What business would buy in at 7% when their inventory is high, and there is really no great purchasing going on. The only ones would be business that need the cash, which if they charge usury rates are harming the economy, thus the recovery, and increasing unemployment, etc.
Now said bank is able to get 0% money, and invest in treasuries and other investments, risk free? Is this the process used to get money into the system? Fed lends to bank and bank buys government paper and the process continues. I have to believe I am not understanding the process correctly.

It was also stated that the “free” money is to cover the bad loans/ charge offs. There is also another batch commercial paper is about to go bad so the bank ( which made the loan, or at least performed a risk analysis on the paper) is hoarding the cash to protect against the next foreclosure party.

I will apologize in advance for my financial naiveté, but there seems to be a loss of common sense in this process.

Man i just love your blog, keep the cool posts comin…..

Thank you for writing to us about Dr. Paul’s position on Individual freedom’s and liberty. Never before, expect perhaps around 1776 has this been such a big issue in our country. Over the course of history, people have been passionate about what they perceive as infringements on their personal liberties and are willing to stand up to big governments who take those away. Right now, in our country is no exception. Supporters of Ron Paul recognize that “Congressman Ron Paul (R-Texas) is the leading advocate for freedom in our nation’s capital. As a member of the U.S. House of Representatives, Dr. Paul tirelessly works for limited constitutional government, low taxes, free markets, and a return to sound monetary policies.”

Ron Paul does not support the Patriot Act. Not only does the Patriot Act take away many of our personal freedoms, it does so under the mask of security. In his own words, here is what Dr. Paul has to say about the Patriot Act:

“The misnamed Patriot Act, presented to the public as an anti-terrorism measure, actually focuses on American citizens rather than foreign terrorists. For example, the definition of “terrorism” for federal criminal purposes has been greatly expanded; future administrations may consider you a terrorist if you belong to a pro-gun group, a citizen militia, or a pro-life organization. Legitimate protest against the government could place you (and tens of thousands of other Americans) under federal surveillance. Similarly, your internet use can be monitored without your knowledge, and your internet provider can be forced to hand over user information to law enforcement without a warrant or subpoena.

I hope this answers your questions sufficiently.

Michael Imbergamo
Ron Paul 2008 – Volunteer