Ron Paul Quotes

The way you create deflation is you create an asset bubble.

Deflation can be particularly dangerous when a financial system is shaky, with household and corporate balance sheets in poor shape and banks undercapitalized and heavily burdened with bad loans.

The Federal Reserve - all of them - could be sitting on a barrel of dynamite, and then pouring gasoline on top of it, and then light a cigar with matches, throw the match into the gasoline, and then not notice that there is any danger.

Not every business cycle has a financial crisis. Frequently they do.

I worry about another leg down in the economies causing social disruption because deleveragings can be very painful - it depends on how they're managed.

Nothing would assure a recession more than a significant drop in housing prices.

If one wants to avoid the recurrence of economic crises, one must avoid the expansion of credit that creates the boom and inevitably leads into the slump.

You cannot fuel demand, or consumption-led demand, on credit forever.

I will not let anyone tell me we must spend more money. This crisis did not come about because we issued too little money but because we created economic growth with too much money and it was not sustainable growth.

The real problem is deflation. That is the opposite of inflation but equally serious to the borrower.

When you have a perfect free market, it's difficult to predict the future. But when you have a market that is disturbed by government manipulations and money-printing, it's impossible to make any predictions.

I think money is due for some sort of collapse. People are going to realize that money has a half-life, like radioactive elements.

Inflation is not always the main problem, or indeed a problem at all. Sometimes, though rarely, deflation is a more serious threat, and we need to shelve many of the orthodoxies we have held so dear.

There are different flavors of recession. You can get into some pretty dark scenarios pretty quickly.

Should that worse scenario materialize, then most probably our propensity to increase interest rates will be weaker.

The Nasdaq bubble and crash were followed by the real estate bubble then subprime crash, which led to the unprecedented printing of trillions of dollars in an attempt to prevent a global depression.

With the shrinking of the US economy, and it's shrinking very rapidly, you not only have more money, but you also have fewer goods. That's a classic double-whammy on inflation.

Listen, I wish economic growth only went in one direction. It doesn't. There are economic downturns. They're painful, they're harmful, and they hurt families.

What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance. There are periods of booms, bubbles, and manias. These things, if left to themselves, can lead to crashes, to busts, to panics.

Presidential money is almost like the housing bubble. It's growing at such an astronomical rate, you think it can't get any bigger.

We have one of the highest interest rates in the world, and we owe more money per capita than any other country. All we need is a nail hole in the bottom of the boat and we're sunk.

We have lost control over the financial system ... by printing much more money than in previous years.

Credit is of pernicious consequence to that Nation, that uses or encourages it beyond Nature.

I have 13 bankers in my office, and they say that if you go forward with this you will cause the worst financial crisis since World War II.

We have depressions about every 10-20 years—just long enough for the current generation to forget the last depression.