CHESSNOID

This is probably the most extreme thing I have heard Ron Paul say.  It is ugly and scary to think that this is even possible and not just in the history books.  This is what I read:

“This is the big one,” says Republican Congressman Ron Paul,
who yesterday said the depression will last 15 years. It makes a nice change from all the hooting and wailing about a bottom being in for stocks.

“The U.S. government just won’t allow the correction the economy needs,” says
Paul, citing the mini-depression of 1921, which lasted just a year. This was because insolvent companies were allowed to fail. “No one remembers that one. They’ll remember this one, because it will last 15 years.”

Paul also warns that the dollar, U.S. Treasuries and U.S. stocks will all leave investors in the ditch eventually.

“People will start to abandon the dollar as current and past economic policies create a steep rise in interest rates,” says Paul, a follower of the Austrian School
of economics. “If you are in Treasuries, you will need to be watchful and nimble to time your escape.”

And the “last place you want to be is in the stock market,” he says. “It may not bottom out for 10 years – just look at Japan.”

Paul reckons the upshot of all the Japanese-style government intervention will be an “inflation depression.”

It’s hard to grasp an economy that bad for that long.  I know that the plans that Obama and Geithner are a disaster in the making.  He is the new Democratic George Bush on an economy ready to implode.  Anyways, gold is starting to look like a possible long term investment that may require more research.

Even though we have recently had a 20% rally in the stock market off its lows, there is no real improvement in the outlook of the economy.  Investors did buy based on the news of the Geithner plan to buy toxic assets and Obama’s plan to sink the budget further.  Unfortunately, I don’t think either of these plans help our economy and the execution will make it worse.  Just look at the previous bailouts and stimulus packages. We have spent trillions of tax dollars and they have all failed.  On top of that, it is coming to light that billions were just spent on compensation and bonuses to retain corrupt employees who ran the companies into the ground.

Obama and his administration can’t blame it all on Bush because Obama, Biden and the majority of the House and Senate approved all those plans.  They like to use smoke and mirrors to show the public outrage but they were all aware of what was transpiring behind the scenes from the beginning!