Friday, October 3, 2008

The Doctor Says

"With deposit insurance increasing to $250,000 and banks able to set their reserves to zero, we will undoubtedly see future increases in unsound lending. No one in our society seems to understand that wealth is not created by government fiat, is not created by banks, and is not created through the manipulation of interest rates and provision of easy credit. A debt-based society cannot prosper and is doomed to fail, as debts must either be defaulted on or repaid, neither resolution of which presents this country with a pleasant view of the future. True wealth can only come about through savings, the deferral of present consumption in order to provide for a higher level of future consumption. Instead, our government through its own behavior and through its policies encourages us to live beyond our means, reducing existing capital and mortgaging our future to pay for present consumption."
Ron Paul

1 comment:

ReverendFranz said...

Which is exactly why we must not succumb to the governments coercion as we are encouraged to finance our own destruction. The doctor is correct (as usual.) We must save, both our financial futures and that of our country. We must, if even at the cost of our current standard of living (which is beyond our means), defer consumption of credit and begin to purchase back our futures. Since remaining a consumptive and wasteful society doesnt seem to be boding well, it is now time for a Plan B, consider enacting a personal alpha strategy today.