Re-Banking the Problem
Re-Banking the Problem
In the video, former congressional representative, Ron Paul, discusses his views of what he considers a forthcoming financial crisis. He posits that the coming crisis will be worse than the great depression of the recent financial crisis of 2008. While the recession was caused by failure in the banking industry, the forthcoming crisis will occur because of a crisis in the currency. The government’s actions to deal with the present and previous financial crisis lack economic sense because they have placed the country in more trouble. They have contributed to the country increasing its national debt. The biggest impact of this is that investors will start losing confidence in the dollar. This will have massive repercussions for the government. In the first place, the government will not be able to pay interests on its existing debts. Secondly, it will find it harder to borrow money. In addition, it will not be able to maintain the army or even expand welfare. However, Paul says that the biggest consequences of the crisis will be on the people and the society. People will lose their savings and investments. There will be massive inflation when the creation of new money continues. There is a possibility of social unrest because of the crisis. ATMs may no longer have money, banks may refuse to give loans, and businesses may refuse to use dollars for trade.
Paul also discusses his sentiments concerning the Federal Reserve. He does not consider it important for the economy and he believes that it should be abolished. He cites the fact that the reserve is corrupt and it is not working in the best interests of the people as it has becoming a financial risk. It has failed to observe the basic laws of economics. The reserve performs economic experiments when it decides to print new money out of thin air thereby increasing the money in circulation. Paul reasons that this is a poor move on the government’s part. By advocating for such a move, the government has failed to learn from countries such as Germany and Spain, who have used the same measures but have ended up suffering more. The Federal Reserve has also taken measures that have increased the country’s national debt through excessive borrowing. The cost of maintaining this debt will continue and this will place the country in a dire situation. Other countries may refuse to lend the US money.
Paul also downplays the government reports that the country’s economy is improving. He notes that the government uses misleading statistics to get its data and information. The consumer price index reports do not present a complete picture of the country’s financial situation. To make his points, Paul notes that many people today are living from paycheck to paycheck with more earning less than $30, 000 per year. Many people today are relying on food stamps. He forecasts that half of the children born today will end up using food stamps for a point in their lives. He also observes that the country’s money supply has increased by more than 400% since 2006. The government is using money that it does not have and this continues to increase its debts. These factors indicate the poor economic status of the country.
Paul hints at the fact that he supports the gold standard, which the country no longer uses. He notes that even though the government can declare paper money legal tender, it does not have the power to increase its value. The country will begin experiencing a financial crisis when people start losing confidence in the dollar. Paul notes that this is already happening as some countries are already trading using other currencies. When the collapse happens, the government will focus on controlling the available capital. It will do this by formulating and establishing laws, which will direct people on how to use their money and where to put it. Paul urges people to take adequate measures to protect their wealth. The government can do little to solve the problem since it created it in the first place. Therefore, it is up to the people to learn how they can ensure that they are protected from the crisis.
People can take several measures to ensure that they protect their wealth. Paul encourages people to take these measures when it is still legal and cheap to do so. These measures are contained in the book, The America 2020 Survival Blueprint. The first step is to ensure that they keep their money out of reach of the US government. The text describes the three legal assets that people do not have to report ownership to the government. The second step that people can take is to own the most lucrative asset during a time of crisis. The details of this are contained in the book. The third step is to get out of dangerous assets and instead own that will protect the investor. The financial crisis will cause a wide distribution of wealth, and this will affect people who own traditional assets. Silver is seen as a main potential investment and is considered more valuable than gold according to the book. The next step involves learning the strategies that people can use to protect their families.
The video describes other strategies in the book, which people can use to protect themselves from the forthcoming financial crisis. It notes that some of these ideas may seem radical and even anti American. However, they are important, as they will help people to protect themselves and their investments. The government may find itself in a situation where it is not able to sell bonds at reasonable prices. This shows that people no longer trusts the dollar and this will lead to a decline in its value. It describes how people can get away from the biggest hurdle during a time of crisis, how they can organize their financial documents simply and effectively, and where to go to in case a crisis happens in the US. The book offers information on how one can invest in the best hedge funds in the world without paying any fees.
It describes how people can move money from the US to other countries in a legal way, without reporting any of it to the government. Another strategy involves how a person can get reliable income in the US over the next ten years, without depending on the traditional investment options such as bonds. Such investments tend to be risky and they are affected by inflation. The book also shows its readers how they can open foreign bank accounts online and it gives them help on the measures to take. It also notes that it is possible for people to acquire private gold storage facilities in the country. It further advices people on how they can have an ultimate wealth defense. According to the video, it is not possible to ascertain when the financial crisis will happen. However, people can take these measures and they will be prepared when the crisis does eventually happen.
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