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2008 Ron Paul Chapter 47

Not linked on Ron Paul’s Congressional website.

Congressional Record [.PDF]

23 July 2008

Mr. BACHUS. Mr. Speaker, at this time I yield 2 minutes to the gentleman from Texas (Mr. PAUL).

(Mr. PAUL asked and was given permission to revise and extend his remarks.)

2008 Ron Paul 47:1
Mr. PAUL. Mr. Speaker, if I had had a chance to name this bill, I might have suggested that we could call it the mother of all bailouts. But on second thought I decided that wouldn’t be appropriate because it isn’t nearly as big as the bailout that the Federal Reserve has been engaged in in this very industry.

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.

2008 Ron Paul 47:3
In 2001, I introduced legislation that would have removed the line of credit, which was only $2.5 billion, but the principle of a line of credit and this supposed guarantee to Fannie Mae and Freddie Mac, I saw as a great danger. Of course, $2.5 billion is nothing, and the prediction it would be much more when the time came is absolutely correct because now we are talking about hundreds of billions of dollars.

2008 Ron Paul 47:4
But today we have a bill before us that does a lot more than just bail out the mortgage company. I think there are some impositions in this bill that we ought to be concerned about. There is a Federal registry in here to register anybody in the broker industry. And if you work in the industry, you will be fingerprinted. Now, let me guarantee you one thing: we didn’t get into this crisis because the people who work in the mortgage industries weren’t fingerprinted. We got into this crisis because of a monetary system and a system of laws that encourage the very bubble that we are dealing with today. If we don’t deal with the creation of bubbles, you can’t solve the problem by more of the same thing. We created this problem with inflation; you can’t solve it with more inflation.

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