Items of Interest:
Ron Paul Discusses Contagion, Gold... --The man who will soon be proven to have been right all along, Ron Paul, was interviewed on CNBC earlier discussing topics such as the Greek contagion, Goldman Sachs, surging gold and, of course, the Fed. Asked if this is just the beginning, the response is "Yes, this shouldn't surprise anybody, how long should we have been anticipating this? I have anticipated it since 1971, because the system that replaced Bretton Woods was an unviable system and this is proving the point, so this is the unwinding of the system and until we replace it with something you are going to continue to see this... You can't correct the problem of debt with creating more debt, expecting the Fed to endlessly create more money and credit. We are in for a lot more trouble as far as I can see." Can we grow our way out of this debt? "You'd have to cut taxes drastically and cut spending drastically. Politically you can't do that. People will resort to more spending, more deficits and more inflation of the money supply. If you see a GDP number go up, it is about equivalent to the money we have created - you don't have any more growth than the artificial stimulus of the money that we put in. We have not allowed the liquidation of debt, we have not allowed the elimination of the malinvestment still in the system."
Ron also says anger at Goldman should be focused at the Fed: "When the history of this time is written people will say - how in the world did they believe that a few people in a secret room can decide what interest rates should be, how much the money supply should be, who should fail, what worthless assets taxpayers have to buy. It is absolutely bizarre."
Ron Paul's Legacy Lives on in His Son's Kentucky Senate Campaign -- Rep. Ron Paul did not win a single Republican primary in the 2008 presidential race. But his son, ophthalmologist Rand Paul, is poised to become the GOP Senate nominee from Kentucky in what is shaping up to be the second major Tea Party victory this month...
The Mess That Greenspan Made:
Rand Paul Set to Win in Kentucky Primary
The Big Picture: What’s Up with Goldman Sachs?
David Goldman / InnerWorkings:
More Financing of the US Deficit from Abroad -- The US will continue to remain dependent on the global banking system to support the Treasury market, which now appears to be shifting its portfolio away from Europe to the US. It’s an ill wind that blows nobody good, but it is an ill wind, and it is strange to imagine American prosperity founded upon European failure.
Greece’s Bailout Heroes Arrive in Leaking Boats -- [Bailout will lead to global recession]
John Cochrane / Wall Street Journal:
Greek Myths and the Euro Tragedy -- Letting someone lose money on sovereign debt is the acid test for the euro... The reasoning behind the Greek bailout is founded on several myths that need exploding...