Margaret Schaut

One more conservative viewpoint on the world at large.

Inflationary Depression: Ron Paul Gets It!


bankrupt

We have forgotten the stagflation of the ’70’s, created by the ‘powers-that-be’ with a false ‘oil crisis.’ As mentioned in other posts, my father was a gas station owner/mechanic at the time, and it was a hideous time for enterpreneurs in that industry. The lines for people to get gasoline often went blocks and blocks, sometimes a mile or more. I was surprised, even then, that the stress alone in dealing with desperate customers didn’t kill him.

In our day, the ‘powers-that-be’ have created a new economic crisis and they, once again, have done it on purpose. Using oil, and creating crises around the world that continually put oil at risk, among other pre-planned economic problems, they are setting us up for a financial catastrophe that will go screeching around the world.

Another coup for Big Oil, and the military industrial complex. Look!

It isn’t a coincidence that just when the housing bubble collapses that two things happen. The first is the easy credit cards that permit people to continue a standard of living they can no longer afford, at criminally high interest rates. You may not remember, but thanks to our bought and sold congress, you can’t claim credit card debt on your bankruptcy anymore, like student loans and back taxes. But there is another feature- if you are late on ANY bill, even a non-credit card bill, something like your light or phone bill, your credit card company can increase your interest rate to the very highest allowed by law.

The second is that suddenly, though the companies are whining about all the lost mortgates, they have dried up all new and re-financing mortgages that could help people keep their homes, saving more foreclosures.

Drying up mortgage credit purposefully is what made the Great Depression so terrible, so long lasting, and drove the government to consider fiat money. Removing re-mortgaging options meant that a very few people walked away with most of the assets for pennies on the dollar, and they’re doing it again.

You cannot be enslaved to a system that permits you to declare bankruptcy and remove all of your debt. By keeping you obligated in ways the rich NEVER are, it isn’t hard to foresee the return of ‘debtor’s prisons.’

Furthermore, this time, there is no fixing the problem. It is fiat money that got us into this mess, and the estimates look now like we OWE 720 times the GDP so far!

Ron Paul is the ONLY candidate that understands the workings of this criminal economy and how it works and doesn’t work. He’s the ONLY one who knows what to expect and how to fix it. But, it is so painful that it is hard to face.

Take stagflation, for example. This was the crisis of the 70’s and it made everything about living extremely difficult. Businesses went under. Families suffered. Credit was denied to women and minorities as a matter of principle. Home ownership was very difficult to achieve and for young couples, establishing credit at all was a tough hill to climb. To avoid hyper-inflation we had wage/price freezes that kept things stagnant, but perhaps the alternative was worse.

Now, we’re looking at INFLATIONARY DEPRESSION. What does that mean? It means that inflation will not only make prices for everything rise faster and faster, which is the inflation part, the depression means that people won’t buy or sell anything. They won’t be able to.

We are seeing this already in some areas of Michigan, where even yard sales sell almost nothing. You may want that used couch, but you don’t dare buy it- your utility bills and gasoline expenses are going up at such rates that you may need the extra money just to stay at the same place. You may want to sell that couch because you’ve lost your house, and are hoping to raise the cash for a move elsewhere, but nobody wants it for a price. You have to nearly give it away.

A depression means that nobody can buy or sell anything. They just don’t have the money for commerce. Combine that with high-test inflation, and even the things you MUST buy, like food, get more expensive by the day.

Even Faux News has decided they had better talk to Ron Paul, since there isn’t another Presidential Candidate that can even approach this issue with credibility.

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9 Comments»

[…] Original post by Margaret […]

[…] Read the rest of this great post here […]

  Inflationary Depression: Ron Paul Gets It! wrote @

[…] unknown wrote an interesting post today onHere’s a quick excerptRon Paul is the ONLY candidate that understands the workings of this criminal economy and how it works and doesn’t work. He’s the ONLY one who knows what to expect and how to fix it. But, it is so painful that it is hard to face. … […]

  Taxes » Inflationary Depression: Ron Paul Gets It! wrote @

[…] Margaret Schaut wrote an interesting post today on Inflationary Depression: Ron Paul Gets It!Here’s a quick excerpt … claim credit card debt on your bankruptcy anymore, like student loans and back taxes…. […]

  Brad Smith wrote @

They say Michigan is in a one state recession. In Northern Michigan where I live I would call it a depression. This is an area where wages are typically low so the inflation that we are seeing is even harder on us. I also see Ron Paul as the only one with an answer. The FED has got to go! We cannot continue printing money out of thin air and not have rampant inflation. Borrowing money for war isn’t exactly smart either. We are bankrupting the nation and this is only the start. The rest of the nation should beware. What’s happening in Michigan will soon happen to the rest of the states soon enough.

One example of the economic disaster in Michigan is the housing market. Two days ago I bought a new house. It’s three bedrooms, full basement, one and a half car gargage, on a full acre of land. It’s a HUD repo that was originally for sale for $64,000. I paid $24,000.

Why would a $64,000 house sell for $24,000? Because no one around here has any money. The cost of all the neccesities of life have gone up so much that most people are completely broke by the end of the week. This will soon be the case for the rest of the country as well.

Supporting Ron Paul is one way to help the country to get back on track. Another is to support local Ron Paul republicans like Linda Goldthorp. She is running against Bart Stupak a very entrenched Dem. I’ll be out getting signatures to get her on the ballot. If anyone out there would like to help out just google her name and check out her website. We need all the help we can get.

Go Ron Paul and Linda Goldthorp!

  L. Step wrote @

Our government, in all respects, resembles an alcoholic just before they “bottom out”. Perhaps that will be needed here. I do hope that Ron Paul wins the election, but perhaps our alcoholic government is just not ready to be de-toxed or re-rehabilitated. They might just have to bottom out. A very painful “bottoming out” will convince the folks drugged by the promises of such as Hillary/Obama/McCain that they have to sober up or die.

  Gordon Moss wrote @

Indeed, Ron Paul is the only one who understands, yet the “corporate” media chooses to ignore him.

Gordon Moss

[…] mammunH… but thanks to our bought and oversubscribed congress, you can’t avow distribute intend debt on your insolvency anymore, aforementioned enrollee loans and backwards taxes. But there is additional feature- if you are New on ANY bill, add a non-credit intend bill, … […]

  Ron Holland wrote @

FreedomFest 2008 – Ron Paul has just been confirmed as a speaker and he will join our 100 plus speakers and 1,000 plus attendees in Las Vegas on July 10 -12 at Freedomfest 2008. We must continue the campaign to promote the Ron Paul Revolution of liberty, a return to limited constitutional government and free markets to the American public.
See http://www.freedomfest.com
Thanks,
Ron Holland, Wolf Laurel, NC
http://www.ronaldholland.com


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