Anon good joke. Rand is only good to listen to if you think commiting mass murder is ok “only” when your party is in power. The Mises Circle is intended to be a discussion by Austrian Economists (of the correct Rothbardian ilk) on topics pertaining to economics. Rand Paul is not an Austrian Economist. It seems he has no idea of economics at all really.

Yeah, it was sarcasm from my part and anger after I heard of his intentions of ‘mass murder’ in declaring Israel can do whatever it wants (which is fine by me), but then goes on to say that ‘an attack on Israel is an attack on the US’.

And yet, he claims to be committed to decreasing debt but at the same time is open to WW III to decimate completely the US economy and killing at least millions.

Too bad father and son can’t connect more.

We are having lunch now. You haven’t missed us.

Sometimes your kids just won’t listen. He’ll never get a dime or vote from me that’s for sure.

It was a great event! thanks, tom!

Here’s a tube of Ron’s speech: http://youtu.be/6krFKAsD_1U

The reason to hyperinflate is to pretend like you’re good for your debts, and to do so at the expense of purchasing power. What they were saying is that the government will default instead of hyperinflate (it has done this several times in the past).

Because you don’t NEED to hyperinflate if you’re just going to refuse to repay your creditors.

Default can be considered a kind of concentrated hyperinflation, though; Instead of hyperinflation destroying the purchasing power of everyone’s credit money, they simply, by defaulting, destroy the purchasing power of the money used to purchase the bonds – in effect, the bond buyers will have given away their money to the government.

The same thing happens under hyperinflation, except the losses are distributed (for the benefit of the money printers and their cronies, by the way).

As Ron Paul says, all inflation is default (paraphrase).

But the currency will lose purchasing power in a default, as well, since people will realize that it’s backed by nothing but promises.

And consider that the American economy is structured by the fake currency which it has tricked other countries into accepting. When other countries stop using it, that portion of the global division of labor that is based on it will be restructured such that we will no longer be able to pay for imports with funny money.

And since the American economy relies on imports, this will be very bad for us.

We need to switch to a commodity money system so that we can pay for imports with something of actual value.