You're watching...
Rep. Ron Paul, (R-Texas), on the Wall Street protests and why potential bailouts of European banks are a mistake.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
It up the stocks surged well it's all about another bail outs -- the leaders of France and Germany saying.
They aren't ready to pump more cash into troubled banks in Belgium nationalize in one of its banks.
And that has Wall Street -- -- It's got my first guest year in congressman Ron Paul says forget the occupy Wall Street protests.
Wall Street -- south is the one attacking the free market capitalism by pushing for these bailouts congressman welcome they like the free money more than the free market.
Well thank you I think I think you're right it's the same process over and over again these last three to four -- everybody gets bailed out.
That it doesn't solve the problem because the excessive debt is what you have to get rid of you can't have growth until the debt is liquidated.
Instead we just keep transferring that one group and others so.
If that's somebody in Europe bailed out that the banks because they hold Greek debt it doesn't solve the problem is just prolong the agony and -- -- Maybe give -- a day or two euphoria on Wall Street but I can't see how this is the solution of all.
This solution and why did governments all around the world.
Europe today it was the United States during the height of the financial crisis it might be the United States again with that.
US financials what I they keep defaulting to the bail out.
Well I think is good.
At about 607080 years of economic wrongheaded thinking that that -- that you.
You can't allow these -- -- to occur because they they call that deflation and that would be very very dangerous.
But politicians -- on the Central Bank always wanted in play.
And the market always wanted these played that is get rid of the mistake they get to get rid of the excesses yeah this is -- investment.
This is a contest going on before the 1930.
They be diverted to allowing the market to make these corrections and they were usually severe -- swift and I got over.
Rather quickly.
But now we have follow the pattern of what we did in the thirties and what Japan is is in the process of doing.
But I think the consequence of faulty thinking.
And there's no idea get keynesian teaches -- having trouble with the because the people aren't spending enough money but can you imagine depending on the consumer spending more money to get -- -- of this -- When the consumers are in over it hadn't they might not have a job they're losing their houses they might lose their jobs actually -- -- -- More spending this is what it's all -- what -- it it cannot work.
Speaking -- Paul Krugman Nobel Prize winning economist the Nobel Prize for economics this time around interestingly enough went to two economist.
Whose research showed that people aren't stupid they understand.
Congress -- that stimulus spending ultimately result in.
Increase inflation and further indebted countries average every -- people get -- why doesn't Wall Street.
Give it one -- why not the politicians who are really in charge of the monetary policy and spending policy we can't spend your way out of these problems.
You can inflate your way out of than the average person -- figure this -- I think the politicians are way way behind the curve.
And yet I think there's a lot can catch enough and I think that's what the demonstrations are about there's things that they don't trust -- government held is because.
They're going to believe this statistic because the statistics we get are usually budged because when they say there's only a 2% price inflation.
Most people know it a lot more than that.
You know if He calculated unemployment the old fashioned way.
Like they did in the depression it's over 20% and you just can't fool the people like them say like okay the inflation's not that bad.
And just keep spending money.
And we'll keep our money in everything's going to be okay of people affiliated south that it that they don't trust the people -- -- -- Congressman we are looking at pictures of the -- Wall Street protesters.
Is it -- -- to suggest that Wall Street is.
At risk of doing more harm to capitalism with his bail out culture and then these people protesting capitalism.
Holy ally here is but -- that -- probably mixed bag because some of those -- the -- are demonstrating our.
Are against profits thing and and -- companies.
And -- do a lot of criticism of Wall Street and the banks.
But I think if people get rich because -- -- insider traders with the Federal Reserve System or getting contract from the government.
And then they get bailed out I want to get into trouble no wonder people get a -- but if you have a Steve Jobs.
That is very wealthy because He produces good product in the people love the product and He produced who I don't I think that's entirely different so I'd like to help.
-- that -- and not blame.
Capitalism and not -- corporation.
Corporate give them which means corporation benefiting by special privileges.
The -- -- an entirely different thing.
Congressman Ron Paul many thanks for your time in your insights to.
