BANKS MUST NOW ACCEPT THE CONSEQUENCES OF THEIR ACTIONS

Kleptocrats cannot understand that stimulus funds stimulate government, not the
economy. Downturn in a business cycle is painful but necessary medicine for
restoring equilibrium to the economic system. Reject further lowering of the
interest rate (stimulative monetary policy) or any other attempts (for example,
deficit spending or stimulative fiscal policy) to stimulate demand. 

Jean-Baptiste Say is credited with identifying the fundamental economic
principle that aggregate demand for goods in an economy will equal the aggregate
supply of goods when markets are permitted to operate. Or in Say's words,
products are paid for with products.

David Ricardo more fully developed this principle into what has become known as
Say's Law. Say's Law, according to Ricardo, leads us to understand that market
equilibrium for goods is constant. This simply means that markets, when left
alone by government planners or other fraudulent actors, inexorably tend toward
an equilibrium price which eventually balances supply and demand for any
particular good. Thus markets will clear themselves of any surpluses or
shortages in the form of excess supply and demand.

Ron Paul points out this important corollary of Say's Law is critical to
understanding the moribund US housing market. In housing, perhaps more than any
other good, we see the terrible consequences of government and central bank
interference with market forces.

First, the Federal Reserve Bank relentlessly increased the money supply over the
last few decades. Much of this newly created money and credit flowed from Fed
member banks into the residential and commercial real estate markets, causing
prices to rise dramatically prior to the housing bust of 2007.

At the same time, the Fed systematically suppressed interest rates for decades. 
This led to tremendous malinvestment both by homebuilders and individuals, and
encouraged a seedy subprime mortgage industry to make nonviable loans that would
not make economic sense under market interest rates.

Ron Paul notes that congressional meddling in the mortgage market also added
tremendously to the problem. Inane legislation like The Community Reinvestment
Act literally forced banks to make thousands of loans to bad credit risks. 
Similarly, Fannie Mae and Freddie Mac put taxpayers on the hook for millions of
mortgages that never would meet market underwriting criteria. And of course the
real estate and homebuilder lobbies made sure mortgage interest debt (unlike
most personal debt) remains tax-deductible.

The ultimate result of these interventions by our caring friends in Congress and
the Fed has been the biggest housing bubble and crash in US history, leaving
millions of Americans underwater on their mortgages if they have not already
lost their houses altogether. Congress and the Fed are directly responsible for
millions of shattered lives, and almost unknowable economic damage in the form
of trillions of dollars in mortgage backed securities.

Ron Paul asserts the only solution to this mess is to allow the US housing
market to clear. All of the bad mortgage debt must be liquidated, whether via
foreclosure or bankruptcy. Banks holding substantial mortgages or mortgage
backed assets must face the music and adjust their balance sheets to reflect
today's reality. Undoubtedly this will force many banks into immediate
insolvency, but such banks must be allowed to fail without receiving another
nickel of taxpayer money. Banks took the risks and made money during the bubble
years; those who exercised bad judgment must now accept the consequences of
their actions.

Ron Paul says that never in American history have we needed to adopt a policy of
laissez faire more desperately; never has government seemed more determined to
artificially prop up an industry. But only by allowing the housing market to
clear can we hope to rebuild our shattered economy from a stable foundation. 
Clearly there will be pain in the short term, but we owe it to younger Americans
and future generations to allow the reemergence of a rational housing market.

Dumping euros on Greece is ridiculous. It's unfair to squander hard-earned
German euros, and it's unfair for Greeks to be addicted to German handouts.
Nobody wins in dumping, which increases sinecures, laziness, profligacy,
diseconomy, political corruption, and bad attitude. The freakish government of
Greece stole my life! 

The stupidity, corruption, and freak of Pasok, the most infamous socialistic
mafia on Earth, are out of this world! Pasok mafiosi are the freaks that
initiated the impunity and immunity of Graecokleptocrats, the Siemens scandal,
the military bribes, myriad kickbacks, and the fiasco of October 18, 2010, which
destroyed my life. Pasok freaks stole my life. Pasok declared a war against
me, but the whole world is watching this Armageddon. Many Pasok politicians,
such as Akis Tsochatzopoulos, Yannos Papantoniou, Tasos Mantelis, Christos
Verelis, and Mariliza Xenoyiannakopoulou, are now investigated by the Financial
Crimes Squad (SDOE).

The Greek government is the #1 enemy of the Greek people! Graecokleptocrats do
myriad stupid things. The freakish Pasok government of Greece in 2010 was so
stupid that it hoodwinked all media that I conspired to trigger a war between
Greece and Turkey and blame Mariliza Xenogiannakopoulou, Alternate Minister of
Foreign Affairs of Greece, for it! Accusing dissident bloggers of treason,
Graecokleptocrats have manufactured a blood libel in cyberspace, which in turn
incites hatred and violence. The government of Greece gave my head on plate to
Erdogan. Brutal Graecokleptocrats have destroyed my life. My life is stolen. 
Now I demand my life back!

Smart words are more effective than smart bombs! Mighty words of a charismatic
keynote speaker can transform your people to a new dimension of organizational
climate, efficiency, self-actualization, enthusiasm, belonging, and motivation.
I would like very much to speak at your conference in order to explain critical
points much further. venitis@gmail.com