Ron Paul really needs to stop using the term "liquidate the debt"

[Howard_Roark]

I've been hearing Ron Paul use this term for a long time now and I've never really understood exactly what it means. It seems to be a pet term of his, because I don't really hear anyone else using it, even among other libertarians. I'm guessing it means that he wouldn't bail out companies and would let them go bankrupt, but seriously if that's what he means he should just say that instead of using such a vauge and unspecifc term. If someone who understands Austrian economics and is a hardcore supporter of his doesn't know what it means, then I guarantee that the average layman watching on TV doesn't either. If they ask you what your vision for America is and you have 1 minute to answer and use a term multiple times that no one understands, its a serious problem.

 

[kah13176]

It means don't shore up bad investments. Instead of letting banks and their toxic assets fail, the Fed bought the assets and they were bailed out.

 

[Brandon Todd Carr]

I agree. But heck, even Romney talks his mouth off about generally nothing and polls first.

 

[joshnorris14]

Austrian's use the term a lot.

The low interest rate policy of the Federal Reserve artificially inflates assets. Once the bubble pops, the artificial value will be liquidated as those assets are sold on the market. However when the government buys those assets (TARP, QE1 and QE2), the artificial value (and debt that goes along with it) remains in the system as toxic assets. Without allowing for the artificial value to be liquidated, all the toxicity in the market remains.

 

[sailingaway]

It means different things in different situations, but it means don't have the government intervene.

 

[nowwearefree]

i agree, he should just say no more bailouts, repeat it 10 times and he should be fine

 

[Agorism]

No, this is what needs to occur. Tell the truth.

 

[mosquitobite]

We just need to help him by spreading it in simpler terms:

 

[joshnorris14]

No, this is what needs to occur. Tell the truth.

Right... I don't know about you, but "I can't wait until the day when we can say 'We're all Austrians now."

 

[realtonygoodwin]

I thought he means to have the government declare bankruptcy and not agree to pay any of our federal debts?

 

[freeforall]

umm. i feel stupid for asking this, but can someone explain this as if I'm 5?

 

[joshnorris14]

I thought he means to have the government declare bankruptcy and not agree to pay any of our federal debts?

No lol. If you want, I can link you to some resources on Austrian Business Cycle Theory.

 

[joshnorris14]

umm. i feel stupid for asking this, but can someone explain this as if I'm 5?

Exactly what do you need explained? I'll try and explain it.

 

[mosquitobite]

umm. i feel stupid for asking this, but can someone explain this as if I'm 5?

Seriously, it doesn't get any more simplistic than this video. Best 30 minutes you'll ever spend.

 

[freeforall]

I'll have to watch that video in the morning.

 

[hauntedbaby]

While I understand that many people might not understand the term at first brush, I would suggest you improve you ability to delineate the meaning of something using contextual clues. It really shouldn't be outside of your ability to comprehend using context. Just throwing that out there, as long as we are giving advice to other people (especially people with the intellect of Ron Paul).

 

[realtonygoodwin]

No lol. If you want, I can link you to some resources on Austrian Business Cycle Theory.

Are you sure??

"The Federal government needs to liquidate the debt."

Debt liquidation is bankruptcy. Ron opposes raising the debt ceiling. The debt ceiling is for debts that have already been incurred. If you don't raise the debt ceiling, you can't pay those debts. When debts that already exist aren't paid, you default. You get rid of that by liquidating the debt. The only way you can not pay off your debts, legally, is if you declare bankruptcy.

How is Ron Paul not suggesting the Federal government declare bankruptcy, essentially?

 

[kaberUSA]

Yea I know. What's your vision for American

"We need to let the debt liquidate"

COME THE FUCK ON

Talk about people jobs, coming out of school with a good job, getting married, having kids, feeling a good sense of self worth building things. helping to service the economy, shit like that.

Not talking about federal reserver and liquidate the debt. Why don't we talk about fractional reserve banking while we are at it.

Christ

 

[Ninja Homer]

In debates, Ron just needs to pretend he's trying to explain economics to Rick Perry.

 

[rblgenius]

We just need to help him by spreading it in simpler terms:

this