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U.S. Rep. Ron Paul interest Book of Ron Paul interest State Of The Republic 28 January 1998    1998 Ron Paul 2:8 Protecting personal liberties in any society is always more difficult during war. The uniformity of opinion in Congress is enshrined with the common cliches that no one thinks through, like foreign policy is bipartisan; only the President can formulate foreign policy; we must support the troops and, therefore, of course, the war, which is usually illegal and unwise but cannot be challenged; we are the only world’s superpower; we must protect our interests like oil. However, it is never admitted, although most know, our policy is designed to promote the military industrial complex and world government. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:24 The large majority of House Members claim they want our troops out of Bosnia. Yet the President gets all the funding he wants. The Members of Congress get credit at home for paying lip service to a U.S. policy of less intervention, while the majority continue to support the troops, the President, the military industrial complex, and the special interests who drive our foreign policy, demanding more funding while risking the lives, property, peace, and liberty of American citizens. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:36 American interests around the world could best be served by friendship and trade with all who would be friends, and subsidies to none. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:51 All these rosy projections are dependent on economic strength, steady low interest rates, and no supplemental appropriations. Every session of Congress gets supplementals, and if the economy takes a downturn, the higher the appropriation. interest 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. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:67 Long-term, the average American citizen suffers through higher interest rates, rising prices, recessions and lower standard of living, but the cause and effect is conveniently hidden from the public and the Congress. interest 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. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:74 But when push comes to shove, the markets always win out. Interest rates are less than one percent in Japan, but have not prompted borrowers to come forth nor bankers to lend. The proposed $25 billion injection by the Bank of Japan will not solve the problem either. Even central bankers cannot push on a string. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:88 Public relation debates. Oftentimes the big debates in Congress are more public relation efforts than debates on real issues. This is certainly true when it comes to preventing foreign aid funds from being used by any organization for abortions. I agree with and vote for all attempts to curtail the use of U.S. taxpayers’ funds for abortion within or outside the United States. But many in the pro-life movement are not interested in just denying all birth control, population control and abortion money to everyone, and avoid the very controversial effort to impose our will on other nations. Believing money allocated to any organization or country is not fungible is naive, to say the least. The biggest problem is that many who are sincerely right to life and believe the Mexico City language restriction on foreign aid will work are also philosophic believers in internationalism, both social and military. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:95 But there are many other programs precisely designed to satisfy the special interests of big business. A casual observer that might think the political party that champions the needs of the poor would not be getting political and financial support from the rich. But quite clearly, both parties are very willing to receive financial and political support from special interests representing the rich and the poor, business and labor, domestic and foreign. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:96 We should not expect campaign reform are reliable revelations of campaign fund-raising abuse in today’s political climate. There are strong bipartisan reasons to keep the debate on only a superficial level. All the rules in the world will never eliminate the motivation or the ability of the powerful special interests to influence Congress. Loopholes and illegal contributions will plague us for as long as Congress continues with the power to regulate, tax, or detax, or punishes essentially everyone participating in the economy. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:97 The most we can ever hope for is to demand full disclosure. Then, if influence is bought, at least it would be in the open. The other most difficult task, and the only thing that will ever dampen special interest control of government, would be to radically reduce the power of Congress over our lives and our economy. Taxpayer funding of campaigns would prove disastrous. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:98 The special areas of the budget that are of specific benefit to corporate America are literally too numerous to count, but there are some special programs benefiting corporations that usually prompt unconditional support from both parties. The military industrial complex is clearly recognized for its influence in Washington. This same group has a vested interest in our foreign policy that encourages policing the world, Nation building, and foreign social engineering. Big contracts are given to friendly corporations in places like Haiti, Bosnia and the Persian Gulf region. Corporations benefiting from these programs are unable to deal objectively with foreign policy issues, and it is not unusual for these same corporate leaders to lobby for troop deployments in worldwide military intervention. The U.S. remains the world’s top arms manufacturer and our foreign policy permits the exports to world customers subsidized through the Export-Import Bank. Foreign aid, Overseas Private Investment Corporation, Export-Import Bank, IMF, World Bank, development banks are all used to continue bailouts of Third World countries heavily invested in by our corporations and banks. Corporations can get special tax treatment that only the powerful and influential can achieve. For instance, pseudo-free trade legislation like NAFTA and GATT and the recent Fast Track legislation shows how much big business influences both congressional leaders and the administration. interest State Of The Republic 28 January 1998    1998 Ron Paul 2:100 Both types of welfare expenditures benefit from a monetary system that creates credit out of thin air in order to monetize congressional deficits when needed and manipulate interest rates downward to nonmarket levels to serve the interests of big borrowers and lenders. Federal Reserve policy is an essential element in serving the powerful special interests. Monetary mischief of this type will not likely be ended by congressional action, but will be eventually stopped by market forces, just as has recently occurred in the Far East. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:12 Just look at what we have been able to do since World War II without a declaration of war. Precisely. Why are we doing this? And precisely because when we do it, what generally happens is that we are not fighting these wars, and they are not police actions, these are wars, and we are not fighting them because of national interests. We are not fighting them for national security, and therefore, we do not fight to win, and subsequently, what war can we really be proud of since World War II? We have not won them. We set the stage for more problems later on. The Persian Gulf War has led to the stalemate that we have here today, and it goes on and on. I think this is a very important subject. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:17 This effort that is about to be launched, it has not been endorsed by our allies. It is getting very difficult to even get the slightest token endorsement by our allies to start this bombing. One would think if Saddam Hussein was a true threat to that region, his neighbors would be the first ones to be willing to march and to be willing to go to battle to defend themselves. But they are saying, do not even put your troops here, do not launch your effort from our soil, because it is not in our best interests to do so. Kuwait, the country that we went to war over not too long ago has given some token endorsement, but even their newspapers are carrying news stories that really challenge what the people might be saying about this effort. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:21 Now, these are very important comments to be considered, especially when we are getting ready to do something so serious as to condone the bombing of another country. Just recently in The Washington Post, not exactly a conservative newspaper, talked about what Egypt’s opinion was about this. This is interesting, because the interview was done in Switzerland at the World Economic Forum, and the interview was made by Lally Weymouth, and she talked to Egypt’s Foreign Minister, Amre Moussa, the Foreign Minister of Egypt, our ally, a country that gets billions of dollars from us every year. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:30 Now, Steven Rosenfeld, in the Washington Post, on February 6, also made comments about the Middle East and the failure of the Mideast policy. And I thought he had a very interesting comment, because he certainly would not be coming at this from the same viewpoint that I have. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:44 It is conceivable to me that it would be to Hussein’s benefit, and he probably is not worried that much, but I do not believe it is in our interest. I do not believe it is in the interest of the American people, the American taxpayers, the American fighter pilots, and certainly long-term interest in the Middle East. We will spend a lot of money doing it. That is one issue. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:47 Just recently Schwarzkopf was interviewed on NBC TV’s “Meet the Press,” and he had some interesting comments to make, very objective, very military-oriented comments. He would not agree with me on my policy or the policy that I would advocate of neutrality and nonintervention and the pro-American policy. But he did have some warnings about the military operation. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:56 But during these past 8 years since the war has ended, there has been no signs that that is likely to happen. It is more likely to happen that some missile or some accident will occur that will spread this war from a neat little war to something much bigger than we are interested in dealing with. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:60 I think the responsibility of the Members of Congress here is to protect the national interest, to provide national security, to take care of national defense, to follow the rules that say, we should not go to war unless the war is declared. If we go to war, we go to war to fight and win the war. But we do not go to war because we like one country over another country and we want to support them. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:107 And what are we going to prove? We should not do it. We should reassess this. We should decide quietly and calmly and deliberately in this body that quite possibly the move toward internationalism, abiding by the U.N. resolutions, paying through the nose to the IMF to bail out the special interests, never helping the poor but always helping the rich, encouraging a system that encourages foreign countries to come in and buy influence, should be challenged. We should change it. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:112 But none of this could happen. We could never move in this direction unless we asked a simple question: What really is the role of our government? Is the role of our government to perpetuate a welfare-warfare state to take care of the large special interests who benefit from this by building weapons and buying and selling oil? No, the purpose cannot be that. interest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:114 We here in the Congress should be talking about defending this country, providing national security, providing for a strong currency, not deliberately distorting the currency. We should be protecting private property rights and making sure that there is no incentive for the special interests of this country to come and buy their influence up here. interest We Encouraged Saddam Hussein 12 February 1998    1998 Ron Paul 12:3 Then the gentleman brings up the subject: Yes, he may be in the business of developing weapons, but he has gotten help from China and Russia, and possibly from Britain and the United States, and 20 other nations are doing the same thing. So if we are interested in stopping these weapons, we better attack 20 countries. So we have a job on our hands. interest The Folly Of Foreign Intervention — Part 2 25 February 1998    1998 Ron Paul 17:8 So this, to me, is a really good time to make us stop and think should we do this? I certainly think that our foreign policy in the interests of the United States should be determined by us here in the Congress, and then some will argue, well, it is not up to Congress to deal in foreign policy. That is up to a President. But that is not what is in the Constitution. interest The Folly Of Foreign Intervention — Part 2 25 February 1998    1998 Ron Paul 17:13 So there is no consistent argument that we can put up that all of a sudden Saddam Hussein is the only threat to world peace and it is in our interest to go in there and take him out. It just does not add up. If he really was a threat, you would think his neighbors would be the most frightened about this, and yet the neighbors are urging us not to do it. They are urging us to take our time, back off and wait and see what happens. interest The Folly Of Foreign Intervention — Part 3 25 February 1998    1998 Ron Paul 18:9 I would like to go ahead and close with a brief summary of what we have been trying to do here today. It was mentioned earlier, and I want to reemphasize it, something that has not been talked about a whole lot over this issue, has been the issue of oil. It is oil interests, money involved. interest The Folly Of Foreign Intervention — Part 3 25 February 1998    1998 Ron Paul 18:11 But it is not so much that it was the crossing of borders. I do believe that oil interests and the huge very, very important oil fields of Iraq and what it might mean to the price of oil if they came on has a whole lot to do with this. interest The Folly Of Foreign Intervention — Part 3 25 February 1998    1998 Ron Paul 18:15 But even taking it from an Israeli point of view, I do not know how they can be sure it is in their best interests to go over there and stir things up. They are more likely to be bombed with a terrorist bomb if we go in there and start bombing Iraq. If we do, Israel will not stand by as they did once before. They told us so. interest The Folly Of Foreign Intervention — Part 3 25 February 1998    1998 Ron Paul 18:21 If we argue our case correctly, if we argue the more argument, the constitutional argument, and the argument for peace as well, I cannot see how the American people cannot endorse a policy like that, and I challenge those who think that we should go carelessly and rapidly into battle, killing those who are not responsible, further enhancing the power and the authority of those who would be the dictators. They do not get killed. Sanctions do not hurt them. The innocent people suffer. Just as the economic sanctions that will be put on Southeast Asia as we give them more money, who suffers from the devaluations? The American taxpayer, as well as the poor people, whether they are in Mexico or Southeast Asia, in order to prop up the very special interests. Whether it is the banking interests involved in the loans to the Southeast Asians, or our military-industrial complex who tends to benefit from building more and more weapons so they can go off and test them in wars that are unnecessary. interest Wireless Telephone Protection Act 26 February 1998    1998 Ron Paul 22:3 The United States Constitution prohibits this federal government from depriving a person of life, liberty, or property without due process of law. Pursuant to this constitutional provision, a criminal defendant is presumed to be innocent of the crime charged and, pursuant to what is often called “the Winship doctrine,” the persecution is allocated the burden of persuading the fact-finder of every fact necessary to constitute the crime . . . charged.” The prosecution must carry this burden because of the immense interests at stake in a criminal prosecution, namely that a conviction often results in the loss of liberty or life (in this case, a sentence of up to ten years). interest U.S. Obsession With Worldwide Military Occupation Policy 10 March 1998    1998 Ron Paul 25:9 Instead of bringing our troops home from Bosnia, as many Members of Congress have expressed an interest in doing, over the President’s objection, we are rapidly preparing for sending more troops into Kosova. This obsession with worldwide military occupation by U.S. troops is occurring at the very time our troops lack adequate training and preparation. interest Removing U.S. Armed Forces From Bosnia And Herzegovina 17 March 1998    1998 Ron Paul 26:7 So, under certain circumstances where there is political pressure made by certain allies or by interests of oil, then we are likely to get involved. But the principle of a noninterventionism foreign policy should make certain that we, the Congress, never condone, never endorse, never promote the placement of troops around the world in harm’s way because it is a good way for men to get killed and, for most purposes, the lives of our American soldiers are too valuable to be put into a situation where there is so much harm and danger. interest Removing U.S. Armed Forces From Bosnia And Herzegovina 17 March 1998    1998 Ron Paul 26:12 I think we should strongly endorse this resolution and make sure these troops come home. It is interesting that there is a fair amount of support for this, and we obviously won the vote on this last year to say the troops should come home in June of this year. I suspect and hope that this will be restated, and there will be no excuse to extend their stay in this region. interest Conference Report on H.R. 1757, Foreign Affairs Reform And Restructuring Act Of 1998 26 March 1998    1998 Ron Paul 28:5 UNITED NATIONS The United Nations is an organization which frequently acts in a manner contrary to the sovereign interests of the United States. As such, I have sponsored legislation to get the United States out of this organization. Currently, the most pressing battle is to stop the US from paying phony “back dues” which we supposedly “owe” this organization. Congressman ROSCOE BARTLETT put forward a bill to stop any payment of this phony UN debt and I proudly cosponsored Mr. BARTLETT’s legislation. interest Credit Union Membership Access Act 1 April 1998    1998 Ron Paul 33:3 The NCUSIF was the only deposit insurance fund started without any federal seed money and the credit unions never came to Washington for a taxpayer-funded bailout. In fact, allowing multiple common bonds for credit unions enhanced their safety and soundness. This bill will add new “safety and soundness” and CRA-like regulations on credit unions. These regulations will add a burdensome regulatory cost. This cost will be passed on to the consumer in the form of higher fees, higher interest rates and less service. It is the marginal consumer who will lose the most when this bill becomes law. interest Random Drug Testing Of House Members And Staff Is Ill-Advised 21 April 1998    1998 Ron Paul 35:7 While some Members are more interested in regulating economic transactions in order to make a fairer society, there are others here who are more anxious to regulate personal behavior to make a good society. But both cling to the failed notion that governments, politicians and bureaucrats know what is best for everyone. If we casually allow our persons to be searched, why is it less important that our conversations, our papers and our telephones not be monitored as well? Vital information regarding drugs might be obtained in this manner as well. Especially we who champion the cause of limited government ought not be the promoters of the roving eye of Big Brother. interest Education In America Is Facing Crisis 22 April 1998    1998 Ron Paul 37:7 There is also the principle of it. Why should the Federal Government be involved in this educational process? And besides, the other question is, if we give scholarships and low-interest loans to people who go to college, what we are doing is making the people who do not get to go to college pay for that education, which to me does not seem fair. It seems like that the advantage goes to the individual who gets to go to college, and the people who do not get to go to college should not have to subsidize them. interest Don’t Bail Out Bankers 23 April 1998    1998 Ron Paul 38:3 Then to come to us and say it will not cost the taxpayers any money is absurd. Why do they come here and try to sneak through this appropriation with a parliamentary trick, if it is not going to cost the taxpayers any money? Certainly it is going to cost the taxpayers money. It adds to the national debt, and we have to pay interest on the national debt. This is a cost. interest Don’t Bail Out Bankers 23 April 1998    1998 Ron Paul 38:4 Now, the Director of the IMF had an interesting proposal. He said this will not cost us anything because it is coming out of the Central Bank. interest The Bubble 28 April 1998    1998 Ron Paul 39:4 Alan Greenspan took over the Fed a few months before the stock market crash of October, 1997. In the 10 years that Greenspan has headed the Fed, $2 trillion of new credit has been created as measured by M3. Banks threatened by bankruptcy in the early 1990s received generous assistance from the Fed policy of low interest rates and rapid credit expansion as a response to the recession of 1991. Fed fund rates were held at 3 percent for well over a year. This generous dose of Fed credit has fueled the 5-year superboom on Wall Street. interest The Bubble 28 April 1998    1998 Ron Paul 39:21 2. Inflated currency and artificially low interest rates result in mal-investment that produces over capacity in one area or another. interest The Bubble 28 April 1998    1998 Ron Paul 39:31 In its effort to re-energize the economy, the Bank of Japan is increasing its reserves at a 51 percent rate. This may be the greatest effort to “inflate” and economy back to health in all of history. Japan has inflated over the years and will not permit a full correction of their mal-investment. The Bank of Japan is doing everything possible to inflate again, but even with interest rates below 1 percent there are few takers. interest The Bubble 28 April 1998    1998 Ron Paul 39:40 Central bankers have also become more sophisticated in the balancing act between inflation and deflation. They are great technicians and are quite capable of interpreting events and striking a balance between these two horrors. This does not cancel out the basic flaw of a fiat currency; central bankers cannot replace the marketplace for determining interest rates and the proper amount of credit the economy needs. interest The Bubble 28 April 1998    1998 Ron Paul 39:43 Washington goes along because it is furtively, but definitely, acknowledged there that a free-market, high gold price would send a bad signal worldwide about the world financial system. Therefore, every effort is made to keep the price of gold low for as long as possible. It’s true the supply-siders have some interest in gold, but they are not talking about a gold standard, merely a price rule that encourages central-bank fixing of the price of gold. Most defenders of the free-enterprise system in Washington are Keynesians at heart and will not challenge interventionism on principle. interest The Bubble 28 April 1998    1998 Ron Paul 39:44 Instead of making sure that policy is correct, central bankers are much more interested in seeing that the gold-price message reflects confidence in the paper money. Thus gold has remained in the doldrums despite significant rising prices for silver, platinum, and palladium. However, be assured that even central banks cannot “fix” the price of gold forever. They tried this in the 1960’s with the dumping of hundreds of millions of ounces of American gold in order to artificially prop up the dollar by keeping the gold price at $35/oz., but in August 1971 this effort was abandoned. interest The Bubble 28 April 1998    1998 Ron Paul 39:46 It must be understood that politicians and the pressure of the special interests in Washington demand that the current policies of spending, deficits, artificially low interest rates and easy credit will not change. It took the complete demise of the Soviet-Communist system before change came there. But be forewarned: change came with a big economic bang not a whimper. Fortunately that event occurred without an armed revolution . . . so far. The amazingly sudden, economic events occurring in East Asia could still lead to some serious social and military disturbances in that region. interest Federal War On Drugs Bad Idea 5 May 1998    1998 Ron Paul 45:6 In 1937, and I am sure some of my conservative colleagues might be interested in this because it was the great FDR who decided to impose a great tax on marijuana, putting $100 tax on a pound of marijuana, essentially making it illegal. And even today those States who would like to legalize marijuana even for the sick and dying AIDS patients and the cancer patients are not even permitted to. It is because we have carelessly assumed that all regulation and all controls and all policing activities should be done here in Washington. interest Higher Education Amendments of 1998 6 May 1998    1998 Ron Paul 49:1 Mr. PAUL. Mr. Chairman, Congress should reject HR 6, the Higher Education Amendments of 1998 because it furthers the federal stranglehold over higher education. Instead of furthering federal control over education, Congress should focus on allowing Americans to devote more of their resources to higher education by dramatically reducing their taxes. There are numerous proposals to do this before this Congress. For example, the Higher Education Affordability and Availability Act (HR 2847), of which I am an original cosponsor, allows taxpayers to deposit up to $5,000 per year in a pre-paid tuition plan without having to pay tax on the interest earned, thus enabling more Americans to afford college. This is just one of the many fine proposals to reduce the tax burden on Americans so they can afford a higher education for themselves and/or their children. Other good ideas which I have supported are the PASS A+ accounts for higher education included in last year’s budget, and the administration’s HOPE scholarship proposal, of which I was amongst the few members of the majority to champion. Although the various plans I have supported differ in detail, they all share one crucial element. Each allows individuals the freedom to spend their own money on higher education rather than forcing taxpayers to rely on Washington to return to them some percentage of their tax dollars to spend as bureaucrats see fit. interest Higher Education Amendments of 1998 6 May 1998    1998 Ron Paul 49:6 As HR 6 was being drafted and marked-up, some Committee members did attempt to protect the interests of the taxpayers by refusing to support authorizing this program unless the spending was offset by cuts in other programs. Unfortunately, some members who might have otherwise opposed this program supported it at the Committee mark-up because of the offset. interest National Police State 12 May 1998    1998 Ron Paul 50:3 The interstate commerce clause, however, was included to prevent states from engaging in protectionism and mercantilist policies as against other states. Those economists who influenced the framers did an adequate job of educating them as to the necessarily negative consequences for consumers of embracing such a policy. The clause was never intended to give the federal government carte blanche to intervene in private economic affairs anytime some special interest could concoct a “rational basis” for the enacting such legislation. interest National Police State 12 May 1998    1998 Ron Paul 50:6 Today’s second legislative step towards a national police state can be found in H.R. 3811, the Deadbeat Parents Punishment Act of 1998. This bill enhances a federal criminal felony law for those who fail to meet child support obligations as imposed by the individual states. Additionally, the bills shifts some of the burden of proof from the federal government to the accused. The United States Constitution prohibits the federal government from depriving a person of life, liberty, or property without due process of law. Pursuant to this constitutional provision, a criminal defendant is presumed to be innocent of the crime charged and, pursuant to what is often called “the Winship doctrine,” the prosecution is allocated the burden of persuading the fact-finder of every fact necessary to constitute the crime . . . charged.” The prosecution must carry this burden because of the immense interests at stake in a criminal prosecution, namely that a conviction often results in the loss of liberty or life (in this case, a sentence of up to two years). This departure from the long held notion of “innocent until proven guilty” alone warrants opposition to this bill. interest FDIC Problem 13 May 1998    1998 Ron Paul 51:6 We have to think about how we got here. In the 1920s, the Federal Reserve created a lot of credit. They created a boom and a booming stock market and good times. Then the Federal Reserve raised the interest rates and there was a stock market crash and a depression. And out of the depression came the desire to regulate banking and commerce. That caused the depression, which was erroneous, because the cause of the depression was excessive credit and then a deflated bubble, which should be all laid at the doorstep of the Federal Reserve. interest The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:9 A much more justifiable “scapegoat” is the IMF and the American influence on the stringent reforms demanded in order to receive the $43 billion IMF bailout. IMF policy on aggravates and prolongs the agony while helping the special interest rich at the expense of the poor. The IMF involvement should not be a distraction from the fundamental cause of the financial problem, monetary inflation, even if it did allow three decades of sustained growth. interest The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:10 “Crony capitalism” was not the cause of Indonesia’s trouble. Inflationism and political corruption allows crony capitalism to exist. It would be better to call it economic interventionism for the benefit of special interests — a mild form of fascism — than to abuse the free market term of capitalism. interest 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. interest The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:9 A much more justifiable “scapegoat” is the International Monetary Fund (IMF) and the American influence on the stringent reforms demanded in order to receive the $43 billion IMF-led bailout. IMF policy only aggravates and prolongs the agony while helping the special interest rich at the expense of the poor. The IMF involvement should not be a distraction from the fundamental cause of the financial problem, monetary inflation, even if it did allow three decades of sustained growth. interest The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:10 “Crony capitalism” was not the cause of Indonesia’s trouble. Inflationism and political corruption allow crony capitalism to exist. It would be better to call it economic interventionism for the benefit of special interests — a mild form of fascism — than to abuse the free market term of capitalism. interest 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. interest Parent And Student Saving Account Act 18 June 1998    1998 Ron Paul 62:2 I certainly support the provision allowing parents to contribute up to $2,000 a year to education savings accounts without having to pay taxes on the interest earned by that account. This provision expands parental control of education, the key to true education reform as well as one of the hallmarks of a free society. Today the right of parents to educate their children as they see fit is increasingly eroded by the excessive tax burden imposed on America’s families by Congress. Congress then rubs salt in the wounds of America’s hardworking, taxpaying parents by using their tax dollars to fund an unconstitutional education bureaucracy that all too often uses its illegitimate authority over education to undermine the values of these same parents! interest Campaign Finance Reform 23 June 1998    1998 Ron Paul 64:3 I suspect we will be talking about campaign finance reform for a couple more months. I see this somewhat differently than others. Others see that all we have to do is regulate the money and we are going to solve all our problems. But all governments are prone to be influenced by special interests. That is the nature of government. interest Campaign Finance Reform 23 June 1998    1998 Ron Paul 64:7 But there is another problem that I want to address, and that is the decreased interest in campaigns and elections. Thirty years ago we would have 30 some percent of the people would turn out in the primary elections. Today it is less than 20 percent. It is a steady decline. There is good reason for this because as government gets bigger and as money becomes more influential, and money talks, the little people who have their desires and their voices unheard and want to be heard, they feel very frustrated. So it is understandable and expected that there will be lower and lower turnout in our elections. That is exactly what is happening. interest Campaign Finance Reform 23 June 1998    1998 Ron Paul 64:10 How does this come about? It just happens that Republicans and Democrats tend to control every legislative body in the country, every State legislative body. And, therefore, they write rules and regulations and have high fees for people getting on ballots, and you do not have any competition. And there is lack of interest, and there is a lot of frustration. interest Every Currency Crumbles 24 June 1998    1998 Ron Paul 65:2 Mr. James Grant is the editor of Grant’s Interest Rate Observer, a financial publication, and editorial director of Grant’s Municipal Bond Observer and Grant’s Asia Observer. He has also authored several books including the biographical “Bernard Baruch: Adventures of a Wall Street Legend”, the best financial book of the year according to The Financial Times “Money of the Mind: Borrowing and Lending in America from the Civil War to Michael Milken”, “Minding Mr. Market: Ten Years on Wall Street with Grant’s Interest Rate Observer” and “The Trouble with Prosperity: The Loss of Fear, the Rise of Speculation, and the Risk to American Savings”. He is a frequent guest on news and financial programs, and his articles appear in a variety of publications. interest Women’s, Infant, and Children’s Program 20 July 1998    1998 Ron Paul 81:7 According to the Congressional Research Service, food vendors participating in WIC received 9.86 billion in Fiscal Year 1997 — 75% of the total funds spent on the WIC program! This fiscal year, producers of food products approved by the federal government for purchase by WIC participants are expected to receive $10 billion dollars in taxpayer dollars! Small wonder the lobbyists who came to my office to discuss WIC were not advocates for the poor, but rather well-healed spokespersons for corporate interests! interest Women’s, Infant, and Children’s Program 20 July 1998    1998 Ron Paul 81:8 Any of my colleagues who doubt that these programs serve the interests of large corporations should consider that one of the most contentious issues debated at Committee mark-up was opposition to an attempt to allow USDA to purchase non-quote peanuts (currently the only peanuts available for sale are farmers who have a USDA quota all other farmers are forbidden to sell peanuts in the US) for school nutrition programs. Although this program would have saved the American taxpayers $5 million this year, the amendment was rejected at the behest of supporters of the peanut lobby. A member of my staff, who appropriately asked why this amendment could not pass with overwhelming support, was informed by a staffer for another member, who enthusiastically supports the welfare state, that the true purpose of this program is to benefit producers of food products, not feed children. interest Ballot Access — Part 1 30 July 1998    1998 Ron Paul 86:11 Now, this is very important also because it increases interest and increases turnout. Today, turnout has gone down every year in the last 20 or 30 years, there has been a steady decline in interest. This amendment would increase the interest and increase the turnout. interest Ballot Access — Part 2 30 July 1998    1998 Ron Paul 87:3 For this reason, many individuals have lost interest in politics. They are disinterested, and every year it seems that the turnout goes down. This year is no exception. Forty-two percent of the American people do not align themselves with a political party. Twenty-nine percent, approximately, align themselves with Republicans and Democrats. Yet, the rules and the laws are written by the major party for the sole purpose of making it very expensive and very difficult, and sometimes impossible, to get on the ballot. interest Ballot Access — Part 1 30 July 1998    1998 Ron Paul 90:4 I cannot think of anything that could boost the interest in the debates more. Fewer and fewer people are watching debates. There was the lowest turnout, the lowest listening audience to the debates in the last-go around. It was the lowest since we have had these debates on television. interest Ballot Access — Part 1 30 July 1998    1998 Ron Paul 90:5 Forty-two percent of the people turned out and were interested in the debates prior to the election in 1992, and we had a major candidate, Ross Perot. Of course, the only reason he was able to achieve a significant amount of attention was because he happened to be a billionaire. That is not fair. In 1996, they did a poll right before the election to find out who was paying attention. We were getting ready to pick the President of the United States. It dropped to 24 percent. interest Ballot Access — Part 1 30 July 1998    1998 Ron Paul 90:6 If we want people to be civic-minded, interested in what we are doing, feeling like they have something to say about their government, we ought to allow them in. We should not exclude this 42 percent that have been excluded. I think opening up the debates in this way would only be fair and proper. It would be the American way to do it. I strongly urge my colleagues to support this fair-minded amendment. interest Ballot Access — Part 2 30 July 1998    1998 Ron Paul 91:1 Mr. PAUL. Mr. Chairman, I yield myself such time as I may consume. It is always interesting that when we have an appropriate amendment that seems to catch the attention of the Members, that it is probably not the appropriate time to bring it up, and that we should hold hearings and do it some other day. interest Ballot Access — Part 2 30 July 1998    1998 Ron Paul 91:2 We have been spending months, and I believe both sides of the aisle have been very sincere in their efforts to clarify and to improve our election process. I think this would be a tremendous benefit to the congressional candidates as well, because there would be more interest. People are not even listening to the debates. If they are not even willing to listen to the presidential debates, how can they get interested in Senate races and in House races? interest Ballot Access — Part 2 30 July 1998    1998 Ron Paul 91:3 The rating of the debates in 1996 was the lowest in 36 years. The Vice-Presidential debate, we cannot even get people to listen to the Vice-Presidential debates. It had dropped off 50 percent from 1992. In 1992, there was more interest. It is because we happened to have a billionaire interested, and he was able to stimulate some people in some debates. interest Ballot Access — Part 2 30 July 1998    1998 Ron Paul 91:5 So I would strongly suggest if Members are fair-minded and think they would like more interest, or if they want to continue the way we are going now, we are going to have less and less people interested. People are really tired of it. The American people do not understand this debate, but they do understand they would like to have somebody speak up for them. interest Ballot Access — Part 2 30 July 1998    1998 Ron Paul 91:6 Forty-two percent of the people have been essentially disenfranchised, and they are important. Hopefully they are important enough to go to the polls and let us know about it. But they have been disenfranchised because they have lost interest. They have been pushed around, either with ballot access rules and regulations, or not being allowed to appear. interest Banking Regulations 4 August 1998    1998 Ron Paul 93:7 This is a bill that I think really comes around to achieving and taking care of a problem and protecting everybody interested. But I am quite convinced that this is still not a fair bill, a fair approach, because we have not yet done enough for our community bankers. We must eventually apply these same principles of less regulations and less taxes to the small banker. Then we will provide a greater service to the people that are their customers, and we will certainly be allowing the poor people a greater chance to achieve a loan. interest Banking Regulations 4 August 1998    1998 Ron Paul 93:10 These regulations add to the costs of operations of financial institutions. This cost is passed on to consumers in the form of higher interest rates and additional fees. These regulations impose a disproportionate burden on smallers institutions, stifles the possibility of new entrants into the financial sector, and contributes to a consolidation and fewer market participants of the industry. Consumers need additional choices, not congressionally-imposed limits on choices. interest Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:5 But economic law dictates that adjustments will be made for all the bad investment decisions based on erroneous information about interest rates, the money supply, and savings. interest Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:9 The Federal Reserve hints at lower interest rates which means more easy credit. This may be construed as a positive for the market, but it only perpetuates a flawed monetary system. interest 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. interest Revamping The Monetary System 24 September 1998    1998 Ron Paul 102:11 I would like to remind my colleagues that when the Federal Reserve talks about lowering interest rates, like Mr. Greenspan announced yesterday, or alluded to, this means that the Federal Reserve will create new credit. Where do they get new credit and new money? They get it out of thin air. This, of course, will lower interest rates in the short run and this will give a boost to a few people in trouble and it will bail out certain individuals. interest World Financial Markets 1 October 1998    1998 Ron Paul 104:2 The mess we are witnessing in the world today was a predictable event. Artificially low interest rates and easy credit causes malinvestment, overcapacity, excessive borrowing and uncontrolled speculation. interest World Financial Markets 1 October 1998    1998 Ron Paul 104:4 There have been no restraints on the world monetary managers to expand their money supplies, fix short-term interest rates or deliberately debase their currencies. Although. interest World Financial Markets 1 October 1998    1998 Ron Paul 104:7 More Federal Reserve fixing of interest rates and credit expansion can hardly solve our problems when this has been precisely the cause of the mess in which we currently find ourselves. interest World Financial Markets 1 October 1998    1998 Ron Paul 104:8 Price fixing of interest rates contradicts the basic tenets of capitalism. Let it no more be said that today’s mess with financial markets is a result of capitalism’s shortcomings. Nothing is further from the truth. Allowing the market to operate even under today’s dangerous conditions is still the best option for dealing with hedge fund’s gambling mistakes, both current and future. interest 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. interest World Financial Markets 1 October 1998    1998 Ron Paul 104:12 Our problems today should not be used to justify a worldwide central bank, as has been proposed. What we need is sound money without the central planning efforts of a Federal Reserve system fixing interest rates and regulating the money supply. Let us give freedom a chance. interest Hedge Fund Bailout 2 October 1998    1998 Ron Paul 105:6 A related issue that we discussed privately at the time was whether the potential for moral hazard created by federal deposit insurance means private financial institutions should be required to disclose their derivative holdings in the interest of transparency. You are now likely to contemplate this issue yourselves given events surrounding the hedge fund in question, Long-Term Capital Management; and the potential for systemic risk posed by any future episode that might involve the imprudent use of derivatives and excessive amounts of leverage. interest Iraq — Part 1 5 October 1998    1998 Ron Paul 107:6 Just a few months ago, or last November, we passed a resolution, and the resolution was H.R. 137. It sounded very general and very benign, and it talked about the atrocities caused by Saddam Hussein, and we asked to condemn and also to set up a U.N. commission to study this and give the U.N. authority to pursue arrests and convict and try Saddam Hussein. So this is not something we are doing for the interests of the United States. We are doing this under the interests of the United Nations, but we are the spokesperson for them. interest Iraq — Part 1 5 October 1998    1998 Ron Paul 107:15 As my colleagues know, at the end of this bill I think we get a hint as to why we do not go to Rwanda for humanitarian reasons. Now there is some atrocities. Why do we not clean that mess up? Because I believe very sincerely that there is another element tied into this, and I think it has something to do with money, and I think it has something to do with oil. The oil interests need the oil in Iraq, and he does not, Saddam Hussein does not, comply with the people of the west. So he has to go. interest Iraq — Part 3 5 October 1998    1998 Ron Paul 109:3 There is some merit to that argument, but there is also a very good reason why that does not happen and will not happen. It is because when we fight a war for non-national security reasons, when it is limited to protecting oil or some other interest, then there is a limitation, there is no wanting to expand it. interest Lake Texana 7 October 1998    1998 Ron Paul 111:3 HR 2161 merely facilitates the early payment of the construction costs (discounted, of course, by the amount of interest no longer due as a consequence of early payment) and transfers title of the Palmetto Bend Project to the Texas state authorities. Both the LNRA and TWDB concur that an early buy-out and title transfer is extremely beneficial to the economical and operational well-being of the project as well as the Lake Texana water users. The Texas Legislature and Governor George W. Bush have both formally supported the early payment and title transfer. In fact, even the residents of Highland Lakes in Travis County who initially expressed a concern as to the effects of the title transfer on the Colorado River Basin, came to support the legislation. This bill will save Lake Texana water users as much as one million dollars per year as well as providing an immediate infusion of $43 million dollars to the national treasury. Additionally, all liability associated with this water project are, under my legislation, assumed by the state of Texas thus further relieving the financial burden of the federal government. interest New Global Economic Plan 9 October 1998    1998 Ron Paul 117:2 The world economies have been built on generous credit expansion with each country inflating their currencies at different rates. Additionally, each country has had different political, tax, and regulatory policies leading to various degrees of trust and stability. Economies that have “enjoyed” inflationary booms, by their very nature, must undergo a market correction. The market demands deflation of all excesses, while the politicians and special interests agitate for continued credit inflation. Under these circumstances, financial assets may deflate in price but monetary inflation continues and the currency is further depreciated thus putting serious pressure on the dollar; as in the case of the United States. interest Medicare Home Health And Veterans Health Care Improvement Act Of 1998 9 October 1998    1998 Ron Paul 118:8 Similarly, Congress should seek funds for an increased expenditure on home care by ending federal support for institutions such as the International Monetary Fund (IMF), which benefit wealthy bankers and powerful interests but not the American people. At a time when the federal government continues to grow to historic heights and meddles in every facet of American life I cannot believe that Congress cannot find expenditure cuts to finance the programs in this bill! interest Monetary Policy 16 October 1998    1998 Ron Paul 120:8 The constitutional or credit restraint of a commodity standard of money offers stability and non-inflationary growth but does not accommodate the special interests that demand benefits bigger and faster than normal markets permit. The only problem is the financial havoc that results when the unsound system is forced into a major correction which are inherent to all fiat systems. interest Monetary Policy 16 October 1998    1998 Ron Paul 120:9 That is what we are witnessing today. The world-wide fragile financial system is now collapsing and tragically the only cry is for more credit inflation because the cause of our dilemma is not understood. Attempts at credit stimulation with interest rates below 1 percent is doing nothing for Japan’s economy and for good reasons. it is the wrong treatment for the wrong diagnosis. interest Monetary Policy 16 October 1998    1998 Ron Paul 120:14 First, the Federal Reserve should be denied the power to fix interest rates and buy government debt. It should not be central economic planner through manipulation of money and credit. interest Hate Crimes And Individual Rights 16 October 1998    1998 Ron Paul 122:16 Hate-crime laws set up certain privileged categories of people, defined by the groups to which they belong, and offers them unequal protection under the law. This is wrong. It is sad to see a young man’s personal misfortune used by various special-interest groups to advance such an agenda. interest Resolution On Saddam Hussein 17 December 1998    1998 Ron Paul 124:2 Mr. Speaker, it is clearly stated in the Constitution that only Congress has the authority to declare war. It is precisely because of the way we go to war these days that we are continuing to fight the Persian Gulf War. We did not win the Persian Gulf War because we did not declare war since there was no justification to because there was no national security interests involved. interest Resolution On Saddam Hussein 17 December 1998    1998 Ron Paul 124:3 Saddam Hussein is not threatening our national security. This is a concocted scheme to pursue bombing for oil interests and other reasons, but it has nothing to do with national security. interest Resolution On Saddam Hussein 17 December 1998    1998 Ron Paul 124:13 Finally, even by the amoral measure of “realpolitik” the policy of Saddam’s removal is unwarranted. The reason that the US has hesitated to actually complete successful enactment of its stated policy is because the result of such enactment is fraught with uncertainty. Iraq is a country made up of many different factions. And many of its neighbors are interested in increasing their influence and control over areas which are now within Iraqi territory. Hence, if Saddam ever were to be removed by force of US efforts, we would face a very real risk to regional stability. Stability being the key concern of those who practice “realpolitik” this points to the fact that by the measures established by the “pragmatists” the stated policy of Saddam’s removal is wrongful. Let me be clear, while I reject the notion of divorcing politics from moral considerations, I do believe we should understand that our current policy is not only devoid of morals, but is also doomed to failure from any practical viewpoint. interest Supports Impeachment Of President Clinton 19 December 1998    1998 Ron Paul 125:25 Yes, the President’s tawdry affair and the acceptance of it to a large degree by the American people is not a good sign for us as a nation. But, let’s hope that out of this we have a positive result by recognizing the public’s rejection of the snooping actions of Big Brother. Let’s hope there’s a renewed interest in the Constitution and that Congress pays a lot more attention to it on a daily basis especially when it comes to waging war. interest Freedom And Privacy Restoration Act 6 January 1999    1999 Ron Paul 1:8 A more recent assault on privacy is a regulation proposed jointly by the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Reserve, known as “Know Your Customer.” If this regulation takes effect in April 2000, financial institutions will be required not only to identify their customers but also their source of funds for all transactions, establish a “profile” and determine if the transaction is “normal and expected.” If a transaction does not fit the profile, banks would have to report the transaction to government regulators as “suspicious.” The unfunded mandate on financial institutions will be passed on to customers who would have to pay higher ATM and other fees and higher interest rates on loans for the privilege of being spied on by government-inspired tellers. interest Freedom And Privacy Restoration Act 6 January 1999    1999 Ron Paul 1:12 Secondly, the federal government has been creating property interests in private information for certain state-favored third parties. For example, a little-noticed provision in the Patient Protection Act established a property right for insurance companies to access personal health care information. Congress also authorized private individuals to receive personal information from government data bases in last year’s copyright bill. The Clinton Administration has even endorsed allowing law enforcement officials’ access to health care information, in complete disregard of the fifth amendment. Obviously, “private protection” laws have proven greatly inadequate to protect personal information when the government is the one providing or seeking the information! interest How Long Will The War With Iraq Go On Before Congress Notices? 2 February 1999    1999 Ron Paul 3:9 It is time for Congress to declare its interest in the Constitution and take responsibility on issues that matter, like the war powers. interest Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:7 Recent flagrant abuse of the power to wage war by modern-day Presidents, including the most recent episodes in Iraq, Afghanistan and Sudan, should prompt this Congress to revisit this entire issue of war powers. Certain abuses of power are obviously more injurious than others. The use of the FBI and the IRS to illegally monitor and intimidate citizens is a power that should be easy to condemn, and yet it continues to thrive. The illegal and immoral power to create money out of thin air for the purpose of financing a welfare-warfare state serving certain financial interests while causing the harmful business cycle is a process that most in Washington do not understand nor care about. These are ominous powers of great magnitude that were never meant to be permitted under the Constitution. interest Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:14 Without an actual declaration of war and support from the American people, victory is unachievable. This has been the case with the ongoing war against Iraq. Without a legitimate concern for our national security, the willingness to declare war and achieve victory is difficult. The war effort becomes narrowly political, serving special interests, and not fought for the defense of the United States against a serious military threat. If we can win a Cold War against the Soviets, we hardly need a hot war with a third world nation, unable to defend itself, Iraq. interest Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:15 Great concern in the 1960’s over the excessive presidential war powers was expressed by the American people, and, thus, the interests of the U.S. Congress after Vietnam in the early 1970’s. The War Powers Resolution of 1973 resulted, but due to shrewd manipulation and political chicanery, the effort resulted in giving the President more authority, allowing him to wage war for 60 to 90 days without Congressional approval. interest Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:20 By what stretch of the imagination can one say that these military actions can be considered defensive in nature? The best way we can promote support for our troops is employ them in a manner that is the least provocative. They must be given a mission confined to defending the United States, not policing the world or taking orders from the United Nations or serving the special commercial interests of U.S. corporations around the world. interest 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. interest 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. interest President Should Get Authority From Congress To Send Troops 9 February 1999    1999 Ron Paul 5:9 It is also interesting that one of the jobs of the troops in NATO, if they go into Kosovo, will be to disarm the Kosovo Liberation Army. That is hardly good sense. First, it is not good sense for us to give the permission or renege on our responsibility, but it does not make good sense to get involved in a war that has been going on for many years, but it certainly does not make good sense for us to go in for the sole purpose of supporting Milosevic. He is the one that has been bombing the Kosovars and here we are, we want to disarm the liberation forces and at the same time prevent Kosovo from becoming independent. interest President Should Get Authority From Congress To Send Troops 9 February 1999    1999 Ron Paul 5:11 Troops in Kosovo will not serve the interests of the United States. They will not help our national security. It will drain funds that should be spent on national defense. At the same time it will jeopardize our national security by endangering our troops and raising the possibility of us becoming involved in a war spreading through the Balkans. This should not occur. interest Introducing The Family Education Freedom Act 2 March 1999    1999 Ron Paul 11:8 Greater parental support and involvement is surely a better way to improve public schools than funneling more federal tax dollars, followed by greater federal control, into the public schools. Furthermore, a greater reliance on parental expenditures rather than government tax dollars will help make the public schools into true community schools that reflect the wishes of parents and the interests of the students. interest U.S. Military Action Taking Place in Serbia is Unconstitutional 24 March 1999    1999 Ron Paul 22:2 Serbia has not invaded another country but is involved in a nasty civil war, with both sides contributing to the violence. There is no American security interest involved in Serbia. Serbia has not threatened us nor used any force against any American citizen. interest Peace 25 March 1999    1999 Ron Paul 23:3 Let other nations always keep the idea of their sovereign self-government associated with our Republic and they will befriend us, and no force under heaven will be of power to tear them from our allegiance. But let it be once understood that our government may be one thing and their sovereignty another, that these two things exist without mutual regard one for the other — and the affinity will be gone, the friendship loosened and the alliance hasten to decay and dissolution. As long as we have the wisdom to keep this country as the sanctuary of liberty, the sacred temple consecrated to our common faith, wherever mankind worships freedom they will turn their faces toward us. The more they multiply, the more friends we will have, the more ardently they love liberty, the more perfect will be our relations. Slavery they can find anywhere, as near to us as Cuba or as remote as China. But until we become lost to all feeling of our national interest and natural legacy, freedom and self-rule they can find in none but the American founding. These are precious commodities, and our nation alone was founded them. This is the true currency which binds to us the commerce of nations and through them secures the wealth of the world. But deny others of their national sovereignty and self-government, and you break that sole bond which originally made, and must still preserve, friendship among nations. Do not entertain so weak an imagination as that UN Charters and Security Councils, GATT and international laws, World Trade Organizations and General Assemblies, are what promote commerce and friendship. Do not dream that NATO and peacekeeping forces are the things that can hold nations together. It is the spirit of community that gives nations their lives and efficacy. And it is the spirit of the constitution of our founders that can invigorate every nation of the world, even down to the minutest of these. interest Closer To Empire 25 March 1999    1999 Ron Paul 24:15 I do believe that we are on the brink, Mr. Speaker, but it is not yet too late. Soon I fear the train, as it is said, will have left the station. We stand on the verge of crossing that line that so firmly distinguishes empire from republic. This occurs not so much by an action or series of actions but by the acceptance of an idea, the idea that we have a right, a duty, an obligation, or a national interest to perfect foreign nations even while we remain less than principled ourselves. interest Closer To Empire 25 March 1999    1999 Ron Paul 24:16 When will we, as a people and as an institution, say “we choose to keep our republic, your designs for empire interest us not in the least.” I can only hope it will be soon, for it is my sincerest fear that failing to do so much longer will put us beyond this great divide. interest Crisis in Kosovo 14 April 1999    1999 Ron Paul 25:8 Most people know why we went to the Persian Gulf. It was not because we were attacked. It was because of a financial commercial interest: oil. But what is the interest in this area in Yugoslavia? I am not sure exactly what it is. There has been a lot of postulations about this, but I am not convinced that it is all of a sudden the concern for the refugees. interest Crisis in Kosovo 14 April 1999    1999 Ron Paul 25:9 Yesterday in the Washington Post an interesting article occurred on this subject, but it was not in the news section; it was in the business section. There was a headline yesterday in the Washington Post that said: Count Corporate America Among NATO’s Staunchest Allies. Very interesting article because it goes on to explain why so many corporations have an intense interest in making sure that the credibility of NATO is maintained, and they go on to explain that it is not just the arms manufacturers but the technology people who expect to sell weapons in Eastern Europe, in Yugoslavia, and they are very interested in making use of the NATO forces to make sure that their interests are protected. I think this is not the reason for us to go to war. interest U.S. Foreign Policy and NATO’s Involvement in Yugoslavia and Kosovo 21 April 1999    1999 Ron Paul 29:15 The KLA took on the Serbs, not the other way around. Whether or not one is sympathetic to Kosovo’s secession is not relevant. I for one prefer many small independent governments pledged not to aggress against their neighbors over the international special interest authoritarianism of NATO, the CIA, and the United Nations. interest U.S. Foreign Policy and NATO’s Involvement in Yugoslavia and Kosovo 21 April 1999    1999 Ron Paul 29:19 Interventionism is done with a pretense of wisdom believing we always know the good guys from the bad guys and that we will ignore the corporate and political special interests always agitating for influence. Nothing could be further from the truth. interest U.S. Foreign Policy and NATO’s Involvement in Yugoslavia and Kosovo 21 April 1999    1999 Ron Paul 29:38 Hopes as expressed by Ron Brown and his corporate friends were not extinguished by the unfortunate and mysterious Air Force crash while on their way to Bosnia to do business deals. Nobody even bothers to find out what U.S. policy condones business trips of our corporate leaders in a war zone on an Air Force aircraft. Corporate interests and the military-industrial complex continues to play a role in our Yugoslavian war policy. Corporate America loves NATO. interest U.S. Foreign Policy and NATO’s Involvement in Yugoslavia and Kosovo 21 April 1999    1999 Ron Paul 29:39 Most politicians and the public do not know what NATO’s real mission is, and today’s policy cannot be explained by reading its mission statement written in 1949. Certainly our vital interests and national security cannot justify our escalation of the war in Yugoslavia. interest U.S. Foreign Policy and NATO’s Involvement in Yugoslavia and Kosovo 21 April 1999    1999 Ron Paul 29:40 The excuse that we are the only superpower is hardly a moral reason to justify bombing nations that are seen as uncooperative. Military strength gives neither a right to bully nor a monopoly on wisdom. This strength too often, when held by large political entities, is used criminally to serve the powerful special interests. interest U.S. Foreign Policy and NATO’s Involvement in Yugoslavia and Kosovo 21 April 1999    1999 Ron Paul 29:56 NATO’s days are surely numbered. That is the message of the current chaos in Yugoslavia. NATO may hold together in name only for a while, but its effectiveness is gone forever. The U.S. has the right to legally leave NATO with a 1-year’s notice. That we ought to do, but we will not. We will continue to allow ourselves to bleed financially and literally for many years to come before it is recognized that governance of diverse people is best done by diverse and small governments, not by a one-world government dependent on the arbitrary use of force determined by politically correct reasons and manipulated by the powerful financial interests around the world. interest Environmental Regulatory Issues 22 April 1999    1999 Ron Paul 31:3 I commend the research of Mr. McClaughry and thank him for his important contribution to the policy debate regarding environmental regulation and recommend a careful reading of his article by everyone genuinely interested in both the proper moral and economic resolution of these issues. interest Whether, And How, To Go To War 28 April 1999    1999 Ron Paul 34:4 Today we are trying to deal legally with a half a war. A half a war is something like a touch of pregnancy. You can’t have a half a war. If we do not declare war and if we do not fight a war because it is in our national interest and for national security reasons, we’ll inevitably will not fight to win the war. That has always been our problem, whether it was Korea, Vietnam, or even the Persian Gulf war. interest Whether, And How, To Go To War 28 April 1999    1999 Ron Paul 34:6 So what are we going to do? We are going to perpetuate this confusion. But what we should do is vote down a declaration of war, vote to get the troops out of Yugoslavia, and vote to stop the bombing. The sooner we do that, the better. That is in America’s interests. interest Moral And Constitutional Wars Must Be Fought In Self Defense 28 April 1999    1999 Ron Paul 35:9 Today we saw evidence that the Congress was willing to stand up to some degree and vote on this and take some responsibility. For this reason I am pleased with what happened. So voting against the war that has no significant national security interest makes a lot of sense to me. interest Moral And Constitutional Wars Must Be Fought In Self Defense 28 April 1999    1999 Ron Paul 35:13 Now the interesting thing is that was a resolution, it was a House Resolution, that probably really does not have much effect other than a public relation effect because it would have to be passed by the Senate, it would be vetoed by the President, we would have to override his veto. So, in the practical legislative sense it does not mean a whole lot, but it means something in the fact that we brought it to the floor and we were required to vote on it. interest Kosovo War Is Illegal 5 May 1999    1999 Ron Paul 40:3 The humanitarian excuse for the war is suspect. Economic interests are involved, as they so often are in most armed conflicts. NATO’s vaguely stated goals have not been achieved. For the most part, the opposite has. Let me give my colleagues a few examples. interest Supporting Istook Amendment 6 May 1999    1999 Ron Paul 43:4 I think it is interesting, I think we have an interesting constitutional question here, because I agree with the chairman of the committee and the gentleman from Wisconsin (Mr. OBEY) that it is not the prerogative of the Congress to micromanage a war. That is correct. It is the job of the Congress to declare the war. But here we have a Congress involved in diplomacy and micromanaging a war that has not been declared. That is the issue. The issue is not the micromanaging. interest Supplemental Appropriations 18 May 1999    1999 Ron Paul 47:5 We should not encourage the senseless and immoral NATO aggression against Serbia. The funding of this war should not be approved, no matter what special interest appropriations have been attached to the initial request to gain support for this special spending measure. interest Opposing Supplemental Appropriation 18 May 1999    1999 Ron Paul 48:5 But here we are getting ready to fund Europe, fund a war that is undeclared. It does not make any sense. We are giving more money to the President than he asked for in a war that cannot be won and a war that we are not even determined to fight. It just does not make any sense. So in order to get enough votes to pass the bill, of course we put a little bit of extras on there to satisfy some special interests in order to get some more votes. interest The Mailbox Privacy Protection Act 25 May 1999    1999 Ron Paul 52:2 The receiving agency must then send the information to the Post Office, which will maintain the information in a database. Furthermore, the Post Office authorizes the Commercial Mail Receiving Agencies to collect and maintain photocopies of the forms of identification presented by the box renter. My colleagues might be interested to know that the Post Office is prohibited from doing this by the Privacy Act of 1974. I hope my colleagues are as outraged as I am by the Post Office’s mandating that their competitors do what Congress has forbidden the Post Office to do directly. interest A Positive Spin On An Ugly War 7 June 1999    1999 Ron Paul 54:7 Number six, NATO’s war against Yugoslovia has made it clearly apparent that world leaders place relative value on human life. This is valuable information that should be helped to restore U.S. national sovereignty. According to NATO’s policy, the lives of the Kosovars are of greater value than the Serbs, Rwandans, Kurds, Tibetans, or East Timorans. Likewise, oil and European markets command more bloodshed in support of powerful financial interests than the suffering of millions in Asia and Africa. This knowledge of NATO’s hypocrisy should some day lead to a fair and more peaceful world. interest Opposing Endless War In Kosovo 10 June 1999    1999 Ron Paul 56:6 A few years back it was in our national interests to be involved in the Persian Gulf. We had to do a lot of bombing there and a lot of fighting. We are still bombing in the Persian Gulf. I mean, when will it end? Where do our borders end? What are the limits to our sovereignty? Where is our responsibility? It seems like it is endless anyplace, anywhere we have to go. We are now supporting an empire. interest Opposing Endless War In Kosovo 10 June 1999    1999 Ron Paul 56:8 I think that policy is a bad policy. If we vote for this amendment, we endorse this policy, and we should not. This is not the end of the Kosovo war; it’s only the beginning of an endless occupation and the possibility of hostilities remain. The region remains destabilized and dangerous. Only a policy of non-intervention and neutrality can serve the interest of the American people. The sooner we quit accepting the role of world policemen, the better. We cannot afford to continue our recent policy of intervention to satisfy the power special interest that influences our foreign policy. interest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:1 Mr. PAUL. Mr. Speaker, campaign finance reform is once again being painted as the solution to political corruption in Washington. Indeed, that is a problem, but today’s reformers hardly offer a solution. The real problem is that government has too much influence over our economy and lives, creating tremendous incentive to protect one’s own interest by investing in politicians. interest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:3 There is tremendous incentive for every special interest group to influence government. Every individual, bank or corporation that does business with government invests plenty in influencing government. Lobbyists spend over $100 million per month trying to influence Congress. Taxpayers’ dollars are endlessly spent by bureaucrats in their effort to convince Congress to protect their own empires. Government has tremendous influence over the economy and financial markets through interest rate controls, contracts, regulations, loans and grants. Corporations and others are forced to participate in the process out of greed, as well as self defense, since that is the way the system works. interest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:6 The reformers’ argument is to stop us before we capitulate and before we capitulate to the special interest groups. Politicians unable to accept this responsibility clamor for a system that diminishes the need for politicians to persuade individuals and groups to donate money to their campaigns. Instead of persuasion, they endorse coercing taxpayers to finance campaigns. This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed and run. interest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:14 Campaign finance reform is once again being painted as the solution to political corruption in Washington. Indeed, that is a problem, but today’s reformers hardly offer a solution. The real problem is that government has too much influence over our economy and lives, creating a tremendous incentive to protect one’s own interests by “investing” in politicians. The problem is not a lack of federal laws, or rules regulating campaign spending, therefore more laws won’t help. We hardly suffer from too much freedom. Any effort to solve the campaign finance problem with more laws will only make things worse by further undermining the principles of liberty and private property ownership. interest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:15 The reformers are sincere in their effort to curtail special interest influence on government, but his cannot be done while ignoring the control government has assumed over our lives and economy. Current reforms address only the symptoms while the root cause of the problem is ignored. Since reform efforts involve regulating political speech through control of political money, personal liberty is compromised. Tough enforcement of spending rules will merely drive the influence underground since the stakes are too high and much is to be gained by exerting influence over government—legal or not. The more open and legal campaign expenditures are, with disclosure, the easier it is for voters to know who’s buying influence from whom. interest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:16 There’s tremendous incentive for every special interest group to influence government. Every individual, bank or corporation that does business with government invests plenty in influencing government. Lobbyists spend over a hundred million dollars per month trying to influence Congress. Taxpayers dollars are endlessly spent by bureaucrats in their effort to convince Congress to protect their own empires. Government has tremendous influence over the economy, and financial markets through interest rate controls, contracts, regulations, loans, and grants. Corporations and others are “forced” to participate in the process out of greed as well as self defense— since that’s the way the system works. Equalizing competition and balancing power such as between labor and business is a common practice. As long as this system remains in place, the incentive to buy influence will continue. interest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:18 It’s naive to believe stricter rules will make a difference. If enough honorable men and women served in Congress and resisted the temptation to be influenced by any special interest group, of course this whole discussion would be unnecessary. Because Members do yield to the pressure, the reformers believe that more rules regulating political speech will solve the problem. interest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:19 The reformers argue that it’s only the fault of those trying to influence government and not the fault of the Members who yield to the pressure or the system that generates the abuse. This allows Members of Congress to avoid assuming responsibility for their own acts and instead places the blame on those who exert pressure on Congress through the political process which is a basic right bestowed on all Americans. The reformer’s argument is “stop us before we capitulate to the special interest groups.” interest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:20 Politicians unable to accept this responsibility clamor for a system that diminishes the need for politicians to persuade individuals and groups to donate money to their campaign. Instead of persuasion they endorse coercing taxpayers to finance campaigns. This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed. interest What We Would Be Doing By Amending The Constitution To Make It Illegal To Desecrate The American Flag 22 June 1999    1999 Ron Paul 63:4 Now another interesting thing about the Chinese and their flag is that we monitor human rights in China. As a matter of fact, the State Department is required to come before the House and the Senate and report to us about the violations of human rights in China. The purpose is to find out whether or not they qualify for full trade with us, and the argument comes up every year. Some say, well, they violate civil rights and human rights all the time; therefore, we should not be trading with Red China, which is an argument that can be presented. interest Opposing Flag Burning Amendment 23 June 1999    1999 Ron Paul 66:10 We must be interested in the spirit of our Constitution. We must be interested in the principles of liberty. We should not be careless in accepting this approach to enforce a sense of patriotism. interest H.R. 1691 And Religious Freedom 15 July 1999    1999 Ron Paul 74:2 Mr. Speaker, as a legislature of enumerated powers, Congress may enact laws only for constitutionally authorized purposes. Despite citing the general welfare and commerce clause, the purpose of H.R. 1691 is obviously to “protect religious liberty.” However, Congress has been granted no power to protect religious liberty. Rather, the first amendment is a limitation on congressional power. The first amendment of the United States Constitution provides that Congress shall make no law prohibiting the free exercise of religion, yet H.R. 1691 specifically prohibits the free exercise of religion because it authorizes a government to substantially burden a person’s free exercise if the government demonstrates some nondescript, compelling interest to do so. interest H.R. 1691 And Religious Freedom 15 July 1999    1999 Ron Paul 74:3 The U.S. Constitution vests all legislative powers in Congress and requires Congress to define government policy and select the means by which that policy is to be implemented. Congress, in allowing religious free exercise to be infringed using the least restrictive means whenever government pleads a compelling interest without defining either what constitutes least restrictive or compelling interest delegates, to the courts legislative powers to make these policy choices constitutionally reserved to the elected body. interest Mail Receiving Agencies 15 July 1999    1999 Ron Paul 75:7 When I first got involved in this, I did not know which constituencies would be interested in this issue. But one thing that I have discovered is that many of those women who need privacy will use private post offices to avoid the husband or some other individual who may be stalking them. They have been writing to me with a great deal of concern about what these regulations will do. interest Exchange Stabilization Fund 15 July 1999    1999 Ron Paul 76:4 The Exchange Stabilization Fund was set up, I think in error; but it was set up for the purpose of stabilizing the dollar in the Depression. How did that come about? Well, it started with an Executive order. It started with an Executive order to take gold forcefully from the people. And then our President then revalued gold from $20 an ounce to $35 an ounce, and there was a profit and they took this profit and used some of those profits to start the Exchange Stabilization Fund. They set it up with $200 million. It does not seem like a whole lot of money today. How did it come about over these many years that this fund has been allowed to exist without supervision of this Congress, and now has reached to the size of $34 billion and we give it no oversight? It is supposed to send reports to us, very superficial reports to the Congress. We don’t know how they got $34 billion. They earned interest on some of the loans, and all the loans are paid back because the countries who get the loans borrow more money. interest Africa Growth And Opportunity Act 16 July 1999    1999 Ron Paul 77:1 Mr. PAUL. Mr. Chairman, once again Congress demonstrates that it has no fundamental understanding of free trade or the best interests of the taxpayer. The Africa Growth & Opportunity Act is heavy-laden with the Development Assistance (foreign aid), debt forgiveness (so much for the balanced budget), OPIC expansion (thus putting the taxpayers further at risk), and of course a new international regulatory board to be funded with “such sums as may be necessary.” Additionally, the costs of this bill are paid by raising taxes on charity. Free trade, Washington style, is evidently not free for the taxpayer! interest Africa Growth And Opportunity Act 16 July 1999    1999 Ron Paul 77:2 So what exactly is “free trade” and how far removed from this principle have those in Washington and the world drafted? Free trade, in its purest form, means voluntary exchange between individuals absent intervention by the coercive acts of government. When those individuals are citizens of different political jurisdictions, international trade is he term typically applied in textbook economics. For centuries, economists and philosophers have debated the extent to which governments should get in the way of such transactions in the name of protecting the national interest (or more likely some domestic industry). Obviously, both parties to exchange (free of intervention) expect to be better off or they would not freely engage in the transaction. It is the parties excluded (i.e. government and those out-competed) from the exchange who might have benefitted by being a party to it who can be relied upon to engage in some coercive activity to prevent the transaction in the hopes that their trading position will become more favorable by “default.” interest On The United Nations And Embassy security 19 July 1999    1999 Ron Paul 79:5 That is what I object to. I think that we should not renege and turn over our sovereignty to these international bodies. I believe there is motivation for this. When our commercial interests and financial interests are at stake, yes, we do get involved in the Persian Gulf; yes, we do get involved in Eastern Europe. But do we get involved in Rwanda? No, we do not. We ignore it. interest OPIC 2 August 1999    1999 Ron Paul 83:2 They are asking for $55 million. Where does the profit come from? It was stated earlier very clearly; from the interest they earn. They have a portfolio of $3 billion of U.S. securities. interest OPIC 2 August 1999    1999 Ron Paul 83:3 But these did not reduce the national debt. That is part of the national debt. We pay interest on that $3 billion. And this agency gets $194 million from it, four times the amount of the requested appropriation. interest OPIC 2 August 1999    1999 Ron Paul 83:6 How many other agencies of government get interest like this? This is almost a government unto itself, the fact that it has that much financing without even a direct appropriation because it is paid out of the interest budget. interest Population Control 2 August 1999    1999 Ron Paul 84:7 So it was very interesting to read exactly what the justification is. The Committee on Appropriations, quoting from the committee report, the Committee on Appropriations bases its authority to report this legislation from clause 7, section 9 of Article I of the Constitution of the United States of America, which states “no money shall be drawn from the Treasury but in consequence of appropriation made by law.” “Appropriations contained in this act,” the report says, “are made pursuant to this specific power granted by the Constitution.” interest Export-Import Bank, Overseas Private Investment Corp. and Trade And Development Agency 2 August 1999    1999 Ron Paul 86:12 Those institutions are not free trade institutions. They are managed trade institutions for the benefit of special interests. That is what this type of funding is for is for the benefit of special interests, whether it is our domestic corporation, which, indeed, I would recognize does receive some benefit. interest Foreign Subsidies 2 August 1999    1999 Ron Paul 87:7 So I urge support for the amendment because, if we are serious about free trade, just please do not call it free trade anymore. Call it managed trade. Call it subsidized trade. Call it special interest trade. But please do not call it free trade anymore, because it is not free trade. interest Selective Service System 5 August 1999    1999 Ron Paul 89:8 I would like to remind many of my conservative colleagues that, if we brought a bill to this floor where we would say that we would register all of our guns in the United States, there would be a hue and cry about how horrible it would be. Yet, we casually accept this program of registering 18-year-old kids to force them to go and fight the political wars that they are not interested in. This is a very, very serious idea and principle of liberty. interest Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:1 Mr. PAUL. Mr. Chairman, campaign finance reform is once again being painted as the solution to political corruption in Washington. Indeed, political corruption is a problem, but today’s reformers hardly offer a solution. The real problem is that government has too much influence over our economy and lives, creating a tremendous incentive to protect one’s own interests by ‘investing’ in politicians. The problem is not a lack of federal laws, or rules regulating campaign spending, therefore more laws won’t help. We hardly suffer from too much freedom. Any effort to solve the campaign finance problem with more laws will only make things worse by further undermining the principles of liberty and private property ownership. interest Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:2 The reformers are sincere in their effort to curtail special interest influence on government, but this cannot be done while ignoring the control government has assumed over our lives and economy. Current reforms address only the symptoms while the root cause of the problem is ignored. Since reform efforts involve regulating political speech through control of political money, personal liberty is compromised. Tough enforcement of spending rules will merely drive the influence underground since the stakes are too high and much is to be gained by exerting influence over government — legal or not. The more open and legal campaign expenditures are, with disclosure, the easier it is for voters to know who’s buying influence from whom. interest Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:3 There’s tremendous incentive for every special interest group to influence government. Every individual, bank or corporation that does business with government invests plenty in influencing government. Lobbyists spend over a hundred million dollars per month trying to influence Congress. Taxpayers dollars are endlessly spent by bureaucrats in their effort to convince Congress to protect their own empires. Government has tremendous influence over the economy, and financial markets through interest rate controls, contracts, regulations, loans, and grants. Corporations and others are ‘forced’ to participate in the process out of greed as well as self-defense — since that’s the way the system works. Equalizing competition and balancing power such as between labor and business is a common practice. As long as this system remains in place, the incentive to buy influence will continue. interest Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:5 It’s naive to believe stricter rules will make a difference. If enough honorable men and women served in Congress and resisted the temptation to be influenced by any special interest group, of course this whole discussion would be unnecessary. Because Members do yield to the pressure, the reformers believe that more rules regulating political speech will solve the problem. interest Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:6 The reformers argue that it’s only the fault of those trying to influence government and not the fault of the Members who yield to the pressure or the system that generates the abuse. This allows Members of Congress to avoid assuming responsibility for their own acts and instead places the blame on those who exert pressure on Congress through the political process which is a basic right bestowed on all Americans. The reformer’s argument is “stop us before we succumb to the special interest groups.” interest Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:8 This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed. Not only will politicians and bureaucrats gain influence over elections, other nondeservers will benefit. Clearly, incumbents will greatly benefit by more controls over campaign spending — a benefit to which the reformers will never admit. interest East Timor 28 September 1999    1999 Ron Paul 99:6 Our Security Council has already decided to send troops to East Timor. What we are doing today is rubber stamping this effort to send troops into another part of the world in a place where we have no national security interests. We do not know what victory means. We do not know what lies ahead. interest East Timor 28 September 1999    1999 Ron Paul 99:11 I do not see that the sanctity and the interests of the United States will be benefitted by what we are getting ready to do. interest Health Care Reform: Treat The Cause, Not The Symptom 4 October 1999    1999 Ron Paul 103:4 In today’s system, it appears on the surface that the interest of the patient is in conflict with the rights of the insurance companies and the Health Maintenance Organizations. In a free market, this cannot happen. Everyone’s rights are equal and agreements on delivering services of any kind are entered into voluntarily, thus satisfying both sides. interest Health Care Reform: Treat The Cause, Not The Symptom 4 October 1999    1999 Ron Paul 103:8 The power of special interests influencing government policy has brought us to this managed-care monster. If we pursued a course of more government management in an effort to balance things, we are destined to make the system much worse. If government mismanagement in an area that the Government should not be managing at all is the problem, another level of bureaucracy, no matter how well intended, cannot be helpful. The law of unintended consequences will prevail and the principle of government control over providing a service will be further entrenched in the Nation’s psyche. The choice in actuality is government-provided medical care and its inevitable mismanagement or medical care provided by a market economy. interest Health Care Reform: Treat The Cause, Not The Symptom 4 October 1999    1999 Ron Paul 103:17 The contest now, unfortunately, is not between free market health care and nationalized health care but rather between those who believe they speak for the patient and those believing they must protect the rights of corporations to manage their affairs as prudently as possible. Since the system is artificial there is no right side of this argument and only political forces between the special interests are at work. This is the fundamental reason why a resolution that is fair to both sides has been so difficult. Only the free market protects the rights of all persons involved and it is only this system that can provide the best care for the greatest number. Equality in medical care services can be achieved only by lowering standards for everyone. Veterans hospital and Medicaid patients have notoriously suffered from poor care compared to private patients, yet, rather than debating introducing consumer control and competition into those programs, we’re debating how fast to move toward a system where the quality of medicine for everyone will be achieved at the lowest standards. Since the problem with our medical system has not been correctly identified in Washington the odds of any benefits coming from the current debates are remote. It looks like we will make things worse by politicians believing they can manage care better than the HMO’s when both sides are incapable of such a feat. interest Quality Care For The Uninsured Act 6 October 1999    1999 Ron Paul 104:2 Contrary to the claims of many advocates of increased government regulation of health care, the problems with the health care system do not represent market failure, rather they represent the failure of government policies which have destroyed the health care market. In today’s system, it appears on the surface that the interest of the patient is in conflict with rights of the insurance companies and the Health Maintenance Organizations (HMOs). In a free market this cannot happen. Everyone’s rights are equal and agreements on delivering services of any kind are entered into voluntarily, thus satisfying both sides. Only true competition assures that the consumer gets the best deal at the best price possible, by putting pressure on the providers. Once one side is given a legislative advantage, in an artificial system, as it is in managed care, trying to balance government dictated advantages between patient and HMOs is impossible. The differences cannot be reconciled by more government mandates which will only makes the problem worse. Because we are trying to patch up an unworkable system, the impasse in Congress should not be a surprise. interest Quality Care For The Uninsured Act 6 October 1999    1999 Ron Paul 104:5 The power of special interests influencing government policy has brought us this managed care monster. If we pursue the course of more government management — in an effort to balance things — we’re destined to make the problem much worse. If government mismanagement, in an area that the government should not be managing at all, is the problem, another level of bureaucracy — no matter how well intended — cannot be helpful. The law of unintended consequences will prevail and the principle of government control over providing a service will be further entrenched in the nation’s psyche. The choice in actuality is government provided medical care and it’s inevitable mismanagement or medical care provided by a market economy. interest Quality Care For The Uninsured Act 6 October 1999    1999 Ron Paul 104:12 The contest now, unfortunately, is not between free market health care and nationalized health care but rather between those who believe they speak for the patient and those believing they must protect the rights of corporations to manage their affairs as prudently as possible. Since the system is artificial there is no right side of this argument and only political forces between the special interests are at work. This is the fundamental reason why a resolution that is fair to both sides has been so difficult. Only the free market protects the rights of all persons involved and it is only this system that can provide the best care for the greatest number. Equality in medical care services can be achieved only by lowering standards for everyone. Veterans hospital and Medicaid patients have notoriously suffered from poor care compared to private patients, yet, rather than debating introducing consumer control and competition into those programs, we’re debating how fast to move toward a system where the quality of medicine for everyone will be achieved at the lowest standards. interest Conference Report On S. 900, Gramm-Leach-Bliley Act 4 November 1999    1999 Ron Paul 113:3 Federal Reserve Governor Edward Gramlich today joined many others who are concerned about the strength of the economy when he warned that the low U.S. savings rate was a cause for concern. Coupled with the likely decline in foreign investment in the United States, he said that the economy will require some potentially “painful” adjustments — some combination of higher exports, higher interest rates, lower investment, and/or lower dollar values. interest Good Time For Congress To Reassess Antitrust Laws 8 November 1999    1999 Ron Paul 114:7 Judge Jackson condemned Microsoft for being a “vigorous protector of its own self-interests.” Now this is to be a crime in America. To care for oneself and do what corporations are supposed to do, that is, maximize profits for stockholders by making customers happy, is the great crime committed in the Microsoft case. interest Good Time For Congress To Reassess Antitrust Laws 8 November 1999    1999 Ron Paul 114:8 Blind to the fact that there is no conflict between the self-interest of a capitalist and the consumers’ best interests, the trust busters go their merry way without a complaint from the Congress which could change these laws. interest Good Time For Congress To Reassess Antitrust Laws 8 November 1999    1999 Ron Paul 114:10 Many big companies have achieved success with government subsidies, contracts, and special interest legislation. This type of bigness must be distinguished from bigness achieved in a free market by providing consumer satisfaction. interest U.S. Foreign Policy of Military Interventionism Brings Death, Destruction and Loss of Life 17 November 1999    1999 Ron Paul 115:6 Sanctions are one thing, but seizures of bank assets of any related business to the Taliban government infuriates and incites the radicals to violence. There is no evidence that this policy serves the interests of world peace. It certainly increases the danger to all Americans as we become the number one target of terrorists. Conventional war against the United States is out of the question, but acts of terrorism, whether it is the shooting down of a civilian airliner or bombing a New York City building, are almost impossible to prevent in a reasonably open society. interest U.S. Foreign Policy of Military Interventionism Brings Death, Destruction and Loss of Life 17 November 1999    1999 Ron Paul 115:10 Our foreign policy is deeply flawed and does not serve our national security interest. In the Middle East, it has endangered some of the moderate Arab governments and galvanized Muslim militants. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:20 Government statistics are continuously reaffirming our great prosperity with evidence of high and rising wages, no inflation, and high consumer confidence and spending. The U.S. Government still enjoys good credit and a strong currency in relationship to most other currencies of the world. We have no trouble financing our public nor private debt. Housing markets are booming and interest rates remain reasonable by modern day standards. Unemployment is low. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:42 Welfare: There was no welfare state in 1900. In the year 2000, we have a huge welfare state which continues to grow each year. Not that special interest legislation did not exist in the 19th century. But for the most part, it was limited and directed toward the monied interest, the most egregious example being the railroads. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:43 The modern-day welfare state has steadily grown since the Great Depression of the 1930s. The Federal Government is now involved in providing healthcare, houses, unemployment benefits, education, food stamps to millions, plus all kinds of subsidies to every conceivable special interest group. Welfare is now a part of our culture, costing hundreds of billions of dollars every year. It is now thought to be a right, something one is entitled to. Calling it an entitlement makes it sound proper and respectable and not based on theft. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:48 Where the General Welfare clause once had a clear general meaning, which was intended to prohibit special interest welfare and was something they detested and revolted against under King George, it is now used to justify any demand of any group as long as a majority in the Congress votes for it. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:63 We cannot ignore corporate welfare, which is part of the problem. Most people think the welfare state involves only giving something to the unfortunate poor. This is generally true. But once the principle established that special benefits are legitimate, the monied interests see the advantages and influences the legislative process. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:81 In the early stages, patients, doctors and hospitals welcomed these programs. Generous care was available with more than adequate reimbursement. It led to what one would expect, abuse, overcharges and overuse. When costs rose, it was necessary through government rulemaking and bureaucratic management to cut reimbursement and limit the procedures available and personal choice of physicians. We do not have socialized medicine but we do have bureaucratic medicine, mismanaged by the government and select corporations who usurp the decisionmaking power from the physician. The way medical care is delivered today in the United States is a perfect example of the evils of corporatism and an artificial system that only politicians, responding to the special interests, could create. There is no reason to believe the market cannot deliver medical care in an efficient manner as it does computers, automobiles and televisions. But the confidence is gone and everyone assumes, just as in education, that only a Federal bureaucracy is capable of solving the problems of maximizing the number of people, including the poor, who receive the best medical care available. In an effort to help the poor, the quality of care has gone down for everyone else and the costs have skyrocketed. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:84 Recently, the Secretary of HUD, using public funds to sue gun manufacturers, claimed this is necessary to solve the problems of crime which government housing perpetuates. If a government agency, which was never meant to exist in the first place under the Constitution, can expand their role into the legislative and legal matters without the consent of the Congress, we indeed have a serious problem on our hands. The programs are bad enough in themselves but the abuse of the rule of law and ignoring the separation of powers makes these expanding programs that much more dangerous to our entire political system and is a direct attack on personal liberty. If one cares about providing the maximum best housing for the maximum number of people, one must consider a free market approach in association with a sound, nondepreciating currency. We have been operating a public housing program directly opposite to this and along with steady inflation and government promotion of housing since the 1960s, the housing market has been grossly distorted. We can soon expect a major downward correction in the housing industry prompted by rising interest rates. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:86 In addition to the military wars, liberty has also suffered from the domestic wars on poverty, literacy, drugs, homelessness privacy and many others. We have in the last 100 years gone from the accepted and cherished notion of a sovereign Nation to one of a globalist new world order. As we once had three separate branches of our government, the United Nations proudly uses its three branches, the World Bank, the IMF and the World Trade Organization to work their will in this new era of globalism. Because the U.S. is by far the strongest military industrial power, it can dictate the terms of these international institutions, protecting what we see as our various interests such as oil, along with satisfying our military industrial complex. Our commercial interests and foreign policy are no longer separate. This allows for subsidized profits while the taxpayers are forced to protect huge corporations against any losses from overseas investments. The argument that we go about the world out of humanitarian concerns for those suffering, which was the excuse for bombing Serbia, is a farce. As bad as it is that average Americans are forced to subsidize such a system, we additionally are placed in greater danger because of our arrogant policy of bombing nations that do not submit to our wishes. This generates the hatred directed toward America, even if at times it seems suppressed, and exposes us to a greater threat of terrorism since this is the only vehicle our victims can use to retaliate against a powerful military state. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:88 Throughout our early history and up to World War I, our wars were fought with volunteers. There was no military draft except for a failed attempt by Lincoln in the Civil War which ended with justified riots and rebellion against it. The attitudes toward the draft definitely changed over the past century. Draftees were said to be necessary to fight in World War I and World War II, Korea and Vietnam. This change in attitude has definitely satisfied those who believe that we have an obligation to police the world. The idiocy of Vietnam served as a catalyst for an antidraft attitude which is still alive today. Fortunately we have not had a draft for over 25 years, but Congress refuses to address this matter in a principled fashion by abolishing once and for all the useless selective service system. Too many authoritarians in Congress still believe that in times of need, an army of teenage draftees will be needed to defend our commercial interests throughout the world. A return to the spirit of the republic would mean that a draft would never be used and all able-bodied persons would be willing to volunteer in defense of their liberty. Without the willingness to do so, liberty cannot be saved. A conscripted army can never substitute for the willingness of freedom-loving Americans to defend their country out of their love for liberty. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:92 No longer is there silver or gold available to protect the value of a steadily depreciating currency. This is a fraud of the worst kind and the type of a crime that would put a private citizen behind bars. But there have been too many special interests benefitting by our fiat currency, too much ignorance and too much apathy regarding the nature of money. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:98 The reasons for rejecting gold and promoting paper are not mysterious, since quite a few special interests benefit. Deficit financing is much more difficult when there is no Central Bank available to monetize government debt. This gives license to politicians to spend lavishly on the projects that are most likely to get them reelected. War is more difficult to pursue if government has to borrow or tax the people for its financing. The Federal Reserve’s ability to create credit out of thin air to pay the bills run up by Congress establishes a symbiosis that is easy for the politician to love. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:99 It is also advantageous for the politicians to ignore the negative effects from such a monetary arrangement, since they tend to be hidden and disseminated. A paper money system attracts support from various economic groups. Bankers benefit from the float that they get with the fractional reserve banking that accompanies a fiat monetary system. Giant corporations who get to borrow large funds at below market interest rates enjoy the system and consistently call for more inflation and artificially low interest rates. Even the general public seems to benefit from the artificial booms brought about by credit creation, with lower interest rates allowing major purchases like homes and cars. interest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:109 The special benefits of foreigners taking our inflated dollars for low priced goods and then loaning them back to us will eventually end. The dollar must fall, interest rates must rise, price inflation will accelerate, the financial asset bubble will burst, and a dangerous downturn in the economy will follow. interest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:8 But in addition, there have been various other special vehicles that our Presidents use without congressional oversight. For example, the exchange stabilization fund set up during the depression has over $34 billion available to be used at the President’s discretion without congressional approval. This slush fund grows each year as it is paid interest on the securities it holds. It was instrumental in the $50 billion Mexican bailout in 1995. interest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:10 We know, of course, it has been involved in the past 50 years in assassinations and government overthrows on frequent occasions. The Federal Reserve operation, which works hand in hand with the administration, is not subject to congressional oversight. The Fed manipulates currency exchange rates, controls short-term interest rates, and fixes the gold price, all behind closed doors. interest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:14 Plans are made for a medical data bank to be kept and used against our wishes. Job banks and details of all our lending activities continue to be of interest to all our national policy agencies, to make sure they know exactly where the drug dealers, the illegal aliens, and tax dodgers are and what they are doing, it is argued. interest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:49 Tobacco is about to be categorized as a drug and prohibition of sorts imposed. This will make the drug war seem small if we continue to expand the tobacco war. Talk about insane government policies of the 20th century, tobacco policy wins the prize. First, we subsidize tobacco in response to demands by the special interests, knowing full well even from the beginning that tobacco had many negative health consequences. Then we spend taxpayers’ money warning the people of its dangers, without stopping the subsidies. interest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:61 Today, financial gurus are obsessed with speculation in the next initial public offering and express no interest in the cause of liberty without which markets cannot exist. interest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:70 Free speech is permitted in our universities for those who do not threaten the status quo of welfarism, globalism, corporatism, and a financial system that provides great benefit to the powerful special interests. If a university professor does not follow the party line, he does not receive tenure. interest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:82 Government, then, instead of being an obstruction to violence, becomes the biggest perpetrator. This invites all the special interests to manipulate the monopoly and evil use of government power. Twenty thousand lobbyists currently swarm Washington seeking special advantage. That is where we find ourselves today. interest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:92 Two, the Constitution is all too frequently made to say exactly what the authors of special legislation want it to say. That is the modern way language can be made relative to our times, but without a precise understanding and respect for the supreme law of the land, that is, the Constitution, it no longer serves as the guide for the rule of law. In its place, we have substituted the rule of man and the special interests. interest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:101 I have good friends who are in basic agreement with my analysis of the current state of the American republic, but argue it is a waste of time and effort to try and change the direction in which we are going. No one will listen, they argue. Besides, the development of a strong, centralized, authoritarian government is too far along to reverse the trends of the 20th century. Why waste time in Congress when so few people care about liberty, they ask? The masses, they point out, are interested only in being taken care of, and the elite want to keep receiving the special benefits allotted to them through special interest legislation. interest NUCLEAR WASTE POLICY AMENDMENTS ACT OF 2000 March 22, 2000    2000 Ron Paul 17:5 * Of course, returning the trust fund money including interest and damages to ratepayers and utilities companies quite obviously does not dispose of the hazardous waste. Waste disposal and public safety, though, remains a power of the state governments under the tenth amendment to the U.S. Constitution which specifies that “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or the people. The public safety and police power have long been held to be state law matters and most appropriately so. interest NUCLEAR WASTE POLICY AMENDMENTS ACT OF 2000 March 22, 2000    2000 Ron Paul 17:7 * It should not be lost on those interested in this issue that the federal government actually encouraged development of this industry to a degree the market would have never “contemplated” by artificially and, again, illegitimately, imposing a federal cap on damages in liability suits. In order to fully weigh the benefits and costs of nuclear power, external costs must be internalized rather than ignored. interest UNNECESSARY SUPPLEMENTAL APPROPRIATIONS AND UNWISE MILITARY ADVENTURISM IN COLOMBIA March 29, 2000    2000 Ron Paul 20:4 What we are doing today, if we pass this bill, is we are going to move into an another area of the world where we have no constitutional interest. interest 2000 EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT March 29, 2000    2000 Ron Paul 21:14 What about the oil companies who support this war; which several oil companies do? Yes, they want investment security, so they want the military industrial complex to come down there and protect their oil interests. The oil interests are very supportive of this war, as well as the helicopter companies. interest Amendment No. 5 Offered By Mr. Paul 30 March 2000    2000 Ron Paul 22:13 It is time to reassess this policy; to come home. We should not be the policemen of the world. The American people are not anxious for us to do this. They have spoken out. A recent poll has shown that 70 percent of the American people are very anxious for us not to be involved in policing the world. They certainly are not interested in us placing United States troops under the command of U.N. and NATO forces. interest Fiscal 2000 Supplemental Appropriations/DEA Funding Cuts Amendment 30 March 2000    2000 Ron Paul 23:4 Why continue a war that does not work? This is money down a rat hole. This is totally wasted money and, as far as I am concerned, only an excuse to sell helicopters and go in to Colombia and protect oil interests. That is the real reason why we are down there. interest Fiscal 2000 Supplemental Appropriations/DEA Funding Cuts Amendment 30 March 2000    2000 Ron Paul 23:8 This is the furtherest stretch of the imagination to believe that what we are spending here on this budget, especially what we are going to do in Colombia, has anything to do with national security. What are we worried about? Are the Colombians going to attack us? This is not national security. This is special interest spending. This is conservative welfarism; that is what it is. interest WHAT IS FREE TRADE? May 2, 2000    2000 Ron Paul 29:13 There really are no costs in the long run. Free trade does not require management. It is implied here on conversation on the House floor so often that free trade is equivalent to say we will turn over the management of trade to the World Trade Organization, which serves special interests. Well, that is not free trade; that is a misunderstanding of free trade. interest WHAT IS FREE TRADE? May 2, 2000    2000 Ron Paul 29:20 Most individuals that I know who promote free trade around Washington, D.C., do not really either understand what free trade is or they do not really endorse it. And they are very interested in the management aspect, because some of the larger companies have a much bigger clout with the World Trade Organization than would the small farmers, small rancher or small businessman because they do not have the same access to the World Trade Organization. interest IDEA FULL FUNDING ACT OF 2000 May 4, 2000    2000 Ron Paul 33:5 * In conclusion, I would remind my colleagues that parents and local communities know their children so much better than any federal bureaucrat, and they can do a better job of meeting a child’s needs than we in Washington. There is no way that the unique needs of my grandchildren, and some young boy or girl in Los Angeles, CA or New York City can be educated by some sort of ‘Cookie Cutter’ approach. Thus, the best means of helping disabled children is to empower their parents with the resources to make sure their children receive an education suited to their child’s special needs, instead of an education that scarifies that child’s best interest on the altar of the ‘Washington-knows-best’ ideology. interest Statement of Ron Paul on the Misuse of the Social Security Number May 11, 2000    2000 Ron Paul 35:7 I hope that we in Congress would not once again allow a problem Congress created to become an excuse for disregarding the constitutional limitations of federal police powers or imposing new mandates on businesses in the name of “protecting privacy.” Federal mandates on private businesses may harm consumers by preventing business from offering improved services such as the ability to bring new products that consumers would be interested in immediately to the consumers’ attention. These mandates will also further interfere with matters that should be resolved by private contracts. interest Statement of Ron Paul on the Misuse of the Social Security Number May 11, 2000    2000 Ron Paul 35:8 Furthermore, as we have seen with the administration’s so-called “medical privacy protection” proposal, federal “privacy protection laws” can actually undermine privacy by granting certain state-favored interests access to one’s personal information. interest Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:6 * A central bank that has no restraints placed on it is always available to the politicians who spend endlessly for reelection purposes. When the private sector lacks its appetite to lend sufficiently to the government, the Federal Reserve is always available to buy treasury debt with credit created out of thin air. At the slightest hint that interest rates are higher than the Fed wants, its purchase of debt keeps interest rates in check; that is, they are kept lower than the market rate. Setting interest rates is an enormous undertaking. It’s price fixing and totally foreign to the principles of free market competition. interest Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:8 * But that’s a fallacy. There is always a cost. Artificially low interest rates prompt lower savings, over-capacity expansion, mal-investment, excessive borrowing, speculation, and price increases in various segments of the economy. And since money creation is not wealth creation, it inevitably leads to a lower value for the currency. The inflation always comes to an end with various victims, many of whom never enjoyed the benefits of the credit creation and deficit spending. interest Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:9 * This silly notion of money and credit gives rise to the conventional wisdom that once the economy gets really rolling, it’s time for the Fed to stop economic growth. The false supposition is that economic growth causes higher prices and higher labor costs, and these evils must be prevented by tightening credit and raising interest rates. But these are only the consequences of the previous monetary expansion and blaming rising prices or higher labor costs is done only to distract from the real culprit-monetary inflation by the Federal Reserve. interest Manipulating Interest Rates May 15, 2000    2000 Ron Paul 36:11 * There are some who see this fallacy and object to deliberately slowing the economy but instead clamor for even more monetary growth to keep interest rates low and the economy booming. But this is just as silly because that leads to even more debasement of the currency, rising prices, and instead of lowering interest rates will in time, due to inflationary expectation, actually raise rates. interest 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. interest The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:12 * The nervousness in the stock and bond markets, and especially in the NASDAQ, indicates that the Congress may soon be facing an entirely different set of financial numbers regarding spending, revenues, interest costs on our national debt and the value of the US dollar. Price inflation of the conventional type will surely return, even if the economy slows. interest Statement of Ron Paul on the Freedom and Privacy Restoration Act (HR 220) May 18, 2000    2000 Ron Paul 38:4 As a test of citizen resistance, the Census bureau asked 21,000 households to report their Social Security number on their census form. One of the reasons the Census bureau is interested in the Social Security number is as a key to unlock information held by other government agencies. interest Statement of Ron Paul on the Freedom and Privacy Restoration Act (HR 220) May 18, 2000    2000 Ron Paul 38:14 I hope that we in Congress would not once again allow a problem Congress created to become an excuse for disregarding the constitutional limitations of federal police powers or imposing new mandates on businesses in the name of “protecting privacy.” Federal mandates on private businesses may harm consumers by preventing business from offering improved services such as the ability to bring new products that consumers would be interested in immediately to the consumers’ attention. These mandates will also further interfere with matters that should be resolved by private contracts. interest Statement of Ron Paul on the Freedom and Privacy Restoration Act (HR 220) May 18, 2000    2000 Ron Paul 38:15 Furthermore, as we have seen with the administration’s so-called “medical privacy protection” proposal, federal “privacy protection laws” can actually undermine privacy by granting certain state-favored interests access to one’s personal information. interest 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. interest U.S. Membership In The Wprld Trade Organization June 19, 2000    2000 Ron Paul 44:2 There are many of us here in the House and many Americans who believe very sincerely that it is not in our best interests to belong to the World Trade Organization, who believe very sincerely that international managed trade, as carried on through the World Trade Organization, does not conform with our Constitution and does not serve our interests. interest U.S. Membership In The Wprld Trade Organization June 19, 2000    2000 Ron Paul 44:3 It said by those who disagree with this so often in the media that those of us who disagree with the World Trade Organization that we are paranoid, we worry too much, and that there is no loss of sovereignty in this procedure. But quite frankly, there is strong evidence to present to show that not only do we lose sovereignty as we deliver this power to the World Trade Organization, that it indeed is not a legal agreement. It does not conform with our Constitution; and, therefore, we as Members of Congress should exert this privilege that we have every 5 years to think about the World Trade Organization, whether it is in our best interests and whether it is technically a good agreement. interest U.S. Membership In The Wprld Trade Organization June 19, 2000    2000 Ron Paul 44:6 Now, more recently, on June 5, the WTO director, General Michael Moore, made this statement and makes it very clear: the dispute settlement mechanism is unique in the international architecture. WTO member governments bind themselves to the outcome from panels and, if necessary, the appellate body. That is why the WTO has attracted so much attention from all sorts of groups who wish to use this mechanism to advance their interests. interest U.S. Membership In The Wprld Trade Organization June 19, 2000    2000 Ron Paul 44:7 Interestingly enough, in the past, if we dealt with trade matters, they came to the U.S. Congress to change the law; they came to elected representatives to deal with this, and that is the way it should be under the Constitution. Today, though, the effort has to be directed through our world trade representative, our international trade representative, who then goes to bat for our business people at the WTO. So is it any surprise that, for instance, the company of Chiquita Banana, who has these trade wars going on in the trade fights, wants somebody in the administration to fight their battle, and just by coincidence, they have donated $1.5 million in their effort to get influence? interest U.S. Membership In The Wprld Trade Organization June 19, 2000    2000 Ron Paul 44:9 The membership in the WTO actually is illegal, illegal any way we look at it. If we are delivering to the WTO the authority to regulate trade, we are violating the Constitution, because it is very clear that only Congress can do this. We cannot give that authority away. We cannot give it to the President, and we cannot give it to an international body that is going to manage trade in the WTO. This is not legal, it is not constitutional, and it is not in our best interests. It stirs up the interest to do things politically, and unelected bureaucrats make the decision, not elected officials. It was never intended to be that way, and yet we did this 5 years ago. We have become accustomed to it, and I think it is very important, it is not paranoia that makes some of us bring this up on the floor. interest WITHDRAWING APPROVAL OF UNITED STATES FROM AGREEMENT ESTABLISHING WORLD TRADE ORGANIZATION June 21, 2000    2000 Ron Paul 45:21 Thomas Jefferson, I am sure, would be aghast at this WTO trade agreement. It is out of the hands of the Congress. It is put into the hands of unelected bureaucrats at the WTO. I would venture to guess even the Hamiltonians would be a bit upset with what we do with trade today. I am pro-trade. I have voted consistently to trade with other nations, with lowering tariffs. But I do not support managed trade by international bureaucrats. I do not support subsidized trade. Huge corporations in this country like the WTO because they have political clout with it. They like it because they have an edge on their competitors. They can tie their competitors up in court. And they can beat them at it because not everybody has access. One has to be a monied interest to have influence at the World Trade Organization. interest World Trade Organization 21 June 2000    2000 Ron Paul 46:11 “On June 5, WTO Director General Michael Moore emphasized the obedience to WTO rulings as not optional. Quote, the dispute settlement mechanism is unique in the international architecture. WTO member governments bind themselves to the outcome from panels and if necessary the appellate body. That is why the WTO has attracted so much attention from all sorts of groups who wish to use this mechanism to advance their interests.” interest World Trade Organization 21 June 2000    2000 Ron Paul 55:3 Thomas Jefferson, I am sure, would be aghast at this WTO trade agreement. It is out of the hands of the Congress. It is put into the hands of unelected bureaucrats at the WTO. I would venture to guess even the Hamiltonians would be a bit upset with what we do with trade today. I am pro-trade. I have voted consistently to trade with other nations, with lowering tariffs. But I do not support managed trade by international bureaucrats. I do not support subsidized trade. Huge corporations in this country like the WTO because they have political clout with it. They like it because they have an edge on their competitors. They can tie their competitors up in court. And they can beat them at it because not everybody has access. One has to be a monied interest to have influence at the World Trade Organization. interest PROVIDING FOR CONSIDERATION OF H.R. 1304, QUALITY HEALTH-CARE COALITION ACT OF 2000 June 29, 2000    2000 Ron Paul 60:6 We need this desperately. We do not need to support the special corporate interests who get the money. The patient does not get the care. The doctors are unhappy. The hospitals are unhappy. And who lobbies against this? Corporate interests. This is total destruction of the doctor-patient relationship. interest Quality Health-Care Coalition Act of 2000 June 29, 2000    2000 Ron Paul 61:3 * As an OB-GYN with over 30 years in practice, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I have tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I have always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO. interest Minding Our Own Business Regarding Colombia Is In The Best Interest Of America September 6, 2000    2000 Ron Paul 69:1 Mr. Speaker, those of us who warned of the shortcomings of expanding our military presence in Colombia were ignored when funds were appropriated for this purpose earlier this year. We argued at that time that clearly no national security interests were involved; that the Civil War was more than 30 years old, complex with three factions fighting, and no assurance as to who the good guys were; that the drug war was a subterfuge, only an excuse, not a reason, to needlessly expand our involvement in Colombia; and that special interests were really driving our policy: Colombia Oil Reserves owned by American interests, American weapons manufacturers, and American corporations anxious to build infrastructure in Colombia. interest Minding Our Own Business Regarding Colombia Is In The Best Interest Of America September 6, 2000    2000 Ron Paul 69:7 Our policy is doomed to fail. There is no national security interest involved; therefore, no goals can be set and no victory achievable. A foreign policy of non-intervention designed only to protect our sovereignty with an eagerness to trade with all nations willing to be friends is the traditional American foreign policy and would give us the guaranteed hope of peace, the greatest hope of peace and prosperity. interest Minding Our Own Business Regarding Colombia Is In The Best Interest Of America September 6, 2000    2000 Ron Paul 69:8 Let us think seriously about our foreign policy, and hopefully someday we will pursue a policy in the best interest of America by minding our own business. interest United States Holocaust Memorial Museum September 7, 2000    2000 Ron Paul 70:1 * Mr. Chairman, I rise today in hesitant opposition to H.R. 4115, the U.S. Holocaust Memorial Museum Authorization Act. We as vigilant Americans must never forget the horrific lessons of the past and those attendant consequences of corporatism, fascism, and tyrannical government; that is, governmental deprivation of individual rights. A government which operates beyond its proper limits of preserving liberty never bodes well for individual rights to life, liberty and property. Particularly, Adolph Hitler’s tyrannical regime is most indicative of the necessary consequences of a government dominated by so-called ‘government-business’ partnerships, gun-confiscation schemes, protectionism, and abandonment of speech and religious freedom in the name of ‘compelling government interests.’ interest TWENTY-FIFTH ANNIVERSARY OF EDUCATION FOR ALL HANDICAPPED CHILDREN ACT September 25, 2000    2000 Ron Paul 80:5 * In conclusion, I would remind my colleagues that parents and local communities know their children so much better than any federal bureaucrat, and they can do a better job of meeting a child’s needs than we in Washington. There is no way that my grandchildren, and some young boy or girl in Los Angeles, CA or New York City can be educated by some sort of ‘Cookie Cutter’ approach. Thus, the best means of helping disabled children is to empower their parents with the resources to make sure their children receives an education suited to that child’s special needs, instead of an education that scarifies that child’s best interest on the altar of the ‘Washington-knows-best’ ideology. interest CONGRESS IGNORES ITS CONSTITUTIONAL RESPONSIBILITY REGARDING MONETARY POLICY October 11, 2000    2000 Ron Paul 84:4 It should surprise no one that our financial markets are getting more volatile every day. Inflating a currency and causing artificially low interest rates always leads to malinvestment, overcapacity, excessive debt, speculation, and dangerous trade imbalances. We now live in a world awash in a sea of fiat currencies, with the dollar, the yen, and the Euro leading the way. The inevitable unwinding of the wild speculation, as reflected in the derivatives market, is now beginning. interest CONGRESS IGNORES ITS CONSTITUTIONAL RESPONSIBILITY REGARDING MONETARY POLICY October 11, 2000    2000 Ron Paul 84:7 The Federal Reserve, which maintains a monopoly control over the money supply, credit and interest rates, is indeed the culprit and should be held accountable. But the real responsibility falls on the Congress, for it is Congress’ neglect that permits the central bank to debase the dollar at will. interest WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY October 12, 2000    2000 Ron Paul 86:4 Most good economists recognize that inflation is a consequence of monetary policy; as one increases the supply of money, it inflates the currency. This distorts interest rates, and it distorts the markets. Sometimes this goes into goods and services, and other times these excessive funds will go into marketplaces and distort the value of stocks and bonds. interest THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:12 So now we have the government money police targeting normal financial activities that until recently have been perfectly legal, simply because a person decides in his own best interests, to go offshore. We all know that in the US, African-American, Latino, Asian-American and other racial minorities have been unfairly subject to police ‘profiling.’ Add to that list of ‘presumed guilty,’ Americans who engaged in offshore financial activity. interest PALMETTO BEND CONVEYANCE ACT October 24, 2000    2000 Ron Paul 89:2 * S. 1474 merely facilitates the early payment of the project’s construction costs (discounted, of course, by the amount of interest no longer due as a consequence of early payment) and transfers title of the Palmetto Bend Project to the Texas state authorities. Both the Lavaca Navidad River Authority and Texas Water Development Board concur that an early buy-out and title transfer is extremely beneficial to the economic and operational well-being of the project as well as the Lake Texana water users. The Texas Legislature and Governor George W. Bush have both formally supported the early payment and title transfer. interest NATIONAL SCIENCE EDUCATION ACT October 25, 2000    2000 Ron Paul 91:1 * Mr. Speaker, I urge my colleagues to reject the National Science Act (H.R. 4271), which violates the limits on congressional power found in Article 1, section 8 and the 10th amendment to the Constitution by using tax monies unjustly taken from the American people to promote the educational objectives favored by a few federal politicians and bureaucrats. As an OB-GYN, I certainly recognize the importance of increasing the quality of science education as well as undertaking efforts to interest children in the sciences. However, while I share the goals of the drafters of this legislation, I recognize that Congress has no constitutional authority to single out any one academic discipline as deserving special emphasis. Instead, the decision about which subjects to emphasize should be made by local officials, educators and parents. interest ECONOMIC PROBLEMS AHEAD November 13, 2000    2000 Ron Paul 93:3 * Mises, the great 20th century economist, predicted decades before the fall of the Soviet system that socialism was unworkable and would collapse upon itself. Although he did not live to see it, he would not have been surprised to witness the events of 1989 with the collapse of the entire Communist-Soviet system. Likewise, the interventionist-welfare system endorsed by the West, including the United States, is unworkable. Even without the current problems in the Presidential election, signs of an impasse within our system were evident. Inevitably, a system that decides almost everything through pure democracy will sharply alienate two groups: the producers, and the recipients of the goods distributed by the popularly elected congresses. Our system is not only unfairly designed to take care of those who do not work, it also rewards the powerful and influential who can gain control of the government apparatus. Control over government contracts, the military industrial complex and the use of our military to protect financial interests overseas is worth great sums of money to the special interests in power. interest 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. interest OUR FOOLISH WAR IN THE MIDDLE EAST November 15, 2000    2000 Ron Paul 95:4 * It is clear that we are not in the Middle East for national security reasons but instead to protect powerful commercial interests. This assures we protect oil supplies for the West, and provides us with an excuse to keep the military industrial complex active. interest OUR FOOLISH WAR IN THE MIDDLE EAST November 15, 2000    2000 Ron Paul 95:9 * Our policy in the Middle East cannot possibly be successful. It’s obvious there will be an inevitable conflict between our support for the moderate Arabs- which antagonizes the Islamic fundamentalists of this region- and our special treatment for Israel. It is clear that the powerful financial interests of this country want to use our military force to protect their commercial and oil interests in this region, while there will always remain powerful U.S. political support for the State of Israel. The two sides never will be reconciled by our attempt to balance our support by giving help to both sides. This is exactly opposite of being neutral and friends with both sides. The one reason why this confrontation is going to continue is that 75% of known oil reserves are now owned by Muslims around the world. interest OUR FOOLISH WAR IN THE MIDDLE EAST November 15, 2000    2000 Ron Paul 95:14 * Our many failures in the last fifty years should prompt us to reassess our entire foreign policy of interventionism. The notion that since we are the only superpower left we have an obligation to tell everybody else how to live should come an end. Our failure in Korea, Vietnam, Somalia, and the Middle East, and our failure yet come to in Bosnia and Kosovo should alert all Americans to this great danger. But no, we instead continue to expand our intervention by further involving ourselves in yet another sovereign nation. This time it’s Columbia. By sending more weapons into the region we continue to stir up this 30-year civil conflict. And just recently this conflict has spilled over into Venezuela, a major force in South America due to its oil reserves. The Foreign Minister of Venezuela, angered by U.S. actions, recently warned that “any ship or boat which enters the Gulf of Venezuela, of whatever nationality it may be, will be expelled.” Our intervention in many of these regions, and especially in South America, has been done in the name of the drug war. But the truth is it’s serving the interests of the companies who own the oil rights in this region, as well as those who produce the weapons that get sent into these regions. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:3 * Soon we will hear from many, we have already heard some from the financial circles as well as from politicians, to lower interest rates. This will keep the economy from turning down. It will prevent the recession from coming. And if we do have a recession, it is always said, what you do is you lower the interest rates. But dwelling on the interest rates and not talking about what it takes to lower interest rates I think is a serious mistake. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:4 * The only way the Federal Reserve can lower interest rates is by inflating the money supply, increasing the money supply, which is the cause of our problems. So if the cause of our problem is the inflation, increasing the money supply which causes a boom, we can hardly solve our problems by further inflating. And then, too, there is a period of time in the business cycle where inflating the money supply or lowering interest rates do not get the response that many people hope for. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:5 * Take, for instance, what is happening in Japan today. There is no response whatsoever. They take interest rates down below one percent, and they cannot generate economic activity to really get them out of their slump. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:6 * The other irony of all this is that when we have an economic boom, another reason given for raising interest rates to slow up the economy is to stop the inflation. This is fallacious thinking because the inflation comes from the money supply. The idea that economic growth and prosperity and productivity causes inflation, that is the price type of inflation, is wrong. If we have good productivity, prices go down, they do not go up. So the whole notion that we have to slow up the economy in order to prevent inflation is absolutely incorrect. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:9 * Now, if in the midst of a recession the Federal Reserve decides that they want to lower interest rates but the dollar is also dropping and we lower interest rates, we cause the dollar to go down and price inflation will occur because of that. So it is not quite so simple as saying, well, let us just tell the Fed what to do, lower the interest rates and it will solve our problems. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:14 * We will soon be hearing a lot about interest rates. There will be a loud clamor from all quarters for the Fed to lower interest rates. It will be argued that it is necessary in order to help stop the stock market slide/crash and also to stimulate a sagging economy. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:15 * What we must remember though, is that every time someone pressures the Fed to lower interest rates, they are saying to the Fed that the money supply must be inflated. The only tool the Fed has for lowering interest rates is to increase the supply of money. They are arguing the case for further systematic and deliberate debasement of the US dollar. Those who chant for lower interest rates are literally attacking the dollar. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:16 * And yet, depending on many variables, a deliberate attempt by the Federal Reserve to lower interest rates may instead lead to higher interest rates and precipitate a period of accelerating price inflation. Instead of boosting the stock market, this effort can do the opposite by producing conditions that will lower the stock market and do nothing to avert the economic slump that more people are now worried about. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:24 * The big debate already started in the financial and political circles is when, how much, and how quickly the Federal Reserve should lower interest rates. Indeed all will clamor to lower rates to revive the economy again. With the signs of rising prices in many sectors, especially energy, and in spite of the weak economy we can expect the Federal Reserve chairman to issue precautionary statements. He will reiterate that he must watch out for the resurgence of (price) inflation. In spite of his statements about concerns for inflation, if the stock market slumps and the economic slowdown is significant enough, we can be certain of one thing, the money supply will continue to grow rapidly in an attempt to keep interest rates low. But Mr. Greenspan will never admit that inflating is exactly what he’s been generously doing for the past 13 years. interest 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. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:26 * We should never blame economic growth as the culprit. Instead artificial growth, mal-investment, overcapacity, speculation, and excessive debt that comes from systematic monetary inflation should be blamed, since these are all a result of Federal Reserve Board policy. Let there be no doubt political and financial leaders will demand lower interest rates in order to alleviate the conditions that are developing. But just because a boom can come from generous Fed credit, it doesn’t mean the bubble economy can be maintained or re-inflated by easy credit once a correction sets in. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:27 * Besides, Alan Greenspan knows full well that the scenario we are now experiencing can be made worse by lowering interest rates. Under the conditions we are facing it’s very likely the dollar will weaken and deliberately lowering interest rates will accelerate this trend. Price inflation, which the Fed claims it is so concerned about, will not necessarily go away even with a weak economy. And the one thing we will come to realize that even the best of all central bankers, Alan Greenspan, will not be able to determine interest rates at all times of the business cycle. Inflation premiums, confidence, the value of the dollar, and political conditions all can affect interest rates and these are out of the control of the Federal Reserve Board. interest ECONOMIC UPDATE December 4, 2000    2000 Ron Paul 97:28 * Congress definitely should be concerned about these matters. Budgetary planning will get more difficult as the revenues spiral downward and spending does the opposite. Interest on the national debt will continue and will rise as interest rates rise. The weak dollar, lower stock markets and inflation can affect every fixed income citizen, especially the Social Security beneficiaries. We can expect the World Trade Organization=s managed trade war will actually get much worse under these conditions. Military conflict is not out of the question under the precarious conditions that are developing. Oil supplies are obviously not secure, as we have already seen the run up of prices to dangerously high levels. interest INTRODUCTION OF THE IDENTITY THEFT PREVENTION ACT — HON. RON PAUL Wednesday, January 3, 2001    2001 Ron Paul 1:12 * Second, the federal government has been creating property interests in private information for interest INTRODUCTION OF THE IDENTITY THEFT PREVENTION ACT — HON. RON PAUL Wednesday, January 3, 2001    2001 Ron Paul 1:13 * Perhaps the most outrageous example of phony privacy protection is the Clinton Administration’s so-called “medical privacy” proposal, which allow medical researchers, certain business interests, and law enforcement officials’ access to health care information, in complete disregard of the Fifth Amendment and the wishes of individual patients! Obviously, “privacy protection” laws have proven greatly inadequate to protect personal information when the government is the one providing or seeking the information. interest INTRODUCTION OF THE FAMILY EDUCATION FREEDOM ACT — HON. RON PAUL Wednesday, January 31, 2001    2001 Ron Paul 3:9 * Clearly, enactment of the Family Education Freedom Act is the best thing this Congress could do to improve public education. furthermore, a greater reliance on parental expenditures rather than government tax dollars will help make the public schools into true community schools that reflect the wishes of parents and the interests of the students. interest India Disaster Relief 31 January 2001    2001 Ron Paul 5:4 It was ironic that today, although there was talk earlier about sending some goods and surpluses, that actually the ambassador today sadly said he was not interested in any surpluses; he just wanted the dollars to come over there. And there may be a good reason for this, for efficiency sake or whatever. But in a way, I think if we have some surplus in food or something, we should be able to provide that. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:5 The feared gridlock anticipated for the 107th Congress will differ little from the other legislative battles in recent previous congresses. Yes, there will be heated arguments regarding the size of budgets, local vs. federal control, and private vs. government solutions. But a serious debate over the precise role for government is unlikely to occur. I do not expect any serious challenge to the 20th Century consensus of both major parties-that the federal government has a significant responsibility to deal with education, health care, retirement programs, or managing the distribution of the welfare state benefits. Both parties are in general agreement on monetary management, environmental protection, safety and risks both natural and man-made. Both participate in telling others around the world how they must adopt a democratic process similar to ours, as we police our worldwide financial interests. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:14 How true bipartisanship works in Washington is best illustrated by the way a number of former Members of Congress make a living after leaving office. They find it quite convenient to associate with other former Members of the opposing party and start a lobbying firm. What might have appeared to be contentious differences when in office are easily put aside to lobby their respected party Members. Essentially no philosophic difference of importance exists-it’s only a matter of degree and favors sought, since both parties must be won over. The differences they might have had while they were voting Members of Congress existed only for the purpose of appealing to their different constituencies, not serious differences of opinion as to what the role of government ought to be. This is the reality of bipartisanship. Sadly our system handsomely rewards those who lobby well and in a bipartisan fashion. Congressional service too often is a training ground or a farm system for the ultimate government service: lobbying Congress for the benefit of powerful and wealthy special interests. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:15 It should be clearly evident, however, that all the campaign finance reforms and lobbying controls conceivable will not help the situation. Limiting the right to petition Congress or restricting people’s right to spend their own money will always fail and is not morally acceptable and misses the point. As long as government has so much to offer, public officials will be tempted to accept the generous offers of support from special interests. Those who can benefit have too much at stake not to be in the business of influencing government. Eliminating the power of government to pass out favors is the only real solution. Short of that, the only other reasonable solution must come by Members’ refusal to be influenced by the pressure that special-interest money can exert. This requires moral restraint by our leaders. Since this has not happened, special-interest favoritism has continued to grow. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:41 Although computer technology has been quite beneficial to the economy, in some ways these benefits have been misleading by hiding the ill effects of central-bank manipulation of interest rates and by causing many to believe that the usual business-cycle correction could be averted. Instead, delaying a correction that is destined to come only contributes to greater distortions in the economy, thus requiring an even greater adjustment. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:43 Western leaders for most of the 20th Century have come to accept a type of central planning they believe is not burdened by the shortcomings of true socialist-type central planning. Instead of outright government ownership of the means of production, the economy was to be fine-tuned by fixing interest rates (FED Funds Rates), subsidizing credit (Government Sponsored Enterprises), stimulating sluggish segments of the economy (Farming and the Weapons Industry), aiding the sick (Medicaid and Medicare), federally managing education (Department of Education), and many other welfare schemes. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:45 In an economic downturn, a large majority of our political leaders believe that the ill effects of recession can be greatly minimized by monetary and fiscal policy. Although cutting taxes is always beneficial, spending one’s way out of a recession is no panacea. Even if some help is gained by cutting taxes or temporary relief given by an increase in government spending, they distract from the real cause of the downturn: previously pursued faulty monetary policy. The consequences of interest-rate manipulation in a recession-along with tax and spending changes-are unpredictable and do not always produce the same results each time they’re used. This is why interest rates of less than 1% and massive spending programs have not revitalized Japan’s economy or her stock market. We may well be witnessing the beginning of a major worldwide economic downturn, making even more unpredictable the consequence of conventional western-style central bank tinkering. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:47 It’s important to understand how we got ourselves into this mess. The blind faith that wealth and capital can be created by the central bank’s creating money and credit out of thin air, using government debt as its collateral, along with fixing short-term interest rates, is a myth that must one day be dispelled. All the hopes of productivity increases in a dreamed-about new-era economy cannot repeal eternal economic laws. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:55 During the past 30 years in the post-Bretton Woods era, worldwide sentiment has permitted us to inflate our money supply and get others to accept the dollar as if it were as good as gold. This convenient arrangement has discouraged savings, which are now at an historic low. Savings in a capitalist economy are crucial for furnishing capital and establishing market interest rates. With negative savings and with the FED fixing rates by creating credit out of thin air and calling it capital, we have abandoned a necessary part of free-market capitalism, without which a smooth and growing economy is sustainable. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:57 The most recent new era of the 1990s appeared to be an answer to all politicians’ dreams: a good economy, low unemployment, minimal price inflation, a skyrocketing stock market, with capital gains tax revenues flooding the Treasury, thus providing money to accommodate every special-interest demand. But it was too good to be true. It was based on an inflated currency and massive corporate, personal, and government borrowing. A recession was inevitable to pay for the extravagance that many knew was an inherent part of the new era, understanding that abundance without a commensurate amount of work was not achievable. interest 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. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:59 A slumping stock market will also cause the dollar to decline and interest rates to rise. Federal Reserve Board central planning through interest-rate control is not a panacea. It is instead the culprit that produces the business cycle. Government and FED officials have been reassuring the public that no structural problems exists, citing no inflation and a gold price that reassures the world that the dollar is indeed still king. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:60 The FED can create excess credit, but it can’t control where it goes as it circulates throughout the economy; nor can it dictate value either. Claiming that a subdued government-rigged CPI and PPI proves that no inflation exists is pure nonsense. It is well established that, under certain circumstances, new credit inflation can find its way into the stock or real estate market, as it did in the 1920s, while consumer prices remain relatively stable. This does not negate the distortion inherit in a system charged with artificially low interest rates. Instead it allows the distortion to last longer and become more serious, leading to a bigger correction. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:64 Recent deterioration of the junk-bond market indicates how serious the situation is. Junk bonds are now paying 9% to 10% more than short-term government securities. The quality of business loans is suffering, while more and more corporate bonds are qualifying for junk status. The FED tries to reassure us by attempting to stimulate the economy with low short-term FED fund rates at the same time interest rates for businesses and consumers are rising. There comes a time when FED policy is ineffective, much to everyone’s chagrin. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:66 There is much more to inflation than rising prices. Inflation is defined as the increase in the supply of money and credit. Obsessively sticking to the rising prices definition conveniently ignores placing the blame on the responsible party – the Federal Reserve. The last thing central banks or the politicians, who need a backup for all their spending mischief, want is for the government to lose its power to create money out of thin air, which serves political and privileged financial interests. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:68 Much else related to artificially low interest rates goes unnoticed. An overpriced stock market, overcapacity in certain industries, excesses in real-estate markets, artificially high bond prices, general mal-investments, excessive debt, and speculation all result from the generous and artificial credit the Federal Reserve pumps into the financial system. These distortions are every bit, if not more, harmful than rising prices. As the economy soars from the stimulus effect of low interest rates, growth and distortions compound themselves. In a slump the reverse is true, and the pain and suffering is magnified as the adjustment back to reality occurs. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:80 Foreign military interventionism, a policy the US has followed for over 100 years, encourages war and undermines peace. Even with the good intentions of many who support this policy, it serves the interests of powerful commercial entities. Perpetual conflicts stimulate military spending. Minimal and small wars too often get out of control and cause more tragedy than originally anticipated. Small wars like the Persian Gulf War are more easily tolerated, but the foolishness of an out-of-control war like Vietnam is met with resistance from a justifiably aroused nation. But both types of conflicts result from the same flawed foreign policy of foreign interventionism. Both types of conflicts can be prevented. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:81 National security is usually cited to justify our foreign involvement, but this excuse distracts from the real reason we venture so far from home. Influential commercial interests dictate policy of when and where we go. Persian Gulf oil obviously got more attention than genocide in Rwanda. If one were truly concerned about our security and enhancing peace, one would always opt for a less militarist policy. It’s not a coincidence that US territory and US citizens are the most vulnerable in the world to terrorist attacks. Escalation of the war on terrorism and not understanding its cause is a dangerous temptation. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:84 But it’s rarely mentioned that the lobbyists and proponents of foreign intervention are the weapons manufacturers, the oil companies, and the recipients of huge contracts for building infrastructures in whatever far corner of the earth we send our troops. Financial interests have a lot at stake, and it’s important for them that the United States maintains its empire. Not infrequently, ethnic groups will influence foreign policy for reasons other than preserving our security. This type of political pressure can at times be substantial and emotional. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:97 Our policy should change for several reasons. It’s wrong for our foreign policy to serve any special interest, whether it’s for financial benefits, ethnic pressures, or some contrived moral imperative. Too often the policy leads to an unintended consequence, and more people are killed and more property damaged than was intended. Controlling world events is never easy. It’s better to avoid the chance of one bad decision leading to another. The best way to do that is to follow the advice of the Founders and avoid all entangling alliances and pursue a policy designed solely to protect US national security interests. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:101 Although the justification for our enhanced presence is the War on Drugs, protecting US oil interests and selling helicopters are the real reasons for last years’ $1.3 billion emergency funding. Already neighboring countries have expressed concern about our presence in Colombia. The US policymakers gave their usual response by promising more money and support to the neighboring countries that feel threatened. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:109 The political system of interventionism always leads to social discord. Interventionism is based on relative rights, majoritarianism, and disrespect for the Constitution. Degenerating moral standards of the people encourages and feeds on this system of special-interest favoritism, all of which contribute to the friction. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:113 Conflicts between classes, races, ethnic groups, and even generations are already apparent. This is a consequence of pitting workers and producers against moochers and the special-interest rich. Divvying up half of the GDP through a process of confiscatory taxation invites trouble. It is more easily tolerated when wealth abounds; but when the economy slips, quiescent resentment quickly turns to noisy confrontation. Those who feel slighted become more demanding at the same time resources are diminished. interest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:147 Our economic, military, and political power, second to none, has perpetuated a system of government no longer dependent on the principles that brought our Republic to greatness. Private-property rights, sound money, and self-reliance have been eroded, and they have been replaced with welfarism, paper money, and collective management of property. The new system condones special-interest cronyism and rejects individualism, profits, and voluntary contracts. interest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:3 Mr. Speaker, foreign military interventionism, a policy the U.S. has followed for over 100 years, encourages war and undermines peace. Even with the good intentions of many who support this policy, it serves the interests of powerful commercial entities. interest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:5 But both types of conflicts result from the same flawed foreign policy of foreign interventionism. Both types of conflict can be prevented. National security is usually cited to justify our foreign involvement, but this excuse distracts from the real reason we venture so far from home. Influential commercial interests dictate policy of when and where we go. Persian Gulf oil obviously got more attention than genocide in Rwanda. interest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:10 The excuses are endless. But it is rarely mentioned that the lobbyists and the proponents of foreign intervention are the weapons manufacturers, the oil companies, and the recipients of huge contracts for building infrastructures in whatever far corners of the Earth we send our troops. Financial interests have a lot at stake, and it is important for them that the United States maintains its empire. interest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:26 Our policy should change for several reasons. It is wrong for our foreign policy to serve any special interest, whether it is for financial benefits, ethnic pressures, or some contrived moral imperative. Too often the policy leads to an unintended consequence, and more people are killed and more property damaged than was intended. interest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:27 Controlling world events is never easy. It is better to avoid the chance of one bad decision leading to another. The best way to do that is to follow the advice of the Founders and avoid all entangling alliances, and pursue a policy designed solely to protect U.S. national security interests. interest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:31 Our involvement in Colombia could easily escalate into a regional war. For over 100 years, we have been involved in the affairs of Central America, but the recent escalation of our presence in Colombia is inviting trouble for us. Although the justification for our enhanced presence is the war on drugs, protecting U.S. oil interests and selling helicopters are the real reasons for the last year’s $1.3 billion emergency funding. interest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:40 The political system of interventionism always leads to social discord. Interventionism is based on relative rights, majoritarianism, and disrespect for the Constitution. Degenerating moral standards of the people encourages and feeds on this system of special interest favoritism, all of which contributes to the friction. interest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:45 Conflicts between classes, races and ethnic groups and even generations are already apparent. This is a consequence of pitting workers and producers against the moochers and the special-interest rich. Divvying up half of the GDP through a process of confiscatory taxation invites trouble. It is more easily tolerated when wealth abounds. But when the economy slips, quiescent resentment quickly turns to noisey confrontation. interest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:93 Our economic, military, and political power, second to none, has perpetuated a system of government no longer dependent on the principles that brought our Republic to greatness. Private-property rights, sound money and self-reliance have been eroded; and they have been replaced with welfarism, paper money, and collective management of property. The new system condones special-interest cronyism and rejects individualism, profits and voluntary contracts. interest H. Res 34 13 February 2001    2001 Ron Paul 12:2 Certainly Israel has been a longstanding friend to the United States, sharing many of our interests including peace, open trade, and free movement across international borders. It is equally clear that the people of Israel and the Middle East have long been torn by violence and, as such, share our desire to seek peace. We should, in fact, call for an end to the violence and hope all parties will see why this must be achieved. We are also right to congratulate Mr. Sharon, as is customary to be done with the victor of any election. We have all fought those battles ourselves and rightly understand the commitment needed to succeed in that arena. interest H. Res 34 13 February 2001    2001 Ron Paul 12:5 This brings me to the second problem, the procedural laxity involved here. This resolution was submitted by a number of distinguished members and referred to the Committee on International Relations. The highly-regarded chairman of that committee is the primary sponsor of this legislation and a number of other committee members are among its original cosponsors. Nonetheless, a number of other members of the committee and I were not included in the process. Perhaps, had this bill traveled through the commonly established processes of this institution we would have had the ability to clarify the “commitments” and “other purposes” to which this bill refers. In short, had the committee held a hearing and mark-up, the vagaries could’ve been removed in the markup process. In such an instance it would be likely that we could achieve the kind of unanimous support for these resolutions, for which I often hear personal appeals. In the future, those who are interested in gaining such unanimous support might consider these procedural concerns if they seek unanimity on this floor. In the instant case, however I must vote “no” for the reasons I have here expressed. interest The Economy February 13, 2001    2001 Ron Paul 13:3 Raising interest rates 6 times in 1999-2000 has had an effect and the central planners are now worried. Falsely, they believe that if only the money spigot is once again turned on, all will be well. That will prove to be a pipe dream. interest The Economy February 13, 2001    2001 Ron Paul 13:5 And what’s happening to employment conditions? They’re deteriorating rapidly. Economist Ed Hyman, reported that 270,000 people lost their jobs in January, a 678% increase over a year ago. A growing number of economists are now doubtful that productivity growth will save us from the correction that many free market economists predicted would come as an inevitable consequence of the interest rate distortions that Federal Reserve policy causes. interest The Economy February 13, 2001    2001 Ron Paul 13:6 Instead of blind faith in the Federal Reserve to run the economy, we should become more aware of Congress’s responsibility for maintaining a sound dollar and removing the monopoly power of our central bank to create money and credit out of thin air and fix short term interest rates—which is the real cause of all our economic downturns. interest The Economy February 13, 2001    2001 Ron Paul 13:7 Between 1995 and today, the Greenspan Fed increased the money supply as measured by (MZM) by $1.9 trillion or a 65% increase. There is no reason to look any further for the explanation of why the economy is slipping with labor costs rising, energy costs soaring, and medical and education costs skyrocketing, while the stock market is disintegrating. Until we look at the unconstitutional monopoly power the Federal Reserve has over money and credit we can expect a continuation of our problems. Demanding lower interest rates is merely insisting the Federal Reserve deliberately create even more credit, which caused the problem in the first place. We cannot restore soundness to the dollar by debasing the dollar—which is what lowering interest rates is all about—printing more money. interest The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:8 Politicians and economists are very familiar with business cycles with most assuming that slumps erupt as: 1.) A natural consequence of capitalism, 2.) An act of God, 3.) Or as a result of Fed driven high interest rates. That is to say, the Fed did not engage in enough monetary debasement, becomes the most common complaint by Wall Street pundits and politicians. interest The Medical Privacy Protection Resolution March 15, 2001    2001 Ron Paul 19:7 * Forcing individuals to divulge medical information without their consent also runs afoul of the fifth amendment’s prohibition on taking private property for public use without just compensation. After all, people do have a legitimate property interest in their private information. Therefore, restrictions on an individual’s ability to control the dissemination of their private information represents a massive regulatory taking. The takings clause is designed to prevent this type of sacrifice of individual property rights for the “greater good.” interest The Medical Privacy Protection Resolution March 15, 2001    2001 Ron Paul 19:14 * These regulations violate the fundamental principles of a free society by placing the perceived “societal” need to advance medical research over the individual’s right to privacy. They also violate the fourth and fifth amendments by allowing law enforcement officials and government favored special interests to seize medical records without an individual’s consent or a warrant and could facilitate the creation of a federal database containing the health care data of every American citizen. These developments could undermine the doctor-patient relationship and thus worsen the health care of millions of Americans. I, therefore, call on my colleagues to join me in repealing this latest threat to privacy and quality health care by cosponsoring the Medical Privacy Protection Resolution. interest Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:1 Mr. PAUL. Mr. Speaker, today the Federal Reserve lowered interest rates by a half a percentage point. They have been asked to lower this interest rates by just about everybody in the country. Whether they are investors or politicians, everybody literally has been screaming at the Fed and Alan Greenspan to lower the interest rates, lower the interest rates. interest Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:2 It was anticipated that he would, and he did. He lowered the interest rates by 50 basis points. The stock market promptly went down 236 points. So obviously just lowering interest rates is not the solution to the problems we face. As a matter of fact, I believe it is the problem. interest Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:3 Interest rates have been manipulated by the Federal Reserve as long as I can remember, especially in the last 30 years since we have had a total fiat monetary system. So it is the manipulation of interest rates that causes a problem. interest Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:4 In a free market economy, you do not have a central bank pretending it has knowledge it does not have, that it knows exactly what the money supply should be and what interest rate should be. That is a prescription for disaster; and it leads to booms and busts, speculations in the stock markets, crashes in the stock markets. This is a wellknown phenomenon. It has been with us since 1913, since we have had the Federal Reserve. We have seen it in the speculation in the 1920s and the depression of the 1930s. It is ongoing. interest Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:6 To lower interest rates, a central bank has to increase the money. That is debasement. That is devaluing the money deliberately. In the old days, when the king would do this, they would clip coins. Literally coin debasement, stealing value from coinage in the old days was a capital crime. Today, though, it is accepted practice in all economies of the world. We have had no linkage of any currency of the world in the last 30 years to anything of real value. interest Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:8 Take a look at what is happening in Japan today. Japan lowered their interest rates, too. They have been doing this for a long time. They are down to 0 percent, and nothing seems to be happening. Their stock market is at a level it was 16 years ago. We have to decide whether or not we may be moving into a similar situation. I think it is a very serious problem. interest Manipulation Of Interest Rates Cause Economic Problems 20 March 2001    2001 Ron Paul 22:9 We talk about interest rates. We talk about stimulating the economy. But we really do not talk about the problem, and that is the monetary system and the nature of the dollar. interest Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:2 Some people claim that they are not quite sure why markets go up and all of a sudden crash; and others say if only Alan Greenspan would just print more money, inflate the currency faster, lower the interest rates, all would be well. But I do not think it is that simple. interest Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:4 Only a free market can tell us what interest rates should be or what the money supply should be. But we have become dependent on a Federal Reserve system that pretends to know all these things, and we have allowed Alan Greenspan to believe that he can regulate the entire economy as well as the stock market by the Open Market Committee. interest Addressing Monetary Problems 22 March 2001    2001 Ron Paul 23:11 This type of a monetary system also encourages us to do things unwisely. When interest rates are lower than they are supposed to be, we borrow more money and we do not save as much money, so savings has a negative rate. Yet people are way in debt, business people are in debt, and then business people are actually encouraged to do things that are not wise. They overbuild; they build into the system overcapacity and mal-investment which eventually has to be cleansed out of the system. interest Free Trade April 24, 2001    2001 Ron Paul 24:2 * Professor Lemieux seems to grasp quite well what few in Congress have come to understand — that is, “The primary rationale for free trade is not that exporters should gain larger markets, but that consumers should have more choice — even if the former is a consequence of the latter.” Mr. Lemieux went on to point out that the leaders of the 34 participating states in the recent Quebec summit “are much keener on managed trade than on free trade and more interested in income redistribution and regulation than in the rooting out of trade restrictions.” interest Free Trade April 24, 2001    2001 Ron Paul 24:9 The leaders of the 34 participating states showed that they are much keener on managed trade than on free trade, and more interested in income redistribution and regulation than in the rooting out of trade restrictions. “The creation of a free trade area is not an end in itself,” said Canadian Prime Minister Jean Chrétien. interest Free Trade April 24, 2001    2001 Ron Paul 24:16 Trade agreements are only helpful to the extent that they help tame domestic producers’ interests, support the primacy of consumers, and lock-in the gains from trade. Such treaties should not aim at reducing competition by pursuing other goals, of the sort embraced by the heads of state at Quebec. That would amount to no more than managed trade, the pursuit of which, paradoxically, might be said to unite both the leaders present and the mobs demonstrating against them. interest A New China Policy April 25, 2001    2001 Ron Paul 25:13 It is interesting to note that recent reports reveal that missiles, coming from Israel and financed by American foreign aid, were seen on the fighter plane that caused the collision. It should be equally clear that arming the enemies of our trading partners doesn’t make a whole lot of sense either. For American taxpayers to continue to finance the weaponry of Taiwan, and to maintain an open commitment to send our troops if the border dispute between Taiwan and China erupts into violence, is foolhardy and risky. interest 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. interest U.S. Intervention In South Korea 25 April 2001    2001 Ron Paul 26:5 Fueling this unease among some in Mr. Kim’s government is their belief that the Bush administration views peace on the Korean Peninsula as working against its principal security interests. Central to this is Mr. Bush’s plans to build a national missiledefense shield, for which North Korea’s missile program is a primary justification. U.S. military and intelligence officials have played up in recent weeks both the military and nuclear threats posed by North Korea’s military, re-emphasizing the Pentagon’s need to maintain 37,000 troops in South Korea. interest Repeal of the Selective Service Act April 26, 2001    2001 Ron Paul 28:15 No talk about “honor” solves any problems. Everyone sets out from a rational, self-interested standpoint. What the state should do is maximize the benefits for society as a whole, not limit its thinking to military service. Maintaining a conscription system certainly does more harm than good. Those who wear the badge “being a soldier is a good experience” should ask themselves whether they would be willing to do it again. interest Inflation Is Still With Us 3 May 2001    2001 Ron Paul 30:7 Rising prices and the economic slowdown must be laid at the feet of the Federal Reserve. Likewise, the existing financial bubble is a consequence of the same policy of monetary expansion and artifically low interest rates. Although the NASDAQ bubble has already partially deflated, the entire world financial system suffers from the same distortion; and a lot more adjustment is required. Merely re-inflating with monetary expansion and manipulating interest rates will not solve the problems of debt, mal-investment and overcapacity that plague the system. interest Inflation Is Still With Us 3 May 2001    2001 Ron Paul 30:8 Mismanaging world fiat currencies and working to iron out the trade imbalances that result, through a worldwide managed trade organization, will not suffice. We must one day address the subject of sound money and free market interest rates, where interest rates are not set by the central banks of the world. interest Inflation Is Still With Us 3 May 2001    2001 Ron Paul 30:10 But this is an expected consequence of monetary debasement, which generally leads to social unrest. But, blaming capitalism and freedom for the harm done by inflationism, special interest corporatism, and interventionism presents a danger to us all, since the case for commodity money and individual liberty is lost in the shouting. Unless this message is heard and distinguished from the current system, freedom and prosperity will be lost. Leaders of the current worldwide system that has evolved since the collapse of the Soviet empire pay lip service to free trade and free markets, but tragically they are moving us toward a fascist system of partnerships with government, big businesss, and international banking at the expense of the middle class and the poor. interest H.R. 1646 10 May 2001    2001 Ron Paul 32:8 The only way, since we do not have the amendments to reject outright some of this wasteful and harmful funding, the only way we who believe that our sovereignty is being challenged is to reject 1646. I see no other way to address this subject, because it is not in our best interest to go along with this. interest Letter to HHS Secretary Tommy Thompson Regarding Proposed Medical Privacy Regulation May 23, 2001    2001 Ron Paul 39:1 Thank you for your interest in revising the Department of Health and Human Services’ (HHS) medical privacy regulations. I respectfully urge HHS to revise those sections of the bill that reduce medical privacy by allowing the government increased access to medical records. interest Letter to HHS Secretary Tommy Thompson Regarding Proposed Medical Privacy Regulation May 23, 2001    2001 Ron Paul 39:6 I am also aware that some will make the argument that there is a “social good” in medical research that outweighs the individual’s right to privacy. As a physician, I certainly recognize the value and importance of medical research. However, as a legislator, I also recognize that because people have a property interest in their medical information, forcing individuals to divulge medical information without their consent runs afoul of the fifth amendment’s taking clause, which was designed to prevent sacrifices of individual liberty and property for the “common good.” interest Internationalizing SEC 13 June 2001    2001 Ron Paul 41:7 And we should not take that lightly, although this generally is not of much interest to so many people because we do so much and we have such great hopes that it will always do so much good. From just observing history, recent history, the last 20, 30, 40 years since World War II, so often when we get involved and we send money to help the good guys, it is not infrequent the good things that we send in, goods and services and weapons, end up in the hands of the opposition and the enemy. So that is always a possibility once again. These commodities and services and the things that we send and the money may well end up literally being used against the people we are trying to help. interest Conscription Policies 13 June 2001    2001 Ron Paul 42:7 Recruiting students and vagrants is of no use to a competitive military, since both groups are uninterested in active duty. By contrast, a volunteer army — assuming the country needs any army at all — will yield those with an interest in serving their country and those who seek the military as a place to get that necessary step up into a better life. A primary partner to draft reform would be to offer an alternative for those who request not to serve militarily. Non-combatant positions, such as field doctors and radio operators, might be made civilian positions. Then, those who wish not to engage in battle will be able to serve the nation for as long as they need. interest Re-Importation of Pharmaceuticals 11 July 2001    2001 Ron Paul 50:5 Mr. Chairman, I urge my colleagues to show they are serious about lowering the prices of prescription drugs and that they trust the people to know what is in their best interest by voting for the Sanders amendment to the Agricultural Appropriations bill. interest REIMPORTATION OF FDA-APPROVED PHARMACEUTICALS -- HON. RON PAUL July 17, 2001    2001 Ron Paul 51:6 * In conclusion, Mr. Speaker, I once again wish to express my regret for missing the votes on the amendments by the gentlemen from Vermont and Minnesota and urge my colleagues to show they are serious about lowering the prices of prescription drugs and that they trust the people to do what is in their best interest, by supporting future efforts to establish a true free market in pharmaceuticals. interest Prosecuting Milosevic 18 July 2001    2001 Ron Paul 55:3 The second part is that this stirs up tremendous anti-American sentiment. This is the reason why we are the greatest target in the world for terrorism, because of our intrusion into these areas, pretending that we always know best and that we will trample the law because it serves our self-interests. But I believe our national security and our interests are not best served in this manner. This policy is very dangerous. interest Banning U.S. Contributions To United Nations 18 July 2001    2001 Ron Paul 57:14 Let me just close by saying that I urge a “yes” vote to stop the funding for the peacekeeping missions of the United Nations, believing very sincerely that they do not do much good and they do harm and potentially a great deal of harm in the future. They do not serve our national self-interests. We have the United Nations now involved in the Middle East, Sierra Leone, East Timor, Cambodia, West Sahara, and Yugoslavia. It requires a lot of money. The most likely thing to come of all of this will be more hostility toward America and more likelihood that we will be attacked by terrorists. interest Tribute To Tom Phillips And William Rusher 19 July 2001    2001 Ron Paul 59:1 Mr. PAUL. Mr. Speaker, on Saturday, August 4th Young Americans for Freedom (YAF) will hold its National Convention in Newport Beach, California. At this event the organization will honor two fine people. Mr. Tom Phillips, Chairman of Phillips International, will receive the organization’s highest award, the Guardian of Freedom. Mr. Phillips has been a strong supporter of YAF and is involved in various other entities engaged in the fight for liberty. As publisher of “Human Events,” he has helped to further a publication steeped in the tradition of freedom. Mr. Phillips has also shown a particular interest in the kind of private preservation activities I so frequently advocate. Rather than leave it to the taxpayers to fund and the federal government to manage, Mr. Phillips has personally helped to fund the preservation of President Reagan’s Ranch by the Young America’s Foundation so that it might be used as a training ground for young people dedicated to the individual liberty which President Reagan spoke of so often. interest Statement on the Community Solutions Act of 2001 July 19, 2001    2001 Ron Paul 60:7 Federally-funded social welfare organizations are inevitably less effective than their counterparts because federal funding changes the incentives of participants in these organizations. Voluntary charities promote self-reliance, while government welfare programs foster dependency. In fact, it is in the self-interests of the bureaucrats and politicians who control the welfare state to encourage dependency. After all, when a private organization moves a person off welfare, the organization has fulfilled its mission and proved its worth to donors. In contrast, when people leave government welfare programs, they have deprived federal bureaucrats of power and of a justification for a larger amount of taxpayer funding. interest Export-Import Bank 24 July 2001    2001 Ron Paul 61:3 This is just a small effort to rein in the power of the special interests, the powerful special interests. It has been mentioned that jobs could be lost. In the debate, there has been emphasis on jobs, and the truth is that it may happen. Jobs could be lost. But what Members fail to realize is that the jobs lost are special interest jobs. If my colleagues take that same funding, and we never talk about what would happen to that $75 billion line of credit of the Export- Import Bank if it were allowed to remain in the economy. Other jobs would be created, so my colleagues cannot argue half of the case. We have to look at the whole picture. Special interest jobs would be lost. True market jobs would be increased. interest Export-Import Bank 24 July 2001    2001 Ron Paul 61:5 Free trade means there are low tariffs, but we do not subsidize any special interests. To me it is rather amazing, the paragraph that we are dealing with is called Subsidy Authorization. There is no pretension anymore. We just advertise, this as a subsidies. When did we get into the business of subsidies? A long time ago, unfortunately. I do not think that the Congress should be in the business of subsidies. interest Export-Import Bank 24 July 2001    2001 Ron Paul 61:8 Mr. Chairman, what I say is let us have some real campaign finance reform and let us get rid of the subsidies and the motivation for these huge corporations to come here and influence our vote. That is what the problem is. We do not need to get the money out of politics, we need to get the money out of Washington and out of the business of subsidizing special interests. That is where our problem is. interest Export-Import Bank 24 July 2001    2001 Ron Paul 61:11 Those who do not like China should vote for this because there is a suggestion that the Export-Import Bank serves the interest of China. So to me it should be an easy vote. The only problem with this amendment is that it is so small. It does not really address the big subject on whether or not the Congress should be in this business. Obviously they should not be. Where do you find the authorization to give subsidy appropriations in the Constitution? It is not there. interest Export-Import Bank 24 July 2001    2001 Ron Paul 61:13 I would strongly urge a yes vote on this amendment and do not support this effort to benefit the big companies and hurt the little guys. The little guys are the ones who lose this line of credit and push their interest rates up. interest Export-Import Bank 24 July 2001    2001 Ron Paul 61:14 Who gets the risk under this situation? The taxpayer. There is a lot of insurance in the Export-Import Bank. The risk goes to the taxpayer, but the profits go to the corporations. What is fair about that? The big corporation cannot lose. So why would the banks not loan to the big special interest corporations? interest Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:3 This paragraph is found in the bill which is called “foreign operations.” It is a subsidy to large corporations, and it is a subsidy to foreign entities and foreign governments. The largest foreign recipient of the foreign aid from this bill is Red China, $6.2 billion. So if one is for free trade, as I am, and as I voted last week to trade with China, one should be positively in favor of my amendment, because this is not free trade. This is subsidized, special interest trade, and I think that is wrong. interest Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:6 It has been said that this is a benefit to so many small corporations. In the last 2 years, more than half of the Export- Import Bank money went to Boeing. So it is not surprising that the gentleman early on mentioned that yes, he would not mind it if all of it went to Boeing. It is said that 85 percent of the money in the individual loans goes to smaller corporations. That is true, but 86 percent of the money goes to the giant corporations. So the big bucks serve the big interests who lobby us and spend a lot of time influencing Washington. interest Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:8 This argument that we create jobs is fictitious. We do not create jobs; we shift jobs, from the weak to the powerful. We do not create a new job by stealing, taking out $75 billion worth of a line of credit from the banks and giving it to special interests. Yes, it looks like they are getting a benefit, but the little guy does not have access to that amount of money. Why should the banks not loan Export-Import Bank money to the large corporations. They are protected. They are insured. Who insures them? The taxpayer. It is a ripoff. The taxpayer suffers all of the risks. interest Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:10 If we oppose corporate welfare and think we ought to address it on principle and decide whether or not the Congress and the U.S. Government and the taxpayers should be in this type of business, we have to vote for my amendment to get us out of this business. This does not serve the interests of the general welfare of the people. This is antagonistic toward the general welfare of the people. It costs the taxpayers money, it puts the risk on the taxpayer, it serves the interests of the powerful special interests. Why else would they come with their lobbying funds? Why else would they come with their huge donations to the political action committees, unless it is a darn good deal for them? interest Iran/Libya Sanctions Act 24 July 2001    2001 Ron Paul 64:9 Mr. Speaker, I am fully aware of the legislative realities as regards this legislation and the powerful interests that want it extended. However, it is not just myself and the Bush Administration suggesting this policy is flawed. The Atlantic Council is a prestigious group cochaired by Lee Hamilton, James Schlesinger and Brent Scowcroft that has suggested in a recent study that we ought to end sanctions upon Iran. interest Iran/Libya Sanctions Act 24 July 2001    2001 Ron Paul 64:10 Mr. Speaker, I believe the time has come for us to consider the U.S. interest and the benefits of friendly commerce with all nations. We are particularly ill-advised in passing this legislation and hamstringing the new Administration at this time. I must oppose any attempt to extend this Act and support any amendment that would reduce the sanction period it contemplates. interest LIFT THE UNITED STATES EMBARGO ON CUBA — HON. RON PAUL July 26, 2001    2001 Ron Paul 66:8 * I certainly understand the emotional feelings many Americans have toward nations such as Iran, Iraq, Libya, and Cuba. Yet we must not let our emotions overwhelm our judgment in foreign policy matters, because ultimately human lives are at stake. For example, 10 years of trade sanctions against Iraq, not to mention aggressive air patrols and even bombings, have not ended Saddam Hussein’s rule. If anything, the political situation has worsened, while the threat to Kuwait remains. The sanctions have, however, created suffering due to critical shortages of food and medicine among the mostly poor inhabitants of Iraq. So while the economic benefits of trade are an important argument against sanctions, we must also consider the humanitarian argument. Our sanctions policies undermine America’s position as a humane nation, bolstering the common criticism that we are a bully with no respect for people outside our borders. Economic common sense, self-interested foreign policy goals, and humanitarian ideals all point to the same conclusion: Congress should work to end economic sanctions against all nations immediately. interest LIFT THE UNITED STATES EMBARGO ON CUBA — HON. RON PAUL July 26, 2001    2001 Ron Paul 66:15 Whereas, Cuba’s potential oil reserves have attracted the interest of numerous other countries who have been helping Cuba develop its existing wells and search for new reserves; Cuba’s oil output has increased more than 400 percent over the last decade; and interest Crazy For Kazakhstan 1 August 2001    2001 Ron Paul 69:1 Mr. PAUL. Mr. Speaker, I would like to draw the attention of my colleagues to the Op Ed article “Crazy for Kazakhstan — Asian nation of vital interest” by former Secretary of Energy Bill Richardson published in “The Washington Times” on July 30, 2001. Mr. Richardson has been working with countries of Central Asia, particularly with oil rich Kazakhstan, for a long time and has an extensive expertise in the region. I think we can rely on his assessments. In the article he outlines achievements of Kazakhstan and defines this country one of the promising “of all the countries rising from the ashes of the Soviet Union”. interest Crazy For Kazakhstan 1 August 2001    2001 Ron Paul 69:5 Mr. Speaker, I agree with Mr. Richardson that this key Central Asian country is of great importance to U.S. interests. Kazakhstan in many ways should be seen as our natural ally in the region. The time has come for the U.S. to pay closer attention to this country and be more engaged with it. For this reason I cosponsored the legislation (H.R. 1318) that would grant permanent trade relations to Kazakhstan. interest Crazy For Kazakhstan 1 August 2001    2001 Ron Paul 69:7 [From the Washington Times, July 30, 2001] CRAZY FOR KAZAKHSTAN (By Bill Richardson) As secretary of energy and ambassador to the United Nations during the Clinton administration, I traveled three times to Kazakhstan to underscore the importance of this key Central Asian country to U.S. interests. Of all the countries rising from the ashes of the Soviet Union, few offer the promise of Kazakhstan. In terms of both economic potential and political stability, Kazakhstan is critical to the long-term success of the Central Asian nations. The Bush administration should continue our policy of engaging Kazakhstan to ensure that this key country moves towards the Western orbit and adopts continued market and political reforms. interest Patients’ Bill Of Rights 2 August 2001    2001 Ron Paul 74:8 We all should become suspicious when it is declared we need a new Bill of Rights, such as a Taxpayers’ Bill of Rights, or now a Patients’ Bill of Rights. Why do more Members not ask why the original Bill of Rights is not adequate in protecting all rights and enabling the market to provide all services? In fact, if Congress respected the Constitution we would not even be debating this bill, and we would have never passed any of the special-interest legislation that created and empowered the HMOs in the first place! interest Patients’ Bill Of Rights 2 August 2001    2001 Ron Paul 74:10 Disregard for constitutional limitations on government, ignorance of the basic principles of economics combined with the power of special interests influencing government policy has brought us this managed-care monster. If we pursue a course of more government management in an effort to balance things, we are destined to make the system much worse. If government mismanagement in an area that the government should not be managing at all is the problem, another level of bureaucracy, no matter how well intended, will not be helpful. The law of unintended consequences will prevail and the principle of government control over providing a service will be further entrenched in the Nation’s psyche. The choice in actually is government-provided medical care and its inevitable mismanagement or medical care provided by a market economy. interest 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). interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:10 Instead, Congress chooses to blame the analysts for misleading investors . The analysts may not be entirely blameless , but their role in creating the bubble is minimal compared to the misleading information that the Federal Reserve has provided, with artificially low interest rates and a financial market made flush with generous new credit at every sign of a correction over the past ten years. interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:15 Modern-day globalists would like us to believe they invented globalism. Yet all they are offering is an unprecedented plan for global power to be placed in the hands of a few powerful special interests. interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:20 Regardless of whether the experts demand a weak dollar or a strong dollar, each inevitably demands lower interest rates, hoping to spur the economy and save the stock market from crashing. But one must remember that the only way the Federal Reserve can lower interest rates is to inflate the currency by increasing the money supply and by further debasing the currency. In the long term, the dollar is always weakened, even if the economy is occasionally stimulated on a short-run basis. interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:21 Economic growth can hide the ill effects of monetary inflation by holding some prices in check. But it can’t prevent the over-capacity and mal-investment which causes the economic downturn. Of course, the central bankers cling to the belief that they can somehow prevent the ugly corrections known as recessions. Economic growth, when artificially stimulated by monetary growth and low interest rates, generates the speculation we’ve seen in the stock, bond and real estate markets, along with excessive debt. Once the need for rectifying the over-capacity is recognized by the market, these imbalances are destined to be wiped out. Prolonging the correction phase with the Fed’s efforts to re-inflate by diligently working for a soft landing, or even to prevent a recession, only postpones the day the economy can return to sustained growth. This is a problem the United States had in the 1930s and one that Japan has experienced for more than a decade, with no end in sight. interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:27 The GSEs, made up of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank, have managed to keep the housing market afloat, in contrast to the more logical slowdown in hotel and office construction. This spending through the GSEs has also served as a vehicle for consumption spending. This should be no surprise, considering the special status that GSEs enjoy, since their implied line of credit to the US Treasury keeps interest rates artificially low. The Clinton administration encouraged growth in housing loans that were financed through this system. interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:30 Refinancing especially helped the consumers to continue spending even in a slowing economy. It isn’t surprising for high credit-card debt to be frequently rolled into second mortgages, since interest on mortgage debt has the additional advantage of being tax-deductible. When financial conditions warrant it, leaving financial instruments (such as paper assets), and looking for hard assets (such as houses), is commonplace and is not a new phenomenon. Instead of the newly inflated money being directed toward the stock market, it now finds its way into the rapidly expanding real-estate bubble. This, too, will burst as all bubbles do. The Fed, the Congress, or even foreign investors can’t prevent the collapse of this bubble, any more than the incestuous Japanese banks were able to keep the Japanese “miracle” of the 1980s going forever. interest 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. interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:37 The deception regarding price increases is supposed to reassure us and may do so for a while. The Fed never admits it, and the Congress disregards it out of ignorance, but the serious harm done by artificially low interest rates--leading to mal-investment, overcapacity, excessive debt and speculation causes the distortions that always guarantee the next recession. interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:40 Someday, stable money based on the gold standard must be reconsidered. Stable money is a constitutional responsibility of Congress. The Federal Reserve Board’s goal of stable prices, economic growth and low interest rates, through centralized economic planning by manipulating money and credit, is a concoction of 20 th Century Keynesian economics. These efforts are not authorized by the Constitution, and are economically detrimental. interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:43 Likewise, an imperialistic foreign policy can only be supported by inflation and high taxation. This policy compounds the threat to liberty, because all too often our leaders get us involved in overseas military adventurism in which we should have no part. Today that danger is greater than ever before, as we send our dollars and troops hither and yon to areas of the world most Americans have no knowledge or interest in. But the driving force behind our foreign policy comes from our oil corporations, international banking interests and the military-industrial complex, which have high-stake interests in the places our troops and foreign aid, are sent. interest 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. interest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:46 But we must also reject the notion that one man, Alan Greenspan, or any other chairman of the Federal Reserve Board, can know what the proper money supply and interest rates ought to be- only the market can determine that. This must happen if we ever expect to avoid continuous and deeper recessions and to get the economy growing in a healthy and sustainable fashion. It also must happen if we want to preserve free-market capitalism and personal liberty. interest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:3 Those genuinely interested in understanding the most recent economic downturn will do well to read and contemplate Mr. Grant’s article. interest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:11 Röpke, wrote before the 1946 Employment Act, which directed the United States government to cut recessions short — using tax breaks, for example, or cuts in interest rates — even if these actions stymie a salutary process of economic adjustment. No one doubts the humanity of this law. Yet equally, no one can doubt the inhumanity of a decade-long string a palliatives in Japan, intended to insulate the Japanese people from the consequences of their bubble economy of the 1980’s. Rather than suppressing the bust, the government has only managed to prolong it, for a decade and counting. interest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:12 Booms not only precede busts; they also cause them. When capital is so cheap that it might as well be free, entrepreneurs make marginal investments. They build and hire expecting the good times to continue to roll. Optimistic bankers and steadily rising stock prices shield new businesses from having to show profits any sooner than “eventually.” Then, when the stars change alignment and investors decide to withhold new financing, many companies are cash-poor and must retrench or shut down. It is the work of a bear market to reduce the prices of the white elephants until they are cheap enough to interest a new class of buyers. interest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:16 Even moderate expansions produce their share of misconceived investments, and the 90’s boom, the gaudiest on record, was no exception. In the upswing, faith in the American financial leaders bordered on idolatry. Now there is disillusionment. Investors are right to resent Wall Street for its conflicts of interest and to upbraid Alan Greenspan for his wide-eyed embrace of the so-called productivity miracle. But the underlying source of recurring cycles in any economy is the average human being. interest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:18 James Grant is the editor of Grant’s Interest Rate Observer. interest Foreign Interventionism September 25, 2001    2001 Ron Paul 80:19 Of course, it isn’t our oil. The oil in fact belongs to the Arabs and other Muslim nations of the Persian Gulf. Our military presence in Saudi Arabia is what most Muslims believe to be a sacred violation of holy land. The continuous bombing and embargo of Iraq, has intensified the hatred and contributed to more than over 1,000,000 deaths in Iraq. It is clear that protecting certain oil interests and our presence in the Persian Gulf help drive the holy war. interest Foreign Interventionism September 25, 2001    2001 Ron Paul 80:23 The hatred has been suppressed because we are a powerful economic and military force and wield a lot of influence. But this suppressed hatred is now becoming more visible and we as Americans for the most part are not even aware of how this could be. Americans have no animosity toward a people they hardly even know. Instead, our policies have been driven by the commercial interests of a few. And now the innocent suffer. interest Foreign Interventionism September 25, 2001    2001 Ron Paul 80:41 In retaliation, an unintended consequence of a policy of wanton destruction without benefit to our cause, could result in the overthrow of moderate Arab nations by the radicals that support bin Laden. This will not serve our interests and will surely exacerbate the threat to all Americans. interest Foreign Interventionism September 25, 2001    2001 Ron Paul 80:49 It is only with sadness that I reflect on the support, the dollars, the troops, the weapons and training provided by US taxpayers that are now being used against us. Logic should tell us that intervening in all the wars of the world has been detrimental to our self-interest and should be reconsidered. interest Safe Act 9 October 2001    2001 Ron Paul 83:6 I would also hope that we could all agree that this is far preferable to systems of nationwide “surveillance,” which could threaten the liberty of all immigrants and eventually all citizens. This is an instance where the interests of liberty and security coincide entirely. interest Statement on Counter-Terrorism Proposals and Civil Liberties October 12, 2001    2001 Ron Paul 87:6 I am very disturbed by the provisions centralizing the power to issue writs of habeas corpus to federal courts located in the District of Columbia. Habeas corpus is one of the most powerful checks on government and anything which burdens the ability to exercise this right expands the potential for government abuses of liberty. I ask my colleagues to remember that in the centuries of experience with habeas corpus there is no evidence that it interferes with legitimate interests of law enforcement. HR 3108 also codifies one of the most common abuses of civil liberties in recent years by expanding the government’s ability to seize property from citizens who have not yet been convicted of a crime under the circumvention of the Bill of Rights known as “asset forfeiture.” interest Statement on Counter-Terrorism Proposals and Civil Liberties October 12, 2001    2001 Ron Paul 87:7 Among other disturbing proposals, H.R. 3108 grants the President the authority to seize all the property of any foreign national that the President determines is involved in hostilities against the United States. Giving the executive branch discretionary authority to seize private property without due process violates the spirit, if not the letter, of the fifth amendment to the Constitution. Furthermore, given that one of the (unspoken) reasons behind the shameful internment of Americans of Japanese ancestry in the 1940s was to reward favored interests with property forcibly taken from innocent landowners, how confident are we that future, less scrupulous executives will refrain from using this power to reward political allies with the property of alleged “hostile nationals?” interest A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:5 America’s heart and soul is more embedded in our love of liberty, self-reliance, and tolerance than by our foreign policy, driven by powerful special interests with little regard for the Constitution. interest A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:17 Emotions are running high in our Nation’s capital, and in politics emotions are more powerful tools than reason and the rule of law. The use of force to serve special interests and help anyone who claims to be in need unfortunately is an acceptable practice. Obeying the restraints placed in the Constitution is seen as archaic and insensitive to the people’s needs. But far too often the claims of those responding to human tragedies are nothing more than politics as usual. While one group supports bailing out the corporations, another wants to prop up wages and jobs. One group supports federalizing tens of thousands of airport jobs to increase union membership, while another says we should subsidize corporate interests and keep the jobs private. interest A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:18 Envy and power drive both sides- the special interests of big business and the demands of the welfare/redistribution crowd. interest A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:24 Our support for the less-than-ethical government of Saudi Arabia, with our troops occupying what most Muslims consider sacred land, is hardly the way to bring peace to the Middle East. A policy driven by our fear of losing control over the oil fields in the Middle East has not contributed to American Security. Too many powerful special interests drive our policy in this region, and this does little to help us preserve security for Americans here at home. interest A SAD STATE OF AFFAIRS -- October 25, 2001    2001 Ron Paul 90:27 It is both annoying and sad that there is so little interest by anyone in Washington in free market solutions to the world’s economic problems. True private ownership of property without regulation and abusive taxation is a thing of the past. Few understand how the Federal Reserve monetary policy causes the booms and the busts that, when severe, as now, only serve to enhance the prestige of the money managers- while most politicians and Wall Streeters demand that the Fed inflate the currency at an even more rapid rate. Today’s conditions give license to the politicians to spend our way out of recession, they hope. interest 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. interest Statement on Funding for the Export- Import Bank October 31, 2001    2001 Ron Paul 91:5 Expenditures on the Eximbank distort the market by diverting resources from the private sector, where they could be put to the use most highly valued by individual consumers, into the public sector, where their use will be determined by bureaucrats and politically powerful special interests. By distorting the market and preventing resources from achieving their highest valued use, Eximbank actually costs Americans jobs and reduces America’s standard of living! interest Statement on Funding for the Export- Import Bank October 31, 2001    2001 Ron Paul 91:9 In conclusion, Mr. Chairman, Eximbank distorts the market by allowing government bureaucrats to make economic decisions in place of individual consumers. Eximbank also violates basic principles of morality, by forcing working Americans to subsidize the trade of wealthy companies that could easily afford to subsidize their own trade, as well as subsidizing brutal governments like Red China and the Sudan. Eximbank also violates the limitations on congressional power to take the property of individual citizens and use them to benefit powerful special interests. It is for these reasons that I urge my colleagues to reject HR 2871, the Export-Import Bank Reauthorization Act. interest Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:1 Mr. PAUL. Mr. Speaker, the world’s politicians, special interests, government bureaucrats, and financiers all love fiat money because they all benefit from it. But freedom-loving, hardworking, ethical and thrifty individuals suffer. interest Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:6 Printing money is not an answer, yet that is all that is offered. The clamor for low-interest rates by all those who benefit from fiat money has prompted the Fed to create new money out of thin air like never before. Driving the Fed funds rate down from 6.5 percent to 2.5 percent, a level below the price inflation rate, represents nothing short of panic and has done nothing to recharge the economy. But as one would expect, confidence in the dollar is waning. interest 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. interest Foolishness Of Fiat 31 October 2001    2001 Ron Paul 92:8 This policy reflects the central bank’s complete ignorance as to the cause of the problem: Credit creation and manipulation of interest rates. interest Expansion of NATO is a Bad Idea November 7, 2001    2001 Ron Paul 95:7 Mr. Speaker, I think we should stop and think about this, and instead of expanding NATO, instead of getting ready to send another $55 million that we are authorizing today to the Eastern European countries, we ought to ask: Has it really served the interests of the United States? interest Expansion of NATO is a Bad Idea November 7, 2001    2001 Ron Paul 95:8 Now that is old-fashioned, to talk about the interests of the United States. We are supposed to only talk about the interests of internationalism, globalism, one-world government. To talk about the interests of the United States in this city is seen as being very negative, but I would say if we talk about U.S. security, security of the United States of America and our defense around the country, it is very popular. Mr. PAUL. Mr. Speaker, I sincerely appreciate the fact that I have brought together bipartisanship here and got time from both sides. I deeply appreciate that, especially since I am taking the opposition to this bill. I do rise in opposition to expanding NATO. I do not think it is in the best interests of the United States. The one thing that I would concede, though, is that everyone in this Chamber, I believe, every Member agrees that our country should be strong; that we should have a strong national defense; and that we should do everything conceivable to make our country safe and secure. I certainly endorse those views. It just happens that I believe that membership in organizations like NATO tends to do the opposite, tends to weaken us and also makes us more vulnerable. But that is a matter of opinion, and we have to debate the merits of the issue and find out what is best for our country. interest Expansion of NATO is a Bad Idea November 7, 2001    2001 Ron Paul 95:9 I think the bill is motivated for two reasons. One is to increase the sphere of influence into Eastern Europe, who will be the greatest influence on the commercial aspects of Eastern Europe, and so there is a commercial interest there, as well as in this bill there is $55 million of foreign aid which I think a lot of Americans would challenge under these circumstances whether or not we should be sending another $55 million overseas. interest 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. interest Expansion of NATO is a Bad Idea November 7, 2001    2001 Ron Paul 95:17 Mr. Speaker, we are now called on to endorse the further expansion of a purposeless alliance and to grant $55.5 million dollars to former Soviet Bloc countries that have expressed an interest in joining it. While expanding NATO membership may be profitable for those companies that will be charged with upgrading the militaries of prospective members, this taxpayer subsidy of foreign governments and big business is not in the interest of the American people. It is past time for the Europeans to take responsibility for their own affairs, including their military affairs. interest The War On Terrorism November 29, 2001    2001 Ron Paul 98:3 Ulterior motives have always played a part in the foreign policy of almost every nation throughout history. Economic gain and geographic expansion, or even just the desires for more political power, too often drive the militarism of all nations. Unfortunately, in recent years, we have not been exempt. If expansionism, economic interests, desire for hegemony, and influential allies affect our policies and they, in turn, incite mob attacks against us, they obviously cannot be ignored. The target will be illusive and ever enlarging, rather than vanquished. interest 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. interest The War On Terrorism November 29, 2001    2001 Ron Paul 98:9 Former FBI Deputy Director John O’Neill resigned in July over duplicitous dealings with the Taliban and our oil interests. O’Neill then took a job as head of the World Trade Center security and ironically was killed in the 9-11 attack. The charges made by these authors in their recent publication deserve close scrutiny and congressional oversight investigation- and not just for the historical record. interest The War On Terrorism November 29, 2001    2001 Ron Paul 98:16 Why is this definition so crucial? Because without it, the special interests and the ill-advised will clamor for all kinds of expansive militarism. Planning to expand and fight a never-ending war in 60 countries against worldwide terrorist conflicts with the notion that, at most, only a few hundred ever knew of the plans to attack the World Trade Center and the Pentagon. The pervasive and indefinable enemy- terrorism- cannot be conquered with weapons and UN nation building- only a more sensible pro-American foreign policy will accomplish this. This must occur if we are to avoid a cataclysmic expansion of the current hostilities. interest The War On Terrorism November 29, 2001    2001 Ron Paul 98:19 The drumbeat for attacking Baghdad grows louder every day, with Paul Wolfowitz, Bill Kristol, Richard Perle, and Bill Bennett leading the charge. In a recent interview, U.S. Deputy Defense Secretary Paul Wolfowitz, made it clear: “We are going to continue pursuing the entire al Qaeda network which is in 60 countries, not just Afghanistan.” Fortunately, President Bush and Colin Powell so far have resisted the pressure to expand the war into other countries. Let us hope and pray that they do not yield to the clamor of the special interests that want us to take on Iraq. interest The War On Terrorism November 29, 2001    2001 Ron Paul 98:44 As members of Congress, we have a profound responsibility to mete out justice, provide security for our nation, and protect the liberties of all the people, without senselessly expanding the war at the urging of narrow political and economic special interests. The price is too high, and the danger too great. We must not lose our focus on the real target and inadvertently create new enemies for ourselves. interest 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. interest 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. interest 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. interest Statement on Terrorism Reinsurance Legislation November 30, 2001    2001 Ron Paul 99:1 Mr. Speaker, no one doubts that the government has a role to play in compensating American citizens who are victimized by terrorist attacks. However, Congress should not lose sight of fundamental economic and constitutional principles when considering how best to provide the victims of terrorist attacks just compensation. I am afraid that HR 3210, the Terrorism Risk Protection Act, violates several of those principles and therefore passage of this bill is not in the best interests of the American people. interest Statement on Terrorism Reinsurance Legislation November 30, 2001    2001 Ron Paul 99:8 In conclusion, Mr. Speaker, HR 3210 may reduce the risk to insurance companies from future losses, but it increases the costs incurred by American taxpayers. More significantly, by ignoring the moral hazard problem this bill may have the unintended consequence of increasing the losses suffered in any future terrorist attacks. Therefore, passage of this bill is not in the long-term interests of the American people. interest Let Privateers Troll For Bin Laden 4 December 2001    2001 Ron Paul 100:13 Privateering soon evolved into a potent means of warfare. Self-interest encouraged privateers to capture as many enemy ships as possible, and to do it quickly. Were privateers successful in inflicting serious losses on the enemy? Emphatically, yes. Between 1793 and 1797, the British lost 2,266 vessels, the majority taken by French privateers. interest Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:4 But I think there is a third option to this that we so often forget about. Why can we not be pro-American? What is in the best interests of the United States? We have not even heard that yet. interest Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:5 I believe that it is in the best interests of the United States not to get into a fight, a fight that we do not have the wisdom to figure out. interest Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:11 I think that we cannot buy peace under these circumstances. I think we can contribute by being more neutral. I think we can contribute a whole lot by being friends with both sides. But I believe the money is wasted, it is spent unwisely, and it actually does not serve the interests of the American people. interest Ongoing Violence in Israel and Palestine December 5, 2001    2001 Ron Paul 102:20 Further, it recommends that the President suspend all relations with Yasir Arafat and the Palestinian Authority if they do not abide by the demands of this piece of legislation. I don’t think this is a very helpful approach to the problem. Ceasing relations with one side in the conflict is, in effect, picking sides in the conflict. I don’t think that has been our policy, nor is it in our best interest, be it in the Middle East, Central Asia, or anywhere else. The people of the United States contribute a substantial amount of money to both Israel and to the Palestinian people. We have made it clear in our policy and with our financial assistance that we are not taking sides in the conflict, but rather seeking a lasting peace in the region. Even with the recent, terrible attack. I don’t think this is the time for Congress to attempt to subvert our government’s policy on the Israeli-Palestinian conflict. interest Statement Opposing Unconstitutional “Trade Promotion Authority” December 6, 2001    2001 Ron Paul 103:1 Mr. Speaker, we are asked today to grant the President so-called trade promotion authority, authority that has nothing to do with free trade. Proponents of this legislation claim to support free trade, but really they support government-managed trade that serves certain interests at the expense of others. True free trade occurs only in the absence of interference by government, that’s why it’s called “free”- it’s free of government taxes, quotas, or embargoes. The term ”free-trade agreement“ is an oxymoron. We don’t need government agreements to have free trade; but we do need to get the federal government out of the way and unleash the tremendous energy of the American economy. interest Saddam Hussein 19 December 2001    2001 Ron Paul 107:4 For instance, just this week, we had Stinger Missiles fired at our airplanes. Fortunately, they did not hit our airplanes. But we paid for those Stinger Missiles. And this week there was an attack in India by allies, supposedly, in Pakistan, who are receiving billions of dollars from us at the current time. This vacillation, shifting, on and off, friends one time, enemies the next time, this perpetual war seems to me not to be in the best interests of the United States. interest 19 December 2001    2001 Ron Paul 111:9 The rationale for this legislation is suspect, not the least because it employs a revisionist view of recent Middle East history. This legislation brings up, as part of its indictment against Iraq, that Iraq attacked Iran some 20 years ago. What the legislation fails to mention is that at that time Iraq was an ally of the United States, and counted on technical and military support from the United States in its war on Iran. Similarly, the legislation mentions Iraq’s invasion of Kuwait more than 10 years ago. But at that time U.S. foreign policy was sending Saddam Hussein mixed messages, as Iraq’s dispute with Kuwait simmered. At the time, U.S. Ambassador April Glaspie was reported in the New York times as giving very ambiguous signals to Saddam Hussein regarding Kuwait, allegedly telling Hussein that the United States had no interest in Arab-Arab disputes. interest 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. interest The Case For Defending America 24 January 2002    2002 Ron Paul 1:15 Even with this massive rush to embrace all the bailouts offered up by Washington, a growing number of Americans are rightfully offended by the enormity of it all and annoyed that powerful and wealthy special interests seem to be getting the bulk of the benefits. interest The Case For Defending America 24 January 2002    2002 Ron Paul 1:21 Another positive result of last year’s attack was the uniting of many Americans in an effort to deal with many problems this country faces. This applies more to the people who reflect true patriotism than it does to some of the politicians and special interests who took advantage of this situation. If this renewed energy and sense of unity could be channeled correctly, much good could come of it, if misdirected, actual harm would result. interest 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. interest The Case For Defending America 24 January 2002    2002 Ron Paul 1:35 Unfortunately, it has been seen only as an opportunity for Pakistan and India to resume their warring ways, placing us in a very dangerous situation. This could easily get out of control since China will not allow a clearcut Indian victory over Pakistan. The danger of a nuclear confrontation is real. Even the British have spoken sympathetically about Pakistan’s interest over India. The tragedy is that we have helped both India and Pakistan financially and, therefore, the American taxpayer has indirectly contributed funds for the weapons on both sides. Our troops in this region are potential targets of either or both countries. interest The Case For Defending America 24 January 2002    2002 Ron Paul 1:39 Our presence in the Persian Gulf is not necessary to provide for America’s defense. Our presence in the region makes all Americans more vulnerable to attacks and defending America much more difficult. The real reason for our presence in the Persian Gulf, as well as our eagerness to assist in building a new Afghan government under U.N. authority, should be apparent to us all. Stuart Eizenstat, Under Secretary of Economics, Business and Agricultural Affairs for the previous administration, succinctly stated U.S. policy for Afghanistan testifying before the Senate Foreign Relations Trade Committee October 13, 1997. He said, “One of five main foreign policy interests in the Caspian region is to continue support for U.S. companies and the least progress has been made in Afghanistan, where gas and oil pipeline proposals designed to carry Central Asian energy to world markets have been delayed indefinitely pending establishment of a broad-based, multiethnic government.” interest The Case For Defending America 24 January 2002    2002 Ron Paul 1:42 The point being, of course, that it may be good to have a new Afghan government, but the question is whether that is our responsibility and whether we should be doing it under the constraints of our Constitution. There is a real question of whether it will serve our best interests in the long term. interest The Case For Defending America 24 January 2002    2002 Ron Paul 1:44 There are quite a few unintended consequences that might occur if our worldwide commitment to fighting terrorism is unrestrained. Russia’s interest in the Afghan region are much more intense than Putin would have us believe, and Russia’s active involvement in a spreading regional conflict should be expected. interest The Case For Defending America 24 January 2002    2002 Ron Paul 1:47 Why look for more of these kinds of problems when it does not serve our interests? Jeopardizing our security violates the spirit of the Constitution and inevitably costs us more than we can afford. Our permanent air bases built in Saudi Arabia are totally unessential to our security, contributed to the turmoil in the Middle East, and they continue to do so. We are building a giant new air base in Kyrgyzstan, a country once part of the Soviet Union and close to Russia. China, also a neighbor with whom we eagerly seek a close relationship as a trading partner, will not ignore our military buildup in that region. interest The Case For Defending America 24 January 2002    2002 Ron Paul 1:56 I am fearful that an unlimited worldwide war against all terrorism will distract from the serious consideration that must be given to our policy of foreign interventionism, driven by the powerful commercial interests and a desire to promote world government. This is done while ignoring our principal responsibility of protecting national security and liberty here at home. interest Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:4 The SEC, like all government agencies, is not immune from political influence or conflicts of interest. In fact, the new SEC chief used to represent the very accounting companies now under SEC scrutiny. If anything, the Enron failure should teach us to place less trust in the SEC. Yet many in Congress and the media characterize Enron’s bankruptcy as an example of unbridled capitalism gone wrong. Few in Congress seem to understand how the Federal Reserve system artificially inflates stock prices and causes financial bubbles. Yet what other explanation can there be when a company goes from a market value of more than $75 billion to virtually nothing in just a few months? The obvious truth is that Enron was never really worth anything near $75 billion, but the media focuses only on the possibility of deceptive practices by management, ignoring the primary cause of stock overvaluation: Fed expansion of money and credit. interest Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:5 The Fed consistently increased the money supply (by printing dollars) throughout the 1990s, while simultaneously lowering interest rates. When dollars are plentiful, and interest rates are artificially low, the cost of borrowing becomes cheap. This is why so many Americans are more deeply in debt than ever before. This easy credit environment made it possible for Enron to secure hundreds of millions in uncollateralized loans, loans that now cannot be repaid. The cost of borrowing money, like the cost of everything else, should be established by the free market- not by government edict. Unfortunately, however, the trend toward overvaluation will continue until the Fed stops creating money out of thin air and stops keeping interest rates artificially low. Until then, every investor should understand how Fed manipulations affect the true value of any company and the level of the markets. interest Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:9 Enron similarly benefited from another federal boondoggle, the Overseas Private Investment Corporation. OPIC operates much like the Ex-Im Bank, providing taxpayer-funded loan guarantees for overseas projects, often in countries with shaky governments and economies. An OPIC spokesman claims the organization paid more than one billion dollars for 12 projects involving Enron, dollars that now may never be repaid. Once again, corporate welfare benefits certain interests at the expense of taxpayers. The point is that Enron was intimately involved with the federal government. While most of my colleagues are busy devising ways to “save” investors with more government, we should be viewing the Enron mess as an argument for less government. It is precisely because government is so big and so thoroughly involved in every aspect of business that Enron felt the need to seek influence through campaign money. It is precisely because corporate welfare is so extensive that Enron cozied up to DC-based politicians of both parties. It’s a game every big corporation plays in our heavily regulated economy, because they must when the government, rather than the marketplace, distributes the spoils. interest Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:3 In fact, Mr. Chairman, Argentina does not represent an exception to the laws of economics. Rather, Argentina’s economic collapse is but one more example of the folly of government intervention in the economy done to benefit powerful special interests at the expense of the Argentine people and the American taxpayer. The primary means by which the federal government forces American taxpayers to underwrite the destruction of the Argentine economy is the International Monetary Fund (IMF), which enjoys a $37 billion line of credit provided with U.S. Treasury funds. interest Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:4 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! interest Statement on the Argentine crisis February 6 2002    2002 Ron Paul 4:9 In addition, Mr. Chairman, the IMF violates basic constitutional and moral principles. The federal government has no constitutional authority to fund international institutions such as the IMF, and it is simply immoral to take money form hard-working Americas to support the economic schemes of politically-powerful special interests and third-world dictators. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:4 Today, we hear from strong advocates of higher taxation, increased spending, higher budget deficits, tougher regulations, bailouts and all kinds of subsidies and support programs as tools to restore economic growth. The Federal Reserve recognized early on the severity of the problems and, over the past year, lowered short-term interest rates an unprecedented 11 times, dropping the Fed funds rate from 6 1/2 % to 1 3/4 %. This has not helped, and none of these other suggestions can solve the economic problems we face either. Some may temporarily help a part of the economy, but the solution to restoring growth lies not in more government but less. It is precisely too much government, and especially manipulation of credit by the Federal Reserve, that precipitated the economic downturn in the first place. Increasing that which caused the recession can’t possibly, at the same time, be the solution. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:5 The magnitude of the distortions of the 1990s brought on by artificially low interest rates orchestrated by the Fed, on top of 30 years of operating with a fiat currency worldwide, suggests that this slowdown will not abort quickly. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:9 In recessions, to remain solvent, consumers ought to tighten their belts, pay off debt, and save. In a free market, this would lower market interest rates to once again make investments attractive. The confusing aspect of today’s economy is that consumers and even businesses continue profligate borrowing, in spite of problems on the horizon. Interest rates, instead of rising, are pushed dramatically downward by the Federal Reserve, creating massive amounts of new credit. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:10 This new credit, according to economic law, must in time push the value of the dollar down and general prices up. When this happens and the dollar is threatened on exchange markets, the cost of living is pushed sharply upward. The central bank is then forced to raise interest rates, as they did in 1979 when the rates hit 21%. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:11 But even before any need to tighten, interest rates may rise or not fall as expected. This has just happened in 2001. Even with Fed fund rates at 40-year lows, the 10 and 30-year rates have not fallen accordingly. Many corporate-bond rates have stayed high, and credit-card rates have stayed in double digits. This happens because the market discounts for debt quality and future depreciation of the dollar. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:14 For over a year, the Fed has been massively inflating the money supply, and there is no evidence that it has done much good. This continuous influx of new credit instead delays the correction that must eventually come- the liquidation of bad debt, and the reduction of overcapacity. This is something Japan has not accomplished in 12 years of interest rates around 1%. The market must be left to eliminate the misdirected investments and allow the sound investments to survive. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:18 Sadly lacking in the Congress is a conviction that free markets- that is truly free markets- and sound money can provide the highest standard of living for the greatest number of people. Instead, we operate with a system that compromises free markets and causes economic injury to a growing number of people, while rewarding special interests and steadily undermining the principles of liberty. Unfortunately, the policy of monetary inflation is most harmful to the poor and the middle class, especially in the early stages. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:22 But this is a myth. One can only justify intervention in the market on principle or argue against it. There’s always the hope that government will be prudent and limit its intrusion in the economy with low taxes, minimal regulations, a little inflation, and only a few special interest favors. Yet the record is clear. Any sign of distress prompts government action for any and every conceivable problem. Since each action by the government not only fails in its attempt to solve the problem it addresses, it creates several new problems in addition while prompting even more government intervention. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:24 This system leads to a huge bureaucratic government, manipulated by politicians, and generates an army of special interests that flood the system with money and demands. To achieve and maintain political power in Washington, these powerful special interests must be satisfied. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:25 This is a well-known problem and prompts some serious-minded and well-intentioned Members to want to legislate campaign finance reforms. But the reforms proposed would actually make the whole mess worse. They would regulate access to the members of Congress, and dictate how private money is spent in campaigns. This merely curtails liberty, while ignoring the real problem- a government that ignores the Constitution naturally passes out largesse. Even under today’s conditions, where money talks in Washington, if enough members would refuse either to accept or be influenced by the special interests, government favors would no longer be up for sale. Since politicians are far from perfect, the solution is having a government of limited size acting strictly within the framework of the Constitution. No matter how strictly campaign finance laws are written, they will do only harm if the rule of law is not restored and if Congress refuses to stop being manipulated by the special interests. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:41 What they fail to recognize, once they lose interest in shrinking the size of government, is that government borrowing always takes money from productive enterprises, while placing these funds in the hands of politicians whose prime job is to serve special interests. Deficits are a political expedience that also forces the Federal Reserve to inflate the currency while reducing in real terms the debt owed by the government by depreciating the value of the currency. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:59 5. Our pervasive military presence may well encourage alliances that would have been unheard of a few years ago. Now that we’ve committed ourselves internationally to destroying Afghanistan and rebuilding it, with a promise that we’ll be there for a long time, might encourage closer military alliances between Russia and China, and even others like Pakistan, Iran and Iraq, and even Saudi Arabia- countries all nervous about our military permanency in this region. Control of Caspian Sea oil is not a forgotten item for these countries, and it will not be gracefully conceded to U.S. oil interests. If these alliances develop, even U.S. control of Persian Gulf oil could be challenged as well. interest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:65 11. The economic ramifications of our war on terrorism are difficult to ascertain but could be quite significant. Although the recession was obviously not caused by the attacks, the additional money spent and the effect of all the new regulations cannot help the recovery. When one adds up the domestic costs, the military costs and the costs of new regulations, we can be certain that deficits are going to grow significantly, and the Federal Reserve will be further pressured to pursue a dangerous monetary inflation. This policy will result in higher rather than lower interest rates, a weak dollar and certainly rising prices. The danger of our economy spinning out of control should not be lightly dismissed. interest 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. interest So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:1 Mr. PAUL. Mr. Speaker, the Enron bankruptcy and the subsequent revelations regarding Enron’s political influence have once again brought campaign finance to the forefront of the congressional agenda. Ironically, many of the strongest proponents of campaign finance reform are among those who receive the largest donations from special interests seeking state favors. In fact, some legislators who where involved in the government-created savings and loan scandal of the late eighties and early nineties today pose as born again advocates of “good government” via campaign finance reform! interest So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:6 It is the power of the welfare-regulatory state which creates a tremendous incentive to protect one’s own interests by “investing” in politicians. Since the problem is not a lack of federal laws, or rules regulating campaign spending, more laws won’t help. We hardly suffer from too much freedom. Any effort to solve the campaign finance problem with more laws will only make things worse by further undermining the principles of liberty and private property ownership. interest So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:7 Attempts to address the problems of special interest influence through new unconstitutional rules and regulations address only the symptoms while ignoring the root cause of the problem. Tough enforcement of spending rules will merely drive the influence underground, since the stakes are too high and much is to be gained by exerting influence over government- legally or not. The more open and legal campaign expenditures are, the easier it is for voters to know who’s buying influence from whom. interest So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:8 There is a tremendous incentive for every special interest group to influence government. Every individual, bank, or corporation that does business with government invests plenty in influencing government. Lobbyists spend over a hundred million dollars per month trying to influence Congress. Taxpayer dollars are endlessly spent by bureaucrats in their effort to convince Congress to protect their own empires. Government has tremendous influence over the economy and financial markets through interest rate controls, contracts, regulations, loans, and grants. Corporations and others are “forced” to participate in the process out of greed as well as self-defense- since that’s the way the system works. Equalizing competition and balancing power- such as between labor and business- is a common practice. As long as this system remains in place, the incentive to buy influence will continue. interest So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:10 It’s naive to believe stricter rules will make a difference. If members of Congress resisted the temptation to support unconstitutional legislation to benefit special interests, this whole discussion would be unnecessary. Because members do yield to the pressure, the reformers believe that more rules regulating political speech will solve the problem. interest So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:11 The reformers argue that it’s only the fault of those trying to influence government and not the fault of the members of Congress who yield to the pressure, or the system that generates the abuse. This allows members to avoid assuming responsibility for their own acts, and instead places the blame on those who exert pressure on Congress through the political process- which is a basic right bestowed on all Americans. The reformer’s argument is “Stop us before we succumb to the special interest groups.” interest So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:13 This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed. Not only will politicians and bureaucrats gain influence over elections, other nondeserving people will benefit. Clearly, incumbents will greatly benefit by more controls over campaign spending- a benefit to which the reformers will never admit. interest So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:16 I urge my colleagues to listen to Professor Titus and reject this unconstitutional proposal. Instead, I hope my colleagues will work to reduce special interest influence in Washington and restore integrity to politics by reducing the federal government to its constitutional limits. I would like to take this opportunity to introduce the excellent article by Mr. Titus into the record: interest So-Called “Campaign Finance Reform” is Unconstitutional February 13, 2002    2002 Ron Paul 7:48 In his Commentaries on the Constitution , Justice Story observed that the framers deliberately chose not to impose a standard of “equality” among the voters of the several states, but rather to accommodate a “mixed system, embracing and representing and combining distinct interests, classes and opinions.” ( I Story , Commentaries on the Constitution Sections 583-84, 5th ed., 1891) More recently, in a column published in the September 5, 1999, issue of The Washington Post, columnist George Will reminded his fellow Americans that the Constitution does not authorize one federal election, but many. All current campaign-finance reform measures disregard this decentralized federal structure governing elections to Congress and to the presidency and, for that reason, are unconstitutional. interest Introduction of the Monetary Freedom and Accountability Act February 13, 2002    2002 Ron Paul 8:14 In recent years Morgan Chase has invested much of its capital in derivatives, including gold and interest-rate derivatives, about which very little information is provided to shareholders. Among the information that has been made available, however, is that as of June 2000, J.P. Morgan reported nearly $30 billion of gold derivatives and Chase Manhattan Corp., although merged with J.P. Morgan, still reported separately in 2000 that it had $35 billion in gold derivatives. Analysts agree that the derivatives have exploded at this bank and that both positions are enormous relative to the capital of the bank and the size of the gold market. interest Introduction of the Monetary Freedom and Accountability Act February 13, 2002    2002 Ron Paul 8:16 gold were to increase substantially, Morgan Chase and other bullion banks that are highly leveraged in gold would have trouble covering their liabilities. One financial analyst, who asked not to be identified, explained the situation this way: “Gold is borrowed by Morgan Chase from the Bank of England at 1 percent interest and then Morgan Chase sells the gold on the open market, then reinvests the proceeds into interest-bearing vehicles at maybe 6 percent. interest Introduction of the Monetary Freedom and Accountability Act February 13, 2002    2002 Ron Paul 8:19 According to Murphy, “The price of gold always has been a barometer used by many to determine the financial health of the United States. A steady gold price usually is associated by the public and economic analysts as an indication or a reflection of the stability of the financial system. Steady gold; steady dollar. Enron structured a financial system that put the company at risk and eventually took it down. The same structure now exists at Morgan Chase with their own interest-rate/gold-derivatives position. There is very little information available about its position in the gold market and, as with the case of Enron, it could easily bring them down.” interest Introduction of the Monetary Freedom and Accountability Act February 13, 2002    2002 Ron Paul 8:21 Howe’s claim contends that the price of gold has been manipulated since 1994 “by conspiracy of public officials and major bullion banks, with three objectives: 1) to prevent rising gold prices from sounding a warning on U.S. inflation; 2) to prevent rising gold prices from signaling weakness in the international value of the dollar; and 3) to prevent banks and others who have funded themselves through borrowing gold at low interest rates and are thus short physical gold from suffering huge losses as a consequence of rising gold prices.” interest Before We Bomb Iraq... February 26, 2002    2002 Ron Paul 9:11 While we trade with, and subsidize to the hilt, the questionable government of China, we place sanctions on and refuse to trade with Iran and Iraq, which only causes greater antagonism. But if the warmongers’ goal is to have a war, regardless of international law and the Constitution, current policy serves their interests. interest Before We Bomb Iraq... February 26, 2002    2002 Ron Paul 9:18 We must understand that the American people become less secure when we risk a major conflict driven by commercial interests and not constitutionally authorized by Congress. Victory under these circumstances is always elusive, and unintended consequences are inevitable. interest 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! interest Statement on Ending US Membership in the IMF February 27, 2002    2002 Ron Paul 10:7 In addition, the IMF violates basic constitutional and moral principles. The federal government has no constitutional authority to fund international institutions such as the IMF. Furthermore, Mr. Speaker, it is simply immoral to take money from hard-working Americans to support the economic schemes of politically-powerful special interests and third-world dictators. interest Statement on the International Criminal Court February 28, 2002    2002 Ron Paul 13:8 Supporters of the International Criminal Court, like the World Federalist Association, claim that ICC procedures are in full accordance with the Bill of Rights. They aren’t. One pro-ICC website sponsored by the World Federalist Association, attempting to dispel “myths” about the Court, perhaps unintentionally provided some real insight. In response to the “myth” that the ICC is unconstitutional, the website argues that “The Rome Treaty establishing the International Criminal Court provides almost all the same due process protections as the U.S. Constitution. Every due process protection provided for in the Constitution is guaranteed by the Rome Treaty, with the exception of a trial by jury.” Since when is “almost all” equal to “all”? Either the Rome Treaty provides all the protections or it does not provide all the protections, and here we have by its own admission that the ICC is indeed at odds with American due process protections. So what else are they not telling the truth about? Another claim on the World Federalist Association website is that the ICC is that the rights of the accused to a presumption of innocence is guaranteed. Interestingly, on the very same website the accused Slobodan Milosevic is referred to as a “criminal.” Not very reassuring. interest Statement on wasteful foreign aid to Colombia March 6, 2002    2002 Ron Paul 14:6 As with much of our interventionism, if you scratch the surface of the high-sounding calls to “protect democracy” and “stop drug trafficking” you often find commercial interests driving U.S. foreign policy. This also appears to be the case in Colombia. And like Afghanistan, Kosovo, Iraq, and elsewhere, that commercial interest appears to be related to oil. The U.S. administration request for FY 2003 includes a request for an additional $98 million to help protect the Cano-Limon Pipeline- jointly owned by the Colombian government and Occidental Petroleum. Rebels have been blowing up parts of the pipeline and the resulting disruption of the flow of oil is costing Occidental Petroleum and the Colombian government more than half a billion dollars per year. Now the administration wants American taxpayers to finance the equipping and training of a security force to protect the pipeline, which much of the training coming from the U.S. military. Since when is it the responsibility of American citizens to subsidize risky investments made by private companies in foreign countries? And since when is it the duty of American service men and women to lay their lives on the line for these commercial interests? interest Steel Protectionism Wednesday, March 13, 2002    2002 Ron Paul 15:1 Mr. Speaker, I am disheartened by the administration’s recent decision to impose a 30 percent tariff on steel imports. This measure will hurt far more Americans than it will help, and it takes a step backwards toward the protectionist thinking that dominated Washington in decades past. Make no mistake about it, these tariffs represent naked protectionism at its worst, a blatant disregard of any remaining free-market principles to gain the short-term favor of certain special interests. These steel tariffs also make it quite clear that the rhetoric about free trade in Washington is abandoned and replaced with talk of “fair trade” when special interests make demands. What most Washington politicians really believe in is government-managed trade, not free trade. True free trade, by definition, takes place only in the absence of government interference of any kind, including tariffs. Government-managed trade means government, rather than competence in the marketplace, determines what industries and companies succeed or fail. interest Steel Protectionism Wednesday, March 13, 2002    2002 Ron Paul 15:3 We should recognize that the cost of these tariffs will not only be borne by American companies that import steel, such as those in the auto industry and building trades. The cost of these import taxes will be borne by nearly all Americans, because steel is widely used in the cars we drive and the buildings in which we live and work. We will all pay, but the cost will be spread out and hidden, so no one complains. The domestic steel industry, however, has complained- and it has the corporate and union power that scares politicians in Washington. So the administration moved to protect domestic steel interests, with an eye toward the upcoming midterm elections. It moved to help members who represent steel-producing states. We hear a great deal of criticism of special interests and their stranglehold on Washington, but somehow when we prop up an entire industry that has failed to stay competitive, we’re “protecting American workers.” What we’re really doing is taxing all Americans to keep some politically-favored corporations afloat. Sure, some rank and file jobs may also be saved, but at what cost? Do steelworkers really have a right to demand that Americans pay higher taxes to save an industry that should be required to compete on its own? interest Steel Protectionism Wednesday, March 13, 2002    2002 Ron Paul 15:6 Mr. Speaker, it’s always amazing to me that Washington gives so much lip service to free trade while never adhering to true free trade principles. Free trade really means freedom- the freedom to buy and sell goods and services free from government interference. Time and time again, history proves that tariffs don’t work. Even some modern Keynesian economists have grudgingly begun to admit that free markets allocate resources better than centralized planning. Yet we cling to the idea that government needs to manage trade, when it really needs to get out of the way and let the marketplace determine the cost of goods. I sincerely hope that the administration’s position on steel does not signal a willingness to resort to protectionism whenever special interests make demands in the future. interest Export-Import Reauthorization Act 19 March 2002    2002 Ron Paul 17:6 Expenditures on the Eximbank distort the market by diverting resources from the private sector, where they could be put to the use most highly valued by individual consumers, into the public sector, where their use will be determined by bureaucrats and politically powerful special interests. By distorting the market and preventing resources from achieving their highest valued use. Eximbank actually costs Americans jobs and reduces America’s standard of living! interest Export-Import Reauthorization Act 19 March 2002    2002 Ron Paul 17:10 In conclusion, Mr. Speaker, Eximbank distorts the market by allowing government bureaucrats to make economic decisions in place of individual consumers. Eximbank also violates basic principles of morality, by forcing working Americans to subsidize the trade of wealthy companies that could easily afford to subsidize their own trade, as well as subsidizing brutal governments like Red China and the Sudan. Eximbank also violates the limitations on congressional power to take the property of individual citizens and use them to benefit powerful special interests. It is for these reasons that I urge my colleagues to reject S. 2019. interest Statement Opposing Military Conscription March 20, 2002    2002 Ron Paul 20:5 Instead of reinstating a military draft, Congress should make military service attractive by finally living up to its responsibility to provide good benefits and pay to members of the armed forces and our nation’s veterans. It is an outrage that American military personnel and veterans are given a lower priority in the federal budget than spending to benefit politically powerful special interests. Until this is changed, we will never have a military which reflects our nation’s highest ideals. interest Statement Opposing Military Conscription March 20, 2002    2002 Ron Paul 20:10 In conclusion, Mr. Speaker, I ask my colleagues to stand up for the long-term military interests of the United States, individual liberty, and values of the Declaration of Independence by cosponsoring my sense of Congress resolution opposing reinstatement of the military draft. interest 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. interest America’s Entangling Alliances in the Middle East April 10, 2002    2002 Ron Paul 21:14 Foreign interventionism is bad for America. Special interests control our policies, while true national security is ignored. Real defense needs, the defense of our borders, are ignored, and the financial interests of corporations, bankers, and the military-industrial complex gain control- and the American people lose. interest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:2 So ingrained is the idea that new Federal regulations will prevent future Enrons, that today’s debate will largely be between CARTA’s supporters and those who believe this bill does not provide enough Federal regulation and control. I would like to suggest that before Congress imposes new regulations on the accounting profession, perhaps we should consider whether the problems the regulations are designed to address were at least in part caused by prior government interventions into the market. Perhaps Congress could even consider the almost heretical idea that reducing Federal control of the markets is in the public’s best interest. Congress should also consider whether the new regulations will have costs which might outweigh any (marginal) gains. Finally, Mr. Speaker, Congress should contemplate whether we actually have any constitutional authorization to impose these new regulations, instead of simply stretching the Commerce Clause to justify the program de jour. interest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:8 Increased Federal interference in the market could also harm consumers by crippling innovative market mechanisms to hold corporate managers accountable to their shareholders. Ironically, Mr. Chairman, current SEC regulations make it difficult for shareholders to challenge management decisions. Thus government regulations encourage managers to disregard shareholder interests! interest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:15 The Fed consistently increased the money supply (by printing dollars) throughout the 1990s, while simultaneously lowering interest rates. When dollars are plentiful, and interest rates are artificially low, the cost of borrowing becomes cheap. This is why so many Americans are more deeply in debt than ever before. This easy credit environment made it possible for Enron to secure hundreds of millions in uncollateralized loans, loans that now cannot be repaid. The cost of borrowing money, like the cost of everything else, should be established by the free market — not by government edict. Unfortunately, however, the trend toward overvaluation will continue until the Fed stops creating money out of thin air and stops keeping interest rates artificially low. interest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:17 In conclusion, the legislation before us today expands Federal power over the accounting profession and the financial markets. By creating new opportunities for unscrupulous actors to maneuver through the regulatory labyrinth, increasing the costs of investing, and preempting the market’s ability to come up with creative ways to hold corporate officials accountable, this legislation harms the interests of individual workers and investors. Furthermore, this legislation exceeds the constitutional limits on Federal power, interfering in matters the 10th amendment reserves to state and local law enforcement. I therefore urge my colleagues to reject this bill. Instead, Congress should focus on ending corporate welfare programs which provide taxpayer dollars to large politically-connected companies, and ending the misguided regulatory and monetary policies that helped create the Enron debacle. interest Predictions 24 April 2002    2002 Ron Paul 25:13 An international dollar crisis will dramatically boost interest rates in the United States. interest Predictions 24 April 2002    2002 Ron Paul 25:24 The war will prove to be divisive, with emotions and hatred growing between the various factions and special interests that drive our policies in the Middle East. interest Statement Opposing Taxpayer Funding of Multinational Development Banks May 1, 2002    2002 Ron Paul 28:3 If Congress lacks authority to fund an international food aid program, then Congress certainly lacks authority to use taxpayer funds to promote economic development in foreign lands. Programs such as the AsDF are not only unconstitutional, but, by removing resources from the control of consumers and placing them under the control of bureaucrats and politically-powerful special interests, these programs actually retard economic development in the countries receiving this "aid!" This is because funds received from programs like the AsDF are all-too-often wasted on political boondoggles which benefit the political elites in the recipient countries, but are of little benefit to the individual citizens of those countries. interest International Fund For Agricultural Development 1 May 2002    2002 Ron Paul 29:3 If Congress lacks authority to fund an international food aid program, then Congress certainly lacks authority to use taxpayer funds to promote economic development in foreign lands. Programs such as the AsDF are not only unconstitutional, but, by removing resources from the control of consumers and placing them under the control of bureaucrats and politically-powerful special interests, these programs actually retard economic development in the countries receiving this “aid!” This is because funds received from programs like the AsDF are all-too-often wasted on political boondoggles which benefit the political elites in the recipient countries, but are of little benefit to the individual citizens of those countries. interest Statement Opposing Export-Import Bank Subsidies May 1, 2002    2002 Ron Paul 30:1 Mr. Chairman, I rise in strong support of this amendment, being a cosponsor of this amendment. I am opposed to the Export-Import Bank because I see there is no benefit to it, it has nothing to do with capitalism and freedom. It has a lot to do with special interests, and I am opposed to that. interest Statement Opposing Export-Import Bank Subsidies May 1, 2002    2002 Ron Paul 30:4 What we are trying to do is make it fair to everyone so that the little guy who is competing for these same funds can compete on a level playing field and not give the advantage to the big guys. What happens so often when government gets involved is there are unintended consequences. The original intent was to boost exports and jobs. After 70 years, there are unintended consequences. The world is a more world market. I am not opposed to that. I believe in free trade; but I think this is more protectionism. This is so minor and so modest that anybody who wants to be on record for fairness into curtailing the political power of the Export-Import Bank, has to vote for this. This will be a little bit of help to a few people in order to say to these corporations that if they are going to get tax subsidies for their loans, and they start laying off people, they better lay them off someplace else other than here. That is pretty modest. I have no interest in ever telling a corporation to do this if they were not getting the special benefits from government. That makes the big difference. interest Statement Opposing Export-Import Bank Subsidies May 1, 2002    2002 Ron Paul 30:5 Mr. Chairman, there is a market allocation of credit and there is credit allocation by politicians, and that is what we are talking about here. We have credit allocation, and we have mal-investment and over capacity which causes the conditions to exist for the recession. Of course, a lot of this comes from what the Federal Reserve does in artificially lowering interest rates; but this is a compounding problem when government gets in and allocates credit at lower rates. It causes more distortions. This is why allocations to companies like Enron contributes to the bubble that ends up in a major correction. interest Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:1 Mr. Chairman, we are here today to reauthorize the Export-Import Bank, but it has nothing to do with a bank, do not mislead anybody. This has to do with an agency of the government that allocates credit to special interests and to the benefit of foreign entities. So it is not a bank in that sense. To me it is immoral in the fact that it takes from some who cannot defend themselves to give to the rich who get the benefits. And I just do not see that as being a very good function and a very good program for the U.S. Congress. Besides, I would like to see where somebody gives me the constitutional authority for doing what we do here and we have been doing, of course, for a long time. interest Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:3 In order to take billions of dollars and give it to one single company, it is taken out of the pool of funds available. And nobody talks about that. There is an expense. Why would not a bank loan when it is guaranteed by the government? Because it is guaranteed. So if you are a smaller investor or a marginal investor, there is no way that you are going to get the loan. For that investor to get the loan, the interest rates have to be higher. So it is a form of credit allocation, and it is also a form of protectionism. We do a lot of talk around here about free trade. Of course, there is a lot of tariff activity going on as well, but this is a form of protectionism. Because some argue, well, this company has to compete and another government subsidizes their company so, therefore, we have to compete. So it is competitive subsidization of special interest corporations in order to do this. interest Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:13 Expenditures on the Eximbank distort the market by diverting resources from the private sector, where they could be put to the use most highly valued by individual consumers, into the public sector, where their use will be determined by bureaucrats and politically powerful special interests. By distorting the market and preventing resources from achieving their highest valued use, Eximbank actually costs Americans jobs and reduces America’s standard of living! interest Statement Opposing Export-Import Bank Corporate Welfare May 1, 2002    2002 Ron Paul 31:15 In conclusion, Mr. Chairman, Eximbank distorts the market by allowing government bureaucrats to make economic decisions in place of individual consumers. Eximbank also violates basic principles of morality, by forcing working Americans to subsidize the trade of wealthy companies that could easily afford to subsidize their own trade, as well as subsidizing brutal governments like Red China and the Sudan. Eximbank also violates the limitations on congressional power to take the property of individual citizens and use it to benefit powerful special interests. It is for these reasons that I urge my colleagues to reject H.R. 2871, the Export-Import Bank Reauthorization Act. interest Seeks More Balance Of Interests 2 May 2002    2002 Ron Paul 34:5 Even our chairman of the committee was quoted in the paper this morning of saying, well, if he had his way, he would prefer a more balanced resolution. And he is a very, very strong supporter of Israel. Of course, I would like to see a more balanced resolution, too. I would like to see one where we balance America’s interests as well as others. interest Seeks More Balance Of Interests 2 May 2002    2002 Ron Paul 34:6 There is a lot of talk about democracy and peace. I take a position of nonintervention in the affairs of other people. I believe very sincerely that it is consistent with the Constitution and very sincerely that it works to our best interest for national security and for defense; and that even though this is intended very sincerely to help Israel, motions like this, resolutions like this, can very well backfire and actually hurt Israel more so than they will help. interest Say No to Conscription May 9, 2002    2002 Ron Paul 35:15 Nor is it, Sir, for the defense of his own house and home, that he who is the subject of military draft is to perform the task allotted to him. You will put him upon a service equally foreign to his interests and abhorrent to his feelings. With his aid you are to push your purposes of conquest. The battles which he is to fight are the battles of invasion; battles which he detests perhaps and abhors, less from the danger and the death that gather over them, and the blood with which they drench the plain, than from the principles in which they have their origin. If, Sir, in this strife he fall — if, while ready to obey every rightful command of Government, he is forced from home against right, not to contend for the defense of his country, but to prosecute a miserable and detestable project of invasion, and in that strife he fall, ’tis murder. It may stalk above the cognizance of human law, but in the sight of Heaven it is murder; and though millions of years may roll away, while his ashes and yours lie mingled together in the earth, the day will yet come, when his spirit and the spirits of his children must be met at the bar of omnipotent justice. May God, in his compassion, shield me from any participation in the enormity of this guilt. interest Amendment 9 9 May 2002    2002 Ron Paul 37:5 But the interesting thing is that under this Rome Convention, the agreement is once 60 nations sign the treaty, it goes into effect. Even with what the President did by rescinding the signature and saying we do not want any part of it, we are still under international law under the understanding that our servicemen could be called into International Criminal Court. interest Stop Perpetuating the Welfare State May 16, 2002    2002 Ron Paul 42:12 Voluntary charities also promote self-reliance, but government welfare programs foster dependency. In fact, it is the self-interests of the bureaucrats and politicians who control the welfare state to encourage dependency. After all, when a private organization moves a person off welfare, the organization has fulfilled its mission and proved its worth to donors. In contrast, when people leave government welfare programs, they have deprived federal bureaucrats of power and of a justification for a larger amount of taxpayer funding. interest Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:3 I do not think for a minute that this is much different than social engineering that we try here in the U.S. with a lot of duress and a lot of problems; and now we are going to do it over there where we really do not understand the social conditions that exist, and it is not like here. Some, especially those in that part of the world, will see this as neo-colonialism because we are over there for a lot of different reasons. And even in the bill it states one of the reasons. It says, “We are to design an overall strategy to advance U.S. interests in Afghanistan.” interest Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:4 Well, I wonder what that means? Over 10 years ago there was an explicit desire and a statement made by the administration that until we had a unified government in Afghanistan, we could not build a gas pipeline across northern Afghanistan. And that is in our interests. Does that mean this is one of the motivations? interest Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:10 As is often the case, much of the money authorized by this bill will go toward lucrative contracts with well-connected private firms and individuals. In short, when you look past all the talk about building civil society in Afghanistan and defending against terrorism, this bill is laden with the usual corporate welfare and hand-outs to special interests. interest Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:16 Madam Chairman, some two decades ago the Soviet Union also invaded Afghanistan and attempted to impose upon the Afghan people a foreign political system. Some nine years and 15,000 Soviet lives later they retreated in disgrace, morally and financially bankrupt. During that time, we propped up the Afghan resistance with our weapons, money, and training, planting the seeds of the Taliban in the process. Now the former Soviet Union is gone, its armies long withdrawn from Afghanistan, and we’re left cleaning up the mess- yet we won’t be loved for it. No, we won’t get respect or allegiance from the Afghans, especially now that our bombs have rained down upon them. We will pay the bills, however, Afghanistan will become a tragic ward of the American state, another example of an interventionist foreign policy that is supposed to serve our national interests and gain allies, yet which does neither. interest Don’t Force Taxpayers to Fund Nation-Building in Afghanistan May 21, 2002    2002 Ron Paul 43:17 I repeat that t he President has not been interested in this legislation. I do not see a good reason to give him the burden of reporting back to us in 45 days to explain how he is going to provide for Afghan security for the long term. How long is long term? We have been in Korea now for 50 years. Are we planning to send troops that provide national security for Afghanistan? I think we should be more concerned about the security of this country and not wondering how we are going to provide the troops for long-term security in Afghanistan. We should be more concerned about the security of our ports. interest Opposing The Amendment 21 May 2002    2002 Ron Paul 45:2 Madam Chairman, I rise in opposition to the amendment. The President has not been interested in this legislation. I do not see a good reason to give him the burden of reporting back to us in 45 days to explain how he is going to provide for Afghan security for the long term. How long is long term? We have been in Korea now for 50 years. Are we planning to send troops that provide national security for Afghanistan? I think we should be more concerned about the security of this country and not wondering how we are going to provide the troops for longterm security in Afghanistan. We should be more concerned about the security of our ports. interest No More Taxpayer Funds for the Failed Drug War in Colombia May 23, 2002    2002 Ron Paul 49:2 The interesting thing about what is going on right now, there is no politics in this. This is about war, and this is important, and this is about policy. It is said that we would like to get things like this through without a full discussion; but this, to me, is a key issue. This amendment is about whether or not we will change our policy in central America and, specifically, in Colombia. interest Oppose the "Supplemental" Spending Bill May 24, 2002    2002 Ron Paul 50:3 Even much of the military spending in this bill has no relationship to legitimate national security needs. Instead it furthers an interventionist foreign policy which is neither constitutional nor in the best interests of the American people. For example, this supplemental contains a stealth attempt to shift our policy toward Colombia, expanding our already failed drug war to include direct participation in Colombia’s 38-year civil war. Though a bill on Colombia was scheduled for markup in the International Relations committee, for some reason it was pulled at the last minute. Therefore, the committee has not been able to debate this policy shift on Colombia. We are instead expected just not to notice, I suppose, that the policy shift has been included in this bill. interest Oppose the "Supplemental" Spending Bill May 24, 2002    2002 Ron Paul 50:8 US commercial interests — not national security — are a big factor in our shifting policy toward Colombia. We have already seen an administration request for an additional $98 million to help protect the Caño-Limon Pipeline - jointly owned by the Colombian national oil company and Occidental Petroleum. This supplemental will provide for the first installment of this money to be paid to protect Occidental’s pipeline. interest Oppose the "Supplemental" Spending Bill May 24, 2002    2002 Ron Paul 50:11 In conclusion, Mr. Speaker, HR 4775 contains increases in unconstitutional spending on wide variety of welfare programs and foreign aid. It also ignores the true security interests of the American people by spending valuable resources on a flawed Colombian policy. This bill also creates conditions for further expansions in spending by providing a procedure to raise the debt ceiling safe from public scrutiny. HR 4775 thus threatens the liberty and prosperity of all Americans so I urge my colleagues to reject this bill. interest Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:2 But Congress should be interested in the dollar fluctuation not as an investment but because of our responsibility for maintaining a sound and stable currency, a requirement for sustained economic growth. interest Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:8 There are a lot of reasons the market is pushing down the value of the dollar at this time. But only one is foremost. Current world economic and political conditions lead to less trust in the dollar’s value. Economic strength here at home is questionable and causes concerns. Our huge foreign debt is more than $2 trillion, and our current account deficit is now 4 percent of GDP and growing. Financing this debt requires borrowing $1.3 billion per day from overseas. But these problems are ancillary to the real reason that the dollar must go down in value. For nearly 7 years the U.S. has had the privilege of creating unlimited amounts of dollars with foreigners only too eager to accept them to satisfy our ravenous appetite for consumer items. The markets have yet to discount most of this monetary inflation. But they are doing so now; and for us to ignore what is happening, we do so at the Nation’s peril. Price inflation and much higher interest rates are around the corner. interest Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:9 Misplaced confidence in a currency can lead money managers and investors astray, but eventually the piper must be paid. Last year’s record interest rate drop by the Federal Reserve was like pouring gasoline on a fire. Now the policy of the past decade is being recognized as being weak for the dollar; and trust and confidence in it is justifiably being questioned. interest Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:10 Trust in paper is difficult to measure and anticipate, but long-term value in gold is dependable and more reliably assessed. Printing money and creating artificial credit may temporarily lower interest rates, but it also causes the distortions of malinvestment, overcapacity, excessive debt and speculation. These conditions cause instability, and market forces eventually overrule the intentions of the central bankers. That is when the apparent benefits of the easy money disappear, such as we dramatically have seen with the crash of the dot-coms and the Enrons and many other stocks. interest Export-Import Bank Is Corporate Welfare 5 June 2002    2002 Ron Paul 53:3 One thing that annoys me the most is when Members come to the floor and in the name of free trade say we have to support the Export-Import Bank. This is the opposite of free trade. Free trade is good. Low tariffs are good, which lead to lower prices; but subsidies to our competitors is not free trade. We should call it for what it is. We have Members who claim they are free traders, and yet support managed trade through NAFTA and WTO and all these special interest management schemes, as well as competitive devaluation of currencies with the notion that we might increase exports. This has nothing to do with free trade. interest BAD TAX POLICY SENDS COMPANIES OVERSEAS June 11, 2002    2002 Ron Paul 55:1 Mr. PAUL. Mr. Speaker, I wish to call my colleagues’ attention to the following article entitled “Bad Tax Policy: You Can Run .....” by Daniel Mitchell, McKenna Senior Fellow at the Heritage Foundation. Mr. Mitchell discusses the practice of companies reincorporating in foreign jurisdictions to reduce their tax liability. As Mr. Mitchell points out, reincorporation benefits shareholders and American workers. This is because reincorporation In a low-tax foreign jurisdiction makes companies more competitive, thus enabling the companies to create new and better jobs for working Americans. Furthermore, reincorporation helps protect American companies from corporate takeovers by foreign investors. America’s anti-competitive tax system is a major reason why several US companies have been taken over by foreign business interests. interest BAD TAX POLICY SENDS COMPANIES OVERSEAS June 11, 2002    2002 Ron Paul 55:10 In an effort to protect the interests of workers, shareholders and consumers, some of these companies are escaping bad U.S. tax law by rechartering in Bermuda. interest Inspection or Invasion in Iraq? June 24, 2002    2002 Ron Paul 57:3 Mr. Ritter, who as former chief UN inspector in Iraq probably knows that country better than any of us here, made some excellent points in a recent meeting with Republican members of Congress. According to Mr. Ritter, no American-installed regime could survive in Iraq. Interestingly, Mr. Ritter noted that though his rule is no doubt despotic, Saddam Hussein has been harsher toward Islamic fundamentalism than any other Arab regime. He added that any U.S. invasion to remove Saddam from power would likely open the door to an anti-American fundamentalist Islamic regime in Iraq. That can hardly be viewed in a positive light here in the United States. Is a policy that replaces a bad regime with a worse regime the wisest course to follow? interest Interstate And Foreign Travel For Sex With Children 25 June 2002    2002 Ron Paul 61:3 At a time when federal resources are stretched to the limit, and when we are not even able to keep known terrorists out of our own country, this bill would require federal agents to not only track Americans as they vacation abroad but would require that they be able to divine the intentions of these individuals who seek to travel abroad. Talk about a tall order! As well-intentioned as I am sure this legislation is, I do not believe that it is a practical or well-thought-out approach to what I agree is a serious and disturbing problem. perhaps a better approach would be to share with those interested countries our own laws and approaches to prosecuting those who commit these kinds of crimes, so as to see more effective capture and punishment of these criminals in the countries where the crime is committed. interest Is America a Police State? June 27, 2002    2002 Ron Paul 64:4 I have, for more than two decades, been severely critical of our post-World War II foreign policy. I have perceived it to be not in our best interest and have believed that it presented a serious danger to our security. interest Is America a Police State? June 27, 2002    2002 Ron Paul 64:6 Our commercial interests and foreign policy are no longer separate...as bad as it is that average Americans are forced to subsidize such a system, we additionally are placed in greater danger because of our arrogant policy of bombing nations that do not submit to our wishes. This generates hatred directed toward America ...and exposes us to a greater threat of terrorism, since this is the only vehicle our victims can use to retaliate against a powerful military state...the cost in terms of lost liberties and unnecessary exposure to terrorism is difficult to assess, but in time, it will become apparent to all of us that foreign interventionism is of no benefit to American citizens, but instead is a threat to our liberties. interest Is America a Police State? June 27, 2002    2002 Ron Paul 64:31 Economic threats against business establishments are notorious. Rules and regulations from the EPA, the ADA, the SEC, the LRB, OSHA, etc. terrorize business owners into submission, and those charged accept their own guilt until they can prove themselves innocent. Of course, it turns out it’s much more practical to admit guilt and pay the fine. This serves the interest of the authoritarians because it firmly establishes just who is in charge. interest Is America a Police State? June 27, 2002    2002 Ron Paul 64:48 That’s why the post-9/11 analysis and subsequent legislation are crucial to the survival of those institutions that made America great. We now are considering a major legislative proposal dealing with this dilemma- the new Department of Homeland Security- and we must decide if it truly serves the interests of America. interest Is America a Police State? June 27, 2002    2002 Ron Paul 64:72 I’m sure that a more enlightened approach to our foreign policy will prove elusive. Financial interests of our international corporations, oil companies, and banks, along with the military-industrial complex, are sure to remain a deciding influence on our policies. interest Is America a Police State? June 27, 2002    2002 Ron Paul 64:76 Maybe there is no real desire to remove the excuse for our worldwide imperialism, especially our current new expansion into central Asia or the domestic violations of our civil liberties. Today’s conditions may well be exactly what our world commercial interests want. It’s now easy for us to go into the Philippines, Columbia, Pakistan, Afghanistan, or wherever in pursuit of terrorists. No questions are asked by the media or the politicians- only cheers. Put in these terms, who can object? We all despise the tactics of the terrorists, so the nature of the response is not to be questioned! interest Is America a Police State? June 27, 2002    2002 Ron Paul 64:92 Our CIA attempt to assassinate Castro backfired with the subsequent assassination of our president. Killing Saddam Hussein, just for the sake of killing him, obviously will increase the threat against us, not diminish it. It makes no sense. But our warriors argue that someday he may build a bomb, someday he might use it, maybe against us or some yet-unknown target. This policy further radicalizes the Islamic fundamentalists against us, because from their viewpoint, our policy is driven by Israeli, not U.S. security interests. interest Is America a Police State? June 27, 2002    2002 Ron Paul 64:116 This method of providing security emphasizes private-property ownership and responsibility of the owners to protect that property. But the right to bear arms must also be included. The fact that the administration is opposed to guns in the cockpit and the fact that the airline owners are more interested in bailouts and insurance protection mean that we’re just digging a bigger hole for ourselves- ignoring liberty and expecting the government to provide something it’s not capable of doing. interest Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:5 Nixon was right- once- when he declared "We’re all Keynesians now." All of Washington is in sync in declaring that too much capitalism has brought us to where we are today. The only decision now before the central planners in Washington is whose special interests will continue to benefit from the coming pretense at reform. The various special interests will be lobbying heavily like the Wall Street investors, the corporations, the military-industrial complex, the banks, the workers, the unions, the farmers, the politicians, and everybody else. interest Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:10 Capitalism should not be condemned, since we haven’t had capitalism. A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank. It’s not capitalism when the system is plagued with incomprehensible rules regarding mergers, acquisitions, and stock sales, along with wage controls, price controls, protectionism, corporate subsidies, international management of trade, complex and punishing corporate taxes, privileged government contracts to the military- industrial complex, and a foreign policy controlled by corporate interests and overseas investments. Add to this centralized federal mismanagement of farming, education, medicine, insurance, banking and welfare. This is not capitalism! interest Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:15 But now we know that’s just not so. Speculative bubbles and all that we’ve been witnessing are a consequence of huge amounts of easy credit, created out of thin air by the Federal Reserve. We’ve had essentially no savings, which is one of the most significant driving forces in capitalism. The illusion created by low interest rates perpetuates the bubble and all the bad stuff that goes along with it. And that’s not a fault of capitalism. We are dealing with a system of inflationism and interventionism that always produces a bubble economy that must end badly. interest Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:17 This is a bad scenario that need not happen. But preserving our system is impossible if the critics are allowed to blame capitalism and sound monetary policy is rejected. More spending, more debt, more easy credit, more distortion of interest rates, more regulations on everything, and more foreign meddling will soon force us into the very uncomfortable position of deciding the fate of our entire political system. interest Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:18 If we were to choose freedom and capitalism, we would restore our dollar to a commodity or a gold standard. Federal spending would be reduced, income taxes would be lowered, and no taxes would be levied upon savings, dividends, and capital gains. Regulations would be reduced, special-interest subsidies would be stopped, and no protectionist measures would be permitted. Our foreign policy would change, and we would bring our troops home. interest Hard Questions for Federal Reserve Chairman Greenspan July 17, 2002    2002 Ron Paul 71:4 "Now I would like to bring us back to sound money. And I would like to quote an eminent economist by the name of Alan Greenspan who gives me some credibility on what I am interested in. A time ago you said, “In the absence of the gold standard there is no way to protect savings from the confiscation through inflation. There is no safe store of value without gold. This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious process that stands as a protector of property rights.’" interest Treasury And General Government Appropriations Act, 2003 23 July 2002    2002 Ron Paul 74:1 Mr. PAUL. Mr. Chairman, I rise in strong support of the Flake and Rangel amendments to the Treasury-Postal Service Appropriations Act. The argument that allowing Americans to travel to Cuba props up Fidel Castro’s regime is just not supported by fact. History has shown that allowing — even encouraging — American citizens to travel to and engage commercially in less-than-free societies ignites the spark of freedom and hastens democratic transformations. Unfortunately, special interests have driven some to argue even against demonstrated fact in pursuit of their political agenda. interest 25 July 2002 Monetary Practices    2002 Ron Paul 78:6 Yet, proponents of the Austrian theory have themselves embraced this apt metaphor. And if investment is the intoxicant, then the interest rate is the minimum drinking age. Set the interest rate too low, and there is bound to be trouble ahead. interest 25 July 2002 Monetary Practices    2002 Ron Paul 78:7 The metaphorical drinking age is set by — and periodically changed by — the Federal Reserve. In our Fed-centric mixed economy, the understanding that “the Fed sets interest rates” has become widely accepted as a simple institutional fact. But unlike an actual drinking age, which has an inherent degree of arbitrariness about it, the interest rate cannot simply be “set” by some extramarket authority. With market forces in play, it has a life of its own. interest 25 July 2002 Monetary Practices    2002 Ron Paul 78:8 The interest rate is a price. It’s the price that brings into balance our eagerness to consume now and our willingness to save and invest for the future. The more we save, the lower the market rate. Our increased saving makes more investment possible; the lower rate makes investments more future oriented. In this way, the market balances current consumption and economic growth. interest 25 July 2002 Monetary Practices    2002 Ron Paul 78:9 Price fixing foils the market. Government mandated ceilings on apartment rental rates, for instance, create housing shortages, as is well known by anyone who has gone apartment hunting in New York City. Similarly, a legislated interest-rate ceiling would cause a credit shortage: The volume of investment funds demanded would exceed people’s actual willingness to save. interest 25 July 2002 Monetary Practices    2002 Ron Paul 78:10 But the Fed can do more than simply impose a ceiling on credit markets. Setting the interest rate below where the market would have it is accomplished not by decree but by increasing the money supply, temporarily masking the discrepancy between supply and demand. This papering over of the credit shortage hides a problem that would otherwise be obvious, allowing it to fester beneath a binge of investment spending. interest 25 July 2002 Monetary Practices    2002 Ron Paul 78:11 An artificially low rate of interest, then, sets the economy off on an unsustainable growth path. During the boom, investment spending is excessively long-term and overly optimistic. Further, high levels of consumer spending draw real resources away from the investment sector, increasing the gap between the resources actually available and the resources needed to see the long-term and speculative investments through to completion. interest 25 July 2002 Monetary Practices    2002 Ron Paul 78:20 During the first half of 2001, the Fed demonstrated — with its half-dozen interest-rate cuts and a near-desperate MZM growth of over 23% — that you can’t recreate euphoria in the midst of a hangover. interest 25 July 2002 Monetary Practices    2002 Ron Paul 78:22 “We are not in the midst of a financial panic, and recovery isn’t simply a matter of restoring confidence. Indeed, excessive confidence [fostered by unduly low interest rates maintained by rapid monetary growth? — RG & GC] may be part of the problem. Instead of being the victims of self-fulfilling pessimism, we may be suffering from self-defeating optimism. The driving force behind the current slowdown is a plunge in business investment. It now seems clear that over the last few years businesses spent too much on equipment and software and that they will be cautious about further spending until their excess capacity has been worked off. And the Fed cannot do much to change their minds, since equipment spending [at least when such spending has already proved to be excessive — RG & GC] is not particularly sensitive to interest rates.” interest Congress Sgould Think Twice Before Thrusting U.S. Into War September 4, 2002    2002 Ron Paul 81:2 Thomas Jefferson once said: "Never was so much false arithmetic employed on any subject as that which has been employed to persuade nations that it is in their interests to go to war." interest Congress Sgould Think Twice Before Thrusting U.S. Into War September 4, 2002    2002 Ron Paul 81:13 This is a very important matter, and I am delighted to hear that there will be congressional hearings and discussion. I certainly believe we should have a balanced approach. We have already had some hearings in the other body, where we heard only one side of the issue. If we want to have real hearings, we should have a debate and hear evidence on both sides, rather than just hearing pro-war interests arguing for war. interest The Price Of War 5 September 2002    2002 Ron Paul 83:12 Throughout most of the 20th century it was our competition with the Soviets that prompted our ever-expanded presence around the world. We are where we are today almost by default, but does that justify its being in our best interests? interest The Price Of War 5 September 2002    2002 Ron Paul 83:15 The result then is that the action taken turns out to be actually detrimental to our national security interest; yet no effort is made to challenge the fundamental principle behind our foreign policy. It is this failure to adhere to a set of principles that has allowed us to slip into this role and, if unchallenged, could well undo the liberties we all cherish. interest The Price Of War 5 September 2002    2002 Ron Paul 83:18 Competing with a power like the Soviet Union prompted our involvement in areas of the world where the struggle for the balance of power was the sole motivating force. The foreign policy of the 20th century replaced the policy endorsed by our early Presidents and permitted our steadily growing involvement overseas in an effort to control the world’s commercial interests with a special emphasis on oil. interest The Price Of War 5 September 2002    2002 Ron Paul 83:31 In the transition from the original American foreign policy of peace, trade and neutrality to that of world policemen, we have sacrificed our sovereignty to world government organizations such as the U.N., the IMF, the World Bank, and the WTO. To further confuse and undermine our position, we currently have embarked on a policy of unilateralism within these world organizations. This means we accept the principle of globalized government when it pleases us, but when it does not, we should ignore it for our own interest’s sake. interest The Price Of War 5 September 2002    2002 Ron Paul 83:32 Acting in our own interest is to be applauded, but what we are getting is not a good alternative to one-world government. We do not get our sovereignty back, yet we continue to subject ourselves to great potential financial burden and loss of liberty as we shift from a national government with constitutional protection of rights to an international government where our citizens’ rights are threatened by treaties we have not even ratified, like the Kyoto and the international criminal court treaties. interest The Price Of War 5 September 2002    2002 Ron Paul 83:33 We cannot depend on controlling the world government at some later date, even if that seems to be what we are able to do now. The unilateralist approach of domination over the world’s leaders, and arbitrary ignoring of certain mandates, something we can do with impunity because of our intimidating power, serves only to further undermine our prestige and acceptability throughout the world. And this includes the Muslim countries as well as our European friends. This merely sets the stage for both our enemies and current friends to act in concert against our interest when the time comes. This is especially true if we become financially strapped and our dollar is sharply weakened and we are in a much more vulnerable bargaining position. interest The Price Of War 5 September 2002    2002 Ron Paul 83:35 Long-term foreign interventionism does not serve our interest. Tinkering on the edges with current policy will not help. An announced policy of support for globalist government, assuming the financial and military role of world policemen, maintaining an American world empire while flaunting unilateralism, is a recipe for disaster. U.S. unilateralism is a far cry from the nonintervention that the Founders advised. interest The Price Of War 5 September 2002    2002 Ron Paul 83:38 Avoiding entangling alliances and meddling in the internal affairs of other nations is crucial, no matter how many special interests demand otherwise. The entangling alliances we should avoid include the complex alliances in the U.N., the IMF, the World Bank, and the WTO. One-world government goals are anathema to the nonintervention and free trade. The temptation to settle disputes and install better governments abroad is fraught with great danger and many uncertainties. interest The Price Of War 5 September 2002    2002 Ron Paul 83:42 A successful and prosperous society comes from such a policy and is impossible without a sound free-market economy, one not controlled by a central bank. Avoiding trade wars, devaluations, inflations, deflations, and disruption of free trade with protectionist legislation are impossible under a system of international trade dependent on fluctuating fiat currencies controlled by world central banks and influenced by powerful financial interests. Instability in trade is one of the prime causes of creating conditions leading to war. interest The Price Of War 5 September 2002    2002 Ron Paul 83:43 The basic moral principle underpinning a noninterventionist foreign policy is that of rejecting the initiation of force against others. It is based on nonviolence and friendship unless attacked, with determination for self-defense while avoiding confrontation, even when we disagree with the way other countries run their affairs. It simply means that we should mind our own business and not be influenced by the special interests that have an axe to grind or benefits to gain by controlling other foreign policy. Manipulating our country into conflicts that are none of our business and of no security interest provides no benefits to us, while exposing us to great risk financially and militarily. interest The Price Of War 5 September 2002    2002 Ron Paul 83:45 All foreign aid would be discontinued. Most evidence shows this money rarely helps the poor but instead solidifies power in the hands of dictators. There is no moral argument that can justify taxing poor people in this country to help rich people in poor countries. Much of the foreign aid, when spent, is channeled back to weapons manufacturers and other special interests in the United States who are the strong promoters of these foreign aid expenditures, yet it is all done in the name of humanitarian causes. interest The Price Of War 5 September 2002    2002 Ron Paul 83:47 The principle of mark and reprisal would be revived, and specific problems, such as terrorist threats, would be dealt with on a contract basis, incorporating private resources to more accurately target our enemies and reduce the chances of needless and endless war. This would help prevent a continual expansion of a conflict into areas not relating to any immediate threat. By narrowing the target, there is less opportunity for special interests to manipulate our foreign policy to serve the financial needs of the oil and military weapons industries. interest The Price Of War 5 September 2002    2002 Ron Paul 83:49 If we followed a constitutional policy of nonintervention, we would never have to entertain the aggressive notion of preemptive war based on speculation of what a country might do at some future date. Political pressure by other countries to alter our foreign policy for their benefit would never be a consideration. Commercial interests of our citizens investing overseas could not expect our armies to follow them and to protect their profits. interest Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:5 Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of the special interests and their own appetite for big government. interest Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:10 Why wasn’t it obvious? The Fed has been inflating the dollar as never before, driving interest rates down to absurdly low levels, even as the federal government has been pushing a mercantile trade policy, and New York City, the hub of the world economy, continues to be threatened by terrorism. The government is failing to prevent more successful attacks by not backing down from foreign policy disasters and by not allowing planes to arm themselves. interest Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:28 Is a gold standard feasible again? Of course. The dollar could be redefined in terms of gold. Interest rates would reflect the real supply and demand for credit. We could shut down the Fed and we would never need to worry again what the chairman of the Fed wanted. There was a time when Greenspan was nostalgic for such a system. Investors of the world have come to embrace this view even as Greenspan has completely abandoned it. interest A Political Mistake September 18, 2002    2002 Ron Paul 87:1 Mr. Speaker, I have for years advocated a moral and constitutional approach to our foreign policy. This has been done in the sincerest belief that a policy of peace, trade, and friendship with all nations is far superior in all respects to a policy of war, protectionism, and confrontation. But in the Congress I find, with regards to foreign affairs, no interest in following the precepts of the Constitution and the advice of our early Presidents. interest A Political Mistake September 18, 2002    2002 Ron Paul 87:8 Since no one wants to hear anymore of morality and constitutionality and justice, possibly some will listen to the politics of war, since that is what drives so many. A token victory at the polls this fall by using a vote on the war as a lever will be to little avail. It may not even work in the short run. Surely, history shows that war is never a winner, especially when the people who have to pay, fight, and die for it come to realize that the war was not even necessary and had nothing to do with national security or fighting for freedom, but was promoted by special interests who stood to gain from taking over a sovereign country. interest “Say ‘No’ To UNESCO” Act 26 September 2002    2002 Ron Paul 91:2 Mr. Speaker, in 1984 President Ronald Reagan withdrew the United States from membership in that UNESCO, citing egregious financial mis-management, blatant anti-Americanism, and UNESCO’s general anti-freedom policies. President Reagan was correct in identifying UNESCO as an organization that does not act in America’s interest, and he was correct in questioning why the United States should fund 25 percent of UNESCO’s budget for that privilege. interest Statement Opposing the use of Military Force against Iraq October 8, 2002    2002 Ron Paul 96:2 But I am very interested also in the process that we are pursuing. This is not a resolution to declare war. We know that. This is a resolution that does something much different. This resolution transfers the responsibility, the authority, and the power of the Congress to the President so he can declare war when and if he wants to. He has not even indicated that he wants to go to war or has to go to war; but he will make the full decision, not the Congress, not the people through the Congress of this country in that manner. interest Statement Opposing the use of Military Force against Iraq October 8, 2002    2002 Ron Paul 96:3 It does something else, though. One-half of the resolution delivers this power to the President, but it also instructs him to enforce U.N. resolutions. I happen to think I would rather listen to the President when he talks about unilateralism and national security interests, than accept this responsibility to follow all of the rules and the dictates of the United Nations. That is what this resolution does. It instructs him to follow all of the resolutions. interest Statement Opposing the use of Military Force against Iraq October 8, 2002    2002 Ron Paul 96:14 As James Madison wrote in 1798, "The Constitution supposes what the history of all governments demonstrates, that the executive is the branch of power most interested in war, and most prone to it. It has, accordingly, with studied care, vested the question of war in the legislature." interest Statement Opposing the use of Military Force against Iraq October 8, 2002    2002 Ron Paul 96:16 Mr. Speaker, for the more than one dozen years I have spent as a federal legislator I have taken a particular interest in foreign affairs and especially the politics of the Middle East. From my seat on the international relations committee I have had the opportunity to review dozens of documents and to sit through numerous hearings and mark-up sessions regarding the issues of both Iraq and international terrorism. interest Statement Opposing the use of Military Force against Iraq October 8, 2002    2002 Ron Paul 96:24 Reality: It is far from certain that Iraq was behind the attack. News reports at the time were skeptical about Kuwaiti assertions that the attack was planned by Iraq against former. President Bush. Following is an interesting quote from Seymore Hersh’s article from Nov. 1993: interest Statement Opposing the use of Military Force against Iraq October 8, 2002    2002 Ron Paul 96:27 The President was not alone in his caution. Janet Reno, the Attorney General, also had her doubts. "The A.G. remains skeptical of certain aspects of the case," a senior Justice Department official told me in late July, a month after the bombs were dropped on Baghdad…Two weeks later, what amounted to open warfare broke out among various factions in the government on the issue of who had done what in Kuwait. Someone gave a Boston Globe reporter access to a classified C.I.A. study that was highly skeptical of the Kuwaiti claims of an Iraqi assassination attempt. The study, prepared by the C.I.A.’s Counter Terrorism Center, suggested that Kuwait might have "cooked the books" on the alleged plot in an effort to play up the "continuing Iraqi threat" to Western interests in the Persian Gulf . Neither the Times nor the Post made any significant mention of the Globe dispatch, which had been written by a Washington correspondent named Paul Quinn-Judge, although the story cited specific paragraphs from the C.I.A. assessment. The two major American newspapers had been driven by their sources to the other side of the debate. interest Child Abduction Prevention Act 16 October 2002    2002 Ron Paul 99:6 At a time when federal resources are stretched to the limit, and when we are not even able to keep known terrorists out of our own country, this bill would require federal agents to not only track Americans as they vacation abroad, but would also require that they be able to divine the intentions of these individuals who seek to travel abroad. Talk about a tall order! As well-intentioned as I am sure this legislation is, I do not believe that it is a practical or well-thought-out approach to what I agree is a serious and disturbing problem. Perhaps a better approach would be to share with those interested countries our own laws and approaches to prosecuting those who commit these kinds of crimes, so as to see more effective capture and punishment of these criminals in the countries where the crime is committed. interest Introduction of the Social Security Preservation Act January 7, 2003    2003 Ron Paul 1:1 Mr. PAUL. Mr. Speaker, I rise to protect the integrity of the Social Security trust fund by introducing the Social Security Preservation Act. The Social Security Preservation Act is a rather simple bill which states that all monies raised by the Social Security trust fund will be spent in payments to beneficiaries, with excess receipts invested in interest-bearing certificates of deposit. This will help keep Social Security trust fund monies from being diverted to other programs, as well as allow the fund to grow by providing for investment in interest-bearing instruments. interest Say NO to UNESCO January 7, 2003    2003 Ron Paul 2:2 Mr. Speaker, in 1984 President Ronald Reagan withdrew the United States from membership in that UNESCO, citing egregious financial mismanagement, blatant anti-Americanism, and UNESCO’s general anti-freedom policies. President Reagan was correct in identifying UNESCO as an organization that does not act in America’s interest, and he was correct in questioning why the United States should fund 25 percent of UNESCO’s budget for that privilege. interest Stop Identity Theft – Make Social Security Numbers Confidential January 7, 2003    2003 Ron Paul 4:13 Second, the federal government has been creating proprietary interests in private information for certain state-favored special interests. Perhaps the most outrageous example of phony privacy protection is the “medical privacy” regulation, which allows medical researchers, certain business interests, and law enforcement officials’ access to health care information, in complete disregard of the Fifth Amendment and the wishes of individual patients! Obviously, “privacy protection” laws have proven greatly inadequate to protect personal information when the government is the one providing or seeking the information. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:18 The majority is assumed to be in charge today and can do whatever it pleases. If the majority has not yet sanctioned some desired breach of action demanded by special interest, the propaganda machine goes into operation and the pollsters relay the information back to politicians who are seeking legitimacy in their endeavors. The rule of law and the Constitution have become irrelevant, and we live by constant polls. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:31 Democracy is promoted in the name of fairness in an effort to help some special interest group receive a benefit that it claims it needs or is entitled to. If only one small group were involved, nothing would come of the demands, but coalitions develop and the various groups ban together to form a majority, to vote themselves all those things that they expect others to provide for them. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:32 Although the motivating factor is frequently the desire for the poor to better themselves through the willingness of others to sacrifice for what they see as a good cause, the process is doomed to failure. Governments are inefficient and the desired goals are rarely achieved. Administrators who benefit perpetuate the programs. Wealthy elites learn to benefit from the system in a superior fashion over the poor because they know how to skim the cream off the top of all the programs designed for the disadvantaged. They join the various groups in producing the majority vote needed to fund their own special interest. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:35 Prohibitions placed in the Constitution against programs that serve special interests are the greatest threat to the current system of democracy under which we operate. In order for the benefits to continue, politicians must reject the rule of law and concern themselves only with the control of majority opinion. Sadly, that is the job of almost all politicians. It is clearly the motivation behind the millions spent on constant lobbying, as well as the billions spent on promoting the right candidate in each election. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:44 The destruction of the wealth-building process, which is inherent in a free society, is never anticipated. Once it is realized it has been undermined, it is too late to easily reverse the attacks against limited government and personal liberty. Democracy, by necessity, endorses special interest interventionism, inflationism and corporatism. In order to carry out the duties now expected of the government, power must be transferred from the citizens to the politicians. The only thing left is to decide which group or groups have the greatest influence over the government officials. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:45 As the wealth of the nation dwindles, competition between the special interest groups grows more intense and becomes the dominant goal of all political action. Restoration of liberty, the market, and personal responsibilities are of little interest and are eventually seen as impractical. Power and public opinion become crucial factors in determining the direction of all government expenditures. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:49 Simply stated, our wealth is running out, and the affordability of democracy is coming to an end. History reveals that once majorities can vote themselves largesse, the system is destined to collapse from within. But in order to maintain the special interest system for as long as possible, more and more power must be given to an ever-expanding central government, which of course only makes matters worse. The economic shortcomings of such a system are easily understood. What is too often ignored is that the flip side of delivering power to government is the loss of liberty to the individual. This loss of liberty causes exactly what the government does not want: Less productive citizens who can’t pay taxes. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:70 In spite of the great strides made toward one-world government based on egalitarianism, I am optimistic that this utopian nightmare will never come to fruition. I have already made the case that here at home powerful special interests take over controlling majority opinion, making sure fairness in distribution is never achieved. This fact causes resentment and becomes so expensive that the entire system becomes unstable and eventually collapses. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:73 The time will come when the Fed will no longer be able to dictate low interest rates. Reluctance of foreigners to lend, the exorbitant size of our borrowing needs, and the risk premium will eventually send interest rates upward. Price inflation will accelerate and the cost of living for all Americans will increase. Under these conditions, most Americans will face a decline in their standard of living. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:77 Democracy is the most excessive form of government. There is no “king” with an interest in preserving the nation’s capital. Everyone desires something, and the special-interest groups, banding together, dictate to the politicians exactly what they want and need. Politicians are handsomely rewarded for being “effective,” that is, getting the benefits for the groups that support them. Effectiveness is never measured by efforts and achievements in securing liberty, even though it is the most important element in a prosperous and progressive world. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:90 Interestingly enough, what is needed is a majority opinion, especially by those who find themselves in leadership roles, whether political, educational or in the media, that rejects democracy and supports the rule of law within the Republic. This majority support is essential for the preservation of the freedom and prosperity with which America is identified. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:91 This will not occur until we as a Nation once again understand how freedom serves the interests of everyone. Henry Grady Weaver, in his 1947 classic, “The Mainspring of Human Progress,” explains how it works. His thesis is simple. Liberty permits progress, while government intervention tends always to tyranny. Liberty releases creative energy; government intervention suppresses it. This release of energy was never greater than in the time following the American Revolution and the writing of the U.S. Constitution. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:92 Instead of individual activity being controlled by the government or superstitious beliefs about natural and mystical events, the activity is controlled by the individual. This understanding recognizes the immense value in voluntary cooperation and enlightened self-interests. Freedom requires selfcontrol and moral responsibility. No one owes anyone else anything and everyone is responsible for his or her own acts. The principle of never harming one’s neighbor, or never sending the government to do the dirty work, is key to making the system tend to peaceful pursuits and away from the tyranny and majority-induced violence. Nothing short of a reaffirmation of this principle can restore the freedoms once guaranteed under the Constitution. Without this, prosperity for the masses is impossible; and as a Nation we become more vulnerable to outside threats. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:95 A system that rejects voluntary contracts, enlightened self-interests and individual responsibilities permits the government to assume these responsibilities. And the government officials become morally obligated to protect us from ourselves, attempting to make us better people and setting standards for our personal behavior. That effort is already in full swing. But if this attitude prevails, liberty is gone. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:106 A system that is based on majority vote rather than the strict rule of law encourages the few who thrive on power and exerting authority over other people’s lives, unlike the many driven by sincere humanitarian concerns. Our current system rewards those who respond to age-old human instincts of envy and greed as they gang up on those who produce. Those individuals who are tempted by the offer of power are quick to accommodate those who are the most demanding of government-giveaway programs and government contracts. These special interest groups notoriously come from both the poor and the rich, while the middle class is required to pay. interest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:112 But there is also a problem with economic understanding. Economic ignorance about the shortcomings of central economic planning, excessive taxation and regulations, central bank manipulation of money, and credit and interest rates is pervasive in our Nation’s Capital. A large number of conservatives now forcefully argue that deficits do not matter. Spending programs never shrink no matter whether conservatives or liberals are in charge. Rhetoric favoring free trade is cancelled out by special interest protectionist measures. Support of international government agencies that manage trade such as the IMF, the World Bank, the WTO, and NAFTA politicizes international trade and eliminates any hope that free-trade capitalism will soon emerge. interest End the Income Tax – Pass the Liberty Amendment January 28, 2003    2003 Ron Paul 7:5 Income taxes not only diminish liberty, they retard economic growth by discouraging work and production. Our current tax system also forces Americans to waste valuable time and money on complacence with an ever-more complex tax code. The increased interest in flat-tax and national sales tax proposals, as well as the increasing number of small businesses that questioning the Internal Revenue Service’s (IRS) “withholding” system provides further proof that America is tired of the labyrinthine tax code. Americans are also increasingly fed up with an IRS that continues to ride roughshod over their civil liberties, despite recent “pro-taxpayer” reforms. interest The Family Education Freedom Act February 5, 2003    2003 Ron Paul 13:9 Clearly, enactment of the Family Education Freedom Act is the best thing this Congress could do to improve public education. Furthermore, a greater reliance on parental expenditures rather than government tax dollars will help make the public schools into true community schools that reflect the wishes of parents and the interests of the students. interest Middle East Conflict 11 February 2003    2003 Ron Paul 18:2 Though I am sure this resolution commending Israel for holding free elections was introduced with the best intentions, this legislation unfortunately goes further than a simple commendation. The legislation as written will only once again inject the United States into the decades-old and intractable conflict in the Middle East. By commending Israel while at the same time demanding that the Palestinians take specific actions, this legislation places the United States squarely in the middle of a conflict that has absolutely nothing to do with American interests. Also, the resolution states that the United States is committed to secure peace for Israel. We cannot afford nor are we constitutionally permitted to play referee in the Israeli-Palestinian conflict, and securing peace for any country but the United States is not the role of this body. interest Condemning The Selection Of Libya To Chair The United Nations Commission On Human Rights 11 February 2003    2003 Ron Paul 19:1 Mr. PAUL. Mr. Speaker, I must reluctantly vote against this measure. We can all agree that Libya is a ridiculous choice to head a human rights commission in any civilized organization. The State Department has long listed Libya on its list of states sponsoring terrorism. Libya has shown over the years that it has no respect whatsoever for human rights, when it comes to its dealings with the rest of the world or even its own citizens. Additionally, this election just underscores what I have been saying for years about the United Nations: it is an organization that undermines American sovereignty and consistently works against U.S. interests. interest Oppose the Federal Welfare State February 13, 2003    2003 Ron Paul 22:12 Voluntary charities also promote self-reliance, but government welfare programs foster dependency. In fact, it is in the self-interest of the bureaucrats and politicians who control the welfare state to encourage dependency. After all, when a private organization moves a person off welfare, the organization has fulfilled its mission and proved its worth to donors. In contrast, when people leave government welfare programs, they have deprived federal bureaucrats of power and of a justification for a larger amount of taxpayer funding. interest Another United Nations War 25 February 2003    2003 Ron Paul 24:6 Although the argument that the United Nations cannot dictate to us what is in our best interests is correct, and we do have a right to pursue foreign policy unilaterally, it is ironic that we are making this declaration in order to pursue an unpopular war that very few people or governments throughout the world support. interest Quality Health Care Coalition Act 12 March 2003    2003 Ron Paul 32:3 As an OB–GYN with over 30 years in practice, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I have tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I have always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO. interest Amber Alert Concerns 19 March 2003    2003 Ron Paul 36:6 At a time when Federal resources are stretched to the limit, American troops are preparing for imminent military conflict, and when we are not even able to keep known terrorists out of our own country, this bill would require Federal agents to not only track Americans as they vacation abroad, but would also require that they be able to divine the intentions of these individuals who seek to travel abroad. Talk about a tall order! As well-intentioned as I am sure this legislation is, I do not believe that it is a practical or well-thought-out approach to what I agree is a serious and disturbing problem. Perhaps a better approach would be to share with those interested countries our own laws and approaches to prosecuting those who commit these kinds of crimes, so as to see more effective capture and punishment of these criminals in the countries where the crime is committed. interest Don’t Antagonize our Trading Partners April 1, 2003    2003 Ron Paul 41:7 The dollar has already significantly weakened this past year, and this trend will surely continue. A weaker dollar requires that we pay more for everything we buy overseas. Foreign borrowing will eventually become more difficult, and this will in time cause interest rates to rise. Be assured that domestic price inflation will accelerate. Economic law dictates that these events will cause the recession to linger and deepen. interest War No Excuse For Frivolous Spending 3 April 2003    2003 Ron Paul 46:3 Although generous to certain corporate interests, this bill actually contains less money than the administration requested for homeland security. One area of homeland security that Congress did not underfund is its own security; this bill provides the full amount requested to ensure the security of the Congress. Still, one could reasonably conclude from reading this bill that the security of Turkey, Pakistan, and Jordan are more important to Congress that the security of Houston, New York and other major American cities. interest Second Amendment Restoration Act 9 April 2003    2003 Ron Paul 47:7 Finally, Mr. Chairman, I would remind my fellow supporters of gun rights that using unconstitutional federal powers to restrict state gun lawsuits makes it more likely those same powers will be used to restrict our gun rights. Despite these lawsuits, the number one threat to gun ownership remains a federal government freed of its constitutional restraints. Expanding that government in any way, no matter how just the cause may seem, is not in the interests of gun owners or any lovers of liberty. interest Second Amendment Restoration Act 9 April 2003    2003 Ron Paul 47:8 In conclusion, while I share the concern over the lawsuits against gun manufacturers, which inspired H.R. 1036, this bill continues the disturbing trend toward federalization of tort law. Enhancing the power of the federal government is not in the long-term interests of defenders of the second amendment and other constitutional liberties. Therefore, I must oppose this bill. interest United States Embargo On Cuba 9 April 2003    2003 Ron Paul 48:6 I certainly understand the emotional feelings many Americans have toward nations such as Iran, Iraq, Libya, and Cuba. Yet we must not let our emotions overwhelm our judgment in foreign policy matters, because ultimately human lives are at stake. Economic common sense, self-interested foreign policy goals, and humanitarian ideals all point to the same conclusion: Congress should work to end economic sanctions against all nations immediately. interest Repeal the So-Called “Medical Privacy Rule” April 9, 2003    2003 Ron Paul 49:9 Forcing individuals to divulge medical information without their consent also runs afoul of the Fifth amendment’s prohibition on taking private property for public use without just compensation. After all, people do have a legitimate property interest in their private information. Therefore, restrictions on an individual’s ability to control the dissemination of their private information represents a massive regulatory taking. The takings clause is designed to prevent this type of sacrifice of individual property rights for the “greater good.” interest Repeal the So-Called “Medical Privacy Rule” April 9, 2003    2003 Ron Paul 49:15 Mr. Speaker, the misnamed medical privacy regulations and the scheme to assign all Americans a unique health care identifier violates the Fourth and Fifth amendments by allowing law enforcement officials and government favored special interests to seize medical records without an individual’s consent or a warrant. Federal supervision of who can access medical records, combined with a federally-assigned medical ID, facilitate the creation of a federal database containing the health care data of every American citizen. These developments could undermine the doctor-patient relationship and thus worsen the health care of millions of Americans. I, therefore, call on my colleagues to join me in repealing these threats to privacy and quality health care by cosponsoring the Patient Privacy Act. interest America National Sovereignty vs. UN “International Law” – Time for Congress to Vote April 29, 2003    2003 Ron Paul 51:1 Mr. Speaker, I rise to urge the leadership of this body to bring a very important vote to the House floor. I recently reintroduced HR 1146, the American Sovereignty Restoration Act, which would end our participation in the United Nations. Millions of Americans have begun to question why we continue to spend $300 million each year funding and housing an organization that is actively hostile to American interests. Surely Congress, which routinely spends 15 minutes renaming post offices, can spare 15 minutes to vote on this fundamental issue of American sovereignty. interest America National Sovereignty vs. UN “International Law” – Time for Congress to Vote April 29, 2003    2003 Ron Paul 51:4 If we do not, rest assured that the UN will continue to interfere not only in our nation’s foreign policy matters, but in our domestic policies as well. UN globalists are not satisfied by meddling only in international disputes. They increasingly want to influence our domestic environmental, trade, labor, tax, and gun laws. UN global planners fully intend to expand the organization into a true world government, complete with taxes, courts, and possibly a standing army. This is not an alarmist statement; these goals are readily promoted on the UN’s own website. UN planners do not care about national sovereignty; in fact they are openly opposed to it. They correctly view it as an obstacle to their plans. They simply aren’t interested in our Constitution and republican form of government. interest Against $15 Billion To Fight AIDS In Africa 1 May 2003    2003 Ron Paul 53:6 I find it interesting here because quite often one side of the aisle when they do not like legislation will use my argument in this case, and other times it is the other side of the aisle. So everybody makes my argument one time or the other. My suggestion is if the Constitution means anything, and if article I, section 8 means anything, it ought to be applied across the board or we ought to change the Constitution and say this is a mandate from the American people that we should pursue missionary work in Africa. interest The Flag Burning Amendment June 3, 2003    2003 Ron Paul 57:34 We must be interested in the spirit of our Constitution. We must be interested in the principles of liberty. I therefore urge my colleagues to oppose this amendment. Instead, my colleagues should work to restore the rights of the individual states to ban flag burning, free from unconstitutional interference by the Supreme Court. interest 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? interest Keep Out Of Middle East Conflicts 25 June 2003    2003 Ron Paul 70:3 But I still believe, through all these bills attempting to intervene in the Middle East, that there is a third option to this that we so often forget about. Why can we not be pro-American? What is in the best interests of the United States? We do not hear much talk of that, unfortunately. interest Keep Out Of Middle East Conflicts 25 June 2003    2003 Ron Paul 70:4 As I keep saying when votes such as this come to the floor, the best foreign policy for the United States is noninterventionism. It is a policy American interests first, costs must less money, and is in keeping with a long American tradition so eloquently described by our Founders. interest The “Continuity of Government” Proposal – A Dangerous and Unnecessary Threat to Representative Rule June 30, 2003    2003 Ron Paul 72:12 The problems with appointment of “representatives” are obvious. COGC calls for a general constitutional amendment that gives Congress wide power to make rules for filling vacancies “in the event that a substantial number of members are killed or incapacitated.” Such an amendment would be unavoidably vague, open to broad interpretation and abuse. In defining terms like “vacancy,” “substantial,” and “incapacitated,” Congress or the courts would be setting a dangerous precedent for a more elastic constitutional framework. Members of Congress simply cannot appoint their colleagues; the conflict of interest is glaring. interest Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:9 The philosophy of freedom has had a tough go of it, and it was hoped that the renewed interest in limited government of the past two decades would revive an interest in reconstituting the freedom philosophy into something more consistent. Those who worked for the goal of limited government power believed the rhetoric of politicians who promised smaller government. Sometimes it was just plain sloppy thinking on their part, but at other times, they fell victim to a deliberate distortion of a concise limited-government philosophy by politicians who misled many into believing that we would see a rollback on government intrusiveness. interest Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:12 The remnant’s instincts were correct, and the politicians placated them with talk of free markets, limited government, and a humble, non-nation-building foreign policy. However, little concern for civil liberties was expressed in this recent quest for less government. Yet, for an ultimate victory of achieving freedom, this must change. Interest in personal privacy and choices has generally remained outside the concern of many conservatives—especially with the great harm done by their support of the drug war. Even though some confusion has emerged over our foreign policy since the breakdown of the Soviet empire, it’s been a net benefit in getting some conservatives back on track with a less militaristic, interventionist foreign policy. Unfortunately, after 9-ll, the cause of liberty suffered a setback. As a result, millions of Americans voted for the less-than-perfect conservative revolution because they believed in the promises of the politicians. interest Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:46 It is no secret—especially after the rash of research and articles written about the neocons since our invasion of Iraq—how they gained influence and what organizations were used to promote their cause. Although for decades, they agitated for their beliefs through publications like The National Review, The Weekly Standard, The Public Interest, The Wall Street Journal , Commentary , and the New York Post , their views only gained momentum in the 1990s following the first Persian Gulf War—which still has not ended even with removal of Saddam Hussein. They became convinced that a much more militant approach to resolving all the conflicts in the Middle East was an absolute necessity, and they were determined to implement that policy. interest Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:55 Not only did Leo Strauss write favorably of Machiavelli, Michael Ledeen, a current leader of the neoconservative movement, did the same in 1999 in his book with the title, Machiavelli on Modern Leadership, and subtitled: Why Machiavelli’s iron rules are as timely and important today as five centuries ago. Ledeen is indeed an influential neocon theorist whose views get lots of attention today in Washington. His book on Machiavelli, interestingly enough, was passed out to Members of Congress attending a political strategy meeting shortly after its publication and at just about the time A Clean Break was issued. interest Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:69 It’s of interest to note that some large Christian denominations have joined the neoconservatives in promoting preemptive war, while completely ignoring the Christian doctrine of a Just War. The neocons sought and openly welcomed their support. interest Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:77 The fact that neo-conservatives ridicule those who firmly believe that U.S. interests and world peace would best be served by a policy of neutrality and avoiding foreign entanglements should not go unchallenged. Not to do so is to condone their grandiose plans for American world hegemony. interest Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:80 There’s no serious opposition to the expanding welfare state, with rapid growth of the education, agriculture and medical-care bureaucracy. Support for labor unions and protectionism are not uncommon. Civil liberties are easily sacrificed in the post 9-11 atmosphere prevailing in Washington. Privacy issues are of little concern, except for a few members of Congress. Foreign aid and internationalism—in spite of some healthy criticism of the UN and growing concerns for our national sovereignty—are championed on both sides of the aisle. Lip service is given to the free market and free trade, yet the entire economy is run by special-interest legislation favoring big business, big labor and, especially, big money. interest Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:91 We’re at the point where we need a call to arms, both here in Washington and across the country. I’m not talking about firearms. Those of us who care need to raise both arms and face our palms out and begin waving and shouting: Stop! Enough is enough! It should include liberals, conservatives and independents. We’re all getting a bum rap from politicians who are pushed by polls and controlled by special-interest money. interest Neo – CONNED ! July 10, 2003    2003 Ron Paul 73:93 Spending, borrowing and printing money cannot be the road to prosperity. It hasn’t worked in Japan, and it isn’t working here either. As a matter of fact, it’s never worked anytime throughout history. A point is always reached where government planning, spending and inflation run out of steam. Instead of these old tools reviving an economy, as they do in the early stages of economic interventionism, they eventually become the problem. Both sides of the political spectrum must one day realize that limitless government intrusion in the economy, in our personal lives and in the affairs of other nations cannot serve the best interests of America. This is not a conservative problem, nor is it a liberal problem—it’s a government intrusion problem that comes from both groups, albeit for different reasons. The problems emanate from both camps that champion different programs for different reasons. The solution will come when both groups realize that it’s not merely a single-party problem, or just a liberal or just a conservative problem. interest Amendment 6 To de-Fund The United Nations — Part 1 15 July 2003    2003 Ron Paul 75:8 So this I think in many ways reflects the ineptness of the United Nations and its inability to pursue any policy that is in our interest. So it is for this reason, whether it is rejoining UNESCO and throwing more money down another on another useless program, we here are spending a lot of money giving up our sovereignty. Much of this money should be spent here at home. interest Legislation To Prohibit The Federal Government From Imposing A “Carry Tax” 17 July 2003    2003 Ron Paul 78:1 Mr. PAUL. Mr. Speaker, I rise to protect American liberty, privacy and economic wellbeing by introducing legislation to prohibit the Federal Government from imposing a “carry tax.” A carry tax is a tax imposed on Americans that requires them to pay a tax whenever they make a bank deposit. The amount of the tax is based on how long their money has been in circulation. Hard as it may be to believe, some in the Federal Government have actually considered imposing this tax on American citizens. Since this bill punishes those who rely on cash for the majority of their economic transactions, and since lower income Americans tend to rely on cash for their economic transactions, this is a highly regressive tax plan. Furthermore, since the plan is designed to lower interest rates, it will negatively impact those who rely on investment income for a significant part of their income. Thus, the carry tax will lower the income of millions of senior citizens. interest The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:25 John Embry, the manager of last year’s best-performing North American gold fund and manager of the Royal Precious Metals Fund for the Royal Bank of Canada, says he is putting his and his clients’ money on the “lunatic fringe” in this dispute: “I’ve examined all the evidence gathered by GATA and everyone else, and I think these guys are anything but lunatics. They’ve done their homework and have unearthed a lot of interesting stuff. The problem, though, is that the market is sufficiently opaque that there is really no way to know who is right and who is wrong.” interest Bring Back Honest Money 17 July 2003    2003 Ron Paul 82:12 Repeal of legal tender laws will help restore constitutional government and protect the people’s right to a medium of exchange chosen by the market, thereby protecting their current purchasing power as well as their pensions, savings, and other promises of future payment. Because honest money serves the needs of ordinary people, instead of fiat irredeemable paper-ticket electronic money that improperly transfers the wealth of society to a small specially privileged financial elite along with other special interests, I urge my colleagues to cosponsor the Honest Money Act. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:6 Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of the special interests and their own appetite for big government. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:10 [From USA Daily, May 6, 2003] THE GREATEST THEFT IN HISTORY (By Murray Sabrin) If you have a savings account, your bank probably credits it with interest every month. At the end of the month, you expect the bank to pay you the amount of interest it was obligated to pay you — no more no less. In other words, you would not expect the bank to change the interest it was going to pay you unless your account explicitly allows the bank to readjust the interest rate at its discretion. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:11 We know the interest rate paid on shortterm “risk free” deposits are based on the “real rate” plus an inflation premium. Historically, the real rate — the rental price of money — is the annual rate that borrowers and lenders agree on is typically 2–3 percent. So if you borrow $100 for a year, you would expect to pay the lender about $103 at the end of one year. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:12 However, if price inflation is expected to be 3% for the year the loan is outstanding, the lender wants to protect his principal from the decline in the dollar’s purchasing power. So, the interest rate on the loan would thus not be just 2% (assuming this is the real rate), but 2% plus an inflation premium of 3%, for a total of 5%. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:14 The answer is simple: The Federal Reserve, the government created institution that was founded to “stabilize” the value of the dollar and “smooth” “out the business cycle”, which has the legal authority to create money out of thin air, is nothing more than the greatest manipulator of interest rates in the history of the world. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:15 The FED pumps money into the banking system if it wants to lower interest rates in order “to stimulate” the economy, and conversely will take money out of the banking system if it want to dampen borrowing and “cool off” an overheated economy. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:16 For the past two-and-a-half years the FED has been pumping money into the banking system, driving down short-term interest rates to its current levels, well below the risk free rate. In fact, the American people are being penalized heavily for saving. Real interest rates are negative. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:18 To put this in dollars and cents, there are $2.2 trillion in money market funds, with an average annual yield of 0.7%. The income from these funds is about $15 billion a year. If interest rates were 4.5%, savers would have nearly one hundred billion dollars in income or $85 billion more than they are currently receiving. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:21 The bottom line: While the economic debate in Washington DC centers around President Bush’s tax cut proposal, which should pass intact because less money in the federal government means more freedom and prosperity for the American people, the Federal Reserve continues to perpetuate the greatest theft in world history. By having the power to manipulate interest rates, the FED in effect has not only a license to print money but also can redistribute income form savers to borrowers. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:22 The winners of the FED’s interest rate manipulations include the nations’ financial institutions, business borrowers and government. The losers are anyone who wants to save for the proverbial rainy day and accumulate money for a down payment on a house or other family need. interest Abolishing The Federal Reserve 17 July 2003    2003 Ron Paul 83:24 After 90 years of manipulating interest rates, it is time to abolish the FED and return the country to the only sound monetary system that is consistent with liberty and prosperity — the gold standard. interest 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! interest Legislation To Withdraw The United States From The Bretton Woods Agreement 17 July 2003    2003 Ron Paul 84:7 In addition, the IMF violates basic constitutional and moral principles. The Federal Government has no constitutional authority to fund international institutions such as the IMF. Furthermore, Mr. Speaker, it is simply immoral to take money from hard-working Americans to support the economic schemes of politicallypowerful special interests and third-world dictators. interest UNESCO 22 July 2003    2003 Ron Paul 86:12 So I warn my colleagues about rejoining UNESCO, believing very sincerely that it is not in our interest. It costs us a lot of money. It does not represent the goals and the culture and the beliefs of Americans. We did get out because it represented us badly, and here we are about to get back into UNESCO. I urge support for my amendment. interest Stay out of Liberia! 24 July 2003    2003 Ron Paul 90:2 We all recognize the tragedy in Liberia. A civil war has raged there for the past 14 years, leaving thousands dead and a million without homes. Horrific stories of atrocities abound. We wish for peace and a resolution to the conflict. But we must recognize that this resolution should come through regional West African efforts. These are the countries involved and affected; these are the countries with the most incentive to resolve the problem. Simply stated, there is no US national security interest at stake in the conflict - no matter how widely “national interest” is defined. interest Stay out of Liberia! 24 July 2003    2003 Ron Paul 90:5 Mr. Speaker, there is no US interest in the conflict and US military involvement could well lead to resentment and more violence against US troops, as we saw in Somalia. We must ponder this possibility before yet again putting our men and women in uniform in harm’s way. interest H.R. 2427, the Pharmaceutical Market Access Act 24 July 2003    2003 Ron Paul 91:12 Today, Americans enjoy access to many imported goods which are subject to price controls, and even receive government subsidies, in their countries of origin. Interestingly, some people support liberalized trade with Communist China, which is hardly a free economy, while opposing H.R. 2427! American policy has always been based on the principle that our economy is strengthened by free trade even when our trading partners engage in such market distorting policies as price controls and industrial subsidies. There is no good reason why pharmaceuticals should be an exception to the rule. interest H.R. 2427, the Pharmaceutical Market Access Act 24 July 2003    2003 Ron Paul 91:13 Finally, Mr. Speaker, I wish to express my disappointment with the numerous D.C.-based “free-market” organizations that are opposing this bill. Anyone following this debate could be excused for thinking they have entered into a Twilight Zone episode where “libertarian” policy wonks argue that the Federal Government must protect citizens from purchasing the pharmaceuticals of their choice, endorse protectionism, and argue that the Federal Government has a moral duty to fashion policies designed to protect the pharmaceutical companies’ profit margins. I do not wish to speculate on the motivation behind this deviation from free-market principles among groups that normally uphold the principles of liberty. However, I do hope the vehemence with which these organizations are attacking this bill is motivated by sincere, if misguided, principle, and not by the large donations these organizations have received from the pharmaceutical industry. If the latter is the case, then these groups have discredited themselves by suggesting that their free-market principles can be compromised when it serves the interests of their corporate donors. interest H.R. 2427, the Pharmaceutical Market Access Act 24 July 2003    2003 Ron Paul 91:14 In conclusion, Mr. Speaker, I once again urge my colleagues to show that they are serious about lowering the prices of prescription drugs and that they trust the people to do what is in their best interests by supporting H.R. 2427, the Pharmaceutical Market Access Act. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:3 The Founders of this country, and a large majority of the American people up until the 1930s, disdained paper money, respected commodity money, and disapproved of a central bank’s monopoly control of money creation and interest rates. Ironically, it was the abuse of the gold standard, the Fed’s credit-creating habits of the 1920s, and its subsequent mischief in the 1930s, that not only gave us the Great Depression, but also prolonged it. Yet sound money was blamed for all the suffering. That’s why people hardly objected when Roosevelt and his statist friends confiscated gold and radically debased the currency, ushering in the age of worldwide fiat currencies with which the international economy struggles today. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:5 But this human trait of seeking wealth and comfort with the least amount of effort is often abused. It leads some to believe that by certain monetary manipulations, wealth can be made more available to everyone. Those who believe in fiat money often believe wealth can be increased without a commensurate amount of hard work and innovation. They also come to believe that savings and market control of interest rates are not only unnecessary, but actually hinder a productive growing economy. Concern for liberty is replaced by the illusion that material benefits can be more easily obtained with fiat money than through hard work and ingenuity. The perceived benefits soon become of greater concern for society than the preservation of liberty. This does not mean proponents of fiat money embark on a crusade to promote tyranny, though that is what it leads to, but rather they hope they have found the philosopher’s stone and a modern alternative to the challenge of turning lead into gold. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:12 Money is a moral, economic, and political issue. Since the monetary unit measures every economic transaction, from wages to prices, taxes, and interest rates, it is vitally important that its value is honestly established in the marketplace without bankers, government, politicians, or the Federal Reserve manipulating its value to serve special interests. Money As a Moral Issue interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:17 Fiat money is also immoral because it allows government to finance special interest legislation that otherwise would have to be paid for by direct taxation or by productive enterprise. This transfer of wealth occurs without directly taking the money out of someone’s pocket. Every dollar created dilutes the value of existing dollars in circulation. Those individuals who worked hard, paid their taxes, and saved some money for a rainy day are hit the hardest, with their dollars being depreciated in value while earning interest that is kept artificially low by the Federal Reserve easy-credit policy. The easy credit helps investors and consumers who have no qualms about going into debt and even declaring bankruptcy. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:20 Although the money issue today is of little political interest to the parties and politicians, it should not be ignored. Policy makers must contend with the consequences of the business cycle, which result from the fiat monetary system under which we operate. They may not understand the connection now, but eventually they must. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:31 We do hear some talk about monetary policy and criticism directed toward the Federal Reserve, but it falls far short of what I’m talking about. Big-spending welfarists constantly complain about Fed policy, usually demanding lower interest rates even when rates are at historic lows. Big-government conservatives promoting grand worldwide military operations, while arguing that “deficits don’t matter” as long as marginal tax rates are lowered, also constantly criticize the Fed for high interest rates and lack of liquidity. Coming from both the left and the right, these demands would not occur if money could not be created out of thin air at will. Both sides are asking for the same thing from the Fed for different reasons. They want the printing presses to run faster and create more credit, so that the economy will be healed like magic- or so they believe. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:32 This is not the kind of interest in the Fed that we need. I’m anticipating that we should and one day will be forced to deal with the definition of the dollar and what money should consist of. The current superficial discussion about money merely shows a desire to tinker with the current system in hopes of improving the deteriorating economy. There will be a point, though, when the tinkering will no longer be of any benefit and even the best advice will be of no value. We have just gone through two-and-a-half years of tinkering with 13 rate cuts, and recovery has not yet been achieved. It’s just possible that we’re much closer than anyone realizes to that day when it will become absolutely necessary to deal with the monetary issue- both philosophically and strategically- and forget about the band-aid approach to the current system. Money as an Economic Issue interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:35 There are also many conservatives who do not endorse central economic planning as those on the left do, but nevertheless concede this authority to the Federal Reserve to manipulate the economy through monetary policy. Only a small group of constitutionalists, libertarians, and Austrian free-market economists reject the notion that central planning, through interest-rate and money-supply manipulation, is a productive endeavor. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:38 Nations that live beyond their means must always pay for their extravagance. It’s easy to understand why future generations inherit a burden when the national debt piles up. This requires others to pay the interest and debts when they come due. The victims are never the recipients of the borrowed funds. But this is not exactly what happens when a country pays off its debt. The debt, in nominal terms, always goes up, and since it is still accepted by mainstream economists that just borrowing endlessly is not the road to permanent prosperity, real debt must be reduced. Depreciating the value of the dollar does that. If the dollar loses 10% of its value, the national debt of $6.5 trillion is reduced in real terms by $650 billion dollars. That’s a pretty neat trick and quite helpful- to the government. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:40 But where’s the hitch? This process, which seems to be a creative way of paying off debt, eventually undermines the capitalist structure of the economy, thus making it difficult to produce wealth, and that’s when the whole process comes to an end. This system causes many economic problems, but most of them stem from the Fed’s interference with the market rate of interest that it achieves through credit creation and printing money. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:42 Though generally accepted by most modern economists and politicians, there is little hesitancy in accepting the omnipotent wisdom of the Federal Reserve to know the “price” of money – the interest rate – and its proper supply. For decades, and especially during the 1990s – when Chairman Greenspan was held in such high esteem, and no one dared question his judgment or the wisdom of the system- this process was allowed to run unimpeded by political or market restraints. Just as we must eventually pay for our perpetual deficits, continuous manipulation of interest and credit will also extract a payment. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:43 Artificially low interest rates deceive investors into believing that rates are low because savings are high and represent funds not spent on consumption. When the Fed creates bank deposits out of thin air making loans available at below-market rates, mal-investment and overcapacity results, setting the stage for the next recession or depression. The easy credit policy is welcomed by many: stock-market investors, home builders, home buyers, congressional spendthrifts, bankers, and many other consumers who enjoy borrowing at low rates and not worrying about repayment. However, perpetual good times cannot come from a printing press or easy credit created by a Federal Reserve computer. The piper will demand payment, and the downturn in the business cycle will see to it. The downturn is locked into place by the artificial boom that everyone enjoys, despite the dreams that we have ushered in a “new economic era.” Let there be no doubt: the business cycle, the stagflation, the recessions, the depressions, and the inflations are not a result of capitalism and sound money, but rather are a direct result of paper money and a central bank that is incapable of managing it. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:44 Our current monetary system makes it tempting for all parties, individuals, corporations, and government to go into debt. It encourages consumption over investment and production. Incentives to save are diminished by the Fed’s making new credit available to everyone and keeping interest rates on saving so low that few find it advisable to save for a rainy day. This is made worse by taxing interest earned on savings. It plays havoc with those who do save and want to live off their interest. The artificial rates may be 4, 5, or even 6% below the market rate, and the savers- many who are elderly and on fixed incomes- suffer unfairly at the hands of Alan Greenspan, who believes that resorting to money creation will solve our problems and give us perpetual prosperity. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:45 Lowering interest rates at times, especially early in the stages of monetary debasement, will produce the desired effects and stimulate another boom-bust cycle. But eventually the distortions and imbalances between consumption and production, and the excessive debt, prevent the monetary stimulus from doing very much to boost the economy. Just look at what’s been happening in Japan for the last 12 years. When conditions get bad enough the only recourse will be to have major monetary reform to restore confidence in the system. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:46 The two conditions that result from fiat money that are more likely to concern the people are inflation of prices and unemployment. Unfortunately, few realize these problems are directly related to our monetary system. Instead of demanding reforms, the chorus from both the right and left is for the Fed to do more of the same- only faster. If our problem stems from easy credit and interest-rate manipulation by the Fed, demanding more will not do much to help. Sadly, it will only make our problems worse. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:49 A paper monetary standard means there are no restraints on the printing press or on federal deficits. In 1971, M3 was $776 billion; today it stands at $8.9 trillion, an 1100% increase. Our national debt in 1971 was $408 billion; today it stands at $6.8 trillion, a 1600% increase. Since that time, our dollar has lost almost 80% of its purchasing power. Common sense tells us that this process is not sustainable and something has to give. So far, no one in Washington seems interested. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:55 Once this process starts, interest rates will rise. And in recent weeks, despite the frenetic effort of the Fed to keep interest rates low, they are actually rising instead. The official explanation is that this is due to an economic rebound with an increase in demand for loans. Yet a decrease in demand for our debt and reluctance to hold our dollars is a more likely cause. Only time will tell whether the economy rebounds to any significant degree, but one must be aware that rising interest rates and serious price inflation can also reflect a weak dollar and a weak economy. The stagflation of the 1970s baffled many conventional economists, but not the Austrian economists. Many other countries have in the past suffered from the extremes of inflation in an inflationary depression, and we are not immune from that happening here. Our monetary and fiscal policies are actually conducive to such a scenario. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:56 In the short run, the current system gives us a free ride, our paper buys cheap goods from overseas, and foreigners risk all by financing our extravagance. But in the long run, we will surely pay for living beyond our means. Debt will be paid for one way or another. An inflated currency always comes back to haunt those who enjoyed the “benefits” of inflation. Although this process is extremely dangerous, many economists and politicians do not see it as a currency problem and are only too willing to find a villain to attack. Surprisingly the villain is often the foreigner who foolishly takes our paper for useful goods and accommodates us by loaning the proceeds back to us. It’s true that the system encourages exportation of jobs as we buy more and more foreign goods. But nobody understands the Fed role in this, so the cries go out to punish the competition with tariffs. Protectionism is a predictable consequence of paper- money inflation, just as is the impoverishment of an entire middle class. It should surprise no one that even in the boom phase of the 1990s, there were still many people who became poorer. Yet all we hear are calls for more government mischief to correct the problems with tariffs, increased welfare for the poor, increased unemployment benefits, deficit spending, and special interest tax reduction, none of which can solve the problems ingrained in a system that operates with paper money and a central bank. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:60 Liberals foolishly believe that they can control the process and curtail the benefits going to corporations and banks by increasing the spending for welfare for the poor. But this never happens. Powerful financial special interests control the government spending process and throw only crumbs to the poor. The fallacy with this approach is that the advocates fail to see the harm done to the poor, with cost of living increases and job losses that are a natural consequence of monetary debasement. Therefore, even more liberal control over the spending process can never compensate for the great harm done to the economy and the poor by the Federal Reserve’s effort to manage an unmanageable fiat monetary system. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:61 Economic intervention, financed by inflation, is high-stakes government. It provides the incentive for the big money to “invest” in gaining government control. The big money comes from those who have it- corporations and banking interests. That’s why literally billions of dollars are spent on elections and lobbying. The only way to restore equity is to change the primary function of government from economic planning and militarism to protecting liberty. Without money, the poor and middle class are disenfranchised since access for the most part requires money. Obviously, this is not a partisan issue since both major parties are controlled by wealthy special interests. Only the rhetoric is different. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:63 Paper money encourages speculation, excessive debt, and misdirected investments. The market, however, always moves in the direction of eliminating bad investments, liquidating debt, and reducing speculative excesses. What we have seen, especially since the stock market peak of early 2000, is a knock-down, drag-out battle between the Fed’s effort to avoid a recession, limit the recession, and stimulate growth with its only tool, money creation, while the market demands the elimination of bad investments and excess debt. The Fed was also motivated to save the stock market from collapsing, which in some ways they have been able to do. The market, in contrast, will insist on liquidation of unsustainable debt, removal of investment mistakes made over several decades, and a dramatic revaluation of the stock market. In this go-around, the Fed has pulled out all the stops and is more determined than ever, yet the market is saying that new and healthy growth cannot occur until a major cleansing of the system occurs. Does anyone think that tariffs and interest rates of 1% will encourage the rebuilding of our steel and textile industries anytime soon? Obviously, something more is needed. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:64 The world central bankers are concerned with the lack of response to low interest rates and they have joined in a concerted effort to rescue the world economy through a policy of protecting the dollar’s role in the world economy, denying that inflation exists, and justifying unlimited expansion of the dollar money supply. To maintain confidence in the dollar, gold prices must be held in check. In the 1960s our government didn’t want a vote of no confidence in the dollar, and for a couple of decades, the price of gold was artificially held at $35 per ounce. That, of course, did not last. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:70 An interesting headline appeared in the New York Times on July 31, 2003, “Commodity Costs Soar, But Factories Don’t Bustle.” What is observed here is a sea change in attitude by investors shifting their investment funds and speculation into things of real value and out of financial areas, such as stocks and bonds. This shift shows that in spite of the most aggressive Fed policy in history in the past three years, the economy remains sluggish and interest rates are actually rising. What can the Fed do? If this trend continues, there’s little they can do. Not only do I believe this trend will continue, I believe it’s likely to accelerate. This policy plays havoc with our economy; reduces revenues, prompts increases in federal spending, increases in deficits and debt occur, and interest costs rise, compounding our budgetary woes. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:71 The set of circumstances we face today are unique and quite different from all the other recessions the Federal Reserve has had to deal with. Generally, interest rates are raised to slow the economy and dampen price inflation. At the bottom of the cycle interest rates are lowered to stimulate the economy. But this time around, the recession came in spite of huge and significant interest rate reductions by the Fed. This aggressive policy did not prevent the recession as was hoped; so far it has not produced the desired recovery. Now we’re at the bottom of the cycle and interest rates not only can’t be lowered, they are rising. This is a unique and dangerous combination of events. This set of circumstances can only occur with fiat money and indicates that further manipulation of the money supply and interest rates by the Fed will have little if any effect. interest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:83 It’s no coincidence that during the period following the establishment of the Federal Reserve and the elimination of the gold standard, a huge growth in the size of the federal government and its debt occurred. Believers in big government, whether on the left or right, vociferously reject the constraints on government growth that gold demands. Liberty is virtually impossible to protect when the people allow their government to print money at will. Inevitably, the left will demand more economic interventionism, the right more militarism and empire building. Both sides, either inadvertently or deliberately, will foster corporatism. Those whose greatest interest is in liberty and self-reliance are lost in the shuffle. Though left and right have different goals and serve different special-interest groups, they are only too willing to compromise and support each other’s programs. interest Statement Opposing the Continuity of Government Proposal September 9, 2003    2003 Ron Paul 94:3 Even with the direct election of Senators, the fact that members of the House are elected every two years while Senators run for statewide office every six years, means that members of the House of Representatives are still more accountable to the people than any other part of the federal government. Appointed members of Congress simply cannot be truly representative. Turning once again to Federalist 52, we find this point eloquently made by Mssrs. Madison and Hamilton: “As it is essential to liberty that the government in general should have a common interest with the people, so it is particularly essential that the branch of it under consideration should have an immediate dependence on, and an intimate sympathy with, the people. Frequent elections are unquestionably the only policy by which this dependence and sympathy can be effectually secured.” interest Statement Opposing the Continuity of Government Proposal September 9, 2003    2003 Ron Paul 94:9 I have no doubt that the people of the states are quite competent to hold elections in a timely fashion. After all, it is in each state’s interest to ensure it has adequate elected representation in Washington as soon as possible. The re-call election in California shows it is possible to have a gubernatorial election, in the most populous state in the union no less, in less than three months time. Surely it is possible to hold an election in a congressional district in under that amount of time. interest Introduction Of The Steel Financing Fairness Act 10 September 2003    2003 Ron Paul 97:7 Ironically, many of the supporters of these foreign giveaways claim to be promoters of free trade. This claim makes as much sense as a supporter of higher taxes and spending claiming to be a fiscally conservative supporter of limited government. Free trade is the peaceful exchange of goods and services across borders unhampered by government interference. Taxing American workers to support their overseas competitors is not free trade. Instead, it is corporatism designed to benefit certain politically powerful interests at the expense of American entrepreneurs and workers. interest Tribute To Larry Reed 25 september 2003    2003 Ron Paul 102:6 Mr. Speaker, the great economist Ludwig Von Mises once said that “everyone. . . . must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interests of everyone hang on the result. Whether he chooses or not, every man is drawn into the great historic struggle, the decisive battle into which our epoch has plunged.” Few have so vigorously thrust themselves into the intellectual and policy battle on the side of freedom as Larry Reed. It is therefore my privilege to pay tribute to this champion of liberty on his 50th birthday. interest Commending The National Endowment For Democracy For Contributions To democratic Development Around The World On The 20th Anniversary Of Its Establishment 7 October 2003    2003 Ron Paul 105:3 “NED, which also has a history of corruption and financial mismanagement, is superfluous at best and often destructive. Through the endowment, the American taxpayer has paid for special-interest groups to harass the duly elected governments of friendly countries, interfere in foreign elections, and foster the corruption of democratic movements . . . interest Commending The National Endowment For Democracy For Contributions To democratic Development Around The World On The 20th Anniversary Of Its Establishment 7 October 2003    2003 Ron Paul 105:12 In Slovakia, NED funded several initiatives aimed at defeating the freely-elected government of Prime Minister Vladimir Meciar, who, interestingly, had been persecuted by the previous Communist regime. After the election, an IRI newsletter boasted that “IRI polls changed the nature of the campaign,” adding that IRI efforts secured “a victory for reformers in Slovakia.” What the IRI does not say is that many of these “reformers” had been leading members of the former Communist regime of then-Czechoslovakia. Is this democracy? interest Statement Opposing Trade Sanctions against Syria October 15, 2003    2003 Ron Paul 106:9 That is the problem with this approach. Imposing sanctions and cutting off relations with a country is ineffective and counterproductive. It is only one-half step short of war and very often leads to war. This bill may well even completely eliminate any trade between the two countries. It will almost completely shut the door on diplomatic relations. It sends a strong message to Syria and the Syrian people: that we no longer wish to engage you. This cannot be in our best interest. interest Defense Production Reauthorization Act 15 October 2003    2003 Ron Paul 107:2 Under this bill, the President is given authority to void private contracts in order to ensure that federal defense priorities, as determined by the executive, are met. The only limitation on the President’s judgment is a requirement that he submits a series of “findings” to Congress. The Executive also has what appears to be unchecked authority to use financial incentives such as loan guarantees, direct loans, and purchase guarantees to ensure production of items he determines are in the national interest. interest Defense Production Reauthorization Act 15 October 2003    2003 Ron Paul 107:5 I am also concerned that this bill violates the Fifth Amendment’s takings clause. In particular, DPA allows the government to seize private property by interfering with the performance of private contracts in order to give priority to military production. This action reduces the value of the affected parties’ proprietary interests, and thus is a taking, requiring the government to provide just compensation to the affected party. The Fifth Amendment intends to assure that the government does not unfairly burden one group of citizens in carrying out its constitutional functions. By not providing for just compensation, DPA allows the executive to unfairly burden one group of citizens for costs that the Constitution requires be shared among the entire population. interest Supplemental Appropriation 16 October 2003    2003 Ron Paul 108:3 But I understand this is called a supplemental. It is interesting that it is a supplemental because we have not passed a budget; so I have to suggest maybe we ought to call this a preemptive budget rather than a supplemental. But it is the largest, and to have it before the regular budget is pretty astounding that we are going to spend this type of money. interest Misguided Policy Of Nation Building In Iraq 17 October 2003    2003 Ron Paul 111:31 James Madison early on in 1798 gave us some advice about the Presidential power and congressional power to go to war, but he was explaining why it was important to keep it in the hands of the legislative body. He says, The Constitution supposes what the history of all governments demonstrate, that the executive is the branch of power most interested in war and the most prone to it. It has accordingly with studied care vested the question of war in the legislature. interest Misguided Policy Of Nation Building In Iraq 17 October 2003    2003 Ron Paul 111:56 Further reading on from the Coalition for a Realistic Foreign Policy: “The defenders of empire assert that the horrific acts of terrorism on September 11 demand that we assume new financial burdens to fund an expensive national security strategy, relax our commitment to individual liberty at home, and discard our respect for stated sovereignty abroad. Nothing could be further from the truth. Following 9– 11, we should have refocused our attention on the very threats facing us in the 21st century. As a nation, we must not allow the events of 9–11 to be used as a pretext for reshaping American foreign policy in a manner inconsistent with our traditions and values and contrary to our interests.” interest Expressing Gratitude To Members Of The U.S. Armed Forces Deployed In Operation Restore Hope In Somalia In 1993 28 October 2003    2003 Ron Paul 114:2 Mr. Speaker, while I do want to join those praising members of our armed forces, I must point out that legislation like H. Con. Res. 291 is dishonest and actually disrespectful to our military. It is obvious that praising the soldiers is only one small part of this legislation. Under cover of this praise is an attempt to re-write history and to praise a foreign policy that sends our military into useless and meaningless battle zones, like Somalia, where they are asked to fight and die for a cause completely unrelated to the US national interest. It is shameful for legislators to wrap themselves in the sacrifice of our troops in praise of a policy that does not serve the United States and ends up getting these same troops killed and maimed. interest Encouraging People’s Republic Of China To Fulfill Commitments Under International Trade Agreements, Support United States Manufacturing Sector, And Establish Monetary And Financial Market Reforms 29 october 2003    2003 Ron Paul 115:2 However, instead of debating America’s monetary policy, we are debating China’s monetary policy. Specifically, the goal of this resolution is to pressure China to change the valuation of its currency. Whatever short-term benefit our manufacturers may gain from this action, the policies urged today are not in the long-term interest of the American people. interest Encouraging People’s Republic Of China To Fulfill Commitments Under International Trade Agreements, Support United States Manufacturing Sector, And Establish Monetary And Financial Market Reforms 29 october 2003    2003 Ron Paul 115:3 In arguing for fluctuating rates, the backers of H. Res. 414 are demanding that the Chinese Government adopt an irrational policy. A sound economy requires a sound and dependable unit of economic measurement. Yet, by definition, under fluctuating rates the currency, which serves as the basic unit of economic measurement, will not be sound and dependable. Instead, that value will change depending on the whims of politicians and the perceived economic needs of politically powerful special interests. interest Encouraging People’s Republic Of China To Fulfill Commitments Under International Trade Agreements, Support United States Manufacturing Sector, And Establish Monetary And Financial Market Reforms 29 october 2003    2003 Ron Paul 115:9 H. Res. 414’s underlying premise is that sovereign countries have a duty to fashion economic policies that benefit the United States and it is a proper concern of Congress if these countries fail to do so. H. Res. 414 attempts to justify Congressional interference in the internal economic affairs of China by claiming that China is not living up to its obligations as a member of the World Trade Organization (WTO). I would remind my colleagues that the WTO has oftentimes ruled against the United States and Congress is right now changing United States tax laws to please the WTO. Ceding control over United States tax and trade policy to this international organization violates the United States Constitution and is contrary to the interests of American citizens. Therefore, it is not wise to endorse the WTO process by encouraging other countries to submit to WTO control. interest Say No To Involuntary Servitude November 21, 2003    2003 Ron Paul 122:10 Unpopular wars invite conscription. Volunteers disappear, as well they should. A truly defensive just war prompts popular support. A conscripted, unhappy soldier is better off on the long run than the slaves of old since the “enslavement” is only temporary. But in the short run the draft may well turn out to be more deadly and degrading, as one is forced to commit life and limb to a less than worthy cause – like teaching democracy to unwilling and angry Arabs. Slaves were safer in that their owners had an economic interest in protecting their lives. Endangering the lives of our soldiers is acceptable policy, and that’s why they are needed. Too often, though, our men and women who are exposed to the hostilities of war and welcomed initially are easily forgotten after the fighting ends. Soon afterward, the injured and the sick are ignored and forgotten. interest Whose Peace? December 8, 2003    2003 Ron Paul 123:4 That is why plans like this should be of such interest. Initially conceived by an obscure Swiss professor, the project was joined by former Israeli Justice Minister Yossi Beilin, former Palestinian Authority Information Minister Yasser Abed Rabbo, and by other prominent individuals like former president Jimmy Carter. The negotiations led to the creation of a 50 page detailed accord. interest Whose Peace? December 8, 2003    2003 Ron Paul 123:5 I do not know whether the product is perfect. I have not studied the minute details of the proposal. But what I do know is that politicians, governments, and special interests promote war at the expense of those who have to fight them. Wars end when the victims finally demand peace. And that is what we are beginning to see. According to one recent survey, a majority among both the Israeli and Palestinian population support this new initiative. That is encouraging. interest Whose Peace? December 8, 2003    2003 Ron Paul 123:6 To his credit, President Bush has demonstrated an open mind toward this alternative approach. He declared the Geneva Initiative “productive,” and added that the United States “appreciates people discussing peace.” Secretary of State Colin Powell echoed the president when he resisted hard-line pressure to ignore the proposed accord, stating, “I have an obligation to listen to individuals who have interesting ideas.” This is also encouraging. interest Whose Peace? December 8, 2003    2003 Ron Paul 123:7 Predictably, though, this new approach is not as welcomed by those-- governments, politicians, and special interests-- who have a stake in dragging out the process indefinitely. Palestinian Authority President Yasser Arafat has been lukewarm at best. Extremist Arab organizations that have a special interest in continuing the violence have also rejected the Geneva Initiative. Israeli Prime Minister Ariel Sharon has rejected the Initiative out of hand. Said Mr. Sharon: “Geneva is an attempt to do something only a government can do.” interest A Wise Consistency February 11, 2004    2004 Ron Paul 2:4 It’s quite a distortion of Emerson’s views to use them as justification for the incoherent and nonsensical policies coming out of Washington today. But, the political benefits of not needing to be consistent are so overwhelming that there’s no interest in being philosophically consistent in one’s votes. It is a welcome convenience to be able to support whatever seems best for the moment, the congressional district, or one’s political party. Therefore, it’s quite advantageous to cling to the notion that consistency is a hobgoblin. For this reason, statesmanship in D.C. has come to mean one’s willingness to give up one’s own personal beliefs in order to serve the greater good — whatever that is. But it is not possible to preserve the rule of law or individual liberty if our convictions are no stronger than this. Otherwise something will replace our republic that was so carefully designed by the Founders. That something is not known, but we can be certain it will be less desirable than what we have. interest A Wise Consistency February 11, 2004    2004 Ron Paul 2:10 Free Trade Fraud—Neo-mercantilism : Virtually all economists are for free trade. Even the politicians express such support. However, many quickly add, “Yes, but it should be fair.” That is, free trade is fine unless it appears to hurt someone. Then a little protectionism is warranted, for fairness sake. Others who claim allegiance to free trade are only too eager to devalue their own currencies, which harms a different group of citizens — like importers and savers — in competitive devaluations in hopes of gaining a competitive edge. Many so-called free-trade proponents are champions of international agreements that undermine national sovereignty and do little more than create an international bureaucracy to manage tariffs and sanctions. Organizations like NAFTA, WTO, and the coming FTAA are more likely to benefit the powerful special interests than to enhance true free trade. Nothing is said, however, about how a universal commodity monetary standard would facilitate trade, nor is it mentioned how unilaterally lowering tariffs can benefit a nation. Even bilateral agreements are ignored when our trade problems are used as an excuse to promote dangerous internationalism. interest A Wise Consistency February 11, 2004    2004 Ron Paul 2:13 Paper Money, Inflation, and Economic Pain : Paper money and inflation have never provided long-term economic growth, nor have they enhanced freedom. Yet the world, led by the United States, lives with a financial system awash with fiat currencies and historic debt as a consequence. No matter how serious the problems that come from central-bank monetary inflations — the depressions and inflation, unemployment, social chaos, and war — the only answer has been to inflate even more. Except for the Austrian free-market economists, the consensus is that the Great Depression was prolonged and exacerbated by the lack of monetary inflation. This view is held by Alan Greenspan, and reflected in his January 2001 response to the stock market slump and a slower economy — namely a record monetary stimulus and historically low interest rates. The unwillingness to blame the slumps on the Federal Reserve’s previous errors, though the evidence is clear, guarantees that greater problems for the United States and the world economy lie ahead. Though there is adequate information to understand the real cause of the business cycle, the truth and proper policy are not palatable. Closing down the engine of inflation at any point does cause short-term problems that are politically unacceptable. But the alternative is worse, in the long term. It is not unlike a drug addict demanding and getting a fix in order to avoid the withdrawal symptoms. Not getting rid of the addiction is a deadly mistake. While resorting to continued monetary stimulus through credit creation delays the pain and suffering, it inevitably makes the problems much worse. Debt continues to build in all areas — personal, business, and government. Inflated stock prices are propped up, waiting for another collapse. Mal-investment and overcapacity fail to correct. Insolvency proliferates without liquidation. These same errors have been prolonging the correction in Japan for 14 years, with billions of dollars of non-performing loans still on the books. Failure to admit and recognize that fiat money, mismanaged by central banks, gives us most of our economic problems, along with a greater likelihood for war, means we never learn from our mistakes. Our consistent response is to inflate faster and borrow more, which each downturn requires, to keep the economy afloat. Talk about a foolish consistency! It’s time for our leaders to admit the error of their ways, consider the wise consistency of following the advice of our Founders, and reject paper money and central bank inflationary policies. interest A Wise Consistency February 11, 2004    2004 Ron Paul 2:17 Foreign Policy of Interventionism—General : Our foreign policy of interventionism offers the best example of Emerson’s foolish inconsistency. No matter how unsuccessful our entanglements become, our leaders rarely question the wisdom of trying to police the world. Most of the time our failures prompt even greater intervention, rather than less. Never yielding to the hard cold facts of our failures, our drive to meddle and nation-build around the world continues. Complete denial of the recurrent blowback from our meddling — a term our CIA invented — prompts us to spend endlessly while jeopardizing the lives of hundreds of thousands of people. Refusing even to consider the failure of our own policies is outrageous. Only in the context of commercial benefits to the special interests and the military- industrial complex, molded with patriotic jingoism, can one understand why we pursue such a foolish policy. Some of these ulterior motives are understandable, but the fact that average Americans rarely question our commitment to these dangerous and expensive military operations is disturbing. The whipped up war propaganda too often overrules the logic that should prevail. Certainly the wise consistency of following the Constitution has little appeal. One would think the painful consequences of our militarism over the last hundred years would have made us more reluctant to assume the role of world policeman in a world that hates us more each day. interest A Wise Consistency February 11, 2004    2004 Ron Paul 2:21 This makes the point that our persistence in imposing our will on others through military force ignores sound thinking, but we never hear serious discussions about changing our foreign policy of meddling and empire building, no matter how bad the results. Regardless of the human and financial costs for all the wars fought over the past hundred years, few question the principle and legitimacy of interventionism. Bad results, while only sowing the seeds of our next conflict, concern few here in Congress. Jingoism, the dream of empire, and the interests of the military-industrial complex generate the false patriotism that energizes supporters of our foreign entanglements. Direct media coverage of the more than 500 body bags coming back from Iraq is now prohibited by the administration. Seeing the mangled lives and damaged health of thousands of other casualties of this war would help the American people put this war in proper perspective. Almost all war is unnecessary and rarely worth the cost. Seldom does a good peace result. Since World War II, we have intervened 35 times in developing countries, according to the LA Times, without a single successful example of a stable democracy. Their conclusion: “American engagement abroad has not led to more freedom or more democracy in countries where we’ve become involved.” So far, the peace in Iraq — that is, the period following the declared end of hostilities — has set the stage for a civil war in this forlorn Western-created artificial state. A U.S.- imposed national government unifying the Kurds, the Sunnis, and the Shiites will never work. Our allies deserted us in this misadventure. Dumping the responsibility on the UN, while retaining control of the spoils of war, is a policy of folly that can result only in more Americans being killed. This will only fuel the festering wounds of Middle East hatred toward all Western occupiers. The Halliburton scandals and other military-industrial connections to the occupation of Iraq will continue to annoy our allies, and hopefully a growing number of American taxpayers. interest Federal War On Drugs Threatens The Effective Treatment Of Chronic Pain 11 February 2004    2004 Ron Paul 4:4 Furthering the problem is that patients often must consume very large amounts of opioids to obtain long-term relief. Some prescriptions may be for hundreds of pills and last only a month. A prescription this large may appear suspicious. But, according to many pain management specialists, it is medically necessary, in many cases, to prescribe such a large number of pills to effectively treat chronic pain. However, zealous prosecutors show no interest in learning the basic facts of pain management. interest Federal War On Drugs Threatens The Effective Treatment Of Chronic Pain 11 February 2004    2004 Ron Paul 4:11 Mr. Speaker, Congress should take action to rein in overzealous prosecutors and law enforcement officials and stop the harassment of legitimate pain management physicians, who are acting in good faith in prescribing opioids for relief from chronic pain. Doctors should not be prosecuted for doing what, in their best medical judgment, is in their patients’ best interest. Doctors should also not be prosecuted for the misdeeds of their patients. Finally, I wish to express my hope that Mr. Limbaugh’s case will encourage his many fans and supporters to consider how their support for the federal War on Drugs is inconsistent with their support of individual liberty and Constitutional government. interest Rush Limbaugh and the Sick Federal War on Pain Relief February 12, 2004    2004 Ron Paul 5:4 Unfortunately, patients often must consume very large amounts of opioids to obtain long-term relief. Some prescriptions may be for hundreds of pills and last only a month. A prescription this large may appear suspicious. But according to many pain management specialists, it is medically necessary in many cases to prescribe a large number of pills to effectively treat chronic pain. However, zealous prosecutors show no interest in learning the basic facts of pain management. interest Rush Limbaugh and the Sick Federal War on Pain Relief February 12, 2004    2004 Ron Paul 5:11 Mr. Speaker, Congress should take action to rein in overzealous prosecutors and law enforcement officials, and stop the harassment of legitimate physicians who act in good faith when prescribing opioids for relief from chronic pain. Doctors should not be prosecuted for using their best medical judgment to act in their patients’ best interests. Doctors also should not be prosecuted for the misdeeds of their patients. interest An Indecent Attack on the First Amendment March 10, 2004    2004 Ron Paul 14:7 Just one year ago we saw a coalition of both left and right push through the radical Campaign Finance Reform Act, which strictly curtails the rights all Americans to speak out against particular candidates at the time of elections. Amazingly, this usurpation by Congress was upheld by the Supreme Court, which showed no concern for the restrictions on political speech during political campaigns. Instead of admitting that money and corruption in government is not a consequence of too much freedom of expression, but rather a result of government acting outside the bounds of the Constitution, this new law addressed a symptom rather than the cause of special interest control of our legislative process. interest An Indecent Attack on the First Amendment March 10, 2004    2004 Ron Paul 14:18 - Arguing that campaign finance reform is needed to hold down government corruption by the special interests; interest Federalizing Tort Law 10 March 2004    2004 Ron Paul 15:5 Finally, Mr. Chairman, I would remind the food industry that using unconstitutional federal powers to restrict state lawsuits makes it more likely those same powers will be used to impose additional federal control over the food industry. Despite these lawsuits, the number one threat to business remains a federal government freed of its Constitutional restraints. After all, the federal government imposes numerous taxes and regulations on the food industry, often using the same phony “pro-consumer” justifications used by the trial lawyers. Furthermore, while small businesses, such as fast-food franchises, can move to another state to escape flawed state tax, regulatory, or legal policies, they cannot as easily escape destructive federal regulations. Unconstitutional expansions of federal power, no matter how just the cause may seem, are not in the interests of the food industry or of lovers of liberty. interest Federalizing Tort Law 10 March 2004    2004 Ron Paul 15:6 In conclusion, while I share the concern over the lawsuits against the food industry that inspired H.R. 339, this bill continues the disturbing trend of federalizing tort law. Enhancing the power of the federal government is in no way in the long-term interests of defenders of the free market and Constitutional liberties. Therefore, I must oppose this bill. interest Oppose a Flawed Policy of Preemptive War March 17, 2004    2004 Ron Paul 18:4 Rather than bragging about victory, we should recognize that the war raging on between the Muslim East and the Christian West has intensified and spread, leaving our allies and our own people less safe. Denying we have an interest in oil, and denying that occupying an Islamic country is an affront to the sensitivities of most Arabs and Muslims, is foolhardy. interest Opposing H.R. 557 17 March 2004    2004 Ron Paul 19:3 Denying that we are interested in oil and that occupying an Islamic country is not an affront to the sensitivities of most Arabs and Muslims is foolhardy. Reasserting U.N. Security Council resolutions as the justification for war further emphasizes our sacrifice of sovereignty and Congress’s reneging on its Constitutional responsibility on war. interest Opposing H.R. 557 17 March 2004    2004 Ron Paul 19:9 Presidential envoy Donald Rumsfeld and Tariq Aziz meet for two and one-half hours and agree that “the U.S. and Iraq shared many common interests,” including peace in the Persian Gulf, the desire to diminish the influence of Iran and Syria, and support for reintegrating Egypt, isolated since its unilateral peace with Israel, into the Arab world. Rumsfeld comments on Iraq’s oil exports, suggests alternative pipeline facilities, and discusses opposition to international terrorism and support for a fair Arab-Israeli peace. He and Aziz discuss the Iran-Iraq war “in detail.” Rumsfeld says that the administration wants an end to the war, and offers “our willingness to do more.” He mentions chemical weapons, possible escalation of fighting in the Gulf, and human rights as impediments to the U.S. government’s desire to do more to help Iraq, then shifts the conversation to U.S. opposition to Syria’s role in Lebanon. interest North American Development Bank 24 March 2004    2004 Ron Paul 21:3 When Congress funds institutions like NAD, it transfers resources from the private sector to the government. When resources are left in the private sector, they are put to the use most highly valued by individual consumers. In contrast, the use of resources transferred to the public sector by agencies like NAD is determined by bureaucrats and politically powerful special interests, thus assuring that the resources cannot be put to their highest-valued use. Therefore, determining the allocation of resources through the political process decreases economic efficiency. Thus, NAD will actually cost jobs and reduce the standard of living of the very workers NAD’s supporters claim to benefit! interest Don’t Expand NATO! March 30, 2004    2004 Ron Paul 25:1 Mr. Speaker, I rise in opposition to this resolution. I do so because further expansion of NATO, an outdated alliance, is not in our national interest and may well constitute a threat to our national security in the future. interest The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:42 A “guns and butter” policy was flawed in the 60s, and gave us interest rates of 21% in the 70s with high inflation rates. The current “guns and butter” policy is even more intense, and our economic infrastructure is more fragile than it was back then. These facts dictate our inability to continue this policy both internationally and domestically. It is true, an unshakable resolve to stay the course in Iraq, or any other hot spot, can be pursued for years. But when a country is adding to its future indebtedness by over 700 billion dollars per year it can only be done with great economic harm to all our citizens. interest The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:43 Huge deficits, financed by borrowing and Federal Reserve monetization, are an unsustainable policy and always lead to higher price inflation, higher interest rates, a continued erosion of the dollar’s value, and a faltering economy. Economic law dictates that the standard of living then must go down for all Americans—except for the privileged few who have an inside track on government largess—if this policy of profligate spending continues. Ultimately, the American people, especially the younger generation, will have to decide whether to languish with current policy or reject the notion that perpetual warfare and continued growth in entitlements should be pursued indefinitely. interest Continuity In Representation Act 22 April 2004    2004 Ron Paul 28:10 I have no doubt that the people of the states are quite competent to hold elections in a timely fashion. After all, it is in each state’s interest to ensure it has adequate elected representation in Washington. The version of H.R. 2844 before Congress today was drafted with input from state elections commissioners to make sure it sets realistic goals and will not unduly burden state governments. interest Continuity In Representation Act 22 April 2004    2004 Ron Paul 28:12 Even with the direct election of Senators, the fact that members of the House are elected every 2 years while Senators run for statewide office every 6 years means that members of the House of Representatives are still more accountable to the people than members of any other part of the federal government. Appointed members of Congress simply cannot be truly representative. James Madison and Alexander Hamilton eloquently made this point in Federalist 52: “As it is essential to liberty that the government in general should have a common interest with the people, so it is particularly essential that the branch of it under consideration should have an immediate dependence on, and an intimate sympathy with, the people. Frequent elections are unquestionably the only policy by which this dependence and sympathy can be effectually secured.” interest Statement on the Abuse of Prisoners in Iraq May 6, 2004    2004 Ron Paul 31:7 This resolution calls on the administration to keep Congress better informed. But Congress has the power – and the obligation – to keep itself better informed! If Congress is truly interested in being informed, it should hold hearings – exercising its subpoena power if necessary. Depending on the administration to fulfill what is our own constitutional responsibility is once again passing the buck. Isn’t this what has gotten us into this trouble in the first place? interest The House of Representatives Must be Elected! June 2, 2004    2004 Ron Paul 36:2 Even with the direct election of Senators, the fact that members of the House of Representatives are elected every two years (while Senators run for statewide office every six years) means that members of the House are still more accountable to the people than members of any other part of the federal government. Appointed members of Congress simply cannot be truly representative. James Madison and Alexander Hamilton eloquently made this point in Federalist 52: “As it is essential to liberty that the government in general should have a common interest with the people, so it is particularly essential that the branch of it under consideration should have an immediate dependence on, and an intimate sympathy with, the people. Frequent elections are unquestionably the only policy by which this dependence and sympathy can be effectually secured.” interest The Same Old Failed Policies in Iraq June 3, 2004    2004 Ron Paul 37:4 Inadvertently we served the interests of both Iran and Osama bin Laden by eliminating the very enemy they despised- Saddam Hussein. To the Iranians delight, it was payback time for our allegiance with Saddam Hussein against Iran in the 1980s. interest The Same Old Failed Policies in Iraq June 3, 2004    2004 Ron Paul 37:7 What a mess! But no one should be surprised. Regime change plans- whether by CIA operations or by preemptive war- almost always go badly. American involvement in installing the Shah of Iran in the fifties, killing Diem in South Vietnam in the sixties, helping Osama bin Laden against the Soviets in the eighties, assisting Saddam Hussein against Iran in the eighties, propping up dictators in many Arab countries, and supporting the destruction of the Palestinian people all have had serious repercussions on American interests including the loss of American life. We have wasted hundreds of billions of dollars while the old wounds in the Middle East continue to fester. interest The Same Old Failed Policies in Iraq June 3, 2004    2004 Ron Paul 37:11 The invisible economic costs are enormous but generally ignored. A policy of militarism and constant war has huge dollar costs, which contribute to the huge deficits, higher interest rates, inflation, and economic dislocations. War cannot raise the standard of living for the average American. Participants in the military-industrial complex do benefit, however. Now the grand scheme of physically rebuilding Iraq using American corporations may well prove profitable to the select few with political connections. interest The Same Old Failed Policies in Iraq June 3, 2004    2004 Ron Paul 37:13 The day is fast approaching when we no longer will be able to afford this burden. For now foreign governments are willing to loan us the money needed to finance our current account deficit, and indirectly the cost of our worldwide military operations. It may seem possible for the moment because we have been afforded the historically unique privilege of printing the world’s reserve currency. Foreigners have been only too willing to take our depreciating dollars for their goods. Economic law eventually will limit our ability to live off others by credit creation. Eventually trust in the dollar will be diminished, if not destroyed. Those who hold these trillion plus dollars can hold us hostage if it’s ever in their interest. It may be that economic law and hostility toward the United States will combine to precipitate an emotionally charged rejection of the dollar. interest The Same Old Failed Policies in Iraq June 3, 2004    2004 Ron Paul 37:18 Instead of the incessant chant about us forcing democracy on others, why not read our history and see how thirteen nations joined together to form a loose-knit republic with emphasis on local self-government. Part of the problem with our effort to re-order Iraq is that the best solution is something we have essentially rejected here in the United States. It would make a lot more sense to concentrate on rebuilding our Republic, emphasizing the principles of private property, free markets, trade, and personal liberty here at home rather then pursuing war abroad. If this were done, we would not be a militaristic state spending ourselves into bankruptcy, and government benefits to the untold thousands of corporations and special interest would be denied. interest Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:2 The never-ending political squabble in Congress over taxing the rich, helping the poor, “Pay-Go,” deficits, and special interests, ignores the most insidious of all taxes- the inflation tax. Simply put, printing money to pay for federal spending dilutes the value of the dollar, which causes higher prices for goods and services. Inflation may be an indirect tax, but it is very real- the individuals who suffer most from cost of living increases certainly pay a “tax.” interest Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:8 Borrowing money to cut the deficit is only marginally better than raising taxes. It may delay the pain for a while, but the cost of government eventually must be paid. Federal borrowing means the cost of interest is added, shifting the burden to a different group than those who benefited and possibly even to another generation. Eventually borrowing is always paid for through taxation. interest Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:9 All spending ultimately must be a tax, even when direct taxes and direct borrowing are avoided. The third option is for the Federal Reserve to create credit to pay the bills Congress runs up. Nobody objects, and most Members hope that deficits don’t really matter if the Fed accommodates Congress by creating more money. Besides, interest payments to the Fed are lower than they would be if funds were borrowed from the public, and payments can be delayed indefinitely merely by creating more credit out of thin air to buy U.S. treasuries. No need to soak the rich. A good deal, it seems, for everyone. But is it? interest Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:12 The Fed is solely responsible for inflation by creating money out of thin air. It does so either to monetize federal debt, or in the process of economic planning through interest rate manipulation. This Fed intervention in our economy, though rarely even acknowledged by Congress, is more destructive than Members can imagine. interest Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:13 Not only is the Fed directly responsible for inflation and economic downturns, it causes artificially low interest rates that serve the interests of big borrowers, speculators, and banks. This unfairly steals income from frugal retirees who chose to save and place their funds in interest bearing instruments like CDs. interest Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:14 The Fed’s great power over the money supply, interest rates, the business cycle, unemployment, and inflation is wielded with essentially no Congressional oversight or understanding. The process of inflating our currency to pay for government debt indeed imposes a tax without legislative authority. interest Government Spending – A Tax on the Middle Class July 8, 2004    2004 Ron Paul 52:15 This is no small matter. In just the first 24 weeks of this year the M3 money supply increased 428 billion dollars, and 700 billion dollars in the past year. M3 currently is rising at a rate of 10.5%. In the last seven years the money supply has increased 80%, as M3 has soared 4.1 trillion dollars. This bizarre system of paper money worldwide has allowed serious international imbalances to develop. We owe just four Asian countries 1.5 trillion dollars as a consequence of a chronic and staggering current account deficit now exceeding 5% of our GDP. This current account deficit means Americans must borrow 1.6 billion dollars per day from overseas just to finance this deficit. This imbalance, which until now has permitted us to live beyond our means, eventually will give us higher consumer prices, a lower standard of living, higher interest rates, and renewed inflation. interest Taiwan Relations Act — Part 3 14 July 2004    2004 Ron Paul 56:2 Let me just restate my general position, because my defense is that of a foreign policy of nonintervention, sincerely believing it is in the best interests of our people and the world that we get less involved militaristically. interest Taiwan Relations Act — Part 3 14 July 2004    2004 Ron Paul 56:6 And our first President. He is well- known for his farewell address, and in that address he says, “Harmony, liberal intercourse with all nations, are recommended by policy, humanity, and interest. But even our commercial policy should hold an equal and impartial hand: neither seeking nor granting exclusive favors or preferences; consulting the natural course of things; diffusing and diversifying by gentle means the streams of commerce, but forcing nothing.” interest Millennium Challenge Account — Part 1 15 July 2004    2004 Ron Paul 57:7 Now, it may be said by those who have promoted the Millennium Challenge Account, that is exactly what we are trying to address. We want to reward countries that are moving in the direction of free markets. Now, that is a nice notion, but it cannot work. It is impossible because when we give money to a government, it is politicized. It becomes bureaucratic, and it has to be handed out to special interests. interest Millennium Challenge Account — Part 2 15 July 2004    2004 Ron Paul 59:2 Let me follow up on the point I made earlier about the good intentions of a program like this to promote free market changes in certain countries, but, unfortunately, this backfires because once the money gets in the hands of the government we then require them to develop partnerships or alliances with businesses, which is exactly the opposite of free markets. This is closer to crony capitalism or fascism when we combine government money with business interests. interest Opposing Aid To Pakistan 15 July 2004    2004 Ron Paul 61:3 Essentially for 100 years, we have accepted the foreign policy of Woodrow Wilson. It is a flawed idealism that we should, and it is our responsibility to, make the world safe for democracy. That did not just exist for World War I, which led to a peace treaty which caused a lot of problems leading up to World War II; but those notions are well engrained in the current neoconservative approach to foreign policy and the policy that this administration follows. But I do not think it is in the best interests of our country to follow this. interest Opposing Aid To Pakistan 15 July 2004    2004 Ron Paul 61:8 We have helped people who have been arch enemies for years. Take Greece and Turkey. We helped both sides. But not only do we help both sides of a lot of these fights that have been going on for a long time, we literally help our enemies. Just think of the support we gave Osama bin Laden when he was fighting the Russians in Afghanistan and just think of our alliance with Saddam Hussein in the 1980s when we did provide him with a lot of destructive weapons. That type of policy does not add up. It does not make a lot of sense. It is not in our best interests, and my suggestion here is hopefully somewhere along the way, we will take a serious look at this and redirect our foreign policy. interest Hands Off Sudan! July 23, 2004    2004 Ron Paul 65:2 Mr. Speaker, this resolution was never marked-up in the House International Relations Committee, on which I serve. Therefore, Members of that committee had no opportunity to amend it or express their views before it was sent to the Floor for a vote. Like too many highly controversial bills, it was rushed onto the suspension calendar (by House rules reserved for “non-controversial” legislation) at the last minute. Perhaps there was a concern that if Members had more time to consider the bill they would cringe at the resolution’s call for US military action in Sudan - particularly at a time when our military is stretched to the breaking point. The men and women of the United States Armed Forces risk their lives to protect and defend the United States. Can anyone tell me how sending thousands of American soldiers into harm’s way in Sudan is by any stretch of the imagination in the US national interest or in keeping with the constitutional function of this country’s military forces? I urge my colleagues in the strongest terms to reject this dangerous resolution. interest The Constitution 23 September 2004    2004 Ron Paul 70:3 Early on the supporters of strong centralized government promoted central banking, easy credit, protectionism, mercantilism and subsidies for corporate interests. interest The Constitution 23 September 2004    2004 Ron Paul 70:9 The real purpose of the Constitution was the preservation of liberty, but our government ignores this while spending endlessly, taxing and regulating. The complacent electorate who are led to believe their interests and needs are best served by a huge bureaucratic welfare state convince themselves that enormous Federal deficits and destructive inflation can be dealt with on another day. interest Reject a National Prescription Database October 5, 2004    2004 Ron Paul 74:6 Once doctors know that there is a national database of controlled substances prescriptions that overzealous law enforcement will be scrutinizing to harass doctors, there may be no doctors left who are willing to treat chronic pain. Instead of creating a national database, we should be returning medical regulation to local control, where it historically and constitutionally belongs. Instead of drug warriors regulating medicine with an eye to maximizing prosecutions, we should return to state medical boards and state civil courts review that looks to science-based standards of medical care and patients’ best interests. interest The 9-11 Intelligence Bill: More Bureaucracy, More Intervention, Less Freedom October 8, 2004    2004 Ron Paul 77:1 Mr. Speaker, the 9/11 Recommendations Implementation Act (HR 10) is yet another attempt to address the threat of terrorism by giving more money and power to the federal bureaucracy. Most of the reforms contained in this bill will not make America safer, though they definitely will make us less free. HR 10 also wastes American taxpayer money on unconstitutional and ineffective foreign aid programs. Congress should make America safer by expanding liberty and refocusing our foreign policy on defending this nation’s vital interests, rather than expanding the welfare state and wasting American blood and treasure on quixotic crusades to “democratize” the world. interest Raising the Debt Limit: A Disgrace November 18, 2004    2004 Ron Paul 79:3 Most Americans do not spend much time worrying about the national debt, which now totals more than eight trillion dollars. The number is so staggering that it hardly seems real, even when economists issue bleak warnings about how much every American owes — currently about $25,000. Of course, Congress never hands each taxpayer a bill for that amount. Instead, the federal government uses your hard-earned money to pay interest on this debt, which is like making minimum payments on a credit card. Notice that the principal never goes down. In fact, it is rising steadily. interest Raising the Debt Limit: A Disgrace November 18, 2004    2004 Ron Paul 79:7 Increasing the national debt sends a signal to investors that the government is not serious about reining in spending. This increases the risks that investors will be reluctant to buy government debt instruments. The effects on the American economy could be devastating. The only reason why we have been able to endure such large deficits without skyrocketing interest rates is the willingness of foreign nations to buy the federal government’s debt instruments. However, the recent fall in the value of the dollar and rise in the price of gold indicate that investors may be unwilling to continue to prop up our debt-ridden economy. Furthermore, increasing the national debt will provide more incentive for foreign investors to stop buying federal debt instruments at the current interest rates. Mr. Speaker, what will happen to our already fragile economy if the Federal Reserve must raise interest rates to levels unseen since the seventies to persuade foreigners to buy government debt instruments? interest Stay out of Sudan’s Civil War November 19, 2004    2004 Ron Paul 80:2 The fact is we do not know and cannot understand the complexities of the civil war in Sudan, which has lasted for 39 of that country’s 48 years of existence. Supporters of our intervention in Sudan argue that this is a clear-cut case of Sudan’s Christian minority being oppressed and massacred by the Arab majority in the Darfur region. It is interesting that the CIA’s World Factbook states that Sudan’s Christians, who make up five percent of the population, are concentrated in the south of the country. Darfur is a region in the mid-western part of Sudan. So I wonder about this very simplistic characterization of the conflict. interest Stay out of Sudan’s Civil War November 19, 2004    2004 Ron Paul 80:3 It seems as if this has been all reduced to a few slogans, tossed around without much thought or care about real meaning or implication. We unfortunately see this often with calls for intervention. One thing we do know, however, is that Sudan is floating on a sea of oil. Why does it always seem that when we hear urgent clamor for the United States to intervene, oil or some other valuable commodity just happens to be present? I find it interesting that so much attention is being paid to oil-rich Sudan while right next door in Congo the death toll from its civil war is estimated to be two to three million - several times the estimated toll in Sudan. interest Where To From Here? November 20, 2004    2004 Ron Paul 81:6 Interesting enough, both candidates graduated from Yale and both were members of the controversial and highly secretive Skull and Bones Society. This fact elicited no interest with the media in the campaign. interest Where To From Here? November 20, 2004    2004 Ron Paul 81:11 Both supported foreign interventionism in general, foreign aid, and pursuing American interests by maintaining a worldwide American empire. interest Where To From Here? November 20, 2004    2004 Ron Paul 81:16 The immediate market reaction to the reelection of President Bush was interesting. The stock market rose significantly, led by certain segments thought to benefit from a friendly Republican administration such as pharmaceuticals, HMO’s, and the weapons industry. The Wall Street Journal summed up the election with a headline the following day: “Winner is Big Business.” The stock market rally following the election likely will be short-lived, however, as the fundamentals underlying the bear market that started in 2000 are still in place. interest 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. interest Where To From Here? November 20, 2004    2004 Ron Paul 81:26 The problem the country faces is that social issues garnered intense interest and motivated many to vote both for and against the candidates, yet these issues are only a tiny fraction of the issues dealt with at the national level. And since the election has passed, the odds of new legislation dealing with social issues are slim. Getting a new Supreme Court that will overthrow Roe vs. Wade is a long shot despite the promises. Remember, we already have a Supreme Court where seven of the nine members were appointed by Republican presidents with little to show for it. interest Where To From Here? November 20, 2004    2004 Ron Paul 81:33 President Eisenhower, not exactly a champion of a strict interpretation of the Constitution, made some interesting comments years ago when approached about more welfare benefits for the needy: “If all that Americans want is security, they can go to prison. They’ll have enough to eat, a bed and a roof over their heads. But if an American wants to preserve his dignity and his equality as a human being, he must not bow his neck to any dictatorial government.” Our country sure could use a little bit more of this sentiment, as Congress rushes to pass new laws relating to the fear of another terrorist attack. interest Where To From Here? November 20, 2004    2004 Ron Paul 81:63 We must come to realize that we’re fighting an ideology that is totally alien to us. Within that ideology the radical Islamists and the traditional tribal customs are in conflict with more moderate and secular Muslims. We’re seen as intruding in this family feud, and thus serve the interests of the radicals as we provide evidence that they are under attack by Western crusaders. With each act of violence the hatred between the two is ratcheted upward, as fighting spreads throughout the entire Muslim world. interest Where To From Here? November 20, 2004    2004 Ron Paul 81:66 It’s clear the Christian conservative turnout was critical to the President’s re-election. Though many may well have voted for the family/moral values touted by the President and mishandled by Senator Kerry, most agree with the Christian Right that our policy of pre-emptive war in the Middle East is not in conflict with pro-family and pro-life values. This seems strange indeed, since a strong case can be made that the conservative Christian Right, those most interested in the pro-life issue, ought to be the strongest defenders of peace and reject unnecessary pre-emptive war. interest Where To From Here? November 20, 2004    2004 Ron Paul 81:76 9. Promoting true free trade and promoting prosperity through low taxes and less regulation sends a strong message to the world and those interested in peace and commerce. interest Introducing The Identity Theft protection Act 4 January 2005    2005 Ron Paul 2:16 Second, the Federal Government has been creating proprietary interests in private information for certain State-favored special interests. Perhaps the most outrageous example of phony privacy protection is the “medical privacy”’ regulation, that allows medical researchers, certain business interests, and law enforcement officials access to health care information, in complete disregard of the Fifth Amendment and the wishes of individual patients! Obviously, “privacy protection” laws have proven greatly inadequate to protect personal information when the government is the one seeking the information. interest Introducing The Social Security Preservation Act 4 January 2005    2005 Ron Paul 4:1 Mr. PAUL. Mr. Speaker, I rise to protect the integrity of the Social Security trust fund by introducing the Social Security Preservation Act. The Social Security Preservation Act is a rather simple bill which states that all monies raised by the Social Security trust fund will be spent in payments to beneficiaries, with excess receipts invested in interest-bearing certificates of deposit. This will help keep Social Security trust fund monies from being diverted to other programs, as well as allow the fund to grow by providing for investment in interest- bearing instruments. interest Introducing The Social Security Preservation Act 4 January 2005    2005 Ron Paul 4:3 With federal deficits reaching historic levels the pressure from special interests for massive new raids on the trust fund is greater than ever. Thus it is vital that Congress act now to protect the trust fund from big spending, pork- barrel politics. Social Security reform will be one of the major issues discussed in this Congress and many of my colleagues have different ideas regarding how to best preserve the long-term solvency of the program. However, as a medical doctor, I know the first step in treatment is to stop the bleeding, and the Social Security Preservation Act stops the bleeding of the Social Security trust fund. I therefore call upon all my colleagues, regardless of which proposal for long-term Social Security reform they support, to stand up for America’s seniors by cosponsoring the Social Security Preservation Act. interest Government IDs and Identity Theft January 6, 2005    2005 Ron Paul 5:16 Second, the federal government has been creating proprietary interests in private information for certain state-favored special interests. Perhaps the most outrageous example of phony privacy protection is the “medical privacy'” regulation, that allows medical researchers, certain business interests, and law enforcement officials access to health care information, in complete disregard of the Fifth Amendment and the wishes of individual patients! Obviously, “privacy protection” laws have proven greatly inadequate to protect personal information when the government is the one seeking the information. interest America’s Foreign Policy Of Intervention 26 January 2005    2005 Ron Paul 6:60 What if we suddenly discover we are the aggressors and we are losing an unwinnable guerilla war? What if we discover too late that we cannot afford this war, and that our policies have led to a dollar collapse, rampant inflation, high interest rates, and a severe economic downturn? interest America’s Foreign Policy Of Intervention 26 January 2005    2005 Ron Paul 6:65 Policing the world, spreading democracy by force, nation-building and frequent bombing of countries that pose no threat to us, while leaving the homeland and our borders unprotected, result from a foreign policy that is contradictory and not in our self-interest. interest Family Education Freedom Act 26 January 2005    2005 Ron Paul 9:9 Clearly, enactment of the Family Education Freedom Act is the best thing this Congress could do to improve public education. Furthermore, a greater reliance on parental expenditures rather than government tax dollars will help make the public schools into true community schools that reflect the wishes of parents and the interests of the students. interest Introduction Of The Liberty Amendment 26 January 2005    2005 Ron Paul 10:5 Income taxes not only diminish liberty, they retard economic growth by discouraging work and production. Our current tax system also forces Americans to waste valuable time and money on compliance with an ever-more complex tax code. The increased interest in flat- tax and national sales tax proposals, as well as the increasing number of small businesses that question the Internal Revenue Service’s (IRS) “withholding” system provides further proof that America is tired of the labyrinthine tax code. Americans are also increasingly fed up with an IRS that continues to ride roughshod over their civil liberties, despite recent “pro-taxpayer” reforms. interest Harmful And Counterproductive United States Embargo On Cuba 2 February 2005    2005 Ron Paul 16:5 I certainly understand the emotional feelings many Americans have toward nations such as Cuba. Yet we must not let our emotions overwhelm our judgment in foreign policy matters, because ultimately human lives are at stake. Economic common sense, self-interested foreign policy goals, and humanitarian ideals all point to the same conclusion: Congress should work to end economic sanctions against all nations immediately. interest Sense Of The Congress Resolution That The United States Should Not Ratify The Law Of The Sea Treaty 10 February 2005    2005 Ron Paul 20:2 The Law of the Sea Treaty was conceived in the early 1970s by the “New International Economic Order,” a United Nations political movement designed to transfer wealth and technology from the industrial nations to communist and undeveloped nations. President Ronald Reagan recognized the threat this treaty would pose to America’s sovereignty and economic interests and rightly rejected the Treaty in 1982. interest Sense Of The Congress Resolution That The United States Should Not Ratify The Law Of The Sea Treaty 10 February 2005    2005 Ron Paul 20:7 This treaty will create a Law of the Sea Tribunal, which will claim — and already has claimed — jurisdiction over the onshore as well as within the territorial sea or economic zones of coastal nations. This U.N. Tribunal could very well rule in a manner contrary to U.S. military, counterterrorism, and commercial interests. interest Continuity In Representation Act 3 March 2005    2005 Ron Paul 26:3 I have no doubt that the people of the States are quite competent to hold elections in a timely fashion. After all, it is in each State’s interest to ensure it has adequate elected representation in Washington. The version of H.R. 841 before Congress today was drafted with input from State elections commissioners to make sure it sets realistic goals and will not unduly burden State governments. I am disappointed that some of my colleagues reject the sensible approach of H.R. 841 and instead support amending the Constitution to allow appointed Members to serve in this body. Allowing appointed Members to serve in “the people’s house” will fundamentally alter the nature of this institution and sever the people’s most direct connection with their government. interest Continuity In Representation Act 3 March 2005    2005 Ron Paul 26:5 As it is essential to liberty that the government in general should have a common interest with the people, so it is particularly essential that the branch of it under consideration should have an immediate dependence on, and an intimate sympathy with, the people. Frequent elections are unquestionably the only policy by which this dependence and sympathy can be effectively secured. interest Consequences Of Foreign Policy — Part 1 16 March 2005    2005 Ron Paul 30:9 The Syrians went into Lebanon in 1976, and if we go back and look at history, it was at the urging of the Government of the United States because there was about to be an election. And at that time, it was perceived that the election would undermine the minorities, the Christians and the Druse. So, therefore, it was in our interest at that time to interfere with the election, just as we have interfered so many times since then over the world. interest Consequences Of Foreign Policy — Part 1 16 March 2005    2005 Ron Paul 30:13 Our problem very simply comes from the violation of the basic principle that we should follow, and that is that we should be friends with nations and trade with nations, and that we should be neutral in foreign affairs, because it does not serve our interests. It costs a lot of money and it costs a lot of credibility and it costs a lot of lives. interest Consequences Of Foreign Policy — Part 1 16 March 2005    2005 Ron Paul 30:17 I see resolutions like this as not restraint, but encouragement, without looking back and seeing how we participated in contributing to the problems that we have in the Middle East. So I am making the suggestion, why do we not think about overall policy with consistency, and think almost what is in our best interests? I would like to read a quote from Ronald Reagan, because he was involved in Lebanon and our government was involved in the early 1980s. In his memoirs he admits it was a serious mistake, and we ought to take advice from Ronald Reagan on what he said about his misadventure in Lebanon. We were in there in 1983. This is what he writes in his memoirs several years later. interest Consequences Of Foreign Policy — Part 3 16 March 2005    2005 Ron Paul 32:3 Now that is pretty interesting that we are going to tell them who they can release and who they should release. But the question I have, and maybe the sponsors of the resolution could answer this: Will that include that we insist that they release the prisoners that we have sent to Syria? interest The United States Should Withdraw From UNESCO 14 April 2005    2005 Ron Paul 40:2 Mr. Speaker, in 1984 President Ronald Reagan withdrew the United States from membership in UNESCO, citing egregious financial mis-management, blatant anti-Americanism, and UNESCO’s general anti-freedom policies and programs. President Reagan was correct in identifying UNESCO as an organization that does not act in America’s interest, and he was correct in questioning why the U.S. should fund 25 percent of UNESCO’s budget for that privilege. interest United States Should Leave World Trade Organization 9 June 2005    2005 Ron Paul 57:4 Therefore, there are many of us who ally together to argue that case, although we may have a disagreement on how much tariffs we should have, because the Congress should decide that. We could have no tariffs; we could have a uniform tariff, which the Founders believed in and permitted; or we could have protective tariffs, which some of those individuals on our side defend, and I am not that much interested in. But the issue that unifies us is who should determine it. For me, the determination should be by the U.S. Congress and not to defer to an international government body. interest United States Should Leave World Trade Organization 9 June 2005    2005 Ron Paul 57:5 Now this always bewilders me, when my conservative friends and those who believe in limited government are so anxious to deliver this to another giant international body. For instance, the WTO employs over 600 people. Free trade, if you are interested in free trade, all you have to do is write a sentence or two, and you can have free trade. You do not need 600 bureaucrats. It costs $133 million to manage the WTO every year. Of course, we pay the biggest sum, over $25 million for this, just to go and get permission or get our instructions from the WTO. interest United States Should Leave World Trade Organization 9 June 2005    2005 Ron Paul 57:15 Our administration is not too interested in the Kyoto Protocol, but that may well come down the road, and the enforcement of the Kyoto Protocol many believe will be enforced by the WTO. interest The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:4 Hardships can be justified in defensive wars, and use of resources is more easily justified than in an unpopular far-away conflict. Motivations are stronger, especially when the cause seems to be truly just and the people are willing to sacrifice for the common goal of survival. Defensive war provides a higher moral goal, and this idealism exceeds material concerns. In all wars, however, there are profiteers and special interests looking after their own selfish interests. interest The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:13 Joining in support for the war are the special interest groups that have other agendas to pursue: profits, religious beliefs, and partisan political obligations. interest The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:29 The Federal Reserve was created in 1913, and shortly thereafter the Fed accommodated the Wilsonians bent on entering WWI by inflating and deficit financing that ill-begotten involvement. Though it produced the 1921 depression and many other problems since, the process subsequently has become institutionalized in financing our militarism in the 20 th Century and already in the 21 st . Without the Fed’s ability to create money out of thin air, our government would be severely handicapped in waging wars that do not serve our interests. The money issue and the ability of our government to wage war are intricately related. Anyone interested in curtailing wartime spending and our militarism abroad is obligated to study the monetary system, through which our government seductively and surreptitiously finances foreign adventurism without the responsibility of informing the public of its cost or collecting the revenues required to finance the effort. interest The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:30 Being the issuer of the world’s premier currency allows for a lot more abuse than a country would have otherwise. World businesses, governments, and central banks accept our dollars as if they are as good as gold. This is a remnant of a time when the dollar was as good as gold. That is no longer the case. The trust is still there, but it’s a misplaced trust. Since the dollar is simply a paper currency without real value, someday confidence will be lost and our goose will no longer be able to lay the golden egg. That’s when reality will set in and the real cost of our extravagance, both domestic and foreign, will be felt by all Americans. We will no longer be able to finance our war machine through willing foreigners, who now gladly take our newly printed dollars for their newly produced goods and then loan them back to us at below market interest rates to support our standard of living and our war effort. interest The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:31 The payment by American citizens will come as the dollar loses value, interest rates rise, and prices increase. The higher prices become the tax that a more honest government would have levied directly to pay for the war effort. An unpopular war especially needs this deception as a method of payment, hiding the true costs which are dispersed and delayed through this neat little monetary trick. The real tragedy is that this “inflation tax” is not evenly distributed among all the people, and more often than not is borne disproportionately by the poor and the middle class as a truly regressive tax in the worst sense. Politicians in Washington do not see inflation as an unfair seductive tax. Our monetary policy unfortunately is never challenged even by the proponents of low taxes who care so little about deficits, but eventually it all comes to an end because economic law overrides the politicians’ deceit. interest The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:34 Centuries ago the notion of money introduced the world to trade and the principle of division of labor, ushering in for the first time a level of economic existence above mere subsistence. Modern fiat money with electronic transactions has given an additional boost to that prosperity. But unlike sound commodity money, fiat money, with easy credit and artificially low interest rates, causes distortions and mal-investments that require corrections. The modernization of electronic global transfers, which with sound money would be beneficial, has allowed for greater distortion and debt to be accumulated-- setting the stage for a much more serious period of adjustment requiring an economic downturn, liquidation of debt, and reallocation of resources that must come from savings rather than a central bank printing press. interest The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:38 Our freedoms here at home have served the interests of those who are hell-bent on pursuing an American empire, though this too will be limited by economic costs and the undermining of our personal liberties. interest The Hidden Cost of War June 14, 2005    2005 Ron Paul 58:40 If we did make these changes, we would not need to become isolationists, despite what many claim. Isolationism is not the only alternative to intervention in other nations’ affairs. Freedom works! Free markets supported by sound money, private property, and respect for all voluntary contracts can set an example for the world-- since the resulting prosperity would be significant and distributed more widely than any socialist system. Instead of using force to make others do it our way, our influence could be through the example we set that would motivate others to emulate us. Trade, travel, exchange of ideas, and friendly relationships with all those who seek friendship are a far cry from a protectionist closed border nation that would serve no one’s interest. interest An Article By Mr. Lee Jackson 14 June 2005    2005 Ron Paul 62:17 That is the effect of the Supreme Court ruling. Because ours is technically not a civil rights case, we do not enjoy the benefits of the exemption inspired by the Spina case. We had properly appealed to our government for help, and the government has now placed us in a position where our own best interests are indeterminate, so we cannot settle (ironic, since the intent of most tort reform has been to encourage settlement). When a jury makes an award, the tax exposure will likely be ruinous. Another irony is that the higher the award, the greater our tax exposure. And we are middle-class citizens. interest Amendment No. 11 Offered By Mr. Paul 16 June 2005    2005 Ron Paul 66:6 I have been a longtime opponent of the United Nations not so much because of the goals they seek, but because of their failure to reach these goals, as well as the attack on our national sovereignty. For me, it is a sovereignty issue, and that is the reason that I believe that it does not serve our interests to be in the United Nations, and we should make a statement for the many Americans who share that particular view. interest Amendment No. 11 Offered By Mr. Paul 16 June 2005    2005 Ron Paul 66:11 I want to just mention the policies that I believe that are risky, especially if you are interested in protecting our national sovereignty. interest Statement on the Flag Burning Amendment June 22, 2005    2005 Ron Paul 71:24 We must be interested in the spirit of our Constitution. We must be interested in the principles of liberty. I therefore urge my colleagues to oppose this amendment. Instead, my colleagues should work to restore the rights of the individual states to ban flag burning, free from unconstitutional interference by the Supreme Court. interest Introducing The Quality Health Care Coalition Act 27 June 2005    2005 Ron Paul 78:3 As an OB–GYN with over 30 years in practice, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I have tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I have always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO. interest Foreign Aid 28 June 2005    2005 Ron Paul 81:8 Then we wonder where the lobby is from. It is not from the American people. I will bet my colleagues nobody wrote to anybody on this side and said please make sure you spend this $100 million dollars; this would be tragic if you would not spend it because it is doing so much good. That does not happen. It is the lobbying behind the scenes of the special interests whose interests are served by us being down there. It is part of this military industrial complex which exists, and I do not believe it has had one ounce of success. I think it is a complete waste of money; and besides, just incidentally it is unconstitutional for us to do this. interest Congress Lacks Authority To Sell Unocal 30 June 2005    2005 Ron Paul 82:5 Some have raised concerns that the purchase of Unocal by a company tied to the Chinese government will create security problems for the United States. I would argue the opposite. International trade and economic activity tends to diminish, not increase tensions between countries. Increased economic relationships between the United States and China make military conflict much less likely, as it becomes in neither country’s interest to allow tensions to get out of hand. interest SUICIDE TERRORISM July 14, 2005    2005 Ron Paul 84:9 It is time for us to consider a strategic reassessment of our policy of foreign interventionism, occupation, and nation-building. It is in our national interest to do so and in the interest of world peace. interest The Republican Congress Wastes Billions Overseas July 20, 2005    2005 Ron Paul 86:4 This bill spends a total of four and a half billion dollars on various United Nations activities, UN peacekeeping, and US dues to various international organizations. Forcing the taxpayer to continue to underwrite these organizations, which do not operate in our best interests, is unconscionable. interest Congress, Not The President, Should Regulate Foreign Commerce 27 July 2005    2005 Ron Paul 92:3 Members say it is not a threat to our national sovereignty and that we can veto what they tell us to do; but it does not happen that way. If we were interested in free trade, as the pretense is, you could initiate free trade in one small paragraph. This bill is over 1,000 pages, and it is merely a pretext for free trade. interest Congress, Not The President, Should Regulate Foreign Commerce 27 July 2005    2005 Ron Paul 92:4 At the same time we talk about free trade, we badger China, and that is not free trade. I believe in free trade, but this is not free trade. This is regulated, managed trade for the benefit of special interests. That is why I oppose it. interest Congress, Not The President, Should Regulate Foreign Commerce 27 July 2005    2005 Ron Paul 92:6 If Members are interested in freedom to buy vitamins without going to a doctor for a prescription, you have to vote against this bill. If you want international harmonization of nutrition and vitamins, you can vote for this bill, but I am opposed to that, and most Americans are as well. Vote no on this legislation. interest Why We Fight September 8, 2005    2005 Ron Paul 95:15 Oil in the Middle East has been a big issue since the industrial revolution, when it was realized that the black substance bubbling out of the ground in places like Iraq had great value. It’s interesting to note that in the early 20 th century Germany, fully aware of oil’s importance, allied itself with the Turkish Ottoman Empire and secured the earliest rights to drill Iraqi oil. They built the Anatalia railroad between Baghdad and Basra, and obtained oil and mineral rights on twenty kilometers on each side of this right-of-way. World War I changed all this, allowing the French and the British to divide the oil wealth of the entire Middle East. interest Why We Fight September 8, 2005    2005 Ron Paul 95:19 Finally, after years of plotting and maneuvering, the neo-conservative plan to invade Iraq came before the U.S. House in October 2002 to be rubber-stamped. Though the plan was hatched years before, and the official policy of the United States government was to remove Saddam Hussein ever since 1998, various events delayed the vote until this time. By October the vote was deemed urgent, so as to embarrass anyone who opposed it. This would make them politically vulnerable in the November election. The ploy worked. The resolution passed easily, and it served the interests of proponents of war in the November election. interest Why We Fight September 8, 2005    2005 Ron Paul 95:33 It is not in our national interest. On the contrary, pursuing this war endangers our security, increases the chances of a domestic terrorist attack, weakens our defenses, and motivates our enemies to join together in opposition to our domineering presence around the world. Does anyone believe that Russia, China, and Iran will give us free reign over the entire Middle East and its oil? Tragically, we’re setting the stage for a much bigger conflict. It’s possible that this war could evolve into something much worse than Vietnam. interest Why We Fight September 8, 2005    2005 Ron Paul 95:50 Congress at any time can prevent or stop all undue foreign entanglements pursued by the executive branch merely by refusing to finance them. The current Iraq war, now going on for 15 years, spans the administration of three presidents and many congresses controlled by both parties. This makes Congress every bit as responsible for the current quagmire as the president. But the real problem is the acceptance by our country as a whole of the principle of meddling in the internal affairs of other nations when unrelated to our national security. Intervention, no matter how well intended, inevitably boomerangs and comes back to haunt us. Minding our own business is not only economical; it’s the only policy that serves our national security interests and the cause of peace. interest Why We Fight September 8, 2005    2005 Ron Paul 95:51 The neo-conservatives who want to remake the entire Middle East are not interested in the pertinent history of this region. Creating an artificial Iraq after World War I as a unified country was like mixing water and oil. It has only led to frustration, anger, and hostilities-- with the resulting instability creating conditions ripe for dictatorships. The occupying forces will not permit any of the three regions of Iraq to govern themselves. This is strictly motivated by a desire to exert control over the oil. Self-determination and independence for each region, or even a true republican form of government with a minimalist central authority is never considered-- yet it is the only answer to the difficult political problems this area faces. The relative and accidental independence of the Kurds and the Shiites in the 1990s served those regions well, and no suicide terrorism existed during that decade. interest Why We Fight September 8, 2005    2005 Ron Paul 95:52 The claim that our immediate withdrawal from Iraq would cause chaos is not proven. It didn’t happen in Vietnam or even Somalia. Even today, the militias of the Kurds and the Shiites may well be able to maintain order in their regions much better than we can currently. Certainly the Sunnis can take care of themselves, and it might be in their best interests for all three groups not to fight each other when we leave. One thing for sure: if we left no more young Americans would have to die for an indefinable cause. interest Why We Fight September 8, 2005    2005 Ron Paul 95:54 In this war, like all others, the propagandists and promoters themselves don’t fight, nor do their children. It’s always worth the effort to wage war when others must suffer and die. Many of those who today pump the nation up with war fever were nowhere to be found when their numbers were called in the 1960s-- when previous presidents and Congresses thought so little about sending young men off to war. Then it was in their best interests to find more important things to do-- despite the so-called equalizing draft. interest Why We Fight September 8, 2005    2005 Ron Paul 95:57 This policy has led to excessive spending overseas and neglect at home. It invites enemies to attack us, and drains the resources needed to defend our homeland and care for our own people. We are obligated to learn something from the tragedy of Katrina about the misallocation of funds away from our infrastructure to the rebuilding of Iraq after first destroying it. If ever there was a time for us to reassess our policy of foreign interventionism, it is today. It’s time to look inward and attend to the constitutional needs of our people, and forget about the grandiose schemes to remake the world in our image through the use of force. These efforts not only are doomed to fail, as they have for the past one hundred years, but they invite economic and strategic military problems that are harmful to our national security interests. interest Why We Fight September 8, 2005    2005 Ron Paul 95:62 A sad realism struck me recently reading how our Marines in Afghanistan must now rely on donkey transportation in their efforts at nation building and military occupation. Evidently the Taliban is alive and well, as Osama bin Laden remains in this region. But doesn’t this tell us something about our naïve assumption that our economic advantages and technical knowledge can subdue and control anybody? We’re traversing Afghan mountains on donkeys, and losing lives daily in Baghdad with homemade primitive bombs. Our power and dominance clearly is limited by the determination of those who see us as occupiers, proving that just more money and sophisticated weapons won’t bring us victory. Sophisticated weapons and the use of unlimited military power is no substitute for diplomacy designed to promote peace while reserving force only for defending our national interests. interest Why We Fight September 8, 2005    2005 Ron Paul 95:67 The time will come when our policies dealing with foreign affairs will change for the better. But that will be because we can no longer afford the extravagance of war. This will occur when the American people realize that war causes too much suffering here at home, and the benefits of peace again become attractive to us all. Part of this recognition will involve a big drop in the value of the dollar, higher interest rates, and rampant price inflation. interest The Coming Category 5 Financial Hurricane September 15, 2005    2005 Ron Paul 98:3 Congress reacted to Katrina in the expected irresponsible manner. It immediately appropriated over $60 billion with little planning or debate. Taxes won’t be raised to pay the bill-- fortunately. There will be no offsets or spending reductions to pay the bill. Welfare and entitlement spending is sacrosanct. Spending for the war in Iraq and the military-industrial complex is sacrosanct. There is no guarantee that gracious foreign lenders will step forward, especially without raising interest rates. This means the Federal Reserve and Treasury will print the money needed to pay the bills. The sad truth is that monetary debasement hurts poor people the most-- the very people we saw on TV after Katrina. Inflating our currency hurts the poor and destroys the middle class, while transferring wealth to the ruling class. This occurs in spite of good intentions and misplaced compassion. interest The Coming Category 5 Financial Hurricane September 15, 2005    2005 Ron Paul 98:11 My suggestion to my colleagues: Any new expenditures must have offsets greater in amount than the new programs. Foreign military and foreign aid expenditures must be the first target. The Federal Reserve must stop inflating the currency merely for the purpose of artificially lowering interest rates to perpetuate a financial bubble. This policy allows government and consumer debt to grow beyond sustainable levels, while undermining incentives to save. This in turn undermines capital investment while exaggerating consumption. If this policy doesn’t change, the dollar must fall and the current account deficit will play havoc until the house of cards collapses. interest The Iraq War 18 October 2005    2005 Ron Paul 104:10 We involved ourselves in this civil struggle within the Muslim community. For decades, we supported various secular Arab governments throughout the region, always in opposition to religious fundamentalists. The U.S. never waivered in its enthusiastic support of Israel over Arab-Muslim interests. interest The Iraq War 18 October 2005    2005 Ron Paul 104:12 For literally hundreds of years, Europe has continually challenged Muslim and Arab domination of the Middle East. We have never, Europe or the United States, denied our interest in controlling Middle East oil. From Woodrow Wilson to the current neoconservative brand of foreign policy, the zeal for spreading democracy and Western values through force of arms has antagonized most Muslims. interest Personal Responsibility In Food Consumption Act 19 October 2005    2005 Ron Paul 105:5 Finally, Mr. Chairman, I would remind the food industry that using unconstitutional Federal powers to restrict State lawsuits makes it more likely those same powers will be used to impose additional Federal control over the food industry. Despite these lawsuits, the number one threat to business remains a Federal government freed of its Constitutional restraints. After all, the Federal government imposes numerous taxes and regulations on the food industry, often using the same phony “pro-consumer” justifications used by the trial lawyers. Furthermore, while small business, such as fast-food franchises, can move to another State to escape flawed State tax, regulatory, or legal policies, they cannot as easily escape destructive Federal regulations. Unconstitutional expansions of Federal power, no matter how just the cause may seem, are not in the interests of the food industry or of lovers of liberty. interest Personal Responsibility In Food Consumption Act 19 October 2005    2005 Ron Paul 105:6 In conclusion, while share the concern over the lawsuits against the food industry that inspired H.R. 554, this bill continues the disturbing trend of federalizing tort law. Enhancing the power of the Federal government is in no way in the long-term interests of defenders of the free market and Constitutional liberties. Therefore, I must oppose this bill. interest Introducing The Improve Interoperable Communications For First Responders Act 20 october 2005    2005 Ron Paul 107:3 Rather than simply further burdening taxpayers, or increasing the already skyrocketing national debt, my legislation is financed through cuts in corporate welfare and foreign aid programs, which subsidize large corporations and even American businesses’ overseas competitors such as the Export-Import Bank use of taxpayer money to underwrite trade with countries such as Communist China. It is time for the Federal Government to begin prioritizing spending by cutting unnecessary programs that benefit powerful special interests in order to met our constitutional responsibilities to ensure America’s first responders can effectively respond to terrorists’ attacks. interest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:8 Concerns have been raised about the new regulator’s independence from the Treasury Department. This is more than a bureaucratic “turf battle” as there are legitimate worries that isolating the regulator from Treasury oversight may lead to regulatory capture. Regulatory capture occurs when regulators serve the interests of the businesses they are supposed to be regulating instead of the public interest. While H.R. 1461 does have some provisions that claim to minimize the risk of regulatory capture, regulatory capture is always a threat where regulators have significant control over the operations of an industry. After all, the industry obviously has a greater incentive than any other stakeholder to influence the behavior of the regulator. interest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:9 The flip side of regulatory capture is that mangers and owners of highly subsidized and regulated industries are more concerned with pleasing the regulators than with pleasing consumers or investors, since the industries know that investors will believe all is well if the regulator is happy. Thus, the regulator and the regulated industry may form a symbiosis where each looks out for the other’s interests while ignoring the concerns of investors. interest Amendment No. 6 Offered By Mr. Paul — Part 1 26 October 2005    2005 Ron Paul 109:7 Of course, there are other things that contribute to the housing bubble, something that we cannot deal with today, but the fact that there is easy credit and low interest rates, interest rates below the market level, that is then directed into the housing market. This also contributes to the size and the scope of the borrowing capacity of the GSEs. interest Amendment No. 6 Offered By Mr. Paul — Part 2 26 October 2005    2005 Ron Paul 110:4 It is the government direction first from the inflation, the artificial interest rates, and then from the allocation of funds that cause distortion. That is what we are dealing with here, the distortion that people are literally frightened about because nobody can even measure the amount of derivatives that are involved with Fannie Mae and Freddie Mac. People are holding their breath for an accident to happen. interest Amendment No. 6 Offered By Mr. Paul — Part 2 26 October 2005    2005 Ron Paul 110:7 My argument is if we do not solve the problem of basic underlying inflation distortion of interest rates, allocation of funds through housing programs, as well as this line of credit, believe me, we are not going to solve this problem. Please vote to strike this line of credit to the Treasury. interest U.S. Interfering In Middle East 26 October 2005    2005 Ron Paul 113:6 This plan for remaking the Middle East has been around for a long time. Just as 9/11 served the interests of those who longed for changes in Iraq, the sensationalism surrounding Hariri’s death is being used to advance plans to remove Assad. interest We Have Been Warned October 26, 2005    2005 Ron Paul 114:2 This plan for remaking the Middle East has been around for a long time. Just as 9/11 served the interests of those who longed for changes in Iraq, the sensationalism surrounding Hariri’s death is being used to advance plans to remove Assad. interest Ahmadinejad’s Statement No Excuse To Escalate War Of Words 28 October 2005    2005 Ron Paul 115:3 I do find it interesting to hear my colleagues condemning Iran’s implied threat of force while in the same breath calling for the use of force against Iran. Ironically, it is small step from repeatedly calling Iran “our enemy” with increasingly militaristic rhetoric to calling for Iran to be “wiped off the map.” We should keep this in mind as we condemn the rhetoric of others while repeating similar rhetoric ourselves. interest Statement on So-Called "Deficit Reduction Act" November 18, 2005    2005 Ron Paul 123:8 HR 4241 fails to address the root of the spending problem--the belief that Congress can solve any problem simply by creating a new federal program or agency. However, with the federal government’s unfunded liabilities projected to reach as much as $50 trillion by the end of this year, Congress no longer can avoid serious efforts to rein in spending. Instead of the smoke-and-mirrors approach of HR 4241, Congress should begin the journey toward fiscal responsibility by declaring a ten percent reduction in real spending, followed by a renewed commitment to reduce spending in a manner consistent with our obligation to uphold the Constitution and the priorities of the American people. This is the only way to make real progress on reducing spending without cutting programs for the poor while increasing funding for programs that benefit foreign governments and corporate interests. interest The Blame Game December 7, 2005    2005 Ron Paul 124:23 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. interest The Blame Game December 7, 2005    2005 Ron Paul 124:43 How many more years will it take for civilized people to realize that war has no economic or political value for the people who fight and pay for it? Wars are always started by governments, and individual soldiers on each side are conditioned to take up arms and travel great distances to shoot and kill individuals that never meant them harm. Both sides drive their people into an hysterical frenzy to overcome their natural instinct to live and let live. False patriotism is used to embarrass the good-hearted into succumbing to the wishes of the financial and other special interests who agitate for war. interest Terrorism Insurance Program 7 December 2005    2005 Ron Paul 125:6 Mr. Speaker, no one doubts that the government has a role to play in compensating American citizens who are victimized by terrorist attacks. However, Congress should not lose sight of fundamental economic and constitutional principles when considering how best to provide the victims of terrorist attacks just compensation. I am afraid that H.R. 3210, the Terrorism Risk Protection Act, violates several of those principles and therefore passage of this bill is not in the best interests of the American people. interest Terrorism Insurance Program 7 December 2005    2005 Ron Paul 125:13 In conclusion, Mr. Speaker, H.R. 3210 may reduce the risk to insurance companies from future losses, but it increases the costs incurred by American taxpayer. More significantly, by ignoring the moral hazard problem this bill may have the unintended consequence of increasing the losses suffered in any future terrorist attacks. Therefore, passage of this bill is not in the long-term interests of the American people. interest 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. interest Foreign Policy 17 December 2005    2005 Ron Paul 128:28 How many more years will it take for civilized people to realize that war has no economic or political value for the people who fight and pay for it? Wars are always started by governments, and individual soldiers on each side are conditioned to take up arms and travel great distances to shoot and kill individuals that never meant them harm. Both sides drive their people into a hysterical frenzy to overcome the natural instinct to live and let live. False patriotism is used to embarrass the good-hearted into succumbing to the wishes of the financial and other special interests who agitate for war. War reflects the weakness of a civilization that refuses to offer peace as an alternative. interest Return To Constitutional Government 1 February 2006    2006 Ron Paul 1:2 This measure does nothing to address the root cause of the scandals — the ever-growing size and power of the Federal Government. As long the Federal Government continues to regulate, tax, and subsidize the American people, there will be attempts to influence those who write the laws and regulations under which the people must live. Human nature being what it is, there will also be those lobbyists and policymakers who will manipulate the power of the regulatory state to enrich themselves. As I have said before, and I fear I will have plenty of opportunity to say again, the only way to get special interest money and influence out of politics is to get the money and power out of Washington. Instead of passing new regulations and laws regulating the people’s right to petition their government, my colleagues should refuse to vote for any legislation that violates the constitutional limits on Federal power or enriches a special interest at the expense of American taxpayers. Returning to constitutional government is the only way to ensure that our republican institutions will not be corrupted by powerful interests seeking special privileges. interest Eliminating Foreign Aid That Helps Manipulate Elections 15 February 2006    2006 Ron Paul 2:4 I find it interesting that the same proponents of the United States government exporting democracy overseas are now demanding that something be done when people overseas do not vote the way the U.S. Government thinks they should. It seems that being for democracy means respecting that people overseas may not always vote the way Washington wants them to vote. If our aim is to ensure that only certain parties or individuals are allowed to lead foreign nations, why not just admit that democracy is the last thing we want? That attitude is evident in the fact that the U.S. Government spent more than $2 million trying to manipulate the Palestinian vote in favor of parties supported by Washington. You cannot have it both ways. Although it is always a good idea to eliminate foreign aid, we should be careful about calling the manipulation of elections overseas an exercise in “democracy promotion.” interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:15 The significance of Roosevelt’s change was that our intervention now could be justified by the mere appearance that a country of interest to us was politically or fiscally vulnerable to European control. Not only did we claim a right, but even an official government obligation to protect our commercial interest from Europeans. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:17 This transition only could have occurred with a dramatic change in monetary policy and the nature of the dollar itself. Congress created the Federal Reserve system in 1913. Between then and 1971, the principle of sound money was systematically undermined. Between 1913 and 1971, the Federal Reserve found it much easier to expand the money supply at will for financing war or manipulating an economy with little resistance from Congress while benefiting the special interests that influence Congress. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:27 During the 1970s, the dollar nearly collapsed as oil prices surged and gold skyrocketed to $800 an ounce. By 1979, interest rates of 21 percent were required to rescue the system. The pressure on the dollar in the 1970s, in spite of the benefits accrued to it, reflected reckless budget deficits and monetary inflation during the 1960s. The markets were not fooled by LBJ’s claim that we could afford both guns and butter. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:30 In recent years, central banks and various financial institutions, all with vested interest in maintaining a workable fiat dollar standard, were not secretive about selling and maintaining large amounts of gold to the market, even while decreasing gold prices raised serious questions about the wisdom of such a policy. They never admitted to gold price fixing, but the evidence is abundant that they believed that if the gold price fell, it would convey a sense of confidence to the market, confidence that they, indeed, had achieved amazing success in turning paper into gold. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:34 Even with all the shortcomings of the fiat monetary system, dollar influence thrived. The results seemed beneficial, but gross distortions built into the system remained. And true to form, Washington politicians are only too anxious to solve the problems cropping up with window dressing while failing to understand and deal with the underlying flawed policy. Protectionism, fixing exchange rates, punitive tariffs, politically motivated sanctions, corporate subsidies, international trade management, price controls, interest rate and wage controls, super- nationalist sentiments, threat of force, and even war are resorted to, all to solve the problems artificially created by a deeply flawed monetary and economic system. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:35 In the short run, the issuer of a fiat reserve currency can accrue great economic benefits. In the long run, it poses a threat to the country issuing the world currency. In this case, that is the United States. As long as foreign countries take our dollars in return for real goods, we come out ahead. This is a benefit many in Congress fail to recognize as they bash China for maintaining a positive trade balance with us. But this leads to a loss of manufacturing jobs to overseas markets as we become more dependent on others and less self-sufficient. Foreign countries accumulate our dollars due to their high savings rates and graciously lend them back to us at low interest rates to finance our excessive consumption and our wars. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:38 Price inflation is raising its ugly head, and the NASDAQ bubble, generated by easy money, has burst. The housing bubble likewise created is deflating. Gold prices have doubled, and Federal spending is out of sight, with zero political will to rein it in. The trade deficit last year was over $728 billion. A $2 trillion war is raging, and plans are being laid to expand the war into Iran and possibly Syria. The only restraining force will be the world’s rejection of the dollar. It is bound to come and create conditions worse than 1979–1980, which required 21 percent interest rates to correct. But everything possible will be done to protect the dollar in the meantime. We have a shared interest with those who hold our dollars to keep the whole charade going. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:73 Believe me, if everybody benefited equally, there would be scant outcry over a little bribery and influence peddling. As our country grows poorer and more indebted, fewer people benefit. The beneficiaries are not the hard- working, honest people who pay the taxes. The groups that master the system of lobbying and special interest legislation are the ones who truly benefit. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:77 Under these circumstances, it is no wonder a system of runaway lobbying and special interests has developed. Add this to the military industrial complex that developed over the decades due to a foreign policy of perpetual war and foreign military intervention, and we shouldn’t wonder why there is such a powerful motivation to learn the tricks of the lobbying trade and why former Members of Congress and their aides become such high- priced commodities. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:81 The problem of special interest government that breeds corruption comes from our lack of respect for the Constitution in the first place. So what do we do? We further violate the Constitution, rather than examine it for guidance as to the proper role of the Federal Government. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:86 Today, though, any new rules designed to restrain special interest favoritism will only push the money further under the table. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:90 Think of how this undeclared war has contributed to our national deficit, undermined military preparedness, antagonized our allies, and exposed us to an even greater threat from those who resent our destructive occupation. Claiming we have no interest in the oil of the entire Middle East hardly helps our credibility throughout the world. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:91 The system of special interest government that has evolved over the last several decades has given us a national debt of over $8 trillion, a debt that now expands by over $600 billion every year. Our total obligations are estimated to be between $15 trillion and $20 trillion. Most people realize that the Social Security system, the Medicare system and the new prescription drug program are unfunded. Thousands of private pension funds are now being dumped on the U.S. Government and American taxpayers. We are borrowing over $700 billion each year from foreigners to finance this extravagance, and we now qualify as the greatest international debtor Nation in history. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:92 Excessive consumption using borrowed money is hardly the way to secure a sound economy. Instead of reining in government spending, Congress remains oblivious to the financial dangers and panders to special interests by offering no resistance whatsoever to every request for new spending. Congress spends $2.7 trillion annually in an attempt to satisfy everyone’s demands. The system has generated over $200 trillion in derivatives. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:94 As current policy further erodes the budget, special interests and Members of Congress become even more aggressive in their efforts to capture a piece of the dwindling economic pie. That success is the measure of effectiveness that guarantees a Member’s reelection. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:95 The biggest ripoff of all, the paper money system that is morally and economically equivalent to counterfeiting, is never questioned. It is the deceptive tool for transferring billions from the unsuspecting poor and middle class to the special-interest rich, and in the process the deficit-propelled budget process supports the spending demands of all the special interests, left and right, welfare and warfare, while delaying payment to another day and sometimes even to another generation. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:96 The enormous sums spent each year to support the influential special interests expand exponentially and no one really asks how it is accomplished. Raising taxes to balance the budget is out of the question, and rightfully so. Foreigners have been generous in their willingness to loan us most of what we need, but even that generosity is limited and may well diminish in the future. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:97 But if the Federal Reserve did not pick up the slack and create huge amounts of new credit and money out of thin air, interest rates would rise and call a halt to the charade. The people who suffer from a depreciated dollar don’t understand why they suffer, while the people who benefit promote the corrupt system. The wealthy clean up on Wall Street and the unsophisticated buy in at the market tops. Wealth is transferred from one group to another, and it is all related to the system that allows politicians and the central banks to create money out of thin air. It is literally legalized counterfeiting. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:107 Whether government programs are promoted for good causes, helping the poor, or bad causes, permitting a military industrial complex to capitalize on war profits, the principles of the market are undermined. Eventually, nearly everyone becomes dependent on the system of deficits, borrowing, printing press money, and the special interest budget process that distributes the loot by majority vote. interest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:108 Today, most business interests and the poor are dependent on government handouts. Education and medical care is almost completely controlled and regulated by an overpowering central government. We have come to accept our role as world policeman and nation builder with little question despite the bad results and inability to pay the bills. interest Debt Addiction 1 March 2006    2006 Ron Paul 6:3 Debt is like an addiction: the political pain of withdrawal keeps politicians spending, so they do not offend any special interest groups demanding that government benefits continue. As with all addictions, long-term dependency on a dangerous substance can kill the patient. Dependency on bad policy also can destroy the goose that many believe lays the golden egg. interest 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. interest Introduction Of The Sunshine In Monetary Policy Act 7 March 2006    2006 Ron Paul 10:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Sunshine in Monetary Policy Act, which requires the Federal Reserve to resume reporting the monetary measure known as M3. M3 consists of M1 (M1 is currency in circulation plus travelers’ checks, demand deposits, Negotiable Order of Withdrawal (NOW) accounts, and similar interest-earning checking account balances) plus M2 (M2 is M1 plus household holdings of savings deposits, small time deposits, and retail money market mutual funds balances except for balances held in IRA and Keogh accounts) plus institutional money market mutual fund balances and managed liabilities of deposits consisting of large time deposits, repurchase agreements, and Eurodollars. interest Introduction Of The Sunshine In Monetary Policy Act 7 March 2006    2006 Ron Paul 10:4 Whatever lack of interest policymakers are currently displaying in M3 is no doubt related to the mistaken perception that the Federal Reserve Board has finally figured out how to effectively manage a fiat currency. This illusion exists largely because the effects of the Fed’s inflationary polices are concentrated in malinvestments in specific sectors of the economy, leading to “bubbles” such as the one that occurred in the stock market in the late nineties and the bubble that many believe is occurring in the current real estate market. When monetary inflation is reflected in sector- specific bubbles, it is easier to pretend that the bubbles are caused by problems specific to those sectors, instead of reflecting the problems inherent in a fiat currency system. Once the damage to our economy done by our reliance on fiat currency becomes clear, I am certain that policymakers will once again take more interest in M3. interest Making The World Safe For Christianity 28 March 2006    2006 Ron Paul 19:7 The Muslim world is not fooled by our talk of spreading democracy and values. The evidence is too overwhelming that we do not hesitate to support dictators and install puppet governments when it serves our interests. When democratic elections result in the elevation of a leader or a party not to our liking, we do not hesitate for a minute to undermine that government. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:7 Since 2001, we have spent over $300 billion and occupied two Muslim nations, Afghanistan and Iraq. We are poorer, but certainly not safer, for it. We invaded Afghanistan to get Osama bin Laden, the ringleader behind 9/11. This effort has been virtually abandoned. Even though the Taliban was removed from power in Afghanistan, most of the country is now occupied and controlled by warlords who manage a drug trade bigger than ever before. Removing the Taliban from power in Afghanistan actually served the interests of Iran, the Taliban’s arch- enemy, more than our own. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:20 Iran’s history is being ignored just as we ignored Iraq’s history. This ignorance or deliberate misrepresentation of our recent relationship to Iraq and Iran is required to generate the fervor needed to attack once again a country that poses no threat to us. Our policies toward Iran have been more provocative than those toward Iraq. Yes, President Bush labeled Iran part of the axis of evil and unnecessarily provoked their anger at us. But our mistakes with Iran started a long time before this President took office. In 1953, our CIA, with the help of the British, participated in overthrowing the democratic- elected leader, Mohammed Mossadegh. We placed in power the Shah. He ruled ruthlessly but protected our oil interests, and for that, we protected him. That is, until 1979. We even provided him with Iran’s first nuclear reactor. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:28 We forget that the weapons we feared Saddam Hussein had were supplied to him by the United States, and we refused to believe U.N. inspectors and the CIA that he no longer had them. Likewise, Iran received her first nuclear reactor from us; now we are hysterically wondering if some day she might decide to build a bomb in self-interest. Anti-Iran voices beating the drums of confrontation distort the agreement made in Paris and the desire of Iran to restart the enrichment process. Their suspension of the enrichment process was voluntary and not a legal obligation. Iran has an absolute right under the Nuclear Proliferation Treaty to develop and use nuclear power for peaceful purposes, and this is now said to be an egregious violation of the NPT. It is the U.S. and her allies that are distorting and violating the Nuclear Proliferation Treaty. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:37 Just as the invasion of Iraq inadvertently served the interests of the Iranians, military confrontation with Iran will have unintended consequences. The successful alliance engendered between the Iranians and the Iraqi majority Shiia will prove a formidable opponent for us in Iraq as that civil war spreads. Shipping in the Persian Gulf through the Straits of Hormuz may well be disrupted by the Iranians in retaliation for any military confrontation. Since Iran would be incapable of defending herself by conventional means, it seems logical that they might well resort to terrorist attacks on us here at home. They will not passively lie down, nor can they be easily destroyed. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:40 Interestingly, many early supporters of the Iraq War are now highly critical of the President, having been misled as to reasons for the invasion and occupation. But these same people are only too eager to accept the same flawed arguments for our need to undermine the Iranian government. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:52 Excessive spending to finance the war causes deficits to explode. There are never enough tax dollars available to pay the bills, and since there are not enough willing lenders and dollars available, the Federal Reserve must create new money out of thin air and new credit for buying Treasury bills to prevent interest rates from rising too rapidly. Rising rates would tip off everyone that there are not enough savings or taxes to finance the war. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:58 Though many Americans are starting to feel the economic pain of paying for this war through inflation, the real pain has not yet arrived. We generally remain fat and happy with a system of money and borrowing that postpones the day of reckoning. Foreigners, in particular the Chinese and Japanese, gladly participate in the charade. We print the money and they take it, as do the OPEC Nations, and provide us with consumer goods and oil. Then they loan the money back to us at low interest rates, which we use to finance the war and our housing bubble and excessive consumption. This recycling and perpetual borrowing of inflated dollars allow us to avoid the pain of high taxes to pay for our war and welfare spending. It is fine until the music stops and the real costs are realized, with much higher interest rates and significant price inflation. That is when outrage will be heard and the people will realize we cannot afford the humanitarianism of the neo-conservatives. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:61 Economic interests almost always are major reasons for wars being fought. Noble and patriotic causes are easier to sell to a public who must pay and provide cannon fodder to defend the financial interests of a privileged class. The fact that Saddam Hussein demanded Euros for oil in an attempt to undermine the U.S. dollar is believed by many to be one of the ulterior motives for our invasion and occupation of Iraq. Similarly, the Iranian oil burse now about to open may be seen as a threat to those who depend on maintaining the current monetary system with the dollar as the world’s reserve currency. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:62 The theory and significance of “peak oil” is believed to be an additional motivating factor for the United States and Great Britain wanting to maintain firm control over the oil supplies in the Middle East. The two nations have been protecting our oil interests in the Middle East for nearly 100 years. With diminishing supplies and expanding demands, the incentive to maintain a military presence in the Middle East is quite strong. Fear of China and Russia moving in to this region to consume more control alarms those who don’t understand how a free market can develop substitutes to replace diminishing resources. Supporters of the military efforts to maintain control over large regions of the world to protect oil fail to count the real cost of energy once the DOD budget is factored in. Remember, invading Iraq was costly and oil prices doubled. Confrontation in Iran may evolve differently, but we can be sure it will be costly and oil prices will rise significantly. interest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:66 The conclusion we should derive from this is simple. It is in our best interest to pursue a foreign policy of nonintervention. A strict interpretation of the Constitution mandates it. The moral imperative of not imposing our will on others, no matter how well intentioned, is a powerful argument for minding our own business. The principle of self-determination should be respected. Strict nonintervention removes the incentives for foreign powers and corporate interests to influence and control our policies overseas. We can’t afford the cost that intervention requires, whether through higher taxes or inflation. If the moral arguments against intervention don’t suffice for some, the practical arguments should. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:2 For 20 years, between 1980 and 2000, the price of gold was rarely mentioned. There was little interest, and the price was either falling or remaining steady. Since 2001, however, interest in gold has soared along with its price. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:3 With the price now over $600 an ounce, a lot more people are becoming interested in gold as an investment and an economic indicator. Much can be learned by understanding what the rising dollar price of gold means. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:4 The rise in gold prices, from $250 per ounce in 2001 to over $600 today has drawn investors and speculators into precious metals markets. Though many already have made handsome profits, buying gold, per se, should not be touted as a good investment. After all, gold earns no interest, and its quality never changes. It is static and does not grow as sound investments should. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:8 One of the characteristics of commodity money, one that originated naturally in the marketplace, is that it must serve as a store of value. Gold and silver meet the test; paper does not. Because of this profound difference, the incentive and wisdom of holding emergency funds in the form of gold becomes attractive when the official currency is being devalued. It is more attractive than trying to save wealth in the form of a fiat currency, even when earning some nominal interest. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:9 The lack of earned interest on gold is not a problem once people realize the purchasing power of their currency is declining faster than the interest rates they might earn. The purchasing power of gold can rise even faster than increases in the cost of living. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:23 The incentive for central bankers to create new money out of thin air is two-fold. One is to practice central planning through the manipulation of interest rates. The second is to monetize the escalated Federal debt politicians create and thrive on. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:27 Because of a lack of interest and poor understanding of monetary policy, Congress has expressed essentially no concern about the significant change in reporting statistics on the money supply. Beginning in March, though planned before Bernanke arrived at the Fed, the central bank discontinued compiling and reporting monetary aggregates known as M3. M3 is the best description of how quickly the Fed is creating new money and credit. Common sense tells us that a government central bank creating new money out of thin air depreciates the value of each dollar in circulation. Yet this report is no longer available to us, and Congress makes no demands to receive it. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:29 The fact that our money supply is rising significantly cannot be hidden from the markets. The response in time will drive the dollar down while driving interest rates and commodity prices up. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:32 Denying us statistical information, manipulating interest rates, and artificially trying to keep gold prices in check won’t help in the long run. If the markets are fooled only on the short term, it only means the adjustments will be much more dramatic later on, and in the meantime other market imbalances develop. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:38 Special interest groups, who vigorously compete for Federal dollars, want to perpetuate the system rather than admit to a dangerous addiction. Those who champion welfare for the poor, entitlements for the middle class or war contracts for the military industrial complex all agree on the so- called benefits bestowed by the Fed’s power to counterfeit fiat money. interest 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. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:50 Historically paper money never has lasted for long periods of time, while gold has survived thousands of years of attacks by political interests and big government. In time the world once again will restore trust in the monetary system by making some currency as good as gold. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:53 Whether it is war or welfare payments, it always means higher taxes, inflation and debt. Whether it is the extraction of wealth from the productive economy, the distortion of the market by interest rate manipulation or spending for war and welfare, it can’t happen without infringing upon personal liberty. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:62 Interestingly, the cost of oil and gas is actually much higher than we pay at the retail level. Much of the DOD budget is spent protecting “our” oil supplies; and if such spending is factored in, gasoline probably costs us more than $5 a gallon. The sad irony is that the military efforts to secure cheap oil supplies inevitably backfire and actually curtail supplies and boost prices at the pump. The waste and fraud in issuing contracts to large corporations for work in Iraq only adds to price increases. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:65 Since keeping interest rates below market levels is synonymous with new money creation by the Fed, the resulting business cycle, higher cost of living and job losses all can be laid at the doorstep of the Fed. This burden hits the poor the most, making Fed taxation by inflation the worst of all regressive taxes. Statistics about revenues generated by the income tax are grossly misleading. In reality, much harm is done by our welfare-warfare system supposedly designed to help the poor and tax the rich. Only sound money can rectify the blatant injustice of this destructive system. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:75 Interest rate manipulation by central banks helps the rich, the banks, the government, and the politicians. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:85 These were momentous monetary events, and every knowledgeable person worldwide paid close attention. Major changes were endured in 1979 and 1980 to save the dollar from disintegration. This involved a severe recession, interest rates over 21 percent, and general price inflation of 15 percent. interest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:88 If ever there was a time to get a handle on what sound money is and what it means, that time is today. Inflation, as exposed by high gold prices, transfers wealth from the middle class to the rich, as real wages decline while the salaries of CEOs, movie stars, and athletes skyrocket, along with the profits of the military industrial complex, the oil industry, and other special interests. interest Disadvantages To Intervention 26 April 2006    2006 Ron Paul 26:13 Another reason why interventionism is so bad for us, it encourages special interests to get behind our foreign policy and endorse what we are doing and influence what we are doing, possibly another country and possibly some industry that might influence us. interest Bill Would Authorize Force 26 April 2006    2006 Ron Paul 31:9 Both parties are involved in this. It is not just this administration that has promoted this type of foreign policy, which, quite frankly, I see is not in the best interest of our country. This is why I am a strong advocate of minding our own business. Don’t get involved in nation building. Don’t police the world. Don’t get involved in the internal affairs of the other nations. Otherwise, we have a big job ahead of us. interest What To Do About Soaring Oil Prices 2 May 2006    2006 Ron Paul 32:7 Third, we must remember that prices of all things go up because of inflation. Inflation, by definition, is an increase in the money supply. The money supply is controlled by the Federal Reserve and responds to the deficits Congress creates. When deficits are excessive, as they are today, the Fed creates new dollars out of thin air to buy Treasury bills and keeps interest rates artificially low. But when new money is created out of nothing, the money already in circulation loses value. interest Jack Abramoff Scandal 3 May 2006    2006 Ron Paul 33:1 Mr. PAUL. Mr. Chairman, the public outrage over the Jack Abramoff scandal presented Congress with an opportunity to support real reform by addressing the root cause of the corruption: the amount of money and power located in Washington, D.C. A true reform agenda would focus on ending federal funding for unconstitutional programs, beginning with those programs that benefit wealthy corporations and powerful special interests. Congress should also change the way we do business in the House by passing the Sunlight Rule (H. Res. 709). The Sunlight Rule ensures that members of the House of Representatives and the American public have adequate time to read and study legislation before it is voted upon. Ending the practice of rushing major legislation to the House floor before members have had a chance to find out the details of bills will do more to improve the legislative process and restore public confidence in this institution than will imposing new registration requirements on lobbyists or making staffers waste their time at an “ethics class.” interest Jack Abramoff Scandal 3 May 2006    2006 Ron Paul 33:2 I am disappointed, but not surprised, to see that Congress is failing to go after the root cause of corruption. Instead, we are considering placing further burdens on the people’s exercise of their free speech rights. H.R. 4975 will not deter corrupt lobbyists, staffers, or members. What H.R. 4975 will do is discourage ordinary Americans from participating in the policy process. Among the ways H.R. 4975 silences ordinary Americans is by requiring grassroots citizens’ action organizations to divulge their membership lists so Congress can scrutinize the organizations’ relationships with members of Congress. The result of this will be to make many Americans reluctant to support or join these organizations. Making it more difficult for average Americans to have their voices heard is an odd response to concerns that Congress is more responsive to special interests than to the American public. interest Tribute To Calhoun High School 11 May 2006    2006 Ron Paul 34:5 In 2001, the Center for Civic Education conducted a survey of We the People alumnae, focusing on voting and civic participation. Among the former students, 82 percent reported that they voted in the November 2000 election. In addition, 77 percent had voted in previous elections. By contrast, the National Election Studies reported 48 percent turnout in the November 2000 election by other respondents aged 18–30. Research also indicates that participation in We the People programs helps encourage greater interest in politics and public affairs, increased involvement in government decision making at all levels, greater willingness to respect the opinions and rights of others, and better preparation for the privileges and responsibilities of democratic citizenship. More information about the program may be found at the Center for Civic Education website, http://www.civiced.org/ wethepeople.php. interest Introduction Of The Steel Financing Fairness Act 15 June 2006    2006 Ron Paul 44:6 Ironically, many of the supporters of these foreign giveaways claim to be promoters of free trade. This claim makes as much sense as a supporter of higher taxes and spending claiming to be a fiscally conservative supporter of limited government. Free trade is the peaceful exchange of goods and services across borders unhampered by government interference. Taxing American workers to support their overseas competitors is not free trade. Instead, it is corporatism designed to benefit certain politically powerful interests at the expense of American entrepreneurs and workers. interest Agreeing To Talk To Iran Unconditionally 22 June 2006    2006 Ron Paul 48:10 We need to remember that decisionmaking power under Iran’s Government is not entirely concentrated in the President. We are all familiar with the inflammatory rhetoric of President Ahmadinejad, but there are others, government bodies in Iran, that are more moderate and eager for dialogue. We have already spent hundreds of billions of dollars on a war in the Middle East. We cannot afford to continue on the path of conflict over dialogue and peaceful resolution. Unnecessarily threatening Iran is not in the interest of the United States and is not in the interest of world peace. interest Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:6 Generally speaking, there are two controlling forces that determine the nature of government: the people’s concern for their economic self interests; and the philosophy of those who hold positions of power and influence in any particular government. Under Soviet Communism the workers believed their economic best interests were being served, while a few dedicated theoreticians placed themselves in positions of power. Likewise, the intellectual leaders of the American Revolution were few, but rallied the colonists to risk all to overthrow a tyrannical king. interest Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:13 Once we concede government has this “legitimate” function and can be manipulated by a majority vote, the various special interests move in quickly. They gain control to direct government largesse for their own benefit. Too often it is corporate interests who learn how to manipulate every contract, regulation and tax policy. Likewise, promoters of the “progressive” agenda, always hostile to property rights, compete for government power through safety, health, and environmental initiatives. Both groups resort to using government power — and abuse this power — in an effort to serve their narrow interests. In the meantime, constitutional limits on power and its mandate to protect liberty are totally forgotten. interest Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:54 They won’t admit that our invasion has served the interests of Osama Bin Laden. They continue to blame our image problems around the world on a few bad apples. interest Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:55 They won’t admit that our invasion has served the interests of Iran’s radical regime. interest Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:71 Constitutional and moral restraints on war should be strictly followed. It is understandable when kings, dictators, and tyrants take their people into war, since it serves their selfish interests — and those sent to fight have no say in the matter. It is more difficult to understand why democracies and democratic legislative bodies, which have a say over the issue of war, so readily submit to the executive branch of government. The determined effort of the authors of our Constitution to firmly place the power to declare war in the legislative branch has been ignored in the decades following WWII. interest Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:73 What about the practical arguments against war, since no one seems interested in exerting constitutional or moral restraints? Why do we continue to fight prolonged, political wars when the practical results are so bad? Our undeclared wars since 1945 have been very costly, to put it mildly. We have suffered over one hundred thousand military deaths, and even more serious casualties. Tens of thousands have suffered from serious war-related illnesses. Sadly, we as a nation express essentially no concern for the millions of civilian casualties in the countries where we fought. interest 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. interest Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:79 We must move quickly toward a more traditional American foreign policy of peace, friendship, and trade with all nations; entangling alliances with none. We must reject the notion that we can or should make the world safe for democracy. We must forget about being the world’s policeman. We should disengage from the unworkable and unforgiving task of nation building. We must reject the notion that our military should be used to protect natural resources, private investments, or serve the interest of any foreign government or the United Nations. Our military should be designed for one purpose: defending our national security. It’s time to come home now, before financial conditions or military weakness dictates it. interest Internet Gambling Prohibition and Enforcement Act 11 July 2006    2006 Ron Paul 53:5 Sometimes people say that this prohibition that is proposed is designed to protect other interests because we certainly aren’t going to get rid of gambling, so we might get rid of one type of gambling, but actually enhance the other. interest National Aeronautics And Spaca Administration 19 July 2006    2006 Ron Paul 59:8 I would like now to close with a particular quote that is very pertinent for what we are doing here with this resolution. This comes from a famous author of the last century, who might have been one of the most famous, who wrote a book that many Members of this Congress may well have read. The interesting thing about this quote, it comes from an individual who was not much in favor of big government. As a matter of fact, she was in favor of very, very limited government, and she introduced the ideas of libertarianism to millions of Americans. interest Noninterventionist Policy — Part 4 19 July 2006    2006 Ron Paul 65:2 I just want to make a couple of comments before yielding. It has been well advertised about the three prisoners that have been taken, the three Israeli prisoners. Everybody in the country knows about it. What I find a bit interesting is that some people estimate between 8,000 and 10,000 Palestinians and Lebanese are in prisons and under the authority of the Israeli police and government. interest Whom to Blame 19 July 2006    2006 Ron Paul 66:26 So even if you totally disagree with our aggressive empire building and policing the world, let me tell you, I am going to win the argument, because we are running out of money. We are in big debt, and we are borrowing it. We borrowed $3 billion a day from countries like China and Japan and Saudi Arabia to finance this horrendous debt. And it won’t be, it can’t be continued. The dollar will eventually weaken. You are going to have horrendous inflation. Interest rates are going to go up, and it is going to be worse than the stagflation of the 1970s. interest H.R. 5068, the Export-Import Reauthorization Act 25 July 2006    2006 Ron Paul 69:13 Similarly, the beneficiaries of Eximbank are visible to all. What is not seen is the products that would have been built, the businesses that would have been started, and the jobs that would have been created had the funds used for the Eximbank been left in the hands of consumers. Leaving the resources in the private sector ensures the resources will be put to the use most highly valued by individual consumers. In contrast, when the government diverts resources into the public sector via programs such as the Eximbank, their use is determined by bureaucrats and politically powerful special interests, resulting in a distorted market and a misallocation of resources. By distorting the market and preventing resources from achieving their highest valued use, Eximbank actually costs Americans jobs and reduces America’s standard of living! interest H.R. 5068, the Export-Import Reauthorization Act 25 July 2006    2006 Ron Paul 69:16 In conclusion, Mr. Speaker, Eximbank distorts the market by allowing government bureaucrats to make economic decisions in place of individual consumers. Eximbank also violates basic principles of morality, by forcing working Americans to subsidize the trade of wealthy companies that could easily afford to subsidize their own trade, as well as subsidizing brutal governments like Red China and the Sudan. Eximbank also violates the limitations on congressional power to take the property of individual citizens and use it to benefit powerful special interests. It is for these reasons that I urge my colleagues to reject H.R. 5068, the Export-Import Bank Reauthorization Act. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:9 Nothing will change in Washington until it is recognized that the ultimate driving force behind most politicians is obtaining and holding power, and money from special interests drives the political process. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:10 Money and power are important only because the government wields power not granted by the Constitution. A limited constitutional government would not tempt special interests to buy the politicians who wield power. The whole process feeds on itself. Everyone is rewarded by ignoring constitutional restraints while expanding and complicating the entire bureaucratic state. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:11 Even when it is recognized that we are traveling down the wrong path, the lack of political courage and the desire for reelection results in ongoing support for the pork-barrel system that serves special interests. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:15 It is virtually impossible to find anyone who supports hands-off free trade defended by the moral right of all citizens to spend their money as they see fit without being subject to any special interest. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:18 On top of this, the daily operation of Congress reflects the power of special interests, not the will of the people, regardless of which party is in power. Critically important legislation comes up for votes late in the evening without much warning, leaving Members little chance to read or study the bills. Key changes are buried in conference reports, often containing new legislation not even mentioned in either the House or the Senate versions. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:58 Before the U.S.-Israeli invasion of Lebanon, Hezbollah was supported by 20 percent of the population. Now its revered by 80 percent. A democratic election in Lebanon cannot now serve the interests of the U.S. or Israel; it would only support the cause of radical clerics in Iran. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:64 A much stronger case can be made that our policy of protecting our worldwide interest actually does the opposite by making us weaker, alienating our allies, inciting more hatred and provoking our enemies. The more we have interfered in the Middle East the past 50 years, the greater the danger has become for an attack on us. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:67 Yet, today, Iraq is infested with al Qaeda, achieving exactly the opposite of what we sought to do. We were told that we needed to secure our oil to protect our economy and to pay for our invasion and occupation. Instead, the opposite has resulted. Oil production is down. Oil prices are up, and no oil profits have been used to pay the bills. We were told that a regime change in Iraq would help us in our long-time fight with Iran, yet everything we have done in Iraq has served the interests of Iran. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:73 Many reasons are given for our preemptive wars and military approach for spreading the American message of freedom and prosperity, which is an obvious impossibility. Our vital interests are always cited for justification, and it is inferred that those who do not support our militancy are unpatriotic. Yet the opposite is actually the case: Wise resistance to one’s own government doing bad things requires a love of country, devotion to idealism and respect for the rule of law. interest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:89 But economic law eventually will prevail. Runaway military and entitlement spending cannot be sustained. We can tax the private economy only so much, and borrowing from foreigners is limited by the total foreign debt and our current account deficit. It will be difficult to continue this spending spree without significantly higher interest rates and further devaluation of the dollar. This all spells more trouble for our economy and certainly higher inflation. Our industry base is shattered, and our borders remain open to those who exploit our reeling entitlement system. interest Senior Citizens’ Improved Quality Of Life Act 19 September 2006    2006 Ron Paul 79:4 Ensuring that Social Security trust fund money is used only for Social Security. H.R. 5211 requires that all money raised for the Social Security trust fund will be spent in payments to beneficiaries, with excess receipts invested in interest-bearing certificates of deposit. This will keep Social Security trust fund money from being diverted to other programs, as well as allow the fund to grow by providing for investment in interest-bearing instruments. Ending the raid of the Social Security trust fund is a vital first step in any serious Social Security reform plan. Protecting the trust fund also demonstrates our commitment to putting the priorities of the American people ahead of special interest pork barrel spending. interest Military Personnel Financial Services Protection Act 20 September 2006    2006 Ron Paul 82:4 Before voting on S. 418, Congress should consider whether it is in the best interests of our armed services to substitute our judgment for theirs by banning a financial product that the armed services deem well-suited for their financial security. interest Military Personnel Financial Services Protection Act 20 September 2006    2006 Ron Paul 82:7 My colleagues may be interested to know that the idea for this bill comes from Marcella Henke, an administrator of Jackson County Hospital, a critical access hospital in my congressional district. Ms. Henke conceived of this idea as a way to meet the increasing demand for assisted living services in rural areas and provide hospitals with a profitable way to use beds not being used for critical access purposes. I urge my colleagues to embrace this practical way of strengthening rural health care without increasing federal expenditures by cosponsoring the Enhanced Options for Rural Health Care Act. interest Introduction Of The Enhanced Options For Rural Health Care Act 25 September 2006    2006 Ron Paul 85:3 My colleagues may be interested to know that the idea for this bill comes from Marcella Henke, an administrator of Jackson County Hospital, a critical access hospital in my congressional district. Ms. Henke conceived of this idea as a way to meet the increasing demand for assisted living services in rural areas and provide hospitals with a profitable way use beds not being used for critical access purposes. I urge my colleagues to embrace this practical way of strengthening rural health care without increasing federal expenditures by cosponsoring the Enhanced Options for Rural Health Care Act (H.R. 6154). interest President Would Define Enemy Combatants 27 September 2006    2006 Ron Paul 88:6 Mr. Speaker, this bill will leave the men and women of our military and intelligence services much more vulnerable overseas, which is one reason many career military and intelligence personnel oppose it. We have agreed to recognize the Geneva Convention because it is a very good guarantee that our enemy will do likewise when U.S. soldiers are captured. It is in our own interest to adhere to these provisions. Unilaterally changing the terms of how we treat those captured in battle will signal to our enemies that they may do the same. Additionally, scores of Americans working overseas as aid workers or missionaries who may provide humanitarian assistance may well be vulnerable to being named “unlawful combatants” by foreign governments should those countries adopt the criteria we are adopting here. Should aid workers assist groups out of favor or struggling against repressive regimes overseas, those regimes could well deem our own citizens “unlawful combatants.” It is a dangerous precedent we are setting. interest Congratulations To Point Comfort Elementary School 28 September 2006    2006 Ron Paul 93:2 The No Child Left Behind-Blue Ribbon Schools Program recognizes outstanding public and private schools that are either academically superior or have demonstrated dramatic and consistent gains in student achievement. The Department of Education selects Blue Ribbon Schools based on nominations submitted by the states. My colleagues may be interested to know that every school nominated by Texas received a Blue Ribbon Schools award. interest Congratulations To Katy Elementary 29 September 2006    2006 Ron Paul 96:2 The No Child Left Behind-Blue Ribbon Schools Program recognizes outstanding public and private schools that are either academically superior or have demonstrated dramatic and consistent gains in student achievement. The Department of Education selects Blue Ribbon Schools based on nominations submitted by the states. My colleagues may be interested to know that every school nominated by Texas received a Blue Ribbon Schools award. interest Milton Friedman 6 December 2006    2006 Ron Paul 100:17 “Now, when anybody starts talking about this [an all-volunteer force] he immediately shifts language. My army is ‘volunteer,’ your army is ‘professional,’ and the enemy’s army is ‘mercenary.’ All these three words mean exactly the same thing. I am a volunteer professor, I am a mercenary professor, and I am a professional professor. And all you people around here are mercenary professional people. And I trust you realize that. It’s always a puzzle to me why people should think that the term ‘mercenary’ somehow has a negative connotation. I remind you of that wonderful quotation of Adam Smith when he said, ‘You do not owe your daily bread to the benevolence of the baker, but to his proper regard for his own interest.’ And this is much more broadly based. In fact, I think mercenary motives are among the least unattractive that we have.” (p. 366) interest Introduction Of The Social Security Preservation Act 4 January 2007    2007 Ron Paul 4:1 Mr. PAUL. Madam Speaker, I rise to protect the integrity of the Social Security trust fund by introducing the Social Security Preservation Act. The Social Security Preservation Act is a rather simple bill which states that all monies raised by the Social Security trust fund will be spent in payments to beneficiaries, with excess receipts invested in interest-bearing certificates of deposit. This will help keep Social Security trust fund monies from being diverted to other programs, as well as allow the fund to grow by providing for investment in interest- bearing instruments. interest Introduction Of The Social Security Preservation Act 4 January 2007    2007 Ron Paul 4:3 With federal deficits reaching historic levels the pressure from special interests for massive new raids on the trust fund is greater than ever. Thus it is vital that Congress act now to protect the trust fund from big spending, pork- barrel politics. Social Security reform will be one of the major issues discussed in this Congress and many of my colleagues have different ideas regarding how to best preserve the long-term solvency of the program. However, as a medical doctor, I know the first step in treatment is to stop the bleeding, and the Social Security Preservation Act stops the bleeding of the Social Security trust fund. I therefore call upon all my colleagues, regardless of which proposal for long-term Social Security reform they support, to stand up for America’s seniors by cosponsoring the Social Security Preservation Act. interest Identity Theft Protection Act 5 January 2007    2007 Ron Paul 8:17 Second, the Federal Government has been creating proprietary interests in private information for certain State-favored special interests. Perhaps the most outrageous example of phony privacy protection is the “medical privacy’ ” regulation, that allows medical researchers, certain business interests, and law enforcement officials access to health care information, in complete disregard of the Fifth Amendment and the wishes of individual patients! Obviously, “privacy protection” laws have proven greatly inadequate to protect personal information when the government is the one seeking the information. interest Escalation Is Hardly The Answer 11 January 2007    2007 Ron Paul 12:6 It is interesting to note that one excuse given for our failure is leveled at the Iraqis themselves: they have not done enough, we are told, and are difficult to train. Yet no one complains that the Mahdi or the Kurdish militias, the Badr Brigade, the real Iraqi Government, not our appointed government, are not well trained. Our problems obviously have nothing to do with training Iraqis to fight, but instead with loyalties and motivations. interest College Student Relief Act Of 2007 17 January 2007    2007 Ron Paul 19:1 Mr. PAUL. Madam Speaker, anyone who knows a recent college graduate is well aware of the way many young people struggle to pay their student loans. By slightly reducing the interest rate on student loans, H.R. 5, while far from perfect, will help ease this burden. A commendable feature of this bill is that, instead of placing new burdens on taxpayers, it pays for the reduction in interest rates by reducing subsidies to financial institutions. Thus, the bill does not increase the deficit, taxes, or the size or scope of government. interest College Student Relief Act Of 2007 17 January 2007    2007 Ron Paul 19:2 All-too-often, government programs, which the taxpaying public believes help lower-income Americans, actually provide government subsidies for politically powerful business interests. For example, in the student loan program under discussion today, taxpayer dollars are provided to financial institutions in return for those institutions agreeing to provide student loans under terms set by the government. By reducing subsidies for financial institutions in order to benefit recent graduates, H.R. 5 takes a step toward ensuring the student loan program actually focuses on helping students and recent graduates, instead of using taxpayer dollars for a disguised form of corporate welfare. interest Everyone Supports The Troops 18 January 2007    2007 Ron Paul 20:3 Instead of questioning who has the best interest of our troops at heart, we should be debating which policy is best for our country. Defensive wars to preserve our liberties, fought only with proper congressional declarations are legitimate. Casualties under such circumstances still are heartbreaking, but they are understandable. Casualties that occur in undeclared, unnecessary wars, however, are bewildering. Why must so many Americans be killed or hurt in Iraq when our security and our liberty were never threatened? interest Everyone Supports The Troops 18 January 2007    2007 Ron Paul 20:4 Cliches about supporting the troops are designed to distract from failed policies, policies promoted by powerful special interests that benefit from war, anything to steer the discussion away from the real reasons the war in Iraq will not end anytime soon. interest Don’t Do It, Mr. President 6 February 2007    2007 Ron Paul 21:4 Despite what some think, it won’t serve the interests of Israel. Besides, it is illegal. It is unconstitutional. And, Mr. President, you have no moral authority to do it. interest Introduction Of The Liberty Amendment 7 February 2007    2007 Ron Paul 24:5 Income taxes not only diminish liberty, they retard economic growth by discouraging work and production. Our current tax system also forces Americans to waste valuable time and money on complacence with an ever-more complex tax code. The increased interest in flat-tax and national sales tax proposals, as well as the increasing number of small businesses that questioning the Internal Revenue Service’s (IRS) “withholding” system provides further proof that America is tired of the labyrinthine tax code. Americans are also increasingly fed up with an IRS that continues to ride roughshod over their civil liberties, despite recent “pro-taxpayer” reforms. interest Statement On The Iraq War Resolution 14 February 2007    2007 Ron Paul 26:5 Osama bin Laden has expressed sadistic pleasure with the invasion in Iraq and was surprised that we served his interests above and beyond his dreams on how we responded after the 9/11 attacks. His pleasure comes from our policy of folly, getting ourselves bogged down in the middle of a religious civil war 7,000 miles from home that is financially bleeding us to death. Total costs now are recently estimated to exceed $2 trillion. His recruitment of Islamic extremists has been greatly enhanced by our occupation of Iraq. interest Statement On The Iraq War Resolution 14 February 2007    2007 Ron Paul 26:10 Special interests and the demented philosophy of conquests have driven most wars throughout all of history. Rarely has the cause of liberty, as it was in our own Revolution, been the driving force. In recent decades, our policies have been driven by neoconservative empire radicalism, profiteering in the military-industrial complex, misplaced do-good internationalism, mercantilistic notions regarding the need to control natural resources, and blind loyalty to various governments in the Middle East. interest Introduction Of The Family Education Freedom Act 14 february 2007    2007 Ron Paul 29:9 Clearly, enactment of the Family Education Freedom Act is the best thing this Congress could do to improve public education. Furthermore, a greater reliance on parental expenditures rather than government tax dollars will help make the public schools into true community schools that reflect the wishes of parents and the interests of the students. interest Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:7 Even if prices were held in check, in spite of our monetary inflation, concentrating on CPI distracts from the real issue. We must address the important consequences of Fed manipulation of interest rates. When interests rates are artificially low, below market rates, insidious mal-investment and excessive indebtedness inevitably bring about the economic downturn that everyone dreads. interest Statement for Hearing before the House Financial Services Committee, “Monetary Policy and the State of the Economy” 15 February 2007    2007 Ron Paul 32:16 Explain how interest rates are set. Conservatives profess to support free markets, without wage and price controls. Yet the most important price of all, the price of money as determined by interest rates, is set arbitrarily in secret by the Fed rather than by markets! Why is this policy written in stone? Why is there no congressional input at least? interest The Real Reason To Oppose The Supplemental Appropriation 20 March 2007    2007 Ron Paul 36:4 But Congress, just as clearly, is responsible for making policy, by debating and declaring war, raising and equipping armies, funding military operations, and ending conflicts that do not serve our national interests. interest The Real Reason To Oppose The Supplemental Appropriation 20 March 2007    2007 Ron Paul 36:11 It is amazing to me that this Congress is more intimidated by political propagandists and special interests than the American electorate, who sent a loud, clear message about the war in November. The large majority of Americans now want us out of Iraq. interest We Just Marched In (So We Can Just March Out) 17 April 2007    2007 Ron Paul 40:2 Support for the war came from various special interests that had agitated for an invasion of Iraq since 1998. The Iraq Liberation Act passed by Congress and signed into law by President Clinton stated that getting rid of Saddam Hussein was official U.S. policy. This policy was carried out in 2003. interest Introducing The Enhanced Options For Rural Health Care Act 17 April 2007    2007 Ron Paul 41:3 My colleagues may be interested to know that the idea for this bill comes from Marcella Henke, an administrator of Jackson County Hospital, a critical access hospital in my congressional district. Ms. Henke conceived of this idea as a way to meet the increasing demand for assisted living services in rural areas and provide hospitals with a profitable way to use beds not being used for critical access purposes. I urge my colleagues to embrace this practical way of strengthening rural health care without increasing federal expenditures by cosponsoring the Enhanced Options for Rural Health Care Act. interest Shareholder Vote On Executive Compensation Act 18 April 2007    2007 Ron Paul 43:10 Past government actions have made it more difficult for shareholders to hold CEOs and boards of directors accountable for disregarding shareholder interests by, among other things, wasting corporate resources on compensation packages and golden parachutes unrelated to performance. During the 1980s, so-called corporate raiders helped keep corporate management accountable to shareholders through devices such as “junk” bonds that made corporate takeovers easier. interest Genetic Information Non-discrimination Act 25 April 2007    2007 Ron Paul 44:1 Mr. PAUL. Madam Speaker, the supporters of H.R. 493, the Genetic Information Nondiscrimination Act, are right to be concerned over the possibility that third parties, such as the government or potential employers, will access an individual’s genetic information without consent, and use that information to deny an individual health insurance or other benefits. I have long advocated repealing government laws and polices that allow third parties to access personal information. For example, I have worked to repeal the provision of Federal law giving the Federal Government the power to assign every American a “unique medical health identifier.” I also support repealing the phony “medical privacy” regulations that give law enforcement officials and state-favored private interests the right to access medical records at will. interest Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:8 Concerns have been raised about the new regulator’s independence from the Treasury Department. This is more than a bureaucratic “turf battle” as there are legitimate worries that isolating the regulator from Treasury oversight may lead to regulatory capture. Regulatory capture occurs when regulators serve the interests of the businesses they are supposed to be regulating instead of the public interest. While H.R. 1427 does have some provisions that claim to minimize the risk of regulatory capture, regulatory capture is always a threat where regulators have significant control over the operations of an industry. After all, the industry obviously has a greater incentive than any other stakeholder to influence the behavior of the regulator. interest Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:9 The flip side of regulatory capture is that mangers and owners of highly subsidized and regulated industries are more concerned with pleasing the regulators than with pleasing consumers or investors, since the industries know that investors will believe all is well if the regulator is happy. Thus, the regulator and the regulated industry may form a symbiosis where each looks out for the other’s interests while ignoring the concerns of investors. interest In The Name Of Patriotism (Who Are The Patriots?) 22 May 2007    2007 Ron Paul 55:5 The true patriot is motivated by a sense of responsibility and out of self- interest for himself, his family, and the future of his country to resist government abuse of power. He rejects the notion that patriotism means obedience to the state. Resistance need not be violent, but the civil disobedience that might be required involves confrontation with the state and invites possible imprisonment. interest Opening Statement Committee on Financial Services World Bank Hearing 22 May 2007    2007 Ron Paul 56:2 Like many bureaucracies, the World Bank has constantly attempted to reinvent itself and redefine its mission. Some critics have referred to this as “mission creep.” It is the reaction of self-interested bureaucrats who are intent on saving their jobs at all costs. The non-institutional elements of Bretton Woods, such as the gold-backed dollar standard, have gone by the wayside, but the World Bank and the IMF soldier on. interest Unanticipated Good results (When We leave) 6 June 2007    2007 Ron Paul 57:3 The chaos that this pre-emptive undeclared war has created in Iraq has allowed the al Qaeda to establish a foothold in Iraq and the strategic interests of Iran to be served. The unintended consequences have been numerous. A well-intentioned but flawed policy that ignored credible warnings of how things could go awry has produced conditions that have led to a war dominated by procrastination without victory or resolution in sight. interest Unanticipated Good results (When We leave) 6 June 2007    2007 Ron Paul 57:11 The real problem with our plans to train a faction of Iraqis to carry out our plans for the Middle East is that the majority of Iraqis object and the army trainees are not as motivated as are the members of the various militias. The Kurds have a militia capable of maintaining order in their region. Sadr has a huge militia that is anxious to restore order and have us gone. The Badr brigade is trained to defend its interests. And the Sunnis are armed and determined. Our presence only serves to stir the pot by our troops being a target of nearly all the groups who are positioning themselves for our anticipated departure. interest Unanticipated Good results (When We leave) 6 June 2007    2007 Ron Paul 57:14 It is claimed by some that leaving the Middle East would not serve the interests of Israel. Israel with its nuclear arsenal is quite capable of defending itself under all circumstances. Its dependency on us frequently prevents it from taking action that otherwise may be in its best interests because we do not approve of such actions. Israel’s overtures to Syria and other neighbors would not be road blocked by U.S. policy if we left the Middle East. With us gone Israel would have greater motivation to talk with other Arab countries as they did with Egypt. It just may be that Israel would accept the overtures made by the Arab League for a comprehensive peace. The Arab League might be an acceptable alternative to the U.S. influencing policy in the region. interest Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:6 Legal tender laws may disadvantage average citizens but they do help power-hungry politicians use inflationary monetary policy to expand the government beyond its proper limits. However, the primary beneficiaries of legal tender laws are the special interests who are granted the privilege of producing and controlling the paper money forced on the public via legal tender laws. Legal tender laws thus represent the primary means of reverse redistribution where the wealth of the working class is given, via laws forcing people to use debased money, to well-heeled, politically powerful bankers. interest Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:8 Legal tender laws have reversed that order to where the market follows the lead of Congress. Beginning in the 19th century, Federal politicians sought to enhance their power and enrich their cronies, by using legal tender powers to change the definition of a dollar from a silver-or-gold-backed unit whose value is determined by the market, to a piece of paper produced by the State. The “value” of this paper may be normally backed in part by gold or silver, but its ultimate backing is the power of the State, and its value is determined by the political needs of the State and the powerful special interests who influence monetary policy. interest Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:9 Unfortunately, the Supreme Court failed to protect the American people from Congress’ unconstitutional legal tender laws. Supreme Court Justice, and Lincoln Treasury Secretary, Salmon Chase, writing in dissent in the legal tender cases, summed up the main reason why the Founders did not grant Congress the authority to pass legal tender laws: “The legal tender quality [of money] is only valuable for the purposes of dishonesty.” Justice Chase might have added dishonesty is perpetrated by State-favored interests on the average American. interest Introduction Of The Honest Money Act 15 June 2007    2007 Ron Paul 64:11 Considering the growth of government since the Supreme Court joined Congress in disregarding the constitutional barriers to legal tender laws, can anyone doubt the accuracy of Justice Field’s words? Repeal of legal tender laws would restore constitutional government and protect the people’s right to use a currency chosen by the market because it serves the needs of the people, instead of having to use a currency chosen by the State because it serves the needs of power hungry politicians and special interests. Therefore, I urge my colleges to cosponsor the Honest Money Act. interest Introduction Of The Federal reserve Board Abolition Act 15 June 2007    2007 Ron Paul 65:4 Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of special interests and their own appetite for big government. interest Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:1 Mr. PAUL. Madam Speaker, I rise to introduce the Sunshine in Monetary Policy Act, which requires the Federal Reserve to resume reporting the monetary measure known as M3. M3 consists of M1, M1 is currency in circulation plus travelers’ checks, demand deposits, Negotiable Order of Withdrawal, NOW, accounts, and similar interest-earning checking account balances; M2, M2 is M1 plus household holdings of savings deposits, small time deposits, and retail money market mutual funds balances except for balances held in IRA and Keogh accounts, plus institutional money market mutual fund balances and managed liabilities of deposits consisting of large time deposits, repurchase agreements, and Eurodollars. interest Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:4 Whatever lack of interest policymakers are currently displaying, in M3 is no doubt related to the mistaken perception that the Federal Reserve Board has finally figured out how to effectively manage a fiat currency. This illusion exists largely because the effects of the Fed’s inflationary polices are concentrated in malinvestments in specific sectors of the economy, leading to “bubbles” such as the one that occurred in the stock market in the late nineties and the bubble that many believe is occurring in the current real estate market. When monetary inflation is reflected in sector- specific bubbles, it is easier to pretend that the bubbles are caused by problems specific to those sectors, instead of reflecting the problems inherent in a fiat currency system. Once the damage to our economy done by our reliance on fiat currency becomes clear, I am certain that policymakers will once again take more interest in M3. interest A Man Of Principle 15 June 2007    2007 Ron Paul 67:6 I met Congressman Jones in his office in the Rayburn Office Building some eight months ago. I was impressed then with his grasp of the situation in Iraq and his unqualified love of country and support for our military. Indeed, for the last five years, he is one of only several congressional Republicans who have embraced their constitutional responsibilities to overwatch and hold accountable our executive branch of government. He asks the tough questions and never backs down. The vast majority of our party has long since abrogated this incredibly important aspect of their duty. He well represents his constituents and the best interests of both our country and our military. As President Gerald Ford once said, “Truth is the glue that holds our government together.” Since our first meeting eight months ago, my respect of Walter Jones has multiplied tenfold. interest Opening Statement Committee on Financial Services Paulson Hearing 20 June 2007    2007 Ron Paul 71:5 The recent sharp rise in interest rates may well be signaling the end to the painless easy money decade that has allowed us to finance our extravagant welfare/warfare spending with minimal productive effort and no savings. Monetary inflation and foreign borrowing have allowed us to live far beyond our means – a type of monetary arrangement that always comes to a painful end. interest Opening Statement Committee on Financial Services Paulson Hearing 20 June 2007    2007 Ron Paul 71:10 Since money growth statistics are key to calculating currency depreciation it is interesting to note, in this era of global financial markets, in a world engulfed with only fiat currencies, what total world wide money supply is doing. interest Opening Statement Committee on Financial Services Paulson Hearing 20 June 2007    2007 Ron Paul 71:13 Welfare and warfare – guns and butter philosophy always leads to harmful inflation. We had severe problems in the 60’s and 70’s and we are doing the same thing once again. We have only started to pay for the extravagance of financing the current war and rapidly expanding the entitlement system by foreign borrowing and creating money and credit out of thin air. There are reasons to believe that the conditions we have created will be much worse than they were in 1979 when interest rates of 21% were required to settle the markets and reverse the stagflation process. interest Statement on HR 2956, the Responsible Redeployment From Iraq 12 July 2007    2007 Ron Paul 75:6 A discussion of United States national security interests in Iraq and the broader Middle East region and the diplomatic, political, economic, and military components of a comprehensive strategy to maintain and advance such interests as the Armed Forces are redeployed from Iraq pursuant to section 3 of this Act. interest Introducing The Quality Health Care Coalition Act 2 August 2007    2007 Ron Paul 84:3 As an OB–GYN who spent over 30 years practicing medicine, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO. interest Terrorism Insurance 19 september 2007    2007 Ron Paul 89:6 Mr. Chairman, no one doubts that the government has a role to play in compensating American citizens who are victimized by terrorist attacks. However, Congress should not lose sight of fundamental economic and constitutional principles when considering how best to provide the victims of terrorist attacks just compensation. I am afraid that H.R. 3210, the Terrorism Risk Protection Act, violates several of those principles and therefore passage of this bill is not in the best interests of the American people. interest Terrorism Insurance 19 september 2007    2007 Ron Paul 89:13 In conclusion, Mr. Chairman, H.R. 3210 may reduce the risk to insurance companies from future losses, but it increases the costs incurred by the American taxpayer. More significantly, by ignoring the moral hazard problem this bill may have the unintended consequence of increasing the losses suffered in any future terrorist attacks. Therefore, passage of this bill is not in the long-term interests of the American people. interest Statement On Introduction Of The Cost Of Government Awareness Act 19 September 2007    2007 Ron Paul 92:1 Mr. PAUL. Madam Speaker, I rise to introduce the Cost of Government Awareness Act, which repeals one of the most deceptive practices of the federal government — income tax withholding. Withholding keeps many Americans ignorant about the true size of the federal tax burden. Withholding is also the reason millions of Americans overpay their income taxes, granting the United States Government interest-free loans. Many of these taxpayers are further misled into thinking the U.S. Government is acting benevolently when they receive “refunds” of money improperly taken from them through withholding! interest Statement before the Financial Services Committee 20 September 2007    2007 Ron Paul 93:2 As with asset bubbles and investment manias in past history, the fuel for the current housing bubble had its origins in monetary manipulation. The housing boom was caused by the Federal Reserve's policy resulting in artificially low interest rates. Consumers, misled by low interest rates, were looking to consume, while homebuilders saw the low interest rates as a signal to build, and build they did. interest Statement before the Financial Services Committee 20 September 2007    2007 Ron Paul 93:3 One of the primary means the Federal Reserve uses to stimulate the economy is manipulation of the federal funds rate and the discount rates, which are used as benchmark rates throughout the economy. The interest rate is the price of time, as the value of a dollar today and the value of a dollar one year from now are not the same. Just like any price in the market, interest rates have an important informational signaling purpose. Government price fixing of the interest rate has the same deleterious effects as price controls in other areas. interest Statement before the Financial Services Committee 20 September 2007    2007 Ron Paul 93:4 Reduction in the interest rate has two major effects: it encourages consumption over saving; and it makes long-term, capital-intensive projects cheaper to undertake. Under Chairman Greenspan's tenure, the federal funds rate was so low that the real interest rate (that is the nominal interest rate minus inflation) was negative. With a negative real interest rate, someone who saves money will literally lose the value of that money. interest Statement before the Financial Services Committee 20 September 2007    2007 Ron Paul 93:6 Millions of Americans now find themselves stuck in a financial quandary that is not their fault. The result of manipulation of the interest rate, money supply, and mortgage markets are the recently popped housing bubble. interest Opposing Legislation To Provoke Iran 25 September 2007    2007 Ron Paul 94:1 Mr. PAUL. Mr. Speaker, I rise in strongest opposition to this curiously-timed legislation which continues to beat the drums for war against Iran. It is interesting that this legislation was not scheduled for a vote this week, but appeared on the schedule at the last minute after a controversial speech by Iran’s President at Columbia University. interest Statement Before the Joint Economic Committee 8 November 2007    2007 Ron Paul 103:6 Finally, the Federal Reserve's loose monetary policy and lowering of interest rates were a major spur to the housing boom. Low interest rates influence marginal buyers, those who are sitting on the fence, and encourage them to take on a mortgage that they otherwise would not. Even when interest rates are raised, no one expects them to stay high for long, as there is always pressure from politicians and investors to keep rates low, as no one wants the cheap credit to end. interest Statement Before the Joint Economic Committee 8 November 2007    2007 Ron Paul 103:7 Thinking that interest rates will cycle from low to higher, back to low, lenders begin to offer adjustable rate mortgages, 2/28's, 3/27's, and other sophisticated mortgages that may trap many unsavvy buyers. Buyers go short, lenders go long, and many people have been burned as a result. interest Tribute To Dr. Russell Arthur Matthes 12 December 2007    2007 Ron Paul 108:5 Dr. Matthes was particularly interested in helping the youth of his community. Thus, in addition to all his other civic activities and his full-time medical practice, Dr. Matthes was very active with the Boy Scouts. Through his activities with the scouts, as well as his other civic work, he helped improve the lives of thousands of young Texans. interest Statement on Competing Currencies February 13, 2008    2008 Ron Paul 4:12 The sections of US Code which Liberty Services is accused of violating are erroneously considered to be anti-counterfeiting statutes, when in fact their purpose was to shut down private mints that had been operating in California. California was awash in gold in the aftermath of the 1849 gold rush, yet had no US Mint to mint coinage. There was not enough foreign coinage circulating in California either, so private mints stepped into the breech to provide their own coins. As was to become the case in other industries during the Progressive era, the private mints were eventually accused of circulating debased (substandard) coinage, and in the interest of providing government-sanctioned regulation and a government guarantee of purity, the 1864 Coinage Act was passed, which banned private mints from producing their own coins for circulation as currency. interest “Monetary Policy and the State of the Economy” February 26, 2008    2008 Ron Paul 8:2 Price controls are almost universally reviled by economists. The negative economic consequences of price floors or price ceilings are numerous and well-documented. Our current series of hearings have been called to discuss the most important, but least understood, price manipulation in the world today: the manipulation of the interest rate. interest “Monetary Policy and the State of the Economy” February 26, 2008    2008 Ron Paul 8:3 By setting the federal funds rate, the rate at which banks in the Federal Reserve System loan funds to each other, the Federal Reserve inhibits the actions of market participants coming together to determine a market interest rate. The Federal Reserve and the federal government do not deign to interfere in setting the price of houses, the interest rate on mortgages, or the prices of wood and steel. The Fed’s actions in setting the federal funds rate however, because it reflects the price of money to a borrower and thus affects demand for money, affects prices throughout the economy in a manner less pervasive but just as damaging as direct price controls. interest “Monetary Policy and the State of the Economy” February 26, 2008    2008 Ron Paul 8:5 The setting of the interest rate strikes me as quite similar to the way FDR used to set gold prices in the 1930’s, at his whim, resulting in economic havoc and uncertainty. When market actors have to devote much of their time to discerning the mindset of government price-setters, to parsing FOMC statements and minutes, they are necessarily diverted from productive economic activity. They cease to become purely economic actors and are forced to become political forecasters. This is not a problem isolated to this particular case, as businesses are forced to reckon with tax increases, expiring tax credits, import tariffs, subsidies to competitors, etc. However, because the interest rate determines the cost of borrowing and therefore determines whether or not marginal long-term business investments are undertaken, this politicized interest rate manipulation has far more impact than other government policies. interest “Monetary Policy and the State of the Economy” February 26, 2008    2008 Ron Paul 8:6 This setting of the interest rate introduces the business cycle into the economy. Until we understand the results these Federal Reserve actions have, we will be doomed to repeat these periods of boom and bust. I urge my colleagues to study this matter, and to resist the urge for greater Federal Reserve intervention in the market. interest “Monetary Policy and the State of the Economy” February 27, 2008    2008 Ron Paul 9:5 What all of these proposed bailouts fail to mention is the moral hazard to which bailouts lead. If the federal government bails out banks, investors, or homeowners, the lessons of sound investment and fiscal discipline will not take hold. We can see this in the financial markets in the boom and bust of the business cycle. The Fed’s manipulation of interest rates results in malinvestment which, when it is discovered, leads to economic contraction and liquidation of malinvested resources. But the Fed never allows a complete shakeout, so that before a return to a sound market can occur, the Fed has already bailed out numerous market participants by undertaking another bout of loose money before the effects of the last business cycle have worked their way through the economy. interest The Intelligence Authorization Act of 2008 11 March 2008    2008 Ron Paul 13:2 Mr. Speaker, we have all read the disturbing reports of individuals apprehended and taken to secret prisons maintained by the United States Government across the globe, tortured for months or even years, and later released without charge. Khaled al-Masri, for example, a German citizen, has recounted the story of his incarceration and torture by U.S. intelligence in a secret facility in Afghanistan. His horror was said to be simply a case of mistaken identity. We do not know how many more similar cases there may be, but clearly it is not in the interest of the United States to act in a manner so contrary to the values upon which we pride ourselves. interest Statement on H Res 997 1 April 2008    2008 Ron Paul 16:3 NATO expansion only benefits the US military industrial complex, which stands to profit from expanded arms sales to new NATO members. The “modernization” of former Soviet militaries in Ukraine and Georgia will mean tens of millions in sales to US and European military contractors. The US taxpayer will be left holding the bill, as the US government will subsidize most of the transactions. Providing US military guarantees to Ukraine and Georgia can only further strain our military. This NATO expansion may well involve the US military in conflicts as unrelated to our national interest as the breakaway regions of South Ossetia and Abkhazia in Georgia. The idea that American troops might be forced to fight and die to prevent a small section of Georgia from seceding is absurd and disturbing. interest Expressing concern over Russian involvement in Alexander Litvinenko’s murder 1 April 2008    2008 Ron Paul 17:2 The resolution purports to express concern over the apparent murder in London of a shadowy former Russian intelligence agent, Alexander Litvinenko, but let us not kid ourselves. The real purpose is to attack the Russian government by suggesting that Russia is involved in the murder. There is little evidence of this beyond the feverish accusations of interested parties. In fact, we may ultimately discover that Litvinenko’s death by radiation poisoning was the result of his involvement in an international nuclear smuggling operation, as some investigative reporters have claimed. The point is that we do not know. The House of Representatives has no business inserting itself in disputes about which we lack information and jurisdiction. interest NEWBORN SCREENING SAVES LIVES ACT OF 2007 8 April 2008    2008 Ron Paul 20:3 As the Federal Government assumes more control over health care, medical privacy has increasingly come under assault. Those of us in the medical profession should be particularly concerned about policies allowing Government officials and State-favored interests to access our medical records without our consent. After all, patient confidentiality is the basis of the trust that must underline a positive physician-patient relationship. Yet my review of S. 1858 indicates the drafters of the legislation made no effort to ensure these newborn screening programs do not violate the privacy rights of parents and children. interest Opening Statement, Petraeus and Crocker Testimony April 9 2008    2008 Ron Paul 22:8 Mr. Chairman, I would like to conclude by again stating my concern that the real purpose of today’s testimony is to further set the stage for an attack on Iran. Congress should make it very clear that there is no authority under current law for an attack on Iran. It is in our best interest to talk with Iran and to work with Iran to help stabilize the situation in Iraq. It is also in our immediate interest to remove US forces from Iraq as quickly as it is safe to do so. interest 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. interest RECOGNIZING THE 100-YEAR ANNIVERSARY OF THE ESTABLISHMENT OF ST. MARY’S COOPERATIVE CREDIT ASSOCIATION 11 June 2008    2008 Ron Paul 33:3 During my years of service on the House Committee on Financial Services, I have had the opportunity to get to know many credit union employees. I have always been impressed with their commitment to serving their credit union members and their communities. In many ways, credit unions exemplify the best of the free market system. Since credit unions are formed specifically to serve their members, credit unions put the interests of their depositors first. interest Statement Introducing the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act 8 July 2008    2008 Ron Paul 41:1 Madame Speaker, I rise today to introduce the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act, legislation that will help Americans reduce pollution and the amount they pay for gas. My legislation accomplishes these important goals by providing Americans a tax credit of up to $2,000 when they sell or trade in a car and obtain a vehicle that has at least a 20% higher average fuel economy than the sold or traded-in car. The bill also creates a federal tax deduction for any state or local taxes paid on the purchase of the more fuel-efficient automobile and makes interest on loans to purchase the more fuel-efficient automobile tax deductible. interest Statement on H Con Res 385 Condemning the Attack on the AMIA Jewish Community Center in Buenos Aires , Argentine, in July 1994 and for other purposes 15 July 2008    2008 Ron Paul 45:2 Although this resolution clearly blames Iran and Hezbollah for the bombing, in fact the investigation is ongoing and far from conclusive. In an article titled “ U.S. uses probe to pressure Iran ,” the Wall Street Journal earlier this year suggested that renewed US interest in this 14 year old case is more related to politics than a genuine desire for justice. Reported the Journal , interest CONGRATULATIONS TO UNITED SPACE SCHOOL PROGRAM 31 July 2008    2008 Ron Paul 55:1 Mr. PAUL. Madam Speaker, on August 5 the Foundation for International Space Education (FISE) will host United Space School Day at the University of Texas Medical Branch (UTMB) in Galveston, Texas. The United Space School Day is a summer science camp/ health careers promotion activity coordinated by the East Texas Area Health Education Center (AHEC). The United Space School Day’s activities will focus on the education pathways appropriate for students interested in careers in life sciences, aerospace medicine, and bioastronautics. interest CONGRATULATIONS TO UNITED SPACE SCHOOL PROGRAM 31 July 2008    2008 Ron Paul 55:2 United Space School Day is just one part of FISE’s United Space School program. The United Space School program, established in 1994, is the major way FISE carries out its mission of providing space-based academic instruction to pre-collegiate students from across America and around the world who are interested in science, engineering, technology, or mathematics careers. The United Space School gives these students the opportunity to learn from some of the space industry’s leading experts. Participants in the programs follow a curriculum specially designed to provide appropriate training and development by instructors qualified and knowledgeable in the proper disciplines. interest Statement on H. R. 6599, Military Construction/Veterans Affairs Appropriations 1 August 2008    2008 Ron Paul 57:4 We have been told that we will have no permanent bases in Iraq , but then again we have no “permanent” bases in Korea either even though we have had a military presence there for more than 50 years. It is unclear how much of this $12 billion will go to building new facilities to maintain an indefinite presence in Iraq , but any such expenditure will be counterproductive to US national interests. interest Statement on Sovereign Wealth Funds September 10, 2008    2008 Ron Paul 58:1 Mr. Chairman, once again we confront the issue of sovereign wealth funds, an issue which has become quite important due to the large amount of dollars and dollar-denominated bonds held by foreign governments, and the fears of these governments given the dollar’s precipitous decline over the past few years. The past few days have been quite interesting, with speculation that one of the reasons for the government takeover of Fannie Mae and Freddie Mac was the more than $1 trillion in Fannie and Freddie debt held by foreign governments. The threat of default on this debt would have undoubtedly had massive repercussions on the value of the dollar and might have unleashed the “nuclear threat” of a massive international sell-off of government and agency debt. interest “The Future of Financial Services: Exploring Solutions for the Market Crisis” September 24, 2008    2008 Ron Paul 59:1 Mr. Chairman, It is truly a shame that, less than two decades after the fall of communism, the lessons of price control are completely lost on most Washington power-brokers. The Treasury proposal before Congress is nothing more than a form of price control, an attempt to keep asset prices artificially elevated. The root of our recent economic boom, as in any other business cycle, was government intervention into the market under the guise of lowering the interest rate, which is itself a price. The function that prices play in the market in equalizing supply and demand, and the distortions that necessarily accompany each government effort at price-fixing, are forgotten by too many in Washington. interest “The Future of Financial Services: Exploring Solutions for the Market Crisis” September 24, 2008    2008 Ron Paul 59:4 Many here in Congress are asking where the money for this bailout will come from, and indeed it is a good question. $700 billion does not just materialize out of the ether, but then again neither do the hundreds of billions of dollars that we spend every year to fund our imperial war machine. We must the face the fact that our country is dead broke, and not just that, we are facing over $10 trillion in debt, and tens of trillions more in unfunded liabilities. This $700 billion bailout will only increase that debt, and increase the amount of money we pay merely to service the interest on that debt. The end result of this is higher taxes on our children and grandchildren, and the full-scale destruction of the dollar. interest “The Bailout” September 29, 2008    2008 Ron Paul 65:3 The most serious mistake that could be made here today is to blame free market capitalism for this problem. This has nothing to do with free market capitalism. This has to do with a managed economy, with an inflationary system, with corporatism, and with a special interest system. It has nothing to do with the failure of free markets and capitalism. Yet we’re resorting now, once again, to promoting more and more government. interest “The Bailout” September 29, 2008    2008 Ron Paul 65:15 But what politicians are willing to say that the financial “skyscraper”—the global financial and monetary system-is a house of cards. It is not going to happen at this juncture. They’re not even talking about this. They talk only of bailouts, more monetary inflation, more special interest spending, more debt, and more regulations. There is almost no talk of the relationship of the Community Reinvestment Act, HUD, and government assisted loans to the housing bubble. And there is no talk of the oversight that is desperately needed for the Federal Reserve, the Exchange Stabilization Fund, and all the activities of the President’s Working Group on financial markets. When these actions are taken we will at last know that Congress is serious about the reforms that are really needed. interest “The Bailout” September 29, 2008    2008 Ron Paul 65:18 It is unconstitutional—There is no constitutional authority to use government power to serve special interests. interest Statement on HR 1424 October 3, 2008    2008 Ron Paul 67:4 With deposit insurance increasing to $250,000 and banks able to set their reserves to zero, we will undoubtedly see future increases in unsound lending. No one in our society seems to understand that wealth is not created by government fiat, is not created by banks, and is not created through the manipulation of interest rates and provision of easy credit. A debt-based society cannot prosper and is doomed to fail, as debts must either be defaulted on or repaid, neither resolution of which presents this country with a pleasant view of the future. True wealth can only come about through savings, the deferral of present consumption in order to provide for a higher level of future consumption. Instead, our government through its own behavior and through its policies encourages us to live beyond our means, reducing existing capital and mortgaging our future to pay for present consumption. interest Statement on HR 1424 October 3, 2008    2008 Ron Paul 67:5 The money for this bailout does not just materialize out of thin air. The entire burden will be borne by the taxpayers, not now, because that is politically unacceptable, but in the future. This bailout will be paid for through the issuance of debt which we can only hope will be purchased by foreign creditors. The interest payments on that debt, which already take up a sizeable portion of federal expenditures, will rise, and our children and grandchildren will be burdened with increased taxes in order to pay that increased debt. interest UNTITLED 3 October 2008    2008 Ron Paul 68:3 We want to do this it is said to prevent the recession or depression because that is unbearable. But the truth is you should have thought about that 10 or 15 years ago because the financial bubble created by the excess of credit and the lowering of the interest rate is the cause of the recession. The recession is a demand. It is a must; you can’t avoid it. Yes, it has been papered over several times over the last several decades, but that just made the bubble bigger. interest 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. interest INTRODUCTION OF THE SOCIAL SECURITY PRESERVATION ACT January 6, 2009    2009 Ron Paul 2:1 Mr. PAUL. Madam Speaker, I rise to protect the integrity of the Social Security trust fund by introducing the Social Security Preservation Act. The Social Security Preservation Act is a rather simple bill which states that all moneys raised by the Social Security trust fund will be spent in payments to beneficiaries, with excess receipts invested in interest-bearing certificates of deposit. This will help keep Social Security trust fund moneys from being diverted to other programs, as well as allow the fund to grow by providing for investment in interest- bearing instruments. interest INTRODUCTION OF THE SOCIAL SECURITY PRESERVATION ACT January 6, 2009    2009 Ron Paul 2:3 With federal deficits reaching historic levels, and with new demands being made on the U.S. Treasury on an almost weekly basis, the pressure from special interests for massive new raids on the trust fund is greater than ever. Thus it is vital that Congress act now to protect the trust fund from big spending, pork- barrel politics. As a medical doctor, I know the first step in treatment is to stop the bleeding, and the Social Security Preservation Act stops the bleeding of the Social Security trust fund. I therefore call upon all my colleagues, regardless of which proposal for long-term Social Security reform they support, to stand up for America’s seniors by cosponsoring the Social Security Preservation Act. interest INTRODUCTION OF THE IDENTITY THEFT PREVENTION ACT January 6, 2009    2009 Ron Paul 4:17 Second, the federal government has been creating proprietary interests in private information for certain state-favored special interests. Perhaps the most outrageous example of phony privacy protection is the “medical privacy”’ regulation, that allows medical researchers, certain business interests, and law enforcement officials access to health care information, in complete disregard of the Fifth Amendment and the wishes of individual patients! Obviously, “privacy protection” laws have proven greatly inadequate to protect personal information when the government is the one seeking the information. interest Statement on H Res 34, Recognizing Israel’s right to defend itself against attacks from Gaza, Reaffirming the United States strong support for Israel, and supporting the Israeli-Palestinian peace process January 9, 2009    2009 Ron Paul 7:8 There is too much blowback. There are a lot of reasons why we should oppose this resolution. It’s not in the interest of the United States, it is not in the interest of Israel either. interest Statement on H Res 34, Recognizing Israel’s right to defend itself against attacks from Gaza, Reaffirming the United States strong support for Israel, and supporting the Israeli-Palestinian peace process January 9, 2009    2009 Ron Paul 7:9 I strongly oppose H. Res. 34, which was rushed to the floor with almost no prior notice and without consideration by the House Foreign Affairs Committee. The resolution clearly takes one side in a conflict that has nothing to do with the United States or U.S. interests. I am concerned that the weapons currently being used by Israel against the Palestinians in Gaza are made in America and paid for by American taxpayers. What will adopting this resolution do to the perception of the United States in the Muslim and Arab world? What kind of blowback might we see from this? What moral responsibility do we have for the violence in Israel and Gaza after having provided so much military support to one side? interest Statement on H Res 34, Recognizing Israel’s right to defend itself against attacks from Gaza, Reaffirming the United States strong support for Israel, and supporting the Israeli-Palestinian peace process January 9, 2009    2009 Ron Paul 7:12 Madam Speaker, this resolution will do nothing to reduce the fighting and bloodshed in the Middle East. The resolution in fact will lead the U.S. to become further involved in this conflict, promising “vigorous support and unwavering commitment to the welfare, security, and survival of Israel as a Jewish and democratic state.” Is it really in the interest of the United States to guarantee the survival of any foreign country? I believe it would be better to focus on the security and survival of the United States, the Constitution of which my colleagues and I swore to defend just this week at the beginning of the 111th Congress. I urge my colleagues to reject this resolution. interest Bailout January 14, 2009    2009 Ron Paul 8:5 I do want to address the subject more specifically about moral hazard and why the system was so deeply flawed. That is, when a Federal Reserve system and a central bank create easy money and easy credit and they have interest rates lower than they should be, businesspeople do the wrong things. They make mistakes. It’s called malinvestments, and we’ve been doing it for a long time. It causes financial bubbles, and they have to be corrected. interest Bailout January 14, 2009    2009 Ron Paul 8:6 Actually, the recession is therapy for all of the mistakes, but the mistakes come, basically, from a Federal Reserve system that’s causing too many people to make mistakes. It causes savers to make mistakes. Interest rates are lower than they should be, so they don’t save. In capitalism, capital comes from savings, but for decades now, capital has come from the printing press, and nobody has saved. interest LIVING BENEATH OUR MEANS January 21, 2009    2009 Ron Paul 10:2 Living and consuming on borrowed money always end. Lenders, even in an age of inflation, have their limits. When living extravagantly, it seems the good times will continue forever, but when the bills come due and the debt, with interest, needs to be paid, the good times end. interest FEDERAL RESERVE BOARD ABOLITION ACT February 3, 2009    2009 Ron Paul 14:4 Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of special interests and their own appetite for big government. interest WHAT IF? February 12, 2009    2009 Ron Paul 15:2 What if our foreign policy of the past century is deeply flawed and has not served our national security interests? interest WHAT IF? February 12, 2009    2009 Ron Paul 15:13 What if the American people woke up and understood the official reasons for going to war are almost always based on lies and promoted by war propaganda in order to serve special interests? interest WHAT IF? February 12, 2009    2009 Ron Paul 15:18 What if war and preparation for war is a racket serving the special interests? interest 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. interest FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:2 Artificially low interest rates are achieved by inflating the money supply. Low interest rates penalize the thrifty, and those who save are cheated. It promotes consumption and borrowing over savings and investing. Manipulating interest rates is an immoral act, it is economically destructive. The policy of artificially low interest rates caused our problems and, therefore, cannot be the solution. interest FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:3 The market rate of interest is crucial information for the smooth operation of the economy. A central bank setting interest rates is price fixing and is a form of central economic planning. Price fixing is a tool of socialists and destroys production. interest FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:4 Central bankers, politicians and bureaucrats can’t know what the proper rate should be. They lack the knowledge and are deceived by their aggrandizement. Manipulating the money supply and interest rates rejects all the principles of the free market. interest FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:11 Wealth cannot be achieved by creating money by fiat. It instead destroys wealth and it rewards the special interests. Depending on monetary fraud for national prosperity or a reversal of our downward spiral is riskier than depending on the lottery. interest INTRODUCING THE QUALITY HEALTH CARE COALITION ACT March 12, 2009    2009 Ron Paul 29:3 As an OB–GYN who spent over 30 years practicing medicine, I am well aware of how young physicians coming out of medical school feel compelled to sign contracts with HMOs that may contain clauses that compromise their professional integrity. For example, many physicians are contractually forbidden from discussing all available treatment options with their patients because the HMO gatekeeper has deemed certain treatment options too expensive. In my own practice, I tried hard not to sign contracts with any health insurance company that infringed on my ability to practice medicine in the best interests of my patients and I always counseled my professional colleagues to do the same. Unfortunately, because of the dominance of the HMO in today’s health care market, many health care professionals cannot sustain a medical practice unless they agree to conform their practice to the dictates of some HMO. interest INTRODUCING THE ENERGY EFFICIENT AND ENVIRONMENTALLY FRIENDLY AUTOMOBILE TAX CREDIT ACT March 26, 2009    2009 Ron Paul 38:1 Mr. PAUL. Madam Speaker, I rise today to introduce the Energy Efficient and Environmentally Friendly Automobile Tax Credit Act, legislation that will help Americans reduce pollution and the amount they pay for gas. My legislation accomplishes these important goals by providing Americans a tax credit of up to $2,000 when they sell or trade in a car and obtain a vehicle that has at least a 20% higher average fuel economy than the sold or traded- in car. The bill also creates a federal tax deduction for any state or local taxes paid on the purchase of the more fuel-efficient automobile and makes interest on loans to purchase the more fuel-efficient automobile tax deductible. interest RECOGNIZING 30TH ANNIVERSARY OF EGYPT-ISRAEL PEACE TREATY March 30, 2009    2009 Ron Paul 40:4 I do believe we should, where possible and without meddling, encourage nations and regions at war or in conflict to work toward peace. But I also believe we should lead by example: that we should demonstrate by our actions the benefits of friendly relations and trade with all nations which seek the same. I strongly oppose the idea that we should bribe the rest of the world to do what we demand. Therefore, while I celebrate the achievement of peace between Egypt and Israel, I do not believe this “model” to be productive or in the best interests of the United States. I urge my colleagues to reject this resolution. interest FAMILY EDUCATION FREEDOM ACT April 2, 2009    2009 Ron Paul 43:9 Clearly, enactment of the Family Education Freedom Act is the best thing this Congress could do to improve public education. Furthermore, a greater reliance on parental expenditures rather than government tax dollars will help make the public schools into true community schools that reflect the wishes of parents and the interests of the students. interest TRIBUTE TO BURT BLUMERT April 2, 2009    2009 Ron Paul 49:9 As I travel across the country, I am astounded at the number of young people I met who are interested in the cause of individual liberty, peace, and sound money. Many of them got their introduction to these ideas through one of the many organizations nurtured by Burt Blumert. interest INTRODUCTION OF THE LIBERTY AMENDMENT April 30, 2009    2009 Ron Paul 50:5 Income taxes not only diminish liberty, they retard economic growth by discouraging work and production. Our current tax system also forces Americans to waste valuable time and money on compliance with an ever-more complex tax code. The increased interest in flat- tax and national sales tax proposals, as well as the increasing number of small businesses that question the Internal Revenue Service’s IRS) “withholding” system provides further proof that America is tired of the labyrinthine tax code. Americans are also increasingly fed up with an IRS that continues to ride roughshod over their civil liberties, despite recent “pro-taxpayer” reforms. interest BIRTHDAY GREETINGS TO MALINDA WRIGHT May 4, 2009    2009 Ron Paul 52:2 Malinda was married to Alex C. Wright for over seventy years. Together, Malinda and Alex raised six children. A lifelong lover of reading, Malinda continues to read the newspaper every day, and I understand that she is particularly interested in the stock market. interest HONORING JACK KEMP May 6, 2009    2009 Ron Paul 53:2 Jack is probably best known for the key role he played in the “supply side revolution” that led to the tax rate reductions of the early eighties. However, what I most remember about Jack was that he was one of the few politicians I have met who understood how fiat money harms Americans. Jack was passionate about reforming monetary policy so America would again have, as Jack memorably put it, a “dollar as good as gold.” It was largely due to Jack’s efforts that the Republican Party platform of 1980 endorsed a return to the gold standard. Jack’s support was instrumental in me being named to the U.S. Gold Commission in 1982. While I was not always in total agreement with Jack’s views on monetary policy, I always appreciated his interest in the issue. interest CONSUMER DEBT May 14, 2009    2009 Ron Paul 55:2 The only way for Americans to avoid turning cancelation of debt into a taxable event is by declaring bankruptcy or insolvency. Thus, the tax code’s perverse incentives could cause more Americans to declare bankruptcy, which is neither in the best interest of the debtor or their creditors. interest INTRODUCING THE PROTECT PATIENTS’ AND PHYSICIANS’ PRIVACY ACT May 21, 2009    2009 Ron Paul 59:4 One of the major flaws with the federally mandated electronic record system is that it does not provide adequate privacy protection. Electronic medical records that are part of the federal system will only receive the protection granted by the Federal “medical privacy rule.” This misnamed rule actually protects the ability of government officials and state-favored special interests to view private medical records without patient consent. interest COMMEMORATING 20TH ANNIVERSARY OF THE TIANANMEN SQUARE SUPPRESSION June 2, 2009    2009 Ron Paul 61:5 While we certainly do not condone government suppression of individual rights and liberties wherever they may occur, why are we not investigating these abuses closer to home and within our jurisdiction? It seems the House is not interested in investigating allegations that U.S. government officials and employees approved and practiced torture against detainees. Where is the Congressional investigation of the U.S.-operated “secret prisons” overseas? What about the administration’s assertion of the right to detain individuals indefinitely without trial? It may be easier to point out the abuses and shortcomings of governments overseas than to address government abuses here at home, but we have the constitutional obligation to exercise our oversight authority in such matters. I strongly believe that addressing these current issues would be a better use of our time than once again condemning China for an event that took place some 20 years ago. interest 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. interest MISTAKES: JUST A FEW! June 3, 2009    2009 Ron Paul 63:5 This has entailed taxpayers being forced to buy worthless assets, propping up malinvestments, not allowing the liquidation of bad debt, bailing out privileged banking, Wall Street and corporate elites. We promote artificially low interest rates which eliminates information that only the market can provide. Steadily sacrificing economic and personal liberty is accepted as good policy. Socializing American industry offers little hope that prosperity will soon return. interest GLOBAL WARMING PETITION SIGNED BY 31,478 SCIENTISTS June 4, 2009    2009 Ron Paul 64:15 It is time that we look beyond those few who seek increased taxation and increased regulation and control of the American people. Our energy policies must be based upon scientific truth – not fictional movies or self-interested international agendas. They should be based upon the accomplishments of technological free enterprise that have provided our modern civilization, including our energy industries. That free enterprise must not be hindered by bogus claims about imaginary disasters. interest Impeachment Of Judge Samuel Kent June 19, 2009    2009 Ron Paul 73:1 Mr. PAUL. Mr. Speaker, as the House of Representatives Member for Galveston, Texas, I have followed the case of Judge Samuel Kent with great interest. My study of the facts of this case has convinced me that the House Committee on the Judiciary made the correct decision in recommending that Judge Kent be impeached. Unfortunately, because of a commitment in my congressional district, I was only able to be on the House floor for the vote on the first count. Had I been on the House floor for the vote, I would have voted for all four counts of impeachment. I hope the Senate expeditiously acts on this matter. interest COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:7 The community banks made more than $40 million in recovery loans at a time when lending by industry giants had all but ground to a halt. The 180-day loans, at 5 percent interest, were a lifeline to local businesses hoping to recover quickly from a hurricane that inflicted $11.4 billion in damage along the upper Texas Coast. interest COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:21 Bankers are the first to say their efforts weren’t without self-interest. They certainly earned money from the loans. And they made loans based on credit history, long- standing relations and with the understanding they would be repaid. interest COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:22 IN IT TOGETHER And if a lot of local businesses failed, the local banks were going to feel it, so they had an interest in the success of their neighbors. interest COMMUNITIES REBUILD AFTER HURRICANE IKE July 15, 2009    2009 Ron Paul 79:24 “It was in our best interest to do whatever we could to assist as rapidly as we could for business recovery on the island.” interest CONGRATULATIONS TO UNITED SPACE SCHOOL PROGRAM July 22, 2009    2009 Ron Paul 83:1 Mr. PAUL. Madam Speaker, on August 4 the Foundation for International Space Education (FISE) will host United Space School Day at the University of Texas Medical Branch (UTMB) in Galveston, Texas. The United Space School Day is a summer science camp/ health careers promotion activity coordinated by the East Texas Area Health Education Center (AHEC). The United Space School Day’s activities will focus on the education pathways appropriate for students interested in careers in life sciences, aerospace medicine, and bioastronautics. interest CONGRATULATIONS TO UNITED SPACE SCHOOL PROGRAM July 22, 2009    2009 Ron Paul 83:2 United Space School Day is just one part of FISE’s United Space School program. The United Space School program, which is rooted in the International Space School that was established in 1994, is the major way FISE carries out its mission of providing space-based academic instruction to pre-collegiate students from across America and around the world who are interested in science, engineering, technology, or mathematics careers. The United Space School gives these students the opportunity to learn from some of the space industry’s leading experts. Participants in the programs follow a curriculum specially designed to provide appropriate training and development by instructors qualified and knowledgeable in the proper disciplines. interest THE BIG GUNS HAVE LINED UP AGAINST H.R. 1207 July 30, 2009    2009 Ron Paul 88:2 Federal Reserve Chairman Ben Bernanke argues that H.R. 1207, the legislation to audit the Federal Reserve, would politicize monetary policy. He claims that monetary policy must remain “independent,” that is, secret. He ignores history, because chairmen of the Federal Reserve in the past, especially when up for reappointment, do their best to accommodate the President with politically driven low interest rates and a bubble economy. interest THE BIG GUNS HAVE LINED UP AGAINST H.R. 1207 July 30, 2009    2009 Ron Paul 88:3 Former Federal Reserve Board Chairman Arthur Burns, when asked about all the inflation he brought about in 1971, before Nixon’s re-election, said that the Fed has to do what the President wants it to do, or it would “lose its independence.” That about tells you everything. Not by accident, Chairman Burns strongly supported Nixon’s program of wage and price controls, the same year; but I guess that’s not political. Is not making secret deals with the likes of Goldman Sachs, international financial institutions, foreign governments and foreign central banks, politicizing monetary policy? Bernanke argues that the knowledge that their discussions and decisions will one day be scrutinized will compromise the freedom of the Open Market Committee to pursue sound policy. If it is sound and honest, and serves no special interest, what’s the problem? interest THE BIG GUNS HAVE LINED UP AGAINST H.R. 1207 July 30, 2009    2009 Ron Paul 88:6 They also argue that an audit would hurt the value of the U.S. dollar. In fact, the Fed, in less than 100 years of its existence, has reduced the value of the 1914 dollar by 96 percent. They claim H.R. 1207 would raise interest rates. How could it? The Fed sets interest rates and the bill doesn’t interfere with monetary policy. Congress would have no say in the matter; and besides, Congress likes low interest rates. It is argued that the Fed wouldn’t be free to raise interest rates if they thought it necessary. But Bernanke has already assured the Congress that rates are going to stay low for the foreseeable future, and, again, this bill does nothing to allow Congress to interfere with interest rate setting. interest THE BIG GUNS HAVE LINED UP AGAINST H.R. 1207 July 30, 2009    2009 Ron Paul 88:7 Fed supporters claim that they want to protect the public’s interest with their secrecy. But the banks and Wall Street are the opponents of 1207, and the people are for it. Just who best represents the “public’s” interest? The real question is, why are Wall Street and the Feds so hysterically opposed to 1207? Just what information are they so anxious to keep secret? Only an audit of the Federal Reserve will answer these questions. interest MORE GOVERNMENT WON’T HELP September 23, 2009    2009 Ron Paul 90:4 Number three, economic fallacies accepted for more than 100 years in the United States have deceived policymakers into believing that quality care can only be achieved by government force, taxation, regulations, and bowing to a system of special interests that creates a system of corporatism. interest Foreign Policy September 30, 2009    2009 Ron Paul 92:2 Mr. Speaker, I rise in opposition to this bill. Sometimes I wonder how we can, with a straight face, bring a bill up like this with the conditions of this country, especially financially. I oppose this bill for two reasons. One, we don’t have the money. That would be a pretty good reason not to support it. And the other reason is I do not believe it’s in our national security interests. I know this is being promoted as benefiting our national security, but I do not believe it helps us one bit. This bill was essentially voted on in June, and the vote was 234–185, which means that it is assumed at least 56 or more individuals in the Congress have switched their votes. interest Foreign Policy September 30, 2009    2009 Ron Paul 92:6 I would suggest another proposal for our foreign policy, not using bombs and bribes, but what about neither one? What about just talking to people? What about reducing tariffs? What about trading with them? Instead, it is this form of foreign policy that will not serve our interests. interest Afghanistan, Part 1 November 18, 2009    2009 Ron Paul 96:5 I recall a book I read in the 1980s written by Barbara Tuchman. She wrote a book called the “March of Folly,” and she went back as far as Troy, all the way up through Vietnam and took very special interest in countries where they were almost obsessed or possessed with a policy, even though it was not in their interest, and the foolishness and the inability to change course. She died in 1989, but I keep thinking that if she had lived, she would probably write a history of our recent years, another “march of folly.” interest TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:3 Since the Fed is the source of all economic downturns, it’s impossible for any central banker to regulate in such a manner to prevent the problems that are predictable consequences of his own monetary management. The Federal Reserve fixes interest rates at levels inevitably lower than those demanded by the market. This manipulation is a form of price control through credit expansion, and is the ultimate cause of business cycles and so many of our economic problems, generating the mal- investment, excessive debt, stock, bond, commodity, and housing bubbles. interest 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. interest TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:8 Chairman Bernanke’s argument for Fed secrecy is a red herring. It serves to distract so the special interests that benefit from the Fed policy never become known to the public. Who can possibly buy this argument that this secrecy is required to protect the people from political influence? interest THE QUAGMIRE OF AFGHANISTAN December 2, 2009    2009 Ron Paul 101:6 A book was written many years ago by one of the most, if not the most decorated soldier we ever had, Smedley Butler. He wrote a book called “War is a Racket.” And I have come to this belief that war literally is a racket for the people who push these wars, whether it’s the military industrial complex or the special interests and the various factions, but it’s never, it’s never for the people. interest INTRODUCING THE FREE COMPETITION IN CURRENCY ACT December 9, 2009    2009 Ron Paul 102:10 The second step to reestablishing competing currencies is to eliminate laws that prohibit the operation of private mints. One private enterprise which attempted to popularize the use of precious metal coins was Liberty Services, the creators of the Liberty Dollar. Evidently the government felt threatened, as Liberty Dollars had all their precious metal coins seized by the FBI and Secret Service in November of 2007. Of course, not all of these coins were owned by Liberty Services, as many were held in trust as backing for silver and gold certificates which Liberty Services issued. None of this matters, of course, to the government, which hates competition. The responsibility to protect contracts is of no interest to the government. interest Sanctions on Iran, Part 1 December 15, 2009    2009 Ron Paul 104:1 Mr. PAUL. The chairman states that the main purpose of this bill is to prevent the Iranians from getting a nuclear weapon. That isn’t even as powerful a statement as was made that enticed us into the Iraq war. There was the claim that they already had them. But now, this is a pretense, and yet here we are taking these drastic steps. My main reason for opposing this bill is that I think it’s detrimental to our national security. There’s no other reason. It doesn’t serve our interests. So I am absolutely opposed to it. interest Sanctions on Iran, Part 1 December 15, 2009    2009 Ron Paul 104:6 That is why I believe this is not in our best interest. It actually hurts us. Once we say that we’re going to do something like using force and prevent vital products from going in, it means that we’ve given up on diplomacy. Diplomacy’s out the window. And they’re not capable of attacking us. You know, this idea that they are on the verge of a bomb, you know, our CIA said they haven’t been working on it since 2003. And the other thing is, if you want to give them incentive to have a bomb, just keep pestering like this, just intimidate them. Provoke it. This is provocative. They might have a greater incentive than ever. interest Sanctions on Iran, Part 2 December 15, 2009    2009 Ron Paul 105:6 It is going to push the support of the Iranians in another direction. It’s going to push them towards India, China, and Russia, and these countries have special associations with Iran. So we are going to separate us. We will be isolated from that, and they are going to have a much closer alliance with these countries. That will not serve our interests. interest Sanctions on Iran, Part 2 December 15, 2009    2009 Ron Paul 105:7 It’s going to serve the interest of one country mostly, and that’s China. China acts only almost like capitalists. They take our dollars they have earned from us and they are spending the dollars over there. They would like to buy the oil, refine the oil, and drill the oil. But here, we assume that we have to do it through force, through sanctions, threats, intimidation, and secret maneuvers to overthrow their regime. It just doesn’t work. It sounds good. It sounds easy, but it does backfire on us. You get too many unintended consequences. interest Sanctions on Iran, Part 3 December 15, 2009    2009 Ron Paul 106:6 I urge a “no” vote on this resolution in the interest of United States security. Texas Straight Talk interest - The worst day of the year 20 March 1997    Texas Straight Talk 20 March 1997 verse 9 ... Cached Debates over how we collect taxes - whether by a "flat tax" or a national sales tax - are interesting, but often tend to cloud the real issue. The real debate should be over the question, "Why is government this big and spending this much money?" interest - Fear of IRS misplaced, real problem is the system 20 April 1997    Texas Straight Talk 20 April 1997 verse 16 ... Cached While looking at the countless number of cases of the IRS being used as a political tool of administrations past and present may be interesting and even instructive, we should instead be focusing on what has allowed these cases to occur. interest - Congress continues to ignore Constitution in the appropriations process 29 September 1997    Texas Straight Talk 29 September 1997 verse 9 ... Cached I've started to think that if I cannot have my way and see the UN go the way of the dinosaur, then I think we need to see the UN funded completely by the voluntary contributions of individuals. And ironically, it was Ted Turner who, having made his fortunes in broadcasting, led the way this week by committing $1 billion to the anti-capitalism UN. If the UN must exist, then at the very least the American public shouldn't be forced to subsidize the organization which is diametrically opposed to US interests at every turn. interest - Gun Control? Disarm The Bureaucrats! 20 October 1997    Texas Straight Talk 20 October 1997 verse 6 ... Cached The enforcement of the interventionist, welfare-warfare state requires a growing army of thriving bureaucrats. With special interests demanding favors, federal office-holders can only meet those demands by abusing the rights of those who produce wealth and cherish liberty. The resentment of those being abused is then directed at the government agents who come to collect, even though those agents are merely the front-men for the special interests and their elected puppets. As resentment toward these agents increases and becomes more hostile, the natural consequence has been for the bureaucrats - the intruders upon liberty - to arm themselves as protection against the angry victims of government abuse. interest - Gun Control? Disarm The Bureaucrats! 20 October 1997    Texas Straight Talk 20 October 1997 verse 11 ... Cached Even if it is coincidental, do not try to convince the American people. Most Americans, justifiably cynical and untrusting toward the federal government, know the evidence exists that since the 1970's both Republican and Democratic administrations have not hesitated to intimidate their political enemies with IRS audits and regulatory harassment. Though the average IRS agent does not carry a gun, the threat of incarceration and seizure of property is backed up by many guns. All government power is ultimately gun power, and serves the interests of those who despise or do not comprehend the principles of liberty. interest - By Any Other Name, A Tax Is Still A Tax 27 October 1997    Texas Straight Talk 27 October 1997 verse 8 ... Cached While my legislation is still working its way through the committee process, I signed on as an original cosponsor to a bill to let parents create special education savings accounts with tax-free interest. While this legislation was not as strong as I would have liked, I favor anything that gives parents more control over education. interest - Congress has finished for the year, but fast-track is not dead 17 November 1997    Texas Straight Talk 17 November 1997 verse 10 ... Cached There are two points of interest worth noting. First, most members of the pro-fast-track movement have, in the past promoted ceding war-making authority to the UN, used taxpayer-money to bail-out big corporations, and sent ever-increasing sums of your money overseas in foreign aid to dictators. With all that, is it any wonder there has been a populist backlash, led by the very different likes of Ralph Nadar and Pat Buchanan? interest - Congress has finished for the year, but fast-track is not dead 17 November 1997    Texas Straight Talk 17 November 1997 verse 12 ... Cached So why the sudden rhetoric of free-trade to prop-up fast-track? Could it be that fast-track, the process which gave us NAFTA, has, in reality, nothing to do with free trade? Could it be that the real protectionists - the protectors of the big corporations - have realized that fast-track serves their interests by promoting a managed trade system that benefits the existing players at the expense of upstart competitors? Certainly. The ready willingness to grant exemptions to various industries and commodities during the negotiations suggests less than a principled effort to promote free and unhampered trade. interest - Neutrality and dialogue, not intervention, will secure peace 24 November 1997    Texas Straight Talk 24 November 1997 verse 7 ... Cached There is no direct national security interests for us to be in Iraq. We are not the policeman of the world, we can't afford it, and our interventionist efforts usually backfire. Our policy in this region has been designed more to promote the United Nations than to deal with any threat to our national security. Control of the region's huge oil reserves is a much more important factor than U.S. security. interest - Neutrality and dialogue, not intervention, will secure peace 24 November 1997    Texas Straight Talk 24 November 1997 verse 15 ... Cached Policy toward Iraq is based on the special interests of powerful financial and oil interests. It is not designed to protect U.S. national security. It is instead a threat to our security because it may lead to war and loss of American lives, increase terrorism and certainly an additional expense for the US taxpayer. The hyped rhetoric coming from Washington which describes Hussein as the only evil monster with which we must deal in the world is a poor substitute for wise counsel. interest - Congress '97: more taxes, more spending, more big-government 01 December 1997    Texas Straight Talk 01 December 1997 verse 12 ... Cached If that were not bad enough, Congress has seen fit to not just escalate the funding of already-existing unconstitutional programs, but to actually add new agencies and programs which serve to benefit special interests at the expense of hard-working Americans. interest - President must withdraw troops from Bosnia 22 December 1997    Texas Straight Talk 22 December 1997 verse 17 ... Cached To counter the threat of foreign policy being dictated by special interests, the Constitution gives Congress, not the president, power to engage our nation in war. Only after a congressional declaration of war is the president authorized to place troops in battle. Yet presidents of the later half of this century have felt no need to follow the Constitution as they have sent our troops into senseless battles without congressional approval; remember Vietnam? interest - President must withdraw troops from Bosnia 22 December 1997    Texas Straight Talk 22 December 1997 verse 20 ... Cached Now the ball is squarely in the court of Congress, with the question being a simple one: Will we allow the President to permanently place US troops in harms way in a region where no US interests or security is threatened for the sake of playing the role of global cops? When Congress returns to session in January, we will doubtless have the opportunity to cut funding for this latest maneuver by the president. Until now Congress has merely acquiesced and let the president continue placing our soldiers in a perilous, ridiculous situation. But the time has come for Congress to act. We must reign in the president and bring our troops home before the situation deteriorates. interest - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 4 ... Cached Using the old reliable excuse that it was in the interest of "national security," President Clinton last week opted to obligate the money of the American taxpayers to bailout the troubled South Korean economy and the legions of wealthy investors who had made a mistake in sinking their cash into a bad market. interest 1998 is a new chance to change government for better 05 January 1998    Texas Straight Talk 05 January 1998 verse 7 ... Cached This Oath clearly that as a Member of Congress, I can only do those things outlined in the Constitution. And so I must "bear true allegiance" to the law of the land, and support only the special interest of constitutional government and individual liberty, not the failed ideologies of big-government, command economics and central control. interest 1998 is a new chance to change government for better 05 January 1998    Texas Straight Talk 05 January 1998 verse 10 ... Cached And legislation like HR 2868, the Consumer Health Free Speech Act. This legislation would allow individuals the opportunity to decide for themselves what to believe about dietary supplements, health foods and herbs. Scientific research in nutrition over the past few years had demonstrated how various foods and other dietary supplements are safe and effective in preventing or mitigating diseases. Currently, however, disclosure of these well-documented statements triggers extensive regulation by the FDA, which is based more on protecting the interests of big pharmaceutical companies than sound science and good health. As a physician, I want to make sure individuals can examine the truthful claims of all sides about the positive and negative benefits of products sold over-the-counter in grocery and health food stores. interest 1998 is a new chance to change government for better 05 January 1998    Texas Straight Talk 05 January 1998 verse 11 ... Cached I will also continue my work in promoting the popular HR 1146, the American Sovereignty Restoration Act. This measure represents a step toward halting the cessation of power from the federal government to international bodies such as the United Nations, the World Trade Organization and the World Bank, by withdrawing the US from the UN. Under our Constitution, the federal government - including the President, the Congress and the courts - is not allowed to give away power and responsibility to these bodies, simply because the power is not theirs to give: Only the people have the power in our nation. Under the auspices of these international bodies, American boys have died in battle not for American interests, or in wars declared by Congress as the Constitution requires. With each of these senseless deaths - from Korea and Vietnam to Haiti and Bosnia - our national security is inherently and irreparably weakened. interest 1998 is a new chance to change government for better 05 January 1998    Texas Straight Talk 05 January 1998 verse 12 ... Cached In all, I am pleased to be sponsoring more than a dozen pieces of legislation, each designed to promote the interests of individual empowerment, constitutional government and much lower taxation. Further, I will be working hard for the more than 100 pieces of legislation I have cosponsored, all of which reflect the deeply-held morals, views and attitudes of the people of the 14th District, and our Founding Fathers. interest Abortion and National Sovereignty: No Compromises 26 January 1998    Texas Straight Talk 26 January 1998 verse 8 ... Cached Meanwhile, the United Nations and IMF are two international organizations which frequently act in a manner contrary to the sovereignty interests of the United States. As such, I have sponsored legislation to get the United States out of both of these organizations. interest Abortion and National Sovereignty: No Compromises 26 January 1998    Texas Straight Talk 26 January 1998 verse 15 ... Cached To date we who support the cause of life have compromised too much; it is time to stand firm. It is unconstitutional and immoral to use taxpayer dollars to fund even one abortion, whether it is foreign or domestic. And it is unconscionable that elected officials of the United States would consider using unborn children in foreign lands as pawns in a game that further undermines the best interests of the United States. interest National testing averted, but education woes still unresolved 09 February 1998    Texas Straight Talk 09 February 1998 verse 8 ... Cached In fact, federal involvement in education is less about any real desires to educate kids as it is about ensuring a power-base for the Washington politicians. Decisions that affect our teachers and students are made on the basis of promoting the interests and securing the livelihood of bureaucrats, rather than sound science and years of hands-on experience. interest Never sacrifice liberty for "campaign reform" 02 March 1998    Texas Straight Talk 02 March 1998 verse 7 ... Cached The problem, according to these congressmen, is the big-money interests trying to influence the outcomes of elections. But none wanted to address the root of the problem, of why groups are willing to spend so much money trying to affect an election. Groups do so because of the overwhelming power the federal government has over every aspect of life. interest Never sacrifice liberty for "campaign reform" 02 March 1998    Texas Straight Talk 02 March 1998 verse 13 ... Cached As this issue remains in the forefront, there will be the opportunity to make major changes. The changes we make will affect the electoral process, which will affect the government which taxes and regulates so much in our nation. If we choose poorly, people will become more disinterested and the special interests will gain even more power. But if we choose wisely, we will present to the future a system more democratic and responsive to the notions of liberty so cherished by the American people. interest Block grants are not the answer 09 March 1998    Texas Straight Talk 09 March 1998 verse 7 ... Cached Further, the block grant method of allocating funds does not eliminate the need to first collect the revenues nationally and politically distribute the funds to the various state entities. Collection and distribution which has nothing to do with the reality and everything to do with redistributing wealth to the benefit of politicians and special interests. Wealthy states, like Texas, will never get their money back, even if every program is block granted. interest Block grants are not the answer 09 March 1998    Texas Straight Talk 09 March 1998 verse 11 ... Cached The devolution approach is not the first choice of proponents of big government, but it is acceptable to them. Why? The calls for more spending are usually satisfied as the supposed advocates for smaller government agree to more money so as to get the symbolic block grants passed into law. In the end, all the politicians, in spite of the rhetoric, are content, because they can sing both sing pleasant tunes to their special-interests. But the taxpayer loses because the money is still taken, at ever increasing rates, from their wallets. interest US should stop meddling in foreign wars 16 March 1998    Texas Straight Talk 16 March 1998 verse 11 ... Cached Instead of bringing our troops home from Bosnia, as many Members of Congress have expressed an interest in doing, over the President's objection, we are rapidly preparing for sending more troops into Kosova. This obsession with worldwide military occupation by U.S. troops is occurring at the very time our troops lack adequate training and preparation. interest Security of the people's liberty at risk 23 March 1998    Texas Straight Talk 23 March 1998 verse 3 ... Cached Recent vote suggests elected official more interested in politics than morality interest Security of the people's liberty at risk 23 March 1998    Texas Straight Talk 23 March 1998 verse 4 ... Cached It's not often that Members of Congress have the opportunity to take a vote which clearly states the intent of the Congress to either follow or not follow the Constitution. A vote which is not tethered to pork-barrel spending, special-interest giveaways or political land mines. Such a vote came up last week. interest Proposed tobacco deal undermines personal responsibility 13 April 1998    Texas Straight Talk 13 April 1998 verse 5 ... Cached Tobacco company executives have come to symbolize much of what is wrong with corporate America and our corrupt system of special interests, favoritism, and interventionism. For decades, big tobacco lobbied for, and gladly accepted, subsidies, while anyone with a grain of common sense knew smoking was a bad habit that adversely affected some people's health. interest Giving power to parents is truly pro-education 20 April 1998    Texas Straight Talk 20 April 1998 verse 9 ... Cached I have sponsored one piece of legislation, and cosponsored a second, which addresses this issue. My legislation would allow parents to take up to $3,000 a year per child in tax credits for their educational expenses, such as private, church and home school settings, as well as tutors, books and similar necessities. The credit applies even if the kids are in public schools. The other legislation is similar to Individual Retirement Accounts, but are for educational purposes. Parents would be allowed to set aside money in special savings accounts, the interest on which would not be taxed unless the money is used for non-educational purposes. interest No such thing as a free (government) needle 27 April 1998    Texas Straight Talk 27 April 1998 verse 14 ... Cached When we allow the federal government to do things it is not constitutionally authorized to do, when we endorse the concept of federal intervention in what is constitutionally state and local matters, we are bound to see government tripping over itself to use its over-reaching powers in ways to satisfy everyone. Again, case in point, the subsidization of both tobacco interests and cancer research. interest Constituent service is most important function 01 June 1998    Texas Straight Talk 01 June 1998 verse 12 ... Cached Finally, there are two important information services available to constituents of the 14th District. The first is my toll-free Legislative Update line. By calling (888) 322-1414, you can hear an update on legislation before Congress as well as information on items of general interest and debate. The second information service is my official congressional web site (www.house.gov/paul/). At this site visitors can find an archive of all my speeches, press releases and even the text of legislation I have sponsored, as well as leave electronic messages for me. interest Campaign reform should encourage choice 15 June 1998    Texas Straight Talk 15 June 1998 verse 5 ... Cached The debate, of course, is over a package of legislation referred to as "campaign finance reform." There is a correct recognition of a serious problem in our nation: the undue influence of "big money" special interests attempting to buy - or at least rent - politicians. interest Trade, not aid or isolation, should be US foreign policy 22 June 1998    Texas Straight Talk 22 June 1998 verse 14 ... Cached And there is another dynamic in place as we look toward engagement rather than isolation, and that is the issue of aid. For years the American taxpayer has been forced to subsidize hundreds of governments around the world, including those of some of the most vicious dictators in history, in the name of either "promoting human rights" in that country, or in the interest of "national security." Often times, tax dollars are being used to prop up these dictators, while at the same time trade sanctions prevent US farmers and small businessmen from selling their products in that market. interest Respect for property rights necessary for freedom 06 July 1998    Texas Straight Talk 06 July 1998 verse 13 ... Cached Perhaps the most egregious assault occurs, though, at the death of a property owner. Instead of being able to leave the family estate to his heirs, the owner's survivors must instead sit down with the government and negotiate how to divide up the property. The family farm is an endangered species, not for a lack of profitability or interest, but because the taxes assessed by government at our death forces the family to sell off land just to pay the levy. interest Right to work must be free of coercion 27 July 1998    Texas Straight Talk 27 July 1998 verse 10 ... Cached A far better system is one of voluntary union membership. If a worker feels the union can represent them and they agree with the politics (or do not care), they are free to join the union. Likewise, an employee can choose to not join a union at all. In fact, a great market could open up, where several unions could exist, giving employees a choice of which union will best represent their interests with the dues they pay. interest Washington 'solutions' to voter frustration are dangerous 03 August 1998    Texas Straight Talk 03 August 1998 verse 12 ... Cached Our system of elections will not dramatically change until our politicians attitude towards government is changed. As long as government has so much power over so much over lives, there will be people wanting to buy influence and create ways to keep others from doing the same. If our federal government did only those things authorized by the Constitution, there would be very little incentive for powerful "special interests" to try to influence congressmen. interest Deceptive economic euphoria 17 August 1998    Texas Straight Talk 17 August 1998 verse 4 ... Cached An interesting concept indeed! The national debt is rising at the rate of over $150 billion per year and our leaders never-the-less are euphoric over huge budget "surpluses" for "as far as the eye can see." This has to be one of the craziest debates of all recorded economic history. I'm sure similar deceptions in budgetary history have been known but never to the extent of this $1 trillion "windfall." interest Deceptive economic euphoria 17 August 1998    Texas Straight Talk 17 August 1998 verse 8 ... Cached It does not go unnoticed by people outside the Washington, DC, that the cost of living continues to rise despite the government's rosey reports. Personal bankruptcies are at a record high level, and the 18% interest on consumer debt is a lot different from interest earned on savings accounts. interest Deceptive economic euphoria 17 August 1998    Texas Straight Talk 17 August 1998 verse 10 ... Cached First, we're not doing as well as claimed and most Americans know it. Second, we're doing well because we benefit, as all countries do for a limited periods of time, from central bank credit creation - i.e., free money flowing into the banking system keeping interest rates artificially low. A $5.6 trillion debt and growing allows government expenditures to continue despite the nonsense about a balanced budget all the Washington pundits are bragging about. interest "Wagging" imperialism as bad as the Dog 24 August 1998    Texas Straight Talk 24 August 1998 verse 13 ... Cached Our current policy in the Middle East is indeed a threat to our security, for it puts more Americans in increased danger. Protecting our so-called interests, i.e., controlling Arab oil, is not worth the danger of giving the Islamic extremist the ammunition and the incentive to unite an entire region -- a region which quite possibly has access to nuclear weapons -- against all American citizens around the world. interest "Wagging" imperialism as bad as the Dog 24 August 1998    Texas Straight Talk 24 August 1998 verse 14 ... Cached "Wag the Dog" or not, "wagging" a foreign policy flawed from the start is indeed a great danger to our national security, and we should soon start talking seriously about a policy designed for truly preserving American interests -- freedom and prosperity here at home. Let us soon end the on-going Persian Gulf War. It is not winnable. interest The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 4 ... Cached Although taxes, spending, regulatory policies, and special interest cronyism compounds the problems, all nations of the world operate with a fiat monetary system and it has allowed the financial bubble to develop. Easy credit and artificially low interest rates starts a chain reaction that by its very nature guarantees a future correction. The later bad consequences of inflating a currency are certain, no matter how beneficial the earlier ones may seem. interest The problem is the currency 21 September 1998    Texas Straight Talk 21 September 1998 verse 12 ... Cached Let there be no doubt about it. The good times came with generous credit creation and low interest rates and the Fed will yield to the politicians' pressure to continue the process. Turning off the money spigot, and allowing the market to work will never be seriously considered. interest Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 9 ... Cached That is what we are witnessing today. The world-wide fragile financial system is now collapsing, and tragically the only cry is for more credit inflation because the cause of our dilemma is not understood. An attempt at credit stimulation with interest rates below one percent, is doing nothing for Japan’s economy and for a good reason: It is the wrong treatment for the wrong diagnosis. interest Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 14 ... Cached First, the Federal Reserve should be denied the power to fix interest rates and buy government debt. It should not be a central economic planner through manipulation of money and credit. interest Middle East peace: déjà vu all over again 02 November 1998    Texas Straight Talk 02 November 1998 verse 8 ... Cached The negotiations, and their product, became much more interesting as the details have been released. ‘Interesting’ may not be the right word; perhaps ‘scary’ works better. interest Middle East peace: déjà vu all over again 02 November 1998    Texas Straight Talk 02 November 1998 verse 15 ... Cached During the Cold War the US would release Iron Curtain spies in exchange for Americans or our allies. At least in the Cold War there was a direct US interest at stake. Not now; our nation is being told that if we do not release to his controllers a man who sold-out our country, then Israel would rather stay at war with the Palestinians. interest Wrong debate in House 'leadership' race 16 November 1998    Texas Straight Talk 16 November 1998 verse 6 ... Cached The most-often-made claim of leadership candidates is that, if elected, they can best balance the demands of the competing special interest groups. interest Schizophrenic foreign policy leads to problems 23 November 1998    Texas Straight Talk 23 November 1998 verse 7 ... Cached We must either be engaged in a purely schizophrenic foreign policy, or we must admit to there being such a thing as "good thugs versus bad thugs." Or, we have to say our policies are driven by the commercial interests of big business (to "protect" the availability of foreign oil, in the case of Iraq). It is hard to decide which of the three could be worse. interest Privacy Busters: Big Bank is watching 30 November 1998    Texas Straight Talk 30 November 1998 verse 13 ... Cached Despite the warm and fuzzy name, the federal regulators are not interested in the banks "getting to know their customers." Their only interest is in monitoring and controlling every aspect of life, so they can create the illusion of phantom crimes, and therefore justify their existence. With complex laws and unimaginably obscure regulations, the cards are stacked against everyone, ensuring that at any moment, the IRS or other agency can nail anyone for something. interest Unconstitutional wars gravest of crimes 21 December 1998    Texas Straight Talk 21 December 1998 verse 8 ... Cached In what should be regarded as the gravest of all crimes, these citizens were sent to their deaths unconstitutionally. And, it should be noted, for actions we lost. We lost those wars simply because they were not matters of urgency in protecting our national security, but political battles waged to appease one interest group or another. Without the full resolve of Congress and a declaration of war to protect our security, our military must deal with such vague politically correct objectives as "reducing the ability" of a foreign leader to potentially do something. How does one define a "reduced ability," let alone bring such an objective to fruition? interest Unconstitutional wars gravest of crimes 21 December 1998    Texas Straight Talk 21 December 1998 verse 14 ... Cached Never addressed, of course, is the absurdity of how one can "support" soldiers by sending them into unconstitutional battles where they will die for causes other than protecting our security interests. interest Federal government needs to step out of education 04 January 1999    Texas Straight Talk 04 January 1999 verse 9 ... Cached What's needed to release this trend toward mediocrity is not more federal spending and programs, but rather less federal intervention and more real parental control. No one should oppose making sure kids get the best education possible. Of course, the vested interests in public education programs are the first to oppose parental choice, because any given parent might choose an option other than the government schools. interest Stopping the President's New Little War 15 February 1999    Texas Straight Talk 15 February 1999 verse 15 ... Cached Troops in Kosovo will not serve the interests of the United States, nor further our national security. In fact, national security will be jeopardized as our presence in the region only increases the likelihood of needless involvement in an all-out war. Even Pentagon officials have been critical of a Kosovo operation because troops are already spread so thinly around the world, there are no defined objectives, and the resources could be better utilized. interest Contentious debate produces rubber-stamp of Kosovo 15 March 1999    Texas Straight Talk 15 March 1999 verse 5 ... Cached President Clinton is planning on sending thousands of soldiers into harms' way for an unspecified amount of time to achieve unspecified goals and without a single shred of evidence that this internal conflict affects US interests or the safety of American citizens. The American public is outraged, military leaders says this deployment will further erode readiness, and yet Congress cannot muster the courage to tell this president "no." interest Free trade rhetoric often obscures agenda 22 March 1999    Texas Straight Talk 22 March 1999 verse 5 ... Cached Claiming to be watching out for the interests of everyone, Congress passed legislation that reduces the ability of Americans to purchase steel from foreign producers. The only interests being served, though, are the labor unions. interest Free trade rhetoric often obscures agenda 22 March 1999    Texas Straight Talk 22 March 1999 verse 8 ... Cached The true free market is a threat to entrenched interests and lazy minds. The free market rewards those who are willing to work hard, produce that which people demand, and at a price they are willing to pay. interest Going from bad to worse 17 May 1999    Texas Straight Talk 17 May 1999 verse 11 ... Cached Finally, and perhaps most persuasively, is the argument from personal interest. Say your local power company has known (like the rest of us) for some three or more years of the potential problems arising from the date-reading conflict in computers, yet did nothing or very little to correct the problem. Come the stroke of midnight leading into January 1, if power goes out at home it becomes an inconvenience, as for a hospital or business. But if the company was truly incompetent, and the outage lasts into days, or weeks, as they try to manage the situation, the outage becomes costly, disastrous and potentially dangerous. Hospital generators last only so long, small businesses can stand to be closed for only a short period, and children desperately need a warm house. interest Free trade makes sense 07 June 1999    Texas Straight Talk 07 June 1999 verse 6 ... Cached In the parlance of Washington bureaucrats and politicians, as well as most special interest groups, words used in debate take on a quality similar to Orwellian double-speak. As in his classic "1984," the "Ministry of Love" was actually the department of war, today’s debates use words and phrases in ways diametrically opposed to reality. interest Free trade makes sense 07 June 1999    Texas Straight Talk 07 June 1999 verse 8 ... Cached All to often in Washington, free trade is used when one really means "subsidized trade," or, tax dollars being funneled to foreign governments to buy American products. Similarly, the phrase can mean to use tax dollars to bail-out American firms for risky overseas ventures, or managed trade by the World Trade Organization to serve powerful special interests. interest Free trade makes sense 07 June 1999    Texas Straight Talk 07 June 1999 verse 10 ... Cached Sadly, these definitions all hinge on the assumption that there are essentially only two options: tax dollars being used to subsidize corporations/foreign governments, or no trade whatsoever without the rubber stamp of government bureaucrats and special interest groups. interest Let liberty ring loudly 21 June 1999    Texas Straight Talk 21 June 1999 verse 13 ... Cached Pundits of late wonder why there seems to be a growing embrace of lawlessness, especially in the culture of youth. One must look no further than the example set by politicians and their adult constituents: ignoring the Constitution for the better part of this century, politicians pass laws in contradiction to the supreme law in attempts to further their careers by appeasing special-interest groups. The message has been clearly received by many young people: don't let the law get in the way of what you want. interest Campaign reform misses target 12 July 1999    Texas Straight Talk 12 July 1999 verse 6 ... Cached There is a tremendous incentive for every special interest group to influence government. Every individual, bank or corporation that does business with government invests plenty in influencing government. Corporate lobbyists spend over $100 million per month trying to influence Congress, while taxpayers' dollars are used by bureaucrats in efforts to convince Congress to protect their "empires." Government has tremendous influence over the economy and financial markets through interest rate controls, contracts, regulations, loans and grants. Corporations and individuals alike are forced to participate in an out-of-control system essentially as a matter of self-defense. interest Campaign reform misses target 12 July 1999    Texas Straight Talk 12 July 1999 verse 8 ... Cached All will agree that it is shameful for an elected official to capitulate to well-funded special interest groups. Unwilling to act ethically on their own, politicians will clamor for a system that diminishes the need to persuade individuals and groups to donate money to their campaigns. Instead of persuasion, they endorse coercing taxpayers to finance campaigns. This only changes the special interest groups that control government policy. Instead of voluntary groups making their own decisions with their own money, politicians and bureaucrats dictate how political campaigns will be financed and run. interest Reducing the tax reduction 26 July 1999    Texas Straight Talk 26 July 1999 verse 11 ... Cached Instead of standing firm, congressional leadership bowed to statist pressure and made significant changes to the package. The income tax reduction was itself reduced. The marriage tax stays on the books for another year. The capital gains and death taxes are only slightly reduced. And the income tax reductions hinge on there being no increases in interest outlays for total US federal government debt. Given this provision, the tax cut is very unlikely. interest Legalized theft 09 August 1999    Texas Straight Talk 09 August 1999 verse 7 ... Cached If an individual takes the money from your wallet to purchase something for himself, it is rightfully considered unlawful. Regardless of the excuse, no matter how good an item he is buying, the thief is still guilty of theft. But when a congressman does the same thing on behalf of a special interest group, it is called the law of the land. interest Legalized theft 09 August 1999    Texas Straight Talk 09 August 1999 verse 11 ... Cached Several years ago I first proposed we stop this nonsense for it is simply unconscionable that Texas' family farmers are getting taxed to provide cover for multinational corporations' stupid decisions. Only a couple of my colleagues risked the wrath of the corporate interests back then. The first week in August, however, saw several dozen Members of Congress join me in protesting this egregious policy. Unfortunately, the bipartisan, pro-largess caucus still carried the day. However, I did notice that fewer Members of Congress seem as eager to defend corporate welfare. interest A flood of bills of rights 16 August 1999    Texas Straight Talk 16 August 1999 verse 9 ... Cached We should be suspicious when it is declared we need a new "Bill of Rights." If Congress were interested in protecting the rights of individuals (whether as taxpayers, patients or travelers), then it should adhere to the principles so clearly defined in the original Bill of Rights. interest A flood of bills of rights 16 August 1999    Texas Straight Talk 16 August 1999 verse 13 ... Cached Contrary to the claims of advocates for increased government regulation of health care, the problems we face do not represent market failure, but rather the failure of government policies that have destroyed the health-care market. While it appears on the surface that the interest of the patient is in conflict with the insurance companies and the Health Maintenance Organizations (HMOs), in a free market this cannot happen. But when one side is given a legislative advantage in an artificial system, as with managed care, merely making an effort to balance government dictated advantages between patients and HMOs is impossible. The differences cannot be reconciled by more government mandates; because we are trying to patch an unworkable system, the impasse in Congress over this -- or any such issue -- should not be a surprise. interest Draft not needed for protection of liberty 23 August 1999    Texas Straight Talk 23 August 1999 verse 13 ... Cached Our nation does have a problem with recruitment and retention -- reasons often cited for keeping the draft registration. Countless surveys, though, have found these problems come not from a lack of patriotism, but because more and more Americans are frustrated with our foreign policy and the increasing number of "police actions" that put soldiers in harm's way without a national interest at stake. interest 'Say no to high taxes and spending' 27 September 1999    Texas Straight Talk 27 September 1999 verse 13 ... Cached No word better describes the problem in getting even a modest tax cut in place for taxpayers across the land than the five-letter, one-syllable word "spend." Whether it’s congressmen or presidents, bureaucrats or special interests, everyone with a hand in crafting the federal budget is committed to spending as much of your money as they can to fund pet projects and secure power bases. interest Dangerous to our health 11 October 1999    Texas Straight Talk 11 October 1999 verse 13 ... Cached While neither the current system, nor the mess produced by the House vote last week, constitutes traditional socialism, it is rather something almost worse: corporatism. As government bureaucracy continues to give preferences and protections to HMOs and trial lawyers, it will be the patients who lose, despite the glowing rhetoric from the special interests in Washington, DC. Patients will pay ever rising prices and receive declining care while doctors continue to leave the profession in droves. interest In search of a cause 25 October 1999    Texas Straight Talk 25 October 1999 verse 9 ... Cached But doesn't Congress have more serious, more pressing, issues to address? America's educational system continues its downward spiral, our economy is staggering, the trust funds continue to be raided, and our taxes continue to rise. But rather than address issues that require principled votes and a devotion to liberty, Congress seems only interested in providing politically correct, feel-good legislation. interest Taking the Next Step 29 November 1999    Texas Straight Talk 29 November 1999 verse 9 ... Cached I have also introduced the Separation of Powers Restoration Act. Again, based on reestablishing our Republic along the lines understood by our founding fathers, this bill is aimed at stopping Presidential usurpation of the constitutionally enumerated legislative powers. Through the vehicle of the executive order, various Presidents have encroached upon Congressional powers. Sadly, this has often occurred with the benign neglect, or even support of our legislative branch. This bill, which rapidly received a hearing in a key sub-committee of the House Judiciary committee, will continue to be a focal point for my activity in the next session of Congress. And, hopefully, it will continue to attract interest from a multitude of media outlets, as well as support from freedom loving Americans across our nation. interest Taking the Next Step 29 November 1999    Texas Straight Talk 29 November 1999 verse 10 ... Cached In addition to these important pieces of legislation I have introduced a number of bills designed to cut taxes on American families. Next week, I will spend more time outlining the importance of that body of legislation. Moreover, my first bill introduced this Congress was the "Social Security Preservation Act," designed to take all Social Security receipts out of the hands of the politicians and put them into a separate interest bearing account that could only be used for the purposes which those funds were taken from the taxpayers, namely the provision of public pensions through the Social Security system. This is something that everybody now claims, at least rhetorically, to support, yet still we see Social Security dollars being used to finance welfare and pork barrel spending as well as foreign aid and overseas deployment of troops in Kosovo, the Middle East and elsewhere. interest Floor Votes Reviewed 06 December 1999    Texas Straight Talk 06 December 1999 verse 8 ... Cached My final amendment voted upon this year involved ending the further funding of agencies such as the Export-Import Bank and the Overseas Private Investment Corporation, or "OPIC." These agencies take our hard earned tax dollars and send them, in the form of grants and subsidized loans, to companies doing business in other nations. This massive corporate welfare scheme is often portrayed as having some benefit to US citizens, but let's face it - only the very wealthy and very influential corporate and Wall Street interests truly benefit from such financial shenanigans. interest The New Year 10 January 2000    Texas Straight Talk 10 January 2000 verse 6 ... Cached Private computers were corrected beyond expectations, because many people did not understand or underestimated the free market's ability to adjust. The final word has not yet been heard on government computers. It may be that weeks or even months may be required to find out where the real glitches are. Most government checks, scheduled for early January, were processed in December, which may have only delayed the problems if they still exist. Evidence that the IRS computers have been corrected to adjust for calculating interest and penalties are yet to come. interest The New Year 10 January 2000    Texas Straight Talk 10 January 2000 verse 7 ... Cached It is even possible that "infected" computers may gradually interfere with corrected computers. Only time will tell if we still have any significant problems. I'm certain that if indeed we get by with minimal computer disruptions, the credit will go to the private programmers and non-government entities that knew it was in their best interest to appropriately deal with the problem. interest 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." interest The New Year 10 January 2000    Texas Straight Talk 10 January 2000 verse 9 ... Cached This type of government surveillance bothers me and could be the vehicle for getting the government "leg" in the door to gain more control over the Internet. The Internet tax is a big issue and won't go away. When government bureaucrats talk of security, they mean theirs - not ours. And I'm sure that "national security interests" will always be used as an excuse for government to have more control over the Internet. Other arguments that will be used will include the need to assist federal law enforcement efforts in fighting drugs, tax dodgers, dead-beat dads, pornography, and child molesters, etc. interest Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 6 ... Cached But one thing ignored is the fact that a fiat monetary system is incompatible with a free market economy. Instead of depending on production and savings for capital, today's economy depends on new "capital" coming from the Fed's credit machine. When credit is created out of thin air for investment purposes and interest rates are driven artificially low, mal-investment results. This monetary inflation, of which we have had plenty, has already set the stage for the next recession. interest Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 8 ... Cached Greenspan has already supervised one serious recession in the early 1990s. No matter how astute a chairman of the Federal Reserve Board is, it's impossible to avoid recessions when managing a fiat monetary system. Alan Greenspan has been quite generous when it comes to creating new money. Since 1987 when Greenspan took over, high-powered money, as measured by the monetary base, has increased by 138%. This has resulted in an increase of nearly $3 trillion of bank deposits as measured by M3. This new money creation keeps interest rates lower than they otherwise would be, making the banks and Wall Street happy. It also pleases the spendthrift politicians who during Greenspan's term have increased the national debt by $32 trillion. Almost the entire increase in the national debt since 1987 has been monetized or paid for by Greenspan printing new money. interest Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 9 ... Cached Of course, any of us would "thrive" if we could increase our wealth at that rate with borrowing and counterfeiting - but for us it's illegal. For now, foreigners' willingness to soak up our inflated dollars, while selling us goods at discount, makes us feel wealthier. But that will eventually end with higher interest rates, a weak dollar and CPI type price inflation. When this takes place, any increase in Federal Reserve credit will only accelerate the painful correction. interest Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 13 ... Cached Likewise, the world central banks have for years sold and loaned gold to keep the gold price artificially low. A rise in gold price is a vote of no confidence in paper. And it's in the interest of all central banks to keep this from happening. Their credibility is at stake. But we must remember through the 50s and the 60s, gold was "fixed" at $35 an ounce and in the 70s the markets overruled the powerful Fed and the US Treasury and vetoed this price. interest Greenspan Nominated to a Fourth Term 17 January 2000    Texas Straight Talk 17 January 2000 verse 16 ... Cached This is not to say that anyone else can do any better than the current chairman in the coming years. Central planning, whether it's in the monetary system or in the economy itself, just doesn't work. The debate should not be over who is best at managing the economy, determining the money supply and knowing the proper interest rates. It should be over whether or not we should have a monetary system that requires its manager to know things he cannot know. Instead of arguing over whether and when interest rates should go up or down, we should debate whether or not market interest rates and commodity money is superior to fiat money in preventing price inflation, recessions and painful periods of unemployment. interest Relations with Russia 31 January 2000    Texas Straight Talk 31 January 2000 verse 4 ... Cached The past month saw many interesting developments in Russia, and they have provided us with just cause for immediate concern. Of course the biggest Y2K event was the resignation of Boris Yeltsin. interest Relations with Russia 31 January 2000    Texas Straight Talk 31 January 2000 verse 8 ... Cached The Russian bear has never stopped being a ferocious one, and our own policy, which is analogous to continually poking, prodding and otherwise "climbing into the cage" with that bear, is not and has not been in our own best interests. Through the IMF, the World Bank and other such entities we have continued to provide foreign aid to the bear. In doing this we are in essence feeding a very unfriendly entity. interest Relations with Russia 31 January 2000    Texas Straight Talk 31 January 2000 verse 9 ... Cached Our US leaders have told us how we need to continue subsidizing the bear because that is the way, so they say, to keep the Russians "on our side." The latest moves indicate that Russia will pursue what is in her national interests regardless of any US subsidies they may receive. Thus, when we subsidize foreign countries, we subsidize their national interests - interests that are, more or less frequently, bound to be inimical to our own. interest Relations with Russia 31 January 2000    Texas Straight Talk 31 January 2000 verse 12 ... Cached The best way for us to break this vicious cycle seems most clear to me. We ought to recommit ourselves to a foreign policy that seeks our national interest. The components of such a policy involve a strong national defense and a policy of non-intervention abroad. That means that we should end these failed attempts to win people to our cause by giving them foreign aid payments. interest Medical Privacy Threatened 07 February 2000    Texas Straight Talk 07 February 2000 verse 8 ... Cached Forcing individuals and providers to reveal medical records without their consent also runs afoul of the Fifth Amendment’s prohibition on the taking of private property for public use without just compensation. After all, people do have a legitimate property interest in their private records; therefore, restrictions on individuals' ability to control the dissemination of their private information represent a massive taking. The takings clause is designed to prevent this type of sacrifice of individual property rights for the "greater good." interest The World Trade Organization 20 March 2000    Texas Straight Talk 20 March 2000 verse 5 ... Cached If one truly believes in free trade, one never argues a need for reciprocity or bureaucratic management of trade. If free trade is truly beneficial, as so many claim, unilateral free trade is an end in itself and requires neither treaties nor international management by politicians and bureaucrats. A country should promote free trade in its own self-interest -- never for the benefit of someone else. interest Time To Get Serious With Big Government 17 April 2000    Texas Straight Talk 17 April 2000 verse 7 ... Cached There is no real way to effectively change these policies. The very nature of the current international regime will always ensure that bad policy will flow from these institutions because they have essentially been captured by those who have an interest in maintaining and expanding the international debt and credit machine. The only way to stop these policies is to end the agencies. interest Time To Get Serious With Big Government 17 April 2000    Texas Straight Talk 17 April 2000 verse 10 ... Cached The big problem is that, as people continue to fight battles on the edges, and work exclusively with those people with whom they have long-term ties. Our nation's sovereignty continues to be eroded by internationalists who have no gumption about the niceties of what organizations they need to work with in order to advance their agenda, much less any concern about those who are injured as a result of their successful promotion of that agenda. Those of us who realize that these international organizations are the crux of the problem must begin immediately to focus our attention on the central issue, namely putting these institutions out of business. We must also understand that to be effective we need to have large coalition of people dedicated to peaceful and lawful methods who will work together to combat the considerable interests stacked up against us. interest Helping Cancer Patients and the Terminally Ill is a Moral Imperative 15 May 2000    Texas Straight Talk 15 May 2000 verse 8 ... Cached "I am hopeful that people who are truly interested in improving health care for the terminally ill and others with cancer will join me in supporting and advancing this legislation. Rather than focusing on making political points or representing the needs of special interests, this is a piece of common sense health care legislation that would serve the interests of those who are suffering. interest CARA: Environmental Protection or Destruction? 05 June 2000    Texas Straight Talk 05 June 2000 verse 8 ... Cached CARA not only necessitates the creation of a trust fund to engage in activities which are not authorized by the Constitution, it also promises to have a negative impact on property rights in general and on the environment Congress is claiming to protect. If we are truly interested in providing better land management and environmental stewardship, we should get the federal government out of the land management business. As the recent uncontrolled burns of Los Alamos show, there is literally no end to the possible ways the federal government can mismanage environmentally sensitive lands. interest Last-Minute Supplemental Spending is Dangerous and Unnecessary 10 July 2000    Texas Straight Talk 10 July 2000 verse 6 ... Cached Worse yet, much of the spending contained in the supplemental bill goes overseas. Several South American countries, including Colombia, Bolivia, and Ecuador receive a total of $1.3 billion taxpayer dollars. Colombia alone receives approximately half a billion dollars for costly helicopters and U.S. training of its police and military forces in "counternarcotics" activities. I find this a particularly dangerous and expensive proposition. Our nation should not be spending billions of dollars and sending 60 military helicopters to the Colombian Army and National Police to escalate our failed drug war. We risk another Nicaragua when we meddle in the internal politics and military activities of a foreign nation. Sending expensive helicopters to Colombia is the worst kind of pork-barrel politics- helicopters are ineffective weapons of war, as we have seen in Vietnam and Somalia. The American people are tired of paying their tax dollars to fund expensive toys for foreign governments. Taxpayers should demand that Congress demonstrate the national interest served before it sends billions to foreign nations. interest Last-Minute Supplemental Spending is Dangerous and Unnecessary 10 July 2000    Texas Straight Talk 10 July 2000 verse 7 ... Cached I also oppose the $2 billion in spending authorized for the ongoing Kosovo military action. I consistently have decried our involvement in UN "peacekeeping" missions, which really are acts of war requiring congressional approval. Moreover, our national sovereignty is threatened when we place our troops under UN command. We don't need to spend more money on Kosovo or any other foreign war the UN deems deserving. Time and time again we have seen the disastrous consequences of meddling in wars which do not involve our national interests. We should get our troops out of Kosovo and stop trying to police the world. UN "peacekeeping" in Kosovo doesn't work, and we should not be spending billions of dollars in "emergency" funds perpetuating our involvement. The American people are tired of sending our troops abroad under UN command to interfere in conflicts unrelated to our national interest. interest Last-Minute Supplemental Spending is Dangerous and Unnecessary 10 July 2000    Texas Straight Talk 10 July 2000 verse 8 ... Cached This bill contains the kind of massive foreign aid spending and political maneuvering that people in my district have had enough of. Farmers in Texas struggling with drought conditions have every reason to oppose our sending $25 million to Mozambique for disaster relief, as called for in the bill. U.S. taxpayers have every reason to oppose billions in new spending for fiscal year 2000 simply because Congress seems incapable of adhering to its budget. We cannot throw our tax dollars at every global problem, and we should not let special interests and back room deals dictate our appropriations process. interest The Disturbing Trend Toward Federal Police 31 July 2000    Texas Straight Talk 31 July 2000 verse 6 ... Cached It is important to recognize that our federal constitution lists only three federal crimes, namely counterfeiting, treason, and piracy on the high seas. The founding fathers never envisioned a federal police force, knowing that such a force would trample on the right of each state to enact and enforce its own criminal laws. Hence there is no provision for the creation of a general federal police force in the enumeration of congressional powers. Furthermore, the 10th amendment explicitly reserves the general police power to the states individually. Washington politicians, however, have no interest in constitutional limitations when they seek to expand and consolidate their power by federalizing whole areas of criminal activity. They have consistently expanded federal criminal laws, particularly in the areas of drugs and firearms. The result of this expansion is the inevitable call for more federal police to enforce the new laws. We are told we need more ATF agents to monitor firearms, and more DEA agents to wage the "war on drugs." Congress is not concerned with its lack of constitutional authority to create, much less expand a national police force. interest Help for Those with Terminal Illnesses 21 August 2000    Texas Straight Talk 21 August 2000 verse 8 ... Cached Both of these bills allow individuals who are suffering to keep more of their resources, rather than sending needed dollars to Washington. In my medical practice, I have spoken to patients suffering from terminal illnesses. Even when they have health coverage (and many do not), their disease puts a tremendous financial strain on them and their loved ones. The list of expenses they incur is nearly endless, ranging from transportation to care centers and hiring babysitters to watch their children to paying out-of-pocket costs for expensive drugs which are not fully covered. Family and friends can offer compassion and support, but Congress owes it to terminally ill persons to stop taking away the resources they need to fight cancer, AIDS, heart disease, and other terrible health problems. My hope is that citizens in my district (and my fellow legislators) who are truly interested in helping those with terminal illnesses will join me and support my legislation. interest Reforming Social Security to Protect Present and Future Senior Citizens 28 August 2000    Texas Straight Talk 28 August 2000 verse 5 ... Cached The first step we must take to reform Social Security is to protect the trust fund from big-spending politicians. I introduced H.R. 219, the "Social Security Preservation Act," for this very purpose. The Act states that all monies raised by the Social Security payroll tax will be spent solely on pension payments to beneficiaries. Any excess funds will be invested in interest-bearing certificates of deposit in order to allow the trust fund to grow, and to keep the trust fund from being used for other purposes. I am proud that the nonpartisan National Taxpayers Union reported that I was one of only seven members of the House of Representatives who voted not to spend one penny of the Social Security trust fund for other programs last year. My legislation will finally make it illegal for politicians and bureaucrats in Washington to continue dipping into trust funds. Simply put, these politicians are stealing from our senior citizens. interest The Danger of Military Foreign Aid to Colombia 11 September 2000    Texas Straight Talk 11 September 2000 verse 4 ... Cached Specifically, Colombia received 60 high-tech military helicoptors, along with hundreds of millions for training its police and military forces in "counternarcotics" activities. Clearly, this amounts to an escalation of the dangerous situation in Colombia. Time and time again we have witnessed the inevitable results of spending U.S. taxpayer dollars to fund internal conflicts in foreign nations. Apparently the current administration has not learned the lessons of Korea, Vietnam, El Salvador, or Kosovo. When we meddle in the politics (and warfare) of a foreign nation, we risk an open-ended conflict that costs billions and risks the lives of our soldiers. Obviously, U.S. military personnel will be needed to fly (and train others to fly) our modern helicopters. U.S. soldiers will train the Colombian army and national police. Despite the "war on drugs" justification, the truth is that the distinction between fighting drugs and waging war in Colombia is murky at best. We will send more money, more weapons, and more soldiers to Colombia, yet what will we receive in return? Do we really want to place our sons and daughters in harm's way so that we can influence another country's internal politics? What national interest is served by our involvement in this conflict? interest The Danger of Military Foreign Aid to Colombia 11 September 2000    Texas Straight Talk 11 September 2000 verse 5 ... Cached In recent months, we have seen increased killing in Colombia relating to its upcoming elections. As the U.S. steps up its drug interdiction, some drug cartels simply have begun to move their capital elsewhere, including Miami, according to newspaper reports. In the U.S., certain special interest groups such as helicopter manufacturers and big oil companies (who want protection for their oil interests in the region) have been supporting the administration through their lobbyists. interest The Danger of Military Foreign Aid to Colombia 11 September 2000    Texas Straight Talk 11 September 2000 verse 7 ... Cached The American people do not support our actions in Colombia. Polls have shown that approximately 70% of Americans do not support defending foreign countries if U.S. soldiers are put in jeopardy. Our primary concern in military affairs should be maintaining a strong national defense and protecting our national security interests. Our actions in Colombia have nothing to with our national defense, and they undermine our national security by creating resentment from factions we do not support. We must remember that money spent in Colombia necessarily reduces spending on a variety of more important issues. We should build up our military, providing our soldiers with better salaries, housing, and medical care. Similarly, foreign aid dollars could be spent on education, Social Security, or Medicare. My constituents do not support our dangerous and expensive involvement in Colombia, and I intend to continue working to eliminate wasteful foreign aid in our next budget. interest Spending, Tax Cuts, or Debt Reduction? 25 September 2000    Texas Straight Talk 25 September 2000 verse 6 ... Cached First and foremost, we cannot forget that our nation remains nearly $6 trillion in debt. This debt is the result of one very simple but enormous problem: over the years, Congress has spent more than the Treasury has collected in taxes. Note that Congress, rather than any particular administration, is responsible for creating this debt. Congress alone determines how much is spent when it passes appropriations bills each year. When Congress spends more than it has, it must (like any family or business) borrow money. Eventually we all pay for this fiscal irresponsibility, as more and more of the government's annual budget is spent on interest payments. Even worse, this debt has caused the Federal Reserve to authorize the printing of more and more money during past decades, creating price inflation and making your dollars worth less. interest "Privatization" of Social Security Poses Risks 02 October 2000    Texas Straight Talk 02 October 2000 verse 9 ... Cached Furthermore, government involvement in the private stock market would have dangerous consequences. Who would decide what stocks, bonds, mutual funds, or other investment vehicles were approved? Which politicians would you trust to create an investment portfolio with your taxes? The federal government has proven itself incapable of good money management, and permitting politicians and bureaucrats to make investment decisions would result in unscrupulous lobbying for venture capital. Large campaign contributors and private interests of every conceivable type would seek to have their favored investments approved by the government. In a free market, an underperforming or troubled company suffers a decrease in its stock price, forcing it either to improve or lose value. Wary investors hesitate to buy its stock after the price falls. If the company successfully lobbied Congress, however, it would enjoy a large investment of your tax dollars. This investment would cause an artificial increase in its stock price, deceiving private investors and unfairly harming the company's honest competition. Government-managed investment of tax dollars in the private market is a recipe for corruption and fiscal irresponsibility. interest Drug Re-Importation Will Lower Prescription Drug Costs 09 October 2000    Texas Straight Talk 09 October 2000 verse 9 ... Cached The administration’s plan would grant the FDA new investigative powers to monitor online drug sales. The administration also wants to impose massive penalties on non-complying online pharmacies and increase the FDA budget for the hiring of more online snoops. As usual, the government’s approach to the problem is more government; in this case increased FDA regulations to bring all online pharmacies under federal control (even those which comply with existing state laws). Of course, contrary to conventional wisdom, the FDA is not an independent agency working to "protect" you. Instead, government regulators have worked hand-in-glove with powerful pharmaceutical industry interests for more than a century. Is it any wonder that the FDA and its lobbyist-influenced regulations have done nothing but drive up the price of prescription drugs? interest Drug Re-Importation Will Lower Prescription Drug Costs 09 October 2000    Texas Straight Talk 09 October 2000 verse 10 ... Cached The proposed crackdown on online pharmacies simply serves the existing entrenched pharmaceutical interests at the expense of price competition. As a result, you and I end up paying more for our prescriptions. However, the re-importation agreement reached this week encourages me that others in Congress are beginning to favor the free-market approach. Undoubtedly many are responding to polls showing that a large majority of Americans support drug re-importation. I applaud my colleagues who support the measure, and I plan to use this momentum to seek passage of the "Pharmaceutical Freedom Act." Congress must allow all Americans to benefit from worldwide price competition for prescription drugs. interest The Appropriations Process Poses a Risk to American Taxpayers 06 November 2000    Texas Straight Talk 06 November 2000 verse 3 ... Cached Congress has nearly completed the controversial appropriations process for fiscal year 2001. The 13 appropriations bills that will be passed this year represent "discretionary" spending, which funds thousands of federal programs and agencies. By contrast, permanent law, funding Medicare, Medicaid, Social Security, and interest on the national debt sets "mandatory" spending. The appropriations process is critically important to taxpayers, because Congress is deciding how to spend YOUR money. As usual, the discretionary portion of the 2001 federal budget contains a staggering amount of special-interest pork. Spending levels for federal programs, foreign aid, and wasteful agencies have been increasing steadily throughout the 1990s. Unfortunately, this Congress has not demonstrated a willingness to change its reckless spending habits. Recent partisan posturing aside, taxpayers once again will pay for record amounts of needless federal spending. interest The Appropriations Process Poses a Risk to American Taxpayers 06 November 2000    Texas Straight Talk 06 November 2000 verse 6 ... Cached Some statistics help put congressional spending habits in perspective. In the past three years alone, discretionary spending has increased by almost 16%. In those same three years, spending for the departments of Labor, Health and Human Services, and Education has grown by nearly 30 percent. In just two years, spending for the department of Agriculture has increased by a whopping 47 percent! These discouraging trends reflect the longstanding obstacle to real budget reform: year-end pork spending for special interests to protect congressional seats. interest The Appropriations Process Poses a Risk to American Taxpayers 06 November 2000    Texas Straight Talk 06 November 2000 verse 7 ... Cached A terrible example of pork-barrel spending is evident in the 2001 Military Construction appropriations bill. Several South American countries receive more than 1.3 billion taxpayer dollars to purchase helicopters and other military hardware to help them fight the "drug war." While this spending certainly is objectionable to any American opposed to foreign aid and meddling in foreign affairs, the truth is American companies that provide the helicopters directly benefit from the spending. The rhetoric in Congress about fighting drugs obscures the true goal of satisfying special interests. This represents exactly the type of unjustifiable spending that must be eliminated from the discretionary budget. interest Our Foolish War in the Middle East 20 November 2000    Texas Straight Talk 20 November 2000 verse 5 ... Cached It is clear that we are not in the Middle East for national security reasons, but rather to protect powerful commercial interests. This assures we protect oil supplies for the West, and provides us with an excuse to keep the military industrial complex active. interest Our Foolish War in the Middle East 20 November 2000    Texas Straight Talk 20 November 2000 verse 8 ... Cached Our policy in the Middle East cannot possibly be successful. It's obvious there will be an inevitable conflict between our support for the moderate Arabs- which antagonizes the Islamic fundamentalists in the region- and our special treatment for Israel. It is clear that powerful financial interests in this country want to use our military force to protect their commercial and oil interests in the region, while at the same time there always will be powerful U.S. political support for the State of Israel. The two sides never will be reconciled by our attempt to support both. interest Activist Courts Threaten Our Liberty 04 December 2000    Texas Straight Talk 04 December 2000 verse 4 ... Cached The presidential election controversy not surprisingly reached the Florida Supreme Court, which rendered a verdict stunningly at odds with Florida law. Of course both camps in the dispute are guilty of exhibiting a "win at all costs mentality", using teams of lawyers to piously argue against the "injustices"they have suffered. Both are interested only in the final outcome, despite their shameless references to the Constitution and the "rule of law." Even in this atmosphere, however, most Americans still expected the Court to issue an impartial decision based on a rational interpretation of Florida law. It appears, however, that the Court simply ignored the plain language of state voting laws (and the Constitution) and imposed its political will on the people of Florida and the nation as a whole. The decision perhaps is not surprising, however, in light of the trend toward activist courts in our country. interest Activist Courts Threaten Our Liberty 04 December 2000    Texas Straight Talk 04 December 2000 verse 6 ... Cached Today, however, judges at every level increasingly engage in shaping the law to meet their particular political and social agendas. Liberal/collectivist interests especially have found a sympathetic audience among our federal judges, who have been willing accomplices in crafting liberal legislation and overriding properly enacted state law. Perhaps the most egregious example of judicial legislation is the infamous Roe v. Wade Supreme Court decision, which created a federal constitutional "right" to abortion out of thin air. While the collectivist agenda is advanced, activist courts have refused to uphold economic due process rights and property rights. The result is a legal landscape where all manner of fabricated social rights are upheld (e.g. entitlements), while true constitutional rights (e.g. gun ownership, religious freedom) are trampled. interest A Republic, Not a Democracy 12 December 2000    Texas Straight Talk 12 December 2000 verse 6 ... Cached Our Founders instituted a republican system to protect individual rights and property rights from tyranny, regardless of whether the tyrant was a king, a monarchy, a congress, or an unelected mob. They believed that a representative government, restrained by the Bill of Rights and divided into three power sharing branches, would balance the competing interests of the population. They also knew that unbridled democracy would lead to the same kind of tyranny suffered by the colonies under King George. In other words, the Founders had no illusions about democracy. Democracy represented unlimited rule by an omnipotent majority, while a constitutionally limited republic was seen as the best system to preserve liberty. Inalienable individual liberties enshrined in the Bill of Rights would be threatened by the "excesses of democracy." interest A Legislative Agenda for 2001 01 January 2001    Texas Straight Talk 01 January 2001 verse 3 ... Cached Spending reform should be the foremost priority for the new Congress. The fiscal year 2001 budget is bloated with billions of dollars in unnecessary and counterproductive spending. The Clinton administration successfully pushed through spending increases far beyond those of the previous year. Several federal agencies and bureaucracies received even more in funding than originally requested in the Clinton budget. Dangerous foreign aid spending also grew, sending more of your tax dollars overseas and intensifying conflicts in trouble spots like Colombia, Kosovo, and the Middle East. Despite rosy predictions about the federal "surplus," the truth is that 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. Government spending not only affects our fiscal health as a nation; it also determines the size and scope of government power over our lives. Congress must show the resolve needed to challenge business as usual in Washington and dramatically cut spending. interest The Ashcroft Controversy Exposes Disdain for Conservative Principles 22 January 2001    Texas Straight Talk 22 January 2001 verse 3 ... Cached The Senate conducted hearings this week concerning the nomination of John Ashcroft for the position of Attorney General in the Bush administration. As anticipated, the debate has been rancorous and bitterly partisan. The longstanding practice by the Senate of generally approving cabinet nominees, thus allowing a new President the spoils of his victory, has eroded almost completely in the past two decades. The old standard for Senate approval simply was competence for the job, without regard to a nominee's personal politics. Mr. Ashcroft clearly is competent and very highly qualified for the job of Attorney General. In the new era, however, his political views are the primary focus of his opponents. Certain Senators, special interest groups, and the media have made it quite clear: the left will attack and characterize as unfit for high public office anyone who adheres to conservative principles. Their true goal is to create a precedent for the automatic disqualification of future cabinet nominees who disagree with their view of the proper role of the federal government. "Will he enforce all the laws?" they intone endlessly. What they really are asking is: "Will he question our efforts to continually expand the size and scope of the federal government?" interest "Buy American," Unless... 12 February 2001    Texas Straight Talk 12 February 2001 verse 4 ... Cached Of course most politicians claim that they support free trade. Intuitively, most Americans understand that access to foreign markets provides significant benefits to US citizens and American-based corporations. However, we continue to pursue a policy of denying or restricting domestic companies from selling to Cuba, Iraq, Iran, China, and other countries. This inconsistency is especially evident when we consider "export financing," which really is foreign aid designed to help other countries buy American goods. Most Washington politicians support the practice of export financing, arguing that access to foreign markets benefits American companies, and not just foreign consumers. However, the opposite argument is made with regard to our embargo policies. Suddenly, increased trade with countries some want to label as unworthy only benefits sinister foreign consumers, and not domestic producers. This nonsensical position is maintained by many in government who favor government-managed trade which benefits certain chosen special interests. interest "Buy American," Unless... 12 February 2001    Texas Straight Talk 12 February 2001 verse 5 ... Cached Conflicting and inconsistent views on trade policy result largely from a lack of understanding of basic economic principles. Free trade is not a zero-sum game where some countries benefit and others inevitably suffer. On the contrary, true free trade by definition benefits both parties. Free trade is the process of free people engaging in market activity without government interference such as tariffs or managed-trade agreements. In a true free market, individuals and companies do business voluntarily, which means they believe they will be better off as a result of a transaction. Tariffs, taxes, and duties upset the balance, because governments add costs to the calculation which make doing business less attractive. Similarly, so-called managed trade agreements like WTO favor certain business interests and trading nations over others, which reduces the mutual benefit inherent in true free trade. interest "Buy American," Unless... 12 February 2001    Texas Straight Talk 12 February 2001 verse 6 ... Cached The ultimate result of our embargo policies is obvious: when our government prevents American companies from selling their goods abroad, it creates an economic hardship for those companies and their employees. Similarly, when the government prevents American consumers from buying the goods or services they want from certain countries, it simply diminishes the living standards of those Americans. Washington intervention in international trade only benefits certain special interests for a short time. In the long run, the vast majority of American citizens and businesses would benefit from unfettered access to all foreign markets. An example is the relatively unregulated software industry, where American companies absolutely dominate the global marketplace. Americans don't need help competing, but they do need a government which does not hinder their access to foreign markets. By following the current policy of government-managed trade and special interest favoritism, Congress is harming the constituents it was elected to represent. The sooner we adopt policies which promote free exchange with all nations, the better off our nation and its people will be. interest Economic Woes and the Federal Reserve 19 March 2001    Texas Straight Talk 19 March 2001 verse 6 ... Cached Such thinking should be dismissed as absurd. Economic recessions are not the result of a gloomy national state of mind; if so, we could create economic prosperity simply by positive thinking. Yet basic education in economics is so badly lacking in America that many will accept this preposterous idea. The same ignorance of economic principles is behind the fallacy that capitalism is to blame for recessions, that a free market system causes an inevitable cycle of booms and busts. In reality, it is government intervention in the economy, particularly in the areas of money supply and interest rates, which creates the precarious financial bubbles that cause economic recessions. interest Economic Woes and the Federal Reserve 19 March 2001    Texas Straight Talk 19 March 2001 verse 7 ... Cached The Federal Reserve did two things to artificially expand the economy over the last decade. First, it relentlessly lowered interest rates whenever growth slowed. Interest rates should be set by the free market, with the availability of capital (i.e. savings) determining the cost of borrowing money. In a healthy market economy, more saving equals lower interest rates. When savings rates are low, capital dries up and the cost of borrowing increases. When interest rates are set by the market, individuals and businesses make good spending decisions, because they pay an accurate interest rate for their debts. However, when the Fed set rates artificially low, the cost of borrowing becomes cheap. Individuals incur greater amounts of debt (evidenced by the record number of personal bankruptcies), while businesses overextend themselves and grow without real gains in productivity. The bubble bursts quickly once the credit dries up and the bills cannot be paid. interest "Campaign Finance Reform" Serves Entrenched Interests in Washington 09 April 2001    Texas Straight Talk 09 April 2001 verse 2 ... Cached "Campaign Finance Reform" Serves Entrenched Interests in Washington interest "Campaign Finance Reform" Serves Entrenched Interests in Washington 09 April 2001    Texas Straight Talk 09 April 2001 verse 3 ... Cached Last week the Senate narrowly passed the highly publicized McCain-Feingold campaign finance bill. I certainly understand that many Americans are tired of the corruption in Washington, where special interest lobbies pursue their agendas at the expense (literally) of the nation's taxpayers. Everyone knows that politicians use federal spending to reward lobbies, certain constituencies, and favored individuals. However, we must recognize that the McCain bill places restrictions only on individuals, not politicians. Politicians will continue to tax and spend, meaning they will continue to punish some productive Americans while rewarding others with federal largesse. The same vested special interests will not go away, and the same influence peddling will happen every day on Capitol Hill. The reason is very simple: when the federal government redistributes trillions of dollars from some Americans to others, countless special interests inevitably will fight for the money. The rise in corruption in Washington simply mirrors the rise in federal spending. The problem is not with campaigns, but rather with the steady shift from a relatively limited federal government to a virtually socialist system intent on huge redistributions of wealth. interest "Campaign Finance Reform" Serves Entrenched Interests in Washington 09 April 2001    Texas Straight Talk 09 April 2001 verse 7 ... Cached Grass roots organizations and third-party candidates especially suffer when contributions are limited. Such groups are prohibited from raising needed seed money from sympathetic wealthy donors interested in funding a new political movement. Millions of voters might be attracted to a third party, but they lose interest when their candidate garners very little publicity or is not on the ballot. It is virtually impossible for grass roots campaigns and new parties to match the established parties $1,000 at a time. interest The Case Against the Income Tax 07 May 2001    Texas Straight Talk 07 May 2001 verse 6 ... Cached America without an income tax would be far more prosperous and far more free, but we must be prepared to fight to regain the liberty we have lost incrementally over the past century. I recently introduced "The Liberty Amendment," legislation which would repeal the 16th Amendment and effectively abolish the income tax. I truly believe that real tax reform, reform that so many frustrated Americans desperately want, requires bold legislation that challenges the Washington mind set. Congress talks about reform, but the current tax debate really involves nothing of substance. Both parties are content to continue tinkering with the edges of the tax code to please various special interests. The Liberty Amendment is an attempt to eliminate the system altogether, forcing Congress to find a simple and fair way to collect limited federal revenues. Most of all, the Liberty Amendment is an initiative aimed at reducing the size and scope of the federal government. interest The Deepening United Nations Quagmire 14 May 2001    Texas Straight Talk 14 May 2001 verse 5 ... Cached I proposed two substantive amendments to the State Department bill, both of which were rejected without debate and without a vote. One would have eliminated US funding for UN "peacekeeping" missions; the other would have eliminated US funding for worldwide abortion and family planning. These proposals were ignored because Congress does not want to address the real issue of whether we should continue to participate in an organization that serves no national interest and threatens our national sovereignty. interest The Bush Tax Cut 11 June 2001    Texas Straight Talk 11 June 2001 verse 3 ... Cached Last week President Bush signed into law the tax cut bill that ultimately emerged as a compromise between competing political interests in the House and Senate. I voted for and fully support the tax reductions contained in the bill, and I appreciate the President's efforts in making tax relief the first priority in his new administration. However, I am disappointed that Congress was unable to pass far more significant and immediate tax relief. Unfortunately, big spenders from both parties worked hard to characterize the tax cut as a "gift" from government to American taxpayers, as though the money belongs to Congress! These pro-tax politicians believe every penny of the bloated $2 trillion federal budget is essential to their beloved pork programs, hence they always argue that "we" cannot afford a tax cut. Millions of American families, however, certainly can afford a tax cut that leaves more money in their paychecks. So while the final bill passed last week represents a political compromise, I believe there is broad public support outside Washington for much larger tax reductions. Congress should not allow the wasteful spenders to prevent passage of further needed tax cut legislation over the coming months. interest End Trade Sanctions that Hurt Texas Farmers 25 June 2001    Texas Straight Talk 25 June 2001 verse 6 ... Cached Still, support for sanctions continues in Congress. The House International Relations committee last week considered legislation that will extend existing economic sanctions against Iran and Libya for another 5 years. While I certainly oppose this legislation, I did agree with the President that we should at least limit the time period to 2 years, so that Congress could reassess the policy sooner. I introduced an amendment to this effect, but the majority of committee members voted to continue "punishing" Iran and Libya for 5 years; presumably some members would agree to maintain sanctions indefinitely. Interestingly, the bill focuses on preventing oil exploration and development in the region, even when new sources of oil are sorely needed to reduce prices at the pump for American consumers. interest End Trade Sanctions that Hurt Texas Farmers 25 June 2001    Texas Straight Talk 25 June 2001 verse 7 ... Cached I certainly understand the emotional feelings many Americans have toward nations such as Iran, Iraq, Libya, and Cuba. Yet we must not let our emotions overwhelm our judgment in foreign policy matters, because ultimately human lives are at stake. For example, 10 years of trade sanctions against Iraq, not to mention aggressive air patrols and even bombings, have not ended Saddam Hussein's rule. If anything, the political situation has worsened, while the threat to Kuwait remains. The sanctions have, however, created suffering due to critical shortages of food and medicine among the mostly poor inhabitants of Iraq. So while the economic benefits of trade are an important argument against sanctions, we must also consider the humanitarian argument. Our sanctions policies undermine America's position as a humane nation, bolstering the common criticism that we are a bully with no respect for people outside our borders. Economic common sense, self-interested foreign policy goals, and humanitarian ideals all point to the same conclusion: Congress should work to end economic sanctions against all nations immediately. interest UN War Crimes Tribunal Cannot Create Peace 09 July 2001    Texas Straight Talk 09 July 2001 verse 6 ... Cached We also should not deceive ourselves that the rest of the world necessarily will accept UN-ordained outcomes in future conflicts. The Chinese reportedly have criticized the Milosevic trial as evidence of western desire to assert hegemonic power and interfere in the domestic affairs of other countries. One high-ranking Chinese leader flatly accused "hostile foreign powers" of using the pretext of international humanitarianism to interfere in domestic Chinese matters. The UN is a highly political body, and it is naive to believe that it does not favor certain national interests over others. Violent conflicts inevitably will arise when some nations refuse to accept the UN role as the arbiter of the world's geo-political conflicts. interest Congress Sends Billions Overseas 23 July 2001    Texas Straight Talk 23 July 2001 verse 4 ... Cached Last week Congress approved two separate appropriations measures that fund the State department and various foreign operations. Both are replete with foreign aid spending that either fails to achieve policy goals or actually harms American interests. The carrot-and-stick approach to foreign policy never works; we only end up with dependent allies and increasingly hostile enemies (who resent our failure to fund them). The State department bill contained nearly $1.7 billion in UN funding; $844 million for U.S. dues payments, and $850 million for so-called "peacekeeping"operations, which really are acts of war. I offered amendments to block this UN funding, which were supported by more than 60 of my colleagues. However, far more support is needed to end U.S. taxpayer funding of that most anti-American organization. interest Free Trade Means No Tariffs and No Subsidies 30 July 2001    Texas Straight Talk 30 July 2001 verse 3 ... Cached Congress recently considered several trade-related measures containing massive subsidies for American corporations that sell their products overseas. For example, the Export-Import bank received more than $750 million in appropriations funding last week. The biggest beneficiary of this money is China, which has used Ex-Im funds to build nuclear power plants, expand its state-run airline, and even build steel factories that compete directly with our own struggling domestic steel industry. Undoubtedly the American companies who benefit from contracts with China are happy with these trade subsidies, but American taxpayers should not be forced to pay for corporate welfare that simply benefits some politically favored interests. I introduced an amendment to completely defund the Ex-Im bank, because true free trade cannot flourish when subsidies interfere with healthy market competition. Unfortunately, however, the debate in Washington tends to focus on which nations and companies should be subsidized, rather than whether American taxpayers should pay for trade subsidies at all. interest Free Trade Means No Tariffs and No Subsidies 30 July 2001    Texas Straight Talk 30 July 2001 verse 4 ... Cached I focus on the Constitution when voting on trade issues. This approach leads me to always oppose trade subsidies, as there is no enumerated power that gives Congress authority to send your money abroad to help big corporations sell their products. The current system allows the most powerful interests, with the largest political lobbies, to prevail in the Congressional pork subsidy game. So the biggest corporations tend to get bigger, while smaller competitors face a very uneven playing field. This is not free trade, but rather government-mangaged trade epitomized by international bodies like NAFTA and the WTO. As noted Austrian economist Murray Rothbard explained, we don't need government agreements to have free trade. In fact, true free trade means just the opposite- true free trade occurs only when government is not involved at all. We must remember that government-managed trade always means political favoritism. Merit, rather than politics, should determine which companies succeed in the export markets. Congress should abide by the Constitution and get out of the subsidy business altogether, so that real free trade can work and benefit all Americans. interest What Happened to the Surplus? 20 August 2001    Texas Straight Talk 20 August 2001 verse 4 ... Cached First, any budget surplus is a single-year surplus only. The federal government remains trillions of dollars in debt, and interest payments on that debt represented a whopping 17% of all federal spending in 2000. So we should not kid ourselves that the federal government is fiscally stable simply because a booming economy greatly increased federal revenues over the last few years. interest The Fed Cannot Create Prosperity 03 September 2001    Texas Straight Talk 03 September 2001 verse 4 ... Cached All of these economic problems have developed despite the massive interest rate- cutting measure taken by the Fed over the past two years. Chairman Greenspan has cut interest rates 7 times in 2001 alone, most recently in mid-August. However, the markets have not responded, and Wall Street continues to pressure the Fed to reduce rates even more. This trend developed steadily throughout the 1990's- each time the economy showed signs of a downturn, the Fed cut rates. Yet it is becoming apparent that this practice cannot work forever, and that every short-term fix simply puts off the inevitable painful correction that must follow. interest The Fed Cannot Create Prosperity 03 September 2001    Texas Straight Talk 03 September 2001 verse 5 ... Cached The Japanese economy provides a vivid example of the futility of manipulating interest rates. Japan's central bank began cutting rates more than a decade ago, but the country remains mired in a stagnant economy. Ultimately, interest rates were cut to zero, where they have remained for several years. This rate-cutting has failed to stimulate the economy, however. The Nikkei stock market index remains at 1980s levels, while Japanese unemployment recently reached 5%, the highest rate in decades. The Japanese experience should tell us that prosperity cannot be created out of thin air by a central bank. interest The Fed Cannot Create Prosperity 03 September 2001    Texas Straight Talk 03 September 2001 verse 6 ... Cached Still, while some in America have begun to challenge the wisdom of Alan Greenspan, few seem to question the concept of the Fed bank itself. In fact, the financial and political press never discuss the dangers of a fiat currency system managed by a centralized bank. Remember, every time the Fed cuts interest rates, it expands the amount of money in the economy. Economists have a simple word for this increase in the money supply: inflation. Inflation means your money has less buying power and your retirement savings are worth less. Yet we never hear the Fed criticized for its inflationary measures- on the contrary, Greenspan was widely praised throughout the 1990s as the all-knowing sage responsible for the good times. interest The Fed Cannot Create Prosperity 03 September 2001    Texas Straight Talk 03 September 2001 verse 8 ... Cached In a truly free society, interest rates should be set by the market. The laws of supply and demand work better than any government bureaucrat in determining the correct cost of money, and without the political favoritism and secrecy that characterize central banks. Americans should not tolerate the manipulation of our economy and the inflation of our currency by an unaccountable institution. The turbulent period we are entering may serve to remind Americans that the Fed cannot suspend the laws of economics. The key to lasting prosperity is a return to true private banking, where interest rates are set by the free market and dollars are backed by gold. interest Conflicts at the UN Conference on Racism 10 September 2001    Texas Straight Talk 10 September 2001 verse 7 ... Cached I hope the highly publicized infighting at this latest conference will demonstrate how truly political the UN really is. Like all political organizations, the UN exists to serve the interests of certain parties at the expense of others. It is no more impartial or altruistic than the governments and people it now wants to condemn for the sins of the past. In fact, it acts precisely as the colonial powers did- by constantly expanding its global governance and waging war to conquer nations that resist its authority. The UN's plans for control over every nation on earth make the imperialists of past centuries pale in comparison. interest America Retains its Sovereign Right to Respond to Attacks 08 October 2001    Texas Straight Talk 08 October 2001 verse 3 ... Cached The tragic events of September 11th have led to renewed calls for the expansion of global government. Terrorism, we are told, is an international problem- and therefore the United States must subordinate its interests and defer to the international community before taking military action. Of course it's certainly commendable that President Bush is trying to build an international coalition to fight terrorism, and we should be enormously grateful to our allies for their support during these trying times. Yet we must never allow our national sovereignty to be eroded in the name of international cooperation. We cannot forget that our Constitution grants Congress and the President complete authority to provide for national defense and declare war. International support for our efforts against Bin Laden is desirable, but we do not need anyone's permission to act. Remember, the terrorists attacked on American soil and killed mostly American citizens. No international coalition can or should attempt to dictate our response. interest Business as Usual in Washington? 29 October 2001    Texas Straight Talk 29 October 2001 verse 4 ... Cached We should remember that the policies of the American government, designed by politicians and bureaucrats, are not always synonymous with American ideals. The country is not the same as the government. The spirit of America is hardly something for which the government holds a monopoly on defining. America's heart and soul is more imbedded in our love for liberty, self-reliance, and tolerance than by our foreign policy, driven by powerful special interests with little regard for the Constitution. interest Business as Usual in Washington? 29 October 2001    Texas Straight Talk 29 October 2001 verse 12 ... Cached Emotions are running high in our nation's capital- and in politics, emotions are more powerful tools than reason and the rule of law. The use of force to serve special interests and help anyone who claims to be in need is now an acceptable practice. Constitutional restraints are seen as archaic and insensitive to people's needs. Yet far too often the claims cloaked as relief for human tragedies are nothing more than politics as usual. While one group supports bailing out the corporations, another wants to prop up wages and jobs. Envy and power drive both sides- the special interests of big business and the demands of the welfare redistribution crowd. interest Expansion of NATO is a Bad Idea 12 November 2001    Texas Straight Talk 12 November 2001 verse 4 ... Cached Consider our participation in NATO, which commits American military forces to conflicts that serve no national interest. Congress voted last week to expand NATO and increase the number of countries we are obligated to defend, even while our own military forces are stretched far to thin around the globe. Department of Defense figures show that 250,000 American troops are deployed on 6 continents and 141 nations. When we suffered the September 11th attack on our own shores, we were forced to call on foreign nations to supply AWACS planes and defend our domestic airspace! Our military entanglements, especially NATO, have left us relying on foreigners to defend us- yet this is exactly what the globalists want. They want us to lose our sense of national sovereignty, so that America's national defense becomes a matter of international consensus. Only by removing ourselves from NATO and the UN can we reassert our fundamental right to defend our borders without the approval or participation of any international coalition. interest Expansion of NATO is a Bad Idea 12 November 2001    Texas Straight Talk 12 November 2001 verse 8 ... Cached As the world's foremost military power, it always seems that our money, our weapons, and our troops play the primary role in any NATO military action. It's a one-way street, however, as our NATO partners are not so enthusiastic about defending us. Some NATO states have refused outright to participate in our campaign in Afghanistan, while presumably reliable allies like France and Germany have expressed serious doubts. Only England, with whom we share a very strong kinship regardless of NATO, fully supports our actions. It's time for America to recognize that the interests NATO serves are not our own. interest Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 6 ... Cached The SEC, like all government agencies, is not immune from political influence or conflicts of interest. In fact, the new SEC chief used to represent the very accounting companies now under SEC scrutiny. If anything, the Enron failure should teach us to place less trust in the SEC and to question its existence. Yet many in Congress and the media characterize Enron's bankruptcy as an example of unbridled capitalism gone wrong. interest Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 8 ... Cached The Fed consistently increased the money supply (by printing dollars) throughout the 1990s, while simultaneously lowering interest rates. When dollars are plentiful, and interest rates are artificially low, the cost of borrowing becomes cheap. This is why so many Americans are more deeply in debt than ever before. This easy credit environment made it possible for Enron to secure hundreds of millions in uncollateralized loans, loans that now cannot be repaid. The cost of borrowing money, like the cost of everything else, should be established by the free market- not by government edict. Unfortunately, however, the trend toward overvaluation will continue until the Fed stops creating money out of thin air and stops keeping interest rates artificially low. Until then, every investor should understand how Fed manipulations affect the true value of any company and the level for the markets. interest Stimulus or Spending? 24 December 2001    Texas Straight Talk 24 December 2001 verse 3 ... Cached Congress adjourned for the year last week, leaving an economic stimulus bill in the hands of the Senate. Partisan spending interests in that body killed the bill, however, leaving the President without the jump start for the flagging economy that he sought. I certainly supported the President's efforts to pass tax relief this year, and it's unfortunate that the political climate in Washington prevented passage of even a very small tax cut. I only wish new spending measures were as contentious and difficult to pass through Congress! interest Stimulus or Spending? 24 December 2001    Texas Straight Talk 24 December 2001 verse 5 ... Cached These obvious economic realities are lost on most Washington politicians, who either fail to understand basic economics or choose to ignore the long-term harm they cause. Many in Congress fought to add billions in wasteful pork spending to the stimulus bill. Of course the lobbyists and the special interests love any new spending, because it "stimulates" certain industries and groups. It's easy for politicians to point to the benefits of such spending; for example, a government contract certainly creates new jobs, right? The fallacy, of course, is that we never see the economic growth that would have been created if those tax dollars had never been sent to Washington in the first place. Remember, the private marketplace is always far more efficient that any government program. You know better than the government how to spend your own money, and the same principle applies to the economy as a whole. Spending is spending, even when politicians call it "investing in America" or "stimulus." Government cannot simply spend us into prosperity. interest 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. interest Argentine Default and the IMF 14 January 2002    Texas Straight Talk 14 January 2002 verse 3 ... Cached Imagine a hypothetical bank run by a group of international executives operating behind closed doors, making decisions of enormous international importance. Imagine the bank consistently made high-risk loans to shaky governments with weak economies and currencies. Imagine it made those loans at substantially below-market interest rates, even though the risks involved warranted high interest rates. Imagine it knew that certain corporate interests would benefit directly from contracts awarded by the borrowing nations. Finally, imagine the bank schemed with governments around the world to have taxpayers foot the bill for the predictable losses stemming from bad loans. Surely no reasonable person would invest his money in such an institution, right? interest 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. interest Argentine Default and the IMF 14 January 2002    Texas Straight Talk 14 January 2002 verse 7 ... Cached The recent financial collapse in Argentina provides a perfect example of the folly of IMF "assistance." Although the Argentine economy has been in serious trouble for several years, IMF loans with an incredibly low interest rate of 2.6% kept pouring into the country. According to Congressman Jim Saxton, Chairman of the Joint Economic Committee, this "continued lending over many years sustained and subsidized a bankrupt Argentine economic policy, whose collapse is now all the more serious. The IMF's generous subsidized bailouts lead to moral hazard problems, and enable shaky governments to pressure the IMF for even more funding or risk disaster." Yet unless Congress acts this year, U.S. taxpayers will be forced to pay for even more bad loans to equally unstable countries. interest WTO Demands Change in U.S. Tax Laws 21 January 2002    Texas Straight Talk 21 January 2002 verse 7 ... Cached This latest affront to our sovereignty makes it clear we must get out of the WTO if we hope to avoid further international meddling in our domestic affairs. The WTO is not about free trade, but rather government-managed trade that benefits certain corporate interests. The Constitution grants Congress, and Congress alone, the authority to regulate trade and craft tax laws. Congress cannot cede even a small part of that authority to the WTO or any other international body, nor can the President legally sign any treaty which purports to do so. America's Founders never intended for our nation to become entangled in international trade agreements, and they certainly never intended to have our laws overridden by international bureaucrats. Congress may not object to being pushed around by the WTO, but the majority of Americans do. interest Enron: Under-Regulated or Over-Subsidized? 28 January 2002    Texas Straight Talk 28 January 2002 verse 7 ... Cached Enron similarly benefitted from another federal boondoggle, the Overseas Private Investment Corporation. OPIC operates much like the Ex-Im Bank, providing taxpayer-funded loan guarantees for overseas projects, often in countries with shaky governments and economies. An OPIC spokesman claims the organization paid more than one billion dollars for 12 projects involving Enron, dollars that now may never be repaid. Once again, corporate welfare benefits certain interests at the expense of taxpayers. interest Why Is There So Much Money In Politics? 04 February 2002    Texas Straight Talk 04 February 2002 verse 5 ... Cached I agree with him that a big problem exists. Special interest money has a huge influence in Washington, and it has a tremendous effect on both foreign and domestic policy. Yet we ought to be asking ourselves why corporations and interest groups are willing to give politicians millions of dollars in the first place. Obviously their motives are not altruistic. Simply put, they do it because the stakes are so high. They know government controls virtually every aspect of our economy and our lives, and that they must influence government to protect their interests. Our federal government, which was intended to operate as a very limited constitutional republic, has instead become a virtually socialist leviathan that redistributes trillions of dollars. We can hardly be surprised when countless special interests fight for the money. The only true solution to the campaign money problem is a return to a proper constitutional government that does not control the economy. Big government and big campaign money go hand-in-hand. interest Optimism or Pessimism for the Future of Liberty? 11 February 2002    Texas Straight Talk 11 February 2002 verse 7 ... Cached The economic ramifications of our war on terrorism are also quite serious. Although the recession certainly cannot be blamed solely on the September 11th attacks, the huge increases in federal spending and the effects of all the new regulations cannot help the recovery. When one adds up the domestic costs, the military costs, and the costs of new regulations, it is certain that deficits will grow significantly. The Federal Reserve will remain under great pressure to continue its dangerous monetary inflation by printing dollars and expanding credit. This policy will result in higher rather than lower interest rates, a weak dollar, and rising prices. The danger of our economy spinning out of control cannot be dismissed. interest Don't Believe the Hype- "Campaign Finance Reform" Serves Entrenched Interests 18 February 2002    Texas Straight Talk 18 February 2002 verse 3 ... Cached Serves Entrenched Interests interest Don't Believe the Hype- "Campaign Finance Reform" Serves Entrenched Interests 18 February 2002    Texas Straight Talk 18 February 2002 verse 10 ... Cached Virtually all of my campaign support comes from individuals, the vast majority of whom give only small amounts. I have never allowed a special interest, corporation, or lobbyist to influence my vote in Congress. Yet Members who voted for last week's reform bill essentially are saying: "Stop us before we succumb to the special interest groups. We just can't control ourselves." They will continue to succumb, of course; they just want you to think otherwise. interest Before We Bomb Baghdad... 04 March 2002    Texas Straight Talk 04 March 2002 verse 4 ... Cached Yet I remain convinced we should be very cautious before we send troops and bombs into Iraq. It's simple to point out that Saddam Hussein is a ruthless dictator, but it's not so easy to demonstrate that he poses a threat to us. We should also remember that the congressional resolution passed immediately after September 11th, which I supported, authorized military force only against those directly responsible for the attacks- and there is no evidence whatsoever that Iraq played a role in those attacks. This leaves me with two serious concerns: first, the near-certainty that this coming war will be undeclared, and hence unconstitutional; and second, that such a war does not serve our best interests. interest Before We Bomb Baghdad... 04 March 2002    Texas Straight Talk 04 March 2002 verse 7 ... Cached Constitutional questions aside, we have to ask ourselves quite simply whether it serves any national interest to invade Iraq. So often we lose sight of the true purpose of our military, which is to defend our borders against attack. Remember, Iraq has not initiated aggression against us. We, on the other hand, have bombed them, taunted them by flying military jets in their airspace, and starved them with economic sanctions- all for more than a decade. We haven't done these things out of humanitarian concern for Kuwait, we've done them because we want to protect our oil interests. Yet these actions have harmed the people of Iraq, not the Hussein regime. If anything, our policies serve to generate support for Hussein, who uses American aggression as a convenient scapegoat to deflect attention from his own oppression. Sadly, we've made him a martyr in Iraq and much of the wider Muslim world, alienating many otherwise pro-Western Iraqi moderates in the process. I question the wisdom, and the necessity, of once again traveling 6000 miles to pick a fight with a third-world Muslim nation that is simply not threatening us. interest Steel Tariffs are Taxes on American Consumers 18 March 2002    Texas Straight Talk 18 March 2002 verse 3 ... Cached The administration’s recent decision to impose a 30 percent tariff on steel imports was disappointing to free trade advocates. This measure will hurt far more Americans than it will help, and it takes a step backwards toward the protectionist thinking that dominated Washington in decades past. These steel tariffs also make it quite clear that the rhetoric about free trade in Washington is abandoned and replaced with talk of "fair trade" when special interests make demands. What most Washington politicians really believe in is government-managed trade, not free trade. Government-managed trade means government, rather than competence in the marketplace, determines what industries and companies succeed or fail. interest Steel Tariffs are Taxes on American Consumers 18 March 2002    Texas Straight Talk 18 March 2002 verse 5 ... Cached We should recognize that the cost of these tariffs will be borne by nearly all Americans, because steel is widely used in the cars we drive and the buildings in which we live and work. The tariffs will especially affect Texas, where building trades use large amounts of imported steel. We will all pay, but the cost will be spread out and hidden, so no one complains. The domestic steel industry, however, has complained- and it has the corporate and union power that scares politicians in Washington. We hear a great deal of criticism of special interests and their stranglehold on Washington, but somehow when we prop up an entire industry that has failed to stay competitive, we’re "protecting American workers." What we’re really doing is taxing all Americans to keep some politically-favored corporations afloat. interest Steel Tariffs are Taxes on American Consumers 18 March 2002    Texas Straight Talk 18 March 2002 verse 8 ... Cached It’s always amazing to me that Washington gives so much lip service to free trade while never adhering to true free trade principles. Free trade really means freedom- the freedom to buy and sell goods and services free from government interference. Time and time again, history proves that tariffs don’t work. I sincerely hope that the administration’s position on steel does not signal a willingness to resort to protectionism whenever special interests make demands in the future. interest Were the Founding Fathers Wrong about Foreign Affairs? 15 April 2002    Texas Straight Talk 15 April 2002 verse 3 ... Cached Last week I appeared on a national television news show to discuss recent events in the Middle East. During the show I merely suggested that there are two sides to the dispute, and that the focus of American foreign policy should be the best interests of America - not Palestine or Israel. I argued that American interests are best served by not taking either side in this ancient and deadly conflict, as Washington and Jefferson counseled when they warned against entangling alliances. I argued against our crazy policy of giving hundred of billions of dollars in unconstitutional foreign aid and military weapons to both sides, which only intensifies the conflict and never buys peace. My point was simple: we should follow the Constitution and stay out of foreign wars. interest Were the Founding Fathers Wrong about Foreign Affairs? 15 April 2002    Texas Straight Talk 15 April 2002 verse 7 ... Cached It’s easy to dismiss the noninterventionist view as the quaint aspiration of men who lived in a less complicated world, but it’s not so easy to demonstrate how our current policies serve any national interest at all. Perhaps an honest examination of the history of American interventionism in the 20th century, from Korea to Vietnam to Kosovo to the Middle East, would reveal that the Founding Fathers foresaw more than we think. interest Are Your Taxes Too Low? 22 April 2002    Texas Straight Talk 22 April 2002 verse 6 ... Cached Nothing could be further from the truth. Federal spending is wildly out of control, as evidenced by an annual budget that doubled between 1990 and 2000. Congress will spend $2.3 trillion in 2003, an astounding 22% more than 1999. Federal taxes now consume more of the legitimate private economy (as a percentage of GDP) that at any other time in our nation’s history except WWII. The federal budget is full of billions in unconstitutional and wasteful pork, and no serious person can argue otherwise. Those who oppose tax cuts simply use populist arguments to mask their support for the special-interests that benefit from uncontrolled spending. interest 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. interest President Bush Delivers Victory over UN Court! 13 May 2002    Texas Straight Talk 13 May 2002 verse 3 ... Cached The American people won a great victory last week in the ongoing battle to preserve our national sovereignty. On Monday, the administration formally announced President Bush’s bold decision to withdraw the United States from the UN International Criminal Court (ICC) treaty. UN bureaucrats have been working quietly for several years to create the ICC, with the ultimate goal of installing an international tribunal that claims jurisdiction over every human on the planet- and judicial supremacy over our own Supreme Court. Given the steady progress of ICC planners to date in convincing about 60 nations to ratify the treaty, the American withdrawal represents a stunning setback for those intent on establishing an international legal system that undermines our Constitution- and a rare but important triumph for American national interests. interest Federal Intelligence and Terrorism 20 May 2002    Texas Straight Talk 20 May 2002 verse 3 ... Cached Last week ended with a flurry of news stories alleging that the Bush administration had advance knowledge of the September 11th terrorist attacks. The President’s political opponents wasted little time in seizing the opportunity to accuse him of a coverup, implying that he allowed the terrible events of that day to happen through inaction. Most Americans rightfully dismiss these accusations and recognize them as partisan opportunism, knowing that President Bush would never willfully allow such a tragedy to take place if he could have prevented it. We need to raise the tenor of the debate in Washington and place national security interests before party interests. interest No Taxpayer Funds for Nation-Building in Afghanistan 27 May 2002    Texas Straight Talk 27 May 2002 verse 6 ... Cached The Russians must be laughing at the irony. Their problem has become our problem. For years they sought to dominate Afghanistan and impose their will upon it, at a cost of millions of dollars and thousands of lives- Russian and Afghan lives. We propped up the Afghan resistance with our weapons, money, and training, planting the seeds of the Taliban in the process. Now the former Soviet Union is gone, its armies long withdrawn from Afghanistan, and we’re left cleaning up the mess- yet we won’t be loved for it. No, we won’t get respect or allegiance from the Afghans, especially now that our bombs have rained down upon them. We will pay the bills, however. Afghanistan will become a tragic ward of the American state, another example of an interventionist foreign policy that is supposed to serve our national interests and gain allies, yet which does neither. interest Congress Spends, Future Generations Pay the Bills 03 June 2002    Texas Straight Talk 03 June 2002 verse 8 ... Cached Of course debt and credit, wisely used, can be proper tools for families and businesses. Yet when government borrows money, the actual borrowers- big spending administrations and members of Congress- never have to pay the bills. Instead, they enjoy the political benefits of delivering endless unconstitutional pork programs to their constituents and special interests, while future generations of taxpayers are stuck with the bill. It is time for voters to think about their grandchildren and stop rewarding spendthrift politicians with 97% reelection rates. Debt does matter, and it’s cowardly to ask future generations to pay for our extravagance. interest Gold, Dollars, and Federal Reserve Mischief 10 June 2002    Texas Straight Talk 10 June 2002 verse 5 ... Cached Yet while politicians favor central bank control of money, history and the laws of economics are on the side of gold. So even though central banks try to mask their inflationary policies and suppress the price of gold by surreptitiously selling it, the gold markets always cut through the smokescreen eventually. Rising gold prices like we see today historically signify trouble for paper currencies, and the dollar is no exception. Should the dollar continue to decline in value, America will find itself struggling to service our already massive debt load even as our foreign creditors become less interested in our dollars. interest Securing the Homeland? 08 July 2002    Texas Straight Talk 08 July 2002 verse 2 ... Cached Various congressional committees will spend the summer drafting the Homeland Security Act, legislation that will create the largest new federal bureaucracy in several decades. Only broad proposals exist at the moment, but the debate over details may reveal how special interests and power hungry bureaucrats stand in the way of common sense. We certainly don’t need another federal jobs program that does nothing to make us safe from terrorism, nor should we be eager to pour more money into the same agencies and policies that failed us on September 11th. interest The Homeland Security Non-Debate 29 July 2002    Texas Straight Talk 29 July 2002 verse 3 ... Cached Every American should know how quickly and thoughtlessly this massive new bureaucracy is being created. A special House committee made up of just a handful of members began writing the bill only one week before the vote. In that short time they managed to transform the President’s 50 page proposal for consolidation of certain agencies into a 250 page spending spree filled with unnecessary provisions to satisfy scores of special interests. Most members did not see the final bill until Wednesday, nor did they see many of the 100+ amendments to the bill until Friday. The House debated the body of the bill itself late Thursday night for only two hours! This may serve the interests of members looking to highlight their "accomplishments" at election time, but the American people deserve far more serious consideration of possibly the most important legislation passed during their lifetimes. Without question, the new DHS will have a profound impact on the freedom, prosperity, and safety of every American and their grandchildren for decades to come. interest Your Taxes Fund South American Bailout 12 August 2002    Texas Straight Talk 12 August 2002 verse 4 ... Cached Why the sudden interest in Uruguay? Treasury Secretary O’Neill’s statement on the matter makes it sound like Uruguay is a real financial powerhouse. In fact, he tells us "Uruguay’s approach to bank reform should encourage confidence of depositors in the financial system. Uruguay has effectively implemented sound economic policies and embraced free markets." Apparently, those sound economic policies led to outright collapse and a run on the nation’s banks, while their commitment to free markets involves billions in welfare bailouts courtesy of American taxpayers. If Uruguay is indeed so financially and politically stable, why in the world would it need billions in foreign welfare? interest Your Taxes Fund South American Bailout 12 August 2002    Texas Straight Talk 12 August 2002 verse 6 ... Cached The real concern behind schemes like the Exchange Stabilization Fund and the International Monetary Fund is the corporate interests they subsidize. American banks and corporations have a great deal of money invested in South America, and a bank default by any country there directly threatens those dollars. The multinational banks especially fear a chain reaction of economic meltdowns, beginning with Argentina and spreading to Uruguay, Brazil, and beyond. So they use political influence to thwart the free market process and prop up bankrupt economic policies in Uruguay. interest Does Government Run the Economy? 19 August 2002    Texas Straight Talk 19 August 2002 verse 6 ... Cached In a capitalist economy, the government acts only as a referee by protecting property rights, enforcing contracts, and prohibiting force and fraud. Because our modern federal government has strayed so far from its limited constitutional powers, it controls the economy far more than the founders intended. As a result, our economy is becoming more and more socialist. Federal taxes, regulations, welfare, subsidies, wage controls, and price controls, along with Fed manipulation of interest rates and the money supply, all represent socialist government intervention in the economy. No matter what the Democrats or Republicans want to call it, socialism is socialism. We should have the honesty to identify exactly what is being advocated when some call for even more government control of the economy. interest Entangling Alliances Distort our Foreign Policy 16 September 2002    Texas Straight Talk 16 September 2002 verse 6 ... Cached The root of the problem is our insistence on accepting the concept of one-world globalist government while pursuing unilateralist goals. We participate in globalist institutions like the UN, sign globalist treaties, and send our sons and daughters to fight in globalist wars that have nothing to do with our national interest. Yet we also demand the right to act unilaterally when it suits us, to set all policy in the global arena, and to exclude ourselves from many of the international rules. interest Congress Becomes Irrelevant in the War Debate 07 October 2002    Texas Straight Talk 07 October 2002 verse 4 ... Cached I don’t believe in resolutions that cite the UN as authority for our military actions. America has a sovereign right to defend itself, and we don’t need UN permission or approval to act in the interests of American national security. The decision to go to war should be made by the U.S. Congress alone. If Congress believes war is justified, it should give the President full warmaking authority, rather than binding him with resolutions designed to please our UN detractors. interest Why Won't Congress Declare War? 14 October 2002    Texas Straight Talk 14 October 2002 verse 6 ... Cached I don’t believe in resolutions that cite the UN as authority for our military actions. America has a sovereign right to defend itself, and we don’t need UN permission or approval to act in the interests of American national security. The decision to go to war should be made by the U.S. Congress alone. If Congress believes war is justified, it should give the President full warmaking authority, rather than binding him with resolutions designed to please our UN detractors. interest Who Should Prosecute the Snipers? 04 November 2002    Texas Straight Talk 04 November 2002 verse 4 ... Cached Virginia, Maryland, and the District of Columbia all have valid claims for prosecuting the case, because the sniper and his accomplice committed murders in all four jurisdictions. Prosecutors from each understandably want to bring these killers to justice on behalf of their citizens. After all, it was the people of these states who were truly terrorized for nearly a month. Of course a federal court may be needed to decide which state prevails in the inevitable jurisdictional battle, especially since the availability of the death penalty varies between them. But the rush to have a federal court try these two men reminds us that the federal government cares very little about states’ rights. The feds appear to be more interested in hijacking a high-profile prosecution for their own benefit than allowing the states to enforce their own laws. interest Who Should Prosecute the Snipers? 04 November 2002    Texas Straight Talk 04 November 2002 verse 5 ... Cached The trend toward federalizing state criminal matters mirrors the rise in federal domination over the states themselves. As the federal government grows, so grows the power of the federal court system- at the expense of state sovereignty and the 10th amendment. As a result, the people of the various states have lost much of their voice about how criminals ought to be treated. The sniper case provides us with an opportunity to reassert the power of states to bring criminals to justice, while rejecting the notion that the federal government must be involved simply because the sniper murders generated national interest. interest Honoring our Military Veterans 11 November 2002    Texas Straight Talk 11 November 2002 verse 6 ... Cached Today’s American soldiers are the veterans of the future, and they should never be sent to war without clear objectives that serve definite American national security interests. They should never fight at the behest of the United Nations or any other international agency. They should never serve under a UN flag, nor answer to a UN commander. They deserve to know that they fight for the American people and the Constitution, and that the decision to send them into battle was made by their own congress rather than by UN bureaucrats who don’t care about them. Only by using American troops judiciously and in service of the Constitution can we avoid the kind of endless military entanglements we witnessed in Korea and Vietnam. We honor our veterans by ensuring that their service to the nation is never in vain. interest Homeland Security is the Largest Federal Expansion in 50 Years 25 November 2002    Texas Straight Talk 25 November 2002 verse 5 ... Cached Of course the Homeland Security bill did receive some opposition from the President’s critics. Yet did they attack the legislation because it threatens to debase the 4th amendment and create an Orwellian surveillance society? Did they attack it because it will chill political dissent or expand the drug war? No, they attacked it on the grounds that it failed to secure enough high-paying federal union jobs, thus angering one of Washington’s most powerful special interest groups. Ultimately, however, even the most prominent critics voted for the bill. interest Our Incoherent Foreign Policy Fuels Middle East Turmoil 02 December 2002    Texas Straight Talk 02 December 2002 verse 5 ... Cached The tired assertion that America "supports democracy" in the Middle East is increasingly transparent. It was false 50 years ago, when we supported and funded the hated Shah of Iran to prevent nationalization of Iranian oil, and it’s false today when we back an unelected military dictator in Pakistan- just to name two examples. If honest popular elections were held throughout the Middle East tomorrow, the people in most countries would elect religious fundamentalist leaders hostile to the United States. Cliche or not, the Arab Street really doesn’t like America, so we should stop the charade about democracy and start pursuing a coherent foreign policy that serves America’s long-term interests. interest What Does Regime Change in Iraq Really Mean? 16 December 2002    Texas Straight Talk 16 December 2002 verse 6 ... Cached We’ve seen this time and time again. We support a military or political group based on our short-term objectives, only to have them turn against us later. Ultimately, our money, weapons, and interventionist policies never buy us friends for long, and more often we simply arm our future enemies. The politicians responsible for the mess are usually long gone when the trouble starts, and voters with a short attention span don’t connect the foreign policy blunders of twenty years ago with today’s problems. But wouldn’t our long-term interests be better served by not creating the problems in the first place? interest Support the President's Tax-Free Savings Plan 10 February 2003    Texas Straight Talk 10 February 2003 verse 5 ... Cached Yet many in the spendthrift Congress think income taxes that consume one-third or more of most Americans’ paychecks are not enough. They believe in taxing income twice: first when it’s earned, and again when it’s saved. Yet why should interest, dividends, and capital gains be taxed a second time? Is the congressional appetite for spending really so voracious that we cannot even allow taxpayers to enjoy some tax-free savings, as proposed by the President? interest Buying Friends with Foreign Aid 24 February 2003    Texas Straight Talk 24 February 2003 verse 6 ... Cached The billions we will give Turkey are just the tip of the iceberg. The foreign aid feeding frenzy will only intensify as America expands its role as world policeman. Already it is routine for some nations to send negotiating teams to Washington during the appropriations process, intent on securing the foreign aid loot to which they feel so entitled. Just as hordes of domestic lobbyists roam the halls of Congress seeking federal money for every conceivable special interest, we should expect foreign lobbyists to increasingly look for money from American taxpayers. In the new era of American empire, foreign aid spending serves as the carrot. Iraq will get the stick, at least at first. Once we occupy it, of course, we will spend billions there as well. interest The 2003 Spending Orgy 03 March 2003    Texas Straight Talk 03 March 2003 verse 6 ... Cached Meanwhile, Federal Reserve Chairman Greenspan recently suggested before a congressional committee that billions could be saved if the Treasury used lower inflation estimates. In other words, if we say inflation is lower than the Consumer Price Index and other barometers indicate, Congress won’t have to spend as much on cost-of-living adjustments for programs like Social Security. This amounts to lying to the American people about our monetary policies, by hiding the true rate of inflation caused by printing too many dollars and keeping interest rates artificially low. interest Time to Renounce the United Nations? 17 March 2003    Texas Straight Talk 17 March 2003 verse 5 ... Cached Those bureaucrats are not satisfied by meddling only in international disputes, however. The UN increasingly wants to influence our domestic environmental, trade, labor, tax, and gun laws. Its global planners fully intend to expand the UN into a true world government, complete with taxes, courts, and a standing army. This is not an alarmist statement; these facts are readily promoted on the UN’s own website. UN planners do not care about national sovereignty; in fact they are actively hostile to it. They correctly view it as an obstacle to their plans. They simply aren’t interested in our Constitution and republican form of government. interest Time to Renounce the United Nations? 17 March 2003    Texas Straight Talk 17 March 2003 verse 8 ... Cached The UN is neither wise nor neutral. All of the member nations have national interests that don’t simply disappear when their representatives enter the UN general assembly hall. Like any government or quasi-government body, the UN is rife with corruption and backroom deals. Worst of all, it serves as a forum for rampant anti-Americanism. Perhaps the time has finally come when more Americans will choose to rethink our participation. interest Honor Veterans with a Better Budget 24 March 2003    Texas Straight Talk 24 March 2003 verse 2 ... Cached Congress narrowly passed a budget last week that calls for the federal government to spend in excess of 2 trillion dollars in 2004, which is more than double what the federal government spent in 1990. Yet while Congress finds hundreds of billions to fund every conceivable unconstitutional program and special-interest pork project, it fails to provide adequately for our nation’s veterans. In fact, the budget passed by the House calls for cuts of $15.1 billion from veterans programs over the next ten years. These cuts will affect programs that provide education benefits, compensation for veterans with service-related disabilities, and pensions for disabled veterans. interest Honor Veterans with a Better Budget 24 March 2003    Texas Straight Talk 24 March 2003 verse 3 ... Cached We should understand that veterans programs, unlike so many federal programs, are constitutional. The Constitution specifically provides for Congress to fund armed forces and provide national defense. Congress and the nation accordingly have a constitutional obligation to keep the promises made to those who provide that defense. This is why I support increased funding for veterans, while opposing the bloated spending bills that fund corporate and social welfare, pork favoritism, and special interests at the expense of those veterans. interest 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. interest Congress Exceeds its Credit Limit 14 April 2003    Texas Straight Talk 14 April 2003 verse 3 ... Cached Most Americans don’t spend much time worrying about the national debt, which now totals more than six trillion dollars. The number is so staggering that it hardly seems real, even when economists issue bleak warnings about how much every American owes- currently about $22,000. Of course the federal government never hands each taxpayer a bill for that amount, for obvious reasons. Instead, it uses your income taxes to pay interest on this debt, which is like making minimum payments on a credit card. Notice that the principal never goes down. In fact, it’s rising steadily. interest The Unbearable Cost of Running Iraq 09 June 2003    Texas Straight Talk 09 June 2003 verse 8 ... Cached I see the real possibility of our government getting into an expensive, long-term entanglement in Iraq at exactly the time we are beginning to see financial troubles on the horizon. As our nation slinks further into debt and back into deficit, we are making decisions that will literally put our children and grandchildren on the line to pay interest payments for our current policy toward Iraq. interest The Unbearable Cost of Running Iraq 09 June 2003    Texas Straight Talk 09 June 2003 verse 10 ... Cached When American policymakers consider the wisdom of foreign entanglements it would be best that they first understand the long-term implications for the people we are elected to represent. We failed to do that with Iraq and the length, difficulty, and seriousness of the long-term commitment is only now coming to be realized by those who advocated this entanglement. Unfortunately, once a project such as this has begun it becomes extremely difficult to set the ship aright and change the course of policy to better reflect the interests of our nation and its citizens. One thing is clear: winning the military battle against Saddam Hussein may well prove the easiest - and perhaps least costly - part. interest Declining Dollar, Declining Fortunes 23 June 2003    Texas Straight Talk 23 June 2003 verse 3 ... Cached Of course capitalism is based on the premise that centralized economic planning is bad. I’m always amazed that otherwise pro-market conservatives, who rightfully scorned disastrous Soviet economic policies, are so willing to accept centralized monetary planning by the Fed. True capitalism requires a free market for money and interest rates, just as surely as it requires a free market for wages and prices. interest Declining Dollar, Declining Fortunes 23 June 2003    Texas Straight Talk 23 June 2003 verse 5 ... Cached Mr. Greenspan’s two greatest sins are easy to understand. First, he has wildly inflated the money supply by creating more than $5 trillion in new dollars since he became Fed chairman. Second, he has relentlessly cut interest rates below market levels. These actions make money too plentiful and too cheap. When dollars are abundant and the cost of borrowing is low, people and businesses spend money less carefully. The stock market bubble of the late 1990s is all the proof we need that Fed printing presses can create money, but not wealth. interest Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 2 ... Cached During testimony before the House Financial Services committee last week, Federal Reserve Chairman Alan Greenspan indicated that he is prepared to maintain low interest rates for “as long as it takes” to energize the listless economy. Unfortunately, this will only prolong the painful economic consequences of his own easy money, easy credit policies. interest Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 4 ... Cached The real measure of inflation is the increase in the money supply. Chairman Greenspan, through his relentless cutting of interest rates, has made it possible for banks to flood the worldwide economy with dollars. In fact the money supply, as measured by a figure economists call M3, has nearly doubled since 1996. interest Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 6 ... Cached The Fed’s inflationary policies hurt older people the most. Older people generally rely on fixed incomes from pensions and Social Security, along with their savings. Inflation destroys the buying power of their fixed income and savings, while low interest rates reduce any income from savings. So while Fed policies encourage younger people to overborrow because interest rates are so low, they also punish thrifty older people who saved for retirement but find their dollars eroded by inflation. interest Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 8 ... Cached Yet even as the Chairman warned about the supposed danger of deflation, he also discussed his view that rising natural gas prices pose a serious threat to the U.S. economy. There seems to be no coherent message coming from Mr. Greenspan: we’re warned about “irrational exuberance” even as the Fed cuts interest rates and wildly inflates the money supply; we’re told there is no inflation, yet housing prices skyrocket; we’re told that only our central bank planners have the wisdom to determine proper monetary policies, yet the Chairman himself seems to equivocate constantly and provide only the fuzziest answers to straightforward questions. interest Federal Reserve Inflation Punishes Saving 21 July 2003    Texas Straight Talk 21 July 2003 verse 9 ... Cached Centralized planning is as disastrous in monetary affairs as in economic affairs. Just as Russian commissars could not determine prices or production levels in the absence of a free market, the Federal Reserve Board cannot determine the “proper” level for interest rates or the money supply. Our fiat currency and artificially low interest rates can only result in the deterioration of the U.S. dollar through inflation, which in the end will cause interest rates to rise no matter what the Fed says or does. Older Americans especially stand to suffer most from Mr. Greenspan’s easy money policies. interest The Terrible Cost of Government 28 July 2003    Texas Straight Talk 28 July 2003 verse 6 ... Cached Of course both Congress and a succession of presidents are responsible for the spending mess. The president can set a tone for fiscal restraint or indulgence, and can veto spending bills if he has the political will to do so. Congress, however, actually crafts the laughable federal “budget” and appropriates the money, so the ultimate blame for spending increases must be accorded members of the House and Senate. It’s easy to talk about smaller government, but few actually vote against the 13 annual appropriations bills that fund so many wasteful and unconstitutional departments, agencies, and programs. There are simply too many special interests counting on the money contained in the appropriations bills, and those same interests will take their campaign contributions elsewhere if a congressman fails to play the game. interest Trust Us, We're the Government 25 August 2003    Texas Straight Talk 25 August 2003 verse 9 ... Cached The administration's interest in all e-mail is a wholly unhealthy precedent, especially given this administration's track record on FBI files and IRS snooping. Every medium by which people communicate can be subject to exploitation by those with illegal intentions. Nevertheless, this is no reason to hand Big Brother the keys to unlock our e-mail diaries, open our ATM records, read our medical records, or translate our international communications...The implications here are far-reaching, with impacts that touch individual users, companies, libraries, universities, teachers, and students. interest The Tyranny of Paper Money 08 September 2003    Texas Straight Talk 08 September 2003 verse 6 ... Cached Most Americans are oblivious to the entire issue of monetary policy. We all deal with the consequences of our fiat money system, however. Every dollar created dilutes the value of existing dollars in circulation. Those individuals who worked hard, paid their taxes, and saved some money for a rainy day are hit the hardest. Their dollars depreciate in value while earning interest that is kept artificially low by the Federal Reserve easy-credit policy. The poor and those dependent on fixed incomes can’t keep up with the rising cost of living. interest The Tyranny of Paper Money 08 September 2003    Texas Straight Talk 08 September 2003 verse 8 ... Cached Fiat dollars allow us to live beyond our means, but only for so long. History shows that when the destruction of monetary value becomes rampant, nearly everyone suffers and the economic and political structure becomes unstable. Spendthrift politicians may love a system that generates more and more money for their special interest projects, but the rest of us have good reason to be concerned about our monetary system and the future value of our dollars. interest 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: interest The Appropriations Process 27 October 2003    Texas Straight Talk 27 October 2003 verse 6 ... Cached This process gives members of the House Appropriations committee unwarranted power, because so many special interests depend on receiving a piece of the government pie. Members of Congress play along if they hope to bring home as much pork as possible to their districts, and this includes making deals with a variety of devils. Any member who hopes to solidify his reelection chances by delivering pork will find himself agreeing to vote for all kinds of unsavory bills in exchange. interest Economic Woes Begin at Home 03 November 2003    Texas Straight Talk 03 November 2003 verse 3 ... Cached However, instead of debating America’s monetary policy, Congress wants to debate China’s monetary policy. The goal is to pressure China to change the valuation of its currency, to unlink it from the U.S. dollar so that its value fluctuates. The main beneficiary of this would be certain U.S. manufacturers, at least in the short run. But American consumers would be the overwhelming losers in the long run, as the price of countless consumer items would rise. Manufacturing interests have powerful lobbies in Congress, but consumers do not. interest Economic Woes Begin at Home 03 November 2003    Texas Straight Talk 03 November 2003 verse 4 ... Cached China exports many products into the United States, which makes her a convenient scapegoat for our economic problems. Demanding that China adjust its currency valuation is merely a distraction from addressing the real economic dilemmas facing our country, however. Congress should be focused on our own disastrous monetary policies. As long as the Fed can print money at will and set interest rates, the value of our dollars will be subject to the whims of politicians and the perceived economic needs of politically powerful special interests. interest Congress Grovels for the WTO 17 November 2003    Texas Straight Talk 17 November 2003 verse 7 ... Cached The WTO has given us the worst of both worlds: We’ve sacrificed national sovereignty by changing our domestic laws at the behest of an international body, yet we still face trade wars. If anything, the WTO makes trade relations worse by providing our foreign competitors with a collective means to attack U.S. trade interests. interest GOP Abandons Conservatives 01 December 2003    Texas Straight Talk 01 December 2003 verse 7 ... Cached At what point will conservatives stop accepting these excuses? When does the conservative base of the GOP, a base that remains firmly committed to the principle of limited government, finally demand new leadership and a return to conservative values? Will conservatives abandon the party when they realize the GOP, at least under its current leadership, is simply not interested in reducing the size and scope of the federal government? With Republicans controlling the administration and the legislature, and nominally controlling the Supreme Court, the party has run out of other people to blame. One thing is certain: Republicans who support bigger entitlement programs and bigger federal budgets have lost all credibility as advocates for limited government. interest The Disappearing Dollar 08 December 2003    Texas Straight Talk 08 December 2003 verse 7 ... Cached Unlike Warren Buffett, most Americans are stuck with their U.S. dollars. Average people, particularly those who depend on savings or fixed incomes to fund their retirement years, cannot abide the continued devaluation of our currency. A true strong-dollar policy would require constriction of the money supply and higher interest rates, both of which would cause some short-term pain for the American economy. In the long run, however, such a correction is the only alternative to the continued erosion of our dollars. interest Elusive Peace in the Middle East 15 December 2003    Texas Straight Talk 15 December 2003 verse 4 ... Cached The “Geneva Accord,” a document released earlier this month, represents an attempt to craft an alternative peace plan for the intractable dispute. The Accord is unique in that it was conceived and written by representatives of both sides of the conflict, but wholly without the involvement of governments or politicians. Governments, politicians, and special interests often promote conflict at the expense of ordinary people, so the promise of the Geneva Accord is that it more closely represents the interests of those most affected by the ongoing violence. interest Elusive Peace in the Middle East 15 December 2003    Texas Straight Talk 15 December 2003 verse 6 ... Cached President Bush and Secretary of State Powell, to their credit, have praised the Geneva Accord. The president termed the Accord “productive,” while the secretary stated he “Has an obligation to listen to individuals who have interesting ideas.” This is encouraging. Still, the impulse that demands American engagement is strong. One congressional leader scoffed at what he termed a “freelance peace plan,” but his sarcasm ignores the utter failure of “official” peace efforts. He also fails to understand that America cannot impose its will upon every conflict around the globe. Lasting, effective peace agreements can be crafted only by those who will live under them. interest "Campaign Finance Reform" Muzzles Political Dissent 22 December 2003    Texas Straight Talk 22 December 2003 verse 3 ... Cached In a devastating blow to political speech, the Supreme Court recently upheld most of the McCain-Feingold campaign finance bill passed by Congress last year. The legislation will do nothing to curb special interest power or reduce corruption in Washington, but it will make it harder for average Americans to influence government. “Campaign finance reform” really means the bright-line standard of free speech has been replaced by a murky set of regulations and restrictions that will muzzle political dissent and protect incumbents. Justice Scalia correctly accuses the Court of supporting a law “That cuts to the heart of what the First Amendment is meant to protect: the right to criticize the government…This is a sad day for freedom of speech.” interest "Campaign Finance Reform" Muzzles Political Dissent 22 December 2003    Texas Straight Talk 22 December 2003 verse 7 ... Cached Wealthy people will always seek to influence politicians, because government unfortunately plays a very big role in determining who gets (and stays) rich in our country. Our federal government has become a taxing, spending, and regulating leviathan that virtually controls the economy. Having rejected the notion of limited, constitutional government, we can hardly be surprised when special interests use corrupting campaign money to influence the process! We need to get money out of government; only then will money not be important in politics. Big government and big campaign money go hand-in-hand. interest Amnesty and Culture 12 January 2004    Texas Straight Talk 12 January 2004 verse 7 ... Cached Problems arise when immigrants refuse to assimilate and show little interest in becoming American citizens. 100 years ago, immigrants arrived in America after dangerous journeys fully prepared to embrace their new country. In most cases, returning home was not an option. Most led very hard lives, took pride in American citizenship, and asked for nothing but the opportunity to work. Today, however, some immigrants travel between countries frequently, enjoying the benefits of America but showing no desire to become Americans. Some even display hostility toward America and our ideals, joining the chorus of voices demanding that the United States become a multicultural society that rejects our own history. It is this cultural conflict that soon must be addressed, and the president’s amnesty proposal simply turns a blind eye to the problem. interest Government and Marriage 19 January 2004    Texas Straight Talk 19 January 2004 verse 4 ... Cached The irony is that an initiative aimed at promoting moral values will be funded immorally, by taxing people who may have no interest in such government folly. interest A Wise Consistency for Liberty 16 February 2004    Texas Straight Talk 16 February 2004 verse 5 ... Cached To Emerson, foolish consistency meant being unwilling to admit errors and consistently defending a mistaken idea, regardless of facts. His quote referred a character trait, not to sound logical thinking. So it’s quite a distortion of Emerson’s views to use them to justify the incoherent and nonsensical policies coming out of Washington today. The political benefits of not being philosophically consistent are so overwhelming that politicians scarcely need to explain their votes. It’s simply assumed that members of Congress will vote based on pure self-interest. They are free to support whatever seems best for the moment. Adherence to any guiding philosophy would hamper their ability to please the parties, donors, lobbyists, and special interests that keep them in office. It’s advantageous to cling to the false notion that consistency is a hobgoblin, so they can dismiss any uncomfortable criticism. interest Greenspan's Black Magic 23 February 2004    Texas Straight Talk 23 February 2004 verse 2 ... Cached In testimony before the House Financial Services Committee last week, Federal Reserve Chairman Alan Greenspan painted a rosy picture of the U.S. economy. In his eyes, the Fed’s aggressive expansion of the money supply and suppression of interest rates have strengthened the financial condition of American households and industries. If this is true, however, our nation’s "prosperity" is merely a temporary illusion based on smoke and mirrors. True wealth cannot be created simply by printing money; families and businesses cannot prosper by getting deeper in debt. interest Greenspan's Black Magic 23 February 2004    Texas Straight Talk 23 February 2004 verse 4 ... Cached Never mind, says Mr. Greenspan. Mortgage refinancing, made wildly popular by artificially low interest rates established by the Fed, will be the saving grace of American households. They can simply borrow against their homes to finance living beyond their means, a practice encouraged by Fed policies. But what happens when home prices stop going up? What happens when families reach a point where they cannot make payments on two, three, or even more mortgages? How can the Fed chairman equate mortgage credit with real economic growth? interest Greenspan's Black Magic 23 February 2004    Texas Straight Talk 23 February 2004 verse 8 ... Cached The end may come when foreign central banks realize the dollars they receive are worthless, or when they find other places to turn for income. When that day comes, interest rates will rise, perhaps dramatically. At that point not even Mr. Greenspan will be able to save the economy from the painful correction necessitated by his easy credit, easy money policies. interest Gay Marriage Quicksand 01 March 2004    Texas Straight Talk 01 March 2004 verse 9 ... Cached Social problems cannot be solved by constitutional amendments or government edicts. Nationalizing marriage laws will only grant more power over our lives to the federal government, even if for supposedly conservative ends. Throughout the 20th century, the relentless federalization of state law served the interests of the cultural left, and we should not kid ourselves that the same practice now can save freedom and morality. True conservatives and libertarians should understand that the solution to our moral and cultural decline does not lie in a strong centralized government. interest The Federal War on Pain Relief 19 April 2004    Texas Straight Talk 19 April 2004 verse 3 ... Cached Do we really want the Drug Enforcement Administration jailing doctors for the alleged misdeeds of patients? Certainly some individuals abuse prescription pain killers, but federal agents are hardly qualified to decide what kind of drugs are appropriate for pain patients. Zealous prosecutors certainly show no interest in learning the basic facts of pain management. interest The Federal Reserve Debt Engine 26 April 2004    Texas Straight Talk 26 April 2004 verse 2 ... Cached Federal Reserve Chairman Alan Greenspan testifies for both US House and Senate committees several times each year, and last week appeared before the Joint Economic committee on which I serve. These appearances by Mr. Greenspan always cause quite a stir on Capitol Hill. Often the stock markets react within hours of his pronouncements regarding the health of the economy and the future of interest rates. interest The Federal Reserve Debt Engine 26 April 2004    Texas Straight Talk 26 April 2004 verse 4 ... Cached Judging by Mr. Greenspan’s statements to a Senate committee in February, Fed economists are confusing debt with wealth. Mr. Greenspan praises the “sustained expansion of the US economy,” but then goes on to highlight the real reason for the expansion: loose monetary policy and near-zero interest rates. Since Fed bankers set interest rates artificially low, the cost of borrowing money is very cheap. This leads to more and more consumer spending, which Mr. Greenspan touts as the driving force for economic growth. interest The Federal Reserve Debt Engine 26 April 2004    Texas Straight Talk 26 April 2004 verse 7 ... Cached It’s not enough to question the wisdom of Mr. Greenspan. Americans should question why we have a central bank at all, and whose interests it serves. The laws of supply and demand work better than any central banker to determine both the correct supply of money in the economy and the interest rate at which capital is available- without the political favoritism and secrecy that characterize central banks. Americans should not tolerate the manipulation of our economy and the inflation of our currency by an unaccountable institution. interest The Great Foreign Aid Swindle 24 May 2004    Texas Straight Talk 24 May 2004 verse 4 ... Cached Foreign aid doesn’t help poor people; it helps foreign elites and US corporations who obtain the contracts doled out by those foreign elites. Everyone in Washington knows this, but the same lofty rhetoric is used over and over to sell foreign aid programs to a gullible public. During a hearing about the new Act last week, I asked one of the witnesses how much of the $2.5 billion would actually go to US corporations. He enthusiastically answered that much of it would, making no attempt to downplay the corporate interests promoting expansion of our foreign aid programs. Naked corporate welfare is bad enough, but corporate welfare in the guise of helping poor foreigners is indecent. interest Superpower or Superdebtor? 07 June 2004    Texas Straight Talk 07 June 2004 verse 3 ... Cached Round and round we go, and we never seem to learn. Regime change plans, whether by CIA operations or by preemptive war, almost always go badly. American intervention abroad- installing the Shah of Iran in the fifties, killing Diem in South Vietnam in the sixties, helping Osama bin Laden and Saddam Hussein in the eighties, and propping up dictators in many Arab countries- has had serious repercussions for American interests including the loss of American life. interest Superpower or Superdebtor? 07 June 2004    Texas Straight Talk 07 June 2004 verse 4 ... Cached It is clear that interventionism leads to the perceived need for more interventionism, which leads to more conflict and to increased resentment and anti-Americanism. It is an endless cycle and the American taxpayer is always left holding the bill. This policy has huge dollar costs at home, which contributes to huge deficits, higher interest rates, inflation, and economic dislocations. War cannot raise the standard of living for the average American. interest Zero Down for the American Dream 21 June 2004    Texas Straight Talk 21 June 2004 verse 7 ... Cached Despite the congressional rhetoric about helping the poor, federal housing policies often harm poor people by pushing them into houses they may not be ready to buy. Given the realities of insurance, property taxes, maintenance, and repairs, many low-income buyers lose their homes and destroy their credit ratings. Easy credit and low interest rates, courtesy of the Federal Reserve, have dramatically increased housing demand and artificially increased prices. Zero down payment schemes do the same thing by pushing renters into the housing market. This increased demand actually serves to price many poor Americans out of the housing market indefinitely. interest None of Your Business! 12 July 2004    Texas Straight Talk 12 July 2004 verse 6 ... Cached One of the worst aspects of the census is its focus on classifying people by race. When government tells us it wants information to “help” any given group, it assumes every individual who shares certain physical characteristics has the same interests, or wants the same things from government. This is an inherently racist and offensive assumption. The census, like so many federal policies and programs, inflames racism by encouraging Americans to see themselves as members of racial groups fighting each other for a share of the federal pie. interest The 9-11 Commission Charade 23 August 2004    Texas Straight Talk 23 August 2004 verse 3 ... Cached But what exactly is going on here? These hearings amount to nothing more than current government officials meeting with former government officials, many of whom now lobby government officials, and agreeing that we need more government! The current and past architects of the very bureaucracy that failed Americans so badly on September 11th three years ago are now meeting to recommend more bureaucracy. Why on earth do we assume that former government officials, some of whom are self-interested government lobbyists, suddenly become wise, benevolent, and politically neutral when they retire? Why do we look to former bureaucrats to address a bureaucratic failure? interest The IMF Con 27 September 2004    Texas Straight Talk 27 September 2004 verse 4 ... Cached The IMF provides a perfect illustration of the both the folly of foreign aid and the real motivations behind it. The IMF touts itself as a bank of sorts, although it makes “loans” that no rational bank would consider-- mostly to shaky governments with weak economies and unstable currencies. The IMF has little incentive to operate profitably like a private bank, since its funding comes mostly from a credulous US Congress that demands little accountability. As a result, it is free to make high-risk loans at below- market interest rates. interest The IMF Con 27 September 2004    Texas Straight Talk 27 September 2004 verse 8 ... Cached American taxpayers already lend various governments more than $5 billion annually through the IMF, at a yearly cost of over $300 million because of loan defaults and subsidized interest rates. Now the IMF wants to double its pool of funding, which will put taxpayers on the hook for $12 billion in loans at a cost of about $750 million each year. Furthermore, since the IMF creates “drawing rights” accounts that are redeemable in US dollars, it in essence prints US dollars when it increases those drawing rights. This is a clear violation of our national sovereignty, and a vivid example of why we should stop participating in international schemes like the IMF altogether. interest The 9-11 Intelligence Bill- More of the Same 11 October 2004    Texas Straight Talk 11 October 2004 verse 3 ... Cached Last week the House of Representative passed the “9-11 Recommendations Implementation Act,” a bill that ostensibly puts in place the ideas endorsed by the 9-11 Commission. As I related to you back in August, however, the commission amounted to nothing more than current government officials meeting with former government officials, many of whom now lobby government officials, and agreeing that we need more government! Most of the reforms contained in this bill will not make America safer, but they definitely will make us less free. The Act also wastes American taxpayer money on unconstitutional and ineffective foreign aid programs, designed to prove that money can buy us friends. Instead of expanding the federal police state, Congress should make America safer by expanding liberty and refocusing our foreign policy on defending this nation's vital interests, rather than wasting American blood and treasure on quixotic crusades to “democratize” the world. interest "I Have a Plan..." 18 October 2004    Texas Straight Talk 18 October 2004 verse 5 ... Cached Remember, there is a simple dictionary definition for government planning of the production and provision of goods and services: socialism. No matter how much the grand planners from both political parties deny it, many of their programs and proposals are socialist. Federal taxes, regulations, welfare, subsidies, wage controls, price controls, and interest rate manipulations all represent socialist interventions in the economy. True, we do not yet have a fully socialist economy. But that is why we must be vigilant and label socialist proposals for exactly what they are, so we can maintain and expand economic freedom in America. interest Government Debt- The Greatest Threat to National Security 25 October 2004    Texas Straight Talk 25 October 2004 verse 5 ... Cached Government debt carries absolutely no stigma for politicians in Washington. The original idea behind the debt limit law was to shine a light on government spending, by forcing lawmakers to vote publicly for debt increases. Over time, however, the increases have become so commonplace that the media scarcely reports them-- and there are no political consequences for those who vote for more red ink. It’s far more risky for politicians to vote against special interest spending interest Government Debt- The Greatest Threat to National Security 25 October 2004    Texas Straight Talk 25 October 2004 verse 9 ... Cached Ultimately, debt is slavery. Every dollar the federal government borrows makes us less secure as a nation, by making America beholden to interests outside our borders. So when you hear a politician saying America will do “whatever it takes” to fight terrorism or rebuild Iraq or end poverty or provide health care for all, what they really mean is they are willing to sink America even deeper into debt. We’re told that foreign wars and expanded entitlements will somehow make America more secure, but insolvency is hardly the foundation for security. Only when we stop trying to remake the world in our image, and reject the entitlement state at home, will we begin to create a more secure America that is not a financial slave to foreign creditors. interest Social Security: House of Cards 08 November 2004    Texas Straight Talk 08 November 2004 verse 8 ... Cached Furthermore, who would decide what stocks, bonds, mutual funds, or other investment vehicles deserve government approval? Which politicians would you trust to build an investment portfolio with billions of your Social Security dollars? The federal government has proven itself incapable of good money management, and permitting politicians and bureaucrats to make investment decisions would result in unscrupulous lobbying for venture capital. Large campaign contributors and private interests of every conceivable type would seek to have their favored investments approved by the government. In a free market, an underperforming or troubled company suffers a decrease in its stock price, forcing it either to improve or lose value. Wary investors hesitate to buy its stock after the price falls. If a company successfully lobbied Congress, however, it would enjoy a large investment of your tax dollars. This investment would cause an artificial increase in its stock price, deceiving private investors and unfairly harming the company's honest competition. Government-managed investment of tax dollars in the private market is a recipe for corruption and fiscal irresponsibility. interest 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. interest Raising the Debt Limit: A Disgrace 22 November 2004    Texas Straight Talk 22 November 2004 verse 6 ... Cached Most Americans do not spend much time worrying about the national debt, which now totals more than eight trillion dollars. The number is so staggering that it hardly seems real, even when economists issue bleak warnings about how much every American owes-- currently about $25,000. Of course, Congress never hands taxpayers a bill for that amount. Instead, the federal government uses your hard-earned money to pay interest on this debt, which is like making minimum payments on a credit card. Notice that the principal never goes down. In fact, it is rising steadily. interest Raising the Debt Limit: A Disgrace 22 November 2004    Texas Straight Talk 22 November 2004 verse 7 ... Cached Increasing the national debt sends a signal to investors that the government is not serious about reining in spending. This increases the risks that investors will be reluctant to buy government debt instruments. The effects on the American economy could be devastating. The only reason we have been able to endure such large deficits without skyrocketing interest rates is the willingness of foreign nations to buy the federal government’s debt instruments. However, the recent fall in the value of the dollar and rise in the price of gold indicate that investors may be unwilling to continue to prop up our debt-ridden economy. Furthermore, increasing the national debt will provide more incentive for foreign investors to stop buying federal debt at current interest rates. What will happen to our already fragile economy if the Federal Reserve must raise interest rates to levels unseen since the seventies to persuade foreigners to buy our debts? interest Gold Exposes the Dollar 06 December 2004    Texas Straight Talk 06 December 2004 verse 8 ... Cached Washington seems oblivious to the problem. Our current account deficit is roughly 6% of GDP, and our total foreign indebtedness is over $3 trillion. We borrow $1.8 billion every day! Unfortunately, our politicians and the public will ignore the problem until the combination of dollar inflation, price inflation, and higher interest rates brings the borrowing frenzy to an end. Americans, like their government, seem to have lost the ability to live within their means. When their standard of living falls, however, they will look for someone to blame in Washington. interest It Can't Happen Here 20 December 2004    Texas Straight Talk 20 December 2004 verse 10 ... Cached It may be true that average Americans do not feel intimidated by the encroachment of the police state. Americans remain tolerant of what they see as mere nuisances because they have been deluded into believing total government supervision is necessary and helpful, and because they still enjoy a high level of material comfort. That tolerance may wane, however, as our standard of living falls due to spiraling debt, endless deficit spending at home and abroad, a declining fiat dollar, inflation, higher interest rates, and failing entitlement programs. At that point attitudes toward omnipotent government may change, but the trend toward authoritarianism will be difficult to reverse. interest Want to Reform Social Security? Stop Spending. 24 January 2005    Texas Straight Talk 24 January 2005 verse 5 ... Cached Notice that neither political party proposes letting people opt out of Social Security, which exposes the lie that your contributions are set aside and saved. After all, if your contributions really are put aside for your retirement, the money will be there earning interest, right? If your money is put away in a trust fund account with your name on it, what difference would it make if your neighbor chooses not to participate in the program? interest Want to Reform Social Security? Stop Spending. 24 January 2005    Texas Straight Talk 24 January 2005 verse 7 ... Cached The administration speaks of private accounts, but government-managed investment of Social Security funds is not privatization at all. True capitalism by definition operates without government interference, and we should oppose further government involvement in the financial markets. After all, which government officials will decide what stocks, bonds, mutual funds, or other investment vehicles are approved? Which politicians will you trust to decide what your portfolio may contain? Imagine the lobbyists fighting over which special interests will have their favored investments approved for Social Security accounts. Political favoritism, rather than market performance, will determine what investments are allowed, and Social Security in essence will become a huge source of taxpayer-provided investment capital. interest Don't Let Congress Fund Orwellian Psychiatric Screening of Kids 31 January 2005    Texas Straight Talk 31 January 2005 verse 8 ... Cached It is important to understand that powerful interests, namely federal bureaucrats and pharmaceutical lobbies, are behind the push for mental health screening in schools. There is no end to the bureaucratic appetite to run our lives, and the pharmaceutical industry is eager to sell psychotropic drugs to millions of new customers in American schools. Only tremendous public opposition will suffice to overcome the lobbying and bureaucratic power behind the president’s New Freedom Commission. interest The Maestro Changes his Tune 21 February 2005    Texas Straight Talk 21 February 2005 verse 7 ... Cached Second, inflation is a much greater problem than the federal government admits. Health care, housing, and energy are three areas where costs have risen dramatically. The producer price index is rising at the fastest rate in seven years. Bond prices are rising. To suggest that rapid expansion of the money supply and artificially low interest rates do not ultimately cause price inflation is absurd. interest The Maestro Changes his Tune 21 February 2005    Texas Straight Talk 21 February 2005 verse 9 ... Cached It’s not enough to question the wisdom of Mr. Greenspan. Americans should question why we have a central bank at all, and whose interests it serves. The laws of supply and demand work better than any central banker to determine both the correct supply of money in the economy and the interest rate at which capital is available- without the political favoritism and secrecy that characterize central banks. Americans should not tolerate the manipulation of our economy and the inflation of our currency by an unaccountable institution. interest Deficits Make You Poorer 14 March 2005    Texas Straight Talk 14 March 2005 verse 5 ... Cached Repaying trillions of dollars will not be easy, however. Interest payments alone already consume nearly 10% of the annual federal budget, and Congress shows no sign of abating its spending appetite anytime soon. In fact, present spending rates will produce single-year deficits of $1 trillion in coming years unless the public finally gets fed up and demands an end to it. interest Deficits Make You Poorer 14 March 2005    Texas Straight Talk 14 March 2005 verse 9 ... Cached Deficits mean more borrowing overseas, which threatens U.S. sovereignty. Never before has the American economy depended so much on the actions of foreign governments and central banks. China and other foreign creditors could in essence wage economic war against us simply by dumping their huge holdings of U.S. dollars, driving the value of those dollars sharply downward and severely damaging our economy. Every dollar the federal government borrows makes us less secure as a nation, by making America beholden to interests outside our borders. interest Deficits Make You Poorer 14 March 2005    Texas Straight Talk 14 March 2005 verse 10 ... Cached The economic situation today is reminiscent of the 1970s. The economic malaise of that era resulted from the profligacy of the 1960s, when Congress wildly expanded the welfare state and fought an expensive war in southeast Asia. Large federal deficits led to stagflation-- a combination of high price inflation, high interest rates, high unemployment, and stagnant economic growth. I fear that today’s economic fundamentals are worse than the 1970s: federal deficits are higher, the supply of fiat dollars is much greater, and personal savings rates are much lower. If the federal government won’t stop spending, borrowing, printing, and taxing, we may find ourselves in far worse shape than 30 years ago. interest Empty Rhetoric for Veterans 04 April 2005    Texas Straight Talk 04 April 2005 verse 8 ... Cached Today’s American soldiers are the veterans of the future, and they should never be sent to war without clear objectives that serve definite American national security interests. They should never fight at the behest of the United Nations or any other international agency. They should never serve under a UN flag, nor answer to a UN commander. They deserve to know that they fight for the American people and the Constitution, and that the decision to send them into battle was made by their own Congress via an express declaration of war—NOT by UN bureaucrats who don’t care about them. interest Why Do We Fund UNESCO? 18 April 2005    Texas Straight Talk 18 April 2005 verse 6 ... Cached President Reagan rightly withdrew the U.S. from UNESCO in 1984, citing the organization’s financial mismanagement, blatant anti-Americanism, and general hostility to freedom. He believed the organization had become too politicized, too bloated, and too hostile to free markets. Furthermore, UNESCO enjoyed rapidly expanding budgets during the 1970s and 1980s, which President Reagan felt American taxpayers should not shoulder. President Reagan was correct in identifying UNESCO as an organization that did not act in America's interest, and he was correct in questioning why the United States should fund 25 percent of UNESCO's budget for that privilege. interest Why Do We Fund UNESCO? 18 April 2005    Texas Straight Talk 18 April 2005 verse 11 ... Cached President Reagan’s politically brave withdrawal from UNESCO portended an era of greater disengagement from the United Nations itself. Congress can revitalize that worthy goal by urging the administration to rethink its terrible decision to entangle the American people with an organization as rotten as UNESCO. I recently introduced a congressional resolution urging an official withdrawal from UNESCO, and I plan to attach the resolution as an amendment to a foreign aid spending bill this summer. It will be interesting to see whether the same members of Congress who savaged the UN before the Iraq war actually vote to get America out of UNESCO. interest Does the WTO Serve Our Interests? 16 May 2005    Texas Straight Talk 16 May 2005 verse 1 ... Cached Does the WTO Serve Our Interests? interest Does the WTO Serve Our Interests? 16 May 2005    Texas Straight Talk 16 May 2005 verse 4 ... Cached The World Trade Organization by its own admission is not just about trade. According to the WTO website, liberalizing trade actually takes a back seat to its more activist ambitions, such as “development”-- a euphemism for wealth-transfers from rich nations to poor nations. Likewise, their own website promises that, “In the WTO, commercial interests do not take priority over environmental protection.” In 1994 the WTO created the Trade and Environment Committee to bring “environmental and sustainable development issues into the mainstream of WTO work.” What does this mean? It would not take much imagination to tie any environmental issue to trade and thus invite WTO meddling. interest Congress and the Federal Reserve Erode Your Dollars 23 May 2005    Texas Straight Talk 23 May 2005 verse 4 ... Cached This kind of bluster may serve political interests, but in reality we have nobody to blame but ourselves for the sharp decline in the US dollar. Congress and the Federal Reserve, not China, are the real culprits in the erosion of your personal savings and buying power. Congress relentlessly spends more than the Treasury collects in taxes each year, which means the US government must either borrow or print money to operate- both of which cause the value of the dollar to drop. When we borrow a billion dollars every day simply to run the government, and when the Federal Reserve increases the money supply by trillions of dollars in just 15 years, we hardly can expect our dollars to increase in value. interest Congress and the Federal Reserve Erode Your Dollars 23 May 2005    Texas Straight Talk 23 May 2005 verse 7 ... Cached Unlike wealthy currency traders, most Americans are stuck with their U.S. dollars. Average people, particularly those who depend on savings or fixed incomes to fund their retirement years, cannot abide the continued devaluation of our currency. A true strong-dollar policy would not depend on the actions of China or any other nation. It would, however, require a constriction of the money supply and higher interest rates, both of which would cause some short-term pain for the American economy. In the long run, however, such a correction is the only alternative to the continued erosion of our dollars. interest CAFTA: More Bureaucracy, Less Free Trade 06 June 2005    Texas Straight Talk 06 June 2005 verse 5 ... Cached We don’t need government agreements to have free trade. We merely need to lower or eliminate taxes on the American people, without regard to what other nations do. Remember, tariffs are simply taxes on consumers. Americans have always bought goods from abroad; the only question is how much our government taxes us for doing so. As economist Henry Hazlitt explained, tariffs simply protect politically-favored special interests at the expense of consumers, while lowering wages across the economy as a whole. Hazlitt, Ludwig von Mises, Friedrich Hayek, Murray Rothbard, and countless other economists have demolished every fallacy concerning tariffs, proving conclusively that unilateral elimination of tariffs benefits the American people. We don’t need CAFTA or any other international agreement to reap the economic benefits promised by CAFTA supporters, we only need to change our own harmful economic and tax policies. Let the rest of the world hurt their citizens with tariffs; if we simply reduce tariffs and taxes at home, we will attract capital and see our economy flourish. interest Can the UN Really be Reformed? 20 June 2005    Texas Straight Talk 20 June 2005 verse 5 ... Cached Many conservatives have bought into the neoconservative dream of using the UN as a tool to advance an aggressive US foreign policy. But granting more power to the UN can only serve the interests of globalists, who see national sovereignty as an obstacle to their goals. The more we involve ourselves with the UN, the more we entangle ourselves in the affairs of other nations to our own detriment. America has nothing to show for our 60 years in the UN except for tens of thousands of dead or injured soldiers, and hundreds of billions of wasted tax dollars. The 20th century-- the UN century-- was the bloodiest in the world’s history. We must stop fooling ourselves that the UN is an instrument of world peace. interest Federal Funding for Mental Health Screening of Kids 27 June 2005    Texas Straight Talk 27 June 2005 verse 5 ... Cached The psychiatric establishment and the pharmaceutical industry of course support government mental health screening programs in schools, because they both stand to benefit from millions of new customers. But we should not allow self-interested industries to use a government program to create a captive audience for their products. We should be especially careful about medicating children with psychotropic drugs when their brains are still developing. Far too many children are being stigmatized by dubious diagnoses like Attention Deficit Disorder, and placed on drugs simply because they exhibit behavior that we used to understand as restlessness or rambunctious horseplay. This is especially true of young boys, who cannot thrive in our increasingly feminized government schools. Sadly, many parents and teachers find it easier to drug energetic boys than discipline them. interest Lessons from the Kelo Decision 04 July 2005    Texas Straight Talk 04 July 2005 verse 4 ... Cached The City of New London, Connecticut essentially acted as a strongman by seizing private property from one group of people for the benefit of a more powerful private interest. For its services, the city will be paid a tribute in the form of greater taxes from the new development. In any other context, what’s happening in Connecticut properly would be described as criminal. However, the individuals losing their homes understand that stealing is stealing, even if the people responsible are government officials. The silver lining in the Kelo case may be that the veneer of government benevolence is being challenged. interest Lessons from the Kelo Decision 04 July 2005    Texas Straight Talk 04 July 2005 verse 8 ... Cached If anything, the Supreme Court should have refused to hear the Kelo case on the grounds that the 5th amendment does not apply to states. If constitutional purists hope to maintain credibility, we must reject the phony incorporation doctrine in all cases-- not only when it serves our interests. The issue in the Kelo case is the legality of the eminent domain action under Connecticut law, not federal law. Congress can and should act to prevent the federal government from seizing private property, but the fight against local eminent domain actions must take place at the local level. The people of New London, Connecticut could start by removing from office the local officials who created the problem in the first place. interest The Sausage Factory 01 August 2005    Texas Straight Talk 01 August 2005 verse 9 ... Cached The president’s press secretary called the CAFTA vote “a real victory for the American people.” The problem is the vast majority of Americans have not even heard of CAFTA, and those who have overwhelmingly oppose it. CAFTA was conceived and created by corporate interests, and to claim otherwise is preposterous. The CAFTA vote had nothing to do with the American public, or even trade policy per se. CAFTA was driven by politics and nothing more. Multinational corporations and political globalists share the same goals, namely the centralization of political power in international bodies and the diminution of national sovereignty. What we witnessed last week was not just the selling of votes, but also a sellout of American control over our own trade regulations. interest Hey, Big Spender 29 August 2005    Texas Straight Talk 29 August 2005 verse 3 ... Cached When Congress returns to Washington in September, final touches in the form of last-minute pork will be added to the enormous 2006 federal budget. Rosy predictions about a balanced budget in five years will be made, and both parties will pat themselves on the back for crafting another budget agreement. There will be little partisan acrimony, and the media scarcely will report the results of the vote. Congressional spending, which dramatically affects every American, never generates much public interest-- while distractions like Terri Schiavo and Michael Jackson occupy the nation’s attention for months. interest Hey, Big Spender 29 August 2005    Texas Straight Talk 29 August 2005 verse 9 ... Cached The bottom line is that everyone in Washington says they oppose pork and want government to spend less, but few in Congress actually vote that way. Most DC politicians are far too dependent on special interest money to make any waves. “Go along to get along” is the creed of the political class, and nothing will change unless and until the American public stops electing and re-electing the big spenders to office. interest Gas, Taxes, and Middle East Policy 05 September 2005    Texas Straight Talk 05 September 2005 verse 10 ... Cached Electric, hybrid, and alternative fuel vehicles may be the future, but for the foreseeable future the American economy will continue to depend on oil. We must face this reality and increase the number of domestic refineries, while considering immediate tax relief at the pump. Long term, we must rethink our foreign policy to focus on the interests of American citizens rather than spending billions on nation-building exercises. We are spending more than one billion dollars every week in Iraq, and thousands of National Guard soldiers are assigned there. Those dollars and that manpower are sorely needed in Mississippi, Alabama, and Louisiana. interest Deficit Spending and Katrina 19 September 2005    Texas Straight Talk 19 September 2005 verse 8 ... Cached My simple suggestion to my colleagues is this: Find dollar-for-dollar offsets for all hurricane relief spending while public attention remains focused on the destruction in New Orleans. Once interest in Katrina fades, other spending priorities will reassert themselves and any sense that tax dollars are finite will be lost. Congressional spending habits, in combination with our flawed monetary system, could bring us a financial whirlwind that makes Katrina look like a minor storm. interest Who Opposes Simpler, Lower Taxes? 17 October 2005    Texas Straight Talk 17 October 2005 verse 3 ... Cached The president’s advisory panel on tax reform held a public meeting last week to discuss possible changes to our tax code, which most Americans view as a disgrace. Unfortunately, the reform panel consists almost entirely of Washington beltway insiders who have absolutely nothing in common with ordinary American taxpayers. The members are former Congressmen and Senators, DC think tank scholars, university professors, and-- unbelievably-- a former commissioner of the IRS! It’s hard to imagine someone more opposed to taxpayer interests than the head of the IRS, the very agency that millions of Americans want abolished. interest Who Opposes Simpler, Lower Taxes? 17 October 2005    Texas Straight Talk 17 October 2005 verse 6 ... Cached The panelists also misused the term “tax subsidy” over and over. A true subsidy is very simple: certain individuals or businesses receive taxpayer money from the government. But the panel members clearly have accepted the thoroughly leftist idea that all income belongs to the state, and therefore the state “subsidizes” you by letting you keep some of the money you earned. This is nonsense. If the government uses tax dollars to build you a house, you have received a subsidy. Taxpayers have given you something. But if you pay less in income taxes because of the mortgage interest deduction, you have not been “subsidized” by anyone. The government has not given you something; it simply has taken less. What kind of tax reform proposals can we expect from people who can’t understand the fundamental difference between a subsidy and a tax cut? interest A Free Market in Gasoline 31 October 2005    Texas Straight Talk 31 October 2005 verse 8 ... Cached Note that much of the support for unrealistic environmental regulations comes from northeastern politicians and media, who weren’t nearly as interested in oil fortunes when the business hit rock bottom in the 1980s. Texas and the gulf coast have always been willing to supply the nation’s energy, and it’s a bit disingenuous to hear criticism from those who are happy to use oil but don’t want refineries in their backyards. interest Too Little, Too Late 14 November 2005    Texas Straight Talk 14 November 2005 verse 11 ... Cached Congress is running out of options in its game of buy now, pay later. Foreign central banks are less interested in loaning us money. Treasury printing presses are worn out from the unprecedented increase in dollars ordered by the Federal Reserve Bank over the past 15 years. Taxpayers are tapped out. Where will the money for Big Government conservatism come from? interest More of the Same at the Federal Reserve 28 November 2005    Texas Straight Talk 28 November 2005 verse 7 ... Cached Inflation is not in check, as anyone who examines the cost of housing, energy, medical care, school tuition, and other basics can attest. In one sense the remarkable rise in housing prices over the last decade really just represents a drop in the value of the dollar. The artificial boom in the 1990s equity markets, engineered by Mr. Greenspan's relentless monetary expansion and interest rate cutting, ended badly for millions of Americans holding overinflated stocks. What will happen when the same thing happens with housing? interest What do Rising Gold Prices Mean? 05 December 2005    Texas Straight Talk 05 December 2005 verse 4 ... Cached Gold prices historically rise when faith in paper currencies erodes, as investors seek the intrinsic value of gold to protect themselves from inflation. It’s interesting to note that while the U.S. dollar has regained some of its value relative to other paper currencies like the Euro, it continues to lose value relative to gold and other hard assets. This shows the folly of using one fiat currency to value another. interest Peace and Prosperity in 2006? 02 January 2006    Texas Straight Talk 02 January 2006 verse 8 ... Cached 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- as we've seen in both Iraq and Afghanistan. Congress cannot continue to increase spending each year and expect tax revenues to keep pace. No reasonable person can argue that a $2.4 trillion budget does not contain huge amounts of special interest spending that can and should be cut by Congress, especially when we are waging an off-budget war in Iraq that costs more than $1 billion every week. interest Scandals are a Symptom, Not a Cause 09 January 2006    Texas Straight Talk 09 January 2006 verse 7 ... Cached Undoubtedly the recent revelations will ignite new calls for campaign finance reform. However, we must recognize that that campaign finance laws place restrictions only on individuals, not politicians. Politicians will continue to tax and spend, meaning they will continue to punish some productive Americans while rewarding others with federal largesse. The same vested special interests will not go away, and the same influence peddling will happen every day on Capitol Hill. interest Scandals are a Symptom, Not a Cause 09 January 2006    Texas Straight Talk 09 January 2006 verse 8 ... Cached The reason is very simple: when the federal government redistributes trillions of dollars from some Americans to others, countless special interests inevitably will fight for the money. The rise in corruption in Washington simply mirrors the rise in federal spending. The fundamental problem is not with campaigns or politicians primarily, but rather with popular support for the steady shift from a relatively limited, constitutional federal government to the huge leviathan of today. interest New Rules, Same Game 23 January 2006    Texas Straight Talk 23 January 2006 verse 3 ... Cached Last week I mailed each of my congressional colleagues a copy of a speech outlining my views on the lobbying and ethics scandals engulfing Washington. I’m afraid many of them won’t like my conclusion: to reduce corruption in government, we must make government less powerful-- and hence less interesting to lobbyists. interest New Rules, Same Game 23 January 2006    Texas Straight Talk 23 January 2006 verse 7 ... Cached It’s no wonder a system of runaway lobbying and special interests has developed. When we consider the enormous entitlement and welfare system in place, and couple that with a military-industrial complex that feeds off perpetual war and encourages an interventionist foreign policy, the possibilities for corruption are endless. We shouldn’t wonder why there is such a powerful motivation to learn the tricks of the lobbying trade-- and why former members of Congress and their aides become such high priced commodities. interest The Real Washington Scandal 06 February 2006    Texas Straight Talk 06 February 2006 verse 4 ... Cached Later this month our Treasury once again will hit the "debt ceiling," a figure based on federal law that limits the amount of money the federal government can borrow. The total amount of federal debt as of this month is a staggering $8.2 trillion, a number that is almost incomprehensible. The effects of this debt, however, will be felt by all of us in the form of inflation, higher interest rates, and a weakened U.S. economy. interest The Real Washington Scandal 06 February 2006    Texas Straight Talk 06 February 2006 verse 6 ... Cached The simplest way for the Fed to overcome these fears and maintain worldwide enthusiasm for the dollar is to raise interest rates and stop putting new dollars into circulation. But the Greenspan "boom" was based on the opposite approach. By cutting interest rates to the bone and vastly increasing the money supply, Greenspan made Americans feel rich-- first with the stock market bubble of the 1990s, and later with the housing bubble that is only now starting to burst. Greenspan was brilliant at making debt feel like wealth, but Mr. Bernanke inherits a very difficult situation. To maintain the value of the dollar, he must put the brakes on the money supply and raise the cost of borrowing. Such tough action is unlikely, however, given Mr. Bernanke's troubling public statements about the benefits of government printing presses. interest The Port Security Controversy 27 February 2006    Texas Straight Talk 27 February 2006 verse 6 ... Cached This is not a true free market transaction, but rather a marriage of multinational corporate and state interests. And surely the American people should have a say over foreign governments doing business here, especially when that business affects port security. interest How Government Debt Grows 13 March 2006    Texas Straight Talk 13 March 2006 verse 3 ... Cached Today our national debt stands at $8.2 trillion, which represents about $26,000 for every man, woman, and child in America. Interestingly, the legal debt limit is only $8.18 trillion, a figure that was reached a few weeks ago. This means the Treasury department must ask Congress to raise the debt limit very soon, most likely as part of a larger bill so it can be hidden from the American people. interest Another "Emergency" Spending Bill 20 March 2006    Texas Straight Talk 20 March 2006 verse 9 ... Cached The real emergency is in Washington, where Congress is spending and borrowing America into a perfect storm. As economist James Turk explains, the federal government now relies upon debt to finance 20% of its spending. Low interest rates during the 1990s and early 2000s kept interest payments on government debts- Treasury Bonds and Treasury Bills- somewhat manageable. During the same period, however, the Federal Reserve greatly increased the money supply, which has caught up to us in the form of price inflation. The Fed now must raise rates to combat this inflation, but higher interest rates will chill economic growth and slow tax revenue. To quote Mr. Turk, “The federal government faces a potentially toxic mix of constrained revenues, soaring expenditures, ballooning debt, and rising interest rates.” interest The Perils of Economic Ignorance 27 March 2006    Texas Straight Talk 27 March 2006 verse 3 ... Cached Last week in this column I wrote of a perfect economic storm facing America, caused by a federal government that spends, borrows, and prints so much money that our dollars are eroding in value at an alarming rate. Year after year our federal government spends beyond its revenues, prints new money to pay its debts, and borrows hundreds of billions abroad in the form of Treasury obligations that someday must be paid. With too many dollars and debt instruments in circulation, and no political will in Washington to cut spending, we've created a monster. Our perceived prosperity depends on keeping the great debt and credit engine pumping, but the only way to attract new lenders to fuel the engine is higher interest rates. At some point one of two things must happen: either the party in Washington ends, or the supremacy of the dollar as the world's reserve currency ends. It's a sobering thought, but a choice must be made. interest Policy is More Important than Personnel 24 April 2006    Texas Straight Talk 24 April 2006 verse 7 ... Cached It’s interesting to note that our founders warned against maintaining standing armies at all, both because of the taxes required to do so and the threats to liberty posed by a permanent military. interest Foreign Policy, Monetary Policy, and Gas Prices 08 May 2006    Texas Straight Talk 08 May 2006 verse 9 ... Cached We also must understand the effect monetary policy has on gas prices. The price of gas, like the price of all things, goes up because of inflation. And inflation by definition is an increase in the money supply. The money supply is controlled by the Federal Reserve Bank, and responds to the deficits Congress creates. When deficits are excessive, as they are today, the Fed creates new dollars out of thin air to buy Treasury bills and keep interest rates artificially low. But when new money is created out of nothing, the money already in circulation loses value. Once this is recognized, prices rise-- some more rapidly than others. That’s what we see today with the cost of energy. interest The Declining Dollar Erodes Personal Savings 15 May 2006    Texas Straight Talk 15 May 2006 verse 7 ... Cached As Mr. Mehring suggests, the Federal Reserve may have no choice but to raise interest rates to maintain foreign enthusiasm for our dollar. It’s a serious problem that new Fed Chair Benjamin Bernanke must address sooner or later: propping up the dollar with higher interest rates without killing the U.S. economy in the process. interest Avoiding War with Iran 22 May 2006    Texas Straight Talk 22 May 2006 verse 5 ... Cached It’s time for a foreign policy based on reality, a foreign policy that serves the interests of ordinary Americans. The reality is that we will continue to use oil as a major source of energy in this country for the foreseeable future, and therefore the health of our economy will be affected by the price of oil. Like it or not, some of that oil will continue to come from the Middle East even if we get serious about tapping domestic sources. interest What Congress Can Do About High Gas Prices 31 July 2006    Texas Straight Talk 31 July 2006 verse 7 ... Cached Third: We must remember that prices of all things go up because of inflation. Inflation by definition is an increase in the money supply. The money supply is controlled by the Federal Reserve Bank, and responds to the deficits Congress creates. When deficits are excessive, as they are today, the Fed creates new dollars out of thin air to buy Treasury bills and keep interest rates artificially low. But when new money is created out of nothing, the money already in circulation loses value. Once this is recognized, prices rise-- some more rapidly than others. That’s what we see today with the cost of energy. interest Your Taxes Subsidize China 14 August 2006    Texas Straight Talk 14 August 2006 verse 5 ... Cached I offered an amendment before the House of Representatives last month that would have ended the $4 billion subsidy our nation quietly gives China through the US government's Export-Import Bank. The bank underwrites the purchases of goods and services by the Chinese government and others around the world. Unfortunately, only a minority of Democrats or Republicans supported my measure. Apparently, many members of Congress are happy to bash China, but don’t mind lending her U.S. taxpayer money at sweetheart interest rates. interest Elected Officials Threaten Property Rights 04 September 2006    Texas Straight Talk 04 September 2006 verse 3 ... Cached In recent weeks I've written about the threat of rising property taxes posed by state and local governments hungry for more and more of your money; and the threat of widespread eminent domain actions posed by a planned North American superhighway running straight through Texas. It's clear that many political and business interests are only too willing to drive people literally out of their homes to make way for the grand schemes of those in power. interest Diagnosing our Health Care Woes 25 September 2006    Texas Straight Talk 25 September 2006 verse 8 ... Cached As government bureaucracy continues to give preferences and protections to HMOs and trial lawyers, it will be the patients who lose, despite the glowing rhetoric from the special interests in Washington. Patients will pay ever rising prices and receive declining care while doctors continue to leave the profession in droves. interest Deficit Spending and Social Security 09 October 2006    Texas Straight Talk 09 October 2006 verse 8 ... Cached I introduced legislation to end this terrible practice. Under my bill, HR 219, your Social Security contributions are set aside in an interest-bearing account and cannot be spent. In other words, your Social Security account would be treated as YOUR account and not a slush fund for Congress. This is the simplest approach to Social Security reform, and it has the added benefit of making it harder for Congress and the administration to mask the deficit spending that is the real cause of our problems. interest The NAFTA Superhighway 30 October 2006    Texas Straight Talk 30 October 2006 verse 9 ... Cached The SPP was not created by a treaty between the nations involved, nor was Congress involved in any way. Instead, the SPP is an unholy alliance of foreign consortiums and officials from several governments. One principal player is a Spanish construction company, which plans to build the highway and operate it as a toll road. But don’t be fooled: the superhighway proposal is not the result of free market demand, but rather an extension of government-managed trade schemes like NAFTA that benefit politically-connected interests. interest Demographic Reality and the Entitlement State 13 November 2006    Texas Straight Talk 13 November 2006 verse 8 ... Cached I urge everyone interested to visit the GAO website at href="http://www.gao.gov/">www.gao.gov, where you can view a report entitled: "Our Nation's Fiscal Outlook: The Federal Government's Long-Term Budget Imbalance." This report should be required reading for every politician in Washington. interest Monetary Inflation is the Problem 04 December 2006    Texas Straight Talk 04 December 2006 verse 5 ... Cached Federal Reserve Chairman Ben Bernanke faces two basic ongoing choices: raise interest rates to prop up the dollar, but risk pushing the economy into a recession; or lower interest rates to stimulate the economy, but risk further declines in the dollar. This unfortunate dilemma is inherent with a fiat currency, however. interest Monetary Inflation is the Problem 04 December 2006    Texas Straight Talk 04 December 2006 verse 6 ... Cached Of course Mr. Bernanke inherited this tightrope act from his predecessor Alan Greenspan. The Federal Reserve did two things to artificially expand the economy during the Greenspan era. First, it relentlessly lowered interest rates whenever growth slowed. Interest rates should be set by the free market, with the availability of savings determining the cost of borrowing money. In a healthy market economy, more savings equals lower interest rates. When savings rates are low, capital dries up and the cost of borrowing increases. interest Monetary Inflation is the Problem 04 December 2006    Texas Straight Talk 04 December 2006 verse 7 ... Cached However, when the Fed sets interest rates artificially low, the cost of borrowing becomes cheap. Individuals incur greater amounts of debt, while businesses overextend themselves and grow without real gains in productivity. The bubble bursts quickly once the credit dries up and the bills cannot be paid. interest The Original Foreign Policy 18 December 2006    Texas Straight Talk 18 December 2006 verse 6 ... Cached But what policy is best? How should we deal with the rest of the world in a way that best advances proper national interests, while not threatening our freedoms at home? interest Another Spending Bill for the War in Iraq 12 February 2007    Texas Straight Talk 12 February 2007 verse 4 ... Cached Never mind that the American people showed their dissatisfaction with the war in the fall elections. Congress lacks the political will to stand up to the administration and assert its power over the purse strings, and too many vested interests in the defense sector benefit from the supplemental bills. A cynic might even suggest that many Democrats want the war to drag on, despite their supposed opposition, to damage the president politically and benefit them in 2008. But whatever the reason, the money for war keeps flowing. interest Monetary Policy is Critically Important 19 February 2007    Texas Straight Talk 19 February 2007 verse 3 ... Cached Federal Reserve Chairman Ben Bernanke testifies twice every year before the congressional Financial Services committee, and I look forward to these opportunities to raise questions about monetary policy. I believe monetary policy is critically important yet overlooked in Washington. Money is the lifeblood of any economy, and control over a nation's currency means control over its economic well being. Fed bankers quite literally determine the value of our money, by controlling the supply of dollars and establishing interest rates. Their actions can make you richer or poorer overnight, in terms of the value of your savings and the buying power of your paycheck. So I urge all Americans to educate themselves about monetary policy, and better understand how a small group of unelected individuals at the Federal Reserve and Treasury department wield tremendous power over our lives. interest Hypocrisy in the Middle East 26 February 2007    Texas Straight Talk 26 February 2007 verse 4 ... Cached Consider Saudi Arabia, the native home of most of the September 11th hijackers. The Saudis, unlike the Iraqis, have proven connections to al Qaeda. Saudi charities have funneled money to Islamic terrorist groups. Yet the administration insists on calling Saudi Arabia a “good partner in the war on terror.” Why? Because the U.S. has a longstanding relationship with the Saudi royal family, and a long history of commercial interests relating to Saudi oil. So successive administrations continue to treat the Saudis as something they are not: a reliable and honest friend in the Middle East. interest Hypocrisy in the Middle East 26 February 2007    Texas Straight Talk 26 February 2007 verse 5 ... Cached The same is true of Pakistan, where General Musharaf seized power by force in a 1999 coup. The Clinton administration quickly accepted his new leadership as legitimate, to the dismay of India and many Muslim Pakistanis. Since 9/11, we have showered Pakistan with millions in foreign aid, ostensibly in exchange for Musharaf’s allegiance against al Qaeda. Yet has our new ally rewarded our support? Hardly. The Pakistanis almost certainly have harbored bin Laden in their remote mountains, and show little interest in pursuing him or allowing anyone else to pursue him. Pakistan has signed peace agreements with Taliban leaders, and by some accounts bin Laden is a folk hero to many Pakistanis. interest Hypocrisy in the Middle East 26 February 2007    Texas Straight Talk 26 February 2007 verse 7 ... Cached The tired assertion that America "supports democracy" in the Middle East is increasingly transparent. It was false 50 years ago, when we supported and funded the hated Shah of Iran to prevent nationalization of Iranian oil, and it’s false today when we back an unelected military dictator in Pakistan- just to name two examples. If honest democratic elections were held throughout the Middle East tomorrow, many countries would elect religious fundamentalist leaders hostile to the United States. Cliché or not, the Arab Street really doesn’t like America, so we should stop the charade about democracy and start pursuing a coherent foreign policy that serves America’s long-term interests. interest The DC Gun Ban 12 March 2007    Texas Straight Talk 12 March 2007 verse 6 ... Cached In the 1700s, militias were local groups made up of ordinary citizens. They were not under federal control! As a practical matter, many of them were barely under the control of colonial or state authorities. When the 2nd Amendment speaks of a "well-regulated militia," it means local groups of individuals operating to protect their own families, homes, and communities. They regulated themselves because it was necessary and in their own interest to do so. interest Don't Blame the Market for Housing Bubble 19 March 2007    Texas Straight Talk 19 March 2007 verse 5 ... Cached But capitalism is not to blame for the housing bubble, the Federal Reserve is. Specifically, Fed intervention in the economy-- through the manipulation of interest rates and the creation of money-- caused the artificial boom in mortgage lending. interest Don't Blame the Market for Housing Bubble 19 March 2007    Texas Straight Talk 19 March 2007 verse 10 ... Cached The Federal Reserve provides the mother’s milk for the booms and busts wrongly associated with a mythical “business cycle.” Imagine a Brinks truck driving down a busy street with the doors wide open, and money flying out everywhere, and you’ll have a pretty good analogy for Fed policies over the last two decades. Unless and until we get the Federal Reserve out of the business of creating money at will and setting interest rates, we will remain vulnerable to market bubbles and painful corrections. If housing prices plummet and millions of Americans find themselves owing more than their homes are worth, the blame lies squarely with Alan Greenspan and Ben Bernanke. interest More Funding for the War in Iraq 26 March 2007    Texas Straight Talk 26 March 2007 verse 10 ... Cached To top it off, House leadership may have actually made war with Iran more likely. The bill originally contained language making it clear that the president would need congressional authorization before attacking Iran – as the Constitution requires. But this language was dropped after special interests demanded its removal. This move can reasonably be interpreted as de facto congressional authority for an attack on Iran. Let’s hope that does not happen. interest The Federal Reserve Monopoly over Money 09 April 2007    Texas Straight Talk 09 April 2007 verse 4 ... Cached Certainly it’s true that Mr. Bernanke can drastically affect the economy at the drop of a hat, simply by making decisions about the money supply and interest rates. But why do members of Congress assume this is good? Why do we accept without objection that a small group of people on the Federal Reserve Board wields so much power over our economic well-being? Is centralized, monopoly control over our money even compatible with a supposedly free-market economy? interest The Federal Reserve Monopoly over Money 09 April 2007    Texas Straight Talk 09 April 2007 verse 7 ... Cached The Fed’s inflationary policies hurt older people the most. Older people generally rely on fixed incomes from pensions and Social Security, along with their savings. Inflation destroys the buying power of their fixed incomes, while low interest rates reduce any income from savings. So while Fed policies encourage younger people to overborrow because interest rates are so low, they also punish thrifty older people who saved for retirement. interest The Federal Reserve Monopoly over Money 09 April 2007    Texas Straight Talk 09 April 2007 verse 9 ... Cached Fiat dollars allow us to live beyond our means, but only for so long. History shows that when the destruction of monetary value becomes rampant, nearly everyone suffers and the economic and political structure becomes unstable. Spendthrift politicians may love a system that generates more and more money for their special interest projects, but the rest of us have good reason to be concerned about our monetary system and the future value of our dollars. interest The Price of Delaying the Inevitable in Iraq 04 June 2007    Texas Straight Talk 04 June 2007 verse 5 ... Cached All of this hyperbole came while ignoring the precise warnings by our intelligence community of the great difficulties that would lie ahead. The chaos that this preemptive, undeclared war has created in Iraq has allowed the Al Qaida to establish a foothold in Iraq and the strategic interests of Iran to be served. interest Signing Statements Erode Constitutional Balance 09 July 2007    Texas Straight Talk 09 July 2007 verse 10 ... Cached Concerns with signing statements ought to include a concern for the health of our constitutional republic, it ought not to be based upon the political battle of the day. Regardless of whether the President is named Bush or Clinton, and without respect to any particular political interest, we in Congress need to fulfill our oath of office and protect and defend the constitution and our republic. Our constituents deserve no less, and should demand it of all of us. interest Exposing the True Isolationists 23 July 2007    Texas Straight Talk 23 July 2007 verse 7 ... Cached America is now held in low esteem in many nations, not because we follow our own interests, but because the elites make claims that are not reflected in reality. They have, for example, undertaken economic sanctions in an entirely new way in recent years. When they wanted to take aim at Iraq and Iran, they imposed sanctions against those countries, but also against countries doing business with those countries. This meant we were in no position to negotiate with our adversaries, and we also could not rely on support from our allies. interest High Risk Spending 13 August 2007    Texas Straight Talk 13 August 2007 verse 3 ... Cached Last week this column addressed the train wreck that federal spending has become. To score political points politicians will make loud noise about fairly small matters such as earmarks, even while refusing to address the real problem. Namely, that our federal government is too big and does too much. Politicians prefer to pass a bill or create a program every time somebody points to a new social problem, this way they can tell their constituents how much they are doing to help. Instead of rationally explaining the proper role of government, politicians have attempted to play the role of friend, preacher, parent, social worker, etcetera-- in essence, whatever any organized special interest can demand. interest High Risk Credit 20 August 2007    Texas Straight Talk 20 August 2007 verse 6 ... Cached In addition to the negative reactions in financial markets, many Americans have taken on too much personal debt owing to exotic mortgage products and artificially low interest rates. Unfortunately, these families are now in the position of losing their homes in unprecedented numbers as the teaser rates expire and the real bills are coming due. interest High Risk Credit 20 August 2007    Texas Straight Talk 20 August 2007 verse 7 ... Cached The real answers are, and always have been, found in the principles of the free market. Let the market set the interest rates. If we had been functioning under a true and transparent free market system, we would not be in the mess we are in today. Government, like the American household, needs to live within its means to get back on stable fiscal ground. interest Interventionism? Isolationism? Actually, Both. 21 October 2007    Texas Straight Talk 21 October 2007 verse 8 ... Cached In this instance, the problem is that many of my colleagues in Congress are more interested in seeking to score political points and proclaim their moral superiority, instead of worrying about our nation’s best interests. Also, in most of these situations, those who oppose the resolution regarding Turkey all-too-often fail to realize that similar resolutions dealing with other nations have the exact same effect. Namely, they isolate our country from the rest of the world. interest Entangling Alliances 11 November 2007    Texas Straight Talk 11 November 2007 verse 3 ... Cached Meanwhile, terrorist threats on US interests may be more likely to originate from Pakistan, a country to which we have sent $10 billion. interest The True Cost of Taxing and Spending 18 November 2007    Texas Straight Talk 18 November 2007 verse 3 ... Cached Now, the Democrats on the Joint Economic Committee have released a report on the total costs of the military operations in Iraq and Afghanistan , including "hidden costs" such as interest on the money we're borrowing, and long term healthcare for vets. The bill comes to $3.5 trillion. Republicans are, of course, questioning the math on this item. interest The Importance of Fiscal Responsibility 16 December 2007    Texas Straight Talk 16 December 2007 verse 5 ... Cached We are at a crucial point in history right now. We must think very carefully about our next moves. There is coming a time, if we continue on this path, when all that our tax dollars and government revenues will be able to do is pay interest on the mountain of debt we have compiled in the past few decades. That will mean no government programs or services of any kind will be funded, yet future generations of Americans will still struggle under a crushing tax burden with nothing to show for it. That is why fiscal restraint and common sense with the budget are so vitally important in government. interest No Sunlight on the Omnibus 06 January 2008    Texas Straight Talk 06 January 2008 verse 6 ... Cached However, we are led to believe that if the Omnibus bill failed, horrible things would have happened. But the situation is a setup that ensures our government spending balloons every year just as the elites and special interests dictate. The vast majority of Members of Congress don't actually know what the money is being spent on until after passage and by then it is too late. interest Economic Stimulus Concerns 27 January 2008    Texas Straight Talk 27 January 2008 verse 11 ... Cached Sending out checks and cutting interest rates yet again is merely a shot in the arm when in actuality, the economy needs major surgery. I look forward to working with my colleagues in Congress to provide major tax relief to the American people. interest On Money, Inflation and Government 30 March 2008    Texas Straight Talk 30 March 2008 verse 6 ... Cached The Federal Reserve, a quasi-government entity, should not be creating money or determining interest rates, as this causes malinvestment and excessive debt to accumulate. Centrally planned, government manipulated economies always fail eventually. The collapse of communism and the failure of socialism should have made this apparent. Even the most educated, well-intentioned central planners cannot plan the market better than the market itself. Those that understand economics best, understand this reality. interest 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. interest Big Government Responsible for Housing Bubble 11 May 2008    Texas Straight Talk 11 May 2008 verse 3 ... Cached However, many in Washington fail to realize it was government intervention that brought on the current economic malaise in the first place. The Federal Reserve’s artificially low interest rates created the loose, easy credit that ignited a voracious appetite in the banks for borrowers. People made these lending and buying decisions based on market conditions that were wildly manipulated by government. But part of sound financial management should be recognizing untenable or falsified economic conditions and adjusting risk accordingly. Many banks failed to do that and are now looking to taxpayers to pick up the pieces. This is wrong-headed and unfair, but Congress is attempting to do it anyway. interest The Economy: Another Casualty of War 18 May 2008    Texas Straight Talk 18 May 2008 verse 4 ... Cached Explosive growth of government is just another tragedy of this war. The "bipartisan" compromises made in Washington are at the expense of the taxpayer, not in the interest of fiscal responsibility, or peace. The taxpayer loses and government grows. interest Rising Energy Prices and the Falling Dollar 09 June 2008    Texas Straight Talk 09 June 2008 verse 3 ... Cached Part of the answer lies in understanding bubbles and monetary inflation, but especially the Federal Reserve System. The Federal Reserve is charged with controlling inflation through interest rate manipulation, however, many fail to realize that creating money, and therefore inflation, is really its only tool. When the Federal Reserve inflates the dollar as drastically as it has in the past few decades, the first users of the newly created money go in search of investments for their dollars. They must invest this money quickly and aggressively before it loses value. This causes certain sectors to expand beyond what would naturally occur in the free market. Eventually the sector overheats and the bubble bursts. Overinvestment in dotcoms eventually led to a collapse of the NASDAQ. Next we had the housing bubble, and now we are seeing the price of oil being bid up in the creation of another new bubble. Investors are now looking to commodities like oil, for stability and growth as they pull capital out of real estate. This increased demand for investment vehicles related to oil contributes to driving up the price of the actual product. interest A Major Victory for Texas 23 June 2008    Texas Straight Talk 23 June 2008 verse 5 ... Cached However, now is not the time to rest on our laurels. The bittersweet aspect of this victory is that we had to fight at all. We took time away from family and friends, doing other things, to attend these meetings, inform others, write letters, post signs and submit our complaints, and we should not have had to. Government should let us be, if we are peaceful citizens, harming no one. In a perfect world, government could be trusted to act in the best interests of the people without overwhelming pressure of this kind. This is not a perfect world. Constant pressure is needed to keep government in check, and we succeeded this time. But this will not be the last time citizen efforts and involvement will be required. We still face many unreasonable encroachments of big government today, from confiscatory, economy-strangling taxation to creeping disregard of the right of habeas corpus and other Constitutional rights, to thousands of nuisance bureaucratic regulations interfering with our every day lives. We have drifted far from what the founding fathers envisioned for this nation. Last week was just one victory towards getting back on the right path. We must continue to hold politicians’ feet to the Constitutional fire. If I had to guess, they will probably try to implement the NAFTA Superhighway again sometime in the future. 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.