Ron Paul was just on CNBC telling people that the people who work and pay are tired of paying for the benefits of those who cannot work. So, I ask you, are you tired of paying for your mother’s social security? Are you tired of paying for her medicare? Would you rather pay out of your wages directly or leave her on the street to die?
Ron Paul is a demagogue on this issue. Actually he is an upside down demagogue, who uses the passions, prejudices, and promises of the elite rather than of the common man to gain political power.
It is one thing to argue that the system needs percentage change in the face of financial weakness. It is another thing to try to undermine a system that has worked for almost a century.
Certainly the way to pay for those who can’t work is to get more people to work. Jobs programs that worked in the Great Depression must be used again. More people need to be working and the work has to be beneficial to society, not just a boondoggle. In a real sense, WW2 was a jobs program. But do we have to have war to have jobs programs? The only war left is total world destruction.
And it is amazing how the Republicans, with the exception of Ron Paul, seek to top each other in war rhetoric. But war is actually less efficient than the domestic jobs program that are needed now!
The president wants jobs programs, Will Rogers would have sought jobs programs. I don’t know about Ron Paul’s view of jobs programs. But the other Republicans, like Eric Cantor and Paul Ryan, want easy money as the solution to jobs. Easy money lending allows carpenters and builders to get back to work. But at what cost is this achieved? We criticise China’s empty cities yet so many want the same bubbles to happen here. And we now know that housing bubbles cannot last, so they can’t be better than projects that add value to the landscape that cannot last either.
The next housing bubble will likely be a short one. I understand that people have short memories, but I don’t think a housing bubble every decade is going to be that easily forgotten.
Barton Biggs reported That QE could take the form of house buying. If that were the case, the Fed would have to get renters and that could cause the balance sheet to bleed. Some sort of shadow bank easy money would have to support the Fed’s buying of houses whenever it happens. At some point a bubble could form with that Fed buying being the jump start. I had said that a house bubble could happen before 2020. Now I am thinking it could be even sooner than that.
So, we need to see that this is all about the number of jobs, and our officials should be focused on that. Ron Paul’s attempt to divide people is a Republican ploy that did not work too well under the Bush Administration.
Ron Paul said that he was not interested in ending the Fed. As I think he has a lot of understanding about the banking system, it would be interesting to learn more about what he thinks about the competition to the Fed that he briefly mentioned. But I would like to see him cut the elite demagoguery that is just not going to bring us together as a nation.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.