Today, Republican Ron Paul wrote on CNN.com that the Government bailout proposed by President Bush will lead this country to a "Rough Economic Ride".

Here's what he wrote:

"Many Americans today are asking themselves how the economy got to be in such a bad spot.

For years they thought the economy was booming, growth was up, job numbers and productivity were increasing. Yet now we find ourselves in what is shaping up to be one of the most severe economic downturns since the Great Depression.

Unfortunately, the government's preferred solution to the crisis is the very thing that got us into this mess in the first place: government intervention.

Ever since the 1930s, the federal government has involved itself deeply in housing policy and developed numerous programs to encourage homebuilding and homeownership.

Government-sponsored enterprises Fannie Mae  and Freddie Mac were able to obtain a monopoly position in the mortgage market, especially the mortgage-backed securities market, because of the advantages bestowed upon them by the federal government.

Laws passed by Congress such as the Community Reinvestment Act required banks to make loans to previously underserved segments of their communities, thus forcing banks to lend to people who normally would be rejected as bad credit risks.

These governmental measures, combined with the Federal Reserve's loose monetary policy, led to an unsustainable housing boom. The key measure by which the Fed caused this boom was through the manipulation of interest rates, and the open market operations that accompany this lowering.

When interest rates are lowered to below what the market rate would normally be, as the Federal Reserve has done numerous times throughout this decade, it becomes much cheaper to borrow money. Longer-term and more capital-intensive projects, projects that would be unprofitable at a high interest rate, suddenly become profitable.

Because the boom comes about from an increase in the supply of money and not from demand from consumers, the result is malinvestment, a misallocation of resources into sectors in which there is insufficient demand.

In this case, this manifested itself in overbuilding in real estate . When builders realize they have overbuilt and have too many houses to sell, too many apartments to rent, or too much commercial real estate to lease, they seek to recoup as much of their money as possible, even if it means lowering prices drastically.

This lowering of prices brings the economy back into balance, equalizing supply and demand. This economic adjustment means, however that there are some winners -- in this case, those who can again find affordable housing without the need for creative mortgage products, and some losers -- builders and other sectors connected to real estate that suffer setbacks.

The government doesn't like this, however, and undertakes measures to keep prices artificially inflated. This was why the Great Depression was as long and drawn out in this country as it was.

I am afraid that policymakers today have not learned the lesson that prices must adjust to economic reality. The bailout of Fannie and Freddie, the purchase of AIG, and the latest multi-hundred billion dollar Treasury scheme all have one thing in common: They seek to prevent the liquidation of bad debt and worthless assets at market prices, and instead try to prop up those markets and keep those assets trading at prices far in excess of what any buyer would be willing to pay.

Additionally, the government's actions encourage moral hazard of the worst sort. Now that the precedent has been set, the likelihood of financial institutions to engage in riskier investment schemes is increased, because they now know that an investment position so overextended as to threaten the stability of the financial system will result in a government bailout and purchase of worthless, illiquid assets.

Using trillions of dollars of taxpayer money to purchase illusory short-term security, the government is actually ensuring even greater instability in the financial system in the long term.

The solution to the problem is to end government meddling in the market. Government intervention leads to distortions in the market, and government reacts to each distortion by enacting new laws and regulations, which create their own distortions, and so on ad infinitum.

It is time this process is put to an end. But the government cannot just sit back idly and let the bust occur. It must actively roll back stifling laws and regulations that allowed the boom to form in the first place.

The government must divorce itself of the albatross of Fannie and Freddie, balance and drastically decrease the size of the federal budget, and reduce onerous regulations on banks and credit unions that lead to structural rigidity in the financial sector.

Until the big-government apologists realize the error of their ways, and until vocal free-market advocates act in a manner which buttresses their rhetoric, I am afraid we are headed for a rough ride."

By Ron Paul
Special to CNN

If you're still up to it, then read on...

What does this mean to you? First, let's look at where we're getting this money from. The government doesn't have money. Regardless of what you think, they don't. The money they use to fund such causes like wars, government sponsored programs or this economic bailout comes from borrowed money from the Federal Reserve. The Federal Reserve is the Central Bank of the United States which is a "government entity with private components" and is made up of The Board of Governors, Federal Open Market Committee and numerous private banks who elect their own members of the board of directors at their regional Federal Reserve Bank. The Board of Governors however are appointed by the President and approved by the Senate.

Now, even though the Board of Governors are appointed by the President as representatives and is the governing body of the Federal Reserve, it is important to know that the Federal Reserve is an Independent Government Institution able to act on its own without consent from the Senate or the President.

The Federal Reserve issues our currency and controls the amount of money that circulates in the United States. It is also important to know that when they issue out currency, it is a loan. So whenever the government asks the Federal Reserve to give them money, they are actually asking the Federal Reserve to loan them money. This money that the government borrows is then paid back not by the government's pocket, but ours. Yes, you and me; the tax payers.

It is also noteworthy to understand that any loans from any banking institution, comes with interest. This amount is decided by the institution that carries out the loans and is added on to the amount borrowed. This alone, creates debt. Currently the United States has accumulated a National Debt of $9,664,631,803,259.07.

Let's go back to the subject; if we were to bail out Wall-Street and continue to borrow money from the Federal Reserve, the most likely result would be that the value of the already depreciating dollar would continue to spiral down and in-turn create an infinite debt. IF this is the case, then the dollar would eventually be destroyed. What happens then?

Enter the Amero. You may not know this, but there are talks of erasing the border lines between the US, Canada and Mexico, which will result in the North American Union or NAU (similar to what is now known as the European Union). This is still supposedly just a theoretical development, but many political skeptics believe that this is already in the works.

One main reason for this accusation is the creation of SPP or Security and Prosperity Partnership of North America which went active as of March 2005. The SPP presents itself as a, "trilateral effort to increase security and enhance prosperity among the United States, Canada and Mexico through greater cooperation and information sharing."

Another key debate is the proposed currency for this theoretical union; the Amero, which according to some, have already been developed. In an interview with CNBC on Nov. 27, 2006, a Vice-President of a prominent London investment firm urged a move away from the dollar to the Amero and was quoted to have said that the Amero, "will have a big impact on everybody's life, in Canda, the U.S. and Mexico."

Steve Previs, a Vice-President at Jefferies International Ltd., explained that the Amero "is the proposed new currency for the North American Community which is being developed right now between Canada, the U.S. and Mexico."  

This sadly went under the radar of most Americans. With the continuing decline of our economy and the compulsive borrowing of the government; which may lead to the fall of the American dollar, things seem to be set in place for such a "theoretical union".

Part II coming soon...

While you sit there shaking your head; either pretending not to see it or are in disbelief that it could really happen, you can't deny the fact that we are in a state of crisis. Yet, you sit there and take it. Doing what they want you to do. You buy the clothes and shoes that they've over priced and marketed as a way to be accepted in society. You've fatten yourself with the food and beer they've saturated with disease and drugs, masking it behind a fancy decor and pricey menus. You've let them stupefy you with their media, gadgets and gears to such an extreme that you willfully put yourself in future or further debt with out any thought of the repercussions. You've let them wage countless wars and supported their fictional battle against people who we will never find. You've let them lead you blindly to worship a force that you've never seen, met or have spoken to. You've let them create a monetary system built to enslave you instead of rewarding you. You've let them drown you in a delusionary system whose only purpose to keep you occupied and drain you of any will to critically think. You are their slave. They've silenced our leaders who questioned their authority, and replaced them with their own faculty of Bankers, Oil Tycoons and Privateers.

You don't have to take this as the truth, and it's better that you don't. Don't listen to one person's opinion. Find your own goddamn truth! For crying out-loud! Think! Search!! QUESTION!!!!

"This world; this society, will never move forward to the future that was intended for us, nor will we ever find the truth, if we never open ourselves to all the possibilities." -Romel Salazar (Kon)