Time wins more converts than reason.
“The problem came about because we spent too much, we borrowed too much, we printed too much money, we inflated too much and we over-regulated. We are looking at the collapsing of a market which is unstable. It is unstable because of the way it came about. It came about because of the monopoly control of money and credit by the Federal Reserve system and that is a natural consequence of what happens when the Federal Reserve system creates too much credit.”
Internet conspiracy theorist? No, Ron Paul, candidate for Republican presidential nomination. Those words were from a speech to Congress in 2008 urging a “no” vote on TARP, the Mother of All Bailouts.
Three years later, with the crisis switching up a gear from banks to sovereigns and Europe teetering, Paul predicted “they will probably bail out Europe next”.That they did. This week, the Fed led a coterie of central banks in a dramatic market intervention which cut the cost of US dollar funding to European banks in half. Drunk on this latest round of credit shots, world stockmarkets popped up 5 per cent, as they do every time the Fed cranks up the presses.