what causes the market to crash? the media, and more specifically, the little investors
It's all over the news, and a lot of people are trippin'=selfforfilling prophecy...+ humans are animals, so we do what others do (you sell? owkay, i'll sell to)
But it wouldn't be on the news if banks were a bit more responable
I'm a Ron Paul supporter. If anything, today's 75bp rate cut shows why Ron Paul is right to get Americans out of the greenback and into gold. But the key is to do it slowly by giving each and every individual the choice, not by abolishing the Fed at the stroke of a pen on Day 1 of his presidency.
what is the difference between using paper or shiny rocks like gold, its the fractional reserve lending that is killing everything, or banks lending without any backing to the currency which i why you say gold i guess, currency only has any worth if you believe in it
The difference between using paper vs. gold is that the State can costlessly print as much paper money as it wants, but it cannot crate gold out of thin air. So if you do not trust the State's self-restraint (ha!) then you want to use gold rather than paper to trade and save.
I don't think Ron Paul could abolish the Fed at the stroke of a pen even if he wanted to. Fairly sure he would still have to go through Congress. This is why its very important that people get deeply involved in their government.
Becoming a delegate that will vote for Ron Paul is the first baby step needed. Not only is this the only way he can win the nomination but its the only way America can change. Essentially, people have to change their attitude.
Just to clarify my current position - I am no longer worried that Ron Paul might cause the market to crash because I have now discovered that his plan to get rid of the Fed is a slow and indirect one: let gold coins denominated in units of weights (ounce, etc) into the hands of Americans and be used for payment, trading and savings (non-taxable). Over time the greenback will wither away into irrelevance with a whinper not a bang, and this will not cause any big crash.
The housing bubble wasn't caused by Ron Paul. Why would you even consider him to cause the markets to crash? If he was elected, the dollar would increase in value because people would know our fiscal policies would be more responsible and we would have balancd budgets. This is economics 101.
I certainly don't think the current stock market crash is caused by Ron Paul. It is due to years and year of irresponsible policy by the Fed printing money out of thin air.
Initially I thought getting rid of the Fed too quickly would cause adjustment pains on the stock market, but now I have done more research on Dr. Paul's program, my concerns in this respect have been greatly alleviated (see my other response to jdog1kenobe earlier today).
Ron Paul isn't causing the market to crash. What's causing the market to crash is years and years and years of irresponsible fiscal behavior. The US has postponed the day of reckoning by borrowing and living far beyond its means. Now the bill has come due and must be paid.
No No, that is not the reason, the media and all the talking heads keep telling me Ron Paul is a loon, that Ron Paul is nuts, of course they must be right and Ron Paul's constitutional position must be wrong.
they crashed the stock market in 1929 as a plan set up in 1927. Three years later, the elite set up an American Coup that failed to get off the ground and at the same time, Wall Street financed and supplied Nazi Germany with the supplies needed to fight WWII. true story.
a question: since the purchasing power of the dollar declines because of the FED printing money is not the same happening in Europe? Isn't Europe having similar inflation due their central bank tand therefor will the decline of the USD be stopped at some point?
At the end of his 9/11/2007 speech, Ron Paul said he would not close the Federal Reserve on day 1 if he got elected. He said he would allow free competition among currencies in America. If you want to settle your contract with an ounce of gold, you would be able to do so without taxes, restrictions or penalties. People would be free to choose their currency: gold or Federal Reserve Notes. I think this is very smart.
We have a fake currency. Of course the market would have a downturn. There would be a lot of negative effects of Dr. Pauls dramatic changes, but the changes are needed. If we continue with our current system of fiat currency and the government supporting everyone the country will bankrupt not just crash. Find out what the accountant for the government has to say about it. Walker says by about 2015 we will be spending more than we earn.
I agree with you. The dramatic changes recommended by Dr. Paul are needed. I just wanted to make people aware that the transition to a hard currency would send big ripples through the stock market. But there is no other way if the US government is to avoid bankruptcy.
Yep. An asset backed currency is good step in the right direction, but initially we need to stop government spending. The only asset backed currency I know of currently is the Great Britain Pound, it is the most expensive and most stable currency on the world market.
Big changes are going to happen in our economy whether the next administration corrects or ignores the problem. It has been ignored for to long to correct with minor changes.
the stock market would crash because the stock market is being propped up by government spending, internal corruption, lobbyists and the industrial military complex. Just like housing is in a bubble, the stock market will crash. Corporate profits will still exist and those stocks will do well. The STREET runs most of these companies anyway. When the STREET get's worried thats when the stock plummets - that will happen regardless if Paul gets elected
I agree that the stock market is being propped up artificially, mainly by the Fed printing counterfeit money out of thin air. At some point this will erode confidence in the dollar, and Treasury bonds will no longer be regarded as a "safe haven". That's when the fun will begin...
There IS a way and it's been done before WITHOUT panic. You jsut infuse the Fed notes with United States Notes {Like JFK did} only you don't attend any parades out doors ! You transfer the currency to non debt notes and go on with life!
Thats right and I hope you are buying all the gold or silver you can..don't forget to hide it though. Bush as a order in place where they can take if from you again like FDR did.
Here is a possible turn of events if Ron Paul is elected.
1. The private federal reserve bankers will destroy the dollar putting the US into a depression in the hopes that the American people will blame Ron Paul for the disaster. They will be hoping that at least this way he will not win re-election.
2. The private bankers, zionists, or any status quo group may try to assassinate Ron Paul. This term of events might start a second American armed revolution.
This is true. It might actually play into Ron Paul's hands, because he will be seen as the only one with a sound policy to fix the mess in Iraq AND the only one with a sound policy to fix the mess on Wall Street.
Market's aren't efficient. The Private bank of the Fed Reserve constantly lower the value of the dollar.
If anything, it is the Fed and our Congressional overspending on policing the world that will crash the dollar, unless we do something NOW.
We can't kill the fed reserve overnight, what Dr. Paul wants to do is work in the direction where in 20 years we could reverse the damage that has been done.
Hi Oliver, I'm glad to see people across the pond showing an interest in our elections. Now you made a statement in your video that "markets are efficient as we know they are" which seems rather presumptious to me. Might I suggest that you take a look at MatrixEconomy dot com and learn a little about fiat currencies and the market. Now I think the Dr. Paul's position is more the abolishment of a fiat currency in a move back to the hard asset backed gold standard.
By "markets are efficient", I mean informationally efficient. This means that current prices reflect all that is known about future events before they take place. Suppose for example that we learn in 2008 that the Fed will be abolished in 2012. Then financial markets will move to reflect that immediately in 2008, they will not wait for the actual event to take place in 2012. I think that, in this sense, financial markets are informationally efficient.
That's exactly the point and why I referred you to the website MatrixEconomy dot com, because this so called "information" is just an illusion. The entire world economy is being controlled by 13 bloodlines. Yes it sounds crazy, but do the research and you will be better informed to make your own determination. This info is available online too.
im not ron obviously what ive gotten out of the research ive done on him is, it would be impossible to just shut down the federal reserve because we use all there money so he would simply open the market for competition with hard money like gold or silver or a gold or silver backed currency. and eventually the market would decide. but the gold would win because it appreciate continually in value and the federal notes loose value. thats some of it in a nut shell.
Again, as president he could not "open the market" all by himself. All he could do would be to lead the country through persuasion and education as to why hard assets are better than fiat currency. The only way he could do what you're talking about is if he abused the office of the presidency which he's said he will not do.
Even if he was elected he couldn't close the Federal Reserve immediately. In fact, since he would no longer be a Congressman he would not even be able to author legislation to that effect. Someone else would have to write the bill, Congress would have to vote in favor of it and he would then have to sign it. All he would be able to do as president is try and lead Congress towards the goal. We're probably talking about a full 8 years to implement most of his plans.
I think I would be willing to allow him to make one slime ball maneuver like Bush has done so many times and just declare "Executive privilege" or have an Executive order to rid us of this corrupt, private corporation, Federal Reserve that prints money out of thin air and then loans it to us with interest. What a sham.
Um no. If he did that it would violate all the principles that people like him for and it would break all the campaign promises he's making to not abuse the office of the presidency. This is the kind of reasoning that Bush uses... "Its okay to violate the Constitution because I'm doing what I believe is right."
Ya I know, I agree with you, I was being cynical and trying to get the part across that Bush and company are Communists. I think all he would have to do is spend some time on the tube and educate our ignorant America and when they see how we have been hosed, he could get rid of it legitimitly.
In the first presidential debate, Ron Paul said he would do it "in his second week" as President. (In his first week, he would abolish the IRS). I wonder what he meant by that.
He was answering the question that way to show he has "vision". He could have been a little more honest about how long this would actually take, but sadly this the way alot of politicians answer this type of question.
well to switch our money supply will take less than 4 years in office, can u imagine how much the economy will grow if americans had almost 100 percent of their wages, their will great change in the country, people will be able to save to start businesses and fight the big corporations that are abusing us as well, who cares about the stock market, its centraliztion of financial transactions mandated by government involvement, the real free market, will sort itself out
I think nobody, not even Ron Paul, knows how many months/years it would take. It is a random number that depends on the economic and political situation at the time. But I am confident that he could and would, within one 4-year mandate, restore some sort of place for gold in our financial system, freeze the money supply, reduce the amount of credit that banks can extend, and make these changes basically irreversible. Which would amount to virtually the same as abolishing the Fed.
I agree that it is stretching to say that Ron Paul could do all that in a week or two, but given that markets anticipate future events, it won't take more than a week or two for assets to get repriced.
I 'am not a Ron Paul but I believe he was going to accomplish it by installing competing currencies first
AntiBullS 3 years ago
what causes the market to crash? the media, and more specifically, the little investors
It's all over the news, and a lot of people are trippin'=selfforfilling prophecy...+ humans are animals, so we do what others do (you sell? owkay, i'll sell to)
But it wouldn't be on the news if banks were a bit more responable
motorious1987 4 years ago
So your blaming Ron Paul when your house of cards made of paper falls down ?
Xare420 4 years ago
I'm a Ron Paul supporter. If anything, today's 75bp rate cut shows why Ron Paul is right to get Americans out of the greenback and into gold. But the key is to do it slowly by giving each and every individual the choice, not by abolishing the Fed at the stroke of a pen on Day 1 of his presidency.
olivierzyx 4 years ago
what is the difference between using paper or shiny rocks like gold, its the fractional reserve lending that is killing everything, or banks lending without any backing to the currency which i why you say gold i guess, currency only has any worth if you believe in it
andyparf 4 years ago
The difference between using paper vs. gold is that the State can costlessly print as much paper money as it wants, but it cannot crate gold out of thin air. So if you do not trust the State's self-restraint (ha!) then you want to use gold rather than paper to trade and save.
olivierzyx 4 years ago
I don't think Ron Paul could abolish the Fed at the stroke of a pen even if he wanted to. Fairly sure he would still have to go through Congress. This is why its very important that people get deeply involved in their government.
Becoming a delegate that will vote for Ron Paul is the first baby step needed. Not only is this the only way he can win the nomination but its the only way America can change. Essentially, people have to change their attitude.
Voidka 3 years ago
you've got it backwards dude, ron paul will win because the market crashes.
jdog1kenobe 4 years ago
Just to clarify my current position - I am no longer worried that Ron Paul might cause the market to crash because I have now discovered that his plan to get rid of the Fed is a slow and indirect one: let gold coins denominated in units of weights (ounce, etc) into the hands of Americans and be used for payment, trading and savings (non-taxable). Over time the greenback will wither away into irrelevance with a whinper not a bang, and this will not cause any big crash.
olivierzyx 4 years ago
The housing bubble wasn't caused by Ron Paul. Why would you even consider him to cause the markets to crash? If he was elected, the dollar would increase in value because people would know our fiscal policies would be more responsible and we would have balancd budgets. This is economics 101.
DarkerDivinity 4 years ago
I certainly don't think the current stock market crash is caused by Ron Paul. It is due to years and year of irresponsible policy by the Fed printing money out of thin air.
Initially I thought getting rid of the Fed too quickly would cause adjustment pains on the stock market, but now I have done more research on Dr. Paul's program, my concerns in this respect have been greatly alleviated (see my other response to jdog1kenobe earlier today).
olivierzyx 4 years ago
Ron Paul isn't causing the market to crash. What's causing the market to crash is years and years and years of irresponsible fiscal behavior. The US has postponed the day of reckoning by borrowing and living far beyond its means. Now the bill has come due and must be paid.
obsidian2012 4 years ago 3
No No, that is not the reason, the media and all the talking heads keep telling me Ron Paul is a loon, that Ron Paul is nuts, of course they must be right and Ron Paul's constitutional position must be wrong.
tdot22 4 years ago
Well your seeing the thruth now that the current system is causing the market to crash.
Ask yourself why the smartest investors out there like Dr. Pauls message.
reveillerocks 4 years ago 2
better start investing in silver and gold, food, water, and buying some guns. Gonna be a mess.
mde2004 4 years ago 4
they crashed the stock market in 1929 as a plan set up in 1927. Three years later, the elite set up an American Coup that failed to get off the ground and at the same time, Wall Street financed and supplied Nazi Germany with the supplies needed to fight WWII. true story.
tgambill 4 years ago 6
True Story indeed. Watch "zeitgeist part 3" on google video.
sslteam07 4 years ago
Ron Paul is the cure for a future in this country. America will not exist if he doesn't get elected. America is almost over as we speak.
better start investing in silver and gold, food, water, and buying some guns. Gonna be a mess.
JackNeedles 4 years ago 3
a question: since the purchasing power of the dollar declines because of the FED printing money is not the same happening in Europe? Isn't Europe having similar inflation due their central bank tand therefor will the decline of the USD be stopped at some point?
edicccc 4 years ago
Update:
At the end of his 9/11/2007 speech, Ron Paul said he would not close the Federal Reserve on day 1 if he got elected. He said he would allow free competition among currencies in America. If you want to settle your contract with an ounce of gold, you would be able to do so without taxes, restrictions or penalties. People would be free to choose their currency: gold or Federal Reserve Notes. I think this is very smart.
olivierzyx 4 years ago
We have a fake currency. Of course the market would have a downturn. There would be a lot of negative effects of Dr. Pauls dramatic changes, but the changes are needed. If we continue with our current system of fiat currency and the government supporting everyone the country will bankrupt not just crash. Find out what the accountant for the government has to say about it. Walker says by about 2015 we will be spending more than we earn.
mysingerd 4 years ago
To mysingerd:
I agree with you. The dramatic changes recommended by Dr. Paul are needed. I just wanted to make people aware that the transition to a hard currency would send big ripples through the stock market. But there is no other way if the US government is to avoid bankruptcy.
olivierzyx 4 years ago
Yep. An asset backed currency is good step in the right direction, but initially we need to stop government spending. The only asset backed currency I know of currently is the Great Britain Pound, it is the most expensive and most stable currency on the world market.
Big changes are going to happen in our economy whether the next administration corrects or ignores the problem. It has been ignored for to long to correct with minor changes.
mysingerd 4 years ago
"Big changes are going to happen in our economy whether the next administration corrects or ignores the problem."
Well said...
olivierzyx 4 years ago
Please watch the doctramentary "The Money Masters", Google search will get you there.
amishsaint 4 years ago
the stock market would crash because the stock market is being propped up by government spending, internal corruption, lobbyists and the industrial military complex. Just like housing is in a bubble, the stock market will crash. Corporate profits will still exist and those stocks will do well. The STREET runs most of these companies anyway. When the STREET get's worried thats when the stock plummets - that will happen regardless if Paul gets elected
slipmatwax 4 years ago
To slipmatwax:
I agree that the stock market is being propped up artificially, mainly by the Fed printing counterfeit money out of thin air. At some point this will erode confidence in the dollar, and Treasury bonds will no longer be regarded as a "safe haven". That's when the fun will begin...
olivierzyx 4 years ago
agree
slipmatwax 4 years ago
There IS a way and it's been done before WITHOUT panic. You jsut infuse the Fed notes with United States Notes {Like JFK did} only you don't attend any parades out doors ! You transfer the currency to non debt notes and go on with life!
caucusinformation 4 years ago
I think it will crash before the 08 elections... I predict that we will have a crash or a deep recession by Christmas of 07...
beatnix99 4 years ago
I would not be surprised if what you say is true. I think it may be a depression though.
Dumbell99 4 years ago
Creating money out of thin air can't last forever. It's time for Peter to pay Paul and Peter has a huge pile of debt he created out of thin air.
Get it? Got it? Good!
The game is up!
softearth 4 years ago
Thats right and I hope you are buying all the gold or silver you can..don't forget to hide it though. Bush as a order in place where they can take if from you again like FDR did.
Dumbell99 4 years ago
3. The will of the American people is granted, no more illegal wars in the middle east, no more "federal" reserve scam, and a return to sound money.
1911trigger 4 years ago
Here is a possible turn of events if Ron Paul is elected.
1. The private federal reserve bankers will destroy the dollar putting the US into a depression in the hopes that the American people will blame Ron Paul for the disaster. They will be hoping that at least this way he will not win re-election.
2. The private bankers, zionists, or any status quo group may try to assassinate Ron Paul. This term of events might start a second American armed revolution.
1911trigger 4 years ago
I am afraid you hit the nail on the head with this, what you said happened to Andrew Jackson (the Number one).
2. Will happen for sure.
Dumbell99 4 years ago
The market's already crashing.
Spanishfries 4 years ago
This is true. It might actually play into Ron Paul's hands, because he will be seen as the only one with a sound policy to fix the mess in Iraq AND the only one with a sound policy to fix the mess on Wall Street.
olivierzyx 4 years ago
Great question. I would really like to see Ron Paul answer this one, I bet it would be incredibly informative and interesting.
jakeenk 4 years ago
Market's aren't efficient. The Private bank of the Fed Reserve constantly lower the value of the dollar.
If anything, it is the Fed and our Congressional overspending on policing the world that will crash the dollar, unless we do something NOW.
We can't kill the fed reserve overnight, what Dr. Paul wants to do is work in the direction where in 20 years we could reverse the damage that has been done.
soulmantim 4 years ago
Hi Oliver, I'm glad to see people across the pond showing an interest in our elections. Now you made a statement in your video that "markets are efficient as we know they are" which seems rather presumptious to me. Might I suggest that you take a look at MatrixEconomy dot com and learn a little about fiat currencies and the market. Now I think the Dr. Paul's position is more the abolishment of a fiat currency in a move back to the hard asset backed gold standard.
jvastine 4 years ago
By "markets are efficient", I mean informationally efficient. This means that current prices reflect all that is known about future events before they take place. Suppose for example that we learn in 2008 that the Fed will be abolished in 2012. Then financial markets will move to reflect that immediately in 2008, they will not wait for the actual event to take place in 2012. I think that, in this sense, financial markets are informationally efficient.
olivierzyx 4 years ago
That's exactly the point and why I referred you to the website MatrixEconomy dot com, because this so called "information" is just an illusion. The entire world economy is being controlled by 13 bloodlines. Yes it sounds crazy, but do the research and you will be better informed to make your own determination. This info is available online too.
jvastine 4 years ago
im not ron obviously what ive gotten out of the research ive done on him is, it would be impossible to just shut down the federal reserve because we use all there money so he would simply open the market for competition with hard money like gold or silver or a gold or silver backed currency. and eventually the market would decide. but the gold would win because it appreciate continually in value and the federal notes loose value. thats some of it in a nut shell.
laplante31 4 years ago
Again, as president he could not "open the market" all by himself. All he could do would be to lead the country through persuasion and education as to why hard assets are better than fiat currency. The only way he could do what you're talking about is if he abused the office of the presidency which he's said he will not do.
thomasw78 4 years ago
Even if he was elected he couldn't close the Federal Reserve immediately. In fact, since he would no longer be a Congressman he would not even be able to author legislation to that effect. Someone else would have to write the bill, Congress would have to vote in favor of it and he would then have to sign it. All he would be able to do as president is try and lead Congress towards the goal. We're probably talking about a full 8 years to implement most of his plans.
thomasw78 4 years ago
I think I would be willing to allow him to make one slime ball maneuver like Bush has done so many times and just declare "Executive privilege" or have an Executive order to rid us of this corrupt, private corporation, Federal Reserve that prints money out of thin air and then loans it to us with interest. What a sham.
jackdforrp 4 years ago
Um no. If he did that it would violate all the principles that people like him for and it would break all the campaign promises he's making to not abuse the office of the presidency. This is the kind of reasoning that Bush uses... "Its okay to violate the Constitution because I'm doing what I believe is right."
thomasw78 4 years ago
Ya I know, I agree with you, I was being cynical and trying to get the part across that Bush and company are Communists. I think all he would have to do is spend some time on the tube and educate our ignorant America and when they see how we have been hosed, he could get rid of it legitimitly.
jackdforrp 4 years ago
In the first presidential debate, Ron Paul said he would do it "in his second week" as President. (In his first week, he would abolish the IRS). I wonder what he meant by that.
olivierzyx 4 years ago
He was answering the question that way to show he has "vision". He could have been a little more honest about how long this would actually take, but sadly this the way alot of politicians answer this type of question.
thomasw78 4 years ago
well to switch our money supply will take less than 4 years in office, can u imagine how much the economy will grow if americans had almost 100 percent of their wages, their will great change in the country, people will be able to save to start businesses and fight the big corporations that are abusing us as well, who cares about the stock market, its centraliztion of financial transactions mandated by government involvement, the real free market, will sort itself out
careerseeker101 4 years ago
Well what you said there just made me understand what a free market is when you talked about the stock market.
Dumbell99 4 years ago
thomasw78:
I think nobody, not even Ron Paul, knows how many months/years it would take. It is a random number that depends on the economic and political situation at the time. But I am confident that he could and would, within one 4-year mandate, restore some sort of place for gold in our financial system, freeze the money supply, reduce the amount of credit that banks can extend, and make these changes basically irreversible. Which would amount to virtually the same as abolishing the Fed.
olivierzyx 4 years ago
Agreed but saying he could do it in a week or two is kind of stretching don' you think?
thomasw78 4 years ago
To thomasw78:
I agree that it is stretching to say that Ron Paul could do all that in a week or two, but given that markets anticipate future events, it won't take more than a week or two for assets to get repriced.
olivierzyx 4 years ago