Re: Question regarding the budget deficit

Howard Beale <howardbeal1@xxxxxxxxx> wrote:
> On Sep 17 2005 5:15 AM, Paul Gee wrote:
>
>> HON. RON PAUL OF TEXAS
>> BEFORE THE US HOUSE OF REPRESENTATIVES
>> September 15, 2005
>>
>> The Coming Category 5 Financial Hurricane
>> http://www.house.gov/paul/congrec/congrec2005/cr091505.htm
>
>
> That was scary.

It scared me, too, back in the 1980's. I can't tell you
what's going on, but I'll tell you why I'm no longer scared.

A couple of statements from Congressman Paul:

"The flawed paper money system in existence since 1971 has
allowed for the irresponsible spending of the past 30
years."

That was an amazing event in 1971. Now if I take a USD20
note to its issuer, the US government, I can exchange it
for 2 tens or 4 fives. If I take the note to a restaurant,
I can exchange it for a meal, but the restaurant owner won't
have any more luck with the Feds than I will. Everyone's
signed off on this deal; don't ask me what it'll take to
wise everyone up. Nothing in the last 30 or so years has
been enough.

"Foreigners now own over $1.4 trillion of our Treasury and
mortgage debt."

What do the foreigners want with all those chips? All
Uncle Sam will do is color them up or down; something
non-intuitive must be going on. Milton Friedman says
thinking about money throws us off; he says think about
goods and services. Foreigners see our future goods and
services as so attractive that they're willing to sit on
our money now and see what we've got to offer down the road.

Is the US economy going down the toilet or headed for
greater innovation and productivity? Listen to the railbirds
if you like; I'm watching how the big stacks bet.
.

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