More on Inflationary Recessions

The Dr. is in the House - and he needs to be in the White House

Yes we need Ron Paul,if you will check my bog on the video by Lindsey Williams called The Energy Non Crisis you will for sure see where were headed. And if the American people dont stand up and be counted,We then have nobody to blame but ourselvs. Again thanks for having Dr paul on you know we need a doctor here and he is our man.

During the presidential debates I heard Hillary Clinton state she might 'freeze the interest rate for five years". I heard John McCain say 'we may need to stay in Iraq for 100 years". I keep 'hoping' (that is a joke of course) Barack Obama will say anything of substance. So Ms. Glick, a GIANT THANK YOU for the great interview with Republican Presidential Candidate Ron Paul. Finally a candidate who understands our monetary systems, and is unafraid to speak the truth. GREAT INTERVIEW!!!!!!!!!

Dear Ms. Glick, Thank you so much for your interest, interview with and coverage of Ron Paul; his words of wisdom are sorely needed in these troubled economic times. I am particularly grateful to you because Dr. Paul does not get much media coverage, and it is such a shame, as he has so many brilliant things to say in answer to our problems! I, for one, believe he is "right on the money," as they say, when it comes to diagnosing our economic woes and prescribing the solution! As you know, he has written several books on the economy. Thank you again for inviting him back on for further discussions, as it will give more people a chance to find out about him and listen to what he has to say. How about a regular show with you, would that be possible? Sincerely, A. Hayes Georgia

I am so pleased to see that you have invited Ron Paul to do another interview with you! I'll be sure to tune in!

Ms. Glick you are a breath of fresh air in the Fox Business lineup. Your interview with Ron Paul was a good one, but didn't hit the nail on the head. Alan Greenspan started this whole inflation mess many years ago by flooding the market with dollars at an artificially low interest rate. Ben Bernanke inherited the mess, and seems to be unable to fix it. I would advise reading Antal Fekete and his writings for the solution. It won't be pretty, but it will work. Ms. Glick should be the main host for Fox Business, not Neal Cavuto.

Thank you for a very fair and enlighting interview with Dr. Ron Paul. Not to repeat. I just agree with all the other comments ! Please everyone we need to save our country NOW .

The truth has always been hard to swallow, but we cannot exist otherwise. In today's world, when corporate influence is so great in the media, anything that is to the contrary, is whisked away in the hopes that it will go fade away. The simple truths of Dr. Ron Paul, will not fade, for they are the truths that set us free from the tyranny of King George, many years ago. History has repeated itself, under the guise of financial indentured servitude, the system that we live under today is one of taxation to feed the national debt. The banking system, has enslaved us, so that they can line their pockets. The Morgan's, Wartburge's, and Rothchild's, etc. Did it with the Federal Reserve act, and the 16th amendment. All of witch is unlawful, and Unconstitutional, and therefore not withstanding. But they have the guns, and that equals enforcement of their policies. If we allow it to stand as it is, the banks will own everything, and we will own nothing. Never have so few had so much, and left so little for so many.

Dr. Ron Paul is the only candidate that seems to understand that we cannot continue outrageous spending. You hear all that the Gov will do for you. There are not enough of us to pay for it all. We need Ron Paul.

First of all, thank you Alexis for having Ron Paul on. He seems to be the only one who is willing to connect the dots between loose monetary policy, inflation, the national debt and our misguided foreign policy. The Federal Reserve perpetuates a roller-coaster economy. When it floods the market with liquidity then that liquidity has to go somewhere, and when it does it creates another bubble. The Fed can't fix this problem and every attempt at doing so only delays the inevitable. As painful as it may be, let's get the Federal Reserve out of the picture, end the US empire overseas, pay off the national debt and allow the financial markets to regulate themselves. Stagflation will be followed by deflation at some point. Look at a chart of gold, does that look sustainable to you?

I think it is simple financial irresponsibilty.WE ARE BROKE!Printing more money will not solve the problem.Borrowing more money will not solve the problem. If we ran our finances like the government we would have lost every asset we had a long time ago. Were does it end?

Well David "from above" that was an awesome comment. I have to say, if we would of kept a commodity backed currency and not went to a fiat currency none of this would of ever happened. Very simple.

The primary problem is that the financial system has suffered a heart attack. Credit is frozen. The central banks are trying without success to restart the global economy by pumping trillions of dollars, euros, pounds, into the system. This is causing commodity price inflation and PPI inflation, what you are calling strong global demand. These actions have begun to feed into the CPI as well. The banks are losing trillions in reserves because of their reckless lending, packaging and repackaging of dodgy loans, trading in derivatives and reliance on computer models. But they cannot announce these losses all at once or they would have to shut down for lack of capital. The US dollar is the world's reserve currency and US consumption and money supply growth exports US inflation to other nations via the weak dollar. Normally these dollars are recycled into US assets but these assets are all falling in value, like the dollar, so the central banks of exporting nations like China and the Middle East are having to purchase these dollars with their own currencies, ergo inflation. They are beginning to diversify out of dollars and soon they may dump all their US paper assets and demand payment in gold or silver (China is still on a silver standard). With the shortage of credit, and given the fact that the US has consumed all its seed corn (savings capital), there is only one possible consequence, national bankruptcy and a firesale of US assets. The Fed will continue to operate on the fallacious models it uses and will continue to pump additional credit into the system taking lower and lower rated paper assets as collateral, in other words monetising the debt with worthless paper. The banks have already restricted credit to all their least important customers, probably bankrupting many small businesses, and will try to protect the biggest banks and the big corporations. Look for the big money centre banks to buy out the smaller banks for pennies on the dollar, if there are any left. At least that is what they usually do. This time it may be more difficult since they all have problems, except it seems, Goldman Sachs, who seem to have access to inside information. Dr. Ron Paul is as good a lay economist as you are likely to find and he is a follower of the Austrian School of Economics started by Carl Menge and developed by Ludwig von Mises, Frederick Hayek and Murray Rothbard. They demonstrate conclusively that the Business Cycle is CAUSED by the actions of Central Banks, especially when they are driving the economy without functioning brakes, the situation we have had since 1971 when Nixon closed the gold window. They have had a very long run this time but it looks very much as though they have brought us to the brink of the precipice, hence the inflationary depression that Dr. Paul talked about and which Austrian Theory has always predicted as the inevitable conclusion of fiat currencies, fractional reserve banking and government welfare/warfare spending. Dr. Paul has the answer but you really have to listen to him and most people don't want to. Give him more time. This may be you last chance to save your nation.

"What happens in this case when the restrictive monetary policy is using rebates to stimulate the economy? Doesn’t that add to the inflation concerns?" Forgive me, I don't quite understand your question. Using rebates to stimulate the economy seems counterintuitive to a restrictive monetary policy and will certainly lead to inflation concerns. Where does the rebate money come from? It must either be taxed, borrowed, or inflated. To cure a recession brought on by inflation and deficit spending with more inflation and deficit spending will only prolong the day of reckoning. And yes, I beleive we are in a recession, an inflationary recession at that. We just may not feel it until the panic comes. But it seems the Fed is panicking, drastically cutting interest rates. But again, this is inflation and will only inflate the problem. Continuing to spend and borrow like crazy while simultaneously weakening the dollar is bad news. Common sense will tell us that countries will inevitably drop their dollar denominated assets if this monetary policy is maintained. I very much enjoyed your interview with Ron Paul. You impressed me. I will certainly be tuning in to you more and I hope to see this topic discussed much, much, much more as it is so critical. Thanks.

Thank you so much!! Those of us who have been watching and waiting for Dr. Paul to get the opportunity to bring the economic discourse to a much higher level are indebted to you. No smirks, no interruptions, just a real, honest discussion. I can't wait to see the next one. As to your questions, based on anecdotal evidence we see here, my husband and I believe we're witnessing stagflation.

global growth is the conudnrum this time around vs previous slowdowns. No one can seem to answer is the price of oil increasing because of other contries doing well or the dollar declning or both. Keep the dialogue going and maybe we can all figure it out together