Friday, March 28, 2008

How International Bankers Gained Control of the United States

The following 3 1/2-hour long video is a non-fiction, historical account of how the Federal Reserve came into being. If you really want to know what's behind our latest economic crisis and the economic woes that preceded it, watch this video in its entirety. This video should be manditory viewing for all Americans.

Wednesday, March 26, 2008

The Time Has Come . . .

. . . to take our country back. Will you join us?

Thursday, March 20, 2008

Where Your Income Tax Goes

Did you know that your income tax is deposited into a private bank account -- not the U.S. Treasury? It's true. Watch the following video and learn more:

Wednesday, March 19, 2008

Ron Paul on Fox Business News

Congressman Ron Paul was on Fox Business News this week. Here's what he had to say:

What the Price of Gold is Telling Us

by Congressman Ron Paul 15 March 2008

The financial press, and even the network news shows, have begun reporting the price of gold regularly. For twenty years, between 1980 and 2000, the price of gold was rarely mentioned. There was little interest, and the price was either falling or remaining steady.

Since 2001 however, interest in gold has soared along with its price. With the price now over $1000 an ounce, a lot more people are becoming interested in gold as an investment and an economic indicator. Much can be learned by understanding what the rising dollar price of gold means.

The rise in gold prices from $250 per ounce in 2001 to over $1000 today has drawn investors and speculators into the precious metals market. Though many already have made handsome profits, buying gold per se should not be touted as a good investment. After all, gold earns no interest and its quality never changes. It’s static, and does not grow as sound investments should.

It’s more accurate to say that one might invest in a gold or silver mining company, where management, labor costs, and the nature of new discoveries all play a vital role in determining the quality of the investment and the profits made.

Buying gold and holding it is somewhat analogous to converting one’s savings into one hundred dollar bills and hiding them under the mattress – yet not exactly the same. Both gold and dollars are considered money, and holding money does not qualify as an investment. There’s a big difference between the two however, since by holding paper money one loses purchasing power. The purchasing power of commodity money, i.e. gold, however, goes up if the government devalues the circulating fiat currency.

Holding gold is protection or insurance against government’s proclivity to debase its currency. The purchasing power of gold goes up not because it’s a so-called good investment; it goes up in value only because the paper currency goes down in value. In our current situation, that means the dollar.

One of the characteristics of commodity money – one that originated naturally in the marketplace – is that it must serve as a store of value. Gold and silver meet that test – paper does not. Because of this profound difference, the incentive and wisdom of holding emergency funds in the form of gold becomes attractive when the official currency is being devalued. It’s more attractive than trying to save wealth in the form of a fiat currency, even when earning some nominal interest. The lack of earned interest on gold is not a problem once people realize the purchasing power of their currency is declining faster than the interest rates they might earn. The purchasing power of gold can rise even faster than increases in the cost of living.

The point is that most who buy gold do so to protect against a depreciating currency rather than as an investment in the classical sense. Americans understand this less than citizens of other countries; some nations have suffered from severe monetary inflation that literally led to the destruction of their national currency. Though our inflation – i.e., the depreciation of the U.S. dollar – has been insidious, average Americans are unaware of how this occurs. For instance, few Americans know nor seem concerned that the 1913 pre-Federal Reserve dollar is now worth only four cents. Officially, our central bankers and our politicians express no fear that the course on which we are set is fraught with great danger to our economy and our political system. The belief that money created out of thin air can work economic miracles, if only properly “managed,” is pervasive in D.C.

In many ways we shouldn’t be surprised about this trust in such an unsound system. For at least four generations our government-run universities have systematically preached a monetary doctrine justifying the so-called wisdom of paper money over the “foolishness” of sound money. Not only that, paper money has worked surprisingly well in the past 35 years – the years the world has accepted pure paper money as currency. Alan Greenspan bragged that central bankers in these several decades have gained the knowledge necessary to make paper money respond as if it were gold. This removes the problem of obtaining gold to back currency, and hence frees politicians from the rigid discipline a gold standard imposes.

Many central bankers in the last 15 years became so confident they had achieved this milestone that they sold off large hoards of their gold reserves. At other times they tried to prove that paper works better than gold by artificially propping up the dollar by suppressing market gold prices. This recent deception failed just as it did in the 1960s, when our government tried to hold gold artificially low at $35 an ounce. But since they could not truly repeal the economic laws regarding money, just as many central bankers sold, others bought. It’s fascinating that the European central banks sold gold while Asian central banks bought it over the last several years.

Since gold has proven to be the real money of the ages, we see once again a shift in wealth from the West to the East, just as we saw a loss of our industrial base in the same direction. Though Treasury officials deny any U.S. sales or loans of our official gold holdings, no audits are permitted so no one can be certain.

The special nature of the dollar as the reserve currency of the world has allowed this game to last longer than it would have otherwise. But the fact that gold has gone from $252 per ounce to over $1000 means there is concern about the future of the dollar. The higher the price for gold, the greater the concern for the dollar. Instead of dwelling on the dollar price of gold, we should be talking about the depreciation of the dollar. In 1934 a dollar was worth 1/20th of an ounce of gold; $20 bought an ounce of gold. Today a dollar is worth 1/1000th of an ounce of gold, meaning it takes $1000 to buy one ounce of gold.

The number of dollars created by the Federal Reserve, and through the fractional reserve banking system, is crucial in determining how the market assesses the relationship of the dollar and gold. Though there’s a strong correlation, it’s not instantaneous or perfectly predictable. There are many variables to consider, but in the long term the dollar price of gold represents past inflation of the money supply. Equally important, it represents the anticipation of how much new money will be created in the future. This introduces the factor of trust and confidence in our monetary authorities and our politicians. And these days the American people are casting a vote of “no confidence” in this regard, and for good reasons.

The incentive for central bankers to create new money out of thin air is twofold. One is to practice central economic planning through the manipulation of interest rates. The second is to monetize the escalating federal debt politicians create and thrive on.

Today no one in Washington believes for a minute that runaway deficits are going to be curtailed. In March alone, the federal government created an historic $85 billion deficit. The current supplemental bill going through Congress has grown from $92 billion to over $106 billion, and everyone knows it will not draw President Bush’s first veto. Most knowledgeable people therefore assume that inflation of the money supply is not only going to continue, but accelerate. This anticipation, plus the fact that many new dollars have been created over the past 15 years that have not yet been fully discounted, guarantees the further depreciation of the dollar in terms of gold.

There’s no single measurement that reveals what the Fed has done in the recent past or tells us exactly what it’s about to do in the future. Forget about the lip service given to transparency by new Fed Chairman Bernanke. Not only is this administration one of the most secretive across the board in our history, the current Fed firmly supports denying the most important measurement of current monetary policy to Congress, the financial community, and the American public. Because of a lack of interest and poor understanding of monetary policy, Congress has expressed essentially no concern about the significant change in reporting statistics on the money supply.

Beginning in March, though planned before Bernanke arrived at the Fed, the central bank discontinued compiling and reporting the monetary aggregate known as M3. M3 is the best description of how quickly the Fed is creating new money and credit. Common sense tells us that a government central bank creating new money out of thin air depreciates the value of each dollar in circulation. Yet this report is no longer available to us and Congress makes no demands to receive it.

Though M3 is the most helpful statistic to track Fed activity, it by no means tells us everything we need to know about trends in monetary policy. Total bank credit, still available to us, gives us indirect information reflecting the Fed’s inflationary policies. But ultimately the markets will figure out exactly what the Fed is up to, and then individuals, financial institutions, governments, and other central bankers will act accordingly. The fact that our money supply is rising significantly cannot be hidden from the markets.

The response in time will drive the dollar down, while driving interest rates and commodity prices up. Already we see this trend developing, which surely will accelerate in the not too distant future. Part of this reaction will be from those who seek a haven to protect their wealth – not invest – by treating gold and silver as universal and historic money. This means holding fewer dollars that are decreasing in value while holding gold as it increases in value.

A soaring gold price is a vote of “no confidence” in the central bank and the dollar. This certainly was the case in 1979 and 1980. Today, gold prices reflect a growing restlessness with the increasing money supply, our budgetary and trade deficits, our unfunded liabilities, and the inability of Congress and the administration to rein in runaway spending.

Denying us statistical information, manipulating interest rates, and artificially trying to keep gold prices in check won’t help in the long run. If the markets are fooled short term, it only means the adjustments will be much more dramatic later on. And in the meantime, other market imbalances develop.

The Fed tries to keep the consumer spending spree going, not through hard work and savings, but by creating artificial wealth in stock markets bubbles and housing bubbles. When these distortions run their course and are discovered, the corrections will be quite painful.

Likewise, a fiat monetary system encourages speculation and unsound borrowing. As problems develop, scapegoats are sought and frequently found in foreign nations. This prompts many to demand altering exchange rates and protectionist measures. The sentiment for this type of solution is growing each day.

Though everyone decries inflation, trade imbalances, economic downturns, and federal deficits, few attempt a closer study of our monetary system and how these events are interrelated. Even if it were recognized that a gold standard without monetary inflation would be advantageous, few in Washington would accept the political disadvantages of living with the discipline of gold – since it serves as a check on government size and power. This is a sad commentary on the politics of today. The best analogy to our affinity for government spending, borrowing, and inflating is that of a drug addict who knows if he doesn’t quit he’ll die; yet he can’t quit because of the heavy price required to overcome the dependency. The right choice is very difficult, but remaining addicted to drugs guarantees the death of the patient, while our addiction to deficit spending, debt, and inflation guarantees the collapse of our economy.

Special interest groups, who vigorously compete for federal dollars, want to perpetuate the system rather than admit to a dangerous addiction. Those who champion welfare for the poor, entitlements for the middle class, or war contracts for the military industrial corporations, all agree on the so-called benefits bestowed by the Fed’s power to counterfeit fiat money. Bankers, who benefit from our fractional reserve system, likewise never criticize the Fed, especially since it’s the lender of last resort that bails out financial institutions when crises arise. And it’s true, special interests and bankers do benefit from the Fed, and may well get bailed out – just as we saw with the Long-Term Capital Management fund crisis a few years ago. In the past, companies like Lockheed and Chrysler benefited as well. But what the Fed cannot do is guarantee the market will maintain trust in the worthiness of the dollar. Current policy guarantees that the integrity of the dollar will be undermined. Exactly when this will occur, and the extent of the resulting damage to the financial system, cannot be known for sure – but it is coming. There are plenty of indications already on the horizon.

Foreign policy plays a significant role in the economy and the value of the dollar. A foreign policy of militarism and empire building cannot be supported through direct taxation. The American people would never tolerate the taxes required to pay immediately for overseas wars, under the discipline of a gold standard. Borrowing and creating new money is much more politically palatable. It hides and delays the real costs of war, and the people are lulled into complacency – especially since the wars we fight are couched in terms of patriotism, spreading the ideas of freedom, and stamping out terrorism. Unnecessary wars and fiat currencies go hand-in-hand, while a gold standard encourages a sensible foreign policy.

The cost of war is enormously detrimental; it significantly contributes to the economic instability of the nation by boosting spending, deficits, and inflation. Funds used for war are funds that could have remained in the productive economy to raise the standard of living of Americans now unemployed, underemployed, or barely living on the margin.

Yet even these costs may be preferable to paying for war with huge tax increases. This is because although fiat dollars are theoretically worthless, value is imbued by the trust placed in them by the world’s financial community. Subjective trust in a currency can override objective knowledge about government policies, but only for a limited time.

Economic strength and military power contribute to the trust in a currency; in today’s world, trust in the U.S. dollar is not earned and therefore fragile. The history of the dollar, being as good as gold up until 1971, is helpful in maintaining an artificially higher value for the dollar than deserved.

Foreign policy contributes to the crisis when the spending to maintain our worldwide military commitments becomes prohibitive, and inflationary pressures accelerate. But the real crisis hits when the world realizes the king has no clothes, in that the dollar has no backing, and we face a military setback even greater than we already are experiencing in Iraq. Our token friends may quickly transform into vocal enemies once the attack on the dollar begins.

False trust placed in the dollar once was helpful to us, but panic and rejection of the dollar will develop into a real financial crisis. Then we will have no other option but to tighten our belts, go back to work, stop borrowing, start saving, and rebuild our industrial base, while adjusting to a lower standard of living for most Americans.

Counterfeiting the nation’s money is a serious offense. The founders were especially adamant about avoiding the chaos, inflation, and destruction associated with the Continental dollar. That’s why the Constitution is clear that only gold and silver should be legal tender in the United States. In 1792 the Coinage Act authorized the death penalty for any private citizen who counterfeited the currency. Too bad they weren’t explicit that counterfeiting by government officials is just as detrimental to the economy and the value of the dollar.

In wartime, many nations actually operated counterfeiting programs to undermine our dollar, but never to a disastrous level. The enemy knew how harmful excessive creation of new money could be to the dollar and our economy. But it seems we never learned the dangers of creating new money out of thin air. We don’t need an Arab nation or the Chinese to undermine our system with a counterfeiting operation. We do it ourselves, with all the disadvantages that would occur if others did it to us. Today we hear threats from some Arab, Muslim, and far Eastern countries about undermining the dollar system- not by dishonest counterfeiting, but by initiating an alternative monetary system based on gold. Wouldn’t that be ironic? Such an event theoretically could do great harm to us. This day may well come, not so much as a direct political attack on the dollar system but out of necessity to restore confidence in money once again.

Historically, paper money never has lasted for long periods of time, while gold has survived thousands of years of attacks by political interests and big government. In time, the world once again will restore trust in the monetary system by making some currency as good as gold.

Gold, or any acceptable market commodity money, is required to preserve liberty. Monopoly control by government of a system that creates fiat money out of thin air guarantees the loss of liberty. No matter how well-intended our militarism is portrayed, or how happily the promises of wonderful programs for the poor are promoted, inflating the money supply to pay these bills makes government bigger. Empires always fail, and expenses always exceed projections. Harmful unintended consequences are the rule, not the exception. Welfare for the poor is inefficient and wasteful. The beneficiaries are rarely the poor themselves, but instead the politicians, bureaucrats, or the wealthy. The same is true of all foreign aid – it’s nothing more than a program that steals from the poor in a rich country and gives to the rich leaders of a poor country. Whether it’s war or welfare payments, it always means higher taxes, inflation, and debt. Whether it’s the extraction of wealth from the productive economy, the distortion of the market by interest rate manipulation, or spending for war and welfare, it can’t happen without infringing upon personal liberty.

At home the war on poverty, terrorism, drugs, or foreign rulers provides an opportunity for authoritarians to rise to power, individuals who think nothing of violating the people’s rights to privacy and freedom of speech. They believe their role is to protect the secrecy of government, rather than protect the privacy of citizens. Unfortunately, that is the atmosphere under which we live today, with essentially no respect for the Bill of Rights.

Though great economic harm comes from a government monopoly fiat monetary system, the loss of liberty associated with it is equally troubling. Just as empires are self-limiting in terms of money and manpower, so too is a monetary system based on illusion and fraud. When the end comes we will be given an opportunity to choose once again between honest money and liberty on one hand; chaos, poverty, and authoritarianism on the other.

The economic harm done by a fiat monetary system is pervasive, dangerous, and unfair. Though runaway inflation is injurious to almost everyone, it is more insidious for certain groups. Once inflation is recognized as a tax, it becomes clear the tax is regressive: penalizing the poor and middle class more than the rich and politically privileged. Price inflation, a consequence of inflating the money supply by the central bank, hits poor and marginal workers first and foremost. It especially penalizes savers, retirees, those on fixed incomes, and anyone who trusts government promises. Small businesses and individual enterprises suffer more than the financial elite, who borrow large sums before the money loses value. Those who are on the receiving end of government contracts – especially in the military industrial complex during wartime – receive undeserved benefits.

It’s a mistake to blame high gasoline and oil prices on price gouging. If we impose new taxes or fix prices, while ignoring monetary inflation, corporate subsidies, and excessive regulations, shortages will result. The market is the only way to determine the best price for any commodity. The law of supply and demand cannot be repealed. The real problems arise when government planners give subsidies to energy companies and favor one form of energy over another.

Energy prices are rising for many reasons: Inflation; increased demand from China and India; decreased supply resulting from our invasion of Iraq; anticipated disruption of supply as we push regime change in Iran; regulatory restrictions on gasoline production; government interference in the free market development of alternative fuels; and subsidies to big oil such as free leases and grants for research and development.

Interestingly, the cost of oil and gas is actually much higher than we pay at the retail level. Much of the DOD budget is spent protecting “our” oil supplies, and if such spending is factored in, gasoline probably costs us more than $5 a gallon. The sad irony is that this military effort to secure cheap oil supplies inevitably backfires, and actually curtails supplies and boosts prices at the pump. The waste and fraud in issuing contracts to large corporations for work in Iraq only add to price increases.

When problems arise under conditions that exist today, it’s a serious error to blame the little bit of the free market that still functions. Last summer the market worked efficiently after Katrina – gas hit $3 a gallon, but soon supplies increased, usage went down, and the price returned to $2. In the 1980s, market forces took oil from $40 per barrel to $10 per barrel, and no one cried for the oil companies that went bankrupt. Today’s increases are for the reasons mentioned above. It’s natural for labor to seek its highest wage, and businesses to strive for the greatest profit. That’s the way the market works. When the free market is allowed to work, it’s the consumer who ultimately determines price and quality, with labor and business accommodating consumer choices. Once this process is distorted by government, prices rise excessively, labor costs and profits are negatively affected, and problems emerge. Instead of fixing the problem, politicians and demagogues respond by demanding windfall profits taxes and price controls, while never questioning how previous government interference caused the whole mess in the first place. Never let it be said that higher oil prices and profits cause inflation; inflation of the money supply causes higher prices!

Since keeping interest rates below market levels is synonymous with new money creation by the Fed, the resulting business cycle, higher cost of living, and job losses all can be laid at the doorstep of the Fed. This burden hits the poor the most, making Fed taxation by inflation the worst of all regressive taxes. Statistics about revenues generated by the income tax are grossly misleading; in reality much harm is done by our welfare/warfare system supposedly designed to help the poor and tax the rich. Only sound money can rectify the blatant injustice of this destructive system.

The Founders understood this great danger, and voted overwhelmingly to reject “emitting bills of credit,” the term they used for paper or fiat money. It’s too bad the knowledge and advice of our founders, and their mandate in the Constitution, are ignored today at our great peril. The current surge in gold prices – which reflects our dollar’s devaluation – is warning us to pay closer attention to our fiscal, monetary, entitlement, and foreign policy.

Meaning of the Gold Price – Summation

A recent headline in the financial press announced that gold prices surged over concern that confrontation with Iran will further push oil prices higher. This may well reflect the current situation, but higher gold prices mainly reflect monetary expansion by the Federal Reserve. Dwelling on current events and their effect on gold prices reflects concern for symptoms rather than an understanding of the actual cause of these price increases. Without an enormous increase in the money supply over the past 35 years and a worldwide paper monetary system, this increase in the price of gold would not have occurred.

Certainly geo-political events in the Middle East under a gold standard would not alter its price, though they could affect the supply of oil and cause oil prices to rise. Only under conditions created by excessive paper money would one expect all or most prices to rise. This is a mere reflection of the devaluation of the dollar.

Particular things to remember:

  • If one endorses small government and maximum liberty, one must support commodity money.

  • One of the strongest restraints against unnecessary war is a gold standard.

  • Deficit financing by government is severely restricted by sound money.

  • The harmful effects of the business cycle are virtually eliminated with an honest gold standard.

  • Saving and thrift are encouraged by a gold standard; and discouraged by paper money.

  • Price inflation, with generally rising price levels, is characteristic of paper money. Reports that the consumer price index and the producer price index are rising are distractions: the real cause of inflation is the Fed’s creation of new money.

  • Interest rate manipulation by central bank helps the rich, the banks, the government, and the politicians.

  • Paper money permits the regressive inflation tax to be passed off on the poor and the middle class.

  • Speculative financial bubbles are characteristic of paper money – not gold.

  • Paper money encourages economic and political chaos, which subsequently causes a search for scapegoats rather than blaming the central bank.

  • Dangerous protectionist measures frequently are implemented to compensate for the dislocations caused by fiat money.

  • Paper money, inflation, and the conditions they create contribute to the problems of illegal immigration.

  • The value of gold is remarkably stable.

  • The dollar price of gold reflects dollar depreciation.

  • Holding gold helps preserve and store wealth, but technically gold is not a true investment.

  • Since 2001 the dollar has been devalued by 60%.

  • In 1934 FDR devalued the dollar by 41%.

  • In 1971 Nixon devalued the dollar by 7.9%.

  • In 1973 Nixon devalued the dollar by 10%.

These were momentous monetary events, and every knowledgeable person worldwide paid close attention. Major changes were endured in 1979 and 1980 to save the dollar from disintegration. This involved a severe recession, interest rates over 21%, and general price inflation of 15%.

Today we face a 60% devaluation and counting, yet no one seems to care. It’s of greater significance than the three events mentioned above. And yet the one measurement that best reflects the degree of inflation, the Fed and our government deny us. Since March, M3 reporting has been discontinued. For starters, I’d like to see Congress demand that this report be resumed. I fully believe the American people and Congress are entitled to this information. Will we one day complain about false intelligence, as we have with the Iraq war? Will we complain about not having enough information to address monetary policy after it’s too late?

If ever there was a time to get a handle on what sound money is and what it means, that time is today.

Inflation, as exposed by high gold prices, transfers wealth from the middle class to the rich, as real wages decline while the salaries of CEOs, movie stars, and athletes skyrocket – along with the profits of the military industrial complex, the oil industry, and other special interests.

A sharply rising gold price is a vote of “no confidence” in Congress’ ability to control the budget, the Fed’s ability to control the money supply, and the administration’s ability to bring stability to the Middle East.

Ultimately, the gold price is a measurement of trust in the currency and the politicians who run the country. It’s been that way for a long time, and is not about to change.

If we care about the financial system, the tax system, and the monumental debt we’re accumulating, we must start talking about the benefits and discipline that come only with a commodity standard of money – money the government and central banks absolutely cannot create out of thin air.

Economic law dictates reform at some point. But should we wait until the dollar is 1/1,000 of an ounce of gold or 1/2,000 of an ounce of gold? The longer we wait, the more people suffer and the more difficult reforms become. Runaway inflation inevitably leads to political chaos, something numerous countries have suffered throughout the 20th century. The worst example of course was the German inflation of the 1920s that led to the rise of Hitler. Even the communist takeover of China was associated with runaway inflation brought on by Chinese Nationalists. The time for action is now, and it is up to the American people and the U.S. Congress to demand it.

Monday, March 17, 2008

Financial House of Cards

The following video was posted on YouTube back in November 2007. In it, Congressman Ron Paul predicted the very things we are seeing happen right now with the economy. He predicted it. Many Americans chose to ignore his warnings and voted for other candidates in the Presidential primary elections instead. No matter what their reasons for doing so, none of them will matter if this country goes under financially. None of them. It's not too late to do something about it, but time is running out. You can still help those of us who see the writing on the wall and who are doing everything we can to save this great country of ours. Watch the following video and then go to www.ronpaul2008.com/volunteer to find out what you can do to help.

Saturday, March 8, 2008

Will We Destroy Ourselves?

Abraham Lincoln once said:

"America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves"

Will we destroy ourselves or will we wake up before it's too late?

Who Would You Choose to Lead Us Through this Recession?

Presidential Candidate Congressman Ron Paul warned us. He's also told us what we needed to do to prevent a recession. Although the financial analysts agree, most Americans chose not to listen and instead decided to back Presidential candidates who are clueless when it comes to handling the U.S. economy.

Just yesterday Congressman Paul had this to say about the economy:

"An issue that I've been talking about for thirty years is now a key issue of the evening news. That is the dollar crisis and its economic ramifications. The money issue gives our movement credibility and a chance to offer sound solutions. At the rate our economy is slipping, we will likely see the disintegration of the American empire, and that will be no small event. Foreign policy will continue to be of crucial importance to all Americans as its burden on the economy will get worse."

If your state has not yet had it's primary, I urge you to vote for Congressman Ron Paul. If you are an unbound Republican delegate for your state, I urge you to vote for Congressman Paul at the National Convention. It's not too late. We can save this great country of ours, but we have to pry ourselves away from the rhetoric being spewed by the talking heads day in and day out and vote with our heads not our emotions. Please vote for the only candidate who has demonstrated time and again that he understands the state of our economy and what needs to be done to fix it -- Congressman Ron Paul.

Sunday, March 2, 2008

It's Just Plain Common Sense

If you just take the time to listen to Congressman Ron Paul, you will see that what he has to say is just plain common sense:

Thursday, February 28, 2008

Ron Paul on Fox Business Channel

Congressman Ron Paul was on the Fox Business channel today:

Monetary Policy and the State of the Economy

Congressman Ron Paul released the following statement Tuesday on the “Monetary Policy and the State of the Economy” at a Financial Services Committee Hearing:

"Mr. Chairman,

Price controls are almost universally reviled by economists. The negative economic consequences of price floors or price ceilings are numerous and well-documented. Our current series of hearings have been called to discuss the most important, but least understood, price manipulation in the world today: the manipulation of the interest rate.

By setting the federal funds rate, the rate at which banks in the Federal Reserve System loan funds to each other, the Federal Reserve inhibits the actions of market participants coming together to determine a market interest rate. The Federal Reserve and the federal government do not deign to interfere in setting the price of houses, the interest rate on mortgages, or the prices of wood and steel. The Fed's actions in setting the federal funds rate however, because it reflects the price of money to a borrower and thus affects demand for money, affects prices throughout the economy in a manner less pervasive but just as damaging as direct price controls.

The example of the Soviet Union should have taught us that no one person, no group of people, no matter how scientifically trained, can arbitrarily set prices and not expect economic havoc. Only the spontaneous interaction of market participants can lead to the development of a functioning price system that allows the needs and wants of all participants to be met. The sense I get from reading much of the punditry is that the federal funds rate is set often by the whims of the Federal Reserve governors. Even mechanistic explanations such as the Taylor Rule rely on inputs that are often left up to the discretion of the Fed policymakers: what is the potential GDP, do we use CPI or PCE, overall CPI versus CPI less energy and food, etc.

The setting of the interest rate strikes me as quite similar to the way FDR used to set gold prices in the 1930's, at his whim, resulting in economic havoc and uncertainty. When market actors have to devote much of their time to discerning the mindset of government price-setters, to parsing FOMC statements and minutes, they are necessarily diverted from productive economic activity. They cease to become purely economic actors and are forced to become political forecasters. This is not a problem isolated to this particular case, as businesses are forced to reckon with tax increases, expiring tax credits, import tariffs, subsidies to competitors, etc. However, because the interest rate determines the cost of borrowing and therefore determines whether or not marginal long-term business investments are undertaken, this politicized interest rate manipulation has far more impact than other government policies.

This setting of the interest rate introduces the business cycle into the economy. Until we understand the results these Federal Reserve actions have, we will be doomed to repeat these periods of boom and bust. I urge my colleagues to study this matter, and to resist the urge for greater Federal Reserve intervention in the market."

Once Again, Ron Paul is Right

Once again, Congressman Ron Paul is right about the state of the economy.

Tuesday, February 26, 2008

On Immigration

The Center for Immigration Studies has recently reported that our immigrant population is now 37 million, up from 27 million in 1997. 1 in 3 of these immigrants are here illegally. This problem has exploded in the last 10 years despite the actions taken since September 11th.

Presidential candidate Congressman Ron Paul has a plan to secure our borders now:

"The talk must stop. We must secure our borders now. A nation without secure borders is no nation at all. It makes no sense to fight terrorists abroad when our own front door is left unlocked. This is my six point plan:

  • Physically secure our borders and coastlines. We must do whatever it takes to control entry into our country before we undertake complicated immigration reform proposals.
  • Enforce visa rules. Immigration officials must track visa holders and deport anyone who overstays their visa or otherwise violates U.S. law. This is especially important when we recall that a number of 9/11 terrorists had expired visas.
  • No amnesty. Estimates suggest that 10 to 20 million people are in our country illegally. That’s a lot of people to reward for breaking our laws.
  • No welfare for illegal aliens. Americans have welcomed immigrants who seek opportunity, work hard, and play by the rules. But taxpayers should not pay for illegal immigrants who use hospitals, clinics, schools, roads, and social services.
  • End birthright citizenship. As long as illegal immigrants know their children born here will be citizens, the incentive to enter the U.S. illegally will remain strong.
  • Pass true immigration reform. The current system is incoherent and unfair. But current reform proposals would allow up to 60 million more immigrants into our country, according to the Heritage Foundation. This is insanity. Legal immigrants from all countries should face the same rules and waiting periods."

Sunday, February 24, 2008

A President to Be Proud Of

There really is only one choice:

Support the Troops - Vote for Ron Paul

ARLINGTON, VIRGINIA – According to opensecrets.org, the top three contributors to Republican presidential candidate Ron Paul’s campaign are from the U.S. Army, U.S. Navy and U.S. Air Force respectively.


“No matter how you measure it, Dr. Paul has the support of our nation’s brave servicemen and women,” said Kent Snyder, Ron Paul 2008 campaign chairman. “His message of a strong national defense, and only going to war with a declaration of war – as mandated by the Constitution – resonates with those who risk their lives to defend that Constitution.”


No branch of the military appears among the “top contributors” to GOP frontrunner John McCain’s campaign.


Additionally, Ron Paul’s military contributions are greater than those of all other current candidates – John McCain, Mike Huckabee, Hillary Clinton and Barack Obama –combined.


The “Top Contributors” figures can be found at http://www.opensecrets.org/.


For more information on military contributions to Dr. Paul’s campaign, read this press release.

Sunday, February 17, 2008

How We Can Salvage the Economy

Congressman Ron Paul is the only Presidential candidate who has an actual sound plan for breathing life into our ailing economy. In this video with GoldSilver.com's Mike Maloney, Congressman Paul explains, in great detail, what his plan is:

Saturday, February 16, 2008

It's Time to Wake Up

I got into a discussion yesterday with a co-worker who feels very passionately about various social issues on the table during this Presidential election season. While I admire her passion, I was reminded that there are many people in this country who are unable to see the forest for the trees when it comes to the state of this country. Many do not realize that, unless some very fundamental issues are handled, the very things they feel so passionate about will soon become the least of their worries. Unless things change, we will all have much greater assaults on our personal freedoms to worry about. Some are already taking place.

I doubt that anyone reading this would eagerly volunteer to live in a country like Communist Russia in its "hey day" with its gulags and KGB looking over their shoulder. I also seriously doubt anyone would want to go back to the land of the Third Reich during its most "prosperous" years while it invaded countries throughout Europe and exterminated anyone they deemed to be inferior or in opposition to its goals or ideals. However, today, our country is on the fast track to just such a society. A society where personal freedoms are a thing of the past and where the state governs every move you make, every decision you make, and every thought you think.

How does a country get to this point and how do we reverse this trend? Well, here's how:

Thursday, February 14, 2008

What if the Government Managed Your Finances?

Scary thought, huh? Given the fact that this country is $9 trillion dollars in debt and counting and relies on the slave labor of its citizens and loans from foreign countries to survive, I don't think they are a wise choice.

All but one of the current presidential candidates promise to continue with this current trend. The only one who totally understands what is needed to get us out of this mess and who promises to stop this fasttrack to bankruptcy is Congressman Ron Paul:

"Working Americans like lower taxes. So do I. Lower taxes benefit all of us, creating jobs and allowing us to make more decisions for ourselves about our lives.

Whether a tax cut reduces a single mother’s payroll taxes by $40 a month or allows a business owner to save thousands in capital gains taxes and hire more employees, that tax cut is a good thing. Lower taxes allow more spending, saving, and investing which helps the economy — that means all of us.

Real conservatives have always supported low taxes and low spending.

But today, too many politicians and lobbyists are spending America into ruin. We are nine trillion dollars in debt as a nation. Our mounting government debt endangers the financial future of our children and grandchildren. If we don’t cut spending now, higher taxes and economic disaster will be in their future — and yours.

In addition, the Federal Reserve, our central bank, fosters runaway debt by increasing the money supply — making each dollar in your pocket worth less. The Fed is a private bank run by unelected officials who are not required to be open or accountable to “we the people.”

Worse, our economy and our very independence as a nation is increasingly in the hands of foreign governments such as China and Saudi Arabia, because their central banks also finance our runaway spending.

We cannot continue to allow private banks, wasteful agencies, lobbyists, corporations on welfare, and governments collecting foreign aid to dictate the size of our ballooning budget. We need a new method to prioritize our spending. It’s called the Constitution of the United States."

Monday, February 11, 2008

McCain Says "I disagree with what most of the American people want."

The focus of this blog is to educate others on the views of Presidential candidate Congressman Ron Paul. The following video, however, needs to be spread far and wide. In this video, you not only get a glimpse of where this country would be headed if Senator John McCain were to be elected as President, but it also shows him state that he disagrees with what most of the American people want.

Sunday, February 10, 2008

Ron Paul is Going Strong

Some media sources are reporting that the Ron Paul campaign is loosing steam. This is very far from the truth. In fact, it's now really starting to pick up momentum. The following post from the Ron Paul campaign headquarters blog explains:

This Candidate Doesn’t Quit
February 9th, 2008 by Dan McCarthy

A few news sources are misreporting Ron Paul’s e-mail from last night. The presidential campaign is not ending, not being suspended, and not even drawing down. It’s slimming down and ramping up — with over twenty states having already voted, we’ve shed staff, and we’re concentrating financial and organization resources on the remaining states. We’re going to the convention, and we’re fighting for every vote and every National Delegate along the way.

Republicans do not want John McCain to be their nominee. He has only been able to become the front-runner because the field was so divided and because he’s a media darling. We can see just how unpopular McCain is in the heartland by his performance in the Kansas caucuses today. Kansans resoundingly rejected the Arizona senator, and McCain’s big wins so far have mostly been in blue states — states he won’t win in November if, heaven forbid, he’s the Republican nominee.

Republicans want and need an alternative. Some people think Mike Huckabee provides an alternative to McCain. But Huckabee, who now tries to sound like Ron Paul when he talks about abolishing the IRS, raised taxes in Arkansas and vastly expanded spending in that state when he was its governor. Huckabee is no alternative at all. Ron Paul, on the other hand, has never voted for a tax increase, never voted for an unbalanced budget or for an unconstitutional war or government program.

At stake here is not just the Republican nomination — which McCain still has not locked up — but the future of the Republican Party and, much more importantly, the future of our liberties. We have to organize in every single state, including the ones that have already voted in the primaries and caucuses, to continue the fight to take back the Republican Party and to ensure that Ron Paul’s principles, the principles of Washington and Jefferson, prevail. For the sake of that cause, Ron Paul’s campaign continues, all the way to the convention.

Thursday, February 7, 2008

Conservative Political Action Conference (CPAC)

Congressman Paul spoke at CPAC today in Washington, DC. Here is his speech in its entirety:

Part I



Part II



Part III



Part IV

Monday, February 4, 2008

Ron Paul Beats McCain in Maine Caucus

Presidential candidate, Ron Paul, came in a strong second place this weekend in the Maine caucus beating Senator John McCain who came in a distant third.

You can read more here:

Ron Paul Beats McCain in Maine Caucus, Primed to Win Over 1/3 of State Delegates

Friday, February 1, 2008

Happy 51st Anniversary!

The following post appeared here on Who is Ron Paul? back on Dec. 20th, 2006. Here it is again in honor of Congressman and Mrs. Paul's 51st wedding anniversary:

Mrs. Carol Paul can often be seen out on the campaign trail supporting her husband, Congressman Ron Paul. In this touching story about her husband, she provides insightful information about the man who would be President:

"I've been contacted a few times about writing a personal story of our family, because we have been called “The American Dream” family by people who know us well. In doing this, it would have to start with the man RON PAUL, who saw the American Dream and decided that it could be his - and now he wants it to be yours if you so choose.

Ron's grandfather came from Germany at the age of 14. After being here six months, his father died and he had to make his way in a new country with a new language. He became a truck farmer in a small town in Pennsylvania. He eventually married, and had four sons and one daughter. The second son was Howard Paul, Ron's father.

Howard Paul continued to run the dairy that his father started from the basement garage of their home. They had horse-drawn delivery wagons. Howard was able, with an 8th grade education, to build a dairy with 20 refrigerated trucks and a modern dairy building. Ron's mother kept the books and raised five sons, who were all born within seven years during the 1930's.

Ron was the third son of Howard and Margaret Paul, and was brought up with the work ethic that you worked six days a week and went to church on the seventh. Ron's first job at age 5 was to watch his uncle wash the bottles and put them on a conveyer belt. He got a penny for every dirty bottle that he found. He was serious about his job and was very proud that he could help.
Ron delivered newspapers in grade school early in the morning. You had to put the newspapers inside the screen doors and not just throw them in the yard. And speaking of yards, he mowed a lot of lawns, and he didn't have a self-propelled lawnmower. He paid for his first year of college with newspaper and lawn-mowing money.

During High School, Ron worked in a drug store - his brothers said he worked there so he could eat ice cream when he wanted it - but he learned a lot about business and pharmacy that helped in years to come. He also had a part-time job painting the school in the summer and delivering furniture for a local store. In college, he delivered laundry, and he even delivered mail during the Christmas holidays.

I actually came into the picture about 1952 when Ron was my escort to my 16th birthday party. Don't tell anyone - but I asked him... actually my birthday is February 29th and it was a Sadie Hawkins-type party where the girls asked the boys... and I asked him.

Ron was a track star in high school, winning state as a junior in the 220-yard dash and 2nd in the 440. He ran the 100 in 9.8, and that was pretty fast for the early 1950s. He was also on the wrestling team. He was president of the student council and an honor student while working and participating in sports.

A serious knee injury took him out of major track (he beat one young man that went to the Olympics), but added swimming for therapy and he soon became a member of the college swim team. He was offered a full college scholarship to run track but did not accept it, feeling he might not be able to regain his speed. To this day he exercises with bicycle riding, walking, and swimming, and feels lucky that he can do these sports.

We went away to college (different colleges in different states), but always kept in touch. On February 1, 1957, we married in an all-white wedding with the bridesmaids carrying armloads of red roses. The flower girl wore a white dress and sprinkled rose petals down the aisle. A fraternity brother of Ron's sang “The Wedding Prayer” and the “Lord's Prayer.” Both are very special to us, even today.

We spent his last semester in college married, and living on the third floor of an old home in Gettysburg, Pennsylvania. I worked as secretary to the faculty and attended some evening classes with Ron. For one year Ron was manager of the college coffee shop called “The Bullet Hole.” He worked as steward and house manager for his fraternity, and had a small scholastic scholarship to help finance his way through college.

After college, we headed to Durham, North Carolina, where Ron attended Duke University School of Medicine. I worked as a medical secretary, and our first two children were born at Duke. We had a tiny little blue frame house that my grandmother called the “Doll House.” We thought it was wonderful.

We were able to buy a registered collie for our big backyard, and she helped raise our first two children. Actually, she got us home one Thanksgiving because she had a litter of puppies - and we were able to sell one for $35, which gave us enough money for gas to drive home so the family could see our two beautiful children.

After Medical School, we lived in Detroit, Michigan, where Ron did an internship and one year of an Internal Medicine Residency. I ran a dancing school in the basement of our home and taught ballet and tap dancing and baton twirling. Just to tell you what kind of budget we were on, the dancing school paid for the newspaper and for extra expenses we had when a month had five weeks!

When the Cuban Crisis came, Ron answered his country's call and became a flight surgeon in the United States Air Force. We received orders to move to San Antonio, Texas. On our way to Texas, we stopped in Pennsylvania long enough to have our third child delivered. Then we gathered up our kids and dogs and took off for Texas.

Arriving with three children from ages 4 to 3 weeks old, we loved Texas immediately. Finding out we didn't have to bother with snowsuits, mittens, and boots was an extra gift.
Even when Ron was in the military, we kept working. I learned to cake decorate, which I have put to good use over the past years. And Ron learned to fly a plane, and he worked extra emergency-room duty. They were fun-filled years.

We spent Ron's tour of duty in San Antonio. When his tour was up, he completed his OB/GYN medical training, but he did stay in the Air National Guard for several years. He always believed that America should be ready to defend her borders.

Then in 1968, on July 3rd we arrived in Brazoria County, Texas, and that has been our home since that day. Ron has delivered over 4,000 babies, and we have been married for over 50 years. We've raised a family of five children, and they have given us eighteen beautiful grandchildren, and one great-grandchild. We have friends all over the State of Texas as well as friends throughout the United States who believe in limited government. That in itself is a testimony to a great and humble man.

So the American Dream came true for a boy who delivered newspapers, a teen-ager who mowed lawns, delivered milk, delivered furniture, delivered laundry, and delivered mail, and for a man who then delivered babies. Now that dream continues with a man who is trying to deliver the message that freedom works and that patriotism must not grow weak in the hearts of all Americans. And liberty reigns to help us hang on to our Republic for which the Founders gave their last measure of devotion."

Wednesday, January 30, 2008

The 100 Year War

In tonight's Republican Presidential debate at the Ronald Reagan Library, Congressman Ron Paul addressed John McCain's statement that it might be necessary to keep U.S. troops in Iraq for 100 years:


Monday, January 28, 2008

What is "Inflation Tax"?

Day after day, every dollar you have is loosing its value. Without even realizing it, you are paying what's known as an "inflation tax". In the following article, Congressman Ron Paul explains this concept further:

"Today, the federal government burdens us with one of the most dangerous taxes it can impose — the inflation tax. When the federal government finds that it cannot afford its out-of-control spending, and is unwilling to directly tax the public, it resorts simply to creating the money out of thin air.

Inflating the money supply is the easiest form of financing the government. The Federal Reserve, an unelected and unaccountable private organization, pumps more dollars into the economy whenever it chooses. Because the public is forced to accept these bills, the Fed essentially gets away with legally counterfeiting. We cannot possibly expect the government to control spending when it has a blank checkbook.

This greatly benefits the politicians and special interests — they are able to finance the massive welfare-warfare state. But how does this inflation affect you?

Basic economics tells us that the more there is of a good, the less valuable it becomes. This is also true of money. The dollar is worth four cents of what it was when the Federal Reserve was created in 1913.

Day by day, every dollar you have is being devalued. You pay an inflation tax without even realizing it because you are forced by a falling dollar to pay more for goods and services.

The disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation, are some of the greatest threats facing our nation today. It is this one-two punch — Congress spending more than it can tax or borrow, and the Treasury printing money to make up the difference — that threatens to impoverish us by further destroying the value of our dollars.

By legalizing competing currencies, we can end the Federal Reserve’s stranglehold on our money supply and begin to restore value to the dollar. But Congress will continue to spend extravagantly until we the people make our views known at the ballot box."

Thursday, January 24, 2008

Ron Paul Unveils a REAL Economic Stimulus Plan

Congressman Ron Paul unveiled a comprehensive economic revitilization package today that takes a four-pronged approach to breathing life in our ailing economy. The details can be found here http://www.RonPaul2008.com/Prosperity, but the highlights of the plan are as follows:

1. Tax Reform: Reduce the tax burden and eliminate taxes that punish investment and savings, including job-killing corporate taxes.

2. Spending Reform: Eliminate wasteful spending. Reduce overseas commitments. Freeze all non-defense, non-entitlement spending at current levels.

3. Monetary Policy Reform: Expand openness with the Federal Reserve and require the Fed to televise its meetings. Return value to our money.

4. Regulatory Reform: Repeal Sarbanes/Oxley regulations that push companies to seek capital outside of US markets. Stop restricting community banks from fostering local economic growth.

Tuesday, January 22, 2008

Ron Paul on the Economy

These are rocky times for the U.S. economy. With the markets dropping and the U.S. dollar at an all-time low, this country is headed for recession the likes of which we haven't seen for some time. Today, the Federal Reserve lowered the interest rate another 3/4ths of a point. This means the value of the dollar is going to drop even further because the only way for them to lower the interest rate is to print more money. Printing more money lowers its value.

Ron Paul is the ONLY Presidential candidate that has a plan to turn our economy around and the financial experts agree. Here's how:


Monday, January 21, 2008

Hey, Mind Your Own Business!

We all have a friend - or two - who seem to always stick their nose into our business. Sure, they're just trying to help, but sometimes it crosses the line into meddling. Friendships with nations are no different. Congressman Ron Paul has often talked about friendship with other nations, entangling alliances with none. Some have perceived this to be a form of isolationism, but it is not even close.

Here's more data from Congressman Paul on this subject which includes an example of what he means:

"Last week I highlighted the irony of sending nearly $1 billion overseas in military earmarks as we close down bases here at home to save money. Our government's flawed foreign policy troubles me this week especially.

Benazir Bhutto's assasination was a great tragedy. Pakistan is now more than ever teetering on chaos. And all the money we have sent Musharraf has inadvertently drawn a target on our backs.

Musharraf, unfortunately, appears to have learned how to work our system, much in the way a career welfare recipient has learned to do the same. The perpetual welfare recipient promises to look for a job. Musharraf has promised to look for Bin Laden. Both are terrible investments of American taxpayer dollars, however with Musharraf, its been an astonishing $10 billion loss over the last few years. But it is even worse than that. With his recent actions declaring martial law, and dismissing the justices of the supreme court, he is to the rest of the world, and to Pakistanis, a wildly unpopular, power hungry, brutal military dictator. The perception by most is that we are propping him up while simultaneously urging Ms. Bhutto back into Pakistan as a lamb to the slaughter.

The trouble is the average Pakistani will have little doubt regarding Bhutto's death, regardless if it was orchestrated by Musharraf or not. At this point it is almost irrelevant who was responsible or how she died. The perception is what will fuel the anger. My great fear is their anger towards Musharraf's military regime will be targetted towards his enablers - the United States.

This is the problem with our government involvement in the internal affairs of other nations. Our friend one day is our enemy the next. And all our friends' enemies become our enemies. How many times have we armed BOTH sides of a conflict because of this? There is little for us to gain from this policy, and simultaneously a lot of trouble we get ourselves into. It is not a rational or intelligent way to interact with the world.

The administration has behaved as if there are only two choices in foreign policy - sending money or sending bombs. Our founding fathers knew a better way - to talk with our neighbors, do honest business with them, cultivate friendship, allow travel and open communication. We should neither initiate violence, nor take sides in conflicts that are none of our business. The American taxpayers are working hard enough to support their families here at home. If an American wants to send money overseas for a conflict or cause, let them, but do not slap Americans in the face by forcefully sending their children's college money abroad to subsidize despotic foreign governments. Our children should be going off to college, not going off to more senseless foreign wars.

I was deeply saddened to hear of Benazir Bhutto's death. My hope is that we can change our foreign policy moving forward and truly make strides this year toward peace on earth and goodwill toward men."

Saturday, January 19, 2008

What This Election is Really About

The founding fathers of this country envisioned a strong, prosperous nation that was free and independent. They invisioned a country that befriended other countries, but had entangling alliances with none. Having fled from an oppressive monarchy that controlled everything from what religion its people could belong to to trying to control other countries by developing an ever-expanding empire, the founding fathers of this great nation sought to prevent such a thing from ever happening again. Unfortunately, as it often does, history is repeating itself. We've come full circle. We have become that which we sought to escape.

The very things that our ancestors fled from by coming to this new land -- this land of opportunity -- are rapidly becoming our way of life. More and more of our freedoms are being taken away under the guise of national security. More and more nations are feeling our rath as we continually try to expand our empire and force our way of life on others. It's time we took this great nation of ours back. It's time we took it back to basics and to the principles upon which it was founded. These principles, no matter what the vested interests would have you believe, are just as relavent today as they were back in 1776. What has worked before will work now.

There is one candidate who can lead us out of the mess we've gotten ourselves into. That candidate is Congressman Ron Paul.

The following video has, for some reason, been banned on YouTube several times. Perhaps the truth is too much for some to handle. I'm posting it here now for you to see as I feel it captures the importance of why we need a President like Congressman Paul.


Monday, January 14, 2008

Let Freedom Ring

What do you worry about the most? Is it having enough money to put food on the table and a roof over your head? Is it the son or daughter you have overseas that's getting shot at on a regular basis -- or perhaps you're the one getting shot at? Or are you simply annoyed at the inconveniences of everyday life like having to take your shoes off when you go through security at the airport or the fact that the taxes you pay go to waste?

Whether you've noticed it or not, Americans are losing more and more of their freedoms. Despite whatever the reason or the justification for doing so, the government is working very hard to take away the most basic right we have as individuals - freedom. If you listen to all of the candidates running for President, whether Democrat or Republican, there is only one candidate who not only promises to do all he can to restore our freedom, but he has the voting record to prove it. That candidate is Ron Paul. I urge you -- no I beg you -- to help the few of us upon whose backs this fight for freedom is being waged. Watch the video below and then go to www.ronpaul2008.com/donate to invest in your freedom and the freedom of the ones you care about the most.

(Note: the date at the end of the video is incorrect. The date for the MLK donation day for Ron Paul is Jan. 21st, 2008.)

Saturday, January 12, 2008

The Great Debate

Congressman Ron Paul recently participated in a Republican debate in Myrtle Beach, S.C. Here are the highlights:

Friday, January 11, 2008

Is Congressman Ron Paul a Racist?

A story broke recently - well, it's actually a story that broke 10 years ago, was handled back then and put to rest, but is being conveniently dredged up today given the upcoming Presidential primaries. In this story, it is alleged that Congressman Paul published some pretty shocking statements regarding African Americans in this country. As it turns out, these statements were not written by Congressman Paul nor were they approved by Congressman Paul; they were written by someone else and published under his name without his permission. Congressman Paul took full responsibilty for not keeping closer tabs on what was being published in his name 10 years ago when this first came up. That it is being plastered all over the news today is nothing more than an attempt to undermine Congressman Paul by those who oppose him. First he was excluded from the Fox News debate the night before the New Hampshire Primary. Now, on the eve of the Michigan and South Carolina Primaries, we have this latest attempt to try to harm Congressman Paul's bid for President.

Back on Nov. 21, 2007, I published a post that laid out where Congressman Paul stood on the issue of race relations. I am republishing that post now so that you can see for yourself what the actual truth is with regard to where Congressman Paul stands on this very important issue. I hope you will take the time to read this post in its entirety.

"Those who deny freedom to others deserve it not for themselves." Those words, spoken by Abraham Lincoln, helped free thousands of people from the chains of slavery. It is collectivism (the political principle of centralized social and economic control, esp. of all means of production) that helps the seeds of racism take hold and grow.

Congressman Ron Paul is strongly opposed to collectivism and believes that the government is ill-suited to combat racism and bigotry. Here's more:

"A nation that once prided itself on a sense of rugged individualism has become uncomfortably obsessed with racial group identities.

The collectivist mindset is at the heart of racism.

Government as an institution is particularly ill-suited to combat bigotry. Bigotry at its essence is a problem of the heart, and we cannot change people's hearts by passing more laws and regulations.

It is the federal government that most divides us by race, class, religion, and gender. Through its taxes, restrictive regulations, corporate subsidies, racial set-asides, and welfare programs, government plays far too large a role in determining who succeeds and who fails. Government "benevolence" crowds out genuine goodwill by institutionalizing group thinking, thus making each group suspicious that others are receiving more of the government loot. This leads to resentment and hostility among us.

Racism is simply an ugly form of collectivism, the mindset that views humans strictly as members of groups rather than as individuals. Racists believe that all individuals who share superficial physical characteristics are alike: as collectivists, racists think only in terms of groups. By encouraging Americans to adopt a group mentality, the advocates of so-called "diversity" actually perpetuate racism.

The true antidote to racism is liberty. Liberty means having a limited, constitutional government devoted to the protection of individual rights rather than group claims. Liberty means free-market capitalism, which rewards individual achievement and competence - not skin color, gender, or ethnicity.

In a free society, every citizen gains a sense of himself as an individual, rather than developing a group or victim mentality. This leads to a sense of individual responsibility and personal pride, making skin color irrelevant. Racism will endure until we stop thinking in terms of groups and begin thinking in terms of individual liberty."

Sunday, January 6, 2008

Ron Paul on CNN's Late Edition

Here's a video clip of Congressman Ron Paul on CNN's Late Edition with Wolf Blitzer. In this video, Congressman Paul goes into further details about his position on foreign policy.


Manchester Townhall Meeting

Today at 5:00pm EST, Congressman Ron Paul attended a townhall meeting in Manchester, NH to answer questions posed by undecided New Hampshire voters. If you're still on the fence about Congressman Paul or have friends or family who are still undecided, this is a good opportunity to get some outstanding questions answered.

Part I

Part II

Saturday, January 5, 2008

Send Me Your Poor, Your Tired, and Your Hungry -- and Tell Them to Use the Front Door

Immigration reform is a hot topic this election season. The United States prides itself in being the land of opportunity and a refuge for the persecuted. This country was built on the backs of thousands of legal -- I'll say it again -- legal immigrants who have come here to build a better life for themselves and for their families.

However, the rampant influx of illegal immigrants not only threatens our national security, it threatens our way of life -- the very way of life immigrants seek to avail themselves of -- by putting an incredible strain on our infrastructure and our resources. Ron Paul believes we should put an end to illegal immigration and has a plan for doing so:

"Illegal immigration is on the forefront of many Americans’ minds lately and with good reason. The Center for Immigration Studies has recently reported that our immigrant population is now 37 million, up from 27 million in 1997. 1 in 3 of these immigrants are here illegally. We have a problem that has exploded in the last 10 years with no appreciable change in border security since September 11 when we were supposed to take a hard look at the problem.

We have security issues at home and our resources are running thin. Our education system is stretched, and immigration accounts for virtually all the national increase in public school enrollment in the last 2 decades. There is a worker present in 78% of immigrant households using at least one major welfare program, according to the same study. It’s no surprise then that often times these immigrants can afford to work for lower wages. They are subsidized by our government to do so.

Right now we are subsidizing a lot of illegal immigration with our robust social programs and it is an outrage that instead of coming to the United States as a land of opportunity, many come for the security guaranteed by government forced transfer payments through our welfare system. I have opposed giving federal assistance to illegal immigrants and have introduced legislation that ends this practice. In the last major House-passed immigration bill I attempted to introduce an amendment that would make illegal immigrants ineligible for any federal assistance.

Unfortunately, that amendment was ruled "not relevant" to immigration reform. I believe it is very relevant to taxpayers, however, who are being taken advantage of through the welfare system. Illegal immigrants should never be eligible for public schooling, social security checks, welfare checks, free healthcare, food stamps, or any other form government assistance.
The anchor baby phenomenon has also been very problematic. Simply being born on US soil to illegal immigrant parents should not trigger automatic citizenship. This encourages many dangerous behaviors and there are many unintended consequences as a result of this blanket policy. I am against amnesty and I have introduced an amendment to the Constitution (H.J. Res 46) which will end this form of amnesty.

I have also supported the strengthening our border and increasing the number of border patrol agents. It is an outrage that our best trained border guards are sent to Iraq instead of guarding our borders. For national security, we need to give more attention to our own border which is being illegally breached every day, and yet the government shirks one of its few constitutionally mandated duties, namely to defend this country. Citizens lose twice with our current insecure border situation – we don’t have the protection we should have, and then taxpayers have to deal with the fallout in the form of overstretched public resources and loss of jobs.

The anger is understandable when it comes to illegal immigration and the problems with our borders. I will continue to fight in Congress for more effective ways to address these issues in keeping with the Constitutional mandate to protect America ."

Friday, January 4, 2008

Ron Paul Beats Giuliani in Iowa Caucus

The results are in and Congressman Ron Paul posted a strong finish in the Iowa caucus with 10% of the vote compared to Rudy Giuliani's 4%. This occured in a state that leans heavily toward the Christian Conservative side and in a state where Congressman Paul spent significantly less money than his rivals. Although Congressman Paul finished in 5th place, his showing in Iowa is consistent with straw poll results that, in addition to predicting a 5th place finish in Iowa, also predict a 1st place win in many other states.

Here's what Wolf Blitzer of CNN had to say about Ron Paul's results in Iowa:

Tuesday, January 1, 2008

What if April 15th Was Just Another Day?

What if, each payday, your paycheck was bigger because you got to keep more of what you earned? What would you do with that money? In Washington, there's a lot of talk about cutting taxes, but the money never seems to materialize in our pay checks.

Congressman Ron Paul has a practical, common-sense approach to fiscal responsibility that will benefit all Americans. Here's a statement from Congressman Paul back on October 16, 2006"

"In Washington we hear a lot of talk about tax cuts, but the rhetoric does not always match the reality. For most Americans, taxes remain too complex and too high. After the tumult of the upcoming midterm election, it is imperative that Congress gets back to basics and addresses our terrible tax system.

Lower taxes benefit all Americans by increasing economic growth and encouraging wealth creation. I’m in favor of cutting everybody’s taxes – rich, poor, and otherwise. Whether a tax cut reduces a single mother’s payroll taxes by forty dollars a month, or allows a business owner to save thousands in capital gains and hire more employees, the net effect is beneficial. Both either spend, save, or invest the extra dollars, which helps all of us more than if those dollars were sent to the black hole known as the federal Treasury.

Many conservatives have touted the Fair Tax proposal as an issue in the upcoming election. A pure consumption tax like the Fair Tax would be better than the current system only if we truly did away with the income tax by repealing the 16th amendment. Otherwise, we could end up with both the income tax and a national sales tax. A consumption tax also provides more transparency and less complexity. But the real issue is total spending by government, not tax reform. In other words, why change the tax structure if spending stays the same? Once we accept that the federal government needs $2.7 trillion from us-- and more each year-- the only question left is from whom it will be collected. Until the federal government is held to its proper constitutionally limited functions, tax reform will remain a mirage.

I apply a very simple test to any proposal to overhaul the tax code: Does it reduce or eliminate an existing tax? If not, then it amounts to nothing more than a political shell game that pits taxpayers against each other in a lobbying scramble to make sure the other guy pays. True tax reform is as simple as cutting or eliminating taxes. No studies, panels, committees, or hearings are needed. When reform proposals seem complicated, they almost certainly don’t cut taxes. Congress should simply focus on cutting existing taxes and reducing spending, instead of complicated overhauls of the system.

The question to ask yourself is this: What would I do with the money withheld from my paycheck each month? The answer is simple: you would spend, save, or invest the money, all of which do more for the economy and society than sending it to Washington. Thanks to the deception of income tax withholding, however, some people actually look forward to tax time and a much-anticipated refund. Imagine how quickly Americans would demand lower taxes and spending if they had to write the federal government a check each month!

Tax relief is important, but members of Congress need to back up tax cuts with spending cuts- and they need to vote NO on every wasteful appropriations bill until we start over with the federal budget. True fiscal conservatism combines both low taxes and low spending.

Cutting spending would not be hard if Congress simply showed the political will to tackle the problem. I’m not talking about cutting the rate at which government spending grows, but cutting the actual amount of money spent by the federal government in a single year.

If federal spending grows at 5% rather than 7% one year, that’s hardly a great achievement on the part of Congress. The current federal budget of around $2.7 trillion could be cut to $2.5 trillion quite easily. The vast majority of Americans would not even notice. But we must begin chipping away at the federal budget if we hope to address the underlying problem of government debt."