Ron Paul Predicts a 15 Year Depression

Ron Paul gives an undiluted account of the state of the economy and where it is heading. Phil Davis writes about it at the Financial Post: (free registration may be required.)

But the credibility of both western governments and their currencies is waning, and has been ever since the gold standard was abandoned in 1971, says Mr Paul. And that means even “safe” investments are far from safe, he claims.

“People will start to abandon the dollar as current and past economic policies create a steep rise in interest rates,” Mr Paul says.

“If you are in Treasuries, you will need to be watchful and nimble to time your escape.”

Unfortunately, cashing out will not protect the value of investments, he insists, because “fiat” currencies will all decline over the coming years as measures to try to haul the world economy out of recession fail. “The current stimulus measures are making things a lot worse,” says Mr Paul.

“The US government just won’t allow the correction the economy needs.” He cites the mini-depression of 1921, which lasted just a year largely because insolvent companies were allowed to fail. “No one remembers that one. They’ll remember this one, because it will last 15 years.”

At some stage – Mr Paul estimates it will be between one and four years – the dollar will implode. “The dollar as a reserve standard is done,” he says. He sees little hope for other currencies where central banks have also created too much liquidity dating right back to the early 1970s.

“Europe and the US will both have to fundamentally change their money systems,” he adds.

And don’t even mention shares to Mr Paul: “The last place you want to be is in the stock market,” he says. “It may not bottom out for 10 years – just look at Japan.”

(...)

However, his views are, for the first time, being taken seriously in Washington. Like another politician who recently aimed for high office, Al Gore, Mr Paul’s uncomfortable truths are starting to be deliberated at elevated political levels. “Before last summer, in meetings nobody really knew I was there. Now they often defer to me on economic matters. But you won’t catch any of them admitting that publicly – not yet at least.”

Read it all, but it would be best to pour a scotch first.

Bill Maher Interviews Ron Paul

Real Time With Bill Maher is back with new episodes on HBO. It's a good thing, because that's the only thing worth watching on HBO-Can. I PVR'd it and finally saw it Thursday night, a week late. Right off the bat we have his interview with controversial Republican Congressman Ron Paul. I have to admit, I didn't pay much attention to Paul when he sought the Republican nomination. But watch this interview, it's the most candid thing you'll see on television. Maher is a socialist, but he realizes that Paul probably has a point and is trying to work it out for himself. Ultimately, they end up agreeing on many things: Legalizing dope and "ending the American Overseas Empire." You simply don't see this on network or cable news.



I should note, the rest of the show was great as well. I disagree with a lot of things Maher says but he puts the debate out there. Everybody has to leave their cliche talking points at home.