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U.S. Rep. Ron Paul credit Book of Ron Paul credit State Of The Republic 28 January 1998    1998 Ron Paul 2:24 The large majority of House Members claim they want our troops out of Bosnia. Yet the President gets all the funding he wants. The Members of Congress get credit at home for paying lip service to a U.S. policy of less intervention, while the majority continue to support the troops, the President, the military industrial complex, and the special interests who drive our foreign policy, demanding more funding while risking the lives, property, peace, and liberty of American citizens. credit State Of The Republic 28 January 1998    1998 Ron Paul 2:62 The international currency crisis: Congress lacks concern and understanding of the significance of the Asian currency crisis. Monetary policy has never excited many Members of the Committee on Banking, let alone other members of Congress. A handful of Members do consistently complain to the Chairman of the Federal Reserve, but inevitably it is to object to the high interest rates and not enough credit being available to either the poor or the rich beneficiaries of Central Bank credit largesse. credit State Of The Republic 28 January 1998    1998 Ron Paul 2:66 The genius of it all is that Federal Reserve credit expansion and its off-budget budgeting permits these funds to be spent without oversight. IMF appropriations are not even counted toward the deficit, and credit expansion is under complete control of the Federal Reserve. credit State Of The Republic 28 January 1998    1998 Ron Paul 2:100 Both types of welfare expenditures benefit from a monetary system that creates credit out of thin air in order to monetize congressional deficits when needed and manipulate interest rates downward to nonmarket levels to serve the interests of big borrowers and lenders. Federal Reserve policy is an essential element in serving the powerful special interests. Monetary mischief of this type will not likely be ended by congressional action, but will be eventually stopped by market forces, just as has recently occurred in the Far East. credit Millennium Bug 24 February 1998    1998 Ron Paul 13:4 James Mills, of NAFCU, testified before the House Committee on Banking and Financial Services, “Historically, the role of providing education and training is one best performed by the private sector, namely trade associations and industry-related organizations . . . Rather than require federal agencies to offer seminars, perhaps any legislative efforts should require federal agencies to participate in such programs or make it advisable and permissible to participate.” NAFCU believes that the focus of H.R. 3116 should be strictly limited to ensuring compliance. In its present form, H.R. 3116 contains a broad and permanent expansion of NCUA’s examination and regulatory authority . . . Legitimate questions may be raised as to whether, absent the year 2000 issue, NCUA, as a federal financial regulatory agency, should have the authority not just to examine but to actually regulate private business enterprises incorporated under the laws of various states. The authority given to NCUA in H.R. 3116, is not limited to the examination and regulation of credit unions, but would allow NCUA to examine and regulate third-party businesses, vendors and outside providers. Do the members of the Committee intend to give NCUA authority to regulate private entities?” credit 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? credit 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. credit On Regulating Credit Unions 1 April 1998    1998 Ron Paul 32:4 I think it is the wrong direction that we are going. I think the whole notion that we are going to have the Community Reinvestment Act applied to the credit unions is going in the wrong direction. This is a form of credit allocation and, actually, long term, will weaken the credit unions. credit On Regulating Credit Unions 1 April 1998    1998 Ron Paul 32:5 I would like to speak up for the credit unions and say this bill has been weakened to such a degree that they have opened up the doors, and down the road they are going to be treated like the banks, and down the road they will probably receive the taxation that banks have. credit On Regulating Credit Unions 1 April 1998    1998 Ron Paul 32:6 I resent the idea that the competitors and the small banks, who do not like the competition of the credit unions, they say, well, let us tax them and regulate them. So, in a way, we have accommodated the banks by adding the regulations onto the credit unions. credit Credit Union Membership Access Act 1 April 1998    1998 Ron Paul 33:1 Mr. PAUL. Mr. Speaker, since I was the first one in this Congress to step forward and introduce legislation affirming the NCUA’s position allowing multiple common bonds for credit unions and signed on as a cosponsor of H.R. 1151 as originally written, I feel that I am in a disagreement among friends. I must oppose this bill because of the new regulations it imposes on credit unions and does nothing to address the legitimate concerns of the banks. credit Credit Union Membership Access Act 1 April 1998    1998 Ron Paul 33:2 While I strongly support the expansion of the field of membership for credit unions, the new regulations imposed upon them demonstrate a decision to follow the wrong path to “level the playing field” with banks and other financial institutions. A better approach would have been to lead the congress towards less taxes and less regulation. H.R. 1151, The Credit Union Membership Access Act, as amended by the committee, follows a path of more regulations and leads toward higher taxes on credit unions while the Financial Freedom Act, H.R. 1121, which I introduced a year ago, lowers taxes and regulations on banks. While H.R. 1151 does not impose new, direct taxes on credit unions, I fear that that day is just around the corner. credit 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. credit Credit Union Membership Access Act 1 April 1998    1998 Ron Paul 33:5 These regulations, under which the credit unions will now suffer a greater burden with the passage of this bill, impose a disproportionate burden on smaller institutions. These increased, and unfairly imposed, regulations will stifle the possibility of new entrants into the financial sector and contribute to a consolidation and fewer market participants of the industry. As the introduction of new entrants into the market becomes more costly, smaller institutions will face a marginally increased burden and will be more likely to consolidate. “The basic conclusion is similar for all of the studies of economies of scale: Average compliance costs for regulations are substantially greater for banks at low levels of output than for banks at moderate or high levels of output,” the Staff Study concludes. credit Credit Union Membership Access Act 1 April 1998    1998 Ron Paul 33:7 The IBAA study identifies the Community Reinvestment Act as the most burdensome regulation with the estimated cost of complying with CRA exceeding the next most burdensome regulation by approximately $448 million or 77%. Respondents to the IBAA study rated the CRA as the least beneficial and useful of the thirteen regulatory areas surveyed. In short, this bill takes the most costly and least beneficial and useful regulation on banks and adds a similar, new regulation on credit unions. Reducing the most costly, and least beneficial and useful regulation on the banks would have been a better approach. credit 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. credit Credit Union Membership Access Act 1 April 1998    1998 Ron Paul 33:9 The unintended consequences of the passage of this bill, as written, will be to stifle the formation on new credit unions, consolidate current credit unions into larger ones better able to internalize the cost of the additional regulations, and lower productivity and economic growth due to the misallocation of credit. This increased burden must ultimately be passed on to the consumer. The increased costs on credit unions this bill imposes will lead to a reduction of access to credit unions, higher fees and higher rates. These provisions are anti-consumer. The marginal consumers, those who currently can only receive a loan from a credit union without the burden of CRA, are the ones who will suffer under the provision of this bill. I hope that the bill can be improved as the process continues and lead to less regulations and other taxes on banks rather than more regulations and other taxes on credit unions. credit 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. credit The Bubble 28 April 1998    1998 Ron Paul 39:4 Alan Greenspan took over the Fed a few months before the stock market crash of October, 1997. In the 10 years that Greenspan has headed the Fed, $2 trillion of new credit has been created as measured by M3. Banks threatened by bankruptcy in the early 1990s received generous assistance from the Fed policy of low interest rates and rapid credit expansion as a response to the recession of 1991. Fed fund rates were held at 3 percent for well over a year. This generous dose of Fed credit has fueled the 5-year superboom on Wall Street. credit 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. credit The Bubble 28 April 1998    1998 Ron Paul 39:19 PROBLEMS AND VICTIMS The basic cause of any financial bubble is the artificial creation of credit by a central bank (in this case our Federal Reserve). Artificially creating credit causes the currency to depreciate in value over time. It is important to understand the predictable economic problems that result from a depreciating currency: credit The Bubble 28 April 1998    1998 Ron Paul 39:23 4. Prices indeed do go up, although which prices will go up is unpredictable, and the CPI and PPI can never be a dependable measurement of a monetary policy driven by loose credit. credit The Bubble 28 April 1998    1998 Ron Paul 39:36 THE END IN SIGHT? Reassurance that all is well is a strategy found at the end of a boom cycle. Government revenues are higher than anticipated, and many are feeling richer than they are. The more inflated the stock market is as a consequence of credit creation, the less, reliable these markets are at predicting future economic events. Stock markets can be good predictors of the future, but the more speculative they become, the less likely it is the markets will reveal what the world will be like next year. credit The Bubble 28 April 1998    1998 Ron Paul 39:40 Central bankers have also become more sophisticated in the balancing act between inflation and deflation. They are great technicians and are quite capable of interpreting events and striking a balance between these two horrors. This does not cancel out the basic flaw of a fiat currency; central bankers cannot replace the marketplace for determining interest rates and the proper amount of credit the economy needs. credit The Bubble 28 April 1998    1998 Ron Paul 39:46 It must be understood that politicians and the pressure of the special interests in Washington demand that the current policies of spending, deficits, artificially low interest rates and easy credit will not change. It took the complete demise of the Soviet-Communist system before change came there. But be forewarned: change came with a big economic bang not a whimper. Fortunately that event occurred without an armed revolution . . . so far. The amazingly sudden, economic events occurring in East Asia could still lead to some serious social and military disturbances in that region. credit The Bubble 28 April 1998    1998 Ron Paul 39:55 The debate so often seems only to be who should get the expanded credit, the business-banking community or the welfare recipients who will receive it indirectly through the monetization of an ever-expanding government deficit. In Washington there is a craving for power and influence, and this motivates some a lot more than their public display of concern for helping the poor. credit The Bubble 28 April 1998    1998 Ron Paul 39:57 With daily pronouncements that inflation is dead, the stage is set for unlimited credit expansion whenever it becomes necessary. Just as deficit spending and massive budgets will continue, we can expect the falling value of the dollar, long term, to further undermine the economic and political stability of this country and the world. credit Amendment Number 3 Offered By Mr. Paul 29 April 1998    1998 Ron Paul 42:15 In the Privacy Act of 1974, in the findings, they made a comment which I think is very important, and this is in 1974 when it was not really bad. “The Congress finds the opportunities for an individual to secure employment, insurance and credit and his right to due process and other legal protections are endangered by the misuse of certain information systems.” credit Higher Education Amendments of 1998 6 May 1998    1998 Ron Paul 49:8 Second, and more importantly, the 10th amendment does not prohibit federal control of education without an offset, it prohibits all programs that centralize education regardless of how they are funded. Savings from defunded education programs should be used for education tax cuts and credits, not poured into new, unconstitutional programs. credit National Police State 12 May 1998    1998 Ron Paul 50:8 The argument which springs from the criticism of a federalized criminal code and a federal police force is that states may be less effective than a centralized federal government in dealing with those who leave one state jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of state sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow states to exact judgments from those who violate their state laws. The Constitution even allows the federal government to legislatively preserve the procedural mechanisms which allow states to enforce their substantive laws without the federal government imposing its substantive edicts on the states. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one state to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon states in working with one another than relying on a national, unified police force. At the same time, there is a greater cost to centralization of police power. credit FDIC Problem 13 May 1998    1998 Ron Paul 51:6 We have to think about how we got here. In the 1920s, the Federal Reserve created a lot of credit. They created a boom and a booming stock market and good times. Then the Federal Reserve raised the interest rates and there was a stock market crash and a depression. And out of the depression came the desire to regulate banking and commerce. That caused the depression, which was erroneous, because the cause of the depression was excessive credit and then a deflated bubble, which should be all laid at the doorstep of the Federal Reserve. credit 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. credit The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:6 CHARACTERISTICS OF THE CORRECTION One important characteristic of an economic correction, after a period of inflation (credit expansion) is its unpredictable nature because subjective reactions of all individuals concerned influence both political and economic events. Therefore, it’s virtually impossible to predict when and how the bubble will burst. It’s duration likewise is not scientifically ascertainable. credit The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:17 REFUSAL In the approximately 8 months since the crisis hit Indonesia there has been no serious look at the underlying cause — monetary inflation brought about by a central bank. Nor has any serious thought gone into the internationalization of credit as United States exports of billions of dollars, and thus our own inflation, to most nations of the world who hold these dollars in reserve and use them to further inflate their own currencies. Our huge negative trade balance and foreign debt is not considered by conventional wisdom to be relevant to the Asian currency problems, yet undoubtedly it is. True reform to deal with the growing worldwide crisis can only be accomplished by us first recognizing the underlying economic errors that caused the current crisis. credit 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. credit 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. credit The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:6 CHARACTERISTICS OF THE CORRECTION One important characteristic of an economic correction, after a period of inflation (credit expansion), is its unpredictable nature because subjective reactions of all individuals concerned influence both political and economic events. Therefore, it’s virtually impossible to predict when and how the bubble will burst. Its duration likewise is not scientifically ascertainable. credit The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:17 REFUSAL In the approximately eight months since the crisis hit Indonesia, there has been no serious look at the underlying cause: monetary inflation brought about by a central bank. Nor has any serious thought gone into the internationalization of credit as United States exports of billions of dollars, and thus our own inflation, to most nations of the world which hold these dollars in reserve and use them to further inflate their own currencies. Our huge negative trade balance and foreign debt is not considered by conventional wisdom to be relevant to the Asian currency problems, yet undoubtedly it is. True reform to deal with the growing worldwide crisis can only be accomplished by us first recognizing the underlying economic errors that caused the current crisis. credit 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 credit 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. credit Child Protection and Sexual Predator Punishment Act 11 June 1998    1998 Ron Paul 58:8 Some will argue that federal legislation is necessary because communications cross state lines. Fortunately, the Constitution provides for the procedural means for preserving the integrity of state sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow states to exact judgments from those who violate their state laws. The Constitution even allows the federal government to legislatively preserve the procedural mechanisms which allow states to enforce their substantive laws without the federal government imposing its substantive edicts on the states. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one state to another and in 1783 Congress passed an act which did exactly this. credit Individuals with Disabilities Act 16 June 1998    1998 Ron Paul 60:3 Rather than increasing federal spending, Congress should focus on returning control over education to the American people by enacting the Family Education Freedom Act (H.R. 1816), which provides parents with a $3,000 per child tax credit to pay for K–12 education expenses. Passage of this act would especially benefit parents whose children have learning disabilities as those parents have the greatest need to devote a large portion of their income toward their child’s education. credit 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! credit Every Currency Crumbles 24 June 1998    1998 Ron Paul 65:16 After the 1994 crisis involving the Mexican peso, the world’s financial establishment vowed to stave off a recurrence. Even as the experts delivered their speeches, however, Asian banks were overlending and Asian businesses were overborrowing; the credit-cum-currency eruption followed in short order. Naturally, officials and editorialists are now calling for even better fire prevention systems. credit Child Custody Protection Act 15 July 1998    1998 Ron Paul 77:12 The argument which springs from the criticism of a federalized criminal code and a federal police force is that states may be less effective than a centralized federal government in dealing with those who leave one state jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of state sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow states to exact judgments from those who violate their state laws. The Constitution even allows the federal government to legislatively preserve the procedural mechanisms which allow states to enforce their substantive laws without the federal government imposing its substantive edicts on the states. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one state to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon states in working with one another rather than relying on a national, unified police force. At the same time, there is a greater cost to centralization of police power. credit Exchange Stabilization Fund 16 July 1998    1998 Ron Paul 79:8 Yes, we can get into the currency markets to the tune of billions of dollars. They say, well, there is only 38; they might not be able to do any mischief. But my strong suspicion is that the line of credit to the Federal Reserve is endless in the time of crisis. credit Women’s, Infant, and Children’s Program 20 July 1998    1998 Ron Paul 81:10 The best way to help the poor is to dramatically cut taxes thus allowing individuals to devote more of their own resources to those charitable causes which better address genuine need. I am a cosponsor of HR 1338, which raises the charitable deduction and I believe Congress should make awakening the charitable impulses of the American people by reducing their tax burden one of its top priorities. In fact, Congress should seriously consider enacting a dollar-per-dollar tax credit for donations to the needy. This would do more to truly help the disadvantaged than a tenfold increase in spending on the programs in HR 3874. credit Banking Regulations 4 August 1998    1998 Ron Paul 93:4 For this reason, I argued the case that instead of equity being achieved by taxing credit unions or making it more difficult for them to survive with more regulations, the best thing we should do now is talk about at least the smaller banks that compete with credit unions, to lower their taxes, get rid of their taxes and get rid of the regulation. credit Banking Regulations 4 August 1998    1998 Ron Paul 93:6 We should work to lower taxes, not only on the credit unions, and lower regulations. We must do the same thing for the banks. We must lower the taxes and get rid of these regulations in order for the banks to remain solvent and that we do not have to bail the banks out like we have in the past. But the regulations do not achieve this. credit Banking Regulations 4 August 1998    1998 Ron Paul 93:8 Since I strongly support the expansion of the field of membership for credit unions and was the first one in this congress to introduce multiple common bonds for credit unions in the Financial Freedom Act, H.R. 1121, I am happy to speak in support of the passage of H.R. 1151 here today. Having argued forcefully against the imposition of new regulations imposed upon credit unions, I congratulate the senate for not increasing the regulatory burden on credit unions in an attempt to “level the playing field” with banks and other financial institutions. credit Banking Regulations 4 August 1998    1998 Ron Paul 93:9 A better approach is to lead the congress toward lower taxes and less regulation — on credit unions, banks and other financial institutions. H.R. 1151, The Credit Union Membership Access Act, as amended by the senate, takes us one step in the right direction of less government regulation restricting individual choice. We must continue on the path of fewer regulations and lower taxes. credit Banking Regulations 4 August 1998    1998 Ron Paul 93:14 Let’s all work together now, credit unions, banks and other financial institutions, to reduce their regulatory burden. Credit unions have demonstrated that fewer regulations contribute to lower costs passed on to consumers and greater consumer choice. Let’s extend that model for banks and other financial institutions. credit English Language Fluency Act 10 September 1998    1998 Ron Paul 96:5 In order to restore parental control of education I have introduced the Family Education Freedom Act (H.R. 1816), which provides parents with a $3,000 per child tax credit to pay for elementary and secondary education expenses. This bill places parents back in charge and is thus the most effective education reform bill introduced in this Congress. credit Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:2 All financial bubbles are currency driven. When central banks generously create credit out of thin air speculation, debt, and malinvestment result. Early on the stimulative effect is welcomed and applauded as the boom part of the cycle progresses. But illusions of wealth brought about by artificial wealth creation end when the predictable correction arrives. Then we see the panic and disappointment as wealth is wiped off the books. credit 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. credit 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. credit Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:9 The Federal Reserve hints at lower interest rates which means more easy credit. This may be construed as a positive for the market, but it only perpetuates a flawed monetary system. credit 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. credit Dollars To The Classroom Act 18 September 1998    1998 Ron Paul 101:14 Rather than shifting responsibility for the management of federal funds, Congress should defund all unconstitutional programs and dramatically cut taxes imposed upon the American people, thus enabling American families to devote more of their resources to education. I have introduced a bill, the Family Education Freedom Act (H.R. 1816) to provide parents with a $3,000 per child tax credit for education expenses. This bill directly empowers parents, not bureaucrats or state officials, to control education and is the most important education reform idea introduced in this Congress. credit 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. credit Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:8 The argument might go, yes, indeed, the financial condition of the world is rather severe and we should do something. But the financial condition of the world is in trouble because we have allowed our Federal Reserve System, in deep secrecy, to create credit out of thin air and contribute to the bubble that exists. Where else could the credit come from for a company like Long-Term Capital Management? Where could they get this credit, other than having it created and encouraged by a monetary system engineered by our own Federal Reserve System? credit Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:9 We will have to do something about what is happening in the world today, but the danger that I see is that the movement is toward this worldwide Federal Reserve System or worldwide central bank. It is more of the same problem. If we have a fiat monetary system, not only in the United States but throughout the world, which has created the financial bubble, what makes anybody think that creating more credit out of thin air will solve these problems? It will make the problems much worse. credit 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. credit Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:12 When we create credit to bail out other currencies or other economies, yes, this tends to help. But the burden eventually falls on the American taxpayer, and it will fall on the value of the dollar. Already we have seen some signs that the dollar is not quite as strong as it should be if we are the haven of last resort as foreign capital comes into the United States. The dollar in relationship to the Swiss frank has been down 10 percent in the last two months. In a basket of currencies, 15 currencies by J.P. Morgan, it is down 5 percent in one month. credit 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. credit World Financial Markets 1 October 1998    1998 Ron Paul 104:1 Mr. PAUL. Mr. Speaker, the world financial markets have been in chaos now for nearly a year and a half. The problem surrounding long-term capital investment is only one more item to add to the list. The entire process represents the unwinding of speculative investments encouraged by years of easy credit. By the way, Long Term Credit Management is not even an American corporation. It is registered in the Cayman Islands, I am sure for tax purposes. credit World Financial Markets 1 October 1998    1998 Ron Paul 104:2 The mess we are witnessing in the world today was a predictable event. Artificially low interest rates and easy credit causes malinvestment, overcapacity, excessive borrowing and uncontrolled speculation. credit World Financial Markets 1 October 1998    1998 Ron Paul 104:7 More Federal Reserve fixing of interest rates and credit expansion can hardly solve our problems when this has been precisely the cause of the mess in which we currently find ourselves. credit World Financial Markets 1 October 1998    1998 Ron Paul 104:9 A Federal Reserve orchestrated and arm-twisting bailout of LTCM associated with less than a coincidentally announced credit expansion only puts long-term pressure on the dollar. All Americans suffer when the dollar is debased. Congress’s responsibility is to the dollar and not foreign currencies, not foreign economies or international hedge funds which get in over their heads. credit 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. credit Hedge Fund Bailout 2 October 1998    1998 Ron Paul 105:1 Mr. PAUL. Mr. Speaker, the Federal Reserve orchestrated bailout of the hedge fund Long-Term Capital Management LP raises serious policy questions. At one point, the notional value of the Cayman Island-registered fund’s derivatives totalled about $1.2 trillion. We should look seriously at this issue because of the taxpayer-backed liability concerns raised by the involvement of an agency with the full faith and credit of the U.S. government. The state of Michigan has taken a constructive first step regarding the public policy concerns of derivatives. I urge us to consider the wisdom of the State Representative Greg Kaza as we debate this issue. credit New Global Economic Plan 9 October 1998    1998 Ron Paul 117:2 The world economies have been built on generous credit expansion with each country inflating their currencies at different rates. Additionally, each country has had different political, tax, and regulatory policies leading to various degrees of trust and stability. Economies that have “enjoyed” inflationary booms, by their very nature, must undergo a market correction. The market demands deflation of all excesses, while the politicians and special interests agitate for continued credit inflation. Under these circumstances, financial assets may deflate in price but monetary inflation continues and the currency is further depreciated thus putting serious pressure on the dollar; as in the case of the United States. credit 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. credit New Global Economic Plan 9 October 1998    1998 Ron Paul 117:9 Second, it calls for more credit expansion by the richer nations, more loan guarantees, and export-import bank credits and, indirectly, by providing credit to the Exchange Stabilization Fund and possibly to the Bank International Settlements. credit 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. credit Monetary Policy 16 October 1998    1998 Ron Paul 120:9 That is what we are witnessing today. The world-wide fragile financial system is now collapsing and tragically the only cry is for more credit inflation because the cause of our dilemma is not understood. Attempts at credit stimulation with interest rates below 1 percent is doing nothing for Japan’s economy and for good reasons. it is the wrong treatment for the wrong diagnosis. credit 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. credit Education Debate 16 October 1998    1998 Ron Paul 121:3 American children deserve nothing less than the best educational opportunities, not warmed-over versions of the disastrous educational policies of the past. That is why I introduced H.R. 1816, the Family Education Freedom Act. This bill would give parents an inflation-adjusted $3,000 per annum tax credit, per child for educational expenses. The credit applies to those in public, private, parochial, or home schooling. credit Education Debate 16 October 1998    1998 Ron Paul 121:4 This bill is the largest tax credit for education in the history of our great Republic and it returns the fundamental principal of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty.” Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free market maximizes human happiness. credit Education Debate 16 October 1998    1998 Ron Paul 121:6 Of course I applaud all efforts which move in this direction. the Gingrich/Coverdell education tax cut, The Granger/Dunn bill, and, yes, President Clinton’s college tax credits are good first steps in the direction I advocate. However, Congress must act boldly, we can ill afford to waste another year without a revolutionary change in our policy. I believe my bill sparks this revolution and I am disappointed that the leadership of this Congress chose to ignore this fundamental reform and instead focused on reauthorizing great society programs, creating new Federal education programs (such as those contained in the Reading Excellence Act and the four new Federal programs created by the Higher Education Act), and promoting the pseudo-federalism of block grants. credit Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:1 Mr. PAUL. Madam Speaker, I have great concern for the future of the American Republic. Many Americans argue that we are now enjoying the best of times. Others concern themselves with problems less visible but smouldering beneath the surface. Those who are content point out that the economy is booming, we are not at war, crime rates are down, and the majority of Americans feel safe and secure in their homes and community. Others point out that economic booms, when brought about artificially with credit creation, are destined to end with a bang. The absence of overt war does not negate the fact that tens of thousands of American troops are scattered around the world in the middle of ancient fights not likely to be settled by our meddling and may escalate at any time. credit Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:68 Credit expansion is the root cause of all financial bubbles. Fiat monetary systems inevitably cause unsustainable economic expansion that results in a recession and/or depression. A correction always results, with the degree and duration being determined by government fiscal policy and central bank monetary policy. If wages and prices are not allowed to adjust and the correction is thwarted by invigorated monetary expansion, new and sustained economic growth will be delayed or prevented. Financial dislocation caused by central banks in the various countries will differ from one to another due to political perceptions, military considerations, and reserve currency status. credit Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:71 The Federal Reserve Board Chairman Alan Greenspan, when the Dow was at approximately 6,500, cautioned the Nation about irrational exuberance and for a day or two the markets were subdued. But while openly worrying about an unsustained stock market boom, he nevertheless accelerated the very credit expansion that threatened the market and created the irrational exuberance. credit 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. credit Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:73 When the foreign registered corporation long term capital management was threatened in 1998, that is, the market demanding a logical correction to its own exuberance with its massive $1 trillion speculative investment in the derivatives market, Greenspan and company quickly came to its rescue with an even greater acceleration of credit expansion. credit Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:75 A hint of what can happen when the world gets tired of holding too many of our dollars was experienced in the dollar crisis of 1979 and 1980, and we saw at that time interest rates over 21 percent. There is abundant evidence around warning us of the impending danger. According to Federal Reserve statistics, household debt reached 81 percent of personal income in the second quarter of 1998. For 20 years prior to 1985, household debt averaged around 50 percent of personal income. Between 1985 and 1998, due to generous Federal Reserve credit, competent American consumers increased this to 81 percent and now it is even higher. At the same time, our savings rate has dropped to zero percent. credit Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:76 The conviction that stock prices will continue to provide extra cash and confidence in the economy has fueled wild consumer spending and personal debt expansion. The home refinance index between 1997 and 1999 increased 700 percent. Secondary mortgages are now offered up to 120 percent of a home’s equity, with many of these funds finding their way into the stock market. Generous credit and quasi-government agencies make these mortgage markets robust, but a correction will come when it is realized that the builders and the lenders have gotten ahead of themselves. credit 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. credit Introducing The Education Improvement Tax Cut Act 2 March 1999    1999 Ron Paul 10:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Education Improvement Tax Cut Act of 1999. This act, a companion to my Family Education Freedom Act, takes a further step toward returning control over education resources to private citizens by providing a $3,000 tax credit for donations to scholarship funds to enable low-income children to attend private schools. It also encourages private citizens to devote more of their resources to helping public schools, by providing a $3,000 tax credit for cash or in-kind donations to public schools to support academic or extra curricular programs. credit Introducing The Education Improvement Tax Cut Act 2 March 1999    1999 Ron Paul 10:4 Returning control over the education dollar for tax credits for parents and for other concerned citizens returns control over the ends of education policy to local communities. People in one community may use this credit to purchase computers, while children in another community may, at last, have access to a quality music program because of community leaders who took advantage of the tax credit contained in this bill. credit Introducing The Education Improvement Tax Cut Act 2 March 1999    1999 Ron Paul 10:5 Children in some communities may benefit most from the opportunity to attend private, parochial, or other religious schools. One of the most encouraging trends in education has been the establishment of private scholarship programs. These scholarship funds use voluntary contributions to open the doors of quality private schools to low-income children. By providing a tax credit for donations to these programs, Congress can widen the educational opportunities and increase the quality of education for all children. Furthermore, privately-funded scholarships raise none of the concerns of state entanglement raised by publicly-funded vouchers. credit Introducing The Family Education Freedom Act 2 March 1999    1999 Ron Paul 11:1 Mr. PAUL. Mr. Speaker, I rise today to introduce the Family Education Freedom Act of 1999, a bill to empower millions of working- and middle-class Americans to choose a non-public education for their children, as well as making it easier for parents to actively participate in improving public schools. The Family Education Freedom Act accomplishes its goals by allowing American parents a tax credit of up to $3,000 for the expenses incurred in sending their child to private, public, parochial, other religious school, or for home schooling their children. credit Introducing The Family Education Freedom Act 2 March 1999    1999 Ron Paul 11:4 Loss of control is a key reason why so many of America’s parents express dissatisfaction with the educational system. According to a recent study by The Polling Company, over 70% of all Americans support education tax credits! This is just one of numerous studies and public opinion polls showing that Americans want Congress to get the federal bureaucracy out of the schoolroom and give parents more control over their children’s education. credit Introducing The Family Education Freedom Act 2 March 1999    1999 Ron Paul 11:6 The $3,000 tax credit will make a better education affordable for millions of parents. Mr. Speaker, many parents who would choose to send their children to private, religious, or parochial schools are unable to afford the tuition, in large part because of the enormous tax burden imposed on the American family by Washington. credit Introducing The Family Education Freedom Act 2 March 1999    1999 Ron Paul 11:7 The Family Education Freedom Act also benefits parents who choose to send their children to public schools. Although public schools are traditionally financed through local taxes, increasingly, parents who wish their children to receive a quality education may wish to use their credit to improve their schools by helping financing the purchase of educational tools such as computers or extra-curricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services for their children. credit Introducing The Teacher Tax Cut Act 2 March 1999    1999 Ron Paul 12:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Teacher Tax Cut Act. This bill provides every teacher in America with a $1,000 tax credit, thus raising every teacher’s take-home pay without increasing federal spending. Passage of this bill is a major first step toward treating those who have dedicated their lives to educating America’s children with the respect they deserve. Compared to other professionals teachers are underappreciated and underpaid. This must change if America is to have the finest education system in the world! credit Introducing The Teacher Tax Cut Act 2 March 1999    1999 Ron Paul 12:3 Since America’s teachers are underpaid because they are overtaxed, the best way to raise teacher take-home pay is to reduce their taxes. Simply by raising teacher’s take-home pay via a $1,000 tax credit we can accomplish a number of important things. First, we show a true commitment to education. We also let America’s teachers know that the American people and the Congress respect their work. Finally, and perhaps most importantly, by raising teacher take-home pay, the Teacher Tax Cut Act encourages high-quality professionals to enter, and remain in, the teaching profession. credit Opposing Authorization for Kosovo Intervention 11 March 1999    1999 Ron Paul 17:3 Since 1973, since the War Powers Resolution was passed, we have further undermined the authority of the Congress and delivered more authority to the President because the resolution essentially has given the President more power to wage war up to 90 days without the Congress granting authority. It is to our credit at least that we are bringing this matter up at this particular time. credit Individuals with Disabilities Act (IDEA) 4 May 1999    1999 Ron Paul 36:4 Rather than increasing federal spending, Congress should focus on returning control over education to the American people by enacting the Family Education Freedom Act (H.R. 935), which provides parents with a $3,000 per child tax credit to pay for K–12 education expenses. Passage of this act would especially benefit parents whose children have learning disabilities as those parents have the greatest need to devote a large portion of their income toward their child’s education. credit Tribute To Teachers 6 May 1999    1999 Ron Paul 44:2 I have also introduced the Teacher Tax Cut Act (HR 937) which provides every teacher in America with a $1,000 tax credit. The Teacher Tax Cut Act thus increases teachers’ salaries without raising federal expenditures. It lets America’s teachers know that the American people and the Congress respect their work. Finally, and perhaps most importantly, by raising teacher take-home pay, the Teacher Tax Cut Act encourages high-quality people to enter, and remain in, the teaching profession. credit Tribute To Teachers 6 May 1999    1999 Ron Paul 44:3 Mr. Speaker, these two bills send a strong signal to America’s teachers that we in Congress are determined to encourage good people to enter and remain in the teaching profession and that we want teachers to be treated as professionals, not as Education Department functionaries. I urge my colleagues to support my legislation to prohibit the use of federal funds for national teacher testing and to give America’s teachers a $1,000 tax credit. credit Child Custody Protection Act 30 June 1999    1999 Ron Paul 69:7 The argument which springs from the criticism of a federalized criminal code and a federal police force is that states may be less effective than a centralized federal government in dealing with those who leave one state jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of state sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow states to exact judgments from those who violate their state laws. The Constitution even allows the federal government to legislatively preserve the procedural mechanisms which allow states to enforce their substantive laws without the federal government imposing its substantive edicts on the states. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one state to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon states in working with one another rather than relying on a national, unified police force. At the same time, there is a greater cost to centralization of police power. credit Teacher Empowerment Act 20 July 1999    1999 Ron Paul 81:9 In order to put the American people back in charge of education, I have introduced the Family Education Freedom Act (H.R. 935) which provides parents with a $3,000 tax credit for K–12 education expenses and the Education Improvement Tax Cut Act (H.R. 936), which provides all citizens with a $3,000 tax credit for contributions to K–12 scholarships and for cash or in-kind donations to schools. I have also introduced the Teacher Tax Cut Act, which encourages good people to enter and remain in the teaching profession by providing teachers with a $1,000 tax credit. By returning control of the education dollar to parents and concerned citizens, my education package does more to improve education quality than any other proposal in Congress. credit Unborn Victims Of Violence Act 30 September 1999    1999 Ron Paul 102:20 Occasionally the argument is put forth that states may be less effective than a centralized federal government in dealing with those who leave one state jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of state sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow states to exact judgments from those who violate their state laws. The Constitution even allows the federal government to legislatively preserve the procedural mechanisms which allow states to enforce their substantive laws without the federal government imposing its substantive edicts on the states. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one state to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon states in working with one another rather than relying on a national, unified police force. At the same time, there is a greater cost to centralization of a police power. credit Elementary and Secondary Education Act (SEA) 21 October 1999    1999 Ron Paul 108:9 Fortunately there is an alternative educational policy to the one before us today that respects the Constitution and improves education by restoring true accountability to America’s education system. Returning real control to the American people by returning direct control of the education dollars to America’s parents and concerned citizens is the only proper solution. This is precisely why I have introduced the Family Education Freedom Act (HR 935). The Family Education Freedom Act provides parents with a $3,000 per child tax credit for the K–12 education expenses. I have also introduced the Education Tax Credit Act (HR 936), which provides a $3,000 tax credit for cash contributions to scholarships as well as any cash and in-kind contribution to public, private, or religious schools. credit Academic Achievement for All Students Freedom and Accountability Act (STRAIGHT “A’s”) 21 October 1999    1999 Ron Paul 109:6 In order to provide parents with the means to hold schools accountable, I have introduced the Family Education Freedom Act (H.R. 935). The Family Education Freedom Act restores parental control over the classroom by providing American parents a tax credit of up to $3,000 for the expenses incurred in sending their child to private, public, parochial, other religious school, or for home schooling their children. credit Academic Achievement for All Students Freedom and Accountability Act (STRAIGHT “A’s”) 21 October 1999    1999 Ron Paul 109:8 When parents control the education dollar, schools must be responsive to parental demands that their children receive first-class educations, otherwise, parents will find alternative means to educate their children. Furthermore, parents whose children are in public schools may use their credit to improve their schools by helping to finance the purchase of educational tools such as computers or extracurricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services for their children. credit 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. credit 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. credit A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:20 Government statistics are continuously reaffirming our great prosperity with evidence of high and rising wages, no inflation, and high consumer confidence and spending. The U.S. Government still enjoys good credit and a strong currency in relationship to most other currencies of the world. We have no trouble financing our public nor private debt. Housing markets are booming and interest rates remain reasonable by modern day standards. Unemployment is low. credit 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. credit A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:83 Government housing programs are no more successful than the Federal Government’s medical and education programs. In the early part of this century, government housing was virtually unheard of. Now the HUD budget commands over $30 billion each year and increases every year. Finances of mortgages through the Federal Home Loan Bank, the largest Federal Government borrower, is the key financial institution pumping in hundreds of billions of dollars of credit into the housing market, making things worse. The Federal Reserve has now started to use home mortgage securities for monetizing debt. Public housing has a reputation for being a refuge for drugs, crimes and filth, with the projects being torn down as routinely as they are built. There is every indication that this entitlement will continue to expand in size regardless of its failures. Token local control over these expenditures will do nothing to solve the problem. credit A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:98 The reasons for rejecting gold and promoting paper are not mysterious, since quite a few special interests benefit. Deficit financing is much more difficult when there is no Central Bank available to monetize government debt. This gives license to politicians to spend lavishly on the projects that are most likely to get them reelected. War is more difficult to pursue if government has to borrow or tax the people for its financing. The Federal Reserve’s ability to create credit out of thin air to pay the bills run up by Congress establishes a symbiosis that is easy for the politician to love. credit 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. credit A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:101 But the costs are many and the dangers are real. Because of easy credit throughout this century we have found out that financing war was easier than if taxes had to be raised. The many wars we have fought and the continuous military confrontations in smaller wars since Vietnam have made the 20th Century a bloody century. It is most likely that we would have pursued a less militaristic foreign policy if financing it had been more difficult. credit A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:111 There was a good reason the Federal Reserve rushed to rescue long-term capital management with a multibillion dollar bailout: It was unadulterated fear that the big correction was about to begin. Up until now, feeding the credit bubble with even more credit has worked, and is the only tool they have to fight the business cycle, but eventually control will be lost. credit A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:11 Bailing out foreign governments, financial corporations and huge banks can all be achieved without congressional approval. One hundred years ago when we had a gold standard, credit could not be created out of thin air, and, because a much more limited government philosophy prevailed, this could not have been possible. Today it is hard to even document what goes on, let alone expect Congress to control it. credit A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:119 4. Government education has clearly failed. We must guarantee the right of families to home school or send their kids to private schools and help them with tax credits. credit ON INTRODUCTION OF THE PHARMACEUTICAL FREEDOM ACT OF 2000 February 10, 2000    2000 Ron Paul 6:2 * The first provision of my legislation provides seniors a tax credit equal to 80 percent of their prescription drug costs. As many of my colleagues have pointed out, our nation’s seniors are struggling to afford the prescription drugs they need in order to maintain an active and healthy lifestyle. Yet, the Federal Government continues to impose taxes on Social Security benefits and limits senior citizens’ ability to earn additional income by reducing Social Security benefits if a senior exceeds the ‘earnings limitation.’ Meanwhile, Congress continually raids the Social Security trust fund to finance unconstitutional programs! It is long past time for Congress to choose between helping seniors afford medicine or using the Social Security trust fund as a slush fund for big government and pork-barrel spending. credit ON INTRODUCTION OF THE PHARMACEUTICAL FREEDOM ACT OF 2000 February 10, 2000    2000 Ron Paul 6:3 * Mr. Speaker, I do wish to clarify that this tax credit is intended to supplement the efforts to reform and strengthen the Medicare system to ensure seniors have the ability to use Medicare funds to purchase prescription drugs. I am a strong supporter of strengthening the Medicare system to allow for more choice and consumer control, including structural reforms that will allow seniors to use Medicare funds to cover the costs of prescription drugs. credit REVIEW ARTICLE ON ‘NEW MATH’ February 10, 2000    2000 Ron Paul 7:3 * The solution to America’s education crisis lies in returning to the Constitution and restoring parental control. In order to restore true parental control of education, I have introduced the Family Education Freedom Act (HR 935). This bill would give parents a $3,000 per year tax credit for each child’s education related expenses. Unlike other so-called ‘reform’ proposals, my bill would allow parents considerably more freedom in determining how to educate their children. It would also be free of guidelines and restrictions that only dilute the actual number of dollars spent directly on a child. credit MINIMUM WAGE INCREASE ACT March 9, 2000    2000 Ron Paul 15:6 * Because one of the most important factors in getting a good job is a good education, Congress should also strengthen the education system by returning control over the education dollar to the American people. A good place to start is with the Family Education Freedom Act (H.R. 935), which provides parents with a $3,000 per child tax credit for K-12 education expenses. I have also introduced the Education Improvement Tax Cut (H.R. 936), which provides a tax credit of up to $3,000 for donations to private school scholarships or for cash or in-kind contributions to public schools. credit MINIMUM WAGE INCREASE ACT March 9, 2000    2000 Ron Paul 15:7 * I am also cosponsoring the Make College Affordable Act (H.R. 2750), which makes college tuition tax deductible for middle-and-working class Americans, as well as several pieces of legislation to provide increased tax deductions and credits for education savings accounts for both higher education and K-12. In addition, I am cosponsoring several pieces of legislation, such as H.R. 1824 and H.R. 838, to provide tax credits for employers who provide training for their employees. credit PRAISING PARENTS AND TEACHERS DURING TEXAS PUBLIC SCHOOLS WEEK March 9, 2000    2000 Ron Paul 16:4 * In order to give control of education back to the people, I have introduced the “Family Education Freedom Act” (HR 935). This bill provides parents with a $3,000 per-child tax credit for K-12 education expenses. credit PRAISING PARENTS AND TEACHERS DURING TEXAS PUBLIC SCHOOLS WEEK March 9, 2000    2000 Ron Paul 16:6 * The “Family Education Freedom Act” will help parents who send their children to public schools strengthen their child’s public education. Parents may use the credit to improve schools by helping to finance the purchase of education tools such as computers or extracurricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services for their children. credit 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! credit PRAISING PARENTS AND TEACHERS DURING TEXAS PUBLIC SCHOOLS WEEK March 9, 2000    2000 Ron Paul 16:8 * Since America’s teachers are underpaid because they are overtaxed, the best way to raise teacher take-home pay is to reduce their taxes. Raising teachers’ take-home pay via a $1,000 tax credit lets teachers know the American people and the Congress respect their work and encourages high-quality people to enter, and remain in, the teaching profession. credit PRAISING PARENTS AND TEACHERS DURING TEXAS PUBLIC SCHOOLS WEEK March 9, 2000    2000 Ron Paul 16:9 * I have also introduced the “Education Improvement Tax Cut” (HR 936), which provides a $3,000 tax credit for cash or in-kind donations to public schools to support academic or extracurricular programs. This legislation encourages local citizens and community leaders to help strengthen local public schools. The “Education Improvement Tax Cut Act” also insures that education funding matches the needs of individual communities. People in one community may use this credit to purchase computers, while children in another community may, at last, have access to a quality music program because of community leaders who took advantage of the tax credit contained in this bill. credit TEXAS HOME SCHOOL APPRECIATION WEEK May 4, 2000    2000 Ron Paul 32:5 * In order to help home schoolers, and all parents, devote more of their resources to their children’s education, I have introduced the Family Education Freedom Act (H.R. 935). This bill provides all parents a $3,000 per child tax credit for K-12 education expenses. This bill would help home school parents to provide their children a first-class education in a loving home environment. credit TEXAS HOME SCHOOL APPRECIATION WEEK May 4, 2000    2000 Ron Paul 32:6 * The Family Education Freedom Act will also benefit those parents who choose to send their children to public or private schools. Parents who choose to send their children to private school may use their tax credit to help cover the cost of tuition. Parents who choose to send their children to public schools may use their tax credit to help finance the purchase of educational tools such as computers or extracurricular activities like music programs. Parents may also use the credit to pay for tutoring and other special services for their children. credit IDEA FULL FUNDING ACT OF 2000 May 4, 2000    2000 Ron Paul 33:4 * Increasing IDEA spending also provides incentives to over-identify children as learning disabled, thus unfairly stigmatizing many children and, in a vicious cycle, leading to more demands for increased federal spending on IDEA. Instead of increasing spending on a federal program that may actually damage the children it claims to help, Congress should return control over education to those who best know the child’s needs: parents. In order to restore parental control to education, I have introduced the Family Education Freedom Act (H.R. 935), which provides parents with a $3,000 per child tax credit to pay for K-12 education expenses. My tax credit would be of greatest benefit to parents of children with learning disabilities because it would allow them to devote more of their resources to ensure their children get an education that meets the child’s unique needs. credit SENSE OF THE HOUSE IN SUPPORT OF AMERICA’S TEACHERS May 9, 2000    2000 Ron Paul 34:2 * I have also introduced the Teacher Tax Cut Act (H.R. 937) which provides every teacher in America with a $1,000 tax credit. The Teacher Tax Cut Act thus increases teachers’ salaries without raising federal expenditures. It lets America’s teachers know that the American people and the Congress respect their work. Finally, and perhaps most importantly, by raising teacher take-home pay, the Teacher Tax Cut Act encourages high-quality people to enter, and remain in, the teaching profession. credit SENSE OF THE HOUSE IN SUPPORT OF AMERICA’S TEACHERS May 9, 2000    2000 Ron Paul 34:3 * Mr. Speaker, these two bills send a strong signal to America’s teachers that we in Congress are determined to encourage good people to enter and remain in the teaching profession and that we want teachers to be treated as professionals, not as Education Department functionaries. In conclusion, I urge my colleagues to vote for this resolution recognizing the hard work of America’s teachers. I also urge they continue to stand up for those who have dedicated their lives to educating America’s children by cosponsoring my legislation to prohibit the use of federal funds for national teacher testing and to give America’s teachers a $1,000 tax credit. credit Statement of Ron Paul on the Misuse of the Social Security Number May 11, 2000    2000 Ron Paul 35:2 The Congress that created the Social Security system in no way intended to create a national identifier. In fact, Congress never directly authorized the creation of the Social Security number — they simply authorized the creation of an “appropriate record keeping and identification scheme.” The Social Security number was actually the creation of the Internal Revenue Service! The Social Security Number did not become a popular identifier until the 1960s. In response to concerns about the use of the Social Security number, Congress passed the Privacy Act of 1974, because “The Congress finds the opportunities for an individual to secure employment, insurance and credit and his right to due process and other legal protections are endangered by the misuse of certain information systems.” credit Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:1 * The national debt is rising at an annual rate of a $100 billion per year while the federal government obligation to future generations is rising even faster. Yet, little concern is shown in Congress as our budgets grow and new programs are added on to old. Ordinary political deception has been replaced with the dangerous notion of invincibleness as members claim credit for imaginary budgetary surpluses. The percent of our income that government now takes continues to rise, while personal liberty is steadily compromised with each new budget. But the political euphoria associated with the “New Era” economy will soon come to an end. credit Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:3 * Business cycles are well understood. They are not a natural consequence of capitalism but instead result from central bank manipulation of credit. This is especially true when the monetary unit is undefinable as it is in a fiat monetary system, such as ours. Therefore, it is correct to place blame on the Federal Reserve for all depressions/recessions, inflation, and much of the unemployment since 1913. The next downturn, likewise, will be the fault of the Fed. credit Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:4 * It is true that the apparent prosperity and the boom part of the cycle are a result of the Federal Reserve credit creation, but the price that must always be paid and the unfairness of inflationism makes it a dangerous process. credit Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:6 * A central bank that has no restraints placed on it is always available to the politicians who spend endlessly for reelection purposes. When the private sector lacks its appetite to lend sufficiently to the government, the Federal Reserve is always available to buy treasury debt with credit created out of thin air. At the slightest hint that interest rates are higher than the Fed wants, its purchase of debt keeps interest rates in check; that is, they are kept lower than the market rate. Setting interest rates is an enormous undertaking. It’s price fixing and totally foreign to the principles of free market competition. credit 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. credit 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. credit The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:11 * Since cartels never work, OPEC does not deserve credit for getting oil prices above $30 per barrel. Demand for equivalent purchasing power for the sale of oil, can. Recent commodity and wage price increases signal accelerating price inflation is at hand. We are witnessing the early stages in a sea change regarding the dollar, inflation, the stock market as well as commodity prices. credit Statement of Ron Paul on the Freedom and Privacy Restoration Act (HR 220) May 18, 2000    2000 Ron Paul 38:7 The Social Security number did not become a popular identifier until the 1960s. In response to concerns about the use of the Social Security number, Congress passed the Privacy Act of 1974, because, as stated within the act itself, “The Congress finds the opportunities for an individual to secure employment, insurance and credit and his right to due process and other legal protections are endangered by the misuse of certain information systems.” credit Statement of Ron Paul on the Freedom and Privacy Restoration Act (HR 220) May 18, 2000    2000 Ron Paul 38:10 I am sure I need not remind the members of this Committee of the sad history of government officials of both parties using personal information contained in IRS or FBI files against their political enemies. Imagine the potential for abuse if an unscrupulous government official is able to access one’s complete medical, credit, and employment history by simply typing the citizens’ “uniform identifier” into a database. credit Quality Health-Care Coalition Act of 2000 June 29, 2000    2000 Ron Paul 61:7 * Mr. Chairman, it is my hope that Congress will follow up on its action today by empowering patients to control their health care by providing all Americans with access to Medical Saving Accounts (MSAs) and large tax credits for their health care expenses. Putting individuals back in charge of their own health care decisions will enable patients to work with providers to ensure they receive the best possible health care at the lowest possible price. If providers and patients have the ability to form the contractual arrangements that they found most beneficial to them, the HMO monster would wither on the vine without the imposition of new federal regulations on the insurance industry. credit Quality Health-Care Coalition Act of 2000 June 29, 2000    2000 Ron Paul 61:8 * In conclusion, Mr. Chairman, I urge my colleagues to support the Quality Health Care Coalition Act and restore the freedom of contract and association to American’s health care professionals. Antitrust laws are no more legitimate or constitutional in the health care market than they are on the software market. Therefore, I hope my colleagues will not just pass this bill but will also support my Market Process Restoration Act and exempt all Americans from antitrust laws. I also urge my colleagues to join me in working to promote a true free-market in health care by putting patients back in charge of the health care dollar through means such as Medical Savings Accounts (MSAs) and individual health care tax credits. credit THE FAMILY HEALTH TAX CUT ACT 29 June 2000    2000 Ron Paul 62:1 * Mr. Speaker, today I attempted to help working Americans provide for their children’s health care needs by introducing the Family Health Tax Cut Act. The Family Health Tax Cut Act provides parents with a tax credit of up to $500 for health care expenses of dependent children. Parents caring for a child with a disability, terminal disease, cancer, or any other health condition requiring specialized care would receive a tax credit of up to $3,000 to help cover their child’s health care expenses. The tax credit would be available to all citizens regardless of whether or not they itemize their deductions. credit THE FAMILY HEALTH TAX CUT ACT 29 June 2000    2000 Ron Paul 62:2 * The tax credits provided in this bill will be especially helpful to those Americans whose employers cannot afford to provide their employees health insurance. These workers must struggle to meet the medical bills of themselves and their families. This burden is especially heavy on parents whose children have a medical condition, such as cancer or a physical disability, which requires long-term or specialized health care. credit THE FAMILY HEALTH TAX CUT ACT 29 June 2000    2000 Ron Paul 62:3 * As an OB-GYN who has had the privilege of delivering more than four thousand babies, I know how important it is that parents have the resources to provide adequate health care for their children. The inability of many working Americans to provide health care for their children is rooted in one of the great inequities of the tax code: Congress’ failure to allow individuals the same ability to deduct health care costs that it grants to businesses. As a direct result of Congress’ refusal to provide individuals with health care related tax credits, parents whose employers do not provide health insurance have to struggle to provide health care for their children. Many of these parents work in low-income jobs; oftentimes their only recourse to health care is the local emergency room. credit THE FAMILY HEALTH TAX CUT ACT 29 June 2000    2000 Ron Paul 62:4 * Sometimes parents are forced to delay seeking care for their children until minor health concerns that could have been easily treated become serious problems requiring expensive treatment! If these parents had access to the type of tax credits provided in the Family Health Tax Cut Act they would be better able to provide care for their children and our nation’s already overcrowded emergency room facilities would be relieved of the burden of having to provide routine care for people who otherwise cannot afford any other alternative. credit THE FAMILY HEALTH TAX CUT ACT 29 June 2000    2000 Ron Paul 62:5 * According to research on the effects of this bill done by my staff and legislative counsel, the benefit of these tax credits would begin to be felt by joint filers with incomes slightly above 18,000 dollars a year or single income filers with incomes slightly above 15,000 dollars per year. Clearly this bill will be of the most benefit to low-income Americans balancing the demands of taxation with the needs of their children. credit THE FAMILY HEALTH TAX CUT ACT 29 June 2000    2000 Ron Paul 62:8 * The Family Health Tax Cut Act takes a major step toward helping working Americans meet their health care needs by providing them with generous health care related tax cuts and tax credits. I urge my colleagues to support the pro-family, pro-health care tax cuts contained in the Family Health Tax Cut Act. credit Child Support Distribution Act Of 2000 September 7, 2000    2000 Ron Paul 71:3 * However much I share the goals meant to be accomplished by the expanded uses of the database, I must remind my colleagues that the road to serfdom, like the road to hell, is paved with noble purposes and good intentions. Expanding the use of the new hires database brings us closer to the day when the database is a universal tracking system allowing government officials easy access to every individual’s employment and credit history. Providing the government with that level of power to track citizens is to invite abuse of individual liberties. credit Literacy Involves Families Together Act September 12, 2000    2000 Ron Paul 75:10 * In order to give control over education back to the American people, I have introduced several pieces of legislation that improve education by giving the American people control over their education dollar. For instance my Family Education Freedom Act (H.R. 935), provides parents with a $3,000 per child tax credit for K-12 education expenses incurred in sending their children to public, private, or home school. I have also introduced the Education Improvement Tax Cut Act (H.R. 936), which provides a tax donation of up to $3,000 for cash or in-kind donations to public or private schools as well as for donations to elementary and secondary scholarships. I am also cosponsoring legislation (H.R. 969) to increase the tax donations for charitable contributions, as well as several bills to provide tax credits for adult job training and education. credit Literacy Involves Families Together Act September 12, 2000    2000 Ron Paul 75:12 * In conclusion, Mr. Speaker, I call on my colleagues to reject the LIFT Act and instead embrace a program of education and charitable tax credits that will give the American people the ability to provide for the education needs of their children and families in the way that best suits the unique circumstances of their own communities. credit CHILDHOOD CANCER AWARENESS MONTH September 21, 2000    2000 Ron Paul 79:1 * Mr. Speaker, because September is Childhood Cancer Awareness Month this is an excellent time to reflect on the problems faced by working parents struggling to meet the needs of a child stricken with cancer. I am sure that all would agree that there are few Americans more in need of tax relief than families forced to devote every available resource to caring for a child with a terminal illness such as cancer. This is why I have introduced the Family Health Tax Cut Act (H.R. 4799). This legislation provides a $3,000 tax credit to parents caring for a child with cancer, another terminal disease, or any other serious health condition requiring long-term care. H.R. 4799 also helps all working parents provide routine health care for their children by providing them with a $500 per child tax credit. credit CHILDHOOD CANCER AWARENESS MONTH September 21, 2000    2000 Ron Paul 79:3 * According to research on the effects of this bill done by my staff and legislative counsel, the benefit of these tax credits would begin to be felt by joint filers with incomes slightly above 18,000 dollars a year or single income filers with incomes slightly above 15,000 dollars per year. Clearly this bill will be of the most benefit to working families balancing the demands of taxation with the needs of their children. credit TWENTY-FIFTH ANNIVERSARY OF EDUCATION FOR ALL HANDICAPPED CHILDREN ACT September 25, 2000    2000 Ron Paul 80:4 * IDEA also provides school personal with incentives to over-identify children as learning disabled, thus unfairly stigmatizing many children and, in a vicious cycle, leading to more demands for increased federal spending on IDEA also IDEA encourages the use of the dangerous drug Retalin for the purpose of getting education subsidies. Instead of celebrating and increasing spending on a federal program that may actually damage the children it claims to help, Congress should return control over education to those who best know the child’s needs: parents. In order to restore parental control to education, I have introduced the Family Education Freedom Act (HR 935), which provides parents with a $3,000 per child tax credit to pay for K-12 education expenses. My tax credit would be of greatest benefit to parents of children with learning disabilities because it would allow them to devote more of their resources to ensure their children get an education that meets the child’s unique needs. credit Congratulating Home Educators And Home Schooled Students September 26, 2000    2000 Ron Paul 81:5 * In order to help home schoolers, and all parents, devote more of their resources to their children’s education, I have introduced the Family Education Freedom Act (H.R. 935). This bill provides all parents a $3,000 per child tax credit for K-12 education expenses. This bill will help home school parents to provide their children a first-class education in a loving home environment. credit Congratulating Home Educators And Home Schooled Students September 26, 2000    2000 Ron Paul 81:6 * The Family Education Freedom Act will also benefit those parents who choose to send their children to public or private schools. Parents who choose to send their children to private school may use their tax credit to help cover the cost of tuition. Parents who choose to send their children to public schools may use their tax credit to help finance the purchase of educational tools such as computers or extracurricular activities like music programs. Parents may also use the credit to pay for tutoring and other special services for their children. credit CONGRESS IGNORES ITS CONSTITUTIONAL RESPONSIBILITY REGARDING MONETARY POLICY October 11, 2000    2000 Ron Paul 84:6 Already we hear the pundits arguing over who is to be blamed if the markets crash or a recession hits. Some have given the current President credit for the good times we have enjoyed. If the crash comes before January, some will place the blame on him as well. If problems hit later, the next President will get the blame. But the truth is our Presidents deserve neither the credit for the good times nor the blame for the bad times. credit 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. credit END-OF-SESSION ISSUES October 11, 2000    2000 Ron Paul 85:3 American children deserve nothing less than the best educational opportunities, not warmed-over versions of the disastrous educational policies of the past. That is why I introduced H.R. 935, the Family Education Freedom Act. This bill would give parents an inflation-adjusted $3,000 per annum tax credit, per child for educational expenses. The credit applies to those in public, private, parochial, or home schooling. credit END-OF-SESSION ISSUES October 11, 2000    2000 Ron Paul 85:4 This bill creates the largest tax credit for K-12 education in the history of our great Republic and it returns the fundamental principle of a truly free economy to America’s education system: what the great economist Ludwig von Mises called ‘consumer sovereignty.’ credit END-OF-SESSION ISSUES October 11, 2000    2000 Ron Paul 85:7 Of course, I applaud all efforts which move in the right direction such as the Education Savings Accounts legislation (H.R. 7). President Clinton’s college tax credits are also good first steps in the right direction. However, Congress must act boldly — we can ill afford to waste another year without a revolutionary change in our policy. I believe my bill sparks this revolution and I am disappointed that the leadership of this Congress chose to ignore this fundamental reform and instead focused on reauthorizing great society programs and promoting the pseudo-federalism of block grants. credit SOCIAL SECURITY NUMBER CONFIDENTIALITY ACT OF 1999 17 October 2000    2000 Ron Paul 87:7 * While much of the discussion of identity theft and related threats to privacy has concerned private sector criminals, the major threat to privacy lies in the power uniform identifiers give to government officials. I am sure I need not remind my colleagues of the sad history of government officials of both parties using personal information contained in IRS or FBI files against their political enemies, or of the cases of government officials rummaging through the confidential files of celebrities and/or their personal acquaintances, or of the Medicare clerk who sold confidential data about Medicare patients to a Health Maintenance Organization. After considering these cases, one cannot help but shudder at the potential for abuse if an unscrupulous government official is able to access one’s complete medical, credit, and employment history by simply typing the citizens’ ‘uniform identifier’ into a database. credit OLDER AMERICANS ACT AMENDMENTS OF 2000 October 24, 2000    2000 Ron Paul 90:5 * There are ways to ensure that seniors have opportunities for productive lives without violating the constitution and politicizing charity. One way is to repeal the social security earnings limit, which punishes seniors who continue to work in the private sector. Another way is through generous tax credits and deductions for taxpayers who support charitable organization designed to provide services to individuals. Finally, the best way to aide the nation’s seniors, and those who are about to be seniors, is to stop raiding the nation’s social security system to finance other unconstitutional programs. This is why the first piece of legislation I introduced this year was The Social Security Preservation Act (H.R. 219), which would ensure that social security monies would be spent on social security. I was also a cosponsor of the legislation to end the earnings limit, which passed the House of Representatives this year. I am also cosponsoring several pieces of legislation to allow people to use more of their own resources to help the needy by expanding the charitable tax deduction. credit 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. credit NATIONAL SCIENCE EDUCATION ACT October 25, 2000    2000 Ron Paul 91:5 * In order to put education resources back into the hands of the American people I have introduced the Family Education Freedom Act (H.R. 935). This act provides a $3,000 per child tax credit for parents to help cover K-12 education expenses. I have also introduced the Education Improvement Tax Cut Act (H.R. 936), which provides a $3,000 tax deduction for contributions to K-12 education scholarships as well as for cash or in-kind donations to private or public schools. HRs 935 and 936 move control of education resources back into the hands of the American people and help ensure parents can provide their children an excellent education. In fact, since the tax credits contained in H.R. 935 and H.R. 936 may be used to help finance the purchase of items necessary for a science education, such as labs equipment and computers, these bills will particularly benefit those citizens who wish to improve science education. I therefore urge my colleagues to reject the failed, unconstitutional command-and-control approach of H.R. 4271 and instead embrace my legislation to return control of education resources to the American people. credit CONFERENCE REPORT ON H.R. 2615, CERTIFIED DEVELOPMENT COMPANY PROGRAM IMPROVEMENTS ACT OF 2000 October 26, 2000    2000 Ron Paul 92:6 * We must restore individual control over health care dollars, and MSAs coupled with health care tax credits and deductions are an important step in the right direction. MSAs and health care tax deductions lower health care costs without sacrificing quality by motivating patients to negotiate for the highest quality care at a reasonable price. credit ECONOMIC PROBLEMS AHEAD November 13, 2000    2000 Ron Paul 93:7 * Government statistics continue to tell us that price inflation is not a problem, and when an inflation statistic comes out it does not like, it drops out food and energy and claims the number is totally benign. Ask any housewife, and they will tell you that the cost of living is going up steadily and much more rapidly than the government will admit. We in the Congress should be prepared for lower revenues in the future since the revenues received in the last couple of years were artificially created by a stock market that had skyrocketed due to the credit expansion by the Federal Reserve. These capital gains tax revenues will soon disappear. The savings rates of the American people are now negative. Without savings, true capital investment cannot be maintained. Creation of credit out of thin air by the Fed was the original problem, so it surely can’t be the solution. credit ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:13 * What I think is going to happen is that once the recession sets in and there is a need for additional spending and there will be no longer a concern at all about the deficit; and that is when the Congress will spend, the Federal Reserve will inflate. And it may temporarily help, but in the long-run it does not do the trick. It is not the way we gain economic prosperity out of a printing press. We just cannot allow a Federal Reserve to believe it creates capital by creating credit out of thin air. credit ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:26 * We should never blame economic growth as the culprit. Instead artificial growth, mal-investment, overcapacity, speculation, and excessive debt that comes from systematic monetary inflation should be blamed, since these are all a result of Federal Reserve Board policy. Let there be no doubt political and financial leaders will demand lower interest rates in order to alleviate the conditions that are developing. But just because a boom can come from generous Fed credit, it doesn’t mean the bubble economy can be maintained or re-inflated by easy credit once a correction sets in. credit ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:31 * We must someday recognize that neither Congress nor the Fed is supposed to “run” the economy. Yet we still live with the belief that the Administration, our Presidents, our Congress and the Federal Reserve should run the economy. This is a dangerous concepts and always leads to the painful corrections to so-called the good times for which everyone is anxious to take credit. credit INTRODUCTION OF THE IDENTITY THEFT PREVENTION ACT — HON. RON PAUL Wednesday, January 3, 2001    2001 Ron Paul 1:4 * Congressionally-mandated use of the Social Security number as an identifier facilitates the horrendous crime of identity theft. Thanks to the Congressionally-mandated use of the Social Security number as an uniform identifier, an unscrupulous person may simply obtain someone’s Social Security number in order to access that person’s bank accounts, credit cards, and other financial assets. Many Americans have lost their life savings and had their credit destroyed as a result of identity theft — yet the federal government continues to encourage such crimes by mandating use of the Social Security number as a uniform ID! credit INTRODUCTION OF THE EDUCATION IMPROVEMENT TAX CUT ACT — HON. RON PAUL Wednesday, January 31, 2001    2001 Ron Paul 2:1 * Mr. PAUL. Mr. Speaker, I rise to introduce the Education Improvement Tax Cut Act. This act, a companion to my Family Education Freedom Act, takes a further step toward returning control over education resources to private citizens by providing a $3,000 tax credit for donations to scholarship funds to enable low-income children to attend private schools. It also encourages private citizens to devote more of their resources to helping public schools, by providing a $3,000 tax credit for cash or in-kind donations to public schools to support academic or extra curricular programs. credit INTRODUCTION OF THE EDUCATION IMPROVEMENT TAX CUT ACT — HON. RON PAUL Wednesday, January 31, 2001    2001 Ron Paul 2:4 * Returning control over the education dollar for tax credits for parents and for other concerned citizens returns control over both the means and ends of education policy to local communities. People in one community may use this credit to purchase computers, while children in another community may, at last, have access to a quality music program because of community leaders who took advantage of the tax credit contained in this bill. credit INTRODUCTION OF THE EDUCATION IMPROVEMENT TAX CUT ACT — HON. RON PAUL Wednesday, January 31, 2001    2001 Ron Paul 2:5 * Children in some communities may benefit most from the opportunity to attend private, parochial, or other religious schools. One of the most encouraging trends in education has been the establishment of private scholarship programs. These scholarship funds use voluntary contributions to open the doors of quality private schools to low-income children. By providing a tax credit for donations to these programs, Congress can widen the educational opportunities and increase the quality of education for all children. Furthermore, privately-funded scholarships raise none of the concerns of state entanglement raised by publicly-funded vouchers. credit INTRODUCTION OF THE FAMILY EDUCATION FREEDOM ACT — HON. RON PAUL Wednesday, January 31, 2001    2001 Ron Paul 3:1 * Mr. PAUL. Mr. Speaker, I rise today to introduce the Family Education Freedom Act, a bill to empower millions of working and middle-class Americans to choose a non-public education for their children, as well as making it easier for parents to actively participate in improving public schools. The Family Education Freedom Act accomplishes it goals by allowing American parents a tax credit of up to $3,000 for the expenses incurred in sending their child to private, public, parochial, other religious school, or for home schooling their children. credit INTRODUCTION OF THE FAMILY EDUCATION FREEDOM ACT — HON. RON PAUL Wednesday, January 31, 2001    2001 Ron Paul 3:4 * Loss of control is a key reason why so many of America’s parents express dissatisfaction with the educational system. According to a study by The Polling Company, over 70% of all Americans support education tax credits! This is just one of numerous studies and public opinion polls showing that Americans want Congress to get the federal bureaucracy out of the schoolroom and give parents more control over their children’s education. credit INTRODUCTION OF THE FAMILY EDUCATION FREEDOM ACT — HON. RON PAUL Wednesday, January 31, 2001    2001 Ron Paul 3:6 * The $3,000 tax credit will make a better education affordable for millions of parents. Mr. Speaker, many parents who would choose to send their children to private, religious, or parochial schools are unable to afford the tuition, in large part because of the enormous tax burden imposed on the American family by Washington. credit INTRODUCTION OF THE FAMILY EDUCATION FREEDOM ACT — HON. RON PAUL Wednesday, January 31, 2001    2001 Ron Paul 3:7 * The Family Education Freedom Act also benefits parents who choose to send their children to public schools. Parents of children in public schools may use this credit to help improve their local schools by helping finance the purchase of educational tools such as computers or to ensure their local schools can offer enriching extracurricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services, such as tutoring, for their children. credit Introduction Of The Teacher Tax Cut Act 31 January 2001    2001 Ron Paul 4:1 * Mr. PAUL. Mr. Speaker, I rise to introduce the Teacher Tax Cut Act. This bill provides every teacher in America with a $1,000 tax credit, thus raising every teacher’s take-home pay without increasing federal spending. Passage of this bill is a major first step toward treating those who have dedicated their lives to educating America’s children with the respect they deserve. Compared to other professionals teachers are underappreciated and underpaid. This must change if America is to have the finest education system in the world! credit Introduction Of The Teacher Tax Cut Act 31 January 2001    2001 Ron Paul 4:3 * Since America’s teachers are underpaid because they are overtaxed, the best way to raise teacher take-home pay is to reduce their taxes. Simply by raising teacher’s take-home pay via a $1,000 tax credit we can accomplish a number of important things. First, we show a true commitment to education. We also let America’s teachers know that the American people and the Congress respect their work. Finally, and perhaps most importantly, by raising teacher take-home pay, the Teacher Tax Cut Act encourages highly-qualified professionals to enter, and remain in, the teaching profession. credit Honoring The Success Of Catholic Schools 6 February 2001    2001 Ron Paul 6:2 The success of Catholic schools has been remarkable. Catholic schools operating in the inner-city have been able to provide an excellent education to students written off by the educational establishment as “unteachable.” Contrary to the claims of its critics, Catholic schools do not turn away large numbers of children in order to limit their enrollment to the “best and the brightest.” In fact, a few years ago the Archdiocese of New York offered to enroll all students who had been expelled from New York’s public schools! Mr. Speaker, I have introduced legislation, the Family Education Freedom Act (H.R. 368) which would help more parents afford to send their children to Catholic, or other religious schools, by providing them with a $3,000 tax credit for K–12 education expenses. credit CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:39 The booming economy of the last six years has come to an end. The only question remaining is how bad the slump will be. Although many economists expressed surprise at the sudden and serious shift in sentiment, others have been warning of its inevitability. Boom times built on central-bank credit creation always end in recession or depression. But central planners, being extremely optimistic, hope that this time it will be different; that a new era has arrived. credit CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:43 Western leaders for most of the 20th Century have come to accept a type of central planning they believe is not burdened by the shortcomings of true socialist-type central planning. Instead of outright government ownership of the means of production, the economy was to be fine-tuned by fixing interest rates (FED Funds Rates), subsidizing credit (Government Sponsored Enterprises), stimulating sluggish segments of the economy (Farming and the Weapons Industry), aiding the sick (Medicaid and Medicare), federally managing education (Department of Education), and many other welfare schemes. credit 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. credit 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. credit CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:60 The FED can create excess credit, but it can’t control where it goes as it circulates throughout the economy; nor can it dictate value either. Claiming that a subdued government-rigged CPI and PPI proves that no inflation exists is pure nonsense. It is well established that, under certain circumstances, new credit inflation can find its way into the stock or real estate market, as it did in the 1920s, while consumer prices remain relatively stable. This does not negate the distortion inherit in a system charged with artificially low interest rates. Instead it allows the distortion to last longer and become more serious, leading to a bigger correction. credit 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. credit CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:68 Much else related to artificially low interest rates goes unnoticed. An overpriced stock market, overcapacity in certain industries, excesses in real-estate markets, artificially high bond prices, general mal-investments, excessive debt, and speculation all result from the generous and artificial credit the Federal Reserve pumps into the financial system. These distortions are every bit, if not more, harmful than rising prices. As the economy soars from the stimulus effect of low interest rates, growth and distortions compound themselves. In a slump the reverse is true, and the pain and suffering is magnified as the adjustment back to reality occurs. credit 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. credit 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. credit 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. credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:1 * Mr. PAUL. Mr. Speaker, I highly recommend the attached article “Know Your Customer” by Christoper Whalen, which recently appeared in Barron’s, to my colleagues. This article examines the horrors faced by victims of America’s fastest-growing crime: identity theft. As the article points out, millions of Americans have suffered deep financial losses and the destruction of their credit history because of identity theft. Victims of identity theft often discover that the process of reestablishing one’s good reputation resembles something out of a Kafka novel. identity fraud also effects numerous businesses which provide credit to unscrupulous individuals based on a stolen credit history. Just last year, American businesses and consumers lost 25 billion dollars to identity thieves! credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:7 High-yield paper is out of favor with Wall Street as an economic slowdown raises concerns about credit quality. One in five issuers have paper trading at distressed levels. Consumer lenders are under particular pressure due to worries about a looming recession. But investors in companies that make consumer loans should worry about more than a slowing economy. credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:10 One of my in-laws — I will call her Jean to protect what remains of her privacy — was the victim of identity theft in 1999. Jean is a teacher who lives in Westchester County, New York, and drives a Volvo. She and her husband have perfect credit. About a year ago, Jean called in a panic, saying that her bank had frozen the family checking account because someone had a judgment against her. Being the banker in the family, I agreed to act for Jean. What I discovered during more than a year of investigation was a personal outrage and an investor’s nightmare. credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:12 One of the world’s biggest nonbank financial firms — wee’ll call it Megacorp — provided credit to a criminal who used Jean’s Social credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:16 I contacted Megacorp and the three major credit reporting agencies, Experian, TransUnion and Equifax. I asked how a criminal using a dubious Bronx mailing address and a false, oddly spelled name could obtain credit using the Social Security number and non-existent credit history of a middle-class woman who lives in Westchester. On examining Jean’s credit reports, I discovered that it was Megacorp, after extending credit to the Bronx delinquent, that reported the false name and new address to Experian linked to Jean’s Social Security number. The alias and new address were automatically added to Jean’s credit history without any verification whatsoever. credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:18 Significantly, neither Megacorp nor Experian nor any of the other credit reporting agencies attempted to contact Jean to verify the significant change in name and address reported by Megacorp. credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:19 I confronted representatives of Experian and the other credit agencies about the false information place in Jean’s credit report, yet they disclaimed any responsibility for the validity of the information. Representatives of Experian say they aren’t responsible for the accuracy of the data provided by financial institutions and that they don’t even review the information. “The banks do that,” they asserted. credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:21 Megacorp continued to send Jean demand letters from various collection agencies for months after my first telephone and written responses. I kept on asking: How could anyone of even minimal competence look at the credit reports from Experian and other agencies and approve credit to the fictions Bronx resident? credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:22 Answer: The credit report tied to Jean’s Social Security number wasn’t reviewed. One Megacorp representative told me unofficially that the Social Security number was simply checked for defaults, judgments, etc., and when it came up clean — the number, not the name and not the application — the credit was approved. credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:24 Lenders and the providers of credit information have created a system that is inadequate to its purpose if a valid Social Security number and a couple of other pieces of information are sufficient to defeat most credit controls. Lenders may complain that it would be too costly to manually screen applicants and verify identities, but how much more costly would it be if they had to bear the costs they now push off onto Jean and other victims of fraud? credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:25 Financial author Martin Mayer rightly says that there are no economies of scale in banking, but the loan approval operation of too many consumer lenders suggests there are dis-economies of scale. It seems that the bigger a bank gets, the sloppier it gets. To maximize revenue growth and control costs, consumer lenders use statistical screening tools and computer models to make credit decisions. In other words, they use the law of large numbers and simply roll the dice. If a criminal finds a Social Security number with a clean history, he’s off to the races. credit IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:27 Even if Social Security did not exist, the financial system would invent another system of universal identification. Congress should place the blame where it belongs, on the lenders and credit bureaus. It should require credit bureaus to obtain written affirmation from consumers prior to accepting a change in the name, address or other details on a credit history. Lenders should be held liable for reporting false information to credit bureaus, especially in cases where false reports lead to acts of financial fraud. credit 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. credit 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. credit 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. credit Blame Congress for HMOs February 27, 2001    2001 Ron Paul 15:6 * The only true solution to the health care problems is to truly allow the private sector to work by restoring control of the health care dollar to the individual through Medical Savings Accounts (MSAs) and large tax credits. In the Medicare program, seniors should not be herded into HMOs but instead should receive increased ability to use Medicare MSAs, which give them control over their health care dollars. Of course, the limits on private contracting in the Medicare program should be lifted immediately. credit The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:13 But the excess credit created by the Fed found its way into the stock market- especially the NASDAQ, and was ignored. This set the stage for the stock market collapse, now ongoing. Likewise ignored has been the excess capacity, mal-investment, and debt that permeates the world economy. credit A New China Policy April 25, 2001    2001 Ron Paul 25:1 President Bush deserves much credit for the handling of the spy plane crisis. However, he has received significant criticism from some of his own political supporters for saying he was “very” sorry for the incident. This seems a “very” small price to pay for the safe return of 24 American military personnel. Trade with China though should be credited for helping to resolve this crisis. President Bush, in the diplomatic handling of this event, avoided overly strong language and military threats, which would have done nothing to save the lives of these 24 Americans. credit Unborn Victims Of Violence Act 26 April 2001    2001 Ron Paul 29:8 Occasionally the argument is put forth that States may be less effective than a centralized Federal Government in dealing with those who leave one State jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of State sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow States to exact judgments from those who violate their State laws. The Constitution even allows the Federal Government to legislatively preserve the procedural mechanisms which allow States to enforce their substantive laws without the Federal Government imposing its substantive edicts on the States. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one State to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon States in working with one another rather than relying on a national, unified police force. At the same time, there is a greater cost to centralization of police power. credit 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. credit Protecting Privacy and Preventing Misuse of Social Security Numbers May 22, 2001    2001 Ron Paul 37:1 I wish to thank the subcommittee on Social Security of the Ways and Means Committee for holding this hearing on the misuse of the Social Security number. The transformation of the Social Security number into a de facto uniform identifier is a subject of increasing concern to the American people. This is, in large part, because the use of the Social Security number as a standard identifier facilitates the crime of identity theft. Today, all an unscrupulous person needs to do is obtain someone’s Social Security number in order to access that person’s bank accounts, credit cards, and other financial assets. Many Americans have lost their life savings and have had their credit destroyed as a result of identity theft. credit Statement on the Congressional Education Plan May 22, 2001    2001 Ron Paul 38:10 As a constitutional means to provide parents with the means to hold schools accountable, I have introduced the Family Education Freedom Act (H.R. 368). The Family Education Freedom Act restores parental control over the classroom by providing American parents a tax credit of up to $3,000 for the expenses incurred in sending their child to private, public, parochial, other religious school, or for home schooling their children. credit Statement on the Congressional Education Plan May 22, 2001    2001 Ron Paul 38:12 When parents control the education dollar, schools must be responsive to parental demands that their children receive first-class educations, otherwise, parents will find alternative means to educate their children. Furthermore, parents whose children are in public schools may use their credit to improve their schools by purchasing of educational tools such as computers or extracurricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services for their children. credit “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.” credit INTRODUCTION OF EDUCATION BILLS -- HON. RON PAUL June 28, 2001    2001 Ron Paul 49:1 * Mr. PAUL. Mr. Speaker, I rise to introduce two bills designed to help improve education by reducing taxes on parents, teachers, and all Americans who wish to help improve education. The first bill, the Hope Plus Scholarship Act, extends the HOPE Scholarship tax credit to K-12 education expenses. Under this bill, parents could use the HOPE Scholarship to pay for private or religious school tuition or to offset the cost of home schooling. In addition, under the bill, all Americans could use the Hope Scholarship to make cash or in-kind donations to public schools. Thus, the Hope Scholarship could help working parents finally afford to send their child to a private school, while other parents could take advantage of the Hope credit to help purchase new computers for their childrens’ school. credit INTRODUCTION OF EDUCATION BILLS -- HON. RON PAUL June 28, 2001    2001 Ron Paul 49:3 * My other bill, the “Professional Educators Tax Relief Act” provides a thousand dollar per year tax credit to all professional educators, including librarians, counselors, and others involved in implementing or formulating the curriculum. This bill helps equalize the pay gap between educators and other professionals, thus ensuring that quality people will continue to seek out careers in education. Good teaching is the key to a good education, so it is important that Congress raise the salaries of educators by cutting their taxes. credit 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. credit Statement on the Community Solutions Act of 2001 July 19, 2001    2001 Ron Paul 60:15 In conclusion, Mr. Speaker, because H.R. 7 extends the reach of the immoral, unconstitutional welfare state and thus threatens the autonomy and the effectiveness of the very faith-based charities it claims to help, I urge my colleagues to reject it. Instead, I hope my colleagues will join me in supporting a constitutional and compassionate agenda of returning control over charity to the American people through large tax cuts and tax credits. credit Export-Import Bank 24 July 2001    2001 Ron Paul 61:3 This is just a small effort to rein in the power of the special interests, the powerful special interests. It has been mentioned that jobs could be lost. In the debate, there has been emphasis on jobs, and the truth is that it may happen. Jobs could be lost. But what Members fail to realize is that the jobs lost are special interest jobs. If my colleagues take that same funding, and we never talk about what would happen to that $75 billion line of credit of the Export- Import Bank if it were allowed to remain in the economy. Other jobs would be created, so my colleagues cannot argue half of the case. We have to look at the whole picture. Special interest jobs would be lost. True market jobs would be increased. credit Export-Import Bank 24 July 2001    2001 Ron Paul 61:13 I would strongly urge a yes vote on this amendment and do not support this effort to benefit the big companies and hurt the little guys. The little guys are the ones who lose this line of credit and push their interest rates up. credit 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. credit 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. credit PRESCRIPTION DRUG AFFORDABILITY ACT -- HON. RON PAUL Thursday, August 2, 2001    2001 Ron Paul 72:4 * The first provision of my legislation provides seniors a tax credit equal to 80 percent of their prescription drug costs. As many of my colleagues have pointed out, our nation’s seniors are struggling to afford the prescription drugs they need in order to maintain an active and healthy lifestyle. Yet, the federal government continues to impose taxes on Social Security benefits. Meanwhile, Congress continually raids the Social Security trust fund to finance unconstitutional programs! It is long past time for Congress to choose between helping seniors afford medicine or using the Social Security trust fund as a slush fund for big government and pork-barrel spending. credit PRESCRIPTION DRUG AFFORDABILITY ACT -- HON. RON PAUL Thursday, August 2, 2001    2001 Ron Paul 72:5 * Mr. Speaker, I do wish to clarify that this tax credit is intended to supplement the efforts to reform and strengthen the Medicare system to ensure seniors have the ability to use Medicare funds to purchase prescription drugs. I am a strong supporter of strengthening the Medicare system to allow for more choice and consumer control, including structural reforms that will allow seniors to use Medicare funds to cover the costs of prescription drugs. credit The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:1 Congress has a constitutional responsibility to maintain the value of the dollar by making only gold and silver legal tender and not to “emit bills of credit.” credit 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. credit The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:10 Instead, Congress chooses to blame the analysts for misleading investors . The analysts may not be entirely blameless , but their role in creating the bubble is minimal compared to the misleading information that the Federal Reserve has provided, with artificially low interest rates and a financial market made flush with generous new credit at every sign of a correction over the past ten years. credit The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:23 Alan Greenspan made a concerted effort to stave off the 1991-1992 recession with numerous reductions in the Fed funds rate to no avail. The recession hit, and most people believe it led to George Bush’s defeat in the 1992 election. It wasn’t that Greenspan didn’t try, and in many ways the Bush people’s criticism of Greenspan’s effort is not justified. Greenspan, the politician, would have liked to please the elder Bush, but was unable to control events as he had wished. This time around, however, he’s been much more aggressive with the half-point cuts along with seven cuts in just eight months, for a total of a three-point cut in the Fed funds rate. But guess what? So far it hasn’t helped. Stocks continue to slide, and the economy is still in the doldrums. It is now safe to say that Greenspan is pushing on a string. In the year 2000, bank loans and commercial paper were growing at an annualized rate of 23%. In less than a year, in spite of this massive influx of new credit, these loans have crashed to a rate of minus 5%. credit The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:26 The Federal Reserve credit created during the last eight months has not stimulated economic growth in technology or the industrial sector, but a lot of it ended up in the expanding real-estate bubble, churned by the $3.2 trillion of debt maintained by the GSEs. credit The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:27 The GSEs, made up of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank, have managed to keep the housing market afloat, in contrast to the more logical slowdown in hotel and office construction. This spending through the GSEs has also served as a vehicle for consumption spending. This should be no surprise, considering the special status that GSEs enjoy, since their implied line of credit to the US Treasury keeps interest rates artificially low. The Clinton administration encouraged growth in housing loans that were financed through this system. credit The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:28 In addition, the Federal Reserve treats GSE securities with special consideration. Ever since the fall of 1999, the Fed has monetized GSE securities, just as if they were US Treasury bills. This message has not been lost by foreign central banks, which took their cue from the Fed and now hold more than $130 billion of United States GSE securities. The Fed holds only $20 billion worth, but the implication is clear. Not only will the Treasury loan to the GSEs if necessary, since the line of credit is already in place, but, if necessary, Congress will surely accommodate with appropriations as well, just as it did during the Savings and Loan crisis. But the Fed has indicated to the world that the GSEs are equivalent to US Treasury bills, and foreign central banks have enthusiastically accommodated, sometimes by purchasing more than $10 billion of these securities in one week alone. They are merely recycling the dollars we so generously print and spend overseas. credit 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. credit 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. credit 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. credit Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:7 I am sure, due to the crisis, a faith in fiat and a failure to understand the business cycle, the Fed will continue with the only thing it knows to do: credit creation and manipulation of interest rates. credit Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:8 This policy reflects the central bank’s complete ignorance as to the cause of the problem: Credit creation and manipulation of interest rates. credit Statement on Preventing Identity Theft by Terrorists and Criminals November 8, 2001    2001 Ron Paul 96:3 Because of the congressionally-mandated abuse of the Social Security number, all an unscrupulous person needs to do is obtain someone’s Social Security number in order to access that person’s bank accounts, credit cards, and other financial assets. As supportive as I am of efforts to ensure that the Social Security Administration minimizes the risk of identity theft, the only way to ensure the federal government is not inadvertently assisting identity criminals is to stop using the Social Security number as a uniform ID. I have introduced legislation to address the American people’s concerns regarding the transformation of the Social Security number into a national ID, the Identity Theft Prevention Act (HR 220). The major provision of the Identity Theft Prevention Act halts the practice of using the Social Security number as an identifier by requiring the Social Security Administration to issue all Americans new Social Security numbers within five years after the enactment of the bill. These new numbers will be the sole legal property of the recipient, and the Social Security Administration shall be forbidden to divulge the numbers for any purposes not related to the Social Security program. Social Security numbers issued before implementation of this bill shall no longer be considered valid federal identifiers. Of course, the Social Security Administration shall be able to use an individual’s original Social Security number to ensure efficient transition of the Social Security system. credit The War On Terrorism November 29, 2001    2001 Ron Paul 98:56 “Know Your Customer” type banking regulations, resisted by most Americans for years, have now been put in place in an expanded fashion. Not only will the regulations affect banks, thrifts and credit unions, but also all businesses will be required to file suspicious transaction reports if cash is used with the total of the transaction reaching $10,000. Retail stores will be required to spy on all their customers and send reports to the U.S. government. Financial services consultants are convinced that this new regulation will affect literally millions of law-abiding American citizens. The odds that this additional paperwork will catch a terrorist are remote. The sad part is that the regulations have been sought after by federal law-enforcement agencies for years. The 9-11 attacks have served as an opportunity to get them by the Congress and the American people. credit Statement on Terrorism Reinsurance Legislation November 30, 2001    2001 Ron Paul 99:6 Instead of forcing taxpayers to subsidize the costs of terrorism insurance, Congress should consider creating a tax credit or deduction for premiums paid for terrorism insurance, as well as a deduction for claims and other costs borne by the insurance industry connected with offering terrorism insurance. A tax credit approach reduces government’s control over the insurance market. Furthermore, since a tax credit approach encourages people to devote more of their own resources to terrorism insurance, the moral hazard problems associated with federally-funded insurance are avoided. credit The Case For Defending America 24 January 2002    2002 Ron Paul 1:22 Give less credit to the Washington politicians who sing the songs of patriotism but used the crisis to pursue their endless personal goal to gain more political power; but the greatest combination should be directed toward the special interests’ lobbyists who finance the politicians in order to secure their power by using patriotism as a cover and a crisis as a golden opportunity. Indeed, those who are using the crisis to promote their own agenda are many. There is no doubt, as many have pointed out, our country changed dramatically with the horror that hit us on 9–11. credit Resolution Violates Spirit Of Establishment Clause 29 January 2002    2002 Ron Paul 2:2 The success of Catholic schools has been remarkable. Catholic schools operating in the inner-city have been able to provide an excellent education to students written off by the educational establishment as “unteachable.” Contrary to the claims of their critics, Catholic schools do not turn away large numbers of children in order to limit their enrollment to the “best and the brightest.” In fact, a few years ago the Archdiocese of New York offered to enroll all students who had been expelled from New York’s public schools! Mr. Speaker, I have introduced legislation, the Family Education Freedom Act (H.R. 368) which would help more parents afford to send their children to Catholic, or other religious schools, by providing them with a $3,000 tax credit for K–12 education expenses. credit 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. credit 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. credit Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:3 In fact, Mr. Chairman, Argentina does not represent an exception to the laws of economics. Rather, Argentina’s economic collapse is but one more example of the folly of government intervention in the economy done to benefit powerful special interests at the expense of the Argentine people and the American taxpayer. The primary means by which the federal government forces American taxpayers to underwrite the destruction of the Argentine economy is the International Monetary Fund (IMF), which enjoys a $37 billion line of credit provided with U.S. Treasury funds. credit Stimulating The Economy February 7, 2002    2002 Ron Paul 5:4 Today, we hear from strong advocates of higher taxation, increased spending, higher budget deficits, tougher regulations, bailouts and all kinds of subsidies and support programs as tools to restore economic growth. The Federal Reserve recognized early on the severity of the problems and, over the past year, lowered short-term interest rates an unprecedented 11 times, dropping the Fed funds rate from 6 1/2 % to 1 3/4 %. This has not helped, and none of these other suggestions can solve the economic problems we face either. Some may temporarily help a part of the economy, but the solution to restoring growth lies not in more government but less. It is precisely too much government, and especially manipulation of credit by the Federal Reserve, that precipitated the economic downturn in the first place. Increasing that which caused the recession can’t possibly, at the same time, be the solution. credit Stimulating The Economy February 7, 2002    2002 Ron Paul 5:9 In recessions, to remain solvent, consumers ought to tighten their belts, pay off debt, and save. In a free market, this would lower market interest rates to once again make investments attractive. The confusing aspect of today’s economy is that consumers and even businesses continue profligate borrowing, in spite of problems on the horizon. Interest rates, instead of rising, are pushed dramatically downward by the Federal Reserve, creating massive amounts of new credit. credit Stimulating The Economy February 7, 2002    2002 Ron Paul 5:10 This new credit, according to economic law, must in time push the value of the dollar down and general prices up. When this happens and the dollar is threatened on exchange markets, the cost of living is pushed sharply upward. The central bank is then forced to raise interest rates, as they did in 1979 when the rates hit 21%. credit Stimulating The Economy February 7, 2002    2002 Ron Paul 5:11 But even before any need to tighten, interest rates may rise or not fall as expected. This has just happened in 2001. Even with Fed fund rates at 40-year lows, the 10 and 30-year rates have not fallen accordingly. Many corporate-bond rates have stayed high, and credit-card rates have stayed in double digits. This happens because the market discounts for debt quality and future depreciation of the dollar. credit Stimulating The Economy February 7, 2002    2002 Ron Paul 5:12 The Fed can’t control these rates, and they can’t control where the new credit they create goes. This means that resorting to, or trusting in, the Fed to bail out the economy and accommodate congressional spending is foolhardy and dangerous. This policy has led to a record default for U.S. corporate bonds. Worldwide, $110 billion of bonds were defaulted on last year. credit 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. credit 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. credit 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. credit Stimulating The Economy February 7, 2002    2002 Ron Paul 5:29 Every recession in the last 30 years, since the dollar became a purely fiat currency, has ended after a significant correction and resumption of all the bad policies that caused the recession in the first place. Each rebound required more spending, debt and easy credit than the previous recovery did. And with each cycle, the government got bigger and more intrusive. credit Stimulating The Economy February 7, 2002    2002 Ron Paul 5:36 This special status of the dollar only makes the problem of the illusion of wealth much worse. Since our bubble can last longer due to our perceived military and economic strength, it appears that our wealth is much greater than it actually is. Because of our unique position as the economic powerhouse of the world, we’re able to borrow more than anyone else. Foreigners loan us exorbitant sums, as our current account deficit soars out of sight. The U.S. now has a foreign debt of over $2 trillion. Perceptions and illusions and easy credit allow our consumers to spend, even in recessions, by rolling up even more debt in a time when market forces are saying that borrowing should decrease and the debt burden lessen. Our corporations follow the same pattern, keeping afloat with more borrowing. credit Statement on Ending US Membership in the IMF February 27, 2002    2002 Ron Paul 10:1 Mr. Speaker, I rise to introduce legislation to withdraw the United States from the Bretton Woods Agreement and thus end taxpayer support for the International Monetary Fund (IMF). Rooted in a discredited economic philosophy and a complete disregard for fundamental constitutional principles, the IMF forces American taxpayers to subsidize large, multinational corporations and underwrite economic destruction around the globe. This is because the IMF often uses the $37 billion line of credit provided to it by the American taxpayers to bribe countries to follow destructive, statist policies. credit Statement on the Financial Services committee’s “Views and Estimates for Fiscal Year 2003” February 28, 2002    2002 Ron Paul 12:6 This committee should also examine seriously the need for reform of the system of fiat currency which is responsible for the cycle of booms and busts which have plagued the American economy. Many members of the committee have expressed outrage over the behavior of the corporate executives of Enron. However, Enron was created by federal policies of easy credit and corporate welfare. Until this committee addresses those issues, I am afraid the American economy may suffer many more Enron-like disasters in the future. credit H.R. 476 17 April 2002    2002 Ron Paul 23:7 The argument which springs from the criticism of a federalized criminal code and a federal police force is that states may be less effective than a centralized federal government in dealing with those who leave one state jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of state sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow states to exact judgments from those who violate their state laws. The Constitution even allows the federal government to legislatively preserve the procedural mechanisms which allow states to enforce their substantive laws without the federal government imposing its substantive edicts on the states. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one state to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon states in working with one another rather than relying on a national, unified police force. At the same time, there is a greater cost to state autonomy and individual liberty from centralization of police power. credit 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. credit 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. credit 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. credit Statement Opposing Export-Import Bank Subsidies May 1, 2002    2002 Ron Paul 30:5 Mr. Chairman, there is a market allocation of credit and there is credit allocation by politicians, and that is what we are talking about here. We have credit allocation, and we have mal-investment and over capacity which causes the conditions to exist for the recession. Of course, a lot of this comes from what the Federal Reserve does in artificially lowering interest rates; but this is a compounding problem when government gets in and allocates credit at lower rates. It causes more distortions. This is why allocations to companies like Enron contributes to the bubble that ends up in a major correction. credit Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:1 Mr. Chairman, we are here today to reauthorize the Export-Import Bank, but it has nothing to do with a bank, do not mislead anybody. This has to do with an agency of the government that allocates credit to special interests and to the benefit of foreign entities. So it is not a bank in that sense. To me it is immoral in the fact that it takes from some who cannot defend themselves to give to the rich who get the benefits. And I just do not see that as being a very good function and a very good program for the U.S. Congress. Besides, I would like to see where somebody gives me the constitutional authority for doing what we do here and we have been doing, of course, for a long time. credit Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:2 But I do not want to talk about the immorality of this so-called bank or the unconstitutionality of it. I want to talk just a second or two about the economics of it. It is really bad economics. It is pointed out that it helps a company here or there, but what is never talked about what you do not see. This is credit allocation. credit Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:3 In order to take billions of dollars and give it to one single company, it is taken out of the pool of funds available. And nobody talks about that. There is an expense. Why would not a bank loan when it is guaranteed by the government? Because it is guaranteed. So if you are a smaller investor or a marginal investor, there is no way that you are going to get the loan. For that investor to get the loan, the interest rates have to be higher. So it is a form of credit allocation, and it is also a form of protectionism. We do a lot of talk around here about free trade. Of course, there is a lot of tariff activity going on as well, but this is a form of protectionism. Because some argue, well, this company has to compete and another government subsidizes their company so, therefore, we have to compete. So it is competitive subsidization of special interest corporations in order to do this. credit Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:4 Now, it seems strange that we here in the Congress are willing to give the beneficiary China the most number of dollars. They qualify for nearly $6 billion worth of credits. And that just does not seem like the reasonable thing for us to do. So I strongly urge a no vote on this bill. credit Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:20 Madam Chairman, earlier the gentleman from California (Mr. Rohrabacher) came up with an astounding reason for us to do this. He said that we owe this to Afghanistan. Now, I have heard all kinds of arguments for foreign aid and foreign intervention, but the fact that we owe this to Afghanistan? Do we know what we owe? We owe responsibility to the American taxpayer. We owe responsibility to the security of this country. One provision of this bill takes a $300 million line of credit from our DOD and just gives the President the authority to take $300 million of weapons away from us and give it to somebody in Afghanistan. Well, that dilutes our defense, that does not help our defense. This is not beneficial. We do not need to have an occupation of Afghanistan for security of this country. There is no evidence for that. credit Opposing The Amendment 21 May 2002    2002 Ron Paul 45:7 One provision of this bill takes a $300 million line of credit from our DOD and just gives the President the authority to take $300 million of weapons away from us and give it to somebody in Afghanistan. Well, that dilutes our defense, that does not help our defense. This is not beneficial. We do not need to have an occupation of Afghanistan for security of this country. There is no evidence for that. credit 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. credit 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. credit 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. credit AFFORDABILITY OF CHILD HEALTH CARE June 11, 2002    2002 Ron Paul 54:1 Mr. PAUL. Mr. Speaker, I am pleased to help working Americans provide for their children’s health care needs by introducing the Child Health Care Affordability Act. The Child Health Care Affordability Act provides parents with a tax credit of up to $500 for health care expenses of dependent children. Parents caring for a child with a disability, terminal disease, cancer, or any other health condition requiring specialized care would receive a tax credit of up to $3,000 to help cover their child’s health care expenses. The tax credit would be available to all citizens regardless of whether or not they itemize their deductions. credit AFFORDABILITY OF CHILD HEALTH CARE June 11, 2002    2002 Ron Paul 54:2 The tax credits provided in this bill will be especially helpful to those Americans whose employers cannot afford to provide their employees health insurance. These workers must struggle to meet the medical bills of themselves and their families. This burden is especially heavy on, parents whose children have a medical condition, such as cancer or a physical disability, which requires long-term or specialized health care. credit AFFORDABILITY OF CHILD HEALTH CARE June 11, 2002    2002 Ron Paul 54:3 As an OB-GYN who has had the privilege of delivering more than four thousand babies, I know how important it is that parents have the resources to provide adequate health care for their children. The inability of many working Americans to provide health care for their children is rooted in one of the great inequities of the tax code: Congress’ failure to allow individuals the same ability to deduct health care costs that it grants to businesses. As a direct result of Congress’ refusal to provide individuals with health care related tax credits, parents whose employers do not provide health insurance have to struggle to provide health care for their children. Many of these parents work in low-income jobs; oftentimes their only recourse to health care is the local emergency room. credit AFFORDABILITY OF CHILD HEALTH CARE June 11, 2002    2002 Ron Paul 54:4 Sometimes parents are forced to delay seeking care for their children until minor health concern that could have been easily treated become serious problems requiring expensive treatment! If these parents had access to the type of tax credits provided in the Child Health Care Affordability Act, they would be better able to provide care for their children, and our nation’s already overcrowded emergency room facilities would be relieved of the burden of having to provide routine care for people who otherwise cannot afford it. credit AFFORDABILITY OF CHILD HEALTH CARE June 11, 2002    2002 Ron Paul 54:5 According to research on the effects of this bill done by my staff and legislative counsel, the benefit of these tax credits would begin to be felt by joint filers with incomes slightly above $18,000 dollars a year, or single income filers with incomes slightly above $15,000 per year. Clearly this bill will be of the most benefit to low-income Americans balancing the demands of taxation with the needs of their children. credit AFFORDABILITY OF CHILD HEALTH CARE June 11, 2002    2002 Ron Paul 54:8 The Child Health Care Affordability Act takes a major step toward helping working Americans meet their health care needs by providing them with generous health care related tax cuts and tax credits. I urge my colleagues to support the pro-family, pro-health care tax cuts contained in the Child Health Care Affordability Act. credit Introduction of the Police Security Protection Act June 25, 2002    2002 Ron Paul 59:1 Mr. Speaker, I am pleased to help America’s law enforcement officers by introducing the Police Security Protection Act. This legislation provides police officers with a tax credit for the purchase of armored vests. credit 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. credit Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:7 In the 1930s, it was quite popular to condemn the greed of capitalism, the gold standard, lack of regulation, and a lack government insurance on bank deposits for the disaster. Businessmen became the scapegoat. Changes were made as a result, and the welfare/warfare state was institutionalized. Easy credit became the holy grail of monetary policy, especially under Alan Greenspan, "the ultimate Maestro." Today, despite the presumed protection from these government programs built into the system, we find ourselves in a bigger mess than ever before. The bubble is bigger, the boom lasted longer, and the gold price has been deliberately undermined as an economic signal. Monetary inflation continues at a rate never seen before in a frantic effort to prop up stock prices and continue the housing bubble, while avoiding the consequences that inevitably come from easy credit. This is all done because we are unwilling to acknowledge that current policy is only setting the stage for a huge drop in the value of the dollar. Everyone fears it, but no one wants to deal with it. credit 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! credit Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:15 But now we know that’s just not so. Speculative bubbles and all that we’ve been witnessing are a consequence of huge amounts of easy credit, created out of thin air by the Federal Reserve. We’ve had essentially no savings, which is one of the most significant driving forces in capitalism. The illusion created by low interest rates perpetuates the bubble and all the bad stuff that goes along with it. And that’s not a fault of capitalism. We are dealing with a system of inflationism and interventionism that always produces a bubble economy that must end badly. credit Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:17 This is a bad scenario that need not happen. But preserving our system is impossible if the critics are allowed to blame capitalism and sound monetary policy is rejected. More spending, more debt, more easy credit, more distortion of interest rates, more regulations on everything, and more foreign meddling will soon force us into the very uncomfortable position of deciding the fate of our entire political system. credit Free Housing Market Enhancement Act July 16, 2002    2002 Ron Paul 70:2 One of the major government privileges granted these GSEs is a line of credit to the United States Treasury. According to some estimates, the line of credit may be worth over $2 billion. This explicit promise by the Treasury to bail out these GSEs in times of economic difficulty helps them attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt. credit 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. credit Before the House Ways and Means Committee July 23, 2002    2002 Ron Paul 72:12 Third, the U.S. foreign tax credit, which is intended to prevent double taxation of foreign source income, has a number of deficiencies that increase complexity and prevent full double tax relief. credit 25 July 2002 Monetary Practices    2002 Ron Paul 78:9 Price fixing foils the market. Government mandated ceilings on apartment rental rates, for instance, create housing shortages, as is well known by anyone who has gone apartment hunting in New York City. Similarly, a legislated interest-rate ceiling would cause a credit shortage: The volume of investment funds demanded would exceed people’s actual willingness to save. credit 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. credit 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. credit 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. credit 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). credit 25 July 2002 Monetary Practices    2002 Ron Paul 78:16 The party was in full swing, and the Fed kept the good times rolling by cutting the fed funds rate a whole basis point between June 1998 and January 1999. The rate on 30- year Treasuries dropped from a high of over 7% to a low of 5%. Stock markets soared. The NASDAQ composite went from just over 1000 to over 5000 during the period, rising over 80% in 1999 alone. With abundant credit being freely served to Internet start-ups, hordes of corporate managers, who had seemed married to their stodgy blue-chip companies, suddenly were romancing some sexy dot-com that had just joined the party. credit 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. credit 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. credit Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:28 Is a gold standard feasible again? Of course. The dollar could be redefined in terms of gold. Interest rates would reflect the real supply and demand for credit. We could shut down the Fed and we would never need to worry again what the chairman of the Fed wanted. There was a time when Greenspan was nostalgic for such a system. Investors of the world have come to embrace this view even as Greenspan has completely abandoned it. credit Internet Gambling 1 October 2002    2002 Ron Paul 92:1 Mr. PAUL. Mr. Speaker, H.R. 556 limits the ability of individual citizens to use bank instruments, including credit cards or checks, to finance Internet gambling. This legislation should be rejected by Congress since the federal government has no constitutional authority to ban or even discourage any form of gambling. credit “You Are A Suspect” 14 November 2002    2002 Ron Paul 103:2 [New York Times, Nov. 14, 2002] YOU ARE A SUSPECT (By William Safire) Washington — If the Homeland Security Act is not amended before passage, here is what will happen to you: Every purchase you make with a credit card, every magazine subscription you buy and medical prescription you fill, every Web site you visit and email you send or receive, every academic grade you receive, every bank deposit you make, every trip you book and every event you attend — all these transactions and communications will go into what the Defense Department describes as “a virtual, centralized grand database.” credit Stop Identity Theft – Make Social Security Numbers Confidential January 7, 2003    2003 Ron Paul 4:4 Congressionally-mandated use of the Social Security number as an identifier facilitates the horrendous crime of identity theft. Thanks to Congress, an unscrupulous person may simply obtain someone’s Social Security number in order to access that person’s bank accounts, credit cards, and other financial assets. Many Americans have lost their life savings and had their credit destroyed as a result of identity theft- yet the federal government continues to encourage such crimes by mandating use of the Social Security number as a uniform ID! credit Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:43 The belief that democratic demands can be financed by deficits, credit creation, and taxation is based on false hope and failure to see how it contributes to the turbulence as the democracy collapses. Once a nation becomes a democracy, the whole purpose of government changes. Instead of the government’s goal being that of guaranteeing liberty, equal justice, private property and voluntary exchange, the government embarks on the impossible task of achieving economic equality and micromanaging the economy and protecting citizens from themselves in all their activities. credit Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:61 We believe bin Laden when he takes credit for an attack on the West, and we believe him when he warns us of an impending attack, but we refuse to listen to his explanation of why he and his allies are at war with us. Bin Laden claims are straightforward. The U.S. defiles Islam with bases on the Holy Land and Saudi Arabia, its initiation of war against Iraq, with 12 years of persistent bombing, and its dollars and weapons being used against the Palestinians, as the Palestinian territory shrinks and Israel’s occupation expands. credit Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:79 Paying for it can be quite complicated. The exact method is less consequential than the percent of the nation’s wealth the government commands. Borrowing and central bank credit creation are generally used and are less noticeable, but more deceitful, than direct taxation to pay as we go. credit Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:83 This does not mean that direct taxes will not be continuously raised to pay for out-of-control spending. In a democracy, all earned wealth is assumed to belong to the government. Therefore, not raising taxes, cutting taxes, or granting tax credits are considered “costs” of government. Once this notion is established, tax credits or cuts are given only under condition that the beneficiaries conform to the democratic consensus. Freedom of choice is removed, even if a group is merely getting back control of that which was rightfully theirs in the first place. credit 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. credit The Family Education Freedom Act February 5, 2003    2003 Ron Paul 13:1 Mr. PAUL. Mr. Speaker, I rise today to introduce the Family Education Freedom Act, a bill to empower millions of working and middle-class Americans to choose a non-public education for their children, as well as making it easier for parents to actively participate in improving public schools. The Family Education Freedom Act accomplishes it goals by allowing American parents a tax credit of up to $3,000 for the expenses incurred in sending their child to private, public, parochial, other religious school, or for home schooling their children. credit The Family Education Freedom Act February 5, 2003    2003 Ron Paul 13:4 According to a study by The Polling Company, over 70% of all Americans support education tax credits! This is just one of numerous studies and public opinion polls showing that Americans want Congress to get the federal bureaucracy out of the schoolroom and give parents more control over their children’s education. credit The Family Education Freedom Act February 5, 2003    2003 Ron Paul 13:6 The $3,000 tax credit will make a better education affordable for millions of parents. Mr. Speaker, many parents who would choose to send their children to private, religious, or parochial schools are unable to afford the tuition, in large part because of the enormous tax burden imposed on the American family by Washington. credit The Family Education Freedom Act February 5, 2003    2003 Ron Paul 13:7 The Family Education Freedom Act also benefits parents who choose to send their children to public schools. Parents of children in public schools may use this credit to help improve their local schools by helping finance the purchase of educational tools such as computers or to ensure their local schools can offer enriching extracurricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services, such as tutoring, for their children. credit Teacher Tax Cut Act February 5, 2003    2003 Ron Paul 14:3 This is why I am introducing the Teachers Tax Cut Act. This legislation provides every teacher in America with a $1,000 tax credit. I am also introducing the Professional Educators Tax Relief Act, which extends the $1,000 tax credit to counselors, librarians, and all school personnel involved in any aspect of the K-12 academic program. credit Hope Plus Scholarship Act 5 February 2003    2003 Ron Paul 15:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Hope Plus Scholarship Act, which extends the HOPE scholarship tax credit to K–12 education expenses. Under this bill, parents could use the HOPE Scholarship to pay for private or religious school tuition or to offset the cost of home schooling. In addition, under the bill, all Americans could use the Hope Scholarship to make cash or in-kind donations to public schools. Thus, the Hope Scholarship could help working parents finally afford to send their child to a private school, while other parents could take advantage of the Hope credit to help purchase new computers for their children’s school. I urge my colleagues to join with me in returning education resources to the American people by cosponsoring my Hope Plus Scholarship Act. credit Education Improvement Tax Cut Act February 5, 2003    2003 Ron Paul 16:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Education Improvement Tax Cut Act. This act, a companion to my Family Education Freedom Act, takes a further step toward returning control over education resources to private citizens by providing a $3,000 tax credit for donations to scholarship funds to enable low-income children to attend private schools. It also encourages private citizens to devote more of their resources to helping public schools, by providing a $3,000 tax credit for cash or in-kind donations to public schools to support academic or extra curricular programs. credit Education Improvement Tax Cut Act February 5, 2003    2003 Ron Paul 16:4 Returning control over the education dollar for tax credits for parents and for other concerned citizens returns control over both the means and ends of education policy to local communities. People in one community may use this credit to purchase computers, while children in another community may, at last, have access to a quality music program because of community leaders who took advantage of the tax credit contained in this bill. credit Education Improvement Tax Cut Act February 5, 2003    2003 Ron Paul 16:5 Children in some communities may benefit most from the opportunity to attend private, parochial, or other religious schools. One of the most encouraging trends in education has been the establishment of private scholarship programs. These scholarship funds use voluntary contributions to open the doors of quality private schools to low-income children. By providing a tax credit for donations to these programs, Congress can widen the educational opportunities and increase the quality of education for all children. Furthermore, privately-funded scholarships raise none of the concerns of state entanglement raised by publicly-funded vouchers. credit Prescription Drug Affordability Act February 11, 2003    2003 Ron Paul 17:2 The first provision of my legislation provides seniors a tax credit equal to 80 percent of their prescription drug costs. As many of my colleagues have pointed out, our nation’s seniors are struggling to afford the prescription drugs they need in order to maintain an active and healthy lifestyle. Yet, the federal government continues to impose taxes on Social Security benefits. Meanwhile, Congress continually raids the Social Security trust fund to finance unconstitutional programs! It is long past time for Congress to choose between helping seniors afford medicine or using the Social Security trust fund as a slush fund for big government and pork-barrel spending. credit Prescription Drug Affordability Act February 11, 2003    2003 Ron Paul 17:3 Mr. Speaker, I do wish to clarify that this tax credit is intended to supplement the efforts to reform and strengthen the Medicare system to ensure seniors have the ability to use Medicare funds to purchase prescription drugs. I am a strong supporter of strengthening the Medicare system to allow for more choice and consumer control, including structural reforms that will allow seniors to use Medicare funds to cover the costs of prescription drugs. In addition to making prescription medications more affordable for seniors, my bill lowers the price for prescription medicines by reducing barriers to the importation of FDA-approved pharmaceuticals. Under my bill, anyone wishing to import a drug simply submits an application to the FDA, which then must approve the drug unless the FDA finds the drug is either not approved for use in the US or is adulterated or misbranded. This process will make safe and affordable imported medicines affordable to millions of Americans. Mr. Speaker, letting the free market work is the best means of lowering the cost of prescription drugs. credit Social Security Protection Act Of 2003 5 March 2003    2003 Ron Paul 29:3 Instead of punishing public school teachers, Congress should be encouraging good people to enter the education profession by passing my Teacher Tax Cut Act (H.R. 613) which provides every teacher with a $1,000 tax credit, as well as my Professional Educators Tax Credit Act (H.R. 614), which provides a $1,000 tax credit to counselors, librarians, and all school personnel. Congress should also act to protect the integrity of the Social Security Trust Fund by passing my Social Security Preservation Act (H.R. 219), which ensures that Social Security monies are not spent on other programs. Congress should also pass my Social Security for American Citizens Only Act (H.R. 489), which ensures that noncitizens who have not worked the required number of quarters and illegal immigrants do not receive social security benefits. credit Quality Health Care Coalition Act 12 March 2003    2003 Ron Paul 32:7 Mr. Speaker, it is my hope that Congress will not only remove the restraints on medical professionals’ freedom of contract, but will also empower patients to control their health care by passing my Comprehensive Health Care Reform Act. The Comprehensive Health Care Reform Act puts individuals back in charge of their own health care by expanding access to Medical Savings Accounts and providing Americans with large tax credits and tax deductions for their health care expenses. Putting individuals back in charge of their own health care decisions will enable patients to work with providers to ensure they receive the best possible health care at the lowest possible price. If providers and patients have the ability to form the contractual arrangements that they find most beneficial to them, the HMO monster will wither on the vine without the imposition of new federal regulations on the insurance industry. credit Freedom From Unnecessary Litigation Act 12 March 2003    2003 Ron Paul 33:1 Mr. PAUL. Mr. Speaker, I am pleased to introduce the Freedom from Unnecessary Litigation Act. As its title suggests, this bill provides an effective means of ensuring that those harmed during medical treatment receive fair compensation while reducing the burden of costly malpractice litigation on the health care system. This bill achieves its goal by providing a tax credit for negative outcomes insurance purchased before medical treatment. The insurance will provide compensation for any negative outcomes of the medical treatment. Patients can receive this insurance without having to go through lengthy litigation and without having to give away a large portion of their award to a trial lawyer. credit Crisis In Healthcare 13 March 2003    2003 Ron Paul 35:3 Returning control over health care to the individual is the key to true health care reform. This is why today I am introducing the Comprehensive Health Care Reform Act. This legislation puts control of health care back into the hands of the individual through tax credits, tax deductions, Medical Savings Accounts, and Flexible Savings Accounts. Specifically, the Comprehensive Health Care Reform Act: credit Crisis In Healthcare 13 March 2003    2003 Ron Paul 35:4 A. Provides all Americans with a tax credit for 100% of health care expenses. The tax credit is fully refundable against both income and payroll taxes. credit Comprehensive Health Care Reform Without Socialized Medicine March 27, 2003    2003 Ron Paul 40:3 Returning control over health care to the individual is the key to true health care reform. This why today I am introducing the Comprehensive Health Care Reform Act. This legislation puts control of health care back into the hands of the individual through tax credits, tax deductions, Medical Savings Accounts, and Flexible Savings Accounts. Specifically, the Comprehensive Health Care Reform Act: credit Comprehensive Health Care Reform Without Socialized Medicine March 27, 2003    2003 Ron Paul 40:4 A. Provides all Americans with a tax credit for 100% of health care expenses. The tax credit is fully refundable against both income and payroll taxes- meaning even low-income taxpayers benefit; credit Social Security Protection Act 2 April 2003    2003 Ron Paul 44:3 Instead of punishing public school teachers, Congress should be encouraging good people to enter the education profession by passing my Teacher Tax Cut Act (HR 613) which provides every teacher with a $1,000 tax credit, as well as my Professional Educators Tax Credit act (HR 614), which provides a $1,000 tax credit to counselors, librarians, and all school personnel. Congress should also act to protect the integrity of the Social Security Trust Fund by passing my Social Security Preservation Act (HR 219), which ensures that Social Security monies are not spent on other programs. Congress should also pass my Social Security for American Citizens Only Act (HR 489), which ensures that non-citizens who have not worked the required number of quarters and illegal immigrants do not receive social security benefits. credit Rice Farmers Fairness Act 2 April 2003    2003 Ron Paul 45:6 Mr. Speaker, I rise to help parents of children with special educational needs by introducing the Help and Opportunities for Parents of Exceptional Children (HOPE for Children) Act of 2003. This bill allows parents of children with a learning disability an up to $3,000 tax credit for educational expenses. Parents could use this credit to pay for special services for their child, or to pay tuition at private school or even to home school their child. By allowing parents of special needs children to control the education dollar, the HOPE for Children Act allows parents to control their child’s education. Thus, this bill helps parents of special needs children provide their child an education tailored to the child’s unique needs. credit America National Sovereignty vs. UN “International Law” – Time for Congress to Vote April 29, 2003    2003 Ron Paul 51:2 Obviously many Americans now want to get out of the UN because they resent its refusal to sanction our war in Iraq. The administration deserves some credit for ultimately upholding the principle that American national security is not a matter of international consensus, and that we don’t need UN authorization to act. But the administration sent mixed signals by doing everything possible to obtain such authorization, and by citing UN resolutions as justification for our actions. The message seems to be that the UN is credible when we control it and it does what we want, but lacks all credibility when it refuses to do our bidding. credit Improving Educational Results For Children With Disabilities Act 30 April 2003    2003 Ron Paul 52:10 Instead of placing more federal control on education, Congress should allow parents of disabled children the ability to obtain the type of education appropriate for that child’s unique needs by passing my Help and Opportunities for Parents of Exceptional Children (HOPE for Children) Act of 2003, H.R. 1575. This bill allows parents of children with a learning disability a tax cut of up to $3,000 for educational expenses. Parents could use this credit to pay for special services for their child, or to pay tuition at private school or even to home school their child. By allowing parents of special needs children to control the education dollar, the HOPE for Children Act allows parents to control their child’s education. Thus, this bill helps parents of special needs children provide their child an education tailored to the child’s unique needs. credit 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. credit Unlawful Internet Gambling Funding Prohibition Act 10 June 2003    2003 Ron Paul 66:1 Mr. PAUL. Mr. Chairman, H.R. 2143 limits the ability of individual citizens to use bank instruments, including credit cards or checks, to finance Internet gambling. This legislation should be rejected by Congress since the Federal Government has no constitutional authority to ban or even discourage any form of gambling. credit Legislation To Prohibit The Federal Government From Imposing A “Carry Tax” 17 July 2003    2003 Ron Paul 78:3 The carry tax was proposed as a measure to counteract the perceived risk of deflation. Yet, the problems this carry tax is intended to solve are caused by our government’s boomand- bust monetary policy. Any perceived deflation in the American economy is the result of the end of the inflationary period of the nineties that created the stock market bubble. When the bubble burst, there was the inevitable process of liquidating bad investments caused by the misallocation of credit as a result of the Federal Reserve monetary policy. In fact, this liquidation is necessary for the economy to recover from the economic misallocations caused by the Federal Reserve’s monetary policy. credit The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:11 In fact the “gold bugs,” as they’re known, are so sure of their research that not only do they believe the price of gold will continue to climb, but many are expecting to see prices of $800 to $1,000 an ounce. Until recently, most in the gold and financial worlds scoffed at such a prediction, but last month the Bank of Portugal made an announcement that shocked those who credit official gold-reserve data and added fuel to the contention of the gold bugs that the “gold-cartel” manipulation is in meltdown. credit The Foreign Aid Limitation Act 17 July 2003    2003 Ron Paul 80:2 The Foreign Aid Limitation Act prohibits the Secretary of the Treasury from using the ESF to make a loan or extend credit to any foreign government or entity for an amount exceeding $250,000,000. The bill also forbids the ESF from being used to finance a loan or to extend credit, to any foreign government or entity for a period exceeding 60 days. The 60-day limitation can be waived if the President certifies in writing to the Chair and ranking members of the relevant House and Senate Committees that the United States obtained an assured source of repayment before making the loan or extending the credit. Finally, the bill prohibits the use of the ESF to make loans or extend credit in an amount exceeding $1,000,000,000 to a foreign government or entity without express statutory authorization. This provision can also be waived if the President certifies in writing to the heads of the relevant committees that the loan is necessary to address a financial crisis threatening the United States and Congress does not pass a joint resolution disapproving the loan or credit. credit 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. credit Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:10 [From USA Daily, May 6, 2003] THE GREATEST THEFT IN HISTORY (By Murray Sabrin) If you have a savings account, your bank probably credits it with interest every month. At the end of the month, you expect the bank to pay you the amount of interest it was obligated to pay you — no more no less. In other words, you would not expect the bank to change the interest it was going to pay you unless your account explicitly allows the bank to readjust the interest rate at its discretion. credit Legislation To Withdraw The United States From The Bretton Woods Agreement 17 July 2003    2003 Ron Paul 84:1 Mr. PAUL. Mr. Speaker, I rise to introduce legislation to withdraw the United States from the Bretton Woods Agreement and thus end taxpayer support for the International Monetary Fund (IMF). Rooted in a discredited economic philosophy and a complete disregard for fundamental constitutional principles, the IMF forces American taxpayers to subsidize large, multinational corporations and underwrite economic destruction around the globe. This is because the IMF often uses the $46.7 billion line of credit provided to it by the American taxpayers to bribe countries to follow destructive, statist policies. credit 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. credit 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. credit 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. credit 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. credit 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. credit 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. credit 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. credit 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. credit 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. credit 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. credit 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. credit Fannie Mae and Freddie Mac Subsidies Distort the Housing Market September 10, 2003    2003 Ron Paul 95:3 One of the major government privileges granted to GSEs is a line of credit with the United States Treasury. According to some estimates, the line of credit may be worth over $2 billion dollars. This explicit promise by the Treasury to bail out GSEs in times of economic difficulty helps the GSEs attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a huge unconstitutional and immoral income transfer from working Americans to holders of GSE debt. credit Introducing Free Housing Market Enhancement Act 10 September 2003    2003 Ron Paul 96:2 One of the major government privileges granted the GSE is a line of credit to the United States Treasury. According to some estimates, the line of credit may be worth over $2 billion dollars. This explicit promise by the Treasury to bail out the GSEs in times of economic difficulty helps the GSEs attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt. credit 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. credit Are Vouchers the Solution for Our Failing Public Schools? September 30, 2003    2003 Ron Paul 103:13 I have also introduced the Education Improvement Tax Cut Act (H.R. 611) that provides a tax credit of up to $3,000 for in-kind or cash donation to public, private, or home schools. The Education Improvement Tax Cut Act relies on the greatest charitable force in history to improve the education of children from low-income families: the generosity of the American people. As with parental tax credits, the Education Improvement Tax Cut Act brings true accountability to education since taxpayers will only donate to schools that provide a quality education. credit Are Vouchers the Solution for Our Failing Public Schools? September 30, 2003    2003 Ron Paul 103:14 Mr. Speaker, proponents of vouchers promise these programs advance true market principles and thus improve education. However, there is a real danger that Federal voucher programs will expand the welfare state and impose government “standards” on private schools, turning them into “privatized” versions of public schools. A superior way of improving education is to return control of the education dollar directly to the American people through tax cuts and tax credits. I therefore hope all supporters of parental control of education will support my Family Education Freedom Act and Education Improvement Tax Cut Act. credit American Dream Downpayment Act 1 October 2003    2003 Ron Paul 104:6 I hope no one confuses my opposition to this bill as opposition to any congressional actions to ensure more Americans have access to affordable housing. After all, one reason many Americans lack affordable housing is because taxes and regulations have made it impossible for builders to provide housing at a price that could be afforded by many lower-income Americans. Therefore, Congress should cut taxes and regulations. A good start would be generous housing tax credits. Congress should also consider tax credits and regulatory relief for developers who provide housing for those with low incomes. For example, I am cosponsoring H.R. 839, the Renewing the Dream Tax Credit Act, which provides a tax credit to developers who construct or rehabilitate low-income housing. credit Encouraging People’s Republic Of China To Fulfill Commitments Under International Trade Agreements, Support United States Manufacturing Sector, And Establish Monetary And Financial Market Reforms 29 october 2003    2003 Ron Paul 115:8 In fact, Mr. Speaker, our ability to continue to fund the welfare-warfare state without destroying the American economy depends on foreigners buying our debt. Perhaps we should think twice before we start bullying and browbeating our foreign creditors to change their economic or other polices to our liking. credit Best Energy Policy Is The Free Market 18 November 2003    2003 Ron Paul 118:5 Let me provide just a few examples of the most egregious, wasteful spending measures and corporate subsidies contained in this legislation: It spends even more than the President requested; it provides $90 million in subsidies for hydroelectric power plants; it provides $500 million for research and development of Biomass; it authorizes almost $2 billion for the Energy Department to do what the private sector would if it was profitable — develop hydrogen cars; it allows FERC to use eminent domain to ride roughshod over State and local governments; it increases failed ethanol subsidies to favored agribusiness companies, while providing liability protection for those companies; it requires States to reduce energy consumption by 25 percent in 2010, including States with growing populations like Texas; it forces taxpayers to guarantee loans for pipeline projects, despite the easy availability of cheap credit; it spends $20 million for the Labor Department to recruit and train Alaskan employees to build a new pipeline; and it authorizes the Energy Department to create efficiency standards for vending machines! credit Whose Peace? December 8, 2003    2003 Ron Paul 123:6 To his credit, President Bush has demonstrated an open mind toward this alternative approach. He declared the Geneva Initiative “productive,” and added that the United States “appreciates people discussing peace.” Secretary of State Colin Powell echoed the president when he resisted hard-line pressure to ignore the proposed accord, stating, “I have an obligation to listen to individuals who have interesting ideas.” This is also encouraging. credit 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. credit Social Security Protection Act 11 February 2004    2004 Ron Paul 3:5 Congress should also be encouraging good people to enter the education profession by passing my Teacher Tax Cut Act (H.R. 613) that provides every teacher with a $1,000 tax credit, as well as my Professional Educators Tax Credit Act (H.R. 614), which provides a $1,000 tax credit to counselors, librarians, and all school personnel. credit Unborn Victims Of Violence Act 26 February 2004    2004 Ron Paul 8:8 Occasionaly the argument is put forth that States may be less effective than a centralized Federal Government in dealing with those who leave one State jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of State sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow States to exact judgments from those who violate their State laws. The Constitution even allows the Federal Government to legislatively preserve the procedural mechanisms which allow States to enforce their substantive laws without the Federal Government imposing its substantive edicts on the States. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one State to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon States in working with one another rather than relying on a national, unified police force. At the same time, there is a greater cost to centralization of police power. credit Opposing H.R. 557 17 March 2004    2004 Ron Paul 19:11 Pursuant to the Reagan administration’s policy of increasing support for Iraq, the State Department advises Under Secretary of State for Political Affairs Lawrence Eagleburger to urge the U.S. Export-Import Bank to provide Iraq with financial credits. Eagleburger signs a letter to Eximbank saying that since Saddam Hussein had complied with U.S. requests, and announced the end of all aid to the principal terrorist group of concern to the U.S., and expelled its leader (Abu Nidal), “The terrorism issue, therefore, should no longer be an impediment to EXIM financing for U.S. sales to Iraq.” The financing is to signal U.S. belief in Iraq’s future economic viability, secure a foothold in the potentially large Iraqi market, and “go far to show our support for Iraq in a practical, neutral context.” credit The Child Health Care Affordability Act 24 March 2004    2004 Ron Paul 23:1 Mr. PAUL. Mr. Speaker, I am pleased to help working Americans provide for their children’s health care needs by introducing the Child Health Care Affordability Act. The Child Health Care Affordability Act provides parents with a tax credit of up to $500 for health care expenses of dependent children. Parents caring for a child with a disability, terminal disease, cancer, or any other health condition requiring specialized care would receive a tax credit of up to $3,000 to help cover their child’s health care expenses. credit The Child Health Care Affordability Act 24 March 2004    2004 Ron Paul 23:2 The tax credit would be available to all citizens, regardless of whether or not they itemize their deductions. The credit applies against both income and payroll tax liability. The tax credits provided in this bill will be especially helpful to those Americans whose employers cannot afford to provide health insurance for their employees. These workers must struggle to meet the medical bills of themselves and their families. This burden is especially heavy on parents whose children have a medical condition; such as cancer or a physical disability that requires long-term or specialized health care. credit The Child Health Care Affordability Act 24 March 2004    2004 Ron Paul 23:3 As an OB–GYN who has had the privilege of delivering more than four thousand babies, I know how important it is that parents have the resources to provide adequate health care for their children. The inability of many working Americans to provide health care for their children is rooted in one of the great inequities of the tax code — Congress’ failure to allow individuals the same ability to deduct health care costs that it grants to businesses. As a direct result of Congress’ refusal to provide individuals with health care related tax credits, parents whose employers do not provide health insurance have to struggle to provide health care for their children. Many of these parents work in low-income jobs; oftentimes, their only recourse for health care is the local emergency room. credit The Child Health Care Affordability Act 24 March 2004    2004 Ron Paul 23:4 Sometimes parents are forced to delay seeking care for their children until minor health concerns that could have been easily treated become serious problems requiring expensive treatment! If these parents had access to the type of tax credits provided in the Child Health Care Affordability Act, they would be better able to provide care for their children, and our nation’s already overcrowded emergency rooms would be relieved of the burden of having to provide routine care for people who otherwise cannot afford it. credit The Child Health Care Affordability Act 24 March 2004    2004 Ron Paul 23:5 According to research on the effects of this bill done by my staff and legislative counsel, the benefit of these tax credits would begin to be felt by joint filers with incomes slightly above $18,000 per year, or single income filers with incomes slightly above $15,000 per year. Clearly, this bill will be of the most benefit to low-income Americans balancing the demands of taxation with the needs of their children. credit The Child Health Care Affordability Act 24 March 2004    2004 Ron Paul 23:8 The Child Health Care Affordability Act takes a major step toward helping working Americans meet their health care needs by providing them with generous health care related tax cuts and tax credits. I urge my colleagues to support the pro-family, pro-health care tax cuts contained in the Child Health Care Affordability Act. credit 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. credit Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:6 The Left hardly deserves credit when complaining about Republican deficits. Likewise, we’ve been told by the Vice President that Ronald Reagan “proved deficits don’t matter”- a tenet of supply-side economics. With this the prevailing wisdom in Washington, no one should be surprised that spending and deficits are skyrocketing. The vocal concerns expressed about huge deficits coming from big spenders on both sides are nothing more than political grandstanding. If Members feel so strongly about spending, Congress simply could do what it ought to do- cut spending. That, however, is never seriously considered by either side. credit 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? credit Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:10 Paying for government spending with Federal Reserve credit, instead of taxing or borrowing from the public, is anything but a good deal for everyone. In fact it is the most sinister seductive “tax” of them all. Initially it is unfair to some, but dangerous to everyone in the end. It is especially harmful to the middle class, including lower-income working people who are thought not to be paying taxes. credit Financing Operations, Export Financing, And Related Programs Appropriations Act, 2005 15 July 2004    2004 Ron Paul 60:6 There are two economic points that I want to make on this. When we do this and we allow tax credit and special deals for some corporations, we assume, and we will hear this in the defense of the Ex-Im Bank, and say look at the good that we do. But what they fail to ask is, where did it come from, who was denied the credit? The fact that we do not finance it does not mean it would not happen. It would happen. credit Financing Operations, Export Financing, And Related Programs Appropriations Act, 2005 15 July 2004    2004 Ron Paul 60:7 What it does is it distorts the market and causes people to do the wrong thing, and some individuals do not get the credit is obviously the case, but what we need to do is to have a much more oriented free market. When we direct it this way, even those companies may do more than they ordinarily would, and that participates in the economic bubble that occurs, of course, for other reasons as well. Then there has to be corrections. But if one is in a powerful position in a place where they can qualify, and 80 percent of this goes to the very, very large companies, although there are a lot of companies that receive the big bucks, and big countries like China. credit Protecting Marriage from Judicial Tyranny July 22, 2004    2004 Ron Paul 64:5 One way federal courts may impose a redefinition of marriage on the states is by interpreting the full faith and credit clause to require all states, even those which do not grant legal standing to same-sex marriages , to treat as valid same-sex marriage licenses from the few states which give legal status to such unions. This would have the practical effect of nullifying state laws defining marriage as solely between a man and a woman, thus allowing a few states and a handful of federal judges to create marriage policy for the entire nation. credit Protecting Marriage from Judicial Tyranny July 22, 2004    2004 Ron Paul 64:6 In 1996 Congress exercised its authority under the full faith and credit clause of Article IV of the Constitution by passing the Defense of Marriage Act. This ensured each state could set its own policy regarding marriage and not be forced to adopt the marriage policies of another state. Since the full faith and credit clause grants Congress the clear authority to “prescribe the effects” that state documents such as marriage licenses have on other states, the Defense of Marriage Act is unquestionably constitutional. However, the lack of respect federal judges show for the plain language of the Constitution necessitates congressional action so that state officials are not forced to recognize another states’ same-sex marriage licenses because of a flawed judicial interpretation. The drafters of the Constitution gave Congress the power to limit federal jurisdiction to provide a check on out-of-control federal judges. It is long past time we begin using our legitimate authority to protect the states and the people from judicial tyranny. credit The Constitution 23 September 2004    2004 Ron Paul 70:3 Early on the supporters of strong centralized government promoted central banking, easy credit, protectionism, mercantilism and subsidies for corporate interests. credit Cultural Conservatives Lose if Gay Marriage is Federalized September 30, 2004    2004 Ron Paul 73:3 If I were in Congress in 1996, I would have voted for the Defense of Marriage Act, which used Congress’s constitutional authority to define what official state documents other states have to recognize under the Full Faith and Credit Clause, to ensure that no state would be forced to recognize a “same sex” marriage license issued in another state. This Congress, I was an original cosponsor of the Marriage Protection Act, HR 3313, that removes challenges to the Defense of Marriage Act from federal courts’ jurisdiction. If I were a member of the Texas legislature, I would do all I could to oppose any attempt by rogue judges to impose a new definition of marriage on the people of my state. credit 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. credit Raising the Debt Limit: A Disgrace November 18, 2004    2004 Ron Paul 79:9 The only way to control federal spending is to take away the government’s credit card. Therefore, I call upon my colleagues to reject S. 2986 and, instead, to reduce government spending. It is time Congress forces the federal government to live within its constitutional means. Congress should end the immoral practice of excessive spending and passing the bill to the next generation. credit Introducing The Identity Theft protection Act 4 January 2005    2005 Ron Paul 2:4 Congressionally mandated use of the Social Security number as an identifier facilitates the horrendous crime of identity theft. Thanks to Congress, an unscrupulous person may simply obtain someone’s Social Security number in order to access that person’s bank accounts, credit cards, and other financial assets. Many Americans have lost their life savings and had their credit destroyed as a result of identity theft. Yet the Federal Government continues to encourage such crimes by mandating use of the Social Security number as a uniform ID. credit Government IDs and Identity Theft January 6, 2005    2005 Ron Paul 5:4 Congressionally-mandated use of the Social Security number as an identifier facilitates the horrendous crime of identity theft. Thanks to Congress, an unscrupulous person may simply obtain someone’s Social Security number in order to access that person’s bank accounts, credit cards, and other financial assets. Many Americans have lost their life savings and had their credit destroyed as a result of identity theft. Yet the federal government continues to encourage such crimes by mandating use of the Social Security number as a uniform ID! credit Family Education Freedom Act 26 January 2005    2005 Ron Paul 9:1 Mr. PAUL. Mr. Speaker, I rise today to introduce the Family Education Freedom Act, a bill to empower millions of working and middle- class Americans to choose a non-public education for their children, as well as making it easier for parents to actively participate in improving public schools. The Family Education Freedom Act accomplishes its goals by allowing American parents a tax credit of up to $3,000 for the expenses incurred in sending their child to private, public, parochial, other religious school, or for home schooling their children. credit Family Education Freedom Act 26 January 2005    2005 Ron Paul 9:4 According to a June 2001 poll by McLaughlin and Associates, two-thirds of Americans believe education tax credits would have a positive effect on American education. This poll also found strong support for education tax credits among liberals, moderates, conservatives, low-income individuals, and African- Americans. This is just one of numerous studies and public opinion polls showing that Americans want Congress to get the federal bureaucracy out of the schoolroom and give parents more control over their children’s education. credit Family Education Freedom Act 26 January 2005    2005 Ron Paul 9:6 The $3,000 tax credit will make a better education affordable for millions of parents. Mr. Speaker, many parents who would choose to send their children to private, religious, or parochial schools are unable to afford the tuition, in large part because of the enormous tax burden imposed on the American family by Washington. credit Family Education Freedom Act 26 January 2005    2005 Ron Paul 9:7 The Family Education Freedom Act also benefits parents who choose to send their children to public schools. Parents of children in public schools may use this credit to help improve their local schools by helping finance the purchase of educational tools such as computers or to ensure their local schools can offer enriching extracurricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services, such as tutoring, for their children. credit Introducing The Hope Plus Scholarship Act 26 January 2005    2005 Ron Paul 12:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Hope Plus Scholarship Act, which expands the Hope Education Scholarship credit to cover K–12 education expenses. Under this bill, parents could use the Hope Scholarship to pay for private or religious school tuition or to offset the cost of home schooling. In addition, under the bill, all Americans could use the Hope Scholarship to make cash or in-kind donations to public schools. Thus, the Hope Scholarship could help working parents send their child to a private school, while other patents could take advantage of the Hope credit to help purchase new computers for their children’s local public school. credit Introduction Of The Teacher Tax Cut And The Professional Educators Tax relief Act 26 January 2005    2005 Ron Paul 13:3 This is why I am introducing the Teachers Tax Cut Act. This legislation provides every teacher in America with a $1,000 tax credit. I am also introducing the Professional Educators Tax Relief Act, which extends the $1,000 tax credit to counselors, librarians, and all school personnel involved in any aspect of the K–12 academic program. credit Introduction Of The Education Improvement Tax Cut Act 26 January 2005    2005 Ron Paul 14:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Education Improvement Tax Cut Act. This act, a companion to my Family Education Freedom Act, takes a further step toward returning control over education resources to private citizens by providing a $3,000 tax credit for donations to scholarship funds to enable low-income children to attend private schools. It also encourages private citizens to devote more of their resources to helping public schools, by providing a $3,000 tax credit for cash or in-kind donations to public schools to support academic or extra curricular programs. credit Introduction Of The Education Improvement Tax Cut Act 26 January 2005    2005 Ron Paul 14:4 Returning control over the education dollar for tax credits for parents and for other concerned citizens returns control over both the means and ends of education policy to local communities. People in one community may use this credit to purchase computers, while children in another community may, at last, have access to a quality music program because of community leaders who took advantage of the tax credit contained in this bill. credit Introduction Of The Education Improvement Tax Cut Act 26 January 2005    2005 Ron Paul 14:5 Children in some communities may benefit most from the opportunity to attend private, parochial, or other religious schools. One of the most encouraging trends in education has been the establishment of private scholarship programs. These scholarship funds use voluntary contributions to open the doors of quality private schools to low-income children. By providing a tax credit for donations to these programs, Congress can widen the educational opportunities and increase the quality of education for all children. Furthermore, privately- funded scholarships raise none of the concerns of state entanglement raised by publicly- funded vouchers. credit Introduction Of The Prescription Drug Affordability Act 2 February 2005    2005 Ron Paul 18:2 The first provision of my legislation provides seniors a tax credit equal to 80 percent of their prescription drug costs. While Congress did add a prescription drug benefit to Medicare in the last Congress, many seniors still have difficulty affording the prescription drugs they need in order to maintain an active and healthy lifestyle. One reason is because the new program creates a “doughnut hole,” where seniors lose coverage once their prescription expenses reach a certain amount and must pay for their prescriptions above a certain amount out of their own pockets until their expenses reach a level where Medicare coverage resumes. This tax credit will help seniors cover the expenses provided by the doughnut hole. This bill will also help seniors obtain prescription medicines that may not be covered by the new Medicare prescription drug program. credit Federalizing Abortion Law 27 April 2005    2005 Ron Paul 42:7 The argument which springs from the criticism of a federalized criminal code and a Federal police force is that States may be less effective than a centralized Federal Government in dealing with those who leave one State jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of State sovereignty over those issues delegated to it via the 10th amendment. The privilege and immunities clause as well as full faith and credit clause allow States to exact judgments from those who violate their State laws. The Constitution even allows the Federal Government to legislatively preserve the procedural mechanisms which allow States to enforce their substantive laws without the Federal Government imposing its substantive edicts on the States. Article IV, section 2, clause 2 makes provision for the rendition of fugitives from one State to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon States in working with one another rather than relying on a national, unified police force. At the same time, there is a greater cost to State autonomy and individual liberty from centralization of police power. credit 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. credit Police Security Protection Act 8 June 2005    2005 Ron Paul 55:1 Mr. PAUL. Mr. Speaker, I am pleased to help America’s law enforcement officers by introducing the Police Security Protection Act. This legislation provides police officers a tax credit for the purchase of armored vests. credit The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:32 Already we are seeing signs on the horizon that this free ride for us is coming to an end. Price inflation is alive and well and much worse than government statistics show. The sluggish economy suggests that the super stimulation of easy credit over the last decades is no longer sufficient to keep the economy strong. Our personal consumption and government spending are dependent on borrowing from foreign lenders. Artificially high standards of living can mask the debt accumulation that it requires while needed savings remain essentially nil. credit 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. credit Introducing The Comprehensive Health Care Act 27 June 2005    2005 Ron Paul 75:4 Returning control over health care to the individual is the key to true health care reform. The Comprehensive Health Care Reform Act puts control of health care back into the hands of the individual through tax credits, tax deductions, Health Care Savings Accounts (HSA), and Flexible Savings Accounts. By giving individuals tax incentives to purchase their own health care, the Comprehensive Health Care Act will help more Americans obtain quality health insurance and health care. Specifically, the Comprehensive Health Care Act: credit Introducing The Comprehensive Health Care Act 27 June 2005    2005 Ron Paul 75:5 A. Provides all Americans with a tax credit for 100% of health care expenses. The tax credit is fully refundable against both income and payroll taxes. credit Introducing The Freedom From Unnecessary Litigation Act 27 June 2005    2005 Ron Paul 77:1 Mr. PAUL. Mr. Speaker, I am pleased to introduce the Freedom from Unnecessary Litigation Act. As its title suggests, this bill provides an effective means of ensuring that those harmed during medical treatment receive fair compensation while reducing the burden of costly malpractice litigation on the health care system. This bill achieves its goal by providing a tax credit for negative outcomes insurance purchased before medical treatment. The insurance will provide compensation for any negative outcomes of the medical treatment. Patients can receive this insurance without having to go through lengthy litigation and without having to give away a large portion of their award to a trial lawyer. credit Introducing The Quality Health Care Coalition Act 27 June 2005    2005 Ron Paul 78:7 Mr. Speaker, it is my hope that Congress will not only remove the restraints on medical professionals’ freedom of contract, but will also empower patients to control their health care by passing my Comprehensive Health Care Reform Act. The Comprehensive Health Care Reform Act puts individuals back in charge of their own health care by providing Americans with large tax credits and tax deductions for their health care expenses, including a deduction for premiums for a high-deductible insurance policy purchased in combination with a Health Savings Account. Putting individuals back in charge of their own health care decisions will enable patients to work with providers to ensure they receive the best possible health care at the lowest possible price. If providers and patients have the ability to form the contractual arrangements that they find most beneficial to them, the HMO monster will wither on the vine without the imposition of new Federal regulations on the insurance industry. credit Introducing The Child Health Care Affordability Act 27 June 2005    2005 Ron Paul 80:1 Mr. PAUL. Mr. Speaker, I am pleased to help working Americans provide for their children’s health care needs by introducing the Child Health Care Affordability Act. The Child Health Care Affordability Act provides parents with a tax credit of up to $500 for health care expenses of dependent children. Parents caring for a child with a disability, terminal disease, cancer, or any other health condition requiring specialized care would receive a tax credit of up to $3,000 to help cover their child’s health care expenses. credit Introducing The Child Health Care Affordability Act 27 June 2005    2005 Ron Paul 80:2 The tax credit would be available to all citizens, regardless of whether or not they itemize their deductions. The credit applies against both income and payroll tax liability. The tax credits provided in this bill will be especially helpful to those Americans whose employers cannot afford to provide health insurance for their employees. These workers must struggle to meet the medical bills of themselves and their families. This burden is especially heavy on parents whose children have a medical condition; such as cancer or a physical disability that requires long-term or specialized health care. credit Introducing The Child Health Care Affordability Act 27 June 2005    2005 Ron Paul 80:3 As an OB–GYN who has had the privilege of delivering more than four thousand babies, I know how important it is that parents have the resources to provide adequate health care for their children. The inability of many working Americans to provide health care for their children is rooted in one of the great inequities of the tax code — Congress’ failure to allow individuals the same ability to deduct health care costs that it grants to businesses. As a direct result of Congress’ refusal to provide individuals with health care related tax credits, parents whose employers do not provide health insurance have to struggle to provide health care for their children. Many of these parents work in low-income jobs; oftentimes, their only recourse for health care is the local emergency room. credit Introducing The Child Health Care Affordability Act 27 June 2005    2005 Ron Paul 80:4 Sometimes parents are forced to delay seeking care for their children until minor health concerns that could have been easily treated become serious problems requiring expensive treatment! If these parents had access to the type of tax credits provided in the Child Health Care Affordability Act, they would be better able to provide care for their children, and our nation’s already overcrowded emergency rooms would be relieved of the burden of having to provide routine care for people who otherwise cannot afford it. credit Introducing The Child Health Care Affordability Act 27 June 2005    2005 Ron Paul 80:5 According to research on the effects of this bill done by my staff and legislative counsel, the benefit of these tax credits would begin to be felt by joint filers with incomes slightly above $18,000 per year, or single income filers with incomes slightly above $15,000 per year. Clearly, this bill will be of the most benefit to low-income Americans balancing the demands of taxation with the needs of their children. credit Introducing The Child Health Care Affordability Act 27 June 2005    2005 Ron Paul 80:8 The Child Health Care Affordability Act takes a major step toward helping working Americans meet their health care needs by providing them with generous health care related tax cuts and tax credits. I urge my colleagues to support the pro-family, pro-health care tax cuts contained in the Child Health Care Affordability Act. credit Introduction Of The Cures Can Be Found Act 26 July 2005    2005 Ron Paul 91:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Cures Can Be Found Act. This legislation promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research, and provides a $2,000 tax credit to new parents for the donation of umbilical cord blood that can be used to extract stem cells. credit Introduction Of The Cures Can Be Found Act 26 July 2005    2005 Ron Paul 91:3 By providing tax incentives for adult and umbilical cord blood stem cell research, the Cures Can Be Found Act will ensure greater resources are devoted to this valuable research. The tax credit for donations of umbilical cord blood will ensure that medical science has a continuous supply of stem cells. Thus, this bill will help scientists discover new cures using stem cells and, hopefully, make routine the use of stem cells to treat formally incurable diseases. credit Introducing The Texas Educator Retirement Equity Act 6 September 2005    2005 Ron Paul 94:5 Congress should also be encouraging good people to enter the education profession by passing my Teacher Tax Cut Act (H.R. 402) that provides every teacher with a $1,000 tax credit, as well as my Professional Educators Tax Relief Act (H.R. 405) that provides a $1,000 tax credit to counselors, librarians, and all school personnel. credit Introducing The Evacuees Tax Relief Act 17 October 2005    2005 Ron Paul 103:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Evacuees Tax Relief Act of 2005, legislation providing tax relief to those forced to abandon their homes because of a natural disaster. This legislation provides a tax credit or a tax deduction, depending on the wishes of the taxpayer, of up to $5,000 for costs incurred because of a government-ordered mandatory or voluntary evacuation. Evacuees could use the credit to cover travel and lodging expenses associated with the evacuation, lost wages, property damages not otherwise compensated, and any other evacuation-related expenses. The tax credit is refundable up to the amount of income and payroll taxes a person would otherwise pay, thus ensuring working people who pay more in payroll than in income taxes are able to benefit from this tax relief. The credit is available retroactive to August of this year, so it is available to Katrina and Rita evacuees. credit Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:2 One of the major privileges the Federal Government grants to the GSEs is a line of credit from the United States Treasury. According to some estimates, the line of credit may be worth over two billion dollars. GSEs also benefit from an explicit grant of legal authority given to the Federal Reserve to purchase the debt of the GSEs. GSEs are the only institutions besides the United States Treasury granted explicit statutory authority to monetize their debt through the Federal Reserve. This provision gives the GSEs a source of liquidity unavailable to their competitors. credit Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:3 This implicit promise by the government to bail out the GSEs in times of economic difficulty helps the GSEs attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt. This is why I am offering an amendment to cut off this line of credit. I hope my colleagues join me in protecting taxpayers from having to bail out Fannie Mae and Freddie Mac when the housing bubble bursts. credit Amendment No. 6 Offered By Mr. Paul — Part 1 26 October 2005    2005 Ron Paul 109:3 Mr. PAUL. Mr. Chairman, my amendment is straightforward. It cuts off a line of credit to the Treasury. The GSEs have a line of credit of $2 billion. It is said that it is not important because they never use it. The answer really to that is if they never use it, why leave it on the books. But we do know they indirectly use it. It has been described as a subsidy, because the GSEs can go into the market and get a discount on their loan costs; therefore, they can out-compete the private sector. My amendment merely eliminates that line of credit, puts a greater burden on the marketplace to regulate the GSEs rather than depending on regulation. credit 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. credit Amendment No. 6 Offered By Mr. Paul — Part 1 26 October 2005    2005 Ron Paul 109:6 One of the major reasons is the fact that it has this special line of credit. So if we want to address the real cause of the problem, we have to eliminate the line of credit. So it rather amazes me that we do this much legislating without addressing the real cause of our problem. credit Amendment No. 6 Offered By Mr. Paul — Part 1 26 October 2005    2005 Ron Paul 109:7 Of course, there are other things that contribute to the housing bubble, something that we cannot deal with today, but the fact that there is easy credit and low interest rates, interest rates below the market level, that is then directed into the housing market. This also contributes to the size and the scope of the borrowing capacity of the GSEs. credit Amendment No. 6 Offered By Mr. Paul — Part 2 26 October 2005    2005 Ron Paul 110:7 My argument is if we do not solve the problem of basic underlying inflation distortion of interest rates, allocation of funds through housing programs, as well as this line of credit, believe me, we are not going to solve this problem. Please vote to strike this line of credit to the Treasury. credit Amendment No. 6 Offered By Mr. Paul — Part 2 26 October 2005    2005 Ron Paul 110:8 As it was stated earlier on this floor, we may have some regulations built into this that may even precipitate the puncturing of the housing bubble. That nobody can predict. But without addressing the basic flaw in the system that has created this $5 trillion worth of debt, believe me, we will not have an answer. I urge a “yes” vote on this amendment. The Acting CHAIRMAN (Mr. BISHOP of Utah). The time of the gentleman from Texas has expired. Mr. FRANK of Massachusetts. Mr. Chairman, I yield myself 30 seconds. The gentleman’s amendment actually does not go quite far enough, but he has a germaneness problem. What he really wants to do is abolish HUD, given his philosophy. He does not think there should be a Federal housing program. Since he cannot get at HUD, he goes after Fannie and Freddie in ways that would reduce substantially what we do in housing. And, by the way, the administration’s objection to this bill is not, as says the gentleman, that it is too much regulation. It is that we do not give the regulator enough powers. So the administration’s position is somewhat opposite to the gentleman from Texas’, not for the first time, to his credit. Mr. Chairman, I yield 11/2 minutes to the gentlewoman from Florida (Ms. WASSERMAN SCHULTZ). credit Terrorism Insurance Program 7 December 2005    2005 Ron Paul 125:11 Instead of forcing taxpayers to subsidize the costs of terrorism insurance, Congress should consider creating a tax credit or deduction for premiums paid for terrorism insurance, as well as a deduction for claims and other costs borne by the insurance industry connected with offering terrorism insurance. A tax credit approach reduces government’s control over the insurance market. Furthermore, since a tax credit approach encourages people to devote more of their own resources to terrorism insurance, the moral hazard problems associated with federally funded insurance is avoided. credit 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. credit Introduction Of The Treat Physicians Fairly Act 2 March 2006    2006 Ron Paul 7:1 Mr. PAUL. Mr. Speaker, I rise today to introduce the Treat Physicians Fairly Act, legislation providing tax credits to physicians to compensate for the costs of providing uncompensated care. This legislation helps compensate medical professionals for the., costs imposed on them by federal laws forcing doctors to provide uncompensated medical care. The legislation also provides a tax deduction for hospitals that incur costs related to providing uncompensated care. credit Introduction Of The Treat Physicians Fairly Act 2 March 2006    2006 Ron Paul 7:5 EMTALA could actually decrease the care available for low-income Americans at emergency rooms. This is because EMTALA discourages physicians from offering any emergency care. Many physicians in my district have told me that they are considering curtailing their practices, in part because of the costs associated with the EMTALA mandates. Many other physicians are even counseling younger people against entering the medical profession because of the way the Federal Government treats medical professionals. The tax credits created in the Treat Physicians Fairly Act will help mitigate some of the burden government policies place on physicians. credit Introduction Of The Treat Physicians Fairly Act 2 March 2006    2006 Ron Paul 7:6 The Treat Physicians Fairly Act does not remove any of EMTALA’s mandates; it simply provides that physicians can receive a tax credit for the costs of providing uncompensated care. This is a small step toward restoring fairness to physicians. Furthermore, by providing some compensation in the form of tax credits, the Treat Physicians Fairly Act helps remove the disincentives to remaining active in the medical profession built into the current EMTALA law. I hope my colleagues will take the first step toward removing the unconstitutional burden of providing uncompensated care by cosponsoring the Treat Physicians Fairly Act. credit 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. credit 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. credit Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:28 Though M3 is the most helpful statistic to track Fed activity, it by no means tells us everything we need to know about trends in monetary policy. Total bank credit, still available to us, gives us indirect information reflecting the Fed’s inflationary policies. But ultimately the markets will figure out exactly what the Fed is up to, and then individuals, financial institutions, governments and other central bankers will act accordingly. credit 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. credit Alternative Pluripotent Stem cell Therapies Enhancement Act 18 July 2006    2006 Ron Paul 57:5 In order to promote private medical research, I have introduced the Cures Can Be Found Act (H.R. 3444). H.R. 3444 promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research and providing a $2,000 tax credit to new parents for the donation of umbilical cord blood from which to extract stem cells. The Cures Can Be Found Act will ensure greater resources are devoted to this valuable research. The tax credit for donations of umbilical cord blood will ensure that medical science has a continuous supply of stem cells. Thus, this bill will help scientists discover new cures using stem cells and, hopefully, make routine the use of stem cells to treat formerly incurable diseases. credit Marriage Protection Amendment 18 July 2006    2006 Ron Paul 58:3 If I were in Congress in 1996, I would have voted for the Defense of Marriage Act, which used Congress’s constitutional authority to define what official state documents other states have to recognize under the Full Faith and Credit Clause, to ensure that no state would be forced to recognize a “same sex” marriage license issued in another state. This Congress, I am an original cosponsor of the Marriage Protection Act, H.R. 1100, that removes challenges to the Defense of Marriage Act from federal courts’ jurisdiction. If I were a member of the Texas legislature, I would do all I could to oppose any attempt by rogue judges to impose a new definition of marriage on the people of my state. credit Senior Citizens’ Improved Quality Of Life Act 19 September 2006    2006 Ron Paul 79:8 Providing seniors with a tax credit to help cover their prescription drug expenses not covered by Medicare and repealing Federal barriers that prohibit seniors from obtaining quality prescription drugs from overseas. Even though Congress added a prescription drug benefit to Medicare, many seniors still have difficulty affording their prescription drugs. One reason is because the new program creates a “doughnut hole,” where seniors must pay for their prescriptions above a certain amount out of their own pockets until their expenses reach a level where Medicare coverage resumes. H.R. 5211 helps seniors cope with these costs by providing them with a tax credit equal to 80 percent of their out-of-pocket pharmaceutical costs. credit Overstepping Constitutional Authority 26 September 2006    2006 Ron Paul 86:7 The argument which springs from the criticism of a federalized criminal code and a Federal police force is that States may be less effective than a centralized Federal Government in dealing with those who leave one State jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of State sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow States to exact judgments from those who violate their State laws. The Constitution even allows the Federal Government to legislatively preserve the procedural mechanisms which allow States to enforce their substantive laws without the Federal Government imposing its substantive edicts on the States. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one State to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon States in working with one another rather than relying on a national, unified police force. At the same time, there is a greater cost to State autonomy and individual liberty from centralization of police power. credit 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. credit Milton Friedman 6 December 2006    2006 Ron Paul 100:22 It was at one of these meetings that Friedman put Westmoreland on the spot with his comeback about slaves. Knowing that Friedman was persuasive and focused and also a warm human being, I credit him with having swung at least a few of the Commission members in his direction. And although Nixon took his sweet time acting on the recommendations, finally, at the start of his second term, he let the draft expire. credit Introducing The Prescription Drug Affordability Act 4 January 2007    2007 Ron Paul 5:2 The first provision of my legislation provides seniors a tax credit equal to 80 percent of their prescription drug costs. While Congress did add a prescription drug benefit to Medicare in 2003, many seniors still have difficulty affording the prescription drugs they need in order to maintain an active and healthy lifestyle. One reason is because the new program creates a “doughnut hole,” where seniors lose coverage once their prescription expenses reach a certain amount and must pay for their prescriptions above a certain amount out of their own pockets until their expenses reach a level where Medicare coverage resumes. This tax credit will help seniors cover the expenses provided by the doughnut hole. This bill will also help seniors obtain prescription medicines that may not be covered by the Medicare prescription drug program. credit The War In Iraq 5 January 2007    2007 Ron Paul 7:12 If we did not create credit out of thin air, as the Constitution prohibits, we never would have convinced taxpayers to support this war directly by increased taxation. How long this financial charade can go on is difficult to judge, but when the end comes, it will not go unnoticed by any American. credit Identity Theft Protection Act 5 January 2007    2007 Ron Paul 8:4 Congressionally-mandated use of the Social Security number as an identifier facilitates the horrendous crime of identity theft. Thanks to Congress, an unscrupulous person may simply obtain someone’s Social Security number in order to access that person’s bank accounts, credit cards, and other financial assets. Many Americans have lost their life savings and had their credit destroyed as a result of identity theft. Yet the Federal Government continues to encourage such crimes by mandating use of the Social Security number as a uniform ID! credit Governmental Funding Of Embryonic Stem Cell Research 11 January 2007    2007 Ron Paul 11:4 In order to promote private medical research, I will introduce the Cures Can Be Found Act. The Cures Can Be Found Act promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research and providing a $2,000 tax credit to new parents for the donation of umbilical cord blood from which to extract stem cells. The Cures Can Be Found Act will ensure greater resources are devoted to this valuable research. The tax credit for donations of umbilical cord blood will ensure that medical science has a continuous supply of stem cells. Thus, this bill will help scientists discover new cures using stem cells and, hopefully, make routine the use of stem cells to treat formerly incurable diseases. credit Introduction Of The Cures Can be Found Act 12 January 2007    2007 Ron Paul 16:1 Mr. PAUL. Madam Speaker, I rise to introduce the Cures Can Be Found Act. This legislation promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research, and provides a $2,000 tax credit to new parents for the donation of umbilical cord blood that can be used to extract stem cells. credit Introduction Of The Cures Can be Found Act 12 January 2007    2007 Ron Paul 16:3 By providing tax incentives for adult and umbilical cord blood stem cell research, the Cures Can Be Found Act will ensure greater resources are devoted to this valuable research. The tax credit for donations of umbilical cord blood will ensure that medical science has a continuous supply of stem cells. Thus, this bill will help scientists discover new cures using stem cells and, hopefully, make routine the use of stem cells to treat formally incurable diseases. credit Introducing The Teacher Tax Cut Act And The Professional Educators Tax Relief Act 14 February 2007    2007 Ron Paul 27:3 This is why I am introducing the Teachers Tax Cut Act. This legislation provides every teacher in America with a $3,000 tax credit. I am also introducing the Professional Educators Tax Relief Act, which extends the $3,000 tax credit to counselors, librarians, and all school personnel involved in any aspect of the K–12 academic program. credit Introduction Of The Hope Plus Scholarship Act 14 February 2007    2007 Ron Paul 28:1 Mr. PAUL. Madam Speaker, I rise to introduce the Hope Plus Scholarship Act, which expands the Hope Education Scholarship credit to cover K–12 education expenses. Under this bill, parents could use the Hope Scholarship to pay for private or religious school tuition or to offset the cost of home schooling. In addition, under the bill, all Americans could use the Hope Scholarship to make cash or in-kind donations to public schools. Thus, the Hope Scholarship could help working parents send their child to a private school, while other patents could take advantage of the Hope credit to help purchase new computers for their children’s local public school. credit Introduction Of The Family Education Freedom Act 14 february 2007    2007 Ron Paul 29:1 Mr. PAUL. Madam Speaker, I rise today to introduce the Family Education Freedom Act, a bill to empower millions of working and middle- class Americans to choose a non-public education for their children, as well as making it easier for parents to actively participate in improving public schools. The Family Education Freedom Act accomplishes its goals by allowing American parents a tax credit of up to $5,000 for the expenses incurred in sending their child to private, public, parochial, other religious school, or for home schooling their children. credit Introduction Of The Family Education Freedom Act 14 february 2007    2007 Ron Paul 29:4 According to a poll by McLaughlin and Associates, two-thirds of Americans believe education tax credits would have a positive effect on American education. This poll also found strong support for education tax credits among liberals, moderates, conservatives, low-income individuals, and African-Americans. This is just one of numerous studies and public opinion polls showing that Americans want Congress to get the federal bureaucracy out of the schoolroom and give parents more control over their children’s education. credit Introduction Of The Family Education Freedom Act 14 february 2007    2007 Ron Paul 29:6 The $5,000 tax credit will make a better education affordable for millions of parents. Madame Speaker, many parents who would choose to send their children to private, religious, or parochial schools are unable to afford the tuition, in large part because of the enormous tax burden imposed on the American family by Washington. credit Introduction Of The Family Education Freedom Act 14 february 2007    2007 Ron Paul 29:7 The Family Education Freedom Act also benefits parents who choose to send their children to public schools. Parents of children in public schools may use this credit to help improve their local schools by helping finance the purchase of educational tools such as computers or to ensure their local schools can offer enriching extracurricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services, such as tutoring, for their children. credit Introducing The Education Improvement Tax Cut Act 14 February 2007    2007 Ron Paul 30:1 Mr. PAUL. Madam Speaker, I rise to introduce the Education Improvement Tax Cut Act. This act, a companion to my Family Education Freedom Act, takes a further step toward returning control over education resources to private citizens by providing a $5,000 tax credit for donations to scholarship funds to enable low-income children to attend private schools. It also encourages private citizens to devote more of their resources to helping public schools, by providing a $5,000 tax credit for cash or in-kind donations to public schools to support academic or extra curricular programs. credit Introducing The Education Improvement Tax Cut Act 14 February 2007    2007 Ron Paul 30:4 Returning control over the education dollar for tax credits for parents and for other concerned citizens returns control over both the means and ends of education policy to local communities. People in one community may use this credit to purchase computers, while children in another community may, at last, have access to a quality music program because of community leaders who took advantage of the tax credit contained in this bill. credit Introducing The Education Improvement Tax Cut Act 14 February 2007    2007 Ron Paul 30:5 Children in some communities may benefit most from the opportunity to attend private, parochial, or other religious schools. One of the most encouraging trends in education has been the establishment of private scholarship programs. These scholarship funds use voluntary contributions to open the doors of quality private schools to low-income children. By providing a tax credit for donations to these programs, Congress can widen the educational opportunities and increase the quality of education for all children. credit Introducing The Child Health Care Affordability Act 17 April 2007    2007 Ron Paul 42:1 Mr. PAUL. Madam Speaker, I am pleased to help working Americans provide for their children’s health care needs by introducing the Child Health Care Affordability Act. The Child Health Care Affordability Act provides parents with a tax credit of up to $500 for health care expenses of dependent children. Parents caring for a child with a disability, tenninal disease, cancer, or any other health condition requiring specialized care would receive a tax credit of up to $3,000 to help cover their child’s health care expenses. credit Introducing The Child Health Care Affordability Act 17 April 2007    2007 Ron Paul 42:2 The tax credit would be available to all citizens, regardless of whether or not they itemize their deductions. The credit applies against both income and payroll tax liability. The tax credits provided in this bill will be especially helpful to those Americans whose employers cannot afford to provide health insurance for their employees. These workers must struggle to meet the medical bills of themselves and their families. This burden is especially heavy on parents whose children have a medical condition; such as cancer or a physical disability that requires long-term or specialized health care. credit Introducing The Child Health Care Affordability Act 17 April 2007    2007 Ron Paul 42:3 As an OB–GYN who has had the privilege of delivering more than four thousand babies, I know how important it is that parents have the resources to provide adequate health care for their children. The inability of many working Americans to provide health care for their children is rooted in one of the great inequities of the tax code — Congress’ failure to allow individuals the same ability to deduct health care costs that it grants to businesses. As a direct result of Congress’ refusal to provide individuals with health care related tax credits, parents whose employers do not provide health insurance have to struggle to provide health care for their children. Many of these parents work in low-income jobs; oftentimes, their only recourse for health care is the local emergency room. credit Introducing The Child Health Care Affordability Act 17 April 2007    2007 Ron Paul 42:4 Sometimes parents are forced to delay seeking care for their children until minor health concerns that could have been easily treated become serious problems requiring expensive treatment! If these parents had access to the type of tax credits provided in the Child Health Care Affordability Act, they would be better able to provide care for their children, and our Nation’s already overcrowded emergency rooms would be relieved of the burden of having to provide routine care for people who otherwise cannot afford it. credit Introducing The Child Health Care Affordability Act 17 April 2007    2007 Ron Paul 42:5 According to research on the effects of this bill done by my staff and legislative counsel, the benefit of these tax credits would begin to be felt by joint filers with incomes slightly above $18,000 dollars per year, or single income filers with incomes slightly above $15,000 dollars per year. Clearly, this bill will be of the most benefit to low-income Americans balancing the demands of taxation with the needs of their children. credit Introducing The Child Health Care Affordability Act 17 April 2007    2007 Ron Paul 42:8 The Child Health Care Affordability Act takes a major step toward helping working Americans meet their health care needs by providing them with generous health care related tax cuts and tax credits. I urge my colleagues to support the pro-family, pro-health care tax cuts contained in the Child Health Care Affordability Act. credit Shareholder Vote On Executive Compensation Act 18 April 2007    2007 Ron Paul 43:12 In addition to repealing laws that prevent shareholders from exercising control over corporations, Congress should also examine United States monetary policy’s effects on income inequality. When the Federal Reserve Board injects credit into the economy, the result is at least a temporary rise in incomes. However, those incomes do not rise equally. People who first receive the new credit — who in most instances are those already at the top of the economic pyramid — receive the most benefit from the Fed’s inflationist polices. By the time those at the lower end of the income scale experience a nominal rise in incomes, they must also contend with price inflation that has eroded their standard of living. Except for the lucky few who take advantage of the new credit first, the negative effects of inflation likely more than outweigh any temporary gains in nominal income from the Federal Reserve’s expansionist polices. credit Shareholder Vote On Executive Compensation Act 18 April 2007    2007 Ron Paul 43:14 Explosions in CEO salaries can be a sign of a Federal credit bubble, which occurs when Federal Reserve Board-created credit flows into certain sectors such as the stock market or the housing market. Far from being a sign of the health of capitalism, excessive CEO salaries in these areas often signal that a bubble is about to burst. When a bubble bursts, people at the bottom of the economic ladder bear the brunt of the bust. credit Genetic Information Non-discrimination Act 25 April 2007    2007 Ron Paul 44:3 The best way to address the sponsors of H.R. 493’s legitimate concerns is to put individuals back in control of the health care dollar. When individuals control the health care dollar they, not their employers, insurance companies or Health Maintenance Organizations, can make all health care decisions, including whether or not to share individual genetic histories with a potential employer, insurer, or other third party. Therefore, instead of creating more Federal regulations and bureaucracies, my colleagues should increase individual control of health care by passing legislation expanding Health Savings Accounts and individual health care tax credits and deductions. credit Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:2 One of the major privileges the Federal Government grants to the GSEs is a line of credit from the United States Treasury. According to some estimates, the line of credit may be worth over 2 billion dollars. GSEs also benefit from an explicit grant of legal authority given to the Federal Reserve to purchase the debt of the GSEs. GSEs are the only institutions besides the United States Treasury granted explicit statutory authority to monetize their debt through the Federal Reserve. This provision gives the GSEs a source of liquidity unavailable to their competitors. credit Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:3 This implicit promise by the Government to bail out the GSEs in times of economic difficulty helps the GSEs attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the Government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt. credit 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. credit 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. credit 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. credit 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. credit Police Security Protection Act 1 August 2007    2007 Ron Paul 81:1 Mr. PAUL. Madam Speaker, I am pleased to help America’s law enforcement officers by introducing the Police Security Protection Act. This legislation provides police officers a tax credit for the purchase of armored vests. credit Introducing The Quality Health Care Coalition Act 2 August 2007    2007 Ron Paul 84:7 Madam Speaker, it is my hope that Congress will not only remove the restraints on medical professionals’ freedom of contract, but will also empower patients to control their health care by passing my Comprehensive Health Care Reform Act. The Comprehensive Health Care Reform Act puts individuals back in charge of their own health care by providing Americans with large tax credits and tax deductions for their health care expenses, including a deduction for premiums for a high-deductible insurance policy purchased in combination with a Health Savings Account. Putting individuals back in charge of their own health care decisions will enable patients to work with providers to ensure they receive the best possible health care at the lowest possible price. If providers and patients have the ability to form the contractual arrangements that they find most beneficial to them, the HMO monster will wither on the vine without the imposition of new federal regulations on the insurance industry. credit Introduction Of The Treat Physicians Fairly Act 2 August 2007    2007 Ron Paul 85:1 Mr. PAUL. Madam Speaker, I rise today to introduce the Treat Physicians Fairly Act, legislation providing tax credits to physicians to compensate for the costs of providing uncompensated care. This legislation helps compensate medical professionals for the costs imposed on them by Federal laws forcing doctors to provide uncompensated medical care. The legislation also provides a tax deduction for hospitals that incur costs related to providing uncompensated care. credit Introduction Of The Treat Physicians Fairly Act 2 August 2007    2007 Ron Paul 85:5 EMTALA could actually decrease the care available for low-income Americans at emergency rooms. This is because EMTALA discourages physicians from offering any emergency care. Many physicians in my district have told me that they are considering curtailing their practices, in part because of the costs associated with the EMTALA mandates. Many other physicians are even counseling younger people against entering the medical profession because of the way the Federal Government treats medical professionals. The tax credits created in the Treat Physicians Fairly Act will help mitigate some of the burden government policies place on physicians. credit Introduction Of The Treat Physicians Fairly Act 2 August 2007    2007 Ron Paul 85:6 The Treat Physicians Fairly Act does not remove any of EMTALA’s mandates; it simply provides that physicians can receive a tax credit for the costs of providing uncompensated care. This is a small step toward restoring fairness to physicians. Furthermore, by providing some compensation in the form of tax credits, the Treat Physicians Fairly Act helps remove the disincentives to remaining active in the medical profession built into the current EMTALA law. I hope my colleagues will take the first step toward removing the unconstitutional burden of providing uncompensated care by cosponsoring the Treat Physicians Fairly Act. credit Introducing The Comprehensive Health Care Act 2 August 2007    2007 Ron Paul 86:4 Returning control over health care to the individual is the key to true health care reform. The Comprehensive Health Care Reform Act puts control of health care back into the hands of the individual through tax credits, tax deductions, Health Care Savings Accounts (HSA), and Flexible Savings Accounts. By giving individuals tax incentives to purchase their own health care, the Comprehensive Health Care Act will help more Americans obtain quality health insurance and health care. Specifically, the Comprehensive Health Care Act: credit Introducing The Comprehensive Health Care Act 2 August 2007    2007 Ron Paul 86:5 A. Provides all Americans with a tax credit for 100 percent of health care expenses. The tax credit is fully refundable against both income and payroll taxes. credit Introduction Of The Freedom From Unnecessary Litigation Act 2 August 2007    2007 Ron Paul 87:1 Mr. PAUL. Madam Speaker, I am pleased to introduce the Freedom from Unnecessary Litigation Act. As its title suggests, this bill provides an effective means of ensuring that those harmed during medical treatment receive fair compensation while reducing the burden of costly malpractice litigation on the health care system. This bill achieves its goal by providing a tax credit for negative outcomes insurance purchased before medical treatment. The insurance will provide compensation for any negative outcomes of the medical treatment. Patients can receive this insurance without having to go through lengthy litigation and without having to give away a large portion of their award to a trial lawyer. credit Terrorism Insurance 19 september 2007    2007 Ron Paul 89:11 Instead of forcing taxpayers to subsidize the costs of terrorism insurance, Congress should consider creating a tax credit or deduction for premiums paid for terrorism insurance, as well as a deduction for claims and other costs borne by the insurance industry connected with offering terrorism insurance. A tax credit approach reduces government’s control over the insurance market. Furthermore, since a tax credit approach encourages people to devote more of their own resources to terrorism insurance, the moral hazard problems associated with federally funded insurance is avoided. credit Statement before the Financial Services Committee 20 September 2007    2007 Ron Paul 93:7 Further regulation of the banking sector, of mortgage brokers, mortgage lenders, or credit rating agencies will fail to improve the current situation, and will do nothing to prevent future real estate bubbles. Any proposed solutions which fail to take into account the economic intervention that laid the ground for the bubble are merely window dressing, and will not ease the suffering of millions of American homeowners. I urge my colleagues to strike at the root of the problem and address the Federal Reserve's inflationary monetary policy. credit 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. credit Statement Before the Joint Economic Committee 8 November 2007    2007 Ron Paul 103:6 Finally, the Federal Reserve's loose monetary policy and lowering of interest rates were a major spur to the housing boom. Low interest rates influence marginal buyers, those who are sitting on the fence, and encourage them to take on a mortgage that they otherwise would not. Even when interest rates are raised, no one expects them to stay high for long, as there is always pressure from politicians and investors to keep rates low, as no one wants the cheap credit to end. credit “Monetary Policy and the State of the Economy” February 26, 2008    2008 Ron Paul 8:5 The setting of the interest rate strikes me as quite similar to the way FDR used to set gold prices in the 1930’s, at his whim, resulting in economic havoc and uncertainty. When market actors have to devote much of their time to discerning the mindset of government price-setters, to parsing FOMC statements and minutes, they are necessarily diverted from productive economic activity. They cease to become purely economic actors and are forced to become political forecasters. This is not a problem isolated to this particular case, as businesses are forced to reckon with tax increases, expiring tax credits, import tariffs, subsidies to competitors, etc. However, because the interest rate determines the cost of borrowing and therefore determines whether or not marginal long-term business investments are undertaken, this politicized interest rate manipulation has far more impact than other government policies. credit “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. credit “Monetary Policy and the State of the Economy” February 27, 2008    2008 Ron Paul 9:4 Some drastic proposals have called for the federal government to purchase existing mortgages and take upon itself the process of rewriting these and guaranteeing the resulting new mortgages. Aside from exposing the government to tens of billions of dollars of potentially defaulting mortgages, the burden of which will ultimately fall on the taxpayers, this type of plan would embed the federal government even deeper into the housing market and perpetuate instability. The Congress has, over the past decades, relentlessly pushed for increased rates of homeownership among people who have always been viewed by the market as poor credit risks. Various means and incentives have been used by the government, but behind all the actions of lenders has been an implicit belief in a federal bailout in the event of a crisis. credit “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. credit Foreign Government Investment in the U.S. Economy and Financial Sector March 5, 2008    2008 Ron Paul 11:3 The second major category of sovereign wealth funds includes China’s sovereign wealth fund, which has the potential to draw on China’s more than $1 trillion in foreign exchange reserves. Because of China’s current account surplus, it continues to accumulate foreign exchange. Much of this is due to the United States’ persistent current account deficit. Inflationary monetary policy and a desire to stimulate the economy at all costs has led us to become the world’s largest debtor, and this debt must eventually be repaid. The current account deficit has come about because our economy does not produce enough capital goods to satisfy the wants of our foreign creditors. Tired of holding increasingly worthless dollars, it is only natural that our creditors would want to purchase tangibles, which in the present case are stakes in American companies. credit INTRODUCTION OF THE TAX RELIEF FOR TRANSPORTATION WORKERS ACT 7 May 2008    2008 Ron Paul 27:1 Mr. PAUL. Madam Speaker, I rise to introduce the Tax Relief for Transportation Workers Act. This legislation helps those who work in the port industry cope with the costs of complying with Congress’s mandate that all those working on a port obtain a Transportation Worker Identity Card (TWIC). The Tax Relief for Transportation Workers Act provides a tax credit to workers who pay the costs of obtaining TWICs. The credit is refundable against both income and payroll tax liabilities. This legislation also provides a tax deduction for businesses that pay for their employees to obtain a TWIC. credit RECOGNIZING THE 100-YEAR ANNIVERSARY OF THE ESTABLISHMENT OF ST. MARY’S COOPERATIVE CREDIT ASSOCIATION 11 June 2008    2008 Ron Paul 33:1 Mr. PAUL. Mr. Speaker, I am pleased to support H. Con. Res. 1145, which recognizes the 100-year anniversary of the establishment of St. Mary’s Cooperative Credit Association. Created to service the financial needs of textile workers, St. Mary’s Cooperative Credit Association, or the People’s Bank, as it was appropriately renamed, was the Nation’s first credit union. credit RECOGNIZING THE 100-YEAR ANNIVERSARY OF THE ESTABLISHMENT OF ST. MARY’S COOPERATIVE CREDIT ASSOCIATION 11 June 2008    2008 Ron Paul 33:2 Since the creation of St. Mary’s Cooperative Credit Association, credit unions have grown to become a major part of the American financial services system. Today there are over 8,500 credit unions in the United States, serving over 90 million members. credit RECOGNIZING THE 100-YEAR ANNIVERSARY OF THE ESTABLISHMENT OF ST. MARY’S COOPERATIVE CREDIT ASSOCIATION 11 June 2008    2008 Ron Paul 33:3 During my years of service on the House Committee on Financial Services, I have had the opportunity to get to know many credit union employees. I have always been impressed with their commitment to serving their credit union members and their communities. In many ways, credit unions exemplify the best of the free market system. Since credit unions are formed specifically to serve their members, credit unions put the interests of their depositors first. credit RECOGNIZING THE 100-YEAR ANNIVERSARY OF THE ESTABLISHMENT OF ST. MARY’S COOPERATIVE CREDIT ASSOCIATION 11 June 2008    2008 Ron Paul 33:4 I hope that Congress will follow-up today’s legislation by soon considering H.R. 5519, the Credit Union Regulatory Relief Act of 2008, which repeals Federal regulations that hinder credit unions from improving their services. credit RECOGNIZING THE 100-YEAR ANNIVERSARY OF THE ESTABLISHMENT OF ST. MARY’S COOPERATIVE CREDIT ASSOCIATION 11 June 2008    2008 Ron Paul 33:5 In conclusion, Mr. Speaker, I am pleased to support H. Con. Res. 1145, and I encourage all my colleagues to join me in supporting this resolution and saluting all credit unions for their vital role in strengthening America’s financial services industry. credit Statement Introducing the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act 8 July 2008    2008 Ron Paul 41:1 Madame Speaker, I rise today to introduce the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act, legislation that will help Americans reduce pollution and the amount they pay for gas. My legislation accomplishes these important goals by providing Americans a tax credit of up to $2,000 when they sell or trade in a car and obtain a vehicle that has at least a 20% higher average fuel economy than the sold or traded-in car. The bill also creates a federal tax deduction for any state or local taxes paid on the purchase of the more fuel-efficient automobile and makes interest on loans to purchase the more fuel-efficient automobile tax deductible. credit Statement Introducing the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act 8 July 2008    2008 Ron Paul 41:3 Providing tax deductions and tax credits to make it easier for Americans to purchase fuel-efficient automobiles is a win for American consumers, a win for the environment, and a win for those of us who favor free market solutions to pollution and high gas prices. I urge my colleagues to support this legislation. credit 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. credit Humphrey Hawkins Hearing on Monetary Policy July 16, 2008    2008 Ron Paul 46:1 Mr. Chairman, today we find ourselves on the verge of an economic crisis the likes of which the United States has not seen in decades. Our economy is very clearly in a recession, and every time someone tells us that the worst has passed, another serious event takes place, as we saw once again last week and early this week. Everyone now realizes that the situation is dire, yet either no one understands the cause behind the credit crisis, or no one is willing to take the necessary steps to ensure as orderly an end to the crisis as possible. Instead, we hear talk of further bailouts. The Fed-brokered takeover of Bear Stearns, a supposed one-off incident, has now been joined by a potential bailout of the Government-Sponsored Enterprises, Fannie Mae and Freddie Mac. credit UNTITLED 23 July 2008    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. credit 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. credit CONGRATULATIONS TO RANDY SMITH 24 July 2008    2008 Ron Paul 51:1 Mr. PAUL. Madam Speaker, it is with great pleasure that I rise today to recognize Randy M. Smith, the CEO/President of Randolph- Brooks Federal Credit Union, on his recent election to the Board of Directors of the National Association of Federal Credit Unions (NAFCU). credit CONGRATULATIONS TO RANDY SMITH 24 July 2008    2008 Ron Paul 51:2 For the past 21 years, Mr. Smith has dedicated his life to improving financial institutions in America, serving on the Credit Union Oversight Task Force of the Campaign for Consumer Choice, NAFCU’s Legislative, Regulatory and Accounting Standards Committees and various committees of state and national credit union organizations. Currently, he is a member of the Air Education and Training Command’s Community Council and the Board of Trustees of the local United Way. I am also very proud to say that he is a fellow retired officer of the United States Air Force. credit CONGRATULATIONS TO RANDY SMITH 24 July 2008    2008 Ron Paul 51:3 As the President/CEO, Mr. Smith has focused on strengthening the way Randolph- Brooks delivers services aimed at improving the economic well being and quality of life of its members. Consistently ranked among the top 25 of the nearly 8,300 financial cooperatives, Randolph-Brooks is one of the strongest credit unions in the country with more than 265,000 members and total assets exceeding $3 billion. Randolph-Brooks FCU was originally chartered in 1952 to serve personnel at Randolph Air Force Base but has since expanded to include employees and associates at more than 1,300 select groups and eight underserved communities in the San Antonio and Austin areas. Randolph-Brooks FCU prides itself on doing more than just conducting business in the communities they serve, instead becoming members of the community and sharing in the credit union philosophy of “people helping people.” With this in mind, Randolph-Brooks provides assistance to hundreds of local charitable organizations including the Children’s Miracle Network, Society of St. Vincent de Paul, USO, American Red Cross, and the Fisher House Foundation. credit CONGRATULATIONS TO RANDY SMITH 24 July 2008    2008 Ron Paul 51:4 It is because of the good work of Mr. Smith and others like him that credit unions across the Nation have had such a tremendous impact of the lives of millions of Americans. Such service is the hallmark of the credit union movement and I know that he will bring this dedication to his service on the NAFCU Board of Directors. I wish Mr. Smith the best of luck in this new role and I look forward to working with him in this new capacity. credit Statement on Sovereign Wealth Funds September 10, 2008    2008 Ron Paul 58:2 The United States government now finds itself between a rock and a hard place. The massive amounts of debt that we have allowed to accumulate are hanging over us like Damocles’ sword. Foreign governments such as Russia and China hold large amounts of government and agency bonds, and there are fears that as our creditors they will exert leverage over us. At the same time, as the dollar weakens, the desire to sell bonds and purchase better performing assets increases, leading to fears from others that foreign governments will attempt to purchase American national champion companies, or invest in strategic industries to gain sensitive technologies. credit Statement on Sovereign Wealth Funds September 10, 2008    2008 Ron Paul 58:4 Debtors cannot continue building debts forever, and we now face strong indications that our creditors are eager to begin collecting what is owed them. It is not too late to correct our mistakes, but we must act now and cannot dally. We must drastically reduce government spending, end wasteful and disastrous interventions into financial markets, and rein in the Federal Reserve’s inflationary monetary policy. Failing to do so will ensure a descent into financial catastrophe. credit “The Economic Outlook” September 24, 2008    2008 Ron Paul 60:2 One of the perverse effects of this bailout proposal is that the worst-performing firms, and those who interjected themselves most deeply into mortgage-backed securities, credit default swaps, and special investment vehicles will be those who benefit the most from this bailout. As with the bailout of airlines in the aftermath of 9/11, those businesses who were the least efficient, least productive, and least concerned with serving consumers are those who will be rewarded for their mismanagement with a government handout, rather than the failure of their company that is proper to the market. This creates a dangerous moral hazard, as the precedent of bailing out reckless lending will lead to even more reckless lending and irresponsible behavior on the part of financial firms in the future. credit INTRODUCING THE EVACUEES TAX RELIEF ACT 24 September 2008    2008 Ron Paul 62:1 Mr. PAUL. Madam Speaker, I rise to introduce the Evacuees Tax Relief Act of 2008, legislation providing tax relief to those forced to abandon their homes because of a natural disaster. This legislation provides a tax credit or a tax deduction, depending on the wishes of the taxpayer, of up to $5,000 for costs incurred because of a government-ordered mandatory or voluntary evacuation. Evacuees could use the credit to cover travel and lodging expenses associated with the evacuation, lost wages, property damages not otherwise compensated, and any other evacuation-related expenses. The tax credit is refundable up to the amount of income and payroll taxes a person would otherwise pay, thus ensuring working people who pay more in payroll than in income taxes are able to benefit from this tax relief. The credit is available retroactive to December of 2007, so it is available to Hurricane Ike evacuees, as well as those who evacuated because of Hurricanes Gustav and Dolly. credit “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. credit Statement on HR 1424 October 3, 2008    2008 Ron Paul 67:2 The Federal Reserve has already injected hundreds of billions of dollars into US and world credit markets. The adjusted monetary base is up sharply, bank reserves have exploded, and the national debt is up almost half a trillion dollars over the past two weeks. Yet, we are still told that after all this intervention, all this inflation, that we still need an additional $700 billion bailout, otherwise the credit markets will seize and the economy will collapse. This is the same excuse that preceded previous bailouts, and undoubtedly we will hear it again in the future after this bailout fails. credit Statement on HR 1424 October 3, 2008    2008 Ron Paul 67:4 With deposit insurance increasing to $250,000 and banks able to set their reserves to zero, we will undoubtedly see future increases in unsound lending. No one in our society seems to understand that wealth is not created by government fiat, is not created by banks, and is not created through the manipulation of interest rates and provision of easy credit. A debt-based society cannot prosper and is doomed to fail, as debts must either be defaulted on or repaid, neither resolution of which presents this country with a pleasant view of the future. True wealth can only come about through savings, the deferral of present consumption in order to provide for a higher level of future consumption. Instead, our government through its own behavior and through its policies encourages us to live beyond our means, reducing existing capital and mortgaging our future to pay for present consumption. credit 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. credit UNTITLED 3 October 2008    2008 Ron Paul 68:1 Mr. PAUL. Madam Speaker, I rise in strong opposition to this bill because it won’t solve our problem. It is said that we are in a liquidity crisis and a credit crunch and all we need is more credit. The Federal Reserve has already injected over a trillion dollars worth of credit and it doesn’t seem to have helped a whole lot. Injecting another 600 to $700 billion will not solve the problem. credit UNTITLED 3 October 2008    2008 Ron Paul 68:2 I think one of the reasons why we are floundering around here is that we don’t understand the problem because instead of it being a credit crunch, I think it is a lot more serious than that. That is, I think what is happening in the market today is signaling something much more draconian because it is probably telling us that our government is insolvent, that we are on the verge of bankruptcy and big things are starting to happen. And we don’t quite understand it, so we fall back on the old cliches that what we need is more appropriations, more spending, more debt, and more credit in the market. That means more inflation by the Federal Reserve system. And yet, that is what caused the trouble. credit UNTITLED 3 October 2008    2008 Ron Paul 68:3 We want to do this it is said to prevent the recession or depression because that is unbearable. But the truth is you should have thought about that 10 or 15 years ago because the financial bubble created by the excess of credit and the lowering of the interest rate is the cause of the recession. The recession is a demand. It is a must; you can’t avoid it. Yes, it has been papered over several times over the last several decades, but that just made the bubble bigger. credit 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. credit INTRODUCTION OF THE PRESCRIPTION DRUG AFFORDABILITY ACT January 6, 2009    2009 Ron Paul 3:2 The first provision of my legislation provides seniors a tax credit equal to 80 percent of their prescription drug costs. While Congress did add a prescription drug benefit to Medicare in 2003, many seniors still have difficulty affording the prescription drugs they need in order to maintain an active and healthy lifestyle. One reason is because the new program creates a “doughnut hole,” where seniors lose coverage once their prescription expenses reach a certain amount and must pay for their prescriptions above a certain amount out of their own pockets until their expenses reach a level where Medicare coverage resumes. This tax credit will help seniors cover the expenses provided by the doughnut hole. This bill will also help seniors obtain prescription medicines that may not be covered by the Medicare prescription drug program. credit INTRODUCTION OF THE IDENTITY THEFT PREVENTION ACT January 6, 2009    2009 Ron Paul 4:4 Congressionally-mandated use of the Social Security number as an identifier facilitates the horrendous crime of identity theft. Thanks to Congress, an unscrupulous person may simply obtain someone’s Social Security number in order to access that person’s bank accounts, credit cards, and other financial assets. Many Americans have lost their life savings and had their credit destroyed as a result of identity theft. Yet the federal government continues to encourage such crimes by mandating use of the Social Security number as a uniform ID! credit 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. credit 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. credit Bailout January 14, 2009    2009 Ron Paul 8:7 That contributes to what we call “moral hazard” as well as the system of the Fannie Mae and Freddie Mac system. It always had a line of credit. It never had to use it, but the assumption was, if we ever got into any trouble, the Treasury would be there, and the Federal Reserve would back them up. That existed for a long time, causing specifically the housing bubble to develop. credit 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. credit INTRODUCTION OF THE TAX RELIEF FOR TRANSPORTATION WORKERS ACT February 13, 2009    2009 Ron Paul 16:1 Mr. PAUL. Madam Speaker, I rise to introduce the Tax Relief for Transportation Workers Act. This legislation helps those who work in the port industry cope with the costs of complying with Congress’s mandate that all those working on a port obtain a Transportation Worker Identity Card, TWIC. The Tax Relief for Transportation Workers Act provides a tax credit to workers who pay the costs of obtaining TWICs. The credit is refundable against both income and payroll tax liabilities. credit 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. credit 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. credit Humphrey-Hawkins Hearing Statement February 25, 2009    2009 Ron Paul 18:6 If banks begin to lend their increased reserves, we will see the first steps towards hyperinflation. Now that the Fed has increased the monetary base, it finds itself under pressure to withdraw these funds at some point. The question, however, is when? If it withdraws too soon, banks’ balance sheets collapse, if too late, massive inflation will ensue. As in previous crises, the Fed’s inflationary actions leave it compelled to take action that will severely harm the economy through either deflation or hyperinflation. Had the Fed not begun interfering 18 months ago, we might have already seen a recovery in the economy by now. Bad debts would have been liquidated, inefficient firms sold off and their resources put to better use elsewhere. As it is, I believe any temporary uptick in economic indicators nowadays will likely be misinterpreted as economic recovery rather than the result of Federal Reserve credit creation. Until we learn the lesson that government intervention cannot heal the economy, and can only do harm, we will never stabilize the economy or get on the road to true recovery. credit 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. credit 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. credit INTRODUCING THE CHILD HEALTH CARE AFFORDABILITY ACT March 12, 2009    2009 Ron Paul 27:1 Mr. PAUL. Madam Speaker, I am pleased to help working Americans provide for their children’s health care needs by introducing the Child Health Care Affordability Act. The Child Health Care Affordability Act provides parents with a tax credit of up to $500 for health care expenses of dependent children. Parents caring for a child with a disability, terminal disease, cancer, or any other health condition requiring specialized care would receive a tax credit of up to $3,000 to help cover their child’s health care expenses. credit INTRODUCING THE CHILD HEALTH CARE AFFORDABILITY ACT March 12, 2009    2009 Ron Paul 27:2 The tax credit would be available to all citizens, regardless of whether or not they itemize their deductions. The credit applies against both income and payroll tax liability. The tax credits provided in this bill will be especially helpful to those Americans whose employers cannot afford to provide health insurance for their employees. These workers must struggle to meet the medical bills of themselves and their families. This burden is especially heavy on parents whose children have a medical condition, such as cancer or a physical disability, that requires long-term or specialized health care. credit INTRODUCING THE CHILD HEALTH CARE AFFORDABILITY ACT March 12, 2009    2009 Ron Paul 27:3 As an OB–GYN who has had the privilege of delivering more than four thousand babies, I know how important it is that parents have the resources to provide adequate health care for their children. The inability of many working Americans to provide health care for their children is rooted in one of the great inequities of the tax code – Congress’s failure to allow individuals the same ability to deduct health care costs that it grants to businesses. As a direct result of Congress’s refusal to provide individuals with health care related tax credits, parents whose employers do not provide health insurance have to struggle to provide health care for their children. Many of these parents work in low-income jobs; oftentimes, their only recourse for health care is the local emergency room. credit INTRODUCING THE CHILD HEALTH CARE AFFORDABILITY ACT March 12, 2009    2009 Ron Paul 27:4 Sometimes parents are forced to delay seeking care for their children until minor health concerns that could have been easily treated become serious problems requiring expensive treatment. If these parents had access to the type of tax credits provided in the Child Health Care Affordability Act, they would be better able to provide care for their children, and our nation’s already overcrowded emergency rooms would be relieved of the burden of having to provide routine care for people who otherwise cannot afford it. credit INTRODUCING THE CHILD HEALTH CARE AFFORDABILITY ACT March 12, 2009    2009 Ron Paul 27:5 According to research on the effects of this bill done by my staff and legislative counsel, the benefit of these tax credits would begin to be felt by joint filers with incomes slightly above $18,000 dollars per year, or single income filers with incomes slightly above $15,000 dollars per year. Clearly, this bill will be of the most benefit to low-income Americans balancing the demands of taxation with the needs of their children. credit INTRODUCING THE CHILD HEALTH CARE AFFORDABILITY ACT March 12, 2009    2009 Ron Paul 27:8 The Child Health Care Affordability Act takes a major step toward helping working Americans meet their health care needs by providing them with generous health care related tax cuts and tax credits. I urge my colleagues to support the pro-family, pro-health care tax cuts contained in the Child Health Care Affordability Act. credit COMPREHENSIVE HEALTH CARE REFORM ACT March 12, 2009    2009 Ron Paul 28:3 Returning control over health care to the individual is the key to true health care reform. The Comprehensive Health Care Reform Act puts control of health care back into the hands of the individual through tax credits, tax deductions, improving Health Savings Accounts, and Flexible Savings Accounts. Specifically, the Comprehensive Health Care Reform Act: credit COMPREHENSIVE HEALTH CARE REFORM ACT March 12, 2009    2009 Ron Paul 28:4 A. Provides all Americans with a tax credit for 100 percent of health care expenses. The tax credit is fully refundable against both income and payroll taxes; credit COMPREHENSIVE HEALTH CARE REFORM ACT March 12, 2009    2009 Ron Paul 28:6 C. Provides a tax credit for premiums for a high-deductible insurance policy connected with a Health Savings Account (HSA) and allows seniors to use funds in an HSA to pay for a medigap policy; credit INTRODUCING THE QUALITY HEALTH CARE COALITION ACT March 12, 2009    2009 Ron Paul 29:7 Madam Speaker, it is my hope that Congress will not only remove the restraints on medical professionals’ freedom of contract, but will also empower patients to control their health care by passing my Comprehensive Health Care Reform Act. The Comprehensive Health Care Reform Act puts individuals back in charge of their own health care by providing Americans with large tax credits and tax deductions for their health care expenses, including a deduction for premiums for a high-deductible insurance policy purchased in combination with a Health Savings Account. Putting individuals back in charge of their own health care decisions will enable patients to work with providers to ensure they receive the best possible health care at the lowest possible price. If providers and patients have the ability to form the contractual arrangements that they find most beneficial to them, the HMO monster will wither on the vine without the imposition of new federal regulations on the insurance industry. credit TREAT PHYSICIANS FAIRLY ACT March 12, 2009    2009 Ron Paul 30:1 Mr. PAUL. Madam Speaker, I rise today to introduce the Treat Physicians Fairly Act, legislation providing tax credits to physicians to compensate for the costs of providing uncompensated care. This legislation helps compensate medical professionals for the costs imposed on them by federal laws forcing doctors to provide uncompensated medical care. The legislation also provides a tax deduction for hospitals who incur costs related to providing uncompensated care. credit TREAT PHYSICIANS FAIRLY ACT March 12, 2009    2009 Ron Paul 30:5 EMTALA itself is having unintended consequences that could result in less care availability for low-income Americans at emergency rooms. This is because EMTALA provides a disincentive for physicians from offering any emergency care. Many physicians have told me in my district that they are considering curtailing their practices, in part because of the costs associated with the EMTALA mandates. Many other physicians are even counseling younger people against entering the medical profession because of the way the federal government treats medical professionals! The tax credit of the Treat Physicians Fairly Act will help mitigate some of these unintended consequences. credit TREAT PHYSICIANS FAIRLY ACT March 12, 2009    2009 Ron Paul 30:6 The Treat Physicians Fairly Act does not remove any of EMTALA’s mandates; it simply provides that physicians can receive a tax credit for the costs of providing uncompensated care. This is a small step toward restoring fairness to the physicians. Furthermore, by providing some compensation in the form of tax credits, the Treat Physicians Fairly Act helps remove the disincentives to remaining active in the medical profession built into the current EMTALA law. I hope my colleagues will take the first step toward removing the unconstitutional burden of providing uncompensated care by cosponsoring the Treat Physicians Fairly Act. credit INTRODUCTION OF THE FREEDOM FROM UNNECESSARY LITIGATION ACT March 12, 2009    2009 Ron Paul 32:1 Mr. PAUL. Madam Speaker, I am pleased to introduce the Freedom from Unnecessary Litagation Act. As its title suggests, this bill provides an effective means of ensuring that those harmed during medical treatment receive fair compensation while reducing the burden of costly malpractice litigation on the health care system. This bill achieves its goal by providing a tax credit for negative outcomes insurance purchased before medical treatment. The insurance will provide compensation for any negative outcomes of the medical treatment. Patients can receive this insurance without having to go through lengthy litigation and without having to give away a large portion of their award to a trial lawyer. credit INTRODUCTION OF THE CURES CAN BE FOUND ACT March 19, 2009    2009 Ron Paul 36:1 Mr. PAUL. Madam Speaker, I rise to introduce the Cures Can Be Found Act. This legislation promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research, and provides a $2,000 tax credit to new parents for the donation of umbilical cord blood that can be used to extract stem cells. credit INTRODUCTION OF THE CURES CAN BE FOUND ACT March 19, 2009    2009 Ron Paul 36:3 By providing tax incentives for adult and umbilical cord blood stem cell research, the Cures Can Be Found Act will ensure greater resources are devoted to this valuable research. The tax credit for donations of umbilical cord blood will ensure that medical science has a continuous supply of stem cells. Thus, this bill will help scientists discover new cures using stem cells and, hopefully, make routine the use of stem cells to treat formerly incurable diseases. credit INTRODUCING THE ENERGY EFFICIENT AND ENVIRONMENTALLY FRIENDLY AUTOMOBILE TAX CREDIT ACT March 26, 2009    2009 Ron Paul 38:1 Mr. PAUL. Madam Speaker, I rise today to introduce the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act, legislation that will help Americans reduce pollution and the amount they pay for gas. My legislation accomplishes these important goals by providing Americans a tax credit of up to $2,000 when they sell or trade in a car and obtain a vehicle that has at least a 20% higher average fuel economy than the sold or traded- in car. The bill also creates a federal tax deduction for any state or local taxes paid on the purchase of the more fuel-efficient automobile and makes interest on loans to purchase the more fuel-efficient automobile tax deductible. credit INTRODUCING THE ENERGY EFFICIENT AND ENVIRONMENTALLY FRIENDLY AUTOMOBILE TAX CREDIT ACT March 26, 2009    2009 Ron Paul 38:3 Providing tax deductions and tax credits to make it easier for Americans to purchase fuel- efficient automobiles is a win for American consumers, a win for the environment, and a win for those of us who favor free market solutions to pollution and high gas prices. I urge my colleagues to support this legislation. credit Statement on Comprehensive Healthcare Reform Act March 26, 2009    2009 Ron Paul 39:3 Returning control over health care to the individual is the key to true health care reform. The Comprehensive Health Care Reform Act puts control of health care back into the hands of the individual through tax credits, tax deductions, improving Health Savings Accounts, and Flexible Savings Accounts. Specifically, the Comprehensive Health Care Reform Act: credit Statement on Comprehensive Healthcare Reform Act March 26, 2009    2009 Ron Paul 39:4 A. Provides all Americans with a tax credit for 100% of health care expenses. The tax credit is fully refundable against both income and payroll taxes; credit Statement on Comprehensive Healthcare Reform Act March 26, 2009    2009 Ron Paul 39:6 C. Provides a tax credit for premiums for a high-deductible insurance policy connected with a Health Savings Account (HSA) and allows seniors to use funds in an HSA to pay for a medigap policy; credit INTRODUCING THE TEACHER TAX CUT ACT AND THE PROFESSIONAL EDUCATORS TAX RELIEF ACT April 2, 2009    2009 Ron Paul 42:3 This is why I am introducing the Teachers Tax Cut Act. This legislation provides every teacher in America with a $3,000 tax credit. I am also introducing the Professional Educators Tax Relief Act, which extends the $3,000 tax credit to counselors, librarians, and all school personnel involved in any aspect of the K–12 academic program. credit FAMILY EDUCATION FREEDOM ACT April 2, 2009    2009 Ron Paul 43:1 Mr. PAUL. Madam Speaker, I rise today to introduce the Family Education Freedom Act, a bill to empower millions of working and middle- class Americans to choose a non-public education for their children, as well as making it easier for parents to actively participate in improving public schools. The Family Education Freedom Act accomplishes it goals by allowing American parents a tax credit of up to $5,000 for the expenses incurred in sending their child to private, public, parochial, other religious school, or for home schooling their children. credit FAMILY EDUCATION FREEDOM ACT April 2, 2009    2009 Ron Paul 43:4 According to a survey conducted by Education Next/Harvard PEPG, the majority of Americans support education tax credits. This poll also found strong support for education tax credits among liberals, moderates, conservatives, low-income individuals, African- Americans, and public-school employees. This is just one of numerous studies and public opinion polls showing that Americans want Congress to get the federal bureaucracy out of the schoolroom and give parents more control over their children’s education. credit FAMILY EDUCATION FREEDOM ACT April 2, 2009    2009 Ron Paul 43:6 The $5,000 tax credit will make a better education affordable for millions of parents. Madame Speaker, many parents who would choose to send their children to private, religious, or parochial schools are unable to afford the tuition, in large part because of the enormous tax burden imposed on the American family by Washington. credit FAMILY EDUCATION FREEDOM ACT April 2, 2009    2009 Ron Paul 43:7 The Family Education Freedom Act also benefits parents who choose to send their children to public schools. Parents of children in public schools may use this credit to help improve their local schools by helping finance the purchase of educational tools such as computers or to ensure their local schools can offer enriching extracurricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services, such as tutoring, for their children. credit INTRODUCTION OF THE HOPE PLUS SCHOLARSHIP ACT April 2, 2009    2009 Ron Paul 45:1 Mr. PAUL. Madam Speaker, I raise to introduce the Hope Plus Scholarship Act, which expands the Hope Education Scholarship credit to cover K–12 education expenses. Under this bill, parents could use the Hope Scholarship to pay for private or religious school tuition or to offset the cost of home schooling. In addition, under the bill, all Americans could use the Hope Scholarship to make cash or in-kind donations to public schools. Thus, the Hope Scholarship could help working parents send their child to a private school, while other patents could take advantage of the Hope credit to help purchase new computers for their children’s local public school. credit INTRODUCING THE EDUCATION IMPROVEMENT TAX CUT ACT April 2, 2009    2009 Ron Paul 48:1 Mr. PAUL. Madam Speaker, I rise to introduce the Education Improvement Tax Cut Act. This act, a companion to my Family Education Freedom Act, takes a further step toward returning control over education resources to private citizens by providing a $5,000 tax credit for donations to scholarship funds to enable low-income children to attend private schools. It also encourages private citizens to devote more of their resources to helping public schools, by providing a $5,000 tax credit for cash or in-kind donations to public schools to support academic or extra curricular programs. credit INTRODUCING THE EDUCATION IMPROVEMENT TAX CUT ACT April 2, 2009    2009 Ron Paul 48:4 Returning control over the education dollar for tax credits for parents and for other concerned citizens returns control over both the means and ends of education policy to local communities. People in one community may use this credit to purchase computers, while children in another community may, at last, have access to a quality music program because of community leaders who took advantage of the tax credit contained in this bill. credit INTRODUCING THE EDUCATION IMPROVEMENT TAX CUT ACT April 2, 2009    2009 Ron Paul 48:5 Children in some communities may benefit most from the opportunity to attend private, parochial, or other religious schools. One of the most encouraging trends in education has been the establishment of private scholarship programs. These scholarship funds use voluntary contributions to open the doors of quality private schools to low-income children. By providing a tax credit for donations to these programs, Congress can widen the educational opportunities and increase the quality of education for all children. Furthermore, privately- funded scholarships raise none of the concerns of state entanglement raised by publicly- funded vouchers. credit CONSUMER DEBT May 14, 2009    2009 Ron Paul 55:1 Mr. PAUL. Madam Speaker, I rise to introduce legislation to help Americans struggling with consumer debt by excluding discharges of debt from the definition of taxable income. Currently, when someone is relieved of consumer debt, such as credit card debt, they are taxed on the forgiven debt. So, for example, if a credit card company agrees to forgive $12,000 of a $15,000 debt, the debtor’s taxable income increases by $12,000 – even though the debtor does not actually have an additional $12,000 in his or her bank account. credit CONSUMER DEBT May 14, 2009    2009 Ron Paul 55:2 The only way for Americans to avoid turning cancelation of debt into a taxable event is by declaring bankruptcy or insolvency. Thus, the tax code’s perverse incentives could cause more Americans to declare bankruptcy, which is neither in the best interest of the debtor or their creditors. credit CONSUMER DEBT May 14, 2009    2009 Ron Paul 55:3 Madam Speaker, the tax code should not punish Americans who work out a settlement with their creditors that enables them to avoid bankruptcy. This is unfair to both the debtors and their creditors. I therefore encourage my colleagues to cosponsor my legislation removing discharged debt from the definition of taxable income. credit INTRODUCTION OF COERCION IS NOT HEALTH CARE May 21, 2009    2009 Ron Paul 58:6 Madam Speaker, the key to effective health care reform lies not in increasing government control, but in increasing the American people’s ability to make their own health care decisions. Thus, instead of forcing Americans to purchase government-approved health insurance, Congress should put the American people back in charge of health care by expanding health care tax credits and deductions, as well as increasing access to Health Savings Accounts. Therefore, I have introduced legislation, the Comprehensive Health Care Reform Act (H.R. 1495), which provides a series of health care tax credits and deductions designed to empower patients. I urge my colleagues to reject the big government-knows- best approach to health care by cosponsoring my Coercion is Not Health Care Act and Comprehensive Health Care Reform Act. credit INTRODUCING EVACUEES TAX RELIEF ACT OF 2009 June 18, 2009    2009 Ron Paul 71:1 Mr. PAUL. Madam Speaker, I rise to introduce the Evacuees Tax Relief Act of 2009, legislation providing tax relief to those forced to abandon their homes because of a natural disaster. This legislation provides a tax credit or a tax deduction, depending on the wishes of the taxpayer, of up to $5,000 for costs incurred because of a government-ordered mandatory or voluntary evacuation. Evacuees could use the credit to cover travel and lodging expenses associated with the evacuation, lost wages, property damages not otherwise compensated, and any other evacuation-related expenses. The tax credit is refundable up to the amount of income and payroll taxes a person would otherwise pay, thus ensuring working people who pay more in payroll than in income taxes are able to benefit from this tax relief. The credit is available retroactive to December of 2007, so it is available to Hurricane Ike evacuees, as well as those who evacuated because of Hurricanes Gustav and Dolly. credit HONORING FROST, HOMETOWN, MOODY NATIONAL AND TEXAS FIRST BANKS July 14, 2009    2009 Ron Paul 76:3 The four banks made more than $40 million in recovery loans. These loans provided lifelines to many businesses struggling with both the devastation of Hurricane Ike and the credit crisis. Without the efforts of these four banks, several Galveston businesses would have had to shut their doors. credit COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:3 The four banks made more than $40 million recovery loans. These loans provided lifelines to many businesses struggling with both the devastation of Hurricane Ike and the credit crisis. Without the efforts of these four banks, several Galveston businesses would have had shut their doors. credit COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:9 LINE OF CREDIT Charley DiBella, owner of DiBella’s Italian Restaurant, which took in 4 feet of storm surge, was helped by HomeTown Bank not once but twice after Hurricane Ike, which struck Sept. 13. credit COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:10 DiBella credits the bank and Gary Gilliland, chief commercial lending officer, for providing a line of credit to the restaurant. credit COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:15 Two days after Ike struck, Wall Street institution Lehman Brothers filed for Chapter 11 bankruptcy, deepening a financial crisis and already painful credit crunch that had stalled lending. Fast-and-loose credit practices by the banking giants had come home to roost. credit 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. credit COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:30 NEED REMAINS Albert Shannon, Frost Bank’s group president in this region, and other bankers interviewed for this story credited Mayor Lyda Ann Thomas and Jeff Sjostrom, president of Galveston Economic Development Partnership, for the idea of recovery loans. Island businessman Gerald Sullivan, who early after the storm was appointed by Thomas to help with recovery, also played a role in encouraging recovery loans, bankers said. credit 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. credit 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. credit Statement at Financial Services Committee Hearing July 21, 2009    2009 Ron Paul 82:3 Expanding debt when it was a principal cause of the crisis is foolhardy. Excessive government and private debt is a consequence of a loose Federal Reserve monetary policy. Once a debt crisis hits, the solution must be paying it off or liquidating it. We are doing neither. Net US debt is now 372% of GDP. In the crisis of the 1930s it peaked at 301%. Household debt services requires 14% of the disposable income – an historic high. Between 2000 and 2007 credit debt expanded five times as fast as gross domestic product. credit MORE GOVERNMENT WON’T HELP September 23, 2009    2009 Ron Paul 90:10 Number 9, the Tax Code, including the ERISA laws, must be changed to give everyone equal treatment by allowing a 100 percent tax credit for all medical expenses. credit TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:3 Since the Fed is the source of all economic downturns, it’s impossible for any central banker to regulate in such a manner to prevent the problems that are predictable consequences of his own monetary management. The Federal Reserve fixes interest rates at levels inevitably lower than those demanded by the market. This manipulation is a form of price control through credit expansion, and is the ultimate cause of business cycles and so many of our economic problems, generating the mal- investment, excessive debt, stock, bond, commodity, and housing bubbles. Texas Straight Talk credit - Trust funds are being robbed, hundreds of billions at stake 20 February 1997    Texas Straight Talk 20 February 1997 verse 11 ... Cached Of course, the even bigger crime is that the deficit is not being lowered and the debt is not being retired. It's like you or me running up our credit card bill in order to pay off a loan. There's no debt reduction, just a shell-game with taxpayer funds. credit - Parents must have control of education 20 July 1997    Texas Straight Talk 20 July 1997 verse 14 ... Cached This bill will provide up to $3,000 in tax credits per child, per year, for every American family. Parents will be eligible for the tax credit whether their kids are in public schools, private schools, church schools, or are home schooled. The tax credit can apply toward items such as after-school tutoring, purchasing a computer and educational software, tuition and the cost of books and materials, and almost anything else which the parents believe will enhance their child's education. credit - Paul's legislation focuses on individual liberty 25 August 1997    Texas Straight Talk 25 August 1997 verse 12 ... Cached The second piece of legislation I will discuss this week is HR 1121, the Financial Freedom Act. This legislation will directly affect every American who does business with a credit union or a bank. Over the years banks and credit unions have rightly perceived that they are disparately burdened by federal regulations and taxation, and have seen any relief for their 'competitors' as harmful to their own business. credit - Paul's legislation focuses on individual liberty 25 August 1997    Texas Straight Talk 25 August 1997 verse 14 ... Cached For the banks, HR 1121 ends the Community Reinvestment Act and lowers federal taxes; for the credit unions, the common and multiple membership bonds are expanded. credit - Paul's legislation focuses on individual liberty 25 August 1997    Texas Straight Talk 25 August 1997 verse 15 ... Cached But the biggest winner is the consumer, who benefits either way: with fewer regulations and lower taxes consumers will see savings in their banking costs, while the needed flexibility for credit unions will give individuals greater choices in their financial dealings as competition between institutions increases. credit - 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. credit - By Any Other Name, A Tax Is Still A Tax 27 October 1997    Texas Straight Talk 27 October 1997 verse 7 ... Cached I prefer to let parents have the control in deciding what education options are best for their kids. I introduced HR1816, which will let moms and dads claim up to $3,000 per year per child in tax credits to pay for their kids education and education-related expenses. credit - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 10 ... Cached Apparently, though, if you are a nation with a bad credit problem and a history of making stupid economic decisions, you can come to Uncle Sam and get the cash without any question. Or, as apparently in this case, not even any real requirement to change your mode of behavior. credit 1998 is a new chance to change government for better 05 January 1998    Texas Straight Talk 05 January 1998 verse 9 ... Cached All too often the failed ideology of the past has been focused on taking power from people and giving it in ever growing portions to the government bureaucrats. I propose a different route, with legislation such as HR 1816, the Family Education Freedom Act. This measure would allow parents to take tax credits of up to $3,000 per child per year, so they can provide for their child's education, whether that be in a public, private, church or home school environment. The future of education is found not in some form of government control, but in parental empowerment. While I will be fighting to end the stranglehold the federal government has on our schools, I have brought forward this legislation to make sure parents have the chance to provide for their kids now. credit 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. credit 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. credit 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. credit The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 4 ... Cached Although taxes, spending, regulatory policies, and special interest cronyism compounds the problems, all nations of the world operate with a fiat monetary system and it has allowed the financial bubble to develop. Easy credit and artificially low interest rates starts a chain reaction that by its very nature guarantees a future correction. The later bad consequences of inflating a currency are certain, no matter how beneficial the earlier ones may seem. credit 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. credit The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 11 ... Cached What can we expect from our Federal Reserve? Just as difficult as it is for an addict to cut back on drugs, economic planners refuse to cut back the credit creation to which they have become addicted. Long life may be dependent on sound medical advice and drug abstinence, but feeling good on the short run drives the addict. Likewise, an economy feels good by perpetuating for as long as possible the easy credit that brought good times, while the long life of the currency, the economy and the political system gets little concern. credit 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. credit The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 13 ... Cached But eventually, the markets will rule. Credit creation may lower rates for a time, but when confidence is undermined, an inflation premium will emerge and rates will rise regardless. credit 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. credit Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 9 ... Cached That is what we are witnessing today. The world-wide fragile financial system is now collapsing, and tragically the only cry is for more credit inflation because the cause of our dilemma is not understood. An attempt at credit stimulation with interest rates below one percent, is doing nothing for Japan’s economy and for a good reason: It is the wrong treatment for the wrong diagnosis. credit 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. credit 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. credit Privacy Busters: Big Bank is watching 30 November 1998    Texas Straight Talk 30 November 1998 verse 8 ... Cached Under these regulations, banks will be required to first create a profile of all new and current customers. The profile will include such information as their credit history and other standard financial reviews, but will be expanded to include the customer's deposit and withdrawal habits. This information will be gathered over the first few months of the account's creation. After that, any account activity that deviates from the profile will be considered suspicious behavior. credit Orwellian rules face major opposition 01 February 1999    Texas Straight Talk 01 February 1999 verse 12 ... Cached To combat this, I will be introducing three pieces of legislation. The first is the "Know Your Customer Sunset Act," which will immediately stop these rules from going into effect. The second is the "Bank Secrecy Sunset Act," which will force Congress to either rewrite the poorly written, abused Nixon-era program, or devolve that power to the states. The third is the "FinCEN Public Accountability Act." This legislation will require that agencies let Americans see their own "financial history" files created under current rules, much like what is required of the FBI and credit bureau reporting agencies. credit Phase-in of tax cuts make code more complex 01 March 1999    Texas Straight Talk 01 March 1999 verse 6 ... Cached The first measure is the Child Tax Credit. For 1998 returns, parents can claim $400 per child under the age of 17. Next year, that number will be $500 per child. The credit applies to single filers with adjusted gross incomes less than $75,000 and joint filers with incomes less than $110,000. credit Parents, teachers need freedom 10 May 1999    Texas Straight Talk 10 May 1999 verse 15 ... Cached A common complaint among parents and educators is that the relatively low pay of teachers makes it hard to keep good people in the system. To that end I have introduced HR 937, the Teacher Tax Cut Act, which would give elementary and secondary school teachers a $1,000 annual tax credit. credit Parents, teachers need freedom 10 May 1999    Texas Straight Talk 10 May 1999 verse 16 ... Cached In addition, to ensure parents can provide for their children's specific educational needs, I have introduced HR 935, the Family Education Freedom Act, to give parents a $3,000 per child per year education tax credit. credit Time to Change Priorities 08 November 1999    Texas Straight Talk 08 November 1999 verse 8 ... Cached But, instead of working to end the estate tax, or keep our promises with Social Security, or insuring patient choice through medical savings accounts, we waste our time on low priority items. And, instead of looking to our nation's future, like giving parents a true choice in education by providing them with a battery of education-related tax credits, we have two thirds in Congress voting to support continued and expanded participation in a cold war relic. credit Overall Review 27 December 1999    Texas Straight Talk 27 December 1999 verse 9 ... Cached Last year we won some victories, small though they may be, because the people spoke. People contacted their Members of Congress and US Senators, often saying, "Enough is enough! It is time for a change!" I know this because I hear from my colleagues who tell me that they have received calls and letters, e-mails and faxes. They tell me their constituents agree with our perspective and our agenda. Namely, my colleagues here know that there is a growing movement to get the federal government off the backs and out of the pocketbooks of the American people. Ideas like medical savings accounts, education tax credits and others are gaining momentum. credit The New Year 10 January 2000    Texas Straight Talk 10 January 2000 verse 7 ... Cached It is even possible that "infected" computers may gradually interfere with corrected computers. Only time will tell if we still have any significant problems. I'm certain that if indeed we get by with minimal computer disruptions, the credit will go to the private programmers and non-government entities that knew it was in their best interest to appropriately deal with the problem. credit The New Year 10 January 2000    Texas Straight Talk 10 January 2000 verse 8 ... Cached But government bureaucrats never miss a chance to emphasize their importance. If indeed, the problem was not severe as it appears, it's interesting to note the high visibility in the past months of Y2K Czar, John Koskinen. He now seeks credit for saving the country from chaos. The government Information Coordination Center headed up by Koskinen and his consultants is already looking for another dragon to slay. They are now working to make the Center permanent for the purpose of monitoring any possible technological crisis in the future. The experts at the Center believe the World Wide Web needs closer monitoring. Koskinen concerns are: "information security, whether it's from viruses, hackers, cyber-terrorists, or others, and our ability to share information is critical." credit Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 6 ... Cached But one thing ignored is the fact that a fiat monetary system is incompatible with a free market economy. Instead of depending on production and savings for capital, today's economy depends on new "capital" coming from the Fed's credit machine. When credit is created out of thin air for investment purposes and interest rates are driven artificially low, mal-investment results. This monetary inflation, of which we have had plenty, has already set the stage for the next recession. credit Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 7 ... Cached Many are delighted that Greenspan will stay in charge, believing he can prevent an economic turndown with proper monetary management. Sorry, but it's too late. The distortions are already in place, and because the most recent economic cycle has lasted longer than usual, it means there's been more credit creation and distortion than usual. Therefore a bigger downturn will result. The only policy available to the Fed today is to further inflate the currency in an attempt to delay the inevitable correction. credit Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 9 ... Cached Of course, any of us would "thrive" if we could increase our wealth at that rate with borrowing and counterfeiting - but for us it's illegal. For now, foreigners' willingness to soak up our inflated dollars, while selling us goods at discount, makes us feel wealthier. But that will eventually end with higher interest rates, a weak dollar and CPI type price inflation. When this takes place, any increase in Federal Reserve credit will only accelerate the painful correction. credit 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. credit 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. credit Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 14 ... Cached Alan Greenspan was at one time a free market adherent and gold standard advocate. Read what he had to say about the Federal Reserve Board policy of the 1920s and the subsequent depression. The experts in the 20s had also declared a New Era economic growth without price inflation resulting from technological advances and wise monetary management. Greenspan explains: "The excess credit which the Fed pumped into the economy spilled over into the stock market, triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late. By 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a constant demoralizing of business confidence." (Gold and Economic Freedom, 1966) credit Parental Control Key to Education Reform 24 January 2000    Texas Straight Talk 24 January 2000 verse 9 ... Cached In addition to fighting the nationalization of the teaching profession, I am working to give control of the education dollar back to parents through my Family Education Freedom Act (HR 935). This bill would give parents a $3,000 per year tax credit for each child's education related expenses. Unlike Mr. Gore's proposal, my bill would allow parents the maximum amount of freedom in determining how to educate their children. It would also be free of guidelines and restrictions that only dilute the actual number of dollars spent directly on a child. credit Repeal Earnings Limitation 21 February 2000    Texas Straight Talk 21 February 2000 verse 9 ... Cached Stopping the raid on the Social Security trust fund would also make it easier for me to realize one of my other priorities, ending the absurd tax placed on Social Security beneficiaries. Since Social Security benefits are paid for from tax dollars, taxing these benefits is yet another means of "double taxation." This is why I am cosponsoring legislation to end the tax on Social Security benefits. Tax reduction for seniors is also a major plank in my Pharmaceutical Freedom Act (HR 3636) which provides senior citizens with a tax credit to help them cover the costs of prescription medicines. It is long past time that Congress chooses between raiding the Social Security trust fund and helping seniors afford prescription medicines. credit Answering the Middle Class Squeeze 27 March 2000    Texas Straight Talk 27 March 2000 verse 11 ... Cached Again, there is only one reason why prices are rising instead of falling. Because the government, through its credit-creation mechanism, is engaged in a sort of price controls, it is in fact following a policy that eventuates in price inflation as well as recession. Plus, this credit creation is at the heart of recent instability in the markets, thus threatening retirement security. credit Classroom Excellence Depends on Quality Teachers 10 April 2000    Texas Straight Talk 10 April 2000 verse 11 ... Cached When it comes to recruiting teachers, I have introduced legislation to provide teachers with a $1,000 tax credit. I have suggested that we should not only undertake this program in order to improve teacher take-home pay but also to help reimburse teachers for the out-of-pocket expenses they incur. credit Classroom Excellence Depends on Quality Teachers 10 April 2000    Texas Straight Talk 10 April 2000 verse 13 ... Cached These reforms, together with education-related tax credits that will give parents and students true power over school systems, will result in a real education revolution. During the weeks and months ahead I will continue working to get Washington out of the way of these common sense reforms, because in shrinking the power that politicians and bureaucrats have over education, we are undertaking the most important policy initiatives we can put forward for future generations. credit Time To Get Serious With Big Government 17 April 2000    Texas Straight Talk 17 April 2000 verse 7 ... Cached There is no real way to effectively change these policies. The very nature of the current international regime will always ensure that bad policy will flow from these institutions because they have essentially been captured by those who have an interest in maintaining and expanding the international debt and credit machine. The only way to stop these policies is to end the agencies. credit True Free Trade Benefits Texas Farmers 03 July 2000    Texas Straight Talk 03 July 2000 verse 5 ... Cached "Unfortunately, as details of the final arrangement emerge, it becomes obvious that one significant hurdle remains in place. By keeping in place prohibitions on private financing, the compromise, while being a good first step, does not go far enough. Under the current agreement, farmers seeking to extend credit to Cuban buyers cannot do so through a U.S. bank. Our farmers should not have to seek financing from foreign banks. This hurdle may limit the practical benefits of the repeal of the embargo. credit Lower Taxes Encourage Saving for Retirement 24 July 2000    Texas Straight Talk 24 July 2000 verse 7 ... Cached I have introduced legislation that would have provided faster pension and IRA tax relief. In 1999 I introduced H.R. 802, a bill which would have immediately raised the annual deductible IRA contribution amount to $5,000, without the gradual increments of the current bill. I also co-sponsored bills in 1999 which would have allowed a tax credit for contributions to IRAs and broadened penalty-free withdrawals from IRAs. Still, H.R. 1102 does provide real tax cuts for American taxpayers. Individuals will be able to reduce their income tax bills immediately with an increased IRA contribution deduction, while putting more of their paychecks into tax-deferred pensions. credit Long and Short Term Solutions to the Rising Cost of Prescription Drugs 07 August 2000    Texas Straight Talk 07 August 2000 verse 5 ... Cached This is why I introduced the "Pharmaceutical Freedom Act" (HR 3636). This legislation ensures that millions of Americans, including seniors, will have access to affordable prescription drugs. My bill makes pharmaceuticals more affordable to seniors by reducing government imposed cost increases and providing seniors a prescription drug tax credit. credit Long and Short Term Solutions to the Rising Cost of Prescription Drugs 07 August 2000    Texas Straight Talk 07 August 2000 verse 6 ... Cached The first provision of the "Pharmaceutical Freedom Act" provides senior citizens a tax credit off the top of their taxable income equal to 80% of their prescription drug costs. The tax credit is intended to supplement efforts to reform and strengthen Medicare by ensuring seniors have the ability to use Medicare funds to purchase prescription drugs. I am a strong supporter of strengthening the Medicare system to allow for more choice and consumer control. credit Help for Those with Terminal Illnesses 21 August 2000    Texas Straight Talk 21 August 2000 verse 7 ... Cached Similarly, I have introduced legislation designed to provide needed resources to parents struggling to pay for their terminally ill or disabled children’s medical bills. The "Family Health Tax Cut Act" (H.R. 4799) allows families to deduct a portion of their health care expenses for dependent children. Specifically, the Act provides parents caring for a child with a disability, cancer, terminal illness, or other condition requiring specialized medical care with a tax credit of up to $3,000. Our tax laws permit businesses to deduct employee health care costs from their income taxes; surely families should be permitted the same deduction to free up more of their financial resources to pay for the medical bills of their seriously ill children. The deduction is especially critical to low-income families, many of whom do not have health insurance provided by their employers. credit Local Control is the Key to Education Reform 04 September 2000    Texas Straight Talk 04 September 2000 verse 5 ... Cached Last year I introduced legislation designed to return control of local schools to parents. The "Family Education Freedom Act" (H.R. 935) would empower millions of lower-income and middle class families to improve their local schools or choose a private school for their children. This is accomplished by allowing parents a tax credit of up to $3,000 per child for expenses incurred in sending their children to a public, private, parochial, or other religious school. The credit also is available to parents who home-school their children. credit Local Control is the Key to Education Reform 04 September 2000    Texas Straight Talk 04 September 2000 verse 6 ... Cached The $3,000 tax credit will make better education affordable to parents who would choose to send their children to a private school, but cannot because of the enormous tax burden imposed by Washington. Also, parents who wish to send their children to local public schools may use their credit dollars to finance the purchase of educational tools or fund extracurricular programs. credit 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. credit Local Control is the Key to Education Reform 04 September 2000    Texas Straight Talk 04 September 2000 verse 8 ... Cached When it comes to education policy, one size does not fit all. I want to give parents the freedom to choose the best option for their kids, without federal oversight. American families agree with me, as polls show that over 70% of them support education tax credits! True education reform requires that we return control of schools to parents and local school districts. credit Congress Must Work for Seniors 18 September 2000    Texas Straight Talk 18 September 2000 verse 6 ... Cached Next, Congress must work to lower the cost of prescription drugs. Many seniors, especially those on fixed incomes, are unable to afford the expensive medications they need every month. Unfortunately, nearly every proposal coming out of Washington attempts to lower drug costs through price-fixing (which inevitably leads to rationing of drugs), or through subsidies to insurance or pharmaceutical companies. My legislation, the "Pharmaceutical Freedom Act," makes prescription drugs more affordable by providing seniors with a tax credit for drug expenses so they can spend their resources on needed medications. Also, my legislation eliminates needless government regulations and barriers to competition which drive up drug prices. Congress must remove bureaucratic regulations that prevent America’s seniors from enjoying lower prices available from Internet and foreign pharmacies. The key to lowering drug prices is to create a true, competitive free market for prescription drugs. Additionally, my legislation returns control of health care dollars to our seniors and their doctors, rather than federal bureaucrats. credit Spending, Tax Cuts, or Debt Reduction? 25 September 2000    Texas Straight Talk 25 September 2000 verse 5 ... Cached This "lockbox" bill underscores the rise of a very important debate on Capitol Hill regarding our nation's "budget surplus." It is important to understand the budget process when we consider the rhetoric from Washington and the national media. While many politicians seek to take credit for the seemingly rosy outlook for the federal budget, it is easy for the public to be misled regarding the true nature of the surplus. credit 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. credit Drug Re-Importation Will Lower Prescription Drug Costs 09 October 2000    Texas Straight Talk 09 October 2000 verse 7 ... Cached Legislation I introduced earlier this year would go farther in creating beneficial price competition for pharmaceuticals. The "Pharmaceutical Freedom Act" (H.R. 3636) eliminates needless FDA regulations which prevent Americans from buying low-cost drugs from foreign and Internet pharmacies. The Act also provides seniors with a tax credit of up to 80% of their prescription drug expenditures. My approach applies free-market principles to the problem: drugs become more affordable when we encourage price competition and provide tax relief to offset drug expenses. The free-market approach lets you and your doctor choose the prescription drugs that are appropriate for you. credit Government Poses the Greatest Threat to our Privacy 23 October 2000    Texas Straight Talk 23 October 2000 verse 4 ... Cached Several years ago, a constituent of mine was victimized by an unscrupulous insurance company employee. Unknown to my constituent at the time, the thief obtained her Social Security number and stole her identity. The thief applied for credit cards, took out loans, and wrote bad checks, all using her name. Her credit rating was ruined, and she found herself unable to get a job in her chosen field of law enforcement because felonies committed by the thief showed up on background checks. After years of fighting with credit agencies, state authorities, and the Social Security administration, she still has not completely cleared her name. credit A Legislative Agenda for 2001 01 January 2001    Texas Straight Talk 01 January 2001 verse 5 ... Cached Congress also must address education reform in 2001. The answer is not more government spending on more failed federal programs. Federal involvement in education must be limited, returning control over schools to parents and local education boards. Federal tax dollars must be returned to parents through tax credits and deductions for tuition and other education-related expenses. No longer can we ask parents to send so much of their paychecks to Washington while their local schools deteriorate. Education standards in this country were much higher when local school boards controlled their own curricula, teacher standards, and discipline. Congress should understand this and focus on legislation which returns control and tax dollars back to parents, teachers, and local administrators. The era of micromanagement of our schools by federal education bureaucrats must end if we are to stop the decline in education standards. credit A Legislative Agenda for 2001 01 January 2001    Texas Straight Talk 01 January 2001 verse 6 ... Cached Health care also will be a defining issue for Congress this year. Again, the answer to concerns about health care costs and quality is not a massive federal program. Schemes for "free" national health care will only result in shortages of drugs and doctors, waiting lists for procedures, and rationing of treatments and pharmaceuticals. Our emphasis should be on restoring market incentives to the health care and pharmaceutical industries. Our current FDA system reduces incentives for the development of new drugs and restricts competition for existing drugs, which results in the very high drug prices borne by consumers. Congress should undo the regulatory burdens that drive prices up, while providing tax credits and deductions for health care and prescription drug costs. credit Education Freedom Legislation Will Provide Meaningful Reform 29 January 2001    Texas Straight Talk 29 January 2001 verse 5 ... Cached The centerpiece of my education package is the "Family Education Freedom Act." This measure will give parents a $3,000 per-child per-year tax credit. The credit can apply to tuition, tutors, books, computers, and other related educational needs. It also applies equally to parents who choose to educate their children in public, private, or home settings. This tax cut is more effective than current voucher plans, which leave the door open to increased government influence on teacher standards and school curricula. Also, the tax credit takes no funding away from public schools. credit Education Freedom Legislation Will Provide Meaningful Reform 29 January 2001    Texas Straight Talk 29 January 2001 verse 6 ... Cached The second measure is the "Education Improvement Tax Cut," legislation allowing individuals to claim up to $3,000 per year in tax credits for cash or "in-kind" donations to schools and scholarship programs. The goal is to encourage people to set up scholarship funds for disadvantaged youth, and also become more involved with their local schools. credit Education Freedom Legislation Will Provide Meaningful Reform 29 January 2001    Texas Straight Talk 29 January 2001 verse 7 ... Cached Finally, I will introduce the "Teacher Tax Cut Act." This measure grants all teachers a $1,000 tax credit, effectively raising their salary by $1,000 annually without increasing local or federal education spending. Last year, new teachers made an average of $10,000 less than other college graduates. With teachers often ranking at the bottom tier of professional pay, the federal government must recognize that teaching our youth is an honorable and important profession. Many others in Congress agree that teachers deserve this tax credit: the "Teacher Tax Cut Act" already has received bipartisan support from Rep. Bob Etheridge (D-North Carolina), Rep. Dan Miller (R-Florida), Rep. Cynthia McKinney (D-Georgia), Rep. Richard Baker (R-Louisiana), and Rep. Roscoe Bartlett (R-Maryland). credit Faith-Based Initiative Plan Poses Risks to Religious Organizations 05 February 2001    Texas Straight Talk 05 February 2001 verse 4 ... Cached The ABC expose aired just days before President Bush announced his plan to allow private charities and religious organizations a greater role in delivering social services currently provided mostly by the federal government. He certainly is correct in his assertion that private groups do a better job of running food banks, day care centers, drug treatment centers, and other social programs. I applaud his desire to transfer funds away from government agencies and into the private sector. I certainly disagree with critics who misunderstand the First amendment and view the President's proposal as a sinister endorsement of religion. Bush especially should be credited for offering an alternative to the status quo, because federal agencies simply do a terrible job of providing social services. credit 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. credit Economic Woes and the Federal Reserve 19 March 2001    Texas Straight Talk 19 March 2001 verse 9 ... Cached Only six months ago, market pundits were still proclaiming a new era of unending prosperity. They claimed that the fundamentals no longer mattered, that technology would save us from any more bear markets. Technology is wonderful, but it cannot save us from our own misguided monetary policies. Until we stop permitting the Fed to manipulate the economy, real prosperity will elude us. The Fed received credit for the boom times of the 1990s, yet its policies are responsible for the market correction and economic recession we are experiencing today. credit The Federal Education Morass 28 May 2001    Texas Straight Talk 28 May 2001 verse 7 ... Cached I believe that parents and teachers know what is best for their schools at the local level. The key to reforming public education in America is returning local control back to our public schools. I have introduced three education tax credit bills which keep more tax dollars and more decision making power at the local level. The first provides parents with a $3,000 per child credit for educational expenses, including tuition, books, computers, and tutors. The second allows parents or individuals to claim up to $3,000 in tax credits for cash or in-kind donations to schools and scholarship programs. The third bill grants all teachers a $1,000 tax credit, effectively raising their salaries without spending tax dollars. All three of these measures share the same goal of insuring that parents, rather than federal education bureaucrats, decide how their children are educated. credit 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. credit 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. credit Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 2 ... Cached Enron, Bankruptcy, and Easy Credit credit Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 3 ... Cached The recent bankruptcy filing by Enron has shaken the economy, with investors, employees, and creditors losing billions in a few short months. The shocking and sudden demise of America's seventh-largest company raises serious issues about stock valuations and the financial health of America's big companies. Questions are being raised about improprieties on the part of Enron management and its accounting firm. If evidence of fraud or other criminal activity exists, management and auditors should of course be held responsible. People are understandably angry, especially those who suffered serious financial losses. However, we should be careful not to blame the free market for the actions of a few in what is actually a very highly regulated market. credit 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. credit 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. credit Argentine Default and the IMF 14 January 2002    Texas Straight Talk 14 January 2002 verse 4 ... Cached Believe it or not, such an institution exists, and it's called the International Monetary Fund. The IMF is an international organization comprised of member states, much like the UN, that takes your tax dollars and sends them overseas. It's expensive, too, just like the UN, enjoying a $37 billion line of credit provided by American taxpayers. credit Optimism or Pessimism for the Future of Liberty? 11 February 2002    Texas Straight Talk 11 February 2002 verse 7 ... Cached The economic ramifications of our war on terrorism are also quite serious. Although the recession certainly cannot be blamed solely on the September 11th attacks, the huge increases in federal spending and the effects 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, it is certain that deficits will grow significantly. The Federal Reserve will remain under great pressure to continue its dangerous monetary inflation by printing dollars and expanding credit. This policy will result in higher rather than lower interest rates, a weak dollar, and rising prices. The danger of our economy spinning out of control cannot be dismissed. credit The Voucher Debate and the Failure of Public Education 25 February 2002    Texas Straight Talk 25 February 2002 verse 7 ... Cached The Supreme Court, like Congress, should simply follow the Constitution. The Constitution allows states and local governments to decide for themselves whether to have a voucher program. It does not, however, allow the federal government to fund, regulate, or control those voucher programs. The emphasis on local control established in the Constitution is especially important when it comes to education, and it is no coincidence that our schools have declined as federal control has increased. It’s time to end the 40-year Washington stranglehold on education by returning control -which means returning tax dollars- to parents and local school systems. The best immediate approach is to give parents a federal tax credit for amounts spent on education. Ultimately, however, we can only resurrect our public schools by following the Constitution and ending the federal education monopoly. credit The Truth about Government Debt 11 March 2002    Texas Straight Talk 11 March 2002 verse 7 ... Cached Debt and credit, wisely used, can be proper tools for individuals and businesses. After all, individuals often want to expand by starting families and buying houses, while businesses want to expand by hiring more employees and increasing their capacity. In a free society, however, we can never view expansion as a proper goal for government. Unlike a private sector business, our federal government should not be seeking out new ways to increase the scope of its dubious "services." Any government that consumes 40% of the most productive economy in the world and still can't balance its books is a government that vastly overspends. A cursory examination of the annual appropriations bills reveals incredible amounts of unconstitutional, wasteful, and truly unnecessary spending. This uncontrolled spending allows government to grow far beyond its proper constitutional parameters, while also threatening the very solvency of future generations. So I disagree with the supply-side argument that government debt doesn't matter. The issue is not whether the Treasury has sufficient current income to service the debt, but rather whether a government that spends so much is leading us to ruin. Debt does matter, especially to future generations that will be asked to pay for our extravagance. credit 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. credit 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. credit 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. credit 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. credit 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. credit 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. credit What About Government Accountability? 15 July 2002    Texas Straight Talk 15 July 2002 verse 6 ... Cached So why is there not more outrage about government financial accountability? Of course we read the occasional news article lamenting $400 hammers at the Pentagon, but for the most part Congress gets a free pass on its own fiscal mismanagement. What we hear instead are calls for more regulation of our already heavily regulated mixed economy. Few suggest that federal interference in the market, especially Federal Reserve expansion of credit, creates the distortions that make it possible for corporations to become so overvalued in the first place. No one mentions that market forces ultimately cut through the distortions, causing the stock prices of fraudulent corporations to plummet. Instead we hear denunciations of the free market, and calls for more regulations from the very career politicians who are so completely unfit to manage anything. credit 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. credit Does Government Run the Economy? 19 August 2002    Texas Straight Talk 19 August 2002 verse 4 ... Cached Notice that while our economic problems are always blamed on corporations, greed, capitalism, or a mysterious "business cycle," the solutions are always presumed to come from government. When the economy falters, the public clamors for the government to do something- and when the economy does well, politicians take credit for the good times caused by their sound economic policies. This reflects the pervasive attitude in America that government should "run" the economy. credit Support the President's Tax-Free Savings Plan 10 February 2003    Texas Straight Talk 10 February 2003 verse 2 ... Cached Although the media has focused on the President’s proposal to end the harmful double taxation of dividends, he deserves far more credit for proposing tax-free savings accounts. These accounts would benefit millions of American families not only by reducing their taxes, but also by planting the seeds for them to enjoy financial stability and peace of mind decades later. credit Time to Renounce the United Nations? 17 March 2003    Texas Straight Talk 17 March 2003 verse 3 ... Cached The administration deserves some credit for asserting that we will go to war unilaterally if necessary, without UN authorization. But it sends a mixed message by doing everything it can to obtain such authorization. Efforts to build a “coalition” through the promise of billions in foreign aid dollars only reinforce the perception that we’re trying to buy support for the war. The message seems to be that the UN is credible when we control it and it does what we want, but lacks all credibility when it refuses to do our bidding. The bizarre irony is while we may act unilaterally in Iraq, the very justification for our invasion is that we are enforcing UN resolutions! credit 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! credit Congress Exceeds its Credit Limit 14 April 2003    Texas Straight Talk 14 April 2003 verse 1 ... Cached Congress Exceeds Its Credit Limit credit Congress Exceeds its Credit Limit 14 April 2003    Texas Straight Talk 14 April 2003 verse 3 ... Cached Most Americans don’t spend much time worrying about the national debt, which now totals more than six 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 $22,000. Of course the federal government never hands each taxpayer a bill for that amount, for obvious reasons. Instead, it uses your income taxes 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’s rising steadily. credit The Federal Debt Spiral 02 June 2003    Texas Straight Talk 02 June 2003 verse 5 ... Cached Debt simply has lost any remnant of stigma in Washington. The point of the debt limit law was to shine a public light on government borrowing and make lawmakers more accountable for deficit spending. The original intent behind the law- to limit borrowing- has been abandoned. Today Congress can raise the debt limit at any time with virtually no media attention. More importantly, there is no political fallout. This puts Congress in the position of a spendthrift debtor who can authorize spending limit increases on its own credit card! credit Who Deserves a Tax Credit? 16 June 2003    Texas Straight Talk 16 June 2003 verse 1 ... Cached Who Deserves a Tax Credit? credit 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. credit Who Deserves a Tax Credit? 16 June 2003    Texas Straight Talk 16 June 2003 verse 3 ... Cached The biggest issue was whether lower-income Americans, who often pay little or no income taxes, ought to get a child tax credit. This is a legitimate question when we consider some have zero tax liability because they do not work at all. If an individual truly pays no federal taxes, then any payment he receives from the government is not really a “tax credit,” but rather a welfare payment. credit Who Deserves a Tax Credit? 16 June 2003    Texas Straight Talk 16 June 2003 verse 6 ... Cached I’m for lowering everybody’s federal tax bill, because I believe every dollar left in the private economy benefits all Americans much more than a dollar sent to Washington. Therefore, I believe tax credits should be refundable against both income and payroll taxes. For a poor family scraping by on $15,000 per year, a $300 or $500 refund of payroll taxes could be enormous. credit Who Deserves a Tax Credit? 16 June 2003    Texas Straight Talk 16 June 2003 verse 7 ... Cached The changes to the child tax credit are not final, because the House and Senate have not yet reconciled their differences. However, the likely changes can be summarized as follows: credit Who Deserves a Tax Credit? 16 June 2003    Texas Straight Talk 16 June 2003 verse 8 ... Cached · For middle-income families, the current child tax credit of $600 increases to $1,000 for 2003 and 2004. If the House version prevails, this increase will stay in effect through 2010. If not, the credit will stupidly revert to $700 in 2005 and increase to $1,000 by 2010. credit Who Deserves a Tax Credit? 16 June 2003    Texas Straight Talk 16 June 2003 verse 9 ... Cached · Lower-income families making between $10,500 and $26,000 get no relief in 2003, but must wait until 2004 to apply for a refundable child credit. In 2004 they are eligible for a credit of 15% of earned income. credit Who Deserves a Tax Credit? 16 June 2003    Texas Straight Talk 16 June 2003 verse 10 ... Cached · Currently the child credit is phased out for individuals making over $75,000 and couples making over $110,000. Both the House and Senate proposals are likely to increase that amount to $150,000 for married couples. credit Who Deserves a Tax Credit? 16 June 2003    Texas Straight Talk 16 June 2003 verse 11 ... Cached · Middle-income families who qualified for child credits last year will begin receiving $400 per child advance refund checks for 2003 at the end of July. credit 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. credit 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. credit The Tyranny of Paper Money 08 September 2003    Texas Straight Talk 08 September 2003 verse 2 ... Cached In an article entitled “Gold and Economic Freedom,” Federal Reserve Chairman Alan Greenspan wrote that “The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom…The speculative imbalances had become overwhelming and unmanageable by the Fed… In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.” The irony is that Mr. Greenspan’s words, written in 1966 to describe the era leading up to the Great Depression, could easily have been written in 2003 to describe the consequences of his own Fed policies during the 1990s. credit 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. credit 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. credit 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. credit Lessons from the California Recall 13 October 2003    Texas Straight Talk 13 October 2003 verse 3 ... Cached The problem in California is easy to identify: the state government consistently spends more than collects in taxes. Drunk on record revenues from the stock boom of the late 1990s, legislators in California went on a spending spree that bloated social services and added thousands of government employees to state payrolls. Politically, social service programs and government jobs are easy to create- but virtually impossible to eliminate. So when the bubble burst and tax revenues dropped dramatically, the state predictably kept spending at the same rate. The result is record budget deficits and the potential for a default on payments to state employees, various creditors, and bondholders. credit 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. credit Economic Woes Begin at Home 03 November 2003    Texas Straight Talk 03 November 2003 verse 6 ... Cached In fact, our ability to continue funding the welfare-warfare state without destroying the American economy depends on foreigners buying our debt. Perhaps we should think twice before we start bullying and browbeating our foreign creditors to change their economic or other polices to our liking. credit Elusive Peace in the Middle East 15 December 2003    Texas Straight Talk 15 December 2003 verse 6 ... Cached President Bush and Secretary of State Powell, to their credit, have praised the Geneva Accord. The president termed the Accord “productive,” while the secretary stated he “Has an obligation to listen to individuals who have interesting ideas.” This is encouraging. Still, the impulse that demands American engagement is strong. One congressional leader scoffed at what he termed a “freelance peace plan,” but his sarcasm ignores the utter failure of “official” peace efforts. He also fails to understand that America cannot impose its will upon every conflict around the globe. Lasting, effective peace agreements can be crafted only by those who will live under them. credit Greenspan's Black Magic 23 February 2004    Texas Straight Talk 23 February 2004 verse 4 ... Cached Never mind, says Mr. Greenspan. Mortgage refinancing, made wildly popular by artificially low interest rates established by the Fed, will be the saving grace of American households. They can simply borrow against their homes to finance living beyond their means, a practice encouraged by Fed policies. But what happens when home prices stop going up? What happens when families reach a point where they cannot make payments on two, three, or even more mortgages? How can the Fed chairman equate mortgage credit with real economic growth? credit 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. credit Gay Marriage Quicksand 01 March 2004    Texas Straight Talk 01 March 2004 verse 5 ... Cached However, many Americans understandably fear that if gay marriage is legalized in one state, all other states will be forced to accept such marriages. They argue that the Full Faith and Credit Clause of the Constitution essentially federalizes the issue; hence a constitutional amendment is necessary. credit Gay Marriage Quicksand 01 March 2004    Texas Straight Talk 01 March 2004 verse 6 ... Cached But the Defense of Marriage Act, passed in 1996, explicitly authorizes states to refuse to recognize gay marriages performed in other states. Furthermore, the Supreme Court repeatedly has interpreted the Full Faith and Credit clause to allow Congress to limit the effect of state laws on other states. In fact, federal courts almost universally apply the clause only to state court judgments, not statutes. So a constitutional amendment is not necessary to address the issue of gay marriage, and will only drive yet another nail into the coffin of federalism. If we turn regulation of even domestic family relations over to the federal government, presumably anything can be federalized. credit Inflation- Alive and Well 08 March 2004    Texas Straight Talk 08 March 2004 verse 6 ... Cached The Treasury department parrots the Fed line that consumer prices, as measured by the consumer price index (CPI), are under control. But even some Keynesian economists admit that CPI grossly understates true inflation. The most glaring problem is that CPI excludes housing prices, instead tracking rents. The Fed’s easy credit policies have created an artificial mortgage boom, enabling many Americans who would not have met credit standards 30 years ago to buy houses. So demand for rentals has diminished, causing rental housing prices to drop and distorting the CPI downward. However, everyone knows the cost of purchasing a home has increased dramatically in the last ten years. Home prices in many regions have more than doubled in just five years. So price inflation certainly is alive and well when to comes to the largest purchase most Americans make. credit The Federal Reserve Debt Engine 26 April 2004    Texas Straight Talk 26 April 2004 verse 5 ... Cached In fact, he expressly cites the benefits of increased household spending made possible by mortgage refinancing. But new debt is not wealth, and it’s impossible to borrow one’s way into prosperity. Mortgage debt increased 13% last year, while consumer credit debt also increased. American households unquestionably have more debt and save less than ever before. Yet we are expected to believe that more spending and more debt are the keys to economic prosperity. credit 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. credit 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. credit 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. credit Zero Down for the American Dream 21 June 2004    Texas Straight Talk 21 June 2004 verse 7 ... Cached Despite the congressional rhetoric about helping the poor, federal housing policies often harm poor people by pushing them into houses they may not be ready to buy. Given the realities of insurance, property taxes, maintenance, and repairs, many low-income buyers lose their homes and destroy their credit ratings. Easy credit and low interest rates, courtesy of the Federal Reserve, have dramatically increased housing demand and artificially increased prices. Zero down payment schemes do the same thing by pushing renters into the housing market. This increased demand actually serves to price many poor Americans out of the housing market indefinitely. credit Resisting Judicial Tyranny 26 July 2004    Texas Straight Talk 26 July 2004 verse 2 ... Cached The US House passed the Marriage Protection Act last week, a bill designed to ensure that the “full faith and credit” clause of the Constitution is not used to impose gay marriage on Texas or any other state. You may remember Congress passed the Defense of Marriage Act in 1996, which explicitly authorizes states to refuse recognition of gay marriages performed in other states. However, the lack of respect federal judges show for the plain language of the Constitution necessitated further congressional action. The Act underscores an important legal point: Marbury vs. Madison did not alter the congressional power to regulate and limit federal court jurisdiction, which is plainly stated in Article III. The drafters of the Constitution gave Congress the power to limit federal jurisdiction to provide a check on out-of-control federal judges. In other words, the federalist concept of checks and balances applies to the judiciary just as it does to the legislative and executive branches. The Marriage Protection Act represents a long-overdue exercise of the congressional power to limit and define federal court jurisdiction. credit Government Debt- The Greatest Threat to National Security 25 October 2004    Texas Straight Talk 25 October 2004 verse 7 ... Cached The federal government issues U.S. Treasury bonds to finance its deficit spending. The largest holders of those Treasury notes-- our largest creditors-- are foreign governments and foreign individuals. Asian central banks and investors in particular, especially China, have been happy to buy U.S. dollars over the past decade. But foreign governments will not prop up our spending habits forever. Already, Asian central banks are favoring Euro-denominated assets over U.S. dollars, reflecting their belief that the American economy is headed for trouble. It’s akin to a credit-card company cutting off a borrower who has exceeded his credit limit one too many times. credit Government Debt- The Greatest Threat to National Security 25 October 2004    Texas Straight Talk 25 October 2004 verse 8 ... Cached Debt destroys U.S. sovereignty, because the American economy now depends on the actions of foreign governments. While we brag about our role as world superpower in international affairs, we are in truth the world’s greatest debtor. Like all debtors, we are not truly free. China and other foreign government creditors could in essence wage economic war against us simply by dumping their huge holdings of U.S. dollars, driving the value of those dollars sharply downward and severely damaging our economy. Desmond Lachman, an economist at the American Enterprise Institute, states that foreign central banks “Now have considerable ability to disrupt U.S. financial markets by simply deciding to refrain from buying further U.S. government paper.” Former Treasury secretary Lawrence Summers warns about “A kind of global balance of financial terror,” noting our dependency on “the discretionary acts of what are inevitably political entities in other countries.” credit Government Debt- The Greatest Threat to National Security 25 October 2004    Texas Straight Talk 25 October 2004 verse 9 ... Cached Ultimately, debt is slavery. Every dollar the federal government borrows makes us less secure as a nation, by making America beholden to interests outside our borders. So when you hear a politician saying America will do “whatever it takes” to fight terrorism or rebuild Iraq or end poverty or provide health care for all, what they really mean is they are willing to sink America even deeper into debt. We’re told that foreign wars and expanded entitlements will somehow make America more secure, but insolvency is hardly the foundation for security. Only when we stop trying to remake the world in our image, and reject the entitlement state at home, will we begin to create a more secure America that is not a financial slave to foreign creditors. credit Raising the Debt Limit: A Disgrace 22 November 2004    Texas Straight Talk 22 November 2004 verse 5 ... Cached Congress has become like the drunk who promises to sober up tomorrow, if only he can keep drinking today. Does anyone really believe this will be the last time, that Congress will tighten its belt if granted one last loan? What a joke! There is only one approach to dealing with an incorrigible spendthrift: cut him off. Congress wastes hundred of billions of dollars every year on countless agencies and programs. Rather than raising the federal government’s credit limit, Congress easily could mandate cuts in the existing bloated budget. credit 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. credit 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. credit 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. credit The Maestro Changes his Tune 21 February 2005    Texas Straight Talk 21 February 2005 verse 3 ... Cached Nearly 40 years ago, Federal Reserve chair Alan Greenspan wrote persuasively in favor of a gold monetary standard in an essay entitled Gold and Economic Freedom. In that essay he neatly summarized the fundamental problem with fiat currency in a few short sentences: “The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit… In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value… Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.” credit 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. credit Deficits Make You Poorer 14 March 2005    Texas Straight Talk 14 March 2005 verse 9 ... Cached Deficits mean more borrowing overseas, which threatens U.S. sovereignty. Never before has the American economy depended so much on the actions of foreign governments and central banks. China and other foreign creditors could in essence wage economic war against us simply by dumping their huge holdings of U.S. dollars, driving the value of those dollars sharply downward and severely damaging our economy. Every dollar the federal government borrows makes us less secure as a nation, by making America beholden to interests outside our borders. credit Who Opposes Simpler, Lower Taxes? 17 October 2005    Texas Straight Talk 17 October 2005 verse 5 ... Cached The reform panel should have two simple goals: make taxes lower, and make taxes simpler. Anything else quite frankly is insulting to the American public. But during several hours of discussion last week, the various panelists talked about everything but those two objectives. Instead they embraced the practice of using the tax code as a tool for social engineering, debating what exemptions, credits, and deductions should be tinkered with to steer taxpayers toward or away from certain activities. credit 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? credit 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! credit 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. credit How Government Debt Grows 13 March 2006    Texas Straight Talk 13 March 2006 verse 6 ... Cached Debt and credit, wisely used, can be proper tools for individuals and businesses. In a free society, however, we can never view expansion as a proper goal for government. Unlike a private business, our federal government should not be seeking out new ways to increase the scope of its dubious “services.” Any government that consumes at least 25% of the American economy and still can't balance its books is a government that vastly overspends. credit 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. credit 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. credit 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. credit Lowering the Cost of Health Care 21 August 2006    Texas Straight Talk 21 August 2006 verse 9 ... Cached HR 3075 provides truly comprehensive health care reform by allowing families to claim a tax credit for the rising cost of health insurance premiums. With many families now spending close to $1000 or even more for their monthly premiums, they need real tax relief-- including a dollar-for-dollar credit for every cent they spend on health care premiums-- to make medical care more affordable. credit Lowering the Cost of Health Care 21 August 2006    Texas Straight Talk 21 August 2006 verse 10 ... Cached HR 3076 is specifically designed to address the medical malpractice crisis that threatens to drive thousands of American doctors- especially obstetricians- out of business. The bill provides a dollar-for-dollar tax credit that permits consumers to purchase "negative outcomes" insurance prior to undergoing surgery or other serious medical treatments. Negative outcomes insurance is a novel approach that guarantees those harmed receive fair compensation, while reducing the burden of costly malpractice litigation on the health care system. Patients receive this insurance payout without having to endure lengthy lawsuits, and without having to give away a large portion of their award to a trial lawyer. This also drastically reduces the costs imposed on physicians and hospitals by malpractice litigation. Under HR 3076, individuals can purchase negative outcomes insurance at essentially no cost. credit Lowering the Cost of Health Care 21 August 2006    Texas Straight Talk 21 August 2006 verse 11 ... Cached HR 3077 makes it more affordable for parents to provide health care for their children. It creates a $500 per child tax credit for medical expenses and prescription drugs that are not reimbursed by insurance. It also creates a $3,000 tax credit for dependent children with terminal illnesses, cancer, or disabilities. Parents who are struggling to pay for their children's medical care, especially when those children have serious health problems or special needs, need every extra dollar. credit Monetary Inflation is the Problem 04 December 2006    Texas Straight Talk 04 December 2006 verse 7 ... Cached However, when the Fed sets interest rates artificially low, the cost of borrowing becomes cheap. Individuals incur greater amounts of debt, 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. credit 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. credit 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. credit 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. credit Don't Blame the Market for Housing Bubble 19 March 2007    Texas Straight Talk 19 March 2007 verse 9 ... Cached Fed credit also distorts mortgage lending through Fannie Mae and Freddie Mac, two government schemes created by Congress supposedly to help poor people. Fannie and Freddie enjoy an implicit guarantee of a bailout by the federal government if their loans default, and thus are insulated from market forces. This insulation spurred investors to make funds available to Fannie and Freddie that otherwise would have been invested in other securities or more productive endeavors, thereby fueling the housing boom. credit 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. credit High Risk Credit 20 August 2007    Texas Straight Talk 20 August 2007 verse 1 ... Cached High Risk Credit credit High Risk Credit 20 August 2007    Texas Straight Talk 20 August 2007 verse 3 ... Cached As markets went on a rollercoaster ride last week, our economy is coming close to a day of reckoning for loose credit policies being followed by the Federal Reserve Bank. Simply, foreign banks we have been relying on to buy our debt are waking up to the reality of much higher default rates than predicted, and many mortgage backed securities have been reduced to “junk” ratings. Wall Street fears the possibility of tightening credit and the tightening of America’s belts. Why, they say, “if Americans spend only what they can afford, think of the ripple effects throughout the economy!” This is the cry, as the call comes for the fed to cut rates and bail out companies in trouble. credit 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. credit The Money Has to Come From Somewhere 23 September 2007    Texas Straight Talk 23 September 2007 verse 4 ... Cached In a very real sense, the Fed and the government are close to going over the spending limit of our nation’s credit card. We rely on foreign investors to buy our debt so our government can maintain its appetite for spending. Yet the market for US Treasury Bonds is rapidly shrinking as yield declines. Still the government will need an estimated $100 billion more for every year we “stay the course” in Iraq , not to mention what a possible conflict in Iran could cost. credit Keeping Promises to Seniors 07 October 2007    Texas Straight Talk 07 October 2007 verse 2 ... Cached With our country's finances stretched thin, our credit limit fast approaching, and our currency inflated to the breaking point, there is no indication yet of any urgency on the part of Congress to rein in spending. The predictable answer to the government's voracious spending habits is this week’s proposal by some Democratic Congressional leaders for tax increases to pay for operations in Iraq . Here at home, however, there are promises our seniors heavily rely upon. We must keep these promises. credit Legislative Forecast for 2008 13 January 2008    Texas Straight Talk 13 January 2008 verse 4 ... Cached This leads me to my next forecast of more federal bailouts for the housing sector. Efforts by the Federal Reserve to stave off recession will have the net effect of only blowing the bubble bigger, making the crash that much more painful when it inevitably comes. The malinvestments caused by easy credit in the housing industry will be prolonged by more easy credit. New programs and laws will be enacted to prop up housing, all with a falling dollar, devalued by continued foreign interventions. The crisis in the housing market will spread and I’m afraid we are in for some rough economic times. credit Making a Recession Great 16 March 2008    Texas Straight Talk 16 March 2008 verse 2 ... Cached House Democrats recently adopted a budget with massive tax hikes, many of which are directed at those Americans who can least afford them. By allowing the Bush tax cuts to expire in 2010, this budget will raise income taxes not only on those in the highest income brackets, but raises the lowest bracket from 10% to 15% as well. Estates would again be taxed at 55%. The child tax credit would drop from $1000 to $500. Senior citizens relying on investment income would be hurt by increases in dividend and capital gains taxes. It's not just that the Democrats want to raise taxes on the rich. They want to raise taxes on everybody. credit Bailing Out Banks 13 April 2008    Texas Straight Talk 13 April 2008 verse 4 ... Cached After the massive increase in discount window lending proved to be ineffective, the Fed became more and more creative with its funding arrangements. It has since created the Term Auction Facility (TAF), the Primary Dealer Credit Facility (PDCF), and the Term Securities Lending Facility (TSLF). The upshot of all of these new programs is that through auctions of securities or through deposits of collateral, the Fed is pushing hundreds of billions of dollars of funding into the financial system in a misguided attempt to shore up the stability of the system. credit Big Government Responsible for Housing Bubble 11 May 2008    Texas Straight Talk 11 May 2008 verse 3 ... Cached However, many in Washington fail to realize it was government intervention that brought on the current economic malaise in the first place. The Federal Reserve’s artificially low interest rates created the loose, easy credit that ignited a voracious appetite in the banks for borrowers. People made these lending and buying decisions based on market conditions that were wildly manipulated by government. But part of sound financial management should be recognizing untenable or falsified economic conditions and adjusting risk accordingly. Many banks failed to do that and are now looking to taxpayers to pick up the pieces. This is wrong-headed and unfair, but Congress is attempting to do it anyway. 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.