Paulson lies about the root cause of the financial crisis

Paulson repeats the lie that the root cause of the current financial crisis was the correction in the housing market, when the actual root cause is the privately-owned Federal Reserve creating huge amounts of dollars and making them available cheap to lending institutions, a process which they are continuing.

I guess he's following nazi Joseph Goebbel's principle that if you repeat a lie often enough, people will begin to believe it.

Expansion of the money supply causes inflation, which even Bernanke was forced to admit in testimony before congress is a tax on the American people.

This is also how they're paying for the Iraq war, since the only other way to pay for it is to raise taxes.

So they don't raise taxes, but you pay for it with inflation, loss of home equity value, and loss of value in investment and retirement funds.

Did you really think the country could spend $10 Billion per month in Iraq and it wasn't going to cost you anything?

Category:

News & Politics

Tags:

• bailout
• Paulson
• treasury
• secretary
• lies
• federal
• reserve
• financial
• crisis
• iraq
• billions
• dollar
• inflation
• credit
• housing
• prices

[Dragonfly6160]

This crisis was the result of unregulated speculation in the real estate and securities markets. The real estate price drop just exposed the the incredible recklessness of banks and other financial institutions. Get ready for more of the same because congress will not regulate Wall Street.

[EchelonMonitor]

Another factor was credit card debt--people refinanced their homes to pay off their credit cards, then found themselves stuck with house payments AND credit card bills they couldn't pay.

But don't forget the war. The Romans had to tax their citizens to raise funds to go to war.

If Bush had had to raise taxes to pay for the war, the public would have been against the war, so he just borrowed from the international bankers to make people think it was a "free" war.

The collapse is the cost.

[clintonlies]

what is wrong with Paulsons left little finger ?

is he a Clone or an alien ?

he sure as hell is not human....

POS

[EchelonMonitor]

Oh man, I didn''t see that before--that is weird.

I guess his left little finger goes weird when he's lying.

[centerM87]

With Paulson now seeking virtually unfettered authority to administer the largest bailout of the financial industry in U.S. history, many are wondering whether Paulson also doesn't come with enormous potential conflicts of interest.

[EchelonMonitor]

And CNBC propogandists lie and say Paulson is well respected by the public and congress and everyone is glad Bush chose him for Treasury Secretary--unbelievable--and they call themselves a "news" media.

Conflict of interest couldn't be more blatant--he was CEO of one of the companies to be bailed out--Goldman Sachs.

He received a $118 Million tax-free payout to become Treasury Secretary.

[pretorious700]

Pelosi and Paulson should both be in jail. We are seeing the most self serving corrupt idealogues in power now(continuing with Tim Geithner) that this country has ever produced. And that's saying something.

[TadRapidly]

He's distinguished alright: as the biggest criminal in american history. What a pathetic tool.

[Solarfactor]

The Fed also pulled the M3 statistics in 2006.

WHY?

[Solarfactor]

Obama has aligned himself with the same Wall Street crooks like Paulson.

Never before has a cabinet been compromised of so many Wall Street goons.

Guess who Obama's top contributer is, too...

[VICSWEB1]

How he got away with this I will never know. Fascism is USA.

[mit26chell]

@Dragonfly6160 The core of the problem was our central bank who have authority to artificially set interest rates. Interest rates were too low, for too long. On top of this, the Fed has authority to purchase housing-related GSEs debt, which transfers the risk of a mass default, increasing the chances of a crash. These GSEs through their line of credit, distorted the housing market by allowing them to attract capital they couldn't have attracted if we were operating in a truly free market.

[rmccay88]

@1gunner1000

No kidding man. Judging by some of these comments, it looks like more people need to read about Austrian economics...

[RobinSpence100]

@Dragonfly6160 OMG superficially true. Hey crooks don't foot the bill for all they cause, and laugh at those they steal from and those framed and threatened to shut up but for thier LIES.

[Dragonfly6160]

I'm afraid both major political partys in the US are owned by Wall Street.

[Dragonfly6160]

EchelonMonitor- I agree with all of your comments.