Ron Paul saw it coming over six years ago. This is what he told Congress. You wonder what red meat they've been eating. Ostrich by any chance?

He told them that if Fannie Mae and Freddie Mac were not underwritten by the federal government investors would demand the institutions held to higher management and accounting practices.

"Ironically, by transferring the risk of a widespread mortgage default, the government increases the likelihood of a painful crash in the housing market," Paul predicted. "This is because the special privileges granted to Fannie and Freddie have distorted the housing market by allowing them to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive use into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans."

THAT WAS FIVE YEARS AGO! Deaf buggers, aren't they?

MinnPost - Ron Paul saw this financial mess coming
[Rep]

They certainly are.

But preserving the U.S economy is not on the feds or governments agenda - quite the opposite.

They want the economy to collapse so they can consolidate the assets, bring in the police state and move towards a North American Union with a new currency.

Another step towards world government.
[Rep]

Originally Posted by youcanhandlethetruth:
They certainly are.

But preserving the U.S economy is not on the feds or governments agenda - quite the opposite.

They want the economy to collapse so they can consolidate the assets, bring in the police state and move towards a North American Union with a new currency.

Another step towards world government.

If they wanted it to collapse they could have let it this week. I agree there may be many who would like One World Government; however they know that the biggest obstacle to that is the collapse of the current financial system.

Why ?

Because a total collapse of the current system would force people to start to think for themselves.

So billions, perhaps in the end trillions will be sent on ensuring the current system morphs into World Government.
[Rep]

They need a bit more growth in the system yet.
[Rep]

Originally Posted by :
pure market conditions.

What are pure market conditions? Sounds like fantasyland to me.
[Rep]

Originally Posted by youcanhandlethetruth:
They certainly are.

But preserving the U.S economy is not on the feds or governments agenda - quite the opposite.

They want the economy to collapse so they can consolidate the assets, bring in the police state and move towards a North American Union with a new currency.

Another step towards world government.

That may well be the plan but the Mexicans will usurp that they found the Nation of Aztlan.


[Rep]

Originally Posted by :
He [Gordon Brown] also said, once conference ended, he would go to the US to talk to financial institutions and other governments about "global financial supervision of what is a global financial system".

Not far to go now.
[Rep]

Ron Paul saw it coming? So did Karl Marx, and from a damn sight further away. that doesn't mean we should swallow the rest of their ****.
[Rep]

Originally Posted by Wowbanger TIP:
Ron Paul saw it coming? So did Karl Marx, and from a damn sight further away. that doesn't mean we should swallow the rest of their ****.

Here's an analogy: predicting that the world will end someday is not the same as predicting how it will end.
[Rep]

Originally Posted by Smidgey:
Here's an analogy: predicting that the world will end someday is not the same as predicting how it will end.

Firstly that would be a nice distinction for any observer of the event.

Secondly Marx predicted that the internal contradictions within capitalism would cause its collapse as much as he predicted that the proles would have enough and institute a revolution. In which he has now been vindicated as the US government has just effectively conceded that the entire capitalist system has gone pop.

Thirdly Paul is wrong to suggest that the problem was the mis-allocation of capital. The problem the USA had and has in there is nothing else other than McMasions and the supporting infrastructure for them to deploy capital into. Any rational deployment of capital would have had to take account of the lower labour costs available in a global economic system, a contest the US can not ever win.

The worst possible outcome for the US was the acceptance of the liabilities of the housing bubble onto the state's books, which has now happened saddling the federal government with 5 trillion dollars worth of liability of which around 500 billion is already in default. Incidentally along with another trillion from AIG on top of the ten trillion the federal government already owes. That still leaves another five trillion dollars of housing debt in the private sector. Which is why the distinct possibility is now in play of the bankruptcy of the USA itself. (Without even mentioning the tens of trillions of welfare, heath and pension liabilities of the US government estimated at 53 trillion by some sources)

The acceptance of these liabilities could well be the biggest and last mistake the federal government has ever made. Paul wanted to do this as a preference according to the quote cited. At least Bush had to look into the abyss before executing this desperate gambit.
[Rep]