There are many compelling reasons why Ron Paul should become a Democrat or an Independent caucusing with the Democrats. I will try to list some really good reasons here:
1. He could team with Bernie Sanders I-VT, another individual who hates the behaviour of the Fed. Bernie Sanders wants the Fed audited just like Ron Paul does. Bernie Sanders has written extensively on the crony capitalism of the Federal Reserve Bank.
2. The Republicans have gotten just too corrupt. Washington DC is corrupt but the Republican freshmen Tea Party guys, Cantor and Ryan, were quietly funded to the tune of 10 million dollars in the 2010 mid term election by the hedge funds. A lot of this money was funneled to the Tea Party freshmen and other Republicans through third parties according to an MSNBC article. This is particularly odious because this same Tea Party says it is immoral to walk away from your home loan. Yet the same Tea Party is being funded by hedge funds that funded SIVs with credit and which allowed much of the housing credit crisis to build up and then crash. Couple this with the off balance sheet nature of the SIVs, and you had shadow bank weakness even advance to the doors of major commercial banks. The toxic loans were made possible by the funding from the hedge funds.
3. The hedge funds want to take over the political system yet again. So, why would hedge funds try to take over the political process with Cantor in the lead? Look at reason number 9 for one thing. And apparently Cantor is the point man for hedge funds. And it is not just taxation of hedge fund profits that are the cause of this new push with the Tea Party. It is also because hedge funds hate the Dodd Frank regulations. They want the capacity to blow more bubbles and that is difficult in the current atmosphere. Americans should rejoice that their gas is not at 5 bucks a gallon because that is how the hedge funds profit. They profited off the housing bubble as wealth was transfered to them from the middle class. The shadow banking system was massive compared to the regular regulated banking system.The SIVS that sunk Enron and others were also used to pump up and then sink the housing sector. There is no room in the Republican party for a guy like Ron Paul who hates this corporatism.
4. Ron Paul cannot separate himself from the Tea Party in the thoughts of the man on the street. Many people believe that Ron Paul founded the Tea Party. He did not, because it was founded on February 22, 2009 by people in Chicago and St. Louis. But he is known as a spiritual father of the Tea Party. He cannot seriously think to unwind that connection to people who now are getting the bulk of hedge fund favours without leaving the Republican Party. Remember when Hennessy was hanging around the Kudlow show and Kudlow was calling him the father of the Tea Party? He was there in February, 2009.
5. Some libertarians believe in a social safety net. There is room for libertarians to be Democrats in these extreme times. It is necessary that main street be protected from Wall Street and their very destructive hedge funds. Chris Dierkes says that the social safety nets are implied in Adam Smith’s views regarding the limitations of markets and in the morality of a civilized society not totally given over to market greed. The article was written in 2009 when indeed, the Democrats were benefiting from hedge fund donations and from the corruption of Geithner’s refusal to prosecute the bankers who did wrong (which would have included himself?) But now the tide has turned and the Republicans are the beneficiary of the bulk of hedge fund corruption.
6. We have to put a thumb on the Fed rather than destroy the Fed. If we nationalized the Fed then 1.6 trillion dollars owed to the Fed could simply be washed away. The result of banning the Fed would be catastrophic. We would have short term loans with balloon payments, forcing borrowers to become the gamblers. I reject the idea of those loans as much as I reject the idea of easy money loans from the shadow banks. Ron Paul should seek stability in the 30 year fixed mortgage. It worked for decades. It didn’t cause bubbles. It was based on responsible underwriting. How can we get back to the sound 30 year fixed mortgage with 20 per cent down? We can’t get there if the Republican corruption and hedge fund power consolidates. Ron Paul needs to totally repudiate the easy money cabal. Nationalization of the Fed and a law banning easy money loans to all but the uber rich is needed. The libertarians are always talking about savings and investment. The only way to affirm savings and investment is to repudiate the casino of easy money lending and securitization! Libertarianism cannot, in it’s present form, control the monster.
7. Spencer Bachus of Alabama said in late 2010 that the purpose of government was to serve the banks. How can anyone stay in a party that spews that kind of filth? That is unamerican. Yes, Dodd-Frank needs more teeth, but that can be done. It needs to be able to wind down bad banks. Ron Paul can’t be against a stronger Dodd-Frank can he? Bachus opposes Dodd-Frank because he wants the regulators to serve the banks, not the other way around! Surely Ron Paul can’t swallow that line of BS can he?
8. Ron Paul needs to realise that the traditional party of the people are the Democrats and the traditional party of the banks are the Republicans. To the extent that this can be restrengthened in our time is the extent to which the American people will have a fighting chance. No one is saying that Ron Paul and Bernie Sanders will see eye to eye on many things. Sanders wants nationalization of oil. Ron Paul is from an oil state. But working together they could help stop speculation, which is a major reason why oil prices continue to gouge Americans daily. Again, if Ron Paul is for savings and investment as a means to build the American dream, he cannot be for credit and speculation, the hedge fund way, can he?
9. The most important part of Dodd-Frank is that there are many systemically risky companies, including many hedge funds, that are no longer able to play with the financial system’s stability. This gripes the hedge funds to no end. They can’t play anymore. And they don’t like it. Small startup companies rely on a smaller shadow banking system as we see in the Time Magazine article dated June 27, 2011. This article, titled Is Dodd-Frank Reviving the Shadow Banks seems written to give the hedge funds the ability to hit Dodd-Frank. Ron Paul, the hedge funds are being contained and they don’t like it. They want to play and risk all but now they cannot play. The Democrats are stopping their entrance into the casino. And this affects their shadow activity in house lending as well. Do you really want this monster touching the major banking system that could cause a systemic meltdown? Wouldn’t it be better to caucus as a Democrat to stop these massive hedge funds from playing the shadow banking game?
10. The Democrats appear to be the party of compromise, while the Repubicans stress out the nation with their refusal to be political. Sometimes you can’t always get what you want. Ron Paul never gets what he wants so maybe he could be a more effective leader if he learned to compromise. Do we want the financial system to operate as a casino or as a responsible organism? This is what joining the Democrats would be all about, Ron Paul, compromise. I support the ban of certain speculation, like in housing and foodstuffs. And oil speculation should be looked at as well. If Ron Paul sees the merits of controlling a market for the greater benefit of civilisation, perhaps he could see himself as a Democrat.
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