this event was part of the 2009 tennessee williams new orleans literary festival. for information visit tennesseewilliams.net. >> this weekend, the best-selling author of into the wild, men win glory, the biography of cat tillman, killed by friendly fire in afghanistan five years ago. afterwards, part of a book tv weekend. >> congressman ron paul wants or the federal reserve accountable for the country's economic crisis, you wants to end the fed. sunday he talks about his new book on book tv. and follow us on twitter for the latest schedule updates. >> from freedom fest 2009, a talk by peter shift, author of crash proved, how to profit from

the coming economic collapse, and moves in a bear market, this event is 45 minutes. >> every day will notice we're handing out some cards. the first has to do with our mailing list. if you are already on the mailing list, a few got an e-mail from me about this event you don't need to fill it out, we already have that information. how many people here came because i sent them an e-mail? that is pretty good. if you are not on my e-mail list, please grab one of these cards, give your contact information, you would get my free newsletter and once in awhile, i make e-mails to the database. make sure to fill that out. also, you'll notice another card. let me take an opportunity to clear up some of the rumors regarding the status of my potential senate bid.

about a year ago, there was a movement to try to draft me to run for the senate. a lot of people were encouraging me to run. i started a notice, a lot of things happening on the internet, a lot of things on various bloggers and websites. i got a lot of the males and phone calls from people wanting me to run for the senate. it was the furthest thing from my mind and i didn't consider it at all but as the males continued to come in, the on-line chatter continued to increase, the police and started donating to the nonexistent campaign, i decided to give it some consideration and particularly in light of what the government has been doing, confirming my worst fears with respect to the economy. when i first wrote my book crash bruce and i predicted all of this, my main concern was not the bursting of the bubble, it was the government would do to

be inflated and that is what is happening. as i see one mistake after another being made in congress, maybe my going there's not such a bad idea. kissel i recently formed an exploratory committee. i paid for, out of personal funds, some polling, hired some political consultants to try to report to me on the feasibility of such a run, and what it would take to win, what commitments on my part would be, i talked to a number of people who have operated in the political sphere, something other than making a contribution to ron paul, acting as an economic adviser to his campaign, i have been outside the political realm most of my life. but at this point, based on the polling i have done. i live in connecticut. if i do run for the senate seat, i would be running as a

republican, so i need to get the republican nomination. if i get the republican nomination, i get the privilege of running against chris dodd, to try to kick him out of what in his mind must be the house of lords because he has been there for 30 yards and inherited his see from his father. he has done enough damage and i would like to be the one to give him the boot. social last decision, the last remaining obstacle in my consideration of this run is can i finance the campaign? will people make the donations? like the volunteers? because i don't have any political connections and i don't have anything to offer special interests. my folks are not going to be for sale. time to going to get money has to be from people who want nothing but liberty for their senator. the question is, can i raise the money? we will see.

i just put my web site live yesterday. you can't donate yet because the donation is not operating but hopefully it will be within the next day or two. what i am going to do is take a look over the next few weeks and see how many people donating and how much money they donate and see how badly people want me to run. so you don't think you are wasting your money, it is not enough if you donate. if i don't run, all the money goes back. i only keep the money if i decide to run. i think the last remaining obstacle is can i raise the money, so i passed out these cards, the web address is there. that is where you can donate online. you can also send a check. if you want to donate, make a check to the exploratory committee. you can mail the check to lighthouse in connecticut. i'm at 2 westbranch road in western connecticut.

we will see. how many people want me to go to the senate? a [audience shouting]] the only way we're going to put the freedom back and freedomfestive i do go to the senate. if you want me there, it is up to you. if enough people contribute, then i will do it. let me go on to my actual presentation. one more thing. i am peter schiff and i approve that message. anyway. what is happening in the u.s. economy right now, what everybody says is the crisis is not the crisis. falling real-estate prices, companies going bankrupt, credit being restricted, consumers not spending as much, savings going, none of this is the problem. all of this part of consequences of the problem.

if people are trying to solve a nonexistent problem, if they're dealing with the symptoms and not the disease, they're not going to solve anything. the problem was years of reckless spending and borrowing. and this didn't happen because of some failure of capitalism, far from it. capitalism would have prevented this from happening. this is the failure of government. the problem is not that the bubble burst, the problem is the federal reserve would sheet money and congress with moral hazards, inflated the bobble in the first place. the fact that it burst is a foregone conclusion. but our politicians, who never understood the problems, who didn't understand the crisis, the people who were laughing at me when i tried to point it out things that we can only get the situation back, if we could only get consumers' spending, if we could only get more debt, somehow we're going to solve

this problem. we are in trouble today precisely because we bar code too much money, precisely because we consume too much. the solution is not to do more of that, if you are in a gigantic hole, how to get out of that by digging the hole deeper? we are not. the government wants to stimulate the economy but they don't stimulate the economy, they don't stimulate real production, they don't stimulate capital investment, we are not producing more goods as a result of government stimulus, but they stimulate is bigger government which stifles the economy. what they stimulate is more reckless borrowing, more consumption, more gambling. why would we want more of that? that is why we are in trouble. george bush ran on a platform of change. where is the change? he said if you are in a car and driving force a cliff, you should change direction. i agree.

we should change direction. but all he did was step on the gas. we don't need more stimulus. we are overdosing on stimulus. the stimulus is the problem. it is not the solution. think back to 2001/2002, when george bush was first elected. what happened? we had a recession. why do we have a recession? because the government created stock market bubble based on cheap money of alan greenspan, burst as soon as he got in office. it was contacted by the events of september 11th, but the economy was going to enter recession. rather than allowing the free market to correct the problems in the economy that had developed during the 1990s so we could have a lasting, sustained recovery, the government decided to stimulate. how did they stimulate? the fed slashed interest rates

down to 1%, we cut taxes, increase government spending and turn the surplus into a deficit call in the name of stimulus. what did get us? the biggest consumption binge in human history. we borrowed trillions and trillions of dollars from people all around the world and what did we do with the money? we spend it all. it is gone. we build houses we couldn't afford, we adorned them with a granite and marble and all kinds of consumer electronics. we imported all this stuff we could afford, and we had this phony economic expansion based on the accumulation of consumer debt and rising asset price. y del this happen? didn't happen because of the free market. it happened because of the government. how is it that we could barroso much money? did the free-market could

interest rates at one%? no. it was the federal reserve did did that. if the market was setting interest rates they would have been much higher. what what higher interest rates have done? it would have discouraged borrowing, catch home prices in check, would have reported people for saving their money so we would have had more savings, less borrowing but the government didn't one that. they wanted phony gross so they could get reelected so they chose to stimulate. what did the government do? they created these moral hazards so they're blaming everything on greed. everybody is greedy. i am greedy, everyone in this room is greedy, greed has been here for hundreds of years. why did this crisis happen now? why all of a sudden is agreed such a problem? the government wants you to think it is because of the regulation. that is ridiculous. wasn't deregulation. what happened, the only deregulation there was was the deregulation of the free market. it was government manipulation

that created the moral hazards that prevented the free market from checking greed because greed is always counterbalanced by fear. everyone who came into this auditorium had to walk through a casino. why didn't you gamble all of your money? why didn't you put down your life savings. you might make a lot of money. then you want to win big? the reason you don't do that is because you don't want to lose. the government told you you couldn't lose. we would all be at the casino right now. and would be no one listening to me. is no surprise that when the government says to lenders make mortgages to anybody because the government guarantees that, is it any surprise, when the government guarantees student loans, don't worry how much they barrault, don't worry how overpriced the tuitions are because of the student doesn't

pay back, the government will. once the government is in there, there is a moral hazard, the free-market is not allowed to operate, it short circuit did. you can't have capitalism without market forces. doesn't work, just like you can't have capitalism without fell year, you need risk. companies that doing it wrong, companies that are losing money have to fail. we can't prop them up. when a company is losing money in means it is not effectively allocating resources, it is taking labor and capital, combining them and losing money. we want to put it into that. we want to bankrupt those companies and free up their resources to somebody else who can do a better job. what does the government want to do? speewun to prop it up, keep it in business at taxpayer expense so they save a few jobs that are obviously we don't want because we would rather allocate that labor and in the process they

destroy more productive jobs because in order to prop up these money-losing companies the government needs revenue. the government doesn't have any money, they will bailout general motors, where does it get the money? has taken from another company that isn't failing. we have reverse darwinism, anti capitalism where you have survival of the unfit. the more you screw up, the bigger your losses, the more money you get from the government. what are these incentives? lose money and get rewarded, make money and get taxed. we cannot run an economy like this but unfortunately the government has been able to blame these problems on a lack of regulation. just like they were able to blame the great depression on herbert hoover's staunch belief in free market capitalism and his failure to intervene. this is all revisionist nonsense. the great depression was created because hoover and roosevelt didn't allow a free market to

work. they tried their own version of bailout and stimulus, so we had a great depression. we ultimately got out of it not because of roosevelt but despite rose about, not because of the second world war but despite the second world war. the fact of the matter is the government is now in danger of creating an even worse depression than the one they created in the 1930s. the reason this depression could be worse and will be an inflationary depression unlike the one our grandparents had, is because the fundamentals of the economy are even worse, the government is already enormous. when roosevelt expanded government, he started with a tiny government. he might have doubled its size but it was still relatively small compared to the real industrial parts of the economy. to day the government is already huge and it is becoming off the charts, becoming the enormous.

to the extent we borrow any money back then we had plenty of americans with savings. we don't have that anymore, we are financing this gigantic growth in government by borrowing money from japan and china, we are borrowing money from all around the world. we are drowning in a sea of debt. the government's misguided version of economic stimulus is that we have got to get the economy going by encouraging more spending, more consumption. the only way to get more consumption is to get more production. you can't consume something that isn't produced. production has to come first, supply comes before demand. they haven't figured that out. where does apply come from? capital investment. you can't produce goods unless you have the machines to do it. where does the capital come from? it comes from savings.

entrepreneurs can't bar money that hasn't been saved. to consume more, in the future, you have to consume less right now. we have to save more right now. so if we are going to save more, we have to spend less. why should the government tried to interfere with that process? the government has economics on its head. they think the key is creating demand. the basics of economics is demand is infinite. anybody concede that. i have a six-year-old child. i don't have to stimulate his demand. you wants everything he sees. i flew here on a commercial plane. i would have preferred to fly here in my own private jet. why don't i have one? is it because i don't want one? there a lot of things i don't have. i don't have a 600 foot yacht with a helicopter and submarine

on it. i want one. to any government to stimulate that desire? no. the reason i can't have one is i can't afford it, because the prices for those goods are too high. we need prices to come down. how do prices come down? more production, or i have to earn more. the reason my 6-year-old child can consume things is his father works, not the other way around. i don't work because he is consuming, he consumes because i work. but the government wants us to believe it is the other way. when the first plasma tv set came out, it costs $10,000. i saw one and wanted it, it was pretty cool, but i didn't buy it. why did i even chile by one? because productivity increased so much that the price of those plasma tvs dropped to the point where i actually wanted one, i

can actually afford one. it was increased productivity that created demand by lowering prices. that is what is going to happen. this is a very important point to make and one of the biggest things people miss, the same way people, when i was talking about the real estate bubble in 2004/2005, how prices were going to collapse, that is never going to happen, i explained the nature of the phony economy and people didn't want to hear it, people -- something is equally ridiculous but also a commonly held belief by just about everybody who covers finance in the newspapers, every economist and every university, every major head of a major investment bank, everybody in government, they are all making the same mistake. they think that we have got the world over some kind of beryl, the we have china over a barrel, that they have no choice, that

they have to buy our debt forever because if they stop lending us money we won't buy their stuff. they have to keep buying our bonds forever because the minute they stopped, they will take such a big loss on their current positions that they will never stop, that they will throw good money after bad forever. that is completely ridiculous. that is not going to happen. nobody does that. companies go bankrupt because creditors come to their senses. if creditors always extended loans to avoid having to write them down, no one would ever go bankrupt. lending money, lender financing only works if you see a hope of getting paid back. having a position where you have to potentially finance your customers makes no sense at all. the chinese might as well dump their goods in the pacific

ocean. what good is it sending them over here if all we give them is little pieces of paper? if somebody handed me a little piece of paper, with the word ten trillion written on it, where is the value? what would happen if the chinese stopped lending us money? what would happen? would it be oh my god! what are we going to do with all this stuff? we have all this furniture, all the consumer electronics call these articles of clothing, what we going to do with them? they are going to use them because what would happen? the minute the chinese stop buying our bonds, the dollar will collapse. effectively, reducing the prices of everything china produces for chinese consumers, then they will buy them, just like i bought that plasma tv. people think that americans are somehow during world favor because we are the only people who want stuff.

the chinese don't want anything. chinese workers are producing washing machines and working in these factories for 10 hours a day for low wages, thinking i am glad i don't have one of these. are want to wash my clothes in the river in my backyard with a rock. they are thinking the same thing i was thinking, i wish i could have one of these, if i could only afford it. why can they afford it? because the government is stealing their purchasing power and giving it to us. the chinese can't afford it, they can make it. we are the ones that can't afford it because we are not making it. the chinese are going to figure this out. they will also figure out that they bought $1 trillion worth of bonds, no turning back. sometimes you have to cut and run, sometimes you have to take your losses and admit your

mistakes because why make them bigger? think about the size of our deficit. we are talking about close to a trillion dollar deficit, i am sure it will be more, they're talking about a second stimulus, the third stimulus, the first happened under bush. if the chinese can do the math, they are buying 50% of our bonds. the chinese say they're going to run a $2 trillion deficit which means we have to loan them another trillion this year. what about next year? the year after that? instead of worrying about how much they're going to lose on the bonds they have own, they're worrying about how much they're going to lose on the bonds we are -- those losses are horrific. take an even bigger loss on $5 trillion or $10 trillion, how far is it going to go?

there is a painful example, a clear example that ponzi schemes end, no matter how clever they are, no matter how long they have been operating, they always end. look at bernie madoff. how long did bernie madoff keep that scam going? did people lose money five years ago? no. was in a ponzi scheme 5 years ago? yes. they do lose money because they hadn't figured it out. when anybody wanted their money back, he wrote them a check. got the money from other people who didn't know it was a ponzi scheme. the government does the same thing, we can't pay is this money back, everybody knows it, there's no way we can raise taxes and pay this debt off. we can only keep borrowing until the world comes to its senses, then we have to do the same thing as bernie madoff. we have one option bernie madoff didn't have, we have a printing press, we fall through

inflation. i joke that, keep this thing going, instead of having bernie madoff in jail, we ought to make him secretary of the treasury. maybe it would be too obvious if we did that. this is going to end, just like lenders eventually stopped lending money to people who couldn't pay it back, just like real estate prices didn't go on forever. this dynamic between russia, china or other countries to america will not go on forever. we will not continue to consume what other people produce or continue to bar what other people save, especially since the borrowed money is going to consumption. when you borrow money to consume, you can't pay it back. our you going to pay it back? darling is for businesses. it is for entrepreneurs, to accumulate capital. society benefits from that, when

you borrow money, you get a capital asset, you can pay back the loans because the capital asset generate an income. income pays back the debt. the income pays the interest. when you borrow money to spend it, you have nothing. how are you going to pay it back? you just have to reduce your consumption in the future to pay for your indulgence. we have to move away from that but the world knows we can't pay it back. when this dynamic comes to end, what is going to happen? when foreigners don't buy our bonds, bond prices collapse. when they no longer have a dollar, the dollar collapses. what is going to happen? the federal reserve is going to be in a real pickle. when i talk about hybridinflation, that is not based on current monetary

policy. current monetary policy will give us high inflation. it will not give us zimbabwe style inflation. to get that type of inflation the federal reserve is going to have to continue to make the same mistakes and the government has to continue to make the same mistakes they are making now. if they do, that is what we are going to have. the key timing is going to be when foreign demand stops, is the federal reserve going to buy the bonds? or are they going to do what ben bernanke is bluffing that he is going to do and prop up the excess liquidity, put the genie back in the bottle. how will they do that? what the federal reserve is going to have to do is refuse to buy those bonds, which means bond prices will collapse because there will be no buyers until prices collapse sufficiently to produce an interest rate high enough to attract real buyers.

who knows how high that might be? in 1980 rates got to 20%. imagine if something like that happened today? even if they got 10%, how would the united states government pay the interest on the national debt? in 1980 the debt was financed with 30 year bonds. today, the debt is financed with t-bills. the united states made the same mistake as some prime mortgage borrowers. we refinanced our fixed-rate national debt for and arm. if interest rates go up in doesn't affect the money we borrow now. do you think any financial institution would be solvent with 10% interest rates? goldman sachs makes a big deal, paid back the tarp money, do you

think they would be solvent if they had to deal with a real interest rate if they didn't get this free money with their buddies from the federal reserve? the federal reserve had to defend the dollar with real interest rates, could j. p. morgan, could anybody stay in business with those law-and-order -- loan portfolios? absolutely not. what would happen to home prices if mortgages were double digits? is the government going to administer all of that? they are going to have to to avoid massive inflation. they are going to have to do it. the problem is if they won't administer that medicine today, why should we believe they will do it in the future when it is going to taste a whole lot worse? there is the real risk that this is going to happen. this has dramatic implications on us as americans as investors, because as the situation gets worse, do you think the economy

is bad now? we a few years. we are just getting started. this is the overture. we haven't heard the opera. there is no fat lady even in the theater at this point. is going to get a lot worse than we are going to lose a lot more of our freedom because the government, every time they make the situation worse, they claim the solution is more government. it is always more government, the stimulus wasn't big enough, we need more of it, the problems were worse than we thought because of too much capitalism, we need more government, more central planning and that will solve the problems. has the problems get worse, ultimately a lot of the temporary forces that have been keeping consumer prices down are overwhelmed by the inflationary forces that will cause them to go through the roof, how is our government likely to react to surging food prices, surging energy prices.

mike guess is price control. will will that do to the country? how is that going to be when there are shortages of basic necessity? what will happen when people are buying things on the black market using who knows what? in addition to losing our economic freedom people are going to lose their financial freedom because they're going to lose any plan they had of retirement. one barack obama talked about the fact that his massive government expansion isn't going to cost average americans anything, it will only be paid for by the rich, that is all a sham. they're not raising taxes on the rich nearly enough. there are enough rich people to attack that the more they tax the fewer there will be. we have this huge growth of government, it has to be paid for. even if we succeed in borrowing

the money from the chinese for a while, theoretically we have to pay it back, we have to raise taxes in the future by an even larger amount than we would have raised them today but i don't see that as a realistic political possibility. they are going to print money to pay for the government. that doesn't mean it is free, that doesn't mean the average american gets all this government for nothing. when the government prints money they brought -- rod every american citizen, it hurts most people who are retired and living off of their accumulated purchasing power. but they tax every american wage earner whose wages are constantly being debased and when he goes to the grocery store and sees that food is more expensive or goes to the gas station and see that gas is more expensive, that is obama's tax, that is the consequence, that is how he is paying for all this government. the problem is our economy is so now invested after years and years of reliance on cheap money

and access consumer spending, we have an economy that doesn't work, we have an economy that is unsustainable because in order to sustain it we have to rely on this dynamic where the world produces and we barlow and consuming definitely. we know from the housing bubble, or bernie madoff, that nothing that is unsustainable will go on forever. we desperately need to allow free market forces back in this economy. to make it more efficient, to make it more productive, so we can have real recovery. we can, we can see a prosperous nation again but it will never happen if we abandon every principle that led to that prosperity in the first place. if we are going to try to regain prosperity based on government, based on government allocation of resources, based on politics instead of market forces, instead of abysmal and, if we are going to use a heavy hand of the state to try to figure out

what companies need capital, we will never get out of this whole, we will continuously dig deeper and deeper until it is so deep that there is no way out. if you look at how ridiculous this is, when we send hillary clinton to china as secretary of the treasury and she is there and we are sending emissaries to china all the time, things like wall street dog and pony show, smacking this lipstick on a pig trying to get our creditors to keep buying our debt, when she goes over there is the same old nonsense, you have no choice, we are all in this together, you have to lend us this money, you have got to buy these bonds because you don't buy them, we will not buy your stuff. you have to tax your citizens, take their money away from them

and give it to us so that we can lend it to our citizens so they can use that money to buy the goods that your citizens produce. what kind of crazy policy is that? if anyone has read that book tom sawyer by mark twain, there is a passage in their where he convinces -- tom sawyer convinces his friends to do his shores, he gets them to pay for the privilege. little did samuel clemens no when he wrote that passage that one day it would form the basis of the global economy. he conned them and what the chinese are going to decide, they have already decided, wait a minute, clinton's approach doesn't make sense. china has a better approach. why not leave the purchasing power with the chinese citizens?

that way they have their jobs and their stuff. the only reason we work, politicians make believe we all want to work. i don't know about you, i prefer not to have to work. most people don't want to work. if given the choice of collecting the same paycheck and not showing up, most people wouldn't clock in. we work because we want things, we want the productivity associated with that labor. the chinese don't get that. they get to work and we get the productivity. we did that for a while in the united states, it was called slavery, and it wasn't a good deal for slaves. when they were freed, fine. i think the same thing is going to happen. people say the whole economy is going to collapse over there because they're an export driven economy. no, they're not, they production driven economy. they don't have to export their production, they can keep their

production. the fact that they export it benefits us. if china was alone in the world, they were producing all of this stuff, would it be some kind of national epidemic? we have all this stuff and don't know what to do with it? is it is america that would be in trouble because if you take china away and the countries that supply as we would just have a bunch of paper and it would have nothing to do with it because there would be nothing on the shelves, just pieces of paper. they are going to figure this out. the world is going to change, the dynamics are going to change, the production is going to be reclaimed by the people who rightfully deserve it. america is going to see its standard of living dramatically reduced to reflect the fact that based on years and years of bad monetary fiscal policy that has shut down the free-market, we have allowed the real wealth

producing components of our economy to shrivel and replace it with a facade, false service sector economy and as it implodes, despite the government's efforts to prop it back up, our standard of living is going to fall. as investors we need to reposition our portfolios, we need to reallocate our wealth so the we own the currencies that are going to gain value, so we don't -- real assets in countries whose economies are going to grow, standards of living are going to rise once they're freed from the burden, it is a burden, having to prop up and support three hundred million americans. it is going to be the same way at the end of the second world war when the war ended, we didn't have an economic collapse because ten million soldiers were unemployed. they found jobs in civilian employment that were more productive. maybe we had to fight that war,

but when we fought the war, all of our resources were consumed by the military, our factories were making tanks and bombs, and they weren't making selling machines, they weren't making automobiles and basic things, margarine, nylon, there were shortages, consumer goods were rationed in the united states so that resources could be used by the military. if we had government economists back in 1944/1945 we would still be fighting that war. they would have said to hoover we can't invaded iwo jima for normandy. if we end the war our wartime economy is going to collapse. what about the factories? if they can't make bombs, one of the going to do? they changed. they made stuff for civilian purposes and the economy benefited. the same thing is going to happen. we are going to have this

decoupling. the reason the decoupling is going to be good for the world is but the world is decoupling is not the engine but the caboose. if you decouple the caboose you can move even faster. that will happen. it is not going to happen without any kind of friction. there are a lot of special interests that benefit from the status quo, politicians, businesses that benefit from shipping all of this stuff to america and its infrastructure and there is some resistance, but ultimately the free market will prevail and china will reach full. they're going to make things for themselves. 1.3 billion people in china, the one billion people in india. we are worried about consumption, 2.3 billion people, we are worried about consumption? we need to worry about production. plenty of people will consume when we stop. if we are ever going to restart that consumption which is

something we want to do, we need to recreate the conditions that made us such a prosperous country in the first place. we became rich not because we but the biggest taxer but because we barely tax. the government wants -- we have a problem on wall street because of lack of regulation. i own a wall street brokerage firm. they're regulating me to death already. now they want to layer on even more. what we need is the government to get out of the way so the free market can work and it is allowed to work, if americans can rebuild their savings, if we can reduce the size of government, i hear a lot of people talking about we need tax cuts, yes, we need tax cuts the weekend cut taxes and to be cut government. we need to make government a lot smaller. if it is smaller is less expensive and if it is less expensive we don't need high taxes. what we need is the government

to shrink so that it is less of a burden on a productive part of the economy. what is our government doing now? it is getting bigger, it is doing the opposite of what it needs to do. we are trying to dig our way out of this whole and the government has its foot on the shoulder. how can we get out? if we are going to, if we are going to be a prosperous nation again which i hope and believe we can be, we have got to change the thinking in washington, we have got to stand up and defend the free market. in the waning days of george bush's presidency said we had to abandon free market principles in order to save the free market, he was dead wrong. first, he was wrong on the fact that abandoning those principles, george bush abandoned free market principles the day he took the oath of office. that was the problem. we need to embrace free-market principles like never before because that is the only way to

get out of this mess. you talk about principles, what good are your principals if the minute there's a problem you abandon them. if we think government works in a crisis, it should wear good all the time. things are bad, we need more government, why not when they are a good? is precisely when things are bad that we need capitalism and freedom. when the economy is down, as it was in the 1930s, as japan was fundamentally in the 1980s and still is today, when the economy is down, you can withstand the stupid things the government does. if you are a strong economy you can and force government the when you are a weak economy, when your economy is in shambles like ours is, you can't afford it. we are too broke to afford it. all the time the weekend afford more government for bigger government, is right now.

if you talk about shrinking government, we can't do that, we can't shrink government because if we lay government workers off there is more unemployment. temporarily, maybe, but how are government workers gaining unemployment? they are usurping resources from the private sector. those government jobs exist at the expense of private sector jobs, at the expense of jobs that might actually produce things because government workers aren't producing anything. that has to come from the productivity of others. if people were actually producing, the lower our standard of living. we are not going to continue to confine and the rest of southeast asia and the world, not just production goods, look at the oil we import. we will not import all of this oil and they for it with paper. that will come to an end and prices are going to go up for americans because of the reduced