"Our spending habits, in combination with our flawed monetary system, if not changed will bring us a financial whirlwind that will make Katrina look like a minor storm. Loss of confidence in the dollar and the international financial system is a frightening possibility-- but it need not happen if Congress can curb its appetite for buying the people’s support through unrestrained spending.
If Congress does not show some sense of financial restraint soon, we can expect the poor to become poorer; the middle class to become smaller; and the government to get bigger and more authoritarian-- while the liberty of the people is diminished. The illusion that deficits, printing money, and expanding the welfare and warfare states serves the people must come to an end." -2005
"“Federal Reserve manipulation of interest rates and the money supply has created a perilous situation for millions of Americans,” Paul stated. “Rising interest rates may well cause housing prices to fall dramatically, leaving many homeowners who bought at the height of the bubble owing more than their homes are worth. Homeowners with adjustable-rate mortgages are especially vulnerable, as are those who used paper gains in real estate values as collateral for second, third, and even fourth mortgages. The Fed’s easy-credit policies are directly responsible for lowering creditworthiness standards and encouraging millions of Americans to overextend themselves. If trillions of dollars in housing equity disappear, no amount of Fed sorcery will keep record amounts of Americans out of bankruptcy.” -2004
He has been warning about it for some time. Pay no mind to them just cause you stuck your head in the sand while the times were good, doesn't mean he didn't warn about it.
What would Paul have actually done about it? Throw the US into a recession by raising interest rates? Have the government decide who gets a loan and who doesn't? Even though CRA encouraged bad loans, it stated plainly it wasn't to be used as an excuse for bad business practices...
Maybe RP would have created another bureacracy to oversee the entire US loan mechanisms? Oops, that doesn't sound very conservative..
Tell me...what was the answer?
All well and good, but since he never comprehended the real threat by the nations and our liberals, who willingly support the usage of say like attacks of 9/11 against US then what good is he if he limits his sage advise to the Federal Reserve?
My head is not in the sand, as I much prefer taking to the uncivilized barbarians thirst for blood in their sand pits rather than allow it to be brought to any pieces of real estate in this nation.