Due to the COVID-19 crisis, the federal government in conjunction with the nations privately-owned central bank the Federal Reserve System has flooded our economy with trillions of dollars in new liquidity to cushion the American people from the fallout from the completely unnecessary economic lockdown. The question we face is whether the roughly $7 trillion in bailout and stimulus funds in the CARES Act and in the Feds unprecedented money-printing will actually spur a rebirth of commercial activity or lead to another decade of slow or non-existent growth.
The last time we tried a massive stimulus effort launched by Washington we got the $700 billion TARP bailout of the big Wall Street banks by the outgoing Bush Administration in 2008. That wholly unjustified food stamps for the rich scheme was loudly opposed by constitutional conservatives such as Congressman Ron Paul and helped launch the Tea Party movement. Why should the very banks that were responsible for the irresponsible lending policies that caused the subprime mortgage collapse get their irresponsibility rewarded by the U.S. taxpayer? The incoming Obama Administration followed with an $800 billion shovel-ready stimulus plan that wound up sending money to congressional districts that did not exist and to bankrupt companies like the infamous Solyndra.
In addition, the Federal Reserve under Ben Bernake began a process of money-printing called Quantitative Easing which meant buying up mortgage-backed securities, Treasury notes and other paper assets. Between 2009 and 2014, the Fed pumped $3.7 trillion into the banking system and slashed interest rates to almost zero. The result of this $5 trillion so-called investment directed by government planners? The slowest economic growth in decades and the worst recovery from a recession in the post-World War II era while the National Debt doubled between 2007 and 2015.
The Bush-Obama money-printing rampage was reminiscent of Franklin D. Roosevelts clumsy efforts to end the Great Depression in the 1930s. Following and greatly expanding on the course laid down by his predecessor Herbert Hoover, FDR tried to cure the Depression by raising taxes, massively increasing spending on phony, dead-end public works projects, paying farmers to destroy their crops amidst widespread hunger, regulating private industry in a Mussolini-like fashion, and empowering labor unions to cripple the nation with strikes. The result was no end to the Depression but another mini-Depression in 1937-38. Unemployment was almost as high as when he took office five years before. In fact, the United States had the slowest and most drawn-out recovery from the Depression than any other industrialized nation.
The Federal Reserve didnt help either, by continuing to contract the money supply during this period of unparalleled economic despair. Most free-market economists agree that had Hoover and Roosevelt maintained a sound gold-based dollar, reduced spending and cut taxes instead of increasing them, the Depression would have been more like the 1920-21 downturn, sharp but short with a highly prosperous decade following it.
With COVID-19, we see that the politicians and central bankers in Washington, D.C. have learned nothing from history. They have no solution to any problem other than to spend and print money and increase debt. With the cost of the so-called CARES Act clocking in at $1.8 trillion, it is twice as expensive as the Obama plan and represents over half of all federal revenues in 2019.
In addition, the Federal Reserve again slashed interest rates to zero, eliminated bank reserve requirements and embarked on another QE of up to $125 billion daily. Yes, boys and girls, you heard that right, daily. We also face the ever-present danger of runaway inflation as all that new unbacked paper money injected into the economy will likely cause rising prices at some point or another. Will we wind up like Venezuela? Probably not, but it wont be pleasant either.
Wealth is not created by a federal program or a federal handout. Government has never created wealth anywhere at any time. Nor does wealth roll off a printing press or a computer entry in the banking system. Wealth is created by investment and work, by millions of producers and consumers utilizing the kind of stable money and honest pricing system only the free market can ensure.
Its time that the course of nearly a century of wealth redistribution and funny money creation by our power elites be brought to an end before the American Dream is permanently lost to our children and grandchildren.
Go here to see the original:
Government action can't save the economy | Guest - The Trinity Journal
- 'Shrinkflation'? Blame the Fed - Newsmax - March 22nd, 2024 [March 22nd, 2024]
- Ron Paul Tells Tucker Carlson the Exact Date There Was a Coup and We Lost Our Government - Mediaite - March 20th, 2024 [March 20th, 2024]
- Ron Paul: It Dawned On Me That The Republic Was Gone When Allen Dulles Was Appointed To The Warren ... - RealClearPolitics - March 20th, 2024 [March 20th, 2024]
- The rise and - possible - fall of David Shafer - The Atlanta Journal Constitution - June 2nd, 2023 [June 2nd, 2023]
- Yes, that was Paul Hornung on Packers' sideline in Ice Bowl - Packers.com - June 2nd, 2023 [June 2nd, 2023]
- Cap Times Idea Fest 2023 save the dates | Paul Fanlund ... - The Capital Times - June 2nd, 2023 [June 2nd, 2023]
- Folks tell Ron Keller his memories of growing up in Naperville could ... - Positively Naperville - June 2nd, 2023 [June 2nd, 2023]
- The Man Who Invented the Trillion-Dollar Coin - New York Magazine - June 2nd, 2023 [June 2nd, 2023]
- Opinion | Why Texas Republicans Are Targeting Renewable Energy - The New York Times - June 2nd, 2023 [June 2nd, 2023]
- States that have produced the most NBA Finals champions - MaxPreps - June 2nd, 2023 [June 2nd, 2023]
- All Community Pro-Am starting holes on Saturday, Sunday - McCook Daily Gazette - June 2nd, 2023 [June 2nd, 2023]
- The World and Everything in It: June 2, 2023 - WORLD News Group - June 2nd, 2023 [June 2nd, 2023]
- Sen. Rand Paul staffer's parents speak out after he was 'brutally ... - March 31st, 2023 [March 31st, 2023]
- Rand Paul staff member stabbed in D.C., has life-threatening injuries - March 31st, 2023 [March 31st, 2023]
- Aide to Senator Rand Paul critically wounded in Washington DC stabbing ... - March 31st, 2023 [March 31st, 2023]
- The Antiwar Movement Roars Back to Life | CNSNews - March 4th, 2023 [March 4th, 2023]
- Ron Pauls Retirement Advice: Do This One Thing ASAP - March 4th, 2023 [March 4th, 2023]
- The Ron Paul Institute for Peace and Prosperity : The Antiwar Movement ... - March 4th, 2023 [March 4th, 2023]
- Feb. 19: Ron Paul, Tulsi Gabbard to Speak at Anti-War Rally ... - February 20th, 2023 [February 20th, 2023]
- 5 Things You May Not Know About Ron Paul : NPR - NPR.org - February 20th, 2023 [February 20th, 2023]
- The Real Disinformation Was The Russia Disinformation Hoax - February 5th, 2023 [February 5th, 2023]
- The Ron Paul Institute for Peace and Prosperity : The Real ... - February 5th, 2023 [February 5th, 2023]
- Paul McCartneys Decade-Long Creative Surge Post-Beatles To Be Explored In Man On The Run From Oscar Winner Morgan Neville - Deadline - February 5th, 2023 [February 5th, 2023]
- Ron Paul hospitalized after he appears to suffer stroke - New York Post - January 30th, 2023 [January 30th, 2023]
- Ron Paul Issues an Urgent Warning to Retirement Savers - January 30th, 2023 [January 30th, 2023]
- The Ron Paul Institute for Peace and Prosperity : Zelenskyy Regime to ... - January 30th, 2023 [January 30th, 2023]
- XPONENTIAL FITNESS, INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance... - January 15th, 2023 [January 15th, 2023]
- Ron Paul: 'Twitter Files' Make It Clear, We Must Abolish The FBI - December 28th, 2022 [December 28th, 2022]
- Ron Paul: A Tale Of Two Midterms | ZeroHedge - December 28th, 2022 [December 28th, 2022]
- Retiring History Theatre artistic director Ron Peluso looks back at fond moments from his 27 years on the job - St. Paul Pioneer Press - December 26th, 2022 [December 26th, 2022]
- Ron Paul | Biography, Education, Books, & Facts | Britannica - December 21st, 2022 [December 21st, 2022]
- The Ron Paul Institute for Peace and Prosperity : Is Washingtons ... - December 21st, 2022 [December 21st, 2022]
- The Ron Paul Institute for Peace and Prosperity : Europe Commits ... - October 25th, 2022 [October 25th, 2022]
- Ron Paul 2012 presidential campaign - Wikipedia - October 23rd, 2022 [October 23rd, 2022]
- Nevada's micronation of Molossia has a sounder currency than the dollar - Washington Times - October 19th, 2022 [October 19th, 2022]
- Dune Sound Team on Finding "The Voice," Using "Fake Documentary Realism" & the Rescue of Paul Atreides - Below the Line |... - October 19th, 2022 [October 19th, 2022]
- Paul LePage has softened his stance on immigration. Or has he? - Bangor Daily News - October 19th, 2022 [October 19th, 2022]
- 38 Celeb Couples Who Have Been Together More Than 20 Years, Which Is Like, 150 Years In Normal People Time - BuzzFeed - October 19th, 2022 [October 19th, 2022]
- Ron Paul: It's Time To Tell Biden We Say 'No!' To Nuclear War OpEd - Eurasia Review - October 15th, 2022 [October 15th, 2022]
- The Moment the Republican Party Lost Control - The New Republic - October 15th, 2022 [October 15th, 2022]
- Paul Ryan: Trumps unelectability will be palpable by 2024 - The Hill - October 15th, 2022 [October 15th, 2022]
- Governor Ron DeSantis Appoints Fourteen to the Florida Rehabilitation Council for the Blind - Governor Ron DeSantis - October 15th, 2022 [October 15th, 2022]
- Paul Newman recalls losing his only son Scott to addiction in memoir: I never thought it would be fatal - Fox News - October 15th, 2022 [October 15th, 2022]
- How To Resist CBDCs5 Ways You Can Opt Out of This Dystopian Future - International Man - October 15th, 2022 [October 15th, 2022]
- Bob Doucette: 2022 campaign a Wild West of ideas of how to govern Oklahoma - Tulsa World - October 15th, 2022 [October 15th, 2022]
- Warm start to the week, then chilly temps later; thunderstorm chance Tuesday evening - MPR News - October 15th, 2022 [October 15th, 2022]
- Ron Paul: Will Italys Election Foreshadow US Midterms? - Libertarian Party - October 8th, 2022 [October 8th, 2022]
- With POTUS non-endorsement endorsement of Ron DeSantis, the race for Florida Governor is over - Florida Politics - October 8th, 2022 [October 8th, 2022]
- Miranda Webb: Trauma, anarchy and perilous life on the run from Northeast Ohio to Mexico - Akron Beacon Journal - October 8th, 2022 [October 8th, 2022]
- Ben Sasse and the battle over what kind of conservative leads the GOP - Washington Examiner - October 8th, 2022 [October 8th, 2022]
- Slayden carries Wood River past Freeburg and back into the playoffs - St. Louis Post-Dispatch - October 8th, 2022 [October 8th, 2022]
- 'The water came up so fast': The heroes of Tonya Court and Wisconsin Street - Naples Daily News - October 8th, 2022 [October 8th, 2022]
- Wisconsin Republicans still fixated on 2020 election in 2022 - PBS Wisconsin - October 8th, 2022 [October 8th, 2022]
- The Ron Paul Institute for Peace and Prosperity : School Shutdowns ... - September 29th, 2022 [September 29th, 2022]
- Fans Discover Ron Paul Delivered Late Pop Icon Selena - September 29th, 2022 [September 29th, 2022]
- Flashback: Ron Paul Railed Against the FBI in 1988 - NOQ Report - September 29th, 2022 [September 29th, 2022]
- Paul Sullivan: Chicago White Sox need to shake up their clubhouse culture by dealing 1 or more of their core players this offseason - The Killeen... - September 29th, 2022 [September 29th, 2022]
- Tim Ryan Says Americans Need To Give Up Gas Cars as He Drives Around Ohio in Gas Guzzlers - Washington Free Beacon - September 29th, 2022 [September 29th, 2022]
- Pianist Paul Barnes and Native flutist Ron Warren to premiere piece Monday in Lincoln - Lincoln Journal Star - September 27th, 2022 [September 27th, 2022]
- POLITICO Playbook PM: Mitch McConnell and the tale of two moderate Dems - POLITICO - POLITICO - September 27th, 2022 [September 27th, 2022]
- Cam'ron and A-Trak 'U Wasn't There' Review - slantmagazine - September 27th, 2022 [September 27th, 2022]
- As the Economy Collapsed, Why Were Economists Silent? - The Epoch Times - September 27th, 2022 [September 27th, 2022]
- CBDCs, SDRs, and the Re-Monetization of Gold Here's What Happens Next - International Man - September 27th, 2022 [September 27th, 2022]
- Lessons Learned: Ron Paul's Warnings Against the War on Terror Stand True - Libertarian Party - September 17th, 2022 [September 17th, 2022]
- KRULL COLUMN: Maybe it's an oath they don't understand - Evening News and Tribune - September 17th, 2022 [September 17th, 2022]
- 9 Tips to Tackle Your Financial Goals and Still Have Fun - Money Talks News - September 17th, 2022 [September 17th, 2022]
- 10 States With the Most Homes at Risk of Wildfire - Money Talks News - September 17th, 2022 [September 17th, 2022]
- 5 Handy Keyboard Shortcuts That Make Internet Life Easier - Money Talks News - September 17th, 2022 [September 17th, 2022]
- What we know about Texas and Florida's transport of migrants - Axios - September 17th, 2022 [September 17th, 2022]
- 15 States With the Highest Union Participation Rates - Money Talks News - September 17th, 2022 [September 17th, 2022]
- Winter is Coming But the 2022 Ram 1500 Isn't Worried - MotorBiscuit - September 17th, 2022 [September 17th, 2022]
- '8 Simple Rules' Turns 20: 10 Big Names Who Appeared on the Sitcom - TV Insider - September 17th, 2022 [September 17th, 2022]
- Tech and finance moguls are putting money and weight behind Trump with a brain Ron DeSantis - Fortune - September 11th, 2022 [September 11th, 2022]
- What Is Peter Thiel Thinking? - The New Republic - September 11th, 2022 [September 11th, 2022]
- 7 of the Most Beautiful Places to Retire in America - Money Talks News - September 11th, 2022 [September 11th, 2022]
- 3 Ways to Lower the Rising Risk of Electrical Fires - Money Talks News - September 11th, 2022 [September 11th, 2022]
- Inflation Is State-Sponsored Terrorism - SchiffGold - September 11th, 2022 [September 11th, 2022]
- Quick hits: Pujols clouts 696th homer to tie for fourth all-time as Cardinals rally to win - St. Louis Post-Dispatch - September 11th, 2022 [September 11th, 2022]
- It's no coincidence that the most successful democracies are constitutional monarchies - The Telegraph - September 11th, 2022 [September 11th, 2022]
- "Distinguished," "loyal," "failure": Denver reflects on the retirement of Chief Paul Pazen and its hopes for new Chief... - September 6th, 2022 [September 6th, 2022]