May 15 at 11:16AM
Ron Paul Predicts the Collapse of the Dollar
The Texas congressperson says the current Pelosi scandal may be good for the country, in that it may slow down Democrats' efforts to convert the nation into a socialist state.
He also lays blame for our current financial mess at the feet of John Maynard Keynes and warns that the U.S. dollar may be experiencing its last fitful sussurations…
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For all I know, Paul is right. I can't even pretend to have any idea what's going on with anything concerning economics.
As a matter of fact, until just now, I thought John Maynard Keynes was Steely Dan's rhythm guitarist on their Two Against Nature tour back in '00.
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"Two Against Nature" is one of the best sounding DVD's of all time. DTS. Perfect. The studio mixing is unreal. The only comparison in terms of sound and excellence on DVD is "Queen's Greatest Hits: Volume One." If you have surround sound and are all digital these are must haves for audiophiles.
If you want to know more about Keynes, read Paul Krugman's blog.
Basically, Keynes was an economist who studied the Great Depression, and recessions in general. He used to be considered a giant in his field, before the new breed of macro-economics took over. (Krugman is of the opinion that we're in the Dark Ages, as far as economics are concerned.)
Now, you can say what you want about whether Krugman is right, but I'd like to point out two things:
1) Paul Krugman is a nobel prize winning economist. Ron Paul is a doctor with, to my knowledge, no schooling at all in the subject.
2) The new school of macro-economics hasn't exactly shown that it knows what it's doing.
There's a great book called 'Butterfly Economics' that covers the subject of why modern economic theory blows chunks.
(Yes, I am a nerd. Why do you ask?)
If the dollar takes care of that alcohol problem and goes to rehab, it won't collapse. Doesn't Ron Paul know "bailout" is code for intervention?
News flash: bubbles are a byproduct of a free market system whether it is artificially inflated or not. The market has very little to do with actual "value". It has everything to do with "perception of value". When the value of something goes up, the herd says, "Hey I want some of that, its value is going up" and when people buy it, it causes the value to go up (bubble grows). Then at some point someone says, "Hey this is over valued, I need to sell." The value drops because it is sold and everyone else says, "I need to sell, the value is going down" (bubble pops).
My prediction: Some time in the future there will be another housing bubble and market bubble. And then the bubble will burst. But I refuse to predict when.
This is not at all based upon hundreds of years of market bubbles growing and popping. Really. I'm a market guru soothsayer.