Ron Paul: Depression Is Coming
Aug 30, 2010
4 Comments
Dan Weil | NewsMax | August 30, 2010
Rep. Ron Paul, R-Texas, says depression looms for the economy and that failure to extend the Bush tax cuts for everyone would hasten the process.
“It will be devastating if the (tax) breaks aren’t renewed,” the 2008 presidential candidate told Newsmax.TV.
“That represents a tax increase. It’s the unknown hanging over the market,” he said. The Obama administration and many Democrats in Congress want to renew the cuts only for those with income of less than $200,000.
“I don’t understand how they can think that way. (But) when I see what they’ve done with the medical care bill and the financial reform bill, they’re capable of doing that,” Paul said.
Story continues below video.
Even without expiration of the tax cuts, the economy is headed for depression, he predicts. “That will just make it worse much faster.”
Paul is introducing a bill next year for the nation’s gold reserves to be audited.
“It’s common sense for the country to know what it owns,” he said. The last audit was in the 1970s, and a lot of central banks have sold or loaned gold since then.
“Hopefully someday there will be a gold currency, or they will return gold to the people because it was taken from them in the 1930s at a very low rate,” Paul said.
“We should know what we own. Why should anybody oppose us counting what’s in the bank, in case we make use of it, just because too many questions are raised about what central banks have done in the last 10 to 15 years?”
Paul dismisses contentions that there’s no gold at Fort Knox or in the Federal Reserve.
“The bigger question is what have been our commitments or loans,” Paul said. “That’s why I want an audit of the Fed and to check all the agreements they have with foreign central banks and governments.”
And that’s the main reason the Fed successfully opposed his proposal this year for an audit of the central bank, Paul says. “They didn’t want us —as a people or Congress — to know what deals they made with other central banks.”
Transparency is the main issue for the Fed, says Paul.
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I see a depression coming because of the debt. Buying gold is a safe bet that can always be sold if the new administration can somehow pull off a recovery. The debt still has to be handled through either inflation or default.
The U.S government debts will always increase and what they can do and always do is to print trillions of dollars to solve the debts…so gold will definitely rise in the next couple of years.
However, not many people can afford to buy physical gold as it’s at a real high price now. So leverage comes in important…and I mean using online gold trading.
I have been using a system that rides on the gold trend and is making consistent income. Even if the gold price collapse because of some big news, it’s still able to hedge and profit. Unfortunately, many investors don’t know much about the online spot gold trading opportunity.
We give all of our money to these countrys that have been fighting eachother since the start of time. Hel>>>>>>>>>>>>>………..
I fear that too many people are too ignorant to understand the reality of the worlds debt. They’ve had 60 years of good times, and don’t actually realize that there are bad times too.
Just look how a little credit crunch affected people in 2008. And that wasn’t even a serious crash.