury bonds into record territory. With two huge sellers and few major buyers (just about every major creditor nation having problems of their own), the Federal Reserve will become the only reliable customer. As a result, not only will the Fed monetize our own economic stimulus packages, but will be forced to provide the same service to the Chinese.

Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: