Ron Paul Warns of Violence from Pending Dollar Crisis

[Kevin and 10]

http://www.businessandmedia.org/articles/2...1001105703.aspx

Scary times ahead? Perhaps, if you take credence in what Rep. Ron Paul, R-Texas, says.

Paul, who had a strong grassroots following during the 2008 presidential election, explained on Glenn Beck’s Sept. 30 radio program that perilous times lie ahead due to the Federal Reserve’s loose monetary policy. Host Glenn Beck asked how an Israeli strike against Iran might trigger problems with the American financial system.

“What happens when Israel strikes Iran or Iran has the earth rays and we know that they now have a nuclear weapon, what happens to our financial system at that point?” Beck asked.

The libertarian Paul maintained China would become the world’s financial heavyweight and they were already making preparations to be the world’s top dog.

“I think the Chinese take over,” Paul said. “If there’s a real panic and oil shoots up to a couple of hundred bucks, the Chinese will dump their dollars. Chinese are maneuvering for this. The more we threaten Iran, the stronger the Chinese influence gets because they're using the dollars that they have earned from us and saved, they have a trillion, and they are starting to buy up assets in Iran and build plants and get involved in their energy. So the whole thing is backfiring on us. We’re getting ready to put tougher sanctions on the Iranians and that will make things that much worse. It won't help the dissidents in Iran. It's going to cost us a lot of money, and there will be a bombing and that will be a big, big event. I think it will crash the dollar is what I think it would do.”

And what does the country look like after the dollar crashes? Not good the Texas congressman said.

“We think it was bad with the financial crisis,” Paul said. “When you have a dollar crisis, the whole thing quits functioning. The checks bounce and literally the federal government's checks bounce if you have – if inflation goes up.”

But the situation deteriorates even more Paul – with states leaving the union.

“I think we’re going to have a de facto 10th Amendment, secession,” Paul said “People are just going to ignore the federal government because they won’t – and there’s, you know, a total loss of credibility.”

Beck alluded to media charges and warnings from others that there would be violence and contended the right is being set up to take the fall for it.

“Congressman Paul, the media and even [Rep.] Patrick Kennedy said this, we heard this from two people, Muammar Gaddafi and I believe the other one was Ahmadinejad that both spoke last week and they – we’re hearing it all the time that there’s going to be violence here in America, that people are targeting,” Beck said. “Basically everyone is going to blame this on the right, any kind of violence.”

There would be violence, but not before a dollar crisis happens as some Democratic politicians and media personalities have warned, but afterward Paul said.

“I think that there will be violence,” he explained. “I hope we don’t have to go through, you know, a very violent period of time, but that's what happens too often when the government runs out of money and runs out of wealth, the people argue over, you know, a shrinking pie and, of course, the people who have to produce are sick and tired of producing.”

[w¡n9Nµ7 §£@¥€r 123]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

[I AM NOT THAT GUY 5,715]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

Nope. The direction is the other way. You will see unrestricted travel between North American countries before you see any sort of organized armed rebellion. Gang violence is much more prevalent, and destructive, to the American dream, than the rantings of a few gun nuts on a weekend drunk. Check out some of that MSNBC Lock-up, to see where the real threats are.

[w¡n9Nµ7 §£@¥€r 123]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

Nope. The direction is the other way. You will see unrestricted travel between North American countries before you see any sort of organized armed rebellion. Gang violence is much more prevalent, and destructive, to the American dream, than the rantings of a few gun nuts on a weekend drunk. Check out some of that MSNBC Lock-up, to see where the real threats are.

IDK, I find the thought of an eastern seaboard nation very appealing

[I AM NOT THAT GUY 5,715]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

Nope. The direction is the other way. You will see unrestricted travel between North American countries before you see any sort of organized armed rebellion. Gang violence is much more prevalent, and destructive, to the American dream, than the rantings of a few gun nuts on a weekend drunk. Check out some of that MSNBC Lock-up, to see where the real threats are.

IDK, I find the thought of an eastern seaboard nation very appealing

Hmmm, a Western capitol... Maybe regional associations will develope, something along the lines of devolution in the British Isles. That would be more along the lines of the founders concept, of having the Federal government do only those things it does out of neccessity.

[Kevin and 10]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

Nope. The direction is the other way. You will see unrestricted travel between North American countries before you see any sort of organized armed rebellion. Gang violence is much more prevalent, and destructive, to the American dream, than the rantings of a few gun nuts on a weekend drunk. Check out some of that MSNBC Lock-up, to see where the real threats are.

Don't forget the prevalence of Crystal Methamphetamine. Those gun nuts would be your best friends.

[scandal 951]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

Nope. The direction is the other way. You will see unrestricted travel between North American countries before you see any sort of organized armed rebellion. Gang violence is much more prevalent, and destructive, to the American dream, than the rantings of a few gun nuts on a weekend drunk. Check out some of that MSNBC Lock-up, to see where the real threats are.

IDK, I find the thought of an eastern seaboard nation very appealing

Hmmm, a Western capitol... Maybe regional associations will develope, something along the lines of devolution in the British Isles. That would be more along the lines of the founders concept, of having the Federal government do only those things it does out of neccessity.

Which founders?

Not the Hamilton/Madison ones, advocating a strong central government.

[Dan J 277]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

Nope. The direction is the other way. You will see unrestricted travel between North American countries before you see any sort of organized armed rebellion. Gang violence is much more prevalent, and destructive, to the American dream, than the rantings of a few gun nuts on a weekend drunk. Check out some of that MSNBC Lock-up, to see where the real threats are.

IDK, I find the thought of an eastern seaboard nation very appealing

Hmmm, a Western capitol... Maybe regional associations will develope, something along the lines of devolution in the British Isles. That would be more along the lines of the founders concept, of having the Federal government do only those things it does out of neccessity.

There are reasons why the Articles of Confederation was replaced by the Constitution, hopefully we don't go back in that direction.

[I AM NOT THAT GUY 5,715]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

Nope. The direction is the other way. You will see unrestricted travel between North American countries before you see any sort of organized armed rebellion. Gang violence is much more prevalent, and destructive, to the American dream, than the rantings of a few gun nuts on a weekend drunk. Check out some of that MSNBC Lock-up, to see where the real threats are.

IDK, I find the thought of an eastern seaboard nation very appealing

Hmmm, a Western capitol... Maybe regional associations will develope, something along the lines of devolution in the British Isles. That would be more along the lines of the founders concept, of having the Federal government do only those things it does out of neccessity.

Which founders?

Not the Hamilton/Madison ones, advocating a strong central government.

True, there was a push-pull between Jefferson's ideas and Hamilton's ideas. Capitalism reared its ugly head, even back then, but Federalists like Hamilton and Madison were more interested centralizing the country's monetary system, restoring credit, negociating foreign trade, and eliminating the barriers to interstate commerce, than micromanaging the affairs of local govenments.

[The_Dude 1,142]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

Nope. The direction is the other way. You will see unrestricted travel between North American countries before you see any sort of organized armed rebellion. Gang violence is much more prevalent, and destructive, to the American dream, than the rantings of a few gun nuts on a weekend drunk. Check out some of that MSNBC Lock-up, to see where the real threats are.

IDK, I find the thought of an eastern seaboard nation very appealing

I think Western Hippyland which will consist of California, Oregon and Washington will be the new economic powerhouse of this hemisphere. All pvssy as$ blue-dogs will be deported.

[scandal 951]

Secession may not be all that bad. Key will be to make sure the crazies don't control the process.

Nope. The direction is the other way. You will see unrestricted travel between North American countries before you see any sort of organized armed rebellion. Gang violence is much more prevalent, and destructive, to the American dream, than the rantings of a few gun nuts on a weekend drunk. Check out some of that MSNBC Lock-up, to see where the real threats are.

IDK, I find the thought of an eastern seaboard nation very appealing

Hmmm, a Western capitol... Maybe regional associations will develope, something along the lines of devolution in the British Isles. That would be more along the lines of the founders concept, of having the Federal government do only those things it does out of neccessity.

Which founders?

Not the Hamilton/Madison ones, advocating a strong central government.

True, there was a push-pull between Jefferson's ideas and Hamilton's ideas. Capitalism reared its ugly head, even back then, but Federalists like Hamilton and Madison were more interested centralizing the country's monetary system, restoring credit, negociating foreign trade, and eliminating the barriers to interstate commerce, than micromanaging the affairs of local govenments.

Well, since this thread is ostensibly about the "Pending Dollar Crisis" and Ron Paul's idiotic views regarding same, I suppose the position of modern day advocates for a strong-dollar, restoring credit and a robust Fed are not at all out of whack with what good old Al Hamilton was talking about.

[mawilson 2,133]

Well, since this thread is ostensibly about the "Pending Dollar Crisis" and Ron Paul's idiotic views regarding same, I suppose the position of modern day advocates for a strong-dollar, restoring credit and a robust Fed are not at all out of whack with what good old Al Hamilton was talking about.

No need to quote/unquote the word "crisis" - the Fed's unspoken policy is to weaken the dollar

as much as possible to aid recovery, so yes, there will be a dollar crisis.

[w¡n9Nµ7 §£@¥€r 123]

I think Western Hippyland which will consist of California, Oregon and Washington will be the new economic powerhouse of this hemisphere. All pvssy as$ blue-dogs will be deported.

I don't know, I think the "Acela corridor" will give you guys a real run for the money.

[scandal 951]

Well, since this thread is ostensibly about the "Pending Dollar Crisis" and Ron Paul's idiotic views regarding same, I suppose the position of modern day advocates for a strong-dollar, restoring credit and a robust Fed are not at all out of whack with what good old Al Hamilton was talking about.

No need to quote/unquote the word "crisis" - the Fed's unspoken policy is to weaken the dollar

as much as possible to aid recovery, so yes, there will be a dollar crisis.

The Fed, as an organ of monetary policy, doesn't have an official position on the dollar or exchange rates.

The Treasury secretary does. Here's a recent statement on the subject, continuing to reiterate a "strong dollar" outlook, as reported in the Chinese business press:

http://english.caijing.com.cn/2009-10-14/110281846.html

Global Reserve Currency

A key topic at the IMF conference was whether the U.S. dollar should be used as an international reserve currency, and whether it can be replaced. Unofficial discussions were reportedly held during the meeting between the so-called BRIC nations – Brazil, Russia, India and China – and global oil producers about the possibility of dumping the U.S. dollar for other currencies in future oil transactions. The news triggered a fall in the dollar's value.

Geithner said China and the United States have a shared interest in safeguarding the value of the dollar.

"Our interest is in trying to make sure both American and global investors know that U.S. markets are strong in liquidity and offer stability," he said.

Investors have shown confidence in the U.S. government's ability to maintain sustainable growth, Geithner said, and that confidence has helped stabilize the value of dollar assets.

According to Geithner, the U.S. economy has seen a significant adjustment. Its current account deficit has fallen to about 3 percent of GDP in the second quarter 2009 from about 7 percent in 2005. This shows that "exceptional things" are being done to fix the financial system, either without borrowing or by borrowing substantially less from the rest of the world, Geithner said.

The stability of the U.S. currency is a top concern for the treasury secretary, as the dollar plays a special role as the world's international reserve currency, thus affecting monetary stability. "The dollar's role comes with special burdens and responsibilities that require we are especially careful to sustain confidence in U.S. financial assets," he said.

But Geithner emphasized that a fundamental issue for reforming the international monetary system is to get economic policies right.

"You can have people spend a lot of time talking about international monetary reform and the future of the fund, the SDR (Special Drawing Rights)," he said. "But if people don't get the policies right, it doesn't matter what they do."

Geithner also said the United States needs to prove it can balance sustainability and a fiscal deficit. The best way to reach that goal is to restore the financial system and encourage a healthy private sector.

[w¡n9Nµ7 §£@¥€r 123]

mawilson did say it's an "unspoken" policy.