Ron Paul: False Recovery is Under Way
Congressman Ron Paul writes on a topic that he’s personally familiar with witnessing… how massive government intervention works, and how it must inevitably end poorly. In this piece he focuses on the trillions of dollars being forced into the nation’s financial system, and how they are filling new massive asset bubbles that are poised to pop once again.
Paul discusses the housing market which has little chance of returning to normal, commercial real estate on the verge of collapse, and manufacturers who can’t sell a thing to debt-laden and underemployed consumers… all signs the economy is still flailing.
The problem, as he describes it, is that the market has yet to cleanse itself of the dirtiest misfires experienced throughout the previous asset bubbles. Instead, we see government handouts coming to an artificial rescue. Worse still, the money to fund them is being squeezed out of taxpayers, conjured up from Treasury debt sales, or simply printed with a blatant disregard for the consequences. None of these strategies is sustainable and all put the nation at risk, in different ways, of hyperinflation.
To quote Dr. Paul, “I am reminded of the outlook in 1930, when the experts were certain that the worst of the Depression was over and that recovery was just around the corner. The economy and stock market seemed to be recovering, and there was optimism that the recession, like many of those before it, would be over in a year or less. Instead, the interventionist policies of Hoover and Roosevelt caused the Depression to worsen, and the Dow Jones industrial average did not recover to 1929 levels until 1954.”
His full article on being prepared for the worst is available from Forbes Magazine.