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U.S. Rep. Ron Paul money Book of Ron Paul money State Of The Republic 28 January 1998    1998 Ron Paul 2:27 In the Middle East, even with all our announced intentions and military effort to protect Kuwait, our credibility is questioned as most Arabs still see us as pro-Israel, anti-Arab, and motivated by power, oil and money. money State Of The Republic 28 January 1998    1998 Ron Paul 2:32 As much as I fear and detest one-world government, this chaos that we contribute to in the Middle East assures me that there is no smooth sailing for the new world order. Rough seas are ahead for all of us. If the UN’s plans for their type of order is successful, it will cost American citizens money and freedom. If significant violence breaks out, it will cost American citizens money, freedom, and lives. money State Of The Republic 28 January 1998    1998 Ron Paul 2:70 When the dollar comes under attack, since it is the reserve currency of the world, a much more serious crisis than we are currently witnessing in Asia will occur. Only a universal acceptance of a single worldwide commodity standard of money can prevent these periodic devaluations and disruptions in trade that are so prevalent today. money State Of The Republic 28 January 1998    1998 Ron Paul 2:73 Currency issues are serious and a much bigger problem than Congress realizes. Even the Fed has convinced itself it is quite capable of managing our fiat currency and our financial markets through any crisis. The money managers are every bit as powerful as the Congress, which taxes and spends, but the Federal Reserve’s actions are much less scrutinized. money State Of The Republic 28 January 1998    1998 Ron Paul 2:88 Public relation debates. Oftentimes the big debates in Congress are more public relation efforts than debates on real issues. This is certainly true when it comes to preventing foreign aid funds from being used by any organization for abortions. I agree with and vote for all attempts to curtail the use of U.S. taxpayers’ funds for abortion within or outside the United States. But many in the pro-life movement are not interested in just denying all birth control, population control and abortion money to everyone, and avoid the very controversial effort to impose our will on other nations. Believing money allocated to any organization or country is not fungible is naive, to say the least. The biggest problem is that many who are sincerely right to life and believe the Mexico City language restriction on foreign aid will work are also philosophic believers in internationalism, both social and military. money State Of The Republic 28 January 1998    1998 Ron Paul 2:91 We have at least started to debate the merits of any money at all going to population control, the United Nations or the IMF. This is where the debate should be. Even though the restrictions that the Mexico City language might place on foreign expenditures probably will not change the number of abortions around the world, the vote itself does reflect, through Congress, the sentiment of the American people, and therefore, its importance cannot be denied. But I am convinced that if the American people had the option of whether or not to send any money at all, they would reject all the funding, making the restriction debate moot. money State Of The Republic 28 January 1998    1998 Ron Paul 2:93 The weak and ineffective conditions placed on foreign aid money to prevent abortions is hardly a legitimate reason for continuing the illegal funding in the first place. At times, in efforts to get more swing votes to endorse Mexico City language, some pro-life forces not only will not challenge the principle of our funding for birth control and population control overseas, but believe in increasing the appropriation for the program. If the Constitutionists cannot change the nature of the debate, we will never win these arguments. money State Of The Republic 28 January 1998    1998 Ron Paul 2:122 By insisting that all government action be guided by tolerance and compromise in any effort to protect liberty, it is only natural that strict observance to standards in other areas would be abandoned. And it is true, we now live in an age where life has relative value, money has no definition, marriage is undefinable, moral values are taught as relative ethics in our classrooms, good grades in the classroom no longer reflect excellence, success in business is often subjected to doubts because of affirmative action, and corporate profits depend more on good lobbyists in Washington than creative effort. money State Of The Republic 28 January 1998    1998 Ron Paul 2:123 Pragmatism and interventionism are popular because of their convenience and appeal to those who crave governing over others and those who expect unearned benefits. This process can last a long time when some incentives to produce remain in place. But eventually it leads to an attack on the value of money confiscatory taxation, over regulation, excessive borrowing on the future and undermining of trust in the political process. Once this system is entrenched, it becomes difficult, if not impossible, to gracefully reverse the process. money State Of The Republic 28 January 1998    1998 Ron Paul 2:134 Throughout this century, and as the movement grows for one world government, the linchpin is always democracy, not liberty or a constitutionally restrained republic as our Founders preferred. As long as the democratic vote can modify rights, the politicians will be on the receiving end of bribes and money and will be the greatest influence on legislation. money America Should Move Cautiously Regarding Iraq 4 February 1998    1998 Ron Paul 3:2 In the next week or two, we may have a resolution coming to this floor endorsing the bombing and, in essence, allowing for a declaration of war. Saddam Hussein does not pose any threat to our national security. We should be going very cautiously. Bombing might cause some accident regarding biological warfare. It may cause an irrational act by Saddam Hussein with one of his neighbors. It is bound to kill innocent lives, innocent civilians in Iraq. It could kill many American flyers as well. It costs a lot of money. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:3 In the attempt to help people in a welfare-warfare state, unfortunately the poor never seem to be helped. A lot of money is spent, but due to the monetary system that we have, inevitably, the middle class tends to get wiped out and the poor get poorer, and very often in the early stages the wealthy get wealthier. In the meantime, the corporations seem to do quite well. So we live in an age where we have a fair amount of corporatism associated with the welfare-warfare state in which we live. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:22 So one would expect with all this money flowing into that country that they should quickly do exactly what we want. But this Foreign Minister was rather blunt: Egypt, a key member of the Gulf War coalition, is opposed to U.S. military action in Iraq. He said, We believe that military action should be avoided and there is room for political efforts. He said, If such action is taken, there will be considerable fallout in the Arab world, he warned. He said, We are not afraid of Saddam. He added that his country believes the crisis is a result of allegations that have not been proven. Yet, we are willing to go and do such a thing as to initiate this massive bombing attack on this country, and there has been nothing proven. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:44 It is conceivable to me that it would be to Hussein’s benefit, and he probably is not worried that much, but I do not believe it is in our interest. I do not believe it is in the interest of the American people, the American taxpayers, the American fighter pilots, and certainly long-term interest in the Middle East. We will spend a lot of money doing it. That is one issue. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:74 Well, that to me is the wrong way to go. If we are involved in internationalism, where international financing now is influencing our presidential election, if international finances demand that we take more money from the American taxpayers and bail out southeast Asian countries through the IMF and that we are willing to have our young men and women be exposed to war conditions and to allow them to go to war mainly under a U.N. resolution and a token endorsement by the Congress, I think this is the wrong way to go. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:80 People will immediately say that is isolationism. Even if you are not for the IMF bailout, this argument really bewilders me. If you are not for the $18 billion bailout of the IMF, you are an isolationist. You can be for free trade and get rid of all the tariffs and do everything else, but if you are not willing to give your competitors more money and bail them out and bail out the banks, you are an isolationist. You are not for free trade. It is complete nonsense. There is nothing wrong with isolating our military forces. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:97 I wonder if they are talking about when he invaded Iran with our encouragement and our money and our support. Is that what they are talking about? Or are they talking about the other invasion that we did not like because it was a threat to western oil? I think that might be the case. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:101 For many, many years, Noriega was our ally, and he was no angel when he was our ally. He received money from the CIA, but all of a sudden he wanted to be his own drug lord. He did not want to be beholding to our CIA, so we had to do something about him. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:105 How many bombs did we drop in South Vietnam? How many men were lost on our side? How many people were lost on the other side? How many innocent people were lost? So the war ends, after a decade. After a decade of misery in this country where we literally had to turn on our own people to suppress the demonstrations. But today I have friends who are doing business in South Vietnam, making money over there, which means that trade and talk works. They are becoming more Westernized. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:115 We do not need any fancy campaign reform laws. There is no need for those. We need to eliminate the ability of the Congress to pass out favors. I do not get any PAC money because there is no attempt to come and ask me to do special favors for anybody. I get a lot of donations from people who want liberty. They want to be left alone, and they know, they know that they can take care of themselves. money Three Important Issues For America 11 February 1998    1998 Ron Paul 7:118 Foreign policy is very important because it is under the conditions of war; it is under the condition of foreign confrontation that people are so willing to give up their liberties at home because of the fear. We should avoid unnecessary confrontations overseas and we should concentrate on bettering the people here in this country, and it can best be done by guaranteeing property rights, free markets, sound money, and a sensible approach to our foreign policy. money The Folly Of Foreign Intervention — Part 2 25 February 1998    1998 Ron Paul 17:2 I have always lamented the fact that we so often are anxious to close down our bases here within the United States because we are always looking for the next monster to slay outside of the country, so we build air bases in places like Saudi Arabia. Then when the time comes that our leaders think that it is necessary to pursue a war policy in the region, they do not even allow us to use the bases. I think that is so often money down the drain. It is estimated now that we have probably pumped in $7 billion into Bosnia and that is continuing. Our President is saying now that that is open-ended, there is no date to bring those troops back. We have already spent probably a half a billion additional dollars these last several weeks just beefing up the troops in the Persian Gulf. money The Folly Of Foreign Intervention — Part 2 25 February 1998    1998 Ron Paul 17:3 The funds will not be endless. I have too many calls from so many in my district who serve in the military, and their complaint is that they do not have enough funds to adequately train. We are wasting money in the wrong places, getting ourselves into more trouble than we need to. At the same time we detract from spending the money where we should in training our personnel the way they should be. I think this is not so much a tactical decision made by management as much as it is a policy decision on what our foreign policy ought to be. money The Folly Of Foreign Intervention — Part 3 25 February 1998    1998 Ron Paul 18:5 We have spent a lot of money in Bosnia and the other places. So the evidence is not very good that intervention is involved, certainly the most abhorrent type of intervention, which is the eager and aggressive and not-well-thought-out military intervention. That is obviously the very worst. money The Folly Of Foreign Intervention — Part 3 25 February 1998    1998 Ron Paul 18:9 I would like to go ahead and close with a brief summary of what we have been trying to do here today. It was mentioned earlier, and I want to reemphasize it, something that has not been talked about a whole lot over this issue, has been the issue of oil. It is oil interests, money involved. money The Folly Of Foreign Intervention — Part 3 25 February 1998    1998 Ron Paul 18:21 If we argue our case correctly, if we argue the more argument, the constitutional argument, and the argument for peace as well, I cannot see how the American people cannot endorse a policy like that, and I challenge those who think that we should go carelessly and rapidly into battle, killing those who are not responsible, further enhancing the power and the authority of those who would be the dictators. They do not get killed. Sanctions do not hurt them. The innocent people suffer. Just as the economic sanctions that will be put on Southeast Asia as we give them more money, who suffers from the devaluations? The American taxpayer, as well as the poor people, whether they are in Mexico or Southeast Asia, in order to prop up the very special interests. Whether it is the banking interests involved in the loans to the Southeast Asians, or our military-industrial complex who tends to benefit from building more and more weapons so they can go off and test them in wars that are unnecessary. money Access To Energy 25 February 1998    1998 Ron Paul 19:8 The capital required to build these things was supplied by the savings of tens of millions of people, who set aside part of the money they had earned and invested it in the free market in hopes of making a profit. It was also built by the profits retained by the corporations themselves. Capital alone did not, however, build the industries — people did. These people were led by unusual individuals whose love of science and technology dominated their personal lives and drove them and those around them to ever greater accomplishments. money Birth Defects Prevention Act 10 March 1998    1998 Ron Paul 24:3 As a Congressman, I have repeatedly come to the house floor to denounce the further expansion of the federal government into areas ranging from “toilet-tank-size mandates” to “public housing pet size;” areas, that is, where no enumerated power exists and the tenth amendment reserves to state governments and private citizens the exclusive jurisdiction over such matters. My visits to the floor have not gone uncontested — proponents of an enlarged federal government and more government spending have justified their pet spending and expansionist projects by distorting the meaning of the “necessary and proper” and “common defense and general welfare” clauses to encompass the constitutionally illegitimate activities they advocate. Even the Export-Import Bank and Overseas Private Investment Corporation during Foreign Operations Appropriations debate were constitutionally “justified” by the express power to “coin money and regulate the value thereof”? In other words, where money exists, credit exists — where credit exists, loans exist — where loans exist, defaulters exist — and from this, the federal government has a duty to bail-out (at taxpayer expense) politically connected corporations who make bad loans in political-risk-laden venues? money U.S. Obsession With Worldwide Military Occupation Policy 10 March 1998    1998 Ron Paul 25:10 This is not a result of too little money by a misdirected role for our military, a role that contradicts the policy of neutrality, friendship, trade and nonintervention in the affairs of other nations. The question we should ask is: are we entitled to, wealthy enough, or even wise enough to assume the role of world policemen and protector of the world’s natural resources? money U.S. Obsession With Worldwide Military Occupation Policy 10 March 1998    1998 Ron Paul 25:12 Acting as an honest broker, the U.S. may help bring warring factions to the peace table, but never with threats of war or bribes paid for by the American taxpayers. We should stop sending money and weapons to all factions. Too often our support finds its way into the hands of both warring factions and we never know how long it will be for our friends and allies of today to become our enemy and targets of tomorrow. money Illegal Wars 31 March 1998    1998 Ron Paul 30:2 Mr. Chairman, this is a very important part of this legislation. This is not BESTEA, but it is “best part.” By far Section 3002 of this bill is the best part of this entire bill. The only thing I would like to add is that the money being spent in Bosnia and Iraq, $1.8 billion, should not be spent there either, because I am frightened that we will put our men in harm’s way and then a situation will occur, and it will be virtually impossible for the Congress to turn down acceleration and amplification of the conflict over there. money On Regulating Credit Unions 1 April 1998    1998 Ron Paul 32:3 For instance, it was bragged upon, the bill was bragged upon because the regulations of safety and soundness was good. We have had a lot of regulation, for safety and soundness for banks and savings and loan, and yet the FDIC and FSLIC had to be bailed out. The insurance deposit for credit unions was started by private money, no government subsidies, and has never been bailed out. So now we are going to overlook the credit unions and make sure they are safer and sound. money Credit Union Membership Access Act 1 April 1998    1998 Ron Paul 33:3 The NCUSIF was the only deposit insurance fund started without any federal seed money and the credit unions never came to Washington for a taxpayer-funded bailout. In fact, allowing multiple common bonds for credit unions enhanced their safety and soundness. This bill will add new “safety and soundness” and CRA-like regulations on credit unions. These regulations will add a burdensome regulatory cost. This cost will be passed on to the consumer in the form of higher fees, higher interest rates and less service. It is the marginal consumer who will lose the most when this bill becomes law. money Credit Union Membership Access Act 1 April 1998    1998 Ron Paul 33:8 In addition to all of the problems associated with the obligations and requirements that the government regulations impose on the productive, private sectors of the economy, the regulations amount to a government credit allocation scheme. As Ludwig von Mises explained well in the Theory of Money and Credit in 1912, governmental credit allocation is a misdirection of credit which leads to malinvestment and contributes to an artificial boom and bust cycle. Nobel laureate Frederick A. Hayek and Murray Rothbard expounded on this idea. money Building Highways Is State Function 1 April 1998    1998 Ron Paul 34:4 So if we are looking for a fair way to build highways, a more efficient way to build highways, I think this is the answer. This is not going backwards, this is going forward. This would be the first time we could have a national highway system really controlled by the States where it is supposed to be. The States would have more money, not less money. They would have less regulation, not more regulation. money Education In America Is Facing Crisis 22 April 1998    1998 Ron Paul 37:5 What it does, it takes away taxation on any youngster who makes some money at one of these 4–H or Future Farmers of America fairs. When they sell their livestock, believe it or not, we go and tax them. Just think of this. The kids are out there trying to do something for themselves, earn some money, save some money and go to school; and what do we do as a Congress, we pick on the kids, we go and we tax these kids. money Education In America Is Facing Crisis 22 April 1998    1998 Ron Paul 37:8 I think it is unfair it pick on these kids. I think it is time that we quit taxing any youngster who makes some money at a 4–H fair or Future Farmers of America fair where they are selling their livestock and trying to earn money to go to college. money Education In America Is Facing Crisis 22 April 1998    1998 Ron Paul 37:14 I have another piece of legislation that would give $3,000 tax credit to every family for every child that they want to educate by themselves. So if they would spend any money on their child, whether they are in school or out of school, in private school, at home schooling, they would get this $3,000 credit. I hope my colleagues will take a look at these two pieces of legislation. money Don’t Bail Out Bankers 23 April 1998    1998 Ron Paul 38:1 Mr. PAUL. Mr. Speaker, I rise in strong objection to this motion. This should be a very easy vote for all of us; we should all vote no. They already have $35 billion of our money. They want $18 billion more. That is $53 billion. money Don’t Bail Out Bankers 23 April 1998    1998 Ron Paul 38:3 Then to come to us and say it will not cost the taxpayers any money is absurd. Why do they come here and try to sneak through this appropriation with a parliamentary trick, if it is not going to cost the taxpayers any money? Certainly it is going to cost the taxpayers money. It adds to the national debt, and we have to pay interest on the national debt. This is a cost. money The Bubble 28 April 1998    1998 Ron Paul 39:10 This current financial bubble started in mid-1982. At that time, the money supply, as measured by M3, was $2.4 trillion. Today it is over $5.5 trillion. That is a lot of inflation, and money supply growth is currently accelerating. money The Bubble 28 April 1998    1998 Ron Paul 39:11 Although the money supply has been significantly increased in the past 16 years and financial prices as well as other prices have gone up, Government officials continue to try to reassure the American people that there is no inflation to worry about because price increases, as measured by the Government’s CPI and PPI, are not significantly rising. money The Bubble 28 April 1998    1998 Ron Paul 39:14 A lot of foreign money has been used to buy our stocks, one of the consequences of computer-age financial technology and innovations. Our negative trade balance allows foreign governments to accumulate large amounts of our treasury debt. This serves to dampen the bad effect of our monetary inflation on domestic prices, while providing reserves for foreign central banks to further expand their own credit. money The Bubble 28 April 1998    1998 Ron Paul 39:15 Think of this: Money can be borrowed in Japan at Depression-era rates of 1 percent and then reinvested here in the United States either in more treasury debt earning 5 or 6 percent, or reinvested in our stock market, which is currently climbing at a 20 percent annualized rate. This sounds like a perfect deal for today’s speculators, but there is nothing that guarantees this process will continue for much longer. Perfect situations never last forever. money The Bubble 28 April 1998    1998 Ron Paul 39:16 Some of the euphoria that adds to the financial bubble on Wall Street and internationally is based on optimistic comments made by our government officials. Political leaders remind us time and again that our budget is balanced and the concern now is how to spend the excess. Nothing could be further from the truth, because all the money that is being used to offset the deficit comes from our trust funds. money The Bubble 28 April 1998    1998 Ron Paul 39:32 OECD measurements, the M1 and quasi-money have been increasing at greater than 20 percent per year in East Asia. In the United Stats, M3 has been increasing at 10 percent a year. It is estimated that this year the U.S. will have a $250 billion current account deficit — continued evidence of our ability to export our inflation. money The Bubble 28 April 1998    1998 Ron Paul 39:37 The business cycle — the boom-bust cycle of history — has not been repealed. The psychological element of trust in the money, politicians, and central bankers can permit financial bubbles to last longer, but policies can vary as well as perceptions, both being unpredictable. money The Bubble 28 April 1998    1998 Ron Paul 39:44 Instead of making sure that policy is correct, central bankers are much more interested in seeing that the gold-price message reflects confidence in the paper money. Thus gold has remained in the doldrums despite significant rising prices for silver, platinum, and palladium. However, be assured that even central banks cannot “fix” the price of gold forever. They tried this in the 1960’s with the dumping of hundreds of millions of ounces of American gold in order to artificially prop up the dollar by keeping the gold price at $35/oz., but in August 1971 this effort was abandoned. money The Bubble 28 April 1998    1998 Ron Paul 39:58 Until we accept the free market principle that governments cannot create money out of thin air and that money must represent something of real value, we can anticipate a lot more confiscation of wealth through inflation. money Clean Needles And Risky Behavior 29 April 1998    1998 Ron Paul 40:4 So, therefore, the argument is that we have to save money in medical care costs by providing free needles. But there is another position, and that is that we might suggest that we do not pay for free needles and we might even challenge the concept that we should not be paying people and taking care of them for risky behavior, whether it is risky sexual behavior or risky behavior with drugs. money Federal War On Drugs Bad Idea 5 May 1998    1998 Ron Paul 45:3 I have taken this time so I would have adequate time to explain my position and why I oppose this bill. Obviously, this country is facing a serious problem with drugs. As a physician, I can attest to it. We have major problems in this country, something should be done. But I thought it was necessary to take some time to point out that what we have done for 20 to 25 years has not been all that good. And I see this resolution as an endorsement of the status quo, not an introduction of one single new idea about how to approach this problem. And it is for this reason that I have taken this time to try to get people to think about maybe an alternative some day that we might look at, because so far the spending of the money and the abuse of our civil liberties that has occurred with the war on drugs has not accomplished a whole lot. money Federal War On Drugs Bad Idea 5 May 1998    1998 Ron Paul 45:7 I am here just to suggest quite possibly our attack on drugs has not been correct, that we have possibly made some mistakes. Maybe we spent some money that we have not gotten our dollars’ worth. Maybe we are going in the wrong direction. money Wasting Money On War On Drugs 5 May 1998    1998 Ron Paul 46:3 I have many conservatives say we have an educational problem, and all they want to do is throw more money at it. I cannot see how this is different. Yes, we have a major problem. But it gets worse, and all we do is throw more money at it with exactly the same programs. money Higher Education Amendments of 1998 6 May 1998    1998 Ron Paul 49:1 Mr. PAUL. Mr. Chairman, Congress should reject HR 6, the Higher Education Amendments of 1998 because it furthers the federal stranglehold over higher education. Instead of furthering federal control over education, Congress should focus on allowing Americans to devote more of their resources to higher education by dramatically reducing their taxes. There are numerous proposals to do this before this Congress. For example, the Higher Education Affordability and Availability Act (HR 2847), of which I am an original cosponsor, allows taxpayers to deposit up to $5,000 per year in a pre-paid tuition plan without having to pay tax on the interest earned, thus enabling more Americans to afford college. This is just one of the many fine proposals to reduce the tax burden on Americans so they can afford a higher education for themselves and/or their children. Other good ideas which I have supported are the PASS A+ accounts for higher education included in last year’s budget, and the administration’s HOPE scholarship proposal, of which I was amongst the few members of the majority to champion. Although the various plans I have supported differ in detail, they all share one crucial element. Each allows individuals the freedom to spend their own money on higher education rather than forcing taxpayers to rely on Washington to return to them some percentage of their tax dollars to spend as bureaucrats see fit. money The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:2 ECONOMIC FALLACY Belief that an artificial boom, brought about by Central Bank credit creation, can last forever is equivalent to finding the philosopher’s stone. Wealth cannot be created out of thin air, and new money and credit, although it can on the short-term give an illusion of wealth creation, is destructive of wealth on the long run. This is what we are witnessing in Indonesia — the long run — and it’s a much more destructive scenario than the currently collapsing financial system in Japan. All monetary inflation, something all countries of the world are now participating in, must by their very nature lead to an economic slump. money The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:8 Blame is misplaced. Rarely is the Central Bank and paper money blamed — unless a currency value goes to zero. In Indonesia the most vulnerable scapegoat has been the Chinese businessmen, now in threat of their lives and fleeing the country. money The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:21 As the Asian crisis spreads, I would expect Europe to feel the crunch next. Unemployment is already at a 12% level in Germany and France. The events can be made worse and accelerated by outside events like a Middle Eastern crisis or a war between India and Pakistan both now rattling their nuclear weapons. Eventually though, our system of “crony capitalism” and fiat money system will come under attack. Our system of favoring industries is different than the family oriented favoritism of Suharto, but none-the-less is built on a system of corporate welfare that prompts constant lobbying of Congress and the Administration for each corporation’s special interests. We have little to talk about as we preach austerity, balanced budgets and sound money to the current victims. Our day will come when we will humble ourselves before world opinion as our house of cards comes crashing down. money The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:22 We will all know we are on the right track when the people and our leaders are talking of restoring liberty to all equally, and establishing a sound money system that prevents the Fed from manufacturing money and credit out of thin air for the benefit of politicians, corporations and bankers who directly benefit. money United Nations Money Came From Defense Department 20 May 1998    1998 Ron Paul 53:3 I think another point that we ought to make is, how did they get any money already? They got it from the Defense Department. We did not even appropriate the money. They have already started it. They have used American taxpayers’ money without a direct appropriation from this Congress, and it is about time we stopped that type of legislation. That is the point. Where did the money come from? The Defense Department. It goes over into the United Nations for meddling, meddling overseas. It is taken away, literally, from defense. money United Nations Money Came From Defense Department 20 May 1998    1998 Ron Paul 53:4 We have a problem in this country for national defense. We have Air Force people who do not get flying time. Our men are not trained. We do not have the right equipment. We continuously spend all our money overseas, endlessly getting involved in Bosnia and Somalia, and wherever. money United Nations Money Came From Defense Department 20 May 1998    1998 Ron Paul 53:6 That is the point here. The American people deserve better protection. They deserve better protection of their money. They deserve better protection of their youngsters who may get drafted and may get sent overseas. There is a great deal of danger in the Bosnia and Kosovo area, yet here we are talking about starting a new U.N. organization that unfortunately dwells on the term and brags about rapidly deployable. That is the last thing we need from the United Nations. I would like to slow it up, but now they want to take away our sovereignty to go and get involved more easily than ever and more quickly than ever. money The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:2 ECONOMIC FALLACY Belief that an artificial boom, brought about by Central Bank credit creation, can last forever is equivalent to finding the philosopher’s stone. Wealth cannot be created out of thin air. New money and credit, although it can on the short-term give an illusion of wealth creation, is destructive of wealth on the long run. This is what we are witnessing in Indonesia — the long run — and it’s a much more destructive scenario than the currently collapsing financial system in Japan. All monetary inflation, something nearly all countries of the world are now participating in, must by their very nature lead to an economic slump. money The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:8 Blame is misplace. Rarely is the Central Bank and irredeemable paper money blamed — unless a currency value goes toward zero. In Indonesia the most vulnerable scapegoat has been the Chinese businessmen who are now in threat of their lives and fleeing the country. money The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:21 As the Asian crisis spreads, I would expect Europe to feel the crunch next. Unemployment is already at or approaching 12% in Germany and France. The events can be made worse and accelerated by outside events like a Middle Eastern crisis or a war between India and Pakistan both now rattling their nuclear sabers. Eventually though, our system of “crony capitalism” and fiat money system will come under attack. Our system of favoring industries is different than the family-oriented favoritism of Suharto, but none-the-less is built on a system of corporate welfare that prompts constant lobbying of Congress and the Administration for each corporation’s special interests. We have little room to talk as we preach austerity, balanced budgets and sound money to the current victims. Our day will come when we will humble ourselves before world opinion as our house of cards comes crashing down. money The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:22 We will all know we are on the right track when the people and our leaders are talking of restoring liberty to all equally, and establishing a sound money system that prevents the Federal Reserve from manufacturing money and credit out of thin air for the benefit of politicians, corporations and bankers who directly profit money Bankruptcy Hierarchy — Part 1 10 June 1998    1998 Ron Paul 56:2 Basically the way the law states now and the way the bill is written is that the IRS is the top government agency that is going to receive the money, and then the State and then the local government. My suggestion in my amendment is very simple and very clear and makes a very strong philosophic point, is why should we hold the IRS in such high esteem? Why should they be on top of the list? Why should the money leave the local districts and go to Washington? Why should it go into the coffers of the IRS, funding programs that are basically unconstitutional when there are so many programs that we are not doing and take it out of our school districts? money Bankruptcy Hierarchy — Part 1 10 June 1998    1998 Ron Paul 56:3 If we reverse the order, the local government gets the money first, the money that would be left over from the bankruptcy, then the State government, and then the Federal Government. This merely states the point, which I hope we can get across someday in this Congress, that the priority in government should be local government, not a big, strong Federal Government. money Bankruptcy Hierarchy — Part 1 10 June 1998    1998 Ron Paul 56:4 Indeed, today there is a lot of resentment in this country against the IRS and the way we spend money up here, and this emphasizes a very important point, that money should be left in the district, money should be left in the States, and at last resort, the money should come here to the Federal Government. money Bankruptcy Hierarchy — Part 1 10 June 1998    1998 Ron Paul 56:5 One of the arguments used against this amendment is, “Uh-oh, it is going to cost the Government some money.” Cost the Government some money by leaving the money in the State or locally, or leaving it in the pockets of the American people as that same argument is used in tax increases? Hardly would it be difficult for the small amounts, I do not even know the exact amount of money that might be lost to the Treasury because some of these funds might not flow here in this direction, but it cannot be a tremendous amount. But what is wrong with the suggestion that we just cut something? There are so many places that we can cut. Instead, all we do around here is look around for more places to spend money. Today we are even talking about increasing taxes by three-quarters of a trillion dollars on a tobacco program. We are always looking for more revenues and more spending programs and we are worried about paying for a little less revenues coming into the Federal Government. money Bankruptcy Hierarchy — Part 1 10 June 1998    1998 Ron Paul 56:6 Once again, this amendment is very clear. It states that in the order of designating these funds on unsecured creditors, local government would get the money first, then State government, and then the Federal Government. money Bankruptcy Hierarchy — Part 1 10 June 1998    1998 Ron Paul 56:7 In the 1980s, in the early 1990s, when Texas and California had trouble, money flowed up here in the middle of bankruptcies at the same time school districts were suffering, putting a greater burden on local school districts. So this is to me a very clear principled position to state that we should have local government, not Federal Government, that we should not enhance the power and the authority of the Federal Government and certainly should not put the IRS and the Federal Government on the top of the pecking order. They should be at the bottom where they deserve to be. So I would ask my colleagues to endorse this legislation and this amendment to this legislation. I support the legislation. I am hopeful that this amendment will be passed. money Bankruptcy Hierarchy — Part 2 10 June 1998    1998 Ron Paul 57:4 So I would say that it is very important that we do think about local government over Federal government, think about less taxes and less bureaucracy, because unless we change our mind set on this, we will continue to put the priorities of the Federal Government and the IRS up at the top. I want them at the bottom. That is where they deserve. They do not know how to spend their money. They do not know how to spend their money, and we ought to see to it that they get a lot less of it. money Child Protection and Sexual Predator Punishment Act 11 June 1998    1998 Ron Paul 58:3 In the name of the politically popular cause of protecting children against sex crimes, the Members of Congress will vote on whether to move the Nation further down the path of centralized-Government implosion by appropriating yet more Federal taxpayer money and brandishing more U.S. prosecutors at whatever problem happens to be brought to the floor by any Members of Congress hoping to gain political favor with those embracing some politically popular cause. The Child Protection and Sexual Predator Punishment Act of 1998 is no exception. money Campaign Finance Reform 16 June 1998    1998 Ron Paul 59:2 New reforms are now being proposed, and I predict they will be no more successful than the numerous rules and regulations that we imposed on candidates in the 1970s. The reason I say this is that we are treating a symptom and not the cause. The symptom, of course, is very prevalent. Everybody knows there is a lot of big money that influences politics. I understand that there is $100 million a month spent by the lobbyists trying to influence our votes on the House floor and hundreds of millions of dollars trying to influence our elections. So some would conclude, therefore, that is the case, we have to regulate the money, the money is the problem. money Campaign Finance Reform 16 June 1998    1998 Ron Paul 59:3 But I disagree. Money is not the problem. The basic problem is that there is so much to be gained by coming to Washington, lobbying Congress and influencing legislation. The problem is not that we have too much freedom. The problem is that we have too much government, and if we think that just more regulations and more government will get rid of the problem, we are kidding ourselves. What we need is smaller government, less influence of the government on everything that we do in our personal lives as well as our economic lives. The Congress is always being involved. money Campaign Finance Reform 16 June 1998    1998 Ron Paul 59:6 Under the conditions that we have today the only way we can avoid the influence is not ourselves, we, the Members of Congress, being a good investment. We should be independent, courageous and do the things that are right rather than being influenced by the money. But the rules and the regulations will not do very much to help solve this problem. Attacking basic fundamental rights would certainly be the wrong thing to do, and that is what so much of this legislation is doing. It is attacking the fundamental right to speak out to petition the government to spend one’s money the way he sees fit, and this will only make the problems much worse. money Individuals with Disabilities Act 16 June 1998    1998 Ron Paul 60:2 The drafters of this bill claim that increasing federal spending on IDEA will allow local school districts to spend more money on other educational priorities. However, because an increase in federal funding will come from the same taxpayers who currently fund the IDEA mandate at the state and local level, increasing federal IDEA funding will not necessarily result in a net increase of education funds available for other programs. In fact, the only way to combine full federal funding of IDEA with an increase in expenditures on other programs by state and localities is through massive tax increases at the federal, state, and/or local level. money Parent And Student Saving Account Act 18 June 1998    1998 Ron Paul 62:3 I also support the provisions extending the exclusion of funds received from qualified state tuition programs, and excluding monies received from an employer to pay for an employee’s continuing education from gross income. Both of these provisions allow Americans to spend more of their resources on education, rather than hand their hard-earned money over to the taxman. money Parent And Student Saving Account Act 18 June 1998    1998 Ron Paul 62:5 Furthermore, education IRAs are not the most effective means of returning education resources to the American people. A much more effective way of promoting parental choice in education is through education tax credits, such as those contained in H.R. 1816, the Family Education Freedom Act, which provides a tax credit of up to $3,000 for elementary and secondary expenses incurred in educating a child at public, private, parochial, or home schools. Tax credits allow parents to get back the money they spent on education, in fact, large tax credits will remove large numbers of families from the tax roles! money Campaign Finance Reform 23 June 1998    1998 Ron Paul 64:3 I suspect we will be talking about campaign finance reform for a couple more months. I see this somewhat differently than others. Others see that all we have to do is regulate the money and we are going to solve all our problems. But all governments are prone to be influenced by special interests. That is the nature of government. money Campaign Finance Reform 23 June 1998    1998 Ron Paul 64:7 But there is another problem that I want to address, and that is the decreased interest in campaigns and elections. Thirty years ago we would have 30 some percent of the people would turn out in the primary elections. Today it is less than 20 percent. It is a steady decline. There is good reason for this because as government gets bigger and as money becomes more influential, and money talks, the little people who have their desires and their voices unheard and want to be heard, they feel very frustrated. So it is understandable and expected that there will be lower and lower turnout in our elections. That is exactly what is happening. money Campaign Finance Reform 23 June 1998    1998 Ron Paul 64:8 Now, why is this the case? Is it just because they are apathetic? I do not think so. I think a lot of people make wise choices and say it does not make a lot of difference; my vote does not really count because so much money is influencing what happens in Washington with legislation. And yet we have rules and laws throughout the country that make it just about impossible for anybody outside the ordinary two-party system to be represented. money Every Currency Crumbles 24 June 1998    1998 Ron Paul 65:1 Mr. PAUL. Mr. Speaker, it has recently come to my attention that James Grant has made a public warning regarding monetary crises. In an Op-Ed entitled “Every Currency Crumbles” in The New York Times on Friday, June 19, 1998, he explains that monetary crises are as old as money. Some monetary systems outlive others: the Byzantine empire minted the bezant, the standard gold coin, for 800 years with the same weight and fineness. By contrast, the Japanese yen, he points out, is considered significantly weak at 140 against the U.S. dollar now to warrant intervention in the foreign exchange markets but was 360 as recently as 1971. The fiat U.S. dollar is not immune to the same fate as other paper currencies. As Mr. Grant points out, “The history of currencies is unambiguous. The law is, Ashes to ashes and dust to dust.” money Every Currency Crumbles 24 June 1998    1998 Ron Paul 65:2 Mr. James Grant is the editor of Grant’s Interest Rate Observer, a financial publication, and editorial director of Grant’s Municipal Bond Observer and Grant’s Asia Observer. He has also authored several books including the biographical “Bernard Baruch: Adventures of a Wall Street Legend”, the best financial book of the year according to The Financial Times “Money of the Mind: Borrowing and Lending in America from the Civil War to Michael Milken”, “Minding Mr. Market: Ten Years on Wall Street with Grant’s Interest Rate Observer” and “The Trouble with Prosperity: The Loss of Fear, the Rise of Speculation, and the Risk to American Savings”. He is a frequent guest on news and financial programs, and his articles appear in a variety of publications. money Every Currency Crumbles 24 June 1998    1998 Ron Paul 65:4 Monetary crises are almost as old as money. What is different today is the size of these episodes. It isn’t every monetary era that features recurrent seismic shifts in the exchange values of so-called major currencies. On Wednesday morning, after coordinated American and Japanese intervention, the weakling yen became 5 percent less weak in a matter of hours. money Every Currency Crumbles 24 June 1998    1998 Ron Paul 65:5 People with even a little bit of money ought to be asking what it’s made of. J.S.G. Boggs, an American artist, has made an important contribution to monetary theory with his lifelike paintings of dollar bills. So authentic do these works appear — at least at first glance, before Mr. Boggs’ own signature ornamentation becomes apparent — that the Secret Service has investigated him for counterfeiting. “All money is art,” Mr. Boggs has responded. money Issue Ads 14 July 1998    1998 Ron Paul 67:4 There has been a lot of talk here about soft money. I just often wonder about soft money. I know something about hard money. But this business of soft money and soft money automatically being bad is something we should think seriously about. Because so often when we are talking about soft money, we are talking about the people’s money, their money, their property. Sure, it is a first amendment right. But there is also a property rights issue here. When people have money, they have a right to spend it; and if they want to spend it on a voters guide, they certainly ought to be able to do this. money Issue Ads 14 July 1998    1998 Ron Paul 67:5 So I think it is a very important amendment and we should pay close attention to this to make sure that we pass this amendment. The problem with attacking big money without knowing why there is big money involved in politics I think is the problem that we face. Big money is a problem. They are spending $100 million a month to lobby us in the Congress and hundreds of millions of dollars in the campaign, but nobody ever talks about why they are doing it. money Issue Ads 14 July 1998    1998 Ron Paul 67:6 There is a tremendous incentive to send all this money up here. Unless we deal with the incentive, we cannot deal with the problem. So, so far, almost all the talk that we have heard on this campaign finance reform is dealing with the symptom. The cause is Government is too big. Government is so big there is a tremendous incentive for people to invest this money. So as long as we do not deal with that problem, we are going to see a tremendous amount of money involved. money Issue Ads 14 July 1998    1998 Ron Paul 67:7 But what is wrong with people spending their own money to come here and fight for their freedom? What if they are a right-to-life group? What if they are a pro-gun-ownership group? What if they are a pro-property-ownership group? Why should they not be able to come and spend the money like the others have? money Issue Ads 14 July 1998    1998 Ron Paul 67:9 So I think that we are misguided when we talk only about the money and not dealing with the incentive to spend the money, and that is big government. All the rules in the world will not change these problems. We had a tremendous amount of rules and laws written since the early 1970s and all it has done is compounded our problems. money Issue Ads 14 July 1998    1998 Ron Paul 67:10 So I think openness and reporting requirements to let people know where we are getting the money, let the people decide if we are taking too much from one group. But to come down hard and attack on individual liberty and the right for people to spend their money and the right for the people to distribute voters guides, I cannot say see how that is going to solve any problems. I mean, what are we doing here? I think it is total foolishness. money Exchange Stabilization Fund 16 July 1998    1998 Ron Paul 79:4 Where did the money come from? It came from confiscation, not through taxation, but confiscating gold from the American people, revaluing the gold, taking the net profits, putting it into the Exchange Stabilization Fund, as well as the initial financing of the IMF. money Exchange Stabilization Fund 16 July 1998    1998 Ron Paul 79:5 They tried to reassure us and say, well, this is not an injury to our appropriations process. We do not appropriate money. We do not lose money. Well, that is precisely the problem. We are supposed to have responsibility. It is not the kind of amendment I want. money Exchange Stabilization Fund 16 July 1998    1998 Ron Paul 79:9 This is why we need more openness. Because, ultimately, this is a threat to the dollar. The dollar, when it is devalued, it hurts the American taxpayer. It is a hidden tax. When we devalue the dollar, we are spending money indirectly. We take away wealth and purchasing power from the American people. And it is a sinister tax. It is the most sinister of all taxes. money Exchange Stabilization Fund 16 July 1998    1998 Ron Paul 79:13 We talk a lot about supporting the currency. On a day-to-day basis, $1.6 trillion are transferred over the wire service. There is not one reputable economist in this country that I know of that really defends currency intervention as being productive and being able to change the course of events. Because although $38 billion is a lot of money and intervention does cause sudden shocks, causes some bond traders, currency traders to lose money quickly, it has no long-term effect. money Ballot Access — Part 1 30 July 1998    1998 Ron Paul 86:12 The fourth point that I would like to make is that the setup and the situation we have now is so unfair, many are concerned about how money is influencing the elections. But in this case, rules and regulations are affecting minor candidates by pushing up the cost of the election, where they cannot afford the money to even get on the ballot, so it is very unfair in a negative sense that the major parties penalize any challengers. And the correction would come here by equalizing this, making it more fair, and I would expect, I think, just everybody to agree that this is an amendment of fairness and equity and should be accepted. money Ballot Access — Part 3 30 July 1998    1998 Ron Paul 88:4 There is something distinctly unfair about this. This is un-American. We have the authority to do it. This is the precise time to do it. We are dealing with campaign reform, and they are forcing these minor candidates to spend unbelievable amounts of money. They are being excluded. They are 42 percent of the people in this country. They are the majority, when we divide the electorate up. They deserve representation, too. The CHAIRMAN. All time has expired. The question is on the amendment offered by the gentleman from Texas (Mr. PAUL) to the amendment in the nature of a substitute No. 13 offered by Mr. SHAYS: The question was taken; and the Chairman announced that the noes appeared to have it. money Ballot Access — Part 1 30 July 1998    1998 Ron Paul 90:2 Mr. Chairman, this amendment is very simple. The major candidates receive a lot, a million dollars, to run their campaigns. Then they have national debates, and then they can purposely exclude other candidates. I am not talking about 10 or 20 or 30 very minor candidates, I am talking about candidates who spend weeks, months, years, hundreds of thousands of dollars, just to get on the ballot. Some will not even take the money, but some qualify to be on 40 and 50 ballots, and they are purposely excluded. money Ballot Access — Part 1 30 July 1998    1998 Ron Paul 90:3 This amendment does not dictate to those who hold debates, but it would require that those major party candidates who take the taxpayers’ money, they take it with the agreement that anybody else who qualifies for taxpayers’ funding, campaign funds, or gets on 40 ballots, would be allowed in the debate. money Ballot Access — Part 2 30 July 1998    1998 Ron Paul 91:4 All I am asking for is for us to endorse the notion, and we have the authority, the money comes from congressional appropriations. We have written these laws. These are election laws. We have this authority. We have the authority under the Constitution and we have the authority under our laws to do this. money Honoring 4-H Programs And Gold Star Recipients 4 August 1998    1998 Ron Paul 94:2 Head, Hand, Hearts and Health, these are the “4–H’s” and they are truly indicative of what this organization is all about. One of the primary missions that this organization undertakes is agricultural education. Earlier this year I introduced a bill which would exempt the sale of livestock by those involved in educational activities such as FFA and 4–H from federal income taxation. By making young men and women who participate in these activities hire a group of tax accountants and attorneys we are sending the wrong message. Young people who sell livestock at county fairs and the like should be rewarded for taking self initiative and allowed to keep the money they’ve earned to help pay for their education or to re-invest in other animals to raise. My bill would eliminate the current policy of forcing these youngsters to visit the tax man. Mr. Speaker, I want to commend the following winners of the Gold Star, the highest award possible at the county level, for achievements in competition at state levels, leadership ability, community service and years of service. They are: Deidrea Harris, Josh Weber, Amanda Tacquard, and Allison Sauer. Again, I want to commend these young people for their achievements. money Gold Star Awards 5 August 1998    1998 Ron Paul 95:1 Mr. PAUL. Mr. Speaker, the Matagorda County 4-H will hold an awards program on the 20th of August and this is a very important event Mr. Speaker. Mr. Speaker I have, in the past, pointed out how important an organization 4-H truly is for those of us who were raised on farms and who represent agricultural communities. As I have said in the past Mr. Speaker, one of the primary missions that this organization undertakes is agricultural education. I believe that this mission is so critical that, earlier this year, I introduced a bill which would exempt the sale of livestock by those involved in educational activities such as FFA and 4-H from federal income taxation. By making young men and women who participate in these activities hire a group of tax accountants and attorney we are sending the wrong message. Young people who sell livestock at county fairs and the like should be rewarded for taking self initiative and allowed to keep the money they’ve earned to help pay for their education or to re-invest in other animals to raise. My bill would eliminate the current policy of forcing these youngsters to visit the tax man. money English Language Fluency Act 10 September 1998    1998 Ron Paul 96:3 The English Language Fluency Act also improves current law by changing the formula by which schools receive Federal bilingual funds from a competitive to a formula grant. Competitive grants are a fancy term for forcing States and localities to conform to Federal dictates before the Federal Government returns to them some of the moneys unjustly taken from the American people. Formula grants allow States and localities greater flexibility in designing their own education programs and thus are preferable to competitive grants. money English Language Fluency Act 10 September 1998    1998 Ron Paul 96:4 Although H.R. 3892 takes some small steps forward toward restoring local control of education, it takes a giant step backward by extending bilingual education programs for three years beyond the current authorization and according to CBO this will increase Federal spending by $719 million! Mr. Chairman, it is time that Congress realized that increasing Federal funding is utterly incompatible with increasing local control. The primary reason State and local governments submit to Federal dictates in areas such as bilingual education is because the Federal Government bribes States with moneys illegitimately taken from the American people to confer to Federal dictates. Since he who pays the piper calls the tune, any measures to take more moneys from the American people and give it to Federal educrats reduces parental control by enhancing the Federal stranglehold on education. Only by defunding the Federal bureaucracy can State, local and parental control be restored. money English Language Fluency Act 10 September 1998    1998 Ron Paul 96:6 Mr. Chairman, despite having some commendable features, such as eliminating consent decrees, the English Language Fluency Act, H.R. 3892, is not worthy of support because it authorizes increasing the Federal Government’s control over education dollars. I therefore call on my colleagues to reject this legislation and instead work for constitutional education reform by returning money and control over education to America’s parents through legislation such as the Family Education Freedom Act. money Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:3 These events only occur when governments and central banks are given arbitrary authority to create money and credit out of thin air. Paper money systems are notoriously unstable; and the longer they last, the more vulnerable they are to sudden and sharp downturns. money Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:5 But economic law dictates that adjustments will be made for all the bad investment decisions based on erroneous information about interest rates, the money supply, and savings. money Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:8 All this could have been prevented by a sound monetary system, one without a central bank that has monopoly power over money and credit and pursues central economic planning. My concern is profound. The retirement and savings of millions of Americans are jeopardized. Economic growth could be reversed sharply and quickly as it already has in the Asian countries. Budget numbers will need to be sharply revised. money Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:11 The sooner we understand the nature of the problem and start serious discussions on how to restore soundness to our money the sooner we can secure the savings, investments, and retirements of all Americans. money Head Start Program 14 September 1998    1998 Ron Paul 99:6 Congress should also reject S. 2206 because it reauthorizes the Low Income Heating and Energy Program (LIHEAP). LIHEAP is an unconstitutional transfer program which has outlived its usefulness. LIHEAP was instituted in order to help low-income people deal with the high prices resulting from the energy crisis of the late seventies. However, since then, home heating prices have declined by 51.6% residential electricity prices have declined by 25% and residential natural gas prices have declined by 32.7%. Furthermore, the people of Texas are sending approximately $43 million more taxpayer dollars to Washington for LIHEAP than they are receiving in LIHEAP funds. There is no moral or constitutional justification for taking money from Texans, who could use those funds for state and local programs to provide low-income Texans with relief from oppressive heat, to benefit people in other states. money Dollars To The Classroom Act 18 September 1998    1998 Ron Paul 101:2 If H.R. 3248 did not increase Federal expenditures, my support would be unenthusiastic at best as the system of block grants established by this bill continue the unconstitutional practice of taking money from taxpayers and redistributing it to other states. The Federal Government lacks constitutional authority to carry out this type of redistribution between states and taxpayers, regardless of whether the monies are redistributed through Federal programs or through grants. There is no “block grant exception” to the principles of federalism embodied in the United States Constitution. money Dollars To The Classroom Act 18 September 1998    1998 Ron Paul 101:5 Under the revised version of H.R. 3248, states can only spend their block grant money on one or more of the programs supposedly repealed by the Federal Government! In fact, this bill is merely one more example of “mandate federalism” where states are given flexibility to determine how best to fulfill goals set by Congress. Granting states the authority to select a particular form of federal management of education may be an improvement over the current system, but it is hardly a restoration of state and local control over education! money Dollars To The Classroom Act 18 September 1998    1998 Ron Paul 101:11 Furthermore, by increasing the flow of federal money to state and local educrats, rather than directly increasing parental control over education through education tax credits and tax cuts, the effect will be to make state and local officials even less responsive to parents. I wish to remind my colleagues that many state and local education officials support the same programs as the federal educrats. The officials responsible for the genital exams of junior high school girls in Pennsylvania should not be rewarded with more federal taxpayers’ dollars to spend as they wish. money Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:4 But last night an emergency meeting was called by the Federal Reserve Bank of New York. It was not called by the banks and the security firms that were standing to lose the money, but the Federal Reserve Bank of New York called an emergency meeting late last night. Some of the members of this meeting, the attendees, came back from Europe just to attend this meeting because it was of such a serious nature. They put together a package of $3.5 billion to bail out this company. money Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:5 Yesterday also Greenspan announced that he would lower interest rates. I do not think this was an accident or not coincidental. It was coincidental that at this very same time they were meeting this crisis, Greenspan had to announce that, yes indeed, he would inflate our currency, he would expand the money supply, he would increase the credit, he would lower interest rates. At least that is what the markets interpreted his statement to mean. And the stock market responded favorably by going up 257 points. money Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:10 We need to have a revamping of the monetary system, but certainly it cannot be saved, it cannot be improved, by more paper money out of thin air, and that is what the Federal Reserve System is doing. money Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:11 I would like to remind my colleagues that when the Federal Reserve talks about lowering interest rates, like Mr. Greenspan announced yesterday, or alluded to, this means that the Federal Reserve will create new credit. Where do they get new credit and new money? They get it out of thin air. This, of course, will lower interest rates in the short run and this will give a boost to a few people in trouble and it will bail out certain individuals. money Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:13 So when we go this next step of saying, yes, we must bail out the system by creating new dollars, it means that we are attacking the value of the money. When we do this, we steal the value of the money from the people who already hold dollars. money Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:16 Well, I do not think the American people can afford it. We do have a financial bubble, but financial bubbles are caused by the creation of new credit from central banks. Under a sound monetary system you have a commodity standard of money where politicians lose total control. Politicians do not have control and they do not instill trust into the paper money system. money Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:17 But we go one step further. The Congress has reneged on its responsibility and has not maintained the responsibility of maintaining value in the dollar. It has turned it over to a very secretive body, the Federal Reserve System, that has no responsibility to the U.S. Congress. So I argue for the case of watching out for the dollar and argue for sound money, and not to allow this to progress any further. money World Financial Markets 1 October 1998    1998 Ron Paul 104:4 There have been no restraints on the world monetary managers to expand their money supplies, fix short-term interest rates or deliberately debase their currencies. Although. money World Financial Markets 1 October 1998    1998 Ron Paul 104:5 Short-term benefits were enjoyed, it is clear now they were not worth the resulting chaos. We need not look for the cause which puts the dollar, our economy and our financial markets at risk. The previous boom supported by the illusion of wealth coming from money creation is the cause of current world events, and it guarantees further unwinding of the speculative orgy of the past decades. money World Financial Markets 1 October 1998    1998 Ron Paul 104:10 No amount of regulation could have prevented or in the future prevent the inevitable mistakes made in an economy that is misled by rigged interest rates or a money supply dictated by central planners in a fiat money system. Hedge fund operations, because they are international in scope, are impossible to regulate and for the current ongoing crisis it is too late anyway. money World Financial Markets 1 October 1998    1998 Ron Paul 104:11 Credit conditions that allow a company with less than $1 billion in capital to buy $100 billion worth of stock with borrowed money and manage $1.2 trillion worth of derivatives is about as classic an example as one could ever find of speculative excess brought on by easy credit. As long as capital is thought to come from a computer at the Federal Reserve and not from savings, the financial problems the world faces today will persist. money World Financial Markets 1 October 1998    1998 Ron Paul 104:12 Our problems today should not be used to justify a worldwide central bank, as has been proposed. What we need is sound money without the central planning efforts of a Federal Reserve system fixing interest rates and regulating the money supply. Let us give freedom a chance. money Hedge Fund Bailout 2 October 1998    1998 Ron Paul 105:3 Although derivatives are a relatively recent development in financial markets, their use by corporations, pension and mutual funds, financial institutions, governments and those involved in money management are clearly ascendant, according to the Federal Reserve and other federal agencies. The issue is not whether the government should ban or in some way restrict the prudent use of derivatives to hedge risk. Rather, the issue is one of disclosure, i.e., how best to provide increased transparency as our complex international financial system enters the 21st Century. money Hedge Fund Bailout 2 October 1998    1998 Ron Paul 105:4 Three years ago I addressed the very same issue in Michigan by authoring state legislation that provided increased transparency by requiring units of government to disclose their derivative holdings to the public. Government units have to make investment decisions regarding the money they receive or retain; unfortunately, investment practices and decisions can sometimes lead to significant losses when taxdollars are unwisely invested in derivatives. Orange County in California and Independence Township in Oakland County, Michigan are both examples of government units that experienced significant losses as a result of the imprudent use of derivatives. money Iraq — Part 1 5 October 1998    1998 Ron Paul 107:7 Not too long ago, a few years back, in 1980s, in our efforts to bring peace and democracy to the world we assisted the freedom fighters of Afghanistan, and in our infinite wisdom we gave money, technology and training to Bin Laden, and now, this very year, we have declared that Bin Laden was responsible for the bombing in Africa. So what is our response, because we allow our President to pursue war too easily? What was the President’s response? Some even say that it might have been for other reasons than for national security reasons. So he goes off and bombs Afghanistan, and he goes off and bombs Sudan, and now the record shows that very likely the pharmaceutical plant in Sudan was precisely that, a pharmaceutical plant. money Iraq — Part 1 5 October 1998    1998 Ron Paul 107:11 This policy makes no sense. Some day we have to think about the security of United States. We spend this money. We spent nearly $100 million bombing nobody and everybody for who knows what reason last week. At the same time our military forces are under trained and lack equipment, and we are wasting money all around the world trying to get more people, see how many people we can get to hate us. Some day we have to stop and say why are we pursuing this. Why do we not have a policy that says that we should, as a Congress, defend the United States, protect us, have a strong military, but not to police the world in this endless adventure of trying to be everything to everybody. We have been on both sides of every conflict since World War II. Even not too long ago they were talking about bombing in Kosovo. As a matter of fact, that is still a serious discussion. But a few months ago they said, well, we are not quite sure who the good guys are, maybe we ought to bomb both sides. It makes no sense. Why do we not become friends to both sides? money Iraq — Part 1 5 October 1998    1998 Ron Paul 107:15 As my colleagues know, at the end of this bill I think we get a hint as to why we do not go to Rwanda for humanitarian reasons. Now there is some atrocities. Why do we not clean that mess up? Because I believe very sincerely that there is another element tied into this, and I think it has something to do with money, and I think it has something to do with oil. The oil interests need the oil in Iraq, and he does not, Saddam Hussein does not, comply with the people of the west. So he has to go. money Iraq — Part 1 5 October 1998    1998 Ron Paul 107:16 But also at the end of this legislation it tells us something about what might be going on. It is they are asking to set up and check into the funds that Saddam Hussein owes to the west. Who is owed? They do not owe me any money. But I will bet my colleagues there is a lot of banks in New York who are owed a lot of money, and this is one of the goals, to set up and make sure Saddam Hussein pays his bills. money Iraq — Part 1 5 October 1998    1998 Ron Paul 107:18 Under the appropriations it is endless, it is open, endless, and here we are concerned about saving Social Security. Any amount of money spent on this bill comes out of Social Security. Yes, there was yelling and screaming about a tax cut. Oh, it is coming out of Social Security. Well, this money is not appropriated, and it is such sums as necessary for military and economic benefits. After we get rid of one thug, we are going to have it in. I hope we make a better choice than we did with Bin Laden. I mean he was our close ally. money Iraq — Part 2 5 October 1998    1998 Ron Paul 108:12 This is a policy we have been following for way too long. It costs a lot of money. It costs a lot of respect for law because, technically, it is not legal. Waging war should only occur when the Congress and the people decide this. But to casually give more and more authority to the President to do this and encourage him to bump off dictators is a dangerous precedent to set. money Iraq — Part 3 5 October 1998    1998 Ron Paul 109:7 Mr. Speaker, let me just close by talking a little bit about this authorization. It says, there are to be authorized appropriations, such sums as may be necessary to reimburse the applicable appropriation funds. This is what the money is to go for: Defense articles, defense services, military education, and training. Sounds like getting ready for the Bay of Pigs. That is exactly what we did. And then we backed off, we were not doing it for the right reason, and of course we have solidified for 40 years the dictatorship in Cuba. money Iraq — Part 3 5 October 1998    1998 Ron Paul 109:10 Mr. PAUL. Mr. Speaker, reclaiming my time, I think it would be absolutely proper to do that, as long as it came out of the gentleman’s wallet and we did not extract it from somebody in this country, a taxpayer at the point of a gun and say, look, bin Laden is a great guy. I want more of your money. money Lake Texana 7 October 1998    1998 Ron Paul 111:4 Texas has already demonstrated sound management of this resource. Recreational use of the lake has been well-provided under Texas state management to include provision of a marina, pavilion, playground, and boating docks, all funded without federal money. Additionally, a woodland bird sanctuary and wildlife viewing area will also be established upon transfer with the assistance of the Texas Parks and Wildlife Department and several environmental organizations. money Recognizing The Hays County 4-H Annual Dinner, Dance And Auction 7 October 1998    1998 Ron Paul 112:2 Head, Hand, Hearts and Health, these are the “4–H’s” and they are truly indicative of what this organization is all about. One of the primary missions that this organization undertakes is agricultural education. Earlier this year I introduced a bill which would exempt the sale of livestock by those involved in educational activities such as FFA and 4–H from federal income taxation. By making young men and women who participate in these activities hire a group of tax accountants and attorneys we are sending the wrong message. Young people who sell livestock at county fairs and the like should be rewarded for taking self initiative and allowed to keep the money they’ve earned to help pay for their education or to re-invest in other animals to raise. My bill would eliminate the current policy of forcing these youngsters to visit the tax man. money Recognizing The Fayette County 4-H Annual Banquet 7 October 1998    1998 Ron Paul 113:2 Head, Hand, Hearts and Health, these are the “4–H’s” and they are truly indicative of what this organization is all about. One of the primary missions that this organization undertakes is agricultural education. Earlier this year I introduced a bill which would exempt the sale of livestock by those involved in educational activities such as FFA and 4–H from federal income taxation. By making young men and women who participate in these activities hire a group of tax accountants and attorneys we are sending the wrong message. Young people who sell livestock at county fairs and the like should be rewarded for taking self initiative and allowed to keep the money they’ve earned to help pay for their education or to re-invest in other animals to raise. My bill would eliminate the current policy of forcing these youngsters to visit the tax man. money New Global Economic Plan 9 October 1998    1998 Ron Paul 117:6 The proposal of the Group of 22 to regulate capital flows through a new “World Central Bank” prevents any effort to restore efficient market mechanisms and prevents any serious discussion for using gold as the money of choice. money New Global Economic Plan 9 October 1998    1998 Ron Paul 117:7 All money managers in major countries decry currency controls by any individual country yet are now about to embark on a new world-wide approach to regulating all capital flows — a global economic plan to socialize all world credit. But, it won’t work because the plan is deeply and inherently flawed. money New Global Economic Plan 9 October 1998    1998 Ron Paul 117:12 Instead, we should be talking about abandoning the paper money system we have lived with for 27 years. It has, after all, brought us the current world-wide financial mess. money New Global Economic Plan 9 October 1998    1998 Ron Paul 117:13 Free markets and stable money should be our goal, not further institutionalizing of world economic planning and fiat money at the sacrifice of personal liberty. Indeed, we need a serious discussion of the current crisis but so far no one should be encouraged by the direction in which the Group of 22 is going. Our responsibility here in the Congress is to protect the dollar, not to sit idly by as it’s being deliberately devalued. money Medicare Home Health And Veterans Health Care Improvement Act Of 1998 9 October 1998    1998 Ron Paul 118:4 A member of my staff has been informed by a small home health care operator in my district that passage of this bill would allow them only to provide an additional eight visits per year. This will not keep home health patients with complex medical conditions out of nursing homes and hospitals. Congress should implement a real, budget-neutral home health care reform rather than waste our time and the taxpayers’ money with the phony reform before us today. money Monetary Policy 16 October 1998    1998 Ron Paul 120:4 A world-wide system of fiat money is the root of the crisis. The post-World War II Bretton Woods gold-exchange system was seriously flawed, and free market economists from the start predicted its demise. Twenty-seven years later, on August 15, 1971, it ended with a bang ushering in its turbulent and commodity-driven inflation of the 1970’s. money Monetary Policy 16 October 1998    1998 Ron Paul 120:6 Just as the Bretton Woods system was never repaired due to its flaws, so too will it be impossible to rebuild the floating rate system of the past 27 years. The sooner we admit to its total failure, and start planning for sound money, the better. money Monetary Policy 16 October 1998    1998 Ron Paul 120:8 The constitutional or credit restraint of a commodity standard of money offers stability and non-inflationary growth but does not accommodate the special interests that demand benefits bigger and faster than normal markets permit. The only problem is the financial havoc that results when the unsound system is forced into a major correction which are inherent to all fiat systems. money Monetary Policy 16 October 1998    1998 Ron Paul 120:10 If the problem were merely that there were not enough money, then money creation alone could make us all millionaires and no one would have to work. But increasing the money supply does not increase wealth. Only work and savings do that. The deception comes because, for a while for the luck few, benefits are received when government inflate the currency and pass it out for political reasons. money Monetary Policy 16 October 1998    1998 Ron Paul 120:11 But in time — and that time is now — it comes to an end. Even the beneficiaries suffer the inevitable consequences of a philosophy that teaches wealth comes from money creation and that central banks are acceptable central economic planners — even in countries such as the United States where many pay lip service to free markets and free trade. money Monetary Policy 16 October 1998    1998 Ron Paul 120:14 First, the Federal Reserve should be denied the power to fix interest rates and buy government debt. It should not be central economic planner through manipulation of money and credit. money Monetary Policy 16 October 1998    1998 Ron Paul 120:19 Short of a free market, sound money approach will guarantee a sustained attack on personal liberty as governments grow more authoritarian and militaristic. money Education Debate 16 October 1998    1998 Ron Paul 121:8 So, even when Congress resists one proposal to further nationalize education, it supports another form of nationalization. Some Members will claim they are resisting nationalization and even standing up for the 10th amendment by fighting to spend billions of taxpayer dollars on block grants. These Members say that the expenditure levels do not matter, it is the way the money that is spent which is important. Contrary to the view of these well-meaning but misguided members, the amount of taxpayer dollars spent on Federal education programs do matter. money Resolution On Saddam Hussein 17 December 1998    1998 Ron Paul 124:11 As Americans we are rightly offended by the notion that the Chinese Government has influenced our domestic elections. However, we are not free from hypocrisy. For recently this Congress passed legislation appropriating money for the sole and express purpose of changing the government of a sovereign nation. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:4 The Founders of this great Nation abhorred tyranny and loved liberty. The power of the king to wage war, tax and abuse the personal rights of the American colonists drove them to rebel, win a revolution and codify their convictions in a new Constitution. It was serious business, and every issue was thoroughly debated and explained most prominently in the Federalist Papers. Debate about trade among the States and with other countries, sound money and the constraints on presidential power occupied a major portion of their time. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:7 Recent flagrant abuse of the power to wage war by modern-day Presidents, including the most recent episodes in Iraq, Afghanistan and Sudan, should prompt this Congress to revisit this entire issue of war powers. Certain abuses of power are obviously more injurious than others. The use of the FBI and the IRS to illegally monitor and intimidate citizens is a power that should be easy to condemn, and yet it continues to thrive. The illegal and immoral power to create money out of thin air for the purpose of financing a welfare-warfare state serving certain financial interests while causing the harmful business cycle is a process that most in Washington do not understand nor care about. These are ominous powers of great magnitude that were never meant to be permitted under the Constitution. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:32 On another issue, privacy, privacy is the essence of liberty. Without it, individual rights cannot exist. Privacy and property are interlocked and if both are protected, little would need to be said about other civil liberties. If one’s home, church or business is one’s castle, and the privacy of one’s person, papers and effects are rigidly protected, all rights desired in a free society will be guaranteed. Diligently protecting the right to privacy and property guarantees religious, journalistic and political experience, as well as a free market economy and sound money. Once a careless attitude emerges with respect to privacy, all other rights are jeopardized. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:55 Financial privacy must be sacrificed, it is argued, in order to catch money launderers, drug dealers, mobsters and tax cheats. Privacy for privacy’s sake, unfortunately for many, is a nonissue. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:56 The recent know-your-customer plan was designed by Richard Small, Assistant Director of the Division of Banking Supervision Regulation at the Federal Reserve. He is not happy with all of the complaints that he has received regarding this proposal. His program will require that every bank keep a detailed profile on every customer, as to how much is deposited, where it comes from, and when and how the money is spent. If there is any deviation from the profile on record, the bank is required to report this to a half dozen government agencies, which will require the customer to do a lot of explaining. This program will catch few drug dealers, but will surely infringe on the liberty of every law-abiding citizen. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:69 The U.S.’s ability to inflate has been dramatically enhanced by other countries’ willingness to absorb our inflated currency, our dollar being the reserve currency of the world. Foreign central banks now hold in reserve over $600 billion, an amount significantly greater than that even held by our own Federal Reserve System. Our economic and military power gives us additional license to inflate our currency, thus delaying the inevitable correction inherent in a paper money system. But this only allows for a larger bubble to develop, further jeopardizing our future economy. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:72 From December 1996, at the time that Greenspan made this statement, to December 1998, the money supply soared. Over $1 trillion of new money, as measured by M–3, was created by the Federal Reserve. MZM, another monetary measurement, is currently expanding at a rate greater than 20 percent. This generous dose of credit has sparked even more irrational exuberance, which has taken the Dow to over 9,000 for a 30 percent increase in just two years. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:81 The most astute money manager cannot balance inflation against deflation as long as there is continued credit expansion. The system inevitably collapses, as it finally did in Japan in the 1990s. Even the lack of the CPI inflation as reported by the Federal Reserve is suspect. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:85 But this, although helpful to banks lending overseas, has clearly failed, has cost a lot of money, and prevents the true market correction of liquidation of debt that must eventually come. The longer the delay and the more dollars used, the greater the threat to the dollar in the future. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:88 The Constitution is clear that the Congress has responsibility for guaranteeing the value of the currency, and no authority has ever been given to create a central bank. Creating money out of thin air is counterfeiting, even when done by a bank that the Congress tolerates. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:89 It is easy to see why Congress, with its own insatiable desire to spend money and perpetuate a welfare and military state, cooperates with such a system. A national debt of $5.6 trillion could not have developed without a willing Federal Reserve to monetize this debt and provide for artificially low interest rates. But when the dollar crisis hits and it is clearly evident that the short-term benefits were not worth it, we will be forced to consider monetary reform. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:90 Reconsidering the directives given us in the Constitution with regard to money would go a long way towards developing a sound monetary system that best protects our economy and guides us away from casually going to war. Monetary reform is something that we ought to be thinking about now. money Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:91 Mr. Speaker, let me summarize. We in the Congress, along with the President, will soon have to make a decision that will determine whether or not the American republic survives. Allowing our presidents to wage war without the consent of Congress, ignoring the obvious significance of fiat money to a healthy economy, and perpetuating pervasive government intrusion into the privacy of all Americans will surely end the American experiment with maximum liberty for all unless we reverse this trend. money President Should Get Authority From Congress To Send Troops 9 February 1999    1999 Ron Paul 5:6 It would be much better for us to spend this money that is being wasted in Bosnia and Iraq on our national defense. We spend less and less money every year on national defense but we spend more and more money on policing the world. I think that policy ought to change and it is the responsibility of the Congress, the body that has control of the purse strings, to do something about this. money President Should Get Authority From Congress To Send Troops 9 February 1999    1999 Ron Paul 5:10 The issue here is money, but there is also a bigger issue and that is the responsibility that we have to decide when troops should be sent. Once troops are sent into a foreign country, it is very difficult for us to bring our troops home. money Introducing Legislation To Prevent Expansion Of American Military Intervention Without Congressional Approval 11 February 1999    1999 Ron Paul 6:2 I have introduced legislation that will prevent the President from sending troops to further expand our intervention around the world without congressional approval. This is very, very important. We are spending so much money on intervention in so many countries around the world at the same time our national defense is being diminished. Worst of all, the President is planning to put these thousands of troops under a British commander. money Introducing The Family Education Freedom Act 2 March 1999    1999 Ron Paul 11:5 Today, Congress can fulfill the wishes of the American people for greater control over their children’s education by simply allowing parents to keep more of their hard-earned money to spend on education rather than force them to send it to Washington to support education programs reflective only of the values and priorities of Congress and the federal bureaucracy. money War Power Authority Should Be Returned To Congress 9 March 1999    1999 Ron Paul 13:7 Some claim that the Kosovo involvement must be clarified as to where the money will come to finance it, the surplus or Social Security. This misses the point. We have and should exert the power of the purse, but a political argument over surpluses versus Social Security is hardly the issue. money War Power Authority Should Be Returned To Congress 9 March 1999    1999 Ron Paul 13:10 In the case of Kosovo, no troops should be sent without the consent of Congress. Vague discussion about whether or not the money will come out of Social Security or the budget surplus or call for an exit strategy will not suffice. If the war power is taken from the President and returned to the Congress, we would then automatically know the funds would have to be appropriated and the exit strategy would be easy: when we win the war. money Opposing Authorization for Kosovo Intervention 11 March 1999    1999 Ron Paul 17:4 We must remember that there are various things involved here. First, whether or not we should be the world policeman. That answer should be easy. We should not be. It costs a lot of money to do what we are doing, and it undermines our military strength. So we should consider that. money Kosovo War Resolution 11 March 1999    1999 Ron Paul 18:12 We have the ultimate power, and that is the power of the purse. If the power of the purse is given up, then we lose everything. Because we have not assumed our responsibilities up until this point, it is up to us to declare that the President cannot spend money in this manner. I have legislation that would take care of this; that the President cannot place troops in Kosovo unless he gets explicit authority from us to do so. If he does it, the monies should be denied to the President, unless we want to be complicit in this dangerous military adventurism. money Why Taxes Are High 15 April 1999    1999 Ron Paul 27:4 This is a token effort to move in the right direction of eliminating taxes. Big government is financed in three different ways. First, we borrow money. Borrowing is legal under the Constitution, although that was debated at the Constitutional Convention, and the Jeffersonians lost. Someday we should deal with that. We should not be able to borrow to finance big government. money Opposing Congressional Medal of Honor for Rosa Parks 20 April 1999    1999 Ron Paul 28:1 Mr. PAUL. Mr. Speaker, I rise today in opposition to H.R. 573. At the same time, I rise in great respect for the courage and high ideals of Rosa Parks who stood steadfastly for the rights of individuals against unjust laws and oppressive governmental policies. However, I oppose the Congressional Gold Medal for Rosa Parks Act because authorizing $30,000 of taxpayer money is neither constitutional nor, in the spirit of Rosa Parks who is widely recognized and admired for standing up against an overbearing government infringing on individual rights. money Opposing Congressional Medal of Honor for Rosa Parks 20 April 1999    1999 Ron Paul 28:3 Perhaps we should begin a debate among us on more appropriate processes by which we spend other people’s money. Honorary medals and commemorative coins, under the current process, come from allocated other people’s money. We should look for another way. money Opposing Congressional Medal of Honor for Rosa Parks 20 April 1999    1999 Ron Paul 28:4 It is, of course, easier to be generous with other people’s money. money Individuals with Disabilities Act (IDEA) 4 May 1999    1999 Ron Paul 36:2 The drafters of this bill claim that increasing federal spending on IDEA will allow local school districts to spend more money on other educational priorities. However, because an increase in federal funding will come from the same taxpayers who currently fund the IDEA mandate at the state and local level, increasing federal IDEA funding will not necessarily result in a net increase of education funds available for other programs. In fact, the only way to combine full federal funding of IDEA with an increase in expenditures on other programs by state and localities is through massive tax increases at the federal, state, and/or local level! money Pell Grants 4 May 1999    1999 Ron Paul 37:4 Instead of increasing federal expenditures, Mr. Speaker, this Congress should respond to the American people’s demand for increased support of higher education by working to pass bills giving Americans tax relief. For example, Congress should pass H.R. 1188, a bill I am cosponsoring which provides a tax deduction of up to $20,000 for the payment of college tuition. I am also cosponsoring several pieces of legislation to enhance the tax benefit for education savings accounts and pre-paid tuition plans to make it easier for parents to save for their children’s education. Although the various plans I have supported differ in detail, they all share one crucial element. Each allows individuals the freedom to spend their own money on higher education rather than forcing taxpayers to rely on Washington to return to them some percentage of their own tax dollars to spend as bureaucrats see fit. money Kosovo War Is Illegal 5 May 1999    1999 Ron Paul 40:2 This war is immoral because Serbia did not commit aggression against us. We were not attacked and there has been no threat to our national security. This war is illegal. It is undeclared. There has been no congressional authorization and no money has been appropriated for it. The war is pursued by the U.S. under NATO’s terms, yet it is illegal even according to NATO’s treaty as well as the U.N. charter. The internationalists do not even follow their own laws and do not care about the U.S. Constitution. money Kosovo War Is Illegal 5 May 1999    1999 Ron Paul 40:17 Saying the new appropriations will be used to beef up a neglected defense does not make it so. Defense funds are fungible. The President has proven this by waging a war for a month without any authorization or appropriation. Congress will no more control the next $13 billion than the money the President has already spent on the war. money More Money For War Not The Answer 6 May 1999    1999 Ron Paul 42:2 Mr. Speaker, I rise in support of the rule. The rule is far from perfect, but it allows adequate debate, and it will certainly allow us who think that it is unwise to increase the spending to vote against the spending. It certainly allows an opportunity for those who think that we should double the spending to explain why we should spend so much money on a war that we have not declared. money More Money For War Not The Answer 6 May 1999    1999 Ron Paul 42:4 Mr. Speaker, there is a fallacy, that floats around this House that says that if we increase the funding for the military, we will have greater defense. That reminds me of the accusation from the right that always challenges the left that says, if there is a social problem, all you want ever to do is throw more money at it. The worse the problem gets, the more money they want to spend on the social problem. money More Money For War Not The Answer 6 May 1999    1999 Ron Paul 42:5 It seems like the worse our defense gets and the more we get into quagmires around the world and the more we accept the policy of policing the world, all we seem to do is come back and say, well, if we just put more money in it, everything is going to be okay. money More Money For War Not The Answer 6 May 1999    1999 Ron Paul 42:6 But if we are in a quagmire, if we are following a policy that is unwise, the money might just make conditions much worse. I think this is why we must defeat the spending on this program, because the problems with what is happening in Bosnia and Kosovo and Iraq will be compounded as long as the administration has the money to fund the war. money More Money For War Not The Answer 6 May 1999    1999 Ron Paul 42:7 Yes, I am for a strong national defense, but if the policy is wrong, it will undermine all the spending. The money will actually be wasted. Funding encourages a policy that is in error. Funding is an endorsement of the war. We must realize that it is equivalent to it. We have not declared this war. If we fund it, we essentially become partners in this ill-advised war. money No Billions In Appropriations Can Make Our Foreign Policy Effective 13 May 1999    1999 Ron Paul 46:9 Thus or contortions and distortions that have led to dilemmas in our thoughts and dilemmas in our policy have led also to real paradoxes. Because our policy of globaloney is so bad, so unprincipled and so bound up with the notions of interventionism, we now face this strange truth: we ought to spend less on our military but we should spend more on defense. Our troops are underpaid, untertrained and poorly outfitted for the tasks we have given them. We are vulnerable to missile attack, and how do we spend our constituents money? What priorities have we set in this body? We vote to purchase a few more bombs to drop over Serbia or Iraq. money Supplemental Appropriations 18 May 1999    1999 Ron Paul 47:3 We are asking the President to seek reimbursement from NATO members since we have assumed the financial burden for fighting this war. This has tremendous appeal but cannot compensate for the shortsightedness of spending so much in the first place. The money may well never be recouped from our allies, and even if some of it is it only encourages a failed policy of military adventurism. If this policy works, the United States, at Congress’ urging, becomes a hired gun for the international order, a modern day government mercenary. This is not constitutional and it is a bad precedent to set. money Supplemental Appropriations 18 May 1999    1999 Ron Paul 47:15 NATO must admit its mistake in entering this civil war. It violates the NATO treaty and the U.N. Charter, as well as the U.S. Constitution. The mission has failed. The policy is flawed. Innocent people are dying. It is costing a lot of money. It is undermining our national security and there are too many accidents. money Opposing Supplemental Appropriation 18 May 1999    1999 Ron Paul 48:4 We have spoken out on the air war. We did not even endorse the air war. And the President has spent a lot of money. They are hoping to get a lot of this money back from the European nations, but all that makes us are professional mercenaries fighting wars for other people, which I do not agree with. money Opposing Supplemental Appropriation 18 May 1999    1999 Ron Paul 48:5 But here we are getting ready to fund Europe, fund a war that is undeclared. It does not make any sense. We are giving more money to the President than he asked for in a war that cannot be won and a war that we are not even determined to fight. It just does not make any sense. So in order to get enough votes to pass the bill, of course we put a little bit of extras on there to satisfy some special interests in order to get some more votes. money National Center For Missing And Exploited Children 25 May 1999    1999 Ron Paul 51:1 Mr. PAUL. Mr. Speaker, organizations like the Center for Missing and Exploited Children should be commended and supported for their work on this critical issue. However, I must oppose this legislation as it is outside the proper Constitutional role for the federal government to spend money in this way; such spending is more appropriate coming from the states and private donations. As always, I am amazed that Members of Congress are so willing to be generous with their constituent’s tax dollars, yet do not seem willing to support such causes out of their own pockets. money National Center For Missing And Exploited Children 25 May 1999    1999 Ron Paul 51:2 This legislation would spend more than $268 million on issues that are simply outside the constitutional jurisdiction of the federal government. In addition, legislation like this blurs the lines between public and private funds, and opens good organizations to needless regulatory control for Congress. The legislation even opens the door to public money being used to support sectarian organizations, in direct violation of the First Amendment. money Quietly Restoring Funding For War In Kosovo 27 May 1999    1999 Ron Paul 53:5 We could have had a bill that made a statement against spending this money to perpetuate this illegal NATO war, and yet it was explicitly removed from the bill. I think this is reason to question the efforts on this rule. Certainly it should challenge all of us on the final passage of this bill, because much of this money will not be spent on the national defense, but to perpetuate war, which is a direct distraction from our national defense because it involves increasing threats to our national security. It does not protect our national security. money Quietly Restoring Funding For War In Kosovo 27 May 1999    1999 Ron Paul 53:6 It might be well to also note that this bill does not do much more for fiscal conservatives. The President asked for a certain amount for the defense of this country, but we have seen fit to raise him more than $8 billion, spend more money, more money that is so often not spent in our national defense. At the same time, we must also remember that when we vote on this bill, and this rule allows it, more than $10 billion will be in excess of the budget agreement of 1997. money A Positive Spin On An Ugly War 7 June 1999    1999 Ron Paul 54:3 Number two, NATO is on the verge of self-destruction. Since the purpose of NATO to defend against a ruthless Soviet system no longer exists, that is good, NATO, in choosing to break its own rules looks totally ineffective and has lost credibility. The U.S. can get out of NATO, come home, save some money and let Europe tend to its own affairs, and we can then contribute to peace, not war. money A Positive Spin On An Ugly War 7 June 1999    1999 Ron Paul 54:4 Number three, Tony Blair’s true character has now become known to the world. He has not only annoyed many Americans, but many Germans, French, Italians and Greeks as well. By Blair demanding more American bombs, money and the introduction of ground troops, many have become skeptical of his judgment. It is much easier now to challenge his influence over Bill Clinton and NATO, and that is not only good, but necessary. money A Positive Spin On An Ugly War 7 June 1999    1999 Ron Paul 54:5 Number four, more Americans every day are discovering that military spending is not equivalent to defense spending. This is a good start. It is clearly evident that when useless immoral wars are pursued, money is wasted, weapons are consumed, and national security is endangered, opposite to everything that is supposed to be achieved through defense spending. A foolish policy of foreign interventionism, no matter how much money is spent on the military, can never substitute for a sensible, pro-American policy of friendship and trade with all those countries willing to engage. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:6 The reformers’ argument is to stop us before we capitulate and before we capitulate to the special interest groups. Politicians unable to accept this responsibility clamor for a system that diminishes the need for politicians to persuade individuals and groups to donate money to their campaigns. Instead of persuasion, they endorse coercing taxpayers to finance campaigns. This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed and run. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:8 The quasi two-party system will become more entrenched by limiting the huge expenditures required to oust an incumbent. Alternative choices and third party candidates will be further handicapped if all the reforms proposed are passed. The media become a big winner. Their influence grows as the private money is regulated. It becomes more difficult to refute media propaganda, both print and electronic, when directed against a candidate if funds are limited. The wealthy gain a significant edge since it is clear candidates can spend unlimited personal funds in elections. This is a big boost for the independently wealthy candidates over the average challenger who needs to raise and spend large funds to compete. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:9 Celebrities will gain an even greater benefit than they already enjoy. Celebrity status is money in the bank, and by limiting the resources to counterbalance this advantage works against the noncelebrity who might be an issue-oriented challenger. The current reform effort ignores the legitimate and moral Political Action Committees that exist only for good reasons and do not ask for any special benefit from government. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:10 More regulation of political speech through control of private money without addressing the subject of influential government only drives the money underground, further giving a select group an advantage over the honest candidate who only wants smaller government. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:15 The reformers are sincere in their effort to curtail special interest influence on government, but his cannot be done while ignoring the control government has assumed over our lives and economy. Current reforms address only the symptoms while the root cause of the problem is ignored. Since reform efforts involve regulating political speech through control of political money, personal liberty is compromised. Tough enforcement of spending rules will merely drive the influence underground since the stakes are too high and much is to be gained by exerting influence over government—legal or not. The more open and legal campaign expenditures are, with disclosure, the easier it is for voters to know who’s buying influence from whom. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:17 Many reformers recognize this and either like the system or believe that it’s futile to bring about changes and argue that curtailing influence is the only option left even if it involves compromising political speech through regulating political money. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:20 Politicians unable to accept this responsibility clamor for a system that diminishes the need for politicians to persuade individuals and groups to donate money to their campaign. Instead of persuasion they endorse coercing taxpayers to finance campaigns. This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:22 The quasi-two party system will become more entrenched by limiting the huge expenditures required to oust an incumbent. Alternative choices and third-party candidates will be further handicapped if all the reforms proposed are passed. They will never qualify for equal treatment since all campaign laws are written by Republicans and Democrats. The same will be true when it comes to divvying up taxpayer’s money for elections. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:23 The media becomes a big winner. Their influence grows as private money is regulated. It becomes more difficult to refute media propaganda, both print and electronic, when directed against a candidate if funds are limited. Campaigns are more likely to reflect the conventional wisdom and candidates will strive to avoid media attacks by accommodating their views. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:25 Celebrities will gain even a greater benefit than they already enjoy. Celebrity status is money in the bank and by limiting the resources to counter-balance this advantage, works against the non-celebrity who might be an issue-oriented challenger. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:27 More regulation of political speech through control of private money, without addressing the subject of influential government only drives the money underground, further giving a select group an advantage over the honest candidate who only wants smaller government. money Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:29 We should demand disclosure so voters can decide if their Representatives in Congress are unduly influenced. But the best thing we could do is to encourage competition, which will be made worse if the reformers have their way. The majority of Americans are turned off with the system and don’t vote because they don’t believe they have a real choice. Signature requirements, filing fees, and rules written by the two major parties make it virtually impossible for alternative parties to compete if not independently rich or a celebrity. We should change these obstructive rules to encourage the majority of Americans, who now sit out the elections, to participate in the electoral process. Restricting political money and speech will only further hamper competition and discourage citizens from voting. money Mail Receiving Agencies 15 July 1999    1999 Ron Paul 75:8 Also, it is a great cost to these operators as well as to all the customers. The Post Office would mandate that a special address be placed on each piece of mail, indicating that they are receiving mail at one of these private post offices. This costs a lot of money. There will be a lot of mail returned. If these regulations had gone into effect this week, as had been planned, a lot of mail, to the tune of hundreds of thousands of pieces, if not millions, would have been returned to the senders, and they would not have been permitted to be delivered. money Exchange Stabilization Fund 15 July 1999    1999 Ron Paul 76:4 The Exchange Stabilization Fund was set up, I think in error; but it was set up for the purpose of stabilizing the dollar in the Depression. How did that come about? Well, it started with an Executive order. It started with an Executive order to take gold forcefully from the people. And then our President then revalued gold from $20 an ounce to $35 an ounce, and there was a profit and they took this profit and used some of those profits to start the Exchange Stabilization Fund. They set it up with $200 million. It does not seem like a whole lot of money today. How did it come about over these many years that this fund has been allowed to exist without supervision of this Congress, and now has reached to the size of $34 billion and we give it no oversight? It is supposed to send reports to us, very superficial reports to the Congress. We don’t know how they got $34 billion. They earned interest on some of the loans, and all the loans are paid back because the countries who get the loans borrow more money. money Africa Growth And Opportunity Act 16 July 1999    1999 Ron Paul 77:6 The Vietnam Waiver vote classification as a pro-free trade position is particularly indicative, however, of what now constitutes free trade in the alleged minds of the beltway elite. When government forces through taxation, citizens to forego consumption of their own choosing (in other words forego voluntary exchanges) so that government can send money to foreign entities (i.e. trade promotion), this in the mind of Washington insiders constitutes “free trade.” In other words, when demand curves facing the corporate elite are less than those desired, government’s help is then enlisted to shift the demand curve by forcing taxpayers to send money to various government and private entities whose spending patterns more favorably reflect those desired by those “engineering” such “free trade” policies in Washington. Much like tax cuts being a “cost to government” and “free trade associations” whose purpose it is to erect barriers, free trade has become government-coerced, taxpayer-financed foreign aid designed to result in specific private spending and private gains. money On The United Nations And Embassy Security 19 July 1999    1999 Ron Paul 78:3 But in typical fashion, about all we have been offered so far has been just to put more money into our embassies and never raising the question about why our embassies might be more vulnerable. My amendment deals with that, because I would like to deal with the foreign policy involved with our commitment to the United Nations. money Teacher Empowerment Act 20 July 1999    1999 Ron Paul 81:3 Furthermore, this bill provides increased ability for state and local governments to determine how best to use federal funds. However, no one should confuse this with true federalism or even a repudiation of the modern view of state and local governments as administrative agencies of the Federal Government. After all, the very existence of a federal program designed to “help” states train teachers limits a state’s ability to set education priorities since every dollar taken in federal taxes to fund federal teacher training programs is a dollar a state cannot use to purchase new textbooks or computers for students. This bill also dictates how much money the states may keep versus how much must be sent to the local level and limits the state government’s use of the funds to activities approved by Congress. money Teacher Empowerment Act 20 July 1999    1999 Ron Paul 81:5 Use of the funds by local school districts is also limited by the federal government. For example, local schools districts must use a portion of each grant to reduce class size, unless it can demonstrate to the satisfaction of the state that it needs the money to fund other priorities. This provision illustrates how this bill offends not just constitutional procedure but also sound education practice. After all, the needs of a given school system are best determined by the parents, administrators, community leaders, and, yes, teachers, closest to the students — not by state or federal bureaucrats. Yet this bill continues to allow distant bureaucrats to oversee the decisions of local education officials. money Teacher Empowerment Act 20 July 1999    1999 Ron Paul 81:7 In order to receive funding under this bill, states must provide certain guarantees that the state’s use of the money will result in improvement in the quality of the state’s education system. Requiring such guarantees assumes that the proper role for the Federal Government is to act as overseer of the states and localities to ensure they provide children with a quality education. There are several flaws in this assumption. First of all, the 10th amendment to the United States Constitution prohibits the Federal Government from exercising any control over education. Thus, the Federal Government has no legitimate authority to take money from the American people and use that money in order to bribe states to adopt certain programs that Congress and the federal bureaucracy believes will improve education. The prohibition in the 10th amendment is absolute; it makes no exception for federal education programs that “allow the states flexibility!” money Free Trade 27 July 1999    1999 Ron Paul 82:3 Open and free trade with all nations, short of war, should be pursued for two specific reasons. One, it’s a freedom issue; the right of the citizens of a free country to spend their money any way they see fit, anywhere in the world. And two, free trade provides the best deal for consumers allowing each to cast dollar votes with each purchase respecting quality and price. The foreign competition is a blessing in that it challenges domestic industries to do better. The Japanese car industry certainly resulted in American car manufacturers offering more competitive products. money Population Control 2 August 1999    1999 Ron Paul 84:2 Mr. Chairman, the amendment is straightforward. It prohibits the use of any money for population control, family planning, or abortion of any funds authorized in this bill, appropriated in this bill. money Population Control 2 August 1999    1999 Ron Paul 84:4 Mr. Chairman, I mention abortion because although this bill does not authorize funds directly for abortion, any birth control center that is involved that receives funds from us and are involved with abortion, all they do is shift the funds. All funds are fungible, so any country that we give money to that is involved with abortion, for whatever reason, or especially in a family planning clinic, can very easily shift those funds and perform abortions. So this is very, very clear-cut. money Population Control 2 August 1999    1999 Ron Paul 84:7 So it was very interesting to read exactly what the justification is. The Committee on Appropriations, quoting from the committee report, the Committee on Appropriations bases its authority to report this legislation from clause 7, section 9 of Article I of the Constitution of the United States of America, which states “no money shall be drawn from the Treasury but in consequence of appropriation made by law.” “Appropriations contained in this act,” the report says, “are made pursuant to this specific power granted by the Constitution.” money Population Control 2 August 1999    1999 Ron Paul 84:8 That is not a power. That was a prohibition. It was to keep us from spending money without appropriation. If this is true, we can spend money on anything in the world, and the Constitution has zero meaning. This cannot possibly be. money Fungible Birth Control Funds 2 August 1999    1999 Ron Paul 85:3 This is the reason I do strongly oppose Export-Import Bank money going to Red China. Their violations of civil liberties and abortions are good reasons why we should not do it, and yet they are the greatest recipient of our foreign aid from the Exim Bank. $5.9 billion they have received over the years. money Fungible Birth Control Funds 2 August 1999    1999 Ron Paul 85:5 So once we send money to a country for any reason, we endorse what they do. Therefore, we should be rather cautious. As a matter of fact, if we were cautious enough we would not be in the business of taking money at the point of a gun from our American taxpayer, doing things that they find abhorrent around the world and imposing our will and our standards on them. money Fungible Birth Control Funds 2 August 1999    1999 Ron Paul 85:8 Mr. Chairman, we do not have the authority to coerce our people to work hard, pay their taxes, and then take the money into foreign countries and impose our will on them. The CHAIRMAN. All time for debate has expired. The question is on the amendment offered by the gentleman from Texas (Mr. PAUL). The question was taken; and the Chairman announced that the noes appeared to have it. money Export-Import Bank, Overseas Private Investment Corp. and Trade And Development Agency 2 August 1999    1999 Ron Paul 86:4 China, for instance, receives the largest amount of money from the Export-Import Bank. Outstanding liabilities for the Export-Import Bank is now $55 billion. There is $5.9 billion that have been granted to the Chinese. money Export-Import Bank, Overseas Private Investment Corp. and Trade And Development Agency 2 August 1999    1999 Ron Paul 86:13 Sixty-seven percent of all the funding of the Export-Import Bank goes to, not a large number of companies, to five companies. I will bet my colleagues, if they look at those five companies in this country that gets 67 percent of the benefit and look at their political action records, my colleagues might be enlightened. I mean, I bet my colleagues we would learn something about where that money goes, because they are big corporations and they benefit, and they will have their defenders here. money Foreign Subsidies 2 August 1999    1999 Ron Paul 87:3 But the gentleman from Alabama (Mr. CALLAHAN) points out that, no, that is not true. The money does not go to Red China and they buy things; we just give it directly. We do not even send it round trip. This is true. money Foreign Subsidies 2 August 1999    1999 Ron Paul 87:4 We take taxpayers’ money. We take taxpayers’ guarantee. We give them to those huge five corporations that do 67 percent of the business. We give them the money. But where do the goods go? Do the goods go to the American taxpayers? No. They get all of the liabilities. The subsidies help the Chinese. money Foreign Subsidies 2 August 1999    1999 Ron Paul 87:5 So, technically, yes, we do not send the money there. But who is going to pay it back? The Chinese pays the loan back. If they default, who pays the bill if the Chinese defaults? Who pays the bill if they default? It is obviously the taxpayers. money Selective Service System 5 August 1999    1999 Ron Paul 89:4 As was described by the gentlewoman earlier, there will be an attempt early on. The first amendment that will come to the floor will be to put that money back in. money Selective Service System 5 August 1999    1999 Ron Paul 89:7 The draft is a 20th century phenomenon, and I am delighted to see and very pleased that the Committee on Appropriations saw fit to delete this money because this, to me, is reestablishing one of the American traditions, that we do not believe in conscription. Conscription and drafting is a totalitarian idea. money Selective Service System 5 August 1999    1999 Ron Paul 89:10 So when the time comes in September, please consider that there are ways that one can provide for an army without conscription. We have had the reinstitution of registration of the draft for 20 years. It has been wasted money. We can save the $25 million. We should do it. We should not put this money back in. We do not need the Selective Service System. money The Appropriation For The Selective Service System Should Not Be Reinstated 8 September 1999    1999 Ron Paul 90:1 Mr. PAUL. Madam Speaker, later today we will be dealing with the VA HUD bill; and I want to compliment the Committee on Appropriations for deleting the $24.5 million for the selective service system. There will be an attempt to put that money back into the bill. I think that is a serious mistake. money The Appropriation For The Selective Service System Should Not Be Reinstated 8 September 1999    1999 Ron Paul 90:2 The military has not asked for the selective service to continue. We do not need it. It is a serious abuse of civil liberties of all 18- and 19-year-old to continue this registration. The registration is totally unnecessary. This $24.5 million could be better spent on veterans’ affairs or some other worthy cause, but to put the money back in is a serious mistake. money Selective Service System 8 September 1999    1999 Ron Paul 91:4 Ronald Reagan was a strong opponent of the draft. He spoke out against it. We do not need it. It is wasted money. It is absolutely unnecessary. The Department of Defense has spoken out clearly that it is not necessary for national security reasons to have a selective service system, and yet we continually spend $24.5 million annually for this program. So I urge all Members, all my colleagues, to oppose putting this money back in for the Selective Service System. money Selective Service System 8 September 1999    1999 Ron Paul 92:3 This to me is a heroic step in the right direction. We have an agency of Government spending more than $24 million a year accomplishing nothing. We live in an age when we do not need a draft. We live in an age of technology that makes the draft obsolete. Not only is it unnecessarily militarily to have a draft, it is budgetarily not wise to spend this type of money. money Selective Service System 8 September 1999    1999 Ron Paul 92:10 It is very important that we consider not only this vote on fiscal reasons and where we are taking the money. Quite frankly, I would much rather see this money stay in the programs where, as a fiscal conservative, I would not have otherwise voted for those funds nay. But any funding of that sort is so much better on principle than voting to perpetuate a system that has no purpose other than to conscript. money Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:2 The reformers are sincere in their effort to curtail special interest influence on government, but this cannot be done while ignoring the control government has assumed over our lives and economy. Current reforms address only the symptoms while the root cause of the problem is ignored. Since reform efforts involve regulating political speech through control of political money, personal liberty is compromised. Tough enforcement of spending rules will merely drive the influence underground since the stakes are too high and much is to be gained by exerting influence over government — legal or not. The more open and legal campaign expenditures are, with disclosure, the easier it is for voters to know who’s buying influence from whom. money Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:4 Many reformers recognize this and either like the system or believe that it’s futile to bring about changes and argue that curtailing influence is the only option left even if it involves compromising the liberty of political speech through regulating political money. money Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:7 Politicians unable to accept this responsibility clamor for a system that diminishes the need for politicians to persuade individuals and groups to donate money to their campaign. Instead of persuasion they endorse coercing taxpayers to finance campaigns. money Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:8 This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed. Not only will politicians and bureaucrats gain influence over elections, other nondeservers will benefit. Clearly, incumbents will greatly benefit by more controls over campaign spending — a benefit to which the reformers will never admit. money Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:9 The media becomes a big winner. Their influence grows as private money is regulated. It becomes more difficult to refute media propaganda, both print and electronic, when directed against a candidate if funds are limited. Campaigns are more likely to reflect the conventional wisdom and candidates will strive to avoid media attacks by accommodating their views. money Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:11 Celebrities will gain even a greater benefit than they already enjoy. Celebrity status is money in the bank and by limiting the resources to counter-balance this advantage, works against the non-celebrity who might be an issue-oriented challenger. money Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:14 More regulation of political speech through control of private money, without addressing the subject of influential government only drives the money underground, further giving a select group an advantage over the honest candidate who only wants smaller government. money Stop Federal Funding for Schools 20 October 1999    1999 Ron Paul 107:2 Madam Chairman, I rise in opposition to this legislation. I know that the goal of everyone here is to have quality education for everyone in this country. I do not like the approach. The approach has been going on for 30 years with us here in the Congress at the national level controlling and financing education. But the evidence is pretty clear there has been no success. It is really a total failure. Yet the money goes up continuously. This year it is an 8 percent increase for Title I over last year. money Stop Federal Funding for Schools 20 October 1999    1999 Ron Paul 107:4 I just ask my colleagues to think about whether or not we should continue on this same course. I know the chairman of the committee has made a concerted effort in trying to get more local control over the schools, and I think this is commendable. I think there should be more local control. But I am also convinced that once the money comes from Washington, you really never can deliver the control back to the local authorities. So that we should give it serious thought on whether or not this approach is correct. money Elementary and Secondary Education Act (SEA) 21 October 1999    1999 Ron Paul 108:3 Supporters of a constitutional education policy should be heartened that Congress has finally recognized that simply throwing federal taxpayer money at local schools will not improve education. However, too many in Congress continue to cling to the belief that the “right federal program” conceived by enlightened members and staffers will lead to educational nirvana. In fact, a cursory review of this legislation reveals at least five new mandates imposed on the states by this bill; this bill also increases federal expenditures by $27.7 billion over the next five years — yet the drafters of this legislation somehow manage to claim with a straight face that this bill promotes local control! money Academic Achievement for All Students Freedom and Accountability Act (STRAIGHT “A’s”) 21 October 1999    1999 Ron Paul 109:2 The fact that this bill increases, however marginally, the ability of states and localities to control education, is a step forward. As long as the federal government continues to levy oppressive taxes on the American people, and then funnel that money back to the states to use for education programs, defenders of the Constitution should support all efforts to reduce the hoops through which states must jump in order to reclaim some of the people’s tax monies. money Academic Achievement for All Students Freedom and Accountability Act (STRAIGHT “A’s”) 21 October 1999    1999 Ron Paul 109:3 However, there are a number of both practical and philosophical concerns regarding this bill. While the additional flexibility granted under this bill will be welcomed by the ten states allowed by the federal overseers to participate in the program, there is no justification to deny this flexibility to the remaining forty states. After all, federal education money represents the return of funds illegitimately taken from the American taxpayers to their states and communities. It is the pinnacle of arrogance for Congress to pick and choose which states are worthy of relief from federal strings in how they use what is, after all, the people’s money. money Academic Achievement for All Students Freedom and Accountability Act (STRAIGHT “A’s”) 21 October 1999    1999 Ron Paul 109:10 Since the STRAIGHT “A’s” bill does give states an opportunity to break free of some federal mandates, supporters of returning the federal government to its constitutional limits should support it. However, they should keep in mind that this bill represents a minuscule step forward as it fails to directly challenge the federal government’s usurpation of control over education. Instead, this bill merely gives states greater flexibility to fulfill federally-defined goals. Therefore, Congress should continue to work to restore constitutional government and parental control of education by defunding all unconstitutional federal programs and returning the money to America’s parents so that they may once again control the education of their children. money Introduction Of Public Safety Tax Cut Act 21 October 1999    1999 Ron Paul 110:6 Next, this legislation would also provide paid professional police and fire officers with a $1,000 per year tax credit. These professional public safety officers put their lives on the line each and every day, and I think we all agree that there is no way to properly compensate them for the fabulous services they provide. In America we have a tradition of local law enforcement and public safety provision. So, while it is not the role of our federal government to increase the salaries of these, it certainly is within our authority to increase their take-home pay by reducing the amount of money that we take from their pockets via federal taxation, and that is something this bill specifically does as well. money Pain Relief Promotion Act of 1999 (H.R. 2260) 27 October 1999    1999 Ron Paul 111:18 Under this bill a new program of grants, cooperative agreements and contracts to help professional schools and other medical agencies will be used to educate and train health care professionals in palliative care. It is not explicit but one can expect that if the rules are not followed and an institution is receiving federal money they will be denied these funds unless they follow the universal protocols set up by the federal government. The bill states clearly that any special award under this new program can only be given if the applicant agrees that the program carried out with the award will follow the government guidelines. These new programs will be through the health professional schools, i.e. the medical schools’ residency training programs and other graduate programs in the health professions. It will be a carrot and stick approach and in time the medical profession will become very frustrated with the mandates and the threat that funds will be withheld. money Conference Report On S. 900, Gramm-Leach-Bliley Act 4 November 1999    1999 Ron Paul 113:4 Such a scenario would put added pressure on the financial bubble. The growth in money and credit has outpaced both savings and economic growth. These inflationary pressures have been concentrated in asset prices, not consumer price inflation — keeping monetary policy too easy. This increase in asset prices has fueled domestic borrowing and spending. money Good Time For Congress To Reassess Antitrust Laws 8 November 1999    1999 Ron Paul 114:13 Next, we should crown the consumers king and let them vote with their money on who should succeed and who should fail. money Good Time For Congress To Reassess Antitrust Laws 8 November 1999    1999 Ron Paul 114:15 The Bill Gateses of the world can only invest their money in job-creating projects or donate it to help the needy. The entrepreneurial giants are not a threat to stability or prosperity. Government bureaucrats and Federal judges are. But strict enforcement of all the ill-inspired antitrust laws does not serve the consumer, nor the cause of liberty. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:58 No one asked where the Government gets the money to finance the welfare state. Is it morally right to do so? Is it authorized in the Constitution? Does it help anyone in the long run? Who suffers from the policy? Until these questions are seriously asked and correctly answered, we cannot expect the march toward a pervasive welfare state to stop and we can expect our liberties to be continuously compromised. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:60 In 1936, the New Deal Supreme Court told Congress and the American people that the Constitution is irrelevant when it comes to limits being placed on congressional spending. In a ruling justifying the Agricultural Adjustment Act, the Court pronounced, “The power of Congress to authorize appropriations of public money for public purposes is not limited by the grants of legislative power found in the Constitution.” money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:66 Curtailing how people spend their own money or their right to petition their government will do nothing to this influence peddling. Treating the symptoms and not the disease only further undermines the principles of freedom and property ownership. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:69 Preserving liberty and restoring constitutional precepts are impossible as long as the welfare mentality prevails, and that will not likely change until we have run out of money. But it will become clear as we move into the next century that perpetual wealth and the so-called balanced budget, along with an expanding welfare state, cannot continue indefinitely. Any effort to perpetuate it will only occur with the further erosion of liberty. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:76 For 20 years at least, some of our presidential candidates advocated the abolishing of the Department of Education and for the Federal Government to get completely out of public education. This year, we will hear no more of that. The President got more money for education than he asked for and it is considered not only bad manners but also political suicide to argue the case for stopping all Federal Government education programs. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:78 A case can be made that there would be more money available for education if we just left the money in the States to begin with and never brought it to Washington for the bureaucrats and the politicians to waste. But it looks like Congress will not soon learn this lesson, so the process will continue and the results will get worse. The best thing we could do now is pass a bill to give parents a $3,000 tax credit for each child they educate. This would encourage competition and allow a lot more choice for parents struggling to help their children get a decent education. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:89 The U.S. monetary system. The U.S. monetary system during the 20th Century has dramatically changed from the one authorized by the Constitution. Only silver and gold were to be used in payment of debt, and no paper money was to be issued. In one of the few restrictions on the states, the Constitution prohibited them from issuing their own money, and they were to use only gold and silver in payment of debt. No Central Bank was authorized. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:92 No longer is there silver or gold available to protect the value of a steadily depreciating currency. This is a fraud of the worst kind and the type of a crime that would put a private citizen behind bars. But there have been too many special interests benefitting by our fiat currency, too much ignorance and too much apathy regarding the nature of money. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:94 A transition from sound money to paper money did not occur instantaneously. It occurred over a 58 year period between 1913 and 1971, and the mischief continues today. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:96 The record of the Federal Reserve is abysmal, yet at the close of the 20th Century, its chairman is held in extremely high esteem, with almost zero calls for study of sound money with the intent to once again have the dollar linked to gold. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:99 It is also advantageous for the politicians to ignore the negative effects from such a monetary arrangement, since they tend to be hidden and disseminated. A paper money system attracts support from various economic groups. Bankers benefit from the float that they get with the fractional reserve banking that accompanies a fiat monetary system. Giant corporations who get to borrow large funds at below market interest rates enjoy the system and consistently call for more inflation and artificially low interest rates. Even the general public seems to benefit from the artificial booms brought about by credit creation, with lower interest rates allowing major purchases like homes and cars. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:102 Likewise, financing the welfare state would have progressed much slower if our deficits could not have been financed by an accommodative Central Bank willing to inflate the money supply at will. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:112 A paper money system is dangerous economically and not constitutionally authorized. It is also immoral for government to counterfeit money, which dilutes the value of the currency and steals values from those who hold the currency and those who do not necessary benefit from its early circulation. money A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:114 Congress must someday restore sound money to America. It is mandated in the Constitution, it is economically sound to do so, and it is morally right to guarantee a standard of value for the money. Our oath of office obligates all Members of Congress to pay attention to this and participate in this needed reform. money A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:49 Tobacco is about to be categorized as a drug and prohibition of sorts imposed. This will make the drug war seem small if we continue to expand the tobacco war. Talk about insane government policies of the 20th century, tobacco policy wins the prize. First, we subsidize tobacco in response to demands by the special interests, knowing full well even from the beginning that tobacco had many negative health consequences. Then we spend taxpayers’ money warning the people of its dangers, without stopping the subsidies. money A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:63 There is no way to know if this problem is this bad in the general population, but these statistics indicate our young people do not trust our politicians or media. Trust has been replaced with a satisfaction in the materialism that speculative stock markets, borrowing money, and a spendthrift government can generate. money A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:71 We find ourselves at the close of this century realizing all our standards have been undermined. A monetary standard for our money is gone. The dollar is whatever the government tells us it is. There is no definition and no promise to pay anything for the notes issued ad infinitum by the government. Standards for education are continually lowered, deemphasizing excellence. Relative ethics are promoted and moral absolutes are ridiculed. The influence of religion on our standards is frowned upon and replaced by secular humanistic standards. The work ethic has been replaced by a welfare ethic based on need, not effort. Strict standards required for an elite military force are gone and our lack of readiness reflects this. money A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:107 The large majority of Americans are sick and tired of being overtaxed, and despise the income tax and the inheritance tax. The majority of Americans know government programs fail to achieve their goals and waste huge sums of money. A smoldering resentment against the unfairness of government and efforts to force equality on us can inspire violence, but instead, it should be used to encourage an honest system of equal justice based on individual, not collective, rights. money ON PRESENTING CONGRESSIONAL GOLD MEDAL TO JOHN CARDINAL O’CONNOR February 15, 2000    2000 Ron Paul 8:2 I must, however, oppose the Gold Medal for Cardinal O’Connor because appropriating $30,000 of taxpayer money is neither constitutional nor, in the spirit of Cardinal O’Connor who dedicates his life to voluntary and charitable work, particularly humanitarian. money ON PRESENTING CONGRESSIONAL GOLD MEDAL TO JOHN CARDINAL O’CONNOR February 15, 2000    2000 Ron Paul 8:4 In fact, as a means of demonstrating my personal regard and enthusiasm for the work of Cardinal O’Connor, I invited each of these colleagues to match my private, personal contribution of $100 which, if accepted by the 435 Members of the House of Representatives, would more than satisfy the $30,000 cost necessary to mint and award a gold medal to the well-deserving Cardinal O’Connor. To me, it seemed a particularly good opportunity to demonstrate one’s genuine convictions by spending one’s own money rather than that of the taxpayers who remain free to contribute, at their own discretion, to the work of Cardinal O’Connor as they have consistently done in the past. For the record, not a single Representative who solicited my support for spending taxpayer’s money, was willing to contribute their own money to demonstrate the courage of their so-called convictions and generosity. money ON PRESENTING CONGRESSIONAL GOLD MEDAL TO JOHN CARDINAL O’CONNOR February 15, 2000    2000 Ron Paul 8:5 It is, of course, very easy to be generous with other people’s money. money THE AGRICULTURE EDUCATION FREEDOM ACT February 16, 2000    2000 Ron Paul 10:1 Mr. Speaker, I rise to introduce the Agriculture Education Freedom Act. This bill addresses a great injustice being perpetrated by the Federal Government on those youngsters who participate in programs such as 4-H or the Future Farmers of America. Under current tax law, children are forced to pay federal income tax when they sell livestock they have raised as part of an agricultural education program. Think of this for a moment. These kids are trying to better themselves, earn some money, save some money, and what does Congress do? We pick on these kids by taxing them. money THE AGRICULTURE EDUCATION FREEDOM ACT February 16, 2000    2000 Ron Paul 10:4 It is time we stopped taxing youngsters who are trying to earn money to go to college by selling livestock they have raised through their participation in programs such as 4-H or Future Farmers of America. Therefore I call on my colleagues to join me in supporting the Agriculture Education Freedom Act. money SENIOR CITIZENS’ FREEDOM TO WORK ACT OF 1999 March 1, 2000    2000 Ron Paul 11:2 When the government takes money every month from people’s paychecks for the Social Security Trust Fund, it promises retirees that the money will be there for them when they retire. The government should keep that promise and not reduce benefits simply because a senior chooses to work. money SENIOR CITIZENS’ FREEDOM TO WORK ACT OF 1999 March 1, 2000    2000 Ron Paul 11:4 The underlying issue of the earnings limitation goes back to the fact that money from the trust fund is routinely spent for things other than paying pensions to beneficiaries. This is why the first bill I introduced in the 106th Congress was the Social Security Preservation Act (H.R. 219), which forbids Congress from spending Social Security funds on anything other than paying Social Security pensions. money PRAISING PARENTS AND TEACHERS DURING TEXAS PUBLIC SCHOOLS WEEK March 9, 2000    2000 Ron Paul 16:2 * Unfortunately, Congress and the federal bureaucracy continue to strip authority away from parents, teachers and local school boards. While Congress promises the American people that expansions of federal control over local schools will create an educational utopia, the fact is that the federal education bureaucracy has only increased the difficulties of educating the next generation and diverted resources away from the classroom. For example, while the federal government provides less than 10% of education funding, many school districts find that more than 50% of their paperwork is generated by federal mandates and the hoops local school officials must jump through in order to get Washington to return a ridiculously small portion of taxpayer money to local public schools. money PRAISING PARENTS AND TEACHERS DURING TEXAS PUBLIC SCHOOLS WEEK March 9, 2000    2000 Ron Paul 16:5 * The “Family Education Freedom Act” fulfills the American people’s goal of greater control over their children’s education by simply allowing parents to keep more of their hard-earned money to spend on education, rather than forcing them to send it to Washington to support education programs reflective of the values and priorities of Congress and the federal bureaucracy. money PRAISING PARENTS AND TEACHERS DURING TEXAS PUBLIC SCHOOLS WEEK March 9, 2000    2000 Ron Paul 16:7 * I have also introduced the “Teacher Tax Cut” (HR 937), which provides a $1,000 tax credit for every teacher in America. Quality education is impossible without quality teaching. Yet, America’s teachers remain underpaid compared to other professionals. Adding insult to injury, teachers often have to use their own money to purchase supplies for their classroom. For example, according to the Association of Texas Professional Educators, many Texas teachers spent between $50-300 of their own money on school supplies during the 1998-99 school year! money PRAISING PARENTS AND TEACHERS DURING TEXAS PUBLIC SCHOOLS WEEK March 9, 2000    2000 Ron Paul 16:10 * Mr. Speaker, my education agenda of returning control over the education dollar to the American people is the best way to strengthen public education. First of all, unlike plans to expand the federal education bureaucracy, my bills are free of “guidelines” and restrictions that dilute the actual number of dollars spent to educate a child. In addition, the money does not have to go through federal and state bureaucrats, each of whom gets a cut, before it reaches the classroom. Returning power over the education dollar will also free public school teachers, administrators and principals from having to comply with numerous federal mandates. Instead, school personnel and officials may work with parents and other concerned citizens to make sure all children are receiving the best possible education. money NUCLEAR WASTE POLICY AMENDMENTS ACT OF 2000 March 22, 2000    2000 Ron Paul 17:5 * Of course, returning the trust fund money including interest and damages to ratepayers and utilities companies quite obviously does not dispose of the hazardous waste. Waste disposal and public safety, though, remains a power of the state governments under the tenth amendment to the U.S. Constitution which specifies that “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or the people. The public safety and police power have long been held to be state law matters and most appropriately so. money TRIBUTE TO THE LAW ENFORCEMENT OFFICERS OF HAYS COUNTY, TEXAS March 29, 2000    2000 Ron Paul 19:2 * As Event Coordinator Cheryl Warren Norton said, ‘With the growing rate of violence, especially among our youth, it is our responsibility and the general public’s responsibility to assist our law enforcement officers in areas in which they are in need.’ The money raised through LEAD 2000 will go toward crime prevention programs aimed at fighting crime and violence on the 8local level. Local law enforcement is the backbone of public safety and protection across America, and I am proud to represent an area that recognizes its law enforcement personnel for the heroes that they are. money UNNECESSARY SUPPLEMENTAL APPROPRIATIONS AND UNWISE MILITARY ADVENTURISM IN COLOMBIA March 29, 2000    2000 Ron Paul 20:3 But we should be very cautious about what we are doing today by expanding our involvement in Colombia. We are now moving into Colombia and spending a lot of money and expanding our war in this area. We should not be spending our money on military adventurism. We should be taking this money and spending it to build up our military defenses. We should be using this money to pay our military personnel more money, give them better housing and better education and better medical care. money 2000 EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT March 29, 2000    2000 Ron Paul 21:2 It is said that we need to appropriate this money to fight the drug war in Colombia. We have been fighting the drug war for 25 years. We have spent $250 billion on the drug war. Some day we will have to wake up and decide that the way we are fighting the drug war is wrong. money 2000 EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT March 29, 2000    2000 Ron Paul 21:5 I had an amendment that was not approved. But what I would have done, if I had had the chance, I would have taken all the money from the overseas spending, Kosovo, Bosnia, East Timor, and the funds now for this new adventure down in Colombia, and put it into building up our military defense. That is what we need. We need better salaries, better medical care, and we need better housing for our military personnel. But here we go spreading ourselves thinly again around the world by taking on a new adventure, which will surely lead to trouble and a lot of expense. money 2000 EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT March 29, 2000    2000 Ron Paul 21:10 So I think that, unfortunately, this could end up in a real mess. Maybe then we would have enough sense to leave. But we, in the Congress, ought to have enough sense not to go down there. This money can be better spent on national defense. We should be concerned about national security. money Amendment No. 5 Offered By Mr. Paul 30 March 2000    2000 Ron Paul 22:8 But, unfortunately, when it came time to deal with the funding, we were all too anxious to permit and authorize and appropriate the money to go into Kosovo. Today we are continuing to fund our activities in Kosovo as well as Bosnia, East Timor, and now with plans to go into South America, principally Colombia. money Amendment No. 5 Offered By Mr. Paul 30 March 2000    2000 Ron Paul 22:11 In Colombia, there are a lot of weapons already, and we are responsible for 80 percent of them. There is one irony about this bill that strikes me. The administration and many here on the floor who vote for these weapons are the same individuals who are anxious to prohibit the right of an American citizen to own a cheap weapon in selfdefense. At the same time, they are quite willing to tax these individuals and take their money to spend it on the weapons of war around the world and become involved in no-win situations. money Fiscal 2000 Supplemental Appropriations/DEA Funding Cuts Amendment 30 March 2000    2000 Ron Paul 23:4 Why continue a war that does not work? This is money down a rat hole. This is totally wasted money and, as far as I am concerned, only an excuse to sell helicopters and go in to Colombia and protect oil interests. That is the real reason why we are down there. money Fiscal 2000 Supplemental Appropriations/DEA Funding Cuts Amendment 30 March 2000    2000 Ron Paul 23:5 We say this is only replacement of money for Kosovo. Well, what makes us think if we put the money in and replace it the President will not do the same thing over again? Of course he will. The fact that we are not watching the purse strings tightly enough is the problem. money Fiscal 2000 Supplemental Appropriations/DEA Funding Cuts Amendment 30 March 2000    2000 Ron Paul 23:6 The gentleman suggests that this would mean that there would be no more building and no support for our troops in Korea. My amendment only deals with the money in this supplemental. What about the current year’s budget? Those funds can still be spent. But it also suggests that we shall question how long are we going to be in Korea. It is time to start thinking about these matters. It is time to bring these troops home. money Fiscal 2000 Supplemental Appropriations/DEA Funding Cuts Amendment 30 March 2000    2000 Ron Paul 23:7 If we want to spend the money, spend it here at home. Spend the money here. Build up our national defense. If we wish to continually expand our interventionism and aggravation overseas, then I guess we have to vote against this amendment and for the bill. But this is a policy statement. Should we continue current policy of forever spending money and being involved overseas? I say it is time to start thinking about what is good for our people, what is good for our taxpayers, what is good for national defense, and what is good for our constitutional republic. Should we be doing this? I do not think so. Are we authorized to do it? No, we are not authorized to police the world. money AWARDING GOLD MEDAL TO FORMER PRESIDENT AND MRS. RONALD REAGAN IN RECOGNITION OF SERVICE TO NATION April 3, 2000    2000 Ron Paul 25:2 * I must, however, oppose the Gold Medal for Ronald and Nancy Reagan because appropriating $30,000 of taxpayer money is neither constitutional nor, in the spirit of Ronald Reagan’s notion of the proper, limited role for the federal government. money AWARDING GOLD MEDAL TO FORMER PRESIDENT AND MRS. RONALD REAGAN IN RECOGNITION OF SERVICE TO NATION April 3, 2000    2000 Ron Paul 25:4 * In fact, as a means of demonstrating my personal regard and enthusiasm for Ronald Reagan’s advocacy for limited government, I invited each of these colleagues to match my private, personal contribution of $100 which, if accepted by the 435 Members of the House of Representatives, would more than satisfy the $30,000 cost necessary to mint and award a gold medal to Ronald and Nancy Reagan. To me, it seemed a particularly good opportunity to demonstrate one’s genuine convictions by spending one’s own money rather that of the taxpayers who remain free to contribute, at their own discretion, to commemorate the work of the Reagans. For the record, not a single Representative who solicited my support for spending taxpayer’s money, was willing to contribute their own money to demonstrate their generosity and allegiance to the Reagan’s stated convictions. money AWARDING GOLD MEDAL TO FORMER PRESIDENT AND MRS. RONALD REAGAN IN RECOGNITION OF SERVICE TO NATION April 3, 2000    2000 Ron Paul 25:5 * It is, of course, very easy to be generous with the people’s money. money AMERICAN HOMEOWNERSHIP AND ECONOMIC OPPORTUNITY ACT OF 2000 April 6, 2000    2000 Ron Paul 27:13 Mr. PAUL. Mr. Chairman, I would first like to thank my colleague, the gentlewoman from Michigan (Ms. Kilpatrick ) for cosponsoring this amendment. This amendment is simple and straightforward. The amendment merely states that it prohibits the use of funds for activities involving the acquisition of church property unless the consent of the governing body of the church is obtained. This means that community development block grant money cannot be used to invoke eminent domain and take a church away from the church owners or the occupants without their permission. money WHAT IS FREE TRADE? May 2, 2000    2000 Ron Paul 29:4 The first reason I would like to mention is a moral reason. There is a moral element involved in trade, because when governments come in and regulate how citizens spend their money, they are telling them what they can do or cannot do. In a free society, individuals who earn money should be allowed to spend the money the way they want. So if they find that they prefer to buy a car from Japan rather than Detroit, they basically have the moral right to spend their money as they see fit and those kinds of choices should not be made by government. So there is a definite moral argument for free trade. money WHAT IS FREE TRADE? May 2, 2000    2000 Ron Paul 29:5 Patrick Henry many years ago touched on this when he said, ‘You are not to inquire how your trade may be increased nor how you are to become a great and powerful people but how your liberties may be secured, for liberty ought to be the direct end of your government.’ We have not heard much talk of liberty with regards to trade, but we do hear a lot about enhancing one’s ability to make more money overseas with trading with other nations. But the argument, the moral argument, itself should be enough to convince one in a free society that we should never hamper or interfere with free trade. money WHAT IS FREE TRADE? May 2, 2000    2000 Ron Paul 29:16 If our American companies and our American workers have to compete, the last thing they should ever be required to do is pay some of their tax money to the Government, to send subsidies to their competitors; and that is what is happening. They are forced to subsidize their competitors on foreign aid. They support their competitors overseas at the World Bank. They subsidize their competitors in the Export/Import Bank, the Overseas Private Investment Corporation. money WHAT IS FREE TRADE? May 2, 2000    2000 Ron Paul 29:23 So this to me is important, that we try to be clear on how we define free trade, and we should not do this by accepting the idea that management of trade, as well as subsidizing trade and calling it free trade is just not right. Free trade is the ability of an individual or a corporation to buy goods and spend their money as they see fit, and this provides tremendous economic benefits. money Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:5 * The silly notion that money can be created at will by a printing press or through computer entries is eagerly accepted by the majority as an easy road to riches, while ignoring any need for austerity, hard work, saving, and a truly free market economy. Those who actively endorse this system equate money creation with wealth creation and see it as a panacea for the inherent political difficulty in raising taxes or cutting spending. money Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:8 * But that’s a fallacy. There is always a cost. Artificially low interest rates prompt lower savings, over-capacity expansion, mal-investment, excessive borrowing, speculation, and price increases in various segments of the economy. And since money creation is not wealth creation, it inevitably leads to a lower value for the currency. The inflation always comes to an end with various victims, many of whom never enjoyed the benefits of the credit creation and deficit spending. money Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:9 * This silly notion of money and credit gives rise to the conventional wisdom that once the economy gets really rolling, it’s time for the Fed to stop economic growth. The false supposition is that economic growth causes higher prices and higher labor costs, and these evils must be prevented by tightening credit and raising interest rates. But these are only the consequences of the previous monetary expansion and blaming rising prices or higher labor costs is done only to distract from the real culprit-monetary inflation by the Federal Reserve. money Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:10 * In a free market, economic growth would never be considered a negative and purposely discouraged. It is strange that so many established economists and politicians accept the notion of dampening economic growth for this purpose. Economic growth with sound money always lowers prices-it never raises them. Deliberately increasing rates actually increase the cost of all borrowing, and yet it’s claimed that this is necessary to stop rising costs. Obviously, there’s not much to the soundness of central economic planning through monetary policy of this sort. money The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:1 * Fiat money, that is, money created out of thin air, causes numerous problems, internationally as well as domestic. It causes domestic price inflation, economic downturns, unemployment, excessive debt, (corporate, personal and government) mal-investment, and over capacity — all very serious and poorly understood by our officials. But fluctuating values of various paper currencies cause all kinds of disruptions in international trade and finance as well. money The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:2 * Trade surpluses and deficits when sound money conditions exist are of little concern since they prompt changes in policy or price adjustments in a natural or smooth manner. When currencies are non-convertible into something of real value, they can be arbitrarily increased at will, trade deficits and especially current account deficits are of much greater significance. money The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:5 * Although international trade imbalances are a predictable result of fiat money, the duration and intensity of the cycles associated with it are not. A reserve currency, such as is the dollar, is treated by the market quite differently than another fiat currency. money The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:9 * By inflating our currency, we can then spend our dollars overseas getting products at good prices which on the short run raises our standard of living - but, on borrowed money. All currency account deficits must be financed by borrowing from abroad. money The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:13 * Fiscal policy, and current monetary policy will not solve the crisis we will soon face. Only sound money, money that cannot be created out of thin air, can solve the many problems appearing on the horizon. The sooner we pay attention to monetary policy as the source of our international financial problems, the sooner we will come up with a sound solution. money INTERNATIONAL TRADE May 23, 2000    2000 Ron Paul 39:4 For the past decade, with sharp adjustments in currency values such as occurred during the Asian financial crisis, the dollar and the U.S. consumers benefitted. But these benefits will prove short-lived, since the unprecedented prosperity and consumption has been achieved with money that we borrow from abroad. money INTERNATIONAL TRADE May 23, 2000    2000 Ron Paul 39:8 But instead, I suggest we look more carefully for the cause of the coming currency crisis. We should study the nature of all the world currencies and the mischief that fiat money causes, and resist the temptation to rely on the WTO, the IMF, the World Bank, pseudo free trade, to solve the problems that only serious currency reform can address. money WITHDRAWING APPROVAL OF UNITED STATES FROM AGREEMENT ESTABLISHING WORLD TRADE ORGANIZATION June 21, 2000    2000 Ron Paul 45:26 Let me say there is another reason why we expect chaos in the economy and in trade. It has to do with the trade imbalances. Today we are at record highs. The current account deficit hit another record yesterday. It is 4.5 percent of the GDP, and it is significant. But unfortunately the WTO can do nothing about that because that is a currency problem. It too causes chaos. Yet there will be an attempt by the WTO to share the problem of imbalances. Just think of how NAFTA came to the rescue of the Mexican peso immediately after NAFTA was approved; a $50 billion rescue for the politicians and the bankers who loaned money to Mexico. money World Trade Organization 21 June 2000    2000 Ron Paul 46:12 Indeed, this is a treaty that we are obligated to follow. It is an illegal treaty because it was never ratified by the Senate. Even if it had been, it is not legal because you cannot transfer authority to an outside body. It is the U.S. Congress that has the authority to regulate foreign commerce. Nobody else. We will change our tax law and obey the WTO. And just recently, the European Union has complained to us because we do not tax sales on the Internet, and they are going to the WTO to demand that we change that law; and if they win, we will have to change our law. The other side of the argument being, We don’t have to do it. We don’t have to do it if we don’t want to. But then we are not a good member as we promised to be. Then what does the WTO do? They punish us with punitive sanctions, with tariffs. It is a managed trade war operated by the WTO and done in secrecy, without us having any say about it because it is out of our hands. It is a political event now. You have to have access to the U.S. Trade Representative for your case to be heard. This allows the big money, the big corporations to be heard and the little guy gets ignored. money World Trade Organization 21 June 2000    2000 Ron Paul 55:8 Let me say there is another reason why we expect chaos in the economy and in trade. It has to do with the trade imbalances. Today we are at record highs. The current account deficit hit another record yesterday. It is 4.5 percent of the GDP, and it is significant. But unfortunately the WTO can do nothing about that because that is a currency problem. It too causes chaos. Yet there will be an attempt by the WTO to share the problem of imbalances. Just think of how NAFTA came to the rescue of the Mexican peso immediately after NAFTA was approved; a $50 billion rescue for the politicians and the bankers who loaned money to Mexico. money PROVIDING FOR CONSIDERATION OF H.R. 1304, QUALITY HEALTH-CARE COALITION ACT OF 2000 June 29, 2000    2000 Ron Paul 60:6 We need this desperately. We do not need to support the special corporate interests who get the money. The patient does not get the care. The doctors are unhappy. The hospitals are unhappy. And who lobbies against this? Corporate interests. This is total destruction of the doctor-patient relationship. money THE FAMILY HEALTH TAX CUT ACT 29 June 2000    2000 Ron Paul 62:7 * Mr. Speaker, this Congress has a moral responsibility to provide low-income parents struggling to care for a sick child tax relief in order to help them better meet their child’s medical expenses. I would ask any of my colleagues who would say that we cannot enact the Family Tax Cut Act because it would cause the government to lose too much revenue, who is more deserving of this money, Congress or the working-class parents of a sick child? money LIMITATION ON FUNDS FOR ABORTION, FAMILY PLANNING, OR POPULATION CONTROL EFFORTS July 13, 2000    2000 Ron Paul 64:24 The Mexico City language is something I support and I vote for, and the attempt is very sincere to try to stop the abuse of the way these funds are used. But quite frankly the Mexico City language does not do a whole lot. If the President wants to suspend that language, he can and he takes a penalty of $12 million, a 3 percent reduction in the amount of money that becomes available for these programs. It goes from $385 million down to $373 million and the President can do what he wants. So there is really no prohibition. We as American taxpayers do support these programs. You say, Oh, no, they don’t. We put prohibitions. They’re not allowed to use it for abortion. money LIMITATION ON FUNDS FOR ABORTION, FAMILY PLANNING, OR POPULATION CONTROL EFFORTS July 13, 2000    2000 Ron Paul 64:25 That is not true. I mean, the language is true; but it does not accomplish that. What it accomplishes is that these funds go in for buying birth control pills and condoms, and the money that would have been spent on birth control pills and condoms go and is used to do the abortion. I believe in the fungibility argument in its entirety, not just in the family planning. As soon as you give funds in any way whatsoever to a country such as China that endorses abortion, I mean, we are participants, we are morally bound to say that we are a participant in those acts. Even though we say, I hope you don’t do it and you shouldn’t do it and we’re not authorizing you to do it, we have to remember that funds are fungible and that they can be used in this manner. money Social Security Tax Relief Act 27 July 2000    2000 Ron Paul 67:5 Congress should also act on my Social Security Preservation Act (H.R. 219), which ensures that all money in the Social Security Trust Fund is spent solely on Social Security. When the government takes money for the Social Security Trust Fund, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money Social Security Tax Relief Act 27 July 2000    2000 Ron Paul 67:6 In conclusion, Mr. Speaker, I urge my colleagues to help free senior citizens from oppressive taxation by supporting the Social Security Benefits Tax Relief Act (H.R. 4865). I also urge my colleagues to join me in working to repeal all taxes on Social Security benefits and ensuring that moneys from the Social Security trust fund are used solely for Social Security and not wasted on frivolous government programs. money Social Security Benefits Tax Relief Act Of 2000 27 July 2000    2000 Ron Paul 68:5 Congress should also act on my Social Security Preservation Act (H.R. 219), which ensures that all money in the Social Security Trust Fund is spent solely on Social Security. When the government takes money for the Social Security Trust Fund, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money Social Security Benefits Tax Relief Act Of 2000 27 July 2000    2000 Ron Paul 68:6 In conclusion, Mr. Speaker, I urge my colleagues to help free senior citizens from oppressive taxation by supporting the Social Security Benefits Tax Relief Act (H.R. 4865). 1 also urge my colleagues to join me in working to repeal all taxes on Social Security benefits and ensuring that moneys from the Social Security trust fund are used solely for Social Security and not wasted on frivolous government programs. money Minding Our Own Business Regarding Colombia Is In The Best Interest Of America September 6, 2000    2000 Ron Paul 69:4 This foolhardy effort to settle the Colombian civil war has clearly turned out to be a diplomatic failure. The best evidence of a seriously flawed policy is the departure of capital. Watching money flows gives us a market assessment of policy; and by all indication, our policy spells trouble. money Minding Our Own Business Regarding Colombia Is In The Best Interest Of America September 6, 2000    2000 Ron Paul 69:5 There is evidence of a recent large-scale exodus of wealthy Colombians to Miami. Tens of thousands of Colombians are leaving for the U.S., Canada, Costa Rica, Spain, Australia. These are the middle-class and upper-class citizens, taking their money with them. Our enhanced presence in Colombia has accelerated this exodus. money Child Support Distribution Act Of 2000 September 7, 2000    2000 Ron Paul 71:11 * Furthermore, providing taxpayers dollars to secular institutions violates the rights of taxpayers not to be forced to subsidize beliefs that may offend them. As Thomas Jefferson said ‘To compel a man to furnish contributions of money for the propagation of opinions which he disbelieves and abhors is sinful and tyrannical.’ money SOCIAL SECURITY TAX RELIEF ACT 7 September 2000    2000 Ron Paul 72:5 * Congress should also act on my Social Security Preservation Act (H.R. 219), which ensures that all money in the Social Security Trust Fund is spent solely on Social Security. When the government takes money for the Social Security Trust Fund, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money SOCIAL SECURITY TAX RELIEF ACT 7 September 2000    2000 Ron Paul 72:6 * In conclusion, Mr. Speaker, I urge my colleagues to help free senior citizens from oppressive taxation by supporting the Social Security Benefits Tax Relief Act (H.R. 4865). I also urge my colleagues to join me in working to repeal all taxes on Social Security benefits and ensuring that moneys from the Social Security trust fund are used solely for Social Security and not wasted on frivolous government programs. money Literacy Involves Families Together Act September 12, 2000    2000 Ron Paul 75:1 * Mr. Speaker, I appreciate the opportunity to explain why Congress should reject the Literacy Involves Families Together (LIFT) Act (House Resolution 3222), which aims to increase ‘family literacy’ by directing money from the American taxpayer to Washington and funneling a small percentage of it back to the states and localities to spend on education programs that meet the specifications of DC-based bureaucrats. While all support the goal of promoting adult literacy, especially among parents with young children, Congress should not endorse supporting the unconstitutional and ineffective means included in this bill. If Congress were serious about meaningful education reform, we would not even be debating bills like H.R. 3222. Rather, we would be discussing the best way to return control over the education dollar to the people so they can develop the education programs that best suit their needs. money SOCIAL SECURITY BENEFITS TAX RELIEF ACT OF 2000 September 14, 2000    2000 Ron Paul 76:5 * Congress should also act on my Social Security Preservation Act (H.R. 219), which ensures that all money in the Social Security Trust Fund is spent solely on Social Security. When the government takes money for the Social Security Trust Fund, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money SOCIAL SECURITY BENEFITS TAX RELIEF ACT OF 2000 September 14, 2000    2000 Ron Paul 76:6 * In conclusion, Mr. Speaker, I urge my colleagues to help free senior citizens from oppressive taxation by supporting the Social Security Benefits Tax Relief Act (H.R. 4865). 1 also urge my colleagues to join me in working to repeal all taxes on Social Security benefits and ensuring that moneys from the Social Security trust fund are used solely for Social Security and not wasted on frivolous government programs. money CONFERENCE REPORT ON H.R. 4205, FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001 October 11, 2000    2000 Ron Paul 83:2 * Certainly a bill authorizing use of resources for the national defense which also properly compensates those military personnel necessary to maintain it would be not only constitutional but most appropriate. Contrarily, a bill which continues our elitist and failed policy of policing the world all the while creating additional enemies of the United States is neither constitutional, justifiable, supportable, nor prudent. By avoiding such a police-the-world approach, which destroys troop morale by isolating them from their families and spreading them dangerously thin, considerably less money could be authorized with seriously improved security results. money CONFERENCE REPORT ON H.R. 4205, FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001 October 11, 2000    2000 Ron Paul 83:3 * Meanwhile, H.R. 3769, my bill to prohibit the destruction during fiscal year 2001 of missile silos in the United States, fails to even receive so much as a hearing. While I understand that to comply with questionable, but ratified, disarmament treaties, certain missiles may need to be deactivated, it seems ill-advised to spend money to also destroy the missile silos which may be strategically vital to our national defense at some date in the not-so-distant future. money CONGRESS IGNORES ITS CONSTITUTIONAL RESPONSIBILITY REGARDING MONETARY POLICY October 11, 2000    2000 Ron Paul 84:7 The Federal Reserve, which maintains a monopoly control over the money supply, credit and interest rates, is indeed the culprit and should be held accountable. But the real responsibility falls on the Congress, for it is Congress’ neglect that permits the central bank to debase the dollar at will. money END-OF-SESSION ISSUES October 11, 2000    2000 Ron Paul 85:11 Even absent the ‘accountability’ provisions spending billions of taxpayer dollars on block grants is a poor way of restoring control over education to local educators and parents. Some members claim that the expenditure levels for not matter, it is the way the money is spent which is important. Contrary to the view of the well-meaning but misguided members who promote block grants, the amount of taxpayer dollars spent on federal education does matter. money WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY October 12, 2000    2000 Ron Paul 86:3 Yesterday, I talked a bit about what I see as a financial bubble that has developed over the past decade and made the point that a financial bubble can be financed through borrowing money, as well as inflation. A financial bubble is essentially a consequence of inflation. A lot of people talk about inflation being the mere rising of some prices, but that is not the case. money WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY October 12, 2000    2000 Ron Paul 86:4 Most good economists recognize that inflation is a consequence of monetary policy; as one increases the supply of money, it inflates the currency. This distorts interest rates, and it distorts the markets. Sometimes this goes into goods and services, and other times these excessive funds will go into marketplaces and distort the value of stocks and bonds. money WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY October 12, 2000    2000 Ron Paul 86:9 They are talking about a symptom and not the cause. The cause is the Federal Reserve. The problem is that the Federal Reserve has been granted authority that is unconstitutional to go and counterfeit money, and until we recognize that and deal with that, we will continue to have financial problems. money WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY October 12, 2000    2000 Ron Paul 86:14 If we are looking towards bad times, it is not because of current policy, it is because of previous policy, the previous policy of the 10 years, the time when we live beyond our means. We say how did we live beyond our means? Where did the money come from? Are we not spending less than Washington? No, we are not spending less in Washington. Are not the deficits a lot less? They are less, but they are not gone. money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:4 I take as my theme two quotations, one from the Gospel of St. Matthew, 20:15 — ‘Do not I have the right to do what I want with my own money?’ money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:7 I say ‘suspect’ because Citibank views these wealthy people, who control approximately 21 trillion-six hundred billion dollars, as potential financial criminals simply because of their wealth. Citibank announced last year that their 40,000 private banking clients, each of whom had to prove a personal net worth of $3 million in order to qualify for the bank’s services, are watched every minute of every day to see if they may be engaged in money laundering or other financial crimes. I am certain other banks do as well. money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:10 I was at a conference on April 22, 1999 in Miami sponsored by the respected publication, Money Laundering Alert. Lester Joseph, Assistant Chief of Asset Forfeiture and Money Laundering for the Criminal Division of the U.S. Department of Justice, said that the U.S. Government officially views any offshore financial activity by US persons — any offshore financial activity — especially the use of tax havens, as potential criminal money laundering activity. money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:12 So now we have the government money police targeting normal financial activities that until recently have been perfectly legal, simply because a person decides in his own best interests, to go offshore. We all know that in the US, African-American, Latino, Asian-American and other racial minorities have been unfairly subject to police ‘profiling.’ Add to that list of ‘presumed guilty,’ Americans who engaged in offshore financial activity. money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:14 For the last 20 years the policies adopted by the United States and allied governments have constituted a stealth war against wealth and against financial privacy. While the free flow of capital is extolled as appropriate and essential, the governments of major nations have turned upside down the traditional role of banks and banking. As a child I was made to believe that the people you dealt with at your bank and other financial institutions were fiduciaries to whom you could entrust your money. money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:17 As part of the drug war that progressed and expanded (but is never victorious), the catch all crime of ‘money laundering’ was invented: an all purpose federal prosecutors’ dream. The anti-money laundering statutes that have grown like a malignancy. Charges of money laundering now routinely are shown in with almost every possible criminal indictment, often as a bargaining chip and/or a means to confiscate the wealth of the accused even before trial. Try hiring a good defense attorney when your bank account has been frozen. money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:20 That great economist, Wilhelm Roepke, once wrote: ‘It is very easy to awaken resentment against people who not only have money, but also the boldness to send that money abroad in order to protect it against all manner of domestic insecurity. It’s vital that people in their means of existence, that is, capital, still have the chance to move about internationally, and when absolutely necessary, to escape the arbitrariness of government policy by means of secret back doors.’ money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:24 But Americans who have followed this prudent course now find themselves lumped together with drug lords, tax cheats, dirty money launderers, disease carriers and assorted criminals. What is legal and legitimate is made to look sinister and evil. money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:26 These organizations include the Paris-based organization for Economic Cooperation and Development (OECD), which loudly denounces what it calls ‘harmful tax competition’ is composed of representatives from major high tax nations. An OECD subsidiary is the Financial Action Task Force (FATF), a sort of financial Gestapo that pronounces who is legal and who is not legal in terms of money laundering activity. money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:29 In an obviously co-ordinated effort starting last May, these organizations each issued its own ‘blacklist’ of nations it found deficient in various ways. The FSF attached those it claimed were disruptive to international financial activity. FATF issued a list of countries allegedly lax on money laundering. The OECD came out with list of nations engaged in ‘unfair tax competition’. It was no coincidence that most of the world’s no-tax financial haven nations were on all these phony lists. A small coterie of statist bureaucrats in the financial ministries of the major nations had coordinated their propaganda work well: an uneducated, gullible global news media swallowed this phony story whole. money THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:31 Ignored in this concerted attack on small tax haven nations is the simple fact that under current U.S. and UK tax laws the biggest tax savings for foreigners can be found in Britain and in the United States. The United States is one of the biggest tax havens in the world — but only for non-U.S. persons. And in spite of the known fact that most of the dirty money laundering in the world takes place in London and New York, neither nation is on the FATF money laundering blacklist. money PALMETTO BEND CONVEYANCE ACT October 24, 2000    2000 Ron Paul 89:4 * Texas has already demonstrated sound management of this resource. Recreational use of the lake has been well-provided under Texas state management to include provision of a marina, pavilion, playground, and boating docks, all funded without federal money. A woodland bird sanctuary and wildlife viewing area will also be established upon transfer with the assistance of the Texas Parks and Wildlife Department and several environmental organizations. money OLDER AMERICANS ACT AMENDMENTS OF 2000 October 24, 2000    2000 Ron Paul 90:3 * Furthermore, Mr. Speaker, by involving itself in these areas, the federal government has politicized the offering of these services as well as assured inefficiencies in their delivery — inefficiencies that would not be present if the federal government respected its constitutional limits and allowed states, local communities and private citizens to provide these vital services to seniors. For example, one of the most contentious areas of this bill is the funding that goes to private organization to provide employment services. Many of these organizations are involved in partisan politics, and, because money is fungible, the federal grants to these organizations make taxpayers de facto underwriters of their political activities. As Thomas Jefferson said: ‘To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is both sinful and tyrannical.’ This ‘sinful and tyrannical’ action is inevitable whenever Congress exceeds its constitutional limitations and abuses the taxing power by forcing citizens to support the charitable activities of congressionally-favored organizations. One reason for this is that federal funding encourages these organizations to become involved in lobbying in order to gain more federal support. These organizations may even form alliances with other advocacy groups in order to build greater support for their cause. money NATIONAL SCIENCE EDUCATION ACT October 25, 2000    2000 Ron Paul 91:2 * H.R. 4271 not only singles out science for special emphasis, certain positions of the bill will lead to a national science curriculum. For instance, the bill calls for the Department of Education and the National Science Foundation to coordinate and disseminate information on ‘standard’ math and science curricula as well as licensing requirements for teachers of math, science, engineering or technology. While local school districts are not forced to adopt these standards, local schools will be pressured to adopt these standards because they are the ones favored by their DC-based overlords. I would also ask the drafters of this bill what purpose is served by spending taxpayer moneys to create and disseminate a model curriculum at the federal level if their intent is not to have local schools adopt the federally-approved model? money NATIONAL SCIENCE EDUCATION ACT October 25, 2000    2000 Ron Paul 91:3 * I also object to the provision of this bill providing special assistance to science teachers for training and professional development as well as grants for so-called ‘Master Teachers.’ Of course, I recognize that, like other citizens, teachers are underpaid because they are overtaxed. This is why I have introduced the Teacher Tax Cut Act (H.R. 937) which provides all teachers with a $1,000 tax credit. H.R. 937 effectively raises teacher salaries by lowering their taxes. In contrast H.R. 4271 raises the salaries of certain congressionally-favored educators by effectively cutting the pay of engineers, doctors, truck drivers, waiters, and even their fellow educators. Mr. Speaker, I cannot find any constitutional nor moral justification for Congress to redistribute money to any favorite class of professionals. money ECONOMIC PROBLEMS AHEAD November 13, 2000    2000 Ron Paul 93:3 * Mises, the great 20th century economist, predicted decades before the fall of the Soviet system that socialism was unworkable and would collapse upon itself. Although he did not live to see it, he would not have been surprised to witness the events of 1989 with the collapse of the entire Communist-Soviet system. Likewise, the interventionist-welfare system endorsed by the West, including the United States, is unworkable. Even without the current problems in the Presidential election, signs of an impasse within our system were evident. Inevitably, a system that decides almost everything through pure democracy will sharply alienate two groups: the producers, and the recipients of the goods distributed by the popularly elected congresses. Our system is not only unfairly designed to take care of those who do not work, it also rewards the powerful and influential who can gain control of the government apparatus. Control over government contracts, the military industrial complex and the use of our military to protect financial interests overseas is worth great sums of money to the special interests in power. money ECONOMIC PROBLEMS AHEAD November 13, 2000    2000 Ron Paul 93:8 * Even in the midst of our great imaginary budgetary surpluses, there has been no effort to cut. Once the economy tends to slow and more problems are apparent, expenditures are going to soar not only because of future problems but because of the new programs recently initiated. A huge financial bubble has been created by the GSEs, such as Fannie Mae and Freddie Mac. The $33 billion of shareholder equities in these two organizations has been leveraged into $1.07 trillion worth of assets- a bubble waiting to be pricked. The Congress has reacted to all these events irresponsibly by increasing spending, increasing tax revenues, doing nothing to reduce regulations, and being totally apathetic toward the dollar and monetary policy. We in the Congress have a moral and constitutional obligation to protect the value of the dollar and to understand why it is so important to the economy that a central bank not be given the unbelievable power of inflating a currency at will and pretending that it knows how to find tune an economy through this counterfeit system of money. money ECONOMIC PROBLEMS AHEAD November 13, 2000    2000 Ron Paul 93:9 * Rising interest rates in the high yield bond market is giving us an indication that a serious problem is just around the bend. Commercial debt was but $50 billion in 1994 and is now ten times higher now at $551 billion. The money supply is now growing at greater than a 10% rate and the derivatives market, although difficult to calculate, probably exceeds $75 trillion. We also have consumer debt, which is at record highs and has not yet shown signs of slowing. The Dow Jones Industrial Average stocks are now 5 times book value, the highest in over a hundred years. There will come a day when most people come to realize the fraud associated with Social Security and the inability for it to continue as currently managed. Rising oil and natural gas prices, it is argued, are not inflationary, yet they are playing havoc with the pocketbooks of most Americans. The economies of Asia, and in particular Japan, will not offer any assistance in dealing with the approaching storm in this country. Our foreign policy, which continues to obligate our support around the world, shows no signs of changing and will contribute to the crisis and possibly our bankruptcy. money James Madison Commemoration Commission Act 4 December 2000    2000 Ron Paul 96:2 If Congress can do whatever in their discretion can be done by money, and will promote the General Welfare, the Government is no longer a limited one, possessing enumerated powers, but an indefinite one, subject to particular exceptions.—Letter to Edmund Pendleton, January 21, 1792 (Madison, 1865, I, page 546) money ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:2 * I do not believe either should be blamed. I think we should deal with the real cause of the business cycle, and that is the Federal Reserve system. The FederalReserve system causes and brings about a boom period in a cycle, but it also brings about the bust. Because the bust, the correction, is inevitable consequence of the boom caused by unduly inflating the money supply. money ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:4 * The only way the Federal Reserve can lower interest rates is by inflating the money supply, increasing the money supply, which is the cause of our problems. So if the cause of our problem is the inflation, increasing the money supply which causes a boom, we can hardly solve our problems by further inflating. And then, too, there is a period of time in the business cycle where inflating the money supply or lowering interest rates do not get the response that many people hope for. money ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:6 * The other irony of all this is that when we have an economic boom, another reason given for raising interest rates to slow up the economy is to stop the inflation. This is fallacious thinking because the inflation comes from the money supply. The idea that economic growth and prosperity and productivity causes inflation, that is the price type of inflation, is wrong. If we have good productivity, prices go down, they do not go up. So the whole notion that we have to slow up the economy in order to prevent inflation is absolutely incorrect. money ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:8 * It is something that is directly stated in the Constitution that the Congress shall have the responsibility over the money supply, not a Federal Reserve system. Quite frankly, the Federal Reserve system is not even authorized by the Constitution. money ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:15 * What we must remember though, is that every time someone pressures the Fed to lower interest rates, they are saying to the Fed that the money supply must be inflated. The only tool the Fed has for lowering interest rates is to increase the supply of money. They are arguing the case for further systematic and deliberate debasement of the US dollar. Those who chant for lower interest rates are literally attacking the dollar. money ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:18 * Many are starting to talk now about a legislative stalemate with no clear majority in the House or Senate and the Presidency being uncertain. This concern about a stalemate is overblown. Not that the problem isn’t serious, but I am certain that under the conditions that we are about to experience, the Congress and the President will be all too willing to deal with the deteriorating conditions with increased spending and with a concerted bi-partisan effort to pressure the Federal Reserve to further inflate the currency in pursuing the fiction that the Federal Reserve can prevent a “hard landing” by merely increasing the money supply in an effort to dictate short-term Fed funds rates. money ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:22 * Ironically it’s argued that the deliberate raising the cost of borrowing money for everyone is that this will hold prices in check. Yet consumers and businesses suffer from this additional cost - pushing all prices upward. But even more ironic is the claim that they now care about “inflation” after a decade of massive monetary inflation-the real culprit.-The Federal Reserve meanwhile ignores the fact that the money supply is key to monetary policy, not admitting the damage has already been done. money ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:24 * The big debate already started in the financial and political circles is when, how much, and how quickly the Federal Reserve should lower interest rates. Indeed all will clamor to lower rates to revive the economy again. With the signs of rising prices in many sectors, especially energy, and in spite of the weak economy we can expect the Federal Reserve chairman to issue precautionary statements. He will reiterate that he must watch out for the resurgence of (price) inflation. In spite of his statements about concerns for inflation, if the stock market slumps and the economic slowdown is significant enough, we can be certain of one thing, the money supply will continue to grow rapidly in an attempt to keep interest rates low. But Mr. Greenspan will never admit that inflating is exactly what he’s been generously doing for the past 13 years. money ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:25 * A short time after Chairman Greenspan took over the reigns of the Federal Reserve the stock market crash of 1987 prompted him to alleviate concerns with a heavy dose of monetary inflation. Once again, in the slump of 1991 and 1992, he again re-ignited the financial bubble by more monetary inflation. There was no hesitation on Mr. Greenspan’s part to inflate as necessary to alleviate the conditions brought about by the Mexican financial crisis, the Asian crisis, the Russian ruble crisis, and with the Long-Term Capital Management crisis. Just one year ago the non-existent Y2K crisis prompted huge, unprecedented monetary inflation by the Federal Reserve. All these efforts kept interest rates below the market rate and contributed to the financial bubble that is now starting to deflate. But, there is no doubt that this monetary inflation did maintain an economy that seemed like it would never quit growing. Housing markets thrived, the stock market and bond market thrived, and in turn, the great profits made in these areas, especially gains made by stock market transactions, produced profits that inflated greatly the revenues that flowed into the Treasury. The serious problem that we now face, a collapsing stock market and a rapidly weakening economy, was caused by inflating the money supply along with artificially low interest rates. More inflation and continuing the policy of artificially low interest rates can’t possibly be the solution to the dilemma we face. money INTRODUCTION OF THE FAMILY EDUCATION FREEDOM ACT — HON. RON PAUL Wednesday, January 31, 2001    2001 Ron Paul 3:5 * Today, Congress can fulfill the wishes of the American people for greater control over their children’s education by simply allowing parents to keep more of their hard-earned money to spend on education rather than force them to send it to Washington to support education programs reflective only of the values and priorities of Congress and the federal bureaucracy. money India Disaster Relief 31 January 2001    2001 Ron Paul 5:5 Mr. Speaker, I thank you for the opportunity to express my sympathy for victims of the recent earthquake in the State of Gujarat, India and, at the same time, my concern for American taxpayers who, once again, will see their constitution ignored and their pockets raided by their representatives in Washington — it is, of course, easy to express sympathy with other people’s money. money India Disaster Relief 31 January 2001    2001 Ron Paul 5:7 Setting aside for the moment that nowhere in Article I, Sec. 8 (the enumerated powers clause) of the Federal Constitution can authority be found to take money from U.S. taxpayers for this purpose, additional problems result from passage of this resolution as well as those actions certain to follow as a consequence of the bill’s passage. money Honoring The Success Of Catholic Schools 6 February 2001    2001 Ron Paul 6:6 Allowing Congress to single out certain religions for honors not only insults those citizens whose faith is not recognized by Congress, it also threatens the religious liberty of those honored by Congress. This is because when the federal government begins evaluating religious institutions, some religious institutions may be tempted to modify certain of their teachings in order to curry favor with political leaders. I will concede that religious institutions may not water down their faith in order to secure passage of “Sense of Congress resolutions,” however, the belief that it is proper to judge religious institutions by how effectively they fulfill secular objectives is at the root of the proposals to entangle the federal government with state-approved religions by providing taxpayer dollars to religious organizations in order to preform various social services. Providing taxpayer money to churches creates the very real risk that a church may, for example, feel the need to downplay its teaching against abortion or euthanasia in order to maintain favor with a future pro-abortion administration and thus not lose its federal funding. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:15 It should be clearly evident, however, that all the campaign finance reforms and lobbying controls conceivable will not help the situation. Limiting the right to petition Congress or restricting people’s right to spend their own money will always fail and is not morally acceptable and misses the point. As long as government has so much to offer, public officials will be tempted to accept the generous offers of support from special interests. Those who can benefit have too much at stake not to be in the business of influencing government. Eliminating the power of government to pass out favors is the only real solution. Short of that, the only other reasonable solution must come by Members’ refusal to be influenced by the pressure that special-interest money can exert. This requires moral restraint by our leaders. Since this has not happened, special-interest favoritism has continued to grow. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:25 In this frantic effort to take care of the economy, promote education, save Social Security, and provide for the medical needs of all Americans, no serious discussion will take place on the political conditions required for a free people to thrive. If not, all efforts to patch the current system together will be at the expense of personal liberty, private property, and sound money. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:47 It’s important to understand how we got ourselves into this mess. The blind faith that wealth and capital can be created by the central bank’s creating money and credit out of thin air, using government debt as its collateral, along with fixing short-term interest rates, is a myth that must one day be dispelled. All the hopes of productivity increases in a dreamed-about new-era economy cannot repeal eternal economic laws. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:50 This is true, even to this day. The dollar still represents approximately 77% of all world central-bank reserves. This means that the United States has license to steal. We print the money and spend it overseas, while world trust continues because of our dominant economic and military power. This results in a current account and trade deficit so large that almost all economists agree that it cannot last. The longer and more extensive the distortions in the international market, the greater will be the crisis when the market dictates a correction. And that’s what we’re starting to see. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:51 When the recession hits full force, even the extraordinary power and influence of Alan Greenspan and the Federal Reserve, along with all the other central banks of the world, won’t be able to stop the powerful natural economic forces that demand equilibrium. Liquidation of unreasonable debt and the elimination of the over-capacity built into the system and a return to trustworthy money and trustworthy government will be necessary. Quite an undertaking! money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:55 During the past 30 years in the post-Bretton Woods era, worldwide sentiment has permitted us to inflate our money supply and get others to accept the dollar as if it were as good as gold. This convenient arrangement has discouraged savings, which are now at an historic low. Savings in a capitalist economy are crucial for furnishing capital and establishing market interest rates. With negative savings and with the FED fixing rates by creating credit out of thin air and calling it capital, we have abandoned a necessary part of free-market capitalism, without which a smooth and growing economy is sustainable. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:57 The most recent new era of the 1990s appeared to be an answer to all politicians’ dreams: a good economy, low unemployment, minimal price inflation, a skyrocketing stock market, with capital gains tax revenues flooding the Treasury, thus providing money to accommodate every special-interest demand. But it was too good to be true. It was based on an inflated currency and massive corporate, personal, and government borrowing. A recession was inevitable to pay for the extravagance that many knew was an inherent part of the new era, understanding that abundance without a commensurate amount of work was not achievable. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:61 If gold prices reflected the true extent of the inflated dollar, confidence in the dollar specifically and in paper more generally would be undermined. It is a high priority of the FED and all central banks of the world for this not to happen. Revealing to the public the fraud associated with all paper money would cause loss of credibility of all central banks. This knowledge would jeopardize the central banks’ ability to perform the role of lender of last resort and to finance/monetize government debt. It is for this reason that the price of gold in their eyes must be held in check. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:62 From 1945 to 1971, the United States literally dumped nearly 500 million ounces of gold at $35 an ounce in an effort to do the same thing by continuing the policy of printing money at will, with the hopes that there would be no consequences to the value of the dollar. That all ended in 1971 when the markets overwhelmed the world central banks. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:66 There is much more to inflation than rising prices. Inflation is defined as the increase in the supply of money and credit. Obsessively sticking to the rising prices definition conveniently ignores placing the blame on the responsible party – the Federal Reserve. The last thing central banks or the politicians, who need a backup for all their spending mischief, want is for the government to lose its power to create money out of thin air, which serves political and privileged financial interests. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:69 The extra credit in the 1990s has found its way especially into the housing market like never before. GSEs, in particular Freddie Mac and Fannie Mae, have gobbled up huge sums to finance a booming housing market. GSE securities enjoy implicit government guarantees, which have allowed for a generous discount on most housing loans. They have also been the vehicles used by consumers to refinance and borrow against their home equity to use these funds for other purposes, such as investing in the stock market. This has further undermined savings by using the equity that builds with price inflation that homeowners enjoy when money is debased. In addition, the Federal Reserve now buys and holds GSE securities as collateral in their monetary operations. These securities are then literally used as collateral for printing Federal Reserve notes; this is a dangerous precedent. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:70 If monetary inflation merely raised prices, and all prices and labor costs moved up at the same rate, and it did not cause dis-equilibrium in the market, it would be of little consequence. But inflation is far more than rising prices. Creating money out of thin air is morally equivalent to counterfeiting. It’s fraud and theft, because it steals purchasing power from the savers and those on fixed incomes. That in itself should compel all nations to prohibit it, as did the authors of our Constitution. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:71 Inflation is socially disruptive in that the management of fiat money-as all today’s currencies are- causes great hardships. Unemployment is a direct consequence of the constantly recurring recessions. Persistent rising costs impoverish many as the standard of living of unfortunate groups erodes. Because the pain and suffering that comes from monetary debasement is never evenly distributed, certain segments of society can actually benefit. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:75 Without the central bank creating money out of thin air, our welfare state and worldwide imperialism would have been impossible to finance. Attempts at economic fine-tuning by monetary authorities would have been impossible without a powerful central bank. Propping up the stock market as it falters would be impossible as well. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:78 Ultimately the solution will require a recommitment to the principles of liberty, including a belief in sound money- when money once again will be something of value rather than pieces of paper or mere blips from a Federal Reserve computer. In spite of the grand technological revolution, we are still having trouble with a few simple basic tasks – counting votes or keeping the lights on or understanding the sinister nature of paper money. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:93 The World Bank serves as the distributor of international welfare, of which the US taxpayer is the biggest donor. This organization helps carry out a policy of taking money from poor Americans and giving it to rich foreign leaders, with kickbacks to some of our international corporations. Support for the World Bank, the IMF, the WTO, and the International Criminal Court always comes from the elites and almost never from the common man. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:96 Our foreign policy has led to an incestuous relationship between our military and Hollywood. In December, Secretary of Defense William S. Cohen used $295,000 of taxpayer money to host a party in Los Angeles for Hollywood bigwigs. Pentagon spokesman Kenneth Bacon said it was well worth it. The purpose was to thank the movie industry for putting the military in a good light . A similar relationship has been reported with TV stations licensed by the US government. They have been willing to accept suggestions from the government to place political messages in their programming. This is a dangerous trend, mixing government and the media. Now here’s where real separation is needed! money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:101 Although the justification for our enhanced presence is the War on Drugs, protecting US oil interests and selling helicopters are the real reasons for last years’ $1.3 billion emergency funding. Already neighboring countries have expressed concern about our presence in Colombia. The US policymakers gave their usual response by promising more money and support to the neighboring countries that feel threatened. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:121 There are ten times the number of prisoners for drug offenses than there were in 1980, and 80% of the drug arrests are for non-violent possession. In spite of all the money spent and energy wasted, drug usage continues at a record pace. Someday we must wake up and realize the federal drug war is a farce. It has failed and we must change our approach. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:127 Seizure and forfeiture laws, clearly in violation of the Constitution, have served as a terrible incentive for many police departments to raise money for law-enforcement projects outside the normal budgeting process. Nationalizing the police force for various reasons is a trend that should frighten all Americans. The drug war has been the most important factor in this trend. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:142 Endless demands and economic corrections that come with the territory will always produce deficits. An accommodating central bank then is forced to steal wealth through the inflation tax by merely printing money and creating credit out of thin air. Even though these policies may work for a while, eventually they will fail. As wealth is diminished, recovery becomes more difficult in an economy operating with a fluctuating fiat currency and a marketplace overly burdened with regulation, taxes, and inflation. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:147 Our economic, military, and political power, second to none, has perpetuated a system of government no longer dependent on the principles that brought our Republic to greatness. Private-property rights, sound money, and self-reliance have been eroded, and they have been replaced with welfarism, paper money, and collective management of property. The new system condones special-interest cronyism and rejects individualism, profits, and voluntary contracts. money CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:159 Basic morality, free markets, sound money, living within the rule of law, and adhering to the fundamental precepts that made the American Republic great are what we need. And it’s worth the effort. money POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:21 The World Bank serves as the distributor of international welfare, of which the U.S. taxpayer is the biggest donor. This organization helps carry out a policy of taking money from poor Americans and giving it to rich foreign leaders, with kickbacks to some of our international corporations. money POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:24 Our foreign policy has led to an incestuous relationship between our military and Hollywood. In December, our Secretary of Defense used $295,000 of taxpayers’ money to host a party in Los Angeles for Hollywood bigwigs. Pentagon spokesman Kenneth Bacon said it was well worth it. The purpose was to thank the movie industry for putting the military in a good light. money POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:32 Already neighboring countries have expressed concern about our presence in Colombia. The U.S. policymakers gave their usual response by promising more money and support to the neighboring countries that feel threatened. money POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:58 There are 10 times the number of prisoners for drug offenses than there were in 1980, and 80 percent of the drug arrests are for nonviolent possession. In spite of all the money spent and energy wasted, drug usage continues at a record pace. money POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:67 Seizure and forfeiture laws, clearly in violation of the Constitution, have served as a terrible incentive for many police departments to raise money for law enforcement projects outside the normal budgeting process. Nationalizing the police force for various reasons is a trend that should frighten all Americans. The drug war has been the most important factor in this trend. money POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:89 Endless demands and economic corrections that come with the territory will always produce deficits. An accommodating central bank then is forced to steal wealth through the inflation tax by merely printing money and creating credit out of thin air. Even though these policies may work for awhile, eventually they will fail. As wealth is diminished, recovery becomes more difficult in an economy operating with a fluctuating fiat currency and a marketplace overly burdened with regulation, taxes and inflation. money POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:93 Our economic, military, and political power, second to none, has perpetuated a system of government no longer dependent on the principles that brought our Republic to greatness. Private-property rights, sound money and self-reliance have been eroded; and they have been replaced with welfarism, paper money, and collective management of property. The new system condones special-interest cronyism and rejects individualism, profits and voluntary contracts. money POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:104 Basic morality, free markets, sound money, and living within the rule of law, while clinging to the fundamental precepts that made the American Republic great, are what we need. And it is worth the effort. END money The Economy February 13, 2001    2001 Ron Paul 13:1 Mr. Speaker: Many government and Federal Reserve officials have repeatedly argued that we have no inflation to fear. Yet those who claim this, define inflation as rising consumer and producer prices. Although inflation frequently leads to price increases we must remember that the free market definition of inflation is the increase in the supply of money and credit. Monetary inflation is seductive in that it can cause great harm without significantly affecting government price indices. The excess credit may well go into stock market and real estate speculation with consumer price increases limited to such things as energy, repairs, medical care and other services. One should not conclude, as so many have in the past decade, that we have no inflation to worry about. Imbalances did develop with the 1990’s monetary inflation but were ignored. They are now becoming readily apparent as sharp adjustments take place—such as we have seen in the past year in the NASDAQ. money The Economy February 13, 2001    2001 Ron Paul 13:3 Raising interest rates 6 times in 1999-2000 has had an effect and the central planners are now worried. Falsely, they believe that if only the money spigot is once again turned on, all will be well. That will prove to be a pipe dream. money The Economy February 13, 2001    2001 Ron Paul 13:6 Instead of blind faith in the Federal Reserve to run the economy, we should become more aware of Congress’s responsibility for maintaining a sound dollar and removing the monopoly power of our central bank to create money and credit out of thin air and fix short term interest rates—which is the real cause of all our economic downturns. money The Economy February 13, 2001    2001 Ron Paul 13:7 Between 1995 and today, the Greenspan Fed increased the money supply as measured by (MZM) by $1.9 trillion or a 65% increase. There is no reason to look any further for the explanation of why the economy is slipping with labor costs rising, energy costs soaring, and medical and education costs skyrocketing, while the stock market is disintegrating. Until we look at the unconstitutional monopoly power the Federal Reserve has over money and credit we can expect a continuation of our problems. Demanding lower interest rates is merely insisting the Federal Reserve deliberately create even more credit, which caused the problem in the first place. We cannot restore soundness to the dollar by debasing the dollar—which is what lowering interest rates is all about—printing more money. money The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:1 The golden new Era of the 1990s has been welcomed and praised by many observers. But I’m afraid a different type of new era is arriving-a dangerous one- heralding the end of 30 years of fiat money. If so, it’s a serious matter that deserves close attention by Congress. money The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:12 One day it will become known that technological advances and improvements in productivity also have a downside. This technology hid the ill effects of the monetary mischief the Fed had enthusiastically engaged in over the past decade. Technological improvements, while keeping the CPI and the PPI prices in check, led many, including Greenspan, to victoriously declare that no inflation existed and that a new era had indeed arrived. Finally, it’s declared that the day has arrived that printing money is equivalent to producing wealth and without a downside. Counterfeiting works! money The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:19 It’s reasonable to assume a worldwide slump will ensue as a result of the worldwide monetary mischief our authorities have engaged in the past 30 years. Never before has the world gone so long without money having some tangible value attached to it. Trust in politicians and Central Bankers may have been a benefit in the inflationary part of the cycle but this trust will quickly dissipate in the corrected phase. Monetary heroes can quickly become villains as the price is paid for previous excesses and extravagance. money The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:20 However, hope springs eternal, so no effort will soon be made to restore sound money. A giant worldwide slump will merely prompt massive monetary inflation and deficit financing. The Congress and the American people should anticipate this will happen even though it should not. money The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:22 The ultimate solution will only come with the rejection of fiat money worldwide, and a restoration of commodity money. Commodity money if voluntarily and universally accepted could give us a single world currency requiring no money managers, no manipulators orchestrating a man-made business cycle with rampant price inflation. Real free trade without barriers or tariffs and a single sound currency is the best way to achieve international peace and prosperity. money Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:4 In a free market economy, you do not have a central bank pretending it has knowledge it does not have, that it knows exactly what the money supply should be and what interest rate should be. That is a prescription for disaster; and it leads to booms and busts, speculations in the stock markets, crashes in the stock markets. This is a wellknown phenomenon. It has been with us since 1913, since we have had the Federal Reserve. We have seen it in the speculation in the 1920s and the depression of the 1930s. It is ongoing. money Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:5 We have a responsibility here in the Congress to deal with this. We have a responsibility to maintain the integrity of the money. Yet we up that responsibility to a secretive body that works on its own, deliberating and deciding how much money supply we should have. money Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:6 To lower interest rates, a central bank has to increase the money. That is debasement. That is devaluing the money deliberately. In the old days, when the king would do this, they would clip coins. Literally coin debasement, stealing value from coinage in the old days was a capital crime. Today, though, it is accepted practice in all economies of the world. We have had no linkage of any currency of the world in the last 30 years to anything of real value. money Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:7 The economies have functioned relatively well. But just in the last 6 years, we have had eight financial international crises, all patched together by more inflation, more printing of more money. Let me tell my colleagues, I am convinced it will not last, it will not continue. money Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:10 The money supply right now is currently rising at the rate of 20 percent, as measured by MZN. This is horrendous inflation. This is inflation. Everybody says no, there are reassurances. The Federal Reserve and all the statisticians say there is no inflation. The CPI is okay and the PPI is okay. But there is inflation. Because if one increases the supply of money, one is creating inflation. money Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:12 But the real problem with the inflation when one allows a central bank to destroy its money is twofold. One, it creates an overcapacity or overinvestment, excessive debt that always has to be wiped out and cleaned out of the situation, or economic growth cannot be resumed. Japan has not permitted this to happen, and economic growth has not resumed. That is the most important aspect because that causes the unemployment and that causes the harm to so many people. money Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:2 Some people claim that they are not quite sure why markets go up and all of a sudden crash; and others say if only Alan Greenspan would just print more money, inflate the currency faster, lower the interest rates, all would be well. But I do not think it is that simple. money Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:3 It is very clear that we have these cycles and these booms coming from a monetary system that is pure fiat. Fiat money means that the money is created out of thin air, and the characteristic of a fiat monetary system is that you have overspeculation, you have stock market booms, you have stock market crashes, and you have a business cycle. This comes from the mismanagement of money, mainly because man, in his efforts to plan, to have economic central planning through monetary policy, is incapable of providing the information necessary that a free market is supposed to have. money Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:4 Only a free market can tell us what interest rates should be or what the money supply should be. But we have become dependent on a Federal Reserve system that pretends to know all these things, and we have allowed Alan Greenspan to believe that he can regulate the entire economy as well as the stock market by the Open Market Committee. money Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:5 Inflation is nothing more than the creation of new money out of thin air. Sometimes it raises prices in certain areas, and other times in other places. But the whole principle of fiat money is when you create new money, you devalue/ lower the value of the dollar. money Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:6 This is what is happening. Right now we are increasing the money supply as measured by MZM at the rate of 20 percent per year. This means that, ultimately, that dollar that we use to purchase goods and services will go down in value. And yet the only thing that we hear about is the cry to the Federal Reserve, just print more money, faster, because that will save us all. It will raise the stock market; it will make sure that the economy does not go down and go into a downturn. money Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:7 This is not the case. Ultimately what we have to have is monetary reform, currency reform. We have to have a time when once again we have money that cannot be created out of thin air. We have to have money of value, something that governments and politicians cannot create out of thin air. Unless we address that, we are going to continue with these problems. money Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:9 In 1996, the chairman of the Federal Reserve Board talked about the exuberance, the irrational exuberance in the stock market; and yet I think he knew, I certainly knew, and others knew, that there was irrational exuberance, because even at that time we were printing money like crazy. There was overspeculation. money Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:10 If he had been seriously concerned about the exuberance getting out of control in 1996, he might have considered not inflating the currency quite so rapidly, not devaluing the money quite so rapidly. But what has he done since that time? The Federal Reserve has literally created $2.3 trillion of new money since 1996, further creating a bigger bubble, which eventually had to collapse, and that is what we are in the midst of. It can be tough. It is going to be tough for a lot of people. We can have this economic downturn, and this means jobs and a standard of living that will be threatened. money Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:11 This type of a monetary system also encourages us to do things unwisely. When interest rates are lower than they are supposed to be, we borrow more money and we do not save as much money, so savings has a negative rate. Yet people are way in debt, business people are in debt, and then business people are actually encouraged to do things that are not wise. They overbuild; they build into the system overcapacity and mal-investment which eventually has to be cleansed out of the system. money A New China Policy April 25, 2001    2001 Ron Paul 25:8 The Taiwan Relations Act essentially promises that we will defend Taiwan at all costs and should be reevaluated. Morally and constitutionally a treaty cannot be used to commit us to war at some future date. One generation cannot declare war for another. Making an open-ended commitment to go to war, promising troops, money and weapons, is not permitted by the Constitution. money INTRODUCTION OF THE AGRICULTURE EDUCATION FREEDOM ACT — HON. RON PAUL April 26, 2001    2001 Ron Paul 27:1 * Mr. PAUL. Mr. Speaker, I rise to introduce the Agriculture Education Freedom Act. This bill addresses a great injustice being perpetrated by the Federal Government on those youngsters who participate in programs such as 4-H or the Future Farmers of America. Under current tax law, children are forced to pay federal income tax when they sell livestock they have raised as part of an agricultural education program. Think about this for a moment. These kids are trying to better themselves, earn some money, save some money and what does Congress do? We pick on these kids by taxing them. money INTRODUCTION OF THE AGRICULTURE EDUCATION FREEDOM ACT — HON. RON PAUL April 26, 2001    2001 Ron Paul 27:4 * It is time we stopped taxing youngsters who are trying to earn money to go to college by selling livestock they have raised through their participation in programs such as 4-H or Future Farmers of America. Therefore, I call on my colleagues to join me in supporting the Agriculture Education Freedom Act. money Inflation Is Still With Us 3 May 2001    2001 Ron Paul 30:1 Mr. PAUL. Mr. Speaker, almost on a daily basis, government officials reassure us there is no inflation to worry about. But, today’s definition of inflation of rising prices as measured by an artificial CPI and PPI is seriously flawed. Rising prices are but one of the many consequences of true inflation — which is an increase in the supply of money and credit. money Inflation Is Still With Us 3 May 2001    2001 Ron Paul 30:2 To understand the perversities of inflation one must look to the money supply. The money supply, as measured by M3, rose an astounding $42 billion last week and is up a whopping $210 billion in the past ten weeks. MZM, another important measure of inflation, is rising at the rate of 27%. Now that’s monetary debasement! money Inflation Is Still With Us 3 May 2001    2001 Ron Paul 30:8 Mismanaging world fiat currencies and working to iron out the trade imbalances that result, through a worldwide managed trade organization, will not suffice. We must one day address the subject of sound money and free market interest rates, where interest rates are not set by the central banks of the world. money Inflation Is Still With Us 3 May 2001    2001 Ron Paul 30:10 But this is an expected consequence of monetary debasement, which generally leads to social unrest. But, blaming capitalism and freedom for the harm done by inflationism, special interest corporatism, and interventionism presents a danger to us all, since the case for commodity money and individual liberty is lost in the shouting. Unless this message is heard and distinguished from the current system, freedom and prosperity will be lost. Leaders of the current worldwide system that has evolved since the collapse of the Soviet empire pay lip service to free trade and free markets, but tragically they are moving us toward a fascist system of partnerships with government, big businesss, and international banking at the expense of the middle class and the poor. money AMERICA NOT GETTING FAIR SHAKE FROM UNITED NATIONS — May 10, 2001    2001 Ron Paul 31:4 Just recently, in the last week, the United States was kicked off the Human Rights Commission, as well as the International Narcotics Control Board. This is an affront to our dignity and ought to point out to us that, although we pay the largest amount of money for peacekeeping missions and the largest amount of dues, here it is that, because there is disagreement, we are humiliated by being kicked off these commissions. money AMERICA NOT GETTING FAIR SHAKE FROM UNITED NATIONS — May 10, 2001    2001 Ron Paul 31:10 There are hundreds of millions of dollars here for population control around the world. Some would say, well, as long as we write some little sentence in here and say “please do not use any of the money for abortion,” that will alleviate their conscience about sending tax dollars over to do abortions in places like China and other places in the world. Well, that does not work, because all funds are fungible. Funds can be shifted around. If we send the money, it can be used. If we specifically say “do not use them,” they can just shift the funds around, so I see that as not being a very good idea. money H.R. 1646 10 May 2001    2001 Ron Paul 32:5 I would like to have struck from the bill all the money for population control. I will support the Mexican City language, but it really does not do that much. All funds are fungible, and if we provide hundreds of millions of dollars for population control and say please do not use it for abortion, it is just shifting some funds around. So there is no real prohibition on the use of American taxpayers’ money for abortion if we do not strike all of these funds. money Statement on the Congressional Education Plan May 22, 2001    2001 Ron Paul 38:4 Some will claim that this does not violate states’ control because states are free to not accept federal funds. However, every member here knows that it is the rare state administrator who will decline federal funds to avoid compliance with federal mandates. It is time Congress stopped trying to circumvent the constitutional limitations on its authority by using the people’s own money to bribe them into complying with unconstitutional federal dictates. money Sudan Peace Act 13 June 2001    2001 Ron Paul 40:9 Without Constitutional authority, this bill goes on to encourage the spending of $10 million of U.S. taxpayers hard-earned money in Sudan but for what purpose? From the text of the bill, we learn that “The United States should use all means of pressure available to facilitate a comprehensive solution to the war in Sudan, including (A) the multilateralization of economic and diplomatic tools to compel the Government of Sudan to enter into a good faith peace process; [note that it says “compel . . . good faith peace”] and (B) the support or creation of viable democratic civil authority and institutions in areas of Sudan outside of government control.” I believe we used to call that nation-building before that term became impolitic. How self-righteous a government is ours which legally prohibits foreign campaign contributions yet assumes it knows best and, hence, supports dissident and insurgent groups in places like Cuba, Sudan and around the world. The practical problem here is that we have funded dissidents in such places as Somalia who ultimately turned out to be worse than the incumbent governments. Small wonder the U.S. is the prime target of citizen-terrorists from countries with no real ability to retaliate militarily for our illegitimate and immoral interventions. money Internationalizing SEC 13 June 2001    2001 Ron Paul 41:7 And we should not take that lightly, although this generally is not of much interest to so many people because we do so much and we have such great hopes that it will always do so much good. From just observing history, recent history, the last 20, 30, 40 years since World War II, so often when we get involved and we send money to help the good guys, it is not infrequent the good things that we send in, goods and services and weapons, end up in the hands of the opposition and the enemy. So that is always a possibility once again. These commodities and services and the things that we send and the money may well end up literally being used against the people we are trying to help. money Internationalizing SEC 13 June 2001    2001 Ron Paul 41:9 And even if we assume we have a surplus and the money is already in the budget, we still should be concerned because we are making a choice. We are saying that we are going to take this money and take the risk of sending it over there. Maybe it will help. Maybe I am right, maybe it will not do quite as much good as we think, but we make a trade-off. We say today that we will send this money with the hope that it will do good at the expense of a domestic program. Do my colleagues think every poor person in this country has been taken care of, their medical care needs or housing? So we do make choices continuously, but we forget about that. money Conscription Policies 13 June 2001    2001 Ron Paul 42:8 Additionally, the government can save some money, albeit not much, by not having to buy uniforms for these civilians. money Conscription Policies 13 June 2001    2001 Ron Paul 42:9 Yet the most compelling reason for having volunteer military forces is the right of a person to own his or her body. The right to self-ownership must be supreme in a free nation, since without it there is no justification for government or laws at all. If one does not own his body, then why should murder be a crime? Why should there be money for the individual to spend? The self must own itself for there to be any liberty. And clearly one does have self-ownership. A man controls his own actions, and efforts to force him to do what he desires not to do are nugatory. The best the State can do is arrest him after he has disobeyed the law. It cannot prevent a willful person from committing illegal acts. The draft ignores the concept of self-ownership and proceeds to diminish the available benefits of a free society for young men. money Conscription Policies 13 June 2001    2001 Ron Paul 42:10 Issues of cost and unfairness can sway those not seeing a moral reason to oppose conscription. The government spends a lot of money that might be used in armory for war in order to draft a number of men that would be similar to the number who might otherwise volunteer. In this way, the draft is a redundant method that consumes entirely too much money. money Conscription Policies 13 June 2001    2001 Ron Paul 42:17 Free people can resist the draft easily. They need not register at all, or they can flee the country when they are called to serve. After all, they still own their bodies regardless of what the law says. But the change of life necessary to avoid the government allows the government some control of ones life, even when one does not openly submit. One does not need to recognize the right of the government to conscript its citizens for any purpose in order to be disrupted by the institution. If one pays income taxes and expects to get that money back in the form of college aid, he must register for Selective Service. If one wishes to collect the money stolen through the payroll tax for so-called “Social Security,” he must register. Most people are not able to forgo paying taxes if they wish to work, so if they hope to see their tax dollars again they must register for the draft. money Faith Based Initiatives June 13, 2001    2001 Ron Paul 43:8 The faith-based initiative is our latest proof that politicians are great entrepreneurs in finding ways to expand the scope of government, their own power and control over our lives. This particular initiative should be of concern to all because, in the best scenario, it will only waste money. In the worst case, however, it will be destructive to our nation. money Resolution Condemning The Taliban 13 June 2001    2001 Ron Paul 44:3 It is said that it is not sent to the Taliban, but the gentleman from California (Mr. ROHRABACHER), who is a bit of an expert on Afghanistan, just revealed to us earlier that indeed some of this money and some of this aid was designated to go to the Taliban-controlled areas. money Resolution Condemning The Taliban 13 June 2001    2001 Ron Paul 44:5 The point that I would like to make is after these many, many millions of dollars and over $1 billion have been spent, we have come to this. They are in worse shape than ever. Yes, we can condemn what they are doing, but we should question whether or not our policy in Afghanistan has really served us well, or served the people well. It may well be that when we send aid, that it literally helps the Taliban, because they do not have to then buy food. They can take their money and use it to enforce these rules and to be a more authoritarian society, to buy weapons. money INTRODUCTION OF FOODS ARE NOT DRUGS ACT — HON. RON PAUL June 21, 2001    2001 Ron Paul 46:5 * The FDA is so fanatical about censoring truthful information regarding dietary supplements it even defies federal courts! For example, in the case of Pearson v. Shalala, 154 F.3d 650 (DC Cir. 1999), rehg denied en banc, 172 F.3d 72 (DC Cir. 1999), the United States Court of Appeals for the DC Circuit Court ruled that the FDA violated consumers’ first amendment rights by denying certain health claims. However, the FDA has dragged its feet for over two years in complying with the Pearson decision while wasting taxpayer money on frivolous appeals. It is clear that even after Pearson the FDA will continue to deny legitimate health claims and force dietary supplement manufacturers to waste money on litigation unless Congress acts to rein in this rogue agency. money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:1 Mr. PAUL. Mr. Speaker, I am pleased to take this opportunity to draw my colleagues’ attention to the attached article “Postal Service Has Its Eye On You” by John Berlau of Insight magazine, which outlines the latest example of government spying on innocent citizens. Mr. Berlau deals with the Post Office’s “Under the Eagle’s Eye” program which the Post Office implemented to fulfill the requirements of the Nixon-era Bank Secrecy Act. Under this program, postal employees must report purchases of money orders of over $3,000 to federal law enforcement officials. The program also requires postal clerks to report any “suspicious behavior” by someone purchasing a money order. Mr. Speaker, the guidelines for reporting “suspicious behavior” are so broad that anyone whose actions appear to a postal employee to be the slightest bit out of the ordinary could become the subject of a “suspicious activity report,” and a federal investigation! money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:2 As postal officials admitted to Mr. Berlau, the Post Office is training its employees to assume those purchasing large money orders are criminals. In fact, the training manual for this program explicitly states that “it is better to report many legitimate transactions that seem suspicious than let one illegal one slip through.” This policy turns the presumption of innocence, which has been recognized as one of the bulwarks of liberty since medieval times, on its head. Allowing any federal employee to assume the possibility of a crime based on nothing more than a subjective judgment of “suspicious behavior” represents a serious erosion of our constitutional rights to liberty, privacy, and due process. money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:7 But while your bank teller may not have been snooping and snitching on your every financial move, your local post office has been (and is) watching you closely, Insight has learned. That is, if you have bought money orders, made wire transfers or sought cash cards from a postal clerk. Since 1997, in fact, the window clerk may very well have reported you to the government as a “suspicious” customer. It doesn’t matter that you are not a drug dealer, terrorist or other type of criminal or that the transaction itself was perfectly legal. The guiding principle of the new postal program to combat money laundering, according to a U.S. Postal Service training video obtained by Insight, is: “It’s better to report 10 legal transactions than to let one illegal ID transaction get by.” money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:12 But postal officials who run “Under the Eagle’s Eye” say that flagging customers who do not follow “normal” patterns is essential if law enforcement is to catch criminals laundering money from illegal transactions. “The postal service has a responsibility to know what their legitimate customers are doing with their instruments,” Al Gillum, a former postal inspector who now is acting program manager, tells Insight. “If people are buying instruments outside of a norm that the entity itself has to establish, then that’s where you-start with suspicious analysis, suspicious reporting. It literally is based on knowing what our legitimate customers do, what activities they’re involved in.” money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:13 Gillum’s boss, Henry Gibson, the postalservice’s Bank Secrecy Act compliance officer, says the anti-money-laundering program started in 1997 already has helped catch some criminals. “We’ve received acknowledgment from our chief postal inspector that information from our system was very helpful in the actual catching of some potential bad guys,” Gibson says. money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:15 Gibson and Gillum say the program resulted from new regulations created by the Clinton-era Treasury Department in 1997 to apply provisions of the Bank Secrecy Act to “money service businesses” that sell financial instruments such as stored-value cash cards, money orders and wire transfers, as well as banks. Surprisingly, the postal service sells about one-third of all U.S. money orders, more than $27 billion last year. It also sells stored-value cards and some types of wire transfers. Although the regulations were not to take effect until 2002, Gillum says the postal service wanted to be “proactive” and “visionary.” money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:17 It also was the Bank Secrecy Act that opened the door for the “Know Your Customer” rules on banks, to which congressional leaders objected as a threat to privacy. Lawrence Lindsey, now head of the Bush administration’s National Economic Council, frequently has pointed out that more than 100,000 reports are collected on innocent bank customers for every one conviction of money laundering. “That ratio of 99,999-to-1 is something we normally would not tolerate as a reasonable balance between privacy and the collection of guilty verdicts,” Lindsey wrote in a chapter of the Competitive Enterprise Institute’s book The Future of Financial Privacy, published last year. money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:18 Critics of this snooping both inside and outside the postal service are howling mad that the agency’s reputation for protecting the privacy of its customers is being compromised. “It sounds to me that they’re going past the Treasury guidelines,” says Rick Merritt, executive director of Postal Watch, a private watchdog group. The regulations, for example, do not give specific examples of suspicious activity, leaving that largely for the regulated companies to determine. But the postal-service training video points to lots of “red flags,” such as a customer counting money in the line. It warns that even customers whom clerks know often should be considered suspect if they frequently purchase money orders. money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:20 Some of the examples given are red flags such as a sleazy-looking customer offering the postal clerk a bribe. But the video also encourages reports to be filed on what appear to be perfectly legal money-order purchases. A black male teacher and Little League coach whom the female clerk, also black, has known for years walks into the post office wearing a crisp, pinstriped suit and purchases $2,800 in money orders, just under the $3,000 daily minimum for which the postal service requires customers to fill out a form. He frequently has been buying money orders during the last few days. money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:21 “Gee, I know he seems like an okay guy,” Regina Goodclerk tells the employee. “But buying so many money orders all of a sudden and just under the reporting limit, I’d rather be sure. He’s a good guy, but this is just too suspicious to let go by.” money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:22 Gillum says this is part of the message that postal clerks can’t be too careful because anyone could be a potential money launderer. “A Little League coach could be a deacon in the church, could be the most upstanding citizen in the community, but where is that person getting $2,800 every day?” Gillum asks. “Why would a baseball coach, a schoolteacher in town, buy [that many money orders]? Our customers don’t have that kind of money. If he’s a schoolteacher, if he’s got a job on the side, he’s going to have a bank account and going to write checks on it, so why does he want to buy money orders? That’s the point.” money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:24 One thing that should set off alarms, the postal service says, is a customer objecting to filling out an 8105–A form that requests their date of birth, occupation and driver’s license or other government-issued ID for a purchase of money orders of $3,000 or more. If they cancel the purchase or request a smaller amount, the clerk automatically should fill out Form 8105–B, the “suspicious-activity” report. “Whatever the reason, any customer who switches from a transaction that requires an 8105–A form to one that doesn’t should earn himself or herself the honor of being described on a B form,” the training manual says. money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:26 Both Singleton and Nojeim say “Under the Eagle’s Eye” unfairly targets the poor, minorities and immigrants — people outside of the traditional banking system. “A large proportion of the reports will be immigrants sending money back home,” Nojeim says. Singleton adds, “It lends itself to discrimination against people who are sort of marginally part of the ordinary banking system or who may not trust things like checks and credit cards.” money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:27 There’s also the question of what happens with the information once it’s collected. Gillum says that innocent customers should feel secure because the information reported about “suspicious” customers is not automatically sent to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to be shared with law enforcement agencies worldwide. Although he says FinCEN wants the postal service to send all reports along to it, the postal authorities only will send the clerks’ reports if they fit “known parameters” for suspicious activity. “We are very sensitive to the private citizenry and their rights,” Gillum insists. “For what it’s worth, we have every comfort level that, if we make a report, there are all kinds of reasons to believe that there is something going on there beyond just a legitimate purchase of money orders.” money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:31 Gibson says his agency must set an example for private businesses on tracking, money orders. “Being a government agency, we feel it’s our responsibility that we should set the tone,” he said. The Treasury Department “basically challenged us in the midnineties to step up to the plate as a government entity,” Gillum adds. money “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:33 In the meantime, the private sector is getting ready to comply with the Treasury regulations before they go into effect next January. But if 7-Eleven Inc., which through its franchises and company-owned stores is one of the largest sellers of money orders, is any guide, private vendors of money orders probably will not issue nearly as many suspicious- activity reports as the postal service. “’Our philosophy is to follow what the regulations require, and if they don’t require us to fill out an SAR [suspicious-activity report] . . . then we wouldn’t necessarily do it,” 7-Eleven spokeswoman Margaret Chabris tells Insight. Asked specifically about customers who cancel or change a transaction when asked to fill out a form, Chabris said, “We are not required to fill out an SAR if that happens.” So why does the U.S. Postal Service? money Re-Importation of Pharmaceuticals 11 July 2001    2001 Ron Paul 50:3 Opponents of this amendment have been waging a hysterical campaign to convince members that this amendment will result in consumers purchasing unsafe products. I dispute this claim for several reasons. Unlike the opponents of this amendment I do not believe that consumers will purchase an inferior pharmaceutical simply to save money. Instead, consumers will carefully shop to make sure they are receiving the highest possible quality at the lowest possible price. In fact, the experience of my constituents who are currently traveling to Mexico to purchase prescription drugs shows that consumers are quite capable of ensuring they only purchase safe products without interference from Big Brother. money Re-Importation of Pharmaceuticals 11 July 2001    2001 Ron Paul 50:4 Furthermore, if the supporters of the status quo were truly concerned about promoting health, instead of protecting the special privileges of powerful companies, they would consider how our current policies endanger safety by artificially raising the cost of prescription drugs. Oftentimes lower income Americans will take less than the proper amount of a prescription medicine in order to save money or forgo other necessities, including food, in order to afford their medications. money REIMPORTATION OF FDA-APPROVED PHARMACEUTICALS -- HON. RON PAUL July 17, 2001    2001 Ron Paul 51:5 * Furthermore, if the supporters of the status quo were truly concerned about promoting health, instead of protecting the special privileges of powerful companies, they would be more concerned with reforming the current policies which endanger health by artificially raising the cost of prescription drugs. Oftentimes lower income Americans will take less of a prescription medicine than necessary to save money. Some senior citizens even forgo other necessities, including food, in order to afford their medications. By reducing the prices of pharmaceuticals this amendment will help ensure no child has to take less than the recommended dosage of a prescription medicine and no senior has to choose between medication and food. money A BAD OMEN July 17, 2001    2001 Ron Paul 52:4 Money, as usual, is behind the Milosevic’s extradition. Bribing Serbian Prime Minister Zoran Djindjic, a U.S.-sponsored leader, prompted strong opposition from Yugoslavian Prime Minister Zoran Zizic and Yugoslavian President Vojislaw Kostunica. money A BAD OMEN July 17, 2001    2001 Ron Paul 52:5 A Belgrade historian, Aleksa Djilas, was quoted in The New York Times as saying: “We sold him for money, and we won’t really get very much money for it. The U.S. is the natural leader of the world, but how does it lead? This justifies the worst American instincts, reinforcing this bullying mentality.” money A BAD OMEN July 17, 2001    2001 Ron Paul 52:16 We should fear and condemn any effort to escalate the conflict with troops or money from any outside sources. Our troops are already involved and our money calls the shots. Extricating ourselves will get more difficult every day we stay. But the sooner we get out the better. We should be listening more to candidate George Bush’s suggestion during the last campaign for bringing our troops home from this region. money A BAD OMEN July 17, 2001    2001 Ron Paul 52:18 Money and power has permitted the United States the luxury of dictating terms for Milosevic’s prosecution, but our policy of arbitrary interventions in the Balkans is sowing the seeds of tomorrow’s war. money Statement Paul Amendment to Defund the UN July 18, 2001    2001 Ron Paul 56:4 Let me just read the amendment because it is just three lines. It says, “None of the funds appropriated in this act may be used for any United States contribution to the United Nations or any affiliated agency of the United Nations.” It would defund the United Nations. It would take away the dues that we pay the United Nations as well as the amount of money that we are paying to pay our back dues. money Statement Paul Amendment to Defund the UN July 18, 2001    2001 Ron Paul 56:12 No, we do not want the international court to apply to us, but it is okay with our money, our prestige and our pressure to endorse the International Criminal Tribunal for Yugoslavia, so that we can go in there and arrest the leaders that we have decided were the bad guys and leave the good guys alone, as if there were not bad guys on both sides in Yugoslavia. money Statement Paul Amendment to Defund the UN July 18, 2001    2001 Ron Paul 56:13 But this presumption on our part that we can control the United Nations and arrest only those individuals that we do not like and allow the other ones to go free and that this will never apply to us, I think we are missing the point and it is a dangerous trend. Because you say, well, yes, we are powerful, we have the money and we have the weapons and we can dictate to the United Nations. They will not arrest us or play havoc with us. Yet at the same time we have already recognized that the U.N. Human Rights Commission which was voted on by a democratic vote kicked us in the face and kicked us off. money Banning U.S. Contributions To United Nations 18 July 2001    2001 Ron Paul 57:4 Mr. Chairman, quite possibly we will not have to take a long time on this. In many ways this is a similar amendment, but different with respect to as how the money would be spent after we send it to the United Nations. The amendment says, “None of the funds appropriated in this Act may be used for any United States contribution for the United Nations peacekeeping operations.” money Banning U.S. Contributions To United Nations 18 July 2001    2001 Ron Paul 57:6 But back to what I said earlier, I just think the approach of using a United Nations standing army, which is what we are getting closer to, to go around and police the world in areas that we do not have justification based only on our national security, I see this money as being dangerously used and it invites trouble for us. money Banning U.S. Contributions To United Nations 18 July 2001    2001 Ron Paul 57:7 It is not beyond comprehension that one day in the not-too-distant future that we may be in a much hotter war in the Yugoslovia area. Things are not very peaceful in Macedonia, and they are actually demonstrating against Americans in Macedonia. The same people that we supported in Kosovo, the KLA, now they have changed their name and they are the radical Albanians playing havoc in Macedonia. And it is with our money. money Banning U.S. Contributions To United Nations 18 July 2001    2001 Ron Paul 57:14 Let me just close by saying that I urge a “yes” vote to stop the funding for the peacekeeping missions of the United Nations, believing very sincerely that they do not do much good and they do harm and potentially a great deal of harm in the future. They do not serve our national self-interests. We have the United Nations now involved in the Middle East, Sierra Leone, East Timor, Cambodia, West Sahara, and Yugoslavia. It requires a lot of money. The most likely thing to come of all of this will be more hostility toward America and more likelihood that we will be attacked by terrorists. money Statement on the Community Solutions Act of 2001 July 19, 2001    2001 Ron Paul 60:4 H.R. 7 also imposes new paperwork and audit requirements on religious organizations, thus diverting resources away from fulfilling the charitable mission. Supporters of HR 7 point out that any organization that finds the conditions imposed by the federal government too onerous does not have to accept federal grants. It is true no charity has to accept federal grants. It is true no charity has to accept federal funds, but a significant number will accept federal funds in exchange for federal restrictions on their programs, especially since the restrictions will appear “reasonable” during the program’s first few years. Of course, history shows that Congress and the federal bureaucracy cannot resist imposing new mandates on recipients of federal money. For example, since the passage of the Higher Education Act the federal government has gradually assumed control over almost every aspect of campus life. money Statement on the Community Solutions Act of 2001 July 19, 2001    2001 Ron Paul 60:5 Just as bad money drives out good, government-funded charities will overshadow government charities that remain independent of federal funding. After all, a federally-funded charity has the government’s stamp of approval and also does not have to devote resources to appealing to the consciences of parishioners for donations. Instead, government-funded charities can rely on forced contributions from the taxpayers. Those who dismiss this as unlikely to occur should remember that there are only three institutions of higher education today that do not accept federal funds and thus do not have to obey federal regulations. money Statement on the Community Solutions Act of 2001 July 19, 2001    2001 Ron Paul 60:11 The primary issue both sides of this debate are avoiding is the constitutionality of the welfare state. Nowhere in the Constitution is the federal government given the power to level excessive taxes on one group of citizens for the benefit of another group of citizens. Many of the founders would have been horrified to see modern politicians define compassion as giving away other people’s money stolen through confiscatory taxation. After all, the words of the famous essay by former Congressman Davy Crockett, that money is “Not Yours to Give.” money Statement on the Community Solutions Act of 2001 July 19, 2001    2001 Ron Paul 60:13 Therefore, it is clear that instead of expanding the unconstitutional welfare state, Congress should return control over charitable giving to the American people by reducing the tax burden. This is why I strongly support the tax cut provisions of H.R. 7, and would enthusiastically support them if they were brought before the House as a stand alone bill. I also proposed a substitute amendment which would have given every taxpayer in America a $5,000 tax credit for contributions to social services organizations which serve lower-income people. Allowing people to use more of their own money promotes effective charity by ensuring that charities remain true to their core mission. After all, individual donors will likely limit their support to those groups with a proven track record of helping the poor, whereas government agencies may support organizations more effective at complying with federal regulations or acquiring political influence than actually serving the needy. money Statement on the Community Solutions Act of 2001 July 19, 2001    2001 Ron Paul 60:14 Many prominent defenders of the free society and advocates of increasing the role of faith-based institutions in providing services to the needy have also expressed skepticism regarding giving federal money to religious organizations, including the Reverend Pat Robinson, the Reverend Jerry Falwell, Star Parker, Founder and President of the Coalition for Urban Renewal (CURE), Father Robert Sirico, President of the Action Institute for Religious Liberty, Michael Tanner, Director of Health and Welfare studies at the CATO Institute, and Lew Rockwell, founder and president of the Ludwig Von Misses Institute. Even Marvin Olaksy, the above-referenced “godfather of compassionate conservatism,” has expressed skepticism regarding this proposal. money Export-Import Bank 24 July 2001    2001 Ron Paul 61:2 Mr. PAUL. Mr. Chairman, I rise in strong support of this amendment. This is a token amount of money being cut from the Export-Import Bank. The President asked for a $120 million cut. This is only $18 million. There was $120 million added over the present request. This is not a project that is a favorite of the President, and he has referred to this as a form of corporate welfare. money Export-Import Bank 24 July 2001    2001 Ron Paul 61:4 Mr. Chairman, last week we had a vote on trade with China. I supported that vote. I believe in free trade and low tariffs. I believe in the right of people to spend their money where they please, and I believe it is best for countries to be trading with each other. But the very same people today arguing for these corporate subsidies claim they are for free trade. If my colleagues are for free trade, they should not be for corporate subsidies. They are not one and the same. They are different. money Export-Import Bank 24 July 2001    2001 Ron Paul 61:6 Mr. Chairman, this amendment has something to do with campaign finance reform. I am in favor of some reforms, that is, less control. People have the right to spend their own money the way they want; and when we have the problem of big corporations coming here and lobbying us, that is a secondary problem. money Export-Import Bank 24 July 2001    2001 Ron Paul 61:8 Mr. Chairman, what I say is let us have some real campaign finance reform and let us get rid of the subsidies and the motivation for these huge corporations to come here and influence our vote. That is what the problem is. We do not need to get the money out of politics, we need to get the money out of Washington and out of the business of subsidizing special interests. That is where our problem is. money Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:5 Those in opposition to my amendment make the point that jobs are enhanced in the big corporations like Boeing. That is true, to a degree, but there is a net loss of jobs because the same entity, the Export-Import Bank, literally exports jobs by subsidizing and loaning money to foreign entities that compete with us. Not only does some of this money end up in the hands of our competitors and hurt us here at home, but it ends up in the hands of our potential enemies. This is the reason why we should be out of the business of the Export-Import Bank. money Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:6 It has been said that this is a benefit to so many small corporations. In the last 2 years, more than half of the Export- Import Bank money went to Boeing. So it is not surprising that the gentleman early on mentioned that yes, he would not mind it if all of it went to Boeing. It is said that 85 percent of the money in the individual loans goes to smaller corporations. That is true, but 86 percent of the money goes to the giant corporations. So the big bucks serve the big interests who lobby us and spend a lot of time influencing Washington. money Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:7 There is a lot of mal-investment in the economy, misappropriation of money and investments that generates overcapacity, which is a consequence of monetary policy. It is a serious problem; and we are today facing the consequence, because we are now moving into a rather severe recession. But at the same time, export financing compounds that problem. It adds on to it because it is an allocation of credit. money Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:8 This argument that we create jobs is fictitious. We do not create jobs; we shift jobs, from the weak to the powerful. We do not create a new job by stealing, taking out $75 billion worth of a line of credit from the banks and giving it to special interests. Yes, it looks like they are getting a benefit, but the little guy does not have access to that amount of money. Why should the banks not loan Export-Import Bank money to the large corporations. They are protected. They are insured. Who insures them? The taxpayer. It is a ripoff. The taxpayer suffers all of the risks. money Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:10 If we oppose corporate welfare and think we ought to address it on principle and decide whether or not the Congress and the U.S. Government and the taxpayers should be in this type of business, we have to vote for my amendment to get us out of this business. This does not serve the interests of the general welfare of the people. This is antagonistic toward the general welfare of the people. It costs the taxpayers money, it puts the risk on the taxpayer, it serves the interests of the powerful special interests. Why else would they come with their lobbying funds? Why else would they come with their huge donations to the political action committees, unless it is a darn good deal for them? money A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL July 26, 2001    2001 Ron Paul 67:17 Then there’s Bastiat’s broken-window fallacy. It seems someone broke a window. It’s unfortunate, but there’s a silver lining. Money spent to repair the window will being new business to the repairman. He, in turn, will spend his higher income and generate more business for others. The broken window could ultimately create a boom. money A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL July 26, 2001    2001 Ron Paul 67:18 Wait a minute, Bastiat cautioned. That’s based only on what is seen. You must also consider what is not seen--what does not happen. What is not seen is how the money would have been spent if the window had not been broken. The broken window didn’t increase spending; it diverted spending. money A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL July 26, 2001    2001 Ron Paul 67:19 Obvious? Sure, but we fall for a version of the broken-window fallacy every time we evaluate the impact of a government program without considering what taxpayers would have done with the money instead. Some people even judge monetary policy by what happens, without considering what might have happened. money LEGISLATION WHICH ENHANCES SENIOR CITIZENS’ HEALTH CARE -- HON. RON PAUL Thursday, August 2, 2001    2001 Ron Paul 70:1 * Mr. PAUL. Mr. Speaker, I rise to introduce legislation which enhances senior citizens’ ability to control their health care and use Medicare money to pay for prescription drugs. This legislation accomplishes these important goals by removing the numerical limitations and sunset provisions in the Medicare Medical Savings Account (MSAS) program so that all seniors can take advantage of the Medicare MSA option. money LEGISLATION WHICH ENHANCES SENIOR CITIZENS’ HEALTH CARE -- HON. RON PAUL Thursday, August 2, 2001    2001 Ron Paul 70:7 * In conclusion, Mr. Speaker, I urge my colleagues to provide our senior citizens greater control of their health care, including the ability to use Medicare money to purchase prescription drugs by cosponsoring my legislation to expand the Medicare MSA program. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:3 In the 20 th Century, however we saw the systematic undermining of sound money, with the establishment of the Federal Reserve System in 1913, and the outright rejection of gold, with the collapse of the Bretton Woods Agreement in 1971. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:4 We are now witnessing the effects of the accumulated problems of thirty years of fiat money-not only the dollar but also all the world currencies-something the world has never before experienced. Exactly how it plays out is yet unknown. Its severity will be determined by future monetary management- especially by the Federal Reserve. The likelihood of quickly resolving the deeply ingrained and worldwide imbalances built up over thirty years is remote. Yielding to the addiction of credit creation (as has been the case with every market correction over the past thirty years) remains irresistible to the central bankers of the world. Central planners, who occupy the seats of power in every central bank around the world, refuse to accept the fact that markets are more powerful and smarter than they are. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:5 The people of the United States, including the US Congress, are far too complacent about the seriousness of the current economic crisis. They remain oblivious to the significance of the US dollar’s fiat status. Discussions about the dollar are usually limited to the question of whether the dollar is now too strong or too weak. When money is defined as a precise weight of a precious metal, this type of discussion doesn’t exist. The only thing that matters under that circumstance is whether an honest government will maintain convertibility. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:6 Exporters always want a weak dollar, importers a strong one. But no one demands a stable sound dollar, as they should. Manipulation of foreign trade through competitive currency devaluations has become commonplace and is used as a form of protectionism. This has been going on ever since the worldwide acceptance of fiat money thirty years ago. Although some short-term advantage may be gained for certain manufacturers and some countries by such currency manipulation, it only adds fuel to the economic and financial instability inherent in a system of paper money. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:7 Paper money helps the strong and hurts the weak before it self-destructs and undermines international trade. The US dollar, with its reserve-currency status, provides a much greater benefit to American citizens than that which occurs in other countries that follow a similar monetary policy. It allows us to export our inflation by buying cheap goods from overseas, while our dollars are then lent back to us to finance our current account deficit. We further benefit from the confidence bestowed on the dollar by our being the economic and military powerhouse of the world, thus postponing the day of reckoning. This permits our extravagant living to last longer than would have otherwise occurred under a gold standard. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:12 Talk of sound money and balanced budgets is just that. When the economy sinks, the rhetoric for sound policy and a strong dollar may continue but all actions by the Congress and the Fed will be directed toward re-inflation and a congressional spending policy oblivious to all the promises regarding a balanced budget and the preservation of the Social Security and Medicare trust funds. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:13 But if the Fed and its chairman, Alan Greenspan, have been able to guide us out of every potential crisis all the way back to the stock market crash of 1987, why shouldn’t we expect the same to happen once again? Mainly because there’s a limit to how long the monetary charade can be perpetuated. Now it looks like the international financial system built on paper money is coming to an end. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:16 Globalism has existed ever since international trade started thousands of years ago. Whether it was during the Byzantine Empire or the more recent British Empire, it worked rather well when the goal was honest trade and the currency was gold. Today, however, world government is the goal. Its tools are fiat money and international agencies that believe they can plan globally, just as many others over the centuries believed they could plan domestically, ignoring the fact that all efforts at socialism have failed. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:17 The day of reckoning for all this mischief is now at hand. The dollar is weakening, in spite of all the arguments for its continued strength. Economic law is overruling political edicts. Just how long will the US dollar and the US taxpayer be able to bail out every failed third-world economy and pay the bills for policing the world with US troops now in 140 nations around the world? The answer is certainly not forever and probably not much longer, since the world economies are readjusting to the dislocations of the past thirty years of mismanagement and misallocation of capital, characteristic of fiat money. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:18 Fiat money has been around for a long time off and on throughout history. But never has the world been so enthralled with the world economy being artificially structured with paper money and with a total rejection of the anchor that gold provided for thousands of years. Let there be no doubt, we live in unprecedented times, and we are just beginning to reap what has been sown the past thirty years. Our government and Federal Reserve officials have grossly underestimated this danger. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:19 Current concerns are expressed by worries about meeting the criteria for a government-declared recession and whether a weaker dollar would help. The first is merely academic, because if you are one of the many thousands who have been laid off, you’re already in a recession. The second doesn’t make a lot of sense unless one asks “compared to what?” The dollar has been on a steady course of devaluation for thirty years, against most major currencies and against gold. Its purchasing power in general has been steadily eroded. The fact that the dollar has been strong against third-world currencies and against most major currencies for the past decade doesn’t cancel out the fact that the Federal Reserve has systematically eroded the dollar’s value by steadily expanding the money supply. Recent reports of a weakening dollar on international exchange markets have investment implications but do not reflect a new policy designed to weaken the dollar. This is merely the market adjusting to thirty years of systematic monetary inflation. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:20 Regardless of whether the experts demand a weak dollar or a strong dollar, each inevitably demands lower interest rates, hoping to spur the economy and save the stock market from crashing. But one must remember that the only way the Federal Reserve can lower interest rates is to inflate the currency by increasing the money supply and by further debasing the currency. In the long term, the dollar is always weakened, even if the economy is occasionally stimulated on a short-run basis. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:22 The next recession, from which I’m sure we’re already suffering, will be even more pervasive worldwide than the one in the 1930s due to the artificial nature of modern globalism, with world paper money and international agencies deeply involved in the economy of every nation. We have witnessed the current and recent bailouts in Mexico, Argentina, Brazil, Turkey and the Far East. While resisting the market’s tendency for correction, faith in government deficits and belief in paper money inflation will surely prolong the coming worldwide crisis. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:24 But where is the money going? Some of it probably has helped to prop up the staggering stock market, but that can’t last forever. Plenty went into consumption and to finance extravagant living. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:25 The special nature of the dollar, as the reserve currency of the world, has permitted the bubble to last longer and to be especially beneficial to American consumers. But in the meantime, understandable market and political forces have steadily eroded our industrial base, while our service sector has thrived. Consumers enjoyed having even more funds to spend as the dollars left manufacturing. In a little over a year, one million industrial production jobs were lost while saving rates sank to zero and capital investments plummeted. Foreigners continue to grab our dollars, permitting us to raise our standard of living, but unfortunately it’s built on endless printing of fiat money and self -limiting personal debt. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:30 Refinancing especially helped the consumers to continue spending even in a slowing economy. It isn’t surprising for high credit-card debt to be frequently rolled into second mortgages, since interest on mortgage debt has the additional advantage of being tax-deductible. When financial conditions warrant it, leaving financial instruments (such as paper assets), and looking for hard assets (such as houses), is commonplace and is not a new phenomenon. Instead of the newly inflated money being directed toward the stock market, it now finds its way into the rapidly expanding real-estate bubble. This, too, will burst as all bubbles do. The Fed, the Congress, or even foreign investors can’t prevent the collapse of this bubble, any more than the incestuous Japanese banks were able to keep the Japanese “miracle” of the 1980s going forever. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:33 The weakening dollar will usher in an age of challenge to the whole worldwide financial system. The dollar has been the linchpin of economic activity, and a severe downturn in its value will not go unnoticed and will compound the already weakening economies of the world. More monetary inflation, even if it’s a concerted worldwide effort, cannot solve the approaching crisis. The coming crisis will result from fiat money and monetary inflation; therefore, more of the same cannot be the solution. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:34 Pseudo-free trade, managed poorly and driven by fiat money, is no substitute for true free trade in a world with a stable commodity currency, such as gold. Managed trade and fiat money, historically, have led to trade wars, which the international planners pretend to abhor. Yet the trade war is already gearing up. The WTO, purported to exist to lower tariffs, is actually the agency that grants permission for tariffs to be applied when complaints of dumping are levied. We are in the midst of banana, textile, steel, lumber, and tax wars, all managed by the WTO. When cheap imports hit our markets, it’s a good deal for consumers, but our manufacturers are the first to demand permission to place protective tariffs on imports. If this is already occurring in an economy that has been doing quite well, one can imagine how strong the protectionists’ sentiments will be in a worldwide slowdown. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:36 Our dollar problem, which affects our financial and budgetary decisions, originated at the Fed with our country’s acceptance of paper money thirty years ago. Federal Reserve officials and other government leaders purposely continue to mislead the people by spouting the nonsense that there is no evidence of inflation, as measured by government-rigged price indices. Even though significant price increases need not exist for monetary inflation to place a hardship on the economy, stock prices, housing prices, costs of medical care and education, and the cost of government have all been rising at very rapid rates. But the true inflation, measured by the money supply, is rising at a rate of greater than 20%, as measured by MZM. This fact is ignored. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:40 Someday, stable money based on the gold standard must be reconsidered. Stable money is a constitutional responsibility of Congress. The Federal Reserve Board’s goal of stable prices, economic growth and low interest rates, through centralized economic planning by manipulating money and credit, is a concoction of 20 th Century Keynesian economics. These efforts are not authorized by the Constitution, and are economically detrimental. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:41 Economic adjustments wouldn’t be so bad, as many mild recessions have proven, except that wealth is inexorably and unfairly transferred from middle class and poor to the rich. Job losses and the rising cost of living hurt some more than others. If our course is not changed, the entire middle-class prosperity can be endangered, as has happened all too often in other societies that pursued a false belief that paper money could be satisfactorily managed. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:46 But we must also reject the notion that one man, Alan Greenspan, or any other chairman of the Federal Reserve Board, can know what the proper money supply and interest rates ought to be- only the market can determine that. This must happen if we ever expect to avoid continuous and deeper recessions and to get the economy growing in a healthy and sustainable fashion. It also must happen if we want to preserve free-market capitalism and personal liberty. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:48 There are no other options if we hope to remain a free and prosperous nation. Economic and monetary meddling undermines the principles of a free society. A free society and sound money maximize production and minimize poverty. The responsibility of Congress is clear: avoid the meddling so engrained in our system and assume the responsibility, all but forgotten, to maintain a free society while making the dollar once again as good as gold. money The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:50 The extension of the prohibition to bills of credit must give pleasure to every citizen in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the peace, from the pestilent effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people, and on the character of republican government, constitutes an enormous debt against the States chargeable with this unadvised measure. money Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:1 Mr. PAUL. Mr. Speaker, I encourage each and every one of my colleagues to read and heed the insights contained in James Grant’s Sunday New York Times article entitled “Sometimes the Economy Needs a Setback.” Mr. Grant explores the relationship of technology to the business cycle and identifies the real culprit in business cycles, namely “easy money.” Grant explains: money Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:5 The weak economy and the multi-trilliondollar drop in the value of stocks have raised a rash of recrimination. Never a people to suffer the loss of money in silence, Americans are demanding to know what happened to them. The truth is simple: There was a boom. money Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:6 A boom is a phase of accelerated prosperity. For ignition, it requires easy money. For inspiration, it draws on new technology. A decade ago, farsighted investors saw a glorious future for the personal computer in the context of the more peaceful world after the cold war. Stock prices began to rise — and rose and rose. The cost of financing new investment fell correspondingly, until by about the middle of the decade the money became too cheap to pass up. Business investment soared, employment rose, reported profits climbed. money Foreign Interventionism September 25, 2001    2001 Ron Paul 80:18 It is during this time bin Laden learned to practice terror; tragically, with money from the US taxpayers. But it wasn’t until 1991 during what we refer to as the Persian Gulf War that he turned fully against the United States. It was this war, said to protect our oil that brought out the worst in him. money Foreign Interventionism September 25, 2001    2001 Ron Paul 80:26 We did a poor job in providing the security that all Americans should expect. This is our foremost responsibility. Some members have been quick to point out the shortcomings of the FBI, the CIA and the FAA and claim more money will rectify the situation. I’m not so sure. Bureaucracies by nature are inefficient. The FBI and CIA records come up short. The FBI loses computers and guns and is careless with records. The CIA rarely provides timely intelligence. The FAA’s idea of security against hijackers is asking all passengers who packed their bag. money Foreign Interventionism September 25, 2001    2001 Ron Paul 80:27 The clamor now is to give more authority and money to these agencies. But, remember, important industries like as our chemical plants and refineries do not depend on government agencies for security. They build fences and hire guards with guns. The airlines have not been allowed to do the same thing. There was a time when airline pilots were allowed and did carry weapons, and yet this has been prohibited by government regulation set to go into effect in November. money Foreign Interventionism September 25, 2001    2001 Ron Paul 80:31 If we can’t or won’t define the enemy, the cost to fight such a war will be endless. How many American troops are we prepared to lose? How much money are we prepared to spend? How many innocent civilians, in our nation and others, are we willing to see killed? How many American civilians will we jeopardize? How much of our civil liberties are we prepared to give up? How much prosperity will we sacrifice? money Foreign Interventionism September 25, 2001    2001 Ron Paul 80:48 Mr. Speaker, I support President Bush and voted for the authority and the money to carry out his responsibility to defend this country, but the degree of death and destruction and chances of escalation must be carefully taken into consideration. money Intelligence Authorization Act For Fiscal Year 2002 5 October 2001    2001 Ron Paul 81:2 Given the many questions the American people have about the performance of the intelligence agencies prior to September 11, and the many concerns as to whether the intelligence agencies can effectively respond to the challenges of international terrorism, I believe that the American people would be well served by a full debate on the ways the intelligence community plans to respond to these challenges. I also believe the American people would be well-served if members of Congress could debate the prudence of activities authorized under this bill, such as using taxpayer monies for drug interdiction, is an efficient use of intelligence resources or if those resources could be better used to counter other, more significant threats. Perhaps the money targeted for drug interdiction and whether it should be directed to anti-terrorism efforts. However, Mr. Speaker, such a debate cannot occur when members are denied crucial facts regarding the programs authorized in this bill or, at a minimum, are not free to debate in an open forum. Therefore, Congress is denied a crucial opportunity to consider how we might improve America’s intelligence programs. money Counter-Terrorism and Homeland Security October 9, 2001    2001 Ron Paul 82:1 The CIA has a budget of over $30 billion. The FBI has a budget of $3 billion. In addition, $10 to $12 billion are specifically designated to fight terrorism. Yet, with all this money and power, we were not warned of the events that befell us on September 11th. money Counter-Terrorism and Homeland Security October 9, 2001    2001 Ron Paul 82:8 Some argue that pilots have enough to do worrying about flying the airplane and have no time to be concerned about a gun. Yet why do we allow drivers of armored vehicles to handle both? Why do we permit more protection for money being hauled around the country in a truck than we do for passengers on an airline? If government management of airline security has already failed us, why should we expect expanding the role of government in this area to be successful? One thing is for sure, we can expect it to get very expensive and the lines to get a lot longer. The government’s idea of security is asking, “Who packed your bag,” or “Has the bag been with you since you packed it?” and requiring plastic knives to be used on all flights while taking fingernail clippers from the pilots. money Statement on Counter-Terrorism Proposals and Civil Liberties October 12, 2001    2001 Ron Paul 87:2 There is also much the federal government can do under current existing law to fight terrorism. The combined annual budgets of the FBI, the CIA and various other security programs amount to over $30 billion. Perhaps Congress should consider redirecting some of the money spent by intelligence agencies on matters of lower priority to counter-terrorism efforts. Since the tragic attacks, our officials have located and arrested hundreds of suspects, frozen millions of dollars of assets, and received authority to launch a military attack against the ring leaders in Afghanistan. It seems the war against terrorism has so far been carried our satisfactorily under current law. money Statement on Counter-Terrorism Proposals and Civil Liberties October 12, 2001    2001 Ron Paul 87:14 The reason this provision did not work in the case of the airlines is because the airlines followed federal regulations and assumed they were sufficient. This is often the case when the government assumes new powers or imposes new regulations. Therefore, in the future, once the horror of the events of September 11 fade from memory, people will relax their guard, figuring that the federal government is using its new powers to protect them and thus they do not need to invest their own time or money in security measures. money A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:10 We are not even considering restoring the rights of pilots to carry weapons for self-defense as one of the solutions. Even though pilots once carried guns to protect the mail and armored truck drivers can still carry guns to protect money, protecting passengers with guns is prohibited on commercial flights. The U.S. Air Force can shoot down a wayward aircraft, but a pilot cannot shoot down an armed terrorist. money A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:20 It is aggravating to listen to the daily rhetoric regarding liberty and the Constitution while the same people participate in their destruction. It is aggravating to see all the money spent and civil liberties abused while the pilot’s right to carry guns in self-defense is denied. It is even more aggravating to see our government rely on foreign AWACS aircraft to provide security to U.S. territory. A $325 billion military budget, and we cannot even patrol our own shores. This, of course, is just another sign of how little we are concerned about U.S. sovereignty and how willing we are to submit to international government. money A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:27 It is both annoying and sad that there is so little interest by anyone in Washington in free market solutions to the world’s economic problems. True private ownership of property without regulation and abusive taxation is a thing of the past. Few understand how the Federal Reserve monetary policy causes the booms and the busts that, when severe, as now, only serve to enhance the prestige of the money managers- while most politicians and Wall Streeters demand that the Fed inflate the currency at an even more rapid rate. Today’s conditions give license to the politicians to spend our way out of recession, they hope. money Statement on Funding for the Export- Import Bank October 31, 2001    2001 Ron Paul 91:1 Mr. Chairman, the Financial Services committee should reject HR 2871, the Export-Import Reauthorization Act, for economic, constitutional, and moral reasons. The Export-Import Bank (Eximbank) takes money from American taxpayers to subsidize exports by American companies. Of course, it is not just any company that receives Eximbank support- rather, the majority of Eximbank funding benefits large, politically powerful corporations. money Statement on Funding for the Export- Import Bank October 31, 2001    2001 Ron Paul 91:2 Proponents of continued American support for the Eximbank claim that the bank “creates jobs” and promotes economic growth. However, this claim rests on a version of what the great economist Henry Hazlitt called “the broken window” fallacy. When a hoodlum throws a rock through a store window, it can be said he has contributed to the economy, as the store owner will have to spend money having the window fixed. The benefits to those who repaired the window are visible for all to see, therefore it is easy to see the broken window as economically beneficial. However, the “benefits” of the broken window are revealed as an illusion when one takes into account what is not seen: the businesses and workers who would have benefited had the store owner not spent money repairing a window, but rather had been free to spend his money as he chose. money Statement on Funding for the Export- Import Bank October 31, 2001    2001 Ron Paul 91:8 There is simply no constitutional justification for the expenditure of funds on programs such as Eximbank. In fact, the drafters of the Constitution would be horrified to think the federal government was taking hard-earned money from the American people in order to benefit the politically powerful. money Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:1 Mr. PAUL. Mr. Speaker, the world’s politicians, special interests, government bureaucrats, and financiers all love fiat money because they all benefit from it. But freedom-loving, hardworking, ethical and thrifty individuals suffer. money Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:2 Fiat money is paper money that gets its value from a government edict and compulsory legal tender laws. Honest money, something of real value, like a precious metal, gets its value from the market and through voluntary exchange. The world today is awash in fiat money like never before, and we face a financial crisis like never before, conceived many decades before the 9–11 crisis hit. money Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:3 Fiat money works as long as trust in the currency lasts. But eventually trust is always withdrawn from paper money. Fiat money evolves out of sound money, which always originates in the market, but paper money inevitably fails no matter how hard the beneficiaries try to perpetuate the fraud. We are now witnessing the early stages of the demise of a worldwide financial system built on the fiction that wealth can come out of a printing press or a computer at our central banks. money Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:4 Japan, failing to understand this, has tried for more than a decade to stimulate her economy and boost her stock market by printing money and increasing government spending, and it has not worked. Argentina, even with the hopes placed in its currency board, is nevertheless facing default on its foreign debt and a crisis in confidence. More bailouts from the IMF and U.S. dollar may temper the crisis for a while, but ultimately it will only hurt the dollar and the U.S. taxpayers. money Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:5 We cannot continually bail out others with expansion of the dollar money supply, as we have with the crisis in Turkey, Argentina, and the countries of Southeast Asia. This policy has its limits, and confidence in the dollar is the determining factor. Even though, up until now, confidence has reigned, encouraged by our political and economic strength, this era is coming to an end. Our homeland has been attacked, our enemies are not easily subdued, our commitments abroad are unsustainable, and our economy is fast slipping into chaos. money Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:6 Printing money is not an answer, yet that is all that is offered. The clamor for low-interest rates by all those who benefit from fiat money has prompted the Fed to create new money out of thin air like never before. Driving the Fed funds rate down from 6.5 percent to 2.5 percent, a level below the price inflation rate, represents nothing short of panic and has done nothing to recharge the economy. But as one would expect, confidence in the dollar is waning. money Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:9 Since the Federal Reserve first panicked in early January, it has created $830 billion of fiat money out of thin air. The country is no richer. The economy is weaker. The stock market has continued downward, and unemployment has skyrocketed. Returning to deficit spending, as we already have, will not help us any more than it helped Japan, which continues to sink into economic morass. money Expansion of NATO is a Bad Idea November 7, 2001    2001 Ron Paul 95:6 NATO does not have a good record since the fall of the Soviets. Take a look at what we were doing in Serbia. Serbia has been our friend. They are a Christian nation. We allied ourselves with the KLA, the Kosovo Muslims, who have been friends with Osama bin Laden. We went in there and illegally, NATO illegally, against their own rules of NATO, incessantly bombed Serbia. They had not attacked another country. They had a civil war going on, yet we supported that with our money and our bombs and our troops, and now we are nation-building over there. We may be over there for another 20 years because of the bad policy of NATO that we went along with. money The War On Terrorism November 29, 2001    2001 Ron Paul 98:36 As we continue our bombing of Afghanistan, plans are made to install a new government sympathetic to the West and under UN control. The persuasive argument as always is money. We were able to gain Pakistan’s support, although it continually wavers, in this manner. Appropriations are already being prepared in the Congress to rebuild all that we destroy in Afghanistan, and then some- even before the bombing has stopped. money The War On Terrorism November 29, 2001    2001 Ron Paul 98:58 It’s easy for elected officials in Washington to tell the American people that the government will do whatever it takes to defeat terrorism. Such assurances inevitably are followed by proposals either to restrict the constitutional liberties of the American people or to spend vast sums of money from the federal treasury. The history of the 20th Century shows that the Congress violates our Constitution most often during times of crisis. Accordingly, most of our worst unconstitutional agencies and programs began during the two World Wars and the Depression. Ironically, the Constitution itself was conceived in a time of great crisis. The founders intended its provision to place severe restrictions on the federal government, even in times of great distress. America must guard against current calls for government to sacrifice the Constitution in the name of law enforcement. money Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:7 I have a proposal and a suggestion which I think fits the American tradition. We should treat both sides equally, but in a different way. Today we treat both sides equally by giving both sides money and telling them what to do. Not $1 million here or there, not $100 million here or there, but tens of billions of dollars over decades to both sides; always trying to buy peace. money Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:8 My argument is that it generally does not work, that there are unintended consequences. These things backfire. They come back to haunt us. We should start off by defunding, defunding both sides. I am just not for giving all of this money, because every time there are civilians killed on the Israeli side or civilians killed on the Palestinian side, we can be assured that either our money was used directly or indirectly to do that killing. money Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:9 So we are, in a way, an accomplice on all of this killing because we fund both sides. So I would argue we should consider neutrality, to consider friendship with both sides, and not to pretend that we are all so wise that we know exactly with whom to have solidarity. I think that is basically our problem. We have a policy that is doomed to fail in the Middle East; and it fails slowly and persistently, always drawing us in, always demanding more money. money Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:11 I think that we cannot buy peace under these circumstances. I think we can contribute by being more neutral. I think we can contribute a whole lot by being friends with both sides. But I believe the money is wasted, it is spent unwisely, and it actually does not serve the interests of the American people. money Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:12 First, it costs us money. That means that we have to take this money from the American taxpayer. money Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:15 But should we not condemn violence equally? Could it be true that only innocent civilians have died on one side and not the other? I do not believe that to be the care. I believe that it happens on both sides, and on both sides they use our money to do it. money Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:20 Further, it recommends that the President suspend all relations with Yasir Arafat and the Palestinian Authority if they do not abide by the demands of this piece of legislation. I don’t think this is a very helpful approach to the problem. Ceasing relations with one side in the conflict is, in effect, picking sides in the conflict. I don’t think that has been our policy, nor is it in our best interest, be it in the Middle East, Central Asia, or anywhere else. The people of the United States contribute a substantial amount of money to both Israel and to the Palestinian people. We have made it clear in our policy and with our financial assistance that we are not taking sides in the conflict, but rather seeking a lasting peace in the region. Even with the recent, terrible attack. I don’t think this is the time for Congress to attempt to subvert our government’s policy on the Israeli-Palestinian conflict. money Introduction of the ”Human Cloning Prevention Act of 2001“ December 13, 2001    2001 Ron Paul 105:2 Some believe the current prohibition on the use of federal funds for cloning and cloning research is sufficient protection for those taxpayers who object to cloning. However, this argument is flawed for two reasons. First, the current ban is not permanent- and thus could be changed at will by a future Congress or administration. Second, because money is fungible, current law does not necessarily prevent federal funds from subsidizing cloning. After all, whenever a company that engages in cloning research receives federal dollars for any project, the company obviously then has more dollars available to use for cloning. Therefore, any federal funding for companies that engage in human cloning forces taxpayers to subsidize those activities. Thus, the only way to ensure that no American is forced to pay for cloning research is to eliminate all federal funding of such companies or organizations. money H.R. 3054 16 December 2001    2001 Ron Paul 106:2 Mr. Speaker, money appropriated for gold medals, or any other unconstitutional purpose, is, in the words of Davy Crockett, “Not Yours to Give.” It is my pleasure to attach a copy of Davy Crockett’s “Not Yours to Give” speech for the record. I hope my colleagues will carefully consider its’ message before voting to take money from American workers and families to spend on unconstitutional programs and projects. money H.R. 3054 16 December 2001    2001 Ron Paul 106:3 Instead of abusing the taxing and spending power, I urge my colleagues to undertake to raise the money for these medals among ourselves. I would gladly donate to a Congressional Gold Medal fund whose proceeds would be used to purchase and award gold medals to those selected by Congress for this honor. Congress should also reduce the federal tax burdened on the families of those who lost their lives helping their fellow citizens on September 11. Mr. Speaker, reducing the tax burden on these Americans would be a real sacrifice for many in Washington since any reduction in taxes represents a loss of real and potential power for the federal government. money H.R. 3054 16 December 2001    2001 Ron Paul 106:5 Because of my continuing and uncompromising opposition to appropriations not authorized within the enumerated powers of the Constitution, I must remain consistent in my defense of a limited government whose powers are explicitly delimited under the enumerated powers of the Constitution — a Constitution which each Member of Congress swore to uphold. Therefore, Mr. Speaker, I must oppose this legislation and respectfully suggest that perhaps we should begin a debate among us on more appropriate processes by which we spend other people’s money. Honorary medals and commemorative coins, under the current process, come from other people’s money. It is, of course, easier to be generous with other people’s money, but using our own funds to finance these gold medal is true to the sprit of the heros of September 11. money Saddam Hussein 19 December 2001    2001 Ron Paul 107:5 Take, for instance, one of the whereas’s in this resolution. “Whereas the Iraq attacked the Islamic Republic of Iran.” We keep hearing this all the time. It was horrible. But they were our allies at the time. We were financing them, giving them money, helping them with technology. money The Case For Defending America 24 January 2002    2002 Ron Paul 1:3 The one thing I agree with him entirely on is that the problem exists. There is no doubt there is a huge influence of money here in Washington, and even in my prepared statement I mention how corporations influence our foreign policy and that something ought to be done about it; but campaign finance reform goes in exactly the wrong direction. It just means more regulations, more controls, telling the American people how they can spend their money and how they can lobby Congress and how they can campaign. That is not the problem. money The Case For Defending America 24 January 2002    2002 Ron Paul 1:4 The problem is that we have Members of Congress that yield to the temptation and influence of money. If we had enough Members around here that did not yield to the temptation, we would not have to have campaign finance reform, we would not have to regulate money, we would not have to undermine the first amendment, and we would not have to undermine the Constitution in that effort. money The Case For Defending America 24 January 2002    2002 Ron Paul 1:6 The government was set up to protect liberty, and yet we have devised a system here where money talks and it is important; but let me tell my colleagues one thing, the Campaign Finance Reform Act that is coming down the pike will do nothing to solve the problem and will do a lot to undermine our freedoms, a lot to undermine the first amendment and do nothing to preserve the Constitution. money The Case For Defending America 24 January 2002    2002 Ron Paul 1:34 Our sterile approach to the bombing with minimal loss of American life is to be commended, but it may generate outrage toward us by this lopsided killing of persons totally unaware of events of September 11. Our President wisely has not been anxious to send in large numbers of occupying forces into Afghanistan. This also guarantees chaos among the warring tribal factions. The odds of a stable Afghan government evolving out of this mess are remote. The odds of our investing large sums of money to buy support for years to come are great. money The Case For Defending America 24 January 2002    2002 Ron Paul 1:55 How can we forever fail to address the provocative nature of U.S. taxpayers’ money being used to suppress and kill Palestinians and ignore the affront to the Islamic people that our military presence on their holy land of Saudi Arabia causes, not to mention the persistent 12 years of bombing Iraq? money The Case For Defending America 24 January 2002    2002 Ron Paul 1:66 After the demise of our nemesis, the Soviet Union, many believed that we could safely withdraw from some of our worldwide commitments. It was hoped we would start minding our own business, save some money, and reduce the threat to our military personnel. But the opposite has happened. Without any international competition for superpower status, our commitments have grown and spread so that today we provide better military protection to Taiwan and South Korea and Saudi Arabia than we do for New York and Washington. money Resolution Violates Spirit Of Establishment Clause 29 January 2002    2002 Ron Paul 2:6 Allowing Congress to single out certain religions for honors not only insults those citizens whose faith is not recognized by Congress, it also threatens the religious liberty of those honored by Congress. This is because when the federal government begins evaluating religious institutions, some religious institutions may be tempted to modify certain of their teachings in order to curry favor with political leaders. I will concede that religious institutions may not water down their faith in order to secure passage of “Sense of Congress resolutions,” however, the belief that it is proper to judge religious institutions by how effectively they fulfill secular objectives is at the root of the proposals to entangle the federal government with state-approved religions by providing taxpayer dollars to religious organizations in order to perform various social services. Providing taxpayer money to churches creates the very real risk that a church may, for example, feel the need to downplay its teaching against abortion or euthanasia in order to maintain favor with a future pro-abortion administration and thus not lose its federal funding. money Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:3 In truth, investing carries risk, and it is not the role of the federal government to bail out every investor who loses money. In a true free market, investors are responsible for their own decisions, good or bad. This responsibility leads them to vigorously analyze companies before they invest, using independent financial analysts. In our heavily regulated economy, however, investors and analysts equate SEC compliance with reputability. The more we look to the government to protect us from investment mistakes, the less competition there is for truly independent evaluations of investment risk. money Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:4 The SEC, like all government agencies, is not immune from political influence or conflicts of interest. In fact, the new SEC chief used to represent the very accounting companies now under SEC scrutiny. If anything, the Enron failure should teach us to place less trust in the SEC. Yet many in Congress and the media characterize Enron’s bankruptcy as an example of unbridled capitalism gone wrong. Few in Congress seem to understand how the Federal Reserve system artificially inflates stock prices and causes financial bubbles. Yet what other explanation can there be when a company goes from a market value of more than $75 billion to virtually nothing in just a few months? The obvious truth is that Enron was never really worth anything near $75 billion, but the media focuses only on the possibility of deceptive practices by management, ignoring the primary cause of stock overvaluation: Fed expansion of money and credit. money Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:5 The Fed consistently increased the money supply (by printing dollars) throughout the 1990s, while simultaneously lowering interest rates. When dollars are plentiful, and interest rates are artificially low, the cost of borrowing becomes cheap. This is why so many Americans are more deeply in debt than ever before. This easy credit environment made it possible for Enron to secure hundreds of millions in uncollateralized loans, loans that now cannot be repaid. The cost of borrowing money, like the cost of everything else, should be established by the free market- not by government edict. Unfortunately, however, the trend toward overvaluation will continue until the Fed stops creating money out of thin air and stops keeping interest rates artificially low. Until then, every investor should understand how Fed manipulations affect the true value of any company and the level of the markets. money Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:9 Enron similarly benefited from another federal boondoggle, the Overseas Private Investment Corporation. OPIC operates much like the Ex-Im Bank, providing taxpayer-funded loan guarantees for overseas projects, often in countries with shaky governments and economies. An OPIC spokesman claims the organization paid more than one billion dollars for 12 projects involving Enron, dollars that now may never be repaid. Once again, corporate welfare benefits certain interests at the expense of taxpayers. The point is that Enron was intimately involved with the federal government. While most of my colleagues are busy devising ways to “save” investors with more government, we should be viewing the Enron mess as an argument for less government. It is precisely because government is so big and so thoroughly involved in every aspect of business that Enron felt the need to seek influence through campaign money. It is precisely because corporate welfare is so extensive that Enron cozied up to DC-based politicians of both parties. It’s a game every big corporation plays in our heavily regulated economy, because they must when the government, rather than the marketplace, distributes the spoils. money Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:7 Even if they are not corrupt, most IMF borrowers are governments of countries with little economic productivity. Either way, most recipient nations end up with huge debts that they cannot service, which only adds to their poverty and instability. IMF money ultimately corrupts those countries it purports to help, by keeping afloat reckless political institutions that destroy their own economies. money Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:9 In addition, Mr. Chairman, the IMF violates basic constitutional and moral principles. The federal government has no constitutional authority to fund international institutions such as the IMF, and it is simply immoral to take money form hard-working Americas to support the economic schemes of politically-powerful special interests and third-world dictators. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:6 The Japanese economy has been in a slump for over 10 years and shows no signs of recovery. The world economies are more integrated than ever before. When they are growing, it is a benefit to all, but in a contraction, globalism based on fiat money and international government assures that most economies will be dragged down together. Evidence is abundant that most countries of the world are feeling the pressure of a weakening economy. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:14 For over a year, the Fed has been massively inflating the money supply, and there is no evidence that it has done much good. This continuous influx of new credit instead delays the correction that must eventually come- the liquidation of bad debt, and the reduction of overcapacity. This is something Japan has not accomplished in 12 years of interest rates around 1%. The market must be left to eliminate the misdirected investments and allow the sound investments to survive. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:16 We should not expect any of this to happen unless the people and the Congress decide that free-market capitalism and sound money are preferable to a welfare state and fiat money. Whether this downturn is the one that will force that major decision upon us is not known, but eventually we will have to make it. Welfarism and our expanding growing foreign commitments, financed seductively through credit creation by the Fed, are not viable options. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:17 Transferring wealth to achieve a modicum of economic equality and assuming the role of world policeman, while ignoring economic laws regarding money and credit, must lead to economic distortions and a lower standard of living for most citizens. In the process, dependency on the government develops and Congress attempts to solve all the problems with a much more visible hand than Adam Smith recommended. The police efforts overseas and the effort to solve the social and economic problems here at home cannot be carried out without undermining the freedoms that we all profess to care about. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:18 Sadly lacking in the Congress is a conviction that free markets- that is truly free markets- and sound money can provide the highest standard of living for the greatest number of people. Instead, we operate with a system that compromises free markets and causes economic injury to a growing number of people, while rewarding special interests and steadily undermining the principles of liberty. Unfortunately, the policy of monetary inflation is most harmful to the poor and the middle class, especially in the early stages. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:24 This system leads to a huge bureaucratic government, manipulated by politicians, and generates an army of special interests that flood the system with money and demands. To achieve and maintain political power in Washington, these powerful special interests must be satisfied. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:25 This is a well-known problem and prompts some serious-minded and well-intentioned Members to want to legislate campaign finance reforms. But the reforms proposed would actually make the whole mess worse. They would regulate access to the members of Congress, and dictate how private money is spent in campaigns. This merely curtails liberty, while ignoring the real problem- a government that ignores the Constitution naturally passes out largesse. Even under today’s conditions, where money talks in Washington, if enough members would refuse either to accept or be influenced by the special interests, government favors would no longer be up for sale. Since politicians are far from perfect, the solution is having a government of limited size acting strictly within the framework of the Constitution. No matter how strictly campaign finance laws are written, they will do only harm if the rule of law is not restored and if Congress refuses to stop being manipulated by the special interests. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:26 Most people recognize the horrible mess that Washington is and how campaign money and lobbyists influence the system. But the reforms proposed only deal with the symptoms and not the root cause. There is sharp disagreement in what to do about it, but no one denies the existence of the problem. It=s just hard for most to acknowledge that the welfare state is out of control and shouldn’t be in existence anyway. Therefore, they misdirect our attention toward campaign-finance reform rather than deal with the real problem. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:41 What they fail to recognize, once they lose interest in shrinking the size of government, is that government borrowing always takes money from productive enterprises, while placing these funds in the hands of politicians whose prime job is to serve special interests. Deficits are a political expedience that also forces the Federal Reserve to inflate the currency while reducing in real terms the debt owed by the government by depreciating the value of the currency. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:47 Wealth- the product of labor, investment and savings- can never be substituted by government spending or by a central bank that creates new money out of thin air. Governments can only give things they first take away from someone else. Printing money only diminishes the value of each monetary unit. Neither can create wealth; both can destroy it. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:48 The dilemma is that early on, and sometimes for many years as we have experienced, transferring wealth and printing money seem to help more than it hurts. That’s because the wealth is not real, and the trust funds, like Social Security hold no actual wealth. A pension fund with dot-com and Enron stock held no wealth either. Unfortunately, the stocks and bonds remaining are worth a lot less than most people realize. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:49 The Social Security system depends on the value of the dollar and on future taxation. The Fed can create unlimited amounts of money that Congress needs, and Congress can raise taxes as it wants. But this policy guarantees that the dollar cannot maintain its purchasing power and that there won’t be enough young people to tax in the future. Increasing benefits under these circumstances can only be done at the expense of the dollar. Catching up with the current system of money and transfer payments is equivalent to a person on a treadmill who expects to get to the next town. It tragically doesn’t work. money Stimulating The Economy February 7, 2002    2002 Ron Paul 5:65 11. The economic ramifications of our war on terrorism are difficult to ascertain but could be quite significant. Although the recession was obviously not caused by the attacks, the additional money spent and the effect of all the new regulations cannot help the recovery. When one adds up the domestic costs, the military costs and the costs of new regulations, we can be certain that deficits are going to grow significantly, and the Federal Reserve will be further pressured to pursue a dangerous monetary inflation. This policy will result in higher rather than lower interest rates, a weak dollar and certainly rising prices. The danger of our economy spinning out of control should not be lightly dismissed. money So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:9 Many reformers recognize this, and either like the system or believe that it’s futile to bring about changes. They argue that curtailing influence is the only option left, even if it involves compromising freedom of political speech by regulating political money. money So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:12 Politicians unable to accept this responsibility clamor for a system that diminishes the need for them to persuade individuals and groups to donate money to their campaigns. Instead of persuasion, they endorse coercing taxpayers to finance campaigns. money So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:13 This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed. Not only will politicians and bureaucrats gain influence over elections, other nondeserving people will benefit. Clearly, incumbents will greatly benefit by more controls over campaign spending- a benefit to which the reformers will never admit. money So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:14 Mr. Speaker, the freedoms of the American people should not be restricted because some politicians cannot control themselves. We need to get money out of government. Only then will money not be important in politics. Campaign finance laws, such as those before us today, will not make politicians more ethical, but they will make it harder for average Americans to influence Washington. money So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:50 In Buckley v. Valeo, 424 U.S. 1, 27-28 (1976), the Supreme Court recognized that the contribution and other limitations imposed by the Federal Election Campaign Act of 1971 could not be justified on the grounds that they prevented only “the most blatant and specific attempts of those with money to influence governmental action.” Rather, the court found, that such limitations served a much broader purpose, namely, the prevention of “the appearance of corruption” to the end that “confidence in the system of representative government is not to be eroded....” ( Id., 424 U.S. at 27) money So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:52 This same theme has been struck by leading proponents of reform in the House of Representatives. Four years ago, House Minority Leader Richard Gephardt urged the adoption of more restrictive measures “for healthy campaigns in a healthy democracy” even at the expense of the freedom of speech. (Gibbs, “The Wake-Up Call,” Time, p. 25, Feb. 3, 1997) Representative Gephardt has not changed his mind, continuing his adamant support of the speech-restrictive Shays-Meehan bill to this day. (Mitchell, “2 Election Bills Go to the House Floor,” The New York Times , June 29, 2001) Indeed, Senator John McCain has not changed his mind either. Having urged in 1997 the enactment of a law placing limits on public policy organizations’ political advertising in the waning days of an election campaign, and thus calling off the political “attack dogs” (NBC News, Meet the Press, Feb. 3, 1997), Senator McCain is waging an all-out war to make sure that his version of campaign-finance reform passes the House. (Shenon, “House Critics Call McCain a Bully on Campaign Bill,” The New York Times, July 9, 2001) As McCain’s Democrat colleague, Russell Feingold, put it upon the introduction of Shays-Meehan in the Senate in 1999: “The prevalence – no – the dominance of money in our system of elections and our legislature will…cause them to crumble.” (Cong. Rec. S422, 423, daily ed., Jan. 19, 1999) money So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:65 Both McCain-Feingold and Shays-Meehan exploit this distinction in their attempt to muzzle political advertisements in the final weeks of an election campaign, claiming that issue advocacy becomes express candidate advocacy when conducted during the crucial weeks before election day. In so doing, both bills seriously undermine the people’s right to choose for themselves how they will associate to advance or defeat certain measures or to promote specific principles of public policy. Constraining the people who speak out on the issues in conjunction with an election campaign may make for a more “orderly” political process, but people are not horses or mules to be hooked up to the political bandwagons of government-subsidized incumbent politicians. Additionally, limits on so-called “soft money” to political parties are really designed to place incumbent office holders in control of the political parties whose name they sport. By placing controls on how political parties may raise and spend money, “independent” politicians like John McCain seek to transmute America’s political parties into political eunuchs, impotent to affect the outcome of any election. money Before We Bomb Iraq... February 26, 2002    2002 Ron Paul 9:15 Congress never complains about its lost prerogative to be the sole declarer of war. Astoundingly, Congress is only too eager to give war power to our presidents through the back door, by the use of some fuzzy resolution that the president can use as his justification. And once the hostilities begin, the money always follows, because Congress fears criticism for not “supporting the troops.” But putting soldiers in harm’s way without proper authority, and unnecessarily, can hardly be the way to “support the troops.” money Statement on Ending US Membership in the IMF February 27, 2002    2002 Ron Paul 10:5 If not corrupt, most IMF borrowers are governments of countries with little economic productivity. Either way, most recipient nations end up with huge debts that they cannot service, which only adds to their poverty and instability. IMF money ultimately corrupts those countries it purports to help, by keeping afloat reckless political institutions that destroy their own economies. money Statement on Ending US Membership in the IMF February 27, 2002    2002 Ron Paul 10:7 In addition, the IMF violates basic constitutional and moral principles. The federal government has no constitutional authority to fund international institutions such as the IMF. Furthermore, Mr. Speaker, it is simply immoral to take money from hard-working Americans to support the economic schemes of politically-powerful special interests and third-world dictators. money Statement on the Financial Services committee’s “Views and Estimates for Fiscal Year 2003” February 28, 2002    2002 Ron Paul 12:2 For example, this document gives an unqualified endorsement to increased taxpayer support for the Financial Crimes Enforcement Network (FINCEN). According to the committee, these increased funds are justified by FINCEN’s new authority under the PATRIOT Act. However, Mr. Chairman, FINCEN’s powers to snoop into the private financial affairs of American citizens raise serious constitutional issues. Whether the expansion of FINCEN’s power threatens civil liberties is ignored in this document; instead, the report claims the only problem with the PATRIOT Act is that the federal financial police state does not have enough power and taxpayer money to invade the privacy of United States citizens! money Statement on the Financial Services committee’s “Views and Estimates for Fiscal Year 2003” February 28, 2002    2002 Ron Paul 12:7 In conclusion, the “Views and Estimates” presented by the Financial Services committee endorses increasing the power of the federal police state, as well as increasing both international and corporate welfare, while ignoring the economic problems created by federal intervention into the economy. I therefore urge my colleagues to reject this document and instead embrace an agenda of ending federal corporate welfare, protecting financial privacy, and reforming the fiat money system which is the root cause of America’s economic instability. money Export-Import Reauthorization Act 19 March 2002    2002 Ron Paul 17:2 The Export-Import Bank (Eximbank) takes money from American taxpayers to subsidize exports by American companies. Of course, it is not just any company that receives Eximbank support — rather, the majority of Eximbank funding benefits large, politically powerful corporations. money Export-Import Reauthorization Act 19 March 2002    2002 Ron Paul 17:3 Proponents of continued American support for the Eximbank claim that the bank “creates jobs” and promotes economic growth. However, this claim rests on a version of what the great economist Henry Hazlitt called “the broken window” fallacy. When a hoodlum throws a rock through a store window, it can be said he has contributed to the economy, as the store owner will have to spend money having the window fixed. The benefits to those who repaired the window are visible for all to see, therefore it is easy to see the broken window as economically beneficial. However, the “benefits” of the broken window are revealed as an illusion when one takes into account what is not seen; the businesses and workers who would have benefited had the store owner not spent money repairing a window, but rather had been free to spend his money as he chose. money Export-Import Reauthorization Act 19 March 2002    2002 Ron Paul 17:9 There is simply no constitutional justification for the expenditure of funds on programs such as Eximbank. In fact, the drafters of the Constitution would be horrified to think the federal government was taking hard-earned money from the American people in order to benefit the politically powerful. money Statement against Meddling in Domestic Ukrainian Politics Wednesday, March 20, 2002    2002 Ron Paul 18:2 Mr. Speaker, Ukraine has been the recipient of hundreds of millions of dollars in foreign aid from the United States. In fiscal year 2002 alone, Ukraine was provided $154 million. Yet after all this money- which we were told was to promote democracy- and more than ten years after the end of the Soviet Union, we are told in this legislation that Ukraine has made little if any progress in establishing a democratic political system. money America’s Entangling Alliances in the Middle East April 10, 2002    2002 Ron Paul 21:8 Is it any wonder that the grassroots people in Arab nations, even in Kuwait, threaten their own governments that are totally dominated by American power and money? money Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:5 Even if CARTA transformed all (or at least all accountants) into angels, it could still harm individual investors. First, new regulations inevitably raise the overhead costs of investing. This will affect the entire economy as it lessens the capital available to businesses, thus leading to lower rates of economic growth and job creation. Meanwhile, individual investors will have less money for their retirement, their children’s education, or to make a down payment on a new home. money Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:7 In truth, investing carries risk, and it is not the role of the Federal Government to bail our every investor who loses money. In a true free market, investors are responsible for their own decisions, good or bad. This responsibility leads them to vigorously analyze companies before they invest, using independent financial analysts. In our heavily regulated environment, however, investors and analysts equate SEC compliance with reputability. The more we look to the government to protect us from investment mistakes, the less competition there if for truly independent evaluations of investment risk. money Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:14 Congress should also examine the role the Federal Reserve played in the Enron situation. Few in Congress seem to understand how the Federal Reserve system artificially inflates stock prices and causes financial bubbles. Yet, what other explanation can there be when a company goes from a market value of more than $75 billion to virtually nothing in just a few months? The obvious truth is that Enron was never really worth anything near $75 billion, but the media focuses only on the possibility of deceptive practices by management, ignoring the primary cause of stock overvaluations: Fed expansion of money and credit. money Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:15 The Fed consistently increased the money supply (by printing dollars) throughout the 1990s, while simultaneously lowering interest rates. When dollars are plentiful, and interest rates are artificially low, the cost of borrowing becomes cheap. This is why so many Americans are more deeply in debt than ever before. This easy credit environment made it possible for Enron to secure hundreds of millions in uncollateralized loans, loans that now cannot be repaid. The cost of borrowing money, like the cost of everything else, should be established by the free market — not by government edict. Unfortunately, however, the trend toward overvaluation will continue until the Fed stops creating money out of thin air and stops keeping interest rates artificially low. money Predictions 24 April 2002    2002 Ron Paul 25:3 Peace, of sorts, will come to the Middle East, but will be short-lived. There will be big promises of more U.S. money and weapons flowing to Israel and to Arab countries allied with the United States. money Predictions 24 April 2002    2002 Ron Paul 25:15 Federal Reserve policy will continue at an expanding rate, with massive credit expansion, which will make the dollar crisis worse. Gold will be seen as an alternative to paper money as it returns to its historic role as money. money Statement Opposing Taxpayer Funding of Multinational Development Banks May 1, 2002    2002 Ron Paul 28:2 Congress has no constitutional authority to take money from American taxpayers and send that money overseas for any reason . Furthermore, foreign aid undermines the recipient countries’ long-term economic progress by breeding a culture of dependency. Ironically, foreign aid also undermines long-term United States foreign policy goals by breeding resentment among recipients of the aid, which may manifest itself in a foreign policy hostile to the United States. money Statement Opposing Taxpayer Funding of Multinational Development Banks May 1, 2002    2002 Ron Paul 28:4 In conclusion, HR 2604 authorizes the continued taking of taxpayer funds for unconstitutional and economically destructive programs. I therefore urge my colleagues to reject this bill, return the money to the American taxpayers, and show the world that the United States Congress is embracing the greatest means of generating prosperity: the free market. money International Fund For Agricultural Development 1 May 2002    2002 Ron Paul 29:2 Congress has no constitutional authority to take money from American taxpayers and send that money overseas for any reason. Furthermore, foreign aid undermines the recipient countries’ long-term economic progress by breeding a culture of dependency. Ironically, foreign aid also undermines long-term United States foreign policy goals by breeding resentment among recipients of the aid, which may manifest itself in a foreign policy hostile to the United States. money International Fund For Agricultural Development 1 May 2002    2002 Ron Paul 29:4 In conclusion, HR 2604 authorizes the continued taking of taxpayer funds for unconstitutional and economically destructive programs. I therefore urge my colleagues to reject this bill, return the money to the American taxpayers, and show the world that the United States Congress is embracing the greatest means of generating prosperity: the free market. money Statement Opposing Export-Import Bank Subsidies May 1, 2002    2002 Ron Paul 30:2 One thing I am convinced of over the years from looking at bad agencies of government, tinkering on the edges does not do a lot of good. Members might ask why am I tinkering here? Why do I want to tell corporations what to do? I am a capitalist. I believe in capitalism. I do not want to tell the corporations what to do at all as long as they do not commit fraud and live up to their promises, but this is different because they are getting taxpayer money. That is different than if they were just a corporation making it on their own. money Statement Opposing Export-Import Bank Subsidies May 1, 2002    2002 Ron Paul 30:3 The gentleman from Nebraska (Mr. Bereuter) said if we do not give them these loans, the companies will not get any money and they will have to go overseas. This is a fallacy to believe if all of a sudden we took all of the Export-Import Bank money away from corporations, that they would have no funding. That is not true at all. There is a lot of funding available. It is just that they do not get the benefit, they do not get the subsidy. money Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:5 Mr. Chairman, Congress should reject H.R. 2871, the Export-Import Reauthorization Act, for economic, constitutional, and moral reasons. The Export-Import Bank (Eximbank) takes money from American taxpayers to subsidize exports by American companies. Of course, it is not just any company that receives Eximbank support; the majority of Eximbank funding benefit large, politically powerful corporations. money Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:11 Proponents of continued American support for the Eximbank claim that the bank creates jobs and promotes economic growth. However, this claim rests on a version of what the great economist Henry Hazlitt called, the “broken window” fallacy. When a hoodlum throws a rock through a store window, it can be said he has contributed to the economy, as the store owner will have to spend money having the window fixed. The benefits to those who repaired the window are visible for all to see, therefore it is easy to see the broken window as economically beneficial. However, the “benefits” of the broken window are revealed as an illusion when one takes into account what is not seen: the businesses and workers who would have benefited had the store owner not spent money repairing a window, but rather had been free to spend his money as he chose. Similarly, the beneficiaries of Eximbank are visible to all. What is not seen is the products that would have been built, the businesses that would have been started, and the jobs that would have been created had the funds used for the Eximbank been left in the hands of consumers. money Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:14 Finally, Mr. Chairman, I would like to remind my colleagues that there is simply no constitutional justification for the expenditure of funds on programs such as Eximbank. In fact, the drafters of the Constitution would be horrified to think the Federal Government was taking hard-earned money from the American people in order to benefit the politically powerful. money Repudiating A Treaty Signature 9 May 2002    2002 Ron Paul 40:4 And it is the jurisdiction, it is the sovereignty, it is the civil liberties of the American soldier that we are dealing with. The gentleman from Georgia (Mr. BARR) brought this up, and this is very true. These trials, they do not have juries. The judges are appointed in secret. They cannot face their accusers. And we are going to join an organization like that, endorse it, send money and say that our troops may become subject to this? To me, it is an extremely dangerous situation that we have here now, because we did not even ratify the treaty. We have repudiated the signature and they are still saying this is going to apply to our soldiers. We have a serious problem on our hands and we should at least do this very little thing here, because this is a sense of Congress resolution that we would not like to have the President spend any money on this, and this would support his position. money Stop Perpetuating the Welfare State May 16, 2002    2002 Ron Paul 42:11 Releasing the charitable impulses of the American people by freeing them from the excessive tax burden so they can devote more of their resources to charity, is a moral and constitutional means of helping the needy. By contrast, the federal welfare state is neither moral or constitutional. Nowhere in the Constitution is the federal government given the power to level excessive taxes on one group of citizens for the benefit of another group of citizens. Many of the founders would have been horrified to see modern politicians define compassion as giving away other people’s money stolen through confiscatory taxation. In the words of the famous essay by former Congressman Davy Crockett, this money is “Not Yours to Give.” money Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:10 As is often the case, much of the money authorized by this bill will go toward lucrative contracts with well-connected private firms and individuals. In short, when you look past all the talk about building civil society in Afghanistan and defending against terrorism, this bill is laden with the usual corporate welfare and hand-outs to special interests. money Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:11 Among other harmful things, this legislation dramatically expands the drug war. Under the group we have installed in Afghanistan, opium production has skyrocketed. Now we are expected to go in and clean up the mess our allies have created. In addition, this bill will send some $60 million to the United Nations, to help fund its own drug eradication program. I am sure most Americans agree that we already send the United Nations too much of our tax money, yet this bill commits us to sending even more. money Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:12 The drug war has been a failure. Plan Colombia, an enormously expensive attempt to reduce drug production in that Andean nation, has actually resulted in a 25 percent increase in coca leaf and cocaine production. Does anyone still think our war on drugs there has been successful? Is it responsible to continue spending money on policies that do not work? money Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:16 Madam Chairman, some two decades ago the Soviet Union also invaded Afghanistan and attempted to impose upon the Afghan people a foreign political system. Some nine years and 15,000 Soviet lives later they retreated in disgrace, morally and financially bankrupt. During that time, we propped up the Afghan resistance with our weapons, money, and training, planting the seeds of the Taliban in the process. Now the former Soviet Union is gone, its armies long withdrawn from Afghanistan, and we’re left cleaning up the mess- yet we won’t be loved for it. No, we won’t get respect or allegiance from the Afghans, especially now that our bombs have rained down upon them. We will pay the bills, however, Afghanistan will become a tragic ward of the American state, another example of an interventionist foreign policy that is supposed to serve our national interests and gain allies, yet which does neither. money Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:19 After this bill is passed, if this bill is to pass, we will be close to $2 billion in aid to Afghanistan, not counting the military. Now, that is an astounding amount of money, but it seems like it is irrelevant here. Twelve months ago, the national debt was $365 billion less than it is today, and people say we are just getting away from having surpluses. Well, $365 billion is a huge deficit, and the national debt is going up at that rate. April revenues were down 30 percent from 1 year ago. The only way we pay for programs like this is either we rob Social Security or we print the money, but both are very harmful to poor people and people living on a limited income. Our funds are not unlimited. I know there is a lot of good intention; nobody in this body is saying we are going over there to cause mischief, but let me tell my colleagues, there is a lot of reasons not to be all that optimistic about these wonderful results and what we are going to accomplish over there. money Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:22 But I am terribly concerned that we will spend a lot of money, we will become deeply mired in Afghanistan, and we will not do a lot better than the Soviets did. Now, that is a real possibility that we should not ignore. We say, oh, no, everything sounds rosy and we are going to do this, we are going to do it differently, and this time it is going to be okay. Well, if we look at the history of that land and that country, I would think that we should have second thoughts. money Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:23 It has been said that one of the reasons why we need this legislation is to help pay for drug eradication. Now, that is a good idea. That would be nice if we could do that. But the drug production has exploded since we have been there. In the last year, it is just going wild. Well, that is even more reason we have to spend money because we contributed to the explosion of the drug production. There is money in this bill, and maybe some good will come of this; there is money in this bill that is going to be used to teach the Afghan citizens not to use drugs. money Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:25 So to spend money on these kinds of programs I think is just a little bit of a stretch. Already there have been 33 tribal leaders that have said they will not attend this Loya Jirga, that they are not going to attend. The fact that we are going to spend millions of dollars trying to gather these people together and tell them what to do with their country, I think the odds of producing a secure country are slim. money Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:27 So I would say that we should move cautiously. I think this is very dangerous. I know nobody else has spoken out against this bill, but I do not see much benefit coming from this. I know it is well motivated, but it is going to cost a lot of money, we are going to get further engaged, more troops are going to go over there; and now that we are a close ally of Pakistan, we do know that Pakistan and India both have nuclear weapons, and we are sitting right next to them. So I would hardly think this is advantageous for our security, nor advantageous for the American people, nor advantageous to the American taxpayer. money Opposing The Amendment 21 May 2002    2002 Ron Paul 45:4 After this bill is passed, if this bill is to pass, we will be close to $2 billion in aid to Afghanistan, not counting the military. Now, that is an astounding amount of money, but it seems like it is irrelevant here. Twelve months ago, the national debt was $365 billion less than it is today, and people say we are just getting away from having surpluses. Well, $365 billion is a huge deficit, and the national debt is going up at that rate. April revenues were down 30 percent from 1 year ago. The only way we pay for programs like this is either we rob Social Security or we print the money, but both are very harmful to poor people and people living on a limited income. Our funds are not unlimited. money Opposing The Amendment 21 May 2002    2002 Ron Paul 45:10 But I am terribly concerned that we will spend a lot of money, we will become deeply mired in Afghanistan, and we will not do a lot better than the Soviets did. money Opposing The Amendment 21 May 2002    2002 Ron Paul 45:12 It has been said that one of the reasons why we need this legislation is to help pay for drug eradication. Now, that is a good idea. That would be nice if we could do that. But the drug production has exploded since we have been there. In the last year, it is just going wild. Well, that is even more reason we have to spend money because we contributed to the explosion of the drug production. There is money in this bill, and maybe some good will come of this; there is money in this bill that is going to be used to teach the Afghan citizens not to use drugs. The CHAIRMAN. The time of the gentleman from Texas (Mr. PAUL) has expired. (By unanimous consent, Mr. PAUL was allowed to proceed for 2 additional minutes.) money Opposing The Amendment 21 May 2002    2002 Ron Paul 45:14 So to spend money on these kinds of programs I think is just a little bit of a stretch. Already there have been 33 tribal leaders that have said they will not attend this Loya Jirga, that they are not going to attend. The fact that we are going to spend millions of dollars trying to gather these people together and tell them what to do with their country, I think the odds of producing a secure country are slim. money Opposing The Amendment 21 May 2002    2002 Ron Paul 45:16 So I would say that we should move cautiously. I think this is very dangerous. I know nobody else has spoken out against this bill, but I do not see much benefit coming from this. I know it is well motivated, but it is going to cost a lot of money, we are going to get further engaged, more troops are going to go over there; and now that we are a close ally of Pakistan, we do know that Pakistan and India both have nuclear weapons, and we are sitting right next to them. So I would hardly think this is advantageous for our security, nor advantageous for the American people, nor advantageous to the American taxpayer. money Stop Taxing Social Security Benefits! May 22, 2002    2002 Ron Paul 46:3 Instead of imposing ridiculous taxes on senior citizens, Congress should ensure the integrity of the Social Security trust fund by ending the practice of using trust fund monies for other programs. In order to accomplish this goal I introduced the Social Security Preservation Act (H.R. 219), which ensures that all money in the Social Security trust fund is spent solely on Social Security. At a time when Congress’ inability to control spending is once again threatening the Social Security trust fund, the need for this legislation has never been greater. When the government taxes Americans to fund Social Security, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money Stop Taxing Social Security Benefits! May 22, 2002    2002 Ron Paul 46:4 In conclusion, Mr. Speaker, I urge my colleagues to help free senior citizens from oppressive taxation by supporting my Senior Citizens’ Tax Elimination Act and my Social Security Beneficiary Tax Reduction Act. I also urge my colleagues to ensure that moneys from the Social Security trust fund are used solely for Social Security benefits and not wasted on frivolous government programs. money Don’t Expand Federal Deposit Insurance May 22, 2002    2002 Ron Paul 47:7 Finally, I would remind my colleagues that the federal deposit insurance program lacks constitutional authority. Congress’ only mandate in the area of money and banking is to maintain the value of the money. Unfortunately, Congress abdicated its responsibility over monetary policy with the passage of the Federal Reserve Act of 1913, which allows the federal government to erode the value of the currency at the will of the central bank. Congress’ embrace of fiat money is directly responsible for the instability in the banking system that created the justification for deposit insurance. money No More Taxpayer Funds for the Failed Drug War in Colombia May 23, 2002    2002 Ron Paul 49:5 What we are doing is we are appropriating for something for the administration to do without a proper authority. He has no authority to get involved in the civil war down there. We cannot imply that the issue of war is granted through the appropriation process. It is not the way the system works. The constitutional system works with granting explicit authority to wage war. The President has no authority, and now he wants the money; and we are ready to capitulate. Let me tell my colleagues, if we care about national defense, we must reconsider this. money Oppose the "Supplemental" Spending Bill May 24, 2002    2002 Ron Paul 50:2 Despite being sold as a national security bill, most of the spending in this bill bears little relationship to protecting the American people from terrorism. For example, this bill contains funding for the Securities and Exchange Commission, federal courts, and various welfare programs. In addition, this bill spends millions on unconstitutional foreign aid. Mr. Speaker, some may say that foreign aid promotes national security, but if that were true America would be the most beloved country on earth. After all, almost every country in the world has in some way benefited from Congress’ willingness to send the American people’s money oversees. money Oppose the "Supplemental" Spending Bill May 24, 2002    2002 Ron Paul 50:8 US commercial interests — not national security — are a big factor in our shifting policy toward Colombia. We have already seen an administration request for an additional $98 million to help protect the Caño-Limon Pipeline - jointly owned by the Colombian national oil company and Occidental Petroleum. This supplemental will provide for the first installment of this money to be paid to protect Occidental’s pipeline. money Oppose the "Supplemental" Spending Bill May 24, 2002    2002 Ron Paul 50:9 We are being dragged into a civil war in Colombia that has nothing to do with us and nothing to do with international terrorism. Those who want to send American money and troops into the Colombian quagmire do not want debate, because their claims that a 38 year civil war somehow has something to do with 9/11 ring hollow. money Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:4 Gold is history’s oldest and most stable currency. Central bankers and politicians hate gold because it restrains spending and denies them the power to create money and credit out of thin air. Those who promote big government, whether to wage war and promote foreign expansionism or to finance the welfare state here at home, cherish this power. money Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:5 History and economic law are on the side of the gold. Paper money always fails. Unfortunately, though, this occurs only after many innocent people have suffered the consequences of the fraud that paper money represents. Monetary inflation is a hidden tax levied more on the poor and those on fixed incomes than the wealthy, the bankers, or the corporations. money Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:9 Misplaced confidence in a currency can lead money managers and investors astray, but eventually the piper must be paid. Last year’s record interest rate drop by the Federal Reserve was like pouring gasoline on a fire. Now the policy of the past decade is being recognized as being weak for the dollar; and trust and confidence in it is justifiably being questioned. money Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:10 Trust in paper is difficult to measure and anticipate, but long-term value in gold is dependable and more reliably assessed. Printing money and creating artificial credit may temporarily lower interest rates, but it also causes the distortions of malinvestment, overcapacity, excessive debt and speculation. These conditions cause instability, and market forces eventually overrule the intentions of the central bankers. That is when the apparent benefits of the easy money disappear, such as we dramatically have seen with the crash of the dot-coms and the Enrons and many other stocks. money Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:12 Congress must soon consider significant changes in our monetary system if we hope to preserve a system of sound growth and wealth preservation. Paper money managed by the Federal Reserve System cannot accomplish this. In fact, it does the opposite. money Export-Import Bank Is Corporate Welfare 5 June 2002    2002 Ron Paul 53:2 Also for moral reasons, I object to this. Even if we accepted the idea that we should interfere and be involved in this type of activity, it is unfair because the little guy gets squeezed and the big guy gets all of the money. It is not morally fair because it cannot be. money Export-Import Bank Is Corporate Welfare 5 June 2002    2002 Ron Paul 53:5 The other reason why economically it is unsound, is that this is a form of credit allocation. If a bank has money and they can get a guarantee from the Export-Import Bank, they will always choose the guarantee over the nonguarantee, so who gets squeezed. The funds are taken out of the investment pool. The little people get squeezed. They do not get the loan, but they are totally unknown. Nobody sees those who did not get a loan. All we see is the loan that benefits somebody on the short run. But really on the long run, it benefits the big corporations. Many times it doesn’t even do that. money AFFORDABILITY OF CHILD HEALTH CARE June 11, 2002    2002 Ron Paul 54:7 Mr. Speaker, this Congress has a moral responsibility to provide tax relief for low-income parents struggling to care for a sick child, in order to help them better meet their child’s medical expenses. Some may say that we cannot enact the Child Health Care Affordability Act because it would cause the government to lose revenue, but who is more deserving of this money, Congress or the working parents of a sick child? money BAD TAX POLICY SENDS COMPANIES OVERSEAS June 11, 2002    2002 Ron Paul 55:19 Expatriation helps control government waste. High-tax California can’t stop companies from moving to low-tax Nevada. Knowing this helps deter the big-spenders in the state capitol from wasting even more money. The politicians in Massachusetts must exercise some restraint because they know local businesses can flee to low-tax New Hampshire. Nations also should be subject to market discipline. This is why Washington politicians shouldn’t stop companies from escaping bad U.S. tax law. money Introduction of the Public Safety Tax Cut Act: June 25, 2002    2002 Ron Paul 60:6 Next, this legislation would also provide paid professional police and fire officers with a $1,000 per year tax credit. These professional public safety officers put their lives on the line each and every day, and I think we all agree that there is no way to properly compensate them for the fabulous services they provide. In America we have a tradition of local, as opposed to federal, law enforcement and public safety provision. So, while it is not the role of our federal government to increase the salaries of local officers, it certainly is within our authority to increase their take-home pay by reducing the amount of money that we take from their pockets via federal taxation, and that is something this bill specifically does as well. money H.R. 4954 27 June 2002    2002 Ron Paul 63:3 However, Mr. Speaker, at the heart of this legislation is a fatally flawed plan that will fail to provide seniors access to the pharmaceuticals of their choice. H.R. 4954 requires seniors to enroll in a prescription benefit management company (PBM), which is the equivalent of an HMO. Under this plan, the PBM will have the authority to determine which pharmaceuticals are available to seniors. Thus, in order to get any help with their prescription drug costs, seniors have to relinquish their ability to choose the type of prescriptions that meet their own individual needs! The inevitable result of this process will be rationing, as PBM bureaucrats attempt to control costs by reducing the reimbursements paid to pharmacists to below-market levels (thus causing pharmacists to refuse to participate in PBM plans), and restricting the type of pharmacies seniors may use in the name of “cost effectiveness.” PBM bureaucrats may even go so far as to forbid seniors from using their own money to purchase Medicare-covered pharmaceuticals. I remind my colleagues that today the federal government prohibits seniors from using their own money to obtain health care services which differ from those “approved” of by the Medicare bureaucracy! money Is America a Police State? June 27, 2002    2002 Ron Paul 64:57 To add insult to injury, when he made this outlandish announcement, our Attorney General was in Moscow. Maybe if our FBI spent more time at home, we would get more for the money we pump into this now- discredited organization. Our FBI should be gathering information here at home, and the thousands of agents overseas should return. We don’t need these agents competing overseas and confusing the intelligence apparatus of the CIA or the military. money Is America a Police State? June 27, 2002    2002 Ron Paul 64:69 If we avoid the truth, we will be far less well off than if we recognize that just maybe there is some truth in the statements made by the leaders of those who perpetrated the atrocities. If they speak the truth about the real cause, changing our foreign policy from foreign military interventionism around the globe supporting an American empire would make a lot of sense. It could reduce tensions, save money, preserve liberty and preserve our economic system. money Is America a Police State? June 27, 2002    2002 Ron Paul 64:79 It’s a definite benefit for so many to recognize that our $40 billion annual investment in intelligence gathering prior to 9/11 was a failure. Now a sincere desire exists to rectify these mistakes. That’s good, unless, instead of changing the role for the CIA and the FBI, all the past mistakes are made worse by spending more money and enlarging the bureaucracies to do the very same thing without improving their efficiency or changing their goals. Unfortunately that is what is likely to happen. money Unintended Consequences of the Drug War June 27, 2002    2002 Ron Paul 65:11 Now the war on drugs and the war on terrorism are beginning to look like two currents in a single river. Nearly half of the international terrorist groups on the State Department’s list are involved in drug trafficking, either to raise money for their political aims or because successful drug commerce requires a ruthlessness indistinguishable from terrorism. money Unintended Consequences of the Drug War June 27, 2002    2002 Ron Paul 65:12 The currents don’t always run together: The FBI and other federal law enforcement agencies acknowledge that the extra resources they are devoting to the detection and apprehension of terrorists are not new resources; the money agents and equipment come to the war on terror at the expense of the war on drugs. money Unintended Consequences of the Drug War June 27, 2002    2002 Ron Paul 65:13 In the domestic war on drugs, officials are trying to make the two currents serve their purposes. The government runs TV ads portraying young Americans confessing, "I killed grandmas. I killed daughters. I killed firemen. I killed policemen," and then warning the viewers, "Where do terrorists get their money? If you buy drugs, some of it may come from you." money Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:1 It is now commonplace and politically correct to blame what is referred to as the excesses of capitalism for the economic problems we face, and especially for the Wall Street fraud that dominates the business news. Politicians are having a field day with demagoguing the issue while, of course, failing to address the fraud and deceit found in the budgetary shenanigans of the federal government- for which they are directly responsible. Instead, it gives the Keynesian crowd that run the show a chance to attack free markets and ignore the issue of sound money. money Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:10 Capitalism should not be condemned, since we haven’t had capitalism. A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank. It’s not capitalism when the system is plagued with incomprehensible rules regarding mergers, acquisitions, and stock sales, along with wage controls, price controls, protectionism, corporate subsidies, international management of trade, complex and punishing corporate taxes, privileged government contracts to the military- industrial complex, and a foreign policy controlled by corporate interests and overseas investments. Add to this centralized federal mismanagement of farming, education, medicine, insurance, banking and welfare. This is not capitalism! money Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:22 Capitalism didn’t give us this crisis of confidence now existing in the corporate world. The lack of free markets and sound money did. Congress does have a role to play, but it’s not proactive. Congress’ job is to get out of the way. money Hard Questions for Federal Reserve Chairman Greenspan July 17, 2002    2002 Ron Paul 71:3 "You have in your testimony expressed concern about the greed factor which obviously is there. And you implied that this has come out from the excessive capitalization/excessive valuations, which may be true. But I believe where you have come up short is in failing to explain why we have financial bubbles. I think when you have fiat money and excessive credit you create financial bubbles and you also undermine the value of the dollar and now we are facing that consequence. We see the disintegration of some of these markets. At the same time we have potential real depreciation of the value of our dollar. And we have pursued rampant inflation of the money supply. Since you have been Chairman of the Federal Reserve we have literally created $4.7 trillion worth of new money in M-3. Even in this last year with this tremendous burst of inflation of the money supply has gone up since last January over $1 trillion. You can’t have anything but lower value of that unit of account if you keep printing and creating new money. money Hard Questions for Federal Reserve Chairman Greenspan July 17, 2002    2002 Ron Paul 71:4 "Now I would like to bring us back to sound money. And I would like to quote an eminent economist by the name of Alan Greenspan who gives me some credibility on what I am interested in. A time ago you said, “In the absence of the gold standard there is no way to protect savings from the confiscation through inflation. There is no safe store of value without gold. This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious process that stands as a protector of property rights.’" money Hard Questions for Federal Reserve Chairman Greenspan July 17, 2002    2002 Ron Paul 71:6 "But gold has always had to be undermined if fiat money is to work and there has to be an illusion of trust for paper to work. And I think this has been happening for thousands of years. At one time the kings clipped coins. Then they debased the metals. Then we learned how to print money. Even as recently as the 1960’s for us to perpetuate a myth about our monetary system, we dumped 2/3 of our gold, or 500 million ounces of gold at $35 per ounce in order to try to convince people to trust the money. And even today, there is a fair amount of trading by central banks, the dumping of hundreds of tonnes of gold, loaning of gold for the sole purpose that this indicator of gold does not discredit the paper money and I think there is a definite concerted effort to do that. money 25 July 2002 Monetary Practices    2002 Ron Paul 78:1 Mr. PAUL. Mr. Speaker, as the attached article (“A Classic Hayekian Hangover”) by economists Roger Garrison and Gene Callahan makes clear, much of the cause for our current economic uneasiness is to be found in the monetary expansion over most of the past decade. In short, expansion of the money supply as made possible by the policy of fiat currency, leads directly and inexorably to the kind of problems we have seen in the financial markets of late. Moreover, if we do not make the necessary policy changes, we will eventually see similar problems throughout the entire economy. money 25 July 2002 Monetary Practices    2002 Ron Paul 78:2 As the authors point out, our ability to understand the linkage between inflated money supplies and subsequent economic downturns is owing to the ground breaking work of the legendary economists of the Austrian school. This Austrian Business Cycle (or “ABC”) theory has long explained the inevitable downside that attends to a busting of the artificial bubble created by inflationary fiat monetary practices. money 25 July 2002 Monetary Practices    2002 Ron Paul 78:3 In the current instance, the fact that there has been nearly a decade of significant increases in the seasonally adjusted money supply, as measured by MZM (as shown by the chart included with the article), serves as a direct explanation for the over capitalization and excess confidence which we have seen recently leaving financial markets. In short, as this article shows, the Austrian theory alone understands the causes for what has been termed “irrational exuberance” in the financial markets. money 25 July 2002 Monetary Practices    2002 Ron Paul 78:10 But the Fed can do more than simply impose a ceiling on credit markets. Setting the interest rate below where the market would have it is accomplished not by decree but by increasing the money supply, temporarily masking the discrepancy between supply and demand. This papering over of the credit shortage hides a problem that would otherwise be obvious, allowing it to fester beneath a binge of investment spending. money 25 July 2002 Monetary Practices    2002 Ron Paul 78:12 Save more, and we get a market process that plays itself out as economic growth. Pump new money through credit markets, and we get a market process of a very different kind: It doesn’t play itself out; it does itself in. The investment binge is followed by a hangover. This is the Austrian theory in a nutshell. (Ironically, it is the theory that Alan Greenspan presented forty years ago when he lectured for the Nathaniel Branden Institute.) We believe that there is strong evidence that the United States is now in the hangover phase of a classic Mises-Hayek business cycle. money 25 July 2002 Monetary Practices    2002 Ron Paul 78:13 In recent years money-supply figures have become clouded by institutional and technological change. But in our view, a tale-telling pattern is traced out by the MZM data reported by the Federal Reserve Bank of St. Louis. ZM standing for “zero maturity,” this monetary aggregate is a better indicator of credit conditions than are the more narrowly defined M’s. money 25 July 2002 Monetary Practices    2002 Ron Paul 78:15 Sean Corrigan, a principal in Capital Insight, a UK-based financial consultancy, has recently detailed the consequences of the expansion that came in “. . . autumn 1998, when the world economy, still racked by the problems of the Asian credit bust over the preceding year, then had to cope with the Russian default and the implosion of the mighty Long-Term Capital Management.” Corrigan goes on: “Over the next eighteen months, the Fed added $55 billion to its portfolio of Treasuries and swelled repos held from $6.5 billion to $22 billion . . . [T]his translated into a combined money market mutual fund and commercial bank asset increase of $870 billion to the market peak, of $1.2 trillion to the industrial production peak, and of $1.8 trillion to date — twice the level of real GDP added in the same interval” (http://www.mises.org/ fullarticle.asp?control=754). money Providing For Consideration Of H.R. 5005, Homeland Security Act Of 2002 25 July 2002    2002 Ron Paul 79:7 I also introduced four amendments to the bill itself, including those that would prohibit a national identification card, that would prohibit the secretary of this new department from moving money to other agencies and departments without congressional oversight, that would deny student visas to nationals of Saudi Arabia, and that would deny student and diversity visas to nationals from terrorist-sponsoring countries. All of these amendments, which would have addressed some of the real issues of our security, were rejected. They were not even allowed onto the floor for a debate. This is yet more evidence of the failure of this process. money Department of Homeland Security 26 July 2002    2002 Ron Paul 80:7 We have also received a Congressional Budget Office (CBO) cost estimate suggesting that it will cost no less than $3 billion just to implement this new department. That is $3 billion dollars that could be spent to capture those responsible for the attacks of September 11 or to provide tax-relief to the families of the victims of that attack. It is three billion dollars that could perhaps be better spent protecting against future attacks, or even simply to meet the fiscal needs of our government. Since those attacks this Congress has gone on a massive spending spree. Spending three billion additional dollars now, simply to rearrange offices and command structures, is not a wise move. In fact, Congress is actually jeopardizing the security of millions of Americans by raiding the social security trust fund to rearrange deck chairs and give big spenders yet another department on which to lavish porkbarrel spending. The way the costs of this department have skyrocketed before the Department is even open for business leads me to fear that this will become yet another justification for Congress to raid the social security trust fund in order to finance pork-barrel spending. This is especially true in light of the fact that so many questions remain regarding the ultimate effect of these structural changes. Moreover, this legislation will give the Executive Branch the authority to spend money appropriated by Congress in ways Congress has not authorized. This clearly erodes Constitutionally- mandated Congressional prerogatives relative to control of federal spending. money The Price Of War 5 September 2002    2002 Ron Paul 83:45 All foreign aid would be discontinued. Most evidence shows this money rarely helps the poor but instead solidifies power in the hands of dictators. There is no moral argument that can justify taxing poor people in this country to help rich people in poor countries. Much of the foreign aid, when spent, is channeled back to weapons manufacturers and other special interests in the United States who are the strong promoters of these foreign aid expenditures, yet it is all done in the name of humanitarian causes. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:3 From the Great Depression, to the stagflation of the seventies, to the burst of the dotcom bubble last year, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:5 Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of the special interests and their own appetite for big government. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:6 Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the Federal Government to erode Americans’ living standard via an inflationary monetary policy. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:7 In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our Nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:8 In conclusion, Mr. Speaker, I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money supply which erodes Americans’ standard of living, enlarges big government, and enriches well-connected elites, by cosponsoring my legislation to abolish the Federal Reserve. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:13 The dollar, and all our money, is nothing more and nothing less than what it looks like: a cut piece of linen paper with fancy printing on it. You can exchange it for other currency at a fixed rate and for any good or service at a flexible rate. But there is no established exchange rate between the dollar and gold, either at home or internationally. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:14 The supply of money is not limited by the amount of gold. Gold is just another good for which the dollar can be exchanged, and in that sense is legally no different from a gallon of milk, a tank of gas, or an hour of babysitting services. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:16 There is no getting away from it: investor markets have memories of the days when gold was money. In fact, in the whole history of civilization, gold has served as the basic money of all people wherever it’s been available. Other precious metals have been valued and coined, but gold always emerged on top in the great competition for what constitutes the most valuable commodity of all. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:17 There is nothing intrinsic about gold that makes it money. It has certain properties that lend itself to monetary use, like portability, divisibility, scarcity, durability, and uniformity. But these are just descriptors of certain qualities of the metal, not explanations as to why it became money. Gold became money for only one reason: because that’s what the markets chose. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:18 Why isn’t gold money now? Because governments destroyed the gold standard. Why? Because they regarded it as too inflexible. To be sure, monetary inflexibility is the friend of free markets. Without the ability to create money out of nothing, governments tend to run tight financial ships. Banks are more careful about the lending when they can’t rely on a lender of last resort with access to a money-creation machine like the Fed. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:19 A fixed money stock means that overall prices are generally more stable. The problems of inflation and business cycles disappear entirely. Under the gold standard, in fact, increased market productivity causes prices to generally decline over time as the purchasing power of money increases. In 1967, Alan Greenspan once wrote an article called Gold and Economic Freedom. He wrote that: money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:21 He was right. Gold and freedom go together. Gold money is both the result of freedom and its leading protector. When money is as good as gold, the government cannot manipulate the supply for its own purposes. Just as the rule of law puts limits on the despotic use of police power, a gold standard puts extreme limits on the government’s ability to spend, borrow, and otherwise create crazy unworkable programs. It is forced to raise its revenue through taxation, not inflation, and generally keep its house in order. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:24 In the real world, of course, there is a lag time between cause and effect. The Fed has been inflating the currency at very high levels for longer than a year. The consequences of this disastrous policy are showing up only recently in the form of a falling dollar and higher gold prices. And so what does the Fed do? It is pulling back now. For the first time in nearly ten years, some measures of money (M2 and MZM) are showing a falling money stock, which is likely to prompt a second dip in the continuing recession. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:25 Greenspan now finds himself on the horns of a very serious dilemma. If he continues to pull back on money, the economy could tip into a serious recession. This is especially a danger given rising protectionism, which mirrors the events of the early 1930s. On the other hand, a continuation of the loose policy he has pursued for a year endangers the value of the dollar overseas. money Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:26 How much easier matters were when we didn’t have to rely on the wisdom of exalted monetary central planners like Greenspan. Under the gold standard, the supply of money regulated itself. The government kept within limits. Banks were more cautious. Savings were high because credit was tight and saving was rewarded. This approach to economics is the foundation of a sustainable prosperity. money Can We Afford this War? September 24, 2002    2002 Ron Paul 89:6 We have run a huge current account deficit for 15 years and massively expanded our money supply. No one should be surprised that the dollar is weakening and the commodity, natural resources, and precious metal prices are rising. money Can We Afford this War? September 24, 2002    2002 Ron Paul 89:13 Since there are limits to borrowing and taxing, but no limits to the Fed printing money to cover our deficit, we can be assured this will occur. This guarantees that Social Security checks will never stop coming, but it also guarantees that the dollars that all retired people receive will buy less. We have already seen this happening in providing medical services. A cheap dollar; that is, an inflated dollar, is a sinister and deceitful way of cutting benefits. money The Shrimp Importation Financing Fairness Act October 8, 2002    2002 Ron Paul 97:7 Adding insult to injury the federal government is forcing American shrimpers to subsidize their competitors! In the last three years, the United States Government has provided more than $1,800,000,000 in financing and insurance for these foreign countries through the Overseas Private Investment Corporation (OPIC). Furthermore, the U.S. current exposure relative to these countries through the Export-Import Bank totals some $14,800,000,000. Thus, the United States taxpayer is providing a total subsidy of $16,500,000,000 to the home countries of the leading foreign competitors of American shrimpers! Of course, the American taxpayer could be forced to shovel more money to these countries through the International Monetary Fund (IMF). money The Shrimp Importation Financing Fairness Act October 8, 2002    2002 Ron Paul 97:8 Many of the countries in question do not have free-market economics. Thus, the participation of these countries in United States-supported international financial regimes amounts to a direct subsidy by American shrimpers to their international competitors. In any case, providing aid to any of these countries indirectly grants benefits to foreign shrimpers because of the fungibility of money. money Truth In Financing Act 8 October 2002    2002 Ron Paul 98:4 Most importantly, the Truth in Financing Act allows any U.S. citizen to use the courts to force federal officials to cut off funds from those who violate the law. No longer will taxpayers have to sit silently by while federal bureaucrats shovel money to those who flaunt the laws of this country. money Unintended Consequences November 14, 2002    2002 Ron Paul 102:8 The Kurds may jump at the chance, if chaos ensues, to fulfill their dream of an independent Kurdish homeland. This, of course, will stir the ire of the Turks and the Iranians. Instead of stability for northern Iraq, the war likely will precipitate more fighting than the war planners ever imagined. Delivering Kurdish Iraq to Turkey as a prize for its cooperation with our war plans will not occur without a heated and deadly struggle. Turkey is already deeply concerned about the prospect for Kurdish independence, and only remains loyal to America because U.S. taxpayers are forced to subsidize an already depressed Turkish economy caused by our Iraqi policies. More money will pacify for a while, but either frustration with the perpetual nature of the problem or our inability to continue the financial bailout will lead Turkey to have second thoughts about its obedience to our demands to wage war from their country. All of this raises the odds that Islamic radicals will once more take control of the Turkish government. These developing conditions increase the odds of civil strife erupting in Turkey. money Introduction of the Social Security Preservation Act January 7, 2003    2003 Ron Paul 1:2 The Social Security Preservation Act ensures that the government will keep its promises to America’s seniors that taxes collected for Social Security will be used for Social Security. When the government taxes Americans to fund Social Security, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money Shrimp Importation Financing Fairness Act 7 January 2003    2003 Ron Paul 3:7 Adding insult to injury, the federal government is forcing American shrimpers to subsidize their competitors! Since 1999, the United States Government has provided more than $1,800,000,000 in financing and insurance for these foreign countries through the Overseas Private Investment Corporation (OPIC). Furthermore, according to the latest available figures, the U.S. current exposure relative to these countries through the Export- Import Bank totals some $14,800,000,000. Thus, the United States taxpayer is providing a subsidy of at least $16,500,000,000 to the home countries of the leading foreign competitors of American shrimpers! Of course, the American taxpayer could be forced to shovel more money to these countries through the International Monetary Fund (IMF). money Shrimp Importation Financing Fairness Act 7 January 2003    2003 Ron Paul 3:8 Many of the countries in question do not have free-market economics. Thus, the participation of these countries in United States-supported international financial regimes amounts to a direct subsidy by American shrimpers to their international competitors. In any case, providing aid to any of these countries indirectly grants benefits to foreign shrimpers because of the fungibility of money. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:17 The marketplace, driven by voluntary cooperation, private property ownership, and sound money was severely undermined with the acceptance of the principles of true democracy. Unfortunately, too many people confused the democratic elections of leaders in a Republic for democracy by accepting the rule of majority opinion in all affairs. For majorities to pick leaders is one thing. It is something quite different for majorities to decide what rights are, to redistribute property, to tell people how to manage their personal lives, and to promote undeclared, unconstitutional wars. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:37 Democracy encourages the mother of all political corruption, the use of political money to buy influence. If the dollars spent in this effort represent the degree to which democracy has won out over the rule of law and the Constitution, it looks like the American Republic is left wanting. Billions are spent on the endeavor. Money and politics is the key to implementing policy and swaying democratic majorities. It is seen by most Americans, and rightly so, as a negative and danger. Yet the response, unfortunately, is only more of the same. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:38 More laws tinkering with freedom of expression are enacted in hopes that regulating sums of private money thrown into the political system will curtail the abuse; but failing to understand the cause of the problem, lack of respect for the Constitution and obsession with legislative relativity dictated by the majority serve only to further undermine the rule of law. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:40 It was no accident in 1913 when the dramatic shift toward democracy became pronounced that the Federal Reserve was established. A personal income tax was imposed as well. At the same time, popular election of Senators was instituted, and our foreign policy became aggressively interventionist. Even with an income tax, the planners for war and welfare knew that it would become necessary to eliminate restraints on the printing of money. Private counterfeiting was a heinous crime, but government counterfeiting and fractional reserve banking were required to seductively pay for the majority’s demands. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:41 It is for this reason that democracies always bring about currency debasement through inflation of the money supply. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:42 Some of the planners of today clearly understand the process. And others, out of ignorance, view central bank money creation as a convenience with little danger. That is where they are wrong. Even though the wealthy and the bankers support paper money, believing they know how to protect against its ill effects, many of them are eventually dragged down in the economic downturns that always develop. It is not a new era that they have created for us today, but more of the same endured throughout history by so many other nations. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:53 Ever since 1913, all our Presidents have endorsed meddling in the internal affairs of other nations and have given generous support to the notion that a world government would facilitate the goals of democratic welfare or socialism. On a daily basis we hear that we must be prepared to send our money and use our young people to police the world in order to spread democracy. Whether it is Venezuela or Colombia, Afghanistan or Pakistan, Iran, Iraq, Korea or Vietnam, our intervention is always justified with the tone of moral arrogance that it is for their own good. Our policymakers promote democracy as a cure-all for the various complex problems of the world. Unfortunately, the propaganda machine is able to hide the real reasons for our empire-building. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:68 In the name of democracy, just as it is done in Washington, powerful nations with the most money will control the United Nations policy. Bribery, threats and intimidation are common practices used to achieve a democratic consensus, no matter how controversial and short-lived the benefits. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:74 Facing this problem of paying for past and present excess spending, the borrowing and inflating of the money supply has already begun in earnest. Many retirees, depending on their 401(k) funds and other retirement programs, are suffering the ill effects of the stock market crash, a phenomenon that still has a long way to go. Depreciating the dollar by printing excessive money, like the Fed is doing, will eventually devastate the purchasing power of those retirees who are dependent on Social Security. Government cost-ofliving increases will never be able to keep up with the loss. The elderly are already unable to afford the inflated cost of medical care, especially the cost of pharmaceuticals. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:88 Even a system of free market money, a redeemable gold coin standard, functions through the principle of consumers always voting or withholding support for that currency. A gold standard can only work when freely converted into gold coins, giving every citizen a right to vote on a daily basis for or against the government’s money. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:94 Today, it is the opposite. The American people must get permission from the government for their every move, whether it is the use of their own property or spending their own money. Even the most serious decisions, such as going to war, are done while ignoring the Constitution and without a vote of the people’s representatives in the Congress. Members of the global government have more to say about when American troops are put in harm’s way than the U.S. Congress. The Constitution no longer restrains the government. The government restrains the people in all they do. This destroys individual creative energy, and the “mainspring of human progress” is lost. The consequences are less progress, less prosperity, and less personal fulfillment. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:112 But there is also a problem with economic understanding. Economic ignorance about the shortcomings of central economic planning, excessive taxation and regulations, central bank manipulation of money, and credit and interest rates is pervasive in our Nation’s Capital. A large number of conservatives now forcefully argue that deficits do not matter. Spending programs never shrink no matter whether conservatives or liberals are in charge. Rhetoric favoring free trade is cancelled out by special interest protectionist measures. Support of international government agencies that manage trade such as the IMF, the World Bank, the WTO, and NAFTA politicizes international trade and eliminates any hope that free-trade capitalism will soon emerge. money Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:114 The current economic system of fiat money and interventionism, both domestic and international, serve to accommodate the unreasonable demands for government to take care of the people, and this, in turn, contributes to the worst of human instincts: authoritarian control by the few over the many. money End the Income Tax – Pass the Liberty Amendment January 28, 2003    2003 Ron Paul 7:1 Mr. Speaker, I am pleased to introduce the Liberty Amendment, which repeals the 16th Amendment, thus paving the way for real change in the way government collects and spends the people’s hard-earned money. The Liberty Amendment also explicitly forbids the federal government from performing any action not explicitly authorized by the United States Constitution. money End the Income Tax – Pass the Liberty Amendment January 28, 2003    2003 Ron Paul 7:5 Income taxes not only diminish liberty, they retard economic growth by discouraging work and production. Our current tax system also forces Americans to waste valuable time and money on complacence with an ever-more complex tax code. The increased interest in flat-tax and national sales tax proposals, as well as the increasing number of small businesses that questioning the Internal Revenue Service’s (IRS) “withholding” system provides further proof that America is tired of the labyrinthine tax code. Americans are also increasingly fed up with an IRS that continues to ride roughshod over their civil liberties, despite recent “pro-taxpayer” reforms. money Reduce Taxes On Senior Citizens January 28, 2003    2003 Ron Paul 8:3 Instead of imposing ridiculous taxes on senior citizens, Congress should ensure the integrity of the Social Security trust fund by ending the practice of using trust fund moneys for other programs. In order to accomplish this goal I introduced the Social Security Preservation Act (H.R. 219), which ensures that all money in the Social Security trust fund is spent solely on Social Security. At a time when Congress’ inability to control spending is once again threatening the Social Security trust fund, the need for this legislation has never been greater. When the government taxes Americans to fund Social Security, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money Reduce Taxes On Senior Citizens January 28, 2003    2003 Ron Paul 8:4 In conclusion, Mr. Speaker, I urge my colleagues to help free senior citizens from oppressive taxation by supporting my Senior Citizens’ Tax Elimination Act and my Social Security Beneficiary Tax Reduction Act. I also urge my colleagues to ensure that moneys from the Social Security trust fund are used solely for Social Security benefits and not wasted on frivolous government programs. money Expand Medicare MSA Program 5 February 2003    2003 Ron Paul 12:1 Mr. PAUL. Mr. Speaker, I rise to introduce legislation which enhances senior citizens’ ability to control their health care and use Medicare money to pay for prescription drugs. This legislation accomplishes these important goals by removing the numerical limitations and sunset provisions in the Medicare Medical Savings Account (MSAS) program so that all seniors can take advantage of the Medicare MSA option. money Expand Medicare MSA Program 5 February 2003    2003 Ron Paul 12:7 In conclusion, Mr. Speaker, I urge my colleagues to provide our senior citizens greater control of their health care, including the ability to use Medicare money to purchase prescription drugs by cosponsoring my legislation to expand the Medicare MSA program. money The Family Education Freedom Act February 5, 2003    2003 Ron Paul 13:5 Today, Congress can fulfill the wishes of the American people for greater control over their children’s education by simply allowing parents to keep more of their hard-earned money to spend on education rather than force them to send it to Washington to support education programs reflective only of the values and priorities of Congress and the federal bureaucracy. money Support Medical Savings Accounts for Medicare February 13, 2003    2003 Ron Paul 21:1 Mr. Speaker, I rise to introduce legislation that enhances senior citizens’ ability to control their health care and use Medicare money to pay for prescription drugs. This legislation accomplishes these important goals by removing the numerical limitations and sunset provisions in the Medicare Medical Savings Account (MSAS) program so that all seniors can take advantage of the Medicare MSA option. money Support Medical Savings Accounts for Medicare February 13, 2003    2003 Ron Paul 21:8 In conclusion, Mr. Speaker, I urge my colleagues to provide our senior citizens greater control of their health care, including the ability to use Medicare money to purchase prescription drugs, by cosponsoring legislation to expand the Medicare MSA program. money Oppose the Federal Welfare State February 13, 2003    2003 Ron Paul 22:10 Today, government welfare programs have supplemented the old-style private programs. One major reason for this is that the policies of high taxes and inflationary Federal Reserve money imposed on the American people in order to finance the welfare state have reduced the income available for charitable giving. Many over-taxed Americans take the attitude toward private charity that “I give at the (tax) office.” money Oppose the Federal Welfare State February 13, 2003    2003 Ron Paul 22:11 Releasing the charitable impulses of the American people by freeing them from the excessive tax burden so they can devote more of their resources to charity, is a moral and constitutional means of helping the needy. By contrast, the federal welfare state is neither moral nor constitutional. Nowhere in the Constitution is the federal government given the power to level excessive taxes on one group of citizens for the benefit of another group of citizens. Many of the founders would have been horrified to see modern politicians define compassion as giving away other people’s money stolen through confiscatory taxation. In the words of the famous essay by former Congressman Davy Crockett, this money is “Not Yours to Give.” money Another United Nations War 25 February 2003    2003 Ron Paul 24:10 From my viewpoint, the worst scenario would be for the United Nations to sanction this war, which may well occur if we offer enough U.S. taxpayer money and Iraqi oil to the reluctant countries. If that happens, we could be looking at another 58-year occupation, expanded Middle East chaos, or a dangerous spread of hostility to all of Asia or even further. money The Financial Services Committee’s Terrible Blueprint for 2004 February 28, 2003    2003 Ron Paul 27:2 For example, this document gives an unqualified endorsement to increased taxpayer support for the Financial Crimes Enforcement Network (FINCEN). According to the committee, these increased funds are justified by FINCEN’s new authority under the PATRIOT Act. However, Mr. Chairman, FINCEN’s power to snoop into the private financial affairs of American citizens raises serious constitutional issues. Whether the expansion of FINCEN’s power threatens civil liberties is ignored in this document; instead, the committee is concerned that the federal financial police state does not have enough power and taxpayer money to invade the privacy of United States citizens! money The Financial Services Committee’s Terrible Blueprint for 2004 February 28, 2003    2003 Ron Paul 27:3 The committee shows complete disregard for the American taxpayer and the United Sates Constitution by embracing increases in foreign aid. Congress has neither constitutional nor moral authority to take money from the American people and send it overseas. Furthermore, foreign aid rarely improves the standard of living of the citizens of the “beneficiary” countries. Instead, the aid all too often enriches corrupt politicians and helps stave off pressure for real reform. Furthermore, certain proposals embraced by the committee smack of economic imperialism, suggesting that if a country’s economic and other policies please American politicians and bureaucrats, they will be rewarded with money stolen from American taxpayers. money The Financial Services Committee’s Terrible Blueprint for 2004 February 28, 2003    2003 Ron Paul 27:8 In conclusion, the “Views and Estimates” presented by the Financial Services Committee endorse increasing the power of the federal police state, as well as increasing both international and corporate welfare, while ignoring the economic problems created by federal intervention into the economy. I therefore urge my colleagues to reject this document and instead embrace an agenda of ending federal corporate welfare, protecting financial privacy, and reforming the fiat money system that is the root cause of America’s economic instability. money The Myth of War Prosperity March 4, 2003    2003 Ron Paul 28:4 There are many economic shortcomings during a war. During wartime it is much more common to experience inflation because the money presses are running to fund military expenses. Also, during wartime there is a bigger challenge to the currency of the warring nation, and already we see that the dollar has dropped 20 percent in the past year. Although there are many other reasons for a weak dollar, the war certainly is contributing to the weakness in the dollar. money Don’t Antagonize our Trading Partners April 1, 2003    2003 Ron Paul 41:9 The day will come when true monetary reform will be required. Printing money to finance war and welfare can never be a panacea. money War No Excuse For Frivolous Spending 3 April 2003    2003 Ron Paul 46:1 Mr. PAUL. Mr. Chairman, at a time of war Congress has no more important duty than to make sure that our military force have all the resources they need. However, Congress also has a duty to not use the war as cover for unnecessary and unconstitutional spending. This is especially true when war coincides with a period of economic downturn and growing federal deficits. Unfortunately, Congress today is derelict in its duty to the United States taxpayer. Instead of simply ensuring that our military has the necessary resources to accomplish its mission in Iraq, a mission which may very well be over before this money reaches the Pentagon, Congress has loaded this bill up with unconstitutional wasteful foreign aid and corporate welfare spending. money War No Excuse For Frivolous Spending 3 April 2003    2003 Ron Paul 46:2 For example, this bill provides a hidden subsidy to vaccine manufacturers by transferring liability for injuries caused by the smallpox vaccine from the companies to the United States Taxpayer. It also provides $3.2 billion dollars for yet another government bailout of the airline industry, as well as a hidden subsidy to the airlines in the form of $235 million of taxpayer money to pay for costs associated with enhanced baggage screening. Mr. Speaker, there is no more constitutional reason for the taxpayer to protect what is, after all, the airlines’ private property, than there is for the taxpayer to subsidize security costs at shopping malls or factories. Furthermore, the airlines could do a more efficient and effective job at providing security if they were freed from government rules and regulations. I remind my colleagues that it was government bureaucrats who disarmed airline pilots, thus leaving the pilots of the planes used in the September 11 attacks defenseless against the terrorists. I would also remind my colleagues that anti-gun fanatics in the federal bureaucracy continue to prevent pilots from carrying firearms. money War No Excuse For Frivolous Spending 3 April 2003    2003 Ron Paul 46:3 Although generous to certain corporate interests, this bill actually contains less money than the administration requested for homeland security. One area of homeland security that Congress did not underfund is its own security; this bill provides the full amount requested to ensure the security of the Congress. Still, one could reasonably conclude from reading this bill that the security of Turkey, Pakistan, and Jordan are more important to Congress that the security of Houston, New York and other major American cities. money War No Excuse For Frivolous Spending 3 April 2003    2003 Ron Paul 46:4 On foreign spending, this bill actually provides one billion dollars in foreign aid to Turkey — even though that country refused the U.S. request for cooperation in the war on Iraq. One billion dollars to a country that thumbed its nose at an American request for assistance? How is this possibly an appropriate expenditure of taxpayer money? Additionally, this “war supplemental” has provided cover for more of the same unconstitutional foreign aid spending. It provides 2.5 billion dollar for Iraqi reconstruction when Americans have been told repeatedly that reconstruction costs will be funded out of Iraqi oil revenues. It also ensures that the American taxpayer will subsidize large corporations that wish to do business in Iraq by making transactions with Iraq eligible for support from the Export-Import Bank. It sends grants and loans in excess of 11.5 billion dollars to Jordan, Israel, Egypt, and Afghanistan — above and beyond the money we already send them each year. money War No Excuse For Frivolous Spending 3 April 2003    2003 Ron Paul 46:5 Incredibly, this bill sends 175 million dollars in aid to Pakistan even though it was reported in April that Pakistan purchased ballistic missiles from North Korea! Furthermore, it is difficult to understand how $100 million to Colombia, $50 million to the Gaza Strip, and $200 million for “Muslim outreach” has anything to do with the current war in Iraq. Also, this bill spends $31 million to get the federal government into the television broadcasting business in the Middle East. With private American news networks like CNN available virtually everywhere on the globe, is there any justification to spend taxpayer money to create and fund competing state-run networks? Aren’t state-run news networks one of the features of closed societies we have been most critical of in the past? money Agriculture Education Freedom Act 10 April 2003    2003 Ron Paul 50:2 Think about this for a moment. These kids are trying to better themselves, earn some money, save some money and what does Congress do? We pick on these kids by taxing them. It is truly amazing that with all the handwringing in Congress over the alleged need to further restrict liberty and grow the size of government “for the children” we would continue to tax young people who are trying to lead responsible lives and prepare for the future. Even if the serious social problems today’s youth face could be solved by new federal bureaucracies and programs, it is still unfair to pick on those kids who are trying to do the right thing. money Agriculture Education Freedom Act 10 April 2003    2003 Ron Paul 50:4 It is time we stopped taxing youngsters who are trying to earn money to go to college by selling livestock they have raised through their participation in programs such as 4–H or Future Farmers of America. Therefore, I call on my colleagues to join me in supporting the Agriculture Education Freedom Act. money Big Program Won’t Eliminate AIDS 1 May 2003    2003 Ron Paul 54:1 Mr. PAUL. Mr. Chairman, as a physician I am particularly concerned about terrible diseases like AIDS. I have great sympathy for those — in increasing numbers — who suffer and die around the world. The question is not whether each and every one of us is concerned or would like to do something about this terrible problem. The question is whether yet another massive government foreign aid program will actually do anything at all to solve the problem. The United States has been sending billions and billions of dollars overseas for decades to do fine-sounding things like “build democracy” and “fight drugs” and “end poverty.” Yet decades later we are told that in every category these things have actually gotten worse rather than better. Our money has disappeared into bank accounts of dictators and salaries for extremely well-paid consultants and U.S. Government employees. Yet we refuse to learn from these mistakes; we are about to make another multi-billion dollar mistake with this bill. money Big Program Won’t Eliminate AIDS 1 May 2003    2003 Ron Paul 54:2 Though I have not been in favor of Federal Government funding of healthcare, if this money is going to be spent why shouldn’t it be spent in this country, on American citizens? One legitimate function of government is to protect its citizens and taxpayers. Yet thousands of Americans who have contracted this terrible disease find themselves without any healthcare at all. Thousands of these Americans, as they become ill, are no longer able to work and therefore lose their insurance coverage. Drugs to treat the disease become impossible to afford; those with disease end up along and in misery. I seriously wonder whether negative perceptions of those at risk in this country do not drive this push to send billions abroad rather than address the disease here at home. I believe that if this money is to be spend it should be spent on Americans, regardless of what some may think about those high-risk groups. money Big Program Won’t Eliminate AIDS 1 May 2003    2003 Ron Paul 54:3 Bills like the one we are considering today also force Americans to fund programs and organizations that many find morally objectionable, such as those that distribute condoms and perform abortion. While some amendments we are voting on today admirably seek to address some of these concerns, the fact remains that this bill even if amended unconstitutionally sends U.S. taxpayer money overseas and inappropriately engages in social engineering abroad. None of the amendments address the immorality of forcing Americans to fund organizations engaged in family planning, performing abortions, and distributing condoms. As Thomas Jefferson famously said, “To compel a man to furnish funds for the propagation of ideas be disbelieves and abhors is sinful and tyrannical.” That is why I have introduced H.R. 1548, a bill to prohibit any Federal official from expending any Federal funds for any population control or population planning program or any family planning activity. What we are seeing today on the floor just underscores the need to pass H.R. 1548 — to end this tyrannical and sinful practice of forcing Americans to pay for programs they believe to be immoral and evil. money The Wisdom Of Tax Cuts 6 May 2003    2003 Ron Paul 56:2 Some say tax cuts raise revenues by addressing economic activity, thus providing Congress with even more money to spend. Others say lowering taxes simply lowers revenues and increases deficits. Some say we must target tax cuts to the poor and the middle class so they will spend more money. Others say tax cuts should be targeted to the rich so they can invest and create jobs. We must accept that it is hard to give tax cuts to people who do not pay taxes. But we could, if we wanted, cut payroll taxes for lower-income workers. money The Wisdom Of Tax Cuts 6 May 2003    2003 Ron Paul 56:3 The truth is, government officials cannot know what consumers and investors will do if they get a tax cut. Plugging tax cut data into a computer and expecting an accurate projection of the economic outcome is about as reliable as asking Congress to project government surpluses. Two important points are purposely ignored: first, the money people earn is their own, and they have a moral right to keep as much of it as possible. It is not Congress’ money to spend. Government spending is the problem. Taking a big chunk of the people’s earnings out of the economy, whether through taxes or borrowing, is always harmful. Taxation is more honest and direct and the harm is less hidden. Borrowing, especially since the Federal Reserve creates credit out of thin air to loan to big spenders in Congress, is more deceitful. It hides the effects and delays the consequences. But over the long term, this method of financing is much more dangerous. money The Flag Burning Amendment June 3, 2003    2003 Ron Paul 57:11 It was mentioned earlier that those who supported campaign finance laws were inconsistent. And others would say that we do not have to worry about the First amendment when we are dealing with the flag amendments. But I would suggest there is another position. Why can we not be for the First amendment when it comes to campaign finance reform and not ask the government to regulate the way we spend our money and advertise, while at the same time supporting the First amendment here? money The Flag Burning Amendment June 3, 2003    2003 Ron Paul 57:18 Earlier in the debate it was said that an individual may well be unpatriotic if he voted against a Defense appropriation bill. I have voted against the Defense appropriation bill because too much money in the Defense budget goes to militarism that does not really protect our country. I do not believe that is being unpatriotic. money The Flag Burning Amendment June 3, 2003    2003 Ron Paul 57:32 Some claim that this is not an issue of private property rights because the flag belongs to the country. The flag belongs to everybody. But if you say that, you are a collectivist. That means you believe everybody owns everything. So why do American citizens have to spend money to obtain, and maintain, a flag if the flag is community owned? If your neighbor, or the Federal Government, owns a flag, even without this amendment you do not have the right to go and burn that flag. If you are causing civil disturbances, you are liable for your conduct under state and local laws. But this whole idea that there could be a collective ownership of the flag is erroneous. money Results Of The Attack On Iraq: What Have We Discovered 19 June 2003    2003 Ron Paul 67:14 (14) At a time when the US economy continues to falter, costs of occupation and reconstruction of Iraq have skyrocketed. Money spent rebuilding Iraq is money not available to help the US economy recover. money Does Tony Blair Deserve a Congressional Medal? June 25, 2003    2003 Ron Paul 68:2 Second, though these gold medals are an unconstitutional appropriation of American tax dollars, at least in the past we have awarded them to great humanitarians and leaders like Mother Theresa, President Reagan, Pope John Paul II, and others. These medals generally have been proposed to recognize a life of service and leadership, and not for political reasons - as evidenced by the overwhelming bi-partisan support for awarding President Reagan, a Republican, a gold medal. These awards normally go to deserving individuals, which is why I have many times offered to contribute $100 of my own money, to be matched by other members, to finance these medals. money Does Tony Blair Deserve a Congressional Medal? June 25, 2003    2003 Ron Paul 68:6 Mr. Speaker, it is very easy to be generous with other people’s money. I believe the politicization of this medal, as we are seeing here today, really makes my own point on such matters: Congress should never spend tax money for appropriations not authorized within the enumerated powers of the Constitution. When it does so, it charts a dangerous course away from the rule of law and away from liberty. I urge a “No” vote on this unfortunate bill. money Keep Out Of Middle East Conflicts 25 June 2003    2003 Ron Paul 70:4 As I keep saying when votes such as this come to the floor, the best foreign policy for the United States is noninterventionism. It is a policy American interests first, costs must less money, and is in keeping with a long American tradition so eloquently described by our Founders. money Medicare Funds For Prescription Drugs 26 June 2003    2003 Ron Paul 71:4 Thus, in order to get any help with their prescription drug costs, seniors have to relinquish their ability to choose the type of prescriptions that meet their own individual needs! The inevitable result of this process will be rationing, as Medicare and/or HMO bureaucrats attempt to control costs by reducing the reimbursements paid to pharmacists to below-market levels (thus causing pharmacists to refuse to participate in Medicare), and restricting the type of pharmacies seniors may use in the name of “cost effectiveness.” Bureaucrats may even go so far as to forbid seniors from using their own money to purchase Medicarecovered pharmaceuticals. I remind may colleagues that today the federal government prohibits seniors from using their own money to obtain health care services that differ from those “approved” of by the Medicare bureaucracy! money Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:6 When taxes are not raised to accommodate higher spending, the bills must be paid by either borrowing or “printing” new money. This is one reason why we conveniently have a generous Federal Reserve chairman who is willing to accommodate the Congress. With borrowing and inflating, the “tax” is delayed and distributed in a way that makes it difficult for those paying the tax to identify it. Like future generations and those on fixed incomes who suffer from rising prices, and those who lose jobs they certainly feel the consequences of economic dislocation that this process causes. Government spending is always a “tax” burden on the American people and is never equally or fairly distributed. The poor and low-middle income workers always suffer the most from the deceitful tax of inflation and borrowing. money Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:21 The numbers of those who still hope for truly limited government diminished and had their concerns ignored these past 22 months, during the aftermath of 9-11. Members of Congress were easily influenced to publicly support any domestic policy or foreign military adventure that was supposed to help reduce the threat of a terrorist attack. Believers in limited government were harder to find. Political money, as usual, played a role in pressing Congress into supporting almost any proposal suggested by the neocons. This process—where campaign dollars and lobbying efforts affect policy—is hardly the domain of any single political party, and unfortunately, is the way of life in Washington. money Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:45 Various organizations and publications over the last 30 years have played a significant role in the rise to power of the neoconservatives. It took plenty of money and commitment to produce the intellectual arguments needed to convince the many participants in the movement of its respectability. money Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:49 The money and views of Rupert Murdoch also played a key role in promoting the neocon views, as well as rallying support by the general population, through his News Corporation, which owns Fox News Network, the New York Post , and Weekly Standard. This powerful and influential media empire did more to galvanize public support for the Iraqi invasion than one might imagine. This facilitated the Rumsfeld/Cheney policy as their plans to attack Iraq came to fruition. It would have been difficult for the neocons to usurp foreign policy from the restraints of Colin Powell’s State Department without the successful agitation of the Rupert Murdoch empire. Max Boot was satisfied, as he explained: “Neoconservatives believe in using American might to promote American ideals abroad.” This attitude is a far cry from the advice of the Founders, who advocated no entangling alliances and neutrality as the proper goal of American foreign policy. money Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:80 There’s no serious opposition to the expanding welfare state, with rapid growth of the education, agriculture and medical-care bureaucracy. Support for labor unions and protectionism are not uncommon. Civil liberties are easily sacrificed in the post 9-11 atmosphere prevailing in Washington. Privacy issues are of little concern, except for a few members of Congress. Foreign aid and internationalism—in spite of some healthy criticism of the UN and growing concerns for our national sovereignty—are championed on both sides of the aisle. Lip service is given to the free market and free trade, yet the entire economy is run by special-interest legislation favoring big business, big labor and, especially, big money. money Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:83 The supply-siders’ policy of low-marginal tax rates has been incorporated into neoconism, as well as their support for easy money and generous monetary inflation. Neoconservatives are disinterested in the gold standard and even ignore the supply-siders’ argument for a phony gold standard. money Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:91 We’re at the point where we need a call to arms, both here in Washington and across the country. I’m not talking about firearms. Those of us who care need to raise both arms and face our palms out and begin waving and shouting: Stop! Enough is enough! It should include liberals, conservatives and independents. We’re all getting a bum rap from politicians who are pushed by polls and controlled by special-interest money. money Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:93 Spending, borrowing and printing money cannot be the road to prosperity. It hasn’t worked in Japan, and it isn’t working here either. As a matter of fact, it’s never worked anytime throughout history. A point is always reached where government planning, spending and inflation run out of steam. Instead of these old tools reviving an economy, as they do in the early stages of economic interventionism, they eventually become the problem. Both sides of the political spectrum must one day realize that limitless government intrusion in the economy, in our personal lives and in the affairs of other nations cannot serve the best interests of America. This is not a conservative problem, nor is it a liberal problem—it’s a government intrusion problem that comes from both groups, albeit for different reasons. The problems emanate from both camps that champion different programs for different reasons. The solution will come when both groups realize that it’s not merely a single-party problem, or just a liberal or just a conservative problem. money Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:95 Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy. A few have, and others will continue to do so, but too many—both in and out of government—close their eyes to the issue of personal liberty and ignore the fact that endless borrowing to finance endless demands cannot be sustained. True prosperity can only come from a healthy economy and sound money. That can only be achieved in a free society. money Amendment 6 To de-Fund The United Nations — Part 1 15 July 2003    2003 Ron Paul 75:4 Mr. Chairman, last year we spent $3.25 billion on the U.N. as well as the other agencies at the U.N. I do not believe that is money worthwhile. It is not a good investment. I do not think the money is spent well. The amendment, as I said, defunds the United Nations as well as its agencies. We pay 21 percent of the budget, and on peacekeeping missions we pay over 27 percent. I think this is essentially wasted money. money Amendment 6 To de-Fund The United Nations — Part 1 15 July 2003    2003 Ron Paul 75:6 We went into Korea over 50 years ago under a U.N. resolution. We are still in Korea. We still have serious problems in Korea. There is still a confrontation that we have with the government of North Korea. I do not see where it is to our benefit, I do not see where it is a benefit to world peace to rely on the United Nations. Even though we rely on the United Nations for authority, when we want the United Nations to go along with our policy as our President asked earlier this year, it was refused. So in many ways we have a policy that does not make a whole lot of sense. We first rely on the United Nations, spend a lot of money, then they do not do our bidding. money Amendment 6 To de-Fund The United Nations — Part 1 15 July 2003    2003 Ron Paul 75:8 So this I think in many ways reflects the ineptness of the United Nations and its inability to pursue any policy that is in our interest. So it is for this reason, whether it is rejoining UNESCO and throwing more money down another on another useless program, we here are spending a lot of money giving up our sovereignty. Much of this money should be spent here at home. money Legislation To Prohibit The Federal Government From Imposing A “Carry Tax” 17 July 2003    2003 Ron Paul 78:1 Mr. PAUL. Mr. Speaker, I rise to protect American liberty, privacy and economic wellbeing by introducing legislation to prohibit the Federal Government from imposing a “carry tax.” A carry tax is a tax imposed on Americans that requires them to pay a tax whenever they make a bank deposit. The amount of the tax is based on how long their money has been in circulation. Hard as it may be to believe, some in the Federal Government have actually considered imposing this tax on American citizens. Since this bill punishes those who rely on cash for the majority of their economic transactions, and since lower income Americans tend to rely on cash for their economic transactions, this is a highly regressive tax plan. Furthermore, since the plan is designed to lower interest rates, it will negatively impact those who rely on investment income for a significant part of their income. Thus, the carry tax will lower the income of millions of senior citizens. money Legislation To Prohibit The Federal Government From Imposing A “Carry Tax” 17 July 2003    2003 Ron Paul 78:4 Unfortunately, rather than finally putting an end to the boom-and-bust cycle, most in Washington are preparing to resume the cycle by calling on the Federal Reserve and the Treasury to flood the economy with new money. If Congress is not going to stabilize the American economy by reforming our unstable monetary policy, it should at least refrain from using this government failure as an excuse to further restrict the American people’s liberty through an odious carry tax. I therefore hope my colleagues will join me in supporting this legislation. money The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:9 Just about every analyst and “expert” on Wall Street willing to mention any of this has been quick to explain that the increase in the price of gold is due to impending war with Iraq. But hard-money analysts are arguing that should the United States go to war it will be of very little consequence to the price of gold — a momentary blip — because gold is a commodity and its price a matter of supply and demand. money The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:24 Although the WGC’s Stanley stands by the data provided by the industry’s “serious” researchers, he insists he cannot say for certain that the numbers are accurate. “There is no requirement on any country to tell the IMF how much gold it owns,” says Stanley. “The requirement is to tell the IMF how much gold it has decided to place in its official reserves. Nobody knows whether that is the total of what they own or not. Obviously they can’t report more than what they own, but they can certainly report less if they chose to. That gold may have been lent out, but is nevertheless still owed to them. It’s a bit like any company reporting a cash position. It will report cash on hand and cash due — money owed by other people. I’m not saying this is ideal, but this is how it works.” money The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:25 John Embry, the manager of last year’s best-performing North American gold fund and manager of the Royal Precious Metals Fund for the Royal Bank of Canada, says he is putting his and his clients’ money on the “lunatic fringe” in this dispute: “I’ve examined all the evidence gathered by GATA and everyone else, and I think these guys are anything but lunatics. They’ve done their homework and have unearthed a lot of interesting stuff. The problem, though, is that the market is sufficiently opaque that there is really no way to know who is right and who is wrong.” money The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:27 Embry says, “I’ve made a fortune for my clients investing in gold and gold stocks because I have operated on the premise that the Veneroso/Howe reports are right — that gold was significantly undervalued in the daily quote and that it was going a lot higher. The circumstantial evidence, and I bet my clients’ money on it, was very much in favor of the guys who said a great deal more central-bank gold had entered the market and driven the price down far too low. GATA has had this story from day one. I think that they’re right and that officialdom doesn’t want this exposed. GATA is willing to have a public debate but the gold world won’t debate. I think there is a tacit admission of anyone who has an IQ above that of a grapefruit that Veneroso and Howe have a pretty good point. I’m an analyst who has looked at both sides of the issue and I bet my money on GATA. So far they’ve been right.” money The Foreign Aid Limitation Act 17 July 2003    2003 Ron Paul 80:3 Mr. Speaker, these provisions all passed Congress as “riders” on appropriations bills in the 1990s. However, they have not been included in the appropriations bills for the past several years. It is long past time for Congress to make these provisions permanent. Over the past several years there has been great controversy over the use of the Exchange Stabilization Fund. This fund was created in the 1930s to help stabilize the exchange value of the dollar, yet it has mutated into a “slush fund” used by the executive branch to funnel money to foreign governments and even foreign companies free of congressional oversight. money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:1 Mr. Speaker, I rise to introduce the Honest Money Act. The Honest Money Act repeals legal tender laws, a.k.a. forced tender laws, that compel American citizens to accept fiat (arbitrary) irredeemable paper-ticket or electronic money as their unit of account. money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:2 Absent legal tender laws, individuals acting through the markets, rather than government dictates, determine what is to be used as money. Historically, the free-market choice for money has been some combination of gold and silver, whenever they were available. As Dr. Edwin Vieira, the nation’s top expert on constitutional money, states: “A free market functions most efficiently and most fairly when the market determines the quality and the quantity of money that’s being used.” money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:3 While fiat money is widely accepted thanks to legal tender laws, it does not maintain its purchasing power. This works to the disadvantage of ordinary people who lose the purchasing power of their savings, pensions, annuities, and other promises of future payment. Most importantly, because of the subsidies our present monetary system provides to banks, which, as Federal Reserve Chairman Alan Greenspan has stated, “induces” the financial sector to increase leverage, the Federal Reserve can create additional money, in Mr. Greenspan’s words, “ without limit .” For this reason, absent legal tender laws, many citizens would refuse to accept fiat irredeemable paper-ticket or electronic money. money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:4 Legal tender laws disadvantage ordinary citizens by forcing them to use money that is vulnerable to vast depreciation. As Stephen T. Byington wrote in the September 1895 issue of the American Federationist : “No legal tender law is ever needed to make men take good money; its only use is to make them take bad money. Kick it out!” Similarly, the American Federation of Labor asked: “If money is good and would be preferred by the people, then why are legal tender laws necessary? And, if money is not good and would not be preferred by the people, then why in a democracy should they be forced to use it?” money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:5 The American Federation of Labor understood how the erosion of the value of money cheated working people. Further, honest money, i.e., specie, was one of the three issues that encouraged ordinary people to organize into unions when the union movement began in the U.S. circa 1830. money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:6 While harming ordinary citizens, legal tender laws help expand the scope of government beyond that authorized under the Constitution. However, the primary beneficiaries of legal tender laws are financial institutions, especially banks, which have been improperly granted the special privilege of creating fiat irredeemable electronic money out of thin air through a process commonly called fractional reserve lending. According to the Federal Reserve, since 1950 these private companies (banks) have created almost $8 trillion out of nothing. This has been enormously advantageous to them. money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:7 The advantages given banks and other financial institutions by our fiat monetary system, which is built on a foundation of legal tender laws, allow them to realize revenues that would not be available to these institutions in a free market. This represents legalized plunder of ordinary people. Legal tender laws thus enable the redistribution of wealth from those who produce it, mostly ordinary working people, to those who create and move around our irredeemable paper-ticket electronic money which is, in essence, just scrip. money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:8 The drafters of the Constitution were well aware of how a government armed with legal tender powers could ravage the people’s liberty and prosperity. That is why the Constitution does not grant legal tender power to the federal government, and the states are empowered to make legal tender only out of gold and silver (see Article 1, Section 10). Instead, Congress was given the power to regulate money against a standard, i.e., the dollar. When Alexander Hamilton wrote the Coinage Act of 1792, he simply made into law the market-definition of a dollar as equaling the silver content of the Spanish milled dollar (371.25 grains of silver), which is the dollar referred to in the Constitution. This historical definition of the dollar has never been changed, and cannot be changed any more than the term “inch,” as a measure of length, can be changed. It is a gross misrepresentation to equate our irredeemable paper-ticket or electronic money to “dollars.” money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:10 Tragically, the Supreme Court has failed to protect the American people from unconstitutional legal tender laws. Salmon Chase, who served as Secretary of the Treasury in President Lincoln’s administration, when he was Chief Justice of the Supreme Court, dissenting in Knox vs. Lee, summed up the argument against legal tender laws in twelve words: “The legal tender quality [of money] is only valuable for the purposes of dishonesty .” [emphasis added.] money Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:12 Repeal of legal tender laws will help restore constitutional government and protect the people’s right to a medium of exchange chosen by the market, thereby protecting their current purchasing power as well as their pensions, savings, and other promises of future payment. Because honest money serves the needs of ordinary people, instead of fiat irredeemable paper-ticket electronic money that improperly transfers the wealth of society to a small specially privileged financial elite along with other special interests, I urge my colleagues to cosponsor the Honest Money Act. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:4 From the Great Depression, to the stagflation of the seventies, to the burst of the dotcom bubble, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:6 Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of the special interests and their own appetite for big government. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:7 Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:8 In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:9 In conclusion, Mr. Speaker, I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money supply which erodes Americans’ standard of living, enlarges big government, and enriches well-connected elites, by cosponsoring my legislation to abolish the Federal Reserve. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:11 We know the interest rate paid on shortterm “risk free” deposits are based on the “real rate” plus an inflation premium. Historically, the real rate — the rental price of money — is the annual rate that borrowers and lenders agree on is typically 2–3 percent. So if you borrow $100 for a year, you would expect to pay the lender about $103 at the end of one year. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:13 Currently the annual inflation rate is about 2.5%. Thus, the risk free rate (the real rate-2% — plus the inflation premium) on savings deposits and money market funds should be about 4.5%. For Americans who seek the safety of savings accounts and money market funds for their hard-earned money, the current average yield of 0.7% on money market funds is well below the current risk free rate. In addition, savers who own short-term U.S. Treasury debt are receiving slightly more than 1.1 % annually. What’s going on? How can savers be receiving about 3.5% less than the risk free rate on their money market accounts and savings accounts? money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:14 The answer is simple: The Federal Reserve, the government created institution that was founded to “stabilize” the value of the dollar and “smooth” “out the business cycle”, which has the legal authority to create money out of thin air, is nothing more than the greatest manipulator of interest rates in the history of the world. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:15 The FED pumps money into the banking system if it wants to lower interest rates in order “to stimulate” the economy, and conversely will take money out of the banking system if it want to dampen borrowing and “cool off” an overheated economy. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:16 For the past two-and-a-half years the FED has been pumping money into the banking system, driving down short-term interest rates to its current levels, well below the risk free rate. In fact, the American people are being penalized heavily for saving. Real interest rates are negative. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:18 To put this in dollars and cents, there are $2.2 trillion in money market funds, with an average annual yield of 0.7%. The income from these funds is about $15 billion a year. If interest rates were 4.5%, savers would have nearly one hundred billion dollars in income or $85 billion more than they are currently receiving. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:19 Moreover, there is $4.61 trillion in the nation’s time and savings deposits, earning an average of about 1.0% or more depending on the financial institution your money is deposited in. (ING Direct pays 2.10% online on short-term deposits. The money can be transferred from your checking account to an online account and back. The minimum deposit to open an account is only $1. This is not a misprint.) money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:21 The bottom line: While the economic debate in Washington DC centers around President Bush’s tax cut proposal, which should pass intact because less money in the federal government means more freedom and prosperity for the American people, the Federal Reserve continues to perpetuate the greatest theft in world history. By having the power to manipulate interest rates, the FED in effect has not only a license to print money but also can redistribute income form savers to borrowers. money Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:22 The winners of the FED’s interest rate manipulations include the nations’ financial institutions, business borrowers and government. The losers are anyone who wants to save for the proverbial rainy day and accumulate money for a down payment on a house or other family need. money Legislation To Withdraw The United States From The Bretton Woods Agreement 17 July 2003    2003 Ron Paul 84:5 If not corrupt, most IMF borrowers are governments of countries with little economic productivity. Either way, most recipient nations end up with huge debts that they cannot service, which only adds to their poverty and instability. IMF money ultimately corrupts those countries it purports to help, by keeping afloat reckless political institutions that destroy their own economies. money Legislation To Withdraw The United States From The Bretton Woods Agreement 17 July 2003    2003 Ron Paul 84:7 In addition, the IMF violates basic constitutional and moral principles. The Federal Government has no constitutional authority to fund international institutions such as the IMF. Furthermore, Mr. Speaker, it is simply immoral to take money from hard-working Americans to support the economic schemes of politicallypowerful special interests and third-world dictators. money UNESCO 22 July 2003    2003 Ron Paul 86:12 So I warn my colleagues about rejoining UNESCO, believing very sincerely that it is not in our interest. It costs us a lot of money. It does not represent the goals and the culture and the beliefs of Americans. We did get out because it represented us badly, and here we are about to get back into UNESCO. I urge support for my amendment. money UNESCO — Part 2 22 July 2003    2003 Ron Paul 87:6 But they do other things as well. UNESCO, for instance, has been fully supportive of the United Nations Population Fund in its assistance to China’s brutal, coercive population control program. That is part of UNESCO. I do not believe the majority of the Members of Congress really believe that is a good expenditure. And you cannot control the money once it gets to UNESCO, believe me. We send the money, we send a larger amount of money than anybody else, we lose control of it and they do these things that I think are illegitimate as far as our Constitution is concerned. money H.R. 2427, the Pharmaceutical Market Access Act 24 July 2003    2003 Ron Paul 91:4 I also believe in freedom of choice. People have the right to make their own choices. We do not need to promote the nanny state. People are wise enough and cautious enough to make their own choices. Today we had two votes on free trade legislation. They were promoting international trade agreements, but done in the name of free trade. Why do we have free trade legislation, so-called? To lower tariffs, to lower prices to the consumer. But those very same people who worked so hard on free trade legislation are saying now we cannot allow the American people the option of buying drugs from other countries and saving money. money H.R. 2427, the Pharmaceutical Market Access Act 24 July 2003    2003 Ron Paul 91:10 Furthermore, if the supporters of the status quo were truly concerned about promoting health, instead of protecting the special privileges of powerful companies, they would be more concerned with reforming the current policies that endanger health by artificially raising the cost of prescription drugs. Oftentimes, lower income Americans will take less of a prescription medicine than necessary to save money. Some even forgo other necessities, including food, in order to afford their medications. By reducing the prices of pharmaceuticals, H.R. 2427 will help ensure that no child has to take less than the recommended dosage of a prescription medicine and that no American has to choose between medication and food. money Stop Subsidizing Foreign Shrimpers July 25, 2003    2003 Ron Paul 92:5 Many of the countries in question do not have free-market economies. Thus, the participation of these countries in United States-supported international financial regimes amounts to American shrimpers directly subsidizing their international competitors. In any case, providing aid to any of these countries indirectly benefits foreign shrimpers because of the fungibility of money. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:1 All great republics throughout history cherished sound money. This meant that the monetary unit was a commodity of honest weight and purity. When money was sound, civilizations were found to be more prosperous and freedom thrived. The less free a society becomes, the greater the likelihood its money is being debased and the economic well-being of its citizens diminished. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:2 Alan Greenspan, years before he became Federal Reserve Board Chairman in charge of flagrantly debasing the U.S. dollar, wrote about this connection between sound money, prosperity, and freedom. In his article “Gold and Economic Freedom” ( The Objectivist, July 1966), Greenspan starts by saying: “An almost hysterical antagonism toward the gold standard is an issue that unites statists of all persuasions. They seem to sense…that gold and economic freedom are inseparable.” Further he states that: “Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth.” Astoundingly, Mr. Greenspan’s analysis of the 1929 market crash, and how the Fed precipitated the crisis, directly parallels current conditions we are experiencing under his management of the Fed. Greenspan explains: “The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom.” And, “…By 1929 the speculative imbalances had become overwhelming and unmanageable by the Fed.” Greenspan concluded his article by stating: “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.” He explains that the “shabby secret” of the proponents of big government and paper money is that deficit spending is simply nothing more than a “scheme for the hidden confiscation of wealth.” Yet here we are today with a purely fiat monetary system, managed almost exclusively by Alan Greenspan, who once so correctly denounced the Fed’s role in the Depression while recognizing the need for sound money. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:3 The Founders of this country, and a large majority of the American people up until the 1930s, disdained paper money, respected commodity money, and disapproved of a central bank’s monopoly control of money creation and interest rates. Ironically, it was the abuse of the gold standard, the Fed’s credit-creating habits of the 1920s, and its subsequent mischief in the 1930s, that not only gave us the Great Depression, but also prolonged it. Yet sound money was blamed for all the suffering. That’s why people hardly objected when Roosevelt and his statist friends confiscated gold and radically debased the currency, ushering in the age of worldwide fiat currencies with which the international economy struggles today. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:4 If honest money and freedom are inseparable, as Mr. Greenspan argued, and paper money leads to tyranny, one must wonder why it’s so popular with economists, the business community, bankers, and our government officials. The simplest explanation is that it’s a human trait to always seek the comforts of wealth with the least amount of effort. This desire is quite positive when it inspires hard work and innovation in a capitalist society. Productivity is improved and the standard of living goes up for everyone. This process has permitted the poorest in today’s capitalist countries to enjoy luxuries never available to the royalty of old. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:5 But this human trait of seeking wealth and comfort with the least amount of effort is often abused. It leads some to believe that by certain monetary manipulations, wealth can be made more available to everyone. Those who believe in fiat money often believe wealth can be increased without a commensurate amount of hard work and innovation. They also come to believe that savings and market control of interest rates are not only unnecessary, but actually hinder a productive growing economy. Concern for liberty is replaced by the illusion that material benefits can be more easily obtained with fiat money than through hard work and ingenuity. The perceived benefits soon become of greater concern for society than the preservation of liberty. This does not mean proponents of fiat money embark on a crusade to promote tyranny, though that is what it leads to, but rather they hope they have found the philosopher’s stone and a modern alternative to the challenge of turning lead into gold. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:6 Our Founders thoroughly understood this issue, and warned us against the temptation to seek wealth and fortune without the work and savings that real prosperity requires. James Madison warned of “The pestilent effects of paper money,” as the Founders had vivid memories of the destructiveness of the Continental dollar. George Mason of Virginia said that he had a “Mortal hatred to paper money.” Constitutional Convention delegate Oliver Ellsworth from Connecticut thought the convention “A favorable moment to shut and bar the door against paper money.” This view of the evils of paper money was shared by almost all the delegates to the convention, and was the reason the Constitution limited congressional authority to deal with the issue and mandated that only gold and silver could be legal tender. Paper money was prohibited and no central bank was authorized. Over and above the economic reasons for honest money, however, Madison argued the moral case for such. Paper money, he explained, destroyed “The necessary confidence between man and man, on necessary confidence in public councils, on the industry and morals of people and on the character of republican government.” money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:7 The Founders were well aware of the biblical admonitions against dishonest weights and measures, debased silver, and watered-down wine. The issue of sound money throughout history has been as much a moral issue as an economic or political issue. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:8 Even with this history and great concern expressed by the Founders, the barriers to paper money have been torn asunder. The Constitution has not been changed, but is no longer applied to the issue of money. It was once explained to me, during the debate over going to war in Iraq, that a declaration of war was not needed because to ask for such a declaration was “frivolous” and that the portion of the Constitution dealing with congressional war power was “anachronistic.” So too, it seems that the power over money given to Congress alone and limited to coinage and honest weights, is now also “anachronistic.” money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:9 If indeed our generation can make the case for paper money, issued by an unauthorized central bank, it behooves us to at least have enough respect for the Constitution to amend it in a proper fashion. Ignoring the Constitution in order to perform a pernicious act is detrimental in two ways. First, debasing the currency as a deliberate policy is economically destructive beyond measure. Second, doing it without consideration for the rule of law undermines the entire fabric of our Constitutional republic. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:10 Though the need for sound money is currently not a pressing issue for Congress, it’s something that cannot be ignored because serious economic problems resulting from our paper money system are being forced upon us. As a matter of fact, we deal with the consequences on a daily basis, yet fail to see the connection between our economic problems and the mischief orchestrated by the Federal Reserve. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:11 All the great religions teach honesty in money, and the economic shortcomings of paper money were well known when the Constitution was written, so we must try to understand why an entire generation of Americans have come to accept paper money without hesitation, without question. Most Americans are oblivious to the entire issue of the nature and importance of money. Many in authority, however, have either been misled by false notions or see that the power to create money is indeed a power they enjoy, as they promote their agenda of welfarism at home and empire abroad. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:12 Money is a moral, economic, and political issue. Since the monetary unit measures every economic transaction, from wages to prices, taxes, and interest rates, it is vitally important that its value is honestly established in the marketplace without bankers, government, politicians, or the Federal Reserve manipulating its value to serve special interests. Money As a Moral Issue money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:13 The moral issue regarding money should be the easiest to understand, but almost no one in Washington thinks of money in these terms. Although there is a growing and deserved distrust in government per se, trust in money and the Federal Reserve’s ability to manage it remains strong. No one would welcome a counterfeiter to town, yet this same authority is blindly given to our central bank without any serious oversight by the Congress. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:15 A fiat monetary system allows power and influence to fall into the hands of those who control the creation of new money, and to those who get to use the money or credit early in its circulation. The insidious and eventual cost falls on unidentified victims who are usually oblivious to the cause of their plight. This system of legalized plunder (though not constitutional) allows one group to benefit at the expense of another. An actual transfer of wealth goes from the poor and the middle class to those in privileged financial positions. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:16 In many societies the middle class has actually been wiped out by monetary inflation, which always accompanies fiat money. The high cost of living and loss of jobs hits one segment of society, while in the early stages of inflation, the business class actually benefits from the easy credit. An astute stock investor or home builder can make millions in the boom phase of the business cycle, while the poor and those dependent on fixed incomes can’t keep up with the rising cost of living. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:17 Fiat money is also immoral because it allows government to finance special interest legislation that otherwise would have to be paid for by direct taxation or by productive enterprise. This transfer of wealth occurs without directly taking the money out of someone’s pocket. Every dollar created dilutes the value of existing dollars in circulation. Those individuals who worked hard, paid their taxes, and saved some money for a rainy day are hit the hardest, with their dollars being depreciated in value while earning interest that is kept artificially low by the Federal Reserve easy-credit policy. The easy credit helps investors and consumers who have no qualms about going into debt and even declaring bankruptcy. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:18 If one sees the welfare state and foreign militarism as improper and immoral, one understands how the license to print money permits these policies to go forward far more easily than if they had to be paid for immediately by direct taxation. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:19 Printing money, which is literally inflation, is nothing more than a sinister and evil form of hidden taxation. It’s unfair and deceptive, and accordingly strongly opposed by the authors of the Constitution. That is why there is no authority for Congress, the Federal Reserve, or the executive branch to operate the current system of money we have today. Money As a Political Issue money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:20 Although the money issue today is of little political interest to the parties and politicians, it should not be ignored. Policy makers must contend with the consequences of the business cycle, which result from the fiat monetary system under which we operate. They may not understand the connection now, but eventually they must. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:21 In the past, money and gold have been dominant issues in several major political campaigns. We find that when the people have had a voice in the matter, they inevitably chose gold over paper. To the common man, it just makes sense. As a matter of fact, a large number of Americans, perhaps a majority, still believe our dollar is backed by huge hoards of gold in Fort Knox. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:24 In the 1870s, the people once again spoke out clearly against the greenback inflation of Lincoln. Notoriously, governments go to paper money while rejecting gold to promote unpopular and unaffordable wars. The return to gold in 1879 went smoothly and was welcomed by the people, putting behind them the disastrous Civil War inflationary period. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:26 Again, in the presidential race of 1896, William McKinley argued the case for gold. In spite of the great orations by William Jennings Bryant, who supported monetary inflation and made a mocking “Cross of Gold” speech, the people rallied behind McKinley’s bland but correct arguments for sound money. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:28 A central bank and fiat money enable government to maintain an easy war policy that under strict monetary rules would not be achievable. In other words, countries with sound monetary policies would rarely go to war because they could not afford to, especially if they were not attacked. The people could not be taxed enough to support wars without destroying the economy. But by printing money, the cost can be delayed and hidden, sometimes for years if not decades. To be truly opposed to preemptive and unnecessary wars one must advocate sound money to prevent the promoters of war from financing their imperialism. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:30 The money issue should indeed be a gigantic political issue. Fiat money hurts the economy, finances wars, and allows for excessive welfarism. When these connections are realized and understood, it will once again become a major political issue, since paper money never lasts. Ultimately politicians will not have a choice of whether to address or take a position on the money issue. The people and circumstances will demand it. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:31 We do hear some talk about monetary policy and criticism directed toward the Federal Reserve, but it falls far short of what I’m talking about. Big-spending welfarists constantly complain about Fed policy, usually demanding lower interest rates even when rates are at historic lows. Big-government conservatives promoting grand worldwide military operations, while arguing that “deficits don’t matter” as long as marginal tax rates are lowered, also constantly criticize the Fed for high interest rates and lack of liquidity. Coming from both the left and the right, these demands would not occur if money could not be created out of thin air at will. Both sides are asking for the same thing from the Fed for different reasons. They want the printing presses to run faster and create more credit, so that the economy will be healed like magic- or so they believe. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:32 This is not the kind of interest in the Fed that we need. I’m anticipating that we should and one day will be forced to deal with the definition of the dollar and what money should consist of. The current superficial discussion about money merely shows a desire to tinker with the current system in hopes of improving the deteriorating economy. There will be a point, though, when the tinkering will no longer be of any benefit and even the best advice will be of no value. We have just gone through two-and-a-half years of tinkering with 13 rate cuts, and recovery has not yet been achieved. It’s just possible that we’re much closer than anyone realizes to that day when it will become absolutely necessary to deal with the monetary issue- both philosophically and strategically- and forget about the band-aid approach to the current system. Money as an Economic Issue money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:33 For a time, the economic consequences of paper money may seem benign and even helpful, but are always disruptive to economic growth and prosperity. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:34 Economic planners of the Keynesian-socialist type have always relished control over money creation in their efforts to regulate and plan the economy. They have no qualms with using this power to pursue their egalitarian dreams of wealth redistribution. That force and fraud are used to make the economic system supposedly fairer is of little concern to them. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:35 There are also many conservatives who do not endorse central economic planning as those on the left do, but nevertheless concede this authority to the Federal Reserve to manipulate the economy through monetary policy. Only a small group of constitutionalists, libertarians, and Austrian free-market economists reject the notion that central planning, through interest-rate and money-supply manipulation, is a productive endeavor. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:36 Many sincere politicians, bureaucrats, and bankers endorse the current system, not out of malice or greed, but because it’s the only system they have know. The principles of sound money and free market banking are not taught in our universities. The overwhelming consensus in Washington, as well as around the world, is that commodity money without a central bank is no longer practical or necessary. Be assured, though, that certain individuals who greatly benefit from a paper money system know exactly why the restraints that a commodities standard would have are unacceptable. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:37 Though the economic consequences of paper money in the early stage affect lower-income and middle-class citizens, history shows that when the destruction of monetary value becomes rampant, nearly everyone suffers and the economic and political structure becomes unstable. There’s good reason for all of us to be concerned about our monetary system and the future of the dollar. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:40 But where’s the hitch? This process, which seems to be a creative way of paying off debt, eventually undermines the capitalist structure of the economy, thus making it difficult to produce wealth, and that’s when the whole process comes to an end. This system causes many economic problems, but most of them stem from the Fed’s interference with the market rate of interest that it achieves through credit creation and printing money. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:42 Though generally accepted by most modern economists and politicians, there is little hesitancy in accepting the omnipotent wisdom of the Federal Reserve to know the “price” of money – the interest rate – and its proper supply. For decades, and especially during the 1990s – when Chairman Greenspan was held in such high esteem, and no one dared question his judgment or the wisdom of the system- this process was allowed to run unimpeded by political or market restraints. Just as we must eventually pay for our perpetual deficits, continuous manipulation of interest and credit will also extract a payment. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:43 Artificially low interest rates deceive investors into believing that rates are low because savings are high and represent funds not spent on consumption. When the Fed creates bank deposits out of thin air making loans available at below-market rates, mal-investment and overcapacity results, setting the stage for the next recession or depression. The easy credit policy is welcomed by many: stock-market investors, home builders, home buyers, congressional spendthrifts, bankers, and many other consumers who enjoy borrowing at low rates and not worrying about repayment. However, perpetual good times cannot come from a printing press or easy credit created by a Federal Reserve computer. The piper will demand payment, and the downturn in the business cycle will see to it. The downturn is locked into place by the artificial boom that everyone enjoys, despite the dreams that we have ushered in a “new economic era.” Let there be no doubt: the business cycle, the stagflation, the recessions, the depressions, and the inflations are not a result of capitalism and sound money, but rather are a direct result of paper money and a central bank that is incapable of managing it. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:44 Our current monetary system makes it tempting for all parties, individuals, corporations, and government to go into debt. It encourages consumption over investment and production. Incentives to save are diminished by the Fed’s making new credit available to everyone and keeping interest rates on saving so low that few find it advisable to save for a rainy day. This is made worse by taxing interest earned on savings. It plays havoc with those who do save and want to live off their interest. The artificial rates may be 4, 5, or even 6% below the market rate, and the savers- many who are elderly and on fixed incomes- suffer unfairly at the hands of Alan Greenspan, who believes that resorting to money creation will solve our problems and give us perpetual prosperity. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:46 The two conditions that result from fiat money that are more likely to concern the people are inflation of prices and unemployment. Unfortunately, few realize these problems are directly related to our monetary system. Instead of demanding reforms, the chorus from both the right and left is for the Fed to do more of the same- only faster. If our problem stems from easy credit and interest-rate manipulation by the Fed, demanding more will not do much to help. Sadly, it will only make our problems worse. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:47 Ironically, the more successful the money managers are at restoring growth or prolonging the boom with their monetary machinations, the greater are the distortions and imbalances in the economy. This means that when corrections are eventually forced upon us, they are much more painful and more people suffer with the correction lasting longer. Today’s Conditions money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:48 Today’s economic conditions reflect a fiat monetary system held together by many tricks and luck over the past 30 years. The world has been awash in paper money since removal of the last vestige of the gold standard by Richard Nixon when he buried the Bretton Woods agreement- the gold exchange standard- on August 15, 1971. Since then we’ve been on a worldwide paper dollar standard. Quite possibly we are seeing the beginning of the end of that system. If so, tough times are ahead for the United States and the world economy. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:50 Although dollar creation is ultimately the key to its value, many other factors play a part in its perceived value, such as: the strength of our economy, our political stability, our military power, the benefit of the dollar being the key reserve currency of the world, and the relative weakness of other nation’s economies and their currencies. For these reasons, the dollar has enjoyed a special place in the world economy. Increases in productivity have also helped to bestow undeserved trust in our economy with consumer prices, to some degree, being held in check and fooling the people, at the urging of the Fed, that “inflation” is not a problem. Trust is an important factor in how the dollar is perceived. Sound money encourages trust, but trust can come from these other sources as well. But when this trust is lost, which always occurs with paper money, the delayed adjustments can hit with a vengeance. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:54 A debt of this sort always ends by the currency of the debtor nation decreasing in value. And that’s what has started to happen with the dollar, although it still has a long way to go. Our free lunch cannot last. Printing money, buying foreign products, and selling foreign holders of dollars our debt ends when the foreign holders of this debt become concerned with the dollar’s future value. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:56 In the short run, the current system gives us a free ride, our paper buys cheap goods from overseas, and foreigners risk all by financing our extravagance. But in the long run, we will surely pay for living beyond our means. Debt will be paid for one way or another. An inflated currency always comes back to haunt those who enjoyed the “benefits” of inflation. Although this process is extremely dangerous, many economists and politicians do not see it as a currency problem and are only too willing to find a villain to attack. Surprisingly the villain is often the foreigner who foolishly takes our paper for useful goods and accommodates us by loaning the proceeds back to us. It’s true that the system encourages exportation of jobs as we buy more and more foreign goods. But nobody understands the Fed role in this, so the cries go out to punish the competition with tariffs. Protectionism is a predictable consequence of paper- money inflation, just as is the impoverishment of an entire middle class. It should surprise no one that even in the boom phase of the 1990s, there were still many people who became poorer. Yet all we hear are calls for more government mischief to correct the problems with tariffs, increased welfare for the poor, increased unemployment benefits, deficit spending, and special interest tax reduction, none of which can solve the problems ingrained in a system that operates with paper money and a central bank. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:59 Big business and banking deserve our harsh criticism, but not because they are big or because they make a lot of money. Our criticism should come because of the special benefits they receive from a monetary system designed to assist the business class at the expense of the working class. Labor leader Samuel Gompers understood this and feared paper money and a central bank while arguing the case for gold. Since the monetary system is used to finance deficits that come from war expenditures, the military industrial complex is a strong supporter of the current monetary system. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:61 Economic intervention, financed by inflation, is high-stakes government. It provides the incentive for the big money to “invest” in gaining government control. The big money comes from those who have it- corporations and banking interests. That’s why literally billions of dollars are spent on elections and lobbying. The only way to restore equity is to change the primary function of government from economic planning and militarism to protecting liberty. Without money, the poor and middle class are disenfranchised since access for the most part requires money. Obviously, this is not a partisan issue since both major parties are controlled by wealthy special interests. Only the rhetoric is different. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:63 Paper money encourages speculation, excessive debt, and misdirected investments. The market, however, always moves in the direction of eliminating bad investments, liquidating debt, and reducing speculative excesses. What we have seen, especially since the stock market peak of early 2000, is a knock-down, drag-out battle between the Fed’s effort to avoid a recession, limit the recession, and stimulate growth with its only tool, money creation, while the market demands the elimination of bad investments and excess debt. The Fed was also motivated to save the stock market from collapsing, which in some ways they have been able to do. The market, in contrast, will insist on liquidation of unsustainable debt, removal of investment mistakes made over several decades, and a dramatic revaluation of the stock market. In this go-around, the Fed has pulled out all the stops and is more determined than ever, yet the market is saying that new and healthy growth cannot occur until a major cleansing of the system occurs. Does anyone think that tariffs and interest rates of 1% will encourage the rebuilding of our steel and textile industries anytime soon? Obviously, something more is needed. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:64 The world central bankers are concerned with the lack of response to low interest rates and they have joined in a concerted effort to rescue the world economy through a policy of protecting the dollar’s role in the world economy, denying that inflation exists, and justifying unlimited expansion of the dollar money supply. To maintain confidence in the dollar, gold prices must be held in check. In the 1960s our government didn’t want a vote of no confidence in the dollar, and for a couple of decades, the price of gold was artificially held at $35 per ounce. That, of course, did not last. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:67 Monetary policy today is designed to demonetize gold and guarantee for the first time that paper can serve as an adequate substitute in the hands of wise central bankers. Trust, then, has to be transferred from gold to the politicians and bureaucrats who are in charge of our monetary system. This fails to recognize the obvious reason that market participants throughout history have always preferred to deal with real assets, real money, rather than government paper. This contest between paper and honest money is of much greater significance than many realize. We should know the outcome of this struggle within the next decade. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:68 Alan Greenspan, although once a strong advocate for the gold standard, now believes he knows what the outcome of this battle will be. Is it just wishful thinking on his part? In an answer to a question I asked before the Financial Services Committee in February 2003, Chairman Greenspan made an effort to convince me that paper money now works as well as gold: “I have been quite surprised, and I must say pleased, by the fact that central banks have been able to effectively simulate many of the characteristics of the gold standard by constraining the degree of finance in a manner which effectively brought down the general price levels.” Earlier, in December 2002, Mr. Greenspan spoke before the Economic Club of New York and addressed the same subject: “The record of the past 20 years appears to underscore the observation that, although pressures for excess issuance of fiat money are chronic, a prudent monetary policy maintained over a protracted period of time can contain the forces of inflation.” There are several problems with this optimistic assessment. First, efficient central bankers will never replace the invisible hand of a commodity monetary standard. Second, using government price indexes to measure the success of a managed fiat currency should not be reassuring. These indexes can be arbitrarily altered to imply a successful monetary policy. Also, price increases of consumer goods are not a litmus test for measuring the harm done by the money managers at the Fed. The development of overcapacity, excessive debt, and speculation still occur, even when prices happen to remain reasonably stable due to increases in productivity and technology. Chairman Greenspan makes his argument because he hopes he’s right that sound money is no longer necessary, and also because it’s an excuse to keep the inflation of the money supply going for as long as possible, hoping a miracle will restore sound growth to the economy. But that’s only a dream. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:71 The set of circumstances we face today are unique and quite different from all the other recessions the Federal Reserve has had to deal with. Generally, interest rates are raised to slow the economy and dampen price inflation. At the bottom of the cycle interest rates are lowered to stimulate the economy. But this time around, the recession came in spite of huge and significant interest rate reductions by the Fed. This aggressive policy did not prevent the recession as was hoped; so far it has not produced the desired recovery. Now we’re at the bottom of the cycle and interest rates not only can’t be lowered, they are rising. This is a unique and dangerous combination of events. This set of circumstances can only occur with fiat money and indicates that further manipulation of the money supply and interest rates by the Fed will have little if any effect. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:72 The odds aren’t very good that the Fed will adopt a policy of not inflating the money supply because of some very painful consequences that would result. Also there would be a need to remove the pressure on the Fed to accommodate the big spenders in Congress. Since there are essentially only two groups that have any influence on spending levels, big-government liberals and big- government conservatives, that’s not about to happen. Poverty is going to worsen due to our monetary and fiscal policies, so spending on the war on poverty will accelerate. Our obsession with policing the world, nation building, and pre-emptive war are not likely to soon go away, since both Republican and Democratic leaders endorse them. Instead, the cost of defending the American empire is going to accelerate. A country that is getting poorer cannot pay these bills with higher taxation nor can they find enough excess funds for the people to loan to the government. The only recourse is for the Federal Reserve to accommodate and monetize the federal debt, and that, of course, is inflation. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:75 We do have some options to minimize the suffering. If we decided to, we could permit some alternatives to the current system of money and banking we have today. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:80 Repeal of all legal tender laws is a must. Sound money never requires the force of legal tender laws. Only paper money requires such laws. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:81 These proposals, even if put in place tomorrow, would not solve all the problems we face. It would though, legalize freedom of choice in money, and many who worry about having their savings wiped out by a depreciating dollar would at least have another option. This option would ease some of the difficulties that are surely to come from runaway deficits in a weakening economy with skyrocketing inflation. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:83 It’s no coincidence that during the period following the establishment of the Federal Reserve and the elimination of the gold standard, a huge growth in the size of the federal government and its debt occurred. Believers in big government, whether on the left or right, vociferously reject the constraints on government growth that gold demands. Liberty is virtually impossible to protect when the people allow their government to print money at will. Inevitably, the left will demand more economic interventionism, the right more militarism and empire building. Both sides, either inadvertently or deliberately, will foster corporatism. Those whose greatest interest is in liberty and self-reliance are lost in the shuffle. Though left and right have different goals and serve different special-interest groups, they are only too willing to compromise and support each other’s programs. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:84 If unchecked, the economic and political chaos that comes from currency destruction inevitably leads to tyranny- a consequence of which the Founders were well aware. For 90 years we have lived with a central bank, with the last 32 years absent of any restraint on money creation. The longer the process lasts, the faster the printing presses have to run in an effort to maintain stability. They are currently running at record rate. It was predictable and is understandable that our national debt is now expanding at a record rate. money Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:86 Real economic growth won’t return until confidence in the entire system is restored. And that is impossible as long as it depends on the politicians not spending too much money and the Federal Reserve limiting its propensity to inflate our way to prosperity. Only sound money and limited government can do that. money Introduction Of The Steel Financing Fairness Act 10 September 2003    2003 Ron Paul 97:5 Meanwhile, OPIC has provided over $3 billion of the taxpayers’ money to seven of the top ten leading steel exporters. Thus, the American taxpayer has provided at least $253 billion worth of support to the countries that are the leading competitors of the domestic steel industry. This does not count the funds provided these countries by the IMF. Since money is fungible, the practical effect of providing aid to countries which practice industrial policy is to free up resources these governments can use to further subsidize their steel industries. Thus, taxpayer dollars sent to foreign governments and industries can benefit foreign steel manufacturers even if American taxpayer money is not sent to directly benefit those industries. money We Cannot Afford Another $87 Billion in Iraq September 16, 2003    2003 Ron Paul 98:9 Some believe that by not raising taxes to pay for the war we can fund it on the cheap. We cannot. When deficits skyrocket the federal government prints more money, the people are effectively taxed by losing value in their savings and in their paychecks. The inflation tax is a sinister and evil way to pay for unpopular wars. It has been done that way for centuries. money We Cannot Afford Another $87 Billion in Iraq September 16, 2003    2003 Ron Paul 98:14 Second, we have no constitutional authority to police the world or involve ourselves in nation building, in making the world safe for our style of democracy. Our founders advised against it and the early presidents followed that advice. If we believe strongly in our ideals, the best way to spread them is to set a good example so that others will voluntarily emulate us. Force will not work. Besides, we do not have the money. The $87 billion appropriations request should be rejected. money Are Vouchers the Solution for Our Failing Public Schools? September 30, 2003    2003 Ron Paul 103:3 It may be argued that vouchers are at least a more efficient welfare program than continuing to throw taxpayer money at public schools. However, the likely effect of a voucher program is to increase spending on new programs for private schools while continuing to increase spending on programs for public schools. For example, Mr. Speaker, during the debate on the DC voucher program, voucher proponents vehemently denied that any public schools would lose any Federal funding. Some even promised to support increased Federal spending on DC’s public and charter schools. Instead of reducing funding for failed programs, Congress simply added another 10 million dollars (from taxes or debt) to the bill to pay for the vouchers without making any offsetting cuts. In a true free market, failing competitors are not guaranteed a continued revenue stream. money Are Vouchers the Solution for Our Failing Public Schools? September 30, 2003    2003 Ron Paul 103:11 Instead of expanding the Federal control over education in the name of parental control, Congress should embrace a true agenda of parental control by passing generous education tax credits. Education tax credits empower parents to spend their own money on their children’s education. Since the parents control the education dollar, the parents control their children’s education. In order to provide parents with control of education, I have introduced the Family Education Freedom Act (H.R. 612) that provides all parents with a tax credit of up to $3,000. The credit is available to parents who choose to send their children to public, private, or home school. Education tax credits are particularly valuable to lower income parents. money American Dream Downpayment Act 1 October 2003    2003 Ron Paul 104:1 Mr. PAUL. Mr. Speaker, the American dream, as conceived by the Nation’s Founders, has little in common with H.R. 1276, the so-called American Dream Downpayment Act. In the original version of the American dream, individuals earned the money to purchase a house through their own efforts, often times sacrificing other goods to save for their first downpayment. According to the sponsors of H.R. 1276, that old American dream has been replaced by a new dream of having the Federal Government force your fellow citizens to hand you the money for a downpayment. money American Dream Downpayment Act 1 October 2003    2003 Ron Paul 104:5 Finally, while I know this argument is unlikely to have much effect on my colleagues, I must point out that Congress has no constitutional authority to take money from one American and redistribute it to another. Legislation such as H.R. 1276, which takes tax money from some Americans to give to others whom Congress has determined are worthy, is thus blatantly unconstitutional. money Commending The National Endowment For Democracy For Contributions To democratic Development Around The World On The 20th Anniversary Of Its Establishment 7 October 2003    2003 Ron Paul 105:1 Mr. PAUL. Madam Speaker, I rise to express my grave concerns over H. Con. Res 274. The misnamed National Endowment for Democracy (NED) is nothing more than a costly program that takes U.S. taxpayer funds to promote favored politicians and political parties abroad. Madam Speaker, what the NED does in foreign countries, through its recipient organizations the National Democratic Institute (NDI) and the International Republican Institute (IRI), would be rightly illegal in the United States. The NED injects “soft money” into the domestic elections of foreign countries in favor of one party or the other. Imagine what a couple of hundred thousand dollars will do to assist a politician or political party in a relatively poor country abroad. It is particularly Orwellian to call U.S. manipulation of foreign elections “promoting democracy.” How would Americans feel if the Chinese arrived with millions of dollars to support certain candidates deemed friendly to China? Would this be viewed as a democratic development? money Commending The National Endowment For Democracy For Contributions To democratic Development Around The World On The 20th Anniversary Of Its Establishment 7 October 2003    2003 Ron Paul 105:9 Both (IRI and NDI) are largely funded by the National Endowment for Democracy (NED) . . . which, in turn, receive money from the American taxpayer. Both have favoured the return to power of former highranking Communists which has also meant co-opting foot-soldiers from the new left who have extremely liberal ideas . . . money Statement Opposing Trade Sanctions against Syria October 15, 2003    2003 Ron Paul 106:1 Mr. Speaker, I would like to express my strong opposition to this ill-conceived and ill-timed legislation. This bill will impose what is effectively a trade embargo against Syria and will force the severance of diplomatic and business ties between the United States and Syria. It will also significantly impede travel between the United States and Syria. Worse yet, the bill also provides essentially an open-ended authorization for the president to send US taxpayer money to Syria should that country do what we are demanding in this bill. money Supplemental Appropriation 16 October 2003    2003 Ron Paul 108:3 But I understand this is called a supplemental. It is interesting that it is a supplemental because we have not passed a budget; so I have to suggest maybe we ought to call this a preemptive budget rather than a supplemental. But it is the largest, and to have it before the regular budget is pretty astounding that we are going to spend this type of money. money Borrowing Billions to Fund a Failed Policy in Iraq October 17, 2003    2003 Ron Paul 110:1 Mr. Speaker: I rise in opposition to this request for nearly $87 billion to continue the occupation and rebuilding of Iraq and Afghanistan. This is money we do not have being shipped away on a foreign welfare program. The burden on our already weakened economy could well be crippling. money Borrowing Billions to Fund a Failed Policy in Iraq October 17, 2003    2003 Ron Paul 110:4 Mr. Speaker this reconstruction of Iraq – that we are making but a down-payment on today – is at its core just another foreign policy boondoggle. The $20 billion plan to “rebuild” Iraq tilts heavily toward creating a statist economy and is filled with very liberal social-engineering programs. Much of the money in this reconstruction plan will be wasted - as foreign aid most often is. Much will be wasted as corporate welfare to politically connected corporations; much will be thrown away at all the various “non-government organizations” that aim to teach the Iraqis everything from the latest American political correctness to the “right” way to vote. The bill includes $900 million to import petroleum products into Iraq (a country with the second largest oil reserves in the world); $793 million for healthcare in Iraq when we’re in the midst of our own crisis and about to raise Medicare premiums of our seniors; $10 million for "women’s leadership programs" (more social engineering); $200 million in loan guarantees to Pakistan (a military dictatorship that likely is the home of Osama bin Laden); $245 million for the "U.S. share" of U.N. peacekeeping in Liberia and Sudan; $95 million for education in Afghanistan; $600 million for repair and modernization of roads and bridges in Iraq (while our own infrastructure crumbles). money Borrowing Billions to Fund a Failed Policy in Iraq October 17, 2003    2003 Ron Paul 110:6 This request - which was not the first and will not be the last - demonstrates in the most concrete terms that there is a real and concrete cost of our policy of interventionism. The American taxpayer paid to bomb Baghdad and now will pay to rebuild Iraq – its schools, hospitals, prisons, roads, and more. Many Americans cannot afford to send their own children to college, but with the money in this bill they will be sending Iraqi kids to college. Is this really what the American people want? money Borrowing Billions to Fund a Failed Policy in Iraq October 17, 2003    2003 Ron Paul 110:12 Mr. Speaker, throwing billions of dollars after a failed policy will not produce favorable results. We are heading full-speed toward bankruptcy, yet we continue to spend like there is no tomorrow. There will be a tomorrow, however. The money we are spending today is real. The bill will be paid, whether through raising taxes or printing more money. Either way, the American people will become poorer in pursuit of a policy that cannot and will not work. We cannot re-make the world in our own image. The stated aim was to remove Saddam Hussein. That mission is accomplished. The best policy now for Iraq is to declare victory and bring our troops home. We should let the people of Iraq rebuild their own country. I urge my colleagues to vote against this supplemental request. money Misguided Policy Of Nation Building In Iraq 17 October 2003    2003 Ron Paul 111:1 Mr. PAUL. Madam Speaker, I want to spend a little bit of time this evening talking about the bill that we spent 3 days debating. That is the $87 billion appropriations bill that we just voted on and passed, not so much that I want to rehash what we did during these 3 days as much as to make a point that we ought to be debating something other than the technicality of how to spend $87 billion of the taxpayers’ money. And that has to do with overall policy. money Misguided Policy Of Nation Building In Iraq 17 October 2003    2003 Ron Paul 111:5 But the debate, instead of ending, I think is really just starting. Because the vote today, although it was overwhelmingly in support of the $87 billion, I noticed a lot more people in the Congress voted against the appropriations reflecting probably the views of many taxpayers in this country who are very reluctant to spend this kind of money overseas, especially if they perceive what we are doing is not being very productive. And not only do we have to deal with whether or not what we are doing is productive or not, but the final analysis will be, can we afford it? money Misguided Policy Of Nation Building In Iraq 17 October 2003    2003 Ron Paul 111:17 This is one of the reasons why I think the debate just in these last couple of days on whether or not the money would be a loan or a grant really did not have a whole lot of merit. I happen to have supported all the amendments that said it should be a loan, not a grant, but it does not make a bit of difference because the likelihood of a country like Iraq, that does not have a government, being able to make a promise and then pay us back, we generally never get paid back anything. So that to me was a red-herring argument that was sort of one of the tactical or accounting arguments that occupied a tremendous amount of time here by avoiding the bigger issue on whether or not it is a proper role for the United States to be telling the rest of the world how to live and it is our obligation to nation-build and our obligation to redraw the lines of the Middle East. That is the bigger question, and this is the debate I hope to hear that we have on this floor some day. money Misguided Policy Of Nation Building In Iraq 17 October 2003    2003 Ron Paul 111:36 One thing that we did not talk about in the debate of the $87 billion was a $600 million appropriation. It is not written in there explicitly, but there is a $9.3 billion authority to transfer funds over into the Pentagon and more or less having a slush fund to spend just about any way they want without any significant congressional oversight, but the $600 million has been asked for and will be achieved through this appropriation to continue the search for weapons of mass destruction. They have spent $300 million for six months, with 1,200 individuals combing the entire country of Iraq, and nothing has been found. So typically, American style, modern America, that is, double the amount of money, double the number of people and keep searching, because something will be found. money Misguided Policy Of Nation Building In Iraq 17 October 2003    2003 Ron Paul 111:58 We have been told by some of our leaders that standing up for good against evil is very hard work and it costs a lot of money and blood, but they have gone on to say we are willing to pay. These are the politicians. This has been true for thousands of years. The politicians are always grandiose in their goals and their schemes and their plans for what they think is best for the world, and they are always willing to pay with dollars and blood. money Misguided Policy Of Nation Building In Iraq 17 October 2003    2003 Ron Paul 111:60 It has to be personalized. Because if it is just, oh, we are willing to pay. Where does the money come from? We are flat-out broke. We have had the biggest deficit ever. Our dollar is going down on the market, and we are now assuming more liabilities. When we spend $87 billion in Iraq, that is literally taken out of our economy. Imagine how many jobs and how much improvement on the standard of living of Americans could occur with $87 billion, and at the same time believe sincerely that a policy of nonintervention would be the best policy for peace and prosperity. money Misguided Policy Of Nation Building In Iraq 17 October 2003    2003 Ron Paul 111:63 In the old days, they deluded the metal or clipped the coins. Today, it is more sophisticated, because we run up the debt, we send it over to the Fed, and they print the money. But that is debasing the currency, and it undermines the standard of living, already occurring with people on fixed incomes. So it will finally come to a halt, just as our intervention in Vietnam finally came to a sad halt. It did end. But the rest will come to an end when we can no longer afford it. money Conference Report On H.R. 2417 Intelligence Authorization Act For Fiscal year 2004 20 November 2003    2003 Ron Paul 121:3 I also have concerns about the rest of the bill. One of the few things we do know about this final version is that we are authorizing even more than the president has requested for the intelligence community. The intelligence budget seems to grow every year, but we must ask what we are getting for our money. It is notoriously difficult to assess the successes of our intelligence apparatus, and perhaps it is unfair that we only hear about its failures and shortcomings. However, we cannot help but be concerned over several such failures in recent years. Despite the tens of billions we spend on these myriad intelligence agencies, it is impossible to ignore the failure of our federal intelligence community to detect and prevent the September 11 attacks. Additionally, it is becoming increasingly obvious that our intelligence community failed completely to accurately assess the nature of the Iraqi threat. These are by any measure grave failures, costing us incalculably in human lives and treasure. Yet from what little we can know about this bill, the solution is to fund more of the same. I would hope that we might begin coming up with new approaches to our intelligence needs, perhaps returning to an emphasis on the proven value of human intelligence and expanded linguistic capabilities for our intelligence personnel. money Whose Peace? December 8, 2003    2003 Ron Paul 123:2 We do know this: after decades of conflict and tens of billions of US taxpayer dollars spent, US government involvement in the Israeli-Palestinian peace process has led nowhere. The latest US government-initiated plan for peace, the “road map,” appears to be a map to nowhere. This does not surprise me much. With a seemingly endless amount of money to bribe the leaders of the two opposing sides to remain engaged in the process, is it any wonder why the two parties never arrive at peace? money A Wise Consistency February 11, 2004    2004 Ron Paul 2:6 Since it’s proven that centralized control over education and medicine has done nothing to improve them, and instead of reassessing these programs, more money is thrown into the same centralized planning, this is much closer to Emerson’s foolish consistency than defending liberty and private property in a consistent and forceful manner while strictly obeying the Constitution. money A Wise Consistency February 11, 2004    2004 Ron Paul 2:11 Trade as an issue of personal liberty is totally ignored. But simply put, one ought to have the right to spend one’s own money any way one wants. Buying cheap foreign products can have a great economic benefit for our citizens and serve as an incentive to improve production here at home. It also puts pressure on us to reassess the onerous regulations and tax burdens placed on our business community. Monopoly wages that force wage rates above the market also are challenged when true free trade is permitted. And this, of course, is the reason free trade is rejected. Labor likes higher-than-market wages, and business likes less competition. In the end, consumers — all of us — suffer. Ironically, the free traders in Congress were the most outspoken opponents of drug reimportation, with a convoluted argument claiming that the free-trade position should prohibit the reimportation of pharmaceuticals. So much for a wise consistency! money A Wise Consistency February 11, 2004    2004 Ron Paul 2:13 Paper Money, Inflation, and Economic Pain : Paper money and inflation have never provided long-term economic growth, nor have they enhanced freedom. Yet the world, led by the United States, lives with a financial system awash with fiat currencies and historic debt as a consequence. No matter how serious the problems that come from central-bank monetary inflations — the depressions and inflation, unemployment, social chaos, and war — the only answer has been to inflate even more. Except for the Austrian free-market economists, the consensus is that the Great Depression was prolonged and exacerbated by the lack of monetary inflation. This view is held by Alan Greenspan, and reflected in his January 2001 response to the stock market slump and a slower economy — namely a record monetary stimulus and historically low interest rates. The unwillingness to blame the slumps on the Federal Reserve’s previous errors, though the evidence is clear, guarantees that greater problems for the United States and the world economy lie ahead. Though there is adequate information to understand the real cause of the business cycle, the truth and proper policy are not palatable. Closing down the engine of inflation at any point does cause short-term problems that are politically unacceptable. But the alternative is worse, in the long term. It is not unlike a drug addict demanding and getting a fix in order to avoid the withdrawal symptoms. Not getting rid of the addiction is a deadly mistake. While resorting to continued monetary stimulus through credit creation delays the pain and suffering, it inevitably makes the problems much worse. Debt continues to build in all areas — personal, business, and government. Inflated stock prices are propped up, waiting for another collapse. Mal-investment and overcapacity fail to correct. Insolvency proliferates without liquidation. These same errors have been prolonging the correction in Japan for 14 years, with billions of dollars of non-performing loans still on the books. Failure to admit and recognize that fiat money, mismanaged by central banks, gives us most of our economic problems, along with a greater likelihood for war, means we never learn from our mistakes. Our consistent response is to inflate faster and borrow more, which each downturn requires, to keep the economy afloat. Talk about a foolish consistency! It’s time for our leaders to admit the error of their ways, consider the wise consistency of following the advice of our Founders, and reject paper money and central bank inflationary policies. money A Wise Consistency February 11, 2004    2004 Ron Paul 2:15 FDA and Legal Drugs—For Our Own Protection : Our laws and attitudes regarding legal drugs are almost as harmful. The FDA supposedly exists to protect the consumer and patients. This conclusion is based on an assumption that consumers are idiots and all physicians and drug manufacturers are unethical or criminals. It also assumes that bureaucrats and politicians, motivated by good intentions, can efficiently bring drugs onto the market in a timely manner and at reasonable cost. These same naïve dreamers are the ones who say that in order to protect the people from themselves, we must prohibit them from being allowed to re-import drugs from Canada or Mexico at great savings. The FDA virtually guarantees that new drugs come online slower and cost more money. Small companies are unable to pay the legal expenses, and don’t get the friendly treatment that politically connected big drug companies receive. If a drug seems to offer promise, especially for a life-threatening disease, why is it not available, with full disclosure, to anyone who wants to try it? No, our protectors say that no one gets to use it, or make their own decisions, until the FDA guarantees that each drug has been proven safe and effective. And believe me, the FDA is quite capable of making mistakes, even after years of testing. It seems criminal when cancer patients come to our congressional offices begging and pleading for a waiver to try some new drug. We call this a free society! For those who can’t get a potentially helpful drug but might receive a little comfort from some marijuana, raised in their own back yard legally in their home state, the heavy hand of the DEA comes down hard, actually arresting and imprisoning ill patients. Federal drug laws blatantly preempt state laws, adding insult to injury. money A Wise Consistency February 11, 2004    2004 Ron Paul 2:27 -The Constitution places restraints on Congress and the executive branch, so as not to wage war casually and without proper declaration. It provides no authority to spend money or lives to spread our political message around the world. A strict adherence to the rule of law and the Constitution would bring an immediate halt to our ill-advised experiment in assuming the role of world policeman. We have been told that our effort in Iraq has been worth the 500-plus lives lost and the thousands wounded. I disagree — with great sadness for the families who have lost so much, and with so little hope for a good peace — I can only say, I disagree and hope I’m wrong. money The Financial Services Committees “Views and Estimates for 2005” February 26, 2004    2004 Ron Paul 7:11 The committee’s inconsistency regarding deficit reduction is shown by its support for increased spending for almost every foreign aid program under its jurisdiction. Of course, Congress has neither constitutional nor moral authority to take money from the American people and send it overseas. Furthermore, foreign aid rarely helps improve the standard of living for citizens of “beneficiary” countries. Instead, the aid all too often enriches corrupt politicians and helps stave off pressure for real reform. Furthermore, certain proposals the committee embraces smack of economic imperialism, suggesting that a country whose economic and other policies please American politicians and bureaucrats will be rewarded with money stolen from the American taxpayer. money The Financial Services Committees “Views and Estimates for 2005” February 26, 2004    2004 Ron Paul 7:17 In conclusion, the “Views and Estimates” report presented by the committee claims to endorse fiscal responsibility, yet also supports expanding international, corporate, and domestic spending. The report also endorses increasing the power of the federal police state. Perhaps most disturbingly, this document ignores the looming economic problems created by the Federal Reserve’s inflationary monetary polices and the resulting increase in private and public sector debt. I therefore urge my colleagues to reject this document and instead embrace an agenda of ending corporate welfare, protecting financial privacy, and reforming the fiat money system that is the root cause of America’s economic instability. money H. Res. 412 Honoring Men And Women Of The Drug Enforcement Administration — Part 1 3 March 2004    2004 Ron Paul 10:12 We have civil liberty consequences as well. We set the stage for gangsters and terrorists raising money by making weeds and wild plants and flowers illegal. If someone could say and show me all of a sudden that the American people use a lot less drugs and kids are never tempted, it would be a better case; but we do not have the evidence. We have no evidence to show that 30 years of this drug war has done very much good. Matter of fact, all studies of the DARE program show that the DARE program has not encouraged kids to use less illegal drugs. So there is quite a few reasons why we ought not to just glibly say to the DEA it’s been a wonderful 30 years and encourage more of it. money H. Res. 412 Honoring Men And Women Of The Drug Enforcement Administration — Part 2 3 March 2004    2004 Ron Paul 11:4 Right now, because of the policies in Afghanistan, 80 percent of Afghanistan now has been returned to the drug lords. If the drugs were worthless, there would be no incentive to promote them. But they are worth a lot of money, so inadvertently our drug war pushes the prices up, and we create the incentive for the Taliban and others to raise the poppies and send the drugs over here. Then they finance the terrorists. So it is an unintended consequence that does not make any sense. It does not have to happen. money An Indecent Attack on the First Amendment March 10, 2004    2004 Ron Paul 14:7 Just one year ago we saw a coalition of both left and right push through the radical Campaign Finance Reform Act, which strictly curtails the rights all Americans to speak out against particular candidates at the time of elections. Amazingly, this usurpation by Congress was upheld by the Supreme Court, which showed no concern for the restrictions on political speech during political campaigns. Instead of admitting that money and corruption in government is not a consequence of too much freedom of expression, but rather a result of government acting outside the bounds of the Constitution, this new law addressed a symptom rather than the cause of special interest control of our legislative process. money North American Development Bank 24 March 2004    2004 Ron Paul 21:4 I would also like to remind my colleagues that there is no constitutional authorization for Congress to fund organizations like the NAD. If my colleagues are not convinced by the constitutional argument, I would hope they would consider the wisdom of expanding the scope of taxpayer support of programs like the NAD at a time when the government is facing massive deficits and Congress is scrambling to find the money to pay for national priorities. money The Child Health Care Affordability Act 24 March 2004    2004 Ron Paul 23:7 Mr. Speaker, this Congress has a moral responsibility to provide tax relief so that low-income parents struggling to care for a sick child can better meet their child’s medical expenses. Some may say that we cannot enact the Child Health Care Affordability Act because it would cause the government to lose revenue. But, who is more deserving of this money, Congress or the working parents of a sick child? money Oppose the Spendthrift 2005 Federal Budget Resolution March 25, 2004    2004 Ron Paul 24:2 Neither political party wants to address the fundamental yet unspoken issue lurking beneath any budget debate: What is the proper role for government in our society? Are these ever-growing social services and defense expenditures really proper in a free country? We need to understand that the more government spends, the more freedom is lost. Instead of simply debating spending levels, we ought to be debating whether the departments, agencies, and programs funded by the budget should exist at all. My Republican colleagues especially ought to know this. Unfortunately, however, the GOP has decided to abandon principle and pander to the entitlements crowd. But this approach will backfire, because Democrats will always offer to spend even more than Republicans. When Republicans offer to spend $500 billion on Medicare, Democrats will offer $600 billion. Why not? It’s all funny money anyway, and it helps them get reelected. money Don’t Expand NATO! March 30, 2004    2004 Ron Paul 25:8 In conclusion, we should not be wasting US tax money and taking on more military obligations expanding NATO. The alliance is a relic of the Cold War, a hold-over from another time, an anachronism. It should be disbanded, the sooner the better. money The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:21 I’m sure we will hear that the bureaucracy failed, whether it was the FBI, the CIA, the NSC, or all of them for failure to communicate with each other. This will not answer the question of why we were attacked and why our defenses were so poor. Even though 40 billion dollars are spent on intelligence gathering each year, the process failed us. It’s likely to be said that what we need is more money and more efficiency. Yet, that approach fails to recognize that depending on government agencies to be efficient is a risky assumption. money The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:22 We should support efforts to make the intelligence agencies more effective, but one thing is certain: more money won’t help. Of the 40 billion dollars spent annually for intelligence, too much is spent on nation building and activities unrelated to justified surveillance. money The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:25 How does this apply to the 9/11 tragedies? The airline owners accepted the rules of the inner city rather than those of rural America. They all assumed that the government was in charge of airline security—and unfortunately, by law, it was. Not only were the airlines complacent about security, but the FAA dictated all the rules relating to potential hijacking. Chemical plants or armored truck companies that carry money make the opposite assumption, and private guns do a reasonably good job in providing security. Evidently we think more of our money and chemical plants than we do our passengers on airplanes. money The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:28 Unfortunately, the biggest failure of our government will be ignored. I’m sure the Commission will not connect our foreign policy of interventionism—practiced by both major parties for over a hundred years—as an important reason 9/11 occurred. Instead, the claims will stand that the motivation behind 9/11 was our freedom, prosperity, and way of life. If this error persists, all the tinkering and money to improve the intelligence agencies will bear little fruit. money Introducing Cassandra Tamez’s Essay Into The Congressional Record    2004 Ron Paul 29:4 So with all this in mind I ask myself, what is my commitment to America’s future? Should I recycle or join a beautification committee to preserve America? Should I donate money to foundations that help kids? Or perhaps I could pledge my time to hospitals or nursing homes to help the sick people of America . . . money Introducing Cassandra Tamez’s Essay Into The Congressional Record    2004 Ron Paul 29:6 Donating money . . . I am not rich. How could the amount of money that I give even help one person with cancer or in need of help? I have seen programs on T.V. that talk about saving the life of a child by just donating 88 cents a day. Then I began thinking about how much it costs for me to eat for just one day. I estimated that my food alone costs eight to fifteen dollars. How could a child survive on 88 cents a day? Is it possible? money Introducing Cassandra Tamez’s Essay Into The Congressional Record    2004 Ron Paul 29:10 I have to admit that this poem has inspired me. Because even though I am but one speck of sand on a beach, I know that I am a solid and firm speck, and that there are other specs like me that compose the sand. I am one of many who may carry the optimistic attitude of commitment to America. Once again, I think back to my efforts of recycling, donating money, and pledging my time, and realize that they were not futile efforts at all. When I recycled, I know it was probably only thirty newspapers out of trillions in the world, but what if I recycled once a month? That would be 360 newspapers a year for a lifetime. I might save a beautiful tree or even more. As for donating money, well 88 cents a day from me might not feed a child, but if only nine more people in my state donate 88 cents, then that child has a total of $8.80, my estimate of money needed for a day. Now, as far as pledging my time goes, I do not think my time spent in the nursing home was a complete waste. I did help one patient who was in pain. money Reject the Millennium Challenge Act May 19, 2004    2004 Ron Paul 35:2 I believe that the Millennium Challenge Account (MCA) may be one of the worst foreign policy blunders yet - and among the most costly. It is advertised as a whole new kind of foreign aid - apparently an honest admission that the old system of foreign aid does not work. But rather than get rid of the old, bad system of foreign aid in favor of this “new and improved” system, we are keeping both systems and thereby doubling our foreign aid. I guess it is easy to be generous with other people’s money. In reality, this “new and improved” method of sending US taxpayer dollars overseas will likely work no better than the old system, and may in fact do more damage to the countries that it purports to help. money Reject the Millennium Challenge Act May 19, 2004    2004 Ron Paul 35:5 In fact, this program will do much more harm than good. MCA will hurt recipient country economies. Sending US aid money into countries that are pursuing sound economic policies will not help these economies. On the contrary, an external infusion of money to governments meeting the economic criteria will actually obscure areas where an economy is inefficient and unproductive. This assistance will slow down necessary reform by providing a hidden subsidy to unproductive sectors of the economy. We thus do no favors for the recipient country in the long term with this harmful approach. money Reject the Millennium Challenge Act May 19, 2004    2004 Ron Paul 35:6 MCA is a waste of taxpayer money. Countries that pursue sound economic policies will find that international financial markets provide many times the investment capital necessary for economic growth. MCA funds will not even be a drop in the bucket compared to what private capital can bring to bear in an economy with promise and potential. And this capital will be invested according to sound investment strategies - designed to make a profit - rather than allocated according to the whim of government bureaucrats. money Reject the Millennium Challenge Act May 19, 2004    2004 Ron Paul 35:7 MCA is corporate welfare for politically-connected US firms. These companies will directly benefit from this purported aid to foreign countries, as the money collected from US taxpayers can under the program be transferred directly to US companies to complete programs in the recipient countries. As bad as it is for US tax dollars to be sent overseas to help poor countries, what is worse is for it to be sent abroad to help rich and politically-connected US and multi-national companies. money Reject the Millennium Challenge Act May 19, 2004    2004 Ron Paul 35:8 MCA encourages socialism and statism. Because it is entirely geared toward foreign governments, it will force economically devastating “public-private partnerships” in developing nations: if the private sector is to see any of the money it will have to be in partnership with government. There should be no doubt that these foreign governments will place additional requirements on the private firms in order to qualify for funding. Who knows how much of this money will be wasted on those companies with the best political connections to the foreign governments in power. The MCA invites political corruption by creating a slush fund at the control of foreign governments. money The Same Old Failed Policies in Iraq June 3, 2004    2004 Ron Paul 37:13 The day is fast approaching when we no longer will be able to afford this burden. For now foreign governments are willing to loan us the money needed to finance our current account deficit, and indirectly the cost of our worldwide military operations. It may seem possible for the moment because we have been afforded the historically unique privilege of printing the world’s reserve currency. Foreigners have been only too willing to take our depreciating dollars for their goods. Economic law eventually will limit our ability to live off others by credit creation. Eventually trust in the dollar will be diminished, if not destroyed. Those who hold these trillion plus dollars can hold us hostage if it’s ever in their interest. It may be that economic law and hostility toward the United States will combine to precipitate an emotionally charged rejection of the dollar. money The Same Old Failed Policies in Iraq June 3, 2004    2004 Ron Paul 37:14 That’s when the true wealth of the country will become self-evident and we will no longer be able to afford the extravagant expense of pursuing an American empire. No nation has ever been able to finance excessive foreign entanglements and domestic entitlements through printing press money and borrowing from abroad. money The Same Old Failed Policies in Iraq June 3, 2004    2004 Ron Paul 37:19 True defense is diminished when money and energy are consumed by activities outside the scope of specifically protecting our national security. Diverting resources away from defense and the protection of our borders while antagonizing so many around the world actually serves to expose us to greater danger from more determined enemies. money American Jobs Creation Act 17 June 2004    2004 Ron Paul 39:5 The bill does cut taxes overall, and for that reason I will vote in favor of it. Any legislation that results in less money being sent to the black hole that is the federal Treasury is worth supporting. I especially support the provision that allows Texans (and citizens of other states that do not have an income tax) to deduct state sales taxes, and will vote yes accordingly. money Bill Would Not Bring Middle East Peace 23 June 2004    2004 Ron Paul 40:2 Mr. Speaker, this resolution in several places asserts that the United States is “strongly committed” to the security of Israel. I find no provision in the Constitution that allows the United States Government to confiscate money from its own citizens and send it overseas for the defense of a foreign country. Further, this legislation promises that the United States “remains committed to . . . Israel, including secure, recognized, and defensible borders.” So we are pledging to defend Israel’s borders while we are not even able to control our own borders. Shouldn’t we be concentrating on fulfilling our constitutional obligations in our own country first, before we go crusading around the world to protect foreign borders? money Spending Billions on our Failed Intelligence Agencies June 23, 2004    2004 Ron Paul 41:4 I am also concerned about the efficacy of our intelligence community. The intelligence budget seems to grow every year, but seldom do my colleagues ask what exactly we are getting for our constituents’ money. It may be unfair that we only hear about the intelligence community’s failures and shortcomings, but we cannot help but be concerned over so many such failures in recent years. Despite the tens of billions we spend on these myriad intelligence agencies, it is impossible to ignore the failure of the intelligence community to detect and prevent the September 11, 2001 attacks. money A Token Attempt to Reduce Government Spending June 24, 2004    2004 Ron Paul 43:9 Congress already has the tools to halt the headlong flight into bankruptcy. It holds the purse strings. No President can impound funds or spend unwisely unless an improvident, reckless Congress makes available the money. money American Community Survey 7 July 2004    2004 Ron Paul 45:7 Article 1, section 2 of the U.S. Constitution mandates a national census every 10 years. I am in support of that, and I vote for funding for a national census every 10 years for the sole purpose of congressional redistricting. But, boy, this is out of hand now. We are talking about hundreds of millions of dollars and it is perpetual. The argument earlier was, we have to have to survey continuously because we save money by spending more money. Ask people a lot of questions, personal questions about bathrooms and incomes and who knows what. money Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:2 The never-ending political squabble in Congress over taxing the rich, helping the poor, “Pay-Go,” deficits, and special interests, ignores the most insidious of all taxes- the inflation tax. Simply put, printing money to pay for federal spending dilutes the value of the dollar, which causes higher prices for goods and services. Inflation may be an indirect tax, but it is very real- the individuals who suffer most from cost of living increases certainly pay a “tax.” money Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:4 This neglect of monetary policy may be out of ignorance, but it may well be deliberate. Fully recognizing the harm caused by printing money to cover budget deficits might create public pressure to restrain spending- something the two parties don’t want. money Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:8 Borrowing money to cut the deficit is only marginally better than raising taxes. It may delay the pain for a while, but the cost of government eventually must be paid. Federal borrowing means the cost of interest is added, shifting the burden to a different group than those who benefited and possibly even to another generation. Eventually borrowing is always paid for through taxation. money Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:9 All spending ultimately must be a tax, even when direct taxes and direct borrowing are avoided. The third option is for the Federal Reserve to create credit to pay the bills Congress runs up. Nobody objects, and most Members hope that deficits don’t really matter if the Fed accommodates Congress by creating more money. Besides, interest payments to the Fed are lower than they would be if funds were borrowed from the public, and payments can be delayed indefinitely merely by creating more credit out of thin air to buy U.S. treasuries. No need to soak the rich. A good deal, it seems, for everyone. But is it? money Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:11 The “tax” is paid when prices rise as the result of a depreciating dollar. Savers and those living on fixed or low incomes are hardest hit as the cost of living rises. Low and middle incomes families suffer the most as they struggle to make ends meet while wealth is literally transferred from the middle class to the wealthy. Government officials stick to their claim that no significant inflation exists, even as certain necessary costs are skyrocketing and incomes are stagnating. The transfer of wealth comes as savers and fixed income families lose purchasing power, large banks benefit, and corporations receive plush contracts from the government- as is the case with military contractors. These companies use the newly printed money before it circulates, while the middle class is forced to accept it at face value later on. This becomes a huge hidden tax on the middle class, many of whom never object to government spending in hopes that the political promises will be fulfilled and they will receive some of the goodies. But surprise- it doesn’t happen. The result instead is higher prices for prescription drugs, energy, and other necessities. The freebies never come. money Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:12 The Fed is solely responsible for inflation by creating money out of thin air. It does so either to monetize federal debt, or in the process of economic planning through interest rate manipulation. This Fed intervention in our economy, though rarely even acknowledged by Congress, is more destructive than Members can imagine. money Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:14 The Fed’s great power over the money supply, interest rates, the business cycle, unemployment, and inflation is wielded with essentially no Congressional oversight or understanding. The process of inflating our currency to pay for government debt indeed imposes a tax without legislative authority. money Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:15 This is no small matter. In just the first 24 weeks of this year the M3 money supply increased 428 billion dollars, and 700 billion dollars in the past year. M3 currently is rising at a rate of 10.5%. In the last seven years the money supply has increased 80%, as M3 has soared 4.1 trillion dollars. This bizarre system of paper money worldwide has allowed serious international imbalances to develop. We owe just four Asian countries 1.5 trillion dollars as a consequence of a chronic and staggering current account deficit now exceeding 5% of our GDP. This current account deficit means Americans must borrow 1.6 billion dollars per day from overseas just to finance this deficit. This imbalance, which until now has permitted us to live beyond our means, eventually will give us higher consumer prices, a lower standard of living, higher interest rates, and renewed inflation. money Taiwan Relations Act — Part 1 14 July 2004    2004 Ron Paul 54:9 Economics is another issue. We are running out of money; and these endless commitments, military commitments and commitments overseas, cannot go on forever. Our national debt is going up between $600 billion and $700 billion a year, so eventually my arguments will win out, because we are going to run out of money and this country is going to go broke. So there is an economic argument against that. money Millennium Challenge Account — Part 1 15 July 2004    2004 Ron Paul 57:6 But the idea that we can promote humanitarian programs by taking literally money from poor people in this country and giving it to rich, influential leaders in other countries and we are going to have this miraculous success I think is a myth. It does not work that way, and there are people who are not benefitted. money Millennium Challenge Account — Part 1 15 July 2004    2004 Ron Paul 57:7 Now, it may be said by those who have promoted the Millennium Challenge Account, that is exactly what we are trying to address. We want to reward countries that are moving in the direction of free markets. Now, that is a nice notion, but it cannot work. It is impossible because when we give money to a government, it is politicized. It becomes bureaucratic, and it has to be handed out to special interests. money Millennium Challenge Account — Part 1 15 July 2004    2004 Ron Paul 57:9 So it would be nice to think that the poor people of these other countries are going to benefit, but I think it is a greater injury to the poor people of this country. My colleagues say the poor people of this country do not pay taxes. Well, that is incorrect, because the inflation tax is borne by the poor and the middle class, and that occurs when we spend too much money. And this is too much money spent the wrong way, and we do not have the authority to do it. Besides, how many of us ever get calls from our constituents saying please vote for more foreign aid? No, they are asking for more help here, and this distracts from it. money Millennium Challenge Account — Part 1 15 July 2004    2004 Ron Paul 57:10 When we do not have the money, we run up the debt. Then we go and we literally print the money to pay the bills. We create the inflation and the higher cost of living, and it injures the low and middle income people the most, and they are the ones who are losing jobs. money Millennium Challenge Account — Part 1 15 July 2004    2004 Ron Paul 57:11 So this is literally money coming out of our pockets for programs that could help us in this country. money Millennium Challenge Account — Part 2 15 July 2004    2004 Ron Paul 59:2 Let me follow up on the point I made earlier about the good intentions of a program like this to promote free market changes in certain countries, but, unfortunately, this backfires because once the money gets in the hands of the government we then require them to develop partnerships or alliances with businesses, which is exactly the opposite of free markets. This is closer to crony capitalism or fascism when we combine government money with business interests. money Millennium Challenge Account — Part 2 15 July 2004    2004 Ron Paul 59:3 At the same time, we know that our corporations will also participate in these programs. So the money once again leaves the people of this country, many times the poor, and goes to these foreign aid programs which subsidize certain governments, solidifying powers of certain politicians, which then allows fungibility of their other funds to do other things and then encourage business partnerships between government and business which is not free markets, which literally is undermining the move that I think is intended and that is to improve the conditions of other countries. money Opposing Aid To Pakistan 15 July 2004    2004 Ron Paul 61:4 The advice of the Founders was that we should be more balanced in our approach and not favoring special nations, not giving money or weapons or getting involved in any alliances with the different nations of the world and we would all be better off for it. money Opposing Aid To Pakistan 15 July 2004    2004 Ron Paul 61:6 We are in Iraq to promote democracy, but here we send money to a military dictator who overthrew an elected government. And there just seems to be a tremendous inconsistency here. There was a military coup in 1999. There is the strong possibility that Osama bin Laden may well be in Pakistan. And to actually send money there, we are prohibited from really going in there and looking for Osama bin Laden; so we give the government of Pakistan money in the hopes that they will be helpful to us. money Opposing Aid To Pakistan 15 July 2004    2004 Ron Paul 61:7 There is quite a bit of difference between the foreign policy of neutrality and friendship with everyone versus giving money and support to everyone. And if we look at our history, it has not worked very well. We have in the past given money to both sides of a lot of wars, and right now we try to be friends and we give money in support to both India and Pakistan. I do not bring this amendment up here to be pro either one or anti either one. I want to have a pro-American foreign policy and not say, well, I want to punish Pakistan and help India or vice versa. money The Constitution 23 September 2004    2004 Ron Paul 70:11 The response of honorable men and women who represent us should be simply to take their oaths of office seriously, vote accordingly and return our Nation to its proper republican origins. The result would be economic prosperity, greater personal liberty, honest money, abolition of the Internal Revenue Service and a world made more peaceful when we abandon the futile policy of building and policing an American empire. No longer would we yield our sovereignty to international organizations that act outside of the restraints placed on the government by the Constitution. money The 9-11 Intelligence Bill: More Bureaucracy, More Intervention, Less Freedom October 8, 2004    2004 Ron Paul 77:1 Mr. Speaker, the 9/11 Recommendations Implementation Act (HR 10) is yet another attempt to address the threat of terrorism by giving more money and power to the federal bureaucracy. Most of the reforms contained in this bill will not make America safer, though they definitely will make us less free. HR 10 also wastes American taxpayer money on unconstitutional and ineffective foreign aid programs. Congress should make America safer by expanding liberty and refocusing our foreign policy on defending this nation’s vital interests, rather than expanding the welfare state and wasting American blood and treasure on quixotic crusades to “democratize” the world. money The 9-11 Intelligence Bill: More Bureaucracy, More Intervention, Less Freedom October 8, 2004    2004 Ron Paul 77:13 This bill also increases our counterproductive practice of sending United States’ taxpayer money abroad to prop up selected foreign media, which inexplicably are referred to as “independent media.” This is an unconstitutional misuse of tax money. Additionally, does anyone believe that citizens of countries where the US subsidizes certain media outlets take kindly to, or take seriously, such media? How would Americans feel if they knew that publications taking a certain editorial line were financed by foreign governments? We cannot refer to foreign media funded by the US government as “independent media.” The US government should never be in the business of funding the media, either at home or abroad. money Raising the Debt Limit: A Disgrace November 18, 2004    2004 Ron Paul 79:2 The term “national debt” really is a misnomer. It is not the nation’s debt. Instead, it is the federal government’s debt. The American people did not spend the money, but they will have to pay it back. money Raising the Debt Limit: A Disgrace November 18, 2004    2004 Ron Paul 79:3 Most Americans do not spend much time worrying about the national debt, which now totals more than eight trillion dollars. The number is so staggering that it hardly seems real, even when economists issue bleak warnings about how much every American owes — currently about $25,000. Of course, Congress never hands each taxpayer a bill for that amount. Instead, the federal government uses your hard-earned money to pay interest on this debt, which is like making minimum payments on a credit card. Notice that the principal never goes down. In fact, it is rising steadily. money Raising the Debt Limit: A Disgrace November 18, 2004    2004 Ron Paul 79:4 The problem is very simple: Congress almost always spends more each year than the IRS collects in revenues. Federal spending always goes up, but revenues are not so dependable, especially since raising income taxes to sufficiently fund the government would be highly unpopular. So long as Congress spends more than the government takes via taxes, the federal government must raise taxes, print more dollars, or borrow money. money Raising the Debt Limit: A Disgrace November 18, 2004    2004 Ron Paul 79:8 The whole point of the debt ceiling law was to limit borrowing by forcing Congress into an open and presumably somewhat shameful vote when it wants to borrow more than a preset amount of money. Yet, since there have been no political consequences for members who vote to raise the debt limit and support the outrageous spending bills in the first place, the debt limit has become merely another technicality on the road to bankruptcy. money Where To From Here? November 20, 2004    2004 Ron Paul 81:15 Though President Bush was more favorably inclined to tax cuts, this in reality has limited value if spending continues to grow. All spending must be paid for by a tax, even if it’s the inflation “tax,” whereby printing press money pays the bills and the “tax” is paid through higher prices — especially by the poor and the middle class. money Where To From Here? November 20, 2004    2004 Ron Paul 81:18 One Merrill Lynch money manager responded to the election by saying, “Bush getting reelected means a bigger deficit, a weaker dollar, and higher gold prices.” Another broker added, “Four more years of Bush is a gift to the gold markets — more war, more deficits, more division.” money Where To From Here? November 20, 2004    2004 Ron Paul 81:19 During the Bush administration gold surged 70%, as the dollar lost 30% of its value. A weakened currency is never beneficial, although it’s argued that it helps our exporters. People who work to earn and save dollars should never have the value of those dollars undermined and diminished by capricious manipulation of the money supply by our government officials. money Where To From Here? November 20, 2004    2004 Ron Paul 81:25 The only thing that allows our borrowing from foreigners to continue is the confidence they place in our economic system, our military might, and the dollar itself. This is all about to change. Confidence in us, with the continuous expansion of our military presence overseas and with a fiscal crisis starring us in the face, is already starting to erode. Besides, paper money — and that’s all the U.S. dollar is — always fails when trust is lost. That’s a fact of history, not someone’s opinion. Be assured trust in paper money never lasts forever. money Where To From Here? November 20, 2004    2004 Ron Paul 81:28 We’re more likely to see entitlements and domestic spending continue to increase. There are zero plans for reigning in the Department of Education, government medical care, farm subsidies, or federal housing programs. Don’t expect the National Endowment for the Arts to be challenged. One can be assured its budget will expand as it has for the last four years, with much of the tax money spent on “arts” ironically being used to attack family values. money Where To From Here? November 20, 2004    2004 Ron Paul 81:34 There are even more reasons to believe the current government status quo is unsustainable. As a nation dependent on the willingness of foreigners to loan us the money to finance our extravagance, we now are consuming 80% of the world’s savings. Though the Fed does its part in supplying funds by purchasing Treasury debt, foreign central banks and investors have loaned us nearly twice what the Fed has, to the tune of $1.3 trillion. The daily borrowing needed to support our spending habits cannot last. It can be argued that even the financing of the Iraq war cannot be accomplished without the willingness of countries like China and Japan to loan us the necessary funds. Any shift, even minor, in this sentiment will send chills through the world financial markets. It will not go unnoticed, and every American consumer will be affected. money U.S. Hypocrisy in Ukraine December 7, 2004    2004 Ron Paul 82:2 We do not know exactly how many millions — or tens of millions — of dollars the United States government spent on the presidential election in Ukraine. We do know that much of that money was targeted to assist one particular candidate, and that through a series of cut-out non-governmental organizations (NGOs) — both American and Ukrainian — millions of dollars ended up in support of the presidential candidate, Viktor Yushchenko. money U.S. Hypocrisy in Ukraine December 7, 2004    2004 Ron Paul 82:11 It is clear that a significant amount of US taxpayer dollars went to support one candidate in Ukraine. Recall how most of us felt when it became known that the Chinese government was trying to funnel campaign funding to a US presidential campaign. This foreign funding of American elections is rightly illegal. Yet, it appears that that is exactly what we are doing abroad. What we do not know, however, is just how much US government money was spent to influence the outcome of the Ukrainian election. money U.S. Hypocrisy in Ukraine December 7, 2004    2004 Ron Paul 82:13 That is what I find so disturbing: there are so many cut-out organizations and sub-grantees that we have no idea how much US government money was really spent on Ukraine, and most importantly how it was spent. Perhaps the several examples of blatant partisan support that we have been able to uncover are but an anomaly. I believe Congress and the American taxpayers have a right to know. I believe we urgently need an investigation by the Government Accounting Office into how much US government money was spent in Ukraine and exactly how it was spent. I would hope very much for the support of Chairman Hyde, Chairman Lugar, Deputy Assistant Secretary Tefft, and my colleagues on the Committee in this request. money Introducing The Social Security Beneficiary Tax reduction Act And The Senior Citizens’ Tax Elimination Act 4 January 2005    2005 Ron Paul 3:3 Instead of imposing ridiculous taxes on senior citizens, Congress should ensure the integrity of the Social Security trust fund by ending the practice of using trust fund monies for other programs. In order to accomplish this goal I introduced the Social Security Preservation Act (H.R. 219), which ensures that all money in the Social Security trust fund is spent solely on Social Security. At a time when Congress’ inability to control spending is once again threatening the Social Security trust fund, the need for this legislation has never been greater. When the government taxes Americans to fund Social Security, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money Introducing The Social Security Beneficiary Tax reduction Act And The Senior Citizens’ Tax Elimination Act 4 January 2005    2005 Ron Paul 3:4 In conclusion, Mr. Speaker, I urge my colleagues to help free senior citizens from oppressive taxation by supporting my Senior Citizens’ Tax Elimination Act and my Social Security Beneficiary Tax Reduction Act. I also urge my colleagues to ensure that moneys from the Social Security trust fund are used solely for Social Security benefits and not wasted on frivolous government programs. money Introducing The Social Security Preservation Act 4 January 2005    2005 Ron Paul 4:2 The Social Security Preservation Act ensures that the government will keep its promises to America’s seniors that taxes collected for Social Security will be used for Social Security. When the government taxes Americans to fund Social Security, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money America’s Foreign Policy Of Intervention 26 January 2005    2005 Ron Paul 6:11 Since 9/11, a lot of energy and money have gone into efforts ostensibly designed to make us safer. Many laws have been passed. Many dollars have been spent. Whether or not we are better off is another question. money Family Education Freedom Act 26 January 2005    2005 Ron Paul 9:5 Today, Congress can fulfill the wishes of the American people for greater control over their children’s education by simply allowing parents to keep more of their hard-earned money to spend on education rather than force them to send it to Washington to support education programs reflective only of the values and priorities of Congress and the federal bureaucracy. money Introduction Of The Liberty Amendment 26 January 2005    2005 Ron Paul 10:1 Mr. PAUL. Mr. Speaker, I am pleased to introduce the Liberty Amendment, which repeals the 16th Amendment, thus paving the way for real change in the way government collects and spends the people’s hard-earned money. The Liberty Amendment also explicitly forbids the federal government from performing any action not explicitly authorized by the United States Constitution. money Introduction Of The Liberty Amendment 26 January 2005    2005 Ron Paul 10:5 Income taxes not only diminish liberty, they retard economic growth by discouraging work and production. Our current tax system also forces Americans to waste valuable time and money on compliance with an ever-more complex tax code. The increased interest in flat- tax and national sales tax proposals, as well as the increasing number of small businesses that question the Internal Revenue Service’s (IRS) “withholding” system provides further proof that America is tired of the labyrinthine tax code. Americans are also increasingly fed up with an IRS that continues to ride roughshod over their civil liberties, despite recent “pro-taxpayer” reforms. money Introducing The Make College Affordable Act 26 January 2005    2005 Ron Paul 11:4 Helping the American people use their own money to ensure every qualified American can receive a college education is one of the best investments this Congress can make in the future. I therefore urge my colleagues to help strengthen America by ensuring more Americans can obtain college educations by cosponsoring the Make College Affordable Act. money Introducing The Sanity Of Life Act And The Taxpayer Freedom Of Conscience Act 10 February 2005    2005 Ron Paul 21:4 In addition to restricting federal court jurisdiction over abortion, Congress must stop the unconstitutional practice of forcing Americans to subsidize abortion providers. It is not enough to say that “family planning” groups may not use federal funds to perform or promote abortion. After all, since money is fungible, federal funding of any activities of these organizations forces taxpayers to underwrite the organizations abortion activities. This is why I am also introducing the Taxpayer Freedom of Conscience Act. The Taxpayer Freedom of Conscience Act prohibits any federal official from expending any federal funds for any population control or population planning program or any family planning activity. To paraphrase Thomas Jefferson, it is “sinful and tyrannical” to force the American taxpayers to subsidize programs and practices they find morally abhorrent. money Introducing The American Sovereignty Restoration Act Of 2005 8 March 2005    2005 Ron Paul 27:3 Indeed, even though the United States pays the lion’s share of the UN budget, UN bureaucrats are still not satisfied. They want direct access to U.S. taxpayer money with out the U.S. government middleman. A current example of this determination to tax American citizens is the Law of the Sea Treaty. The “International Seabed Authority” created by the Law of the Sea Treaty would have the authority to — for the first time in history — impose taxes on American businesses and citizens. This treaty may be ratified at any time by the U.S. Senate and UN taxation of Americans will become a reality. money Reject the Latest Foreign Welfare Scheme March 14, 2005    2005 Ron Paul 28:3 Mr. Speaker, this bill will do more than just take money from Americans. This commission will enable members of Congress and congressional staff employees to travel the world meddling in the affairs of foreign governing bodies. It is counterproductive to tell other nations how they should govern themselves, as even if we come loaded with dollars to hand out, our meddling is always resented by the local population -- just as we would resent a foreign government telling us how to govern ourselves. Don’t we have enough of our own problems to solve without going abroad in search of foreign parliaments to aid? money “Emergency” Supplemental Spending Bill 16 March 2005    2005 Ron Paul 29:4 Does anyone really believe that all this foreign aid is “emergency” spending? Or is it just an opportunity for some off-budget spending? Just the above foreign aid equals almost $3.5 billion. Does anyone believe that sending this much money abroad as international welfare is a good thing for our economy? money “Emergency” Supplemental Spending Bill 16 March 2005    2005 Ron Paul 29:5 Is there a baseball emergency? There must be, because this “emergency” supplemental contains a provision to allow Washington, D.C. to use taxpayer money to build a baseball stadium. money Consequences Of Foreign Policy — Part 1 16 March 2005    2005 Ron Paul 30:13 Our problem very simply comes from the violation of the basic principle that we should follow, and that is that we should be friends with nations and trade with nations, and that we should be neutral in foreign affairs, because it does not serve our interests. It costs a lot of money and it costs a lot of credibility and it costs a lot of lives. money Consequences Of Foreign Policy — Part 1 16 March 2005    2005 Ron Paul 30:16 But, ultimately, not only do the people get very angry and upset and frustrated with the loss of life, there are economic limitations to this as well, and that is something that I do not think anybody here hardly pays any attention to; that is how long can we continue to spend this money and not have this come back to really haunt us economically? The 1960s came back to haunt us in the 1970s, and the basic financial condition of this country is much worse than it was in the 1970s. Yet there is no hesitation. money The Deficit 16 March 2005    2005 Ron Paul 33:6 What would that mean to the economy? It would be a boost because we would be injecting $2 trillion back into the economy, allowing the people to spend their own money. But being pretty realistic, I know that is not likely to happen or be offered or even be able to present that on the House floor. Besides, it could be rather embarrassing to bring something like that to the floor. Not so much embarrassing to me, because I am accustomed to voting in a small group of people on many occasions; but it could be embarrassing to others because, for the most part, most Members would not even conceive of the idea of having a strict interpretation of the Constitution and severely limiting the budget. So we would not want to put everybody on record for that. money The Deficit 16 March 2005    2005 Ron Paul 33:12 Really, there are only two areas that would have to be cut if we were to strive for a constitutional budget. There are only two things that we would have to cut, and it would be welfare and warfare. And then we would get back to some fundamentals. During World War I, a gentleman by the name of Randolph Bourne wrote a pamphlet called “War is the Health of the State,” and I truly believe that. When we are at war, we are more likely to sacrifice our liberties; and, of course, we spend more money that we really have. I would like to suggest a corollary, that peace is the foundation of liberty because that is what the goal of all government should be: the preservation of liberty. money The Deficit 16 March 2005    2005 Ron Paul 33:13 We have endorsed a program with this interpretation that spending is going to be endlessly increased, and we have devised a system whereby we have ignored the constraints through monetary policy by not only are we taxing too much and borrowing too much; we have now since 1971 endorsed a monetary system that if we come up short we just print the money. And I would suggest to the gentlewoman that one of the reasons why the workers’ purchasing power is going down is we print too many dollars and they are the ones who are most likely and first to suffer from inflation. money The Deficit 16 March 2005    2005 Ron Paul 33:14 And it is the philosophy of government and our philosophy on money that encourages these problems. And the current account deficits and this huge foreign indebtedness that are encouraged by our ability to maintain a reserve currency, it is going to lead to a crisis where this spending will have to come in check. money Hypocrisy and the Ordeal of Terri Schiavo April 6, 2005    2005 Ron Paul 34:12 Though the left produced some outstanding arguments for the federal government staying out of this controversy, they frequently used an analogy that could never persuade those of us who believe in a free society guided by the constraints of the Constitution. They argued that if conservatives who supported prolonging Terri’s life would only spend more money on welfare, they would demonstrate sincere concern for the right to life. This is false logic and does nothing to build the case for a local government solution to a feeding tube debate. money Hypocrisy and the Ordeal of Terri Schiavo April 6, 2005    2005 Ron Paul 34:22 Compounding the cost problems that will lead to government ordered euthanasia is the fact that costs always skyrocket in government-run programs. This is true whether it’s a $300 hammer for the Pentagon or an emergency room visit for a broken toe. And in addition deficit financing, already epidemic because of our flawed philosophy of guns and butter, always leads to inflation when a country operates on a paper money system. money Who’s Better Off? April 6, 2005    2005 Ron Paul 35:22 Because of the war, fewer dollars are available for real national security and defense of this country. Military spending is up, but the way the money is spent distracts from true national defense and further undermines our credibility around the world. money The United States Should Withdraw From UNESCO 14 April 2005    2005 Ron Paul 40:3 Since the United States decided to re-join UNESCO in 2003, Congress has appropriated funds to cover some 25 percent of the organization’s entire budget. But what are we getting for this money? money Reject Taxpayer Bank Bailouts May 4, 2005    2005 Ron Paul 46:7 Finally, I would remind my colleagues that the federal deposit insurance program lacks constitutional authority. Congress’ only mandate in the area of money, and banking is to maintain the value of the money. Unfortunately, Congress abdicated its responsibility over monetary policy with the passage of the Federal Reserve Act of 1913, which allows the federal government to erode the value of the currency at the will of the central bank. Congress’ embrace of fiat money is directly responsible for the instability in the banking system that created the justification for deposit insurance. money Gang Deterrence And Community Protection Act 11 May 2005    2005 Ron Paul 47:6 Supporters of this bill make a good point that federal money is being wasted on ineffective “prevention” programs like the infamous “midnight basketball” program. However, H.R. 1279 in no way reduces funding for ineffective prevention programs. Instead, it spends more taxpayer money on unconstitutional crime programs. The sponsors of this bill could have attempted to stop wasting taxpayer funds on programs such as midnight basketball by defunding such prevention programs and using the funds to pay for the new programs created by H.R. 1279. money Bad Policy For Base Closings 25 May 2005    2005 Ron Paul 52:6 I think the savings issue is a red herring. Between 1995 and 2001, the last base closing, $6.5 billion was spent, and $6.1 billion was saved. So we are spending more money than we are saving in closing down these bases. money Bad Policy For Base Closings 25 May 2005    2005 Ron Paul 52:7 I have a quote here I want to read; it comes from a think tank, one of the defense policy think tanks. This to me is important. “The big story here is not going to be saving money; the big story is going to be preparing the force for future threats by moving it to more logical locations.” In other words, defending our borders, protecting our homeland, worry about defending this country is less important than spreading our troops and protecting the empire and expanding the empire and exposing us to greater danger. money Bad Policy For Base Closings 25 May 2005    2005 Ron Paul 52:8 This is an issue of policy. This is an issue of process, and this is a red herring when you think you are saving money. We are not going to be saving money in this process. We are just going to be giving an excuse to build bases around the world. money Bad Policy For Base Closings 25 May 2005    2005 Ron Paul 52:9 This is the time that we ought to reassess our policies and how we spend our money. This is why a 1-year delay is a perfect time to take time, stand back and figure out when we are going to get our troops home, when are we going to have a defense policy that defends this country and our borders rather than spreading ourselves so thinly around the world and building huge bases in foreign lands. money Military Appropriations 26 May 2005    2005 Ron Paul 53:3 Although I recognize the need for legitimate funds for military construction, I do remain concerned that the funds appropriated herein will be used to fund the construction of U.S. military installations overseas. At a time when we are closing dozens of military installations in the United States — installations that actually contribute to the defense of the United States — under the auspices of saving money, it is unconscionable to be spending money for the defense of foreign countries. money Military Appropriations 26 May 2005    2005 Ron Paul 53:4 I also strongly object to the appropriation of U.S.taxpayer funds for, as the bill states, “the acquisition and construction of military facilities and installations (including international military headquarters) and for related expenses for the collective defense of the North Atlantic Treaty Area.” NATO is a relic of the Cold War and most certainly has no purpose some fifteen years after the fall of the Soviet Union. As we saw in the NATO invasion of Yugoslavia, having outlived its usefulness as a defensive alliance, the Organization has become an arm of aggressive militarism and interventionism. NATO deserves not a dime of American taxpayer’s money, nor should the United States remain a member. money Public Safety Tax Cut Act 8 June 2005    2005 Ron Paul 54:5 Next, this legislation would also provide paid professional police and fire officers with a $1,000 per year tax credit. These professional public safety officers put their lives on the line each and every day, and I think we all agree that there is no way to properly compensate them for the fabulous services they provide. In America we have a tradition of local law enforcement and public safety provision. So, while it is not the role of our federal government to increase the salaries of these, it certainly is within our authority to increase their take-home pay by reducing the amount of money that we take from their pockets via federal taxation, and that is something this bill specifically does as well. money United States Should Leave World Trade Organization 9 June 2005    2005 Ron Paul 57:7 One other issue that I think those who defend the WTO and call themselves free traders ought to recognize is that when we concede the fact that there should be a trade-off, it means they really do not believe in free trade. If you believe in free trade and the people have the right to spend their money the way they want, it would be as simple as that. It would benefit that country, because you could get your goods and services cheaper. money United States Should Leave World Trade Organization 9 June 2005    2005 Ron Paul 57:16 So this is big government, pure and simple. It does not endorse free trade whatsoever. It endorses managed trade; and too often it is managed for the privileges of the very large, well-positioned companies. It does not recognize the basic principle that we should defend as a free society individuals ought to have the right to spend their money the way they want. That is what free trade is, and you can do that unilaterally without pain and suffering. money The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:6 In a truly defensive war, huge costs in terms of money, lives, and property are endured because so much is at stake. Total loss of one’s country is the alternative. money The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:19 Political leaders who needlessly dragged us into the war cannot and will not admit an error in judgment. In fact they do the opposite to prove they were right all along. Instead of winding down, the war gets a boost to prove the policy was correct and to bring the war to a victorious conclusion. This only motivates the resistance of those fighting the defensive side of the war. More money and more troops must be sacrificed before the policy changes. Using surrogate foreign troops may seem to cut domestic troop loses in the country starting the war, but will only prolong the agony, suffering, and costs and increase the need for even more troops. money The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:28 Americans have an especially unique ability to finance our war efforts while minimizing the immediate effect. As the issuer of the world’s reserve currency, we are able to finance our extravagance through inflating our dollars. We have the special privilege of printing that which the world accepts as money in lieu of gold. This is an invitation to economic disaster, permitting an ill-founded foreign policy that sets the stage for problems for years to come. A system of money that politicians and central bankers could not manipulate would restrain those with grandiose ideas of empire. money The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:29 The Federal Reserve was created in 1913, and shortly thereafter the Fed accommodated the Wilsonians bent on entering WWI by inflating and deficit financing that ill-begotten involvement. Though it produced the 1921 depression and many other problems since, the process subsequently has become institutionalized in financing our militarism in the 20 th Century and already in the 21 st . Without the Fed’s ability to create money out of thin air, our government would be severely handicapped in waging wars that do not serve our interests. The money issue and the ability of our government to wage war are intricately related. Anyone interested in curtailing wartime spending and our militarism abroad is obligated to study the monetary system, through which our government seductively and surreptitiously finances foreign adventurism without the responsibility of informing the public of its cost or collecting the revenues required to finance the effort. money The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:33 This ability to print the reserve currency of the world, and the willingness of foreigners to take it, causes gross distortions in our current account deficits and total foreign indebtedness. It plays a major role in the erosion of our manufacturing base, and causes the exporting of our jobs along with our dollars. Bashing foreigners, in particularly the Chinese and the Japanese, as the cause of our dwindling manufacturing and job base is misplaced. It prevents the evaluation of our own policies-- policies that undermine and increase the price of our own manufacturing goods while distorting the trade balance. Though we continue to benefit from the current circumstances, through cheap imports on borrowed money, the shaky fundamentals make our economy and financial system vulnerable to sudden and severe adjustments. Foreigners will not finance our excessive standard of living and our expensive war overseas indefinitely. It will end! What we do in the meantime to prepare for that day will make all the difference in the world for the future of freedom in this country. It’s the future of freedom in this country that is truly the legitimate responsibility of us as Members of Congress. money The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:34 Centuries ago the notion of money introduced the world to trade and the principle of division of labor, ushering in for the first time a level of economic existence above mere subsistence. Modern fiat money with electronic transactions has given an additional boost to that prosperity. But unlike sound commodity money, fiat money, with easy credit and artificially low interest rates, causes distortions and mal-investments that require corrections. The modernization of electronic global transfers, which with sound money would be beneficial, has allowed for greater distortion and debt to be accumulated-- setting the stage for a much more serious period of adjustment requiring an economic downturn, liquidation of debt, and reallocation of resources that must come from savings rather than a central bank printing press. money The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:40 If we did make these changes, we would not need to become isolationists, despite what many claim. Isolationism is not the only alternative to intervention in other nations’ affairs. Freedom works! Free markets supported by sound money, private property, and respect for all voluntary contracts can set an example for the world-- since the resulting prosperity would be significant and distributed more widely than any socialist system. Instead of using force to make others do it our way, our influence could be through the example we set that would motivate others to emulate us. Trade, travel, exchange of ideas, and friendly relationships with all those who seek friendship are a far cry from a protectionist closed border nation that would serve no one’s interest. money The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:41 This type of society would be greatly enhanced with a worldwide commodity standard of money. This would prevent the imbalances that are a great burden to today’s economy. Our current account deficits and total foreign indebtedness would not occur under an honest non-political commodity money. Competitive devaluations and abnormally fixed exchanged rates would not be possible as tools of protectionism. We can be certain that the distortions in trade balance and the WTO trade wars that are multiplying will eventually lead to a serious challenge to worldwide trade. The tragedy of trade wars is that they frequently lead to military wars between nations, and until the wealth is consumed and young men are no longer available to fight and die the process will cost plenty. money Belief In The Constitution Is A Conservative View 14 June 2005    2005 Ron Paul 60:6 Of course, I did mention in my prepared text that declaration of war is important but also if we would restrain, as the Constitution does, the monetary authorities from printing money at will to finance wars like this, I think we would be fighting a lot less wars. money An Article By Mr. Lee Jackson 14 June 2005    2005 Ron Paul 62:4 Distrust in the courts has upset the delicate balance between the legislature and the judiciary. When judges pick and choose the laws they will or will not enforce; when they dictate new law from the bench; when their standard strays from the Constitution and looks to current popular thinking and foreign decisions; or when judges bow before the force of political money during confirmation re-election cycles; when those things happen, citizens lose confidence in the ability to achieve justice, and turn to the legislature for relief. Therein lies new danger. money An Article By Mr. Lee Jackson 14 June 2005    2005 Ron Paul 62:7 A new premise seems to permeate the land: That all plaintiffs are suspect, and likely to be greedy money-grubbers forwarding spurious complaints. Such a premise does a disservice to juries whose members receive negligible compensation for their services and to the vast majority of plaintiffs who turn to courts as a last resort. money An Article By Mr. Lee Jackson 14 June 2005    2005 Ron Paul 62:18 The basis on which the Supreme Court decided that attorneys’ fees are taxed as income to plaintiffs is that plaintiffs pay attorneys; that the amount they pay comes to them as a result of the award; that money to pay attorneys was something they did not have prior to the award, and therefore coming, as it would from the award, must be income. The rationale is held irrelevant (in contingency cases) that attorneys receive payment only if and after an actual award is received and that there is shared risk between plaintiff and attorney. money Amendment No. 11 Offered By Mr. Paul 16 June 2005    2005 Ron Paul 66:8 But in their attack on the reform bill, they do say they support the policy changes. That is what I would like to emphasize here. Most people see the reform bill as a mere threat to the United Nations to shape up, or we are going to cut half of their funds. Yesterday we had a much more straightforward vote, because if you, also, believe in true reform, all those supporters of the reform bill should have supported the Hayworth amendment and just flat out cut half of the funding. But the reform bill says that, well, if you do certain things, we are going to give you your money. Of course, those who really like the U.N. find that offensive and think that is too intrusive on the functioning of the United Nations. money Statement on the Flag Burning Amendment June 22, 2005    2005 Ron Paul 71:22 Some claim that this is not an issue of private property rights because the flag belongs to the country. The flag belongs to everybody. But if you say that, you are a collectivist. That means you believe everybody owns everything. So why do American citizens have to spend money to obtain, and maintain, a flag if the flag is communally owned? If your neighbor, or the federal government, owns a flag, even without this amendment you do not have the right to go and burn that flag. If you are causing civil disturbances, you are liable for your conduct under state and local laws. But this whole idea that there could be a collective ownership of the flag is erroneous. money Introducing The Agriculture Education Freedom Act 27 June 2005    2005 Ron Paul 76:2 Think about this for a moment. These kids are trying to better themselves, earn some money, save some money and what does Congress do? We pick on these kids by taxing them. It is truly amazing that with all the hand- wringing in Congress over the alleged need to further restrict liberty and grow the size of government “for the children” we would continue to tax young people who are trying to lead responsible lives and prepare for the future. Even if the serious social problems today’s youth face could be solved by new Federal bureaucracies and programs, it is still unfair to pick on those kids who are trying to do the right thing. money Introducing The Agriculture Education Freedom Act 27 June 2005    2005 Ron Paul 76:4 It is time we stopped taxing youngsters who are trying to earn money to go to college by selling livestock they have raised through their participation in programs such as 4–H or Future Farmers of America. Therefore, I call on my colleagues to join me in supporting the Agriculture Education Freedom Act. money Introducing The Child Health Care Affordability Act 27 June 2005    2005 Ron Paul 80:7 Mr. Speaker, this Congress has a moral responsibility to provide tax relief so that low-income parents struggling to care for a sick child can better meet their child’s medical expenses. Some may say that we cannot enact the Child Health Care Affordability Act because it would cause the government to lose revenue. But, who is more deserving of this money, Congress or the working parents of a sick child? money Foreign Aid 28 June 2005    2005 Ron Paul 81:7 Does anybody remember oil companies coming here to get their oil pipelines protected, and we still protect them? This is a little private army that we sent down there. We have 800 troops and advisers in Colombia and spending these huge sums of money. Who else lobbied for Plan Colombia? Do my colleagues remember the debate on who would get to sell the helicopters? Would they be Black Hawks or Hueys? money Foreign Aid 28 June 2005    2005 Ron Paul 81:8 Then we wonder where the lobby is from. It is not from the American people. I will bet my colleagues nobody wrote to anybody on this side and said please make sure you spend this $100 million dollars; this would be tragic if you would not spend it because it is doing so much good. That does not happen. It is the lobbying behind the scenes of the special interests whose interests are served by us being down there. It is part of this military industrial complex which exists, and I do not believe it has had one ounce of success. I think it is a complete waste of money; and besides, just incidentally it is unconstitutional for us to do this. money Congress Lacks Authority To Sell Unocal 30 June 2005    2005 Ron Paul 82:4 I voted recently against allowing the EximBank to use U.S. taxpayer money to underwrite Chinese construction of nuclear power plants. I do not support subsidizing the Chinese government’s economic activities. But I also do not support the U.S. Congress involving itself in the private economic transactions of U.S. companies. money The Republican Congress Wastes Billions Overseas July 20, 2005    2005 Ron Paul 86:1 Mr. Speaker, I rise in strong opposition to this foreign relations authorization bill. Something has gone terribly wrong with our foreign policy when we feel we must take almost 21 billion dollars out of the pockets of the American taxpayer and ship it overseas. Imagine what the Founders of this country would say if they were among us to see this blatant disregard for the Constitution and for the founding principles of this country. This bill proceeds from the view that with enough money we can buy friends and influence foreign governments. But as history shows us, we cannot. The trillions of dollars we have shipped overseas as aid, and to influence and manipulate political affairs in sovereign countries, has not made life better for American citizens. It has made them much poorer without much to show for it, however. money The Republican Congress Wastes Billions Overseas July 20, 2005    2005 Ron Paul 86:5 This bill continues to fund organizations such as the National Endowment for Democracy, which as I have written before has very little to do with democracy. It is an organization that uses US tax money to actually subvert democracy, by showering funding on favored political parties or movements overseas. It underwrites color-coded “people’s revolutions” overseas that look more like pages out of Lenin’s writings on stealing power than genuine indigenous democratic movements. The NED used American taxpayer dollars to attempt to guarantee that certain candidates overseas are winners and others are losers in the electoral processes overseas. What kind of message do we think this sends to foreign states? The National Endowment for Democracy should receive no funding at all, but this bill continues to funnel tens of millions of dollars to that unaccountable organization. money The Republican Congress Wastes Billions Overseas July 20, 2005    2005 Ron Paul 86:8 Mr. Speaker, this is a shameful day for the US Congress. We are taking billions out of the pockets of Americans and sending the money overseas in violation of the Constitution. These are billions that will not be available for investment inside the United States: investment in infrastructure, roads, new businesses, education. These are billions that will not be available to American families, to take care of their children or senior relatives, or to give to their churches or favorite charities. We must not continue to spend money like there is no tomorrow. We are going broke, and bills like this are like a lead foot on the accelerator toward bankruptcy. money Why We Fight September 8, 2005    2005 Ron Paul 95:42 We should not fight because it’s simply not worth it. What are we going to get for nearly 2,000 soldier deaths and 20 thousand severe casualties? Was the $350 billion worth it? This is a cost that will be passed on to future generations through an expanded national debt. I’ll bet most Americans can think of a lot better ways to have spent this money. Today’s program of guns and butter will be more damaging to our economy than a similar program was in the 1960s, which gave us the stagflation of the 1970s. The economic imbalances today are much greater than they were in those decades. money Why We Fight September 8, 2005    2005 Ron Paul 95:62 A sad realism struck me recently reading how our Marines in Afghanistan must now rely on donkey transportation in their efforts at nation building and military occupation. Evidently the Taliban is alive and well, as Osama bin Laden remains in this region. But doesn’t this tell us something about our naïve assumption that our economic advantages and technical knowledge can subdue and control anybody? We’re traversing Afghan mountains on donkeys, and losing lives daily in Baghdad with homemade primitive bombs. Our power and dominance clearly is limited by the determination of those who see us as occupiers, proving that just more money and sophisticated weapons won’t bring us victory. Sophisticated weapons and the use of unlimited military power is no substitute for diplomacy designed to promote peace while reserving force only for defending our national interests. money Statement On H.R. 3673, Making Emergency Supplemental Appropriations For 2005 8 September 2005    2005 Ron Paul 96:1 Mr. PAUL. Mr. Speaker, I rise in opposition to this ill-considered $51.8 billion disaster relief appropriation. Many have come to the floor today to discuss how we must help the victims of this terrible disaster and its aftermath. But why do they think that the best way to do so is simply to write a huge check to the very government agency that failed so spectacularly? This does not make sense. We have all seen the numerous articles detailing the seemingly inexcusable mistakes FEMA made — before and after the hurricane. Yet, in typical fashion, Congress seems to think that the best way to fix the mess is to throw money at the very government agency that failed. money Statement On H.R. 3673, Making Emergency Supplemental Appropriations For 2005 8 September 2005    2005 Ron Paul 96:2 Mr. Speaker, considering the demonstrated ineptitude of government on both the Federal and State level in this disaster, the people affected by the hurricane and subsequent flood would no doubt be better off if relief money was simply sent directly to them or to community organizations dedicated to clean-up and reconstruction. Indeed, we have seen numerous examples of private organizations and individuals attempting to help their fellow Americans in so many ways over the last 10 days, only to be turned back by FEMA or held up for days by government red tape. We have seen in previous disasters how individuals and non- governmental organizations were often among the first to pitch in and help their neighbors and fellow citizens. Now, FEMA is sending these good Samaritans a troubling message: stay away, let us handle it. money Statement On H.R. 3673, Making Emergency Supplemental Appropriations For 2005 8 September 2005    2005 Ron Paul 96:4 Mr. Speaker, we see here once again the Federal Government attempting to impose a topdown solution to the disaster. No one is questioning from where this $52 billion will come. The answer, of course, is that the Federal Government is going to simply print the money up. There are no reductions in Federal spending elsewhere to free up this disaster aid. Rather, the money will come from a printing press. The economic devastation created by such a reckless approach may well be even more wide-reaching than the disaster this bill is meant to repair. money Statement On H.R. 3673, Making Emergency Supplemental Appropriations For 2005 8 September 2005    2005 Ron Paul 96:5 I ask my colleagues to consider more constructive ways to help New Orleans and the other affected areas recover from this tragedy. There are numerous approaches, such as the creation of no-tax enterprise zones, that would attract private enterprise and capital to the area and would result in a much quicker and more responsive recovery. The citizens of the affected area and the rest of the country deserve a more sustainable and financially rational approach than simply printing and spending money. money The Coming Category 5 Financial Hurricane September 15, 2005    2005 Ron Paul 98:3 Congress reacted to Katrina in the expected irresponsible manner. It immediately appropriated over $60 billion with little planning or debate. Taxes won’t be raised to pay the bill-- fortunately. There will be no offsets or spending reductions to pay the bill. Welfare and entitlement spending is sacrosanct. Spending for the war in Iraq and the military-industrial complex is sacrosanct. There is no guarantee that gracious foreign lenders will step forward, especially without raising interest rates. This means the Federal Reserve and Treasury will print the money needed to pay the bills. The sad truth is that monetary debasement hurts poor people the most-- the very people we saw on TV after Katrina. Inflating our currency hurts the poor and destroys the middle class, while transferring wealth to the ruling class. This occurs in spite of good intentions and misplaced compassion. money The Coming Category 5 Financial Hurricane September 15, 2005    2005 Ron Paul 98:5 Runaway inflation is a well-known phenomenon. It leads to political and economic chaos of the kind we witnessed in New Orleans. Hopefully we’ll come to our senses and not allow that to happen. But we’re vulnerable and we have only ourselves to blame. The flawed paper money system in existence since 1971 has allowed for the irresponsible spending of the past 30 years. Without a linkage to gold, Washington politicians and the Federal Reserve have no restraints placed on their power to devalue our money by merely printing more to pay the bills run up by the welfare-warfare state. money The Coming Category 5 Financial Hurricane September 15, 2005    2005 Ron Paul 98:6 This system of money is a big contributing factor in the exporting of American jobs, especially in the manufacturing industries. money The Coming Category 5 Financial Hurricane September 15, 2005    2005 Ron Paul 98:13 If Congress does not show some sense of financial restraint soon, we can expect the poor to become poorer; the middle class to become smaller; and the government to get bigger and more authoritarian-- while the liberty of the people is diminished. The illusion that deficits, printing money, and expanding the welfare and warfare states serves the people must come to an end. money Introduction Of The Affordable Gas Price Act 6 October 2005    2005 Ron Paul 99:7 Finally, the Affordable Gas Price Act creates a Federal study on how the abandonment of the gold standard and the adoption of freely floating currencies are affecting the price of oil. It is no coincidence that oil prices first became an issue shortly after President Nixon unilaterally severed the dollar’s last connection to gold. The system of fiat money makes consumers vulnerable to inflation and to constant fluctuations in the prices of essential goods such as oil. money The Iraq War 18 October 2005    2005 Ron Paul 104:15 It is time to say no to undeclared wars. It is time to say no to political and U.N. wars. It is time to say no to preemptive war. It is time to say no to nation building. It is time to say no to assuming it is our duty to make the world safe for democracy. It is time to say no to meddling in the affairs of others. It is time to say no to fighting countries that have never threatened our national security. It is time to stop financing extravagant war spending by printing more money. It is time to say yes to more sensible diplomacy. money Introducing The Improve Interoperable Communications For First Responders Act 20 october 2005    2005 Ron Paul 107:3 Rather than simply further burdening taxpayers, or increasing the already skyrocketing national debt, my legislation is financed through cuts in corporate welfare and foreign aid programs, which subsidize large corporations and even American businesses’ overseas competitors such as the Export-Import Bank use of taxpayer money to underwrite trade with countries such as Communist China. It is time for the Federal Government to begin prioritizing spending by cutting unnecessary programs that benefit powerful special interests in order to met our constitutional responsibilities to ensure America’s first responders can effectively respond to terrorists’ attacks. money Amendment No. 6 Offered By Mr. Paul — Part 1 26 October 2005    2005 Ron Paul 109:4 I think Members can see there is a problem with our GSEs. The debt is horrendous. Today, the administration sent a letter around and said that the debt of the GSEs totals $2.5 trillion, and they also guarantee in addition $2.4 trillion. That adds up to more money than the Federal Government has borrowed. So it is a tremendous amount of money and credit that is in the system; and people have become frightened about this, including chairman of the Federal Reserve Board, Alan Greenspan. money Amendment No. 6 Offered By Mr. Paul — Part 1 26 October 2005    2005 Ron Paul 109:9 This housing bubble, a housing program that we are starting up, how do we finance it? Well, we tax the GSEs. Instead of arguing the case for the marketplace and letting people earn money legitimately without subsidies, what we do, we keep allowing the system to continue. They do make profits, and then we tax them. We are talking about an additional tax, and this might very well be the reason the administration has come out against this bill, because of this new tax. money Amendment No. 6 Offered By Mr. Paul — Part 2 26 October 2005    2005 Ron Paul 110:3 I see one attempt is to deal with this problem that we face. Another attempt is we are deciding that we need more money directed into the housing industry, and of course your building friends like this, too. And those are Republican allies as well. The builders love this because we will pump more money into the market so they can make more profits. So it is another government housing project. From a market viewpoint, this is not good because we want the money in the market to be allocated purely by the market and not by government direction. money Big Lies and Little Lies November 2, 2005    2005 Ron Paul 116:4 The lies Scooter Libby may or may not have told deserve a thorough investigation. But in the scheme of things, the indictment about questions regarding the release of Valerie Plame’s name, a political dirty trick, is minor compared to the disinformation about weapons of mass destruction and other events that propelled us into an unnecessary war. Its costs — in life, suffering, and money — have proven to be prohibitive. money Statement on So-Called "Deficit Reduction Act" November 18, 2005    2005 Ron Paul 123:7 I also question the priorities of singling out programs, such as Medicaid and food stamps, that benefit the neediest Americans, while continuing to increase spending on corporate welfare and foreign aid. Just two weeks ago, Congress passed a bill sending $21 billion overseas. That is $21 billion that will be spent this fiscal year, not spread out over five years. Then, last week, Congress passed, on suspension of the rules, a bill proposing to spend $130 million dollars on water projects--not in Texas, but in foreign nations! Meanwhile, the Financial Services Committee, on which I sit, has begun the process of reauthorizing the Export-Import Bank, which uses taxpayer money to support business projects that cannot attract capital in the market. Mr. Speaker, the Export-Import Bank’s biggest beneficiaries are Boeing and communist China. I find it hard to believe that federal funding for Fortune 500 companies and China is a higher priority for most Americans than Medicaid and food stamps. money The Blame Game December 7, 2005    2005 Ron Paul 124:2 The welfare state is unmanageable and severely overextended. In spite of hopes that supposed reform would restore sound financing and provide for all the needs of the people, it’s becoming more apparent every day that the entire system of entitlements is in a precarious state and may well collapse. It doesn’t take a genius to realize that increasing the national debt by over six hundred billion dollars per year is not sustainable. Raising taxes to make up the shortfall is unacceptable, while continuing to print the money needed will only accelerate the erosion of the dollar’s value. money The Blame Game December 7, 2005    2005 Ron Paul 124:42 The national debt has increased enormously, and our dependence on China has increased significantly as our federal government borrows more and more money. money Foreign Policy 17 December 2005    2005 Ron Paul 128:2 In spite of hopes that supposed reform would restore sound financing and provide for all the needs of the people, it is becoming more apparent every day that the entire system of entitlements is in a precarious state and may well collapse. It does not take a genius to realize that increasing the national debt by over $600 billion per year is not sustainable. Raising taxes to make up the shortfall is unacceptable, while continuing to print the money needed will only accelerate the erosion of the dollar’s value. money Foreign Policy 17 December 2005    2005 Ron Paul 128:27 The Middle East is far more unstable, and oil supplies are less secure, not more. Historic relics of civilization protected for thousands of years were lost in the flash while oil wells were secured. U.S. credibility in the world has been severely damaged, and the national debt has increased enormously, and our dependence on China has increased significantly as our Federal Government borrows more and more money. money Return To Constitutional Government 1 February 2006    2006 Ron Paul 1:2 This measure does nothing to address the root cause of the scandals — the ever-growing size and power of the Federal Government. As long the Federal Government continues to regulate, tax, and subsidize the American people, there will be attempts to influence those who write the laws and regulations under which the people must live. Human nature being what it is, there will also be those lobbyists and policymakers who will manipulate the power of the regulatory state to enrich themselves. As I have said before, and I fear I will have plenty of opportunity to say again, the only way to get special interest money and influence out of politics is to get the money and power out of Washington. Instead of passing new regulations and laws regulating the people’s right to petition their government, my colleagues should refuse to vote for any legislation that violates the constitutional limits on Federal power or enriches a special interest at the expense of American taxpayers. Returning to constitutional government is the only way to ensure that our republican institutions will not be corrupted by powerful interests seeking special privileges. money Eliminating Foreign Aid That Helps Manipulate Elections 15 February 2006    2006 Ron Paul 2:1 Mr. PAUL. Mr. Speaker, I intend to vote in favor of this legislation because I support any statement by Congress indicating hesitation to send U.S. taxpayer money abroad. money Eliminating Foreign Aid That Helps Manipulate Elections 15 February 2006    2006 Ron Paul 2:2 Unfortunately this legislation is motivated by politics rather than a genuine desire to limit unconstitutional foreign aid programs. The wording of the resolution itself does not close the door to providing U.S. aid to the Palestinians even if Hamas, the political party that won recent parliamentary elections, takes its seats in parliament without altering its stated policies toward Israel. Indeed, the legislation states that “no United States assistance should be provided directly to the Palestinian Authority” if Hamas occupies a majority of seats in the Palestinian parliament. This obviously suggests that the money can be spent “indirectly” in any case. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:3 Not only did gold facilitate exchange of goods and services, it served as a store of value for those who wanted to save for a rainy day. Though money developed naturally in the marketplace as governments grew in power, they assumed monopoly control over money. Sometimes governments succeeded in guaranteeing the quality and purity of gold; but in time, governments learned to outspend their revenues. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:8 Today, the principles are the same, but the process is quite different. Gold is no longer a currency of the realm; paper is. The truth now is he who prints the money makes the rules, at least for the time being. Although gold is not used, the goals are the same: compel foreign countries to produce and subsidize the country with military superiority and control over the monetary printing presses. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:9 Since printing paper money is nothing short of counterfeiting, the issuer of the international currency must always be the country with the military might to guarantee control over the system. This magnificent scheme seems the perfect system for obtaining perpetual wealth for the country that issues the de facto world currency. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:12 When paper money is rejected, or when gold runs out, wealth and political stability are lost. The country then must go from living beyond its means to living beneath its means until the economic and political systems adjust to the new rules; rules no longer written by those who ran the now defunct printing press. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:17 This transition only could have occurred with a dramatic change in monetary policy and the nature of the dollar itself. Congress created the Federal Reserve system in 1913. Between then and 1971, the principle of sound money was systematically undermined. Between 1913 and 1971, the Federal Reserve found it much easier to expand the money supply at will for financing war or manipulating an economy with little resistance from Congress while benefiting the special interests that influence Congress. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:18 Dollar dominance got a huge boost after World War II. We were spared the destruction that so many other nations suffered, and our coffers were filled with the world’s gold. But the world chose not to return to the discipline of the gold standard, and the politicians applauded. Printing money to pay the bills was a lot more popular than taxing or restraining or unnecessary spending. In spite of the short-term benefits, imbalances were institutionalized for decades to come. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:23 Though the new policy was even more deeply flawed, it nevertheless opened the door for dollar hegemony to spread. Realizing the world was embarking on something new and mind- boggling, elite money managers with especially strong support from U.S. authorities struck an agreement with OPEC to price oil in U.S. dollars exclusively for all worldwide transactions. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:29 Federal Chairman Alan Greenspan, on several occasions before the House Banking Committee, answered my challenges to him about his previously held favorable views on gold by claiming that he and other central bankers had gotten paper money, that is the dollar system, to respond as if it were gold. Each time I strongly disagreed and pointed out that if they had achieved such a feat they would have defied centuries of economic history regarding the need for money to be something of real value. He smugly and confidently concurred with this. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:33 Once again, the effort between 1980 and 2000 to fool the market as to the true value of the dollar proved unsuccessful. In the past 5 years, the dollar has been devalued in terms of gold by more than 50 percent. You just cannot fool all the people all the time, even with the power of the mighty printing press and the money-creating system of the Federal Reserve. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:38 Price inflation is raising its ugly head, and the NASDAQ bubble, generated by easy money, has burst. The housing bubble likewise created is deflating. Gold prices have doubled, and Federal spending is out of sight, with zero political will to rein it in. The trade deficit last year was over $728 billion. A $2 trillion war is raging, and plans are being laid to expand the war into Iran and possibly Syria. The only restraining force will be the world’s rejection of the dollar. It is bound to come and create conditions worse than 1979–1980, which required 21 percent interest rates to correct. But everything possible will be done to protect the dollar in the meantime. We have a shared interest with those who hold our dollars to keep the whole charade going. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:52 For the most part, the true victims are not aware of how they pay the bills. The license to create money out of thin air allows the bills to be paid through price inflation. American citizens as well as average citizens of Japan and China and other countries suffer from price inflation, which represents the tax that pays the bills for our military adventures. That is, until the fraud is discovered and the foreign producers decide not to take dollars nor hold them very long in payment for those goods. Everything possible is done to prevent the fraud of the monetary system from being exposed to the masses who suffer from it. If oil markets replace dollars with euros, it would in time curtail our ability to continue to print, without restraint, the world’s reserve currency. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:54 The same thing will happen to us if we do not change our ways. Though we do not occupy foreign countries to directly plunder, we nevertheless have spread our troops across 130 nations of the world. Our intense effort to spread our power in the oil-rich Middle East is not a coincidence. But, unlike the old days, we do not declare direct ownership of the natural resources. We just insist that we can buy what we want and pay for it with our paper money. Any country that challenges our authority does so at great risk. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:56 Our whole economic system depends on continuing the current monetary arrangement, which means recycling the dollar is crucial. Currently, we borrow over $700 billion every year from our gracious benefactors, who work hard and take our paper for their goods. Then we borrow all the money we need to secure the empire, which includes the entire DOD budget of $450 billion, plus more. The military might we enjoy becomes the backing of our currency. There are no other countries that can challenge our military superiority, and therefore they have little choice but to accept the dollars we declare are today’s “gold.” This is why countries that challenge the system, like Iraq, Iran, and Venezuela, become targets of our plans for regime change. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:63 Using force to compel people to accept money without real value can only work for a short time. It ultimately leads to economic dislocation, both domestic and international, and always ends with a price to be paid. The economic law that honest exchange demands only things of real value as currency cannot be repealed. The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold or its equivalent for their oil rather than dollars or Euros. The sooner the better. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:86 Today, though, any new rules designed to restrain special interest favoritism will only push the money further under the table. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:92 Excessive consumption using borrowed money is hardly the way to secure a sound economy. Instead of reining in government spending, Congress remains oblivious to the financial dangers and panders to special interests by offering no resistance whatsoever to every request for new spending. Congress spends $2.7 trillion annually in an attempt to satisfy everyone’s demands. The system has generated over $200 trillion in derivatives. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:95 The biggest ripoff of all, the paper money system that is morally and economically equivalent to counterfeiting, is never questioned. It is the deceptive tool for transferring billions from the unsuspecting poor and middle class to the special-interest rich, and in the process the deficit-propelled budget process supports the spending demands of all the special interests, left and right, welfare and warfare, while delaying payment to another day and sometimes even to another generation. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:97 But if the Federal Reserve did not pick up the slack and create huge amounts of new credit and money out of thin air, interest rates would rise and call a halt to the charade. The people who suffer from a depreciated dollar don’t understand why they suffer, while the people who benefit promote the corrupt system. The wealthy clean up on Wall Street and the unsophisticated buy in at the market tops. Wealth is transferred from one group to another, and it is all related to the system that allows politicians and the central banks to create money out of thin air. It is literally legalized counterfeiting. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:98 Is it any wonder jobs go overseas? True capital only comes from savings, and Americans save nothing. We only borrow and consume. A counterfeiter has no incentive to take his newly created money and build factories. The incentive for Americans is to buy consumers goods from other countries whose people are willing to save and invest in their factories and jobs. The only way we can continue this charade is to borrow excess dollars back from the foreign governments who sell us goods and perpetuate the pretense of wealth that we enjoy. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:99 The system of money contributes significantly to the problems of illegal immigration. On the surface, immigrants escaping poverty in Mexico and Central America come here for the economic opportunity that our economy offers. However, the social services they receive, including education and medical benefits, as well as the jobs they get, are dependent on our perpetual indebtedness to foreign countries. When the burden of debt becomes excessive, this incentive to seek prosperity here in the United States will change. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:100 The prime beneficiaries of a paper money system are those who use the money early, governments, politicians, bankers, international corporations and the military industrial complex. Those who suffer most are the ones at the end of the money chain, the people forced to use depreciated dollars to buy urgently needed goods and services to survive. And guess what? By then, their money is worth less, prices soar, and their standard of living goes down. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:107 Whether government programs are promoted for good causes, helping the poor, or bad causes, permitting a military industrial complex to capitalize on war profits, the principles of the market are undermined. Eventually, nearly everyone becomes dependent on the system of deficits, borrowing, printing press money, and the special interest budget process that distributes the loot by majority vote. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:109 The question is, what will it take to bring about the changes in policy needed to reverse this dangerous trend? The answer is, quite a lot; and, unfortunately, it is not on the horizon. It probably will not come until there is a rejection of the dollar as the safest and strongest world currency and a return to commodity money like gold and silver to return confidence. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:110 The Abramoff-type scandals come and go in Washington, patched over with grandiose schemes and reform that amount to nothing more than government and congressional mischief. But our efforts should be directed toward eliminating the greatest of all frauds, printing press money that creates the political conditions breeding the vultures and leaches who feed off the corrupt system. money The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:111 Counterfeiting money never creates wealth. It only steals wealth from the unsuspecting. The Federal Reserve creation of money is exactly the same. Increasing the dollars in circulation can only diminish the value of each existing dollar. Only production and jobs can make a country wealthy in the long run. Today, it is obvious our country is becoming poorer and more uneasy as our jobs and capital go overseas. money Debt Addiction 1 March 2006    2006 Ron Paul 6:5 The authority to accumulate deficits provides a tremendous incentive to politicians to increase spending. Total spending is the real culprit. The more government taxes, borrows, or inflates, the less chance the people have to spend their resources wisely. The way government spends money also causes great harm. By their very nature, governments are inefficient and typically operate as we recently witnessed with FEMA in Louisiana, Mississippi, and Texas over the last 6 months. Governments are bureaucratic, inefficient, and invite fraud. This is just as true in foreign affairs as it is in domestic affairs. Throughout history, foreign military adventurism has been economically harmful for those nations bent on intervening abroad. Our Nation is no different. money Introduction Of The Sunshine In Monetary Policy Act 7 March 2006    2006 Ron Paul 10:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Sunshine in Monetary Policy Act, which requires the Federal Reserve to resume reporting the monetary measure known as M3. M3 consists of M1 (M1 is currency in circulation plus travelers’ checks, demand deposits, Negotiable Order of Withdrawal (NOW) accounts, and similar interest-earning checking account balances) plus M2 (M2 is M1 plus household holdings of savings deposits, small time deposits, and retail money market mutual funds balances except for balances held in IRA and Keogh accounts) plus institutional money market mutual fund balances and managed liabilities of deposits consisting of large time deposits, repurchase agreements, and Eurodollars. money Introduction Of The Sunshine In Monetary Policy Act 7 March 2006    2006 Ron Paul 10:2 The Federal Reserve Board has recently announced it will stop reporting M3, thus depriving Congress and the American people of the most comprehensive measure of the money supply. The cessation of Federal Reserve’s weekly M3 report will make it more difficult for policymakers, economists, investors, and the general public to learn the true rate of inflation. As Nobel laureate Milton Friedman famously said, “inflation is always and everywhere a monetary phenomenon.” Therefore, having access to a comprehensive measure of the money supply like M3 is a vital tool for those seeking to track inflation. Thorsten Polleit, honorary professor at HfB-Business School of Finance and Management, in his article “Why Money Supply Matters” posted on the Ludwig von Mises Institute’s website mises.org, examined the relationship between changes in the money supply and inflation and concluded that “money supply signals might actually be far more important for inflation — even in the short-term — than current central bank practice suggests,” thus demonstrating the importance of the M3 aggregate. money Introduction Of The Sunshine In Monetary Policy Act 7 March 2006    2006 Ron Paul 10:3 The Federal Reserve Board has claimed neither policymakers nor the Federal Reserve staff closely track M3. Even if M3 is not used by Federal Reserve Board economists or legislators, many financial services professionals whose livelihoods depend on their ability to obtain accurate information about the money supply rely on M3. For example, my office has been contacted by a professional money manger complaining that the Federal Reserve Board’s discontinuing M3 reports will make it difficult for him to do his job. money Introduction Of The Sunshine In Monetary Policy Act 7 March 2006    2006 Ron Paul 10:5 Economists and others who are following M3 have become increasingly concerned about inflation because last year the rate of M3 rose almost twice as fast as other monetary aggregates. This suggests that the inflation picture is not as rosy as the Federal Reserve would like Congress and the American people to believe. Discontinuing reporting the monetary aggregate that provides the best evidence that the Federal Reserve Board has not conquered inflation suggests to many people that the government is trying to conceal information about the true state of the economy from the American people. Brad Conrad, a professor of investing who has also worked with IBM, CDC, and Amdahl, spoke for many when he said, “It [the discontinuance of M3] is unsettling. It detracts from the transparency the Fed preaches and adds to the suspicion that the Fed wants to hide anything showing money growth high enough to fuel inflation...” Discontinuing reporting M3 will only save 0.00000699% of the Federal Reserve Board’s yearly budget. This savings hardly seems to justify depriving the American people of an important measurement of money supply, especially since Congress has tasked the Federal Reserve Board with reporting on monetary aggregates. money Introduction Of The Sunshine In Monetary Policy Act 7 March 2006    2006 Ron Paul 10:7 Mr. Speaker, knowledge of the money supply is one of the keys to understanding the state of the economy. The least the American people should expect from the Federal Reserve Board is complete and accurate information regarding the money supply. I urge my colleagues to ensure that the American people can obtain that information by cosponsoring the Sunshine in Monetary Policy Act. money Illegal Drug Problem — Part 2 9 March 2006    2006 Ron Paul 13:9 So no matter how well-intended legislation like this is, it tends to have too many unintended consequences, it costs too much money. And we fail to realize that we in this country live with a greater amount of personal liberty and respect for State and local law enforcement, we had less drug problems. Think about it. Through the latter part of the 18th century, the 19th century, the early part of the 20th century, essentially no laws, and we had a lot less problems. money Opposes Supplemental Spending Bill 15 March 2006    2006 Ron Paul 15:6 Mr. Chairman, I am offering an amendment to this “emergency” supplemental that reduces some of the non-emergency “emergencies” by $500 million and allocates that money for the recovery of the State of Texas from Hurricanes Katrina and Rita. Additionally, my amendment will take another half-billion dollars from the non-emergency portions of this bill and apply it toward the Federal deficit. money Opposes Supplemental Spending Bill 15 March 2006    2006 Ron Paul 15:7 The real emergency is the rate that this government is spending money we do not have on policies that we cannot afford while ignoring what should be our real priorities. money Tribute To Harry Browne 15 March 2006    2006 Ron Paul 16:2 Harry first came to public attention in the 1970 when he penned a best-selling investment book, How You Can Profit From the Coming Devaluation, which foresaw President Richard Nixon’s abandonment of the gold standard and the ways the American economy would be damaged by the inevitable resulting inflation. Harry’s book helped many Americans survive, and even profit, during the economic troubles of the seventies. It also introduced millions of people to the insights developed by followers of the Austrian school of economics regarding the dangers fiat currency poses to both prosperity and liberty posed by fiat. How You Can Profit From the Coming Devaluation is generally recognized as the founding document of the hard money movement, which combined the insights of the Austrian economists with a practical investment strategy. money Amendment No. 9 Offered By Mr. Paul — Part 2 16 March 2006    2006 Ron Paul 18:2 Mr. PAUL. Mr. Chairman, my amendment is offered in an attempt to save some money. If my amendment were to pass, we would cut $500 million from this appropriation. Everybody knows that this is a huge appropriations bill and that it is a supplemental. It does not fall under the category of the budget rules. It is $92 billion. It involves the finances of our military approach to our foreign policy around the world, which is two-thirds of this funding. The other third, 19 or $20 billion is for domestic use. It is a huge sum of money. And we are doing this at a time when we are running a deficit, our national debt at least is going up over $600 billion a year, and we are concerned this week about raising the national debt limit to over $9 trillion. money Amendment No. 9 Offered By Mr. Paul — Part 2 16 March 2006    2006 Ron Paul 18:4 The major point I make here is by cutting $1 billion from the military portion of the bill it makes the point that we spend way too much on military operations. We spend more on military operations around the world than all the other countries of the world put together. And we do not have a lot to show for it. When you think about what has happened in Afghanistan, the problems there, what is happening in Iraq and the potential problems that are coming in Iran; yet the money is continuing to be spent in this reckless manner. money Amendment No. 9 Offered By Mr. Paul — Part 2 16 March 2006    2006 Ron Paul 18:6 So to me, this is an approach to emphasize the importance of foreign policy, that this notion that we are in the business of nation-building, and that we are the policemen of the world, and that we should reconsider that and save money. At the same time, we could reduce our deficit while actually increasing funding for some of the serious problems that we have in this country. So to me, it sounds rather logical to do this. To cut things from, say, building roads in Liberia. Yes, Liberia needs money, but what about the people that have been hit by the hurricanes? They need some money, too. And the way we do it always involves deficit financing. money Amendment No. 9 Offered By Mr. Paul — Part 2 16 March 2006    2006 Ron Paul 18:7 My approach emphasizes the need to cut in the places less important than any other places, spend the money here at home, and end up actually cutting back on the deficit financing. Otherwise we are going to continue with this process. I see no serious attempt whatsoever, when we bring up supplemental appropriations bills like this, to rein in the spending and even to pretend that we are cutting. This whole idea of putting domestic spending together with military spending is not a ploy to maybe reduce spending. It is the ploy to make sure that people are trapped into voting for both and nobody can vote against the domestic spending, and nobody can vote against the military spending. And yet, of course, spending is excessive in both areas. money Amendment No. 9 Offered By Mr. Paul — Part 2 16 March 2006    2006 Ron Paul 18:8 But my amendment, the way it works, emphasizes mostly cutting the militarism and the type of foreign policy that we finance around the world that has so many ramifications and unintended consequences and so much blow-back, that it literally hurts our national defense and ends up costing us so much more money. money Making The World Safe For Christianity 28 March 2006    2006 Ron Paul 19:8 This hypocrisy is rarely recognized by the American people. It is much more comfortable to believe in slogans, to believe that we are defending our goodness and spreading true liberty. We accept this and believe strongly in the cause, strongly enough to sacrifice many of our sons and daughters and stupendous amounts of money to spread our ideals through force. money Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:52 Excessive spending to finance the war causes deficits to explode. There are never enough tax dollars available to pay the bills, and since there are not enough willing lenders and dollars available, the Federal Reserve must create new money out of thin air and new credit for buying Treasury bills to prevent interest rates from rising too rapidly. Rising rates would tip off everyone that there are not enough savings or taxes to finance the war. money Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:53 This willingness to print whatever amount of money the government needs to pursue the war is literally inflation. Without a fiat monetary system, wars would be very difficult to finance since the people would never tolerate the taxes required to pay for it. Inflation of the money supply delays and hides the real cost of war. The result of the excessive creation of new money leads to the higher cost of living everyone decries and the Fed denies. Since taxes are not levied, the increase in prices that results from printing too much money is technically the tax required to pay for the war. money Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:58 Though many Americans are starting to feel the economic pain of paying for this war through inflation, the real pain has not yet arrived. We generally remain fat and happy with a system of money and borrowing that postpones the day of reckoning. Foreigners, in particular the Chinese and Japanese, gladly participate in the charade. We print the money and they take it, as do the OPEC Nations, and provide us with consumer goods and oil. Then they loan the money back to us at low interest rates, which we use to finance the war and our housing bubble and excessive consumption. This recycling and perpetual borrowing of inflated dollars allow us to avoid the pain of high taxes to pay for our war and welfare spending. It is fine until the music stops and the real costs are realized, with much higher interest rates and significant price inflation. That is when outrage will be heard and the people will realize we cannot afford the humanitarianism of the neo-conservatives. money Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:60 Today’s economic problems, caused largely by our funny money system, won’t be solved by altering exchange rates to favor us in the short run or by imposing high tariffs. Only sound money with real value will solve the problems of competing currency devaluations and protectionist measures. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:6 Buying gold and holding it is somewhat analogous to converting one’s saving into $100 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 is a big difference between the two, however, since by holding paper money, one loses purchasing power. The purchasing power of commodity money, that is gold, however, goes up if the government devalues the circulating paper currency. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:8 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 the 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 is more attractive than trying to save wealth in the form of a fiat currency, even when earning some nominal interest. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:12 The belief that money created out of thin air can work economic miracles if only properly managed is pervasive in the District of Columbia. In many ways, we should not 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:13 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 decades have gained the knowledge necessary to make paper money respond as if it were gold. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:15 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 is fascinating that the European central banks sold gold while the Asian central banks bought it over the last several years. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:16 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:21 Though there is a strong correlation, it is 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:23 The incentive for central bankers to create new money out of thin air is two-fold. One is to practice central planning through the manipulation of interest rates. The second is to monetize the escalated Federal debt politicians create and thrive on. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:25 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 future depreciation of the dollar in terms of gold. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:27 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 monetary aggregates 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:29 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:30 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:31 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 this Congress and the administration to rein in runaway spending. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:38 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 complex all agree on the so- called benefits bestowed by the Fed’s power to counterfeit fiat money. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:41 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 the war. 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:46 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:48 In wartime many nations actually operated counterfeiting programs to undermine the 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 to ourselves with the all the disadvantages that would occur if others did it to us. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:49 Today we hear threats from some Arab, Muslim and some 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:50 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:51 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:56 Just as empires are self-limiting in terms of money and manpower, so, too, is a monetary system based on illusion and fraud. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:57 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:58 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 that tax is regressive in nature, penalizing the poor and the middle class more than the rich and the 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:59 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:64 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 high oil prices and profits cause inflation. Inflation of the money supply causes higher prices. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:65 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:66 The Founders understood this great danger and voted overwhelmingly to reject “emitting bills of credit,” the term they used for paper money or fiat currency. It is too bad the knowledge and advice of our Founders and their mandate in the Constitution are ignored, and it is ignored at 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:67 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:68 Certainly geopolitical 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:69 Here are a few particular things that we should remember: if one endorses small government and maximum liberty, one must support commodity money. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:71 Deficit financing by government is severely restricted by sound money. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:73 Saving and thrift are encouraged by gold standard and discouraged by paper money. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:74 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:76 Paper money permits the regressive inflation tax to be passed off on the poor and the middle class. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:77 Speculative financial bubbles are characteristic of paper money, not gold. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:78 Paper money encourages economic and political chaos, which subsequently causes a search for scapegoats rather than blaming the central bank. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:79 Dangerous protectionist measures frequently are implemented to compensate for the dislocations caused by paper money. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:80 Paper money, inflation, and the conditions they create contribute to the problems of illegal immigration. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:88 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:89 A sharply rising gold price is a vote of no confidence in the 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. money Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:91 If we care about the financial system, the tax system, and the monumental debt we are 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. money Plan Colombia 25 April 2006    2006 Ron Paul 24:1 Mr. PAUL. Mr. Speaker, I rise to introduce the following article detailing the complete failure of “Plan Colombia” into the CONGRESSIONAL RECORD. As the article points out, despite more than 4 billion dollars being sent to Colombia to fight the “war on drugs,” the coca crop grew by 21 percent last year. After six years of massive wealth transfers from U.S. taxpayers to the Colombian government, not only has no progress been made, but in fact things are getting worse. Unfortunately, with the way things are done in Washington, this failure of “Plan Colombia” will likely result in calls for even more money to be tossed in the black hole of the drug war. It would be far better to learn from our mistakes and abandon the failed “Plan Colombia.” money Plan Colombia 25 April 2006    2006 Ron Paul 24:17 The centerpiece of the U.S. anti-drug strategy here is a controversial aerial-eradication program in which crop-dusters, escorted by helicopter gunships, bombard coca plants with chemical defoliants. But the program costs about $200 million annually and many critics say the money would be better spent elsewhere. The idea of eradication is to persuade peasant farmers to give up growing coca and to plant legal crops. But funding by the U.S. and Colombian governments for crop-substitution programs pale in comparison to the eradication budget and most efforts to develop alternatives have failed. money Disadvantages To Intervention 26 April 2006    2006 Ron Paul 26:5 But I have no qualms about the goals of the authors of this legislation. They would like to see freedom in Iran. I would, too. It is just that I believe the use of force backfires on us, and when we use force such as sanctions and subsidizing and giving money to dissidents, what we really do is the opposite of what we want. Those individuals who are trying to promote more freedom in Iran actually are forced to ally themselves with the radicals, so instead of undermining the system, it has made it worse. It is always argued that they will welcome us when we march in as liberators, and Iraq proved that that was not the case. Iran won’t be much better. money Bill Would Authorize Force 26 April 2006    2006 Ron Paul 31:4 Also, this bill has money in it, and it is open-ended, an authorization of appropriation. There is authorized to be appropriated to the Department of State such sums as may be necessary to carry out this section. And what is this section talking about? Subsidies and funding of dissident groups to go in there and undermine the Iranian government. money Bill Would Authorize Force 26 April 2006    2006 Ron Paul 31:11 But I am asking you to reconsider the fact that moving in this direction is the same thing as we did against Iraq, and it won’t do us any good. It is going to cost us a lot of money, and it is going to cost a lot of lives, and it is un-American. It is not constitutional. It is not moral. We should not pursue this type of foreign policy. We should take care of ourselves, and we should be more friendly with nations. We should be willing to trade. And if you are concerned about the world, why not set a good example? When our house is clean, when we have a good democracy and a worthy Republic, and we do well, believe me, they will want to emulate us. money What To Do About Soaring Oil Prices 2 May 2006    2006 Ron Paul 32:7 Third, we must remember that prices of all things go up because of inflation. Inflation, by definition, is an increase in the money supply. The money supply is controlled by the Federal Reserve and responds to the deficits Congress creates. When deficits are excessive, as they are today, the Fed creates new dollars out of thin air to buy Treasury bills and keeps interest rates artificially low. But when new money is created out of nothing, the money already in circulation loses value. money What To Do About Soaring Oil Prices 2 May 2006    2006 Ron Paul 32:9 Exploding deficits due to runaway entitlement spending and the cost of dangerous militarism create pressure for the Fed to inflate the money supply. This contributes greatly to the higher prices we all claim to oppose. If we want to do something about gas prices, we should demand and vote for greatly reduced welfare and military spending, a balanced budget, and fewer regulations that interfere with the market development of alternative fuels. We also should demand a return to a sound commodity monetary standard. All subsidies and special benefits to energy companies should be ended; and, in the meantime, let’s eliminate Federal gas taxes at the pump. money Jack Abramoff Scandal 3 May 2006    2006 Ron Paul 33:1 Mr. PAUL. Mr. Chairman, the public outrage over the Jack Abramoff scandal presented Congress with an opportunity to support real reform by addressing the root cause of the corruption: the amount of money and power located in Washington, D.C. A true reform agenda would focus on ending federal funding for unconstitutional programs, beginning with those programs that benefit wealthy corporations and powerful special interests. Congress should also change the way we do business in the House by passing the Sunlight Rule (H. Res. 709). The Sunlight Rule ensures that members of the House of Representatives and the American public have adequate time to read and study legislation before it is voted upon. Ending the practice of rushing major legislation to the House floor before members have had a chance to find out the details of bills will do more to improve the legislative process and restore public confidence in this institution than will imposing new registration requirements on lobbyists or making staffers waste their time at an “ethics class.” money Jack Abramoff Scandal 3 May 2006    2006 Ron Paul 33:6 Earmarks, like most of the problems H.R. 4975 purports to deal with, are a symptom of the problem, not the cause. The real problem is that the United States government is too big, spends too much, and has too much power. When the government has the power to make or break entire industries by changing one regulation or adding or deleting one paragraph in an appropriation bill it is inevitable that people will seek to manipulate that power to their advantage. Human nature being what it is, it is also inevitable that some people seeking government favors will violate basic norms of ethical behavior. Thus, the only way to effectively address corruption is to reduce the size of government and turn money and power back to the people and the several states. money National Defense Authorization Act For Fiscal Year 2007 11 May 2006    2006 Ron Paul 35:5 This legislation will send almost two billion American taxpayer dollars to Central and South America in the hopes that the production of drugs overseas will be curtailed. We do know that much of the money spent on Plan Colombia and similar programs over the past few years has not made much of a dent on drug cultivation, but that much of it is likely being skimmed off by corrupt leaders overseas. There must be a better — and less expensive — way to deal with this problem than sending this much money overseas. money Introduction Of The Steel Financing Fairness Act 15 June 2006    2006 Ron Paul 44:4 Meanwhile, OPIC has provided almost $6 billion of the taxpayers’ money to leading steel exporters. Thus, the American taxpayer has provided at least $26 billion worth of support to the countries that are the leading competitors of the domestic steel industry. This does not count the funds provided these countries by the IMF. Since money is fungible, the practical effect of providing aid to countries which practice industrial policy is to free up resources these governments can use to further subsidize their steel industries. Thus, taxpayer dollars sent to foreign governments and industries can benefit foreign steel manufacturers even if American taxpayer money is not sent to directly benefit those industries. money Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:29 The economic impossibility of this system guarantees that the harder government tries to satisfy the unlimited demands, the worse the problems become. We won’t be able to pay the bills forever, and eventually our ability to borrow and print new money must end. This dependency on government will guarantee anger when the money runs out. Today we’re still able to borrow and inflate, but budgets are getting tighter and people sense serious problems lurking in the future. This fear is legitimate. No easy solution to our fiscal problems is readily apparent, and this ignites anger and apprehension. money Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:41 When people see a $600 million embassy being built in Baghdad, while funding for services here in the United States is hard to obtain, they become angry. They can’t understand why the money is being spent, especially when they are told by our government that we have no intention of remaining permanently in Iraq. money Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:46 If the truth is admitted, it would appear that the lives lost and the money spent have been in vain. Instead, more casualties must be sustained to prove a false premise. What a tragedy! If the truth is admitted, imagine the anger of all the families that already have suffered such a burden. That burden is softened when the families and the wounded are told their great sacrifice was worthy, and required to preserve our freedoms and our Constitution. money Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:78 The solution to this mess is not complicated; but the changes needed are nearly impossible for political reasons. Sound free market economics, sound money, and a sensible foreign policy would all result from strict adherence to the Constitution. If the people desired it, and Congress was filled with responsible members, a smooth although challenging transition could be achieved. Since this is unlikely, we can only hope that the rule of law and the goal of liberty can be reestablished without chaos. money Noninterventionist Policy — Part 1 19 July 2006    2006 Ron Paul 61:6 The founders talked about that, about rejecting entangling alliances. And we have been involved in a lot of entangling alliances since World War I, especially after World War II, and we have been doing a lot of things, losing a lot of men and women and costing a lot of money; and too often, these events have come back to haunt us. There is blow-back from our policy. money Noninterventionist Policy — Part 1 19 July 2006    2006 Ron Paul 61:9 The other reason why I strongly object to interventionism is it costs a lot of money. And someday we will have to deal with that. Supplemental bills come up now to the tune of tens of billions, and next year, already, they are planning to come up with another $100 billion for our intervention overseas. But it is off the regular budgetary process, so it doesn’t meet the budgetary restraints that we are supposed to follow. So it becomes emergency funding, although we have been in Iraq for 3 years, and with plans to stay endlessly. We are building permanent bases in Iraq. So there is a lot of cost, and eventually that will come home to haunt us, and it already has. money Whom to Blame 19 July 2006    2006 Ron Paul 66:6 And yet the reason I believe this is going to be worse is because we see it in this country the way we want to see it. And we have no willingness to think about how it might be seen elsewhere, like how is it going to be seen by 1 billion Muslims around the world? And you know, quite frankly, every single bomb that is dropped by Israel, by their calculation, and they have reason to believe so, those are U.S. bombs. Those are our airplanes. We paid for them. And they get the money to buy these weapons. So whether it is deliberate or whatever, it doesn’t matter. It is the perception by the Muslims who are radicalized by this. money Whom to Blame 19 July 2006    2006 Ron Paul 66:11 So we go to war and our men and women die. We spend all this money, and we have elections. And then sometimes we don’t like the results of the elections, so we ignore them. money Whom to Blame 19 July 2006    2006 Ron Paul 66:21 Now, one of the reasons why I believe that it wouldn’t be difficult to put the label USA on these weapons, obviously the airplanes have been built here. But what about the money? How much money have we given for weapons? money Whom to Blame 19 July 2006    2006 Ron Paul 66:23 Now, the neat thing about this, this was an economic deal because it was beneficial because under the foreign military financing program that we have, Israel is required to spend 74 percent of that back here. So you are talking about a military-industrial complex, a pretty good deal. You know, we subsidize them, send the money over here, it comes over here, and our arms manufacturers make even more money and then dig a bigger hole for us in foreign policy and contribute to the many problems that we have. And that amount of money, they get $2.3 billion of these military grants, and they automatically increase it $60 million per year. So it is locked in place. money Whom to Blame 19 July 2006    2006 Ron Paul 66:24 Now, you say, well, that is money for our ally. And fine, if it was used for defense, maybe. But if it is used to antagonize 1 billion Muslims and there is no willingness to even consider the fact that we should look at it in a balanced way, and instead it is ridiculed and said, oh, this is ridiculous to think of neutrality or balance and think about both sides, and the innocent people dying on both sides should be considered. money Whom to Blame 19 July 2006    2006 Ron Paul 66:26 So even if you totally disagree with our aggressive empire building and policing the world, let me tell you, I am going to win the argument, because we are running out of money. We are in big debt, and we are borrowing it. We borrowed $3 billion a day from countries like China and Japan and Saudi Arabia to finance this horrendous debt. And it won’t be, it can’t be continued. The dollar will eventually weaken. You are going to have horrendous inflation. Interest rates are going to go up, and it is going to be worse than the stagflation of the 1970s. money Whom to Blame 19 July 2006    2006 Ron Paul 66:28 So we are facing a crisis that is liable to escalate and get out of control in the Middle East. At the same time, it has a bearing on our finances, because when it contributes to the deficit, there is a limit to how much foreigners will loan to us. We have to print the money. We have to go to the Fed, create new money. That is the inflation. money Whom to Blame 19 July 2006    2006 Ron Paul 66:38 And we are running our program, whether it is our domestic welfare program or our foreign policy, it is being run on borrowed money. It is borrowed money from overseas, and it is also from inflated currency. And we can get away with it for a while longer, but let me tell you, there is a crisis coming, and it is going to be dealing with the dollar and it is going to involve our foreign policy. And then we will, as a sign of weakness, we will have to come home. We will have to come home because we can’t afford the empire. It is not wise to have it, and we should have more confidence and more belief that what we have in this country, and what America used to stand for, that we should spread that message more by setting an example and through a voluntary approach. And when that time comes, I think that maybe more people will reconsider it. money H.R. 5068, the Export-Import Reauthorization Act 25 July 2006    2006 Ron Paul 69:2 Mr. Speaker, Congress should reject H.R. 5068, the Export-Import Reauthorization Act, for economic, constitutional, and moral reasons. The Export- Import Bank takes money from American taxpayers to subsidize exports by American companies. Of course it is not just any company that receives Ex- Im support. money H.R. 5068, the Export-Import Reauthorization Act 25 July 2006    2006 Ron Paul 69:12 However, this claim rests on a version of what the great economist Henry Hazlitt called the “broken window” fallacy. When a hoodlum throws a rock through a store window, it can be said he has contributed to the economy, as the storeowner will have to spend money having the window fixed. The benefits to those who repaired the window are visible for all to see, therefore it is easy to see the broken window as economically beneficial. However, the “benefits” of the broken window are revealed as an illusion when one takes into account what is not seen: the businesses and workers who would have benefited had the store owner not spent money repairing a window, but rather had been free to spend his money as he chose. money H.R. 5068, the Export-Import Reauthorization Act 25 July 2006    2006 Ron Paul 69:15 Finally, Mr. Speaker, I would like to remind my colleagues that there is simply no constitutional justification for the expenditure of funds on programs such as Eximbank. In fact, the drafters of the Constitution would be horrified to think the Federal Government was taking hard-earned money from the American people in order to benefit the politically powerful. money Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:8 Central economic planning doesn’t work. Just look at the failed systems of the 20th century. Welfarism is an example of central economic planning. Paper money, money created out of thin air to accommodate welfarism and government deficits, is not only silly; it is unconstitutional. No matter how hard the big spenders try to convince us otherwise, deficits do matter. But lowering the deficit through higher taxes won’t solve anything. money Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:9 Nothing will change in Washington until it is recognized that the ultimate driving force behind most politicians is obtaining and holding power, and money from special interests drives the political process. money Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:10 Money and power are important only because the government wields power not granted by the Constitution. A limited constitutional government would not tempt special interests to buy the politicians who wield power. The whole process feeds on itself. Everyone is rewarded by ignoring constitutional restraints while expanding and complicating the entire bureaucratic state. money Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:15 It is virtually impossible to find anyone who supports hands-off free trade defended by the moral right of all citizens to spend their money as they see fit without being subject to any special interest. money Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:20 Congress spends hundreds of billions of dollars in emergency supplemental bills to avoid the budgetary rules meant to hold down the deficit. Wartime spending money is appropriated and attached to emergency relief funds, making it difficult for politicians to resist. The principle of the pork barrel is alive and well, and it shows how huge appropriations are passed easily with supporters of the system getting their share for their district. money Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:74 In attempting to build an artificial and unwelcome Iraqi military, the harder we try, the more money we spend and the more lives we lose, the stronger the real armies of Iraq become: The Sunni insurgency, the Badr Brigade, the Sadr Mahdi Army and the Kurdish Militia. money Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:76 We are looking in all of the wrong places for an Iraqi army to bring stability to that country. The people have spoken, and these troops that represent large segments of the population need no training. It is not a lack of training, weapons or money that hinders our efforts to create a new superior Iraqi military. It is the lack of inspiration and support for such an endeavor that is missing. Developing borders and separating the various factions, which our policy explicitly prohibits, is the basic flaw in our plan for a forced, unified Western-style democracy for Iraq. Allowing self-determination for different regions is the only way to erase the artificial nature of Iraq, an Iraq designed by Western outsiders nearly 80 years ago. It is our obsession with control of the oil in the region and imposing our will on the Middle East and accommodating the demands of Israel that is the problem. And the American people are finally getting sick and tired of all of their sacrifices. It is time to stop the bleeding. money Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:78 We have a troop shortage. Morale is low, and our military equipment is in bad shape, yet the neocons would not hesitate to spend, borrow, inflate and reinstate the draft to continue their grandiose schemes in remaking the entire Middle East. Obviously, a victory of this sort is not available no matter what effort is made or how much money is spent. money Congressional Medal Of Honor For The Dalai Lama 13 September 2006    2006 Ron Paul 78:3 We cannot forget that Congress has no authority under the Constitution to spend taxpayer money on medals and awards, no matter how richly deserved. And I reiterate my offer of $100 from my own pocket to pay for this medal — if members wish to honor the Dalai Lama, all we need to do is pay for it ourselves. If all 435 of us contribute, the cost will be roughly $70 each. So while a gold medal sounds like a great idea, it becomes a bit strange when we see the actual cost involved. money Senior Citizens’ Improved Quality Of Life Act 19 September 2006    2006 Ron Paul 79:4 Ensuring that Social Security trust fund money is used only for Social Security. H.R. 5211 requires that all money raised for the Social Security trust fund will be spent in payments to beneficiaries, with excess receipts invested in interest-bearing certificates of deposit. This will keep Social Security trust fund money from being diverted to other programs, as well as allow the fund to grow by providing for investment in interest-bearing instruments. Ending the raid of the Social Security trust fund is a vital first step in any serious Social Security reform plan. Protecting the trust fund also demonstrates our commitment to putting the priorities of the American people ahead of special interest pork barrel spending. money Iran Freedom Support Act 28 September 2006    2006 Ron Paul 89:5 The second reason that I will give you for opposing this is that this is clearly seeking regime change in Iran. We are taking it upon ourselves that we do not like the current regime. I don’t like Almadinyad, but do we have the responsibility and the authority to orchestrate regime change? We approach this by doing two things: Sanctions to penalize, at the same time giving aid to those groups that we expect to undermine the government. Do you know if somebody came into this country and paid groups to undermine our government, that is illegal? Yet here we are casually paying money, millions of dollars, unlimited sums of money to undermine that government. This is illegal. money Introduction Of The Taxpayer Protection From Frivolous Litigation Act 28 September 2006    2006 Ron Paul 92:2 Among the legal reforms contained in this act are a loser pays rule providing for physicians to be reimbursed for costs incurred in defending against frivolous lawsuits; a tightening of statutes of limitations to ensure lawsuits are not just attempts to extort money for conditions that arose years after treatment was delivered; reforms of how putative damages are calculated in order to ensure the damages bear a relationship to the harm suffered, limitations on contingent fee contracts which encourage the filing of frivolous lawsuits, reforms to calculations of joint and several liability so a defendant is only liable for the harm he actually caused, and limitation of damages in cases where the plaintiff has already received compensation. money Milton Friedman 6 December 2006    2006 Ron Paul 100:3 Friedman’s work showed that inflation is not a result of markets but is, as he memorably put it, “always and everywhere a monetary phenomenon.” Friedman was the major originator and theoretician of monetarism. Friedman recommended restricting the Federal Reserve’s authority to increasing the quantity of money by a fixed yearly amount. While monetarism is far from the ideal free-market monetary system, Milton Friedman deserves credit for focusing the attention of economists on the Federal Reserve’s responsibility for inflation. money Milton Friedman 6 December 2006    2006 Ron Paul 100:8 On a personal note, I was honored to receive Milton Friedman’s endorsement of my congressional campaign in 1996. One particular quote from his endorsement exemplifies how Milton Friedman’s commitment to the free market was rooted in a recognition that a society that respects the dignity and worth of every individual is impossible without limited government, private property, and sound money: “We very badly need to have more Representatives in the House who understand in a principled way the importance of property rights and religious freedom for the preservation and extension of human freedom in general . . .” money Milton Friedman 6 December 2006    2006 Ron Paul 100:15 “When a young man is forced to serve at $45 a week, including the cost of his keep, of his uniforms, and his dependency allowances, and there are many civilian opportunities available to him at something like $100 a week, he is paying $55 a week in an implicit tax. . . . And if you were to add to those taxes in kind, the costs imposed on universities and colleges; of seating, housing, and entertaining young men who would otherwise be doing productive work; if you were to add to that the costs imposed on industry by the fact that they can only offer young men who are in danger of being drafted stopgap jobs, and cannot effectively invest money in training them; if you were to add to that the costs imposed on individuals of a financial kind by their marrying earlier or having children at an earlier stage, and so on; if you were to add all these up, there is no doubt at all in my mind that the cost of a volunteer force, correctly calculated, would be very much smaller than the amount we are now spending in manning our Armed Forces.” money Introducing The Social Security Beneficiary Tax reduction Act And The Senior Citizens’ Tax Elimination Act 4 January 2007    2007 Ron Paul 1:3 Instead of imposing ridiculous taxes on senior citizens, Congress should ensure the integrity of the Social Security trust fund by ending the practice of using trust fund monies for other programs. This is why I am also introducing the Social Security Preservation Act, which ensures that all money in the Social Security trust fund is spent solely on Social Security. At a time when Congress’ inability to control spending is once again threatening the Social Security trust fund, the need for this legislation has never been greater. When the government taxes Americans to fund Social Security, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money Introducing The Social Security Beneficiary Tax reduction Act And The Senior Citizens’ Tax Elimination Act 4 January 2007    2007 Ron Paul 1:4 In conclusion, Madam Speaker, I urge my colleagues to help free senior citizens from oppressive taxation by supporting my Senior Citizens’ Tax Elimination Act and my Social Security Beneficiary Tax Reduction Act. I also urge my colleagues to ensure that moneys from the Social Security trust fund are used solely for Social Security benefits and not wasted on frivolous government programs. money Introduction Of The Social Security Preservation Act 4 January 2007    2007 Ron Paul 4:2 The Social Security Preservation Act ensures that the government will keep its promises to America’s seniors that taxes collected for Social Security will be used for Social Security. When the government taxes Americans to fund Social Security, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money Introducing The Make College Affordable Act 4 January 2007    2007 Ron Paul 6:4 Helping the American people use their own money to ensure every qualified American can receive a college education is one of the best investments this Congress can make in the future. I therefore urge my colleagues to help strengthen America by ensuring more Americans can obtain college educations by cosponsoring the Make College Affordable Act. money The War In Iraq 5 January 2007    2007 Ron Paul 7:7 Three thousand American military personnel are dead. More than 22,000 are wounded, and tens of thousands will be psychologically traumatized by their tours of duty in Iraq. Little concern is given to the hundreds of thousands of Iraqi civilians killed in this war. We have spent $400 billion so far with no end in sight. This money we do not have. It is all borrowed from countries like China that increasingly succeed in the global economy while we drain wealth from our citizens through heavy taxation and insidious inflation. Our manufacturing base is now nearly extinct. Where the additional U.S. troops in Iraq will come from is anybody’s guess, but surely they won’t be redeployed from Japan, Korea, or Europe. money Introduction Of The Liberty Amendment 7 February 2007    2007 Ron Paul 24:1 Mr. PAUL. Madam Speaker, I am pleased to introduce the Liberty Amendment, which repeals the 16th Amendment, thus paving the way for real change in the way government collects and spends the people’s hard-earned money. The Liberty Amendment also explicitly forbids the federal government from performing any action not explicitly authorized by the United States Constitution. money Introduction Of The Liberty Amendment 7 February 2007    2007 Ron Paul 24:5 Income taxes not only diminish liberty, they retard economic growth by discouraging work and production. Our current tax system also forces Americans to waste valuable time and money on complacence with an ever-more complex tax code. The increased interest in flat-tax and national sales tax proposals, as well as the increasing number of small businesses that questioning the Internal Revenue Service’s (IRS) “withholding” system provides further proof that America is tired of the labyrinthine tax code. Americans are also increasingly fed up with an IRS that continues to ride roughshod over their civil liberties, despite recent “pro-taxpayer” reforms. money Introduction Of The Family Education Freedom Act 14 february 2007    2007 Ron Paul 29:5 Today, Congress can fulfill the wishes of the American people for greater control over their children’s education by simply allowing parents to keep more of their hard-earned money to spend on education rather than force them to send it to Washington to support education programs reflective only of the values and priorities of Congress and the federal bureaucracy. money Introducing The Sanctity Of Life Act And The Taxpayer Freedom Of Conscience Act 15 February 2007    2007 Ron Paul 31:4 In addition to restricting federal court jurisdiction over abortion, Congress must stop the unconstitutional practice of forcing Americans to subsidize abortion providers. It is not enough to say that “family planning” groups may not use federal funds to perform or promote abortion. After all, since money is fungible, federal funding of any activities of these organizations forces taxpayers to underwrite the organizations abortion activities. This is why I am also introducing the Taxpayer Freedom of Conscience Act. The Taxpayer Freedom of Conscience Act prohibits any federal official from expending any federal funds for any population control or population planning program or any family planning activity. To paraphrase Thomas Jefferson, it is “sinful and tyrannical” to force the American taxpayers to subsidize programs and practices they find morally abhorrent. money Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:1 Transparency in monetary policy is a goal we should all support. I’ve often wondered why Congress so willingly has given up its prerogative over monetary policy. Astonishingly, Congress in essence has ceded total control over the value of our money to a secretive central bank. Congress created the Federal Reserve, yet it had no constitutional authority to do so. We forget that those powers not explicitly granted to Congress by the Constitution are inherently denied to Congress-- and thus the authority to establish a central bank never was given. Of course Jefferson and Hamilton had that debate early on, a debate seemingly settled in 1913. money Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:2 But transparency and oversight are something else, and they’re worth considering. Congress, although not by law, essentially has given up all its oversight responsibility over the Federal Reserve. There are no true audits, and Congress knows nothing of the conversations, plans, and actions taken in concert with other central banks. We get less and less information regarding the money supply each year, especially now that M3 is no longer reported. money Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:3 The role the Fed plays in the President’s secretive Working Group on Financial Markets goes unnoticed by members of Congress. The Federal Reserve shows no willingness to inform Congress voluntarily about how often the Working Group meets, what actions it takes that affect the financial markets, or why it takes those actions. But these actions, directed by the Federal Reserve, alter the purchasing power of our money. And that purchasing power is always reduced. The dollar today is worth only four cents compared to the dollar in 1913, when the Federal Reserve started. This has profound consequences for our economy and our political stability. All paper currencies are vulnerable to collapse, and history is replete with examples of great suffering caused by such collapses, especially to a nation’s poor and middle class. This leads to political turmoil. money Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:8 We look at GDP numbers to reassure ourselves that all is well, yet a growing number of Americans still do not enjoy the higher standard of living that monetary inflation brings to the privileged few. Those few have access to the newly created money first, before its value is diluted. money Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:11 GDP purportedly is now growing at 3.5%, and everyone seems pleased. What we fail to understand is how much government entitlement spending contributes to the increase in the GDP. Rebuilding infrastructure destroyed by hurricanes, which simply gets us back to even, is considered part of GDP growth. Wall Street profits and salaries, pumped up by the Fed’s increase in money, also contribute to GDP statistical growth. Just buying military weapons that contribute nothing to the well being of our citizens, sending money down a rat hole, contributes to GDP growth! Simple price increases caused by Fed monetary inflation contribute to nominal GDP growth. None of these factors represent any kind of real increases in economic output. So we should not carelessly cite misleading GDP figures which don’t truly reflect what is happening in the economy. Bogus GDP figures explain in part why so many people are feeling squeezed despite our supposedly booming economy. money Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:14 Begin publishing the M3 statistics again. Let us see the numbers that most accurately reveal how much new money the Fed is pumping into the world economy. money Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:16 Explain how interest rates are set. Conservatives profess to support free markets, without wage and price controls. Yet the most important price of all, the price of money as determined by interest rates, is set arbitrarily in secret by the Fed rather than by markets! Why is this policy written in stone? Why is there no congressional input at least? money Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:17 Change legal tender laws to allow constitutional legal tender (commodity money) to compete domestically with the dollar. money Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:18 How can a policy of steadily debasing our currency be defended morally, knowing what harm it causes to those who still believe in saving money and assuming responsibility for themselves in their retirement years? Is it any wonder we are a nation of debtors rather than savers? money The Scandal At Walter Reed 7 March 2007    2007 Ron Paul 34:6 A foreign policy of interventionism costs so much money that we’re forced to close military bases in the United States even as we’re building them overseas. Interventionism is never good fiscal policy. Interventionism symbolizes an attitude of looking outward, toward empire, while diminishing the importance of maintaining a constitutional republic. money The Scandal At Walter Reed 7 March 2007    2007 Ron Paul 34:15 Every problem Congress and the administration creates requires more money to fix. The mantra remains the same: Spend more money even though we don’t have it; borrow from the Chinese, or just print it. This policy of interventionism is folly, and it cannot continue forever. It will end, either because we wake up or because we go broke. money The Real Reason To Oppose The Supplemental Appropriation 20 March 2007    2007 Ron Paul 36:10 The claim that it is unpatriotic to oppose spending more money in Iraq must be laid to rest as fraudulent. We should pass a resolution that expresses congressional opposition to any more undeclared, unconstitutional, unnecessary, preemptive wars. We should be building a consensus for the future that makes it easier to end our current troubles in Iraq. money Introducing The Agriculture Education Freedom Act 27 March 2007    2007 Ron Paul 37:2 Think about this for a moment. These kids are trying to better themselves, earn some money, save some money and what does Congress do? We pick on these kids by taxing them. It is truly amazing that with all the hand- wringing in Congress over the alleged need to further restrict liberty and grow the size of govemment “for the children” we would continue to tax young people who are trying to lead responsible lives and prepare for the future. Even if the serious social problems today’s youth face could be solved by new federal bureaucracies and programs, it is still unfair to pick on those kids who are trying to do the right thing. money Introducing The Agriculture Education Freedom Act 27 March 2007    2007 Ron Paul 37:4 It is time we stopped taxing youngsters who are trying to earn money to go to college by selling livestock they have raised through their participation in programs such as 4–H or Future Farmers of America. Therefore, I call on my colleagues to join me in supporting the Agriculture Education Freedom Act. money Fiscal Year 2008 Budget Is Excessive 29 March 2007    2007 Ron Paul 38:4 The most disturbing problem with the budget is the utter lack of concern for the coming entitlement meltdown. The official national debt figure, now approaching $9 trillion, reflects only what the Federal Government owes in current debts on money already borrowed. It does not reflect what the Federal Government has promised to pay millions of Americans in entitlement benefits down the road. Those future obligations put our real debt figure at roughly 50 trillion dollars — a staggering sum that is about as large as the total household net worth of the entire United States. Your share of this 50 trillion amounts to about $175,000. money Introducing The Child Health Care Affordability Act 17 April 2007    2007 Ron Paul 42:7 Madam Speaker, this Congress has a moral responsibility to provide tax relief so that loncome parents struggling to care for a sick child can better meet their child’s medical expenses. Some may say that we cannot enact the Child Health Care Affordability Act because it would cause the government to lose revenue. But, who is more deserving of this money, Congress or the working parents of a sick child? money Shareholder Vote On Executive Compensation Act 18 April 2007    2007 Ron Paul 43:2 Mr. Chairman, I rise in opposition to this bill. I happen to agree with all of the concerns expressed by those sponsoring the bill due to the inequities in the amount of money that some of the CEOs are getting. But I am also convinced that this particular piece of legislation won’t do very much to help, and I am convinced that unless we deal some day with our monetary system and understand better how it participates in these inequities, we will never get a solution for this because the monetary system does play a role in this. money Shareholder Vote On Executive Compensation Act 18 April 2007    2007 Ron Paul 43:13 For evidence of who really benefits from a system of fiat money and inflation, consider that in 1971, before President Nixon severed the last link of the American currency to gold, the typical CEO’s salary was 30 times higher than the average wage of the typical employee; today it is 500 times higher. money Shareholder Vote On Executive Compensation Act 18 April 2007    2007 Ron Paul 43:15 Instead of imposing new laws on private companies, Congress should repeal the laws that have weakened the ability of shareholders to discipline CEOs and boards of directors that do not run corporations according to the shareholders’ wishes. Congress should also examine how fiat money contributes to income inequality. I therefore request that my colleagues join me in opposing H.R. 1257 and instead embrace a pro-freedom, pro-shareholder, and pro-worker agenda of free markets and sound money. money Statement On Chinese Currency 9 May 2007    2007 Ron Paul 50:9 Financing deficits with monetary inflation is in itself a weak dollar policy in the long term. Trust in our currency due to our economic and military strength artificially props up the dollar on international exchange markets. Since these benefits come not from production or sound money policies, they only contribute to the instability and imbalances in international trade. money Statement On Chinese Currency 9 May 2007    2007 Ron Paul 50:11 Our current account deficit and huge foreign indebtedness is a reflection of the world monetary system of fiat money. The longer the trade imbalances last, the more difficult the adjustment will be. The market will eventually force these adjustments on us. money Statement On Chinese Currency 9 May 2007    2007 Ron Paul 50:12 Eventually it will be necessary to consider commodity-based money to solve the trade imbalances that concern so many here in the Congress. money The Affordable Gas Price Act 21 May 2007    2007 Ron Paul 54:7 Finally, the Affordable Gas Price Act creates a federal study on how the abandonment of the gold standard and the adoption of freely floating currencies are affecting the price of oil. It is no coincidence that oil prices first became an issue shortly after President Nixon unilaterally severed the dollar’s last connection to gold. The system of fiat money makes consumers vulnerable to inflation and to constant fluctuations in the prices of essential goods such as oil. money In The Name Of Patriotism (Who Are The Patriots?) 22 May 2007    2007 Ron Paul 55:21 Protesters against this unconstitutional system of paper money are considered unpatriotic criminals and at times are imprisoned for their beliefs. The fact that, according to the Constitution, only gold and silver are legal tender and paper money outlawed matters little. The principle of patriotism is turned on its head. Whether it’s with regard to the defense of welfare spending at home, confiscatory income tax, or an immoral monetary system or support for a war fought under false pretense without a legal declaration, the defenders of liberty and the Constitution are portrayed as unpatriotic, while those who support these programs are seen as the patriots. money Opening Statement Committee on Financial Services World Bank Hearing 22 May 2007    2007 Ron Paul 56:4 Western governments tax their citizens to fund the World Bank, lend this money to corrupt Third World dictators who abscond with the funds, and then demand repayment which is extracted through taxation from poor Third World citizens, rather than from the government officials responsible for the embezzlement. It is in essence a global transfer of wealth from the poor to the rich. Taxpayers around the world are forced to subsidize the lavish lifestyles of Third World dictators and highly-paid World Bank bureaucrats who don't even pay income tax. money Opening Statement Committee on Financial Services World Bank Hearing 22 May 2007    2007 Ron Paul 56:5 The World Bank has outlived its intended purpose. Capital markets are flush with money and well-developed enough to lend money not just to national governments but to local and regional development projects, at competitive market rates. In the aftermath of Mr. Wolfowitz's departure, much will be made of the question of his successor, when the questioning instead should be directed towards the phasing out of the organization. money Unanticipated Good results (When We leave) 6 June 2007    2007 Ron Paul 57:4 Those who want a total military victory, which no one has yet defined, don’t have the troops, the money, the equipment, or the support of a large majority of the American people to do so. Those in Congress who have heard the cry of the electorate to end the war refuse to do so out of fear the demagogues will challenge their patriotism and their support for the troops. So nothing happens except more of the same. The result is continued stalemate with the current policy and the daily sacrifice of American lives. money Unanticipated Good Results (When We Leave) 7 June 2007    2007 Ron Paul 59:4 The foolishness of our foreign policy has us spending money in Pakistan, a military dictatorship with nuclear weapons, which is harboring Osama Bin Laden. The irony that taxpayers are paying to help protect Osama Bin Laden is astounding. For all the so- called reasons we threaten Iran, the same logic could apply to Pakistan many fold and, for that matter, even to Saudi Arabia, from where 15 of the 19 hijackers came. money Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:1 Mr. PAUL. Madam Speaker, I rise to introduce the Honest Money Act. The Honest Money Act repeals legal tender laws that force American citizens to accept fiat money in their economic transactions. money Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:2 Absent legal tender laws, individuals acting through the market will determine what is money. Historically, when individuals have been free to choose their money they have selected items that are portable, widely accepted, and have a stable value. Having the market, rather than the government, define money is integral to the functioning of a free economy. As Edwin Vieira, perhaps the Nation’s top expert on constitutional monetary policy says, “. . . a free market functions most efficiently and most fairly when the market determines the quality and the quantity of money that’s being used.” money Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:3 While fiat money produced by the State is portable and, thanks to legal tender laws, widely accepted, it is certainly not of stable value. In fact, our entire monetary policy is predicated on the government’s ability to manipulate the value of the currency. Thus, absent legal tender laws, many citizens would refuse to accept government money for their transactions. money Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:4 Legal tender laws disadvantage ordinary citizens by forcing them to use inferior money, which they would otherwise refuse. As Stephen T. Byington put in the September 1895 issue of the American Federationist: “No legal tender law is ever needed to make men take good money; its only use is to make them take bad money. Kick it out!” money Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:5 It may seem surprising that the Mr. Byington’s well-phrased attack on legal tender laws appeared in the publication of the American Federation of Labor. However, enlightened union leaders of that time recognized that ways in which workers where harmed by the erosion of the value of money which inevitably follows when governments pass legal tender laws. money Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:6 Legal tender laws may disadvantage average citizens but they do help power-hungry politicians use inflationary monetary policy to expand the government beyond its proper limits. However, the primary beneficiaries of legal tender laws are the special interests who are granted the privilege of producing and controlling the paper money forced on the public via legal tender laws. Legal tender laws thus represent the primary means of reverse redistribution where the wealth of the working class is given, via laws forcing people to use debased money, to well-heeled, politically powerful bankers. money Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:7 The drafters of the Constitution were well aware of how a government armed with legal tender powers could ravage the people’s liberty and prosperity. This is why the Constitution does not grant legal tender powers to the federal government. Instead, Congress was given powers to establish standards regarding the value of money. In other words, in monetary matters the Congress was to follow the lead of the market. When Alexander Hamilton wrote the coinage act of 1792, he simply adopted the market-definition of a dollar as equaling the value of the Spanish milled silver coin. money Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:9 Unfortunately, the Supreme Court failed to protect the American people from Congress’ unconstitutional legal tender laws. Supreme Court Justice, and Lincoln Treasury Secretary, Salmon Chase, writing in dissent in the legal tender cases, summed up the main reason why the Founders did not grant Congress the authority to pass legal tender laws: “The legal tender quality [of money] is only valuable for the purposes of dishonesty.” Justice Chase might have added dishonesty is perpetrated by State-favored interests on the average American. money Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:11 Considering the growth of government since the Supreme Court joined Congress in disregarding the constitutional barriers to legal tender laws, can anyone doubt the accuracy of Justice Field’s words? Repeal of legal tender laws would restore constitutional government and protect the people’s right to use a currency chosen by the market because it serves the needs of the people, instead of having to use a currency chosen by the State because it serves the needs of power hungry politicians and special interests. Therefore, I urge my colleges to cosponsor the Honest Money Act. money Introduction Of The Federal reserve Board Abolition Act 15 June 2007    2007 Ron Paul 65:2 From the Great Depression, to the stagflation of the 70s, to the burst of the dotcom bubble, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts. money Introduction Of The Federal reserve Board Abolition Act 15 June 2007    2007 Ron Paul 65:4 Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of special interests and their own appetite for big government. money Introduction Of The Federal reserve Board Abolition Act 15 June 2007    2007 Ron Paul 65:5 Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the Federal Government to erode the American standard of living via an inflationary monetary policy. money Introduction Of The Federal reserve Board Abolition Act 15 June 2007    2007 Ron Paul 65:6 In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our Nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy. money Introduction Of The Federal reserve Board Abolition Act 15 June 2007    2007 Ron Paul 65:7 In conclusion, Madam Speaker, I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money supply which erodes Americans’ standard of living, enlarges big government, and enriches well-connected elites, by cosponsoring my legislation to abolish the Federal Reserve. money Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:1 Mr. PAUL. Madam Speaker, I rise to introduce the Sunshine in Monetary Policy Act, which requires the Federal Reserve to resume reporting the monetary measure known as M3. M3 consists of M1, M1 is currency in circulation plus travelers’ checks, demand deposits, Negotiable Order of Withdrawal, NOW, accounts, and similar interest-earning checking account balances; M2, M2 is M1 plus household holdings of savings deposits, small time deposits, and retail money market mutual funds balances except for balances held in IRA and Keogh accounts, plus institutional money market mutual fund balances and managed liabilities of deposits consisting of large time deposits, repurchase agreements, and Eurodollars. money Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:2 The Federal Reserve Board ceased reporting M3 on March 22, 2006, thus depriving Congress and the American people of the most comprehensive measure of the money supply. The cessation of the Federal Reserve’s weekly M3 report will make it more difficult for policymakers, economists, investors, and the general public to learn the true rate of inflation. As Nobel laureate Milton Friedman famously said, “inflation is always and everywhere a monetary phenomenon.” Therefore, having access to a comprehensive measure of the money supply like M3 is a vital tool for those seeking to track inflation. Thorsten Polleit, honorary professor at HfB-Business School of Finance and Management, in his article “Why Money Supply Matters” posted on the Ludwig von Mises Institute’s Web site mises.org, examined the relationship between changes in the money supply and inflation and concluded that “money supply signals might actually be far more important for inflation — even in the short-term — than current central bank practice suggests,” thus demonstrating the importance of the M3 aggregate. money Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:3 The Federal Reserve Board has claimed neither policymakers nor the Federal Reserve staff closely tracked M3. Even if M3 was not used by Federal Reserve Board economists or legislators, many financial services professionals whose livelihoods depend on their ability to obtain accurate information about the money supply relied on M3. For example, my office has been contacted by a professional money manger complaining that the Federal Reserve Board’s discontinuing M3 reports would make it difficult for him to do his job. money Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:5 Economists and others who are following M3 have become increasingly concerned about inflation because in 2005 the rate of M3 rose almost twice as fast as other monetary aggregates. This suggests that the inflation picture is not as rosy as the Federal Reserve would like Congress and the American people to believe. Discontinuing reporting the monetary aggregate that provides the best evidence that the Federal Reserve Board has not conquered inflation suggested to many people that the government was trying to conceal information about the true state of the economy from the American people. Brad Conrad, a professor of investing who has also worked with IBM, CDC, and Amdahl, spoke for many when he said, “It [the discontinuance of M3] is unsettling. It detracts from the transparency the Fed preaches and adds to the suspicion that the Fed wants to hide anything showing money growth high enough to fuel inflation . . .” money Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:6 Discontinuing reporting M3 was only expected to save 0.00000699 percent of the Federal Reserve Board’s yearly budget. This savings hardly seems to justify depriving the American people of an important measurement of money supply, especially since Congress has tasked the Federal Reserve Board with reporting on monetary aggregates. Discontinuing reporting M3 may not be a violation of the letter of the Federal Reserve Board’s statutory duty, but it is a violation of the spirit of the congressional command that the Federal Reserve Board ensure the American public is fully informed about the effects of monetary policy. money Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:7 Madam Speaker, knowledge of the money supply is one of the keys to understanding the state of the economy. The least the American people should expect from the Federal Reserve Board is complete and accurate information regarding the money supply. I urge my colleagues to ensure that the American people can obtain that information by cosponsoring the Sunshine in Monetary Policy Act. money Opening Statement – Committee on Financial Services – Subcommittee: Domestic and International Monetary Policy, Trade and Technology – Remittance Hearing 17 June 2007    2007 Ron Paul 68:2 Some legislative proposals would require wire transfer services and other money services businesses to comply with elements of the REAL ID Act. While often well-intentioned, such measures, aside from infringing constitutional liberties, would have the effect of creating a thriving black market financial system which would make it even more difficult for law enforcement to track truly criminal financial transfers. money Opening Statement – Committee on Financial Services – Subcommittee: Domestic and International Monetary Policy, Trade and Technology – Remittance Hearing 17 June 2007    2007 Ron Paul 68:3 Heavy-handed government intrusion into the operation and regulation of money services businesses would also have the effect of raising the costs of doing business. Money service businesses have done a good job of identifying and serving their customers' needs. Healthy competition has led to a reduction in fees over the years so that money services businesses are accessible to more and more consumers. As some of our witnesses will attest, even the threat of regulation can have a chilling effect on the operation of money services businesses. The money services market has done an admirable job of self-regulation so far. The worst thing Congress could do is intervene in an overly forceful manner and undo all the good things that have been done so far. money Opening Statement Committee on Financial Services Paulson Hearing 20 June 2007    2007 Ron Paul 71:5 The recent sharp rise in interest rates may well be signaling the end to the painless easy money decade that has allowed us to finance our extravagant welfare/warfare spending with minimal productive effort and no savings. Monetary inflation and foreign borrowing have allowed us to live far beyond our means – a type of monetary arrangement that always comes to a painful end. money Opening Statement Committee on Financial Services Paulson Hearing 20 June 2007    2007 Ron Paul 71:8 Accurate money supply growth rates are vital in anticipating future price levels, the degree of malinvestment, and chances for financial bubbles to form. Since March of 2006 M3 reports have been discontinued. Private sources now report that M3 is increasing at a significantly high 13% rate. money Opening Statement Committee on Financial Services Paulson Hearing 20 June 2007    2007 Ron Paul 71:10 Since money growth statistics are key to calculating currency depreciation it is interesting to note, in this era of global financial markets, in a world engulfed with only fiat currencies, what total world wide money supply is doing. money Opening Statement Committee on Financial Services Paulson Hearing 20 June 2007    2007 Ron Paul 71:11 Since 1997 the world money supply has doubled. And money growth IS inflation which is the enemy of the poor and the middle class but a friend to the banks and Wall Street. money Opening Statement Committee on Financial Services Paulson Hearing 20 June 2007    2007 Ron Paul 71:13 Welfare and warfare – guns and butter philosophy always leads to harmful inflation. We had severe problems in the 60’s and 70’s and we are doing the same thing once again. We have only started to pay for the extravagance of financing the current war and rapidly expanding the entitlement system by foreign borrowing and creating money and credit out of thin air. There are reasons to believe that the conditions we have created will be much worse than they were in 1979 when interest rates of 21% were required to settle the markets and reverse the stagflation process. money Statement before the Financial Services Committee – Humphrey Hawkins Prequel Hearing 17 July 2007    2007 Ron Paul 76:4 Price stability attempts to disadvantage consumers by keeping prices stable, rather than allowing them to take their natural course of decline. This policy comes from two misguided notions: that lower prices lead to lower profits, and that lower prices lead to deflation. In its effort to ensure price stability, the Federal Reserve resorts to inflation targeting, using the federal funds rate and open market operations to increase the money supply at an ostensible low rate, introducing a subtle but pernicious inflation into the monetary system. Inflation benefits the government and the well-off, the first users of the new money, but harms those who receive the new money last, those who are predominantly poor and middle class. money Statement before the Financial Services Committee – Humphrey Hawkins Prequel Hearing 17 July 2007    2007 Ron Paul 76:5 But prices do not just apply to goods, they also apply to the price of labor, or wages. Wage raises are often indexed to government CPI figures, which are notoriously prone to manipulation. While official government figures show a CPI under 3%, according to the methods used when CPI was first calculated the current rate of inflation is over 10%. What this means is that while wages will remain stable in real terms, the price of goods and services will increase at a faster rate, leading to a decrease in the real standard of living. The Fed's loose money policy then leads to the lure of easy credit, which will hook more and more families, who will find themselves falling deeper and deeper into debt to finance their lifestyles. money Public Safety Tax Cut Act 1 August 2007    2007 Ron Paul 80:5 Next, this legislation would also provide paid professional police and fire officers with a $1,000 per year tax credit. These professional public safety officers put their lives on the line each and every day, and I think we all agree that there is no way to properly compensate them for the fabulous services they provide. In America we have a tradition of local law enforcement and public safety provision. So, while it is not the role of our Federal Government to increase the salaries of these, it certainly is within our authority to increase their take-home pay by reducing the amount of money that we take from their pockets via Federal taxation, and that is something this bill specifically does as well. money Statement On Introduction Of The Cost Of Government Awareness Act 19 September 2007    2007 Ron Paul 92:1 Mr. PAUL. Madam Speaker, I rise to introduce the Cost of Government Awareness Act, which repeals one of the most deceptive practices of the federal government — income tax withholding. Withholding keeps many Americans ignorant about the true size of the federal tax burden. Withholding is also the reason millions of Americans overpay their income taxes, granting the United States Government interest-free loans. Many of these taxpayers are further misled into thinking the U.S. Government is acting benevolently when they receive “refunds” of money improperly taken from them through withholding! money Statement On Introduction Of The Cost Of Government Awareness Act 19 September 2007    2007 Ron Paul 92:3 When the United States Government implemented withholding in 1943, it promised the American people that this would be a “temporary” measure. I am sure my colleagues agree that 64 years is a sufficient lifespan for any “temporary” measure. It is time to end the deceptive practice of withholding and empower taxpayers to reflect upon their tax bill each month and ask, “What are they getting for their money.” An honest answer to that question may lead to a groundswell for true tax reform. money Statement before the Financial Services Committee 20 September 2007    2007 Ron Paul 93:4 Reduction in the interest rate has two major effects: it encourages consumption over saving; and it makes long-term, capital-intensive projects cheaper to undertake. Under Chairman Greenspan's tenure, the federal funds rate was so low that the real interest rate (that is the nominal interest rate minus inflation) was negative. With a negative real interest rate, someone who saves money will literally lose the value of that money. money Statement before the Financial Services Committee 20 September 2007    2007 Ron Paul 93:5 The Federal Reserve continued and still continues to increase the money supply. After ceasing the publication of M3 last February, private economists have calculated that M3 has risen at an annual rate of almost 12%, which is faster than we have seen since the 1970's. money Statement before the Financial Services Committee 20 September 2007    2007 Ron Paul 93:6 Millions of Americans now find themselves stuck in a financial quandary that is not their fault. The result of manipulation of the interest rate, money supply, and mortgage markets are the recently popped housing bubble. money Tax Free Tips Act 25 September 2007    2007 Ron Paul 95:2 Many service-sector employers are young people trying to make money to pay for their education, or single parents struggling to provide for their children. Oftentimes, these workers work two jobs in hopes of making a better life for themselves and their families. The Tax Free Tips Act gives these hard-working Americans an immediate pay raise. People may use this pay raise to devote more resources to their children’s, or their own, education, or to save for a home, retirement, or to start their own businesses. money Flood Insurance Reform and Modernization Act 27 September 2007    2007 Ron Paul 96:1 Mr. PAUL. Mr. Chairman, Madam Speaker, I am pleased to lend my support to two amendments to H.R. 3121, the Flood Insurance Reform and Modernization Act, that will help those Americans, including many in my congressional district, at risk of increased flood insurance premiums because of actions of the Federal Emergency Management Association (FEMA). FEMA is demanding that many towns and communities spend thousands of dollars in taxpayer money to certify levies and other mitigation devices. If the levies are not certified to FEMA’s satisfaction, the residents of those communities will face higher flood insurance premiums. Many local governments are struggling to raise the funds to complete the certification in time to meet the FEMA-imposed certification deadlines. money House Financial Services Committee – Subcommittee on Domestic and International Monetary Policy 17 October 2007    2007 Ron Paul 99:3 While I empathize with the investors who have lost money through the Yukos incident, the fact remains that markets are fraught with risk. Our loose monetary policy and stimulation of credit have led to expectations of permanent positive economic growth. The technology bubble and the housing bubble have caused many to believe that markets can only go up. When bubbles burst, when stocks decline, something must have gone awry, and the government is called upon to right the wrong. money Statement of Ron Paul on H.R. 5140 29 January 2008    2008 Ron Paul 2:3 A one-time “rebate” check, while it may provide a temporary boost to many working American families struggling with the current downturn, is not going to provide the type of sustained income growth necessary to restore consumer confidence. In fact, history shows that when the government forgoes serious tax cuts in favor of one-time “rebates” most people either save the money for a “rainy day” or use it to pay down some of their debt. money Statement of Ron Paul on H.R. 5140 29 January 2008    2008 Ron Paul 2:7 Tax cuts by themselves will not restore long-term economic health unless and until this body finally addresses the fundamental cause of our economic instability, which is monetary policy. The inflationary policies of the Federal Reserve are the root of the boom-and-bust cycle that has plagued the American economy for almost 75 years. The Federal Reserve’s inflationary polices are also at the root of the steady decline in the American people’s standard of living. A good step toward monetary reform would be for Congress to pass my HR 2576, which repeals the federal legal tender laws. This would allow people to use alternatives to government-issued fiat money and thus protect themselves from Federal Reserve-created inflation. money Statement on Competing Currencies February 13, 2008    2008 Ron Paul 4:2 I rise to speak on the concept of competing currencies. Currency, or money, is what allows civilization to flourish. In the absence of money, barter is the name of the game; if the farmer needs shoes, he must trade his eggs and milk to the cobbler and hope that the cobbler needs eggs and milk. Money makes the transaction process far easier. Rather than having to search for someone with reciprocal wants, the farmer can exchange his milk and eggs for an agreed-upon medium of exchange with which he can then purchase shoes. money Statement on Competing Currencies February 13, 2008    2008 Ron Paul 4:3 This medium of exchange should satisfy certain properties: it should be durable, that is to say, it does not wear out easily; it should be portable, that is, easily carried; it should be divisible into units usable for every-day transactions; it should be recognizable and uniform, so that one unit of money has the same properties as every other unit; it should be scarce, in the economic sense, so that the extant supply does not satisfy the wants of everyone demanding it; it should be stable, so that the value of its purchasing power does not fluctuate wildly; and it should be reproducible, so that enough units of money can be created to satisfy the needs of exchange. money Statement on Competing Currencies February 13, 2008    2008 Ron Paul 4:7 The first step consists of eliminating legal tender laws. Article I Section 10 of the Constitution forbids the States from making anything but gold and silver a legal tender in payment of debts. States are not required to enact legal tender laws, but should they choose to, the only acceptable legal tender is gold and silver, the two precious metals that individuals throughout history and across cultures have used as currency. However, there is nothing in the Constitution that grants the Congress the power to enact legal tender laws. We, the Congress, have the power to coin money, regulate the value thereof, and of foreign coin, but not to declare a legal tender. Yet, there is a section of US Code, 31 USC 5103, that purports to establish US coins and currency, including Federal Reserve notes, as legal tender. money Statement on Competing Currencies February 13, 2008    2008 Ron Paul 4:8 Historically, legal tender laws have been used by governments to force their citizens to accept debased and devalued currency. Gresham’s Law describes this phenomenon, which can be summed up in one phrase: bad money drives out good money. An emperor, a king, or a dictator might mint coins with half an ounce of gold and force merchants, under pain of death, to accept them as though they contained one ounce of gold. Each ounce of the king’s gold could now be minted into two coins instead of one, so the king now had twice as much “money” to spend on building castles and raising armies. As these legally overvalued coins circulated, the coins containing the full ounce of gold would be pulled out of circulation and hoarded. We saw this same phenomenon happen in the mid-1960s when the US government began to mint subsidiary coinage out of copper and nickel rather than silver. The copper and nickel coins were legally overvalued, the silver coins undervalued in relation, and silver coins vanished from circulation. money Statement on Competing Currencies February 13, 2008    2008 Ron Paul 4:10 In the absence of legal tender laws, Gresham’s Law no longer holds. If people are free to reject debased currency, and instead demand sound money, sound money will gradually return to use in society. Merchants would have been free to reject the king’s coin and accept only coins containing full metal weight. money Statement on Competing Currencies February 13, 2008    2008 Ron Paul 4:14 Just as pernicious are the sales and use taxes which are assessed on gold and silver at the state level in many states. Imagine having to pay sales tax at the bank every time you change a $10 bill for a roll of quarters to do laundry. Inflation is a pernicious tax on the value of money, but even the official numbers, which are massaged downwards, are only on the order of 4% per year. Sales taxes in many states can take away 8% or more on every single transaction in which consumers wish to convert their Federal Reserve Notes into gold or silver. money “Monetary Policy and the State of the Economy” February 26, 2008    2008 Ron Paul 8:3 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. money “Monetary Policy and the State of the Economy” February 27, 2008    2008 Ron Paul 9:2 A topic that is on the lips of many people during the past few months, and one with which I have greatly concerned myself, is that of moral hazard. We hear cries from all corners, from politicians, journalists, economists, businessmen, and citizens, clamoring for the federal government to intervene in the economy in order to forestall a calamitous recession. During the boom, many of these same individuals called for no end to the Fed’s easy credit. Now that the consequences of that easy money policy are coming home to roost, no one wants to face those ill effects. money “Monetary Policy and the State of the Economy” February 27, 2008    2008 Ron Paul 9:5 What all of these proposed bailouts fail to mention is the moral hazard to which bailouts lead. If the federal government bails out banks, investors, or homeowners, the lessons of sound investment and fiscal discipline will not take hold. We can see this in the financial markets in the boom and bust of the business cycle. The Fed’s manipulation of interest rates results in malinvestment which, when it is discovered, leads to economic contraction and liquidation of malinvested resources. But the Fed never allows a complete shakeout, so that before a return to a sound market can occur, the Fed has already bailed out numerous market participants by undertaking another bout of loose money before the effects of the last business cycle have worked their way through the economy. money “Monetary Policy and the State of the Economy” February 27, 2008    2008 Ron Paul 9:6 Many market actors therefore continue to undertake risky investments and expect that in the future, if their investments go south, that the Fed would and should intervene by creating more money and credit. The result of these bailouts is that each successive recession runs the risk of becoming larger and more severe, requiring a stronger reaction by the Fed. Eventually, however, the Fed begins to run out of room in which to maneuver, a problem we are facing today. money Foreign Government Investment in the U.S. Economy and Financial Sector March 5, 2008    2008 Ron Paul 11:2 The two major types of sovereign wealth funds are those which are funded by proceeds from natural resources sales, and those funded by accumulation of foreign exchange. The former category includes sovereign wealth funds in Saudi Arabia, Kuwait, and the UAE. Flush with dollars due to the high price of oil, they are looking for opportunities to make that money work for them. The high price of oil is due in large part to our inflationary monetary policy. We have literally exported inflation across the globe, spurring malinvestment and a subsequent commodities boom. money Foreign Government Investment in the U.S. Economy and Financial Sector March 5, 2008    2008 Ron Paul 11:5 I have always been a staunch advocate of abandoning our loose monetary policy and facing the consequences now, rather than continuing easy money in the hopes of never having to face a recession. Now that it is clear that decades of Federal Reserve monetary manipulation have led to a severe recession, the thought of sovereign wealth funds investing in the financial sector holds far more appeal than that of a complete collapse of major industry players which would cause catastrophic effects throughout the economy. money Statement on Coinage March 11, 2008    2008 Ron Paul 12:1 Mr. Chairman, I oppose HR 5512 because it is unconstitutional to delegate the determination of the metal content of our coinage to the Secretary of the Treasury. Under Article I Section 8 of the Constitution, the Congress is given the power to coin money and regulate the value thereof. It is a shame that Congress has already unconstitutionally delegated its coinage authority to the Treasury Department, but that is no reason to further delegate our power and essentially abdicate Congressional oversight as the passing of HR 5512 would do. money Statement on Coinage March 11, 2008    2008 Ron Paul 12:5 HR 5512 is a sad commentary on how far we have fallen, not just since the days of the Founders, but only in the last 75 to 100 years. We could not maintain the gold standard nor the silver standard. We could not maintain the copper standard, and now we cannot even maintain the zinc standard. Paper money inevitably breeds inflation and destroys the value of the currency. That is the reason that this proposal is before us today. money Living by the Sword 13 March 2008    2008 Ron Paul 14:8 But the real reason for all this surveillance is to build the power of the state. It arises from a virulent dislike of free people running their own lives and spending their own money. Statists always demand control of the people and their money. money Statement Before the Financial Services Committee, On UIGEA April 2, 2008    2008 Ron Paul 19:2 I stand opposed to the regulations being discussed today because I opposed the underlying bill upon which these regulations are based. The ban on Internet gambling infringes upon two freedoms that are important to many Americans: the ability to do with their money as they see fit, and the freedom from government interference with the Internet. money Statement Before the Financial Services Committee, On UIGEA April 2, 2008    2008 Ron Paul 19:3 The proper role of the federal government is not that of a nanny, protecting citizens from any and every potential negative consequence of their actions. Although I personally believe gambling to be a dumb waste of money, American citizens should be just as free to spend their money playing online poker as they should be able to buy a used car, enter into a mortgage, or invest in a hedge fund. Risk is inherent in any economic activity, and it is not for the government to determine which risky behaviors Americans may or may not engage in. money Statement on Earmark Reform April 9, 2008    2008 Ron Paul 23:2 Contrary to popular belief, adding earmarks to a bill does not increase federal spending by even one penny. Spending levels for the appropriation bills are set before Congress adds a single earmark to a bill. The question of whether or not the way the money is spent is determined by earmarks or by another means does not effect the total amount of spending. money PROTECTING THE MEDICAID SAFETY NET ACT OF 2008 22 April 2008    2008 Ron Paul 25:3 According to some estimates, failure to implement the proposed regulations could cost the already financially fragile Medicaid system as much as 10 billion over the next several years. Yet, the sponsors of this bill refuse to make a serious effort to address these costs. Mr. Speaker, instead of rushing H.R. 5613 into law, we should be looking for ways to shore up Medicaid by making cuts in other, lower priority programs, using those savings to ensure the short-term fiscal stability of federal entitlement programs while transitioning to a more stable means of providing health care for low-income Americans. I have been outspoken on the areas I believe should be subject to deep cuts in order to finance serious entitlement reform that protects those relying on these programs. I will not go into detail on these cuts, although I will observe that in recent weeks this Congress has authorized billions of new foreign aid spending, yet today we are told we cannot find the money to address Medicaid’s long-term financial imbalances. money INTRODUCTION OF THE TAX RELIEF FOR TRANSPORTATION WORKERS ACT 7 May 2008    2008 Ron Paul 27:2 When Congress created the TWIC requirement, it placed the burden of paying the cost of obtaining the card on individual workers. Imposing the costs of obtaining TWICs on port workers has several negative economic impacts that Congress should help mitigate by making the cost associated with obtaining a TWIC tax deductible. According to the Department of Homeland Security, a port worker will have to pay between $100 and $132 dollars to obtain a card. The worker will also have to pay a $60 fee for every card that is lost or damaged. Even those employers whose employers pay the substantial costs of obtaining TWICs for their workforce are adversely affected by the TWIC requirement, as the money employers pay for TWICs is money that cannot go into increasing their workers’ salaries. The costs of the TWIC requirement may also cause some employers to refrain from hiring new employees. money CONGRESS MUST ACT TO HELP SHRIMPERS 19 June 2008    2008 Ron Paul 36:5 In order to stop the federal government from punishing shrimpers with unfair regulations and forcing them to subsidize their major competitors, I introduced the Shrimp Importation Financing Fairness Act. This legislation would place a moratorium on any restrictive regulations negatively impacting the shrimp industry and prevent any taxpayer money from going to any country that exported more than 20 million pounds of shrimp to the Untied States in the previous six months. However, Congress chose not to even take these simple steps to help the American shrimp industry. money MEDICARE IMPROVEMENTS FOR PATIENTS AND PROVIDERS ACT OF 2008 24 June 2008    2008 Ron Paul 39:3 I certainly recognize the need to make adjustments in physicians’ payments. Many physicians are already losing money treating Medicare patients, thanks to CMS’s low reimbursements and the cost of having to comply with CMS’s numerous rules and regulations. Unless Congress acts, many physicians will simply refuse to see Medicare patients. I think we all agree that driving physicians out of the Medicare program is not the proper way to reform the system. money MEDICARE IMPROVEMENTS FOR PATIENTS AND PROVIDERS ACT OF 2008 24 June 2008    2008 Ron Paul 39:5 Instead of simply pretending we can delay the day of reckoning by giving CMS more money and power, we should be looking for ways to shore up Medicare by making cuts in other, lower priority programs, using those savings to ensure the short-term fiscal stability of Federal entitlement programs while transitioning to a more stable means of providing health care for senior citizens. I have been outspoken on the areas I believe should be subject to deep cuts in order to finance serious entitlement reform that protects those relying on these programs. I will not go into detail on these cuts, although I will observe that today the House Committee on Financial Services is planning to authorize billions of new foreign aid spending, perhaps some of those billions might be better spent reforming the Medicare system. money DO NOT BELIEVE THE U.S. FEAR FACTOR PROPAGANDA AS IT RELATES TO OUR FOREIGN POLICY 26 June 2008    2008 Ron Paul 40:2 We do know that there is a supply and demand, there’s a lot of demand for oil. The supplies may be dwindling. But there are other reasons for high costs of energy. One is inflation. For instance, to pay for the war that has been going on and the domestic spending, we have been spending a lot more money than we have. So what do we do? We send the bills over to the Federal Reserve to create new money. In the last 3 years, our government, through the Federal Reserve and our banking system, created $4 trillion of new money. That is one of the main reasons why we have this high cost of energy in $4 gallon gasoline. money Statement: “Something Big is Happening” 9 July 2008    2008 Ron Paul 42:5 Today things are different from even ancient times or the 1970s. There is something to the argument that we are now a global economy. The world has more people and is more integrated due to modern technology, communications, and travel. If modern technology had been used to promote the ideas of liberty, free markets, sound money and trade, it would have ushered in a new golden age — a globalism we could accept. money Statement: “Something Big is Happening” 9 July 2008    2008 Ron Paul 42:11 There are various reasons that the world economy has been globalized and the problems we face are worldwide. We cannot understand what we’re facing without understanding fiat money and the long-developing dollar bubble. money Statement: “Something Big is Happening” 9 July 2008    2008 Ron Paul 42:20 The mistakes made with excessive credit at artificially low rates are huge, and the market is demanding a correction. This involves excessive debt, misdirected investments, over-investments, and all the other problems caused by the government when spending the money they should never have had. Foreign militarism, welfare handouts and $80 trillion entitlement promises are all coming to an end. We don’t have the money or the wealth-creating capacity to catch up and care for all the needs that now exist because we rejected the market economy, sound money, self reliance and the principles of liberty. money Humphrey Hawkins Hearing on Monetary Policy July 16, 2008    2008 Ron Paul 46:3 At the heart of this economic malaise is the Fed’s poor stewardship of the dollar. The cause of the dollar’s demise is not the result of a purely psychological response to public statements on US dollar policy, but is rather a reaction to a massive increase in the money supply brought about by the Federal Reserve’s loose monetary policy. The policies that led to hemorrhaging of gold during the 1960’s and the eventual closing of the gold standard are the same policies that are leading to the dollar’s decline in international currency markets today. Foreign governments no longer wish to hold depreciating dollars, and would prefer to hold stronger currencies such as the euro. Foreign investors no longer wish to hold underperforming dollars, and seek to hold better-performing assets such as ports and beer companies. money UNTITLED 23 July 2008    2008 Ron Paul 47:2 The Federal Reserve has already invested hundreds of billions of dollars, probably close to $300 billion to bail out this industry. And of course the Fed has no money. But when we open the doors in an unlimited amount, and no restraint on what the Treasury might do in buying up these securities, we have to talk about the budget. And, of course, that is why this bill increases the national debt by $800 billion, so I guess they are expecting to buy a whole lot of mortgage securities. But that won’t solve the problem. We have to find out why this problem has existed. money Statement on Senate amendments to HR 5501, Tom Lantos and Henry J. Hyde U.S. Global Leadership Against HIV/AIDS, Tuberculosis and Malaria Reauthorization July 24, 2008    2008 Ron Paul 49:1 Mr. Speaker, I rise in opposition to this irresponsible legislation, which will ship $48 billion overseas as foreign aid at a time when Americans are feeling the pressure of rapidly increasing inflation and a weakened dollar. It is particularly objectionable to ship money to fund healthcare overseas when so many Americans either struggle with high healthcare costs or avoid seeking medical assistance altogether due to lack of insurance or funds. money Statement on Senate amendments to HR 5501, Tom Lantos and Henry J. Hyde U.S. Global Leadership Against HIV/AIDS, Tuberculosis and Malaria Reauthorization July 24, 2008    2008 Ron Paul 49:2 As we know, the federal government does not have $48 billion to send overseas so it will have to print the money. It is a cruel irony that this will add to inflation at home which will increase even further the costs of healthcare in the United States . money Statement on Senate amendments to HR 5501, Tom Lantos and Henry J. Hyde U.S. Global Leadership Against HIV/AIDS, Tuberculosis and Malaria Reauthorization July 24, 2008    2008 Ron Paul 49:3 Mr. Speaker, I am saddened by the prevalence of disease in impoverished countries overseas. I certainly encourage every American concerned about HIV/AIDS, tuberculosis, and malaria overseas to voluntarily provide assistance to help alleviate the problem. But I do not believe it is appropriate — nor is it Constitutional — to forcibly take money from American citizens to send abroad. I urge my colleagues to reject this and all foreign aid legislation. money Full Committee Hearing on “Implications of a Weaker Dollar for Oil Prices and the U.S. Economy” July 24, 2008    2008 Ron Paul 50:2 The root of our current economic malaise, the weak dollar, the high price of oil, and the collapse of the housing market, comes about because almost no one understands what inflation is. Inflation is an increase in the money supply, which occurs by various methods, the printing of currency, low reserve requirements, Federal Reserve open market operations, etc. money Full Committee Hearing on “Implications of a Weaker Dollar for Oil Prices and the U.S. Economy” July 24, 2008    2008 Ron Paul 50:3 In Germany in the 1920s, South America in the 1980s, and Zimbabwe today, everyone recognizes that inflation was caused by the government running the printing presses non-stop, with the resulting exponential rise in prices being the necessary result of monetary growth. Yet somehow, both the empirical and theoretical reality of inflation as a rise in money supply is ignored in this country. Inflation is conflated with price inflation, the increase in the overall price level, and is viewed as something both endogenous to the market economy while at the same time influenced by exogenous price shocks. money Full Committee Hearing on “Implications of a Weaker Dollar for Oil Prices and the U.S. Economy” July 24, 2008    2008 Ron Paul 50:4 Because no one understands that inflation is growth in the monetary supply, no one is able to combat it effectively. We hear all sorts of hand-wringing about increasing inflation, and all sorts of explanations about how rising oil and food prices will make inflation worse. At the same time, the fact that MZM, the closest approximation to total money supply that still is reported by the Fed, is still rising by almost 15% per year and that M2 is rising significantly as well is quietly ignored. The pundits have causation backwards, it is inflation that leads to rising prices of oil and food, and not vice versa. money Full Committee Hearing on “Implications of a Weaker Dollar for Oil Prices and the U.S. Economy” July 24, 2008    2008 Ron Paul 50:5 Until the cause of inflation is understood, no effective strategy can be undertaken to combat it. The problem, however, is that the government does not want inflation to be done away with. Inflation benefits debtors and harms creditors, and the United States government is the biggest debtor of all. The United States government, the banking monopoly under the Federal Reserve System, and politically-connected firms and industries are the first entities to take advantage of new money injected into the system, before prices increase. As the increased supply of money begins to chase the same number of goods, prices rise, and the average American suffers. Poor and middle class Americans are always the hardest hit by inflation, as the weakening dollar makes the imported goods that many Americans depend on more expensive. money Full Committee Hearing on “Implications of a Weaker Dollar for Oil Prices and the U.S. Economy” July 24, 2008    2008 Ron Paul 50:6 As Chairman Bernanke admitted last week, inflation is a tax, and it is the most pernicious because of its hidden nature. It taxes the very purchasing power of money, and because the inflation rate in recent years has generally been low, its effects often take a while to manifest themselves. Now that inflation is beginning to rise, more and more rhetoric is being spun to hide the government’s role in creating inflation. I applaud Chairman Frank for holding this hearing, as hearings such as this one investigating the link between the weak dollar and the high price of oil are more important now than ever. money Statement on H. R. 6599, Military Construction/Veterans Affairs Appropriations 1 August 2008    2008 Ron Paul 57:2 This appropriation will allocate $9.5 billion to close bases in the United States while spending nearly $12 billion building other facilities overseas! As a matter of fact, any construction of new bases in the United States is prohibited by this bill. While I am not necessarily in favor of building new bases in the United States , we certainly should not be spending money to close existing domestic bases in favor of constructing new bases overseas. money “The Future of Financial Services: Exploring Solutions for the Market Crisis” September 24, 2008    2008 Ron Paul 59:4 Many here in Congress are asking where the money for this bailout will come from, and indeed it is a good question. $700 billion does not just materialize out of the ether, but then again neither do the hundreds of billions of dollars that we spend every year to fund our imperial war machine. We must the face the fact that our country is dead broke, and not just that, we are facing over $10 trillion in debt, and tens of trillions more in unfunded liabilities. This $700 billion bailout will only increase that debt, and increase the amount of money we pay merely to service the interest on that debt. The end result of this is higher taxes on our children and grandchildren, and the full-scale destruction of the dollar. money “The Economic Outlook” September 24, 2008    2008 Ron Paul 60:4 As with many other government proposals, the opportunity cost of this bailout goes unmentioned. $700 billion tied up in illiquid assets is $700 billion that is not put to productive use. That amount of money in the private sector could be used to research new technologies, start small business that create thousands of jobs, or upgrade vital infrastructure. Instead, that money will be siphoned off into unproductive assets which may burden the government for years to come. The great French economist Frederic Bastiat is famous for explaining the difference between what is seen and what is unseen. In this case the bailout’s proponents see the alleged benefits, while they fail to see the jobs, businesses, and technologies not created due to this utter waste of money. money CONSOLIDATED SECURITY, DISASTER ASSISTANCE, AND CONTINUING APPROPRIATIONS ACT, 2009 24 September 2008    2008 Ron Paul 63:2 I would not object to many of the items in this bill if they were offset by reductions on other, lower priority, programs. For example, I would support the disaster relief package if the package were offset by reductions in other spending, particularly reductions in our overseas commitments. Unfortunately, H.R. 2638 not only fails to reduce spending to finance disaster aid; it attaches money for the country of Georgia onto the disaster aid package. Georgia is not receiving this money because it was affected by a natural disaster but because it was involved in a military conflict with Russia —which was started by Georgia! It is an insult to the American people to divert money that could have gone to help the victims of Hurricane Ike to promote interference in a conflict that in no way threatens the security of the American people. money “The Bailout” September 29, 2008    2008 Ron Paul 65:1 Mr. PAUL. Madam Speaker, I rise in strong opposition to this bill. This is only going to make the problem that much worse. The problem came about because we spent too much; we borrowed too much, and we printed too much money; we inflated too much, and we overregulated. This is all that this bill is about is more of the same. So you can’t solve the problem. We are looking at a symptom. We are looking at the collapsing of a market that was unstable. It was unstable because of the way it came about. It came about because of a monopoly control of money and credit by the Federal Reserve System, and that is a natural consequence of what happens when a Federal Reserve System creates too much credit. money “The Bailout” September 29, 2008    2008 Ron Paul 65:13 Money’s most important function is to serve as a means of exchange—a measurement of value. If this crucial yardstick is not stable, it becomes impossible for investors, entrepreneurs, savers, and consumers to make correct decisions; these mistakes create the bubble that must eventually be corrected. money “The Bailout” September 29, 2008    2008 Ron Paul 65:14 Just imagine the results if a construction company was forced to use a yardstick whose measures changed daily to construct a skyscraper. The result would be a very unstable and dangerous building. No doubt the construction company would try to cover up their fundamental problem with patchwork repairs, but no amount of patchwork can fix a building with an unstable inner structure. Eventually, the skyscraper will collapse, forcing the construction company to rebuild—hopefully this time with a stable yardstick. This $700 billion package is more patchwork repair and will prove to be money down a rat hole and will only make the dollar crisis that much worse. money Statement on HR 1424 October 3, 2008    2008 Ron Paul 67:5 The money for this bailout does not just materialize out of thin air. The entire burden will be borne by the taxpayers, not now, because that is politically unacceptable, but in the future. This bailout will be paid for through the issuance of debt which we can only hope will be purchased by foreign creditors. The interest payments on that debt, which already take up a sizeable portion of federal expenditures, will rise, and our children and grandchildren will be burdened with increased taxes in order to pay that increased debt. money The Austrians Are Right November 20, 2008    2008 Ron Paul 71:3 Today, a major economic crisis is unfolding. New government programs are started daily, and future plans are being made for even more. All are based on the belief that we’re in this mess because free-market capitalism and sound money failed. The obsession is with more spending, bailouts of bad investments, more debt, and further dollar debasement. Many are saying we need an international answer to our problems with the establishment of a world central bank and a single fiat reserve currency. These suggestions are merely more of the same policies that created our mess and are doomed to fail. money The Austrians Are Right November 20, 2008    2008 Ron Paul 71:4 At least 90% of the cause for the financial crisis can be laid at the doorstep of the Federal Reserve. It is the manipulation of credit, the money supply, and interest rates that caused the various bubbles to form. Congress added fuel to the fire by various programs and institutions like the Community Reinvestment Act, Fannie Mae and Freddie Mac, FDIC, and HUD mandates, which were all backed up by aggressive court rulings. money The Austrians Are Right November 20, 2008    2008 Ron Paul 71:12 Over and above this are those who understand that political power is controlled by those who control the money supply. Liberals and conservatives, Republicans and Democrats came to believe, as they were taught in our universities, that deficits don’t matter and that Federal Reserve accommodation by monetizing debt is legitimate and never harmful. The truth is otherwise. Central economic planning is always harmful. Inflating the money supply and purposely devaluing the dollar is always painful and dangerous. money The Austrians Are Right November 20, 2008    2008 Ron Paul 71:15 The basic problem is that proponents of big government require a central bank in order to surreptitiously pay bills without direct taxation. Printing needed money delays the payment. Raising taxes would reveal the true cost of big government, and the people would revolt. But the piper will be paid, and that’s what this crisis is all about. money The Austrians Are Right November 20, 2008    2008 Ron Paul 71:16 There are limits. A country cannot forever depend on a central bank to keep the economy afloat and the currency functionable through constant acceleration of money supply growth. Eventually the laws of economics will overrule the politicians, the bureaucrats and the central bankers. The system will fail to respond unless the excess debt and mal-investment is liquidated. If it goes too far and the wild extravagance is not arrested, runaway inflation will result, and an entirely new currency will be required to restore growth and reasonable political stability. money The Austrians Are Right November 20, 2008    2008 Ron Paul 71:17 The choice we face is ominous: We either accept world-wide authoritarian government holding together a flawed system, OR we restore the principles of the Constitution, limit government power, restore commodity money without a Federal Reserve system, reject world government, and promote the cause of peace by protecting liberty equally for all persons. Freedom is the answer. money UNTITLED 10 December 2008    2008 Ron Paul 72:6 There is no real talk about it. I mean, we’ve essentially nationalized the insurance companies, the mortgage companies, the banks, and medical care is moving in that direction, and now the car companies are going to be run by a car czar from this Congress. I mean, it is such an embarrassment. It is such an insult to us who believe in freedom, who believe in sound money and who believe in limited government. It is such an insult to the whole idea of what made America great, and this is what it has come to—bailout after bailout after bailout—and nobody even calls it what it really is. It is the nationalization of our industries. money UNTITLED 10 December 2008    2008 Ron Paul 73:3 But we don’t seem to want to go back and find out how financial bubbles form and why they burst. Instead, we just carry on doing the same old thing and never look back. We spend more money, we run up more debt, we print more money, and we think that is going to solve the problem that was created by spending too much money, running up debt, printing too much money. And here we are today, we are talking about tinkering on the edges without dealing with the big problem. money UNTITLED 10 December 2008    2008 Ron Paul 73:4 The Federal Reserve has literally created over $2 trillion here in the last several months, at least in obligations, and that is outside the realm of the Congress. We don’t even audit the Federal Reserve. They create this money, and when the Fed Chairman comes before our committee and we ask, well, where did you dispose of this $2 trillion that you have created recently, he says well, it is not your business. That is not necessary. Under the law, he doesn’t even have to tell us. money INTRODUCING THE SOCIAL SECURITY BENEFICIARY TAX REDUCTION ACT AND THE SENIOR CITIZENS’ TAX ELIMINATION ACT January 6, 2009    2009 Ron Paul 1:3 Instead of imposing ridiculous taxes on senior citizens, Congress should ensure the integrity of the Social Security trust fund by ending the practice of using trust fund monies for other programs. This is why I am also introducing the Social Security Preservation Act, which ensures that all money in the Social Security trust fund is spent solely on Social Security. At a time when Congress’ inability to control spending continues to threaten the Social Security trust fund, the need for this legislation has never been greater. When the government taxes Americans to fund Social Security, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money INTRODUCING THE SOCIAL SECURITY BENEFICIARY TAX REDUCTION ACT AND THE SENIOR CITIZENS’ TAX ELIMINATION ACT January 6, 2009    2009 Ron Paul 1:4 In conclusion, Madam Speaker, I urge my colleagues to help free senior citizens from oppressive taxation by supporting my Senior Citizens’ Tax Elimination Act and my Social Security Beneficiary Tax Reduction Act. I also urge my colleagues to ensure that moneys from the Social Security trust fund are used solely for Social Security benefits and not wasted on frivolous government programs. money INTRODUCTION OF THE SOCIAL SECURITY PRESERVATION ACT January 6, 2009    2009 Ron Paul 2:1 Mr. PAUL. Madam Speaker, I rise to protect the integrity of the Social Security trust fund by introducing the Social Security Preservation Act. The Social Security Preservation Act is a rather simple bill which states that all moneys raised by the Social Security trust fund will be spent in payments to beneficiaries, with excess receipts invested in interest-bearing certificates of deposit. This will help keep Social Security trust fund moneys from being diverted to other programs, as well as allow the fund to grow by providing for investment in interest- bearing instruments. money INTRODUCTION OF THE SOCIAL SECURITY PRESERVATION ACT January 6, 2009    2009 Ron Paul 2:2 The Social Security Preservation Act ensures that the government will keep its promises to America’s seniors that taxes collected for Social Security will be used for Social Security. When the government taxes Americans to fund Social Security, it promises the American people that the money will be there for them when they retire. Congress has a moral obligation to keep that promise. money Bailout January 14, 2009    2009 Ron Paul 8:2 There has been a lot of money involved and a lot of money spent. There have been appropriations that we’ve made here in the Congress as well as the trillions of dollars the Federal Reserve has used to try to bail out the financial industry, and nothing seems to be working. money Bailout January 14, 2009    2009 Ron Paul 8:3 I think it’s mainly because we haven’t recognized nor have we admitted that excessive spending can cause financial problems. Excessive debt can cause some problems. Inflation – that is, the creation of new money and credit out of thin air – can cause a lot of problems, and we’ve been doing it for decades. It was predictable. It was not a surprise that we got ourselves into a financial mess because of a system that is deeply flawed. money Bailout January 14, 2009    2009 Ron Paul 8:4 So what do we have? What have we been doing now for the last 6 months to a year? We have been spending more. We have been running up debt like we’ve never run up debt before, and we’re printing money like we never have before. We think that is going to solve the problem. That literally has been the cause: too much spending, too much borrowing and too much inflation. money Bailout January 14, 2009    2009 Ron Paul 8:5 I do want to address the subject more specifically about moral hazard and why the system was so deeply flawed. That is, when a Federal Reserve system and a central bank create easy money and easy credit and they have interest rates lower than they should be, businesspeople do the wrong things. They make mistakes. It’s called malinvestments, and we’ve been doing it for a long time. It causes financial bubbles, and they have to be corrected. money Bailout January 14, 2009    2009 Ron Paul 8:8 Then we subsidized the insurance. The government-subsidized insurance program further promoted the principle of moral hazard – people doing things, spending money and investing in the incorrect way. money LIVING BENEATH OUR MEANS January 21, 2009    2009 Ron Paul 10:2 Living and consuming on borrowed money always end. Lenders, even in an age of inflation, have their limits. When living extravagantly, it seems the good times will continue forever, but when the bills come due and the debt, with interest, needs to be paid, the good times end. money LIVING BENEATH OUR MEANS January 21, 2009    2009 Ron Paul 10:4 A nation that has lived beyond its means for a long period of time must go through a similar process. Once the national debt grows to an extreme proportion, as ours has, there is no possibility of it being paid off in the conventional sense. Default and liquidation are required, but sovereign states that enjoy the ruthless power to tax and create new money always resort to paying their pays by deliberately depreciating the currency. This makes it hard to identify the victims and the beneficiaries. money LIVING BENEATH OUR MEANS January 21, 2009    2009 Ron Paul 10:6 We have become the greatest debtor nation in the world. The borrowed money was not used to build our industries but was used mainly for consumption. The fact that the world trusted the dollar as the reserve currency significantly contributed to the imbalances of the world financial system. The fiat dollar standard that evolved after the breakdown of Bretton Woods in 1971 has ended. This is a consequence of our privileged position of living way beyond our means for too many years. money LIVING BENEATH OUR MEANS January 21, 2009    2009 Ron Paul 10:7 At present, all efforts worldwide are directed toward salvaging a financial system that cannot be revived. The only tool the economic planners have is the creation of trillions of dollars of new money out of thin air. All this does is delay the inevitable and magnify the future danger. money LIVING BENEATH OUR MEANS January 21, 2009    2009 Ron Paul 10:10 Even massive bailouts cannot work. If they did, no person in the United States would ever have to work again. We need to wake up and recognize the importance of sound money. We need to reintroduce the work ethic. We must once again cherish savings over consumption. We must recognize that an overextended foreign policy has been the downfall of all great nations. And, above all else, we need to simply believe once again in the free society that made America great. money More Spending Isn’t The Answer January 22, 2009    2009 Ron Paul 11:2 Actually, we should have talked more about prevention of a problem like we have today than trying to deal with the financial cancer that we are dealing with. But the prevention could have come many decades ago. And many free-market economists predicted, even decades ago, that we would have a crisis like this. But those warnings were not heeded, and even in the last 10 years there have been dire warnings by people who believe in sound money and not in the inflationary system that we have that we will come to this point. money More Spending Isn’t The Answer January 22, 2009    2009 Ron Paul 11:8 But this is a remnant of the philosophy of the 1930s when it was thought we were in trouble because the farmers weren’t getting enough money for their crops. So people were starving in the streets, and guess what the policy was that came out of Washington: plow under the crops and then maybe the prices will go up. Diminish the supply, and it will solve our problem. It didn’t work then, it won’t work today. money THE TAX FREE TIPS ACT January 28, 2009    2009 Ron Paul 13:2 Many service-sector employers are young people trying to make money to pay for their education, or single parents struggling to provide for their children. Oftentimes, these workers work two jobs in hopes of making a better life for themselves and their families. The Tax Free Tips Act gives these hard-working Americans an immediate pay raise. People may use this pay raise to devote more resources to their children’s, or their own, education, or to save for a home, retirement, or to start their own businesses. money FEDERAL RESERVE BOARD ABOLITION ACT February 3, 2009    2009 Ron Paul 14:2 From the Great Depression, to the stagflation of the seventies, to the current economic crisis caused by the housing bubble, every economic downturn suffered by this country over the past century can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts. money FEDERAL RESERVE BOARD ABOLITION ACT February 3, 2009    2009 Ron Paul 14:4 Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of special interests and their own appetite for big government. money FEDERAL RESERVE BOARD ABOLITION ACT February 3, 2009    2009 Ron Paul 14:5 Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy. money FEDERAL RESERVE BOARD ABOLITION ACT February 3, 2009    2009 Ron Paul 14:6 In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy. money FEDERAL RESERVE BOARD ABOLITION ACT February 3, 2009    2009 Ron Paul 14:7 In conclusion, Madam Speaker, I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money supply which erodes Americans’ standard of living, enlarges big government, and enriches well-connected elites, by cosponsoring my legislation to abolish the Federal Reserve. money INTRODUCTION OF THE TAX RELIEF FOR TRANSPORTATION WORKERS ACT February 13, 2009    2009 Ron Paul 16:2 When Congress created the TWIC requirement, it placed the burden of paying the cost of obtaining the card on individual workers. Imposing the costs of obtaining TWICs on port workers has several negative economic impacts that Congress should help mitigate by making the cost associated with obtaining a TWIC tax deductible. According to the Department of Homeland Security, a port worker will have to pay between $100 and $132 to obtain a card. The worker will also have to pay a $60 fee for every card that is lost or damaged. Even those employers whose employers pay the substantial costs of obtaining TWICs for their workforce are adversely affected by the TWIC requirement, as the money employers pay for TWICs is money that cannot go into increasing their workers’ salaries. The costs of the TWIC requirement may also cause some employers to refrain from hiring new employees. money FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:2 Artificially low interest rates are achieved by inflating the money supply. Low interest rates penalize the thrifty, and those who save are cheated. It promotes consumption and borrowing over savings and investing. Manipulating interest rates is an immoral act, it is economically destructive. The policy of artificially low interest rates caused our problems and, therefore, cannot be the solution. money FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:4 Central bankers, politicians and bureaucrats can’t know what the proper rate should be. They lack the knowledge and are deceived by their aggrandizement. Manipulating the money supply and interest rates rejects all the principles of the free market. money FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:5 Ironically, free markets and sound money generates low rates, but unlike the artificially low rates orchestrated by the Fed, the information conveyed is beneficial to investors and savers. money FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:6 The Congress, by conceding this authority, conveys extraordinary economic powers to the elite few. This is a power that has been abused throughout history. Only the Federal Reserve can inflate the currency, creating new money and credit out of thin area, in secrecy, without oversight or supervision. money FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:11 Wealth cannot be achieved by creating money by fiat. It instead destroys wealth and it rewards the special interests. Depending on monetary fraud for national prosperity or a reversal of our downward spiral is riskier than depending on the lottery. money Humphrey-Hawkins Hearing Statement February 25, 2009    2009 Ron Paul 18:4 When banking giants are reimbursed for their losses through redistribution of taxpayer money, what lesson do we expect them to learn? Can anyone in Washington say with a straight face that these banks will shape up their business practices when they are almost guaranteed billions of dollars in taxpayer funds? Even if this does provide a temporary lifeline, it only delays the inevitable collapse of a banking system built on an unsustainable model. Fractional-reserve banking is completely dependent on faith in the banks’ abilities to repay depositors, and when that ability is thrown into doubt, the house of cards comes crashing down. The Federal Reserve may be able to manage public confidence, but confidence only goes so far. When banks are required to hold a maximum of ten percent of their deposits on reserve, the system is fundamentally insolvent. Such a system cannot be propped up or bailed out, except at the cost of massive creation of money and credit, which would result in a hyperinflation that would completely destroy our economy. money THE TAXPAYER’S FREEDOM OF CONSCIENCE ACT February 26, 2009    2009 Ron Paul 19:1 Mr. PAUL. Madam Speaker, I am pleased to introduce the Taxpayers’ Freedom of Conscience Act, which forbids federal funds from being used for population control or “family planning.” The recent executive order allowing those who perform and/or promote abortion overseas to receive taxpayer money brings new urgency to the need to protect pro-life Americans from being forced to subsidize abortion. money THE TAXPAYER’S FREEDOM OF CONSCIENCE ACT February 26, 2009    2009 Ron Paul 19:2 It is not enough to say that “family planning” groups may not use federal funds to perform or promote abortion. After all, since money is fungible, federal funding of any activities of these organizations forces taxpayers to underwrite the organizations’ abortion activities. Thus, the Taxpayers’ Freedom of Conscience Act is the only way to protect taxpayers from having to support what they “disbelieve and abhor.” money THE TAXPAYER’S FREEDOM OF CONSCIENCE ACT February 26, 2009    2009 Ron Paul 19:3 Thomas Jefferson eloquently made the case for Taxpayer’s Freedom of Conscience Act when he said that: “To compel a man to furnish contributions of money for the propagation of opinions which he disbelieves and abhors is sinful and tyrannical.” money The Federal Reserve Transparency Act February 26, 2009    2009 Ron Paul 20:5 More importantly, the Fed’s funding facilities and its agreements with the Treasury should be reviewed. The Treasury’s supplementary financing accounts that fund Fed facilities allow the Treasury to funnel money to Wall Street without GAO or Congressional oversight. Additional funding facilities, such as the Primary Dealer Credit Facility and the Term Securities Lending Facility, allow the Fed to keep financial asset prices artificially inflated and subsidize poorly performing financial firms. money THE END IS NOT NEAR March 4, 2009    2009 Ron Paul 21:10 This crisis demands that we quickly come to our senses and reject the foreign policy of interventionism. Neither credit coming from a Federal Reserve computer nor dollars coming from a printing press can bail us out of this mess. Only the rule of law, commodity money and liberty can do that. money EARMARKS March 10, 2009    2009 Ron Paul 24:2 The truth is that if you removed all the earmarks from the budget, you would remove 1 percent of the budget. So there’s not a lot of savings. But, even if you voted against all the earmarks actually, you don’t even save the 1 percent because you don’t save any money. money EARMARKS March 10, 2009    2009 Ron Paul 24:3 What is done is, those earmarks are removed, and some of them are very wasteful and unnecessary, but that money then goes to the executive branch. So, in many ways, what we are doing here in the Congress is reneging on our responsibilities, because it is the responsibility of the Congress to earmark. That is our job. We are supposed to tell the people how we are spending the money, not to just deliver it in a lump sum to the executive branch and let them deal with it, and then it’s dealt with behind the scenes. money EARMARKS March 10, 2009    2009 Ron Paul 24:4 Actually, if you voted against all the earmarks, there would be less transparency. Earmarks really allow transparency, and we know exactly where the money is being spent. money EARMARKS March 10, 2009    2009 Ron Paul 24:7 Just think of the $350 billion that we recently appropriated and gave to the Treasury Department. Now everybody’s running around and saying, Well, we don’t know where the money went. We just gave it to them in a lump sum. We should have earmarked everything. It should have been designated where the money is going. money EARMARKS March 10, 2009    2009 Ron Paul 24:10 When people are yelling and screaming about getting rid of earmarks, they’re not talking about getting rid of weapons systems or building buildings and bridges and highways in foreign countries. They are only talking about when it’s designated that certain money would be spent a certain way in this country. money EARMARKS March 10, 2009    2009 Ron Paul 24:11 Ultimately, where we really need some supervision and some earmarks are the trillions of dollars spent by the Federal Reserve. They get to create their money out of thin air, and spend it. They have no responsibility to tell us anything. Under the law, they are excluded from telling us where and what they do. money EARMARKS March 10, 2009    2009 Ron Paul 24:12 So, we neglect telling the Treasury how to spend TARP money, and then we complain about how they do it. But just think literally; the Treasury is miniscule compared to what the Federal Reserve does. money EARMARKS March 10, 2009    2009 Ron Paul 24:13 The Treasury gets hundreds of billions, which is huge, of course, and then we neglect to talk about the Federal Reserve, where they are creating money out of thin air, and supporting all their friends and taking care of certain banks and certain corporations. This, to me, has to be addressed. money EARMARKS March 10, 2009    2009 Ron Paul 24:14 I have introduced a bill, it’s called H.R. 1207, and this would remove the restriction on us to find out what the Federal Reserve is doing. Today, the Federal Reserve under the law is not required to tell us anything. So all my bill does is remove this restriction and say, Look, Federal Reserve, you have a lot of power. You have too much power. You’re spending a lot of money. You’re taking care of people that we have no idea what you’re doing. We, in the Congress, have a responsibility to know exactly what you’re doing. money EARMARKS March 10, 2009    2009 Ron Paul 24:16 The Constitution doesn’t protect the Federal Reserve. The Constitution protects the people to know exactly what is going on. We should enforce the Constitution. We should not enforce these laws that protect a secret bank that gets to create this money out of thin air. money INTRODUCING THE CHILD HEALTH CARE AFFORDABILITY ACT March 12, 2009    2009 Ron Paul 27:7 Madam Speaker, this Congress has a moral responsibility to provide tax relief so that low- income parents struggling to care for a sick child can better meet their child’s medical expenses. Some may say that we cannot enact the Child Health Care Affordability Act because it would cause the government to lose revenue. But, who is more deserving of this money, Congress or the working parents of a sick child? money Statement in Opposition to HR 1388 - National Service March 18, 2009    2009 Ron Paul 33:1 Mr. PAUL. Mr. Chair, I rise to oppose HR 1388. The idea that it is legitimate for the federal government to take money from one group of citizens and use that money to bribe other citizens into performing “national service” violates the basic moral principles of individual liberty that this country was founded upon. money Blame Congress For Results March 19, 2009    2009 Ron Paul 34:3 Yesterday, for instance, the Federal Reserve met and they came out and announced that they would create new money to the tune of $1.25 trillion. The dollar promptly went down 3 percent, and today it went down another 1.5 percent. And today on emergency legislation, we’re going to deal with $165 million worth of bonuses, which obviously should have never been given. But who’s responsible for this? It’s the Congress and the President, who signed this. money Blame Congress For Bonuses March 19, 2009    2009 Ron Paul 35:3 I don’t believe that this resolution really addresses the real problem that we have. It looks like it’s giving the administration an excuse by saying that he is only doing what we have asked him to do, and the administration. And in many ways this is true. The real fault, I think, falls within the Congress ever giving this money and allowing this to happen. But to excuse the administration and then complain about these bonuses and think that that can solve our problems, it just won’t do that. money Blame Congress For Bonuses March 19, 2009    2009 Ron Paul 35:4 The real outrage, I think, is the lack of monitoring of what we do; we give out money, we have no strings attached, we give out hundreds of billions of dollars, and we totally ignore what the Federal Reserve does by issuing literally trillions of dollars. And yet, this is the emergency legislation. money Blame Congress For Bonuses March 19, 2009    2009 Ron Paul 35:5 This is politically driven, I happen to believe. I think people would like to express their outrage, and they do. And it’s an easy target, picking on AIG, but we create these problems; we create them by doing things that are unconstitutional. We come up with these schemes and these expressions and excuses, and at the same time, we don’t address the subject of why do we spend money, and why do we allow a monetary system to operate without any supervision by the Congress? That’s where our real problem is. And someday we will address that and deal with this rather than doing it in the political way of saying, well, it’s not our fault, it’s their fault. money GENERATIONS INVIGORATING VOLUNTEERISM AND EDUCATION ACT March 19, 2009    2009 Ron Paul 37:1 Mr. PAUL. Mr. Chair, I rise to oppose H.R. 1388. The idea that it is legitimate for the federal government to take money from one group of citizens and use that money to bribe other citizens into performing “national service” violates the basic moral principles of individual liberty that this country was founded upon. money Federal Reserve Monetizes Debt April 1, 2009    2009 Ron Paul 41:7 If we understood the tenth amendment, we wouldn’t be doing all of this. We wouldn’t have a deficit. If we understood monetary policy, we wouldn’t have a monetary system that encourages all of this that gets us off the hook because conservatives like to spend a lot of money, and liberals like to spend a lot of money. And they don’t have to worry. We raise taxes. We borrow it. And we do it, and we’ve been doing it for decades and getting away with it. But it’s coming to an end because we’ve always been dependent on the Fed to come in and monetize the debt. money Federal Reserve Monetizes Debt April 1, 2009    2009 Ron Paul 41:12 Now, if an individual or a company goes into debt, it can be liquidated in the old-fashioned way of bankruptcies. Countries don’t go bankrupt. What they do is they default on a debt. That doesn’t mean they won’t pay it. They pay it off in bad money. And literally, that is the purpose of the Federal Reserve right now is to lower the real debt. So if you destroy 50 percent of the value of the dollar in the next year or two, the real debt has gone down 50 percent. money FAMILY EDUCATION FREEDOM ACT April 2, 2009    2009 Ron Paul 43:5 Today, Congress can fulfill the wishes of the American people for greater control over their children’s education by simply allowing parents to keep more of their hard-earned money to spend on education rather than force them to send it to Washington to support education programs reflective only of the values and priorities of Congress and the federal bureaucracy. money INTRODUCING THE MAKE COLLEGE AFFORDABLE ACT April 2, 2009    2009 Ron Paul 46:4 Helping the American people use their own money to ensure every qualified American can receive a college education is one of the best investments this Congress can make in the future. I therefore urge my colleagues to help strengthen America by ensuring more Americans can obtain college educations by cosponsoring the Make College Affordable Act. money INTRODUCING THE AGRICULTURE EDUCATION FREEDOM ACT April 2, 2009    2009 Ron Paul 47:2 Think about this for a moment. These kids are trying to better themselves, earn some money, save some money and what does Congress do? We pick on these kids by taxing them. It is truly amazing that with all the hand- wringing in Congress over the alleged need to further restrict liberty and grow the size of government “for the children” we would continue to tax young people who are trying to lead responsible lives and prepare for the future. Even if the serious social problems today’s youth face could be solved by new federal bureaucracies and programs, it is still unfair to pick on those kids who are trying to do the right thing. money INTRODUCING THE AGRICULTURE EDUCATION FREEDOM ACT April 2, 2009    2009 Ron Paul 47:4 It is time we stopped taxing youngsters who are trying to earn money to go to college by selling livestock they have raised through their participation in programs such as 4–H or Future Farmers of America. Therefore, I call on my colleagues to join me in supporting the Agriculture Education Freedom Act. money TRIBUTE TO BURT BLUMERT April 2, 2009    2009 Ron Paul 49:2 As the founder and manager of Camino Coins in Burlingame, CA, Burt was one of the nation’s leading dealers in gold and silver coins. A student of Ludwig von Mises and the Austrian school of economics, Burt understood the important role precious metals played in protecting ordinary citizens from the damage wrought by fiat money and inflation. Thus, he regarded his work as a coin dealer not just as a business, but as an opportunity to help people by providing with some protection from the Federal Reserve’s inflation tax. money TRIBUTE TO BURT BLUMERT April 2, 2009    2009 Ron Paul 49:9 As I travel across the country, I am astounded at the number of young people I met who are interested in the cause of individual liberty, peace, and sound money. Many of them got their introduction to these ideas through one of the many organizations nurtured by Burt Blumert. money INTRODUCTION OF THE LIBERTY AMENDMENT April 30, 2009    2009 Ron Paul 50:1 Mr. PAUL. Madam Speaker, I am pleased to introduce the Liberty Amendment, which repeals the 16th Amendment, thus paving the way for real change in the way government collects and spends the people’s hard-earned money. The Liberty Amendment also explicitly forbids the Federal government from performing any action not explicitly authorized by the United States Constitution. money INTRODUCTION OF THE LIBERTY AMENDMENT April 30, 2009    2009 Ron Paul 50:5 Income taxes not only diminish liberty, they retard economic growth by discouraging work and production. Our current tax system also forces Americans to waste valuable time and money on compliance with an ever-more complex tax code. The increased interest in flat- tax and national sales tax proposals, as well as the increasing number of small businesses that question the Internal Revenue Service’s IRS) “withholding” system provides further proof that America is tired of the labyrinthine tax code. Americans are also increasingly fed up with an IRS that continues to ride roughshod over their civil liberties, despite recent “pro-taxpayer” reforms. money HONORING JACK KEMP May 6, 2009    2009 Ron Paul 53:2 Jack is probably best known for the key role he played in the “supply side revolution” that led to the tax rate reductions of the early eighties. However, what I most remember about Jack was that he was one of the few politicians I have met who understood how fiat money harms Americans. Jack was passionate about reforming monetary policy so America would again have, as Jack memorably put it, a “dollar as good as gold.” It was largely due to Jack’s efforts that the Republican Party platform of 1980 endorsed a return to the gold standard. Jack’s support was instrumental in me being named to the U.S. Gold Commission in 1982. While I was not always in total agreement with Jack’s views on monetary policy, I always appreciated his interest in the issue. money HONORING JACK KEMP May 6, 2009    2009 Ron Paul 53:4 In conclusion, I urge my colleagues to support H. Res. 401 and honor the best of Jack Kemp’s legacy by working for low taxes, sound money, and a sensible foreign policy. money AMERICA’S TREASURY IS BARE May 14, 2009    2009 Ron Paul 54:2 When the President sent the supplemental over, it was $84.9 billion. And there were some of us that were hoping that we wouldn’t be funding the war through supplementals, but it looks like that hasn’t changed, the process would continue, even though there were some that believed there would be a change in the way we funded these wars. When that bill came to the House, there was a lot of expression about concern about spending too much money. But by the time it got to the floor, it was $96.7 billion. And things were added, for instance, $2 billion for the flu epidemic that didn’t occur, but still, we are going to spend $2 billion trying to figure out whether we are ever going to have an epidemic. money AMERICA’S TREASURY IS BARE May 14, 2009    2009 Ron Paul 54:3 It was very disappointing that even though it was a closed rule, the minority had one chance to do something about it and maybe reduce some of the spending. But lo and behold, when that amendment was offered, it was offered to increase the spending by $2.9 billion. There was a lot of expression of the outcry about this spending and the deficits we have and the deficits exploding and the Social Security, Medicare, Medicaid underfunded, and we are in the midst of a crisis. But it doesn’t seem to bother anybody about spending. But the truth is, the Treasury is bare. The Treasury is empty. And yet we continue to spend all this money. money AMERICA’S TREASURY IS BARE May 14, 2009    2009 Ron Paul 54:4 So where do they think they are going to get this money? Well, we can’t tax the people any more. The people are broke. And yet still we resort to more borrowing and more printing of money which will not last forever. It will eventually come to an end. And I think that is what we are witnessing. money AMERICA’S TREASURY IS BARE May 14, 2009    2009 Ron Paul 54:5 This process bothers me a whole lot that we come to the floor with the supplementals. We rush them through. We talk about this excessive spending. And lo and behold, when we finally vote, we get a total of 60 people who would say, Enough is enough. And besides, what are we doing? Where are we spending this money? I thought we were supposed to, with this change in administration, that we would be fighting less wars. But no. The war in Iraq continues. We expand the war in Afghanistan. We spread the war into Pakistan. And we always have on the table the potential danger of Iran. money AMERICA’S TREASURY IS BARE May 14, 2009    2009 Ron Paul 54:8 What about the financial calamity that is coming? I’m afraid this is the way this will end, through another financial crisis much bigger than the one we currently have, because you can’t create $2 trillion of new money every year and expect this system to continue. money AMERICA’S TREASURY IS BARE May 14, 2009    2009 Ron Paul 54:10 So if we care about the American people and care about our liberties and care about our Constitution, we ought to look seriously at our foreign policy and not continue to pursue the supplemental appropriations where we continue to spend money that we don’t have. money CURRENT CONDITIONS OR JUST A BAD DREAM May 19, 2009    2009 Ron Paul 56:2 We have broken from reality – a psychotic Nation. Ignorance with a pretense of knowledge replacing wisdom. Money does not grow on trees, nor does prosperity come from a government printing press or escalating deficits. money CURRENT CONDITIONS OR JUST A BAD DREAM May 19, 2009    2009 Ron Paul 56:3 We’re now in the midst of unlimited spending of the people’s money, exorbitant taxation, deficits of trillions of dollars – spent on a failed welfare/warfare state; an epidemic of cronyism; unlimited supplies of paper money equated with wealth. money INTRODUCTION OF THE AFFORDABLE GAS PRICE ACT May 21, 2009    2009 Ron Paul 60:7 Finally, the Affordable Gas Price Act creates a Federal study on how the abandonment of the gold standard and the adoption of freely floating currencies are affecting the price of oil. It is no coincidence that oil prices first became an issue shortly after President Nixon unilaterally severed the dollar’s last connection to gold. The system of fiat money makes consumers vulnerable to inflation and to constant fluctuations in the prices of essential goods such as oil. money MISTAKES: JUST A FEW! June 3, 2009    2009 Ron Paul 63:6 Inflating the money supply over 100 percent in less than a year is no way to restore confidence to a failing financial system. Expect huge price increases in the future. money MISTAKES: JUST A FEW! June 3, 2009    2009 Ron Paul 63:7 We have set the stage for further expanding the money supply many folds over through fractional reserve banking. money Rep. Paul Opposes Bill June 10, 2009    2009 Ron Paul 65:7 Think of what our troops and our money have done in Afghanistan as well as in Iraq. I think this provision, itself, is enough reason to vote against this authorization. money Statement on War Supplemental Appropriations June 16, 2009    2009 Ron Paul 67:2 This conference report, being a Washington- style compromise, reflects one thing Congress agrees on: spending money we do not have. So this “compromise” bill spends 15 percent more than the president requested, which is $9 billion more than in the original House bill and $14.6 billion more than the original Senate version. Included in this final version – in addition to the $106 billion to continue the wars in Afghanistan and Iraq – is a $108 billion loan guarantee to the International Monetary Fund, allowing that destructive organization to continue spending taxpayer money to prop up corrupt elites and promote harmful economic policies overseas. money COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:6 After several meetings, some in storm- swamped buildings under generator-powered lights, representatives of Frost, HomeTown, Moody National and Texas First banks agreed to make unsecured bridge loans to island businesses for rebuilding until federal money and insurance payments materialized. money COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:21 Bankers are the first to say their efforts weren’t without self-interest. They certainly earned money from the loans. And they made loans based on credit history, long- standing relations and with the understanding they would be repaid. money Statement at Financial Services Committee Hearing July 21, 2009    2009 Ron Paul 82:1 The Federal Reserve in collaboration with the giant banks has created the greatest financial crisis the world has ever seen. The foolish notion that unlimited amounts of money and credit, created out of thin air, can provide sustained economic growth has delivered this crisis to us. Instead of economic growth and stable prices it has given us a system of government and finance that now threatens the world financial and political institutions. money Statement at Financial Services Committee Hearing July 21, 2009    2009 Ron Paul 82:2 Real unemployment is now 20% and there has not been any economic growth since the onset of the crisis in the year 2000, according to non-government statistics. Pyramiding debt and credit expansion, over the past 38 years, has come to an abrupt end – as predicted by free-market economists. Pursuing the same policy of excessive spending, debt expansion, and monetary inflation, can only compound the problems and prevent the required correction. Doubling the money supply didn’t work; quadrupling it won’t work either. The problem of debt must be addressed. money H.R. 3269 July 31, 2009    2009 Ron Paul 89:5 In order to understand the reasons behind excessive executive compensation, we need to take a look at the root causes. The salaries and bonuses raising the most ire are those from the financial sector, the sector which directly benefits from the Federal Reserve’s loose monetary policy. Loose monetary policy leads to speculative bubbles which drive up stock prices and enrich executives who cash in their stock options. It makes debt cheaper, which encourages reckless business expansion. And it shuttles money from industries that produce valuable products and services to industries that are favored by the federal government. H.R. 3269 is a well-intended but misguided piece of legislation. Until we strike at the root of the problem, we will never get our financial system back on a firm footing. money Foreign Policy September 30, 2009    2009 Ron Paul 92:2 Mr. Speaker, I rise in opposition to this bill. Sometimes I wonder how we can, with a straight face, bring a bill up like this with the conditions of this country, especially financially. I oppose this bill for two reasons. One, we don’t have the money. That would be a pretty good reason not to support it. And the other reason is I do not believe it’s in our national security interests. I know this is being promoted as benefiting our national security, but I do not believe it helps us one bit. This bill was essentially voted on in June, and the vote was 234–185, which means that it is assumed at least 56 or more individuals in the Congress have switched their votes. money Foreign Policy September 30, 2009    2009 Ron Paul 92:4 Now, the bill is defined as fortifying democratic institutions. That is a good goal. But it never, never works. We are in 130 countries, we have 700 bases around the world, and we pursue this, and we are bankrupting our country by trying to maintain this empire. I have often made the point that the way we treat our fellow countries around the world is we tell them what to do, and if they do it we give them money. If they don’t do it, we bomb them. Under this condition, we are doing both. We are currently dropping bombs in Pakistan. The CIA is dropping bombs, and innocent people get killed. money Afghanistan, Part 2 November 18, 2009    2009 Ron Paul 97:1 Mr. PAUL. I thank you for yielding. I want to just make a couple of points in closing. The statement at the beginning of this war was made that it’s different this time. Even though the history is well known about Afghanistan – it’s ancient history, but it’s different this time because we’re different, and it’s not going to have the same result. But so far, you know, they haven’t caught Osama bin Laden, and we don’t have a national government, really. We don’t have really honest elections. We haven’t won the hearts and minds of the people. There is a lot of dissension, and it is a miserable place. It is really a total failure, let alone the cost, the cost of life and limb and money. I mean, it is just a total failure. The thought that we would pursue this and expand it and send more troops just blows my mind. money TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:4 The Federal Reserve’s monetary inflation, indeed, does push the CPI upward, but concentrating on the government’s reports of the CPI and the PPI is nothing more than the distraction from the other harm done by the Federal Reserve’s effort at central economic planning through secret monetary policy operations. Real inflation, the expansion of our money supply, is greatly undercounted by these indices. In response to our latest financial crisis, the Federal Reserve turned on its printing press and literally doubled the monetary base. This staggering creation of dollars has yet to be reflected in many consumer prices, but will ultimately hit the middle class and poor with a cruel devaluation of their savings and real earnings. money TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:10 This belief is a dream that one day will become a nightmare for all Americans unless we come to our senses, stop our wild spending, runaway deficits, printing press money, massive bureaucratic regulations, and our unnecessary world empire. A crucial step towards fixing these problems will be transparency of the Federal Reserve. money THE QUAGMIRE OF AFGHANISTAN December 2, 2009    2009 Ron Paul 101:4 But just think of the tragedy of Vietnam, all those years and all those deaths and all that money spent. Eventually we left, and South Vietnam is now a unified country, but we still have troops in Korea, in Europe, and in Japan. And we are bankrupt. So some day we are going to have to wake up and look at the type of foreign policy that the Founders advised us to have, and that is nonintervention: don’t get involved in the internal affairs of other nations, have free and open trade and accept friendship with other countries who offer it, and that we shouldn’t be the policemen of the world and we shouldn’t be telling other people what to do. We cannot be the policemen of the world and pay for all those bills because we are literally bankrupt. money INTRODUCING THE FREE COMPETITION IN CURRENCY ACT December 9, 2009    2009 Ron Paul 102:1 Mr. PAUL. Madam Speaker, I rise to introduce the Free Competition in Currency Act of 2009. Currency, or money, is what allows civilization to flourish. In the absence of money, barter is the name of the game; if the farmer needs shoes, he must trade his eggs and milk to the cobbler and hope that the cobbler needs eggs and milk. Money makes the transaction process far easier. Rather than having to search for someone with reciprocal wants, the farmer can exchange his milk and eggs for an agreed-upon medium of exchange with which he can then purchase shoes. money INTRODUCING THE FREE COMPETITION IN CURRENCY ACT December 9, 2009    2009 Ron Paul 102:2 This medium of exchange should satisfy certain properties: it should be durable, that is to say, it does not wear out easily; it should be portable, that is, easily carried; it should be divisible into units usable for everyday transactions; it should be recognizable and uniform, so that one unit of money has the same properties as every other unit; it should be scarce, in the economic sense, so that the extant supply does not satisfy the wants of everyone demanding it; it should be stable, so that the value of its purchasing power does not fluctuate wildly; and it should be reproducible, so that enough units of money can be created to satisfy the needs of exchange. money INTRODUCING THE FREE COMPETITION IN CURRENCY ACT December 9, 2009    2009 Ron Paul 102:6 The first step consists of eliminating legal tender laws. Article I Section 10 of the Constitution forbids the States from making anything but gold and silver a legal tender in payment of debts. States are not required to enact legal tender laws, but should they choose to, the only acceptable legal tender is gold and silver, the two precious metals that individuals throughout history and across cultures have used as currency. However, there is nothing in the Constitution that grants the Congress the power to enact legal tender laws. We, the Congress, have the power to coin money, regulate the value thereof, and of foreign coin, but not to declare a legal tender. Yet, there is a section of U.S. Code, 31 U.S.C. 5103, that purports to establish U.S. coins and currency, including Federal Reserve notes, as legal tender. money INTRODUCING THE FREE COMPETITION IN CURRENCY ACT December 9, 2009    2009 Ron Paul 102:7 Historically, legal tender laws have been used by governments to force their citizens to accept debased and devalued currency. Gresham’s Law describes this phenomenon, which can be summed up in one phrase: bad money drives out good money. An emperor, a king, or a dictator might mint coins with half an ounce of gold and force merchants, under pain of death, to accept them as though they contained one ounce of gold. Each ounce of the king’s gold could now be minted into two coins instead of one, so the king now had twice as much “money” to spend on building castles and raising armies. As these legally overvalued coins circulated, the coins containing the full ounce of gold would be pulled out of circulation and hoarded. We saw this same phenomenon happen in the mid-1960s when the U.S. government began to mint subsidiary coinage out of copper and nickel rather than silver. The copper and nickel coins were legally overvalued, the silver coins undervalued in relation, and silver coins vanished from circulation. money INTRODUCING THE FREE COMPETITION IN CURRENCY ACT December 9, 2009    2009 Ron Paul 102:9 In the absence of legal tender laws, Gresham’s Law no longer holds. If people are free to reject debased currency, and instead demand sound money, sound money will gradually return to use in society. Merchants would have been free to reject the king’s coin and accept only coins containing full metal weight. money INTRODUCING THE FREE COMPETITION IN CURRENCY ACT December 9, 2009    2009 Ron Paul 102:13 Just as pernicious are the sales and use taxes which are assessed on gold and silver at the state level in many States. Imagine having to pay sales tax at the bank every time you change a $10 bill for a roll of quarters to do laundry. Inflation is a pernicious tax on the value of money, but even the official numbers, which are massaged downwards, are only on the order of 4 percent per year. Sales taxes in many states can take away 8 percent or more on every single transaction in which consumers wish to convert their Federal Reserve Notes into gold or silver. money Statement Before Foreign Affairs Committee December 10, 2009    2009 Ron Paul 103:5 Proponents of the president’s Afghanistan escalation cite the successful “surge” in Iraq as evidence that this second surge will have similar results. I fear they might be correct about the similar result, but I dispute the success propaganda about Iraq. In fact, the violence in Iraq only temporarily subsided with the completion of the ethnic cleansing of Shi’ites from Sunni neighborhoods and vice versa – and all neighborhoods of Christians. Those Sunni fighters who remained were easily turned against the foreign al-Qaeda presence when offered US money and weapons. We are increasingly seeing this “success” breaking down: sectarian violence is flaring up and this time the various groups are better armed with US-provided weapons. Similarly, the insurgents paid by the US to stop their attacks are increasingly restive now that the Iraqi government is no longer paying bribes on a regular basis. So I am skeptical about reports on the success of the Iraqi surge. money Sanctions on Iran, Part 1 December 15, 2009    2009 Ron Paul 104:4 One of the goals explicitly expressed by al Qaeda and their leaders has been they would like to draw us into the Middle East because it would cost us a lot of money and it could hurt us financially. And the second reason they want us over there is to get us bogged down in an endless war. And for the last decade, that is what we’ve been doing. We are bogged down to the point where it’s very discouraging to the American people, very frustrating, no signs of victory, no signs of peace. But we’re bogged down. These were the precise goals of the al Qaeda leadership. money Sanctions on Iran, Part 3 December 15, 2009    2009 Ron Paul 106:5 And quite frankly, we don’t have any more money to pursue this policy, whether it’s used by the militarism or even to try to buy friends by giving them a lot of money. It just doesn’t work. Texas Straight Talk money - Fiscal Responsibility: Balance the budget but don't raise taxes or cook the books 20 January 1997    Texas Straight Talk 20 January 1997 verse 14 ... Cached When the roll is called for House votes on the Balanced Budget Amendment, you can expect "Paul of Texas" to vote "yes" if the measure is a responsible one: achieving the necessary goal of balancing the budget by cutting wasteful, big-government programs, not by using shady accounting techniques… or by taking more hard-earned money from our pockets and our children's future. money - Trust funds are being robbed, hundreds of billions at stake 20 February 1997    Texas Straight Talk 20 February 1997 verse 5 ... Cached While my family and I got over the incident, both emotionally and financially, we as a nation are going though a very similar experience. In Washington the politicians are now riffling through our belongings, stealing from us, and then using the ill-gotten gains for less than honorable purposes. Listen; you can hear another bag being stuffed with your money. money - Trust funds are being robbed, hundreds of billions at stake 20 February 1997    Texas Straight Talk 20 February 1997 verse 7 ... Cached A number of years ago it was decided that establishing trust funds was a good way to earmark money for specific projects. These trust accounts would be paid into by those who use the particular service or project. For example, when a pilot fills up his plane with fuel, the tax on the fuel goes into a special trust fund. Under the law, money from the fund goes only for projects dealing with airport issues - like new runways, control towers, and radar systems. The same holds true for the canal systems, the highways, and, of course, Social Security. money - Trust funds are being robbed, hundreds of billions at stake 20 February 1997    Texas Straight Talk 20 February 1997 verse 9 ... Cached Some politicians realized that there is a lot of money sitting in those accounts - more than hundreds of billions of dollars, in fact. And the same politicians realized the federal deficit was growing by even larger sums of money thanks to unconstitutional spending at home, nation-building abroad, corporate welfare for big political donors, and pork projects. money - Trust funds are being robbed, hundreds of billions at stake 20 February 1997    Texas Straight Talk 20 February 1997 verse 10 ... Cached So they started taking the money from the trust funds and replaced them with what are essentially "IOUs" from the government. Now, this is referred to as using the funds to "contribute" to the "retirement of the debt." That's a lot like the thief saying he was stealing my wife's belongings so she could "contribute" to his filthy habit. money - Trust funds are being robbed, hundreds of billions at stake 20 February 1997    Texas Straight Talk 20 February 1997 verse 14 ... Cached Recently, with all the talk of a Balanced Budget Amendment, President Clinton has been edging toward a plan to take Social Security, and possibly other programs, "off-budget." He says he wants Social Security completely off-budget to protect the funds. A ridiculous claim! By allowing the president to off-budget Social Security or anything else, we will see those funds - and indeed our nation - quickly forced into insolvency as the money is used for more and more "non-trust" uses. It is simply unconscionable to allow the president, or a gang of big-spenders in Congress, to take items "off-budget" to artificially lower the publicized cost of government, or hide ill-advised financial fiascoes. And undoubtedly lead to more and more problems in the trust funds fulfilling their missions. money - The worst day of the year 20 March 1997    Texas Straight Talk 20 March 1997 verse 4 ... Cached It's not the end of the world (though it sometimes seems that way) and it's not a natural disaster (though sometimes the results are similar). No, what is lurking around the corner is Tax Day. April 15 is a day Americans have grown to fear. Fear because it means complicated forms, a loss of money, and the very real possibility that somewhere an IRS agent may audit every aspect of someone's life. money - The worst day of the year 20 March 1997    Texas Straight Talk 20 March 1997 verse 5 ... Cached It is a very sad comment on the size of our government that we now tax and regulate (which is another form of taxation) so much that the average American now works through early July just to pay their levy. Stated a different way, the average worker spends more than half of every work day working for the government. That is unreasonable. For it means that you must work until shortly after lunch time before any money you earn actually goes to the well-being of yourself and your family. money - The worst day of the year 20 March 1997    Texas Straight Talk 20 March 1997 verse 9 ... Cached Debates over how we collect taxes - whether by a "flat tax" or a national sales tax - are interesting, but often tend to cloud the real issue. The real debate should be over the question, "Why is government this big and spending this much money?" money - The worst day of the year 20 March 1997    Texas Straight Talk 20 March 1997 verse 14 ... Cached As April 15 grows near, I hope that everyone looks very closely at how much money they pay to the government - either by a check written at midnight on April 14th, or taken quietly from their paycheck each week - and then consider this question: Could the money be better used by you than the ways in which the government will use it? money - The worst day of the year 20 March 1997    Texas Straight Talk 20 March 1997 verse 16 ... Cached It is my contention that you are smarter than all the politicians, especially where your life and money are concerned. Right now, the best thing government can do is cut your taxes, get out of the way, and applaud as you succeed in life and prepare for your family's future. money - Paul's legislation focuses on individual liberty 25 August 1997    Texas Straight Talk 25 August 1997 verse 16 ... Cached The Financial Freedom Act is a step in the right direction, the direction of cutting taxes and regulations to the benefit of all Americans, regardless of where they live, how much money they make, or how they manage their finances. And while cutting taxes and regulations is always the morally and constitutionally correct position to take, this legislation has the added effect of being a direct, financially positive benefit to every American. money - Constitution must always be considered 01 September 1997    Texas Straight Talk 01 September 1997 verse 7 ... Cached The Foreign Operations Appropriations Act also includes funding of so-called family planning and international population control activities, both of which are, in reality, back-door methods of using taxpayer dollars to fund abortions worldwide. More than $385 million of US taxpayers' money is being spent on these programs. money - Constitution must always be considered 01 September 1997    Texas Straight Talk 01 September 1997 verse 9 ... Cached In the first place, there is no constitutional basis for the federal government to take money from the taxpayer and then transfer it overseas, and there is certainly no basis - constitutional or moral - for spending taxpayers' money in foreign countries to pay for the wholesale slaughter of children. money - Constitution must always be considered 01 September 1997    Texas Straight Talk 01 September 1997 verse 12 ... Cached My basic opposition to these appropriations, though, has really little to do with how the money is being spent. It's almost useless to criticize how the federal government is spending the money, for that is not the real issue. For example, when we only criticize how the federal government spends money on education, we are tacitly agreeing to the philosophy of federalizing education. Instead, we need to focus on the fact that the federal government, under the enumerated powers outlined in the Constitution, has no authority at all to be involved in education. money - Constitution must always be considered 01 September 1997    Texas Straight Talk 01 September 1997 verse 14 ... Cached I swore an oath to uphold and follow the Constitution. It's an oath I take seriously because when a congressman violates the Constitution and spends money on programs not authorized, a great deal of harm is done. In the first place, harm is done directly to the individual taxpayer because the fruit of his labor is wrongly taken from him. Second, harm is done by the way the money is spent, almost always violating the rights of states and the liberties of people. Finally, harm is done to our society as we hypocritically throw to the wind the notion that Congress is bound by any law. How can Congress expect individuals to follow the laws created on Capitol Hill, when Congress doesn't follow the law as embodied in the Constitution? money - Congress to tackle Education budget this week 08 September 1997    Texas Straight Talk 08 September 1997 verse 5 ... Cached My amendment to the Foreign Operations Appropriations Act finally came to the House floor for debate and a vote last week. My amendment would have ended the federal government's use of our tax dollars to subsidize overseas abortions and "population control" programs, including related family planning services. Nowhere in the Constitution is Congress authorized to take your money and spend it in such a manner, whether here or abroad. money - Congress to tackle Education budget this week 08 September 1997    Texas Straight Talk 08 September 1997 verse 7 ... Cached Unfortunately, the House then overwhelmingly voted to pass the Foreign Operations Appropriations Act. I voted against the measure not only because it includes the funding for population control, family planning and abortions, but also because this act called for spending more money on the so-called "peace-keeping" missions around the world. I cannot in good conscience vote to put the lives of our troops in very real danger for purposes that have nothing to do with our national defense. It's time to end our involvement in these activities and protect and support our troops, not open them up to more and more hostility and danger for no good reason. money - Congress to tackle Education budget this week 08 September 1997    Texas Straight Talk 08 September 1997 verse 8 ... Cached This week the Congress will continue debate on the Labor, Health and Human Services, and Education Appropriations Act. This is perhaps, next to foreign aid, one of the easiest appropriation to vote against this "budget season." This appropriation has absolutely no legitimate basis. None. It pumps more and more money into the tired liberal mantra of "national education standards" which have done exactly what the liberals wanted: standardized education. Unfortunately, it has standardized education down. Since the federal government and the advocates of anti-constitutional education programs began creeping into the scholastic picture, we have seen all measures of academic achievement drop. money - Congress to tackle Education budget this week 08 September 1997    Texas Straight Talk 08 September 1997 verse 10 ... Cached Additionally, the Labor and Education Appropriations Act is easy to vote against because of it's inclusion of continued spending for what is commonly called "Title X." This section of the bill includes the funding for the availability of birth control devices , sex education and "services" to minors in our public schools. A large portion of the money appropriated in this act actually goes to the pro-abortion advocacy organization Planned Parenthood. money - If someone accepts federal cash, then they must follow rules taxpayers set and deserve 15 September 1997    Texas Straight Talk 15 September 1997 verse 5 ... Cached During debate last week an amendment was offered to prohibit the use of federal funds to perform abortions or offer various contraceptive devices to minors, if parents are not notified. The real debate on this point is not one of the rights of children versus the rights of parents, or even the question of whether federal money being spent this way -which constitutionality it obviously should not. The real debate is to what extent strings may be attached to federal funds. If the government is going to fund an unconstitutional program which should not exist anyway, then at the very least Congress should add sensible requirements for the sake of accountability. Doctors and nurses cannot even give out even an aspirin to a child without parental consent, mainly for fear of liability. And the government should do no less. If parents want their children to have ready access to birth control devices, then the parents should pay for it. But if the government is going to force us, the taxpayers, to subsidize these programs, then at the very least we should have a reasonable expectation that we - as taxpayers - are not going to be held accountable for any problems which may result from a child being given unlimited, uncontrolled access to various items paid for by the government. At the same time, it is unreasonable to expect parents to assume liability for complications resulting from actions over which they are no allowed no control. money - If someone accepts federal cash, then they must follow rules taxpayers set and deserve 15 September 1997    Texas Straight Talk 15 September 1997 verse 7 ... Cached This past week also gave me the opportunity to testify about my education legislation, HR 1816. This bill gives parents the ability to take tax credits for up to $3,000 per year per child for education and education related expenses. This legislation has the benefit of imposing no cost to the taxpayers, and contains no federal "strings." It simply means people get to keep their own money, and spend it on the educational needs appropriate to their own child, rather than sending that money off to Washington bureaucrats and their failed, one-size-fits-all approach to government. money - If someone accepts federal cash, then they must follow rules taxpayers set and deserve 15 September 1997    Texas Straight Talk 15 September 1997 verse 10 ... Cached Another part of this vital process is opening the debates. So the second piece of legislation I am putting forward is the Debate Freedom Act of 1997. As you probably know, candidates for president can chose to accept federal funds if they meet certain private-fundraising criteria. I believe it is completely unconstitutional for taxpayers to be forced to subsidize any candidates, and especially those with whom they disagree; but if the candidates are going to get our money, then I propose we be able to set some ground-rules to get a better range of debate on the issues. My legislation simply requires that if a candidate accepts the federal funding for his or her election, then that candidate can only participate in debates to which all candidates who qualify for federal funding - whether they take it or not - are invited to participate. This doesn't force anyone to take taxpayer money, nor does it force them to give it up. If someone doesn't like the strings that come with taking our money, then they don't have to take it. But if a candidate does take the taxpayers' money, then the candidate will either have to participate in debates open to everyone who qualifies, or be forced to give up their federal funding. money - If someone accepts federal cash, then they must follow rules taxpayers set and deserve 15 September 1997    Texas Straight Talk 15 September 1997 verse 11 ... Cached In many ways, the bottom-line is this: if a person or group is going to voluntarily take the taxpayers' money, then the recipient - whether a candidate running for president or a clinic handing out condoms - is going to have to be accountable and play by the rules the taxpayers set and deserve. money - Out-of-touch Congress needs to abolish IRS, not increase it 22 September 1997    Texas Straight Talk 22 September 1997 verse 5 ... Cached In addition to passing the Labor-HHS-Education Appropriations Act, the Congress voted to pass the Treasury and Postal Operations Appropriations Act. This bill appropriated $1.3 billion more than the respective appropriation for the most recent fiscal year. In addition to funding the IRS at $7.6 billion, (that's an 8% increase over last year's funding), the bill also included 97 million dollars for the Treasury Department's "Violent Crime Reduction Programs" despite the fact that criminal law enforcement is a matter reserved to state and local governments by the ninth and 10th amendments to the U.S. Constitution. Needless to say, this is a bill I opposed for constitutional reasons. Additionally, I want the IRS eliminated, not given more taxpayer money with which to further harass taxpayers. money - Out-of-touch Congress needs to abolish IRS, not increase it 22 September 1997    Texas Straight Talk 22 September 1997 verse 8 ... Cached Unfortunately for the taxpayer, many members of Congress evidently believed the IRS was deserving of even more of your money and the House passed this appropriations bill. The bill will also be considered by the Senate where there is some opposition to the de facto pay raise. money - Congress continues to ignore Constitution in the appropriations process 29 September 1997    Texas Straight Talk 29 September 1997 verse 10 ... Cached This week the Congress has a full plate, including legislation re-authorizing the Export-Import Bank, or Ex-Im. The Ex-Im is one of the mechanisms by which politicians are able to use your tax money to subsidize the actions of big, multinational corporations. Besides being unconstitutional, the Ex-Im Bank runs contrary to free market economics. It is unreasonable that taxpayers should be forced to foot the bill for funding risky ventures by big business. The Ex-Im Bank is the welfare engine for corporate America, paid for on the backs of the American taxpayer. The supporters of Ex-Im readily admit taxpayers have subsidized more than $100 billion of big-business deals in this decade alone. money - Congress continues to ignore Constitution in the appropriations process 29 September 1997    Texas Straight Talk 29 September 1997 verse 13 ... Cached Whether the issue is subsidizing the socialists at the United Nations and their stupid wars, or covering the tail of corporate America, the US Congress needs to stop using your federal tax money on programs and activities - no matter how well intentioned or how long they have been in effect - which are not authorized by the Constitution. Just as sending our troops to fight in the undeclared wars of the UN is unconstitutional, so is forcing you to work hard to pay taxes that go to pad the pockets of corporate America as they ships jobs overseas. money - US shouldn't cast stones with Religious Persecution 06 October 1997    Texas Straight Talk 06 October 1997 verse 4 ... Cached For a long time I have advocated getting rid of the Export-Import Bank. It is unconstitutional for the federal government, using your money, to be subsidizing the risky business ventures of corporations. And often, these ventures involve giving large sums of money and aid to oppressive foreign governments, like China. money - By Any Other Name, A Tax Is Still A Tax 27 October 1997    Texas Straight Talk 27 October 1997 verse 9 ... Cached But in the process of bringing the bill to the floor, the House leadership altered the legislation, adding language which, according to the Joint Committee on Taxation, will increase taxes by more than a billion dollars over the next two years. The bill increases taxes by overturning a taxpayer-friendly tax court ruling on how businesses are taxed on pay-outs for employee vacation time. In short, the employer pays more taxes, the employee gets less money, and we all pay the cost in the prices at the cash register. money - IRS reform is big news, but "fast-track" bill attacks the Constitution 03 November 1997    Texas Straight Talk 03 November 1997 verse 13 ... Cached When I told him that most people work half the year just to pay taxes, he wasn’t even phased. He had seen what the politicians in Washington refuse to see: government is taking too much of our money. money - IRS reform is big news, but "fast-track" bill attacks the Constitution 03 November 1997    Texas Straight Talk 03 November 1997 verse 14 ... Cached Until Congress addresses the problem of how much money they are taking from us -- and therefore addressing how much money the federal government is spending -- any tinkering with the structure of the IRS, or adjustments to the way taxes are collected, are just window-dressing. money - Communist China shouldn't be financed by US 10 November 1997    Texas Straight Talk 10 November 1997 verse 12 ... Cached The measure passed by the House of Representatives last week is a small step toward denying the Beijing communists access to the easy money which has propped up their country for last several decades. It's just a step, but we had to start somewhere. money - Congress has finished for the year, but fast-track is not dead 17 November 1997    Texas Straight Talk 17 November 1997 verse 10 ... Cached There are two points of interest worth noting. First, most members of the pro-fast-track movement have, in the past promoted ceding war-making authority to the UN, used taxpayer-money to bail-out big corporations, and sent ever-increasing sums of your money overseas in foreign aid to dictators. With all that, is it any wonder there has been a populist backlash, led by the very different likes of Ralph Nadar and Pat Buchanan? money - Congress has finished for the year, but fast-track is not dead 17 November 1997    Texas Straight Talk 17 November 1997 verse 11 ... Cached Second, the fast-track backers claimed to be the defenders of free-trade, yet they have no history of ever promoting free market economics and sound money. Instead they prefer to manage a welfare state and use the mechanisms of the Export-Import Bank, the World Bank, foreign aid, and the federal reserve system to benefit their corporate friends. money - Congress '97: more taxes, more spending, more big-government 01 December 1997    Texas Straight Talk 01 December 1997 verse 11 ... Cached Even worse, Congress gave more money to the IRS - the most corrupt and hated of the federal agencies - than that organization has ever received. Americans say they want to get rid of the IRS, but the Republican Congress has given the IRS money to do more of their same old tricks. In fact, the Congress gave the IRS more than $700 million over last year! Sure, there have been some gentle slaps at the agency with legislation, but nothing extraordinary. money - Congress '97: more taxes, more spending, more big-government 01 December 1997    Texas Straight Talk 01 December 1997 verse 15 ... Cached While having a bunch of politicians talking about cutting taxes is not the same thing as actually having that money in your wallet, it is a sign that politicians are getting the message that the American public is tired of high taxes, big spending and intervention in matters outside the federal government's constitutional jurisdiction. money - President must withdraw troops from Bosnia 22 December 1997    Texas Straight Talk 22 December 1997 verse 21 ... Cached American involvement in Bosnia is a dangerous policy, which defies both logic and the Constitution. Our president may be eager for a war record, but getting it at the expense of endless involvement in Bosnia is a price which must not be borne by our soldiers' blood, or the taxpayers' money. The time has come to end this presidential charade, to call his bluff, and prove that this Congress is pro-troop and pro-Constitution. money - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 4 ... Cached Using the old reliable excuse that it was in the interest of "national security," President Clinton last week opted to obligate the money of the American taxpayers to bailout the troubled South Korean economy and the legions of wealthy investors who had made a mistake in sinking their cash into a bad market. money - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 6 ... Cached This kind of frivolous use of taxpayers' money is a sham. Under our Constitution, this fund should not exist in the first place, given the Article 1, Section 7, powers and restrictions on raising and spending money. Brought online by the Roosevelt Administration in the 1930s, the fund was set-up to stabilize a volatile US dollar, not prop-up foreign currencies and markets. So even if this fund were constitutional - which it clearly is not - to use the money to cover the bad investments of Wall Street bankers and save the hides of Korean government officials is against the premise under which the fund was established. money - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 11 ... Cached Of course, Mexico and South Korea do have something special which makes their case easier for the politically minded controllers of the taxpayer purse-strings. Both countries had a lot of American investors wanting to cash in on lucrative deals abroad with the possibility of big payoffs. Of course, as anyone who invests knows, the bigger the potential payoff, the bigger the risk. But many investors today are eager to embrace the philosophy of free-market economics when it comes to making money and keeping their profits, but at the first sign of those investments going sour, they want the government to socialize their losses at the expense of the taxpayers. money - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 12 ... Cached And since these investors have also heavily "invested" in American politics, it is easy for the politicians to use your money to help them out. After all, it is very easy to be generous with other people's money. money - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 13 ... Cached This bailout policy flies in the face of sound economics, of constitutional principles, and even old-fashioned common sense. But even worse, this policy immorally exposes the taxpayers to a tremendous risk. If Korea doesn't pay back the cash, then the only way for the government to make up the shortfall is to come knocking on your door again and reaching further into your pocket. After all, neither this president nor a majority of the Congress has any desire to cut spending to cover their improper uses of your money. money - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 14 ... Cached And while $1.7 billion may not seem like a lot to the quasi-socialist nations like Korea, it represents a significant amount of money to most Americans. By giving away almost $2 billion to a foreign government at a time when we face a continually growing national debt, proposals to cut benefits to senior citizens and veterans, and an tax rate of over 50 percent, it seems our national security and well-being is weakened by this maneuver, not mystically increased as the president would have us all believe. money Abortion and National Sovereignty: No Compromises 26 January 1998    Texas Straight Talk 26 January 1998 verse 5 ... Cached The Mexico City Policy was drafted in the Reagan years as an attempt to put some limitations on US foreign aide being used for abortions overseas. While I believe that those who put this policy forward were well-motivated, I believe that time has shown this policy to have little real effect. I have continued to vote for this policy when it came up as a stand alone issue in this Congress because it is a bare minimum requirement, although, as I say, I consider it ineffective in stopping tax money from funding abortions. money Bombing Iraq lacks support, common sense and constitutional base 02 February 1998    Texas Straight Talk 02 February 1998 verse 13 ... Cached Other Kuwaitis have even suggested that the U.S. really wants Hussein in power to make sure his weak neighbors fear him and are forced to depend on the United States for survival. Not a bad theory when we remember that the US supported Hussein as recently as nine years ago, and had until then for a decade supplied him with money and weapons, turning a blind eye to his policies and aggression. money Never sacrifice liberty for "campaign reform" 02 March 1998    Texas Straight Talk 02 March 1998 verse 7 ... Cached The problem, according to these congressmen, is the big-money interests trying to influence the outcomes of elections. But none wanted to address the root of the problem, of why groups are willing to spend so much money trying to affect an election. Groups do so because of the overwhelming power the federal government has over every aspect of life. money Never sacrifice liberty for "campaign reform" 02 March 1998    Texas Straight Talk 02 March 1998 verse 8 ... Cached Extensive power - the ability to confer financial and legislative favors - is now concentrated in the hands of relatively few lawmakers. If we remove that power, we remove the incentive to influence how the power is wielded. I wouldn't mind getting the big PAC money, but it doesn't come my way because I'm not considered a "good investment" for those seeking handouts or special attention at taxpayer expense; they know I just won't go along. Big money flows to non-ideological candidates who have no problem tinkering with the markets to give advantages - or disadvantages - as they wish. money Block grants are not the answer 09 March 1998    Texas Straight Talk 09 March 1998 verse 7 ... Cached Further, the block grant method of allocating funds does not eliminate the need to first collect the revenues nationally and politically distribute the funds to the various state entities. Collection and distribution which has nothing to do with the reality and everything to do with redistributing wealth to the benefit of politicians and special interests. Wealthy states, like Texas, will never get their money back, even if every program is block granted. money Block grants are not the answer 09 March 1998    Texas Straight Talk 09 March 1998 verse 11 ... Cached The devolution approach is not the first choice of proponents of big government, but it is acceptable to them. Why? The calls for more spending are usually satisfied as the supposed advocates for smaller government agree to more money so as to get the symbolic block grants passed into law. In the end, all the politicians, in spite of the rhetoric, are content, because they can sing both sing pleasant tunes to their special-interests. But the taxpayer loses because the money is still taken, at ever increasing rates, from their wallets. money US should stop meddling in foreign wars 16 March 1998    Texas Straight Talk 16 March 1998 verse 5 ... Cached Every week we must find a foreign infidel to slay; and, of course, keep the military-industrial complex humming. It is telling that while Congress cannot find a way to make serious tax cuts or reforms to the IRS, reduce spending or erase the bureaucratic red tape, our national leaders can daily find new hot-spots around the world send our military and our money. money US should stop meddling in foreign wars 16 March 1998    Texas Straight Talk 16 March 1998 verse 12 ... Cached This is not a result of too little money by a misdirected role for our military, a role that contradicts the policy of neutrality, friendship, trade and nonintervention in the affairs of other nations. The question we should ask is: are we entitled to, wealthy enough, or even wise enough to assume the role of world policemen and protector of the world's natural resources? money US should stop meddling in foreign wars 16 March 1998    Texas Straight Talk 16 March 1998 verse 14 ... Cached Acting as an honest broker, the U.S. may help bring warring factions to the peace table, but never with threats of war or bribes paid for by the American taxpayers. We should stop sending money and weapons to all factions. Too often our support finds its way into the hands of both warring factions and we never know how long it will be for our friends and allies of today to become our enemy and targets of tomorrow. money Security of the people's liberty at risk 23 March 1998    Texas Straight Talk 23 March 1998 verse 12 ... Cached At the core, every vote is a constitutional vote. US Representative and, later, Texas Alamo hero David Crockett, once quoted a constituent, saying, "The Constitution, to be worth anything, must be held sacred, and rigidly observed in all its provisions… The people have delegated to Congress, by the Constitution, the power to do certain things. To do these, it is authorized to collect and pay moneys, and for nothing else. Everything beyond this is usurpation, and a violation of the Constitution… It is a precedent fraught with danger to the country, for when Congress once begins to stretch its power beyond the limits of the Constitution, there is no limit to it, and no security for the people." money Congressional action weakens national defense 06 April 1998    Texas Straight Talk 06 April 1998 verse 9 ... Cached While I am not overly excited about the federal government dictating the priorities of airport construction and modernization, at least it is tax money being spent here, to the benefit of the taxpayers, rather than elsewhere in the world with our troops being exposed to risk.. money Giving power to parents is truly pro-education 20 April 1998    Texas Straight Talk 20 April 1998 verse 9 ... Cached I have sponsored one piece of legislation, and cosponsored a second, which addresses this issue. My legislation would allow parents to take up to $3,000 a year per child in tax credits for their educational expenses, such as private, church and home school settings, as well as tutors, books and similar necessities. The credit applies even if the kids are in public schools. The other legislation is similar to Individual Retirement Accounts, but are for educational purposes. Parents would be allowed to set aside money in special savings accounts, the interest on which would not be taxed unless the money is used for non-educational purposes. money Giving power to parents is truly pro-education 20 April 1998    Texas Straight Talk 20 April 1998 verse 10 ... Cached By making sure parents get to keep more of their own money, they will be able to provide in the ways best suited for their children and their children's specifics needs and abilities. money Giving power to parents is truly pro-education 20 April 1998    Texas Straight Talk 20 April 1998 verse 11 ... Cached But even when we see education programs working well, the federal government still manages to find ways to endanger them. A prime example is agricultural education programs, such as those run through the 4-H and Future Farmers of America. When a young person enters those programs, wanting to gain hands-on experience and education in raising livestock, a part of that process involves "shows" and auctions. The proceeds from such shows and auctions are the money the kids use to participate in Ag programs the following years, or provide money for college. money Giving power to parents is truly pro-education 20 April 1998    Texas Straight Talk 20 April 1998 verse 12 ... Cached Does the federal government stand back and applaud these young people bettering themselves academically, learning a skill and preparing for the future? No, Uncle Sam steps in and taxes the cash, meaning the kids lose precious money for school (making them more dependent on government aid) or the ability to participate in such programs the next year. money Liberty must be our goal 04 May 1998    Texas Straight Talk 04 May 1998 verse 6 ... Cached That is disgraceful, which is why I wanted to come to Congress in the first place. For someone to work six months out of the year only to pay the tax-bill is ridiculous. Think about what you get for your money: EPA agents to grab your land if they think there are endangered weeds on it, OSHA inspectors to shut down your business for "improper" labeling of liquid paper, and IRS inspectors to seize your bank accounts if you use the wrong color of ink on the tax form. money Liberty must be our goal 04 May 1998    Texas Straight Talk 04 May 1998 verse 7 ... Cached For some, the issue is merely "how do we collect the taxes?" and proceed to debate the merits of a flat tax, a sales tax, a modified graduated tax, and on. But rarely is the real issue discussed by the Washington-insider policy-makers. The real issue is this: Why does government need so much of our money? money Liberty must be our goal 04 May 1998    Texas Straight Talk 04 May 1998 verse 8 ... Cached The answer is not complex; government wants money because it wants power; politicians want your money so they can make decisions that benefit them politically and force you to do what they want, being molded into their images. And so government grows. And grows. As they take more of our money, the more we are forced to rely on them, and the more money they "need" to "provide." It's a hideous cycle. money Liberty must be our goal 04 May 1998    Texas Straight Talk 04 May 1998 verse 13 ... Cached It is true that liberty is not free, nor is it easy. But tyranny - even varying degrees of it - is much more difficult, and much more expensive. The time has come to rein in the federal government, put it on a crash diet, and let the people keep their money and their liberty. money Asian economic crisis result of suppressed liberty 25 May 1998    Texas Straight Talk 25 May 1998 verse 5 ... Cached Belief that an artificial boom, brought about by a "central bank" credit creation, can last forever is equivalent to finding the fountain of youth. Wealth cannot be created out of thin air, and new money and credit, although it can on the short-run give an illusion of wealth, is actually destructive to prosperity on the long-run. money Campaign reform should encourage choice 15 June 1998    Texas Straight Talk 15 June 1998 verse 5 ... Cached The debate, of course, is over a package of legislation referred to as "campaign finance reform." There is a correct recognition of a serious problem in our nation: the undue influence of "big money" special interests attempting to buy - or at least rent - politicians. money Campaign reform should encourage choice 15 June 1998    Texas Straight Talk 15 June 1998 verse 7 ... Cached The real origin of the campaign finance problem is the expanded role of the federal government. The simple truth is that people are willing to spend a lot of money to influence the outcome of elections because the federal government has so much power. With that in mind, it is obvious that the proper solution to the issue is to greatly reduce the role of government. By drastically reducing the power lawmakers maintain over virtually every aspect of citizen's lives, the influence enjoyed by campaign contributors, lobbyists and political action committees would quickly dissipate. money Trade, not aid or isolation, should be US foreign policy 22 June 1998    Texas Straight Talk 22 June 1998 verse 15 ... Cached So while the farmer or small businessman is losing money by being forbidden to enter a potentially lucrative market, he is being taxed at higher rates to pay for subsidies to those same foreign governments. money Washington 'solutions' to voter frustration are dangerous 03 August 1998    Texas Straight Talk 03 August 1998 verse 5 ... Cached The politicians in Washington talk about the need to "reform" fundraising laws by reducing the ability of Americans to participate in the system, giving those in power more power, and those on the outside less of a voice. As those on the outside have correctly pointed out that the system is corrupt, the response from Washington has been to claim that money is root of the problem, and to ignore the regulations that obstruct competition in the process. money MSAs best option for better health care 10 August 1998    Texas Straight Talk 10 August 1998 verse 8 ... Cached MSAs are a terrific tool because they allows the individual to save money - tax-free - for use in paying routine medical costs. As consumers are able to set aside cash for their routine, or even emergency, medical expenses, they are able to increase control of their care. With their own cash to spend the way they like with whom they like, the patient is no longer held back by the cost concerns of a managed care organization. money Deceptive economic euphoria 17 August 1998    Texas Straight Talk 17 August 1998 verse 5 ... Cached It is true many Americans believe this nonsense and feel giddy about the prospects of sharing in a perpetual wealth machine. Of course, not much good can be expected to come from such accounting chicanery, but the debate is not all bad. Tax cuts are being considered as a way of "spending" some of the money coming in from - what else! - excessive tax revenues. But the myth prevails that allowing an individual to keep their earnings is recorded as a cost to government, and that is a concept which must be rejected. money Deceptive economic euphoria 17 August 1998    Texas Straight Talk 17 August 1998 verse 10 ... Cached First, we're not doing as well as claimed and most Americans know it. Second, we're doing well because we benefit, as all countries do for a limited periods of time, from central bank credit creation - i.e., free money flowing into the banking system keeping interest rates artificially low. A $5.6 trillion debt and growing allows government expenditures to continue despite the nonsense about a balanced budget all the Washington pundits are bragging about. money Deceptive economic euphoria 17 August 1998    Texas Straight Talk 17 August 1998 verse 12 ... Cached But all good things must end when they are built on a fiction. A fiction is precisely what fiat money is - the economic equivalent of the philosopher's stone, which was hoped to turn lead into gold. money "Wagging" imperialism as bad as the Dog 24 August 1998    Texas Straight Talk 24 August 1998 verse 9 ... Cached Next, Osama bin Laden and his Afghan religious supporters were American allies throughout the 1980s and received our money and training and were heralded as the Afghan "Freedom Fighters." Even then, bin Laden let it be known that his people resented all imperialism, whether from the Soviets or the United States. money Taxpayer cash flowing again to non-citizens 31 August 1998    Texas Straight Talk 31 August 1998 verse 8 ... Cached The paying of benefits to non-citizens is offensive and reckless for many reasons. Most notably because it literally robs money from two groups of people: the people who paid into the system through taxes and are now expecting to get something for their trouble, and the people who are currently paying into the system (through taxes) and must bear a higher burden. money Taxpayer cash flowing again to non-citizens 31 August 1998    Texas Straight Talk 31 August 1998 verse 13 ... Cached Why do politicians feel the need to send your tax dollars to non-citizens? First, almost by definition, non-citizens are ethnic minorities, thereby giving politicians the opportunity to show they 'care" about that particular ethnic group. Second, when the non-citizens reside here, it creates yet another dependent class for when they become citizens; if they get a government check from the moment they cross the border, it is likely they will continue to vote for those willing to provide ever more generous government checks. Third, for those outside the US, often wealthy individuals with ties to US corporations, it creates sources for campaign donations, or provides ways to ensure corporate donors here get lucrative deals overseas, reimbursing the industrialists' donations with tax money. money Taxpayer cash flowing again to non-citizens 31 August 1998    Texas Straight Talk 31 August 1998 verse 14 ... Cached It is important to always look at the details of the legislation hidden behind the popular names and slogans. It is even more important to follow the money. Americans are tired of being forced to pay benefits to non-citizens, while politicians hide behind platitudes, polls and feel-good policies. money Inconsistency must be addressed 14 September 1998    Texas Straight Talk 14 September 1998 verse 9 ... Cached In fact, there are rules in place that make it almost impossible to oust those convicted of felonies involving drugs. Some argue that it isn't "nice" to evict these law-scoffs. Others suggest that we just need to spend more money to make the projects nicer, in the hopes that a new coat of paint will convince the druggies to change their ways. money The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 5 ... Cached Beneficiaries of easy credit demand the policy continue. Creating money and credit out of thin air is perfect counterfeiting, legal and appearing helpful to all. It accommodates deficit spending on extravagant welfare programs and unwarranted international militarism. It seems everyone likes it until the artificial nature of the financial bubble becomes apparent, as it is now. money The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 12 ... Cached Let there be no doubt about it. The good times came with generous credit creation and low interest rates and the Fed will yield to the politicians' pressure to continue the process. Turning off the money spigot, and allowing the market to work will never be seriously considered. money The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 15 ... Cached A limited government designed to protect liberty and provide a national offense is one that could easily be managed with minimal taxes, but it would also require that we follow the advise of the Founders who explicitly admonished us not "to emit bills of credit" that is, paper money and use only silver and gold as legal tender. We need to lay plans for our future because we are rapidly approaching a time of crisis and chaos. money The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 17 ... Cached Congress has an explicit responsibility in the area of money and finance and we must assume this responsibility. Manipulating the money supply with the pretense of helping ourselves is unacceptable and destructive. Before our economy is lost, we should work diligently to restore soundness to our monetary policy. money Tax measure includes version of Paul legislation 05 October 1998    Texas Straight Talk 05 October 1998 verse 10 ... Cached Last year I brought forward the Family Education Freedom Act, HR 1816, to address this issue. My legislation would allow parents to take up to $3,000 per year off their tax bill to pay for any of the education-related expenses of their children. The money could be used for private or religious school tuition, books, computers, field trips - anything which is part of the educational needs of a child, whether in elementary school or college. money Tax measure provides income averaging 12 October 1998    Texas Straight Talk 12 October 1998 verse 8 ... Cached But our federal government has seen fit to use the facts of agricultural life against farmers to get a few more dollars of revenue. This occurs by taxing agriculture at the extremely high-income rates in the good years because on paper the farmer made a lot of money. They leave out of the equation that the previous year may have been a disaster because of drought, flood, market fluctuations or other problems, resulting in perhaps literally no income for the farmer and his family. money Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 5 ... Cached A world-wide system of fiat money is the root of the crisis. The post-World War II Bretton Woods gold-exchange system was seriously flawed, and free market economists from the start predicted its demise. Twenty-seven years later, on August 15, 1971, it ended with a bang ushering in the turbulent and commodity-driven inflation of the 1970s. money Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 8 ... Cached We must understand the serious flaw in the current system that is playing havoc with world markets. When license is given to central banks to inflate a currency, they eventually do so. Money can be inflated for only so long until serious problems arise. money Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 10 ... Cached If the problem was merely that there were not enough money, then money creation alone could make us all millionaires and no one would have to work. But increasing the money supply does not increase wealth. Only work and savings do that. The deception comes because, for a while for the lucky few, benefits are received when governments inflate the currency and pass it out for political reasons. money Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 11 ... Cached But in time the free ride comes to an end. Even the beneficiaries suffer the inevitable consequences of a philosophy that teaches wealth comes from money creation and that central banks are acceptable central economic planners -- even in countries such as the United States where many pay lip service to free markets and free trade. money Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 14 ... Cached First, the Federal Reserve should be denied the power to fix interest rates and buy government debt. It should not be a central economic planner through manipulation of money and credit. money Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 19 ... Cached Nothing but a free market, sound money approach to our economics can guarantee personal liberty or offer greater potential for fiscal rewards. money The Ominous Budget Deal 26 October 1998    Texas Straight Talk 26 October 1998 verse 11 ... Cached One of the most egregious expenditures is $17.9 billion for the International Monetary Fund. Conservatives have battled for the past year to stop more money from going to this corrupt organization that props-up the failed economies of two-bit dictators the world-over. money Wrong debate in House 'leadership' race 16 November 1998    Texas Straight Talk 16 November 1998 verse 8 ... Cached But are "on-time trains" such a good thing if they carry off more of our money and freedoms while delivering more regulations? It may be that our leaders should demand that we stop the trains entirely. In the last four years, very little legislation has actually been championed to shrink the size and scope of the federal government. A change of leadership probably will not significantly change this record. money Wrong debate in House 'leadership' race 16 November 1998    Texas Straight Talk 16 November 1998 verse 12 ... Cached Both parties, unfortunately, endorse the use of government force to police the world, to redistribute wealth domestically and internationally, and to manipulate money and credit. Both allow government to invade our privacy as a trade-off for the government financing of education, medical care, and housing, arguing such invasion is necessary to run the system efficiently, and prevent waste and fraud. In the name of "public safety," neither party resists the federal government’s takeover of local law enforcement. money Privacy Busters: Big Bank is watching 30 November 1998    Texas Straight Talk 30 November 1998 verse 9 ... Cached Not only will "unusual" deposits into your account trigger suspicion, but so too might large cash withdrawals. Let us return to our friend selling the car. Instead of selling his car, though, let us say he saved $100 each month for two years, so that he could by his teenage daughter a used car. On the teen's birthday, so Dad goes heads off to by a vehicle, first stopping at the bank to withdraw the $2,400 he had carefully saved. Again, such an action would likely put this man in the position of having to defend himself against charges of buying drugs, laundering money, tax evasion or some other crime. money Medical costs can be cut with freedom 14 December 1998    Texas Straight Talk 14 December 1998 verse 18 ... Cached Medical care will always be expensive, regardless of the system. The real question is how much freedom will a patient have in determining the care they receive. It is only when the patient controls the purse strings of his own money that he will have that freedom. money Embargoes most destructive at home 28 December 1998    Texas Straight Talk 28 December 1998 verse 16 ... Cached Government meddling is always destructive to the free market; people will inevitably make wiser decisions about how to spend their money, with whom, and when, than politicians in Washington. Embargoes simply do not accomplish the ends advocates claim to desire, and are extremely harmful to the well being of Americans. money Federal government needs to step out of education 04 January 1999    Texas Straight Talk 04 January 1999 verse 11 ... Cached I will continue to support initiatives that let parents keep their money and decide how best to educate their kids. One such initiative is my Family Education Freedom Act. This legislation would allow parents to take up to $3,000 per year per child for education-related expenses such as tutoring, field trips, computers, tuition and books, and would be equally accessible and useful for parents who place their children in public, private or home school settings. money Protecting integrity of Social Security 11 January 1999    Texas Straight Talk 11 January 1999 verse 10 ... Cached In recent years, President Clinton and Congress have claimed to produce a balanced budget. This balancing act has only come as a result of numerous accounting shenanigans, including taking money out of the Social Security Trust Fund. money Protecting integrity of Social Security 11 January 1999    Texas Straight Talk 11 January 1999 verse 11 ... Cached The trust fund has little actual money in it; it instead holds IOUs from the federal government, promising to eventually -- someday, maybe -- pay back the fund. money A New Pandora's Box 25 January 1999    Texas Straight Talk 25 January 1999 verse 10 ... Cached One does not set money on a table at Wall Street, leave it there, then come back a few days later to collect the loot and call it investment. When one invests, they are becoming a part owner in the company or companies. With ownership comes the benefit of sharing in the profits, the risk of sharing in losses, and, perhaps most importantly, responsibility in making decisions. money Stopping the President's New Little War 15 February 1999    Texas Straight Talk 15 February 1999 verse 8 ... Cached We spend less and less money every year on our own defense while spending more and more policing the world. It would be better to spend on national defense projects the money now being wasted in Bosnia, Iraq and other locales around the world. Moreover, our nation would be undeniably stronger by not having our soldiers killed in pointless "police" actions. money The Big Lie 22 February 1999    Texas Straight Talk 22 February 1999 verse 8 ... Cached The "surplus" claim is derived, at its most basic level, from the fact that there are technically more "revenues" coming into the federal government coffers than expenditures. That "fact," however, overlooks several important factors. Most pressing of those is that there is no actual money in the federal trust funds. Those funds -- Social Security, highway, airport, etc. -- have been (and continue to be) robbed by the politicians and replaced with government IOUs. The money from the funds has gone to pay for liberal social programs and foreign military adventurism. The "surplus" difference between the revenues and expenditures includes the continued theft from the trust funds. money The Big Lie 22 February 1999    Texas Straight Talk 22 February 1999 verse 11 ... Cached The time has also come for honesty in accounting. The government taxes every American at 15 percent for Social Security, using the fiction that the cash is waiting in a trust fund for retirement to placate us. We must restore the integrity of the trust funds by stopping the politicians from being able to take the money in the first place. I have introduced the Social Security Preservation Act, HR 219, to do just that. money Contentious debate produces rubber-stamp of Kosovo 15 March 1999    Texas Straight Talk 15 March 1999 verse 15 ... Cached It's easy for Congresses and Presidents to be "generous" with other people's money. It's apparently just as easy for them to fight international injustice with other people's children. money Free trade rhetoric often obscures agenda 22 March 1999    Texas Straight Talk 22 March 1999 verse 13 ... Cached For while many in Washington call themselves "free-traders," but there is nothing free about their agendas. The so-called "free-trader" in Congress is often one who believes in subsidizing trade; that is, using taxpayer dollars to prop-up foreign governments on the condition that those governments then use the money to purchase goods from certain American companies (which in turn lobby for "protections," creating a vicious cycle). money Burning bridges 29 March 1999    Texas Straight Talk 29 March 1999 verse 5 ... Cached Yet, for an Administration enthralled with the notion of a paternalistic government that cares for everyone, everywhere, all the time, President Clinton's actions in Serbia should not be surprising. Just as this president believes he and his government can best order the lives of each American citizen (he recently said that Americans shouldn't be given a tax cut because they would not spend the money as wisely as he and his administration would), he is confident that he can solve the problems of the world. His track record suggests otherwise; despite the fanfare and speeches, there is still violence raging from the Middle East to Ireland -- all great "successes" for this president. money China is only winner in scandals 31 May 1999    Texas Straight Talk 31 May 1999 verse 11 ... Cached This is hardly surprising, of course, for at the same time this was occurring, Chinese money was filling the Democratic Party's 1996 campaign war chest. money Campaign reform misses target 12 July 1999    Texas Straight Talk 12 July 1999 verse 8 ... Cached All will agree that it is shameful for an elected official to capitulate to well-funded special interest groups. Unwilling to act ethically on their own, politicians will clamor for a system that diminishes the need to persuade individuals and groups to donate money to their campaigns. Instead of persuasion, they endorse coercing taxpayers to finance campaigns. This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed and run. money Campaign reform misses target 12 July 1999    Texas Straight Talk 12 July 1999 verse 12 ... Cached More regulation of political activism through control of private money, instead of addressing the root problem of an overly-influential government, only drives the money further underground, and thereby giving select groups a strong advantage over the honest candidate who seeks to ethically work for smaller, constitutional government. money Lavish pay and benefits have no merit 19 July 1999    Texas Straight Talk 19 July 1999 verse 5 ... Cached Don't remember having been so generous? Don't worry, Congress is being generous, again, with your money -- it's really quite easy. money Reducing the tax reduction 26 July 1999    Texas Straight Talk 26 July 1999 verse 7 ... Cached The reality, of course, is that government does not have any money except what it takes from the taxpayer. money Reducing the tax reduction 26 July 1999    Texas Straight Talk 26 July 1999 verse 13 ... Cached Until we root out the notion that all things originate with government; until we banish the idea that government is somehow bearing a burden by not taking so much money from society's producers; until the time comes, we will never see truly historic tax reform. money Reducing the tax reduction 26 July 1999    Texas Straight Talk 26 July 1999 verse 16 ... Cached And pork costs money. And money comes from taxes. And taxes come from the sweat of the American people. money Legalized theft 09 August 1999    Texas Straight Talk 09 August 1999 verse 7 ... Cached If an individual takes the money from your wallet to purchase something for himself, it is rightfully considered unlawful. Regardless of the excuse, no matter how good an item he is buying, the thief is still guilty of theft. But when a congressman does the same thing on behalf of a special interest group, it is called the law of the land. money 'Say no to high taxes and spending' 27 September 1999    Texas Straight Talk 27 September 1999 verse 11 ... Cached Of course, the president has not been coy about his position on tax cuts. Just a couple months ago he said the federal government could give a tax cut and "trust that you spend it correctly," but he trusts the politicians in DC to be wiser with your money. money 'Say no to high taxes and spending' 27 September 1999    Texas Straight Talk 27 September 1999 verse 13 ... Cached No word better describes the problem in getting even a modest tax cut in place for taxpayers across the land than the five-letter, one-syllable word "spend." Whether it’s congressmen or presidents, bureaucrats or special interests, everyone with a hand in crafting the federal budget is committed to spending as much of your money as they can to fund pet projects and secure power bases. money 'Say no to high taxes and spending' 27 September 1999    Texas Straight Talk 27 September 1999 verse 15 ... Cached The only way we will have our tax burden significantly reduced is for federal spending to be decreased. This president and his cronies -- regardless of party affiliation -- are committed to spending as much of your money as they can. money Confused priorities 04 October 1999    Texas Straight Talk 04 October 1999 verse 4 ... Cached Just two weeks ago the president vetoed a modest tax-cut provision that would have been most helpful to small business owners, farmers and middle-income Americans. In vetoing the measure, the president said it was simply too large a tax cut, that the government couldn't afford to "give-up" that money. This week we found out what he wanted done with that money: spend it, but not in America. money Confused priorities 04 October 1999    Texas Straight Talk 04 October 1999 verse 5 ... Cached Of course, the first fallacy is in suggesting that a tax cut is cost. When someone criticizes a tax cut as "costing too much," they are revealing a basic belief in the tenets of socialism, where all wealth is created by, and belongs to, the government. A tax cut is allowing a productive individual to keep his own money; it does not cost anyone anything. In fact, the only "costs" in the tax system are the taxes levied on individuals. money Confused priorities 04 October 1999    Texas Straight Talk 04 October 1999 verse 7 ... Cached When the president vetoed the tax package, he killed farmers' hopes for this much-needed tool. Apparently he instead wants that money to be spent propping up foreign dictatorships and subsidizing our competitors. money Confused priorities 04 October 1999    Texas Straight Talk 04 October 1999 verse 11 ... Cached In addition, the president wants even more of Americans' money to spent in so-called "peacekeeping" operations, like those in Somalia and Bosnia, which recklessly place American soldiers in harms' way for reasons other than national defense. money Dangerous to our health 11 October 1999    Texas Straight Talk 11 October 1999 verse 10 ... Cached But the government intervention in health care pre-dates the 1974 Employee Retriement Income Security Act (ERISA), with Congress granting tax benefits to employers for providing health care, while not allowing similar incentives for individuals. As such, government removed the market incentive for health insurance companies to cater to the actual health-care consumer. As a greater amount of government and corporate money has been used to pay medical bills, the costs have artificially risen out of the range of most individuals. money Budget Standoff Continues 15 November 1999    Texas Straight Talk 15 November 1999 verse 3 ... Cached But Certainly Not for Lack of Money money This Year's Successes 22 November 1999    Texas Straight Talk 22 November 1999 verse 9 ... Cached I also introduced HR 1812 this year, to end the needless and inefficient policy of draft registration. The Department of Defense issued a report pointing out why this program is a waste of money and simply makes no sense in light of current personnel requirements consistent with modern warfare. Moreover, my concern is with the threat to personal freedom evidenced by compulsory registration with the federal government. money Floor Votes Reviewed 06 December 1999    Texas Straight Talk 06 December 1999 verse 7 ... Cached In a fashion similar to that which I took in the 105th Congress, I introduced an amendment to stop all funding for so-called overseas family planning. This money is not only another form of foreign aid, it is also used to advocate the anti-life agenda of the most radical pro-abortion groups. Unfortunately, we lost ground on this issue in this Congress. This year we received 145 votes in favor of my amendment, whereas last Congress we had the support of 147 members. money Overall Review 27 December 1999    Texas Straight Talk 27 December 1999 verse 7 ... Cached Unfortunately, the leadership of my own party has not been successful in attempts to curtail the President's plans for an ever-expanding federal leviathan. In fact, the Congressional Budget Office is constantly pointing out how they are appropriating more money even than the President asks for in his budget requests. This is a sad state of affairs. money The Year Ahead 03 January 2000    Texas Straight Talk 03 January 2000 verse 4 ... Cached Looking toward next year, I am not convinced that we will see a major change in the direction of our country. In fact, I am convinced we will see a budget passed again this year that spends more money than ever, that continues to increase the national debt, and that will allow only minimal tax relief, if tax relief is included at all. money Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 5 ... Cached Essentially, no one in Washington, on Wall Street, or in the financial media challenges the inflationary policy of the Fed, believing that the favorable status quo will continue indefinitely as long as the money wizard stays in charge. In good times it's easy to forget severe recessions and commodity price inflation. Today, just about everyone endorses the New Era in prosperity that technology and Alan Greenspan have delivered to us. Inflation, as defined by a rising CPI, has been declared dead. money Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 8 ... Cached Greenspan has already supervised one serious recession in the early 1990s. No matter how astute a chairman of the Federal Reserve Board is, it's impossible to avoid recessions when managing a fiat monetary system. Alan Greenspan has been quite generous when it comes to creating new money. Since 1987 when Greenspan took over, high-powered money, as measured by the monetary base, has increased by 138%. This has resulted in an increase of nearly $3 trillion of bank deposits as measured by M3. This new money creation keeps interest rates lower than they otherwise would be, making the banks and Wall Street happy. It also pleases the spendthrift politicians who during Greenspan's term have increased the national debt by $32 trillion. Almost the entire increase in the national debt since 1987 has been monetized or paid for by Greenspan printing new money. money Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 10 ... Cached Every time the market in the past three years threatened to bring on a correction, Chairman Greenspan rushed to the rescue - to the delight of everyone in Washington and New York - with a massive influx of new money and lower rates. In 1997 the excuse was the Asian crisis; in 1998 it was the failure of Long Term Capital Management; and in 1999 it was the potential Y2K crisis. In the past 3 months, bank credit has increased at a greater than 30% annual rate. Greenspan, in this past quarter, may have talked about "tight money" and even raised overnight rates, but he was quite active inflating the currency. money Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 11 ... Cached It's true that this inflationary policy does alleviate the immediate financial crisis. But it does so by further inflating the financial bubble. It delays the correction but makes the situation ever more dangerous for all Americans. There will be a price to pay. Borrowing and creating credit out of thin air will never prove to be the way to permanent prosperity. When it comes to money there are no "New Eras". Economic law will prevail. The law of supply and demand applies to money as well as goods and services. money Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 16 ... Cached This is not to say that anyone else can do any better than the current chairman in the coming years. Central planning, whether it's in the monetary system or in the economy itself, just doesn't work. The debate should not be over who is best at managing the economy, determining the money supply and knowing the proper interest rates. It should be over whether or not we should have a monetary system that requires its manager to know things he cannot know. Instead of arguing over whether and when interest rates should go up or down, we should debate whether or not market interest rates and commodity money is superior to fiat money in preventing price inflation, recessions and painful periods of unemployment. money Relations with Russia 31 January 2000    Texas Straight Talk 31 January 2000 verse 10 ... Cached Another so-called "surprise" move of Mr. Yeltsin's successor was that he cut a deal with communist party members of the legislature, the Russian Duma. This seems to be a surprise only to those naive enough to believe that we could befriend a potentially hostile nation by sending lots of taxpayer money to it. The reason that the communists continue to be players on the Russian scene should be obvious. First of all, the indoctrination of Marxist ideology that nation underwent for nearly a century cannot be expected to disappear overnight, or even in a decade. Indeed it is likely to be many generations before Marxism is repudiated in the mind of the typical Russian citizen. Moreover, in the short run, the communists are a valuable ally to any Russian politician who is looking to maintain and increase his power base. The communists are traditionally hostile toward the United States, and since America makes a good scapegoat for any Russian leader, it is only natural that the current Russian boss would seek an alliance with the communists. money Keeping Promises about Social Security 14 February 2000    Texas Straight Talk 14 February 2000 verse 7 ... Cached By the way, the National Taxpayers Union (NTU) is a 300,000 member, nationwide organization. And this NTU study shows that politicians developed tricks to hide the fact that they spent money from American senior's retirement accounts. money Keeping Promises about Social Security 14 February 2000    Texas Straight Talk 14 February 2000 verse 8 ... Cached In recent years, President Clinton and Congress have claimed to produce a balanced budget, but this has only come as a result of taking money out of the Social Security trust fund. I believe that no funds should be spent out of the Social Security trust fund except to pay pensions to beneficiaries. My top priority this Congress is to protect senior's retirements. That is why the first bill I introduced this term was HR 219, the Social Security Preservation Act. This bill will make it illegal for politicians and bureaucrats in Washington to continuing dipping into the trust funds. money Keeping Promises about Social Security 14 February 2000    Texas Straight Talk 14 February 2000 verse 9 ... Cached Each year the President and Congress take the money Americans pay into Social Security and use it for purposes other than paying pensions. Simply, they are stealing from our senior citizens. The Social Security Preservation Act will restore Americans' faith in their retirement. It should be illegal for the government to use the trust fund for any purpose except administering the Social Security system. money Repeal Earnings Limitation 21 February 2000    Texas Straight Talk 21 February 2000 verse 6 ... Cached When the government takes money every month from people's paychecks for the Social Security Trust Fund, it promises retirees that the money will be there for them when they retire. The government should keep that promise and not reduce benefits simply because a senior chooses to work. money Repeal Earnings Limitation 21 February 2000    Texas Straight Talk 21 February 2000 verse 8 ... Cached The underlying issue of the earning limitation goes back to the fact that money from the trust fund is being spent for things other than paying pensions to beneficiaries. This is why the first bill I introduced in the 106th Congress was the Social Security Preservation Act (HR 219), which forbids Congress from spending Social Security funds on anything other than paying Social Security pensions. money Sound Money Needed More Than Ever 28 February 2000    Texas Straight Talk 28 February 2000 verse 2 ... Cached Sound Money Needed More Than Ever money Sound Money Needed More Than Ever 28 February 2000    Texas Straight Talk 28 February 2000 verse 5 ... Cached For my part, I was intrigued by an admission that Greenspan made to my direct questions put to him. After I pressed him for an explanation of what he considered the best tool to measure the money supply, Greenspan plainly admitted that he was at a loss for picking out what such a measure might be. When I suggested that it must be difficult to manage something you cannot even define, he not only agreed with me but said it was (and this is Mr. Greenspan's word) "impossible" to manage something you could not define. money Sound Money Needed More Than Ever 28 February 2000    Texas Straight Talk 28 February 2000 verse 6 ... Cached This is in fact an obvious truth but at the same time a startling admission from our nation's leading maker of monetary policy. Of course, one thing of which Greenspan is quite aware due to his familiarity with the economics of sound money, is the fact that the creation of units of monetary exchange out of thin air will lead to a recession. money Sound Money Needed More Than Ever 28 February 2000    Texas Straight Talk 28 February 2000 verse 7 ... Cached In addition to Greenspan's admission regarding the difficulty of a centrally managed money supply there is a darker problem to which he is far less likely to own up. That is the fact that centrally planned monetary policy is open to political pressures as well. For years Chairman Greenspan had been concerned about the over-expansion of the money supply, dating back at least to his "irrational exuberance" statements. So why did Greenspan not begin the monetary tightening that he now counsels at a much earlier period? money Sound Money Needed More Than Ever 28 February 2000    Texas Straight Talk 28 February 2000 verse 9 ... Cached So, as the President faced a stiff challenge that could threaten the very existence of his Presidency, Mr. Greenspan kept the money flowing and the good times rolling, even as he was speaking the rhetoric of increased concern for the economy. Now if anybody is surprised that the future of our US economy would be subjected to political manipulation to assist a troubled President you ought not to be. Indeed it is the history of the Fed to be responsive to certain political needs of, and pressures from, the political power brokers who have influence over the appointment and confirmation of Fed board members, including the Fed chair. Nobody who has seriously considered Fed action in light of election-year politics and troubled political leaders could argue with a straight face that the one does not directly affect the other. money Sound Money Needed More Than Ever 28 February 2000    Texas Straight Talk 28 February 2000 verse 10 ... Cached The bottom line is that Greenspan's admission suggests that, even without the negative affects of political considerations, a fiat monetary policy is doomed to fail. When we add to the mix the all-too-human tendency of central planners responding to political pressure, as Greenspan and the fed money making machine clearly did throughout the impeachment process, what we have is a recipe for disaster. Unfortunately, Greenspan's admission points anew to the fact that a big mess is coming. But fortunately for those who are listening, it also presents proof-positive that the best way to avoid such calamities in the future is to reset our monetary policy on a firm and sound basis. money How Americans are Subsidizing Organized Crime in Russia 06 March 2000    Texas Straight Talk 06 March 2000 verse 7 ... Cached This is now going to change. The FBI is opening its first overseas office. The plan is to open an office in Budapest, Hungary, since it's believed this is a haven to Russian mob leaders stealing our foreign aid money. Chief of the FBI's Organized Crime Division, Thomas Fuentes, brags that this office "will develop and operate criminal informants," to gather intelligence, something he says the FBI has never done before in this manner. money How Americans are Subsidizing Organized Crime in Russia 06 March 2000    Texas Straight Talk 06 March 2000 verse 11 ... Cached We don't need to police the world in the military sense, and surely we should not invade other countries with active FBI offices usurping other countries' sovereignty. If we're worried about how US taxpayers' dollars are misused in foreign aid, there is a much simpler solution - stop sending the money overseas. money The World Trade Organization 20 March 2000    Texas Straight Talk 20 March 2000 verse 4 ... Cached The economic argument for free trade should be no more complex than the moral argument. Tariffs are taxes that penalize those who buy foreign goods. If taxes are low on imported goods, consumers benefit by being able to buy at the best price, thus saving money to buy additional goods and raise their standard of living. The competition stimulates domestic efforts and hopefully serves as an incentive to get onerous taxes and regulations reduced. money The World Trade Organization 20 March 2000    Texas Straight Talk 20 March 2000 verse 9 ... Cached The most blatant example of the World Trade Organization undermining US sovereignty was the recent ruling rejecting US tax breaks to US companies doing business overseas. The European Union charged that the Foreign Sales Corporation program established in 1984 is now an "illegal subsidy," and the WTO appellate panel supported this position. Despite the fact that the US unfairly taxes corporations for profits earned overseas, unlike our foreign competitors, this program was meant to compensate to some degree for this unfairness built into our tax code. Nevertheless the WTO, in a ridiculous ruling, claimed that allowing a company to keep more of its own money through lower taxes is a "subsidy" -- something given at the behest of government. money Answering the Middle Class Squeeze 27 March 2000    Texas Straight Talk 27 March 2000 verse 10 ... Cached The fact that government creates money out of thin air must be addressed, because it is the entire reason why costs of living increase and standards of living decline. In a market economy prices tend to gently fall as a result of the increased efficiencies brought about by competition. If the average person paid half as much for his or her home and half as much for his or her car, would we not be better off than we are with these paltry government-mandated wage increases? money Electoral Follies 03 April 2000    Texas Straight Talk 03 April 2000 verse 5 ... Cached I have long advocated sweeping changes that would open up elections here. I have suggested that federal spending limits be abolished, and that presidential debates be opened. I have also worked for years to make ballot access easier to attain. The problem with elections is not that there is too much money involved, but rather that choices are restricted by government policies crafted by incumbents who want to be protected from competition. money Electoral Follies 03 April 2000    Texas Straight Talk 03 April 2000 verse 8 ... Cached In trying to conjure up what he calls, "a controlling legal authority," Gore has proposed not campaign finance reforms, but rather campaign restrictions. Forgetting for the moment that it would take an awful lot of trips to the Buddhist Temple to raise the $7.1 billion dollars that Gore seeks for this endowment, let me just address how this money would be spent. money Electoral Follies 03 April 2000    Texas Straight Talk 03 April 2000 verse 9 ... Cached First, we must realize that a new board would be empowered to govern this endowment. The board would undoubtedly be populated by political patronage appointees, but aside from that we should ask where in the U.S. Constitution the federal government is given authority to provide for such a board. The short answer is that no such authority exists, and only tinkering with our Constitution at the expense of the bill of rights can in fact create it. Moreover, this money would almost certainly be apportioned among certain favored political parties. Would so-called minor party candidates be funded? Would incumbents receive more of this taxpayer funding than challengers? Would candidates be funded in primaries? Who would decide all of these things? money The Cost of War 01 May 2000    Texas Straight Talk 01 May 2000 verse 13 ... Cached You may ask, how does this impact me? Well, first let's not forget that these bombs were primarily funded using U.S. taxpayer funds, money that could have been used to help bolster the Social Security trust fund or meet the so-called "pay-go" requirements of tax cut legislation. In fact, we are continuing to shell out funds for this policy. Just a few weeks ago I put forward an amendment to cut of funds for further operations in Kosovo and new adventures involving the US military in Colombia, but it was defeated. money Privacy Takes Center Stage 22 May 2000    Texas Straight Talk 22 May 2000 verse 8 ... Cached Ever since Vietnam, the government has been sucking dollars out of the Social Security trust fund to pay for government programs, including foreign adventurism. Whenever we vote to spend more money in Bosnia or Kosovo or Colombia, we are tapping funds that could be used to repay the Social Security trust fund for years of unrelated expenses. This spending must stop. money Repeal of Un-American "Death Tax" Passes House 12 June 2000    Texas Straight Talk 12 June 2000 verse 7 ... Cached There are some who argue the government would lose too much revenue if the death tax were repealed. First, I object to the notion that money collected from the death tax is, in fact, the government's money to lose. The money belongs to American citizens who worked hard to earn it. And another thing that jumps out at me is the inefficiency of government with regard to collecting this tax. Three years ago, the death tax raised $20 billion in government revenue. However, the cost to government of actually collecting the money, combined with the cost of compliance, amounts to $12 billion. That means the $20 billion collected by the IRS actually required a $32 drain on the economy. On the other hand, repealing the tax would cost the government $20 billion, but it would inject $32 billion into the economy. money Last-Minute Supplemental Spending is Dangerous and Unnecessary 10 July 2000    Texas Straight Talk 10 July 2000 verse 5 ... Cached The supplemental spending bill is dangerous, wasteful and unnecessary. Every year Congress decides midway through its fiscal year that it didn't budget enough money, so it creates an "emergency" to justify new spending. This year the "emergency" requires that we spend more on the failed drug war and more on sending our troops overseas. The big spenders in Congress made certain the supplemental bill was packaged with a Military Construction bill, which insured its passage during eleventh-hour voting. Congress already spends far too much money, and this additional $11 billion in spending cannot be justified. money Last-Minute Supplemental Spending is Dangerous and Unnecessary 10 July 2000    Texas Straight Talk 10 July 2000 verse 7 ... Cached I also oppose the $2 billion in spending authorized for the ongoing Kosovo military action. I consistently have decried our involvement in UN "peacekeeping" missions, which really are acts of war requiring congressional approval. Moreover, our national sovereignty is threatened when we place our troops under UN command. We don't need to spend more money on Kosovo or any other foreign war the UN deems deserving. Time and time again we have seen the disastrous consequences of meddling in wars which do not involve our national interests. We should get our troops out of Kosovo and stop trying to police the world. UN "peacekeeping" in Kosovo doesn't work, and we should not be spending billions of dollars in "emergency" funds perpetuating our involvement. The American people are tired of sending our troops abroad under UN command to interfere in conflicts unrelated to our national interest. money The Disturbing Trend Toward Federal Police 31 July 2000    Texas Straight Talk 31 July 2000 verse 5 ... Cached The American public gradually has become aware of the disturbing trend toward federal policing of our nation. Many Americans do not support ATF, especially after the disastrous events at Waco. I was widely attacked in the media and by members of Congress for questioning the government's actions at Waco, and for merely suggesting that many Americans were concerned by the possibility of federal agents taking violent action against American citizens. Now we have Congress spending more money to increase the budget for ATF, despite its highly questionable actions and the resulting public mistrust of the agency. money Right to Privacy Too Often Overlooked 14 August 2000    Texas Straight Talk 14 August 2000 verse 7 ... Cached I introduced this legislation after scores of calls to my office during the recent census process from constituents who thought the long forms were too intrusive. There is no reason why the federal government needs to know how much money you make or how many bathrooms you have in your home. This information is personal and private, and I am committed to restoring to Americans the peace of mind that comes from knowing that every detail of their lives is not being recorded. money Help for Those with Terminal Illnesses 21 August 2000    Texas Straight Talk 21 August 2000 verse 3 ... Cached This year we have heard proposals by various people in Washington advocating more government control over our health care system. These proposals almost invariably call for more tax dollars to be sent to Washington, so bureaucrats can make decisions about your medical care rather than having you choose. The approach is almost always the same- send your money to Washington, where bureaucrats decide what to do with your dollars. I advocate a different approach, however. I believe my constituents (and all Americans) should keep more of their own paychecks, leaving them with greater money and choices when addressing their own health care concerns. money Local Control is the Key to Education Reform 04 September 2000    Texas Straight Talk 04 September 2000 verse 7 ... Cached I also introduced the "Education Improvement Tax Cut Act" (H.R. 936) in an effort to give parents more control over improving their local schools. The Act allows individuals to claim a tax credit of up to $3,000 per year for cash or other donations to a school or scholarship program. This approach encourages parents to spend money to improve the school their child attends, rather than pay more in federal taxes to support distant education programs that reflect only the values and priorities of Congress and the federal bureaucracy. money The Danger of Military Foreign Aid to Colombia 11 September 2000    Texas Straight Talk 11 September 2000 verse 4 ... Cached Specifically, Colombia received 60 high-tech military helicoptors, along with hundreds of millions for training its police and military forces in "counternarcotics" activities. Clearly, this amounts to an escalation of the dangerous situation in Colombia. Time and time again we have witnessed the inevitable results of spending U.S. taxpayer dollars to fund internal conflicts in foreign nations. Apparently the current administration has not learned the lessons of Korea, Vietnam, El Salvador, or Kosovo. When we meddle in the politics (and warfare) of a foreign nation, we risk an open-ended conflict that costs billions and risks the lives of our soldiers. Obviously, U.S. military personnel will be needed to fly (and train others to fly) our modern helicopters. U.S. soldiers will train the Colombian army and national police. Despite the "war on drugs" justification, the truth is that the distinction between fighting drugs and waging war in Colombia is murky at best. We will send more money, more weapons, and more soldiers to Colombia, yet what will we receive in return? Do we really want to place our sons and daughters in harm's way so that we can influence another country's internal politics? What national interest is served by our involvement in this conflict? money The Danger of Military Foreign Aid to Colombia 11 September 2000    Texas Straight Talk 11 September 2000 verse 7 ... Cached The American people do not support our actions in Colombia. Polls have shown that approximately 70% of Americans do not support defending foreign countries if U.S. soldiers are put in jeopardy. Our primary concern in military affairs should be maintaining a strong national defense and protecting our national security interests. Our actions in Colombia have nothing to with our national defense, and they undermine our national security by creating resentment from factions we do not support. We must remember that money spent in Colombia necessarily reduces spending on a variety of more important issues. We should build up our military, providing our soldiers with better salaries, housing, and medical care. Similarly, foreign aid dollars could be spent on education, Social Security, or Medicare. My constituents do not support our dangerous and expensive involvement in Colombia, and I intend to continue working to eliminate wasteful foreign aid in our next budget. money Spending, Tax Cuts, or Debt Reduction? 25 September 2000    Texas Straight Talk 25 September 2000 verse 6 ... Cached First and foremost, we cannot forget that our nation remains nearly $6 trillion in debt. This debt is the result of one very simple but enormous problem: over the years, Congress has spent more than the Treasury has collected in taxes. Note that Congress, rather than any particular administration, is responsible for creating this debt. Congress alone determines how much is spent when it passes appropriations bills each year. When Congress spends more than it has, it must (like any family or business) borrow money. Eventually we all pay for this fiscal irresponsibility, as more and more of the government's annual budget is spent on interest payments. Even worse, this debt has caused the Federal Reserve to authorize the printing of more and more money during past decades, creating price inflation and making your dollars worth less. money Spending, Tax Cuts, or Debt Reduction? 25 September 2000    Texas Straight Talk 25 September 2000 verse 7 ... Cached Accordingly, any surplus that exists must be understood as a surplus for the current budget year only. Politicians and the media have termed these funds a "budget surplus" or "government surplus." These terms are widely accepted, and the self-congratulatory debate in Congress centers around what the government ought to do with the money. The truth, however, is that these funds represent a tax surplus. The federal government did not create a surplus, nor did the congressional budget process create a surplus. No politician created the surplus. You created the surplus with your tax dollars. It is your money! I urge you not to permit Washington politicians to claim any credit for overcharging you on April 15th. money "Privatization" of Social Security Poses Risks 02 October 2000    Texas Straight Talk 02 October 2000 verse 5 ... Cached Social Security, when instituted in the 1930's, represented a promise by the federal government to working Americans. In exchange for their participation in a retirement savings program (via payroll taxes), Americans would be guaranteed monthly payments when they retired. 65 years later, when the majority of America's families own stocks or mutual funds, it is easy for some to forget that many retired Americans continue to rely on a monthly Social Security check for all or most of their income. These Americans funded the system throughout their working lives, and they deserve to know that their retirement funds are secure- after all, it's their money. I believe Congress must work to insure that the federal government meets its promise to our seniors. money "Privatization" of Social Security Poses Risks 02 October 2000    Texas Straight Talk 02 October 2000 verse 9 ... Cached Furthermore, government involvement in the private stock market would have dangerous consequences. Who would decide what stocks, bonds, mutual funds, or other investment vehicles were approved? Which politicians would you trust to create an investment portfolio with your taxes? The federal government has proven itself incapable of good money management, and permitting politicians and bureaucrats to make investment decisions would result in unscrupulous lobbying for venture capital. Large campaign contributors and private interests of every conceivable type would seek to have their favored investments approved by the government. In a free market, an underperforming or troubled company suffers a decrease in its stock price, forcing it either to improve or lose value. Wary investors hesitate to buy its stock after the price falls. If the company successfully lobbied Congress, however, it would enjoy a large investment of your tax dollars. This investment would cause an artificial increase in its stock price, deceiving private investors and unfairly harming the company's honest competition. Government-managed investment of tax dollars in the private market is a recipe for corruption and fiscal irresponsibility. money Real Tax Reform Still Needed for Texas Families 16 October 2000    Texas Straight Talk 16 October 2000 verse 4 ... Cached Washington politicians love to champion the "budget surplus," as though government created an economic windfall. The truth is quite different. The surplus simply represents an overpayment of your tax dollars. Of course once the government has your money, it characterizes any tax cutting proposals as "costing too much." "We can’t afford to spend the surplus," politicians tell us. This is nonsense, and I urge taxpayers in my district to reject the ludicrous notion that tax reduction will harm the economy. The economy suffers when government takes money from your paycheck that you otherwise would spend, save, or invest. Taxes never create prosperity. Private-sector innovation and productivity are the engines that drive our economy, regardless of what politicians tell us. money Real Tax Reform Still Needed for Texas Families 16 October 2000    Texas Straight Talk 16 October 2000 verse 7 ... Cached We also must eliminate the very harmful estate tax, and end the terrible practice of imposing a tax on families when a loved one dies. This tax penalizes thrift and savings, denying Americans the right to pass their property to their children. Despite the Washington rhetoric, the estate tax does not apply only to the rich. In fact, it forces the sale of many small family businesses when heirs cannot pay the estate tax bill. Worst of all, the estate tax is imposed on savings and capital that already have been taxed. The estate tax simply takes money away from families and puts it in the hands of the government. There is no moral or economic justification for estate taxes, and I co-sponsored legislation and voted twice to repeal the tax. money The Appropriations Process Poses a Risk to American Taxpayers 06 November 2000    Texas Straight Talk 06 November 2000 verse 3 ... Cached Congress has nearly completed the controversial appropriations process for fiscal year 2001. The 13 appropriations bills that will be passed this year represent "discretionary" spending, which funds thousands of federal programs and agencies. By contrast, permanent law, funding Medicare, Medicaid, Social Security, and interest on the national debt sets "mandatory" spending. The appropriations process is critically important to taxpayers, because Congress is deciding how to spend YOUR money. As usual, the discretionary portion of the 2001 federal budget contains a staggering amount of special-interest pork. Spending levels for federal programs, foreign aid, and wasteful agencies have been increasing steadily throughout the 1990s. Unfortunately, this Congress has not demonstrated a willingness to change its reckless spending habits. Recent partisan posturing aside, taxpayers once again will pay for record amounts of needless federal spending. money Faith-Based Initiative Plan Poses Risks to Religious Organizations 05 February 2001    Texas Straight Talk 05 February 2001 verse 3 ... Cached An ABC news special entitled Mr. Stossel goes to Washington aired last weekend, documenting waste and inefficiency in government. In one particularly poignant example, the show profiled a woman who started a food kitchen to deliver hot meals to needy families in her small town. She operated with a small budget, using donations of food and money. Area families considered her a godsend, as she often provided the only complete meal they had each day. The success of her efforts, however, was quickly diminished when the federal government began investigating her operation. Because she received some federal funds, she was required to comply with numerous regulations. The stove she used did not have a hood, which federal regulations mandate. Her only choice was to buy a new stove, at prohibitive cost, or stop using her stove altogether. The government refused to make an exception for her, and now she runs a smaller kitchen which delivers only cold bag lunches. Of course, the ultimate victim of the government's shortsighted policy is the local families who once enjoyed hot meals. This example does not represent an isolated case, but rather is typical of the way government regulations harm our citizens. money Tax Cuts Benefit All Americans 19 February 2001    Texas Straight Talk 19 February 2001 verse 7 ... Cached With more Americans involved in the stock market, however, the politics of envy may fail to attract the average voter. Collectivist politicians forget that the American dream of becoming wealthy is alive and well. They seek to encourage resentment of the wealthy, when in truth most Americans admire successful people. They forget that upward mobility, the chance to start from humble beginnings and achieve wealth and position, is virtually impossible in high-tax socialist societies. Most of all, however, the pro-tax politicians forget that your money belongs to you. As a society, we should not forget their dishonesty when we go to the polls. money Bush Tax Plan Only One Piece of the Tax Cut Puzzle 12 March 2001    Texas Straight Talk 12 March 2001 verse 4 ... Cached Those opposing the tax cut said that it would "cost the government too much" and hurt the economy. The truth of the matter is that the economy is hurt when the government takes money out of the paychecks of private citizens that they would otherwise spend, save or invest. The government has never created anything, much less economic prosperity. The government can only take from one and give to another. money Bush Tax Plan Only One Piece of the Tax Cut Puzzle 12 March 2001    Texas Straight Talk 12 March 2001 verse 5 ... Cached Only the private sector can create growth, a lesson that the politicians and bureaucrats in Washington would be wise to learn. The average American pays about 1/2 of their income in federal, state and local taxes every year. This is a clear and present danger to the liberty of the individual. We need to free people from the chains of over-taxation and allow them to go back to work for themselves instead of the government. The Bush tax plan is a step in the right direction, but we must do more to put money back into an individual's paycheck. money Bush Tax Plan Only One Piece of the Tax Cut Puzzle 12 March 2001    Texas Straight Talk 12 March 2001 verse 6 ... Cached Along with reducing tax rates, we must rid ourselves of the estate tax and end the terrible practice of imposing a tax on families when a loved one dies. This tax penalizes thrift and savings, denying Americans the right to pass their property to their children. It forces the sale of many small family businesses when heirs cannot pay the estate tax bill. The estate tax simply takes money away from families and puts it in the hands of the government. There is no moral or economic justification for estate taxes and they must be eliminated. money Economic Woes and the Federal Reserve 19 March 2001    Texas Straight Talk 19 March 2001 verse 6 ... Cached Such thinking should be dismissed as absurd. Economic recessions are not the result of a gloomy national state of mind; if so, we could create economic prosperity simply by positive thinking. Yet basic education in economics is so badly lacking in America that many will accept this preposterous idea. The same ignorance of economic principles is behind the fallacy that capitalism is to blame for recessions, that a free market system causes an inevitable cycle of booms and busts. In reality, it is government intervention in the economy, particularly in the areas of money supply and interest rates, which creates the precarious financial bubbles that cause economic recessions. money Economic Woes and the Federal Reserve 19 March 2001    Texas Straight Talk 19 March 2001 verse 7 ... Cached The Federal Reserve did two things to artificially expand the economy over the last decade. First, it relentlessly lowered interest rates whenever growth slowed. Interest rates should be set by the free market, with the availability of capital (i.e. savings) determining the cost of borrowing money. In a healthy market economy, more saving equals lower interest rates. When savings rates are low, capital dries up and the cost of borrowing increases. When interest rates are set by the market, individuals and businesses make good spending decisions, because they pay an accurate interest rate for their debts. However, when the Fed set rates artificially low, the cost of borrowing becomes cheap. Individuals incur greater amounts of debt (evidenced by the record number of personal bankruptcies), while businesses overextend themselves and grow without real gains in productivity. The bubble bursts quickly once the credit dries up and the bills cannot be paid. money Economic Woes and the Federal Reserve 19 March 2001    Texas Straight Talk 19 March 2001 verse 8 ... Cached Second, the Fed also steadily increased the monetary supply throughout the 1990s by printing money. Recent Fed numbers show yearly increases of nearly 15% in the M2 money supply. Since 1996, the Fed has poured more than $100 billion in new dollars into the U.S. economy. These new dollars may make Americans feel richer, but the net result of monetary inflation has to be the devaluation of savings and purchasing power. Prices seemed stable over the last decade, but many types of inflation were not reported as such. An obvious example is stock prices, where companies making little or no profit often sold shares at ridiculous price/earnings ratios. Housing and energy prices also rose dramatically, and wholesale price inflation is an increasing threat. So while monetary inflation creates a sense of prosperity in the short run, long-term it simply makes your dollars worth less. money "Campaign Finance Reform" Serves Entrenched Interests in Washington 09 April 2001    Texas Straight Talk 09 April 2001 verse 3 ... Cached Last week the Senate narrowly passed the highly publicized McCain-Feingold campaign finance bill. I certainly understand that many Americans are tired of the corruption in Washington, where special interest lobbies pursue their agendas at the expense (literally) of the nation's taxpayers. Everyone knows that politicians use federal spending to reward lobbies, certain constituencies, and favored individuals. However, we must recognize that the McCain bill places restrictions only on individuals, not politicians. Politicians will continue to tax and spend, meaning they will continue to punish some productive Americans while rewarding others with federal largesse. The same vested special interests will not go away, and the same influence peddling will happen every day on Capitol Hill. The reason is very simple: when the federal government redistributes trillions of dollars from some Americans to others, countless special interests inevitably will fight for the money. The rise in corruption in Washington simply mirrors the rise in federal spending. The problem is not with campaigns, but rather with the steady shift from a relatively limited federal government to a virtually socialist system intent on huge redistributions of wealth. money "Campaign Finance Reform" Serves Entrenched Interests in Washington 09 April 2001    Texas Straight Talk 09 April 2001 verse 6 ... Cached The liberal mainstream media also benefit from campaign finance restrictions. When lobbies and individuals are limited in what they can give to campaigns and political parties, they instead will spend money on advertisements during election seasons. Media outlets relish the prospect of increased ad revenue. Although the McCain bill places restrictions just prior to elections on issue ads, which only implicitly support one party or candidate, the media know they will sell even more ads before the restriction period starts. Since the issue ad restrictions raise First amendment questions, the media also know that the Supreme Court likely will forbid such restrictions as unconstitutional. The end result is that mainstream media organizations will have more money and influence than ever before. The media will impact the outcomes of elections even more than they do today. money "Campaign Finance Reform" Serves Entrenched Interests in Washington 09 April 2001    Texas Straight Talk 09 April 2001 verse 7 ... Cached Grass roots organizations and third-party candidates especially suffer when contributions are limited. Such groups are prohibited from raising needed seed money from sympathetic wealthy donors interested in funding a new political movement. Millions of voters might be attracted to a third party, but they lose interest when their candidate garners very little publicity or is not on the ballot. It is virtually impossible for grass roots campaigns and new parties to match the established parties $1,000 at a time. money "Campaign Finance Reform" Serves Entrenched Interests in Washington 09 April 2001    Texas Straight Talk 09 April 2001 verse 8 ... Cached We need to get money out of government. Only then will money not be important in politics. Campaign finance laws will not make politicians more ethical, but they will make it harder for average Americans to influence Washington. money Tax Day- A National Nightmare 16 April 2001    Texas Straight Talk 16 April 2001 verse 3 ... Cached The one issue that generates more complaints to my office than any other is the income tax. Everyone has an opinion about taxes. For most people, their income tax return represents their most meaningful interaction with the federal government. Every April, Americans confess to the IRS their actions of the past year in excruciating detail. It's an annual ritual guaranteed to elicit strong feelings of disgust. Thanks to the deception of withholding taxes, April is the only time each year when most people realize how much money they really send the federal government. money The Federal Education Morass 28 May 2001    Texas Straight Talk 28 May 2001 verse 6 ... Cached The bill increases the Education department budget by a whopping 22 percent- more than even the liberals had hoped. The $9.2 billion increase brings the total department budget to more than $50 billion. No one mentions the high tax rates we all pay to finance this spending. We must remember that every dollar parents send to Washington is a dollar they don't have to spend directly on their children's education. Most education tax dollars sent to Washington fund the federal bureaucracy; far less than half of each dollar is ever returned to local schools. More importantly, federal school dollars come with strings attached. The more money we give to education bureaucrats, the more power they have to dictate how local schools are run. When federal spending increases, local schools are forced to do whatever it takes to get their share, even if this means adopting one size fits all policies mandated in Washington. In other words, federal money is used as a club to force schools to surrender more and more of their decision making authority to Washington. money The Bush Tax Cut 11 June 2001    Texas Straight Talk 11 June 2001 verse 3 ... Cached Last week President Bush signed into law the tax cut bill that ultimately emerged as a compromise between competing political interests in the House and Senate. I voted for and fully support the tax reductions contained in the bill, and I appreciate the President's efforts in making tax relief the first priority in his new administration. However, I am disappointed that Congress was unable to pass far more significant and immediate tax relief. Unfortunately, big spenders from both parties worked hard to characterize the tax cut as a "gift" from government to American taxpayers, as though the money belongs to Congress! These pro-tax politicians believe every penny of the bloated $2 trillion federal budget is essential to their beloved pork programs, hence they always argue that "we" cannot afford a tax cut. Millions of American families, however, certainly can afford a tax cut that leaves more money in their paychecks. So while the final bill passed last week represents a political compromise, I believe there is broad public support outside Washington for much larger tax reductions. Congress should not allow the wasteful spenders to prevent passage of further needed tax cut legislation over the coming months. money The Bush Tax Cut 11 June 2001    Texas Straight Talk 11 June 2001 verse 5 ... Cached Individual income tax rates will be reduced slightly over the next five years. The new rate structure eventually will be 10%, 15%, 25%, 28%, 33%, and 35%. These rate reductions are very important and should be much larger. Despite the dishonest rhetoric about the benefits of the tax bill going only to the rich, the truth is that high rates for the wealthiest taxpayers leave those individuals with less money to spend and invest. The tax surplus (the result of overtaxing) makes the current economic slowdown much worse, because billions of potential investment dollars are tied up in Treasury coffers. Marginal rate reductions are needed to spur investment and economic activity, but the new rates should have been made retroactive to immediately jump-start our nation's struggling businesses. money The Bush Tax Cut 11 June 2001    Texas Straight Talk 11 June 2001 verse 6 ... Cached The marriage tax penalty is reduced over the next decade by ultimately increasing the standard deduction for married couples to twice the deduction for individuals. Similarly, the size of the 15% bracket for married couples is increased to twice the size of the same bracket for singles. On a very positive note, the child credit will be increased over the next 10 years from its present $500 to $1000. This increase will allow American parents to keep more money to spend on their own families. money "Patients Bill of Rights" or Federal Takeover of Medicine? 02 July 2001    Texas Straight Talk 02 July 2001 verse 7 ... Cached We can hardly blame the market for our current healthcare woes. As with all goods and services, medical care is best delivered by the free market, with competition and patient responsibility keeping costs down. Government has neither the constitutional authority nor the wisdom to determine appropriate contract terms between individuals and health insurers. Congress needs to abolish the HMO mandate and allow favorable tax treatment for individuals paying for health care directly. Medical Savings Accounts (MSAs), which are tax-deductible and tax-exempt accounts used to pay medical expenses, should be made available to all Americans. When patients spend their own money for health care, they have a direct incentive to negotiate lower costs with their doctor. When government controls health care, all cost incentives are lost. No "patients bill of rights" will help us when the money runs out. money UN War Crimes Tribunal Cannot Create Peace 09 July 2001    Texas Straight Talk 09 July 2001 verse 5 ... Cached We should recognize that the Yugoslav people themselves are far more ambivalent about the Milosevic trial. In fact, the CNN bureau chief in Belgrade recently characterized the local reaction as mixed, stating that most Serbs would have preferred to see Milosevic tried in a Serbian court, for crimes such as embezzlement and corruption against the Serb people. He also stated that many Serbian people see themselves as victims of NATO and UN aggression, and that most feel the tribunal in the Hague is biased against Serbs. In fact, he states that most feel the recent pledge of money from western nations for rebuilding was simply a direct pay-off for Milosevic's extradition. So while the UN loves to congratulate itself as the world's peacemaker, it rarely is viewed that way by the citizens it claims to have rescued from their own corrupt leaders. Most people understandably resent having foreign armies invade their countries to determine the outcome of disputes within their own borders. We cannot expect nations defeated by UN armies to simply accept the subsequent verdicts rendered against them in UN war crimes courts. money Congress Sends Billions Overseas 23 July 2001    Texas Straight Talk 23 July 2001 verse 5 ... Cached The foreign operations bill similarly sends a whopping $15.2 billion overseas. Here are just a few examples of how your money is being spent: money Congress Sends Billions Overseas 23 July 2001    Texas Straight Talk 23 July 2001 verse 6 ... Cached o $2.8 billion for Israel, and $2 billion for Egypt. Our ongoing aid to both Israel and various PLO countries only serves to intensify the conflict in the region. U.S. money has been instrumental in the incredible militarization of Israel. Why are we fanning the flames of this ancient conflict? money Congress Sends Billions Overseas 23 July 2001    Texas Straight Talk 23 July 2001 verse 11 ... Cached o Millions for Iraq, Cambodia, and Sudan, all of which have oppressive governments. Do we really think the citizens will get the money? money Congress Sends Billions Overseas 23 July 2001    Texas Straight Talk 23 July 2001 verse 14 ... Cached It's ironic that Congress is sending more money abroad even as the U.S. economy limps toward recession. Those foreign aid dollars should have been returned to taxpayers to spend, save, invest, or donate to charity. In the fight against big government, we should start by demanding that Congress abide by the Constitution and stop sending U.S. taxpayer funds overseas. money Free Trade Means No Tariffs and No Subsidies 30 July 2001    Texas Straight Talk 30 July 2001 verse 3 ... Cached Congress recently considered several trade-related measures containing massive subsidies for American corporations that sell their products overseas. For example, the Export-Import bank received more than $750 million in appropriations funding last week. The biggest beneficiary of this money is China, which has used Ex-Im funds to build nuclear power plants, expand its state-run airline, and even build steel factories that compete directly with our own struggling domestic steel industry. Undoubtedly the American companies who benefit from contracts with China are happy with these trade subsidies, but American taxpayers should not be forced to pay for corporate welfare that simply benefits some politically favored interests. I introduced an amendment to completely defund the Ex-Im bank, because true free trade cannot flourish when subsidies interfere with healthy market competition. Unfortunately, however, the debate in Washington tends to focus on which nations and companies should be subsidized, rather than whether American taxpayers should pay for trade subsidies at all. money Free Trade Means No Tariffs and No Subsidies 30 July 2001    Texas Straight Talk 30 July 2001 verse 4 ... Cached I focus on the Constitution when voting on trade issues. This approach leads me to always oppose trade subsidies, as there is no enumerated power that gives Congress authority to send your money abroad to help big corporations sell their products. The current system allows the most powerful interests, with the largest political lobbies, to prevail in the Congressional pork subsidy game. So the biggest corporations tend to get bigger, while smaller competitors face a very uneven playing field. This is not free trade, but rather government-mangaged trade epitomized by international bodies like NAFTA and the WTO. As noted Austrian economist Murray Rothbard explained, we don't need government agreements to have free trade. In fact, true free trade means just the opposite- true free trade occurs only when government is not involved at all. We must remember that government-managed trade always means political favoritism. Merit, rather than politics, should determine which companies succeed in the export markets. Congress should abide by the Constitution and get out of the subsidy business altogether, so that real free trade can work and benefit all Americans. money Government Cannot Mandate Solutions to Ethical Dilemmas 06 August 2001    Texas Straight Talk 06 August 2001 verse 6 ... Cached First and foremost, we should insist that no federal funding be used for cloning or stem cell research. Most people don't realize that much of the cloning research performed to date has been funded with federal tax dollars. We can't know whether private money would have been spent in the same manner, because federal funding reduces the incentive for private companies to invest their own research dollars- especially when there is no guarantee that cloning technology will produce worthwhile results. Indeed, my own suspicion as a medical doctor is that the potential benefits of cloning have been overblown. So cloning almost certainly would not be the pressing issue it is today if the federal government had not become involved in the first place. Now, of course, Congress wants to ban the very thing it has been funding for years. money What Happened to the Surplus? 20 August 2001    Texas Straight Talk 20 August 2001 verse 7 ... Cached American voters should understand that Congress will always find a way to spend every last dollar sent to Washington. Remember, politicians get votes by promising everything to everyone, always at the expense of some other invisible taxpayers. Most politicians are unashamed of their unconstitutional pork-barrel spending, even highlighting during campaigns their "accomplishment" of spending more and more of your money. The federal government cannot maintain a budget surplus any more than an alcoholic can leave a fresh bottle of whiskey untouched in the cupboard. We must change our perception that a budget surplus is healthy for the economy, because every dollar parked in the federal treasury ultimately is spent by Congress. Those dollars could have been spent, saved, or invested in the private marketplace. With a spendthrift Congress, high federal revenues simply mean more federal spending. The only way to end the unconscionable waste is to drastically reduce federal revenues by cutting taxes. Voters need to regain control of the nation's finances by rejecting the big spenders at the ballot box. money Congressional Spending Threatens your Retirement 27 August 2001    Texas Straight Talk 27 August 2001 verse 5 ... Cached Unfortunately, the American people have been misled about how Congress spends Social Security funds. When FDR implemented the system in the 1930s, it was touted as a sensible pension plan for the working class. Most believed that Congress would put their money away for them, let it grow, and pay them a monthly retirement benefit roughly comparable to a private pension plan. In other words, the system was supposed to be a retirement savings plan, not a tax. It certainly was not supposed to serve as a massive slush fund for Congress. money Congressional Spending Threatens your Retirement 27 August 2001    Texas Straight Talk 27 August 2001 verse 6 ... Cached The problem, however, is that Social Security is not run like a private pension plan- it's run like a pyramid scheme by a Congress that cannot stop spending. Every dollar collected is spent. There is no account full of money with your name on it- indeed, the Social Security trust fund exists only on paper. Your federal retirement benefits are nothing more than a Treasury department IOU. The money withheld from your paycheck goes to pay current retirees- and there's no guarantee that revenues will exist to pay your benefits when you retire. money The Fed Cannot Create Prosperity 03 September 2001    Texas Straight Talk 03 September 2001 verse 6 ... Cached Still, while some in America have begun to challenge the wisdom of Alan Greenspan, few seem to question the concept of the Fed bank itself. In fact, the financial and political press never discuss the dangers of a fiat currency system managed by a centralized bank. Remember, every time the Fed cuts interest rates, it expands the amount of money in the economy. Economists have a simple word for this increase in the money supply: inflation. Inflation means your money has less buying power and your retirement savings are worth less. Yet we never hear the Fed criticized for its inflationary measures- on the contrary, Greenspan was widely praised throughout the 1990s as the all-knowing sage responsible for the good times. money The Fed Cannot Create Prosperity 03 September 2001    Texas Straight Talk 03 September 2001 verse 7 ... Cached The truth is that the good times may be coming to an end. The Fed, far from being our savior, is actually the cause of the current economic troubles. The Fed's easy credit policies flooded the economy with cheap money over the last decade, but the bills are coming due. With lots of artificial investment capital in the marketplace, businesses and individuals spent with less discipline and incurred more debt. The stock market became wildly overvalued, with many companies trading at outrageous prices. We should expect both personal and business bankruptcies to continue to climb as the bubble bursts. money The Fed Cannot Create Prosperity 03 September 2001    Texas Straight Talk 03 September 2001 verse 8 ... Cached In a truly free society, interest rates should be set by the market. The laws of supply and demand work better than any government bureaucrat in determining the correct cost of money, and without the political favoritism and secrecy that characterize central banks. Americans should not tolerate the manipulation of our economy and the inflation of our currency by an unaccountable institution. The turbulent period we are entering may serve to remind Americans that the Fed cannot suspend the laws of economics. The key to lasting prosperity is a return to true private banking, where interest rates are set by the free market and dollars are backed by gold. money What Should Government Do for the Airlines? 24 September 2001    Texas Straight Talk 24 September 2001 verse 6 ... Cached Accordingly, I voted for the administration's requested $40 billion emergency relief bill largely because I believed some of the money should go to the airlines as economic victims of the government's security failure. However, any relief must not be in the form of a bailout that makes the airlines better off than they were before September 11th or solves their pre-existing financial problems. I cannot vote to support future legislation that simply gives taxpayer dollars to the airlines without reference to their actual losses caused by the terrorist attacks. money What Should Government Do for the Airlines? 24 September 2001    Texas Straight Talk 24 September 2001 verse 7 ... Cached I also cannot support proposed legislation that simply provides corporate welfare for the airlines at the behest of industry lobbyists. The federal government has no business insuring that massive CEO salaries remain in effect while rank-and-file employees face layoffs and loss of medical benefits. It would be outrageous for the government to give taxpayer dollars to the airlines without insisting that the money be used for basic operations and safety issues. This is no time for the government to be protecting executives at your expense. money What Should Government Do for the Airlines? 24 September 2001    Texas Straight Talk 24 September 2001 verse 9 ... Cached Congress also should consider privatizing more aspects of airline and airport security. Many security-intensive private industries do an excellent job of maintaining safety without depending on federal agencies. Nuclear power plants, chemical plants, oil refineries, and armored money transport companies all employ private security forces that operate very effectively. No government agency will ever care about the bottom-line security and profitability of the airlines more than the airlines themselves. money What Should Government Do for the Airlines? 24 September 2001    Texas Straight Talk 24 September 2001 verse 10 ... Cached Even after the huge failure by the FBI, FAA, CIA, and many other federal agencies to provide security and prevent the recent tragedy, some in Congress simply are calling for more money for these same failed agencies. Why should we increase funding for a system that is not working? Now is the time to change our approach and look for new solutions to make the flying public safe. We must reject the easy impulse to pour more federal dollars into the same failed policies. money America Retains its Sovereign Right to Respond to Attacks 08 October 2001    Texas Straight Talk 08 October 2001 verse 7 ... Cached UN defenders seem to forget that the organization lacks credibility as a neutral arbiter of disputes. If anything, the UN acts as a forum for anti-American sentiments. Last week, after New York mayor Giuliani spoke eloquently before the UN general assembly, a parade of speakers from various Muslim countries followed him with denunciations of American policy. Some made veiled threats about the likelihood of more terrorism if the US does not work for "social justice," which really means they want more money from American taxpayers. Clearly, the UN is not an organization that we can sensibly consider an ally under any circumstances. money U.S. Armed Forces Should Protect American Soil 22 October 2001    Texas Straight Talk 22 October 2001 verse 7 ... Cached The simple solution is not huge increases in defense spending. The federal budget is not unlimited; taxpayers cannot be expected to pay infinite amounts of money for national defense. While non-defense spending certainly should be cut drastically, the most realistic approach is to reassign most of our troops currently overseas to stateside duty defending our borders. money Business as Usual in Washington? 29 October 2001    Texas Straight Talk 29 October 2001 verse 9 ... Cached While Congress debates airport security, we are not even seriously considering restoring the right of pilots to carry weapons for self-defense. Even though pilots once carried guns to protect the mail, and armored truck drivers can still carry guns to protect money, protecting passengers with guns is prohibited on commercial flights. The US Air Force can shoot down a wayward aircraft, but a pilot cannot shoot down an armed terrorist. Pilots need a last of defense in the cockpit. money U.S. Taxpayers send Billions to our Enemies in Afghanistan 05 November 2001    Texas Straight Talk 05 November 2001 verse 6 ... Cached Our foolish funding of Afghan terrorists hardly ended in the 1980s, however. Millions of your tax dollars continue to pour into Afghanistan even today. Our government publicly supported the Taliban right up until September 11. Already in 2001 the U.S. has provided $125 million in so-called humanitarian aid to the country, making us the world's single largest donor to Afghanistan. Rest assured the money went straight to the Taliban, and not to the impoverished, starving residents that make up most of the population. Do we really expect a government as intolerant and anti-west as the Taliban to use our foreign aid for humane purposes? If so, we are incredibly naive; if not, we foolishly have been seeking to influence a government that regards America as an enemy. money Expansion of NATO is a Bad Idea 12 November 2001    Texas Straight Talk 12 November 2001 verse 8 ... Cached As the world's foremost military power, it always seems that our money, our weapons, and our troops play the primary role in any NATO military action. It's a one-way street, however, as our NATO partners are not so enthusiastic about defending us. Some NATO states have refused outright to participate in our campaign in Afghanistan, while presumably reliable allies like France and Germany have expressed serious doubts. Only England, with whom we share a very strong kinship regardless of NATO, fully supports our actions. It's time for America to recognize that the interests NATO serves are not our own. money The Feds at the Airport 19 November 2001    Texas Straight Talk 19 November 2001 verse 5 ... Cached Remember, several federal agencies failed to prevent the September 11th attacks, including the FBI, CIA, and FAA. Now Congress wants to pour billions into the creation of a new federal workforce at airports. No doubt the federal union bosses are excited at the prospect of thousands of new members, but there is no reason to believe that an expansion of the Transportation department will produce better results. The pattern is always the same: government agencies fail to do their job, yet those same failed agencies are given more money and personnel when things go wrong. money The Feds at the Airport 19 November 2001    Texas Straight Talk 19 November 2001 verse 6 ... Cached Congress should be privatizing rather than nationalizing airport security. The free market can and does produce excellent security in many industries (including most European airports). Many security-intensive industries do an outstanding job of maintaining safety without depending on federal agencies. Nuclear power plants, chemical plants, oil refineries, and armored money transport companies all employ private security forces that operate very effectively. No government agency will ever care about the bottom-line security and profitability of the airlines more than the airlines themselves. Airlines cannot make money if travelers and flight crews are afraid to fly, and in a free market they would drastically change security measures to prevent future tragedies. In the current regulatory environment, however, the airlines prefer to relinquish all responsibility for security to the government, so that they cannot be held accountable for lapses in the future. money Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 5 ... Cached In truth, investing carries risk, and it is not the role of the federal government to bail out every investor who loses money. In a true free market, investors are responsible for their own decisions, good or bad. This responsibility leads them to vigorously analyze companies before they invest, using independent financial analysts. In our heavily regulated environment, however, investors and analysts equate SEC compliance with reputability. The more we look to the government to protect us from investment mistakes, the less competition there is for truly independent evaluations of investment risk. money Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 7 ... Cached Few in Congress seem to understand how the Federal Reserve system artificially inflates stock prices and causes financial bubbles. Yet what other explanation can there be when a company goes from a market value of more than $75 billion to virtually nothing in just a few months? The obvious truth is that Enron was never really worth anything near $75 billion, but the media focuses only on the possibility of deceptive practices by management, ignoring the primary cause of stock overvaluations: Fed expansion of money and credit. money Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 8 ... Cached The Fed consistently increased the money supply (by printing dollars) throughout the 1990s, while simultaneously lowering interest rates. When dollars are plentiful, and interest rates are artificially low, the cost of borrowing becomes cheap. This is why so many Americans are more deeply in debt than ever before. This easy credit environment made it possible for Enron to secure hundreds of millions in uncollateralized loans, loans that now cannot be repaid. The cost of borrowing money, like the cost of everything else, should be established by the free market- not by government edict. Unfortunately, however, the trend toward overvaluation will continue until the Fed stops creating money out of thin air and stops keeping interest rates artificially low. Until then, every investor should understand how Fed manipulations affect the true value of any company and the level for the markets. money Stimulus or Spending? 24 December 2001    Texas Straight Talk 24 December 2001 verse 4 ... Cached It's important to cut through the rhetoric surrounding the stimulus debate over the last few weeks. The only real and lasting way to stimulate the economy is to reduce the amount of money government takes out of the private economy. The only way to do this is by cutting taxes. When taxes are reduced on individuals, they have more money to spend, save, or invest. When taxes are reduced on companies, they have more money to hire new employees, increase wages, or pay dividends to investors. Since all economic growth depends on private capital, the goal of any economic stimulus plan must be to leave more private capital in the hands of investors. When too much American wealth is tied up in government coffers, investment and job growth suffer. This is exactly what we have seen over the past 18 months- the Treasury "surplus" touted by the last administration actually represents a tax overcharge that dragged the economy down well before September 11th. money Stimulus or Spending? 24 December 2001    Texas Straight Talk 24 December 2001 verse 5 ... Cached These obvious economic realities are lost on most Washington politicians, who either fail to understand basic economics or choose to ignore the long-term harm they cause. Many in Congress fought to add billions in wasteful pork spending to the stimulus bill. Of course the lobbyists and the special interests love any new spending, because it "stimulates" certain industries and groups. It's easy for politicians to point to the benefits of such spending; for example, a government contract certainly creates new jobs, right? The fallacy, of course, is that we never see the economic growth that would have been created if those tax dollars had never been sent to Washington in the first place. Remember, the private marketplace is always far more efficient that any government program. You know better than the government how to spend your own money, and the same principle applies to the economy as a whole. Spending is spending, even when politicians call it "investing in America" or "stimulus." Government cannot simply spend us into prosperity. money Stimulus or Spending? 24 December 2001    Texas Straight Talk 24 December 2001 verse 6 ... Cached Even when small tax cuts are discussed, there is misplaced debate over how best to structure things so Americans will be sure to spend the extra money and satisfy the supply-side believers. This social engineering has no place in our government. The only legitimate purpose of our tax system is to raise revenues needed to run the government. It's not the government's job to determine how you should use your money. money Argentine Default and the IMF 14 January 2002    Texas Straight Talk 14 January 2002 verse 3 ... Cached Imagine a hypothetical bank run by a group of international executives operating behind closed doors, making decisions of enormous international importance. Imagine the bank consistently made high-risk loans to shaky governments with weak economies and currencies. Imagine it made those loans at substantially below-market interest rates, even though the risks involved warranted high interest rates. Imagine it knew that certain corporate interests would benefit directly from contracts awarded by the borrowing nations. Finally, imagine the bank schemed with governments around the world to have taxpayers foot the bill for the predictable losses stemming from bad loans. Surely no reasonable person would invest his money in such an institution, right? money Argentine Default and the IMF 14 January 2002    Texas Straight Talk 14 January 2002 verse 5 ... Cached Why on earth would Congress fund such a lousy scheme? IMF supporters claim the organization exists to fight poverty in developing countries, but the evidence shows otherwise. At best IMF borrowers are governments of countries with little economic productivity; at worst the money ends up in the hands of corrupt dictators. Either way, most recipient nations end up with huge debts that they cannot service, which only adds to their poverty and instability. IMF money ultimately corrupts those countries it purports to help, by keeping afloat reckless political institutions that destroy their own economies. money Enron: Under-Regulated or Over-Subsidized? 28 January 2002    Texas Straight Talk 28 January 2002 verse 8 ... Cached The point is that Enron was intimately involved with the federal government. While most in Washington are busy devising ways to "save" investors with more government, we should be viewing the Enron mess as an argument for less government. It is precisely because government is so big and so thoroughly involved in every aspect of business that Enron felt the need to seek influence through campaign money. It is precisely because corporate welfare is so extensive that Enron cozied up to Congress and the Clinton administration. It's a game every big corporation plays in our heavily regulated economy, because they must when the government, rather than the marketplace, distributes the spoils. money Why Is There So Much Money In Politics? 04 February 2002    Texas Straight Talk 04 February 2002 verse 2 ... Cached WHY IS THERE SO MUCH MONEY IN POLITICS? money Why Is There So Much Money In Politics? 04 February 2002    Texas Straight Talk 04 February 2002 verse 4 ... Cached If the Senator and so many others in Congress believe so strongly in campaign finance reform, why is money in politics such a big problem? In other words, why don't these politicians simply put their money where their mouth is, act with integrity, and do a better job of policing their own campaigns? money Why Is There So Much Money In Politics? 04 February 2002    Texas Straight Talk 04 February 2002 verse 5 ... Cached I agree with him that a big problem exists. Special interest money has a huge influence in Washington, and it has a tremendous effect on both foreign and domestic policy. Yet we ought to be asking ourselves why corporations and interest groups are willing to give politicians millions of dollars in the first place. Obviously their motives are not altruistic. Simply put, they do it because the stakes are so high. They know government controls virtually every aspect of our economy and our lives, and that they must influence government to protect their interests. Our federal government, which was intended to operate as a very limited constitutional republic, has instead become a virtually socialist leviathan that redistributes trillions of dollars. We can hardly be surprised when countless special interests fight for the money. The only true solution to the campaign money problem is a return to a proper constitutional government that does not control the economy. Big government and big campaign money go hand-in-hand. money Why Is There So Much Money In Politics? 04 February 2002    Texas Straight Talk 04 February 2002 verse 7 ... Cached Campaign finance reform really means more regulations, more controls, more telling the American people how they can spend their money and how they can lobby Congress. Your freedoms should not be restricted because some politicians cannot control themselves. The problem is that there are members of Congress who yield to the temptation and influence of money, who effectively sell their votes to those who can give them money and keep them in office. If enough members did not yield to the temptation, they would not have to posture with phony campaign finance reform bills and they would not have to undermine the Constitution. money Why Is There So Much Money In Politics? 04 February 2002    Texas Straight Talk 04 February 2002 verse 8 ... Cached We need to get money out of government. Only then will money not be important in politics. Campaign finance laws will not make politicians more ethical, but they will make it harder for average Americans to influence Washington. money The Truth about Government Debt 11 March 2002    Texas Straight Talk 11 March 2002 verse 8 ... Cached When government borrows money, the actual borrowers- big spending administrations and politicians- never have to pay it back. Remember, administrations come and go, members of congress become highly-paid lobbyists, and bureaucrats retire with fat pensions. The benefits of deficit spending are enjoyed immediately by the politicians, who trade pork for votes and enjoy adulation for promising to cure every social ill. The bills always come due later, however- and nobody ever looks back and says, "Congressman so-and-so got us into this mess when he voted for all that spending 20 years ago." For government, the federal budget is essentially a credit card with no spending limit, billed to somebody else. We should hardly be surprised that such a government racks up huge amounts of debt! By contrast, responsible people restrain their borrowing because they will someday have to pay the money back. It's time for American taxpayers to understand that every dollar will have to be repaid. We should have the courage to face our grandchildren knowing that we have done all we can to end the government spending spree. money UN Planting the Seeds for a Coming Global Tax 25 March 2002    Texas Straight Talk 25 March 2002 verse 4 ... Cached The UN is meeting this week in Monterrey, Mexico to discuss exactly such a tax. The meeting is billed as a "Conference on Financing for Development," which is a nice way of saying it’s a conference to consider the best ways to shake down rich nations for money. UN bureaucrats think rich nations like America ought to give more money to poor nations- a lot more- simply because we’re rich. Never mind the billions of foreign aid tax dollars we send overseas every year; never mind the billions donated to overseas charities by Americans, the most charitable people on earth. The UN mindset blames the western world for poverty everywhere, assuming that our relative wealth must have come at the expense of the third world. The poor countries themselves are never deemed responsible for their own predicaments, despite their often corrupt governments, lack of property rights, and hostility toward wealth-producing capitalism. Somehow, it’s always our fault. So the UN holds conferences to talk about how we should pay to make things right, and the idea of a UN tax naturally arises. money UN Planting the Seeds for a Coming Global Tax 25 March 2002    Texas Straight Talk 25 March 2002 verse 5 ... Cached Understand that the UN views itself as the emerging global government, and like all governments, it needs money to operate. The goal, which the UN readily admits, is to impose a comprehensive set of global laws on all of us- laws that supersede sovereign national governments. To do this, the UN needs a global military, a global police force, international courts, offices around the globe, and plenty of highly-paid international bureaucrats. All of this costs money. money American Foreign Policy and the Middle East Powder Keg 01 April 2002    Texas Straight Talk 01 April 2002 verse 4 ... Cached Remember that American tax dollars have been instrumental in the incredible militarization of the entire region. We give Israel about $3 billion each year, but we also give Egypt $2 billion. Most other Middle East countries get money too, some of which ends up in Palestinian hands. Both sides have far more military weapons as a result. Talk about adding fuel to the fire! Our foolish and unconstitutional foreign aid, though debatably well-intentioned, only intensifies the conflict. money American Foreign Policy and the Middle East Powder Keg 01 April 2002    Texas Straight Talk 01 April 2002 verse 6 ... Cached This illustrates perfectly the inherent problem with foreign aid: once we give money to one country, we have to give it to all the rest or risk making enemies. This is especially true in the Middle East and other strife-torn regions, where our financial support for one side is seen as an act of aggression by the other. money American Foreign Policy and the Middle East Powder Keg 01 April 2002    Texas Straight Talk 01 April 2002 verse 7 ... Cached Just as our money never satisfies Israel, it doesn’t buy us any true friends elsewhere in the region. Foreign aid or not, the Islamic world sees America as a constant aggressor in the Middle East. Muslims resent our role in bringing the Shah of Iran to power, and they resent our permanent military bases in Saudi Arabia. They view our ongoing bombing and sanctions campaign in Iraq as wholly unjustified, believing it harms innocent Iraqis but not Saddam Hussein. They especially resent our tremendous financial support for Israel. In the eyes of many Muslims, to be at war with Israel is to be at war with America. money Are Your Taxes Too Low? 22 April 2002    Texas Straight Talk 22 April 2002 verse 4 ... Cached You may be tired of thinking about and paying taxes after April 15th, but many in Washington think you’re not paying enough. In fact, the preposterous idea that Americans are undertaxed is accepted as truth by a significant number of the members of Congress. These members believe today’s taxpayers are perpetrating an injustice by not paying more taxes, and that most of the money you make presumptively belongs to the government. Since your money really belongs to the government, tax cuts represent a government "giveaway." money Are Your Taxes Too Low? 22 April 2002    Texas Straight Talk 22 April 2002 verse 5 ... Cached This mindset revealed itself last week during a vote on the House floor. At issue were the exceedingly modest tax cuts passed by Congress last year, which the Senate modified to expire in 10 years. The bill voted upon would remove the expiration date and make the cuts permanent (at least until Congress tries to raise taxes again). This simple measure was stridently opposed by almost 200 members, many of whom subjected us to lectures about the "irresponsibility" of not revisiting tax cuts often to make sure the government has plenty of money. These lawmakers (apparently) really believe taxes have been cut to the bone and government starved to its limits. money Are Your Taxes Too Low? 22 April 2002    Texas Straight Talk 22 April 2002 verse 7 ... Cached No tax debate in Congress would be complete without some members pointing out the terrible fact that some Americans make more money than others. The tired class warfare argument, namely that the rich somehow don’t pay their fair share, remains endlessly popular on the Hill- even though it is demonstrably false. IRS statistics show that the top 1% of earners pay a whopping 36% of federal income taxes, while the top 5% pay 55%! In fact, earners in the top half account for 96% of income tax revenues, while the bottom half pays only 4%. Surely Marx would approve of this tremendously progressive tax system, yet the media and the left continue to perpetuate the myth that wealthy Americans use an unfair tax system to enrich themselves. money Predictions for an Unwritten Future 29 April 2002    Texas Straight Talk 29 April 2002 verse 7 ... Cached Peace, of sorts, will come to the Middle East but will be short-lived. There will be big promises of more U.S. money and weapons for Israel and those Arab countries allied with the United States. American troops, of course, will be used to monitor the "peace." money Predictions for an Unwritten Future 29 April 2002    Texas Straight Talk 29 April 2002 verse 20 ... Cached Inflationary Federal Reserve policies will accelerate, with massive credit creation worsening the dollar crisis. Gold will be seen as an alternative to paper money as it returns to its historic monetary role. money Federal Intelligence and Terrorism 20 May 2002    Texas Straight Talk 20 May 2002 verse 6 ... Cached Since September 11th we have heard predictable calls for vastly increasing the budgets of those agencies charged with intelligence gathering- including the CIA, FBI, ATF, INS, DIA, and NSA- but perhaps those agencies need to consolidate rather than expand their efforts. The current system involves too many bureaucrats, too much overlap, too many turf battles, too little information sharing, and no clear accountability. Why do we insist on perpetuating failed agencies and policies, throwing more and more money at problems that stem from bureaucratic culture rather than funding problems? Why do we think $60 or $80 billion will change what $40 billion could not? money No Taxpayer Funds for Nation-Building in Afghanistan 27 May 2002    Texas Straight Talk 27 May 2002 verse 3 ... Cached Whenever I discuss the issue of foreign aid with my colleagues, I always remind them that in all my years serving in Congress, I’ve never once had a constituent ask me to send more money overseas. Most Americans instinctively understand what the Constitution makes clear: Congress has no business sending tax dollars outside the country. Yet once again Congress has ignored the Constitution, this time voting to send $1.2 billion of your tax dollars to Afghanistan- even as our own troops engage in ongoing combat with hostile Taliban forces that many Afghans still support. It’s frankly almost schizophrenic to send billions in aid to the same country that harbors some of our most virulent enemies. money No Taxpayer Funds for Nation-Building in Afghanistan 27 May 2002    Texas Straight Talk 27 May 2002 verse 6 ... Cached The Russians must be laughing at the irony. Their problem has become our problem. For years they sought to dominate Afghanistan and impose their will upon it, at a cost of millions of dollars and thousands of lives- Russian and Afghan lives. We propped up the Afghan resistance with our weapons, money, and training, planting the seeds of the Taliban in the process. Now the former Soviet Union is gone, its armies long withdrawn from Afghanistan, and we’re left cleaning up the mess- yet we won’t be loved for it. No, we won’t get respect or allegiance from the Afghans, especially now that our bombs have rained down upon them. We will pay the bills, however. Afghanistan will become a tragic ward of the American state, another example of an interventionist foreign policy that is supposed to serve our national interests and gain allies, yet which does neither. money Congress Spends, Future Generations Pay the Bills 03 June 2002    Texas Straight Talk 03 June 2002 verse 4 ... Cached The problem is simple: Congress spends way too much. 2002 federal revenues are down compared to previous years, but Congress needs money to fund the post-September 11th spending spree. Faced with this pesky economic reality, Congress must do what any other organization does when spending exceeds income: borrow money. However, federal law sets a limit on the total amount of debt the Treasury can carry, and the limit- a whopping $5.95 trillion- has been reached. Since Congress apparently cannot control spending, the debt limit must be raised, this time by $700 billion. Yet no member, especially those who promote themselves as fiscal conservatives, wants to be on record as voting to increase the national debt. money Congress Spends, Future Generations Pay the Bills 03 June 2002    Texas Straight Talk 03 June 2002 verse 7 ... Cached Some Washington pundits, including many supply-side economists, claim that federal debt really does not matter. These pundits want government to use debt as a financial tool, much like a large business might. They argue that the only real issue is whether the debt can be serviced. This argument ignores a critical distinction, however: expansion is a proper goal for business, but not for government. Businesses service debt by increasing their revenues in the legitimate private economy, while government can service increasing debt only by increasing taxes or printing more money. money Congress Spends, Future Generations Pay the Bills 03 June 2002    Texas Straight Talk 03 June 2002 verse 8 ... Cached Of course debt and credit, wisely used, can be proper tools for families and businesses. Yet when government borrows money, the actual borrowers- big spending administrations and members of Congress- never have to pay the bills. Instead, they enjoy the political benefits of delivering endless unconstitutional pork programs to their constituents and special interests, while future generations of taxpayers are stuck with the bill. It is time for voters to think about their grandchildren and stop rewarding spendthrift politicians with 97% reelection rates. Debt does matter, and it’s cowardly to ask future generations to pay for our extravagance. money Gold, Dollars, and Federal Reserve Mischief 10 June 2002    Texas Straight Talk 10 June 2002 verse 3 ... Cached The mainstream financial press is now reporting the weakening of the U.S. dollar as measured against other currencies. This is unsettling news, as a relatively strong dollar was considered a hallmark of the economic boom of the 1990s- a boom that had far more to do with rapid credit expansion than real increases in productivity. The value of the dollar is down 18% this year compared to gold, which acts as a bellwether for the health of paper money. Gold prices historically rise when faith in paper currencies erodes, as investors seek the intrinsic value of gold to protect themselves from the arbitrary actions of the world’s central banks, including our own Federal Reserve. money Gold, Dollars, and Federal Reserve Mischief 10 June 2002    Texas Straight Talk 10 June 2002 verse 4 ... Cached Gold is history’s oldest and most stable currency. Central bankers and politicians don’t want a gold-backed currency system, because it denies them the power to create money out of thin air. Governments by their very nature want to expand, whether to finance military intervention abroad or a welfare state at home. This expansion costs money, and the big-government politicians don’t want spending limited to the amounts they can tax or borrow. This is precisely why central banks now produce all of the world’s major currencies. money Gold, Dollars, and Federal Reserve Mischief 10 June 2002    Texas Straight Talk 10 June 2002 verse 5 ... Cached Yet while politicians favor central bank control of money, history and the laws of economics are on the side of gold. So even though central banks try to mask their inflationary policies and suppress the price of gold by surreptitiously selling it, the gold markets always cut through the smokescreen eventually. Rising gold prices like we see today historically signify trouble for paper currencies, and the dollar is no exception. Should the dollar continue to decline in value, America will find itself struggling to service our already massive debt load even as our foreign creditors become less interested in our dollars. money Gold, Dollars, and Federal Reserve Mischief 10 June 2002    Texas Straight Talk 10 June 2002 verse 6 ... Cached America once enjoyed a stable dollar backed by gold deposits, a "gold standard" system. This system gradually was undermined throughout the last century, until President Nixon finally severed the last tenuous links between the dollar and gold in 1971. Since 1971, the Fed has employed a pure fiat money system, meaning government can create money whenever it decrees simply by printing more dollars. The "value" of each newly minted dollar is determined by the faith of the public, the total amount of dollars in circulation (the money supply), and the financial markets. In other words, fiat dollars have no intrinsic value. money Gold, Dollars, and Federal Reserve Mischief 10 June 2002    Texas Straight Talk 10 June 2002 verse 7 ... Cached What does all of this mean for you and your family? Since your dollars have no intrinsic value, they are subject to currency market fluctuations and ruinous government policies, especially Fed inflationary policies. Every time new dollars are printed and the money supply increases, your income and savings are worth less. Even as you save for retirement, the Fed is working against you. Inflation is nothing more than government counterfeiting by the Fed printing presses. Inflation acts as a hidden tax levied disproportionately on the poor and fixed-income retirees, who find the buying power of their limited dollars steadily diminished. The corporations, bankers, and wealthy Americans suffer far less from this inflation, because they can take advantage of the credit expansion that immediately precedes each new round of currency devaluation. money Gold, Dollars, and Federal Reserve Mischief 10 June 2002    Texas Straight Talk 10 June 2002 verse 8 ... Cached Brilliant Austrian school of economics scholar Murray Rothbard asked a seemingly complex question in the title of his essay: "What has Government Done to our Money?" The answer turns out to be pretty simple: Government consistently debases our money. How and why it debases our money has everything to do with politics, and nothing to do with the laws of economics. money A Stay of Execution for the Death Tax 17 June 2002    Texas Straight Talk 17 June 2002 verse 4 ... Cached The estate tax, more accurately known as the death tax because it is levied when a taxpayer dies, confiscates anywhere from 37% to 55% of a individual’s assets. While these rates are unconscionable, the death tax also represents an especially galling form of double taxation. Americans already pay federal and state income taxes throughout their working lives. They pay income and capital gains taxes on money they save and invest. They pay local property taxes on their homes. They pay various sales taxes whenever they buy something. They even pay steep federal taxes on gasoline and telephone use. Yet after a lifetime of burdensome taxes, the death tax punishes Americans one last time simply because they worked hard, saved, and invested to pass something on to their families. money A Stay of Execution for the Death Tax 17 June 2002    Texas Straight Talk 17 June 2002 verse 6 ... Cached The tired argument that the estate tax only affects the rich simply false. Many of my constituents are farmers, ranchers, and small business owners. They are hardly rich, but some of them have built up valuable businesses they would like to pass on to their children. Yet when they die, their children rarely have the liquid cash needed to pay the death tax bill. Often the business must be sold or divided to raise money for the IRS. Many family farms across this country have been bought by large corporations because of the estate tax. money Securing the Homeland? 08 July 2002    Texas Straight Talk 08 July 2002 verse 2 ... Cached Various congressional committees will spend the summer drafting the Homeland Security Act, legislation that will create the largest new federal bureaucracy in several decades. Only broad proposals exist at the moment, but the debate over details may reveal how special interests and power hungry bureaucrats stand in the way of common sense. We certainly don’t need another federal jobs program that does nothing to make us safe from terrorism, nor should we be eager to pour more money into the same agencies and policies that failed us on September 11th. money Securing the Homeland? 08 July 2002    Texas Straight Talk 08 July 2002 verse 3 ... Cached Real homeland security must focus on consolidation of federal agency resources, better intelligence gathering, and elimination of red tape and bureaucratic turf battles that prevent proper sharing of information. Proposals to merely hire thousands of new federal employees and throw money at new agencies- without changing the bureaucratic culture- are doomed to fail. money Securing the Homeland? 08 July 2002    Texas Straight Talk 08 July 2002 verse 9 ... Cached Ultimately we cannot make ourselves safer simply by creating new departments, spending more taxpayer money on federal police, or sending more troops into yet another foreign land. Real homeland security requires a reexamination of our policies and priorities abroad, and a commitment to the Constitution at home. money What About Government Accountability? 15 July 2002    Texas Straight Talk 15 July 2002 verse 3 ... Cached This does not mean corporate America is innocent. Many big corporations soak taxpayers for billions in government subsidies every year, while using political influence to avoid fair competition in the marketplace. Criminal conduct by executives at Enron, WorldCom, or any other company should be prosecuted vigorously under state fraud laws. If these executives indeed lied to investors, presented false earnings statements, or otherwise stole from shareholders, they should return the stolen money and serve jail time. money What About Government Accountability? 15 July 2002    Texas Straight Talk 15 July 2002 verse 4 ... Cached Yet Mr. Cavuto is absolutely right. No corporation on earth comes close to the accounting fraud practiced year after year by the federal government. In fact, there is no real accountability at all for the trillions in tax dollars raised and spent annually by Congress and our entrenched federal agencies. The official "accounting" that does take place is a sham. Every year Congress creates a meaningless budget, the Fed prints phony money, the Budget office issues false revenue forecasts, and the administrative agencies waste billions in the most unproductive ways imaginable. Literally tens of billions of dollars go unaccounted for every year, simply disappearing down bureaucratic black holes. This hardly represents a standard against which corporations should be judged! money What About Government Accountability? 15 July 2002    Texas Straight Talk 15 July 2002 verse 5 ... Cached None of the free-market restraints against financial mismanagement apply to government. The federal government doesn’t need to raise money by meeting a market demand or raising investment capital- it simply takes what it wants through taxes, which can be raised at will. It never has to operate profitably or efficiently; witness Amtrak and the Postal Service. It also has no incentive to cut costs. In fact, federal agencies scramble to spend every last penny of their budgets to justify more the next year. There is no stock price to worry about, and nobody tracks government "performance" against earlier years. Nobody ever gets fired. Simply put, the money is not hard-earned, so it’s not well-spent. money Your Taxes Fund South American Bailout 12 August 2002    Texas Straight Talk 12 August 2002 verse 3 ... Cached This money, we are told, is just a "bridge loan" to give Uruguay a little breathing room until it receives its next cash infusion from the International Monetary Fund. In other words, the plan for Uruguay is to pay off one loan by getting a bigger loan, like a hapless spendthrift using one credit card to pay off another. What’s worse is that American taxpayers already fund the IMF with a $37 billion line of credit, so Uruguay will be paying us back with our own money! The same goes for Brazil, which just received a record $30 billion from the IMF to deal with its own looming bank collapse. money Your Taxes Fund South American Bailout 12 August 2002    Texas Straight Talk 12 August 2002 verse 6 ... Cached The real concern behind schemes like the Exchange Stabilization Fund and the International Monetary Fund is the corporate interests they subsidize. American banks and corporations have a great deal of money invested in South America, and a bank default by any country there directly threatens those dollars. The multinational banks especially fear a chain reaction of economic meltdowns, beginning with Argentina and spreading to Uruguay, Brazil, and beyond. So they use political influence to thwart the free market process and prop up bankrupt economic policies in Uruguay. money Does Government Run the Economy? 19 August 2002    Texas Straight Talk 19 August 2002 verse 6 ... Cached In a capitalist economy, the government acts only as a referee by protecting property rights, enforcing contracts, and prohibiting force and fraud. Because our modern federal government has strayed so far from its limited constitutional powers, it controls the economy far more than the founders intended. As a result, our economy is becoming more and more socialist. Federal taxes, regulations, welfare, subsidies, wage controls, and price controls, along with Fed manipulation of interest rates and the money supply, all represent socialist government intervention in the economy. No matter what the Democrats or Republicans want to call it, socialism is socialism. We should have the honesty to identify exactly what is being advocated when some call for even more government control of the economy. money Who Should Prosecute the Snipers? 04 November 2002    Texas Straight Talk 04 November 2002 verse 2 ... Cached The sniper suspects who terrorized the Washington DC area for most of October have been arrested, but a controversy over who should prosecute them has ensued. Virginia, Maryland, and Alabama have already filed murder charges, raising the likelihood of a jurisdictional battle between them. Late last week, however, the federal government also filed criminal charges against the two men, accusing them of a plot to extort $10 million. The extortion charge is based on a note the killers left at the scene of one of the murders demanding money. Attorney General Ashcroft has made it clear he thinks the feds, rather than any of the states involved, should try the case. money Who Should Prosecute the Snipers? 04 November 2002    Texas Straight Talk 04 November 2002 verse 3 ... Cached Yet the snipers are guilty of murder first and foremost. They may have been extortionists as well, although it’s hard to believe money was really their motivation. Even if a passable case for extortion can be made, however, their 10 murders in the DC area are far more serious crimes. Justice clearly requires that both suspects be tried for murder- a crime which constitutionally and historically is a state matter. Why should lesser federal charges of extortion take precedence over state murder charges? money Our Incoherent Foreign Policy Fuels Middle East Turmoil 02 December 2002    Texas Straight Talk 02 December 2002 verse 3 ... Cached Consider Saudi Arabia, which more than any other nation was responsible for the September 11th attacks. Even with the proven connection between the Saudis and al Qaeda, even with new reports of Saudi charities funneling money to terrorist groups, the administration still insists on calling them "a good partner" in the war on terror. Yet the nation that gave us most of the 9/11 murderers, whose citizens often support virulent Islamic terrorists, should hardly be called a friend. money What Does Regime Change in Iraq Really Mean? 16 December 2002    Texas Straight Talk 16 December 2002 verse 5 ... Cached Saddam Hussein and Osama bin Laden are perfect examples of our onetime "allies" who accepted our help yet failed to do our bidding for long. Both gladly welcomed American money, weapons, and military training during the 1980s. With bin Laden we sought to frustrate the Soviet advance into Afghanistan, and many Pentagon hawks undoubtedly felt vindicated when the Russian army retreated. Yet twenty years later, bin Laden is a rabid American-hating madman whose operatives are armed with our own Stinger missiles. Similarly, we supported the relatively moderate Hussein in the hopes of neutralizing a radically fundamentalist Iran. Yet this military strengthening of Iraq led to its invasion of Kuwait and our subsequent military involvement in the gulf. Today the Hussein regime is belligerently anti-American, and any biological or chemical weapons he possesses were supplied by our own government. money What Does Regime Change in Iraq Really Mean? 16 December 2002    Texas Straight Talk 16 December 2002 verse 6 ... Cached We’ve seen this time and time again. We support a military or political group based on our short-term objectives, only to have them turn against us later. Ultimately, our money, weapons, and interventionist policies never buy us friends for long, and more often we simply arm our future enemies. The politicians responsible for the mess are usually long gone when the trouble starts, and voters with a short attention span don’t connect the foreign policy blunders of twenty years ago with today’s problems. But wouldn’t our long-term interests be better served by not creating the problems in the first place? money The Great Global Social Security Giveaway? 06 January 2003    Texas Straight Talk 06 January 2003 verse 8 ... Cached In the 107th Congress, I introduced the Social Security Preservation Act (H.R. 219), which would ensure that all money in the Social Security trust fund is spent solely on Social Security. As Congress continues to demonstrate an inability to control spending that threatens the Social Security trust fund, the need for this legislation has never been greater. That is why I intend to re-introduce this legislation in the 108th Congress, which opens this month. Social Security should be limited to United States citizens and nationals who have paid into the system. It should not be a global giveaway. money Conscription is Collectivism 13 January 2003    Texas Straight Talk 13 January 2003 verse 6 ... Cached I believe wholeheartedly that an all-volunteer military is not only sufficient for national defense, but preferable. It is time to abolish the Selective Service System and resign military conscription to the dustbin of American history. Five hundred million dollars have been wasted on the Selective Service System since 1979, money that could have been returned to taxpayers or spent to improve the lives of our nation’s veterans. money Tax Cuts and Class Wars 20 January 2003    Texas Straight Talk 20 January 2003 verse 2 ... Cached President Bush unveiled a very modest tax cut plan last week that calls for the elimination of double taxation on dividends. Democrats immediately attacked the plan using class warfare tactics, clamoring that only the rich will benefit from a dividends tax reduction. This tired argument ignores the millions of middle class American investors who receive dividend checks and presumably don’t consider themselves wealthy. It also ignores the stimulative effect that any form of tax cut has on the economy. When dividends are taxed only once, as corporate income, investment is encouraged and shareholder demand for dividends increases. This in turn encourages companies to increase profits, because it’s hard to pay dividends if you’re not making any money. But these arguments require some analysis, and the left would rather appeal to base emotions and attempt to paint the wealthy as sinister tax dodgers. money Tax Cuts and Class Wars 20 January 2003    Texas Straight Talk 20 January 2003 verse 5 ... Cached The class war tactic highlights what the left does best: divide Americans into groups. Collectivists see all issues of wealth and taxation as a zero-sum game played between competing groups. If one group gets a tax break, other groups must be rallied against it- even if such a cut would ultimately benefit them. Yet the class warriors forget that American wealth is not static, but rather very dynamic. Poor people become rich, and rich people lose all of their money. In fact, at no time in American history have more of the nation’s wealthy earned rather than inherited their money. Rich family dynasties are increasingly rare, and are quickly destroyed by unproductive spendthrift generations. So when the left attacks the rich, they’re attacking a fluid group that many poor Americans hope to join someday by moving up in life. Upward mobility is possible only in a free-market capitalist system, whereas collectivism dooms the poor to remain exactly where they are. money Government Policy and False Prosperity 27 January 2003    Texas Straight Talk 27 January 2003 verse 6 ... Cached Even in hindsight, many don’t seem to understand the true nature of the 1990s Fed-created financial bubble. The prosperity enjoyed by so many companies and individuals was artificial, caused by Fed policies that vastly inflated the money supply and made the cost of borrowing money artificially low. Much of the “money” made in the market, and most of the astonishing paper increases in market capitalization, were illusory. The economic problems created by this artificial bubble are real, and we cannot hope to insulate ourselves from the ongoing correction merely by tinkering with the tax code. money Government Policy and False Prosperity 27 January 2003    Texas Straight Talk 27 January 2003 verse 7 ... Cached We need to rid ourselves of the fantasy that wealth can be created by artificially raising stock prices. The only stimulus our economy needs is sensible government policies. A sound money system, low taxes, and a low regulatory burden would foster an environment where real productivity and economic growth could flourish. Politicians need to learn from the failed Fed policies of the 1990s, and stop trying to fool the markets and the American people by promising prosperity through government policy. money Welfare for the Left, Welfare for the Right, Welfare for the World 03 February 2003    Texas Straight Talk 03 February 2003 verse 3 ... Cached “The President, a Republican no less, seems to believe that government should be telling us what kind of car to drive, what kind of education our kids should receive, how to cure disease in Africa and the Caribbean, how to liberate women the world over, how to fund technological innovation, and even how to ‘transform our souls’ and lift the ‘hopes of all mankind’- all courtesy of the long-suffering taxpayer who is, once again, supposed to believe that the government can make better use of his money than he can.” Lew Rockwell Jr., President of the Mises Institute money Welfare for the Left, Welfare for the Right, Welfare for the World 03 February 2003    Texas Straight Talk 03 February 2003 verse 5 ... Cached Consider the call for hydrogen-powered cars. The administration wants to spend more than $1.2 billion tax dollars promoting hydrogen research. This is hailed as forward-thinking environmentally friendly policy, but really it’s just corporate welfare. No one considers that certain companies and lobbyists will benefit handsomely from this new government spending, or that American taxpayers might prefer to keep the money for themselves. If companies in the hydrogen industry get a billion dollars, what about other industries? Why should government favor one industry or technology, and who in government is qualified to choose? money Welfare for the Left, Welfare for the Right, Welfare for the World 03 February 2003    Texas Straight Talk 03 February 2003 verse 8 ... Cached I say “supposedly” because the money never really helps, and almost always ends up in the hands of dictators, corrupt government officials, or thuggish leaders of local factions. We could send $100 or $500 billion, and Africa would remain mired in AIDS and poverty. Only freedom, property rights, capitalism, and the rule of law can help Africa. The AIDS crisis cannot be solved by government, but rather requires a combination of truly independent private sector medical research and politically incorrect prevention efforts. Americans are the most charitable people on earth, and we should stop taxing them so much and allow private charities, including charities aimed at combating AIDS, to flourish. money Welfare for the Left, Welfare for the Right, Welfare for the World 03 February 2003    Texas Straight Talk 03 February 2003 verse 9 ... Cached The State of the Union speech provided stark evidence that the era of big government is hardly over, and that welfare has not been reformed. Hydrogen boondoggles and AIDS industry welfare are just two small examples, symbols of what is wrong with a federal government that spends 2.4 trillion dollars in a single year. Not only does government spend far too much of your money, it spends the money badly. Once we as a society accepted the notion that Congress could fund programs not authorized in the Constitution, the sky was the limit- and we’ve reached that limit today. money Support the President's Tax-Free Savings Plan 10 February 2003    Texas Straight Talk 10 February 2003 verse 6 ... Cached Incredibly, members of both political parties seem to question the obvious benefit of tax-free accounts. With the Social Security system threatened by demographics and congressional spending raids, the need for private retirement saving has never been greater. America was in fact built with private savings. Only when individuals save money does a society develop the capital for investment and lending that is so critical to economic growth. Impoverished nations, by contrast, have little or no capital. This is often because of burdensome taxes and a lack of property rights. The desire to save money and build a better life is intrinsically human, and no society that punishes saving can remain prosperous for long. money Buying Friends with Foreign Aid 24 February 2003    Texas Straight Talk 24 February 2003 verse 2 ... Cached With an American invasion of Iraq imminent, nations in the region are increasingly worried about the political, social, and economic consequences of a second Gulf war. Not surprisingly, Jordan, Israel, Kuwait, and Turkey are demanding more money from the U.S. to offset the costs, economic and otherwise, of such a war. Other Middle East countries are sure to follow. Yet the more foreign aid we send to the Middle East, the more hopelessly entangled we become in the intractable conflicts that define it. Worse yet, the practice of buying friends casts very serious doubt on the lofty claims that we are promoting democracy. If our plans for Iraq will bring peace and stability to the region, why do we have to buy off the Middle East governments that stand to benefit? The truth is that those governments, even our ostensible allies, have very serious doubts about the wisdom of our proposed invasion of Iraq. Money- lots of it- makes them more amenable to our cause. money Buying Friends with Foreign Aid 24 February 2003    Texas Straight Talk 24 February 2003 verse 5 ... Cached Turkey wants more than our money, however. It also wants to control the Kurdish population in northern Iraq. The Kurds in both Iraq and Turkey desire an independent Kurdish state, which the Turkish government fiercely resists. Turkish officials want an agreement that will allow thousands of their soldiers to advance into Kurdish northern Iraq on the heels of American forces. This would be a shameful insult to the Kurdish people, who at least have been consistent foes of Saddam Hussein. money Buying Friends with Foreign Aid 24 February 2003    Texas Straight Talk 24 February 2003 verse 6 ... Cached The billions we will give Turkey are just the tip of the iceberg. The foreign aid feeding frenzy will only intensify as America expands its role as world policeman. Already it is routine for some nations to send negotiating teams to Washington during the appropriations process, intent on securing the foreign aid loot to which they feel so entitled. Just as hordes of domestic lobbyists roam the halls of Congress seeking federal money for every conceivable special interest, we should expect foreign lobbyists to increasingly look for money from American taxpayers. In the new era of American empire, foreign aid spending serves as the carrot. Iraq will get the stick, at least at first. Once we occupy it, of course, we will spend billions there as well. money Buying Friends with Foreign Aid 24 February 2003    Texas Straight Talk 24 February 2003 verse 7 ... Cached Foreign aid is not only unconstitutional, but also exceedingly unwise. It creates the worst kind of entangling alliances that President Washington warned about. It doesn’t buy us any real allies, but instead encourages false friendships, dependency, and a sense of entitlement among the recipients. It also causes resentment among nations that receive none, or less than they feel they deserve. Above all, however, it is simply unconscionable to tax American citizens and send their money overseas. We have enough problems of our own here at home, and those dollars should be returned to taxpayers or spent on legitimate constitutional activities. money The 2003 Spending Orgy 03 March 2003    Texas Straight Talk 03 March 2003 verse 4 ... Cached This practice is akin to getting a pay cut at work, then immediately buying a bigger house with a higher mortgage payment. No sensible individual would spend more when his income drops, but Congress operates without any shred of common sense or restraint at budget time. When members of Congress consider the various spending bills, the money- hundreds of billions of dollars- hardly seems real. What’s another 10 million dollars, they reason, for a pet project or favor to a lobbyist? Unlike a family facing the loss of income, Congress can raise taxes, borrow from foreign governments, or spend money newly printed by the Federal Reserve. Spending cuts are simply not considered. In fact, the federal budget grows every year without exception, and the previous year’s spending is treated only as a baseline. How long could your family survive if it spent five or ten percent more money each and every year? money The Myth of War Prosperity 10 March 2003    Texas Straight Talk 10 March 2003 verse 4 ... Cached Bastiat’s broken window fallacy applies to our current dilemma in the Middle East. The situation in Iraq is the broken pane of glass, and “fixing” it will appear to benefit the economy in the short run. Certain industries will certainly benefit. But the hidden opportunity costs will again be enormous. The hidden costs will be the loss of economic activity that would have occurred if the money spent waging war had instead been spent at home. money The Myth of War Prosperity 10 March 2003    Texas Straight Talk 10 March 2003 verse 5 ... Cached Inflation is certain during wartime, as the Treasury prints more money to fund military expenses. Our dollar will become weaker against other currencies because of the uncertainty caused by turmoil in the Middle East. Control of Iraqi oil wells, which is often cited as an economic windfall from the war, is not guaranteed and might not happen quickly. Oil prices almost certainly will skyrocket and will remain inflated after the war, especially given the deteriorating buying power of our own dollars. money The Myth of War Prosperity 10 March 2003    Texas Straight Talk 10 March 2003 verse 7 ... Cached Furthermore, taxes or deficits necessarily rise when the nation’s productivity falls because of war. Estimates of war spending range from $100 billion to $200 billion, a figure that does not include tens of billions needed for nation-building in Afghanistan and Iraq. As with past wars, a huge surge in spending will happen as tax revenues are falling dramatically. This spending can be sustained only by printing more money, borrowing from foreign nations, or raising taxes- all of which harm the economy. money Honor Veterans with a Better Budget 24 March 2003    Texas Straight Talk 24 March 2003 verse 6 ... Cached Having served in the U.S. Air Force for five years, I feel an obligation to our veterans and current armed forces. Congress wastes so much money that only a small portion of that waste could make a huge difference in the lives of our veterans. Depending on what the Senate does, Congress may have a chance to revisit the 2004 budget and find the resolve to fully fund needed veterans programs. money The Free-Market Approach to the Medical Malpractice Crisis 31 March 2003    Texas Straight Talk 31 March 2003 verse 8 ... Cached I have introduced legislation that allows individuals a tax credit for the purchase of negative outcomes insurance. Needless to say, my bill prohibits the IRS from treating such insurance proceeds as taxable income. After all, while we don’t need trial lawyers getting any more insurance money, but we certainly don’t need the IRS getting it either! money War Profiteers 07 April 2003    Texas Straight Talk 07 April 2003 verse 3 ... Cached But nothing is simple in Washington. Congress could not resist the opportunity to put its hands in taxpayers’ pockets by adding 20 billion dollars in completely unrelated spending to the final bill. In essence, Congress is so addicted to spending that it will use any opportunity, even a war, to spend money for every conceivable reason- however unrelated to the war in Iraq. money War Profiteers 07 April 2003    Texas Straight Talk 07 April 2003 verse 6 ... Cached -$3.2 billion for an airline bailout-even though the airlines always seem to be troubled and always feel they deserve tax money. If we bail out the airlines, why not the hotels, restaurants, and rental car agencies that have been affected by 9-11 and the war in Iraq? Why not every industry that’s suffering?; money War Profiteers 07 April 2003    Texas Straight Talk 07 April 2003 verse 24 ... Cached These are just some examples of how Congress takes every possible opportunity to spend your money, even when it should be focused on the war in Iraq. Was it really too much to ask for a clean bill to fund the president's request, a bill unencumbered by pork handouts and useless foreign aid? Apparently not even war can prevent Congress from shamelessly sticking its hands in your pockets while cloaking itself in “support the troops” rhetoric. money Congress Exceeds its Credit Limit 14 April 2003    Texas Straight Talk 14 April 2003 verse 2 ... Cached The term “national debt” really is a misnomer. It’s not the nation’s debt, but rather the federal government’s debt. The American people didn’t spend the money, but they will have to pay it back. And if Congress has its way, our nation’s Treasury will have twice as much debt ten years from now as it does today. money Congress Exceeds its Credit Limit 14 April 2003    Texas Straight Talk 14 April 2003 verse 4 ... Cached The problem is very simple: Congress almost always spends more each year than the Treasury collects in revenues. Federal spending always goes up, but revenues are not so dependable, especially when the economy is bad. Since Congress spends more than the government makes, the federal government must either raise taxes, print more dollars to make debt payments, or borrow money. It’s happy to do all three, but they’re all bad for you- and the borrowing is bad for your grandchildren too. money Congress Exceeds its Credit Limit 14 April 2003    Texas Straight Talk 14 April 2003 verse 5 ... Cached Federal law limits the total amount of debt the Treasury can carry, and the limit- currently $6.4 trillion- has been reached. So Congress must vote to raise the limit, even though just a few short months ago it was raised from $5.9 trillion. The whole point of the debt ceiling law was to limit borrowing, to force Congress into an open and presumably somewhat shameful vote when it wants to borrow more than a preset amount of money. Yet since there have been no political consequences for members who vote to raise the debt limit and support the outrageous spending bills in the first place, the debt limit has become merely another technicality on the road to bankruptcy. Only public outrage, demonstrated by actually voting the big spenders out of office, can change the spending habits of the U.S. Congress. money So Much for Social Conservatism in Congress 05 May 2003    Texas Straight Talk 05 May 2003 verse 3 ... Cached Yet nothing could be further from the truth, as an embarrassing vote last week clearly demonstrated. The supposedly conservative Congress overwhelmingly passed a foreign aid bill that could have come straight from the desk of the most liberal Democrat. The legislation sends $15 billion of your tax dollars to Africa, ostensibly to fight AIDS by distributing condoms, providing sex education, and funding abortion providers. Needless to say the bill gives money to some very questionable organizations and programs, and will undoubtedly pad the bank accounts of some of the worst governments in the world. money So Much for Social Conservatism in Congress 05 May 2003    Texas Straight Talk 05 May 2003 verse 5 ... Cached Opposition to the bill was minimal, although 40 Republicans did cast principled votes against it. Other conservatives who were slightly uncomfortable with the vote satisfied themselves by passing an amendment that requires some of the $15 billion to be spent on abstinence programs. Yet does anyone honestly think we can control how our dollars are spent once they reach Africa? Obviously money is fungible anyway, so “earmarking” funds for pet conservative programs does nothing. Furthermore, Republican leaders completely ignored efforts in committee to forbid funding for abortion in the bill. money So Much for Social Conservatism in Congress 05 May 2003    Texas Straight Talk 05 May 2003 verse 6 ... Cached As a physician I am of course concerned about terrible diseases like AIDS, and have great sympathy for those who suffer from AIDS both here in America and around the world. But the question is not whether each and every one of us wants to eradicate AIDS. The question is whether yet another government program, especially one that sends money overseas, is a constitutionally proper or effective way to combat the problem. We certainly should have learned by now that good intentions alone can never justify a wasteful and ineffectual government program. money So Much for Social Conservatism in Congress 05 May 2003    Texas Straight Talk 05 May 2003 verse 7 ... Cached The United States has sent billions and billions of dollars overseas for decades to do fine-sounding things like “building democracy,” “fighting drugs,” and “ending poverty.” Yet decades later we are told that in every category these problems have actually gotten worse. Most of the money has disappeared into the bank accounts of dictators, or into salaries for well-paid consultants who administer our foreign aid; very little has changed in the impoverished nations themselves. Yet we refuse to learn from these mistakes, and now Congress has made another multi-billion dollar mistake with the AIDS bill. money The Phony Tax Cut Debate 12 May 2003    Texas Straight Talk 12 May 2003 verse 4 ... Cached Republicans argue that tax cuts will raise revenues by increasing economic activity, thus providing Congress with even more money to spend. It should hardly be the goal of conservatives to increase federal revenues! Real income tax cuts of 30 or 50 percent would reduce revenues, which is exactly what Congress needs to restrain its terrible spendthrift habits. Increased revenues or not, however, no one argues for serious cuts in spending. After all, the latest Bush budget spends 22% more than the last Clinton budget only three years ago. money The Phony Tax Cut Debate 12 May 2003    Texas Straight Talk 12 May 2003 verse 8 ... Cached · The money people earn is their own and they have a moral right to keep as much of it as possible. It does not belong to Congress. money The Federal Government Bully in State and Local Elections 26 May 2003    Texas Straight Talk 26 May 2003 verse 8 ... Cached The practice of allowing federal agencies to influence local elections certainly sets a dangerous precedent, and might lead to the labeling of “federally approved” candidates in both national and state elections. Exempting ONDCP from electioneering restrictions could be just the start. As one think tank director put it, “This would be like the IRS running ads against tax-cut proposals and the candidates that support them. Using public money to tell people how to think and feel about policy is the definition of propaganda.” money The Federal Debt Spiral 02 June 2003    Texas Straight Talk 02 June 2003 verse 4 ... Cached For perspective, this latest debt limit increase of nearly one trillion dollars is as large as the entire federal budget in 1985. The embarrassing increase was necessary because federal law limits the amount of debt the Treasury can carry, and the current $6.4 trillion limit had been reached. The federal government across the board has been spending money feverishly, at levels approximately 22% higher than just three years ago. This spending spree caused Congress to raise the debt limit from $5.9 trillion only six months ago, but the new limit was quickly reached. money Who Deserves a Tax Credit? 16 June 2003    Texas Straight Talk 16 June 2003 verse 2 ... Cached Congress passed a new child tax credit bill last week amid partisan controversy, clashes between the House and Senate chambers, and the usual class-warfare rhetoric. The debate raised uncomfortable questions about which Americans “deserve” a tax break, but the larger question- whether government deserves so much of our money- went unaddressed. money Declining Dollar, Declining Fortunes 23 June 2003    Texas Straight Talk 23 June 2003 verse 3 ... Cached Of course capitalism is based on the premise that centralized economic planning is bad. I’m always amazed that otherwise pro-market conservatives, who rightfully scorned disastrous Soviet economic policies, are so willing to accept centralized monetary planning by the Fed. True capitalism requires a free market for money and interest rates, just as surely as it requires a free market for wages and prices. money Declining Dollar, Declining Fortunes 23 June 2003    Texas Straight Talk 23 June 2003 verse 5 ... Cached Mr. Greenspan’s two greatest sins are easy to understand. First, he has wildly inflated the money supply by creating more than $5 trillion in new dollars since he became Fed chairman. Second, he has relentlessly cut interest rates below market levels. These actions make money too plentiful and too cheap. When dollars are abundant and the cost of borrowing is low, people and businesses spend money less carefully. The stock market bubble of the late 1990s is all the proof we need that Fed printing presses can create money, but not wealth. money Declining Dollar, Declining Fortunes 23 June 2003    Texas Straight Talk 23 June 2003 verse 6 ... Cached Because of Fed expansion of the money supply, the dollar has suffered a precipitous decline in the past year when measured against other world currencies. A Euro note worth only 89 cents shortly after its introduction is now worth about $1.16. Some consequences of this decline are obvious to the American public; a trip to Europe costs a lot more than it did a few years ago. But the long-term significance of this decline has not yet begun to sink in. Our relative wealth as a nation is measured in dollars, and the steady erosion of the value of those dollars means we will all be poorer in the future. money Declining Dollar, Declining Fortunes 23 June 2003    Texas Straight Talk 23 June 2003 verse 8 ... Cached Mr. Greenspan certainly basked in the glow of admiration during the 1990s, when money and credit seemed limitless. He was deemed a genius by both the financial press and a general public eager to let the good times roll. Even today, with the nation mired in the inevitable bust following the Fed’s artificially-created boom, his detractors are few. In fact, President Bush plans to offer Mr. Greenspan another term as Fed chief. If our economic woes continue, however, the nation someday may regret not taking a closer look at the Federal Reserve and its manipulation of our financial fortunes. money HillaryCare, Republican Style 30 June 2003    Texas Straight Talk 30 June 2003 verse 4 ... Cached In order to participate, seniors must choose between staying in traditional Medicare and joining an HMO/PPO organization. This means either a federal bureaucrat or a nominally private-sector bureaucrat will decide what drugs will be available. Both Medicare and HMO bureaucrats inevitably will be forced to control costs, because the demand for subsidized drugs will be unlimited. They will do so by rationing drugs, especially expensive drugs. Bureaucrats may even go so far as to forbid seniors from using their own money to buy Medicare-covered drugs, just as Medicare rules now prohibit use of private funds to buy unapproved health-care services. money Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 2 ... Cached During testimony before the House Financial Services committee last week, Federal Reserve Chairman Alan Greenspan indicated that he is prepared to maintain low interest rates for “as long as it takes” to energize the listless economy. Unfortunately, this will only prolong the painful economic consequences of his own easy money, easy credit policies. money Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 4 ... Cached The real measure of inflation is the increase in the money supply. Chairman Greenspan, through his relentless cutting of interest rates, has made it possible for banks to flood the worldwide economy with dollars. In fact the money supply, as measured by a figure economists call M3, has nearly doubled since 1996. money Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 5 ... Cached This increase in the money supply ultimately causes price inflation, despite the government’s claims. When the money supply rises quickly relative to a fixed amount of goods and services, prices always go up. In other words, more dollars chasing the same number of consumables results in higher prices. money Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 8 ... Cached Yet even as the Chairman warned about the supposed danger of deflation, he also discussed his view that rising natural gas prices pose a serious threat to the U.S. economy. There seems to be no coherent message coming from Mr. Greenspan: we’re warned about “irrational exuberance” even as the Fed cuts interest rates and wildly inflates the money supply; we’re told there is no inflation, yet housing prices skyrocket; we’re told that only our central bank planners have the wisdom to determine proper monetary policies, yet the Chairman himself seems to equivocate constantly and provide only the fuzziest answers to straightforward questions. money Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 9 ... Cached Centralized planning is as disastrous in monetary affairs as in economic affairs. Just as Russian commissars could not determine prices or production levels in the absence of a free market, the Federal Reserve Board cannot determine the “proper” level for interest rates or the money supply. Our fiat currency and artificially low interest rates can only result in the deterioration of the U.S. dollar through inflation, which in the end will cause interest rates to rise no matter what the Fed says or does. Older Americans especially stand to suffer most from Mr. Greenspan’s easy money policies. money The Terrible Cost of Government 28 July 2003    Texas Straight Talk 28 July 2003 verse 3 ... Cached The good news for Americans is that the Cost of Government day is finally behind us for the year. The bad news is that the day keeps falling later and later, in fact 17 days later than 2000. This is due largely to the rapid growth in federal spending in recent years. This relentless growth has increased the burden of government faster than national income has risen. The result is that taxpayers are left with less money to spend, save, or invest, while the legitimate private economy staggers under the weight of a growing federal leviathan. money The Terrible Cost of Government 28 July 2003    Texas Straight Talk 28 July 2003 verse 6 ... Cached Of course both Congress and a succession of presidents are responsible for the spending mess. The president can set a tone for fiscal restraint or indulgence, and can veto spending bills if he has the political will to do so. Congress, however, actually crafts the laughable federal “budget” and appropriates the money, so the ultimate blame for spending increases must be accorded members of the House and Senate. It’s easy to talk about smaller government, but few actually vote against the 13 annual appropriations bills that fund so many wasteful and unconstitutional departments, agencies, and programs. There are simply too many special interests counting on the money contained in the appropriations bills, and those same interests will take their campaign contributions elsewhere if a congressman fails to play the game. money The Terrible Cost of Government 28 July 2003    Texas Straight Talk 28 July 2003 verse 7 ... Cached The American people are also responsible for the growth in government, however. We have allowed our constitutional republic to deteriorate into a virtually unchecked direct democracy. Today’s political process is nothing more than a street fight between various groups seeking to vote themselves other people’s money. Individual voters tend to support the candidate that promises them the most federal loot in whatever form, rather than the candidate who will uphold the rule of law. As the brilliant writer and professor Thomas Sowell said, “If you have been voting for politicians who promise to give you goodies at someone else's expense, then you have no right to complain when they take your money and give it to someone else, including themselves.” money Trust Us, We're the Government 25 August 2003    Texas Straight Talk 25 August 2003 verse 4 ... Cached Furthermore, Mr. Ashcroft is an administrator, not a legislator. It is not his job to write laws or say what the law should be. His job is to execute the laws passed by Congress. It is not his place to chide Congress or the American people for not supporting his viewpoint. He certainly should not be spending taxpayer money to lobby for his political positions. money Can We Afford to Occupy Iraq? 01 September 2003    Texas Straight Talk 01 September 2003 verse 3 ... Cached We should not expect any international coalition to help us pay the bills for occupying Iraq, however. American taxpayers alone will bear the tremendous financial burden of nation building in Iraq. We are already spending about 5 billion dollars in Iraq every month, a number likely to increase as the ongoing instability makes it clear that more troops and aid are needed. We will certainly spend far more than the 65 billion dollars originally called for by the administration to prosecute the war. The possibility of spending hundreds of billions in Iraq over several years is very real. This is money we simply don’t have, as evidenced by the government’s deficit spending- borrowing- to finance the campaigns in Afghanistan and Iraq to date. money Can We Afford to Occupy Iraq? 01 September 2003    Texas Straight Talk 01 September 2003 verse 4 ... Cached It’s easy for politicians to say, “We will spend whatever it takes to rebuild Iraq,” but it’s not their money. Occupying Iraq is not a matter of noble national resolve like World War II. The cost of restoring order will be enormous, and we need to carefully weigh the supposed benefits and ask ourselves exactly what we hope to get for our money. I doubt many Americans believe Iraq is worth bankrupting our nation or saddling future generations with billions more in debt. money The Tyranny of Paper Money 08 September 2003    Texas Straight Talk 08 September 2003 verse 1 ... Cached The Tyranny of Paper Money money The Tyranny of Paper Money 08 September 2003    Texas Straight Talk 08 September 2003 verse 3 ... Cached Mr. Greenspan once understood that a fiat money system represents nothing more than a sinister and evil form of hidden taxation. When the government can print money at will, it’s morally identical to the counterfeiter who illegally prints currency. Fiat money polices especially hurt savers and those on fixed incomes, who find the value of their dollars steadily eroded by the Fed’s printing presses. money The Tyranny of Paper Money 08 September 2003    Texas Straight Talk 08 September 2003 verse 4 ... Cached We need to understand why a fiat system is so popular with economists, the business community, bankers, and government officials. One explanation is that a fiat monetary system allows power and influence to fall into the hands of those who control the creation of new money, and to those who get to use the money or credit early in its circulation. The insidious and eventual cost falls on unidentified victims, who are usually oblivious to the cause of their plight. money The Tyranny of Paper Money 08 September 2003    Texas Straight Talk 08 September 2003 verse 6 ... Cached Most Americans are oblivious to the entire issue of monetary policy. We all deal with the consequences of our fiat money system, however. Every dollar created dilutes the value of existing dollars in circulation. Those individuals who worked hard, paid their taxes, and saved some money for a rainy day are hit the hardest. Their dollars depreciate in value while earning interest that is kept artificially low by the Federal Reserve easy-credit policy. The poor and those dependent on fixed incomes can’t keep up with the rising cost of living. money The Tyranny of Paper Money 08 September 2003    Texas Straight Talk 08 September 2003 verse 7 ... Cached We do hear some minor criticism directed toward the Federal Reserve, but the validity of the fiat system is never challenged. Both political parties want the Fed to print more money, either to support social spending or military adventurism. Politicians want the printing presses to run faster and create more credit, so that the economy will be healed like magic- or so they believe. money The Tyranny of Paper Money 08 September 2003    Texas Straight Talk 08 September 2003 verse 8 ... Cached Fiat dollars allow us to live beyond our means, but only for so long. History shows that when the destruction of monetary value becomes rampant, nearly everyone suffers and the economic and political structure becomes unstable. Spendthrift politicians may love a system that generates more and more money for their special interest projects, but the rest of us have good reason to be concerned about our monetary system and the future value of our dollars. money War and Red Ink 15 September 2003    Texas Straight Talk 15 September 2003 verse 3 ... Cached Even the White House concedes this spending will swell the single-year budget deficit to a record $525 billion. This is money the Treasury simply does not have, which means it must be borrowed, printed, or raised through taxes. None of these options are good for the American economy. It is especially sobering to consider just how much we eventually might spend in Iraq given our open-ended mission to rebuild it. A decade in Iraq easily could cost American taxpayers one trillion dollars and cause endless budget deficits. money War and Red Ink 15 September 2003    Texas Straight Talk 15 September 2003 verse 4 ... Cached The question we might ask ourselves is this: What if our efforts to rebuild Iraq and install a democratic government do not work? Are we prepared to spend less on domestic programs like Social Security, welfare, and education? Are we prepared to raise taxes? Can we continue to borrow money abroad? Of course Americans are always prepared to make hard choices and sacrifice for causes in which they truly believe, but the stark economic realities of occupying Iraq have not been fairly presented. money Your Money in Iraq 29 September 2003    Texas Straight Talk 29 September 2003 verse 1 ... Cached Your Money In Iraq money Your Money in Iraq 29 September 2003    Texas Straight Talk 29 September 2003 verse 3 ... Cached The stark reality is that the federal government will fund the open-ended occupation of Iraq either by raising taxes, borrowing overseas, or printing more money. All three options are bad for average Americans. money Your Money in Iraq 29 September 2003    Texas Straight Talk 29 September 2003 verse 16 ... Cached Criticism of this foreign aid spending in Iraq is not restricted to the political left. Conservative groups and politicians are increasingly angry at the administration’s exorbitant spending. For example, Congressman Zach Wamp of Tennessee sits on the Appropriations committee, which is responsible for all spending bills. He has a modest idea: insist the reconstruction money be paid back as a loan when Iraq’s huge oil reserves resume operation. Similarly, Congressman Jeff Flake of Arizona wants to offset every dollar spent reconstructing Iraq with spending cuts in others areas, especially given the amount of wasteful pork in the federal budget. But the White House is adamantly opposed to both ideas. Why is a supposedly conservative administration resisting even the slightest attempts at fiscal restraint? money Your Money in Iraq 29 September 2003    Texas Straight Talk 29 September 2003 verse 17 ... Cached We have embarked on probably the most extensive nation-building experiment in history. Our provisional authority seeks nothing less than to rebuild Iraq’s judicial system, financial system, legal system, transportation system, and political system from the top down- all with hundreds of billion of US tax dollars. We will all pay to provide job-training for Iraqis, while more and more Americans find themselves out of work. We will pay to secure the Iraqi borders, while our own borders remain porous and vulnerable. We will pay for housing, health care, social services, utilities, roads, schools, jails, and food in Iraq, leaving American taxpayers with less money to provide these things for themselves at home. We will saddle future generations with billions in government debt. The question of whether Iraq is worth this much to us is one lawmakers should answer now by refusing to approve another nickel for nation building. money Lessons from the California Recall 13 October 2003    Texas Straight Talk 13 October 2003 verse 4 ... Cached If the scenario on the west coast seems familiar, it’s because we’ve seen it before in Washington. Congress spends far too much regardless of revenues. The fundamental difference is that the State of California, unlike the federal government, cannot simply print money to pay its obligations. It has only two choices when spending outpaces revenues: borrow money or raise taxes. With its bond and credit ratings floundering, borrowing is a difficult and expensive venture. Taxpayers in the state already pay some of the highest taxes in the nation, so tax hikes are politically unpopular. Faced with this dilemma, California lawmakers did nothing, hoping to keep the treasury afloat until tax revenues rebounded. But the economic turnaround never happened, so California faces a crisis here and now. Somebody had to pay, and Gray Davis was the most visible symbol of an irresponsible government. money Lessons from the California Recall 13 October 2003    Texas Straight Talk 13 October 2003 verse 5 ... Cached Federal politicians, however, can use government printing presses to sweep economic problems under the rug and hide the effects of deficit spending- at least for a time. Our fiat monetary system permits politicians to spend money now to win votes and fund popular programs, while delaying the harms until later. When the federal government monetizes debt by magically paying its bills with newly printed money, the economic effects are diffused throughout the economy. Over time, however, we all pay for the increased number of dollars in circulation. Prices go up, personal savings are eroded, and the dollar becomes weaker against other currencies. money $20 Billion Giveaway Unjustified 20 October 2003    Texas Straight Talk 20 October 2003 verse 2 ... Cached Congress passed an $87 billion spending bill last week to fund our occupation of Iraq, $20 billion of which is an outright foreign aid giveaway of your money for all kinds of civic and social programs there. This $20 billion was tied to money for troop support, so that members of Congress who object to wasteful and unconstitutional foreign aid would feel compelled to vote in favor of the bill. This new spending comes on top of the $80 billion we have already spent in Iraq, and the price tag easily could reach one trillion dollars if our occupation drags on for several years. money $20 Billion Giveaway Unjustified 20 October 2003    Texas Straight Talk 20 October 2003 verse 3 ... Cached First and foremost, we simply do not have the $87 billion to spend. The federal government literally will have to borrow or print the money needed for our ongoing occupation of Iraq. This new spending will only add to the record budget deficit of $525 billion projected for 2004. At this rate, the Treasury will face single-year deficits of one trillion dollars by the end of the decade. money $20 Billion Giveaway Unjustified 20 October 2003    Texas Straight Talk 20 October 2003 verse 4 ... Cached Second, every attempt to make portions of the $87 billion a loan was defeated. Several House members argued that providing money for American troops is one thing, a naked foreign aid giveaway another. After all, Iraq has trillions of dollars worth of oil reserves. Why should future generations of Americans, rather than future generations of Iraqis, pay the bills for creating a new Iraq? If we really believe we have liberated the Iraqis, surely they should be asked to repay some of the financial costs. Yet both the House leadership and the administration vehemently insisted that the full amount be provided as a gift, courtesy of U.S. taxpayers. money $20 Billion Giveaway Unjustified 20 October 2003    Texas Straight Talk 20 October 2003 verse 7 ... Cached This is sound thinking and sound advice by the elder Mr. Bush. Had Congress heeded his words, we would not be voting to spend even more money nation building in Iraq. money The Appropriations Process 27 October 2003    Texas Straight Talk 27 October 2003 verse 4 ... Cached Every fall Congress goes through what is known in Washington as the “appropriations process.” The term really is inaccurate, as it should be called the spending process. After all, your money has already been appropriated, which is to say taken, through taxes. Once taken, Congress spends the autumn months doing what it does best: spending money. money The Appropriations Process 27 October 2003    Texas Straight Talk 27 October 2003 verse 5 ... Cached Congress passes 13 huge appropriations bills each year, along with a 14th known generously as the “supplemental” bill. These bills fund a vast array of federal departments, agencies, and programs, including more than a trillion dollars worth of entitlements. Each bill is stuffed with hundreds of pages of goodies for countless favored groups, industries, individual companies, and foreign governments. It’s common for dozens or hundreds of amendments to be added to each bill, always with more money for somebody. money The Appropriations Process 27 October 2003    Texas Straight Talk 27 October 2003 verse 12 ... Cached Most Americans think the federal government is too large, spends too much money, and spends it badly. Even the most ardent liberals admit there is a tremendous amount of waste in government. But Congress clearly does not agree, because it relentlessly spends more and more each year. American taxpayers, therefore, have two basic options: start voting the big spenders out of office, or slowly submit to democratic socialism courtesy of a government that soon will devour 50% of the nation’s productive output. money Economic Woes Begin at Home 03 November 2003    Texas Straight Talk 03 November 2003 verse 4 ... Cached China exports many products into the United States, which makes her a convenient scapegoat for our economic problems. Demanding that China adjust its currency valuation is merely a distraction from addressing the real economic dilemmas facing our country, however. Congress should be focused on our own disastrous monetary policies. As long as the Fed can print money at will and set interest rates, the value of our dollars will be subject to the whims of politicians and the perceived economic needs of politically powerful special interests. money Mistreating Soldiers and Veterans 10 November 2003    Texas Straight Talk 10 November 2003 verse 2 ... Cached Congress recently voted to send $87 billion to Iraq, money that will be used to build everything from roads to power plants to hospitals. Yet while Congress appears ready to rubber-stamp unlimited monies for nation building in Iraq, thousands of our own soldiers at home are languishing with substandard medical care. money GOP Abandons Conservatives 01 December 2003    Texas Straight Talk 01 December 2003 verse 5 ... Cached Columnists have coined the phrase “Big-Government Republicans” to describe the current crop of free spenders now controlling the White House, Senate, and House of Representatives. Many of the president’s closest advisors are Big-Government Republicans, former leftists who have no qualms about spending huge amounts of money both at home and abroad to achieve supposedly conservative ends. money The Disappearing Dollar 08 December 2003    Texas Straight Talk 08 December 2003 verse 3 ... Cached The inescapable truth is that the value of the U.S. dollar has fallen over 30% in the past year, which to most people would not seem indicative of strength. There are several reasons for this decline, but the single biggest factor has been Mr. Greenspan’s relentless increase of the money supply. There are roughly sixteen trillion dollars in worldwide use today, five trillion more than when Greenspan became Fed chair. The law of supply is immutable: When dollars are abundant they are also cheap. money The Disappearing Dollar 08 December 2003    Texas Straight Talk 08 December 2003 verse 4 ... Cached For much of our history a gold standard imposed discipline on U.S. dollar policy, since every dollar printed theoretically was redeemable in gold. Since the last links between the dollar and gold were severed in 1971, the dollar essentially has operated as an article of faith. Christopher Mayer, writing for the Ludwig von Mises Institute, states: “Faith that paper money itself was of any lasting value would have struck our forebears as patently absurd.” money The Disappearing Dollar 08 December 2003    Texas Straight Talk 08 December 2003 verse 7 ... Cached Unlike Warren Buffett, most Americans are stuck with their U.S. dollars. Average people, particularly those who depend on savings or fixed incomes to fund their retirement years, cannot abide the continued devaluation of our currency. A true strong-dollar policy would require constriction of the money supply and higher interest rates, both of which would cause some short-term pain for the American economy. In the long run, however, such a correction is the only alternative to the continued erosion of our dollars. money Elusive Peace in the Middle East 15 December 2003    Texas Straight Talk 15 December 2003 verse 3 ... Cached One thing is certain: U.S. involvement in the deadly conflict has led nowhere. The federal government has spent tens of billions of U.S. tax dollars in the region, and a succession of presidents have held peace summits with Middle Eastern leaders, all to no avail. The endless supply of American money, however well-intentioned, gives the leaders of both sides a perverse incentive to remain engaged in the process indefinitely. money "Campaign Finance Reform" Muzzles Political Dissent 22 December 2003    Texas Straight Talk 22 December 2003 verse 5 ... Cached Second, freedom of the press applies equally to all Americans, not just the institutional, government-approved media. An unknown internet blogger, a political party, a candidate, and the New York Times should all enjoy the same right to political speech. Yet McCain-Feingold treats the mainstream press as some kind of sacred institution rather than the for-profit industry it is. Why should giant media companies be able to spend unlimited amounts of money to promote candidates and issues, while an organization you support cannot? The notion of creating a preferred class of media, with special First Amendment rights, is distinctly elitist and un-American. money "Campaign Finance Reform" Muzzles Political Dissent 22 December 2003    Texas Straight Talk 22 December 2003 verse 7 ... Cached Wealthy people will always seek to influence politicians, because government unfortunately plays a very big role in determining who gets (and stays) rich in our country. Our federal government has become a taxing, spending, and regulating leviathan that virtually controls the economy. Having rejected the notion of limited, constitutional government, we can hardly be surprised when special interests use corrupting campaign money to influence the process! We need to get money out of government; only then will money not be important in politics. Big government and big campaign money go hand-in-hand. money Government and Marriage 19 January 2004    Texas Straight Talk 19 January 2004 verse 7 ... Cached Government is not morality, government is force- and forcing taxpayers to fund another silly program will not strengthen the institution of marriage. If Mr. Bush really wants to promote marriage, he should work to dismantle the soul-destroying welfare system that rewards out-of-wedlock births. He should work to end the judicial assault on religious liberty. He should urge Congress to cut spending and taxes, so that more money can flow into churches and private charities. The president certainly is correct that marriage is important, and the need for stable, two-parent families is apparent. We should all be quite skeptical, however, of claims that government programs can fix the deep-rooted cultural problems responsible for the decline of the American family. money Spending and Lying 02 February 2004    Texas Straight Talk 02 February 2004 verse 8 ... Cached Government is incapable of austerity measures for a very simple reason: the money it spends belongs to others. Unless and until federal politicians are voted out of office for their sins, we can only expect the spending, borrowing, taxing, and printing of fiat money to continue. money Greenspan's Black Magic 23 February 2004    Texas Straight Talk 23 February 2004 verse 2 ... Cached In testimony before the House Financial Services Committee last week, Federal Reserve Chairman Alan Greenspan painted a rosy picture of the U.S. economy. In his eyes, the Fed’s aggressive expansion of the money supply and suppression of interest rates have strengthened the financial condition of American households and industries. If this is true, however, our nation’s "prosperity" is merely a temporary illusion based on smoke and mirrors. True wealth cannot be created simply by printing money; families and businesses cannot prosper by getting deeper in debt. money Greenspan's Black Magic 23 February 2004    Texas Straight Talk 23 February 2004 verse 6 ... Cached Debt is the fundamental problem the central planners at the Fed will not address. The total U.S. federal debt is more than $7 trillion, and government spending as a percentage of gross domestic product has never been higher except during World War II. Mr. Greenspan’s attempts to stimulate economic growth by printing money become more and more tenuous: today the Fed must create nearly $7 of new debt in the form of new fiat currency to generate only $1 of new GDP. Twenty years ago the figure was less than $1.50. Clearly this is a race that has run its course. money Greenspan's Black Magic 23 February 2004    Texas Straight Talk 23 February 2004 verse 7 ... Cached As financial analyst Jay Taylor explains, the disturbing increase in the debt to GDP ratio illustrates that printing more money is the only solution federal policy makers know. Federal debt naturally grows faster than income-- while there are no limits to how fast the printing presses can run, there are natural limits to economic growth. money Greenspan's Black Magic 23 February 2004    Texas Straight Talk 23 February 2004 verse 8 ... Cached The end may come when foreign central banks realize the dollars they receive are worthless, or when they find other places to turn for income. When that day comes, interest rates will rise, perhaps dramatically. At that point not even Mr. Greenspan will be able to save the economy from the painful correction necessitated by his easy credit, easy money policies. money Inflation- Alive and Well 08 March 2004    Texas Straight Talk 08 March 2004 verse 2 ... Cached For years, the central planners at the Federal Reserve have assured us that inflation is dormant, if not dead. Federal Reserve Governor Ben Bernanke, during a recent speech in Washington, took pains to emphasize that inflation is “Under very good control.” But considering the relentless increase in the money supply engineered by the Fed over the last decade, one wonders whether Mr. Bernanke, Chairman Greenspan, and company protest too much. money Inflation- Alive and Well 08 March 2004    Texas Straight Talk 08 March 2004 verse 3 ... Cached Austrian- school economists demonstrate that true inflation is monetary inflation. True inflation therefore can be measured by an increase in the money supply. Mr. Greenspan and Fed policy makers have more than doubled the M3 money supply in less than ten years. While Treasury printing presses can print unlimited dollars, there are natural limits to economic growth. This flood of newly minted US currency can only increase consumer prices in the long term, as more and more dollars chase available goods and services. money Inflation- Alive and Well 08 March 2004    Texas Straight Talk 08 March 2004 verse 5 ... Cached “The Federal Reserve always promises that it’s working to bring down inflation, but as Murray N. Rothbard shows in The Case Against the Fed, it never does. Since the Fed came into being, the dollar’s value has plummeted to less than a penny, and even at a 3% inflation rate, prices will tend to double every 25 years… The Fed wants to cover its crimes by appearing more successful at ‘battling inflation.’ What the Fed doesn’t want to talk about is the real cause of inflation: not greedy consumers, avaricious workers, or price-gouging corporations, but the central bank itself, and its power and practice of creating money out of thin air.” money March (Budget) Madness 29 March 2004    Texas Straight Talk 29 March 2004 verse 3 ... Cached Neither political party wants to address the fundamental yet unspoken issue lurking beneath any budget debate: What is the proper role for government in our society? Are these ever-growing social services and military expenditures really proper in a free country? We need to understand that the more government spends, the more freedom is lost. Instead of simply debating spending levels, we ought to be debating whether the departments, agencies, and programs funded by the budget should exist at all. My Republican colleagues especially ought to know this. Unfortunately, however, the GOP has decided to abandon principle and pander to the entitlements crowd. But this approach will backfire, because Democrats always offer to spend even more than Republicans. When congressional Republicans offer to spend $500 billion on Medicare, Democrats will offer $600 billion, and why not? It’s all funny money anyway, and it helps them get reelected. money The Federal Reserve Debt Engine 26 April 2004    Texas Straight Talk 26 April 2004 verse 4 ... Cached Judging by Mr. Greenspan’s statements to a Senate committee in February, Fed economists are confusing debt with wealth. Mr. Greenspan praises the “sustained expansion of the US economy,” but then goes on to highlight the real reason for the expansion: loose monetary policy and near-zero interest rates. Since Fed bankers set interest rates artificially low, the cost of borrowing money is very cheap. This leads to more and more consumer spending, which Mr. Greenspan touts as the driving force for economic growth. money The Federal Reserve Debt Engine 26 April 2004    Texas Straight Talk 26 April 2004 verse 6 ... Cached During past recessions, many Americans shed debt either through bankruptcy or through austerity measures. In other words, they either changed their spending and borrowing habits or went broke. At some point their debts were in essence cleared from the books. In the recent recession of 2000-2002, however, many cash-strapped households managed to stay ahead of creditors by borrowing even more money. This is directly attributable to Fed easy-money policies, which greatly expanded the money supply and caused banks to lower creditworthiness standards. As a result, many Americans are overextended rather than bankrupt. Someday, however, they simply won’t be able to borrow another dime. All the Fed has done is make the bubble bigger and postpone the day of reckoning. This hardly makes for a strong economy, which must be based on savings and investment. money The Federal Reserve Debt Engine 26 April 2004    Texas Straight Talk 26 April 2004 verse 7 ... Cached It’s not enough to question the wisdom of Mr. Greenspan. Americans should question why we have a central bank at all, and whose interests it serves. The laws of supply and demand work better than any central banker to determine both the correct supply of money in the economy and the interest rate at which capital is available- without the political favoritism and secrecy that characterize central banks. Americans should not tolerate the manipulation of our economy and the inflation of our currency by an unaccountable institution. money Free Market Medicine 03 May 2004    Texas Straight Talk 03 May 2004 verse 8 ... Cached We can hardly expect more government to cure our current health care woes. As with all goods and services, medical care is best delivered by the free market, with competition and financial incentives keeping costs down. When patients spend their own money for health care, they have a direct incentive to negotiate lower costs with their doctor. When government controls health care, all cost incentives are lost. Dr. Berry and others like him may one day be seen as consumer heroes who challenged the third-party health care system and resisted the trend toward socialized medicine in America. money The Great Foreign Aid Swindle 24 May 2004    Texas Straight Talk 24 May 2004 verse 3 ... Cached The very name- Millennium Challenge Act- is highly insulting. It sounds like a PBS fundraising slogan or car company sales pitch. It’s like calling an old used car a classic or an antique. Foreign aid welfare is still foreign aid welfare, no matter what jingoistic name is applied. There is nothing new or noble about it. The Millennium Challenge Act is just another shabby federal program that takes your money and gives it to somebody else. money The Great Foreign Aid Swindle 24 May 2004    Texas Straight Talk 24 May 2004 verse 5 ... Cached In many cases, foreign aid money simply distorts foreign economies and props up bad governments. In countries that pursue harmful economic policies, an infusion of US cash only exacerbates and prolongs problems. No amount of money can help nations that reject property rights, free markets, and the rule of law. money The Great Foreign Aid Swindle 24 May 2004    Texas Straight Talk 24 May 2004 verse 6 ... Cached In developing countries that pursue sound economic policies, foreign aid money is not needed- the international financial markets will provide the investment capital necessary for economic growth. This capital will be invested according to sound investment strategies - designed to make a profit - rather than allocated according to the whims of government bureaucrats. money The Great Foreign Aid Swindle 24 May 2004    Texas Straight Talk 24 May 2004 verse 7 ... Cached Foreign aid encourages socialism and statism. Because it is entirely geared toward foreign governments, it mandates economically devastating “public-private partnerships” in developing nations. If the private sector wants to see any of the money, it must be in partnership with government. Who knows how much of this money is wasted on those companies with the best political connections to the foreign governments in power? Foreign aid invites political corruption by creating a slush fund under the control of foreign governments. money Superpower or Superdebtor? 07 June 2004    Texas Straight Talk 07 June 2004 verse 5 ... Cached The day is fast approaching when we no longer will be able to afford this burden. For now foreign governments are willing to loan us the money needed to finance our current account deficit, and indirectly the cost of our worldwide military operations. But economic law eventually will limit our ability to live off others by credit creation. Eventually trust in the dollar will be diminished, if not destroyed. At that point it will become painfully obvious to even the most strident supporter of our interventionist foreign policy that the super-power has become a super-debtor, its power and influence greatly diminished, and its people much poorer and more vulnerable. money Zero Down for the American Dream 21 June 2004    Texas Straight Talk 21 June 2004 verse 5 ... Cached Every mortgage banker knows that even a modest downpayment greatly increases the likelihood that a buyer will pay his mortgage as promised. A buyer who has consistently saved money for a down payment is by definition a better credit risk, and it’s harder to walk away from an obligation if it means losing a sizable amount of hard-earned money. A downpayment measures a buyer’s willingness and ability to make sacrifices in order to reach a goal and improve his standard of living. Banks used to recognize hard work and thrift as indicators of creditworthiness, and in a free market would demand a significant down payment for virtually all homebuyers. money Why Can't Congress Stop Spending? 28 June 2004    Texas Straight Talk 28 June 2004 verse 8 ... Cached “No amount of legislation will instill in a majority of the members of the House the ingredient, the element that has been missing. That is fiscal responsibility. Every Member knows that he or she cannot for long spend $75,000 a year on a salary of $42,000 and remain solvent. Every member knows this government cannot forever spend billions beyond tax revenue and endure. Congress already has the tools to halt the headlong flight into bankruptcy. It holds the purse strings. No President can impound funds or spend unwisely unless an improvident, reckless Congress makes available the money. I repeat, neither this nor any other legislation will provide morality and responsibility on the part of members of Congress.” money Saving the World with Your Money 19 July 2004    Texas Straight Talk 19 July 2004 verse 1 ... Cached Saving the World with Your Money money Saving the World with Your Money 19 July 2004    Texas Straight Talk 19 July 2004 verse 3 ... Cached Since American foreign aid programs began in earnest decades ago, tens of billions of US tax dollars have been given to nations around the globe. The utter failure of this money to change things for the better in those nations is no longer in question; even the most earnest liberals are beginning to admit the obvious. Most of the recipient nations remain endlessly mired in poverty, political and legal corruption, and cultural malaise. money Saving the World with Your Money 19 July 2004    Texas Straight Talk 19 July 2004 verse 4 ... Cached A rational person would argue that failed aid programs should be eliminated. In Washington, however, failed programs get more money thrown at them. money Saving the World with Your Money 19 July 2004    Texas Straight Talk 19 July 2004 verse 6 ... Cached The proponents of the Millennium Challenge Act tell us this time it will be different. If only we condition foreign aid money on the adoption of certain policies, the recipient nations will clean up their acts. Market economies and democratic political reforms surely will follow, if only American taxpayers provide a little seed money. money Saving the World with Your Money 19 July 2004    Texas Straight Talk 19 July 2004 verse 8 ... Cached The question nobody in Washington wants to answer is this: What gives the Congress the right to send American tax dollars overseas in the first place? Certainly not the Constitution. Why should American taxpayers, many of whom are poor themselves, be expected to fund foreign welfare? Remember that the poorest Americans are hardest hit by the inflation tax, which is the direct result of deficit spending and the printing of new money to service federal debts. money Saving the World with Your Money 19 July 2004    Texas Straight Talk 19 July 2004 verse 9 ... Cached Congress hardly needs to concoct another way to spend money. Government debt already exceeds seven trillion dollars, and runaway spending will force yet another increase in the federal debt ceiling law before the end of the year. At its current pace, Congress soon will create single-year deficits of one trillion dollars. Combine this indebtedness with future liabilities- in the form of exploding Social Security and Medicare obligations- and it’s clear that Congress can find better things to do with $2.5 billion than send it overseas. money Saving the World with Your Money 19 July 2004    Texas Straight Talk 19 July 2004 verse 10 ... Cached My very modest proposal is this: eliminate the Millennium Challenge Act, apply half the money to the national debt, and spend the rest domestically if Congress simply can’t bear to give it back to taxpayers. Even the worst domestic program is better than useless and meddlesome foreign aid. money Useless Conventions 02 August 2004    Texas Straight Talk 02 August 2004 verse 2 ... Cached Not all Americans know their taxes fund both the Democratic and Republican presidential conventions. In fact, the political parties receive nearly $15 million apiece from the Federal Election Committee to hold their conventions. Checking the little box on your 1040 form to give one dollar to the parties changes nothing, as the convention money comes from general revenues whether you check the box or not. money Useless Conventions 02 August 2004    Texas Straight Talk 02 August 2004 verse 5 ... Cached Potential candidates find they cannot wage effective campaigns without major party fundraising help, but such help comes with strings attached. Once a candidate receives money, he is expected to closely parrot party positions on issues. Once elected, he is expected to put the party ahead of principle when it comes to voting and procedural matters. The result is bland candidates who offer nothing but the same old tired statist ideas. money Useless Conventions 02 August 2004    Texas Straight Talk 02 August 2004 verse 8 ... Cached For those who believe in limited constitutional government, last week’s convention speeches were almost unbearable. One speaker after another extolled their benevolent plans for America, always in the form of new programs and new spending. Of course no convention would be complete without assurances that even more money will be spent on the failed federal education bureaucracy. The speakers also promised free health care for all, without the slightest explanation of how health care became a “right.” All of these promises were made, of course, without any mention of exactly what constitutional or moral authority authorizes such grand schemes. money Police State USA 09 August 2004    Texas Straight Talk 09 August 2004 verse 7 ... Cached Every new security measure represents another failure of the once-courageous American spirit. The more we change our lives, the more we obsess about terrorism, the more the terrorists have won. As commentator Lew Rockwell of the Ludwig von Mises Institute explains, terrorists in effect have been elevated by our response to 9-11: “They are running the country. They determine our civic life. They shape our private life. They decide how public resources are spent. They may dictate who gets to be the next president. It should be obvious that the government doesn’t object. Not at all. The government benefits, by getting ever more reason for ever more money and power.” money Election Monitoring- Insulting yet Inevitable 16 August 2004    Texas Straight Talk 16 August 2004 verse 10 ... Cached We send more than 25 million dollars to the OSCE each year, financing almost ten percent of the organization’s budget. It is time to end this waste of money. We need to end our membership and participation in the OSCE immediately. When we undermine the sovereignty of other nations we undermine our own sovereignty as well. money The 9-11 Commission Charade 23 August 2004    Texas Straight Talk 23 August 2004 verse 5 ... Cached The Commissioners recommend the government spend billions of dollars spreading pro-US propaganda overseas, as if that will convince the world to love us. What we have forgotten in the years since the end of the Cold War is that actions speak louder than words. The US didn't need propaganda in the captive nations of Eastern Europe during the Cold War because people knew us by our deeds. They could see the difference between the United States and their Soviet overlords. That is why, given the first chance, they chose freedom. Yet everything we have done in response to the 9-11 attacks, from the Patriot Act to the war in Iraq, has reduced freedom in America. Spending more money abroad or restricting liberties at home will do nothing to deter terrorists, yet this is exactly what the 9-11 Commission recommends. money The 9-11 Commission Charade 23 August 2004    Texas Straight Talk 23 August 2004 verse 6 ... Cached Our nation will be safer only when government does less, not more. Rather than asking ourselves what Congress or the president should be doing about terrorism, we ought to ask what government should stop doing. It should stop spending trillions of dollars on unconstitutional programs that detract from basic government functions like national defense and border security. It should stop meddling in the internal affairs of foreign nations, but instead demonstrate by example the superiority of freedom, capitalism, and an open society. It should stop engaging in nation-building, and stop trying to create democratic societies through military force. It should stop militarizing future enemies, as we did by supplying money and weapons to characters like Bin Laden and Saddam Hussein. It should stop entangling the American people in unholy alliances like the UN and NATO, and pledge that our armed forces will never serve under foreign command. It should stop committing American troops to useless, expensive, and troublesome assignments overseas, and instead commit the Department of Defense to actually defending America. It should stop interfering with the 2nd amendment rights of private citizens and businesses seeking to defend themselves. money A Texas Platform for the GOP 30 August 2004    Texas Straight Talk 30 August 2004 verse 5 ... Cached The Texas GOP platform also calls for a congressional audit of the Federal Reserve Bank, and demands full public access to the written minutes from Fed board meetings. Such an audit could at the very least serve to educate the American people about Fed inflation and the dangers of fiat currency. In Washington, the Federal Reserve system is virtually never discussed by Congress or the administration, despite its enormous impact on our economic well-being. Monetary policy is simply off the table as a political and policy matter for both national parties, but the Texas GOP recognizes the importance of sound money. money Mental Health Screening for Kids- Part II 20 September 2004    Texas Straight Talk 20 September 2004 verse 6 ... Cached Furthermore, it’s not true that no money has been allocated for the proposal. The Appropriations committee, which distributes your tax dollars to the various federal agencies, specifically allotted $20 million in the HHS/Education bill for state programs in support of the New Freedom commission report. These federally-funded state programs will be the precursors of the broader federal program recommended by the commission. money The IMF Con 27 September 2004    Texas Straight Talk 27 September 2004 verse 3 ... Cached You won’t hear either presidential candidate say much about the issue of foreign aid during this election season, despite the record levels of federal spending and debt that plague our economy. Very few Americans realize the extent to which Congress sends billions of their tax dollars overseas to fund the most counterproductive foreign welfare schemes imaginable, always in the guise of helping the poor. A recent report by the congressional Joint Economic Committee on which I serve highlights the reckless manner in which one organization, the International Monetary Fund, wastes your money around the world. money The IMF Con 27 September 2004    Texas Straight Talk 27 September 2004 verse 6 ... Cached In fact, IMF loans often do far more harm than good. At best IMF borrowers are governments of countries with little economic productivity; at worst the money ends up in the hands of corrupt dictators. Either way, most recipient nations face huge debts they cannot service, which only adds to their poverty and instability. IMF money ultimately corrupts those countries it purports to help, by keeping afloat reckless political institutions that destroy their own economies. money The IMF Con 27 September 2004    Texas Straight Talk 27 September 2004 verse 9 ... Cached The IMF and other complex schemes only serve to obscure the real issue: Why should US taxpayers be forced to send money abroad? Certainly the Constitution provides no authority for foreign aid. In historical and practical terms, redistribution of wealth from rich to poor nations has done little or nothing to alleviate suffering abroad. Only free markets, property rights, and the rule of law can create the conditions necessary to lift poor nations out of poverty. money The 9-11 Intelligence Bill- More of the Same 11 October 2004    Texas Straight Talk 11 October 2004 verse 3 ... Cached Last week the House of Representative passed the “9-11 Recommendations Implementation Act,” a bill that ostensibly puts in place the ideas endorsed by the 9-11 Commission. As I related to you back in August, however, the commission amounted to nothing more than current government officials meeting with former government officials, many of whom now lobby government officials, and agreeing that we need more government! Most of the reforms contained in this bill will not make America safer, but they definitely will make us less free. The Act also wastes American taxpayer money on unconstitutional and ineffective foreign aid programs, designed to prove that money can buy us friends. Instead of expanding the federal police state, Congress should make America safer by expanding liberty and refocusing our foreign policy on defending this nation's vital interests, rather than wasting American blood and treasure on quixotic crusades to “democratize” the world. money Government Debt- The Greatest Threat to National Security 25 October 2004    Texas Straight Talk 25 October 2004 verse 6 ... Cached Since 1969, the federal government has spent more that it received in revenues every year. Even supposed single-year surpluses never existed, but were merely an accounting trick based on stealing IOUs from the imaginary Social Security trust fund. Remember that the total federal debt continued to rise rapidly even during the claimed surplus years. Since Congress is incapable of spending only what the Treasury takes in, it must borrow money. Unlike ordinary debts, however, government debts are not repaid by those who spend the money-- they’re repaid by you and future generations. money Social Security: House of Cards 08 November 2004    Texas Straight Talk 08 November 2004 verse 8 ... Cached Furthermore, who would decide what stocks, bonds, mutual funds, or other investment vehicles deserve government approval? Which politicians would you trust to build an investment portfolio with billions of your Social Security dollars? The federal government has proven itself incapable of good money management, and permitting politicians and bureaucrats to make investment decisions would result in unscrupulous lobbying for venture capital. Large campaign contributors and private interests of every conceivable type would seek to have their favored investments approved by the government. In a free market, an underperforming or troubled company suffers a decrease in its stock price, forcing it either to improve or lose value. Wary investors hesitate to buy its stock after the price falls. If a company successfully lobbied Congress, however, it would enjoy a large investment of your tax dollars. This investment would cause an artificial increase in its stock price, deceiving private investors and unfairly harming the company's honest competition. Government-managed investment of tax dollars in the private market is a recipe for corruption and fiscal irresponsibility. money Social Security: House of Cards 08 November 2004    Texas Straight Talk 08 November 2004 verse 9 ... Cached The Social Security crisis is a spending crisis. The program could be saved tomorrow if Congress simply would stop spending so much money, apply even 10% of the bloated federal budget to a real trust fund, and begin saving your contributions to earn simple interest. That this simple approach seems impossible speaks volumes about the inability of Congress to cut spending no matter what the circumstances. money The Middle East Quagmire 15 November 2004    Texas Straight Talk 15 November 2004 verse 4 ... Cached We conveniently forget, however, that American tax dollars militarized the entire region in the first place. We give Israel about $3 billion each year, but we also give Egypt $2 billion. Most other Middle East countries get money too, some of which ends up in the hands of Palestinian terrorists. Both sides have far more military weapons as a result. Talk about adding fuel to the fire! Our foolish and unconstitutional foreign aid has produced more violence, not less. money The Middle East Quagmire 15 November 2004    Texas Straight Talk 15 November 2004 verse 6 ... Cached This illustrates perfectly the inherent problem with foreign aid: once we give money to one country, we have to give it to all the rest or risk making enemies. This is especially true in the Middle East and other strife-torn regions, where our financial support for one side is seen as an act of aggression by the other. Just as our money never makes Israel secure, it doesn’t buy us any true friends elsewhere in the region. On the contrary, many Muslims hate the United States despite the billions we give to their governments. money Raising the Debt Limit: A Disgrace 22 November 2004    Texas Straight Talk 22 November 2004 verse 6 ... Cached Most Americans do not spend much time worrying about the national debt, which now totals more than eight trillion dollars. The number is so staggering that it hardly seems real, even when economists issue bleak warnings about how much every American owes-- currently about $25,000. Of course, Congress never hands taxpayers a bill for that amount. Instead, the federal government uses your hard-earned money to pay interest on this debt, which is like making minimum payments on a credit card. Notice that the principal never goes down. In fact, it is rising steadily. money Raising the Debt Limit: A Disgrace 22 November 2004    Texas Straight Talk 22 November 2004 verse 8 ... Cached The whole point of the debt ceiling law was to limit borrowing by forcing Congress into an open and presumably somewhat shameful vote when it wants to borrow more than a preset amount of money. Yet since there have been no political consequences for members who vote to raise the debt limit and support the outrageous spending bills in the first place, the debt limit has become merely another technicality on the road to bankruptcy. The only way to control federal spending is to take away the government’s credit card and refuse to allow Congress to borrow one red dime. money TSA- Bullies at the Airport 29 November 2004    Texas Straight Talk 29 November 2004 verse 8 ... Cached Airlines should be using every last ounce of their lobbying and public relations power to stop TSA from harassing, delaying, humiliating, and otherwise mistreating their paying passengers. They should be protecting their employees, passengers, and aircraft using private security and guns in the cockpit. After all, who has more incentive to create safe skies than the airlines themselves? Many security-intensive industries, including nuclear power plants, oil refineries, and armored money transports, employ private security forces with excellent results. Yet the airlines prefer to relinquish all responsibility for security to the government, so they cannot be held accountable if another disaster occurs. But airlines are finding out the hard way that millions of Americans simply won't put up with TSA's abuse. Wealthy Americans are using private planes via increasingly popular fractional ownership plans, while ordinary Americans are choosing to drive to their destinations and vacation closer to home. Even business travelers are finding ways to consolidate trips and teleconference. Who can blame anyone for avoiding airports altogether? money Gold Exposes the Dollar 06 December 2004    Texas Straight Talk 06 December 2004 verse 3 ... Cached The existence of gold in the economy is a constant reminder of the poor quality of the government paper, and it always poses a threat to replace the paper as the country's money. money Gold Exposes the Dollar 06 December 2004    Texas Straight Talk 06 December 2004 verse 7 ... Cached The world financial markets are betting against the dollar. Our creditors, particularly Asian central banks, are losing their appetite for U.S. Treasuries. Our federal government’s huge debt and voracious appetite for deficit spending make our economy dependent on the actions of foreign governments and central bankers. Yet few Americans realize the extent to which their own government has sold out American sovereignty by borrowing money overseas. money Gold Exposes the Dollar 06 December 2004    Texas Straight Talk 06 December 2004 verse 9 ... Cached The consequences of a rapidly declining dollar are not yet obvious to the American public. A trip to Europe costs more than it did a few years ago, but most Americans still don’t sense they are becoming poorer as the dollar falls. The long-term significance has not yet begun to sink in. However, our relative wealth as a nation is measured in dollars, and the steady erosion of the value of those dollars means we will all be poorer in the future. Federal Reserve chairman Alan Greenspan has relentlessly increased the money supply throughout his tenure, ostensibly to keep the economy expanding. But this artificial stimulation through cheap money comes with a price. When dollars are abundant, they are worth less. This is the reality facing Americans today, especially older Americans who rely on savings to finance their retirement years. money Another UN Insult 03 January 2005    Texas Straight Talk 03 January 2005 verse 4 ... Cached You may have heard one United Nations official comment that America is being stingy with its offer of millions of dollars in aid for tsunami victims. His attitude toward your money is typical of globalist bureaucrats, who ultimately view the UN as a means for transferring wealth from America to other nations. Americans are very generous people, and undoubtedly will donate tens or even hundreds of millions to private organizations to help the victims of this terribly tragedy in Asia. We hardly need the UN to chide us about our supposed lack of generosity. money Private Help for Tsunami Victims 10 January 2005    Texas Straight Talk 10 January 2005 verse 3 ... Cached In the past ten days, Americans have donated several hundred million dollars to help Asian tsunami victims. Despite this outpouring of support for private charities, the Bush administration has pledged to send at least $350 million in federal aid, a figure that is open-ended and certain to climb. It’s admirable that Americans have been so willing to open their hearts and pocketbooks for the victims of this enormous tragedy, but it’s not the job of the federal government to make a show of generosity to the world with your tax dollars. Remember, government officials cannot be generous or charitable, because the money they dispense does not belong to them. money Private Help for Tsunami Victims 10 January 2005    Texas Straight Talk 10 January 2005 verse 4 ... Cached The original coalition of donor governments has been disbanded, meaning the United Nations will control all government-funded relief efforts going forward. Surely the oil-for-food scandal demonstrates that UN officials are the worst possible stewards of the tsunami relief funds, yet that’s precisely who will be overseeing the expenditure of our $350 million. Bush administration officials have promised to keep a tight watch over how those tax dollars are spent, but the truth is that we cannot control this money once it’s sent overseas for UN administration. money Private Help for Tsunami Victims 10 January 2005    Texas Straight Talk 10 January 2005 verse 5 ... Cached We are mistaken when we assume governments must be the central organizing agents of the relief efforts. Private-sector charities and free-market social cooperation are the real saviors in any natural disaster, despite the intense desire of politicians to be seen as heroes on a white horse-- heroes who use other people’s money. Government-to-government transfers are inherently inefficient, and adding the UN as a middleman will only ensure that even less of the money actually reaches those who need it most. money Private Help for Tsunami Victims 10 January 2005    Texas Straight Talk 10 January 2005 verse 6 ... Cached Money is critical for disaster relief, but it is not the only issue. Efficient organization of relief services is equally important, and efficiency means circumventing the government bureaucracies that tend to boss people around after natural disasters. Doctors Without Borders, a private group known for providing medical care in poor nations, actually requested that people stop sending them money last week. Their operating model relies on very low overhead and complete independence from governments, and they understand that throwing more and more money at a disaster is not necessarily the best approach. money Want to Reform Social Security? Stop Spending. 24 January 2005    Texas Straight Talk 24 January 2005 verse 3 ... Cached Social Security reform promises to be the biggest domestic issue this year in Washington, but most of the proposals are nothing more than flim-flam. The only honest solution to the future insolvency of the program is for Congress to stop spending so much money. Unless Congress makes real cuts in spending-- and stops spending Social Security taxes on completely unrelated programs-- millions of Americans simply will not receive even a fraction of the money they paid into Social Security. Ignore the rhetoric about tax increases and cuts in benefits, as though you are to blame for the problem! All Social Security obligations could be met if Congress did not spend so much on other things. money Want to Reform Social Security? Stop Spending. 24 January 2005    Texas Straight Talk 24 January 2005 verse 5 ... Cached Notice that neither political party proposes letting people opt out of Social Security, which exposes the lie that your contributions are set aside and saved. After all, if your contributions really are put aside for your retirement, the money will be there earning interest, right? If your money is put away in a trust fund account with your name on it, what difference would it make if your neighbor chooses not to participate in the program? money Want to Reform Social Security? Stop Spending. 24 January 2005    Texas Straight Talk 24 January 2005 verse 6 ... Cached The truth, of course, is that your contributions are not put aside. Social Security is simply a tax. Like all taxes, the money collected is spent immediately as general revenues to fund the federal government. The Social Security trust fund does not exist, and Social Security “surpluses” are nothing more than an accounting ledger showing that contributions exceeded benefits paid for a given calendar year-- not that the excess was put aside. Social Security benefits are paid each year from general funds, like other federal programs. Since these programs and overall spending keep increasing, the government can’t give up any sources of tax revenue. Allowing people to opt out of Social Security would force the federal government to admit it has been stealing money from Social Security for decades. money Want to Reform Social Security? Stop Spending. 24 January 2005    Texas Straight Talk 24 January 2005 verse 8 ... Cached If the administration truly wants to give people more control over their retirement dollars, why not simply reduce payroll taxes and let them keep their own money to invest privately as they see fit? This is the true private solution. money Want to Reform Social Security? Stop Spending. 24 January 2005    Texas Straight Talk 24 January 2005 verse 9 ... Cached Your money has never been safe in the government’s hands, and it never will be. Governments spend money; it’s just their nature. It is preposterous to believe our government is capable of simply sitting on a huge pile of money without touching it because it’s earmarked for one purpose or another. No matter what politicians promise, Social Security reform will not change the fact that your money is taken from your paycheck and sent to Washington, where it will be spent. money The Maestro Changes his Tune 21 February 2005    Texas Straight Talk 21 February 2005 verse 7 ... Cached Second, inflation is a much greater problem than the federal government admits. Health care, housing, and energy are three areas where costs have risen dramatically. The producer price index is rising at the fastest rate in seven years. Bond prices are rising. To suggest that rapid expansion of the money supply and artificially low interest rates do not ultimately cause price inflation is absurd. money The Maestro Changes his Tune 21 February 2005    Texas Straight Talk 21 February 2005 verse 9 ... Cached It’s not enough to question the wisdom of Mr. Greenspan. Americans should question why we have a central bank at all, and whose interests it serves. The laws of supply and demand work better than any central banker to determine both the correct supply of money in the economy and the interest rate at which capital is available- without the political favoritism and secrecy that characterize central banks. Americans should not tolerate the manipulation of our economy and the inflation of our currency by an unaccountable institution. money Deficits Make You Poorer 14 March 2005    Texas Straight Talk 14 March 2005 verse 4 ... Cached Ultimately, the U.S. government will either repay its debts or default on them. We need only look at the Argentine debt crisis of 2001 for an example of what happens when a government fails to make even minimum payments to creditors. The Argentine economy virtually collapsed, and the value of her money tumbled. This is something most Americans cannot fathom, especially a political class that mistakenly thinks it can’t happen here. money Deficits Make You Poorer 14 March 2005    Texas Straight Talk 14 March 2005 verse 6 ... Cached When the federal government spends more each year than it collects in tax revenues, it has three choices: It can raise taxes, print money, or borrow money. While these actions may benefit politicians, all three options are bad for average Americans. money Deficits Make You Poorer 14 March 2005    Texas Straight Talk 14 March 2005 verse 8 ... Cached Deficits mean more monetary inflation. Deficit spending necessitates the creation of more fiat dollars by the Federal Reserve to keep the government afloat. Congress knows it can always fall back on the Fed money machine, which of course encourages more deficit spending. It’s a vicious cycle that ultimately makes every dollar you have worth less. money Where is Your Money Going? 21 March 2005    Texas Straight Talk 21 March 2005 verse 1 ... Cached Where is Your Money Going? money Where is Your Money Going? 21 March 2005    Texas Straight Talk 21 March 2005 verse 3 ... Cached Last week Congress spent another $82 billion in an “emergency” supplemental appropriations bill. There is no emergency, however: Congress simply exceeded its fiscal year budget once again and needs more money. The 13 standard appropriations bills, which provide about $2.4 trillion to run the federal government in 2005, are not enough to satisfy the ravenous spending appetites of Congress and the administration. Hence the so-called emergency supplemental bill, which cravenly combines troop funding with useless foreign aid and domestic pork. money Congress and the Federal Reserve Erode Your Dollars 23 May 2005    Texas Straight Talk 23 May 2005 verse 4 ... Cached This kind of bluster may serve political interests, but in reality we have nobody to blame but ourselves for the sharp decline in the US dollar. Congress and the Federal Reserve, not China, are the real culprits in the erosion of your personal savings and buying power. Congress relentlessly spends more than the Treasury collects in taxes each year, which means the US government must either borrow or print money to operate- both of which cause the value of the dollar to drop. When we borrow a billion dollars every day simply to run the government, and when the Federal Reserve increases the money supply by trillions of dollars in just 15 years, we hardly can expect our dollars to increase in value. money Congress and the Federal Reserve Erode Your Dollars 23 May 2005    Texas Straight Talk 23 May 2005 verse 7 ... Cached Unlike wealthy currency traders, most Americans are stuck with their U.S. dollars. Average people, particularly those who depend on savings or fixed incomes to fund their retirement years, cannot abide the continued devaluation of our currency. A true strong-dollar policy would not depend on the actions of China or any other nation. It would, however, require a constriction of the money supply and higher interest rates, both of which would cause some short-term pain for the American economy. In the long run, however, such a correction is the only alternative to the continued erosion of our dollars. money Missing the Point: Federal Funding of Stem Cell Research 30 May 2005    Texas Straight Talk 30 May 2005 verse 3 ... Cached Congressional Republicans, eager to appease pro-life voters while still appearing suitably compassionate, supported a second bill that provides nearly $80 million for umbilical cord stem cell research. But it’s never compassionate to spend other people’s money for political benefit. money NeoCon Global Government 13 June 2005    Texas Straight Talk 13 June 2005 verse 10 ... Cached The real question is whether we should redouble our efforts to save a failed system, or admit its failures-- as this legislation does-- and recognize that the only reasonable option is to cease participation without further costs to the United States in blood, money, and sovereignty. Do not be fooled: it is impossible to be against the United Nations and to support “reform” of the United Nations. The only true reform of the United Nations is for the US to withdraw immediately. money Can the UN Really be Reformed? 20 June 2005    Texas Straight Talk 20 June 2005 verse 6 ... Cached The problem is not that the UN is corrupt, or ineffective, or run by scoundrels. The real problem is that the UN is inherently illegitimate, because supra-national government is an inherently illegitimate concept. Legitimate governments operate only by the consent of those they govern. Yet it is ludicrous to suggest that billions of people across the globe have in any way consented to UN governance, or have even the slightest influence over their own governments. The UN is perhaps the least democratic institution imaginable, but both Democrats and Republicans insist on using it to “promote democracy.” We should stop worrying about the UN and simply walk away from it by withdrawing our membership and our money. We should demand a return to real national sovereignty, and respect other nations by rejecting our failed interventionist foreign policy. By doing so we would make the world a more peaceful place. money What Should America do for Africa? 11 July 2005    Texas Straight Talk 11 July 2005 verse 4 ... Cached The White House attempted to quell criticism that America is not doing enough to save Africa by announcing that the U.S. would double its economic aid to the continent, from $4.3 billion to $8.6 billion, over the next few years. Neither Congress nor the American people were consulted prior to this pronouncement, I might add. I think the public might not share the administration’s generous mood, especially as we spend billions in Iraq and face single year deficits of $500 billion. Frankly, a federal government with nearly $8 trillion in debt has no business giving money to anybody. money What Should America do for Africa? 11 July 2005    Texas Straight Talk 11 July 2005 verse 7 ... Cached As commentator Joseph Potts explains, western money enables dictators like Robert Mugabe of Zimbabwe to gain and hold power without the support of his nation’s people. African rulers learn to manipulate foreign governments and obtain an independent source of income, which makes them far richer and more powerful than any of their political rivals. Once comfortably in power, and much to the horror of the western governments that funded them, African dictators find their subjects quite helpless and dependent. Potts describes this process as giving African politicians the “power to impoverish.” The bottom line is that despite decades of western aid, more Africans than ever are living in extreme poverty. Foreign aid simply doesn’t work. money What Should America do for Africa? 11 July 2005    Texas Straight Talk 11 July 2005 verse 9 ... Cached The president is promising money we don’t have to solve a problem we didn’t cause. Americans have the freedom to do everything in their power to alleviate African suffering, whether by donating money or working directly in impoverished nations. But government-to-government foreign aid doesn’t work, and it never has. We should stop kidding ourselves and ignore the emotionalist pleas of rock stars. Suffering in Africa cannot be helped by delusional, feel-good government policies. money Immigration and the Welfare State 08 August 2005    Texas Straight Talk 08 August 2005 verse 11 ... Cached We need to allocate far more of our resources, both in terms of money and manpower, to securing our borders and coastlines here at home. This is the most critical task before us, both in terms of immigration problems and the threat of foreign terrorists. Unless and until we secure our borders, illegal immigration and the problems associated with it will only increase. money Borrowing, Spending, Counterfeiting 22 August 2005    Texas Straight Talk 22 August 2005 verse 3 ... Cached Few Americans truly understand how our Federal Reserve system enables Congress to spend far beyond its means, but the cycle of spending and printing money affects all of us. Simply put, the more money our Treasury prints, the less every dollar is worth. Our pure fiat money system, in place since the last vestiges of a gold standard were eliminated in the early 1970s, has reduced the value of your savings by 80%. Disregard the government’s Consumer Price Index, which substantially underreports price inflation. Monetary inflation is true inflation, and we only need to look at the cost of homes, cars, energy, and medical care to recognize that a dollar buys far less today than ever. money Borrowing, Spending, Counterfeiting 22 August 2005    Texas Straight Talk 22 August 2005 verse 7 ... Cached Third, future administrations are unlikely to challenge a foreign policy orthodoxy that views America as the world’s savior. We are hemorrhaging billions of dollars every month in Iraq, and we waste billions more every year through foreign aid and overseas meddling. A foreign policy based on nation-building and the imposition of “democracy” abroad, in direct contravention of our founders’ admonitions, is not economically sustainable. In Korea alone, U.S. taxpayers have spent nearly one trillion in today’s dollars over 55 years. A permanent military presence in Iraq and the wider Middle East will cost enormous amounts of money. money Borrowing, Spending, Counterfeiting 22 August 2005    Texas Straight Talk 22 August 2005 verse 8 ... Cached Finally, we face a reordering of the entire world economy. China, Japan, and Asia in general have been happy to hold U.S. debt instruments in recent decades, but they will not prop up our spending habits forever. Foreign central banks are increasingly reluctant to hold more U.S. dollars, understanding that American leaders do not have the discipline to maintain a stable currency. When the rest of the world finally abandons the dollar as the global reserve currency, both Congress and American consumers will find borrowing money a more expensive proposition. money Borrowing, Spending, Counterfeiting 22 August 2005    Texas Straight Talk 22 August 2005 verse 10 ... Cached The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration. The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation. It is this one-two punch-- Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference-- that threatens to impoverish us by further destroying the value of our dollars. money Hey, Big Spender 29 August 2005    Texas Straight Talk 29 August 2005 verse 9 ... Cached The bottom line is that everyone in Washington says they oppose pork and want government to spend less, but few in Congress actually vote that way. Most DC politicians are far too dependent on special interest money to make any waves. “Go along to get along” is the creed of the political class, and nothing will change unless and until the American public stops electing and re-electing the big spenders to office. money Gas, Taxes, and Middle East Policy 05 September 2005    Texas Straight Talk 05 September 2005 verse 4 ... Cached Congress can help immediately by suspending federal gas taxes, which alone add 18.4 cents to the cost of every gallon. The state of Texas adds another 20 cents per gallon in taxes. Citizens are always asked to sacrifice during crises; why are governments never expected to do the same? Immediate, short-term relief for every American at the pump could be a reality when Congress returns to Washington this week. Congress should pass, and the president should immediately sign, a bill suspending the federal gas tax. This would create pressure for states to do the same. This is the simplest, fastest, and soundest way to drop gas prices and ease the financial impact of Katrina. Wouldn’t it be better to leave that money in the pockets of the American public at least temporarily, especially as we’re all being asked to provide financial help to hurricane victims? money Responding to Katrina 12 September 2005    Texas Straight Talk 12 September 2005 verse 4 ... Cached When it comes to government relief efforts for the victims of Hurricane Katrina, Congress must be very careful with the nearly $52 billion dollars approved last week-- almost all of which goes to FEMA. The original $10 billion authorized by Congress for hurricane relief was spent in a matter of days, and there is every indication that FEMA is nothing but a bureaucratic black hole that spends money without the slightest accountability. Any federal aid should be distributed as directly as possible to local communities, rather than through wasteful middlemen like FEMA. We cannot let the Katrina tragedy blind us to fiscal realities, namely the staggering budget deficits and national debt that threaten to devastate our economy. money Responding to Katrina 12 September 2005    Texas Straight Talk 12 September 2005 verse 5 ... Cached Why does Congress assume that the best approach is simply to write a huge check to FEMA, the very government agency that failed so spectacularly? This does not make sense. We have all seen the numerous articles detailing the seemingly inexcusable mistakes FEMA made - before and after the hurricane. Yet in typical fashion, Congress seems to think that the best way to fix the mess is to throw money at the very government agency that failed. We should not be rewarding failure. money Responding to Katrina 12 September 2005    Texas Straight Talk 12 September 2005 verse 6 ... Cached Considering the demonstrated ineptitude of government on both the federal and state level in this disaster, the people affected by the hurricane and subsequent flood would no doubt be better off if relief money simply was sent directly to them or to community organizations dedicated to clean-up and reconstruction. Indeed, we have seen numerous troubling examples of private organizations and individuals attempting to help their fellow Americans in so many ways over the last ten days, only to be turned back by FEMA or held up for days by government red tape. We have seen in previous disasters how individuals and non-governmental organizations were often among the first to pitch in and help their neighbors and fellow citizens. Now, FEMA is sending these good Samaritans a troubling message: stay away, let us handle it. money Responding to Katrina 12 September 2005    Texas Straight Talk 12 September 2005 verse 9 ... Cached Once again the federal government is attempting to impose a top-down solution to the disaster. No one questions where this $52 billion will come from. The answer, of course, is that the federal government simply is going to print the money. There will be no reductions in federal spending elsewhere to free up this disaster aid. Rather, the money will come from a printing press. The economic devastation created by such a reckless approach may well be even more wide-reaching than the disaster this bill is meant to repair. money Responding to Katrina 12 September 2005    Texas Straight Talk 12 September 2005 verse 10 ... Cached We should consider more constructive ways to help New Orleans and the other affected areas recover from this tragedy. There are numerous approaches, such as the creation of tax-free enterprise zones, which would attract private capital to the area and result in a much quicker and more responsive recovery. Katrina’s victims and the rest of the country deserve a more sustainable and financially rational approach than simply printing and spending money. money Deficit Spending and Katrina 19 September 2005    Texas Straight Talk 19 September 2005 verse 3 ... Cached Some economists estimate that rebuilding New Orleans and other areas impacted by Hurricane Katrina will cost taxpayers at least $200 billion, which may be a conservative figure considering it could takes decades to fully restore the city. The problem is that our Treasury does not have an extra $200 billion dollars on hand. This means the money either will be printed or borrowed, both of which bode ill for the American economy. Several conservatives in Congress, however, are cautioning against throwing more and more taxpayer money at the problem with no accountability. While we all want to help the victims of Katrina, we must remember that no one is better off if we create record deficits that hobble our children and grandchildren for generations. money Deficit Spending and Katrina 19 September 2005    Texas Straight Talk 19 September 2005 verse 5 ... Cached When the Treasury prints new money, the ruling class benefits because they can cash in on inflated assets like stock or real estate early in the cycle of printing and spending. The poor, by contrast, are totally dependent on the immediate buying power of their meager resources. A fiat money system that engenders cycles of new money and deficit spending is not the savior of the poor, but rather their worst enemy. Every new dollar makes the dollars that eventually trickle down to the poorest Americans worth less and less. Do we really believe we can resurrect New Orleans, and address the needs of her poorest citizens, by printing money out of thin air? money Empowering the UN in the Guise of Reform 03 October 2005    Texas Straight Talk 03 October 2005 verse 6 ... Cached The misnamed “Democracy Fund” created at the World Forum may well provide the funding for this UN army. We must ask ourselves whether this “global democracy fund” will be used to undermine or overthrow elected governments that do not meet some UN-created democratic criteria. Will it be used to further the kinds of color-coded revolutions we have seen from East Europe to the Middle East, which far from being genuine expressions of popular will are in fact fomented with outside money and influence? Could it eventually be used against the United States? What if the US is determined lacking when it comes to UN-defined democratic responsibilities such as providing free public housing or universal healthcare? money Who Opposes Simpler, Lower Taxes? 17 October 2005    Texas Straight Talk 17 October 2005 verse 6 ... Cached The panelists also misused the term “tax subsidy” over and over. A true subsidy is very simple: certain individuals or businesses receive taxpayer money from the government. But the panel members clearly have accepted the thoroughly leftist idea that all income belongs to the state, and therefore the state “subsidizes” you by letting you keep some of the money you earned. This is nonsense. If the government uses tax dollars to build you a house, you have received a subsidy. Taxpayers have given you something. But if you pay less in income taxes because of the mortgage interest deduction, you have not been “subsidized” by anyone. The government has not given you something; it simply has taken less. What kind of tax reform proposals can we expect from people who can’t understand the fundamental difference between a subsidy and a tax cut? money Will the Estate Tax ever be Repealed? 24 October 2005    Texas Straight Talk 24 October 2005 verse 3 ... Cached Just two years ago, Congress was poised to eliminate the hated estate tax permanently. Today, however, several U.S. Senators are using their own wasteful spending habits to justify retaining the tax. In the eyes of these Senators, budget deficits are never the result of too much spending, but rather too little taxing. They cannot imagine giving up even the tiny fraction of federal revenues raised by the estate tax. Why is a one percent revenue cut unthinkable to these lawmakers, while annual three or five percent spending increases are considered business as usual? To answer this question, look no further than the transportation bill passed last week in the Senate. It is perhaps the most pork-filled, wasteful appropriations bill passed in years. The bottom line is that spending money is what keeps these Senators in office. They won’t stop pork spending because the American voting public rewards them for it. money Will the Estate Tax ever be Repealed? 24 October 2005    Texas Straight Talk 24 October 2005 verse 4 ... Cached The estate tax, more accurately known as the death tax because it is levied when a taxpayer dies, confiscates anywhere from 37% to 55% of a individual’s assets. While these rates are unconscionable, the death tax also represents an especially galling form of double taxation. Americans already pay federal and state income taxes throughout their working lives. They pay income and capital gains taxes on money they save and invest. They pay local property taxes on their homes. They pay various sales taxes whenever they buy something. They even pay steep federal taxes on gasoline and telephone use. Yet after a lifetime of burdensome taxes, the death tax punishes Americans one last time simply because they worked hard, saved, and invested to pass something on to their families. money Will the Estate Tax ever be Repealed? 24 October 2005    Texas Straight Talk 24 October 2005 verse 6 ... Cached The tired argument that the estate tax only affects the rich simply is false. Many of my constituents are farmers, ranchers, and small business owners. They are hardly rich, but some of them have built up valuable businesses they would like to pass on to their children. Yet when they die, their children rarely have the liquid cash needed to pay the death tax bill. Often the business must be sold or divided to raise money for the IRS. Many family farms across this country have been bought by large corporations because of the estate tax. money Deficts at Home, Welfare Abroad 07 November 2005    Texas Straight Talk 07 November 2005 verse 4 ... Cached Consider just a few of the ways your money will be used under the new bill: money Deficts at Home, Welfare Abroad 07 November 2005    Texas Straight Talk 07 November 2005 verse 10 ... Cached * $95 million in new money for the United Nations Democracy Fund, which meddles with foreign governments but never seems to change them; money Deficts at Home, Welfare Abroad 07 November 2005    Texas Straight Talk 07 November 2005 verse 14 ... Cached Constitutionally, of course, none of this spending is authorized. But there also is a strong moral case to be made against taking money from Americans and giving it to foreign governments. Foreign aid doesn’t help poor people; it helps foreign elites and US corporations who obtain the contracts doled out by those foreign elites. Everyone in Washington knows this, but the same lofty rhetoric is used over and over to sell foreign aid programs. Corporate welfare is bad enough, but corporate welfare in the guise of helping poor foreigners is indecent. money Deficts at Home, Welfare Abroad 07 November 2005    Texas Straight Talk 07 November 2005 verse 15 ... Cached In many cases, foreign aid money simply distorts foreign economies and props up bad governments. In countries that pursue harmful economic policies, an infusion of US cash only exacerbates and prolongs problems. No amount of money can help nations that reject property rights, free markets, and the rule of law. money Deficts at Home, Welfare Abroad 07 November 2005    Texas Straight Talk 07 November 2005 verse 16 ... Cached Since American foreign aid programs began in earnest decades ago, tens of billions of US tax dollars have been given to nations around the globe. The utter failure of this money to change things for the better in those nations is no longer in question; even the most earnest advocates deep down must admit the obvious. Most of the recipient nations remain endlessly mired in poverty, political and legal corruption, and cultural malaise. money Deficts at Home, Welfare Abroad 07 November 2005    Texas Straight Talk 07 November 2005 verse 17 ... Cached A rational person would argue that failed aid programs should be eliminated. In Washington, however, failed programs get more money thrown at them. The American public deserves to know why there is room in the budget for foreign aid, when taxpayers face record deficits and debt at home. money Too Little, Too Late 14 November 2005    Texas Straight Talk 14 November 2005 verse 3 ... Cached Congress is poised to consider a budget bill this week in a vote both parties consider critical, but in reality the bill is nothing more than a political exercise by congressional leaders designed to convince voters that something is being done about runaway federal spending. Having spent the last five years out-pandering the Democrats by spending money to buy off various voting constituencies, congressional Republicans now find themselves forced to appeal to their unhappy conservative base by applying window dressing to the bloated 2006 federal budget. money Too Little, Too Late 14 November 2005    Texas Straight Talk 14 November 2005 verse 8 ... Cached Projections of big savings beyond 2006 because of this bill are pure fiction. Congress has no authority to pass budgets or appropriate money beyond the next fiscal year. Future Congresses will not pay one whit of attention to this bill, and its hopeful predictions will be forgotten. money Too Little, Too Late 14 November 2005    Texas Straight Talk 14 November 2005 verse 11 ... Cached Congress is running out of options in its game of buy now, pay later. Foreign central banks are less interested in loaning us money. Treasury printing presses are worn out from the unprecedented increase in dollars ordered by the Federal Reserve Bank over the past 15 years. Taxpayers are tapped out. Where will the money for Big Government conservatism come from? money More of the Same at the Federal Reserve 28 November 2005    Texas Straight Talk 28 November 2005 verse 6 ... Cached But there is a cost, and it's a heavy one. It's called monetary inflation, which destroys the value of the dollar and punishes those who save and invest. The money supply, as measured by the Fed's own M3 figure, has increased about 5 times since 1980. Yet for years officials at the Fed have insisted that inflation is firmly in check. money More of the Same at the Federal Reserve 28 November 2005    Texas Straight Talk 28 November 2005 verse 8 ... Cached The fundamental question is whether a central bank can manage the supply of money and credit better than the free market otherwise would. We shouldn't kid ourselves about the true nature of the Fed, which is inherently incompatible with real free market capitalism. Centralized planning of the money supply is a form of economic control that significantly affects prices, wages, and production levels. Remember how market economists once criticized central planning of prices, wages, and production levels in the former Soviet Union? money More of the Same at the Federal Reserve 28 November 2005    Texas Straight Talk 28 November 2005 verse 9 ... Cached I encourage all Americans to learn more about the Federal Reserve system and what it means for our economic future. An excellent resource is economist Murray Rothbard's book "What Has Government Done to our Money," which provides a brief yet devastating critique of centralized banking and the reckless government spending it enables. We need to demystify the Federal Reserve to understand the enormous political and economic impact of a system that essentially allows government to print money at will to pay its bills. money What do Rising Gold Prices Mean? 05 December 2005    Texas Straight Talk 05 December 2005 verse 5 ... Cached Gold is history’s oldest and most stable currency. Central bankers and politicians don’t want a gold-backed currency system, because it denies them the power to create money out of thin air. Governments by their very nature want to expand, whether to finance military intervention abroad or a welfare state at home. Expansion costs money, and politicians don’t want spending limited to the amounts they can tax or borrow. This is precisely why central banks now manage all of the world’s major currencies. money What do Rising Gold Prices Mean? 05 December 2005    Texas Straight Talk 05 December 2005 verse 6 ... Cached Yet while politicians favor central bank control of money, history and the laws of economics are on the side of gold. Even though central banks try to mask their inflationary policies and suppress the price of gold by surreptitiously selling it, the gold markets always cut through the smokescreen eventually. Rising gold prices like we see today historically signify trouble for paper currencies, and the dollar is no exception. money What do Rising Gold Prices Mean? 05 December 2005    Texas Straight Talk 05 December 2005 verse 7 ... Cached President Nixon finally severed the last tenuous links between the dollar and gold in 1971. Since 1971, the Federal Reserve and U.S. Treasury have employed a pure fiat money system, meaning government can create money whenever it decrees simply by printing more dollars. The "value" of each newly minted dollar is determined by the faith of the public, the money supply, and the financial markets. In other words, fiat dollars have no intrinsic value. money What do Rising Gold Prices Mean? 05 December 2005    Texas Straight Talk 05 December 2005 verse 8 ... Cached What does this mean for you and your family? Since your dollars have no intrinsic value, they are subject to currency market fluctuations and ruinous government policies, especially Fed inflationary policies. Every time new dollars are printed and the money supply increases, your income and savings are worth less. Even as you save for retirement, the Fed is working against you. Inflation is nothing more than government counterfeiting by the Fed printing presses. money Scandals are a Symptom, Not a Cause 09 January 2006    Texas Straight Talk 09 January 2006 verse 8 ... Cached The reason is very simple: when the federal government redistributes trillions of dollars from some Americans to others, countless special interests inevitably will fight for the money. The rise in corruption in Washington simply mirrors the rise in federal spending. The fundamental problem is not with campaigns or politicians primarily, but rather with popular support for the steady shift from a relatively limited, constitutional federal government to the huge leviathan of today. money Scandals are a Symptom, Not a Cause 09 January 2006    Texas Straight Talk 09 January 2006 verse 9 ... Cached We need to get money out of government. Only then will money not be important in politics. It's time to reconsider exactly what we want the federal government to be in our society. So long as it remains the largest and most powerful institution in the nation, it will remain endlessly susceptible to corruption. money The Real Washington Scandal 06 February 2006    Texas Straight Talk 06 February 2006 verse 4 ... Cached Later this month our Treasury once again will hit the "debt ceiling," a figure based on federal law that limits the amount of money the federal government can borrow. The total amount of federal debt as of this month is a staggering $8.2 trillion, a number that is almost incomprehensible. The effects of this debt, however, will be felt by all of us in the form of inflation, higher interest rates, and a weakened U.S. economy. money The Real Washington Scandal 06 February 2006    Texas Straight Talk 06 February 2006 verse 5 ... Cached New Federal Reserve Chairman Ben Bernanke faces a difficult dilemma. Our overseas creditors, particularly Asian central banks, already hold billions of U.S. dollars and are losing their appetite for lending us more money. They are wary of our enormous federal deficits and reckless economic policies. Ask yourself a simple question: would you loan the U.S. government money, given its spending habits? It's clear we can't go on borrowing $1.8 billion every day to finance the government! money The Real Washington Scandal 06 February 2006    Texas Straight Talk 06 February 2006 verse 6 ... Cached The simplest way for the Fed to overcome these fears and maintain worldwide enthusiasm for the dollar is to raise interest rates and stop putting new dollars into circulation. But the Greenspan "boom" was based on the opposite approach. By cutting interest rates to the bone and vastly increasing the money supply, Greenspan made Americans feel rich-- first with the stock market bubble of the 1990s, and later with the housing bubble that is only now starting to burst. Greenspan was brilliant at making debt feel like wealth, but Mr. Bernanke inherits a very difficult situation. To maintain the value of the dollar, he must put the brakes on the money supply and raise the cost of borrowing. Such tough action is unlikely, however, given Mr. Bernanke's troubling public statements about the benefits of government printing presses. money The Real Washington Scandal 06 February 2006    Texas Straight Talk 06 February 2006 verse 7 ... Cached For years the Federal Reserve Bank and Congress have maintained a cozy relationship. The Fed, by pumping more and more money into the economy, has allowed Congress to spend wildly beyond the amount collected each year by the Treasury. Congress loves deficit spending, because new programs are always politically popular and tax hikes are always unpopular. In return, Congress has maintained a completely hands-off approach toward the Fed system, allowing Mr. Greenspan free reign to "run the economy" with tremendous deference from both the public and the press. money The Real Washington Scandal 06 February 2006    Texas Straight Talk 06 February 2006 verse 8 ... Cached The results are not pretty. True inflation, correctly measured by the amount of money and credit available, has skyrocketed in the last 15 years. At the same time, federal deficits have exploded. Congress is addicted to spending, and the Fed is happy to supply the fix by providing easy money. money The Real Washington Scandal 06 February 2006    Texas Straight Talk 06 February 2006 verse 9 ... Cached As economist Addison Wiggin states, however, "The Grand Experiment with paper money is running its inevitable course. Bernanke's biggest challenge is the challenge of central banking itself: You can control some things, but not everything. In the Fed's case, it can control the quantity of money or the quality of it, but not both at the same time." money Katrina Relief Six Months Later 20 February 2006    Texas Straight Talk 20 February 2006 verse 7 ... Cached Congress reacted to Katrina in typical Washington-knows-best fashion. It immediately appropriated over $60 billion with no planning or debate, mostly to show that government was “doing something.” Political grandstanding masqueraded as compassion. As with all rapid government expenditures, the money was spent badly. Every member of Congress must have known that throwing $50 billion at FEMA, the very agency that failed so badly to prepare for Katrina, would not turn out well. money Katrina Relief Six Months Later 20 February 2006    Texas Straight Talk 20 February 2006 verse 8 ... Cached All federal aid for Katrina should have been distributed as directly as possible to local communities, rather than through wasteful middlemen like FEMA and Homeland Security. Considering the demonstrated ineptitude of government at both the federal and state level in this disaster, the people affected by the hurricane and subsequent flood no doubt would have been better off if relief money simply was sent directly to them or to community organizations dedicated to clean-up and reconstruction. money Katrina Relief Six Months Later 20 February 2006    Texas Straight Talk 20 February 2006 verse 10 ... Cached It’s not compassionate simply to throw money at a problem, especially when that money is wasted and does not help the very people who need it most. It’s not compassionate for politicians to spend money that doesn’t belong to them. It’s not compassionate to instill false hope that Washington can solve every problem and respond to every emergency. It’s certainly not compassionate to create huge deficits that hurt poor people the most through inflation, as government prints more and more money to pay its bills. money International Taxes? 06 March 2006    Texas Straight Talk 06 March 2006 verse 5 ... Cached The United Nations remains determined to rob from wealthy countries and, after taking a big cut for itself, send what’s left to the poor countries. Of course, most of this money will go to the very dictators whose reckless policies have impoverished their citizens. According to the international bureaucrats of the UN, wherever poverty exists in the rest of the world it is always our fault. According to them, our prosperity comes not from hard work, legal protection of property rights, and our capitalist system, but rather because we exploit the poor of the third world. Somehow, it’s always our fault. money International Taxes? 06 March 2006    Texas Straight Talk 06 March 2006 verse 10 ... Cached Of course, my preference is that the United States end its participation in the corrupt UN entirely, and I introduce HR 1146 in every Congress to do just that. But until my colleagues are willing to take this important step, I will continue to offer measures like my amendment last year to help protect your hard-earned money from the greedy hands of the globalist United Nations. money How Government Debt Grows 13 March 2006    Texas Straight Talk 13 March 2006 verse 8 ... Cached When government borrows money, the actual borrowers- big spending administrations and politicians- never have to pay it back. Remember, administrations come and go, members of congress become highly paid lobbyists, and bureaucrats retire with safe pensions. The benefits of deficit spending are enjoyed immediately by politicians, who trade pork for votes and enjoy adulation for promising to cure every social ill. The bills always come due later, however. Nobody ever looks back and says, “Congressman so-and-so got us into this mess when he voted for all that spending 20 years ago.” money How Government Debt Grows 13 March 2006    Texas Straight Talk 13 March 2006 verse 9 ... Cached For government, the federal budget is essentially a credit card with no spending limit, billed to somebody else. We hardly should be surprised that Congress racks up huge amounts of debt! By contrast, responsible people restrain their borrowing because they will have to pay the money back. It's time for American taxpayers to understand that every dollar will have to be repaid. We should have the courage to face our grandchildren knowing that we have done all we can to end the government spending spree. money Another "Emergency" Spending Bill 20 March 2006    Texas Straight Talk 20 March 2006 verse 3 ... Cached Congress funds the federal government through 13 enormous appropriations bills, but even an annual budget of more than $2 trillion is not enough to satisfy Washington’s appetite for new spending. As a result, a new category of spending bill has emerged, known as the “emergency supplemental” appropriation. There’s no real emergency, however; Congress simply needs a 14th spending bill as a grab bag filled with hundreds of pages of goodies for countless favored groups, industries, individual companies, and foreign governments. It’s common for dozens of amendments to be added to the supplemental bill, all with more money for somebody. money Another "Emergency" Spending Bill 20 March 2006    Texas Straight Talk 20 March 2006 verse 8 ... Cached If we’re serious about spending money for emergencies, surely $92 billion could be better spent addressing the aftermath of two domestic emergencies, namely hurricanes Katrina and Rita. money Another "Emergency" Spending Bill 20 March 2006    Texas Straight Talk 20 March 2006 verse 9 ... Cached The real emergency is in Washington, where Congress is spending and borrowing America into a perfect storm. As economist James Turk explains, the federal government now relies upon debt to finance 20% of its spending. Low interest rates during the 1990s and early 2000s kept interest payments on government debts- Treasury Bonds and Treasury Bills- somewhat manageable. During the same period, however, the Federal Reserve greatly increased the money supply, which has caught up to us in the form of price inflation. The Fed now must raise rates to combat this inflation, but higher interest rates will chill economic growth and slow tax revenue. To quote Mr. Turk, “The federal government faces a potentially toxic mix of constrained revenues, soaring expenditures, ballooning debt, and rising interest rates.” money The Perils of Economic Ignorance 27 March 2006    Texas Straight Talk 27 March 2006 verse 3 ... Cached Last week in this column I wrote of a perfect economic storm facing America, caused by a federal government that spends, borrows, and prints so much money that our dollars are eroding in value at an alarming rate. Year after year our federal government spends beyond its revenues, prints new money to pay its debts, and borrows hundreds of billions abroad in the form of Treasury obligations that someday must be paid. With too many dollars and debt instruments in circulation, and no political will in Washington to cut spending, we've created a monster. Our perceived prosperity depends on keeping the great debt and credit engine pumping, but the only way to attract new lenders to fuel the engine is higher interest rates. At some point one of two things must happen: either the party in Washington ends, or the supremacy of the dollar as the world's reserve currency ends. It's a sobering thought, but a choice must be made. money The Perils of Economic Ignorance 27 March 2006    Texas Straight Talk 27 March 2006 verse 5 ... Cached I believe one of the greatest threats facing this nation is the willful economic ignorance of the political class. Many of our elected officials at every level have no understanding of economics whatsoever, yet they wield tremendous power over our economy through taxes, regulations, and countless other costs associated with government. They spend your money with little or no thought given to the economic consequences of their actions. It is indeed a tribute to the American entrepreneurial spirit that we have enjoyed such prosperity over the decades; clearly it is in spite of government policies rather than because of them. money The Perils of Economic Ignorance 27 March 2006    Texas Straight Talk 27 March 2006 verse 6 ... Cached I certainly have seen firsthand a great deal of economic ignorance in Congress over the years. Few members pay any attention whatsoever to the Federal Reserve Bank, despite the tremendous impact Fed policy has on their constituents. Even many members of the banking and finance committees have little or no knowledge of monetary policy. Perhaps this is why so many in Congress seem to believe we can all become rich by printing new dollars, or that we can make 2+2=5 by taking money from some people and giving it to others. money The Perils of Economic Ignorance 27 March 2006    Texas Straight Talk 27 March 2006 verse 8 ... Cached I strongly recommend that every American acquire some basic knowledge of economics, monetary policy, and the intersection of politics with the economy. No formal classroom is required; a desire to read and learn will suffice. There are countless important books to consider, but the following are an excellent starting point: The Law by Frederic Bastiat; Economics in One Lesson by Henry Hazlitt; What has Government Done to our Money? by Murray Rothbard; The Road to Serfdom by Friedrich Hayek; and Economics for Real People by Gene Callahan. money The Immigration Question 03 April 2006    Texas Straight Talk 03 April 2006 verse 10 ... Cached We need to allocate far more resources, both in terms of money and manpower, to securing our borders and coastlines here at home. This is the most critical task before us, both in terms of immigration problems and the threat of foreign terrorists. Unless and until we secure our borders, illegal immigration and the problems associated with it will only increase. money Cough Up 10 April 2006    Texas Straight Talk 10 April 2006 verse 3 ... Cached April 15th, our national tax day, comes this year just as Congress prepares to pass the 2007 federal budget. If you think paying taxes was painful this year, I’ve got some bad news: the new budget is a grotesque illustration of everything wrong with the federal government. At $2.7 trillion, it’s the largest budget in U.S. history by a long shot. Like it or not, the pressure to raise your taxes will be enormous in coming years no matter who controls Congress. The amount of money government spends, borrows, and prints simply cannot be sustained. money Sanctions against Iran 17 April 2006    Texas Straight Talk 17 April 2006 verse 13 ... Cached Government meddling is always destructive to the free market; people inevitably will make wiser decisions about how to spend their money, with whom, and when, than politicians in Washington. Embargoes simply do not accomplish the ends advocates claim to desire, and are extremely harmful to the well-being of Americans. money True Foreign Aid 01 May 2006    Texas Straight Talk 01 May 2006 verse 4 ... Cached There are good reasons why the US Constitution does not allow our government to send taxpayer money overseas as foreign aid. One of the best is that coerced “charity” is not charity at all, but rather it is theft. If someone picks your pocket and donates the money to a good cause it does not negate the original act of theft. money True Foreign Aid 01 May 2006    Texas Straight Talk 01 May 2006 verse 5 ... Cached There are also practical reasons to oppose governmental foreign aid. Though it may be given with the best intentions, government agencies simply cannot do the kind of job that private charities do in actually helping people in need. Government-to-government assistance seldom helps those really in need. First, because it comes from governments it usually has political strings attached to it, and as such is really a cover for political interventionism. Take our own National Endowment for Democracy for example. The “aid” money it spends is usually spent trying to manipulate elections overseas so that a favored foreign political party wins “democratic” elections. This does no favor to citizens of foreign countries, who vote in the hope that they may choose their own leaders without outside interference. money True Foreign Aid 01 May 2006    Texas Straight Talk 01 May 2006 verse 8 ... Cached Private assistance organizations, on the other hand, are more subject to market forces and thus much more effective. When Americans feel motivated to part with their hard-earned money to help someone overseas, they want to make sure it goes only to the most effective charities. Bad news travels fast, and private charities are unlikely to send their resources where they are likely to be wasted because their contributions would soon dry up. We all recall what happened several years ago when it was revealed that the top management of a major charity organization was paid extremely high salaries: people stopped sending money. The problem corrected itself. money Foreign Policy, Monetary Policy, and Gas Prices 08 May 2006    Texas Straight Talk 08 May 2006 verse 9 ... Cached We also must understand the effect monetary policy has on gas prices. The price of gas, like the price of all things, goes up because of inflation. And inflation by definition is an increase in the money supply. The money supply is controlled by the Federal Reserve Bank, and responds to the deficits Congress creates. When deficits are excessive, as they are today, the Fed creates new dollars out of thin air to buy Treasury bills and keep interest rates artificially low. But when new money is created out of nothing, the money already in circulation loses value. Once this is recognized, prices rise-- some more rapidly than others. That’s what we see today with the cost of energy. money The Declining Dollar Erodes Personal Savings 15 May 2006    Texas Straight Talk 15 May 2006 verse 6 ... Cached A sharply rising gold price is really 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. money The Declining Dollar Erodes Personal Savings 15 May 2006    Texas Straight Talk 15 May 2006 verse 8 ... Cached The world financial markets are betting against the dollar and against Mr. Bernanke’s chances of correcting the imbalances caused by Alan Greenspan. Our creditors, particularly Asian central banks, are losing their appetite for U.S. Treasuries. Our federal government’s huge debt and voracious appetite for deficit spending make our economy dependent on the actions of foreign governments and central bankers. Yet few Americans realize the extent to which their own government has sold out American sovereignty by borrowing money overseas. money The Declining Dollar Erodes Personal Savings 15 May 2006    Texas Straight Talk 15 May 2006 verse 9 ... Cached The consequences of a rapidly declining dollar are not yet fully understood by the American public. The long-term significance has not sunk in, but when it does there will be political hell to pay in Washington. Our relative wealth as a nation is measured in dollars, and the steady erosion of the value of those dollars means we will all be poorer in the future. The artificial stimulation of our economy through cheap money comes with a price. When dollars are abundant, they are worth less. This is the reality facing Americans today, especially older Americans who rely on savings to finance their retirement years. money The Annual Foreign Aid Rip-Off 05 June 2006    Texas Straight Talk 05 June 2006 verse 3 ... Cached Why is foreign aid so bad? Isn’t it our obligation to help those less fortunate? What is not mentioned by proponents of foreign aid is that it very seldom gets to those who need it most. Foreign aid is the transfer of US dollars from the treasury of the United States to the governments of foreign countries. It is money that goes to help foreign elites, who in turn spend much of it on contracts with US corporations. This means US tax dollars ultimately go to well-connected US corporations operating overseas. money The Annual Foreign Aid Rip-Off 05 June 2006    Texas Straight Talk 05 June 2006 verse 5 ... Cached This year’s bill is even worse than last year’s bill. Aside from the almost 600 million dollar increase, the bill will spend half a billion dollars on something called the “Trade Capacity Enhancement Fund.” This is nothing but an enormous fund to bribe foreign governments to “liberalize” their trade policies. As one of the strongest proponents of free trade in Congress, I know well that open and free trade is its own reward. Countries that trade freely with each other are wealthier and far less likely to go to war. We shouldn’t kid ourselves: this new program is not about free trade. Its purpose is to encourage countries to enter into new so-called trade agreements with the US government. Government to government trade agreements produce government-managed trade relationships, which are not free trade at all. This fund is a colossal waste of money that will result in less free trade worldwide. money The Annual Foreign Aid Rip-Off 05 June 2006    Texas Straight Talk 05 June 2006 verse 6 ... Cached Also, this year Congress will nearly double funding for the monstrous Millennium Challenge program. This is billed as a different kind of foreign aid, in that it only goes to governments that pursue “free market” economic and social reforms. Of course this is a waste of money: governments that pursue wise economic policies will attract much more in foreign private investment than the US government can send them. The true reward for sound economic policies is increased prosperity. Foreign aid does not purchase that prosperity but in fact distorts internal markets and props up inefficient companies. money The Annual Foreign Aid Rip-Off 05 June 2006    Texas Straight Talk 05 June 2006 verse 7 ... Cached Americans concerned about high taxes, out of control gas prices, and economic downturn should think hard about what the US government is doing with the money it takes from them. The greatest “foreign assistance” we can give to other countries is to demonstrate to the rest of the world that limited government and the rule of law ensure freedom and prosperity. money Why Won't Congress Abolish the Estate Tax? 12 June 2006    Texas Straight Talk 12 June 2006 verse 5 ... Cached The estate tax raises very little money. In fact, even at its height the estate tax accounted for only a little more than 1% of federal revenues. A congressional Joint Economic committee report estimates that Americans spend as much avoiding estate taxes—paying attorneys and accountants—as they do paying estate taxes. A study by a Stanford professor concluded that “True revenues associated with estate taxation may well have been near zero, or even negative.” money Why Won't Congress Abolish the Estate Tax? 12 June 2006    Texas Straight Talk 12 June 2006 verse 7 ... Cached The real motivation behind the estate tax is a deep-seated hostility to property rights, and a misguided fear of family dynasties. But people don’t keep money in mattresses anymore. Money inherited from an estate is either spent, saved, or invested—all of which are better for the economy than sending it to Washington, where bureaucratic overhead consumes at least 50 cents of every dollar. money Why Won't Congress Abolish the Estate Tax? 12 June 2006    Texas Straight Talk 12 June 2006 verse 9 ... Cached That’s why the estate tax is so destructive. Since people don’t want the government controlling their property when they die, they twist themselves into pretzels finding ways to avoid turning assets over to the IRS. Some create elaborate trusts to minimize their taxes, supporting the economically wasteful estate-planning industry. Others simply lose their entrepreneurial spark, stop working, and spend their money-- succumbing to a “die broke” attitude. money Congress Rejects UN Taxes 19 June 2006    Texas Straight Talk 19 June 2006 verse 4 ... Cached UN bureaucrats think rich nations like America ought to give more money to poor nations- a lot more- simply because we’re rich. Never mind the billions of foreign aid tax dollars we send overseas every year; never mind the billions donated to overseas charities by Americans, the most charitable people on earth. The UN mindset blames the western world for poverty everywhere, assuming that our relative wealth must have come at the expense of the third world. The poor countries themselves are never deemed responsible for their own predicaments, despite their often corrupt governments, lack of property rights, and hostility toward wealth-producing capitalism. Somehow, it’s always our fault. So the UN holds conferences to talk about how we should pay to make things right, and the idea of a UN tax naturally arises. money Congress Rejects UN Taxes 19 June 2006    Texas Straight Talk 19 June 2006 verse 5 ... Cached Understand that the UN views itself as the emerging global government, and like all governments, it needs money to operate. The goal, which the UN readily admits, is to impose a comprehensive set of global laws on all of us- laws that supersede sovereign national governments. To do this, the UN needs a global military, a global police force, international courts, offices around the globe, and plenty of highly-paid international bureaucrats. All of this costs money. money Federal Reserve Policy Destroys the Value of Your Savings 10 July 2006    Texas Straight Talk 10 July 2006 verse 5 ... Cached When the Federal Reserve increases the supply of dollars in circulation, both paper and electronic, prices must rise eventually. What other result it possible? The supply of dollars has risen much faster than the supply of goods and services being chased by those dollars. Fed policy makers have more than doubled the money supply in less than ten years. While Treasury printing presses can print unlimited dollars, there are natural limits to economic growth. This flood of newly minted US currency can only increase consumer prices in the long term. money Federal Reserve Policy Destroys the Value of Your Savings 10 July 2006    Texas Straight Talk 10 July 2006 verse 6 ... Cached Mr. Bernanke has stated quite candidly that he will use government printing presses to stimulate the economy as necessary. He is famous for joking that he would endorse dropping money from helicopters if needed to prevent an economic slowdown. This is nothing short of an express policy to destroy our money by inflation. Every new dollar erodes the value of existing dollars based on simple supply and demand. Does anyone really believe the Treasury can make us rich simply by printing more money? money Federal Reserve Policy Destroys the Value of Your Savings 10 July 2006    Texas Straight Talk 10 July 2006 verse 7 ... Cached The coming dollar crisis is not likely to be “fixed” by politicians who are unwilling to make hard choices, admit mistakes, and spend less money. Demographic trends will place even greater demands on Congress to maintain benefits for millions of older Americans who are dependent on the federal government. money Federal Reserve Policy Destroys the Value of Your Savings 10 July 2006    Texas Straight Talk 10 July 2006 verse 8 ... Cached Faced with uncomfortable financial realities, Congress will seek to avoid the day of reckoning by the most expedient means available-- and the Federal Reserve undoubtedly will accommodate Washington by printing more dollars to pay the bills. The Fed is the enabler for the spending addicts in Congress, who would rather spend new fiat money than face the political consequences of raising taxes or borrowing more abroad. money Federal Reserve Policy Destroys the Value of Your Savings 10 July 2006    Texas Straight Talk 10 July 2006 verse 9 ... Cached The irony is that many of the Fed’s biggest cheerleaders are the same supposed capitalists who denounced centralized economic planning when practiced by the former Soviet Union. Large banks and Wall Street firms love the Fed’s easy money policy, because they profit at the front end from the resulting loan boom and artificially high equity prices. It’s the little guy who loses when the inflated dollars finally trickle down to him and erode his buying power. Someday Americans will understand that Federal Reserve bankers have no magic ability-- and certainly no legal or moral right-- to decide how much money should exist and what the cost of borrowing money should be. money What Congress Can Do About High Gas Prices 31 July 2006    Texas Straight Talk 31 July 2006 verse 7 ... Cached Third: We must remember that prices of all things go up because of inflation. Inflation by definition is an increase in the money supply. The money supply is controlled by the Federal Reserve Bank, and responds to the deficits Congress creates. When deficits are excessive, as they are today, the Fed creates new dollars out of thin air to buy Treasury bills and keep interest rates artificially low. But when new money is created out of nothing, the money already in circulation loses value. Once this is recognized, prices rise-- some more rapidly than others. That’s what we see today with the cost of energy. money What Congress Can Do About High Gas Prices 31 July 2006    Texas Straight Talk 31 July 2006 verse 8 ... Cached Exploding deficits, due to runaway entitlement spending and the cost of overseas engagements, create pressure for the Fed to inflate the money supply. This contributes greatly to the higher prices we’re all paying at the pump. money The Threat of Rising Property Taxes 07 August 2006    Texas Straight Talk 07 August 2006 verse 7 ... Cached Specifically, end the practice of annual assessments. Properties should be reassessed for tax purposes only when sold or ownership is otherwise transferred. The current system is terrifying for seniors forced to pay more and more each year, with no idea where they will find the money. And unlike other bills, property taxes must be paid or else one’s home can be taken away. My office hears from seniors who may have no choice but to leave Texas altogether because they cannot live with the uncertainty of arbitrary property tax increases. They literally fear losing their homes. money Your Taxes Subsidize China 14 August 2006    Texas Straight Talk 14 August 2006 verse 5 ... Cached I offered an amendment before the House of Representatives last month that would have ended the $4 billion subsidy our nation quietly gives China through the US government's Export-Import Bank. The bank underwrites the purchases of goods and services by the Chinese government and others around the world. Unfortunately, only a minority of Democrats or Republicans supported my measure. Apparently, many members of Congress are happy to bash China, but don’t mind lending her U.S. taxpayer money at sweetheart interest rates. money Your Taxes Subsidize China 14 August 2006    Texas Straight Talk 14 August 2006 verse 6 ... Cached Some of your money went to fund a nuclear power plant in Shanghai owned by the China National Nuclear Corporation, a state-run company. Many US-based multinational corporations benefit directly from Export-Import Bank subsidies to China, including Boeing, Westinghouse, and McDonnell Douglas. So it’s not hard to understand that business trumps the feelgood rhetoric condemning China. money Lowering the Cost of Health Care 21 August 2006    Texas Straight Talk 21 August 2006 verse 8 ... Cached The following are bills Congress should pass to reduce health care costs and leave more money in the pockets of families: money Elected Officials Threaten Property Rights 04 September 2006    Texas Straight Talk 04 September 2006 verse 3 ... Cached In recent weeks I've written about the threat of rising property taxes posed by state and local governments hungry for more and more of your money; and the threat of widespread eminent domain actions posed by a planned North American superhighway running straight through Texas. It's clear that many political and business interests are only too willing to drive people literally out of their homes to make way for the grand schemes of those in power. money Diagnosing our Health Care Woes 25 September 2006    Texas Straight Talk 25 September 2006 verse 6 ... Cached One big problem arises from the 1974 ERISA law, which grants tax benefits to employers for providing health care, while not allowing similar incentives for individuals. This results in the illogical coupling between employment and health insurance. As such, government removed the market incentive for health insurance companies to cater to the actual health-care consumer. As a greater amount of government and corporate money has been used to pay medical bills, costs have risen artificially out of the range of most individuals. money Deficit Spending and Social Security 09 October 2006    Texas Straight Talk 09 October 2006 verse 5 ... Cached The only honest solution to the future insolvency of Social Security is for Congress to stop spending so much money. When Congress outspends federal revenues, it raids Social Security funds to cover the difference. Unless Congress makes real cuts in spending-- and stops spending Social Security taxes on completely unrelated programs-- millions of Americans simply will not receive even a fraction of the money they paid into Social Security. Ignore the rhetoric about tax increases and cuts in benefits, as though you are to blame for the problem! All Social Security obligations could be met if Congress did not spend so much on other things. money Deficit Spending and Social Security 09 October 2006    Texas Straight Talk 09 October 2006 verse 7 ... Cached Social Security contributions are supposed to be set aside from general revenues and placed in a trust fund. The truth, of course, is that your contributions are not put aside. Over the decades Congress found itself simply unable to sit on a big pile of money, so it began treating Social Security contributions as general revenues to fund the ever-growing federal government. Today your Social Security account is nothing more than a ledger filled with IOUs. money Taxes, Spending, and Debt are the Real Issues 16 October 2006    Texas Straight Talk 16 October 2006 verse 7 ... Cached 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! money Taxes, Spending, and Debt are the Real Issues 16 October 2006    Texas Straight Talk 16 October 2006 verse 9 ... Cached 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. money Do Tax Cuts Cost the Government Money? 23 October 2006    Texas Straight Talk 23 October 2006 verse 1 ... Cached Do Tax Cuts Cost the Government Money? money Do Tax Cuts Cost the Government Money? 23 October 2006    Texas Straight Talk 23 October 2006 verse 4 ... Cached You don’t cost the government money, the government costs you money! money Do Tax Cuts Cost the Government Money? 23 October 2006    Texas Straight Talk 23 October 2006 verse 6 ... Cached I reject the notion that tax cuts harm the economy. The economy suffers when government takes money from your paycheck that you otherwise would spend, save, or invest. Taxes never create prosperity. Private-sector innovation and productivity are the engines that drive our economy, regardless of what politicians tell us. money The NAFTA Superhighway 30 October 2006    Texas Straight Talk 30 October 2006 verse 6 ... Cached Governor Perry is a supporter of the superhighway project, and Congress has provided small amounts of money to study the proposal. Since this money was just one item in an enormous transportation appropriations bill, however, most members of Congress were not aware of it. money Demographic Reality and the Entitlement State 13 November 2006    Texas Straight Talk 13 November 2006 verse 3 ... Cached The Government Accountability Office, or GAO, is an investigative arm of Congress charged with the thankless task of accounting for the money received and spent by the federal government. As you might imagine, people who spend all day examining the nitty-gritty realities of federal spending and deficits might not share the voters' enthusiasm for grand campaign promises. money Milton Friedman 1912-2006 20 November 2006    Texas Straight Talk 20 November 2006 verse 6 ... Cached His death only underscores the sad lack of economics knowledge in Washington, however. Many of our elected officials at every level have no understanding of economics whatsoever, yet they wield tremendous power over our economy through taxes, regulations, and countless other costs associated with government. They spend your money with little or no thought given to the economic consequences of their actions. It is indeed a tribute to the American entrepreneurial spirit that we have enjoyed such prosperity over the decades; clearly it is in spite of government policies rather than because of them. money Rethinking the Draft 27 November 2006    Texas Straight Talk 27 November 2006 verse 9 ... Cached I believe wholeheartedly that an all-volunteer military is not only sufficient for national defense, but also preferable. It is time to abolish the Selective Service System and resign military conscription to the dustbin of American history. Five hundred million dollars have been wasted on Selective Service since 1979, money that could have been returned to taxpayers or spent to improve the lives of our nation's veterans. money Monetary Inflation is the Problem 04 December 2006    Texas Straight Talk 04 December 2006 verse 4 ... Cached This decline in the value of the dollar is simple to explain. The dollar loses value as the direct result of the Federal Reserve and U.S. Treasury increasing the money supply. Inflation, as the late Milton Friedman explained, is always a monetary phenomenon. The federal government consistently wants to spend more than it can tax and borrow, so Congress turns to the Fed for help in covering the difference. The result is more dollars, both real and electronic-- which means the value of every existing dollar goes down. money Monetary Inflation is the Problem 04 December 2006    Texas Straight Talk 04 December 2006 verse 6 ... Cached Of course Mr. Bernanke inherited this tightrope act from his predecessor Alan Greenspan. The Federal Reserve did two things to artificially expand the economy during the Greenspan era. First, it relentlessly lowered interest rates whenever growth slowed. Interest rates should be set by the free market, with the availability of savings determining the cost of borrowing money. In a healthy market economy, more savings equals lower interest rates. When savings rates are low, capital dries up and the cost of borrowing increases. money Monetary Inflation is the Problem 04 December 2006    Texas Straight Talk 04 December 2006 verse 8 ... Cached Second, the Fed steadily increased the monetary supply throughout the 1990s by printing money. Recent Fed numbers show double-digit annual increases in the M2 money supply. These new dollars may make Americans feel richer, but the net result of monetary inflation has to be the devaluation of savings and purchasing power. money More of the Same in 2007 25 December 2006    Texas Straight Talk 25 December 2006 verse 9 ... Cached The Pentagon, not surprisingly, has requested an additional $100 billion to keep the war going. This money will not be included in the annual budget or deficit numbers, but will be whitewashed as an “off-budget” expenditure. money The World's Reserve Currency 01 January 2007    Texas Straight Talk 01 January 2007 verse 4 ... Cached This alone is not necessarily troubling, as the dollar remains the world’s most important reserve currency. About 65% of foreign central bank exchange reserves are still held in dollars, versus only about 25% in euros. And the European Central Bank faces the same inflationary pressures that our own Federal Reserve Bank Governors face, including a growing entitlement burden that threatens economic ruin as both societies age. European politicians want to spend money just as badly as American politicians, and undoubtedly will clamor to inflate-- and thus devalue-- the euro to fund their creaky social welfare systems. money The World's Reserve Currency 01 January 2007    Texas Straight Talk 01 January 2007 verse 5 ... Cached Still, the rise of the Euro internationally is another sign that the U.S. dollar is not what it used to be. There is increasing pressure on nations to buy and sell oil in euros, and anecdotal evidence suggests that drug dealers and money launderers now prefer euros to dollars. Historically, the underground cash economy has always sought the most stable and valuable paper currency to conduct business. money The World's Reserve Currency 01 January 2007    Texas Straight Talk 01 January 2007 verse 6 ... Cached More importantly, our greatest benefactors for the last twenty years-- Asian central banks-- have lost their appetite for holding U.S. dollars. China, Japan, and Asia in general have been happy to hold U.S. debt instruments in recent decades, but they will not prop up our spending habits forever. Foreign central banks understand that American leaders do not have the discipline to maintain a stable currency. When the rest of the world finally abandons the dollar as the global reserve currency, both Congress and American consumers will find borrowing money a more expensive proposition. money The World's Reserve Currency 01 January 2007    Texas Straight Talk 01 January 2007 verse 7 ... Cached Remember, America can maintain a large trade deficit only if foreign banks continue to hold large numbers of dollars as their reserve currency. Our entire consumption economy is based on the willingness of foreigners to hold U.S. debt. We face a reordering of the entire world economy if the federal government cannot print, borrow, and spend money at a rate that satisfies its endless appetite for deficit spending. money The World's Reserve Currency 01 January 2007    Texas Straight Talk 01 January 2007 verse 8 ... Cached At some point Americans must realize that Congress, and the Federal Reserve system that permits the creation of new money by fiat, are the real culprits in the erosion of your personal savings and buying power. Congress relentlessly spends more than the Treasury collects in taxes each year, which means the U.S. government must either borrow or print money to operate-- both of which cause the value of the dollar to drop. When we borrow a billion dollars every day simply to run the government, and when the Federal Reserve increases the money supply by trillions of dollars in just 15 years, we hardly can expect our dollars to increase in value. money Can We Achieve Peace in the Middle East? 22 January 2007    Texas Straight Talk 22 January 2007 verse 6 ... Cached Practically speaking, our meddling in the Middle East has only intensified strife and conflict. American tax dollars have militarized the entire region. We give Israel about $3 billion each year, but we also give Egypt $2 billion. Most other Middle East countries get money too, some of which ends up in the hands of Palestinian terrorists. Both sides have far more military weapons as a result. Talk about adding fuel to the fire! Our foolish and unconstitutional foreign aid has produced more violence, not less. money Can We Achieve Peace in the Middle East? 22 January 2007    Texas Straight Talk 22 January 2007 verse 8 ... Cached This illustrates perfectly the inherent problem with foreign aid: once we give money to one country, we have to give it to all the rest or risk making enemies. This is especially true in the Middle East and other strife-torn regions, where our financial support for one side is seen as an act of aggression by the other. Just as our money never makes Israel secure, it doesn’t buy us any true friends elsewhere in the region. On the contrary, millions of Muslims hate the United States. money Inflation and War Finance 29 January 2007    Texas Straight Talk 29 January 2007 verse 5 ... Cached As the war in Iraq surges forward, and the administration ponders military action against Iran, it’s important to ask ourselves an overlooked question: Can we really afford it? If every American taxpayer had to submit an extra five or ten thousand dollars to the IRS this April to pay for the war, I’m quite certain it would end very quickly. The problem is that government finances war by borrowing and printing money, rather than presenting a bill directly in the form of higher taxes. When the costs are obscured, the question of whether any war is worth it becomes distorted. money Inflation and War Finance 29 January 2007    Texas Straight Talk 29 January 2007 verse 6 ... Cached Congress and the Federal Reserve Bank have a cozy, unspoken arrangement that makes war easier to finance. Congress has an insatiable appetite for new spending, but raising taxes is politically unpopular. The Federal Reserve, however, is happy to accommodate deficit spending by creating new money through the Treasury Department. In exchange, Congress leaves the Fed alone to operate free of pesky oversight and free of political scrutiny. Monetary policy is utterly ignored in Washington, even though the Federal Reserve system is a creation of Congress. money Inflation and War Finance 29 January 2007    Texas Straight Talk 29 January 2007 verse 8 ... Cached Economist Lawrence Parks has explained how the creation of the Federal Reserve Bank in 1913 made possible our involvement in World War I. Without the ability to create new money, the federal government never could have afforded the enormous mobilization of men and material. Prior to that, American wars were financed through taxes and borrowing, both of which have limits. But government printing presses, at least in theory, have no limits. That’s why the money supply has nearly tripled just since 1990. money Another Spending Bill for the War in Iraq 12 February 2007    Texas Straight Talk 12 February 2007 verse 3 ... Cached Two weeks ago I discussed how Congress and the administration use our fiat money system to literally create some of the funds needed to prosecute our ongoing wars in Iraq and Afghanistan. We’ve already spent more than $500 billion in Iraq, mostly through supplemental spending bills that are not part of the normal appropriations and budget process. But with costs soaring and no end to the war in sight, yet another supplemental spending bill must be passed soon—and both parties in Congress are only too willing to provide the money under the guise of supporting the troops. money Another Spending Bill for the War in Iraq 12 February 2007    Texas Straight Talk 12 February 2007 verse 4 ... Cached Never mind that the American people showed their dissatisfaction with the war in the fall elections. Congress lacks the political will to stand up to the administration and assert its power over the purse strings, and too many vested interests in the defense sector benefit from the supplemental bills. A cynic might even suggest that many Democrats want the war to drag on, despite their supposed opposition, to damage the president politically and benefit them in 2008. But whatever the reason, the money for war keeps flowing. money Another Spending Bill for the War in Iraq 12 February 2007    Texas Straight Talk 12 February 2007 verse 6 ... Cached I doubt very seriously that most Americans think the war in Iraq is worth one trillion dollars. Even those who do must face the reality that the federal government simply doesn’t have the money. Congress continues to spend more than the Treasury raises in taxes year after year, by borrowing money abroad or simply printing it. Paying for war with credit is reckless and stupid, but paying for war by depreciating our currency is criminal. money Another Spending Bill for the War in Iraq 12 February 2007    Texas Straight Talk 12 February 2007 verse 7 ... Cached Even the most modest suggestions for controlling spending in Iraq have been rejected. Some in Congress argued that reconstruction money should be paid back when Iraq’s huge oil reserves resume operation. Another idea was to find dollar-for-dollar offsets in the rest of the federal budget for every dollar spent in Iraq. But the administration adamantly opposed both ideas. Budget cuts are unpopular, and the profits from Iraqi oil will never compensate American taxpayers. money Another Spending Bill for the War in Iraq 12 February 2007    Texas Straight Talk 12 February 2007 verse 8 ... Cached The mentality in Washington is simple: avoid hard choices at all costs; spend money at will; ignore deficits; inflate the money supply as needed; and trust that the whole mess somehow will be taken care of by unprecedented economic growth in the future. money Monetary Policy is Critically Important 19 February 2007    Texas Straight Talk 19 February 2007 verse 3 ... Cached Federal Reserve Chairman Ben Bernanke testifies twice every year before the congressional Financial Services committee, and I look forward to these opportunities to raise questions about monetary policy. I believe monetary policy is critically important yet overlooked in Washington. Money is the lifeblood of any economy, and control over a nation's currency means control over its economic well being. Fed bankers quite literally determine the value of our money, by controlling the supply of dollars and establishing interest rates. Their actions can make you richer or poorer overnight, in terms of the value of your savings and the buying power of your paycheck. So I urge all Americans to educate themselves about monetary policy, and better understand how a small group of unelected individuals at the Federal Reserve and Treasury department wield tremendous power over our lives. money Monetary Policy is Critically Important 19 February 2007    Texas Straight Talk 19 February 2007 verse 5 ... Cached Transparency in monetary policy is a goal we should all support. I've often wondered why Congress so willingly has given up its prerogative over monetary policy. Astonishingly, Congress in essence has ceded total control over the value of our money to a secretive central bank. money Monetary Policy is Critically Important 19 February 2007    Texas Straight Talk 19 February 2007 verse 6 ... Cached Congress, although not by law, essentially has given up all its oversight responsibility over the Federal Reserve. There are no true audits, and Congress knows nothing of the conversations, plans, and actions taken in concert with other central banks. We get less and less information regarding the money supply each year, especially now that M3 is no longer reported. money Monetary Policy is Critically Important 19 February 2007    Texas Straight Talk 19 February 2007 verse 8 ... Cached But these actions, directed by the Federal Reserve, alter the purchasing power of our money. And that purchasing power is always reduced. The dollar today is worth only four cents compared to the dollar in 1913, when the Federal Reserve started. This has profound consequences for our economy and our political stability. All paper currencies are vulnerable to collapse, and history is replete with examples of great suffering caused by such collapses, especially to a nation's poor and middle class. This leads to political turmoil. money Monetary Policy is Critically Important 19 February 2007    Texas Straight Talk 19 February 2007 verse 10 ... Cached We look at GDP numbers to reassure ourselves that all is well, yet a growing number of Americans still do not enjoy the higher standard of living that monetary inflation brings to the privileged few. Those few have access to the newly created money first, before its value is diluted. money Monetary Policy is Critically Important 19 February 2007    Texas Straight Talk 19 February 2007 verse 13 ... Cached How can a policy of steadily debasing our currency be defended morally, knowing what harm it causes to those who still believe in saving money and assuming responsibility for themselves in their retirement years? Is it any wonder we are a nation of debtors rather than savers? money Hypocrisy in the Middle East 26 February 2007    Texas Straight Talk 26 February 2007 verse 4 ... Cached Consider Saudi Arabia, the native home of most of the September 11th hijackers. The Saudis, unlike the Iraqis, have proven connections to al Qaeda. Saudi charities have funneled money to Islamic terrorist groups. Yet the administration insists on calling Saudi Arabia a “good partner in the war on terror.” Why? Because the U.S. has a longstanding relationship with the Saudi royal family, and a long history of commercial interests relating to Saudi oil. So successive administrations continue to treat the Saudis as something they are not: a reliable and honest friend in the Middle East. money The Coming Entitlement Meltdown 05 March 2007    Texas Straight Talk 05 March 2007 verse 9 ... Cached The official national debt figure, now approaching $9 trillion, reflects only what the federal government owes in current debts on money already borrowed. It does not reflect what the federal government has promised to pay millions of Americans in entitlement benefits down the road. Those future obligations put our real debt figure at roughly fifty trillion dollars- a staggering sum that is about as large as the total household net worth of the entire United States. Your share of this fifty trillion amounts to about $175,000. money Don't Blame the Market for Housing Bubble 19 March 2007    Texas Straight Talk 19 March 2007 verse 5 ... Cached But capitalism is not to blame for the housing bubble, the Federal Reserve is. Specifically, Fed intervention in the economy-- through the manipulation of interest rates and the creation of money-- caused the artificial boom in mortgage lending. money Don't Blame the Market for Housing Bubble 19 March 2007    Texas Straight Talk 19 March 2007 verse 6 ... Cached The Fed has roughly tripled the amount of dollars and credit in circulation just since 1990. Housing prices have risen dramatically not because of simple supply and demand, but because the Fed literally created demand by making the cost of borrowing money artificially cheap. When credit is cheap, individuals tend to borrow too much and spend recklessly. money Don't Blame the Market for Housing Bubble 19 March 2007    Texas Straight Talk 19 March 2007 verse 7 ... Cached This is not to say that all banks, lenders, and Wall Street firms are blameless. Many of them are politically connected, and benefited directly from the Fed’s easy money policies. And some lenders did make fraudulent or unethical loans. But every cent they loaned was first created by the Fed. money Don't Blame the Market for Housing Bubble 19 March 2007    Texas Straight Talk 19 March 2007 verse 8 ... Cached The actions of lenders are directly attributable to the policies of the Fed: when credit is cheap, why not loan money more recklessly to individuals who normally would not qualify? Even with higher default rates, lenders could make huge profits simply through volume. Subprime lending is a symptom of the housing bubble, not the cause of it. money Don't Blame the Market for Housing Bubble 19 March 2007    Texas Straight Talk 19 March 2007 verse 10 ... Cached The Federal Reserve provides the mother’s milk for the booms and busts wrongly associated with a mythical “business cycle.” Imagine a Brinks truck driving down a busy street with the doors wide open, and money flying out everywhere, and you’ll have a pretty good analogy for Fed policies over the last two decades. Unless and until we get the Federal Reserve out of the business of creating money at will and setting interest rates, we will remain vulnerable to market bubbles and painful corrections. If housing prices plummet and millions of Americans find themselves owing more than their homes are worth, the blame lies squarely with Alan Greenspan and Ben Bernanke. money More Funding for the War in Iraq 26 March 2007    Texas Straight Talk 26 March 2007 verse 3 ... Cached Last week the House passed an emergency supplemental spending bill that was the worst of all worlds. The president’s request would have already set a spending record, but the Democratic leadership packed 21 billion additional dollars of mostly pork barrel spending in attempt to win Democrat votes. The total burden on the American taxpayer for this bill alone will be an astonishing 124 billion dollars. Democrats promised to oppose the war by adding more money to fight the war than even the president requested. money The Federal Reserve Monopoly over Money 09 April 2007    Texas Straight Talk 09 April 2007 verse 1 ... Cached The Federal Reserve Monopoly over Money money The Federal Reserve Monopoly over Money 09 April 2007    Texas Straight Talk 09 April 2007 verse 4 ... Cached Certainly it’s true that Mr. Bernanke can drastically affect the economy at the drop of a hat, simply by making decisions about the money supply and interest rates. But why do members of Congress assume this is good? Why do we accept without objection that a small group of people on the Federal Reserve Board wields so much power over our economic well-being? Is centralized, monopoly control over our money even compatible with a supposedly free-market economy? money The Federal Reserve Monopoly over Money 09 April 2007    Texas Straight Talk 09 April 2007 verse 6 ... Cached The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration. The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation. It is this one-two punch-- Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference-- that threatens to impoverish us by further destroying the value of our dollars. money The Federal Reserve Monopoly over Money 09 April 2007    Texas Straight Talk 09 April 2007 verse 8 ... Cached The financial press sometimes criticizes Federal Reserve policy, but the validity of the fiat system itself is never challenged. Both political parties want the Fed to print more money, either to support social spending or military adventurism. Politicians want the printing presses to run faster and create more credit, so that the economy will be healed like magic- or so they believe. money The Federal Reserve Monopoly over Money 09 April 2007    Texas Straight Talk 09 April 2007 verse 9 ... Cached Fiat dollars allow us to live beyond our means, but only for so long. History shows that when the destruction of monetary value becomes rampant, nearly everyone suffers and the economic and political structure becomes unstable. Spendthrift politicians may love a system that generates more and more money for their special interest projects, but the rest of us have good reason to be concerned about our monetary system and the future value of our dollars. money Getting Iraq War Funding Wrong Again 30 April 2007    Texas Straight Talk 30 April 2007 verse 6 ... Cached If one is unhappy with our progress in Iraq after four years of war, voting to de-fund the war makes sense. If one is unhappy with the manner in which we went to war, without a constitutional declaration, voting against funding for that war makes equally good sense. What occurred, however, was the worst of both. Democrats, dissatisfied with the way the war is being fought, gave the president all the money he asked for and more to keep fighting it, while demanding that he fight it in the manner they see fit. That is definitely not a recipe for success in Iraq and foreign policy in general. money Security Washington-Style 14 May 2007    Texas Straight Talk 14 May 2007 verse 9 ... Cached Are we better off with an enormous conglomerate of government agencies that purports to keep us safe? Certainly we are spending more money and getting less for it with the Department of Homeland Security. Perhaps now that the rush to expand government in response to the attacks of 9/11 is over, we can take a good look at what is working, what is making us safer, and what is not. If so, we will likely conclude that the Department of Homeland Security is too costly, too bloated, and too bureaucratic. Hopefully then we will refocus our efforts on an approach that doesn’t see more federal bureaucracy in Washington as the best way to secure the rest of the nation. money The Price of Delaying the Inevitable in Iraq 04 June 2007    Texas Straight Talk 04 June 2007 verse 7 ... Cached Those who want a total military victory, which no one has yet defined, don’t have the troops, the money, the equipment or the support of a large majority of the American people to do so. money Earmark Victory May Be A Hollow One 18 June 2007    Texas Straight Talk 18 June 2007 verse 4 ... Cached Though much attention is focused on the notorious abuses of earmarking, and there are plenty of examples, in fact even if all earmarks were eliminated we would not necessary save a single penny in the federal budget. Because earmarks are funded from spending levels that have been determined before a single earmark is agreed to, with or without earmarks the spending levels remain the same. Eliminating earmarks designated by Members of Congress would simply transfer the funding decision process to federal bureaucrats rather then elected representatives. In an already flawed system, earmarks can at least allow residents of Congressional districts to have a greater role in allocating federal funds - their tax dollars - than if the money is allocated behind locked doors by bureaucrats. So we can be critical of the abuses in the current system but we shouldn't lose sight of how some reforms may not actually make the system much better. money Earmark Victory May Be A Hollow One 18 June 2007    Texas Straight Talk 18 June 2007 verse 5 ... Cached The real problem, and one that was unfortunately not addressed in last week's earmark dispute, is the size of the federal government and the amount of money we are spending in these appropriations bills. Even cutting a few thousand or even a million dollars from a multi-hundred billion dollar appropriation bill will not really shrink the size of government. money High Risk Spending 13 August 2007    Texas Straight Talk 13 August 2007 verse 5 ... Cached One thing that has not drawn enough attention is the link between the size of government and the mismanagement that leads to wasted money. If the government was restrained within its proper constitutional functions, it would be far better managed and much more readily would proper oversight occur. money High Risk Credit 20 August 2007    Texas Straight Talk 20 August 2007 verse 8 ... Cached We’ve been headed in the wrong direction since 1971. This week marks the 36th anniversary of Nixon’s decision to close the gold window, which convinced me to seek public office to call attention to the runaway money train that would come in the aftermath of that decision. The temptation to print and spend money with impunity, like the temptation to max out lines of credit, is too strong to for government to resist. While Nixon brokered exclusivity deals with OPEC to prop up demand for the tidal wave of green pieces of paper the Fed pumped into the markets, the world is tiring of marching to the beat of our drum in order to secure their energy needs. The house of cards Nixon built is now on the verge of collapsing on our heads, and on our children’s heads. money High Risk Credit 20 August 2007    Texas Straight Talk 20 August 2007 verse 9 ... Cached As the dollar weakens, it becomes ever clearer that we need a return to sound, commodity-based money for a secure future. Money based on real value, not empty promises and secretive backroom machinations, is the way to get out of the current calamity without causing even bigger problems. money Aging Infrastructure 27 August 2007    Texas Straight Talk 27 August 2007 verse 8 ... Cached We should re-examine how we handle the taxes we collect for infrastructure and how we allocate that money. At the very least reins need to be put on the Highway Trust Fund. Funds collected from the gas tax should go into the Trust Fund-- period. money The Money Has to Come From Somewhere 23 September 2007    Texas Straight Talk 23 September 2007 verse 1 ... Cached The Money Has to Come From Somewhere money The Money Has to Come From Somewhere 23 September 2007    Texas Straight Talk 23 September 2007 verse 3 ... Cached The Fed does not act in a vacuum. Mr. Greenspan rightly criticizes Congress and the administration for abandoning principles of fiscal responsibility. However, monetary policy at the Fed did nothing solve money problems, but merely delayed impending crises by creating bubbles. money The Money Has to Come From Somewhere 23 September 2007    Texas Straight Talk 23 September 2007 verse 5 ... Cached Yes, the money has to come from somewhere, but we are running out of sources to tap. money The Money Has to Come From Somewhere 23 September 2007    Texas Straight Talk 23 September 2007 verse 6 ... Cached Printing more money is the Fed’s typical answer, but we are on the verge of runaway inflation. We have printed so many dollars now that we are at parity with the Canadian dollar for the first time since 1976. Since the Fed stopped publishing M3, which tracks the total supply of dollars in the economy, we can’t even be sure how many dollars they are creating. Reported inflation is around 2%, but the method for calculating inflation changed in the 1980’s, largely at Mr. Greenspan’s urging. Private economists using the original method find actual inflation to be over 10%, which matches more closely the pain consumers in the real economy feel. money The Money Has to Come From Somewhere 23 September 2007    Texas Straight Talk 23 September 2007 verse 7 ... Cached The reality is that this type of manipulation of the markets masks where resources, or money, ultimately comes from. It comes from the taxpayer. The government doesn’t create Gross Domestic Product, they just limit and control how it is done. They then absorb much of the value produced in the economy through taxation and inflation, so they can squander our nation’s wealth with runaway spending. money Keeping Promises to Seniors 07 October 2007    Texas Straight Talk 07 October 2007 verse 3 ... Cached An analysis of the Social Security "Trust Fund" shows we are not doing a credible job of keeping these promises. Official reports show the trust fund having assets of $2.1 trillion. In reality, those dollars are just IOUs the government is writing to itself when it borrows from the fund to spend on unrelated programs. There are no real assets in the Social Security Trust Fund. This is similar to taking money out of your savings account, spending it, then replacing it with an IOU to yourself, and calling that IOU an asset. money Keeping Promises to Seniors 07 October 2007    Texas Straight Talk 07 October 2007 verse 4 ... Cached In addition, this money we owe to our seniors is not even included in official budget deficit figures. In fiscal year 2006 alone, $185 billion was borrowed from Social Security. The official deficit was reported to be $248 billion. The actual deficit for 2006 would be $433 billion when combining the two. This sort of accounting would land private sector executives in prison for fraud. money Keeping Promises to Seniors 07 October 2007    Texas Straight Talk 07 October 2007 verse 5 ... Cached Yet this is done every year by the federal government. The truth is that while politicians in Washington differ about what programs to spend Social Security money on, they are united in wanting to spend it on something other than benefits for seniors. money Keeping Promises to Seniors 07 October 2007    Texas Straight Talk 07 October 2007 verse 7 ... Cached When that day of reckoning comes, there will no longer be “excess” payroll tax receipts available to prop up government spending, and the risk of financial crisis will be significant. Instead of forward thinking solutions, politicians are discussing alarming proposals, such as an agreement with Mexico to let their citizens collect social security money intended for our seniors. This would break the bank even sooner. But, current Members of Congress will no longer be in office to face the wrath of seniors and their families when the trust fund goes bankrupt. Instead, they will be retired and enjoying their own plush Congressional pensions. money Entangling Alliances 11 November 2007    Texas Straight Talk 11 November 2007 verse 7 ... Cached Free trade means no sanctions against Iran, or Cuba or anyone else for that matter. Entangling alliances with no one means no foreign aid to Pakistan, or Egypt, or Israel, or anyone else for that matter. If an American citizen determines a foreign country or cause is worthy of their money, let them send it, and encourage their neighbors to send money too, but our government has no authority to use hard-earned American taxpayer dollars to mire us in these nightmarishly complicated, no-win entangling alliances. money The True Cost of Taxing and Spending 18 November 2007    Texas Straight Talk 18 November 2007 verse 3 ... Cached Now, the Democrats on the Joint Economic Committee have released a report on the total costs of the military operations in Iraq and Afghanistan , including "hidden costs" such as interest on the money we're borrowing, and long term healthcare for vets. The bill comes to $3.5 trillion. Republicans are, of course, questioning the math on this item. money The True Cost of Taxing and Spending 18 November 2007    Texas Straight Talk 18 November 2007 verse 10 ... Cached Congress should not increase taxes by $3.5 trillion and the administration needs to end the occupation of Iraq with its costs of $3.5 trillion to taxpayers. Let the hardworking American taxpayers keep their money. Families need that $46,000 far more than government does. money The Importance of Fiscal Responsibility 16 December 2007    Texas Straight Talk 16 December 2007 verse 6 ... Cached The difference now is that our printing presses at the Federal Reserve are getting worn out as we have expanded our money supply to the breaking point with yet another rate cut this week. As the dollar falls, it is losing its reserve currency status as many countries are shifting to the Euro or the Chinese yuan or other currencies. The more that trend continues, the weaker we become on the world stage. Those foreign governments and entities that enabled us to spend so much for so long are wearing thin and cutting us off. money The Importance of Fiscal Responsibility 16 December 2007    Texas Straight Talk 16 December 2007 verse 7 ... Cached The truth is our enemies won't need a nuclear weapon to harm us if we keep spending phantom dollars at the current rate. In fact, they won't need to do anything but sit back and watch as we spend ourselves into oblivion. Historically, empires fail because they run out of money, or more accurately, run out of the ability to spend or inflate. Unfortunately, that is exactly the direction we are headed. We need to control spending, immediately, before it is too late. money On the Omnibus Spending Bill 23 December 2007    Texas Straight Talk 23 December 2007 verse 3 ... Cached What this bill means is lots more of Washington spending your money. And, with a year of talking and fighting about earmarks, we did not see a significant change in that area either. money On Foreign Entanglements: The Ties that Strangle 30 December 2007    Texas Straight Talk 30 December 2007 verse 2 ... Cached 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. money On Foreign Entanglements: The Ties that Strangle 30 December 2007    Texas Straight Talk 30 December 2007 verse 3 ... Cached 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. money On Foreign Entanglements: The Ties that Strangle 30 December 2007    Texas Straight Talk 30 December 2007 verse 7 ... Cached 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. money No Sunlight on the Omnibus 06 January 2008    Texas Straight Talk 06 January 2008 verse 3 ... Cached Every December Congress fights and argues over spending and never seems to be able to pass the necessary appropriations until the very last minute. There is panic and threats of government shut downs and reduction in essential services. And they always threaten the essential services, as if there is no waste they could possibly eliminate instead. This past December, right on cue the administration warned about dire civilian defense department layoffs if the money didn't come soon. money No Sunlight on the Omnibus 06 January 2008    Texas Straight Talk 06 January 2008 verse 6 ... Cached However, we are led to believe that if the Omnibus bill failed, horrible things would have happened. But the situation is a setup that ensures our government spending balloons every year just as the elites and special interests dictate. The vast majority of Members of Congress don't actually know what the money is being spent on until after passage and by then it is too late. money Legislative Forecast for 2008 13 January 2008    Texas Straight Talk 13 January 2008 verse 5 ... Cached Moreover, the government will require more money than ever this year, and as funding options run out, taxes will go up. Expect stealth tax increases on consumer goods, perhaps airline tickets or cigarettes, and increased government fees here and there. Ironically total revenues will probably fall due to a weakened economy. The new programs started to “help” the country will require extra money wherever the government can squeeze it out of you, unfortunately it will be at exactly the moment you can least afford it. Since the Democrats enacted “pay-as-you-go” rules for new legislation, cutting taxes to give relief during recession will be bureaucratically next to impossible. In spite of that, I will continue the uphill battle for tax relief. money Economic Stimulus Concerns 27 January 2008    Texas Straight Talk 27 January 2008 verse 3 ... Cached There are some positive aspects of the highly lauded economic stimulus package that has been negotiated. I am in favor of taxpayers getting some of their money back, however temporary tax cuts and one-time rebates will not “fix” the economy. What we desperately need right now is real deep significant tax cuts that are enabled by big spending cuts and reduction of government waste that is so rampant. Unfortunately, too many in Washington still believe we can spend our way into prosperity, which does not work and never has. money Economic Stimulus Concerns 27 January 2008    Texas Straight Talk 27 January 2008 verse 10 ... Cached Enactment of these dramatic tax cuts will free up money so employers can start hiring again. I would like for the unemployed to have the satisfaction of having a job again so the standard of living of the American family will go up. And even more than a one-time miniscule rebate check, I want you to keep more of your own money in the first place. money Taxes or Tolls on the TTC 24 February 2008    Texas Straight Talk 24 February 2008 verse 2 ... Cached One major concern I discussed a few weeks ago regarding the Trans Texas Corridor is where the land will come from. Another concern is where the money will come from. Official government websites for the TTC assure that public-private partnerships will shield the taxpayer from bearing too much of the cost burden, but a careful reading shows the door is definitely open to public funding sources, while at the same time there is no doubt of the intention to charge tolls on the road. money Taxes or Tolls on the TTC 24 February 2008    Texas Straight Talk 24 February 2008 verse 4 ... Cached However, private foreign corporations have flocked to this country eager to participate in toll collection on our poorly managed toll roads, and they make a lot of money doing so. Taking over the management and maintenance of an existing toll road is one thing. Converting taxpayer built roads into cash cows for big corporations is quite another. Using eminent domain to take privately owned land, and taxpayer funding to build a highway that is designed to bring in private revenue is nothing short of highway robbery. money Hope for the Economy 02 March 2008    Texas Straight Talk 02 March 2008 verse 4 ... Cached What the government needs to stop doing is taxing Americans literally out of house and home in the wake of the housing debacle. We should not take money from taxpayers to bail out bad businesses. At the same time, we need to make sure that America can get back to work by easing taxes and regulations on good businesses and allow them to function and prosper. Also there a lot of tax cuts and tax reforms we could be making to ease the burden on the American people. money Hope for the Economy 02 March 2008    Texas Straight Talk 02 March 2008 verse 6 ... Cached People working these jobs are the backbone of our economy, and they often support a family or put themselves through school on this money. They are already taxed on their base wages through withholding. They should not be taxed on tips. We do not need to put this kind of pressure on our service workers. money Can Foreign Aid Save Africa? 09 March 2008    Texas Straight Talk 09 March 2008 verse 6 ... Cached Africans should decide what is best for Africa . American taxpayers should decide what charities deserve their money. Forcibly taking money from the United States and sending it overseas is unconstitutional and immoral. money Making a Recession Great 16 March 2008    Texas Straight Talk 16 March 2008 verse 3 ... Cached The problem is, policing the world is expensive, and if elected officials insist upon continuing to fund our current foreign policy, the money has to come from somewhere. The wars in Iraq and Afghanistan have already cost us over $1 trillion. The Democrats' budget gives the President all the funding he needs for his foreign policy, so one wonders how serious they ever were about ending the war. While Democrats propose to tax and spend, many Republicans aim to borrow and spend, which hurts the taxpayer just as much in the long run. money Making a Recession Great 16 March 2008    Texas Straight Talk 16 March 2008 verse 5 ... Cached The bottom line is that Washington has a serious spending addiction. While both parties debate how to raise the revenue, both parties seem happy to spend over $3 trillion of your money in various ways. While some in Washington criticize the war in Iraq, very few are criticizing the interventionist mindset that got us into the war in the first place. Many so-called "Iraq War critics," criticize this administration rather than truly opposing the decades old policies that led to war. They claim they will eventually get the troops out of Iraq, but the danger is that they simply plan to move them around to other countries, not bring them home. The American people want peace. Minding our own business is the best way to achieve it. Not only is it also a whole lot cheaper, but free trade and friendship with other countries benefits all involved. money On Five Years in Iraq 23 March 2008    Texas Straight Talk 23 March 2008 verse 9 ... Cached The sooner we withdraw the better. The invasion and continued US occupation has strengthened both Iran and Al-Qaeda in the region. Continuing down the road of a failed policy will only cost more money we do not have and more lives that should not be sacrificed. Interventionism has produced one disaster after another. It is time we return to a non-interventionist foreign policy that emphasizes peaceful trade and travel and no entangling alliances. We can begin by withdrawing from Iraq immediately. money On Money, Inflation and Government 30 March 2008    Texas Straight Talk 30 March 2008 verse 1 ... Cached On Money, Inflation and Government money On Money, Inflation and Government 30 March 2008    Texas Straight Talk 30 March 2008 verse 2 ... Cached These past few weeks have provided an unfortunate opportunity to discuss inflation. The dollar index has reached new all-time lows. The total money supply, M3, as calculated by private sources, is growing at a disturbing 17% rate. The Fed is pumping dollars into the economy at an alarming rate. Just recently the Fed announced new loan auctions totaling $100 billion. That is new money created from thin air. If these money auctions, combined with the bailout of Bear Stearns, continue to be the trend, we are in for some economic stormy weather. The explanation lies in understanding the basics of money, and why it is dangerous to give government and big banks control over it. money On Money, Inflation and Government 30 March 2008    Texas Straight Talk 30 March 2008 verse 3 ... Cached First, money is not wealth, in and of itself. You cannot create more wealth simply by creating more money. Wall Street bankers cry out for more liquidity, but what is really needed is more value behind the dollar. But the value, unfortunately, isn't there. money On Money, Inflation and Government 30 March 2008    Texas Straight Talk 30 March 2008 verse 4 ... Cached You see, the Fed creates new money and uses it to purchase securities from banks. Flush with funds, these banks seek to put this money to use. During the Fed's expansionary period, much of this money went to home loans. Through a combination of federal government inducements to lend to risky borrowers, and the Fed's supply of easy money, the housing bubble took shape. Fannie Mae and Freddie Mac were encouraged to purchase and securitize mortgages, while investors, buoyed by implicit government backing, rushed to provide funding. Money that could have been invested in more productive, less risky sectors of the economy was thereby malinvested in subprime mortgage loans. money On Money, Inflation and Government 30 March 2008    Texas Straight Talk 30 March 2008 verse 5 ... Cached The implicit guarantee from the Fed is quickly becoming explicit, as those institutions deemed "too big to fail" are bailed out at taxpayer expense. Wall Street made a killing during the housing bubble, reaping record profits. Now that the bubble has burst, these same firms are trying to dump their losses on the taxpayers. This approach requires more money creation, and therefore debasement of all dollars in circulation. money On Money, Inflation and Government 30 March 2008    Texas Straight Talk 30 March 2008 verse 6 ... Cached The Federal Reserve, a quasi-government entity, should not be creating money or determining interest rates, as this causes malinvestment and excessive debt to accumulate. Centrally planned, government manipulated economies always fail eventually. The collapse of communism and the failure of socialism should have made this apparent. Even the most educated, well-intentioned central planners cannot plan the market better than the market itself. Those that understand economics best, understand this reality. money On Money, Inflation and Government 30 March 2008    Texas Straight Talk 30 March 2008 verse 8 ... Cached The end game for this policy of monetary inflation is that the money in your bank account loses purchasing power. So, by keeping failing banks afloat, the Fed punishes those who have lived frugally and saved. The power to create money is a power that should never be granted to government. As we can plainly see today, the Fed has abused this power, and taxpayers are paying the price. money Bailing Out Banks 13 April 2008    Texas Straight Talk 13 April 2008 verse 3 ... Cached The current market crisis began because of Federal Reserve monetary policy during the early 2000s in which the Fed lowered the interest rate to a below-market rate. The artificially low rates led to overinvestment in housing and other malinvestments. When the first indications of market trouble began back in August of 2007, instead of holding back and allowing bad decision-makers to suffer the consequences of their actions, the Federal Reserve took aggressive, inflationary action to ensure that large Wall Street firms would not lose money. It began by lowering the discount rates, the rates of interest charged to banks who borrow directly from the Fed, and lengthening the terms of such loans. This eliminated much of the stigma from discount window borrowing and enabled troubled banks to come to the Fed directly for funding, pay only a slightly higher interest rate but also secure these loans for a period longer than just overnight. money Bailing Out Banks 13 April 2008    Texas Straight Talk 13 April 2008 verse 6 ... Cached The net effect of all this new funding has been to pump hundreds of billions of dollars into the financial system and bail out banks whose poor decision making should have caused them to go out of business. Instead of being forced to learn their lesson, these poor-performing banks are being rewarded for their financial mismanagement, and the ultimate cost of this bailout will fall on the American taxpayers. Already this new money flowing into the system is spurring talk of the next speculative bubble, possibly this time in commodities. money The Double Trouble of Taxation 20 April 2008    Texas Straight Talk 20 April 2008 verse 2 ... Cached Taxes were on the forefront of many Americans’ minds this week as they scrambled to meet the April 15th deadline to file their returns. Tax policy in this country hurts taxpayers twice – once when they pay taxes, and then when the government spends the money. Americans are sick and tired of the financial burden and the endless forms to fill out. To add insult to injury, after collecting this money the government does some very detrimental things to the economy. money The Double Trouble of Taxation 20 April 2008    Texas Straight Talk 20 April 2008 verse 3 ... Cached The burden of complying with the income tax is tremendous. Since its inception in 1913, the tax code has gone from 400 pages to over 67,000. The Tax Foundation estimates that around $265 billion dollars and 6 billion hours are spent just on compliance. That expense amounts to about 22 cents of every dollar the IRS collects. Imagine the boon to the economy if we spent that time and money expanding our businesses and creating jobs! money The Double Trouble of Taxation 20 April 2008    Texas Straight Talk 20 April 2008 verse 4 ... Cached Aside from the direct loss of money and productivity, the funds from the income tax enable the government to do some very destructive things, such as vastly over-regulating economic activity, making it difficult to earn money in the first place. The federal government funds over 50 agencies, departments and commissions that formulate rules and regulations. These bureaucracies operate with little to no oversight from the people or Congress and generate around 4,000 new rules every year and operate at a cost of about 40 billion dollars. There are some 75,000 pages of regulations in the Federal Register that Americans are expected to know and abide by. Complying with these governmental regulations costs American businesses more than one trillion dollars per year, according to a study by Mark Crain for the Small Business Administration. This complicated system drives production to other countries and shrinks our job market here at home. money The Double Trouble of Taxation 20 April 2008    Texas Straight Talk 20 April 2008 verse 5 ... Cached Big government is destructive when it takes your money and when it spends it. There is no economic benefit to supporting a government sector as massive as ours. In fact, this country thrived for well over 100 years without an income tax. Today, if you took away the income tax, the government would still have revenue from other sources equal to total government spending in 1990, when government was still too big. $1.2 trillion should be more than enough to fund a government operating within its constitutional confines, and that is exactly what we need to get back to. money Big Government Responsible for High Gas Prices 04 May 2008    Texas Straight Talk 04 May 2008 verse 6 ... Cached The free market can meet the American people’s demand for a reliable supply of gasoline as long as government does not distort the market through excessive taxation and regulation. Therefore, Congress should lower prices gas prices by pursuing an agenda of low taxes, regulatory relief, and sound money by passing legislation such as my Affordable Gas Act. money The Economy: Another Casualty of War 18 May 2008    Texas Straight Talk 18 May 2008 verse 5 ... Cached The bottom line is that our dollar is falling, the economy is in rough shape, and government spending is wildly out of control. Congress argues over relatively minor details, instead of dramatically changing our flawed foreign policy. We need to bring our troops home, not only from Iraq and Afghanistan , but from South Korea , Germany , and the other 138 countries where we have troops stationed. Our foreign policy of interventionism is not only offensive to others, inviting further terrorist attacks, but it is ruining our economy as we tax, borrow and print the money to pay the bills of our empire. The economy and ultimately the American people suffer because Washington is refusing to adopt more sensible and constitutional policies. money Rising Energy Prices and the Falling Dollar 09 June 2008    Texas Straight Talk 09 June 2008 verse 3 ... Cached Part of the answer lies in understanding bubbles and monetary inflation, but especially the Federal Reserve System. The Federal Reserve is charged with controlling inflation through interest rate manipulation, however, many fail to realize that creating money, and therefore inflation, is really its only tool. When the Federal Reserve inflates the dollar as drastically as it has in the past few decades, the first users of the newly created money go in search of investments for their dollars. They must invest this money quickly and aggressively before it loses value. This causes certain sectors to expand beyond what would naturally occur in the free market. Eventually the sector overheats and the bubble bursts. Overinvestment in dotcoms eventually led to a collapse of the NASDAQ. Next we had the housing bubble, and now we are seeing the price of oil being bid up in the creation of another new bubble. Investors are now looking to commodities like oil, for stability and growth as they pull capital out of real estate. This increased demand for investment vehicles related to oil contributes to driving up the price of the actual product. money Rising Energy Prices and the Falling Dollar 09 June 2008    Texas Straight Talk 09 June 2008 verse 6 ... Cached Governments need to get out of the way and let the people get back to work so that we can get our economy back on stable footing. Our destructive regulatory environment, confiscatory tax policies, and managed, rather than free trade have chased many businesses overseas. The bottom line is average Americans are being seriously hurt by these flawed policies, and they are not getting good information about the true dynamics at work. The important thing now is to get the diagnosis absolutely correct so we can administer the appropriate treatment and move on to a healthier economic future. To do this it is absolutely necessary to address the subjects of central banking and fiat money. Texas Straight Talk from 20 December 1996 to 23 June 2008 (573 editions) are included in this Concordance. Texas Straight Talk after 23 June 2008 is in blog form on Rep. Paul’s Congressional website and is not included in this Concordance. Remember, not everything in the concordance is Ron Paul’s words. Some things he quoted, and he added some newspaper and magazine articles to the Congressional Record. Check the original speech to see. Home Page    Contents    Concordance   E-mail list.