What was that Ron Paul saying about inflation?
Posted on January 16th, 2008 by bile Categories and Tags: Uncategorized, currency, debt, Department of Labor, economics, energy, energy costs, Federal Reserve, Federal Reserve System, fraud, heating oil, inflation, politics, Ron Paul, Washington, Yahoo, your moneyhttp://money.cnn.com/…
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No wonder Ron Paul recently won the Wall Street Chatter presidential poll: he’s the only candidate who has been warning us of the threat inflation poses to our economy — a threat that looms larger every day. Now news is breaking that in 2007 wholesale prices rose at their fastest rate in 26 years. Yahoo! Finance tells the story:
The Labor Department reported that wholesale inflation was up 6.3 percent for all of 2007, reflecting a huge increase for the year in various types of energy costs ranging from gasoline to home heating oil.
And that’s not the only trouble in our economy:
The economy skidded to a virtual standstill in the final three months of last year, raising fears the country could fall into a recession, unable to withstand the multiple blows from the prolonged downturn in housing, a severe credit crisis and soaring energy costs.
Already, unemployment is rising. The jobless rate jumped to 5 percent in December, up from 4.7 percent in November. That was the biggest one-month surge in unemployment since October 2001 in the wake of the 2001 terrorist attacks.
The various economic threats have sent consumer confidence plunging and pushed the economy to the top of voters’ concerns.
How are the politicians in Washington responding to all this? They’re planning to raise our fuel taxes — by up to $0.40 a gallon over the next five years. Dr. Paul today condemned this idea in the strongest terms: “This is a great example of how out of touch big government and big business are with the American people. With gas at three dollars a gallon and a slowing economy, the last thing we need is a tax increase to be paid by Americans who can least afford it.”
Not only is inflation up but the Federal Reserve is trying to curb the crunch by making $30 billion more cheap money available and rumoring to lower interest rates by as much as 75 basis points… making even more cheap money available. Prolonging the bubble… prolonging the pain.
4 Responses to “What was that Ron Paul saying about inflation?”
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January 16th, 2008 at 1:54 pm
Prolonging the malthusian catastrophe?
January 16th, 2008 at 9:52 pm
How’s that?
January 17th, 2008 at 9:42 am
It’s a bit of a stretch, that’s why I put the question mark, but the term Malthusian catastrophe is often applied to all kinds of situations beyond it’s original food and population meaning. Here we go:
So as opposed to the scarcity of resources occurring due to population growth outstripping the environmental supply, you have a temporary, artificial scarcity of resources occurring due to government growth.
January 17th, 2008 at 5:10 pm
You are confusing wealth with money. Here is a post that talks about it. I’ve run across some articles and books on the subject but can’t remember them at the moment.
In any case… it’s not scarcity per se that’s the problem. That always exists. The problem is dependence. That however is not in any way related to Malthusian catastrophe as I’ve always understood it nor would what you describe be that. There is plenty of potential for wealth. People aren’t looking to create it or are hindered by their government.