Ron Paul, Peter Schiff and the Cassandra Complex

The Cassandra metaphor (variously labelled the Cassandra ‘syndrome’, ‘complex’, ‘phenomenon’, ‘predicament’, ‘dilemma’, or ‘curse’), is a term applied in situations in which valid warnings or concerns are dismissed or disbelieved.The term originates in Greek mythology. Cassandra was a daughter of Priam, the King of Troy. Struck by her beauty, Apollo provided her with the gift of prophecy, but when Cassandra refused Apollo’s romantic advances, he placed a curse ensuring that nobody would believe her warnings. Cassandra was left with the knowledge of future events, but could neither alter these events nor convince others of the validity of her predictions.

The metaphor has been applied in a variety of contexts such as psychology, environmentalism, politics, science, cinema, the corporate world, and in philosophy, and has been in circulation since at least 1949 when French philosopher Gaston Bachelard coined the term ‘Cassandra Complex’ to refer to a belief that things could be known in advance.

Joe Scarborough Credits Ron Paul for Predicting the Housing Bubble 5 years before the collapse.


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Forbes: “Be Prepared for the Worst” -Ron Paul

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Anytime the central bank intervenes to pump trillions of dollars into the financial system, a bubble is created that must eventually deflate. We have seen the results of Alan Greenspan’s excessively low interest rates: the housing bubble, the explosion of subprime loans and the subsequent collapse of the bubble, which took down numerous financial institutions. Rather than allow the market to correct itself and clear away the worst excesses of the boom period, the Federal Reserve and the U.S. Treasury colluded to put taxpayers on the hook for trillions of dollars. Those banks and financial institutions that took on the largest risks and performed worst were rewarded with billions in taxpayer dollars, allowing them to survive and compete with their better-managed peers.

This is nothing less than the creation of another bubble. By attempting to cushion the economy from the worst shocks of the housing bubble’s collapse, the Federal Reserve has ensured that the ultimate correction of its flawed economic policies will be more severe than it otherwise would have been. Even with the massive interventions, unemployment is near 10% and likely to increase, foreigners are cutting back on purchases of Treasury debt and the Federal Reserve’s balance sheet remains bloated at an unprecedented $2 trillion. Can anyone realistically argue that a few small upticks in a handful of economic indicators are a sign that the recession is over?

What is more likely happening is a repeat of the Great Depression. We might have up to a year or so of an economy growing just slightly above stagnation, followed by a drop in growth worse than anything we have seen in the past two years. As the housing market fails to return to any sense of normalcy, commercial real estate begins to collapse and manufacturers produce goods that cannot be purchased by debt-strapped consumers, the economy will falter. That will go on until we come to our senses and end this wasteful government spending.

Government intervention cannot lead to economic growth. Where does the money come from for Tarp (Treasury’s program to buy bad bank paper), the stimulus handouts and the cash for clunkers? It can come only from taxpayers, from sales of Treasury debt or through the printing of new money. Paying for these programs out of tax revenues is pure redistribution; it takes money out of one person’s pocket and gives it to someone else without creating any new wealth. Besides, tax revenues have fallen drastically as unemployment has risen, yet government spending continues to increase. As for Treasury debt, the Chinese and other foreign investors are more and more reluctant to buy it, denominated as it is in depreciating dollars.

 

Ron Paul: The World’s Most Popular U.S. Congressman

The Huffington Post’s Ryan Grim takes a look at Dr. Paul’s growing international fame:

Months after his long-shot bid for the Republican presidential nomination ended, Rep. Ron Paul has become a hot ticket on the international stage. Unlikely as it may seem, Paul, a Texas Republican, is the most popular member of Congress outside the United States, if foreign television appearances are any indication.  [Read more]

Ron Paul: Federal Reserve now more Powerful than Congress

Responding to the Obama administration’s new regulatory reform plan, which will officially hand the Federal Reserve complete dictatorial control over the U.S. economy, Congressman Ron Paul told MSNBC that the Fed was now more powerful than Congress.

Paul emphasized that no amount of regulation could compensate for a financial system created and controlled by the Federal Reserve that was completely unstable to begin with.

“The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress,” said Paul.

As we reported yesterday, the new rules would see the Fed given the authority to “regulate” any company whose activity it believes could threaten the economy and the markets.

Obama’s regulatory “reform” plan is nothing less than a green light for the complete and total takeover of the United States by a private banking cartel that will usurp the power of existing regulatory bodies, who are now being blamed for the financial crisis in order that their status can be abolished and their roles handed over to the all-powerful Fed.

“They’re giving a tremendous amount of more power to the Federal Reserve – the very institution that created our problem. That’s about the way Washington works,” said the Congressman.

“Too much regulations to begin with, so they give it more. The Federal Reserve creates the problem, so we give them more power. It’s fiat money that’s the problem, so we allow them to double the money supply – you can’t solve the problems that way. That’s like saying you can take care of a drug addict by just giving them more drugs,” concluded Paul, adding that the lack of understanding about how the Federal Reserve created the problem and how the free market ought to work was the root of the crisis.

Watch the clip below.

“The ’sweeping overhaul’ of the financial system detailed by Geithner on behalf of the Obama administration does not overhaul the system at all,” writes Prins, “giving the Fed a bigger role, creating a ‘council of regulators’ to oversee the existing oversight bodies and allowing the biggest Wall Street players to maintain their status, leaves the system intact.”

As reported by The New York Times earlier this month, heads of nine of the biggest banks in the derivatives market, including JP Morgan Chase, Goldman Sachs, Citigroup and Bank of America, secretly lobbied to keep derivatives under Federal Reserve “oversight” and away from real scrutiny.

These same New Your banksters all met secretly to discuss how to use the lax regulation and institutional secrecy of the NY Fed to shield their credit-default swaps business from prying eyes and attempts at regulation. They even formed a lobby– the CDS Dealers Consortium– only weeks after accepting TARP funds in October 2008 to protect their interests.

So the upshot of all this is that the bankers get what they want, are allowed to carry on as they were, while at the same time the fractional reserve banking system and the federal government are both greatly expanded and empowered, and the compliant corporate media ludicrously tells us that a strict crackdown is underway.

It can be no more apparent than at this time that legislation to audit, repeal and eventually end the Federal Reserve, must be supported by Americans if they want to see their children and their grandchildren grow up without indentured debt and entrenched servitude to a fascistic marriage of private banks and hugely inflated government.

Worried About Ron Paul, The Fed Hires Ex-Enron Lobbyist in PR Move

The central bank of the United States government–the Federal Reserve–thinks it needs a lobbyist, to work in Congress against Ron Paul. The Bloomberg story doesn’t mention Ron, but instead interviews some ex-Fed think-tank hack in DC. But it is Ron Paul the Fed fears. What a great achievement of Ron’s, to make what Andrew Jackson called “the Monster,” the all-powerful, globe-dominating, special-interest funding. bankster-enabling, dollar-depreciating, business cycle-generating central bank worry about its image, for the first time since 1913. His presidential campaign alerted millions to the fact that we are being ripped-off by the Fed. His Audit the Fed bill (190 cosponsors!) scares the heck out of them. And wait until his End the Fed manifesto is published this summer! They’ll need a whole corps of lobbyists, not that any number of fixers will be able to protect what is in essence a criminal counterfeiting gang, when its time is up at last.