28 April 1998 1998 Ron Paul 39:13
The NASDAQ is now selling at 85 times earning. There is no doubt that most stock prices are grossly inflated and probably represent the greatest financial bubble known in history.
The Dollar And Our Current Account Deficit
May 16, 2000 2000 Ron Paul 37:12
* The nervousness in the stock and bond markets, and especially in the NASDAQ, indicates that the Congress may soon be facing an entirely different set of financial numbers regarding spending, revenues, interest costs on our national debt and the value of the US dollar. Price inflation of the conventional type will surely return, even if the economy slows.
CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:42
It seems obvious that we are dealing with a financial bubble now deflating. Certainly, most observers recognize that the NASDAQ was grossly overpriced. The question remains, though, as to what is needed for the entire economy to reach equilibrium and allow sound growth to resume.
February 13, 2001 2001 Ron Paul 13:1
Mr. Speaker: Many government and Federal Reserve officials have repeatedly argued that we have no inflation to fear. Yet those who claim this, define inflation as rising consumer and producer prices. Although inflation frequently leads to price increases we must remember that the free market definition of inflation is the increase in the supply of money and credit. Monetary inflation is seductive in that it can cause great harm without significantly affecting government price indices. The excess credit may well go into stock market and real estate speculation with consumer price increases limited to such things as energy, repairs, medical care and other services. One should not conclude, as so many have in the past decade, that we have no inflation to worry about. Imbalances did develop with the 1990’s monetary inflation but were ignored. They are now becoming readily apparent as sharp adjustments take place—such as we have seen in the past year in the NASDAQ.
The Beginning of the End of Fiat Money
March 13, 2001 2001 Ron Paul 18:13
But the excess credit created by the Fed found its way into the stock market- especially the NASDAQ, and was ignored. This set the stage for the stock market collapse, now ongoing. Likewise ignored has been the excess capacity, mal-investment, and debt that permeates the world economy.
Inflation Is Still With Us
3 May 2001 2001 Ron Paul 30:7
Rising prices and the economic slowdown must be laid at the feet of the Federal Reserve. Likewise, the existing financial bubble is a consequence of the same policy of monetary expansion and artifically low interest rates. Although the NASDAQ bubble has already partially deflated, the entire world financial system suffers from the same distortion; and a lot more adjustment is required. Merely re-inflating with monetary expansion and manipulating interest rates will not solve the problems of debt, mal-investment and overcapacity that plague the system.
The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:9
The monetary inflation of the 1900s produced welcomed profits of $145 billion for the NASDAQ companies over the five years between 1996 and 2000. Astoundingly this entire amount was lost in the past year. This doesn’t even address the trillions of dollars of paper losses in stock values from its peak in early 2000. Congress has expressed concern about the staggering stock-market losses but fails to see the connection between the bubble economy and the monetary inflation generated by the Federal Reserve.
The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:29
After the NASDAQ collapsed last year, the flow of funds into real estate accelerated. The GSEs accommodated by borrowing without restraint to subsidize new mortgages, record sales and refinancing. It’s no wonder the price of houses are rising to record levels.
Sometimes The Economy Needs A Setback
10 September 2001 2001 Ron Paul 77:8
At the 2000 peak of the titanic bull market, as shares in companies with no visible means of support commanded high prices, the value of all stocks as a percentage of the American gross domestic product reached 183 percent, more than twice the level before the crash in 1929. Were investors out of their minds? Wall Street analysts were happy to reassure them on this point: No, they were the privileged financiers of the new economy. Digital communications were like the wheel or gunpowder or the internal combustion engine, only better. The Internet would revolutionize the conveyance of human thought. To quibble about the valuation of companies as potentially transforming as any listed on the Nasdaq stock market was seen almost as an act of ingratitude. The same went for questioning the integrity of the companies’ reports of lush profits.
25 July 2002
Monetary Practices 2002 Ron Paul 78:16
The party was in full swing, and the Fed kept the good times rolling by cutting the fed funds rate a whole basis point between June 1998 and January 1999. The rate on 30- year Treasuries dropped from a high of over 7% to a low of 5%. Stock markets soared. The NASDAQ composite went from just over 1000 to over 5000 during the period, rising over 80% in 1999 alone. With abundant credit being freely served to Internet start-ups, hordes of corporate managers, who had seemed married to their stodgy blue-chip companies, suddenly were romancing some sexy dot-com that had just joined the party.
25 July 2002
Monetary Practices 2002 Ron Paul 78:19
The business plans for many of the startups involved negative cash flows for the first 10 or 15 years, while they “built market share.” To keep the atmosphere festive, they needed the host to keep filling the punch bowl. But fears of inflation led to Federal Reserve tightening in late 1999, which helped bring MZM growth back into the single digits (8.5% for the 1999–2000 period). As the punch bowl emptied, the hangover — and the dot-com bloodbath — began. According to research from Webmergers.com, at least 582 Internet companies closed their doors between May 2000 and July of this year. The plunge in share price of many of those still alive has been gut wrenching. The NASDAQ retraced two years of gains in a little over a year.
The End Of Dollar Hegemony
15 February 2006 2006 Ron Paul 3:38
Price inflation is raising its ugly head, and the NASDAQ bubble, generated by easy money, has burst. The housing bubble likewise created is deflating. Gold prices have doubled, and Federal spending is out of sight, with zero political will to rein it in. The trade deficit last year was over $728 billion. A $2 trillion war is raging, and plans are being laid to expand the war into Iran and possibly Syria. The only restraining force will be the world’s rejection of the dollar. It is bound to come and create conditions worse than 1979–1980, which required 21 percent interest rates to correct. But everything possible will be done to protect the dollar in the meantime. We have a shared interest with those who hold our dollars to keep the whole charade going.
Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:33
The Fed tries to keep the consumer spending spree going, not through hard work and savings, but by creating artificial wealth in stock market bubbles and housing bubbles. When these distortions run these courses and are discovered, the corrections will be quite painful as was witnessed with the collapse of the NASDAQ bubble. Likewise a fiat monetary system encourages speculation and unsound borrowing.
Statement: “Something Big is Happening”
9 July 2008 2008 Ron Paul 42:10
The financial crisis, still in its early stages, is apparent to everyone: gasoline prices over $4 a gallon; skyrocketing education and medical-care costs; the collapse of the housing bubble; the bursting of the NASDAQ bubble; stock markets plunging; unemployment rising; massive underemployment; excessive government debt; and unmanageable personal debt. Little doubt exists as to whether we’ll get stagflation. The question that will soon be asked is: When will the stagflation become an inflationary depression?
Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 3 ... Cached
Last week was tumultuous for worldwide stock markets, some of which ended the week at their lowest levels in years. Our own Dow-Jones and NASDAQ market indices both suffered heavy losses, while the Japanese Nikkei index fell to its lowest level since 1985! Nervous investors scrambled to sell even blue-chip holdings, especially after news that projected 2001 earnings would be lower than expected for many companies.
The Fed Cannot Create Prosperity
03 September 2001 Texas Straight Talk 03 September 2001 verse 3 ... Cached
Last week Federal Reserve chairman Alan Greenspan discussed the state of the US economy during a conference held in Wyoming. He was quite candid in his admission that the economic outlook remains gloomy, especially given the sobering numbers recently released in the media. Economic growth, measured by GDP, has fallen to .2%, the lowest in 8 years- meaning the economy is nearly in a recession. The Dow and Nasdaq averages suffered losses throughout August. Consumer spending, supposedly the one bright spot in the outlook, is also wavering. American families undoubtedly know first-hand that the job market is very shaky, and it was only a matter of time until purchases of new houses, cars, and retail goods declined. A tumble in the real estate markets may be the last straw that sends the economy into a tailspin.
Rising Energy Prices and the Falling Dollar
09 June 2008 Texas Straight Talk 09 June 2008 verse 3 ... Cached
Part of the answer lies in understanding bubbles and monetary inflation, but especially the Federal Reserve System. The Federal Reserve is charged with controlling inflation through interest rate manipulation, however, many fail to realize that creating money, and therefore inflation, is really its only tool. When the Federal Reserve inflates the dollar as drastically as it has in the past few decades, the first users of the newly created money go in search of investments for their dollars. They must invest this money quickly and aggressively before it loses value. This causes certain sectors to expand beyond what would naturally occur in the free market. Eventually the sector overheats and the bubble bursts. Overinvestment in dotcoms eventually led to a collapse of the NASDAQ. Next we had the housing bubble, and now we are seeing the price of oil being bid up in the creation of another new bubble. Investors are now looking to commodities like oil, for stability and growth as they pull capital out of real estate. This increased demand for investment vehicles related to oil contributes to driving up the price of the actual product.
Texas Straight Talk from 20 December 1996 to 23 June 2008 (573 editions) are included in this Concordance. Texas Straight Talk after 23 June 2008 is in blog form on Rep. Pauls Congressional website and is not included in this Concordance.
Remember, not everything in the concordance is Ron Pauls words. Some things he quoted, and he added some newspaper and magazine articles to the Congressional Record. Check the original speech to see.