Home Page

Contents

U.S. Rep. Ron Paul crisis Book of Ron Paul crisis State Of The Republic 28 January 1998    1998 Ron Paul 2:59 There is a sense of relief the welfare state has received a reprieve. One can almost hear the sigh amplified by hearing of the problems in the Southeast Asia countries with their currency and stock market problems, not realizing it is the U.S. taxpayers and the dollar that will be called upon for the bailout of this financial crisis. crisis 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. crisis State Of The Republic 28 January 1998    1998 Ron Paul 2:68 After the Mexican bailout, her citizens lost 50 percent of their purchasing power, a dramatic pay cut. Yet the great danger is that some day we will be forced to pay, possibly with a dollar crisis that will make the Asian currency crisis look small in comparison. crisis State Of The Republic 28 January 1998    1998 Ron Paul 2:70 When the dollar comes under attack, since it is the reserve currency of the world, a much more serious crisis than we are currently witnessing in Asia will occur. Only a universal acceptance of a single worldwide commodity standard of money can prevent these periodic devaluations and disruptions in trade that are so prevalent today. crisis State Of The Republic 28 January 1998    1998 Ron Paul 2:71 The day before we adjourned the first session of the 105th Congress, the Committee on Banking and Financial Services held hearings on the Asian currency crisis, but it was more an attempt to reassure the financial community than to sort out the cause and do something about it. crisis State Of The Republic 28 January 1998    1998 Ron Paul 2:72 Instead, the dollar was crowned king, and Greenspan promised stability. Our real interest rates, balance of payments, our current account deficit and budgetary deficits were conveniently ignored, because if they had been looked at seriously, it would have been recognized that the U.S. and the world faces a major financial crisis once the dollar can no longer be used to bail out the world financial system. crisis State Of The Republic 28 January 1998    1998 Ron Paul 2:73 Currency issues are serious and a much bigger problem than Congress realizes. Even the Fed has convinced itself it is quite capable of managing our fiat currency and our financial markets through any crisis. The money managers are every bit as powerful as the Congress, which taxes and spends, but the Federal Reserve’s actions are much less scrutinized. crisis State Of The Republic 28 January 1998    1998 Ron Paul 2:76 Eventually, everyone though is threatened by the political disruption that can ensue with a currency mishap. Our greatest concern should be for our loss of liberties that so often accompany a currency crisis. Congressional attitude toward monetary policy is not likely to change soon, so we can expect a lot more turmoil in the currency markets in the months ahead. crisis Three Important Issues For America 11 February 1998    1998 Ron Paul 7:22 So one would expect with all this money flowing into that country that they should quickly do exactly what we want. But this Foreign Minister was rather blunt: Egypt, a key member of the Gulf War coalition, is opposed to U.S. military action in Iraq. He said, We believe that military action should be avoided and there is room for political efforts. He said, If such action is taken, there will be considerable fallout in the Arab world, he warned. He said, We are not afraid of Saddam. He added that his country believes the crisis is a result of allegations that have not been proven. Yet, we are willing to go and do such a thing as to initiate this massive bombing attack on this country, and there has been nothing proven. crisis Millennium Bug 24 February 1998    1998 Ron Paul 13:2 The General Accounting Office (GAO) has reported unfavorably on the FDIC’s readiness. Before the Subcommittee on Financial Services and Technology, Committee on Banking, Housing and Urban Affairs, US Senate, Jack L. Brock, Jr., Director, Governmentwide and Defense Information Systems, testified on February 10, 1998 (Year 2000 Computing Crisis: Federal Deposit Insurance Corporation’s Efforts to Ensure Bank’s Systems Are Year 2000 Compliant) that the Federal Deposit Insurance Corporation (FDIC) has not met its own “y2k-compliant” standards. According to GAO, the FDIC has not yet completed the assessment phase of the remediation process, despite its own standard that banks under the agency’s supervision should have completed this phase by the end of the third quarter of 1997. crisis Education In America Is Facing Crisis 22 April 1998    1998 Ron Paul 37:1 Mr. PAUL. Mr. Speaker, education in this country is facing a crisis. If we look at our schools carefully, we find out that there are a lot of drugs in our schools, actually murders occur in our schools, rape occurs in our schools, it is infested with teenage pregnancies. There is total disrespect for authority in many of our schools, and there is no good record to show that the academic progress is being made that is necessary. crisis Education In America Is Facing Crisis 22 April 1998    1998 Ron Paul 37:12 Also, I would like to mention very briefly another piece of legislation that would deal with this educational crisis. The Federal Government has been involved in our public schools for several decades. There is no evidence to show that, as we increase the funding and increase the bureaucracy, that there has been any improvement in education. Quite to the contrary, the exact opposite has happened. crisis The Bubble 28 April 1998    1998 Ron Paul 39:18 It is now commonly believed that the East Asian financial crisis is having no impact on our economy. But it’s too early to make that kind of an assessment. Our president remains popular, according to the polls, but what will it be like if there’s any sign of economic weakness? There could then be a lot of “piling on” and finger pointing. crisis The Bubble 28 April 1998    1998 Ron Paul 39:52 No one has firmly assessed the Y2K problem, but it cannot bode well if a financial crisis comes near that time. Certainly a giant company like Citicorp and Travelers, who have recently merged, could really be hurt if the Y2K problem is real. Since the markets seem to be discounting this, I have yet to make up my own mind on how serious this problem is going to be. crisis The Bubble 28 April 1998    1998 Ron Paul 39:53 WASHINGTON MENTALITY Every politician I know in Washington is awestruck by Greenspan. The article in The New Republic reflects the way many Members of Congress feel about the “success” of Greenspan over the last ten years. Add to this the fact that there is no significant understanding of the Austrian business cycle in Washington, and the likelihood of adopting a solution to the pending crisis, based on such an understanding, is remote. crisis The Bubble 28 April 1998    1998 Ron Paul 39:56 Whether it’s Japan that tries to inflate their currency to get out of an economic problem, or the East Asian countries facing their crisis, or our willingness to bail out the IMF, resorting to monetary inflation is the only option being considered. We can rest assured that inflation is here to stay. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:1 BACKGROUND Mr. PAUL. Mr. Speaker, the Soviet system, along with the Berlin Wall, came crashing down in 1989, the same year the new, never-to-end, era came to a screeching halt in Japan. The Japanese economic miracle of the 1970’s and the 1980’s, with its “guaranteed” safeguards, turned out to be a lot more vulnerable than any investor wanted to believe. Today the Nikkei stock average is still down 60% from 1989, and the Japanese banking system remains vulnerable to its debt burden, a weakening domestic economy and a growing Southeast Asian crisis spreading like a wild fire. That which started in 1989 in Japan — and possibly was hinted at even in the 1987 stock market “crash” — is now sweeping the Asian markets. The possibility of what is happening in Asia spreading next to Europe and then to America should not be summarily dismissed. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:3 The crisis in Indonesia is the predictable consequence of decades of monetary inflation. Timing, severity, and duration of the correction, is unpredictable. These depend on political perceptions, realities, subsequent economic policies, and the citizen’s subjective reaction to the ongoing events. The issue of trust in the future and concerns for personal liberties greatly influences the outcome. Even a false trust, or an ill-founded sense of security from an authoritarian leader, can alter the immediate consequences of the economic corrections, but it cannot prevent the inevitable contraction of wealth as is occurring slowly in the more peaceful Japan and rapidly and violently in Indonesia. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:4 The illusion of prosperity created by inflation, and artificially high currency values, encourage over-expansion, excessive borrowing and delusions that prosperity will last forever. This attitude was certainly present in Indonesia prior to the onset of the economic crisis in mid 1997. Even military spending by the Indonesian government was enjoying hefty increases during the 1990’s. All that has quickly ended as the country now struggles for survival. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:11 Any serious economic crisis eventually generates political turmoil, especially if political dissent has been held in check by force for any significant period of time. There should be no surprise to see the blood in the streets of Jakarta — soon to spread and build. Political events serve to aggravate and magnify the logical but subjectively sensitive declining currency values and the faltering economy. The snowballing effect makes the political crisis much more serious than the economic crisis since it distracts from the sound reforms that could restore economic growth. These circumstances, instead of leading to more freedom, invite marshal law for the purpose of restoring stability and the dangers that go with it. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:14 The U.S. has just sent a military delegation to study and obviously advise the Indonesian government regarding the law and order crisis now in process. Our officials say that we’re there to watch that the Indonesian military do not abuse the rights of Indonesian citizens. Even if true, and well motivated, where did this authority come from for us to run to the scene of the crime — on the other side of the world and pretend we have all the answers. Proper authority or not put aside, the Indonesian people perceive even a few U.S. military advisors as a further threat to them. The U.S. is seen as an extension of the IMF and is expected to more likely side with the Indonesian military than with the demonstrators. No government likes to see any dissolution of government power even the questionable ones. It might encourage others unhappy with their own government. And it is not like the U.S. government is innocent and benign, considering our recent history at Kent State, Waco, and Ruby Ridge and the hundreds of no-knock entries made in error, causing loss of life, multiple injuries and destruction of property. Let us make sure our own government acts responsibly in all matters of law and order here at home before we pretend we can save the world — a responsibility not achievable even if motivated with the best of intentions. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:15 Effort to prop up an ailing economy after the financial bubble has been popped, prolongs the agony and increases the severity of the correction. Japan’s bubble burst in 1989 and there is not yet any sign of the cleansing of the system of bad debt and mal-investment which is necessary before sound growth will resume. And Indonesia is embarking on the same predictable course. Restoration of free markets, and establishing sound monetary policy has not yet been considered. The people of Indonesia and the rest of the world should prepare for the worst as this crisis spreads. For Congress, the most important thing is to forget the notion that further taxing American workers to finance a bail-out, that won’t work, is the worst policy of all for us to pursue. crisis 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. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:18 The philosophy of the free market, holds a lot of answers, yet the difference between free market capitalism and interventionist political cronyism has not been considered by any of the world banking and political leaders currently addressing the exploding Southeast Asian crisis. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:19 Concern for personal liberty is not a subject associated with the crisis and is an ongoing casualty of past and current policy. A greater concern for individual liberty will be required if a positive outcome is to be expected from the fall-out of the Indonesian crisis. Let’s hope we can get our priorities straight. Congress has an obligation not to worsen the crisis by capitulating to more bail-outs and to remain vigilant enough to keep the administration from accomplishing the same bail-out through Executive Orders outside the law. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:20 MESSAGE What should the message be to the Congress and the American people regarding this sudden and major change in the economic climate in Indonesia? First and foremost is that since we operate with a fiat currency, as do all the countries of the world, we are not immune from a sudden and serious economic adjustment — at any time. Dollar strength and our ability to spend dollars overseas, without penalty, will not last forever. Confidence in the U.S. economy, and the dollar will one day be challenged. The severity of the repercussion is not predictable but it could be enormous. Our obligation, as Members of Congress, is to protect the value of the dollar, not to deliberately destroy it, in an attempt to prop up investors, foreign governments or foreign currencies. That policy will only lead to a greater crisis for all Americans. crisis The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:21 As the Asian crisis spreads, I would expect Europe to feel the crunch next. Unemployment is already at a 12% level in Germany and France. The events can be made worse and accelerated by outside events like a Middle Eastern crisis or a war between India and Pakistan both now rattling their nuclear weapons. Eventually though, our system of “crony capitalism” and fiat money system will come under attack. Our system of favoring industries is different than the family oriented favoritism of Suharto, but none-the-less is built on a system of corporate welfare that prompts constant lobbying of Congress and the Administration for each corporation’s special interests. We have little to talk about as we preach austerity, balanced budgets and sound money to the current victims. Our day will come when we will humble ourselves before world opinion as our house of cards comes crashing down. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:1 Mr. PAUL. Mr. Speaker, the Soviet system, along with the Berlin Wall, came crashing down in 1989, the same year the new, never-to-end, era came to a screeching halt in Japan. The Japanese economic miracle of the 1970’s and the 1980’s, with its “guaranteed” safeguards, turned out to be a lot more vulnerable than any investor wanted to believe. Today the Nikkei (Tokyo) stock average is still down 57% from 1989, and the Japanese banking system remains vulnerable to its debt burden, a weakening domestic economy and a growing East Asian crisis spreading like a wild fire. That which started in 1989 in Japan — and possibly was hinted at even in the 1987 stocke market “crash” here — is now sweeping the Asian markets. The possibility of what is happening in Asia spreading next to Europe, and then to America, should not be summarily dismissed. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:3 The crisis in Indonesia is the predictable consequence of decades of monetary inflation. Timing, severity, and duration of a correction, is unpredictable. These depend on political perceptions, realities, subsequent economic policies, and the citizen’s subjective reaction to the ongoing events. The issue of trust in the future and concerns for personal liberties greatly influence the outcome. Even a false trust, or an ill-founded sense of security from an authoritarian leader, can alter the immediate consequences of the economic corrections, but it cannot prevent the inevitable contraction of wealth as is occurring slowly in the more peaceful Japan and rapidly and violently in Indonesia. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:4 The illusion of prosperity created by inflation, and artificially high currency values, encourage over-expansion, excessive borrowing and delusions that prosperity will last forever. This attitude was certainly present in Indonesia prior to the onset of the economic crisis in mid 1997. Even military spending by the Indonesian government was enjoying hefty increases during the 1990’s. All that has quickly ended as the country now struggles for survival. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:11 Any serious economic crisis eventually generates political turmoil, especially if political dissent has been held in check by force for any significant period of time. There should be no surprise to see the discontent, with blood in the streets of Jakarta, soon spread and build. Political events serve to aggravate and magnify the logical but subjectively-sensitive declining currency values and the faltering economy. The snowballing effect makes the political crisis much more serious than the economic crisis since it distracts from the sound reforms that could restore economic growth. These circumstances, instead of leading to more freedom, invite marshal law for the purpose of restoring stability and the dangers that go with marshal law. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:14 The United States has just sent a military delegation to study and obviously advise the Indonesian government regarding the law and order crisis now in process. Our officials say that we’re there to watch that the Indonesian military does not abuse the rights of Indonesian citizens. Even if true, and well motivated, where did this authority come from for us to run to the scene of the crime — on the other side of the world — and pretend we have all the answers? Putting aside the question of whether there is proper authority or not, the Indonesian people perceive even a few U.S. military advisors as a further threat to them. The IMF is seen as an extension of the United States and is expected to more likely side with the Indonesian military that with the demonstrators. No government, even the questionable ones, likes to see any dissolution of governmental power. It might encourage others unhappy with their own government. And it is not as if the U.S. Government is innocent and benign, considering our recent history at Kent State, Waco, and Ruby Ridge and the hundreds of no-knock entries made in error, causing loss of life, multiple injuries and destruction of property. Let us make sure our own government acts responsibly in all matters of law and order here at home before we pretend we can save the world — a responsibility not achievable even if motivated with the best of intentions. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:15 Effort to prop up an ailing economy after the financial bubble has been popped, prolongs the agony and increases the severity of the correction. Japan’s bubble burst in 1989, and there is not yet any sign of the cleansing of the system of bad debt and mal-investment which is necessary before sound growth will resume. And Indonesia is embarking on the same predictable course. Restoration of free markets, including the establishment of a sound monetary policy, has not yet been considered. The people of Indonesia and the rest of the world should prepare for the worst as this crisis spreads. For Congress, the most important thing is to forget the notion that further taxing American workers to finance a bail-out will work. It won’t work — it is the worst policy of all for us to pursue. crisis 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. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:18 The philosophy of the free market holds a lot of answers — yet the difference between free market capitalism and interventionist political cronyism has not been considered by any of the world banking and political leaders currently addressing the exploding East Asian crisis. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:19 Concern for personal liberty is not a subject associated with the crisis and is an ongoing casualty of past and current policy. A greater concern for individual liberty will be required if a positive outcome is to be expected from the fall-out of the Indonesian crisis. Let’s hope we can get our priorities straight. Congress has an obligation not to worsen the crisis by capitulating to more bail-outs and to remain vigilant enough to keep the administration from accomplishing a similar bail-out through Executive Orders outside the law. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:20 MESSAGE What should the message be to the Congress and the American people regarding this sudden and major change in the economic climate in Indonesia? First and foremost is that since we operate with a fiat currency, as do almost all the countries of the world. We are not immune from a sudden and serious economic adjustment — at any time. Dollar strength and our ability to spend dollars overseas, without penalty, will not last forever. Confidence in the U.S. economy, and the dollar, will one day be challenged. The severity of the repercussion is not predictable but it could be enormous. Our obligation, as Members of Congress, is to protect the value of the dollar, not to destroy it deliberately, in an attempt to prop up investors, foreign governments or foreign currencies. That policy will only lead to a greater crisis for all Americans. crisis The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:21 As the Asian crisis spreads, I would expect Europe to feel the crunch next. Unemployment is already at or approaching 12% in Germany and France. The events can be made worse and accelerated by outside events like a Middle Eastern crisis or a war between India and Pakistan both now rattling their nuclear sabers. Eventually though, our system of “crony capitalism” and fiat money system will come under attack. Our system of favoring industries is different than the family-oriented favoritism of Suharto, but none-the-less is built on a system of corporate welfare that prompts constant lobbying of Congress and the Administration for each corporation’s special interests. We have little room to talk as we preach austerity, balanced budgets and sound money to the current victims. Our day will come when we will humble ourselves before world opinion as our house of cards comes crashing down. crisis Every Currency Crumbles 24 June 1998    1998 Ron Paul 65:7 It cannot undergird confidence that the monetary fires are becoming six- and seven-alarmers. Writing in 1993 about the crisis of the European Rate Mechanism (in which George Soros bested the Bank of England by correcting anticipating a devaluation of the pound), a central bankers’ organization commented: “Despite its geographical confinement to Europe, it is probably no exaggeration to say that the period from late 1991 to early 1993 witnessed the most severe and widespread foreign exchange market crisis since the breakdown of the Bretton Woods System 20 years ago.” But the European crisis has been handily eclipsed by the Asian one. crisis Every Currency Crumbles 24 June 1998    1998 Ron Paul 65:15 And no degree of excellence can forestall a new monetary crisis indefinitely. Some monetary systems are better than others, and some last longer than others, but each and every one comes a cropper. The bezant, the standard gold coin of the Byzantine empire, was minted for 800 years at the same weight and fineness. The gold may still be in existence (in fact — no small recommendation for gold bullion — it probably is), but the empire has fallen. crisis 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. crisis 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. crisis Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:7 A crisis brought on by monetary inflation cannot be aborted by more monetary inflation or the IMF bailouts favored by the American taxpayer. It may at times delay the inevitable, but eventually, the market will demand liquidation of the malinvestment, excessive debt, and correction of speculative high prices as we have seen in the financial markets. crisis Head Start Program 14 September 1998    1998 Ron Paul 99:6 Congress should also reject S. 2206 because it reauthorizes the Low Income Heating and Energy Program (LIHEAP). LIHEAP is an unconstitutional transfer program which has outlived its usefulness. LIHEAP was instituted in order to help low-income people deal with the high prices resulting from the energy crisis of the late seventies. However, since then, home heating prices have declined by 51.6% residential electricity prices have declined by 25% and residential natural gas prices have declined by 32.7%. Furthermore, the people of Texas are sending approximately $43 million more taxpayer dollars to Washington for LIHEAP than they are receiving in LIHEAP funds. There is no moral or constitutional justification for taking money from Texans, who could use those funds for state and local programs to provide low-income Texans with relief from oppressive heat, to benefit people in other states. crisis 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. crisis Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:6 On September 18th, the New York Times, and this is the third time that that has come about in the last several weeks, the New York Times editorialized about why we needed a worldwide Federal Reserve system to bail out the countries involved in this financial crisis. crisis World Financial Markets 1 October 1998    1998 Ron Paul 104:10 No amount of regulation could have prevented or in the future prevent the inevitable mistakes made in an economy that is misled by rigged interest rates or a money supply dictated by central planners in a fiat money system. Hedge fund operations, because they are international in scope, are impossible to regulate and for the current ongoing crisis it is too late anyway. crisis New Global Economic Plan 9 October 1998    1998 Ron Paul 117:1 Mr. PAUL. Global leaders are scurrying around to put together, as quickly as possible, a new plan to solve the international financial crisis. crisis New Global Economic Plan 9 October 1998    1998 Ron Paul 117:13 Free markets and stable money should be our goal, not further institutionalizing of world economic planning and fiat money at the sacrifice of personal liberty. Indeed, we need a serious discussion of the current crisis but so far no one should be encouraged by the direction in which the Group of 22 is going. Our responsibility here in the Congress is to protect the dollar, not to sit idly by as it’s being deliberately devalued. crisis Monetary Policy 16 October 1998    1998 Ron Paul 120:1 Mr. PAUL. Mr. Speaker, a world-wide financial crisis is now upon us. crisis Monetary Policy 16 October 1998    1998 Ron Paul 120:4 A world-wide system of fiat money is the root of the crisis. The post-World War II Bretton Woods gold-exchange system was seriously flawed, and free market economists from the start predicted its demise. Twenty-seven years later, on August 15, 1971, it ended with a bang ushering in its turbulent and commodity-driven inflation of the 1970’s. crisis 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. crisis Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:86 There is good reason why we in the Congress should be concerned. A dollar crisis is an economic crisis that will threaten the standard of living of many Americans. Economic crises frequently lead to political crises, as is occurring in Indonesia. crisis Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:89 It is easy to see why Congress, with its own insatiable desire to spend money and perpetuate a welfare and military state, cooperates with such a system. A national debt of $5.6 trillion could not have developed without a willing Federal Reserve to monetize this debt and provide for artificially low interest rates. But when the dollar crisis hits and it is clearly evident that the short-term benefits were not worth it, we will be forced to consider monetary reform. crisis Crisis in Kosovo 14 April 1999    1999 Ron Paul 25:1 Mr. PAUL. Mr. Speaker, I rise this evening to address the crisis that is ongoing now in Yugoslavia. For a war to be moral, we must have a reason to go in. National defense is a moral justification. If we are attacked, it is a moral war. Getting involved in any other kind of war is not considered to be moral. crisis U.S. Foreign Policy and NATO’s Involvement in Yugoslavia and Kosovo 21 April 1999    1999 Ron Paul 29:20 Instead of being lucky enough on occasions to pick the right side of a conflict, we instead end up supporting both sides of nearly every conflict. In the 1980s, we helped arm, and allied ourselves with, the Iraqis against Iran. Also in the 1980s we supported the Afghan freedom fighters, which included Osama Bin Laden. Even in the current crisis in Yugoslavia, we have found ourselves on both sides. crisis What We Would Be Doing By Amending The Constitution To Make It Illegal To Desecrate The American Flag 22 June 1999    1999 Ron Paul 63:8 We have existed now for 212 years since the passage of our Constitution, and we have not had laws like this, but all of a sudden we feel compelled. What is the compulsion? Do we see on the nightly news Americans defying our flag and defying our principles of liberty? I cannot recall the last time I saw on television an American citizen burning an American flag or desecrating our flag. So all of a sudden now we decide it is a crisis of such magnitude that we have to amend the Constitution; at the same time, challenging the principles of freedom of expression. crisis Exchange Stabilization Fund 15 July 1999    1999 Ron Paul 76:8 So, yes, we tide Mexico over for a year or two, but what are we going to say next year when there is another peso crisis? Are we going to close our eyes and say we will do whatever we want, it is a major crisis? Our obligation here in the Congress is to have a sound dollar, not to dilute the value of the dollar without our permission and for our President and our Treasury Department and the IMF and the World Bank and the internationalists to destroy the value of the dollar. That is not permissible under the rule of law, and yet we have casually permitted this to happen and we do not even ask the serious questions. crisis Health Care Reform: Treat The Cause, Not The Symptom 4 October 1999    1999 Ron Paul 103:18 Excessive litigation has significantly contributed to the ongoing medical care crisis. Greedy trial lawyers are certainly part of problem but there is more to it than that. Our legislative bodies throughout the country are greatly influenced by trial lawyers and this has been significant. But nevertheless people do sue, and juries make awards that qualify as “cruel and unusual punishment” for some who were barely involved in the care of the patient now suing. The welfare ethic of “something for nothing” developed over the past 30 to 40 years has played a role in this serious problem. This has allowed judges and juries to sympathize with unfortunate outcomes, not related to malpractice and to place the responsibility on those most able to pay rather than on the ones most responsible. This distorted view of dispensing justice must someday be addressed or it will continue to contribute to the deterioration of medical care. Difficult medical cases will not be undertaken if outcome is the only determining factor in deciding lawsuits. Federal legislation prohibiting state tort law reform cannot be the answer. Certainly contractual arrangements between patients and doctors allowing specified damage clauses and agreeing on arbitration panels would be a big help. State-level “loser pays” laws, which discourage frivolous and nuisance lawsuits, would also be a help. crisis Health Care Reform: Treat The Cause, Not The Symptom 4 October 1999    1999 Ron Paul 103:22 Instead of the continual demagoguery of the issue for political benefits on both sides of the debate, we ought to consider getting rid of the laws that created this medical management crisis. crisis Health Care Reform: Treat The Cause, Not The Symptom 4 October 1999    1999 Ron Paul 103:23 The ERISA law requiring businesses to provide particular programs for their employees should be repealed. The tax codes should give equal tax treatment to everyone whether working for a large corporation, small business, or is self employed. Standards should be set by insurance companies, doctors, patients, and HMOs working out differences through voluntary contracts. For years it was known that some insurance policies excluded certain care and this was known up front and was considered an acceptable provision since it allowed certain patients to receive discounts. The federal government should defer to state governments to deal with the litigation crisis and the need for contract legislation between patients and medical providers. Health care providers should be free to combine their efforts to negotiate effectively with HMOs and insurance companies without running afoul of federal anti-trust laws — or being subject to regulation by the National Labor Relations Board (NLRB). Congress should also remove all federally-imposed roadblocks to making pharmaceuticals available to physicians and patients. Government regulations are a major reason why many Americans find it difficult to afford prescription medicines. It is time to end the days when Americans suffer because the Food and Drug Administration (FDA) prevented them from getting access to medicines that where available and affordable in other parts of the world! crisis Quality Care For The Uninsured Act 6 October 1999    1999 Ron Paul 104:14 Excessive litigation has significantly contributed to the ongoing medical care crisis. Greedy trial lawyers are certainly part of the problem but there is more to it than that. Our legislative bodies throughout the country are greatly influenced by trial lawyers and this has been significant. But nevertheless people do sue, and juries make awards that qualify as “cruel and unusual punishment” for some who were barely involved in the care of the patient now suing. The welfare ethic of “something for nothing” developed over the past 30 to 40 years has played a role in this serious problem. This has allowed judges and juries to sympathize with unfortunate outcomes not related to malpractice and to place the responsibility on those most able to pay rather than on the ones most responsible. This distorted view of dispensing justice must someday be addressed or it will continue to contribute to the deterioration of medical care. Difficult medical cases will not be undertaken if outcome is the only determining factor in deciding lawsuits. Federal legislation prohibiting state tort law reform cannot be the answer. Certainly contractual arrangements between patients and doctors allowing specified damage clauses and agreeing on arbitration panels would be a big help. State-level “loser pays” laws, which discourage frivolous and nuisance lawsuits, would also be a help. crisis Quality Care For The Uninsured Act 6 October 1999    1999 Ron Paul 104:18 Instead of the continual demagoguery of the issue for political benefits on both sides of the debate, we ought to consider getting rid of the laws that created this medical management crisis. crisis Quality Care For The Uninsured Act 6 October 1999    1999 Ron Paul 104:19 The ERISA laws requiring businesses to provide particular programs for their employees should be repealed. The tax codes should give equal tax treatment to everyone whether working for a large corporation, small business, or is self employed. Standards should be set by insurance companies, doctors, patients, and HMOs working out differences through voluntary contracts. For years it was known that some insurance policies excluded certain care and this was known up front and was considered an acceptable provision since it allowed certain patients to receive discounts. The federal government should defer to state governments to deal with the litigation crisis and the need for contract legislation between patients and medical providers. Health care providers should be free to combine their efforts to negotiate effectively with HMOs and insurance companies without running afoul of federal anti-trust laws — or being subject to regulation by the National Labor Relations Board (NLRB). Congress should also remove all federally-imposed roadblocks to making pharmaceuticals available to physicians and patients. Government regulations are a major reason why many Americans find it difficult to afford prescription medicines. It is time to end the days when Americans suffer because the Food and Drug Administration (FDA) prevented them from getting access to medicines that were available and affordable in other parts of the world! crisis A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:77 Many Americans agree that this country is facing a moral crisis that has been especially manifested in the closing decade of the 21st century. Our President’s personal conduct, the characters of our politicians in general, the caliber of the arts, movies, and television, and our legal system have reflected this crisis. crisis 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. crisis WHAT IS FREE TRADE? May 2, 2000    2000 Ron Paul 29:46 Well, since that time we have had a peso crisis in Mexico and we had a crisis with currencies in Southeast Asia. So I would say that the management of finances with the IMF as well as the World Trade Organization has been very unsuccessful, and even if one does not accept my constitutional argument that we should not be doing this, we should at least consider the fact that what we are doing is not very successful. crisis The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:3 * When trade imbalances are not corrected, sudden devaluations, higher interest rates, and domestic inflation are forced on the country that has most abused its monetary power. This was seen in 1997 in the Asian crisis, and precarious economic conditions continue in that region. crisis The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:8 * Japan’s lethargy, the Asian crisis, the Mexican financial crisis, Europe’s weakness, the uncertainty surrounding the EURO, the demise of the Soviet system, and the ineptness of the Russian bailout, all contributed to the continued strength in the dollar and prolongation of our current account deficit. This current account deficit, which prompts foreigners to loan back dollars to us and to invest in our stock and bond markets, has contributed significantly to the financial bubble. The perception that the United States is the economic and military powerhouse of the world, helps perpetuate an illusion that the dollar is invincible and has encouraged our inflationary policies. crisis The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:13 * Fiscal policy, and current monetary policy will not solve the crisis we will soon face. Only sound money, money that cannot be created out of thin air, can solve the many problems appearing on the horizon. The sooner we pay attention to monetary policy as the source of our international financial problems, the sooner we will come up with a sound solution. crisis INTERNATIONAL TRADE May 23, 2000    2000 Ron Paul 39:4 For the past decade, with sharp adjustments in currency values such as occurred during the Asian financial crisis, the dollar and the U.S. consumers benefitted. But these benefits will prove short-lived, since the unprecedented prosperity and consumption has been achieved with money that we borrow from abroad. crisis INTERNATIONAL TRADE May 23, 2000    2000 Ron Paul 39:6 The Federal Reserve believes that prosperity causes high prices and rising wages, thus causing it to declare war on a symptom of its own inflationary policy, deliberately forcing an economic slowdown, a sad and silly policy, indeed. The Fed also hopes that higher interest rates will curtail the burgeoning trade deficit and prevent the serious currency crisis that usually results from currency-induced trade imbalances. And of course, the Fed hopes to do all this without a recession or depression. crisis INTERNATIONAL TRADE May 23, 2000    2000 Ron Paul 39:8 But instead, I suggest we look more carefully for the cause of the coming currency crisis. We should study the nature of all the world currencies and the mischief that fiat money causes, and resist the temptation to rely on the WTO, the IMF, the World Bank, pseudo free trade, to solve the problems that only serious currency reform can address. crisis WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY October 12, 2000    2000 Ron Paul 86:15 Where did we borrow from? We borrowed from overseas. We have a current account deficit that requires over a billion dollars a day that we borrow from foreigners just to finance our current account deficit. We are now the greatest debtor in the world, and that is a problem. This is why the markets are shaky, and this is why the markets have been going down for 6 months, and this is why in a foreign policy crisis such as we are facing in the Middle East, we will accentuate these problems. Therefore, the foreign policy of military interventionism overseas is something that we should seriously question. crisis ECONOMIC PROBLEMS AHEAD November 13, 2000    2000 Ron Paul 93:9 * Rising interest rates in the high yield bond market is giving us an indication that a serious problem is just around the bend. Commercial debt was but $50 billion in 1994 and is now ten times higher now at $551 billion. The money supply is now growing at greater than a 10% rate and the derivatives market, although difficult to calculate, probably exceeds $75 trillion. We also have consumer debt, which is at record highs and has not yet shown signs of slowing. The Dow Jones Industrial Average stocks are now 5 times book value, the highest in over a hundred years. There will come a day when most people come to realize the fraud associated with Social Security and the inability for it to continue as currently managed. Rising oil and natural gas prices, it is argued, are not inflationary, yet they are playing havoc with the pocketbooks of most Americans. The economies of Asia, and in particular Japan, will not offer any assistance in dealing with the approaching storm in this country. Our foreign policy, which continues to obligate our support around the world, shows no signs of changing and will contribute to the crisis and possibly our bankruptcy. crisis OUR FOOLISH WAR IN THE MIDDLE EAST November 15, 2000    2000 Ron Paul 95:13 * The turmoil in the Middle East is now spilling over into Indonesia, a country made up of 17,000 islands and very vulnerable to political instability, especially since its currency and financial crisis of a few years ago. Indonesia is the world’s fourth largest nation, with the largest Muslim population of any country. Hatred toward the West, and especially America, due to the Middle East policy, has led to Christian persecution in Indonesia. The embassy is now closed, and American ambassador Robert Gelbard has been recalled after his life was threatened. crisis ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:25 * A short time after Chairman Greenspan took over the reigns of the Federal Reserve the stock market crash of 1987 prompted him to alleviate concerns with a heavy dose of monetary inflation. Once again, in the slump of 1991 and 1992, he again re-ignited the financial bubble by more monetary inflation. There was no hesitation on Mr. Greenspan’s part to inflate as necessary to alleviate the conditions brought about by the Mexican financial crisis, the Asian crisis, the Russian ruble crisis, and with the Long-Term Capital Management crisis. Just one year ago the non-existent Y2K crisis prompted huge, unprecedented monetary inflation by the Federal Reserve. All these efforts kept interest rates below the market rate and contributed to the financial bubble that is now starting to deflate. But, there is no doubt that this monetary inflation did maintain an economy that seemed like it would never quit growing. Housing markets thrived, the stock market and bond market thrived, and in turn, the great profits made in these areas, especially gains made by stock market transactions, produced profits that inflated greatly the revenues that flowed into the Treasury. The serious problem that we now face, a collapsing stock market and a rapidly weakening economy, was caused by inflating the money supply along with artificially low interest rates. More inflation and continuing the policy of artificially low interest rates can’t possibly be the solution to the dilemma we face. crisis ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:29 * The question is what should one expect the Federal Reserve Board to eventually do? We can expect it to continue to inflate as they have always chosen with every crisis. There’s no evidence that Alan Greenspan would choose to do anything else regardless of his expression of concern about inflation and the value of the dollar. Greenspan still believes he can control the pain and produce a weakened economy that will not get out of control. But there’s no way that he can guarantee that the United States might not slip into a prolonged lethargy, similar to what Japan is now experiencing. We can be certain that Congress will accommodate with whatever seems to be necessary by bailing out a weakened financial sector. crisis ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:33 * A major financial crisis is possible since the dollar is the reserve currency of the world, held in central banks as if it were gold itself. The current account deficit for the United States continues to deteriorate, warning us of danger ahead. Our foreign debt of $1.7 trillion continues to grow rapidly and it will eventually have to be paid. crisis CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:26 If we are truly taking a more dangerous course, the biggest question is: How long will it be before a major political-economic crisis engulfs our land? That, of course, is not known, and certainly not necessary if we as a people and especially the Congress understand the nature of the crisis and do something to prevent the crisis from undermining our liberties. We should, instead, encourage prosperity by avoiding any international conflict that threatens our safety or wastefully consumes our needed resources. crisis CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:46 There’s good reason to believe the Congress and the American people ought to be concerned and start preparing for a slump that could play havoc with our federal budget and the value of the American dollar. Certainly the Congress has a profound responsibility in this area. If we ignore the problems, or continue to endorse the economic myths of past generations, our prosperity will be threatened. But our liberties could be lost, as well, if expanding the government’s role in the economy is pursued as the only solution to the crisis. crisis CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:50 This is true, even to this day. The dollar still represents approximately 77% of all world central-bank reserves. This means that the United States has license to steal. We print the money and spend it overseas, while world trust continues because of our dominant economic and military power. This results in a current account and trade deficit so large that almost all economists agree that it cannot last. The longer and more extensive the distortions in the international market, the greater will be the crisis when the market dictates a correction. And that’s what we’re starting to see. crisis CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:58 The mantra now is for the FED to quickly lower short-term interest rates to stimulate the economy and alleviate a liquidity crisis. This policy may stimulate a boom and may help in a mild downturn, but it doesn’t always work in a bad recession. It actually could do great harm since it could weaken the dollar, which in turn would allow market forces instead to push long-term interest rates higher. Deliberately lowering interest rates isn’t even necessary for the dollar to drop, since our policy has led to a current-account deficit of a magnitude that demands the dollar eventually readjust and weaken. crisis CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:99 It will be difficult to separate any involvement in the Balkans from a major conflict that breaks out in the Middle East. It’s impossible for us to maintain a policy that both supports Israel and provides security for Western-leaning secular Arab leaders, while at the same time taunting the Islamic fundamentalists. Push will come to shove, and when that happens in the midst of an economic crisis, our resources will be stretched beyond the limit. This must be prevented. crisis POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:30 It will be difficult to separate any involvement in the Balkans from a major conflict that breaks out in the Middle East. It is impossible for us to maintain a policy that both supports Israel and provides security for western-leaning secular Arab leaders, while at the same time taunting the Islamic fundamentalists. Push will come to shove, and when that happens in the midst of an economic crisis, our resources will be stretched beyond the limit. This must be prevented. crisis Blame Congress for HMOs February 27, 2001    2001 Ron Paul 15:16 Advocates of universal coverage saw this financial crisis as an opportunity to advance crisis Blame Congress for HMOs February 27, 2001    2001 Ron Paul 15:17 Senator Edward M. Kennedy, a longtime advocate of national health care, proceeded to hold three months of extensive hearings in 1971 on what was termed the “Health Care Crisis in America.” Following these hearings, he held a series of hearing “on the whole question of HMO’s.” crisis Blame Congress for HMOs February 27, 2001    2001 Ron Paul 15:18 Introducing the HMO hearings, Kennedy said, “We need legislation which reorganizes the system to guarantee a sufficient volume of high quality medical care, distributed equitably across the country and available at reasonable cost to every American. It is going to take a drastic overhaul of our entire way of doing business in the health-care field in order to solve the financing and organizational aspects of our health crisis. One aspect of that solution is the creation of comprehensive systems of health-care delivery.” crisis The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:10 But the artificial nature of today’s world trade and finance being systematically managed by the IMF, the World Bank and WTO, and driven by a worldwide fiat monetary system, has produced imbalances that have already prompted many sudden adjustments. There have been eight major crisis in the past six years requiring a worldwide effort, led by the Fed, to keep the system afloat, all being done with more monetary inflation and bailouts. crisis 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. crisis A New China Policy April 25, 2001    2001 Ron Paul 25:2 This confrontation, however, provides an excellent opportunity for us to reevaluate our policy toward China and other nations. Although trade with China, for economic reasons, encouraged both America and China to work for a resolution of the spy plane crisis, our trading status with China should be reconsidered. What today is called free trade is not exactly that. Although we engage in trade with China, it is subsidized to the tune of many billions of dollars through the Export/Import Bank- the most of any country in the world. crisis A New China Policy April 25, 2001    2001 Ron Paul 25:10 We must continue to believe and be confident that trading with China is beneficial to America. Trade between Taiwan and China already exists and should be encouraged. It’s a fact that trade did help to resolve this current crisis without a military confrontation. crisis A New China Policy April 25, 2001    2001 Ron Paul 25:15 When we follow only a military approach without trading in our dealings with foreign nations, and in particular with China, we end up at war, such as we did in the Korean War. Today, we are following a policy where we have less military confrontation with the Chinese and more trade, so relations are much better. A crisis like we have just gone through is more likely to be peacefully resolved to the benefit of both sides. But what we need is even less military involvement, with no military technology going to China and no military weapons going to Taiwan. We have a precise interest in increasing true free trade; that is, trade that is not subsidized nor managed by some world government organization like the WTO. Maintaining peace would then be much easier. crisis A New China Policy April 25, 2001    2001 Ron Paul 25:17 During the Cuban missile crisis a resolution was achieved under very dangerous circumstances. Quietly, President Kennedy had agreed to remove the missiles from Turkey that were pointed at the Soviets, making the point that American missiles on the Soviet borders was not unlike the Soviets missiles on the American borders. A few months later, quietly, the United States removed these missiles, and no one suffered. The Cold War was eventually won by the United States, but our national security was not threatened by the removal of those missiles. crisis Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:9 Now, if the deal is successful and there is no economic calamity in the country where we go and there is no political crisis, then who makes the profits? Corporations make the profits. It is the best deal going for large corporations. crisis Patients’ Bill Of Rights 2 August 2001    2001 Ron Paul 74:15 Instead of this phony argument between those who believe their form of nationalized medicine is best for patients and those whose only objection to nationalized medicine is its effect on entrenched corporate interests, we ought to consider getting rid of the laws that created this medical management crisis. The ERISA law requiring businesses to provide particular programs for their employees should be repealed. The tax codes should give equal tax treatment to everyone whether working for a large corporation, small business, or self employed. Standards should be set by insurance companies, doctors, patients, and HMOs working out differences through voluntary contracts. For years it was known that some insurance policies excluded certain care. This was known up front and was considered an acceptable practice since it allowed certain patients to receive discounts. The federal government should defer to state governments to deal with the litigation crisis and the need for contract legislation between patients and medical providers. Health care providers should be free to combine their efforts to negotiate effectively with HMOs and insurance companies without running afoul of federal anti-trust laws — or being subject to regulation by the National Labor Relations Board (NLRB). crisis The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:5 The people of the United States, including the US Congress, are far too complacent about the seriousness of the current economic crisis. They remain oblivious to the significance of the US dollar’s fiat status. Discussions about the dollar are usually limited to the question of whether the dollar is now too strong or too weak. When money is defined as a precise weight of a precious metal, this type of discussion doesn’t exist. The only thing that matters under that circumstance is whether an honest government will maintain convertibility. crisis The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:13 But if the Fed and its chairman, Alan Greenspan, have been able to guide us out of every potential crisis all the way back to the stock market crash of 1987, why shouldn’t we expect the same to happen once again? Mainly because there’s a limit to how long the monetary charade can be perpetuated. Now it looks like the international financial system built on paper money is coming to an end. crisis The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:22 The next recession, from which I’m sure we’re already suffering, will be even more pervasive worldwide than the one in the 1930s due to the artificial nature of modern globalism, with world paper money and international agencies deeply involved in the economy of every nation. We have witnessed the current and recent bailouts in Mexico, Argentina, Brazil, Turkey and the Far East. While resisting the market’s tendency for correction, faith in government deficits and belief in paper money inflation will surely prolong the coming worldwide crisis. crisis 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. crisis The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:32 A major problem still remains. Ultimately the market determines all value including all currencies. With the current direction of the dollar certainly downward, the day of reckoning is fast approaching. A weak dollar will prompt dumping of GSE securities before treasuries, despite the Treasury’s and the Fed’s attempt to equate them with government securities. This will threaten the whole GSE system of finance, because the challenge to the dollar and the GSEs will hit just when the housing market turns down and defaults rise. Also a major accident can occur in the derivatives markets where Fannie Mae and Freddie Mac are deeply involved in hedging their interest-rate bets. Rising interest rates that are inherent with a weak currency will worsen the crisis. crisis The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:33 The weakening dollar will usher in an age of challenge to the whole worldwide financial system. The dollar has been the linchpin of economic activity, and a severe downturn in its value will not go unnoticed and will compound the already weakening economies of the world. More monetary inflation, even if it’s a concerted worldwide effort, cannot solve the approaching crisis. The coming crisis will result from fiat money and monetary inflation; therefore, more of the same cannot be the solution. crisis The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:44 If, heaven forbid, the economy sinks as low and for as long as many free market economists believe, what policy changes must we consider? Certainly the number one change ought to be to reject the ideas that created the crisis. But rejecting old ways that Congress and the people are addicted to is not easy. Many people believe that government programs are free. The clamor for low interest rates, (more monetary inflation) by virtually all public officials and prominent business and banking leaders is endless. And, the expectation for government to do something for every economic malady-even if ill-advised government policy has created the problem-drives this seductive system of centralized planning that ultimately undermines prosperity. A realization that we cannot continue our old ways may well be upon us, and, the inflating, taxing, regulating, and centralized planning programs of the last thirty years must come to an end. crisis Defense Production Act 10 September 2001    2001 Ron Paul 76:2 This bill’s entire existence rests on the presumption that its supporters have absolutely no confidence whatsoever in either freedom or the market process. In a time of crisis, you don’t need an “industrial policy” and you don’t need some fascist or corporatist variety of socialism. What one needs more than ever in a time of crisis is the market — deviation from the market process is the worst thing an economy can do. Oftentimes, it’s the “industrial policy” which is the very cause of the economic crisis one hopes to remedy with yet another round of “industrial policy” intervention. crisis Defense Production Act 10 September 2001    2001 Ron Paul 76:3 We have an energy crisis in California created by the bureaucrats and the politicians. As prices skyrocket and a crisis is declared, it is later said that prices are now down and there’s less of a shortage or crisis. But it’s the market process that worked because the prices skyrocketed rather than skyrocketing prices becoming the justification for abandoning the market process. crisis Statement on the New York City and Washington, DC Terrorist Attacks September 12, 2001    2001 Ron Paul 78:9 We must all pray for peace and ask for God’s guidance for our President, our congressional leaders, and all America- and for the wisdom and determination required to resolve this devastating crisis. crisis Statement on the Congressional Authorization of the Use of Force September 14, 2001    2001 Ron Paul 79:8 Too often over the last several decades we have supported both sides of many wars only to find ourselves needlessly entrenched in conflicts unrelated to our national security. It is not unheard of that the weapons and support we send to foreign nations have ended up being used against us. The current crisis may well be another example of such a mishap. crisis Statement on the Congressional Authorization of the Use of Force September 14, 2001    2001 Ron Paul 79:11 Mr. Speaker we must rally behind our president, pray for him to make wise decisions, and hope that this crisis is resolved a lot sooner than is now anticipated. crisis Foreign Interventionism September 25, 2001    2001 Ron Paul 80:4 Mr. Speaker, I returned to Congress 5 years ago out of deep concern about our foreign policy of international interventionism, and a monetary and fiscal policy I believed would lead to a financial and dollar crisis. Over the past 5 years I have frequently expressed my views on these issues and why I believed our policies should be changed. crisis Foreign Interventionism September 25, 2001    2001 Ron Paul 80:5 This deep concern prompted me to seek and receive seats on the Financial Services and International Relations Committees. I sought to thwart some of the dangers I saw coming, but as the horrific attacks show, these efforts were to no avail. As concerned as I was, the enormity of the two-prong crisis that we now face came with a ferocity no one ever wanted to imagine. But now we must deal with what we have and do our best to restore our country to a more normal status. crisis Foreign Interventionism September 25, 2001    2001 Ron Paul 80:6 I do not believe this can happen if we ignore the truth. We cannot close our eyes to the recent history that has brought us to this international crisis. We should guard against emotionally driven demands to kill many bystanders in an effort to liquidate our enemy. These efforts could well fail to punish the perpetrators while only expanding the war and making things worse by killing innocent non-combatants and further radicalizing Muslim peoples. crisis Foreign Interventionism September 25, 2001    2001 Ron Paul 80:15 When the conflict broke out between Iraq and Iran in the early 1980s and we helped to finance and arm Iraq, Anwar Sadat of Egypt profoundly stated: “This is the beginning of the war for oil.” Our crisis today is part of this long lasting war over oil. crisis Foreign Interventionism September 25, 2001    2001 Ron Paul 80:33 Today, we have a new type of deadly piracy, in the high sky over our country. The solution the founders came up with under these circumstances was for Congress to grant letters of marque and reprisal. This puts the responsibility in the hands of Congress to direct the President to perform a task with permission to use and reward private sources to carry out the task, such as the elimination of Osama bin Laden and his key supporters. This allows narrow targeting of the enemy. This effort would not preclude the president’s other efforts to resolve the crisis, but if successful would preclude a foolish invasion of a remote country with a forbidding terrain like Afghanistan- a country that no foreign power has ever conquered throughout all of history. crisis Foreign Interventionism September 25, 2001    2001 Ron Paul 80:42 As we search for a solution to the mess we’re in, it behooves us to look at how John F. Kennedy handled the Cuban missile crisis in 1962. Personally, that crisis led to a 5-year tour in the US Air Force for me. crisis Foreign Interventionism September 25, 2001    2001 Ron Paul 80:43 As horrible and dangerous as the present crisis is, those of us that held our breath during some very tense moments that October realized that we were on the brink of a world-wide nuclear holocaust. That crisis represented the greatest potential danger to the world in all of human history. crisis Foreign Interventionism September 25, 2001    2001 Ron Paul 80:46 Wisdom and caution on Kennedy’s part in dealing with the crisis was indeed “a profile in courage.” But his courage was not only in his standing up to the Soviets, but his willingness to re-examine our nuclear missile presence in Turkey, which if it had been known at the time would have been condemned as an act of cowardice. crisis Counter-Terrorism and Homeland Security October 9, 2001    2001 Ron Paul 82:10 This is a crucial time in our history. Our policy of foreign interventionism has contributed to this international crisis. How we define our enemies will determine how long we fight and when the war is over. The expense will be worth it if we make the right decisions. Targeting the forces of bin Laden makes sense, but invading 8 to 10 countries without a precise goal will prove to be a policy of folly. Indefinite war, growing in size and cost in terms of dollars and lives, is something for which most Americans will eventually grow weary. Our prayers are with our president, and we hope that he continues to use wise judgment in accomplishing this difficult task- something that he has accomplished remarkably well under very difficult circumstances. crisis Statement on International Relations committee hearing featuring Secretary of State Colin Powell October 17, 2001    2001 Ron Paul 89:7 Our interventionist policies have not only made enemies around the globe. Our own troops are spread so thin defending foreign peoples and foreign lands, that when a crisis hit our own shores we were forced to bring in foreign AWACs surveillance planes to defend our country. That, more than anything else, underscores the folly of our interventionist foreign policy: our own defense establishment is unable to protect our citizens because it is too busy defending foreign lands. We must focus our efforts on capturing and punishing those who committed this outrageous act against the United States. Then, if we are to be truly safe, we need a national debate on our foreign policy; we need to look at interventionism and the enmity it produces. We need to return to the sadly long-lost policy of peaceful commerce and normal relations with all nations and entangling alliances with none. crisis A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:15 Countless groups are now descending on Washington with their hands out. As usual with any disaster, this disaster is being parlayed into an “opportunity,” as one former Member of the Congress phrased it. The economic crisis that started a long time before 9-11 has contributed to the number of those now demanding Federal handouts. crisis A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:31 Changing our current foreign policy with wise diplomacy is crucial if we are to really win the war and restore the sense of tranquility to our land that now seems to be so far in our distant past. Our widespread efforts at peacekeeping and nation-building will only contribute to the resentment that drives the fanatics. Devotion to internationalism and a one-world government only exacerbates regional rivalries. Denying that our economic interests drive so much of what the West does against the East impedes any efforts to diffuse the world crisis that already has a number of Americans demanding nuclear bombs to be used to achieve victory. A victory based on this type of aggressive policy would be a hollow victory indeed. crisis Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:2 Fiat money is paper money that gets its value from a government edict and compulsory legal tender laws. Honest money, something of real value, like a precious metal, gets its value from the market and through voluntary exchange. The world today is awash in fiat money like never before, and we face a financial crisis like never before, conceived many decades before the 9–11 crisis hit. crisis Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:4 Japan, failing to understand this, has tried for more than a decade to stimulate her economy and boost her stock market by printing money and increasing government spending, and it has not worked. Argentina, even with the hopes placed in its currency board, is nevertheless facing default on its foreign debt and a crisis in confidence. More bailouts from the IMF and U.S. dollar may temper the crisis for a while, but ultimately it will only hurt the dollar and the U.S. taxpayers. crisis Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:5 We cannot continually bail out others with expansion of the dollar money supply, as we have with the crisis in Turkey, Argentina, and the countries of Southeast Asia. This policy has its limits, and confidence in the dollar is the determining factor. Even though, up until now, confidence has reigned, encouraged by our political and economic strength, this era is coming to an end. Our homeland has been attacked, our enemies are not easily subdued, our commitments abroad are unsustainable, and our economy is fast slipping into chaos. crisis 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. crisis Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:11 Mr. Speaker, a dollar crisis is quickly approaching. We should prepare ourselves. crisis Expansion of NATO is a Bad Idea November 7, 2001    2001 Ron Paul 95:10 We have this debate now mainly because we have had the demise of the Soviet system, and there is a question on what the role of NATO should be and what the role of NATO really is. It seems that NATO is out in search of a dragon to slay. It appeared that way during the Kosovo and Serbian crisis, where it was decided that NATO would go in and start the bombing in order to help the Kosovars and to undermine the Government of Serbia. But our own rules under NATO say that we should never attack a country that has not attacked a member nation. So this was sort of stretching it by a long shot in order to get us involved. I think that does have unintended consequences, because it turns out that we supported Muslims, the KLA, in Kosovo who were actually allies of Osama bin Laden. These things in some ways come back to haunt us, and I see this as an unintended consequence that we should be very much aware of. crisis Expansion of NATO is a Bad Idea November 7, 2001    2001 Ron Paul 95:11 But overall I oppose this because I support a position of a foreign policy of noninterventionism, foreign noninterventionism out of interest of the United States. I know the other side of the argument, that United States interests are best protected by foreign intervention and many, many entangling alliances. I disagree with that because I think what eventually happens is that a country like ours gets spread too thin and finally we get too poor. I think we are starting to see signs of this. We have 250,000 troops around the world in 241 different countries. When the crisis hit with the New York disaster, it turned out that our planes were so spread out around the world that it was necessary for our allies to come in and help us. This is used by those who disagree with me as a positive, to say, “See, it works. NATO is wonderful. They’ll even come and help us out.” I see it as sad and tragic that we spent last year, I think it was over $325 billion for national defense, and we did not even have an AWACS plane to protect us. crisis Expansion of NATO is a Bad Idea November 7, 2001    2001 Ron Paul 95:18 According to the Department of Defense’s latest available figures, there are more than 250,000 U.S. military personnel deployed overseas on six continents in 141 nations. It is little wonder, then, that when a crisis hit our own shores--the treacherous attacks of September 11--we were forced to call on foreign countries to defend American airspace! Our military is spread so thin meddling in every corner of the globe, that defense of our own homeland is being carried out by foreigners. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:8 It has been known for years that Unocal, a U.S. company, has been anxious to build a pipeline through northern Afghanistan, but it has not been possible due to the weak Afghan central government. We should not be surprised now that many contend that the plan for the UN to “nation build” in Afghanistan is a logical and important consequence of this desire. The crisis has merely given those interested in this project an excuse to replace the government of Afghanistan. Since we don’t even know if bin Laden is in Afghanistan, and since other countries are equally supportive of him, our concentration on this Taliban “target” remains suspect by many. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:24 But placing of U.S. troops on what is seen as Muslim holy land in Saudi Arabia seems to have done exactly what the former President was trying to avoid- the breakup of the coalition. The coalition has hung together by a thread, but internal dissention among the secular and religious Arab/Muslim nations within individual countries has intensified. Even today, the current crisis threatens the overthrow of every puppet pro-western Arab leader from Egypt to Saudi Arabia and Kuwait. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:46 Just as the crisis provided an opportunity for some to promote a special-interest agenda in our foreign policy efforts, many have seen the crisis as a chance to achieve changes in our domestic laws, changes which, up until now, were seen as dangerous and unfair to American citizens. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:58 It’s easy for elected officials in Washington to tell the American people that the government will do whatever it takes to defeat terrorism. Such assurances inevitably are followed by proposals either to restrict the constitutional liberties of the American people or to spend vast sums of money from the federal treasury. The history of the 20th Century shows that the Congress violates our Constitution most often during times of crisis. Accordingly, most of our worst unconstitutional agencies and programs began during the two World Wars and the Depression. Ironically, the Constitution itself was conceived in a time of great crisis. The founders intended its provision to place severe restrictions on the federal government, even in times of great distress. America must guard against current calls for government to sacrifice the Constitution in the name of law enforcement. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:59 The“anti-terrorism” legislation recently passed by Congress demonstrates how well-meaning politicians make shortsighted mistakes in a rush to respond to a crisis. Most of its provisions were never carefully studied by Congress, nor was sufficient time taken to debate the bill despite its importance. No testimony was heard from privacy experts or from others fields outside of law enforcement. Normal congressional committee and hearing processes were suspended. In fact, the final version of the bill was not even made available to Members before the vote! The American public should not tolerate these political games, especially when our precious freedoms are at stake. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:67 The real outrage is that such a usurpation of power can be accomplished with the stroke of a pen. It may be that we have come to that stage in our history when an executive order is “the law of the land,” but it’s not “kinda cool,” as one member of the previous administration bragged. It’s a process that is unacceptable, even in this professed time of crisis. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:75 The planned use of military personnel to patrol our streets and airports is another challenge of great importance that should not go uncontested. For years, many in Washington have advocated a national approach to all policing activity. This current crisis has given them a tremendous boost. Believe me, this is no panacea and is a dangerous move. The Constitution never intended that the federal government assume this power. This concept was codified in the Posse Comitatus Act of 1878. This act prohibits the military from carrying out law-enforcement duties such as searching or arresting people in the United States, the argument being that the military is only used for this type of purpose in a police state. Interestingly, it was the violation of these principles that prompted the Texas Revolution against Mexico. The military under the Mexican Constitution at that time was prohibited from enforcing civil laws, and when Santa Anna ignored this prohibition, the revolution broke out. We should not so readily concede the principle that has been fought for on more than one occasion in this country. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:76 The threats to liberty seem endless. It seems we have forgotten to target the enemy. Instead we have inadvertently targeted the rights of American citizens. The crisis has offered a good opportunity for those who have argued all along for bigger government. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:77 For instance, the military draft is the ultimate insult to those who love personal liberty. The Pentagon, even with the ongoing crisis, has argued against the reinstatement of the draft. Yet the clamor for its reinstatement grows louder daily by those who wanted a return to the draft all along. I see the draft as the ultimate abuse of liberty. Morally it cannot be distinguished from slavery. All the arguments for drafting 18-year old men and women and sending them off to foreign wars are couched in terms of noble service to the country and benefits to the draftees. The need-for-discipline argument is the most common reason given, after the call for service in an effort to make the world safe for democracy. There can be no worse substitute for the lack of parental guidance of teenagers than the federal government’s domineering control, forcing them to fight an enemy they don’t even know in a country they can’t even identity. crisis The War On Terrorism November 29, 2001    2001 Ron Paul 98:82 I see good reason for American citizens to be concerned- not only about another terrorist attack, but for their own personal freedoms as the Congress deals with the crisis. Personal freedom is the element of the human condition that has made America great and unique and something we all cherish. Even those who are more willing to sacrifice a little freedom for security do it with the firm conviction that they are acting in the best interest of freedom and justice. However, good intentions can never suffice for sound judgment in the defense of liberty. crisis The Case For Defending America 24 January 2002    2002 Ron Paul 1:10 A major debate over foreign policy has naturally resulted from this crisis. Dealing with the shortcomings of our policies of the past is essential. We were spending $40 billion a year on intelligence gathering. That, we must admit, failed. This tells us a problem exists. There are shortcomings with our $320 billion DOD budget that did not provide the protection Americans expect. Obviously, a proper response to the terrorists requires sound judgment in order to prevent further suffering of the innocent or foolishly bringing about a worldwide conflict. crisis The Case For Defending America 24 January 2002    2002 Ron Paul 1:13 The special interests that were already lined up at the public trough should not be permitted to use the ongoing crisis as an opportunity to demand even more benefits. Let us all remember why the U.S. Congress was established, what our responsibilities are, and what our oath of office means. crisis 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. crisis The Case For Defending America 24 January 2002    2002 Ron Paul 1:58 We have had enemies throughout our history, but never before have we suffered such an attack that has made us feel so vulnerable. The cause of this crisis is much more profound and requires looking inwardly as well as outwardly at our own policies as well as those of others. crisis Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:1 Mr. Chairman, the recent economic difficulties in Argentina provide many valuable lessons for policy makers, both in America and the rest of the world. Unfortunately, early signals indicate that many are drawing the wrong lesson from this crisis. crisis Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:2 In the last several months, too many commentators and policy makers have pointed the finger of blame for Argentina’s economic crisis at deregulation, free markets, and free trade. The logical conclusion of this analysis is that Argentina should embrace protectionism, increased welfare spending, regulation, and maybe even return to the days when all major industry in the country was nationalized. However, those familiar with the economic history of the twentieth century will find this analysis shocking- after all, if state control of the economy was the path to prosperity, then Cuba and North Korea would be the world’s richest countries and leading economies! crisis Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:8 IMF policies ultimately are based on a flawed philosophy that says the best means of creating economic prosperity is government-to-government transfers. Such programs cannot produce growth, because they take capital out of private hands, where it can be allocated to its most productive use as determined by the choices of consumers in the market, and place it in the hands of politicians. Placing economic resources in the hands of politicians and bureaucrats inevitably results in inefficiencies, shortages, and an economic crisis, as even the best intentioned politicians cannot know the most efficient use of resources. crisis Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:10 The only constituency for the IMF are the huge multinational banks and corporations. Big banks used IMF funds- taxpayer funds- to bail themselves out from billions in losses after the Asian financial crisis. Big corporations obtain lucrative contracts for a wide variety of construction projects funded with IMF loans. It’s a familiar game in Washington, with corporate welfare disguised as compassion for the poor. crisis Stimulating The Economy February 7, 2002    2002 Ron Paul 5:2 No one challenges the need to protect American citizens from further terrorist attacks, but there is much debate throughout the country as to how it should be done and whether personal liberty here at home must be sacrificed. Many are convinced that our efforts overseas might escalate the crisis and actually precipitate more violence. A growing number of Americans are becoming concerned that our efforts to preserve our freedoms and security will result in the unnecessary sacrifice of that which we’ve pledge to protect- our constitutionally protected liberty. crisis Stimulating The Economy February 7, 2002    2002 Ron Paul 5:61 7. In the area of personal liberty, we face some real dangers. Throughout our history, starting with the Civil War, our liberties have been curtailed and the Constitution has been flaunted. Although our government continued to grow with each crisis, many of the liberties curtailed during wartime were restored. War was precise and declared, and when the war was over, there was a desire to return to normalcy. With the current war on terrorism, there is no end in sight and there is no precise enemy, and we’ve been forewarned that this fight will go on for a long time. This means that a return to normalcy after the sacrifices we are making with our freedoms is not likely. The implementation of a national ID card, pervasive surveillance, easy-to-get search warrants, and loss of financial and medical privacy will be permanent. If this trend continues, the Constitution will become a much weaker document. crisis Stimulating The Economy February 7, 2002    2002 Ron Paul 5:63 9. There is a danger that personal privacy will be a thing of the past. Even before 9-11, there were attacks on the privacy of all Americans- for good reasons, or so it was argued. The attacks included plans for national ID cards, a national medical data bank, and “Know Your Customer” type banking regulations. The need for enforcement powers for the DEA and the IRS routinely prompted laws that violated the Fourth amendment. The current crisis has emboldened those who already were anxious to impose restrictions on the American people. With drug and tax laws, and now with anti-terrorist legislation sailing through Congress, true privacy enjoyed by a free people is fast becoming something that we will only read about in our textbooks. Reversing this trend will not be easy. crisis Stimulating The Economy February 7, 2002    2002 Ron Paul 5:66 12. In this crisis, as in all crises, the special interests are motivated to increase their demands. It’s a convenient excuse to push for the benefits they were already looking for. Domestically, this includes everyone from the airlines to the unions, insurance companies, travel agents, state and local governments, and anyone who can justify a related need. It’s difficult for the military-industrial complex to hide their glee with their new contracts for weapons and related technology. Instead of the events precipitating a patriotic fervor for liberty, we see enthusiasm for big government, more spending, more dependency, greater deficits and military confrontations that are unrelated to the problems of terrorism. We are supposed to be fighting terrorism to protect our freedoms, but if we are not careful, we will lose our freedoms and precipitate more terrorist attacks. crisis Stimulating The Economy February 7, 2002    2002 Ron Paul 5:68 Optimism or Pessimism? Many realists who see the world as it really is and who recognize the dilemma we face in the United States to preserve our freedoms in this time of crisis are despondent and pessimistic, believing little can be done to reverse the tide against liberty. Others who share the same concern are confident that efforts to preserve the true spirit of the Constitution can be successful. Maybe next month or next year or at some later date, I’m convinced that, in time, the love for liberty can be rejuvenated. Once it’s recognized that government has no guarantee of future success, promoting dependency and security can quickly lose it allure. crisis Statement on Ending US Membership in the IMF February 27, 2002    2002 Ron Paul 10:2 For example, Mr. Speaker, the IMF played a major role in creating the Argentine economic crisis. Despite clear signs over the past several years that the Argentine economy was in serious trouble, the IMF continued pouring taxpayer-subsidized loans with an incredibly low interest rate of 2.6% into the country. In 2001, as Argentina’s fiscal position steadily deteriorated, the IMF funneled over 8 billion dollars to the Argentine government! crisis Statement on Ending US Membership in the IMF February 27, 2002    2002 Ron Paul 10:8 In all my years in Congress, I have never been approached by a taxpayer asking that he or she be forced to provide more subsidies to Wall Street executives and foreign dictators. The only constituency for the IMF is the huge multinational banks and corporations. Big banks used IMF funds- taxpayer funds- to bail themselves out from billions in losses after the Asian financial crisis. Big corporations obtain lucrative contracts for a wide variety of construction projects funded with IMF loans. It’s a familiar game in Washington, with corporate welfare disguised as compassion for the poor. crisis Do Not Initiate War On Iraq March 20, 2002    2002 Ron Paul 19:6 Number five, an attack on Iraq will not likely be confined to Iraq alone. Spreading the war to Israel and rallying all Arab nations against her may well end up jeopardizing the very existence of Israel. The President has already likened the current international crisis more to that of World War II than the more localized Vietnam war. The law of unintended consequences applies to international affairs every bit as much as to domestic interventions, yet the consequences of such are much more dangerous. crisis America’s Entangling Alliances in the Middle East April 10, 2002    2002 Ron Paul 21:1 We were warned, and in the early years of our Republic, we heeded that warning. Today, though, we are entangled in everyone’s affairs throughout the world, and we are less safe as a result. The current Middle-East crisis is one that we helped create, and it is typical of how foreign intervention fails to serve our interests. Now we find ourselves smack-dab in the middle of a fight that will not soon end. No matter what the outcome, we lose. crisis America’s Entangling Alliances in the Middle East April 10, 2002    2002 Ron Paul 21:9 The arguments against foreign intervention are many. The chaos in the current Middle-East crisis should be evidence enough for all Americans to reconsider our extensive role overseas and reaffirm the foreign policy of our early leaders- a policy that kept us out of the affairs of others. crisis Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:1 Mr. PAUL. Mr. Chairman, seldom in history have supporters of increased state power failed to take advantage of a real or perceived crisis to increase government interference in our economic and/or personal lives. Therefore we should not be surprised that the events surrounding the Enron bankruptcy are being used to justify the expansion of Federal regulatory power contained in H.R. 3763, the Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002 (CARTA). crisis Predictions 24 April 2002    2002 Ron Paul 25:13 An international dollar crisis will dramatically boost interest rates in the United States. crisis 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. crisis Statement in Support of a Balanced Approach to the Middle East Peace Process May 2, 2002    2002 Ron Paul 32:1 MR. PAUL: Mr. Speaker, this legislation could not have come at a worse time in the ongoing Middle East crisis. Just when we have seen some positive signs that the two sides may return to negotiations toward a peaceful settlement, Congress has jumped into the fray on one side of the conflict. I do not believe that this body wishes to de-rail the slight progress that seems to have come from the Administration’s more even-handed approach over the past several days. So why is it that we are here today ready to pass legislation that clearly and openly favors one side in the Israeli-Palestinian conflict? crisis Expressing Solidarity With Israel In Its Fight Against Terrorism 2 May 2002    2002 Ron Paul 33:1 Mr. PAUL. Mr. Speaker, this legislation could not have come at a worse time in the ongoing Middle East crisis. Just when we have seen some positive signs that the two sides may return to negotiations toward a peaceful settlement, Congress has jumped into the fray on one side of the conflict. I do not believe that this body wishes to de-rail the slight progress that seems to have come from the Administration’s more even-handed approach over the past several days. So why is it that we are here today ready to pass legislation that clearly and openly favors one side in the Israeli-Palestinian conflict? crisis Don’t Expand Federal Deposit Insurance May 22, 2002    2002 Ron Paul 47:3 In the event of a severe banking crisis, Congress likely will transfer funds from general revenues into the Deposit Insurance Fund, which could make all taxpayers liable for the mistakes of a few. Of course, such a bailout would require separate authorization from Congress, but can anyone imagine Congress saying "No" to banking lobbyists pleading for relief from the costs of bailing out their weaker competitors? crisis Don’t Expand Federal Deposit Insurance May 22, 2002    2002 Ron Paul 47:4 Government subsidies lead to government control, as regulations are imposed on the recipients of the subsidies in order to address the moral hazard problem. This is certainly the case in banking, which is one of the most heavily regulated industries in America. However, as George Kaufman, the John Smith Professor of Banking and Finance at Loyola University in Chicago, and co-chair of the Shadow Financial Regulatory Committee, pointed out in a study for the CATO Institute, the FDIC’s history of poor management exacerbated the banking crisis of the eighties and nineties. Professor Kaufman properly identifies a key reason for the FDIC’s poor track record in protecting individual depositors: regulators have incentives to downplay or even cover-up problems in the financial system such as banking failures. Banking failures are black marks on the regulators’ records. In addition, regulators may be subject to political pressure to delay imposing sanctions on failing institutions, thus increasing the magnitude of the loss. crisis AN OPEN LETTER TO TREASURY SECRETARY O’NEILL AND FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN May 31, 2002    2002 Ron Paul 51:3 Dear Sirs: I am writing regarding Article 4, Section 2b of the International Monetary Fund (IMF)’s Articles of Agreement. As you may be aware, this language prohibits countries who are members of the IMF from linking their currency to gold. Thus, the IMF is forbidding countries suffering from an erratic monetary policy from adopting the most effective means of stabilizing their currency. This policy could delay a country’s recovery from an economic crisis and retard economic growth, thus furthering economic and political instability. crisis H.R. 4954 27 June 2002    2002 Ron Paul 63:2 I am pleased that the drafters of H.R. 4954 incorporate regulatory relief legislation, which I have supported in the past, into the bill. This will help relieve some of the tremendous regulatory burden imposed on health care providers by the Federal Government. I am also pleased that H.R. 4954 contains several good provisions addressing the Congressionally-created crisis in rural health and attempting to ensure that physicians are fairly reimbursed by the Medicare system. crisis Is America a Police State? June 27, 2002    2002 Ron Paul 64:14 Most police states, surprisingly, come about through the democratic process with majority support. During a crisis, the rights of individuals and the minority are more easily trampled, which is more likely to condition a nation to become a police state than a military coup. Promised benefits initially seem to exceed the cost in dollars or lost freedom. When people face terrorism or great fear- from whatever source- the tendency to demand economic and physical security over liberty and self-reliance proves irresistible. The masses are easily led to believe that security and liberty are mutually exclusive, and demand for security far exceeds that for liberty. crisis Is America a Police State? June 27, 2002    2002 Ron Paul 64:49 In times of crisis, nearly unanimous support for government programs is usual and the effects are instantaneous. Discovering the error of our ways and waiting to see the unintended consequences evolve takes time and careful analysis. Reversing the bad effects is slow and tedious and fraught with danger. People would much prefer to hear platitudes than the pessimism of a flawed policy. crisis Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:4 When the bubble is inflating, there are no complaints. When it bursts, the blame game begins. This is especially true in the age of victimization, and is done on a grand scale. It quickly becomes a philosophic, partisan, class, generational, and even a racial issue. While avoiding the real cause, all the finger pointing makes it difficult to resolve the crisis and further undermines the principles upon which freedom and prosperity rest. crisis Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:22 Capitalism didn’t give us this crisis of confidence now existing in the corporate world. The lack of free markets and sound money did. Congress does have a role to play, but it’s not proactive. Congress’ job is to get out of the way. crisis The Price Of War 5 September 2002    2002 Ron Paul 83:19 Our influence in the Middle East evolved out of concern for the newly created State of Israel in 1947 and to securing control over the flow of oil in that region. Israel’s needs and Arab oil have influenced our foreign policy for more than half a century. In the 1950s, the CIA installed the Shah in Iran. It was not until the hostage crisis of the late 1970s that the unintended consequence occurred. This generated the Iranian hatred of America and led to the takeover by the reactionary Khomeini and the Islamic fundamentalists and caused greater regional instability than we anticipated. crisis The Price Of War 5 September 2002    2002 Ron Paul 83:63 We must prepare for the day when our financial bankruptcy and the failure of our effort at world domination are apparent. The solution to such a crisis can be easily found in our Constitution and in our traditions. But ultimately, the love of liberty can only come from a change in the hearts and minds of the people and with an answered prayer for the blessings of divine intervention. crisis Statement on Medical Malpractice Legislation September 26, 2002    2002 Ron Paul 90:1 Mr. Speaker, as an OB-GYN with over 30 years in private practice, I understand better than perhaps any other member of Congress the burden imposed on both medical practitioners and patients by excessive malpractice judgments and the corresponding explosion in malpractice insurance premiums. Malpractice insurance has skyrocketed to the point where doctors are unable to practice in some areas or see certain types of patients because they cannot afford the insurance premiums. This crisis has particularly hit my area of practice, leaving some pregnant woman unable to find a qualified obstetrician in their city. Therefore, I am pleased to see Congress address this problem. crisis Statement on Medical Malpractice Legislation September 26, 2002    2002 Ron Paul 90:5 The current governor of my own state of Texas has introduced a far reaching medical litigation reform plan that the Texas state legislature will consider in January. However, if HR 4600 becomes law, Texans will be deprived of the opportunity to address the malpractice crisis in the way that meets their needs. Ironically, HR 4600 actually increases the risk of frivolous litigation in Texas by lengthening the statue of limitations and changing the definition of comparative negligence! crisis Statement on Medical Malpractice Legislation September 26, 2002    2002 Ron Paul 90:8 Rather than further expanding unconstitutional mandates and harming those with a legitimate claim to collect compensation, Congress should be looking for ways to encourage physicians and patients to resolve questions of liability via private, binding contracts. The root cause of the malpractice crisis (and all of the problems with the health care system) is the shift away from treating the doctor-patient relationship as a contractual one to viewing it as one governed by regulations imposed by insurance company functionaries, politicians, government bureaucrats, and trial lawyers. There is no reason why questions of the assessment of liability and compensation cannot be determined by a private contractual agreement between physicians and patients. crisis Statement on Medical Malpractice Legislation September 26, 2002    2002 Ron Paul 90:11 In conclusion, Mr. Speaker, while I support the efforts of the sponsors of HR 4600 to address the crisis in health care caused by excessive malpractice litigation and insurance premiums, I cannot support this bill. HR 4600 exceeds Congress’ constitutional limitations and denies full compensation to those harmed by the unintentional effects of federal vaccine mandates. Instead of furthering unconstitutional authority, my colleagues should focus on addressing the root causes of the malpractice crisis by supporting efforts to restore the primacy of contract to the doctor-patient relationships. crisis Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:26 Since reversing the tide against liberty is so difficult, this unworkable system inevitably leads to various forms of tyranny. As our Republic crumbles, voices of protest grow louder. The central government becomes more authoritarian with each crisis. As the equality of education plummets, the role of the Federal Government is expanded. As the quality of medical care collapses, the role of the Federal Government in medicine is greatly increased. crisis Oppose the Federal Welfare State February 13, 2003    2003 Ron Paul 22:4 In addition, Mr. Speaker, it is highly unlikely that a “one-size-fits-all” approach dictated from Washington will meet the diverse needs of every welfare recipient in every state and locality in the nation. Proponents of this bill claim to support allowing states, localities, and private charities the flexibility to design welfare-to-work programs that fit their particular circumstances. Yet, this proposal constricts the ability of the states to design welfare-to-work programs that meet the unique needs of their citizens. I also question the wisdom of imposing as much as $11 billion in unfunded mandates on the states at a time when many are facing a fiscal crisis. crisis Freedom From Unnecessary Litigation Act 12 March 2003    2003 Ron Paul 33:2 Relying on negative outcomes insurance instead of litigation will also reduce the costs imposed on physicians, other health care providers, and hospitals by malpractice litigation. The Freedom from Unnecessary Litigation Act also promotes effective solutions to the malpractice crisis by making malpractice awards obtained through binding, voluntary arbitration tax-free. crisis Freedom From Unnecessary Litigation Act 12 March 2003    2003 Ron Paul 33:3 The malpractice crisis has contributed to the closing of a maternity ward in Philadelphia and a trauma center in Nevada. Meanwhile, earlier this year, surgeons in West Virginia walked off the job to protest increasing liability rates. These are a few of the examples of how access to quality health care is jeopardized by the epidemic of large (and medically questionable) malpractice awards, and the resulting increase in insurance rates. crisis Freedom From Unnecessary Litigation Act 12 March 2003    2003 Ron Paul 33:4 As is typical of Washington, most of the proposed solutions to the malpractice problem involve unconstitutional usurpations of areas best left to the states. These solutions also ignore the root cause of the litigation crisis: the shift away from treating the doctor-patient relationship as a contractual one to viewing it as one governed by regulations imposed by insurance company functionaries, politicians, government bureaucrats, and trial lawyers. There is no reason why questions of the assessment of liability and compensation cannot be determined by a private contractual agreement between physicians and patients. The Freedom from Unnecessary Litigation Act is designed to take a step toward resolving these problems through private contracts. crisis Freedom from Unnecessary Litigation Act (H.R. 1249) 13 March 2003    2003 Ron Paul 34:1 Mr. PAUL. Mr. Speaker, as an OB–GYN with over 30 years in private practice, I understand better than perhaps any other member of Congress the burden imposed on both medical practitioners and patients by excessive malpractice judgments and the corresponding explosion in malpractice insurance premiums. Malpractice insurance has skyrocketed to the point where doctors are unable to practice in some areas or see certain types of patients because they cannot afford the insurance premiums. This crisis has particularly hit my area of practice, leaving some pregnant women unable to find a qualified obstetrician in their city. Therefore, I am pleased to see Congress address this problem. crisis Freedom from Unnecessary Litigation Act (H.R. 1249) 13 March 2003    2003 Ron Paul 34:7 Rather than further expanding unconstitutional mandates and harming those with a legitimate claim to collect compensation, Congress should be looking for ways to encourage physicians and patients to resolve questions of liability via private, binding contracts. The root cause of the malpractice crisis (and all of the problems with the health care system) is the shift away from treating the doctor-patient relationship as a contractual one to viewing it as one governed by regulations imposed by insurance company functionaries, politicians, government bureaucrats, and trial lawyers. There is no reason why questions of the assessment of liability and compensation cannot be determined by a private contractual agreement between physicians and patients. crisis Freedom from Unnecessary Litigation Act (H.R. 1249) 13 March 2003    2003 Ron Paul 34:10 In conclusion, Mr. Speaker, while I support the efforts of the sponsors of H.R. 5 to address the crisis in health care caused by excessive malpractice litigation and insurance premiums, I cannot support this bill. H.R. 5 exceeds Congress’ constitutional limitations and denies full compensation to those harmed by the unintentional effects of federal vaccine mandates. Instead of furthering unconstitutional authority, my colleagues should focus on addressing the root causes of the malpractice crisis by supporting efforts to restore the primacy of contract to the doctor-patient relationships. crisis Crisis In Healthcare 13 March 2003    2003 Ron Paul 35:1 Mr. PAUL. Mr. Speaker, America faces a crisis in health care. Health care costs continue to rise while physicians and patients struggle under the control of managed-care “gatekeepers.” Obviously, fundamental health care reform should be one of Congress’ top priorities. crisis “Negative Outcomes” Insurance – A Free-Market Approach to the Medical Malpractice March 27, 2003    2003 Ron Paul 39:1 Relying on negative outcomes insurance instead of litigation will also reduce the costs imposed on physicians, other health care providers, and hospitals by malpractice litigation. The Freedom from Unnecessary Litigation Act also promotes effective solutions to the malpractice crisis by making malpractice awards obtained through binding, voluntary arbitration tax-free. crisis “Negative Outcomes” Insurance – A Free-Market Approach to the Medical Malpractice March 27, 2003    2003 Ron Paul 39:2 The malpractice crisis has contributed to the closing of a maternity ward in Philadelphia and a trauma center in Nevada. Meanwhile, earlier this year, surgeons in West Virginia walked off the job to protest increasing liability rates. These are a few of the examples of how access to quality health care is jeopardized by the epidemic of large (and medically questionable) malpractice awards, and the resulting increase in insurance rates. crisis “Negative Outcomes” Insurance – A Free-Market Approach to the Medical Malpractice March 27, 2003    2003 Ron Paul 39:3 As is typical of Washington, most of the proposed solutions to the malpractice problem involve unconstitutional usurpations of areas best left to the states. These solutions also ignore the root cause of the litigation crisis: the shift away from treating the doctor-patient relationship as a contractual one to viewing it as one governed by regulations imposed by insurance company functionaries, politicians, government bureaucrats, and trial lawyers. There is no reason why questions of the assessment of liability and compensation cannot be determined by a private contractual agreement between physicians and patients. The Freedom from Unnecessary Litigation Act is designed to take a step toward resolving these problems through private contracts. crisis Comprehensive Health Care Reform Without Socialized Medicine March 27, 2003    2003 Ron Paul 40:1 Mr. Speaker, America faces a crisis in health care. Health care costs continue to rise while physicians and patients struggle under the control of managed-care “gatekeepers.” Obviously, fundamental health care reform should be one of Congress’ top priorities. crisis Pro-Life Action Must Originate from Principle. June 4, 2003    2003 Ron Paul 59:2 I have become increasingly concerned over the years that the pro-life movement I so strongly support is getting further off track, both politically and morally. I sponsored the original pro-life amendment, which used a constitutional approach to solve the crisis of federalization of abortion law by the courts. The pro-life movement was with me and had my full support and admiration. crisis Continuity Of Government — Part 1 5 June 2003    2003 Ron Paul 62:6 I would suggest that maybe the urgency is not quite as much as one thinks. I want to quote Michael Barone who was trying to justify a constitutional amendment that allows governors to appoint moc in a time of crisis. He said, “think of all the emergency legislation that Congress passed in the weeks and months after September 11 authorizing expanded police powers. None of this could have happened”. But now as we look back at those emergency conditions, a lot of questions are being asked about the PATRIOT Act and the attack on our fourth amendment and civil liberties. I suggest there could be a slower approach no harm will come of it. Mr. DREIER. Mr. Speaker, will the gentleman yield? crisis Establishin Joint Committee To Review House And Senate Matters Assuring Continuing Representation And Congressional Operations For The American People 5 June 2003    2003 Ron Paul 64:5 I have no doubt that the people of the states are quite competent to hold elections in a timely fashion. After all, isn’t it in each state’s interest to ensure it has adequate elected representation in Washington as soon as possible? Mr. Speaker, there are those who say that the power of appointment is necessary in order to preserve checks and balances and thus prevent an abuse of executive power. Of course, I agree that it is very important to carefully guard our constitutional liberties in times of crisis, and that an over-centralization of power in the Executive Branch is one of the most serious dangers to that liberty. However, I would ask my colleagues who is more likely to guard the people’s liberties, representatives chosen by, and accountable to, the people, or representatives hand-picked by the executive of their state? crisis Medicare Funds For Prescription Drugs 26 June 2003    2003 Ron Paul 71:2 I am pleased that the drafters of H.R. 1 incorporate regulatory relief legislation, which have supported in the past, into the bill. This will help relieve some of the tremendous regulatory burden imposed on health care providers by the Federal Government. I am also pleased that H.R. 1 contains several good provisions addressing the congressionally-created crisis in rural health and attempts to ensure that physicians are fairly reimbursed by the Medicare system. crisis The “Continuity of Government” Proposal – A Dangerous and Unnecessary Threat to Representative Rule June 30, 2003    2003 Ron Paul 72:17 Conclusion To quote Professor Charles Rice, a distinguished Professor Emeritus at Notre Dame Law School: “When it is not necessary to amend the Constitution, it is necessary not to amend the Constitution.” We must not allow the understandable fears and passions engendered by the events of September 11 th to compel a rushed and grievous injury to our system of government. The Constitution is our best ally in times of relative crisis; it is precisely during such times we should hold to it most dearly. Rather than amending the Constitution, Congress should be meeting to discuss how to preserve our existing institutions- including an elected House- in the event of a terrorist attack. The Constitution already provides us with the framework, while technology gives states the ability organize elections quickly. The COGC proposal not only makes a mountain out of a molehill, but also acutely threatens the delicate balance of federal power established in the Constitution. crisis 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. crisis Legislation To Withdraw The United States From The Bretton Woods Agreement 17 July 2003    2003 Ron Paul 84:2 Just last year, Argentina was rocked by an economic crisis caused by IMF policies. Despite clear signs over the past several years that the Argentine economy was in serious trouble, the IMF continued pouring taxpayersubsidized loans with an incredibly low interest rate of 2.6 percent into the country. In 2001, as Argentina’s fiscal position steadily deteriorated, the IMF funneled over 8 billion dollars to the Argentine government! crisis Legislation To Withdraw The United States From The Bretton Woods Agreement 17 July 2003    2003 Ron Paul 84:8 In all my years in Congress, I have never been approached by a taxpayer asking that he or she be forced to provide more subsidies to Wall Street executives and foreign dictators. The only constituency for the IMF is the huge multinational banks and corporations. Big banks used IMF funds — taxpayer funds — to bail themselves out from billions in losses after the Asian financial crisis. Big corporations obtain lucrative contracts for a wide variety of construction projects funded with IMF loans. It’s a familiar game in Washington, with corporate welfare disguised as compassion for the poor. crisis Stay out of Liberia! 24 July 2003    2003 Ron Paul 90:1 Mr. Speaker, I rise to introduce a resolution expressing the sense of the Congress that while we encourage a regional West African effort to resolve the Liberia crisis, the United States military has no role - either alone or as part of a multinational force - in that country. crisis 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. crisis Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:27 The 20 th Century was much less sympathetic to gold. Since 1913 central banking has been accepted in the United States without much debate, despite the many economic and political horrors caused or worsened by the Federal Reserve since its establishment. The ups and downs of the economy have all come as a consequence of Fed policies, from the Great Depression to the horrendous stagflation of the ‘70s, as well as the current ongoing economic crisis. crisis Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:74 I agree, it would be politically tough to bite the bullet and deal with our extravagance, both fiscal and monetary, but the repercussions here at home from a loss of confidence in the dollar throughout the world will not be a pretty sight to behold. I don’t see any way we are going to avoid the crisis. crisis Statement Opposing the Continuity of Government Proposal September 9, 2003    2003 Ron Paul 94:4 Mr. Chairman, there are those who say that the power of appointment is necessary in order to preserve checks and balances and thus prevent an abuse of executive power. Of course, I agree that it is very important to carefully guard our constitutional liberties in times of crisis, and that an over-centralization of power in the executive branch is one of the most serious dangers to that liberty. However, Mr. Chairman, during a time of crisis it is all the more important to have representatives accountable to the people making the laws. Otherwise, the citizenry has no check on the inevitable tendency of government to infringe on the people’s liberties at such a time. I would remind my colleagues that the only reason we are re-examining provisions of the PATRIOT Act is because of public concerns that this Act gives up excessive liberty for a phantom security. Appointed officials would not be as responsive to public concerns. crisis Introduction Of The Steel Financing Fairness Act 10 September 2003    2003 Ron Paul 97:2 No one can doubt that the United States steel industry is in crisis. Approximately 15 million tons of flat-rolled capability (20 percent of the existing domestic capacity base at the start of 2000) was closed in the 18 months from September 2000 to December 2001. The decline of the steel industry has a human cost: in just the last five years, 30,000 Americans once productively employed in the steel industry have joined the ranks of the unemployed. crisis Borrowing Billions to Fund a Failed Policy in Iraq October 17, 2003    2003 Ron Paul 110:4 Mr. Speaker this reconstruction of Iraq – that we are making but a down-payment on today – is at its core just another foreign policy boondoggle. The $20 billion plan to “rebuild” Iraq tilts heavily toward creating a statist economy and is filled with very liberal social-engineering programs. Much of the money in this reconstruction plan will be wasted - as foreign aid most often is. Much will be wasted as corporate welfare to politically connected corporations; much will be thrown away at all the various “non-government organizations” that aim to teach the Iraqis everything from the latest American political correctness to the “right” way to vote. The bill includes $900 million to import petroleum products into Iraq (a country with the second largest oil reserves in the world); $793 million for healthcare in Iraq when we’re in the midst of our own crisis and about to raise Medicare premiums of our seniors; $10 million for "women’s leadership programs" (more social engineering); $200 million in loan guarantees to Pakistan (a military dictatorship that likely is the home of Osama bin Laden); $245 million for the "U.S. share" of U.N. peacekeeping in Liberia and Sudan; $95 million for education in Afghanistan; $600 million for repair and modernization of roads and bridges in Iraq (while our own infrastructure crumbles). crisis Continuity In Representation Act 22 April 2004    2004 Ron Paul 28:4 Mr. Chairman, there are those who say the power of appointment is necessary in order to preserve checks and balances and prevent an abuse of executive power during a time of crisis. Of course, I agree that is a very important point to carefully guard against and protect our constitutional liberties, and that an overcentralization of power in the executive branch is one of the most serious dangers to our liberties. However, during a time of crisis, it is all the more important to have Representatives accountable to the people. crisis Continuity In Representation Act 22 April 2004    2004 Ron Paul 28:13 Mr. Chairman, there are those who say that the power of appointment is necessary in order to preserve checks and balances and thus prevent an abuse of executive power during a time of crisis. Of course, I agree that it is very important to carefully guard our constitutional liberties in times of crisis, and that an over-centralization of power in the executive branch is one of the most serious dangers to that liberty. However, Mr. Chairman, during a time of crisis it is all the more important to have representatives accountable to the people. Otherwise, the citizenry has no check on the inevitable tendency of Government to infringe on the people’s liberties at such a time. I would remind my colleagues that the only reason we are considering reexamining provisions of the PATRIOT Act is because of public concerns that this act gives up excessive liberty for a phantom security. Appointed officials would not be as responsive to public concerns. crisis The House of Representatives Must be Elected! June 2, 2004    2004 Ron Paul 36:3 Mr. Speaker, there are those who say that the power of appointment is necessary in order to preserve checks and balances and thus prevent an abuse of executive power. Of course, I agree that it is very important to carefully guard our constitutional liberties in times of crisis, and that an over-centralization of power in the executive branch is one of the most serious dangers to that liberty. However, Mr. Speaker, during a time of crisis it is all the more important to have representatives accountable to the people making the laws. Otherwise, the citizenry has no check on the inevitable tendency of government to infringe on the people’s liberties at such a time. I would remind my colleagues that the only reason we are reexamining provisions of the PATRIOT Act is because of public concerns that this Act gives up too much liberty for a phantom security. Appointed officials would not be as responsive to public concerns. crisis The Constitution 23 September 2004    2004 Ron Paul 70:14 I have heard throughout my life how each upcoming election is the most important election ever and how the very future of our country is at stake. Those fears have always been grossly overstated. The real question is not who will achieve the next partisan victory; the real question is whether or not we will once again accept the clear restraints placed in the power of the national government by the Constitution. Obviously, the jury is still out on this issue. However, what we choose to do about this constitutional crisis is the most important “election” of our times, and the results will determine the kind of society our children will inherit. I believe it is worthwhile for all of us to tirelessly pursue the preservation of the elegant constitution with which we have been so blessed. crisis Stay out of Sudan’s Civil War November 19, 2004    2004 Ron Paul 80:5 Inserting ourselves into this civil war in Sudan will do little to solve the crisis. In fact, the promise of US support for one side in the struggle may discourage the progress that has been made recently. What incentive is there to seek a peaceful resolution of the conflict when the US government promises massive assistance to one side? I strongly urge my colleagues to rethink our current dangerous course toward further intervention in Sudan. We may end up hurting most those we are intending to help. crisis Where To From Here? November 20, 2004    2004 Ron Paul 81:20 The value of the dollar is a much more important issue than most realize in Washington. Our current account deficit of 6% of GDP, and our total foreign indebtedness of over $3 trillion, pose a threat to our standard of living. Unfortunately, when the crisis hits our leaders will have little ability to stem the tide of price inflation and higher interest rates that will usher in a dangerous period of economic weakness. Our dependency on foreign borrowing to finance our spendthrift habits is not sustainable. We borrow $1.8 billion a day! The solution involves changing our policy with regards to foreign commitments, foreign wars, empire overseas, and the ever-growing entitlement system here at home. This change is highly unlikely without significant turmoil, and it certainly is not on the administration’s agenda for the next four years. That’s why the world is now betting against the dollar. crisis Where To From Here? November 20, 2004    2004 Ron Paul 81:23 One cannot expect the needed changes to occur soon, considering that these options were not even considered or discussed in the campaign. But just because they weren’t part of the campaign, and there was no disagreement between the two candidates on the major issues, doesn’t distract from their significance nor disqualify these issues from being crucial in the years to come. My guess is that in the next four years little legislation will be offered dealing with family and moral issues. Foreign policy and domestic spending, along with the ballooning deficit, will be thrust into the forefront and will demand attention. The inability of our Congress and leaders to change direction, and their determination to pursue policies that require huge expenditures, will force a financial crisis upon us as the dollar is further challenged as the reserve currency of the world on international exchange markets. crisis Where To From Here? November 20, 2004    2004 Ron Paul 81:25 The only thing that allows our borrowing from foreigners to continue is the confidence they place in our economic system, our military might, and the dollar itself. This is all about to change. Confidence in us, with the continuous expansion of our military presence overseas and with a fiscal crisis starring us in the face, is already starting to erode. Besides, paper money — and that’s all the U.S. dollar is — always fails when trust is lost. That’s a fact of history, not someone’s opinion. Be assured trust in paper money never lasts forever. crisis Where To From Here? November 20, 2004    2004 Ron Paul 81:36 Few in Washington comprehend the nature of the crisis. But liberal Lawrence Summers, Clinton’s Secretary of the Treasury and now president of Harvard, perceptively warns of the danger that is fast approaching. He talks of, “A kind of global balance of financial terror” that we should be concerned about. He goes on to say: “there is surely something off about the world’s greatest power being the world’s greatest debtor. In order to finance prevailing levels of consumption and investment, must the United States be as dependent as it is on the discretionary acts of what are inevitably political entities in other countries?” An economist from the American Enterprise Institute also expressed concern by saying 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.” crisis Where To From Here? November 20, 2004    2004 Ron Paul 81:37 We must remember the Soviet system was not destroyed from without by military confrontation; it succumbed to the laws of economics that dictated communism a failure, and it was unable to finance its empire. Deficit-financed welfarism, corporatism, Keynesianism, inflationism, and Empire, American style, are no more economically sound than the more authoritarian approach of the Soviets. If one is concerned with the Red/Blue division in this country and the strong feelings that exist already, an economic crisis will make the conflict much more intense. crisis Continuity In Representation Act 3 March 2005    2005 Ron Paul 26:6 Mr. Chairman, there are those who say that the power of appointment is necessary in order to preserve checks and balances and thus prevent an abuse of executive power during a time of crisis. Of course, I agree that it is very important to carefully guard our constitutional liberties in times of crisis and that an over-centralization of power in the executive branch is one of the most serious dangers to that liberty. However, Mr. Chairman, during a time of crisis it is all the more important to have Representatives accountable to the people. Otherwise, the citizenry has no check on the inevitable tendency of government to infringe on the people’s liberties at such a time. I would remind my colleagues that the only reason we are considering reexamining provisions of the PATRIOT Act is because of public concerns that this act gives up excessive liberty for a phantom security. Appointed officials would not be as responsive to public concerns. crisis The Deficit 16 March 2005    2005 Ron Paul 33:3 But I would like to make a suggestion that we are not facing primarily a budgetary crisis or a budgetary problem. I see this more as a philosophic problem, dealing more with the philosophy of government rather than thinking that we can tinker with the budget, dealing with this as a tactical problem when really it is a strategic problem. So as long as we endorse the type of government that we have and there is a willingness for the people as well the Congress to finance it, we are going to continue with this process and the frustrations are going to grow because it is just not likely that these deficits will shrink. crisis The Deficit 16 March 2005    2005 Ron Paul 33:10 I think this improper understanding and following of the Constitution has brought us closer to a major crisis in this country, a crisis of our personal liberties, a crisis in our foreign policy, as well as a crisis in our budgeting. crisis The Deficit 16 March 2005    2005 Ron Paul 33:14 And it is the philosophy of government and our philosophy on money that encourages these problems. And the current account deficits and this huge foreign indebtedness that are encouraged by our ability to maintain a reserve currency, it is going to lead to a crisis where this spending will have to come in check. crisis Reject Taxpayer Bank Bailouts May 4, 2005    2005 Ron Paul 46:3 In the event of a severe banking crisis, Congress likely will transfer funds from general revenues into the Deposit Insurance Fund, which would make all taxpayers liable for the mistakes of a few. Of course, such a bailout would require separate authorization from Congress, but can anyone imagine Congress saying no to banking lobbyists pleading for relief from the costs of bailing out their weaker competitors? crisis Reject Taxpayer Bank Bailouts May 4, 2005    2005 Ron Paul 46:4 Government subsidies lead to government control, as regulations are imposed on the recipients of the subsidies in order to address the moral hazard problem. This certainly is the case in banking, which is one of the most heavily regulated industries in America. However, as George Kaufman (John Smith Professor of Banking and Finance at Loyola University in Chicago and co-chair of the Shadow Financial Regulatory Committee) pointed out in a study for the CATO Institute, the FDIC’s history of poor management exacerbated the banking crisis of the eighties and nineties. Professor Kaufman properly identifies a key reason for the FDIC’s poor track record in protecting individual depositors: regulators have incentives to downplay or even cover-up problems in the financial system such as banking facilities. Banking failures are black marks on the regulators’ records. In addition, regulators may be subject to political pressure to delay imposing sanctions on failing institutions, thus increasing the magnitude of the loss. crisis Mandatory Mental health Screening 24 June 2005    2005 Ron Paul 73:2 Mr. Chairman, as a physician, having practiced medicine for well over 30 years, let me tell Members, there is a crisis in this country. There is a crisis with illegal drugs, but there is a crisis in this country with an overuse of all drugs, especially in the area of psychiatry. crisis Introducing The Comprehensive Health Care Act 27 June 2005    2005 Ron Paul 75:1 Mr. PAUL. Mr. Speaker, America faces a crisis in health care. Health care costs continue to rise, leaving many Americans unable to afford health insurance, while those with health care coverage, and their physicians, struggle under the control of managed-care “gatekeepers.” Obviously, fundamental health care reform should be one of Congress’ top priorities. crisis Introducing The Freedom From Unnecessary Litigation Act 27 June 2005    2005 Ron Paul 77:2 Relying on negative outcomes insurance instead of litigation will also reduce the costs imposed on physicians, other health care providers, and hospitals by malpractice litigation. The Freedom from Unnecessary Litigation Act also promotes effective solutions to the malpractice crisis by making malpractice awards obtained through binding, voluntary arbitration tax-free. crisis Introducing The Freedom From Unnecessary Litigation Act 27 June 2005    2005 Ron Paul 77:3 The malpractice crisis has contributed to the closing of a maternity ward in Philadelphia and a trauma center in Nevada. Meanwhile, earlier this year, surgeons in West Virginia walked off the job to protest increasing liability rates. These are a few of the examples of how access to quality health care is jeopardized by the epidemic of large (and medically questionable) malpractice awards, and the resulting increase in insurance rates. crisis Introducing The Freedom From Unnecessary Litigation Act 27 June 2005    2005 Ron Paul 77:4 As is typical of Washington, most of the proposed solutions to the malpractice problem involve unconstitutional usurpations of areas best left to the states. These solutions also ignore the root cause of the litigation crisis: the shift away from treating the doctor-patient relationship as a contractual one to viewing it as one governed by regulations imposed by insurance company functionaries, politicians, government bureaucrats, and trial lawyers. There is no reason why questions of the assessment of liability and compensation cannot be determined by a private contractual agreement between physicians and patients. The Freedom from Unnecessary Litigation Act is designed to take a step toward resolving these problems through private contracts. crisis The Coming Category 5 Financial Hurricane September 15, 2005    2005 Ron Paul 98:4 We face a coming financial crisis. Our current account deficit is more than $600 billion annually. Our foreign debt is more than $3 trillion. Foreigners now own over $1.4 trillion of our Treasury and mortgage debt. We must borrow $3 billion from foreigners every business day to maintain our extravagant spending. Our national debt now is increasing $600 billion per year, and guess what, we print over $600 billion per year to keep the charade going. But there is a limit and I’m fearful we’re fast approaching it. crisis The Blame Game December 7, 2005    2005 Ron Paul 124:5 The American people are becoming more aware of the serious crisis this country faces. Their deep concern is reflected in the current mood in Congress. The recent debate over Iraq shows the parties are now looking for someone to blame for the mess we’re in. It’s a high stakes political game. The fact that a majority of both parties and their leadership endorsed the war, and accept the same approach toward Iran and Syria, does nothing to tone down the accusatory nature of the current blame game. crisis The Blame Game December 7, 2005    2005 Ron Paul 124:22 By limiting the debate to technical points over intelligence, strategy, the number of troops, and how to get out of the mess, we ignore our continued policy of sanctions, threats, and intimidation of Iraq’s neighbors, Iran and Syria. Even as Congress pretends to argue about how or when we might come home, leaders from both parties continue to support the policy of spreading the war by precipitating a crisis with these two countries. crisis Foreign Policy 17 December 2005    2005 Ron Paul 128:5 The American people are becoming more aware of the serious crisis this country faces. Their deep concern is reflected in the current mood in Congress. The recent debate over Iraq shows the parties are now looking for someone to blame for the mess we are in. It is a high-stakes political game. The fact that a majority of both parties and their leadership endorsed the war and accept the same approach towards Syria and Iran does nothing to tone down the accusatory nature of the current blame game. crisis Foreign Policy 17 December 2005    2005 Ron Paul 128:23 We need to think more about how to avoid these military encounters rather than dwelling on the complications that result when we meddle in the affairs of others with no moral or legal authority to do so. We need less blame game and more reflection about the root cause of our aggressive foreign policy. By limiting the debate to technical points over intelligence, strategy, the number of troops and how to get out of the mess, we ignore our continued policy of sanctions, threats and intimidation of Iraqi neighbors, Iran and Syria. Even as Congress pretends to argue about how or when we might come home, leaders from both parties continue to support the policy of spreading the war by precipitating a crisis with these two countries. The likelihood of agreeing about who deliberately or innocently misled Congress, the media and the American people is virtually nil. Maybe historians at a later date will sort out the whole mess. The debate over tactics and diplomacy will go on, but that only serves to distract from the important issue of policy. Few today in Congress are interested in changing from our current accepted policy of intervention to one of strategic independence. No nation building, no policing the world, no dangerous alliances. But the result of this latest military incursion into a foreign country should not be ignored. Those who dwell on pragmatic matters should pay close attention to the result so far. crisis The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:66 It has prompted urgent proposals of suggested reforms to deal with the mess. If only we had more rules and regulations, more reporting requirements and stricter enforcement of laws, the American people will be assured we mean business. Ethics and character will return to the Halls of Congress. It is argued that new champions of reform should be elected to leadership positions to show how serious we are about dealing with the crisis of confidence generated by the Abramoff affair. Then all will be well. crisis The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:67 But it is not so simple. Maybe what we have seen so far is just the tip of the iceberg and the insidious crisis staring us in the face that we refuse to properly identify and deal with. crisis The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:68 It has been suggested we need to change course and correct the way Congress is run. A good idea, but if we merely tinker with current attitudes about what role the Federal Government ought to play in our lives, it won’t do much to solve the ethics crisis. crisis The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:74 The steady erosion of real wealth in this country and the dependency on government generated by welfare-ism and warfare-ism presents itself as the crisis of the ages. Lobbying scandals and the need for new leadership are mere symptoms of a much, much deeper problem. crisis Debt Addiction 1 March 2006    2006 Ron Paul 6:6 Largesse at home and militarism abroad requires excessive spending and taxation, pushing deficits to a point where the whole system collapses. The biggest recent collapse was the fall of the Soviet Empire just 15 years ago. My contention is that we are not immune from a similar crisis. Today, our national debt is $8.257 trillion. Interestingly, the legal debt limit is $8.184 trillion. crisis Tribute To Harry Browne 15 March 2006    2006 Ron Paul 16:3 Harry’s third book, You Can Profit from a Monetary Crisis, reached number one on the New York Times bestseller list. Other popular books by Harry include How I Found Freedom in an Unfree World, The Great Libertarian Offer, and Why Government Doesn’t Work. I was pleased to write the foreword for one of Harry’s books, Liberty A–Z: Libertarian Soundbites You Can Use Right Now, a collection of direct, thought-provoking, and often humorous responses to the questions advocates of the freedom philosophy face. crisis Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:21 Evidently, we did not buy the argument that his oil supplies precluded a need for civilian nuclear energy. From 1953 to 1979, his authoritarian rule served to incite a radical opposition led by the Ayatollah Khomeini who overthrew the Shah and took our hostages in 1979. This blow-back event was slow in coming, but Muslims have long memories. The hostage crisis and overthrow of the Shah by the Ayatollah was a major victory for the radical Islamists. Most Americans either never knew about or easily forgot about our unwise meddling in the internal affairs in Iran in 1953. crisis Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:39 Bankers who benefit from our fractional reserve system likewise never criticize the Fed, especially since it is the lender of last resort that bails out financial institutions when crises arise. It is true, special interest and bankers do benefit from the Fed and may well get bailed out, just as we saw with the long-term capital management fund crisis a few years ago. crisis Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:45 Foreign policy contributes to the crisis when the spending to maintain our worldwide military commitments become prohibitive, and inflationary pressures accelerate. But the real crisis hits when the world realizes the king has no clothes in that the dollar has no backing, and we face a military setback even greater than we already are experiencing in Iraq. Our token friends may quickly transform into vocal enemies once the attack on the dollar begins. crisis Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:46 False trust placed in the dollar once was helpful to us, but panic and rejection of the dollar will develop into a real financial crisis. Then we will have no other option but to tighten our belts, go back to work, stop borrowing, start saving, and rebuild our industrial base while adjusting to a lower standard of living for most Americans. Counterfeiting the Nation’s money is a serious offense. crisis Resolution To Finish Job In Iraq 16 June 2006    2006 Ron Paul 45:4 We are not taking a radical approach. It is a very modest approach, a very mild approach. The reason that there was not a vote on our amendment is that we would have won. So this entire exercise is designed for politics. And men are dying. Women are dying! And we’re going broke — we spend $300 million every single day in Iraq, at the same time programs here at home are being denied. So we’re going to have a financial crisis, and we’ll have a political crisis. crisis Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:76 The military-industrial complex we were warned about has been transformed into a military-media-industrial-government complex that is capable of silencing the dissenters and cheerleading for war. It’s only after years of failure that people are able to overcome the propaganda for war and pressure their representatives in Congress to stop the needless killing. Many times the economic costs of war stir people to demand an end. This time around the war might be brought to a halt by our actual inability to pay the bills due to a dollar crisis. A dollar crisis will make borrowing 2.5 billion dollars per day from foreign powers like China and Japan virtually impossible, at least at affordable interest rates. crisis Whom to Blame 19 July 2006    2006 Ron Paul 66:2 Mr. Speaker, there has been a lot of accusations made about who precipitated the crisis, the charges made that it all occurred because three prisoners were taken, and that Hezbollah and Hamas deliberately provoked the situation. And it may well be true. I have no idea exactly what is true. crisis Whom to Blame 19 July 2006    2006 Ron Paul 66:3 But there are others who have indicated that they believe that it was precipitated mainly with the intent of our foreign policy, along with Israel’s foreign policy, as an initial step to go into Iran. We have talked about Iran around the House and around Washington, and there are a lot of people very, very concerned. Our administration talks about it all the time; taking out Iran, taking out the nuclear sites. But to do that, the theory is that these missiles had to be removed and, in a practical military sense, that seems very reasonable. So there could be the deliberateness of Hamas and Hezbollah precipitating the crisis for whatever gain they think, or deliberately precipitated by both the United States and Israel with the intent to follow up with bombing in Iran. And I am frightened about that. I think that may well occur. crisis Whom to Blame 19 July 2006    2006 Ron Paul 66:8 As soon as this crisis built, we heard very similar comments. Let’s go to Iran, you know, to go forward. crisis Whom to Blame 19 July 2006    2006 Ron Paul 66:9 There are others who suggest that this crisis has come about not out of our strength, but out of our weakness. If Hezbollah and Hamas has deliberately done this, they might have calculated we have been stretched fairly thin around the world and with Iraq, and know that a lot of the American people and the taxpayers are getting tired of the war, so they may have seen this as a sign of weakness on our part. But then the “neocons” say, yeah, that may well be true, that is why we have to be tougher than ever. We have got to unleash the bombs. We have got to consider nuclear weapons, and back and forth and back and forth, until one day we are going to get ourselves in such a fix that World War III will be here and it will be irrevocable. crisis Whom to Blame 19 July 2006    2006 Ron Paul 66:25 So we are moving toward a major crisis, a major crisis financially and a major crisis in our foreign policy. I don’t believe we can maintain this. crisis Whom to Blame 19 July 2006    2006 Ron Paul 66:28 So we are facing a crisis that is liable to escalate and get out of control in the Middle East. At the same time, it has a bearing on our finances, because when it contributes to the deficit, there is a limit to how much foreigners will loan to us. We have to print the money. We have to go to the Fed, create new money. That is the inflation. crisis Whom to Blame 19 July 2006    2006 Ron Paul 66:30 What happens if this happens to be true? I actually pray that I am completely wrong about this. And you can say, well, you are, so don’t sweat it. But what if I am right? It is frightening, because if this leads to bombing in Iran, look for oil at $150 a barrel. Then the American people will wake up. They will say, hey, what’s going on here? Why is gasoline so expensive? It is expensive because we have less production out of Iraq, and it is expensive because the value of the dollar is going down. And it is expensive because they are anticipating that this crisis is not going away, and what we do are antagonizing the world. crisis Whom to Blame 19 July 2006    2006 Ron Paul 66:38 And we are running our program, whether it is our domestic welfare program or our foreign policy, it is being run on borrowed money. It is borrowed money from overseas, and it is also from inflated currency. And we can get away with it for a while longer, but let me tell you, there is a crisis coming, and it is going to be dealing with the dollar and it is going to involve our foreign policy. And then we will, as a sign of weakness, we will have to come home. We will have to come home because we can’t afford the empire. It is not wise to have it, and we should have more confidence and more belief that what we have in this country, and what America used to stand for, that we should spread that message more by setting an example and through a voluntary approach. And when that time comes, I think that maybe more people will reconsider it. crisis Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:36 Instead, history shows it was the war that caused the 20th Century to be the most war-torn century in all of history. Our entry into World War I helped lead us into World War II, the Cold War, the Korean War and the Vietnam War. Even our current crisis in the Middle East can be traced to the great wars of the 20th Century. crisis Congressional Medal Of Honor For The Dalai Lama 13 September 2006    2006 Ron Paul 78:6 “When September 11 happened, the next day I wrote a letter to President Bush as a friend — because I know him personally. I wrote this letter and expressed, besides my condolences and sadness, a countermeasure to this tragedy: a nonviolent response because that would have been more effective. So this is my stance. And then just before the Iraq crisis started, millions of people from countries like Australia and America expressed their opposition to violence. I really admired and appreciated this.” crisis Introduction Of The Taxpayer Protection From Frivolous Litigation Act 28 September 2006    2006 Ron Paul 92:3 Frivolous lawsuits and the accompanying increase in malpractice insurance payments have driven many physicians out of medical practice. The malpractice crisis has further increased the cost of health care by forcing physicians to practice defensive medicine. While most malpractice reform issues are properly addressed at the state level, Congress does have a duty to act to protect physicians from frivolous lawsuits stemming from cases involving federally funded programs or federal mandates. After all, these programs already impose tremendous costs on physicians. For example, Medicare imposes so many rules and regulations on health care providers that the Medicare code is actually larger than the infamous tax code! crisis Milton Friedman 6 December 2006    2006 Ron Paul 100:1 Mr. PAUL. Mr. Speaker, I am pleased to support H. Res. 1089, a resolution honoring Milton Friedman. Milton Friedman was one of America’s greatest champions of liberty. Launching a career as a public intellectual at a time when dissenters from the reigning Keynesian paradigm where viewed as the equivalent of members of the Flat Earth Society, Milton Friedman waged an oftentimes lonely intellectual battle on behalf of free markets and individual liberty in the fifties and sixties. As the economic crisis of the seventies caused by high taxes, high spending, and inflation vindicated Friedman’s critiques of interventionism, his influence grew — not because he moved to the mainstream but because the mainstream moved toward him. Friedman served as an advisor to Presidents Nixon and Ford and as a member of President Reagan’s Council of Economic Advisors. In 1976, Friedman was awarded the Nobel Prize in economics. crisis Mr. Bush, Meet Walter Jones 17 January 2007    2007 Ron Paul 18:16 Biden sputters that should Bush attack Iran, a constitutional crisis would ensue. crisis The Real Reason To Oppose The Supplemental Appropriation 20 March 2007    2007 Ron Paul 36:14 Sadly, we are playing into their hands. This $124 billion appropriation is only part of the nearly $1 trillion in military spending for this year’s budget alone. We should be concerned about the coming bankruptcy and the crisis facing the U.S. dollar. crisis In The Name Of Patriotism (Who Are The Patriots?) 22 May 2007    2007 Ron Paul 55:14 Because the crisis atmosphere of war supports the growth of the state, any problem invites an answer by declaring war, even on social and economic issues. This elicits patriotism in support of various government solutions, while enhancing the power of the state. Faith in government coercion and a lack of understanding of how free societies operate encourages big government liberals and big government conservatives to manufacture a war psychology to demand political loyalty for domestic policy just as is required in foreign affairs. crisis In The Name Of Patriotism (Who Are The Patriots?) 22 May 2007    2007 Ron Paul 55:22 If there is a war going on, supporting the state’s effort to win the war is expected at all costs, no dissent. The real problem is that those who love the state too often advocate policies that lead to military action. At home, they are quite willing to produce a crisis atmosphere and claim a war is needed to solve the problem. Under these conditions, the people are more willing to bear the burden of paying for the war and to carelessly sacrifice liberties which they are told is necessary. crisis In The Name Of Patriotism (Who Are The Patriots?) 22 May 2007    2007 Ron Paul 55:32 These errors in judgment in understanding the motive of the enemy and the constant fear that is generated have brought us to this crisis where our civil liberties and privacy are being steadily eroded in the name of preserving national security. crisis Remembering Dr. Hans Sennholz 27 June 2007    2007 Ron Paul 72:2 Dr. Sennholz was born on February 3, 1922 in Germany in the midst of the German hyperinflation crisis and experienced firsthand the Great Depression and the horrors of Hitler’s dictatorship. After receiving his master’s degree from the University of Marburg and a doctorate in political science from the University of Cologne, Dr. Sennholz received a Ph.D. in economics at New York University, where he studied under the Austrian economist Ludwig von Mises. crisis Introducing The Comprehensive Health Care Act 2 August 2007    2007 Ron Paul 86:1 Mr. PAUL. Madam Speaker, America faces a crisis in health care. Health care costs continue to rise, leaving many Americans unable to afford health insurance, while those with health care coverage, and their physicians, struggle under the control of managed-care “gatekeepers.” Obviously, fundamental health care reform should be one of Congress’ top priorities. crisis Introduction Of The Freedom From Unnecessary Litigation Act 2 August 2007    2007 Ron Paul 87:2 Relying on negative outcomes insurance instead of litigation will also reduce the costs imposed on physicians, other health care providers, and hospitals by malpractice litigation. The Freedom from Unnecessary Litigation Act also promotes effective solutions to the malpractice crisis by making malpractice awards obtained through binding, voluntary arbitration tax-free. crisis Introduction Of The Freedom From Unnecessary Litigation Act 2 August 2007    2007 Ron Paul 87:3 The malpractice crisis has contributed to the closing of a maternity ward in Philadelphia and a trauma center in Nevada. Meanwhile, earlier this year, surgeons in West Virginia walked off the job to protest increasing liability rates. These are a few of the examples of how access to quality health care is jeopardized by the epidemic of large (and medically questionable) malpractice awards, and the resulting increase in insurance rates. crisis Introduction Of The Freedom From Unnecessary Litigation Act 2 August 2007    2007 Ron Paul 87:4 As is typical of Washington, most of the proposed solutions to the malpractice problem involve unconstitutional usurpations of areas best left to the States. These solutions also ignore the root cause of the litigation crisis: the shift away from treating the doctor-patient relationship as a contractual one to viewing it as one governed by regulations imposed by insurance company functionaries, politicians, government bureaucrats, and trial lawyers. There is no reason why questions of the assessment of liability and compensation cannot be determined by a private contractual agreement between physicians and patients. The Freedom from Unnecessary Litigation Act is designed to take a step toward resolving these problems through private contracts. crisis Statement before the Financial Services Committee 20 September 2007    2007 Ron Paul 93:1 Mr. Chairman, the situation facing us now in the mortgage industry has its roots in the Federal Reserve's inflationary monetary policy. Without addressing the roots of the current crisis, any measures undertaken to improve the situation will be doomed to fail. crisis Statement Before the Joint Economic Committee 8 November 2007    2007 Ron Paul 103:1 Mr. Chairman, our economy finds itself in a precarious state. Oil prices are rising, gold is nearing all-time highs, and the dollar is nearing all-time lows. The root of this crisis, as with past financial and economic crises, results from federal government intervention into the economy, not to anything endemic to the market, nor to the the actions of market participants. crisis “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. crisis Foreign Government Investment in the U.S. Economy and Financial Sector March 5, 2008    2008 Ron Paul 11:4 Rather than bemoaning the fact that foreign governments are using their dollars to purchase stakes in American companies, we should welcome the stability that such investment is bringing to our economy. While I am reluctant as anyone in this room to involve any government in any sort of intervention into the market, the fact remains that without injections of capital from foreign wealth funds the results of the subprime crisis would have been far worse for many financial firms. Even now we read that Citigroup, despite the massive funding it has received from sovereign wealth funds, is in danger of collapse unless it receives additional funding. crisis Hearing on “The Economic Outlook” April 2, 2008    2008 Ron Paul 18:7 The business cycle, contrary to what Secretary Paulson and others seem to believe, is not endemic to the free market. It is always and everywhere the result of monetary inflation and subsequent malinvestment, which when it is discovered must of necessity be liquidated in order for a true recovery to occur. Delaying the liquidation will only prolong the crisis and ensure that the next crisis will be more severe. crisis Statement on H Res 1194, “Reaffirming the support of the House of Representatives for the legitimate, democratically-elected Government of Lebanon under Prime Minister Fouad Siniora.” May 20, 2008    2008 Ron Paul 30:4 Mr. Speaker, the Arab League has been mediating the conflict between rival political factions in Lebanon and has had some success in halting the recent violence. Currently, negotiations are taking place in Qatar between the Lebanese factions and some slow but encouraging progress is being made. Regional actors—who do have an interest in the conflict —have stepped up in attempt to diffuse the crisis and reach a peaceful solution. Yet at the critical stage of negotiations the U.S. House is preparing to pass a very confrontational resolution endorsing one side and condemning competing factions. In threatening to use “all appropriate actions” to support one faction, the United States is providing a strong disincentive for that one faction to continue peaceful negotiations. Passing this resolution will most likely contribute to a return of violence in Lebanon. crisis DO NOT BELIEVE THE U.S. FEAR FACTOR PROPAGANDA AS IT RELATES TO OUR FOREIGN POLICY 26 June 2008    2008 Ron Paul 40:4 And in the last several weeks, if not for months now, we have heard a lot of talk about the potentiality of Israel and/or the United States bombing Iran. And it is in the marketplace, and it’s being bid up. The energy crisis is being bid up because of this fear. It’s been predicted if bombs start dropping, that you’re going to see energy prices double or triple. It’s just the thought of it right now that helps to push these prices, the price of energy, up. And that is a very real thing going on right now. But to me, it’s almost like de´ja` vu all over again, as has been said. crisis Statement: “Something Big is Happening” 9 July 2008    2008 Ron Paul 42:8 There are reasons to believe this coming crisis is different and bigger than the world has ever experienced. Instead of using globalism in a positive fashion, it’s been used to globalize all of the mistakes of the politicians, bureaucrats and central bankers. crisis Statement: “Something Big is Happening” 9 July 2008    2008 Ron Paul 42:10 The financial crisis, still in its early stages, is apparent to everyone: gasoline prices over $4 a gallon; skyrocketing education and medical-care costs; the collapse of the housing bubble; the bursting of the NASDAQ bubble; stock markets plunging; unemployment rising; massive underemployment; excessive government debt; and unmanageable personal debt. Little doubt exists as to whether we’ll get stagflation. The question that will soon be asked is: When will the stagflation become an inflationary depression? crisis Statement: “Something Big is Happening” 9 July 2008    2008 Ron Paul 42:17 Printing dollars over long periods of time may not immediately push prices up — yet in time it always does. Now we’re seeing catch-up for past inflating of the monetary supply. As bad as it is today with $4 a gallon gasoline, this is just the beginning. It’s a gross distraction to hound away at “drill, drill, drill” as a solution to the dollar crisis and high gasoline prices. Its okay to let the market increase supplies and drill, but that issue is a gross distraction from the sins of deficits and Federal Reserve monetary shenanigans. crisis Statement: “Something Big is Happening” 9 July 2008    2008 Ron Paul 42:19 This time — since there are so many dollars and so many countries involved — the Fed has been able to “paper” over every approaching crisis for the past 15 years, especially with Alan Greenspan as Chairman of the Federal Reserve Board, which has allowed the bubble to become history’s greatest. crisis 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. crisis UNTITLED 23 July 2008    2008 Ron Paul 47:4 But today we have a bill before us that does a lot more than just bail out the mortgage company. I think there are some impositions in this bill that we ought to be concerned about. There is a Federal registry in here to register anybody in the broker industry. And if you work in the industry, you will be fingerprinted. Now, let me guarantee you one thing: we didn’t get into this crisis because the people who work in the mortgage industries weren’t fingerprinted. We got into this crisis because of a monetary system and a system of laws that encourage the very bubble that we are dealing with today. If we don’t deal with the creation of bubbles, you can’t solve the problem by more of the same thing. We created this problem with inflation; you can’t solve it with more inflation. crisis Statement on HR 3221 July 24, 2008    2008 Ron Paul 48:1 Madam Speaker, For several years, followers of the Austrian school of economics have warned that unless Congress moved to end the implicit government guarantee of Fannie Mae and Freddie Mac, and took other steps to disengage the US Government from the housing market, America would face a crisis in housing. This crisis would force Congress to chose between authorizing a taxpayer bailout of Fannie and Freddie, and other measures increasing government’s involvement in housing, or restoring a free-market in housing by ending government support for Fannie and Freddie and repealing all laws that interfere in housing. The bursting of the housing bubble, and the recent near-collapse in investor support for Fannie and Freddie has proven my fellow Austrians correct. Unfortunately, but not surprisingly, instead of ending the prior interventions in the housing market that are responsible for the current crisis, Congress is increasing the level of government intervention in the housing market. This is the equivalent of giving a drug addict another fix, which will only make the necessary withdrawal more painful. crisis Statement on HR 3221 July 24, 2008    2008 Ron Paul 48:5 Finally, HR 3221 increases the federal debt limit by $800 billion. We are told that CBO has scored this bill at a cost of $25 billion, but this debt limit increase belies that. The Federal Reserve has already propped up the housing and financial markets to the tune of over $300 billion, and this raise of the debt limit indicates that the cost of this newest bailout will likely be even more costly. I am dismayed that my colleagues have not learned the lessons of the Patriot Act and Sarbanes-Oxley. Massive bills passed in knee-jerk reaction to crisis events will always be poorly written, burdensome and expensive to taxpayers, and destructive of liberty. crisis HOUSING AND ECONOMIC RECOVERY ACT OF 2008 25 July 2008    2008 Ron Paul 52:1 Mr. PAUL. Mr. Speaker, for several years, followers of the Austrian school of economics have warned that unless Congress moved to end the implicit Government guarantee of Fannie Mae and Freddie Mac, and took other steps to disengage the U.S. Government from the housing market, America would face a crisis in housing. This crisis would force Congress to chose between authorizing a taxpayer bailout of Fannie and Freddie, and other measures increasing Government’s involvement in housing, or restoring a free market in housing by ending Government support for Fannie and Freddie and repealing all laws that interfere in housing. The bursting of the housing bubble, and the recent near-collapse in investor support for Fannie and Freddie has proven my fellow Austrians correct. Unfortunately, but not surprisingly, instead of ending the prior interventions in the housing market that are responsible for the current crisis, Congress is increasing the level of Government intervention in the housing market. This is the equivalent of giving a drug addict another fix, which will only make the necessary withdrawal more painful. crisis HOUSING AND ECONOMIC RECOVERY ACT OF 2008 25 July 2008    2008 Ron Paul 52:5 Finally, H.R. 3221 increases the Federal debt limit by $800 billion. We are told that CBO has scored this bill at a cost of $25 billion, but this debt limit increase belies that. The Federal Reserve has already propped up the housing and financial markets to the tune of over $300 billion, and this raise of the debt limit indicates that the cost of this newest bailout will likely be even more costly. I am dismayed that my colleagues have not learned the lessons of the PATRIOT Act and Sarbanes- Oxley. Massive bills passed in knee- jerk reaction to crisis events will always be poorly written, burdensome and expensive to taxpayers, and destructive of liberty. crisis “The Future of Financial Services: Exploring Solutions for the Market Crisis” September 24, 2008    2008 Ron Paul 59:5 The only viable solution to this financial crisis is to keep the government from intervening any further. The Federal Reserve has already loaned hundreds of billions of dollars through its numerous lending facilities, and the Congress has passed legislation authorizing further hundreds of billions of dollars to bail out Fannie and Freddie, yet each successive crisis event seems to be advertised as larger and more severe than the previous one. It is time that this Congress put its foot down, reject the administration’s proposal, and allow the bust to work itself out so that our economic hangover is not as severe as it might otherwise be. crisis “The Bailout” September 29, 2008    2008 Ron Paul 65:10 Indeed, we do face a major crisis, but it is much bigger than the freezing up of Wall Street and dealing with worthless assets on the books of major banks. The true crisis is the pending collapse of the fiat dollar system that emerged after the breakdown of the Bretton Woods agreement in 1971. crisis “The Bailout” September 29, 2008    2008 Ron Paul 65:14 Just imagine the results if a construction company was forced to use a yardstick whose measures changed daily to construct a skyscraper. The result would be a very unstable and dangerous building. No doubt the construction company would try to cover up their fundamental problem with patchwork repairs, but no amount of patchwork can fix a building with an unstable inner structure. Eventually, the skyscraper will collapse, forcing the construction company to rebuild—hopefully this time with a stable yardstick. This $700 billion package is more patchwork repair and will prove to be money down a rat hole and will only make the dollar crisis that much worse. crisis “The Bailout” September 29, 2008    2008 Ron Paul 65:19 It is bad economic policy—By refusing to address the monetary system while continuing to place the burdens of the bailout on the dollar, we can be certain that in time, we will be faced with another, more severe crisis when the market figures out that there is no magic government bailout or regulation that can make a fraudulent monetary system work. crisis Statement on HR 1424 October 3, 2008    2008 Ron Paul 67:3 One of the most dangerous effects of this bailout is the incredibly elevated risk of moral hazard in the future. The worst performing financial services firms, even those who have been taken over by the government or have filed for bankruptcy, will find all of their poor decision-making rewarded. What incentive do Wall Street firms or any other large concerns have to make sound financial decisions, now that they see the federal government bailing out private companies to the tune of trillions of dollars? As Congress did with the legislation authorizing the Fannie and Freddie bailout, it proposes a solution that exacerbates and encourages the problematic behavior that led to this crisis in the first place. crisis Statement on HR 1424 October 3, 2008    2008 Ron Paul 67:6 As usual, Congress has show itself to be reactive rather than proactive. For years, many people have been warning about the housing bubble and the inevitable bust. Congress ignored the impending storm, and responded to this crisis with a poorly thought-out piece of legislation that will only further harm the economy. We ought to be ashamed. crisis 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. crisis The Austrians Are Right November 20, 2008    2008 Ron Paul 71:1 Madame Speaker, many Americans are hoping the new administration will solve the economic problems we face. That’s not likely to happen, because the economic advisors to the new President have no more understanding of how to get us out of this mess than previous administrations and Congresses understood how the crisis was brought about in the first place. crisis The Austrians Are Right November 20, 2008    2008 Ron Paul 71:3 Today, a major economic crisis is unfolding. New government programs are started daily, and future plans are being made for even more. All are based on the belief that we’re in this mess because free-market capitalism and sound money failed. The obsession is with more spending, bailouts of bad investments, more debt, and further dollar debasement. Many are saying we need an international answer to our problems with the establishment of a world central bank and a single fiat reserve currency. These suggestions are merely more of the same policies that created our mess and are doomed to fail. crisis 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. crisis The Austrians Are Right November 20, 2008    2008 Ron Paul 71:11 Who’s being ignored? The Austrian free-market economists—the very ones who predicted not only the Great Depression, but the calamity we’re dealing with today. If the crisis was predictable and is explainable, why did no one listen? It’s because too many politicians believed that a free lunch was possible and a new economic paradigm had arrived. But we’ve heard that one before — like the philosopher’s stone that could turn lead into gold. Prosperity without work is a dream of the ages. crisis The Austrians Are Right November 20, 2008    2008 Ron Paul 71:13 The policies of big-government proponents are running out of steam. Their policies have failed and will continue to fail. Merely doing more of what caused the crisis can hardly provide a solution. crisis The Austrians Are Right November 20, 2008    2008 Ron Paul 71:15 The basic problem is that proponents of big government require a central bank in order to surreptitiously pay bills without direct taxation. Printing needed money delays the payment. Raising taxes would reveal the true cost of big government, and the people would revolt. But the piper will be paid, and that’s what this crisis is all about. crisis LIVING BENEATH OUR MEANS January 21, 2009    2009 Ron Paul 10:9 This crisis we’re in is destined to get much worse because the real cause is not acknowledged. Not only are the corrections delayed and distorted, additional problems are yet to be dealt with – the commercial property bubble, the insolvent retirement funds, both private and public, state finances, and the university trust funds. For all these problems, only massive currency inflation is offered by the Fed. The real concern ought to be for a dollar crisis, which will come if we don’t change our ways. crisis More Spending Isn’t The Answer January 22, 2009    2009 Ron Paul 11:2 Actually, we should have talked more about prevention of a problem like we have today than trying to deal with the financial cancer that we are dealing with. But the prevention could have come many decades ago. And many free-market economists predicted, even decades ago, that we would have a crisis like this. But those warnings were not heeded, and even in the last 10 years there have been dire warnings by people who believe in sound money and not in the inflationary system that we have that we will come to this point. crisis More Spending Isn’t The Answer January 22, 2009    2009 Ron Paul 11:3 Over those decades we were able to bail out to a degree and patch over and keep the financial bubble going. But today, we are in a massive deflationary crisis, and we only have two choices. One is to continue to do what we are doing: inflate more, spend more, and run up more deficits. But it doesn’t seem to be working because it won’t work because the confidence has been lost. The confidence in the post- Bretton Woods system of the dollar fiat standard, it is gone. This whole effort to refinance in this manner just won’t work. crisis FEDERAL RESERVE BOARD ABOLITION ACT February 3, 2009    2009 Ron Paul 14:2 From the Great Depression, to the stagflation of the seventies, to the current economic crisis caused by the housing bubble, every economic downturn suffered by this country over the past century can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts. crisis FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:1 Mr. PAUL. Mr. Speaker, the Federal Reserve is the culprit; it has delivered this crisis to us. The Federal Reserve’s low interest rate policy is a big mistake; it is not a panacea. crisis Humphrey-Hawkins Hearing Statement February 25, 2009    2009 Ron Paul 18:2 We find ourselves mired in the deepest economic crisis to afflict this country since the Great Depression. Yet, despite the failure of all the interventionist efforts to date to do anything to improve the economy, each week seems to bring new proposals for yet more bailouts, more funding facilities, and more of the same discredited Keynesian ideas. There are still relatively few policymakers who understand the roots of the current crisis in the Federal Reserve’s monetary policy. No one in government is willing to take the blame, instead we transfer it onto others. We blame the crisis on greedy bankers and mortgage lenders, on the Chinese for being too thrifty and providing us with capital, or on consumers who aren’t spending as much as the government thinks they should. crisis Humphrey-Hawkins Hearing Statement February 25, 2009    2009 Ron Paul 18:5 Chairman Bernanke and others in positions of authority seem to gloss over these systemic instabilities and assume an excessively rosy outlook on the economy. I believe we are at another major economic crossroad, where the global financial system will have to be fundamentally rethought. The post-Bretton Woods dollar standard system has proven remarkably resilient, lasting longer than the gold-exchange system which preceded it, but the current economic crisis has illustrated the unsustainability of the current dollar-based system. To think that the economy will begin to recover by the end of this year is absurd. The dollar’s supposed strength exists only because of the weakness of other currencies. The Fed’s increase of the monetary base and establishment of “temporary” funding facilities has set the stage for hyperinflation, and it remains to be seen what results. crisis THE END IS NOT NEAR March 4, 2009    2009 Ron Paul 21:6 Our presence will serve as an incentive for al Qaeda to grow in numbers and motivate more suicide bombers. An indefinite presence, whether in Iraq, Afghanistan, or Pakistan, will continue to drain our financial resources, undermine our national defense, demoralize our military and exacerbate our financial crisis. All this will be welcomed by Osama Bin Laden, just as he planned it. It’s actually more than he had hoped for. crisis THE END IS NOT NEAR March 4, 2009    2009 Ron Paul 21:9 Our military prowess, backed by a nuclear arsenal, will not suffice in overcoming the tragedy of a currency crisis. Soviet nukes did not preserve its empire or the communist economy. crisis 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. crisis INTRODUCTION OF BILLS TO HELP THE UNEMPLOYED March 4, 2009    2009 Ron Paul 22:3 Madam Speaker, while we may disagree about the best solutions to the economic crisis gripping the nation, I hope my colleagues will at least agree on these commonsense measures and cosponsor the Unemployed Tax Relief Act and the Unemployment Assistance Act. crisis COMPREHENSIVE HEALTH CARE REFORM ACT March 12, 2009    2009 Ron Paul 28:1 Mr. PAUL. Madam Speaker, America faces a crisis in health care. Health care costs continue to rise while physicians and patients struggle under the control of managed-care “gatekeepers.” Obviously, fundamental health care reform should be one of Congress’ top priorities. crisis INTRODUCTION OF THE FREEDOM FROM UNNECESSARY LITIGATION ACT March 12, 2009    2009 Ron Paul 32:2 Relying on negative outcomes insurance instead of litigation will also reduce the costs imposed on physicians, other health care providers, and hospitals by malpractice litigation. The Freedom from Unnecessary Litigation Act also promotes effective solutions to the malpractice crisis by making malpractice awards obtained through binding, voluntary arbitration tax-free. crisis INTRODUCTION OF THE FREEDOM FROM UNNECESSARY LITIGATION ACT March 12, 2009    2009 Ron Paul 32:3 The malpractice crisis has contributed to the closing of a maternity ward in Philadelphia and a trauma center in Nevada. Several years ago, surgeons in West Virginia actually walked away from their jobs to protest increasing liability rates. These are a few of the examples of how access to quality health care is jeopardized by the epidemic of large, and medically questionable, malpractice awards, and the resulting increase in insurance rates. crisis INTRODUCTION OF THE FREEDOM FROM UNNECESSARY LITIGATION ACT March 12, 2009    2009 Ron Paul 32:4 As is typical of Washington, most of the proposed solutions to the malpractice problem involve unconstitutional usurpations of areas best left to the states. These solutions also ignore the root cause of the litigation crisis: the shift away from treating the doctor-patient relationship as a contractual one to viewing it as one governed by regulations imposed by insurance company functionaries, politicians, government bureaucrats, and trial lawyers. There is no reason why questions of the assessment of liability and compensation cannot be determined by a private contractual agreement between physicians and patients. The Freedom from Unnecessary Litigation Act is designed to take a step toward resolving these problems through private contracts. crisis Statement on Comprehensive Healthcare Reform Act March 26, 2009    2009 Ron Paul 39:1 Madame Speaker, America faces a crisis in health care. Health care costs continue to rise while physicians and patients struggle under the control of managed-care “gatekeepers.” Obviously, fundamental health care reform should be one of Congress’ top priorities. crisis Federal Reserve Monetizes Debt April 1, 2009    2009 Ron Paul 41:3 You know, they say so often that there is not enough bipartisanship around here. We hear that complaint a lot of time. But, you know, when I look at it, I see that there’s been too much bipartisanship in creating the problem we have had. And it hasn’t been the last – this crisis that we’re in the midst of, this financial crisis, didn’t pop up here in the last 60 days. It didn’t pop up here in the last 8 years, but it’s taken several decades to get to this point where we are today dealing with a budget that is just totally out of control and a monetary and economic system that is uncontrollable as well. crisis Federal Reserve Monetizes Debt April 1, 2009    2009 Ron Paul 41:20 And let me just close by saying the greatest danger I see right now is the placing of the blame for the crisis that we’re in is that we had too much freedom, too much capitalism, not enough regulation. And they did this in the 1930s. They are doing it even more now. crisis AMERICA’S TREASURY IS BARE May 14, 2009    2009 Ron Paul 54:3 It was very disappointing that even though it was a closed rule, the minority had one chance to do something about it and maybe reduce some of the spending. But lo and behold, when that amendment was offered, it was offered to increase the spending by $2.9 billion. There was a lot of expression of the outcry about this spending and the deficits we have and the deficits exploding and the Social Security, Medicare, Medicaid underfunded, and we are in the midst of a crisis. But it doesn’t seem to bother anybody about spending. But the truth is, the Treasury is bare. The Treasury is empty. And yet we continue to spend all this money. crisis AMERICA’S TREASURY IS BARE May 14, 2009    2009 Ron Paul 54:8 What about the financial calamity that is coming? I’m afraid this is the way this will end, through another financial crisis much bigger than the one we currently have, because you can’t create $2 trillion of new money every year and expect this system to continue. crisis MISTAKES: JUST A FEW! June 3, 2009    2009 Ron Paul 63:1 Mr. PAUL. Mr. Speaker, in the last few years in interviews on the economy, I’ve been asked what I would do if I were in charge. In answering the question, I usually started with explaining the errors we made that gave us the crisis. The interviewer frequently responded by saying that he wasn’t interested in the cause of the problems, only what we should do now to correct it. This is a typical attitude in Washington, but we cannot expect correct policies to be implemented if we don’t understand the cause of the crisis. Instead, we have pursued all the wrong policies. Let me list a few mistakes we have made. crisis MISTAKES: JUST A FEW! June 3, 2009    2009 Ron Paul 63:2 We have failed to recognize the true cause of the crisis. Instead, free markets and not enough regulations and central economic planning have been blamed. crisis MISTAKES: JUST A FEW! June 3, 2009    2009 Ron Paul 63:3 We continue to listen to and give too much credibility to the very people who caused the crisis and failed to predict the onset. crisis MISTAKES: JUST A FEW! June 3, 2009    2009 Ron Paul 63:16 The policies required to provide a solution to this catastrophic crisis we face are available. We must apply a precise philosophy of liberty along with respect for private property ownership, free markets, voluntary contracts enforced by law and free minds. crisis Statement on War Supplemental Appropriations June 16, 2009    2009 Ron Paul 67:3 As Americans struggle through the worst economic downturn since the Great Depression, this emergency supplemental appropriations bill sends billions of dollars overseas as foreign aid. Included in this appropriation is $660 million for Gaza, $555 million for Israel, $310 million for Egypt, $300 million for Jordan, and $420 million for Mexico. Some $889 million will be sent to the United Nations for “peacekeeping” missions. Almost one billion dollars will be sent overseas to address the global financial crisis outside our borders and nearly $8 billion will be spent to address a “potential pandemic flu.” crisis Statement Opposing Resolution on Iran June 19, 2009    2009 Ron Paul 72:10 Establishing a diplomatic dialogue with the Government of Iran and deepening relationships with the Iranian people will only help foster greater understanding between the people of Iran and the people of the United States and would enhance the stability the security of the Persian Gulf region. Furthering President Obama’s approach toward continued engagement will reduce the increased threat of the proliferation or use of nuclear weapons in the region, while advancing other U.S. foreign policy objectives in the region. The significance of establishing and sustaining diplomatic relations with Iran cannot be over-emphasized. Avoidance and military intervention cannot be the means through which we resolve this looming crisis. crisis 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. crisis 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. crisis 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. crisis 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. crisis 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. crisis 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. crisis THE BIG GUNS HAVE LINED UP AGAINST H.R. 1207 July 30, 2009    2009 Ron Paul 88:5 Fed sychophants argue that an audit would destroy the financial market’s faith in the Fed. They say this in the midst of the greatest financial crisis in history, brought on by none other than the Federal Reserve. In fact, Chairman Bernanke stated on November 14, 2007, that “a considerable amount of evidence indicates that central bank transparency increases the effectiveness of monetary policy and enhances economic and financial performance.” crisis TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:4 The Federal Reserve’s monetary inflation, indeed, does push the CPI upward, but concentrating on the government’s reports of the CPI and the PPI is nothing more than the distraction from the other harm done by the Federal Reserve’s effort at central economic planning through secret monetary policy operations. Real inflation, the expansion of our money supply, is greatly undercounted by these indices. In response to our latest financial crisis, the Federal Reserve turned on its printing press and literally doubled the monetary base. This staggering creation of dollars has yet to be reflected in many consumer prices, but will ultimately hit the middle class and poor with a cruel devaluation of their savings and real earnings. crisis TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:5 The Fed has clearly failed on its mandate to maintain full employment and price stability. It’s time to find out what’s going on. Instead of assuming responsibility for the Fed’s role in the crisis, Bernanke brags about, “arresting” the crisis. crisis TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:7 What he does not recognize – nor does he want to admit – is that he is talking about symptoms while ignoring the source of the crisis: the Federal Reserve itself. More regulations will never compensate for all the distortion and excesses caused by monetary inflation and artificially low interest rates. Regulation distracts from the real cause while further interfering with the market forces, thus guaranteeing that the recession will become much deeper and prolonged. crisis TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:9 My bill, H.R. 1207, has nothing to do with interference with monetary policy. This was explicitly stated in the amendment voted on in the Financial Services Committee. Bernanke’s argument for protecting the independence of the Fed is his argument for protecting the secrecy of the Fed. Chairman Bernanke concludes that “America needs a strong” – think cartel – “nonpolitical” – think Goldman Sachs – “and independent” – think secret – “central bank with the tools to promote financial stability, in the midst of a horrendous financial crisis, and to help steer our economy to recovery without inflation.” Texas Straight Talk crisis Asian economic crisis result of suppressed liberty 25 May 1998    Texas Straight Talk 25 May 1998 verse 1 ... Cached Asian economic crisis result of suppressed liberty crisis Asian economic crisis result of suppressed liberty 25 May 1998    Texas Straight Talk 25 May 1998 verse 6 ... Cached The crisis in Indonesia is the predictable consequence of decades of monetary inflation. Timing, severity, and duration of the correction, is unpredictable. These depend on political perceptions, the day's realities, subsequent economic policies, and the citizenry's reaction to the escalating events. The issue of trust in the future and concerns for personal liberties greatly influences the outcome, as well. Even a false trust, or an ill-founded sense of security from an authoritarian leader, can alter the immediate consequences of economic malaise, but it cannot prevent the inevitable collapse, as is occurring slowly in the more peaceful Japan and rapidly and violently in Indonesia. crisis Asian economic crisis result of suppressed liberty 25 May 1998    Texas Straight Talk 25 May 1998 verse 10 ... Cached Any serious economic crisis eventually generates political turmoil, especially if political dissent has been held in check by force for any significant period of time. It should be no surprise to see blood in the streets of Jakarta. But instead of these circumstances leading to freedom, many are inviting marshal law for the purpose of restoring stability--with all the dangers that go with increased restrictions on liberty. Sadly, errors in economic thinking often prompts demands for more government programs to `take care' of the rapidly growing number of poor. crisis Asian economic crisis result of suppressed liberty 25 May 1998    Texas Straight Talk 25 May 1998 verse 11 ... Cached Further, international efforts to prop-up an ailing economy after the financial bubble has popped prolongs the agony and increases the severity of the correction. Restoration of free markets, including the establishment of a sound monetary policy, has not yet been considered though those are the only real solutions. The people of Indonesia and the rest of the world should prepare for the worst as this crisis spreads. crisis Asian economic crisis result of suppressed liberty 25 May 1998    Texas Straight Talk 25 May 1998 verse 13 ... Cached The philosophy of the free market holds the solution to the exploding East Asian crisis, yet few are willing to consider the philosophy of liberty. crisis Asian economic crisis result of suppressed liberty 25 May 1998    Texas Straight Talk 25 May 1998 verse 14 ... Cached Concern for liberty is not a subject associated with economic crisis and is in fact an ongoing casualty of past and current policy. A greater concern for the philosophy of liberty - whether it is the "personal liberty" of the individual or freedom in the marketplace - is required if a positive outcome is to be expected from the Indonesian crisis. crisis The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 2 ... Cached World-wide crisis points to need for sound policies crisis The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 3 ... Cached A financial crisis is griping the world. It may yet prove to be the worst in all of history, but the source of the problem is not a mystery. It is a currency induced crisis. crisis The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 6 ... Cached The current crisis signals an end of an era and it does not bode well for anyone. crisis 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. crisis For sake of Rule of Law, Congress must proceed 28 September 1998    Texas Straight Talk 28 September 1998 verse 16 ... Cached Some claim this situation creates a "constitutional crisis" and an "embarrassment." A crisis will develop only if we, as a nation, reject the Rule of Law, and embarrassment will result only if we forego constitutional hearings. crisis Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 2 ... Cached Economic crisis looms crisis Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 5 ... Cached A world-wide system of fiat money is the root of the crisis. The post-World War II Bretton Woods gold-exchange system was seriously flawed, and free market economists from the start predicted its demise. Twenty-seven years later, on August 15, 1971, it ended with a bang ushering in the turbulent and commodity-driven inflation of the 1970s. crisis Draft not needed for protection of liberty 23 August 1999    Texas Straight Talk 23 August 1999 verse 7 ... Cached In fact, any crisis that might warrant a draft most likely will not have a front, as was demonstrated in the recent action against Yugoslavia. Pilots flying high-tech planes dropped bombs on targets selected with the aid of orbiting satellites and directed by computer technicians thousands of miles distant. crisis The New Year 10 January 2000    Texas Straight Talk 10 January 2000 verse 5 ... Cached The media blames Y2K scaremongers and alarmists for the concern for a computer-driven crisis. But for several months, official government announcements urging citizens to prepare for Y2K with extra cash and extra home provisions played a part in the fear that some Americans felt. These warnings for the most part were sincere, but there was obviously some ignorance by most of the "experts" on what would really happen. crisis 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." crisis 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. crisis 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. crisis How Americans are Subsidizing Organized Crime in Russia 06 March 2000    Texas Straight Talk 06 March 2000 verse 10 ... Cached Our FBI agents will carry guns and be permitted to make arrests. The Hungarian government will have no say about the employees who work in the office. Can one imagine what the reaction would be in the United States if a foreign country wanted to do the same thing here? The FBI is anxious to make this mission a success because they want to set up similar offices in the Baltic States, Nigeria, and South Africa. This is a foolhardy adventure and a recipe for disaster. The procedures for sharing information and coordinating police activities in dealing with international criminals has been used for a long time, but this bold move is sure to offend many. And when some accident occurs it will lead to an unnecessary international crisis. crisis How Americans are Subsidizing Organized Crime in Russia 06 March 2000    Texas Straight Talk 06 March 2000 verse 12 ... Cached Unfortunately, this bold move of an overseas FBI office will go unnoticed in Washington DC, and the politicians will not address the subject until a major crisis erupts. A constitutional approach to government would preclude this type of international adventurism. The president should have never ordered this project. And Congress, if it cared and assumed its responsibilities, would quickly de-fund it. The quicker the better. crisis Turn Out the Lights 15 January 2001    Texas Straight Talk 15 January 2001 verse 5 ... Cached As frightening as this development may be to Americans who believe in free markets, it was not unexpected. California has faced severe energy shortages for more than a year. Residents and businesses in the state have seen dramatic increases in their monthly electric bills, with some paying 200% more than a year ago. Shortages and blackouts are threatened. In response to this crisis, California Governor Gray Davis has become an increasingly vocal proponent of an outright socialist energy system for the nation's largest state. He decided (not surprisingly) to go to the Feds for help, resulting in the meeting with Energy secretary Bill Richardson and Treasury secretary Larry Summers, among others. crisis Turn Out the Lights 15 January 2001    Texas Straight Talk 15 January 2001 verse 7 ... Cached Governor Davis, seemingly oblivious to the real problem (his own government), has accused California's electricity companies of "price gouging," and called for stricter price controls. He even threatened (chillingly) to seize the assets of utility companies if they do not lower prices. Ultimately, he wants a new state agency to control the entire industry and even build new power plants if necessary! (new plants apparently are OK if the government builds them). Davis exhibits the classic bureaucratic cycle: first the government creates the crisis, which is blamed on the free market, and then more government is justified to fix the crisis. crisis Turn Out the Lights 15 January 2001    Texas Straight Talk 15 January 2001 verse 9 ... Cached To politicians like Davis, only the government can save us. Like most politicians, he apparently accepts the myth that some goods and services are too vital to be left to the free market. However, it is precisely because energy is so vital that the government should not interfere in the electricity market. The operation of the market does not create a utopia, but it clearly would have prevented the California crisis. When the price rises in a free market, consumers simply use less energy (which supposedly is the goal of the "environmentalists"). When growth creates greater demand in a free market, the supply of energy increases to meet that demand. These simple principles, which are obvious to anyone studying basic economics, should be clear to the likes of Davis and Richardson. The likely explanation is that their true goal is the expansion of government power, without regard to the well-being of the people of California. crisis Spy Plane Incident Shows a Need for New Policies 23 April 2001    Texas Straight Talk 23 April 2001 verse 4 ... Cached Thankfully, our airmen and women were returned safely. I applaud President Bush for his sober approach to the crisis. Certainly he felt strong pressure from both the media and many in his own administration to take military action against the Chinese. Yet he remained focused on the safe return of the crew, which had to be his first priority. I commend him for not further risking their lives to bolster his own political stature. crisis Don't Blame the Free Market for Energy Shortages 21 May 2001    Texas Straight Talk 21 May 2001 verse 3 ... Cached Political pressure is mounting in Washington as gas prices rise and the California electricity shortage worsens. The national media and politicians from both parties have irresponsibly characterized the situation as an energy "crisis,"thereby generating public support for further unconstitutional and unwise federal intervention in energy markets. Washington appears to have accepted full responsibility for the California problem; hence the one-sided debate centers around a supposed need for a national energy policy. The obvious implication is that the federal government must play nanny to California or any other state which finds itself facing shortages caused by its own bad policies. Never mind that California caused its own problems by restricting supply and freezing energy prices while the population skyrocketed. The real danger is that the federal government may repeat California's mistakes on a national level, subjecting the rest of the nation to similar shortages. The true crisis facing us is not a physical shortage of energy, but rather the looming threat that socialist economic planning will replace market mechanisms and cause unnecessary shortages. crisis Statement on the Congressional Authorization of the Use of Force 17 September 2001    Texas Straight Talk 17 September 2001 verse 11 ... Cached Too often over the last several decades we have supported both sides of many wars only to find ourselves needlessly entrenched in conflicts unrelated to our national security. It is not unheard of that the weapons and support we send to foreign nations have ended up being used against us. The current crisis may well be another example of such a mishap. crisis Statement on the Congressional Authorization of the Use of Force 17 September 2001    Texas Straight Talk 17 September 2001 verse 14 ... Cached Mr. Speaker we must rally behind our president, pray for him to make wise decisions, and hope that this crisis is resolved a lot sooner than is now anticipated. crisis Business as Usual in Washington? 29 October 2001    Texas Straight Talk 29 October 2001 verse 10 ... Cached Any talk of spending restraints is now a thing of the past. Countless groups have descended on Washington with their hands out. As usual with any disaster, this crisis is being parlayed into an "opportunity," as one former big-spending member of congress phrased it. The economic crisis that started a long time before 9/11 has swollen the ranks of those now demanding federal handouts. crisis Can Freedom be Exchanged for Security? 26 November 2001    Texas Straight Talk 26 November 2001 verse 3 ... Cached It's easy for elected officials in Washington to tell the American people that the government will do whatever it takes to defeat terrorism. Such assurances inevitably are followed by proposals either to restrict the constitutional liberties of the American people or spend vast sums from the federal treasury. The history of the 20th century shows that the Constitution is violated most often by Congress during times of crisis; accordingly, most of our worst unconstitutional agencies and programs began during the two world wars and the Depression. Ironically, the Constitution itself was conceived in a time of great crisis. The founders intended its provision to place inviolable restrictions on what the federal government could do even in times of great distress. America must guard against current calls for government to violate the Constitution- break the law- in the name of law enforcement. crisis Can Freedom be Exchanged for Security? 26 November 2001    Texas Straight Talk 26 November 2001 verse 4 ... Cached The"anti-terrorism" legislation recently passed by Congress demonstrates how well-meaning politicians make shortsighted mistakes in a rush to respond to a crisis. Most of its provisions were never carefully studied by Congress, nor was sufficient time taken to debate the bill despite its importance. No testimony was heard from privacy experts or others from fields outside of law enforcement. Normal congressional committee and hearing processes were suspended. In fact, the final version of the bill was not made available to members before the vote! These political games should not be tolerated by the American public, especially when precious freedoms are at stake. crisis Terrorism and the Expansion of Federal Power 10 December 2001    Texas Straight Talk 10 December 2001 verse 5 ... Cached Americans face an internal threat every bit as dangerous as foreign terrorists: the loss of domestic freedoms. Every 20th century crisis- two great wars and a decade-long economic depression- led to rapid expansions of the federal government. The cycle is always the same, with temporary crises used to justify permanent new laws, agencies, and programs. crisis Stimulus or Spending? 24 December 2001    Texas Straight Talk 24 December 2001 verse 7 ... Cached Liberty-minded Americans must continue their efforts to change the climate in Washington. It is still possible for tax cuts to be enacted in 2002; unfortunately, it appears the Senate won't act until the economy gets even worse. This is unfortunate, because a deeper recession could be avoided with some obvious steps. An elimination of corporate income taxes would immediately spur job growth. Despite the claims of the class warriors, corporate income taxes are paid by all of us in the form of higher prices for goods and services. A capital gains cut for individuals, coupled with a significant decrease in marginal tax rates, would cause a huge increase in investment. Such measures would represent real stimulus; our hardworking and entrepreneurial citizens would do the rest. The American people should not wait for a severe economic crisis before they demand that the government cut taxes and return needed capital to the legitimate private economy. crisis Peace and Prosperity in 2002? 31 December 2001    Texas Straight Talk 31 December 2001 verse 5 ... Cached Prosperity at home can only be achieved if we do not allow government to engage in the kind of runaway spending that marked the final months of 2001. Congress allowed terrorism to serve as an excuse for billions in special interest spending that had little or nothing to do with September 11th or fighting terrorism. The fiscal year 2002 budget, already bloated with billions of dollars in unnecessary and counterproductive spending before September 11th, has become a grab bag for every group or industry seeking a handout. Several federal agencies and bureaucracies needlessly receive more funding than originally requested by President Bush. Dangerous foreign aid spending also grows next year, sending more of your tax dollars overseas to fund dubious regimes that often later become our enemies- the Taliban being a poignant example. Congress cannot continue to increase spending each year and expect tax revenues to keep pace. Deficit spending and tax increases will be the inevitable consequences. No reasonable person can argue that our current $2 trillion budget does not contain huge amounts of special interest spending that can and should be cut by Congress, especially when we are confronted with terrorist threats and an economic crisis. crisis Argentine Default and the IMF 14 January 2002    Texas Straight Talk 14 January 2002 verse 6 ... Cached In truth, Congress funds the IMF because of the corporate interests it subsidizes. The huge multinational banks and corporations love the IMF. Big banks used IMF funds- taxpayer funds- to bail themselves out from billions in losses after the Asian financial crisis. Big corporations obtain lucrative contracts for a wide variety of construction projects funded with IMF loans. It's a familiar game in Washington, with corporate welfare disguised as compassion for the poor. crisis Optimism or Pessimism for the Future of Liberty? 11 February 2002    Texas Straight Talk 11 February 2002 verse 4 ... Cached No one challenges the need to protect American citizens from further terrorist attacks, but we must be very careful before we relinquish more of our personal liberty here at home. We must consider whether our efforts overseas might escalate the crisis and actually precipitate more violence. A growing number of Americans are becoming concerned that the war on terror will have the unintended consequence of permanently damaging our constitutionally protected liberties. crisis Optimism or Pessimism for the Future of Liberty? 11 February 2002    Texas Straight Talk 11 February 2002 verse 5 ... Cached In the area of personal liberty, we face some very real dangers. Throughout our history, starting with the Civil War, our liberties have been threatened and the Constitution has been flaunted. Our government has grown with each national crisis, curtailing many freedoms in the process. The current war on terrorism has no easily defined enemy, and no real end in sight. This means that a return to normalcy with regard to our freedoms is not likely. The implementation of a national ID card, pervasive government surveillance, rubber-stamped search warrants, and the loss of financial and medical privacy will be permanent. If this trend continues, the Constitution will become a much weaker document. crisis Predictions for an Unwritten Future 29 April 2002    Texas Straight Talk 29 April 2002 verse 18 ... Cached An international dollar crisis will dramatically boost interest rates in the United States. crisis 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. crisis Welfare for the Left, Welfare for the Right, Welfare for the World 03 February 2003    Texas Straight Talk 03 February 2003 verse 8 ... Cached I say “supposedly” because the money never really helps, and almost always ends up in the hands of dictators, corrupt government officials, or thuggish leaders of local factions. We could send $100 or $500 billion, and Africa would remain mired in AIDS and poverty. Only freedom, property rights, capitalism, and the rule of law can help Africa. The AIDS crisis cannot be solved by government, but rather requires a combination of truly independent private sector medical research and politically incorrect prevention efforts. Americans are the most charitable people on earth, and we should stop taxing them so much and allow private charities, including charities aimed at combating AIDS, to flourish. crisis Counting on Social Security? 17 February 2003    Texas Straight Talk 17 February 2003 verse 3 ... Cached Still, the problem seems vague and faraway for most. Today’s seniors hope the system will hold together for the remainder of their lives, while younger working people hope government will somehow fix things before they retire. Not surprisingly, Congress doesn’t want to face the problem until it becomes an acute crisis. It’s hard to sell voters on austerity today to avoid a relatively distant problem. Politicians usually operate on the opposite principle, by promising great things now and leaving the bills for others to pay later. crisis The Myth of War Prosperity 10 March 2003    Texas Straight Talk 10 March 2003 verse 8 ... Cached The greatest economic cost of war, however, comes from the expansion in the size and scope of government. Government always grows during wars and other crises. As economist Murray Rothbard noted, government uses crises to “Engineer the great leaps forward,” in the size of the state. When the crisis ends, government never returns to its former size. As government expands, individual liberty necessarily shrinks. True prosperity cannot exist without individual liberty and its corollaries of limited government, property rights, and free markets. Ultimately, war leaves us with less freedom at home. The sad irony is that while our soldiers have fought for the freedom of Europe, Korea, Vietnam, Kuwait, and Iraq, the government uses war to steadily diminish freedom here at home. While we fight a war in Iraq, we must also fight to maintain and restore individual liberty in America. crisis The Free-Market Approach to the Medical Malpractice Crisis 31 March 2003    Texas Straight Talk 31 March 2003 verse 1 ... Cached The Free-Market Approach to the Medical Malpractice Crisis crisis The Free-Market Approach to the Medical Malpractice Crisis 31 March 2003    Texas Straight Talk 31 March 2003 verse 2 ... Cached I’ve spent nearly four decades practicing medicine as an obstetrician, and I’ve seen firsthand how the cost of medical malpractice insurance has risen. Among doctors, malpractice costs truly represent a crisis that threatens the economic viability of the profession. crisis The Free-Market Approach to the Medical Malpractice Crisis 31 March 2003    Texas Straight Talk 31 March 2003 verse 6 ... Cached The federal approach also ignores the root cause of the malpractice crisis: the shift away from treating the doctor-patient relationship as a contract to viewing it as one governed by federal regulations. The third-party payer system, largely the result of federal tax laws and the HMO Act of 1973, invites insurance company functionaries, politicians, government bureaucrats, and trial lawyers into the equation. This destroys the patient’s incentive to keep costs down, because he feels he is part of “the system” and someone else pays the bill. In other words, the costs of medical care have been socialized, even though HMOs are ostensibly private businesses. crisis War Profiteers 07 April 2003    Texas Straight Talk 07 April 2003 verse 4 ... Cached We must understand that America is in a financial crisis. Tax revenues are down due to the faltering economy, but congressional spending has exploded by more than 22% in just two years. As a result, annual deficits have risen rapidly, and the national debt now approaches 6.5 trillion dollars. Almost all of this new spending has been completely unrelated to homeland defense or national security concerns. The same old failed domestic agencies and special-interest pork programs have received the bulk of the dollars. While Congress should fund constitutional federal functions like national defense, our very solvency as a nation is being threatened by unconstitutional spending. crisis War and Red Ink 15 September 2003    Texas Straight Talk 15 September 2003 verse 7 ... Cached For many in Washington it simply does not matter whether the cause is Iraq, the war on terror, or any other perceived crisis. Any justification to expand the state is welcomed by politicians, lobbyists, and special interests alike. Before we spend a borrowed fortune in Iraq, we might remember the words of General Douglas MacArthur: crisis 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. crisis Lessons from the California Recall 13 October 2003    Texas Straight Talk 13 October 2003 verse 6 ... Cached The crisis in Sacramento should serve as a cautionary tale for all Americans. Legislators in statehouses across the country and in Washington lack the political will to cut spending. They consistently spend more each year, without regard to revenues. If the process goes on too long, government becomes insolvent, unable to tax or borrow enough to satisfy its voracious appetite. It could happen in your state, and it is happening in Washington. It’s worse in DC, however, because Federal Reserve printing presses help our national politicians temporarily evade reality. If Congress continues to spend and print dollars at the pace of recent years, however, the devaluation of our currency will make all of us poorer for decades to come. crisis Congress Cannot Be Appointed 26 January 2004    Texas Straight Talk 26 January 2004 verse 7 ... Cached To quote Charles Rice, a distinguished Professor Emeritus at Notre Dame Law School, “When it is not necessary to amend the Constitution, it is necessary not to amend the Constitution.” We must not allow the fear of terrorism to compel us to abandon our existing institutions-- including an elected House. The Constitution is our best ally in times of relative crisis, and it is precisely during such times we should adhere to it rather than rush to amend it. crisis Spending and Lying 02 February 2004    Texas Straight Talk 02 February 2004 verse 7 ... Cached Faced with a severe budget crisis, the federal government should do what any family or business would do in similar circumstances: drastically reduce spending and sell off assets. It is preposterous that the federal budget has more than doubled just since 1990, and surely the republic would survive a return to 1995 or 2000 spending levels. Furthermore, the government owns trillions of dollars worth of land and other assets, assets that should be sold to pay off the mounting national debt. Why should additional debt and new taxes be forced upon the American people to pay for government sins, especially when the spendthrift politicians have substantial assets at their disposal? crisis Freedom vs. Security: A False Choice 31 May 2004    Texas Straight Talk 31 May 2004 verse 4 ... Cached It's easy for elected officials in Washington to tell Americans that government will do whatever it takes to defeat terrorism, but it’s your freedom and your tax dollars at stake- not theirs. The history of the 20th century demonstrates that the Constitution is violated most egregiously during times of crisis. Many of our worst unconstitutional agencies and programs began during the two world wars and the Depression, when the public was anxious and willing to view government as a savior and protector. Ironically, the Constitution itself was conceived in a time of great crisis. The founders intended to place inviolable restrictions on what the federal government could do even in times of great distress. America must guard against current calls for government to violate the Constitution- meaning break the law- in the name of law enforcement. crisis Torture, War, and Presidential Powers 14 June 2004    Texas Straight Talk 14 June 2004 verse 6 ... Cached It is precisely during times of relative crisis that we should adhere most closely to the Constitution, not abandon it. War does not justify the suspension of torture laws any more than it justifies the suspension of murder laws, the suspension of due process, or the suspension of the Second amendment. crisis The IMF Con 27 September 2004    Texas Straight Talk 27 September 2004 verse 5 ... Cached The real purpose of the IMF is to channel tax dollars to politically-connected companies. The huge multinational banks and corporations in particular love the IMF, as both used IMF funds-- taxpayer funds-- to bail themselves out from billions in losses after the Asian financial crisis. Big corporations obtain lucrative contracts for a wide variety of construction projects funded with IMF loans. It's a familiar game in Washington, where corporate welfare is disguised as compassion for the poor. crisis Social Security: House of Cards 08 November 2004    Texas Straight Talk 08 November 2004 verse 3 ... Cached President Bush should be commended for promising to address the looming Social Security crisis during his second term, a crisis that Congress and successive presidents have ignored for decades. Hopefully Americans will realize that the notion of Social Security as an insurance program is a lie, and that Congress has not put their Social Security contributions into any trust fund. crisis Social Security: House of Cards 08 November 2004    Texas Straight Talk 08 November 2004 verse 5 ... Cached Seniors hope the system will hold together for the remainder of their lives, while younger working people hope government will somehow fix things before they retire. Not surprisingly, Congress has chosen to ignore the problem until it becomes acute. It’s hard to sell voters on austerity today to avoid a relatively distant crisis. Politicians usually operate on the opposite principle, by promising great things now and leaving the bills for others to pay later. crisis Social Security: House of Cards 08 November 2004    Texas Straight Talk 08 November 2004 verse 9 ... Cached The Social Security crisis is a spending crisis. The program could be saved tomorrow if Congress simply would stop spending so much money, apply even 10% of the bloated federal budget to a real trust fund, and begin saving your contributions to earn simple interest. That this simple approach seems impossible speaks volumes about the inability of Congress to cut spending no matter what the circumstances. crisis 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. crisis New Rules, Same Game 23 January 2006    Texas Straight Talk 23 January 2006 verse 8 ... Cached The dependency on government generated by welfarism and warfarism, made possible by our shift from a republican to a democratic system of government, is the real scandal of the ages. If we merely tinker with current attitudes about the role of the federal government in our lives, it won’t do much to solve the ethics crisis. True reform is impossible without addressing the immorality of wealth redistribution. crisis Avoiding War with Iran 22 May 2006    Texas Straight Talk 22 May 2006 verse 6 ... Cached The US has not used diplomacy with Iran for nearly 26 years, since the hostage crisis of the Carter era. But this “no negotiation” stance hasn’t worked: Iran’s defiant behavior continues, and its uranium enrichment program has not been dismantled. crisis Federal Reserve Policy Destroys the Value of Your Savings 10 July 2006    Texas Straight Talk 10 July 2006 verse 7 ... Cached The coming dollar crisis is not likely to be “fixed” by politicians who are unwilling to make hard choices, admit mistakes, and spend less money. Demographic trends will place even greater demands on Congress to maintain benefits for millions of older Americans who are dependent on the federal government. crisis 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. crisis Lowering the Cost of Health Care 21 August 2006    Texas Straight Talk 21 August 2006 verse 12 ... Cached HR 3078 is commonsense, compassionate legislation for those suffering from cancer or other terminal illnesses. The sad reality is that many patients battling serious illnesses will never collect Social Security benefits-- yet they continue to pay into the Social Security system. When facing a medical crisis, those patients need every extra dollar to pay for medical care, travel, and family matters. HR 3078 waives the employee portion of Social Security payroll taxes (or self-employment taxes) for individuals with documented serious illnesses or cancer. It also suspends Social Security taxes for primary caregivers with a sick spouse or child. There is no justification or excuse for collecting Social Security taxes from sick individuals who literally are fighting for their lives. crisis Deficit Spending and Social Security 09 October 2006    Texas Straight Talk 09 October 2006 verse 4 ... Cached Still, the problem seems vague and faraway for most. Today’s seniors hope the system will hold together for the remainder of their lives, while younger working people hope government will somehow fix things before they retire. Not surprisingly, Congress doesn’t want to face the problem until it becomes an acute crisis. It’s hard to sell voters on austerity today to avoid a relatively distant problem. Politicians usually operate on the opposite principle, by promising great things now and leaving the bills for others to pay later. crisis Immigration ‘Compromise’ Sells Out Our Sovereignty 25 May 2007    Texas Straight Talk 25 May 2007 verse 4 ... Cached The much-vaunted Senate “compromise” on immigration is a compromise alright: a compromise of our laws, a compromise of our sovereignty, and a compromise of the Second Amendment. That anyone in Washington believes this is a credible approach to solving our immigration crisis suggests just how out of touch our political elites really are. crisis Keeping Promises to Seniors 07 October 2007    Texas Straight Talk 07 October 2007 verse 7 ... Cached When that day of reckoning comes, there will no longer be “excess” payroll tax receipts available to prop up government spending, and the risk of financial crisis will be significant. Instead of forward thinking solutions, politicians are discussing alarming proposals, such as an agreement with Mexico to let their citizens collect social security money intended for our seniors. This would break the bank even sooner. But, current Members of Congress will no longer be in office to face the wrath of seniors and their families when the trust fund goes bankrupt. Instead, they will be retired and enjoying their own plush Congressional pensions. crisis On the Omnibus Spending Bill 23 December 2007    Texas Straight Talk 23 December 2007 verse 7 ... Cached If this is Washington’s idea of the spirit of Christmas and charity then it is a sick joke. This holiday season we should be more concerned about the less fortunate here in our own country. People are facing the possibility of losing their homes because of a mortgage crisis brought on by inflation, businesses are being pushed into bankruptcy by a burdensome regulatory state, and the tax code makes it hard for many people to afford basics like medical care, gasoline, and educational expenses for their children. crisis 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. crisis Economic Stimulus Concerns 27 January 2008    Texas Straight Talk 27 January 2008 verse 2 ... Cached This past week in Washington there has been much talk about the economy. It seems by their actions the leadership and the Fed is finally willing to admit we have a problem, and we need to do something about the economic mess we are in. This is a good thing. However, they are still not being honest about the root cause of our impending crisis and want to deal only with symptoms, not the disease. crisis If We Subsidize Them... 17 February 2008    Texas Straight Talk 17 February 2008 verse 2 ... Cached For decades we have welcomed new immigrants to our American "melting pot". We respect those who come here peacefully to pursue their American Dream. But Americans have noticed lately that modern problems associated with illegal immigration are at a crisis point. Taxpayers are now suffering the consequences. crisis Bailing Out Banks 13 April 2008    Texas Straight Talk 13 April 2008 verse 3 ... Cached The current market crisis began because of Federal Reserve monetary policy during the early 2000s in which the Fed lowered the interest rate to a below-market rate. The artificially low rates led to overinvestment in housing and other malinvestments. When the first indications of market trouble began back in August of 2007, instead of holding back and allowing bad decision-makers to suffer the consequences of their actions, the Federal Reserve took aggressive, inflationary action to ensure that large Wall Street firms would not lose money. It began by lowering the discount rates, the rates of interest charged to banks who borrow directly from the Fed, and lengthening the terms of such loans. This eliminated much of the stigma from discount window borrowing and enabled troubled banks to come to the Fed directly for funding, pay only a slightly higher interest rate but also secure these loans for a period longer than just overnight. crisis Bailing Out Banks 13 April 2008    Texas Straight Talk 13 April 2008 verse 7 ... Cached Worst of all, the Treasury Department has recently proposed that the Federal Reserve, which was responsible for the housing bubble and subprime crisis in the first place, be rewarded for all its intervention by being turned into a super-regulator. The Treasury foresees the Fed as the guarantor of market stability, with oversight over any financial institution that could pose a threat to the financial system. Rewarding poor performing financial institutions is bad enough, but rewarding the institution that enabled the current economic crisis is unconscionable. crisis Big Government Responsible for Housing Bubble 11 May 2008    Texas Straight Talk 11 May 2008 verse 4 ... Cached These housing bills address the crisis in exactly the wrong way, by seeking to hide the problem with more disastrous government bail-outs and interventions. One measure, HR 5830 the Federal Housing Administration (FHA) Housing Stabilization and Homeowner Retention Act would allow the FHA to guarantee as much as $300 billion worth of refinanced home loans for those facing threat of foreclosure. HR 5818 the Neighborhood Stabilization Act, would provide $15 billion in loans and grants to localities to purchase and renovate foreclosed homes with the object of then selling or renting out those homes. Thankfully, President Bush has vowed to veto both of these bills. It is neither morally right nor fiscally wise to socialize private losses in this way. crisis Big Government Responsible for Housing Bubble 11 May 2008    Texas Straight Talk 11 May 2008 verse 5 ... Cached The solution is for government to stop micromanaging the economy and let the market adjust, as painful as that will be for some. We should not force taxpayers, including renters and more frugal homeowners, to switch places with the speculators and take on those same risks that bankrupted them. It is a terrible idea to spread the financial crisis any wider or deeper than it already is, and to prolong the agony years into the future. Socializing the losses now will only create more unintended consequences that will give new excuses for further government interventions in the future. This is how government grows - by claiming to correct the mistakes it earlier created, all the while constantly shaking down the taxpayer. The market needs a chance to correct itself, and Congress needs to avoid making the situation worse by pretending to ride to the rescue. 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.