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The Major Mistake of Both Ron Paul and Paul Krugman

  Vis a vi Monetary Policy: The major mistake of the “Monetarists” like Krugman is that they believe Monetary stimulation stimulates growth. It doesn’t. All that it stimulates is stagflation. I’m a Paulista, but the one thing I would disagree with him is that there is a way to know how much liquidity the economy …

How to Return to a Gold Standard Without Disrupting Liquidity Needs

All you need to do is change the Fed’s mandate from targeting interest rates to targeting Gold. The Fed can easily keep the price of Gold within a tight trading range by increasing liquidity when the Price of gold dips below the prescribed range (indicating deflationary pressures) and conversely selling bonds to mop up excess …

Talking Heads: Quit Calling Ron Paul an Isolationist

Just because he doesn’t want to bomb other countries. Just because you don’t want a ‘World’ government, a centralized control system that takes away the liberties of the individual, doesn’t make one “Isolationist.” He wants to be friends with other countries, trade with them, visit them, have them visit us, respect their sovereignty. That’s the …

Will Democracy Kill the Iowa Caucuses?

I saw a headline on Drudge this morning entitled “Iowa Gov: Ignore Paul Win.” which links to a Politico article entitled “Will Ron Paul kill Caucuses?” So, does the Iowa governor decide who the nominee is? Or is this a democracy? The caption of the photo says, “GOP elites in Iowa are worried about the ramifications …

There is a Time For the Fed to Create Liquidity

Maybe the only thing I disagree with Ron Paul about, is that there is a time when the Fed should create liquidity, and that time is when, like in the 90’s due to the Internet and Communications revolution, there is a period of incredible growth. A growing economy needs liquidity like a growing body needs …

The Only Part of the Equation that Ron Paul is Missing

Ron Paul is correct that gold is important. It’s very important. The only part of the equation that Ron Paul is missing is the demand for money. Inflation is caused by two factors: how much money is printed and how much demand there is for money (growth increases the demand) If you had enough growth …