Bob Barr: American Economy

[Eldeecue]

Problems with our Government have to with....our Government? Whoa. Deep man.

[MakeLoveWarNot]

We love Ron Paul Jeff Pure Christian Fisher Jane Bowell and Al Gore We are in support of a Fisher Paul ticket in 2012.

[rxganja]

Mr.Barr,l still wish you could/or would have come back to your Office the day Jim & Cheryl Miller planned to show you what Cheryl had to endure 365 days each year.

Gary S. & I (Jacki R.) flew in from WI. , to

[whodank]

Question. WHY THE HELL IS MCCAIN THE REPUBLICAN CANDIDATE? We are so screwed......

[clericimachine]

Both Democrats and Republicans have harmed our nation long term. While I do not believe unbridled capitalism is in the best interest of our nation, we are way off track.

The role of Government in our economy should be to set limits and define oversight. People should be protected on some level from guys like me-lol

In America today our central control and deficit spending is killing our sovereignty and eroding our liberty. Our founding fathers are all rolling in their graves.

[ryanshaunkelly]

Former United Stated Senator from Alaska:

Maurice Robert "Mike" Gravel

Got history cred?

[bigdog49094]

The Fed is not a government agency you need to do more research, the Fed is privately owned. However your urban myth is widely held while not true. I ran into the American dollar is not fiat currency too and by definition it is fiat currency. You need to go back to economics school.

[KarateKidX]

the top 2 economic periods in American history are the late 90s and the 50s. Both after the establishment of the fed. I'm not saying that it's responsible for the success, but don't tell me that it's the source of the problem.

[Mudh0ney16]

That's your argument? The Federal Reserve couldn't be the source of economic problems because we've had times of prosperity?

You have to realize that the Fed constantly applies bandaids to our economy that look good in the short term but in the end devalues our dollar and undermines free market economics. Not to mention it's an unelected, unaccountable, and unconstitutional organization.

[KarateKidX]

well it certainly holds up better than your argument of no statistics or scientific theory.

[Mudh0ney16]

Wow. So you're saying your argument contains compelling statistics and scientific theory?

OK, so here's an argument I think you could go along with. There have been several industry bubbles since the creation of the Federal Reserve (see the recent massive government housing bail out), and the great depression, all since the creation of the Fed. Therefor, by your logic of chronological genius, the Fed must be the cause of these things.

Creating free credit devalues our dollar, it's a fact.

[KarateKidX]

"So you're saying your argument contains compelling statistics and scientific theory"

i'm saying that my argument contains at least trace amounts of scientific theory, which is more than your argument can say.

i never said the fed caused the economic booms, i just said that it didn't hold them back.

also, weakening currency isn't always a bad thing.

[bigdog49094]

Hey Kid what will happen if the US Gov't bails out Freddie Mac and Fanny Mae and takes on their bads debts as there own? Maybe it will be just an increase of National Debt which never has to be paid right? Is large national debt that can never be paid really good for America as the Dems and Reps say it is? If so maybe all I need to do is borrow more money to get rich.

[KarateKidX]

I agree, the debt is the biggest problem facing our nation today, i agree with you.

I did not once say anything about fanny mae or freddie mac

I did not once say that borrowing is a good thing, in-fact, in our state of debt, it's one of the worst things we can be doing.

I merely pointed out that the largest surplus that the government ever had, and the greatest amount of economic growth in our history occured after the formation of the fed.

when you assume, you make an ASS out of U and ME.

[bigdog49094]

Kid I did not attack you and sorry you thought so actually I saw yo support The Fed and have some legit questions. So what do you think the Freddie Mac and Fannie Mae bail out along with bail out of I think the number in 9 other bank this year? Will the FDIC have the money to cover all the bank failures or will we have to print money? Would it be better just to let the banks go under like we did in 1929 or should we bail them out? You said the FED was wonderful in the 1950's but I live in 2008

[KarateKidX]

u know what happened in 1929 right? I don't think this country needs another great depression right now.

now a bailout of those banks is sort of a grey area. the banks themselves don't deserve it, but all their clients are also affected.

One of the things the fed does is it forces banks to store a certain percentage of their money in case something like this happens. It also loans money to banks that the banks have to pay back with interest.

[bigdog49094]

I know what happened in 1929 the Government did not bail out the banks. In the 1930's the Wiemar Republic in Germany bailed out the Gov't by printing money and gave raise to Hitler's rise to power. I am looking for answer #3.

The Fed forced Fannie Mae and Freddie Mac to keep reserves which due to bad business they could not do. The Fed did loan money to Fannie Mae and Freddie Mac at interest which they could not pay back. WHAT GOOD IS THE FED? Other than it costs people money.

[KarateKidX]

1. germany printed money to pay off germany's debts to other nations, not(at least not only) to save their own banks.

2. Germany was in deep shit and vulnerable to hitler anyway

3. Fannie Mae and Freddy Mac fucked up more than usual, more than the Fed could prevent

4. The cost of the bailout is estimated to be about 15 billion in losses(about $50 per American). instead of paying for that by going to war, we can pay for that 10 times over by ending the current war.

[bigdog49094]

1.) How did Germany cover this money printed out of nothing?---With the wealth of other nations?

2.) Oh then the economy in Germany was not the major factor? No in the end it is always about money and power.

3.) The Fed was so suppose to intervene before things got so screwed up at Freddie Mac and Fannie Mae. So where were they?

4.) Actual figures on the cost are, WE DON'T KNOW, We do know that in the last 3 months they lost $25 Billion and some figures for this yr are $300 Billion.

[KarateKidX]

1.) true, but not that relevant to the issue at hand

2.) yes, the economy in Germany was the major factor. the economy was in bad condition even before they printed money, and with that debt over their heads, that made that even worse.

3.) apparently the banks got further in debt, than the fed-mandated reserve could cover

4.)about $15 billion is what most news organizations estimate, and yes, i trust news organizations for the most part, i'm not paranoid.

[bigdog49094]

Kid

Last year we deficit spent or borrowed around $425 Billion to run gov't so let's spend some of the savings of the ending of the Iraq war to cover that. That leaves noting to cover bail outs and new bigger gov't programs or tax cuts. We need more money so we can tax for it, print it, borrow it, or capture assets of other nations. That is the only way I can see us getting it. I don't think spending more money will make us richer and bail outs are spending more money.

[bigdog49094]

!.) Yes Germany printed money like the US will do to pay it's debts to other nations. The real wealth of Germany came from capturing the assets of the nations around it.

2.) Germany was in deep shit and so is America and we are both vulnerable to a Hitler.

3.) Fannie and Freddie did fuck up but now that the financial genius of Government are running them they should be ok. LOL

4.) I don't think the Government would have bothered to take these banks over if the cost was just $15 Billion.

[KarateKidX]

1) i never argued that point, i said that Germany didn't print money for it's own private banks

2) this is where you are truly out of touch. The situation the US is in now is NOTHING close to the situation Germany was in under the treaty of versilles.

3) bad grammar causes your statement to be ambigous

4) $15 billion isn't the money that these companies spent, it's the loss that the government will take. $15 billion is the debt of the people experted to default on their loans.

[bigdog49094]

1.) The diff is that American gov't does now own some of it's own banks and Fannie and Freddie like it or not belong to the US Govt so is just printing money for the govt itself.

2.)The treaty of Versillies did not have anything to do with the German ecomomy only its ability to wage war. So are you saying since America has the ability to wage war we are economically sound?

3.) Sorry copied your bad grammar when I answered #3 I will make it clearer for you.

[KarateKidX]

The treaty of versilles said germany had to pay reperations. That had an effect on it's economy.

3) no you copied my good grammar from #3, the bad grammar you added on your own. I'm not talking capitalization and punctuation. I'm talking about Subdject confusion. I guess part of the problem also came from the fact that you made a sarcastic statement, which confuses things further.

[bigdog49094]

Actually the reparations of the treaty of Versailles is no where near what the US national debt is so I dont' see how the source of a debt has anything to do with the amount so you do admit that Germany then had and US now has massive debt loads and that was my point. If you are confused now wait until the US Gov't has had a chance to run these two banks for a while you will truly be confused in a year or so LOL

[bigdog49094]

3.) The US Gov't is now in the private banking business by the take over of Freddie and Fannie and so we will see how the finacial genius of US Gov't is at running private banks. US Gov't is widely known for shrewd financial decisions.

4.)If the loss is only $15 Billion I agree with you. But if the loss was only $15 Billion the Fed would not bother with a take over of these two banks they would just loan them $15 Billion that is chump change to the Fed

[bigdog49094]

Kid today we loaned AIG $85 Billion and yesterday we let Lehman Bros go down the tubes and last week we could not loan $15 Billion to Fannie and Freddie? I must say I am confused.

[KarateKidX]

Do you even know what a bank is? Freddy and Fannie don't need $15 billion to get on their feet. That's just the loss the government is expected to take. You have to realize that people are still paying back their home loans And that Freddy and Fanny are still technically making money, just not enough money to cover their expenses.

[bigdog49094]

They are making money? You sound like my friend who plays slot machines, he always tells about all that he won off the slot machines, but when I ask him how much more he has today than yesterday he will admit that he is $500 poor but quick to add that he won a lot. LOL

[KarateKidX]

Most of Freddie and Fannie's money is still being payed back by people with a mortgage. I never said $15 billion will fix the problem, i said that it is the expected loss.

[bigdog49094]

Looks to me like the $300 Billion figure I read is more likely, especially when you look at the $85 Billion for AIG a much smaller fish. Like I said if was just $15 Billion they would not have taken over Freddie and Fannie but merely loaned like they did with AIG. But in two years or so we know for sure. Maybe sooner?

[KarateKidX]

Did i not say that people are still paying interest on their loans? yes, the $300 billion isn't counting the non liquid assets of those companies.

[bigdog49094]

Well we will see and maybe you are right this is no big deal and there is no financial crisis and as long as we can print money, issue more debt and make government bigger there should be no problem here.

[KarateKidX]

I never said that this is no big deal and that there is no financial crisis. there is a HUGE financial crisis, HUGE! If the government protect people's investments in their banks, we would have runs now and the crisis would be worse.

the government let the banks go out of business before the great depression, and look what happened then.

[bigdog49094]

Kid is really no big deal. In '29 banks failed because people tried to withdraw money and they could not comply. Today the Fed bails the banks out by printing money and issuing debt which will will cause inflation and deflate the value of the dollar. In '29 after the bank holiday here my dad was able to withdraw his money based on 5 cents per dollar in bank. Now if they print enough money so it's true value is 5 cents per dollar, of what it is today, how is it any different?

[bigdog49094]

So now the Gov't owns Freddie Mac and Fannie Mae and will any bankers in these institutions lose jobs or paycheck no. Where will the money for these costs come from? Well instead of profits from these banks paying these expenses now they will be paid for out of the Gov't budget. The business losses and deficits are now Gov't losses and deficits. You prepared to pay much higher taxes to bail out these banks? The money has to come from American taxpayers it can come from no where else.

[bigdog49094]

Kid did you ever wonder how Hitler paid off the debt of Wiemar Republic he inherited? Hmmm did he invade Poland and every other country he could to take those countries assets to pay for Germany? I think he did. So should we bail out banks and pay for it by taking the oil fields of Iraq and Iran? Russia attacked Georgia for money? Is that the answer?

[KarateKidX]

additionally, russia attacked georgia because the georgian president was killing civilians in south ossetia, many of which were russian nationals.

[bigdog49094]

In the end it is about money and wealth and we will see what America does and I am sure it won't be pretty. You did not respond to the rest why?

[KarateKidX]

the rest of what?

[InTheSticks1881]

Barr is close enough to Ron Paul as it gets. I suspect he like many others, including myself, rediscovered our roots, that the Party had left us.

[peepnklown]

Barr: It's all about the free-market, Sir...good job.

Chuck Baldwin = Theocracy

[shanklinmike]

watch?v=SzTozC3PCF4

watch?v=V-4kCD4nbrw

Please help me spread liberty, not big govt, war, taxes, loss of civil liberties......

[Magicguy15]

I do not trust you Mr. Barr if you were part of the C.I.A. and have a CRAPY voting record then no one should trust you! We needed MARY RUWART or RON PAUL! I hope that you don't run next year and I pray that you are not the next president!

[everelusive]

The U.S. Govt and the Federal Reserve are separate entities. The Fed Reserve is privately owned and holds a monopoly on producing American currency that is loaned, at interest to the United States Federal government. 100% of your federal income tax is used to pay back the interest on this loan to the Federal Reserve. You people need to go back and do your homework before you form opinions based on the b.s. you were brainwashed with in public schools.

[LiptonGuy]

This clown won't get even 5% support, from the millions of people that support Ron Paul.

Where was this clown, when Ron Paul was running strong ?

Was this guy saying THE SAME STUFF, when he was a member of the Republican Party ? Didn't think so.

[Whoo69]

Libertarianism fails in election after election in America because Americans don't want a return to the robber baron age. They don't want a guy who preaches a 19th-century ideology. They want someone who is in the 21st Century! Libertarianism doesn't offer real solutions; all its "solutions" are just massive deregulation, cutting government size. They offer no alternatives.  "Give it back to the states", they say, as if every state is somehow equipped with all the tools to succeed.

[Glockstar22]

Since your big government socialism of the Repubs and Demoncats has been so successful. It has led to an economy that is based 2/3 on consumer spending, has a massive trade deficit, an overburdened welfare state, and declining military power around the world. You way is the way the British lost their influence. making the right decision now can assure American preeminence for the 21st Century.

[t0nt01982]

Heh. That "19th century ideology" is what kept us from all the mess we're in now. You think our Founding Fathers didn't know what "democracy" was? the fallacy of the Federal Reserve? the regressive income tax? welfare? war? the power of government? obviously you dont read their works. try reading the anti-federalist and federalist papers. Those were straight from the founding fathers' mouths.

[Whoo69]

I always get weary when a Libertarian talks about economic "freedom" because, in reality, "economic freedom" simply means shattering all the good regulations that protect workers and consumers in favor of bigger corporatism and an expansion of the corporatocracy. They want corporations to have even more control over our lives, more corporate trade agreements that ship jobs overseas, and less ability by consumers to determine their country's economic destiny. It's sick.

[SSSLLLAAYYEEERRRR]

Good regulations? Do you mean the min wage laws that keep unskilled workers from getting hired as well as hiking up the price of all goods? Do you mean price fixes and subsidizes that choke out competition? Do you mean safety regulations that cost so much that small businesses cannot even start and workers lose say over how they do their job? You mean government bolstered unions that force workers to join and pay dues and outlaw other competing unions? Where are these "good regulations"?

[SSSLLLAAYYEEERRRR]

Corporations are given power by regulations their lobbyist crafted. It was government that gave the corporation the rights of a person while shielding them from liability and granting them perpetual life. Trade agreements have nothing to do with economic freedom and that you would suggest that shows how mistaken you are. Economic freedom means lots of competition and lots of choices for consumers brought to you at the cheapest market price. Look into economics and drop the socialist mantras.

[ronfezoo7]

Just hear that you are running for president???

You truly are the biggest, most arrogant buffoon if you think you're going to save us conservatives from Senator McCain. Instead, all you're going to wind up doing is getting Comrade-Obama elected president - and, in the process making yourself the most despised individuals amongst conservatives.

Better get used to being around dope smokin', America bashing, criminal coddling, welfare state building dems.

[bigdog49094]

I would like to have faith in Barr and will vote for him but I think in the END we will get Obama or McCain and the flushing sound you hear will be America going down the drain. If you are killed by a bullet or killed by a knife are you not just as dead? That is difference between McCain and Obama.

[YazDawg]

legalize competing currencies so the fed won't have a monopoly on the dollar. ty

[Whoo69]

wha the hell does that mean exactly? return to gold and silver, or go back to the pre-fed days where there were literally 1000s of different currencies? It would be confusing as fuck!

[SSSLLLAAYYEEERRRR]

The chance of 1000 currencies appearing is slight. The amount of precious metals is just not that high. Chances are there would be a couple of currencies that compete in a similar region. Different currencies would be backed by commodities and all would be accepted. The real benefit is it separates govt from the currency. It also allows people to use a currency that they choose, making the currencies responsible for inflation and other problems derived from tampering with the supply of money.

[YazDawg]

We would not have 1000s of different currencies unless the market decided that that would be best for everyone.

[KenMacMillan]

One American currency is all we need. We just need to get rid of the fed  get back to a gold standard.

[SSSLLLAAYYEEERRRR]

If competing currencies are created then the money is not tied to the government. With a gold standard only the govt can issue money. The US govt can keep devaluing the Fed note and drive the country into ruin. With currency that retains its value without govt allows for an economy separate from govt to appear and the economic turmoil that comes with the crash of a country will be reduced. It would be easy from there for privatization of govt services to happen and govt to be removed completely.

[kkassam]

Great video Mr. Barr, its the most clearly I've heard you talk about the problems of the central bank and inflation. Now I'm curious to hear your solutions, a drastic change in monetary policy would not be easy to implement.

[bigdog49094]

Nope it won't be easy and I don't think Barr said easy just necessary. But is better than Obama-McCain plan of change change change with no real plans.