Busted: Fox News Caught Faking CPAC Booing Reaction to Ron Paul Win

Kojirou · Feb 22, 2011

geeimsobored said:

Ironically Japan is probably where we'd head of Ron Paulites ran fiscal and monetary policy. Absurd focus on inflation and a rollback of the ability of banks to lend would encourage businesses to stop taking loans for capital projects and to just sit on their money. (which is exactly what happened in Japan) And no amount of easy money monetary policy (Japan basically has interest rates of 0) or government spending can solve that.

The scariest thing about Ron Paul is that economics is about attitudes when you breed a fear of inflation you do the opposite. You create the conditions for a deflationary environment which is a spiral that simply is impossible to recover from. Japan has been in a constant deflationary spiral for 2 decades now and counting. Living standards are literally going backwards now, businesses and consumers dont spend, and people just sit on their money and twiddle their thumbs.

Inflation is not the end of the world and a healthy level of inflation is good for an economy. Yet in this country every bozo somehow considers themselves an economic genius. I'm a novice of economics at best but at least I'll admit as much unlike the diehard Ron Paulites who are convinced they understand the macroeconomy better than any mainstream economist.
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Yeah, I'm aware of that as I indirectly observed in an earlier post. It's a country in a complete mess these days - I love visiting it from time to time, but I would in reality never want to live there, even ignoring economic factors.
The Great Depression was also a result of that deflationary spiral, which any high school history textbook covering the Depression can teach you - that the spiral got so bad that we had to have the giant crash programs of the New Deal and then the war to get us out that spiral. That's something you want to avoid at all costs, but Paulites just go "LOL WEIMAR THEFT" without a proper awareness of economics.

geeimsobored · Feb 23, 2011

Agent94 said:

Sure you can. Loan sharks don't have fractional reserves. They still make money off of interest. They just can't create money out of thin air like a fractional reserve bank can.
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Loan sharks aren't banks. Fractional reserve is the idea that a bank only has to keep a certain amount of its reserves on hand and can then loan the rest out. Not having fractional reserve would mean keeping every dollar that it holds in reserve which would mean you can't give out loans unless you somehow have even more than the amount of money in deposit on hand.

Terrible analogy.

Agent94 · Feb 23, 2011

geeimsobored said:

Loan sharks aren't banks. Fractional reserve is the idea that a bank only has to keep a certain amount of its reserves on hand and can then loan the rest out. Not having fractional reserve would mean keeping every dollar that it holds in reserve which would mean you can't give out loans unless you somehow have even more than the amount of money in deposit on hand.

Terrible analogy.
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You are misinformed about fractional reserves. I suggest you brush up on the subject before you argue about it. I'm going to be nice and leave it at that.

geeimsobored · Feb 23, 2011

Agent94 said:

You are misinformed about fractional reserves. I suggest you brush up on the subject before you argue about it. I'm going to be nice and leave it at that.
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Explain it to me brah, I'm curious now.

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Busted: Fox News Caught Faking CPAC Booing Reaction to Ron Paul Win

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