Economist: Why Bankruptcy is Better than Wall Street Bailout

Congress has balked at the Bush administration's proposed $700 billion bailout of Wall Street. Under this plan, the Treasury would have bought the "troubled assets" of financial institutions in an attempt to avoid economic meltdown. This bailout was a terrible idea. Here's why.

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Ron Paul after the bailout was voted down

So the Fed has kept inflating the dollar anyway.
The markets need to readjust and the criminals on Wall Street need to return to the fundamentals. The banks and the stock market exist to finance production. They are not an alternative to Las Vegas.
But Bernanke keeps passing more bags of dope to the junkies.

Ron Paul on the Bailout

House Floor, September 29th, 2008
Why don't we ask advice of those that saw this coming, rather than those that caused it?

And here's the best part - the idiots will vote for us again anyway!

Nancy succumbs to the ecstasy of spending billions while Barney and his friends share a laugh at the fact that there is nothing that they can do that will overcome the power of American propaganda and convince the average idiot to change Washington.

"Just wait and see what we're gonna do to 'em next time!" Says Barney to a chorus of chuckles.

Defense Spending during Bush Years

Click on the graph for a larger image

Please keep in mind that this graph only includes budgeted "defense" spending. It does not include over 400 Billion in Supplemental War Funding.
Including the War Funding, American defense spending is considerably larger than all the rest of the defense spending on earth. The 700 Billion dollar spending bill for 2009 will be larger than ever. Take a look here

Are we safer? Of course not. Our position as the world's bully makes people hate us. Our tendency to include ourselves in every dispute around the world gains us more enemies. Our military and our diplomacy are designed to create conflict and then involve ourselves in those conflicts.

Our State Department, Intelligence Agencies and Defense Department are operated to do the bidding of the military industrial complex. They do not make us friends. They do not make us safer. They make us evil and spend money that we do not have.

But the military industrial complex has purchased the Democrat and Republican parties. It doesn't matter who you vote for, you vote will finance more war, more spending, more intimidation. McCain is already advocating INCREASING military spending above the present levels. Obama says that he will disengage from Iraq but will add soldiers to Afghanistan, continue our partnership with Israel, work to include Georgia in Nato, keep our bases in the Orient and Europe. Neither one will even attempt to cut military spending.

If this does not seem right to you, then please do not vote for the lesser of two evils. Vote for a Presidential Candidate who signed Ron Paul's Four Points Agreement.

Cynthia McKinney
Bob Barr
Chuck Baldwin
Ralph Nader

The Bailout and Los Fabricantes de Comunistas

Ron Paul posted a letter refuting Bush's reasons for a bailout. Check it out here.

There are sensible ideas, but nobody is listening. Instead we are hell-bent on a course to bury Constitutional government and to make the well-being of the richest 1% of Americans the only goal of the US government.

This bailout is being handled exactly like the run-up to the Iraq War and the putsch to get the "Patriot" Act through Congress without giving anyone time to read it.
We are being threatened again, but this time the "smoking gun in the shape of a mushroom cloud" is not a visual image. He threatened us with the following:

"More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet. Foreclosures would rise dramatically.

And if you own a business or a farm, you would find it harder and more expensive to get credit. More businesses would close their doors, and millions of Americans could lose their jobs.

Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And, ultimately, our country could experience a long and painful recession."

Then Bush lied by implying that the Treasury would buy the toxic Collateralized Mortgage Obligations at the current low price. Here is what he said:

"The government is the one institution with the patience and resources to buy these assets at their current low prices and hold them until markets return to normal.
And when that happens, money will flow back to the Treasury as these assets are sold, and we expect that much, if not all, of the tax dollars we invest will be paid back."

But Paulson and Bernanke said that we need to buy the CMOs at their "hold-to-maturity" price. So we will be buying this toxic paper at face value, the taxpayer will be out billions and the criminals on Wall Street will be ready to rip off the public again.


There is a saying in Chile: "fabricante de comunistas", or maker of communists. The saying is used for those corporate shysters and inhuman bosses who take advantage of their employees to live high on the hog. Sooner or later enough of the small people get pissed off enough to tear the whole governmental structure down. It happened in Chile and caused twenty years of suffering. It is now possibly going to happen here in the USA. When the top one tenth of one percent of Americans earns more than the bottom 50% of Americans and the bottom 50% is expected to pay to bail out the top one tenth of a percent, you are building a factory to produce socialists.

Ron Paul Speaks Truth To Power On The Bailouts

Andrew Bacevich in his new book, "The Limits of Power" said that we do indeed have two political parties in America, but they are not Democrat and Republican. They are Incumbent and Outsider. The Incumbents win 94% of the elections and most of the electios that they lose also turn out to be wins when they tempt the victorious outsider into Washington politics as usual.

Ron Paul can be counted on to tell the truth. He is the real Outsider. Listen to him.

The Four Points to Reclaim Our Government

Today, on the 10th of September, 2008 five men and women signed the four points that you see below. For the first time all of the third party candidates united to call attention to the REAL issues that confront the USA. Please read the four points below. If you agree with all or most of these four points, then please do not vote Republican or Democrat. Instead vote for McKinney or Barr or Baldwin or Nader.

And thank you Ron Paul for writing these four points and making the political debate meaningful again.


We Agree

Foreign Policy: The Iraq War must end as quickly as possible with removal of all our soldiers from the region. We must initiate the return of our soldiers from around the world, including Korea, Japan, Europe and the entire Middle East. We must cease the war propaganda, threats of a blockade and plans for attacks on Iran, nor should we re-ignite the cold war with Russia over Georgia. We must be willing to talk to all countries and offer friendship and trade and travel to all who are willing. We must take off the table the threat of a nuclear first strike against all nations.

Privacy: We must protect the privacy and civil liberties of all persons under US jurisdiction. We must repeal or radically change the Patriot Act, the Military Commissions Act, and the FISA legislation. We must reject the notion and practice of torture, eliminations of habeas corpus, secret tribunals, and secret prisons. We must deny immunity for corporations that spy willingly on the people for the benefit of the government. We must reject the unitary presidency, the illegal use of signing statements and excessive use of executive orders.

The National Debt: We believe that there should be no increase in the national debt. The burden of debt placed on the next generation is unjust and already threatening our economy and the value of our dollar. We must pay our bills as we go along and not unfairly place this burden on a future generation.

The Federal Reserve: We seek a thorough investigation, evaluation and audit of the Federal Reserve System and its cozy relationships with the banking, corporate, and other financial institutions. The arbitrary power to create money and credit out of thin air behind closed doors for the benefit of commercial interests must be ended. There should be no taxpayer bailouts of corporations and no corporate subsidies. Corporations should be aggressively prosecuted for their crimes and frauds.