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U.S. Rep. Ron Paul invest Book of Ron Paul invest State Of The Republic 28 January 1998    1998 Ron Paul 2:64 IMF bailouts, just as our military foreign intervention, are generally supported by the leadership of both parties. The establishment has firm control in these two areas and who, out of ignorance or neglect, the Congress as a whole provides little resistance. When the stronger currencies, in this case the dollar, props up a weaker currency, it is nothing more than an example of an international transfer of payment that helps our banks and international corporate investors who have financial exposure in the country or currency under attack. invest 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. invest State Of The Republic 28 January 1998    1998 Ron Paul 2:139 The budgetary process and the transfer of wealth that occurs through monetary inflation is influenced more by the business and banking elite than by the poor. The $1.7 trillion budget is not an investment in liberty. The kings are gone and I doubt that we will see another Stalin, Hitler, Pol Pot or Mao, but the “majority” in our legislative bodies now reign supreme with one goal in mind: maintaining power. invest Three Important Issues For America 11 February 1998    1998 Ron Paul 7:98 So they talk about poison gas. Yes, there is no doubt about it. I think the evidence is out that he has used poison gas against his own people. Horrible, killed a lot of people. But never against another country, which means the line could be drawn by if he had ever used these weapons. We cannot investigate 20 countries. We cannot investigate North Korea. We cannot investigate China. Why do we have this obsession with investigating this country? But poison gases, under international agreements, we are not supposed to use poison gases. invest Access To Energy 25 February 1998    1998 Ron Paul 19:8 The capital required to build these things was supplied by the savings of tens of millions of people, who set aside part of the money they had earned and invested it in the free market in hopes of making a profit. It was also built by the profits retained by the corporations themselves. Capital alone did not, however, build the industries — people did. These people were led by unusual individuals whose love of science and technology dominated their personal lives and drove them and those around them to ever greater accomplishments. invest Birth Defects Prevention Act 10 March 1998    1998 Ron Paul 24:3 As a Congressman, I have repeatedly come to the house floor to denounce the further expansion of the federal government into areas ranging from “toilet-tank-size mandates” to “public housing pet size;” areas, that is, where no enumerated power exists and the tenth amendment reserves to state governments and private citizens the exclusive jurisdiction over such matters. My visits to the floor have not gone uncontested — proponents of an enlarged federal government and more government spending have justified their pet spending and expansionist projects by distorting the meaning of the “necessary and proper” and “common defense and general welfare” clauses to encompass the constitutionally illegitimate activities they advocate. Even the Export-Import Bank and Overseas Private Investment Corporation during Foreign Operations Appropriations debate were constitutionally “justified” by the express power to “coin money and regulate the value thereof”? In other words, where money exists, credit exists — where credit exists, loans exist — where loans exist, defaulters exist — and from this, the federal government has a duty to bail-out (at taxpayer expense) politically connected corporations who make bad loans in political-risk-laden venues? invest Conference Report on H.R. 1757, Foreign Affairs Reform And Restructuring Act Of 1998 26 March 1998    1998 Ron Paul 28:11 Lastly, foreign policy provisions in this report suggest an ever-increasing role for the United States in our current police-the-world mentality. Strong language to encourage all emerging democracies in Central and Eastern Europe to join NATO area amongst these provisions in the conference report. It also authorizes $20 million for the International Fund for Ireland to support reconciliation, job creation, investment therein. For Iraq, the bill authorizes $10 million to train political opposition forces and $20 million for relief efforts in areas of Iraq not under the control of Hussein. invest 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. invest 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. invest Higher Education Amendments of 1998 6 May 1998    1998 Ron Paul 49:11 The association also objects to the requirement that campus make police and security logs available to the general public within two business days as this may not allow for an intelligent interpretation of the impact of the availability of the information and may compromise an investigation, cause the destruction of evidence, or the flight of an accomplice. Furthermore, reporting the general location, date, and time for a crime may identify victims against their will in cases of sexual assault, drug arrests, and burglary investigations. The informed views of those who deal with campus crime on a daily basis should be given their constitutional due rather than dictating to them the speculations of those who sit in Washington and presume to mandate a uniform reporting system for campus crimes. invest The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:1 BACKGROUND Mr. PAUL. Mr. Speaker, the Soviet system, along with the Berlin Wall, came crashing down in 1989, the same year the new, never-to-end, era came to a screeching halt in Japan. The Japanese economic miracle of the 1970’s and the 1980’s, with its “guaranteed” safeguards, turned out to be a lot more vulnerable than any investor wanted to believe. Today the Nikkei stock average is still down 60% from 1989, and the Japanese banking system remains vulnerable to its debt burden, a weakening domestic economy and a growing Southeast Asian crisis spreading like a wild fire. That which started in 1989 in Japan — and possibly was hinted at even in the 1987 stock market “crash” — is now sweeping the Asian markets. The possibility of what is happening in Asia spreading next to Europe and then to America should not be summarily dismissed. invest The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:15 Effort to prop up an ailing economy after the financial bubble has been popped, prolongs the agony and increases the severity of the correction. Japan’s bubble burst in 1989 and there is not yet any sign of the cleansing of the system of bad debt and mal-investment which is necessary before sound growth will resume. And Indonesia is embarking on the same predictable course. Restoration of free markets, and establishing sound monetary policy has not yet been considered. The people of Indonesia and the rest of the world should prepare for the worst as this crisis spreads. For Congress, the most important thing is to forget the notion that further taxing American workers to finance a bail-out, that won’t work, is the worst policy of all for us to pursue. invest The Indonesia Crisis 19 May 1998    1998 Ron Paul 52:20 MESSAGE What should the message be to the Congress and the American people regarding this sudden and major change in the economic climate in Indonesia? First and foremost is that since we operate with a fiat currency, as do all the countries of the world, we are not immune from a sudden and serious economic adjustment — at any time. Dollar strength and our ability to spend dollars overseas, without penalty, will not last forever. Confidence in the U.S. economy, and the dollar will one day be challenged. The severity of the repercussion is not predictable but it could be enormous. Our obligation, as Members of Congress, is to protect the value of the dollar, not to deliberately destroy it, in an attempt to prop up investors, foreign governments or foreign currencies. That policy will only lead to a greater crisis for all Americans. invest The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:1 Mr. PAUL. Mr. Speaker, the Soviet system, along with the Berlin Wall, came crashing down in 1989, the same year the new, never-to-end, era came to a screeching halt in Japan. The Japanese economic miracle of the 1970’s and the 1980’s, with its “guaranteed” safeguards, turned out to be a lot more vulnerable than any investor wanted to believe. Today the Nikkei (Tokyo) stock average is still down 57% from 1989, and the Japanese banking system remains vulnerable to its debt burden, a weakening domestic economy and a growing East Asian crisis spreading like a wild fire. That which started in 1989 in Japan — and possibly was hinted at even in the 1987 stocke market “crash” here — is now sweeping the Asian markets. The possibility of what is happening in Asia spreading next to Europe, and then to America, should not be summarily dismissed. invest The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:15 Effort to prop up an ailing economy after the financial bubble has been popped, prolongs the agony and increases the severity of the correction. Japan’s bubble burst in 1989, and there is not yet any sign of the cleansing of the system of bad debt and mal-investment which is necessary before sound growth will resume. And Indonesia is embarking on the same predictable course. Restoration of free markets, including the establishment of a sound monetary policy, has not yet been considered. The people of Indonesia and the rest of the world should prepare for the worst as this crisis spreads. For Congress, the most important thing is to forget the notion that further taxing American workers to finance a bail-out will work. It won’t work — it is the worst policy of all for us to pursue. invest The Indonesia Crisis 22 May 1998    1998 Ron Paul 54:20 MESSAGE What should the message be to the Congress and the American people regarding this sudden and major change in the economic climate in Indonesia? First and foremost is that since we operate with a fiat currency, as do almost all the countries of the world. We are not immune from a sudden and serious economic adjustment — at any time. Dollar strength and our ability to spend dollars overseas, without penalty, will not last forever. Confidence in the U.S. economy, and the dollar, will one day be challenged. The severity of the repercussion is not predictable but it could be enormous. Our obligation, as Members of Congress, is to protect the value of the dollar, not to destroy it deliberately, in an attempt to prop up investors, foreign governments or foreign currencies. That policy will only lead to a greater crisis for all Americans. invest Campaign Finance Reform 16 June 1998    1998 Ron Paul 59:4 Not only domestically, but Congress is endlessly involved in many affairs overseas. We are involved by passing out foreign aid, getting involved in programs like the IMF and World Bank. We are interfering in internal affairs militarily in over a hundred countries at the present time. So there is a tremendous motivation for people to come here and try to influence us. They see it as a good investment. invest Campaign Finance Reform 16 June 1998    1998 Ron Paul 59:5 More rules and regulations, I believe, will do one thing if the size of government is not reduced. What we will do is drive the influence under ground. That is a natural consequence as long as there is an incentive to invest. invest Campaign Finance Reform 16 June 1998    1998 Ron Paul 59:6 Under the conditions that we have today the only way we can avoid the influence is not ourselves, we, the Members of Congress, being a good investment. We should be independent, courageous and do the things that are right rather than being influenced by the money. But the rules and the regulations will not do very much to help solve this problem. Attacking basic fundamental rights would certainly be the wrong thing to do, and that is what so much of this legislation is doing. It is attacking the fundamental right to speak out to petition the government to spend one’s money the way he sees fit, and this will only make the problems much worse. invest Every Currency Crumbles 24 June 1998    1998 Ron Paul 65:5 People with even a little bit of money ought to be asking what it’s made of. J.S.G. Boggs, an American artist, has made an important contribution to monetary theory with his lifelike paintings of dollar bills. So authentic do these works appear — at least at first glance, before Mr. Boggs’ own signature ornamentation becomes apparent — that the Secret Service has investigated him for counterfeiting. “All money is art,” Mr. Boggs has responded. invest Issue Ads 14 July 1998    1998 Ron Paul 67:6 There is a tremendous incentive to send all this money up here. Unless we deal with the incentive, we cannot deal with the problem. So, so far, almost all the talk that we have heard on this campaign finance reform is dealing with the symptom. The cause is Government is too big. Government is so big there is a tremendous incentive for people to invest this money. So as long as we do not deal with that problem, we are going to see a tremendous amount of money involved. invest Honoring 4-H Programs And Gold Star Recipients 4 August 1998    1998 Ron Paul 94:2 Head, Hand, Hearts and Health, these are the “4–H’s” and they are truly indicative of what this organization is all about. One of the primary missions that this organization undertakes is agricultural education. Earlier this year I introduced a bill which would exempt the sale of livestock by those involved in educational activities such as FFA and 4–H from federal income taxation. By making young men and women who participate in these activities hire a group of tax accountants and attorneys we are sending the wrong message. Young people who sell livestock at county fairs and the like should be rewarded for taking self initiative and allowed to keep the money they’ve earned to help pay for their education or to re-invest in other animals to raise. My bill would eliminate the current policy of forcing these youngsters to visit the tax man. Mr. Speaker, I want to commend the following winners of the Gold Star, the highest award possible at the county level, for achievements in competition at state levels, leadership ability, community service and years of service. They are: Deidrea Harris, Josh Weber, Amanda Tacquard, and Allison Sauer. Again, I want to commend these young people for their achievements. invest Gold Star Awards 5 August 1998    1998 Ron Paul 95:1 Mr. PAUL. Mr. Speaker, the Matagorda County 4-H will hold an awards program on the 20th of August and this is a very important event Mr. Speaker. Mr. Speaker I have, in the past, pointed out how important an organization 4-H truly is for those of us who were raised on farms and who represent agricultural communities. As I have said in the past Mr. Speaker, one of the primary missions that this organization undertakes is agricultural education. I believe that this mission is so critical that, earlier this year, I introduced a bill which would exempt the sale of livestock by those involved in educational activities such as FFA and 4-H from federal income taxation. By making young men and women who participate in these activities hire a group of tax accountants and attorney we are sending the wrong message. Young people who sell livestock at county fairs and the like should be rewarded for taking self initiative and allowed to keep the money they’ve earned to help pay for their education or to re-invest in other animals to raise. My bill would eliminate the current policy of forcing these youngsters to visit the tax man. invest 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. invest Worldwide Financial Crisis 10 September 1998    1998 Ron Paul 97:11 The sooner we understand the nature of the problem and start serious discussions on how to restore soundness to our money the sooner we can secure the savings, investments, and retirements of all Americans. invest Don’t Fast-Track Free Trade Deal 25 September 1998    1998 Ron Paul 103:11 Lastly, critics of the bill convincingly argue that language within H.R. 2621 regarding “Foreign Investment” would establish new rights for foreign investors and corporations and new obligations for the United States. H.R. 2621 attempts to eliminate artificial or trade-distorting barriers to trade-related foreign investment by reducing or eliminating exceptions to the principle of national treatment; free the transfer of funds relating to investments; reduce or eliminate performance requirements and other unreasonable barriers to the establishment and operation of investments; seeks to establish standards for expropriation and compensation for expropriation, consistent with United States legal principles and practice; and provide meaningful procedures for resolving investment disputes. It is argued that H.R. 2621 will congressionally activate the nearly completed Multilateral Agreement on Investment which covers 29 countries and forbids countries from regulating investment or capital flows and would establish new rights for foreign investors and corporations and new obligations for the United States. The MAI requires governments to pay investors for any action that directly or indirectly has an equivalent effect of expropriation. The MAI would be enforceable through international tribunals similar to those of the World Trade Organization without the due process protections of the United States. invest World Financial Markets 1 October 1998    1998 Ron Paul 104:1 Mr. PAUL. Mr. Speaker, the world financial markets have been in chaos now for nearly a year and a half. The problem surrounding long-term capital investment is only one more item to add to the list. The entire process represents the unwinding of speculative investments encouraged by years of easy credit. By the way, Long Term Credit Management is not even an American corporation. It is registered in the Cayman Islands, I am sure for tax purposes. invest Hedge Fund Bailout 2 October 1998    1998 Ron Paul 105:4 Three years ago I addressed the very same issue in Michigan by authoring state legislation that provided increased transparency by requiring units of government to disclose their derivative holdings to the public. Government units have to make investment decisions regarding the money they receive or retain; unfortunately, investment practices and decisions can sometimes lead to significant losses when taxdollars are unwisely invested in derivatives. Orange County in California and Independence Township in Oakland County, Michigan are both examples of government units that experienced significant losses as a result of the imprudent use of derivatives. invest Recognizing The Hays County 4-H Annual Dinner, Dance And Auction 7 October 1998    1998 Ron Paul 112:2 Head, Hand, Hearts and Health, these are the “4–H’s” and they are truly indicative of what this organization is all about. One of the primary missions that this organization undertakes is agricultural education. Earlier this year I introduced a bill which would exempt the sale of livestock by those involved in educational activities such as FFA and 4–H from federal income taxation. By making young men and women who participate in these activities hire a group of tax accountants and attorneys we are sending the wrong message. Young people who sell livestock at county fairs and the like should be rewarded for taking self initiative and allowed to keep the money they’ve earned to help pay for their education or to re-invest in other animals to raise. My bill would eliminate the current policy of forcing these youngsters to visit the tax man. invest Recognizing The Fayette County 4-H Annual Banquet 7 October 1998    1998 Ron Paul 113:2 Head, Hand, Hearts and Health, these are the “4–H’s” and they are truly indicative of what this organization is all about. One of the primary missions that this organization undertakes is agricultural education. Earlier this year I introduced a bill which would exempt the sale of livestock by those involved in educational activities such as FFA and 4–H from federal income taxation. By making young men and women who participate in these activities hire a group of tax accountants and attorneys we are sending the wrong message. Young people who sell livestock at county fairs and the like should be rewarded for taking self initiative and allowed to keep the money they’ve earned to help pay for their education or to re-invest in other animals to raise. My bill would eliminate the current policy of forcing these youngsters to visit the tax man. invest Monetary Policy 16 October 1998    1998 Ron Paul 120:16 Third, we must abandon the tradition of bailing out bad debtors, foreign and domestic. No International Monetary Fund and related institution funding to prop up bankrupt countries, and no Federal Reserve-orchestrated bailouts such as Long Term Capital Management LP. Liquidation of bad debt and investments must be permitted. invest Supports Impeachment Of President Clinton 19 December 1998    1998 Ron Paul 125:1 Mr. PAUL. Mr. Speaker, I rise in support of all four articles of impeachment against the President. There is neither pleasure nor vindictiveness in this vote and I have found no one else taking this vote lightly. It seems though many of our colleagues are not pleased with the investigative process; some believing it to have been overly aggressive and petty, while others are convinced it has been unnecessarily limited and misdirected. It certainly raises the question of whether or not the special prosecutor rather than the Congress itself should be doing this delicate work of oversight. Strict adherence to the Constitution would reject the notion that Congress undermine the separations of power by delivering this oversight responsibility to the administration. The long delays and sharp criticisms of the special prosecutor could have been prevented if the Congress had not been dependent on the actions of an Attorney General’s appointee. invest Supports Impeachment Of President Clinton 19 December 1998    1998 Ron Paul 125:4 For nearly six years there has been a steady and growing concern about the legal actions of the President. These charges seem almost endless: possible bribery related to Webb Hubble, foreign government influence in the 1996 presidential election, military technology given to China, FBI files, travel office irregularities, and many others. Many Americans are not satisfied that Congress has fully investigated the events surrounding the deaths of Ron Brown and Vince Foster. invest Supports Impeachment Of President Clinton 19 December 1998    1998 Ron Paul 125:5 The media and the administration has concentrated on the sexual nature of the investigation and this has done a lot to distract from everything else. The process has helped to make the President appear to be a victim of government prosecutorial overkill while ignoring the odious significance of the 1,000 FBI files placed for political reasons in the White House. If corruption becomes pervasive in any administration, yet no actual fingerprints of the president are found on indicting documents, there must come a time when the “CEO” becomes responsible for the actions of his subordinates. That is certainly true in business, the military, and in each congressional office. invest Supports Impeachment Of President Clinton 19 December 1998    1998 Ron Paul 125:8 Much has been said about the support the President continues to receive from the American people in spite of his acknowledged misconduct. It does seem that the polls and the recent election indicate the public is not inclined to remove the President from office nor reward the Republicans for their efforts to investigate the Lewinsky affair. It is quite possible as many have suggested that the current status of the economy has a lot to do with this tolerance. invest Freedom And Privacy Restoration Act 6 January 1999    1999 Ron Paul 1:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Freedom and Privacy Restoration Act of 1999. This act forbids the federal government from establishing any national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions between American citizens. This legislation also explicitly repeals those sections of the 1996 Immigration Act that established federal standards for state drivers’ licenses and those sections of the Health Insurance Portability and Accountability Act of 1996 that require the Department of Health and Human Services to establish a uniform standard health identifier. invest Congress Relinquishing The Power To Wage War 2 February 1999    1999 Ron Paul 4:73 When the foreign registered corporation long term capital management was threatened in 1998, that is, the market demanding a logical correction to its own exuberance with its massive $1 trillion speculative investment in the derivatives market, Greenspan and company quickly came to its rescue with an even greater acceleration of credit expansion. invest No Billions In Appropriations Can Make Our Foreign Policy Effective 13 May 1999    1999 Ron Paul 46:2 Today I do not wish to investigate yet again the details of this history but rather to examine, at a deeper level, why this sort of policy is doomed to fail. invest 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. invest 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. invest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:12 Only changing the nature of government will eliminate the motive for so many to invest so much in the political process, but we should not make a bad situation worse by passing more laws. We should demand disclosure so voters can decide if their representatives in Congress are duly influenced or unduly influenced, but the best thing we could do is to encourage competition, which will be made worse if the reformers have their way. invest 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. invest 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. invest Campaign Finance Reform 14 June 1999    1999 Ron Paul 58:28 True reform probably is not possible without changing the role of government, which now exists to regulate, tax, subsidize, and show preferential treatment. Only changing the nature of government will eliminate the motive for so many to invest so much in the political process. But we should not make a bad situation worse by passing more bad laws. invest Consequences Of Gun Control 16 June 1999    1999 Ron Paul 62:12 With the 20,000 gun laws already on the books, we advise Congress, before enacting yet more new laws, to investigate whether many of the existing laws may have contributed to the problems we currently face. The new legislation is ill-advised. invest Export-Import Bank, Overseas Private Investment Corp. and Trade And Development Agency 2 August 1999    1999 Ron Paul 86:1 Mr. PAUL. Mr. Chairman, I offer an amendment. The CHAIRMAN. The Clerk will designate the amendment. The text of the amendment is as follows: Amendment offered by Mr. PAUL: Page 116, after line 5, insert the following: LIMITATION ON FUNDS FOR EXPORT-IMPORT BANK OF THE UNITED STATES, OVERSEAS PRIVATE INVESTMENT CORPORATION, AND THE TRADE AND DEVELOPMENT AGENCY SEC. . None of the funds made available pursuant to this Act for the Export-Import Bank of the United States, the Overseas Private Investment Corporation, or the Trade and Development Agency, may be used to enter into any new obligation, guarantee, or agreement on or after the date of the enactment of this Act. The CHAIRMAN. Pursuant to the order of the House of Thursday, July 29, 1999, the gentleman from Texas (Mr. PAUL) and the gentleman from Alabama (Mr. CALLAHAN) each will control 5 minutes. The gentleman from Texas (Mr. PAUL) is recognized for 5 minutes. (Mr. PAUL asked and was given permission to revise and extend his remarks.) invest 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. invest 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. invest Campaign Finance Reform 14 September 1999    1999 Ron Paul 97:15 True reform is not possible without changing the role of government, which now exists to regulate, tax, subsidize, and show preferential treatment. Only changing the nature of government will eliminate the motive for so many to invest so much in the political process. But we should not make a bad situation worse by passing more bad laws. invest 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. invest Good Time For Congress To Reassess Antitrust Laws 8 November 1999    1999 Ron Paul 114:15 The Bill Gateses of the world can only invest their money in job-creating projects or donate it to help the needy. The entrepreneurial giants are not a threat to stability or prosperity. Government bureaucrats and Federal judges are. But strict enforcement of all the ill-inspired antitrust laws does not serve the consumer, nor the cause of liberty. invest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:65 No wonder lobbyists are willing to spend $125 million per month influencing Congress; it is a good investment. No amount of campaign finance reform or regulation of lobbyists can deal with this problem. The problem lies in the now accepted role for our Government. Government has too much control over people and the market, making the temptation and incentive to influence government irresistible and, to a degree, necessary. invest 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. invest A Republic, If You Can Keep It 31 January 2000    2000 Ron Paul 2:124 The national police state mentality has essentially taken over crime investigation throughout the country. Our local sheriffs are intimidated and frequently overruled by the national police. Anything worse than writing traffic tickets prompts swarms of Federal agents to the scene. We frequently see the FBI, the DEA, the CIA, the BATF, Fish and Wildlife, the IRS, Federal marshals and even the Army involved in local law enforcement. They do not come to assist, but to take over. invest A Republic, If You Can Keep It – Part 2 2 February 2000    2000 Ron Paul 5:60 Unfortunately, the only winners too often are the lawyers hyping the litigation. Few Americans are convinced anymore that productive effort is the most important factor in economic success and personal satisfaction. One did not get rich in the 1990s investing in companies that had significant or modest earnings. The most successful investors bought companies that had no earnings and the gambling paid off big. This attitude cannot create perpetual wealth and must some day end. invest 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. invest WHAT IS FREE TRADE? May 2, 2000    2000 Ron Paul 29:16 If our American companies and our American workers have to compete, the last thing they should ever be required to do is pay some of their tax money to the Government, to send subsidies to their competitors; and that is what is happening. They are forced to subsidize their competitors on foreign aid. They support their competitors overseas at the World Bank. They subsidize their competitors in the Export/Import Bank, the Overseas Private Investment Corporation. invest 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. invest The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:1 * Fiat money, that is, money created out of thin air, causes numerous problems, internationally as well as domestic. It causes domestic price inflation, economic downturns, unemployment, excessive debt, (corporate, personal and government) mal-investment, and over capacity — all very serious and poorly understood by our officials. But fluctuating values of various paper currencies cause all kinds of disruptions in international trade and finance as well. invest The Dollar And Our Current Account Deficit May 16, 2000    2000 Ron Paul 37:8 * Japan’s lethargy, the Asian crisis, the Mexican financial crisis, Europe’s weakness, the uncertainty surrounding the EURO, the demise of the Soviet system, and the ineptness of the Russian bailout, all contributed to the continued strength in the dollar and prolongation of our current account deficit. This current account deficit, which prompts foreigners to loan back dollars to us and to invest in our stock and bond markets, has contributed significantly to the financial bubble. The perception that the United States is the economic and military powerhouse of the world, helps perpetuate an illusion that the dollar is invincible and has encouraged our inflationary policies. invest Statement of Ron Paul on the Freedom and Privacy Restoration Act (HR 220) May 18, 2000    2000 Ron Paul 38:9 The Freedom and Privacy Restoration Act also contains a blanket prohibition on the use of identifiers to “investigate, monitor, oversee, or otherwise regulate” American citizens. Mr. Chairman, prohibiting the Federal Government from using standard identifiers will ensure that American liberty is protected from the “surveillance state.” Allowing the federal government to use standard identifiers to oversee private transactions present tremendous potential for abuse of civil liberties by unscrupulous government officials. invest WITHDRAWING APPROVAL OF UNITED STATES FROM AGREEMENT ESTABLISHING WORLD TRADE ORGANIZATION June 21, 2000    2000 Ron Paul 45:27 Quite frankly, I have a suspicion that when the Chinese currency fails, that will be one of the things that we will do. China will be our trading partner. They are in the family of countries, so therefore we will bail out their currency. That is what I suspect will happen. Why else would the Chinese put up with the nonsense that we pass out about what we are going to do, investigate them and tell them how to write their laws? They have no intention of doing that. I think they are anxious to be with WTO because they may well see a need for their currency to be supported by our currency, which would be a tax on the American people. invest World Trade Organization 21 June 2000    2000 Ron Paul 55:9 Quite frankly, I have a suspicion that when the Chinese currency fails, that will be one of the things that we will do. China will be our trading partner. They are in the family of countries, so therefore we will bail out their currency. That is what I suspect will happen. Why else would the Chinese put up with the nonsense that we pass out about what we are going to do, investigate them and tell them how to write their laws? They have no intention of doing that. I think they are anxious to be with WTO because they may well see a need for their currency to be supported by our currency, which would be a tax on the American people. invest TRIBUTE TO REVEREND MONSIGNOR CLYDE HOLTMAN June 26, 2000    2000 Ron Paul 58:3 * On May 30, 1985, Msgr. Holtman was invested as a Prelate of Honor in the Church by Pope John Paul II. invest INTERNET GAMBLING PROHIBITION ACT OF 2000 July 19, 2000    2000 Ron Paul 66:3 The bill calls for Federal law enforcement agencies, such as the Federal Bureau of Investigation, to expand surveillance in order to enforce the proposed law. In order to enforce this bill (should it become law), law enforcement would have to obtain access to an individual’s computer to know if one is gambling online. Perhaps Internet Service Providers can be enlisted as law enforcement agents in the same way that bank tellers are forced to spy on their customers under the Bank Secrecy Act? It was this sort of intrusion that caused such a popular backlash against the ‘Know Your Customer’ proposal. invest FSC Repeal And Extra-Territorial Income Exclusion Act Of 2000 September 12, 2000    2000 Ron Paul 73:22 * The one thing for certain is this process is not free trade; this is international managed trade by an international governmental body. The odds of coming up with fair trade or free trade under WTO are zero. Unfortunately, even in the language most commonly used in the Congress in promoting ‘free trade’ it usually involves not only international government managed trade but subsidies as well, such as those obtained through the Import/Export Bank and the Overseas Private Investment Corporation and various other methods such as the Foreign Aid and our military budget. invest WARNING ABOUT FOREIGN POLICY AND MONETARY POLICY October 12, 2000    2000 Ron Paul 86:6 Today, the American people have a negative savings rate, which means that we get our so-called capital from a printing press, because there are no savings and no funds to invest. The Federal Reserve creates these funds to be invested. On a short-term, this seems to benefit everyone. invest SOCIAL SECURITY NUMBER CONFIDENTIALITY ACT OF 1999 17 October 2000    2000 Ron Paul 87:6 * In order to stop the disturbing trend toward the use of the Social Security number as a uniform ID I have introduced the Freedom and Privacy Restoration Act (HR 220), which forbids the use of the Social Security number for purposes not related to Social Security. The Freedom and Privacy Restoration Act also contains a blanket prohibition on the use of identifiers to ‘investigate, monitor, oversee, or otherwise regulate’ American citizens. Mr. Speaker, prohibiting the Federal Government from using standard identifiers will help protect Americans from both private and public sector criminals. invest THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:8 The constant surveillance is accomplished, as is most privacy invasion these days, by a special banking computer software program called ‘America’s Software’ which allows every transaction in any account to be watched constantly. It produces a daily record for bank officials, who now have certain obligations imposed by US law that require the reporting of ‘suspicious activities’ to federal agents. Transfers of large amounts of cash or other unusual account activity rings alarm bells and results in an investigation not revealed to the ‘suspect’ banking client under penalty of law. invest THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:11 Now, it’s quite obvious that financial activities in which a person engages when wealth is moved offshore for asset protection, for broader investment potential, for any number of legitimate reasons, for possible tax savings, any of these moves, are innocent in themselves. Former Secretary of the US Treasury, Robert Rubin, admitted in congressional testimony last year, it is the intention behind these innocent financial moves that government agents want to police for possible criminal investigation and prosecution. invest THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:19 At the Miami conference, scores of bank officials were instructed how to question clients, watch account activity, and report any ‘suspicious activity’. Suspicious activity reports (SARs) are filed by the tens of thousands every month, produce voluminous computer records, encourage potential criminal investigations, allow prosecutors to bully citizens, but in the end very few SARs put criminals in jail. What this success process has produced is the mushrooming of federal prosecutorial staffs, US attorneys budgets, the power and costs of the US Department of Justice and the welfare of the bureaucrats and lawyers who feast at the taxpayers’ trough. invest THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:23 In truth, there are very legitimate financial reasons for an American citizen to ‘go offshore’. These include avoiding exposure to costly domestic litigation and excessive court damage judgements and jury awards, protection of assets, unreasonable SEC restrictions on foreign investments, the availability of more attractive and private offshore bank accounts, life insurance policies and annuities, avoidance of probate and reduction of estate taxes. invest THREATS TO FINANCIAL FREEDOM October 19, 2000    2000 Ron Paul 88:34 This wrong headed approach flies in the face of every development that is producing the new prosperity: the Internet, e-commerce, globalization, cross border investment worldwide. For that reason alone, this effort will fail. Just as the legendary King Canute could not hold back the ocean tides, the rich nations will be swept away in their effort to impose their will on the world. invest ECONOMIC PROBLEMS AHEAD November 13, 2000    2000 Ron Paul 93:2 * Confidence is an important factor in the way markets work, and certainly the confusion in the Presidential election does not convey confidence to investors and to the rest of the world. invest ECONOMIC PROBLEMS AHEAD November 13, 2000    2000 Ron Paul 93:7 * Government statistics continue to tell us that price inflation is not a problem, and when an inflation statistic comes out it does not like, it drops out food and energy and claims the number is totally benign. Ask any housewife, and they will tell you that the cost of living is going up steadily and much more rapidly than the government will admit. We in the Congress should be prepared for lower revenues in the future since the revenues received in the last couple of years were artificially created by a stock market that had skyrocketed due to the credit expansion by the Federal Reserve. These capital gains tax revenues will soon disappear. The savings rates of the American people are now negative. Without savings, true capital investment cannot be maintained. Creation of credit out of thin air by the Fed was the original problem, so it surely can’t be the solution. invest FSC Repeal and Extraterritorial Income Exclusion Act of 2000 14 November 2000    2000 Ron Paul 94:19 The one group of Americans that seem to get little attention are those importers whose businesses depend on imports and thus get hit by huge tariffs. When 100 to 200 percent tariffs are placed on an imported product, this virtually puts these corporations out of business. The one thing for certain is this process is not free trade; this is international managed trade by an international governmental body. The odds of coming up with fair trade or free trade under WTO are zero. Unfortunately, even in the language most commonly used in the Congress in promoting “free trade” it usually involves not only international government managed trade but subsidies as well, such as those obtained through the Import/Export Bank and the Overseas Private Investment Corporation and various other methods such as the Foreign Aid and our military budget. invest OUR FOOLISH WAR IN THE MIDDLE EAST November 15, 2000    2000 Ron Paul 95:7 * The Cole disaster was needless and preventable. The loss of this vessel and the senseless deaths of 17 Americans were a consequence of a policy that has led to a lack of military readiness for our country, while increasing the danger to all Americans and in particular our servicemen in that region. It’s positively amazing that with a military budget of $300 billion we do not have the ability to protect ourselves against a rubber raft, which destroyed a $1 billion vessel. Our sentries on duty had rifles without bullets and were prohibited from firing on any enemy targets. This policy is absurd if not insane. It is obvious that our navy lacks the military intelligence to warn and prevent such an event. It is incapable even of investigating the incident, since the FBI was required to try to figure out what happened. This further intrusion has only served to increase the resentment of the people of Yemen toward all Americans. invest 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. invest INTRODUCTION OF THE IDENTITY THEFT PREVENTION ACT — HON. RON PAUL Wednesday, January 3, 2001    2001 Ron Paul 1:5 * This act also forbids the federal government from creating national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions between American citizens, as well as repealing those sections of the Health Insurance Portability and Accountability Act of 1996 that require the Department of Health and Human Services to establish a uniform standard health identifier. By putting an end to government-mandated uniform IDs, the Identity Theft Prevention Act will prevent millions of Americans from having their liberty, property and privacy violated by private-and-public sector criminals. invest 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. invest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:69 The extra credit in the 1990s has found its way especially into the housing market like never before. GSEs, in particular Freddie Mac and Fannie Mae, have gobbled up huge sums to finance a booming housing market. GSE securities enjoy implicit government guarantees, which have allowed for a generous discount on most housing loans. They have also been the vehicles used by consumers to refinance and borrow against their home equity to use these funds for other purposes, such as investing in the stock market. This has further undermined savings by using the equity that builds with price inflation that homeowners enjoy when money is debased. In addition, the Federal Reserve now buys and holds GSE securities as collateral in their monetary operations. These securities are then literally used as collateral for printing Federal Reserve notes; this is a dangerous precedent. invest CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC — February 07, 2001    2001 Ron Paul 7:105 Taiwan and China are now trading and investing in each other’s country. Travel restrictions have been recently liberalized. It’s time for us to let the two of them settle their border dispute. invest POTENTIAL FOR WAR February 08, 2001    2001 Ron Paul 10:37 World War II has been over for 55 years. It is time we look at Korea and ask why we have to broker, with the use of American dollars and American soldiers, the final settlement between North and South Korea. Taiwan and China are now trading and investing in each other’s country. Travel restrictions have been recently liberalized. It is time for us to let the two of them settle their border dispute. invest IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:4 * This act also forbids the federal government from creating national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions between American citizens, as well as repealing those sections of the Health Insurance Portability and Accountability Act of 1996 that require the Department of Health and Human Services to establish a uniform standard health identifier. By putting an end to government-mandated uniform IDs, the Identity Theft Prevention Act will prevent millions of Americans from having their liberty, property and privacy violated by private-and-public sector criminals. invest IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:7 High-yield paper is out of favor with Wall Street as an economic slowdown raises concerns about credit quality. One in five issuers have paper trading at distressed levels. Consumer lenders are under particular pressure due to worries about a looming recession. But investors in companies that make consumer loans should worry about more than a slowing economy. invest IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:8 Consumer lenders write off an average of 6% of loans each year. That’s a bad enough record, but investors ought to realize that the industry’s own sloppy screening practices contribute significantly to the losses. invest IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:10 One of my in-laws — I will call her Jean to protect what remains of her privacy — was the victim of identity theft in 1999. Jean is a teacher who lives in Westchester County, New York, and drives a Volvo. She and her husband have perfect credit. About a year ago, Jean called in a panic, saying that her bank had frozen the family checking account because someone had a judgment against her. Being the banker in the family, I agreed to act for Jean. What I discovered during more than a year of investigation was a personal outrage and an investor’s nightmare. invest IDENTITY THEFT — HON. RON PAUL Tuesday, February 13, 2001    2001 Ron Paul 11:11 Every investor who buys securities back by consumer loans or the equity of companies that are significantly involved in the consumer-loan business should think twice before investing in such paper. invest Questions for Secretary of State Colin Powell before the House Committee on International Relations March 8, 2001    2001 Ron Paul 17:7 6. If investors of a foreign nation had a stake in oil production in the Gulf of Mexico and their country was dependent on oil imports for subsistence, is that country justified in militarily dominating the Gulf and use of U.S. soil for basing operations? My guess is Americans would be furious even if done with our government official’s approval. Yet we expect the Arab world — a world quite different from ours — to accept our presence and domination. Is it not possible for our policy in the region to show more “humility” rather than pursue a policy that incites Islamic fundamentalists against us leading to what they see as acts of self defense and we see as acts of terrorism? invest The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:13 But the excess credit created by the Fed found its way into the stock market- especially the NASDAQ, and was ignored. This set the stage for the stock market collapse, now ongoing. Likewise ignored has been the excess capacity, mal-investment, and debt that permeates the world economy. invest The Beginning of the End of Fiat Money March 13, 2001    2001 Ron Paul 18:16 Sure we have enjoyed cheap imports and they have raised our standard of living and our foreign debt. We have on the short run benefited from our trade and current account deficits since the world has been only too eager to gobble up our inflated dollars and loan them back to us. But soon the countries of the world will decide that enough is enough and they will recognize the bad deal it is for them to continue to accept our dollars. The mal-investment, already becoming apparent, will prompt even more radical adjustments in all markets. invest 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. invest 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. invest Free Trade April 24, 2001    2001 Ron Paul 24:14 Economists have known for centuries that free trade can be promoted without free-trade agreements. A country’s inhabitants would obtain many of the advantages of free trade if only their own government would stop imposing restrictions on imports. Behind the veil of financial transactions, products are ultimately exchanged against products, so that the more imports that come into a country, the more will foreign demand grow for its exports. Or else, foreign exporters will have to invest in the country, thereby creating a trade deficit; nothing wrong with that either. invest A New China Policy April 25, 2001    2001 Ron Paul 25:21 Bellicose and jingoistic demands for retaliation and retribution are dangerous, and indeed are a greater threat to our national security than relying on satellite technology for gathering the information that we might need. A policy of peaceful, non-subsidized trade with China would go a long way to promoting friendly and secure relations with the Chinese people. By not building up the military arsenal of the Taiwanese, Taiwan will be forced to pursue their trade policies and investments with China, leading to the day where the conflict between these two powers can be resolved peacefully. invest 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. invest Protecting Privacy and Preventing Misuse of Social Security Numbers May 22, 2001    2001 Ron Paul 37:4 This act also forbids the federal government from creating national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions between American citizens, as well as repealing those sections of the Health Insurance Portability and Accountability Act of 1996 that require the Department of Health and Human Services to establish a uniform standard health identifier. By putting an end to government-mandated uniform IDs, the Identity Theft Prevention Act will prevent millions of Americans from having their liberty, property and privacy violated by private-and-public sector criminals. invest Sudan Peace Act 13 June 2001    2001 Ron Paul 40:12 The bill does not stop there, however, in intervening in the civil war in Sudan. It appears that this Congress has found a new mission for the Securities and Exchange Commission who are now tasked with investigating “the nature and extent of . . . commercial activity in Sudan” as it relates to “any violations of religious freedom and human rights in Sudan.” It seems we have finally found a way to spend those excessive fees the SEC has been collecting from mutual fund investors despite the fact we cannot seem to bring to the floor a bill to actually reduce those fees which have been collected in multiples above what is necessary to fund this agencies’ previous (and again unconstitutional) mission. invest “Postal Service Has Its Eye On You” 27 June 2001    2001 Ron Paul 47:1 Mr. PAUL. Mr. Speaker, I am pleased to take this opportunity to draw my colleagues’ attention to the attached article “Postal Service Has Its Eye On You” by John Berlau of Insight magazine, which outlines the latest example of government spying on innocent citizens. Mr. Berlau deals with the Post Office’s “Under the Eagle’s Eye” program which the Post Office implemented to fulfill the requirements of the Nixon-era Bank Secrecy Act. Under this program, postal employees must report purchases of money orders of over $3,000 to federal law enforcement officials. The program also requires postal clerks to report any “suspicious behavior” by someone purchasing a money order. Mr. Speaker, the guidelines for reporting “suspicious behavior” are so broad that anyone whose actions appear to a postal employee to be the slightest bit out of the ordinary could become the subject of a “suspicious activity report,” and a federal investigation! invest Export-Import Bank Amendment 24 July 2001    2001 Ron Paul 62:7 There is a lot of mal-investment in the economy, misappropriation of money and investments that generates overcapacity, which is a consequence of monetary policy. It is a serious problem; and we are today facing the consequence, because we are now moving into a rather severe recession. But at the same time, export financing compounds that problem. It adds on to it because it is an allocation of credit. invest Iran/Libya Sanctions Act 24 July 2001    2001 Ron Paul 64:3 Furthermore, the sanctions are being extended from a period of five years to ten years. If the original five year sanction period has not been effective in allaying the fears about these governments why do we believe an extra five years will be effective? In fact, few companies have actually been sanctioned under this Act, and to the best of my knowledge no oil companies have been so sanctioned. Still, the sanctions in the Act are not against these nations but are actually directed at “persons” engaged in certain business and investments in these countries. There are already Executive Orders making it illegal for US companies to undertake these activities in these sanctioned countries, so this Act applies to companies in other countries, mostly our allied countries, almost all of whom oppose and resent this legislation and have threatened to take the kinds of retaliatory action that could lead to an all out trade war. In fact, the former National Security Advisor Brent Scrowcroft recently pointed out how these sanctions have had a significant adverse impact upon our Turkish allies. invest Iran/Libya Sanctions Act 24 July 2001    2001 Ron Paul 64:7 There has been a real concern in our country regarding the price of gasoline. Since these sanctions are directly aimed at preventing the development of petroleum resources in these countries, this bill will DIRECTLY RESULT IN AMERICANS HAVING TO PAY A HIGHER PRICE AT THE GASOLINE PUMP. These sanctions HURT AMERICANS. British Petroleum and others have refused to provide significant investment for petroleum extraction in Iran because of the uncertainty this legislation helps to produce. The tiny nation of Qatar has as much petroleum related investment as does Iran since this legislation went into effect. Again, this reduces supply and raises prices at the gas pump. invest Crazy For Kazakhstan 1 August 2001    2001 Ron Paul 69:10 In the center of this conflict and instability Kasakhstan has begun to prosper by working to build a modern economy, developing its vast natural resources and providing a base of stability in a very uncertain part of the world. With the discovery of the massive Kashagan oil field in the Kazak portion of the Caspian Sea, Kazakhstan is poised to become a major supplier of petroleum to the Western World and a competitor to Organization of Petroleum Exporting Countries (OPEC). It is critical that we continue to facilitate western companies’ investment in Kazakhstan and the establishment of secure, east-west pipeline routes for Kazak oil. This is the only way for Kazakhstan to loosen its dependence on Russia for transit rights for its oil and gas and secure additional, much needed, oil for the world market. invest Patients’ Bill Of Rights 2 August 2001    2001 Ron Paul 74:13 Of course, the real power over health care will lie with the unelected bureaucrats who will implement and interpret these broad and vague mandates. Federal bureaucrats already have too much power over health care. Today, physicians struggle with over 132,000 pages of Medicare regulations. To put that in perspective, I ask my colleagues to consider that the IRS code is “mere” 17,000 pages. Many physicians pay attorneys as much as $7,000 for a compliance plan to guard against mistakes in filing government forms, a wise investment considering even an innocent mistake can result in fines of up to $25,000. In case doctors are not terrorized enough by the federal bureaucracy, HCFA has requested authority to carry guns on their audits! invest 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. invest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:11 By preventing the liquidation of bad debt and the elimination of mal-investment and overcapacity, the Federal Reserve’s actions have kept the financial bubble inflated. Of course it’s an easy choice on the short run. Who would deliberately allow the market tendency to deflate back to stability? That would be politically unacceptable. invest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:19 Current concerns are expressed by worries about meeting the criteria for a government-declared recession and whether a weaker dollar would help. The first is merely academic, because if you are one of the many thousands who have been laid off, you’re already in a recession. The second doesn’t make a lot of sense unless one asks “compared to what?” The dollar has been on a steady course of devaluation for thirty years, against most major currencies and against gold. Its purchasing power in general has been steadily eroded. The fact that the dollar has been strong against third-world currencies and against most major currencies for the past decade doesn’t cancel out the fact that the Federal Reserve has systematically eroded the dollar’s value by steadily expanding the money supply. Recent reports of a weakening dollar on international exchange markets have investment implications but do not reflect a new policy designed to weaken the dollar. This is merely the market adjusting to thirty years of systematic monetary inflation. invest 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. invest The US Dollar and the World Economy September 6, 2001    2001 Ron Paul 75:25 The special nature of the dollar, as the reserve currency of the world, has permitted the bubble to last longer and to be especially beneficial to American consumers. But in the meantime, understandable market and political forces have steadily eroded our industrial base, while our service sector has thrived. Consumers enjoyed having even more funds to spend as the dollars left manufacturing. In a little over a year, one million industrial production jobs were lost while saving rates sank to zero and capital investments plummeted. Foreigners continue to grab our dollars, permitting us to raise our standard of living, but unfortunately it’s built on endless printing of fiat money and self -limiting personal debt. invest 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. invest 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. invest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:2 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.” invest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:6 A boom is a phase of accelerated prosperity. For ignition, it requires easy money. For inspiration, it draws on new technology. A decade ago, farsighted investors saw a glorious future for the personal computer in the context of the more peaceful world after the cold war. Stock prices began to rise — and rose and rose. The cost of financing new investment fell correspondingly, until by about the middle of the decade the money became too cheap to pass up. Business investment soared, employment rose, reported profits climbed. invest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:7 Booms begin in reality and rise to fantasy. Stock investors seemed to forget that more capital spending means more competition, not less; that more competition implies lower profit margins, not higher ones; and that lower profit margins do not point to rising stock prices. It seemed to slip their minds that high-technology companies work ceaselessly to make their own products obsolete, not just those of their competitors — that they are inherently self-destructive. invest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:8 At the 2000 peak of the titanic bull market, as shares in companies with no visible means of support commanded high prices, the value of all stocks as a percentage of the American gross domestic product reached 183 percent, more than twice the level before the crash in 1929. Were investors out of their minds? Wall Street analysts were happy to reassure them on this point: No, they were the privileged financiers of the new economy. Digital communications were like the wheel or gunpowder or the internal combustion engine, only better. The Internet would revolutionize the conveyance of human thought. To quibble about the valuation of companies as potentially transforming as any listed on the Nasdaq stock market was seen almost as an act of ingratitude. The same went for questioning the integrity of the companies’ reports of lush profits. invest Sometimes The Economy Needs A Setback 10 September 2001    2001 Ron Paul 77:10 In 1932 an eminent German analyst of business cycles, Wilhelm Ro¨pke, looked back from amid the debris of the Depression. Citing a series of inventions and innovations — railroads, steelmaking, electricity, chemical production, the automobile — he wrote: “The jumpy increases in investment characterizing every boom are usually connected with some technological advance. * * * Our economic system reacts to the stimulus. * * * with the prompt and complete mobilization of all its inner forces in order to carry it out everywhere in the shortest possible time. But this acceleration and concentration has evidently to be bought at the expense of a disturbance of equilibrium which is slowly overcome in time of depression.” invest 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. invest 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. invest Safe Act 9 October 2001    2001 Ron Paul 83:4 Perhaps the most significant change made to procedures is codifying that probable cause is the maximum standard for an investigation of terrorism. According to information received by my office some federal agencies actually have to meet a higher standard than the constitutional standard of probable cause in order to launch an investigation of suspected terrorists. It is absurd to make the FBI meet a higher standard to initiate an investigation of a terrorist than to initiate an investigation of an insider trader! invest Statement on Counter-Terrorism Proposals and Civil Liberties October 12, 2001    2001 Ron Paul 87:5 Many of the most constitutionally offensive measures in this bill are not limited to terrorist offenses, but apply to any criminal activity. In fact, some of the new police powers granted the government could be applied even to those engaging in peaceful protest against government policies. The bill as written defines terrorism as acts intended “to influence the policy of a government by intimidation or coercion.” Under this broad definition, should a scuffle occur at an otherwise peaceful pro-life demonstration the sponsoring organization may become the target of a federal investigation for terrorism. We have seen abuses of law enforcement authority in the past to harass individuals or organizations with unpopular political views. I hope my colleagues consider that they may be handing a future administration tools to investigate pro-life or gun rights organizations on the grounds that fringe members of their movements advocate violence. It is an unfortunate reality that almost every political movement today, from gun rights to environmentalism, has a violent fringe. invest Statement on Counter-Terrorism Proposals and Civil Liberties October 12, 2001    2001 Ron Paul 87:10 This legislation is also objectionable because it adopts a lower standard than probable cause for receiving e-mails and Internet communications. While it is claimed that this is the same standard used to discover numbers dialed by a phone, it is also true that even the headings on e-mails or the names of web sites one visits can reveal greater amounts of personal information than can a mere telephone number. I wonder how my colleagues would feel if all of their e-mail headings and the names of the web sites they visited were available to law enforcement upon a showing of mere “relevance.” I also doubt the relevance of this provision to terrorist investigation, as it seems unlikely that terrorists would rely on e-mail or the Internet to communicate among themselves. invest Statement on Counter-Terrorism Proposals and Civil Liberties October 12, 2001    2001 Ron Paul 87:14 The reason this provision did not work in the case of the airlines is because the airlines followed federal regulations and assumed they were sufficient. This is often the case when the government assumes new powers or imposes new regulations. Therefore, in the future, once the horror of the events of September 11 fade from memory, people will relax their guard, figuring that the federal government is using its new powers to protect them and thus they do not need to invest their own time or money in security measures. invest 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. invest Statement on Terrorism Reinsurance Legislation November 30, 2001    2001 Ron Paul 99:4 HR 3210 compounds the danger to taxpayers because of what economists call the “moral hazard” problem. A moral hazard is created when individuals have the costs incurred from a risky action subsidized by a third party. In such a case individuals may engage in unnecessary risks or fail to take steps to minimize their risks. After all, if a third party will bear the costs of negative consequences of risky behavior, why should individuals invest their resources in avoiding or minimizing risk? invest Let Privateers Troll For Bin Laden 4 December 2001    2001 Ron Paul 100:12 If the seizure was, just, the ship and cargo were sold at auction, with the bulk of the proceeds going to the privateer’s owners and crew. The crews were volunteers who shared in the profits, and the investors viewed the venture as remunerative — albeit risky, invest The Case For Defending America 24 January 2002    2002 Ron Paul 1:34 Our sterile approach to the bombing with minimal loss of American life is to be commended, but it may generate outrage toward us by this lopsided killing of persons totally unaware of events of September 11. Our President wisely has not been anxious to send in large numbers of occupying forces into Afghanistan. This also guarantees chaos among the warring tribal factions. The odds of a stable Afghan government evolving out of this mess are remote. The odds of our investing large sums of money to buy support for years to come are great. invest Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:2 I fear that many of my well-meaning colleagues are reacting to media reports portraying Enron as a reckless company whose problems stemmed from a lack of federal oversight. It is a mistake for Congress to view the Enron collapse as a justification for more government regulation. Publicly held corporations already comply with massive amounts of SEC regulations, including the filing of quarterly reports that disclose minute details of assets and liabilities. If these disclosure rules failed to protect Enron investors, will more red tape really solve anything? The real problem with SEC rules is that they give investors a false sense of security, a sense that the government is protecting them from dangerous investments. invest Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:3 In truth, investing carries risk, and it is not the role of the federal government to bail out every investor who loses money. In a true free market, investors are responsible for their own decisions, good or bad. This responsibility leads them to vigorously analyze companies before they invest, using independent financial analysts. In our heavily regulated economy, however, investors and analysts equate SEC compliance with reputability. The more we look to the government to protect us from investment mistakes, the less competition there is for truly independent evaluations of investment risk. invest 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. invest Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:6 Therefore, if Congress wishes to avoid future bankruptcies like Enron, the best thing it can do is repeal existing regulations which give investors a false sense of security and reform the country’s monetary policy to end the Fed-generated boom-and-bust cycle. Congress should also repeal those programs which provide taxpayer subsidies to large, politically-powerful corporations such as Enron. invest 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. invest Statement before the House Capital Markets Subcommittee Monday, February 4, 2002    2002 Ron Paul 3:10 This does not mean Enron is to be excused. There seems to be little question that executives at Enron deceived employees and investors, and any fraudulent conduct should of course be fully prosecuted. However, Mr. Chairman, I hope we will not allow criminal fraud in one company, which constitutionally is a matter for state law, to justify the imposition of burdensome new accounting and stock regulations. Instead, we should focus on repealing those monetary and fiscal policies that distort the market and allow the politically powerful to enrich themselves at the expense of the American taxpayer. invest 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. invest 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. invest Stimulating The Economy February 7, 2002    2002 Ron Paul 5:47 Wealth- the product of labor, investment and savings- can never be substituted by government spending or by a central bank that creates new money out of thin air. Governments can only give things they first take away from someone else. Printing money only diminishes the value of each monetary unit. Neither can create wealth; both can destroy it. invest 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. invest 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. invest Introduction of the Monetary Freedom and Accountability Act February 13, 2002    2002 Ron Paul 8:3 By artificially deflating the price of gold, federal intervention in the gold market can reduce the values of private gold holdings, adversely affecting millions of investors. These investors rely on their gold holdings to protect them from the effects of our misguided fiat currency system. Federal dealings in gold can also adversely affect those countries with large gold mines, many of which are currently ravished by extreme poverty. Mr. Speaker, restoring a vibrant gold market could do more than any foreign aid program to restore economic growth to those areas. invest Introduction of the Monetary Freedom and Accountability Act February 13, 2002    2002 Ron Paul 8:4 While the Treasury denies it is dealing in gold, the Gold Anti-Trust Action Committee (GATA) has uncovered evidence suggesting that the Federal Reserve and the Treasury, operating through the Exchange-Stabilization Fund and in cooperation with major banks and the International Monetary Fund, have been interfering in the gold market with the goal of lowering the price of gold. The purpose of this policy has been to disguise the true effects of the monetary bubble responsible for the artificial prosperity of the 1990s, and to protect the politically-powerful banks that are heavy invested in gold derivatives. GATA believes federal actions to drive down the price of gold help protect the profits of these banks at the expense of investors, consumers, and taxpayers around the world. invest Introduction of the Monetary Freedom and Accountability Act February 13, 2002    2002 Ron Paul 8:6 Mr. Speaker, in order to allow my colleagues to learn more about this issue, I am enclosing “All that Glitters is Not Gold” by Kelly Patricia O’Meara, an investigative reporter from Insight magazine. This article explains in detail GATA’s allegations of federal involvement in the gold market. invest Introduction of the Monetary Freedom and Accountability Act February 13, 2002    2002 Ron Paul 8:13 It is no secret that Morgan Chase was one of Enron’s biggest lenders, reportedly losing at least $600 million and, perhaps, billions. The banking giant’s stock has gone south, and management has been called before its shareholders to explain substantial investments in highly speculative derivatives C hidden speculation of the sort that overheated and blew up on Enron. invest 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. invest Introduction of the Monetary Freedom and Accountability Act February 13, 2002    2002 Ron Paul 8:20 In December 2000, attorney Reginald H. Howe, a private investor and proprietor of the Website www.goldensextant.com, which reports on gold, filed a lawsuit in the U.S. District Court in Boston. Named as defendants were J.P. Morgan & Co., Chase Manhattan Corp., Citigroup Inc., Goldman Sachs Group Inc., Deutsche Bank, Lawrence Summers (former secretary of the Treasury), William McDonough (president of the Federal Reserve Bank of New York), Alan Greenspan (chairman of the Board of Governors of the Federal Reserve System), and the BIS. invest 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? invest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:3 CARTA establishes a new bureaucracy with enhanced oversight authority of accounting firms, as well as the authority to impose new mandates on these firms. CARTA also imposes new regulations regarding investing in stocks and enhances the power of the Securities and Exchange Commission (SEC). However, Mr. Speaker, companies are already required by Federal law to comply with numerous mandates, including obtaining audited financial statements from certified accountants. These mandates have enriched accounting firms and may have given them market power beyond what they could obtain in a free market. These laws also give corrupt firms an opportunity to attempt to use political power to gain special treatment for Federal lawmakers and regulators at the expense of their competitors and even, as alleged in the Enron case, their employees and investors. invest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:5 Even if CARTA transformed all (or at least all accountants) into angels, it could still harm individual investors. First, new regulations inevitably raise the overhead costs of investing. This will affect the entire economy as it lessens the capital available to businesses, thus leading to lower rates of economic growth and job creation. Meanwhile, individual investors will have less money for their retirement, their children’s education, or to make a down payment on a new home. invest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:6 Government regulations also harm investors by inducing a sense of complacency. Investors are much less likely to invest prudently and ask tough questions of the companies they are investing in when they believe government regulations are protecting their investments. However, as mentioned above, government regulations are unable to prevent all fraudulent activity, much less prevent all instances of imprudent actions. In fact, as also pointed out above, complex regulations create opportunities for illicit actions by both the regulator and the regulated, Mr. Chairman, publicly held corporations already comply with massive amounts of SEC regulations, including the filing of quarterly reports that disclose minute details of assets and liabilities. If these disclosures rules failed to protect Enron investors, will more red tape really solve anything? invest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:7 In truth, investing carries risk, and it is not the role of the Federal Government to bail our every investor who loses money. In a true free market, investors are responsible for their own decisions, good or bad. This responsibility leads them to vigorously analyze companies before they invest, using independent financial analysts. In our heavily regulated environment, however, investors and analysts equate SEC compliance with reputability. The more we look to the government to protect us from investment mistakes, the less competition there if for truly independent evaluations of investment risk. invest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:11 If left alone by Congress, the market is perfectly capable of disciplining businesses who engage in unsound practices. After all, before the government intervened, Arthur Andersen and Enron had already begun to pay a stiff penalty, a penalty delivered by individual investors acting through the market. This shows that not only can the market deliver punishment, but it can also deliver this punishment swifter and more efficiently than the government. We cannot know what efficient means of disciplining companies would emerge from a market process but we can know they would be better at meeting the needs of investors than a top-down regulatory approach. invest Corporate and Auditing Accountability, Responsibility, And Transparency Act of 2002 (CARTA) 24 April 2002    2002 Ron Paul 24:12 Of course, while the supporters of increased regulation claim Enron as a failure of “ravenous capitalism,” the truth is Enron was a phenomenon of the mixed economy, rather than the operations of the free market. Enron provides a perfect example of the dangers of corporate subsidies. The company was (and is) one of the biggest beneficiaries of Export- Import (Ex-Im) Bank and Overseas Private Investment Corporation (OPIC) subsidies. These programs make risky loans to foreign governments and businesses for projects involving American companies. While they purport to help developing nations, Ex-Im and OPIC are in truth nothing more than naked subsidies for certain politically-favored American corporations, particularly corporations like Enron that lobby hard and give huge amounts of cash to both political parties. Rather than finding ways to exploit the Enron mess to expand Federal power, perhaps Congress should stop aiding corporations like Enron that pick the taxpayer’s pockets through Ex-Im and OPIC. invest 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. invest 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. invest 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. invest Beware Dollar Weakness June 5, 2002    2002 Ron Paul 52:1 Mr. Speaker, I have for several years come to the House floor to express my concern for the value of the dollar. It has been, and is, my concern that we in the Congress have not met our responsibility in this regard. The constitutional mandate for Congress should only permit silver and gold to be used as legal tender and has been ignored for decades and has caused much economic pain for many innocent Americans. Instead of maintaining a sound dollar, Congress has by both default and deliberate action promoted a policy that systematically depreciates the dollar. The financial markets are keenly aware of the minute-by-minute fluctuations of all the fiat currencies and look to these swings in value for an investment advantage. This type of anticipation and speculation does not exist in a sound monetary system. invest 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. invest 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. invest Export-Import Bank Is Corporate Welfare 5 June 2002    2002 Ron Paul 53:5 The other reason why economically it is unsound, is that this is a form of credit allocation. If a bank has money and they can get a guarantee from the Export-Import Bank, they will always choose the guarantee over the nonguarantee, so who gets squeezed. The funds are taken out of the investment pool. The little people get squeezed. They do not get the loan, but they are totally unknown. Nobody sees those who did not get a loan. All we see is the loan that benefits somebody on the short run. But really on the long run, it benefits the big corporations. Many times it doesn’t even do that. invest 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. invest BAD TAX POLICY SENDS COMPANIES OVERSEAS June 11, 2002    2002 Ron Paul 55:3 Though reincorporation benefits American investors and workers, some of my colleagues have objected to reincorporation because this action deprives the government of revenue. Some have even gone so far as to question the patriotism of companies that reincorporate. However, there is nothing unpatriotic about trying to minimize one’s tax burden to enhance economic competitiveness. In fact, it could be argued that since reincorporation helps companies create new jobs and expand the American economy, those who reincorporate are behaving patriotically. invest Lifetime Consequences For Sex Offenders Act 25 June 2002    2002 Ron Paul 58:2 However, Mr. Speaker, questions of the proper punishment for sexual crimes are not issues properly under federal jurisdiction. The Constitution grants the federal government jurisdiction over only three crimes: treason, counterfeiting, and piracy. It is hard to stretch the definition of treason, counterfeiting, or piracy to include sex crimes. Therefore, even though I agree with the policy behind H.R. 4679, I must remind my colleagues that the responsibility for investigating, prosecuting and punishing sex crimes is solely that of state and local governments. invest Child Obscenity And Pornography Prevention Act 25 June 2002    2002 Ron Paul 62:1 Mr. PAUL. Mr. Speaker, as a parent, grandparent and OB–GYN who has had the privilege of delivering over 4,000 babies, I share the revulsion of all decent people at child pornography. Those who would destroy the innocence of children by using them in sexuallyexplicit material deserve the harshest punishment. However, the Child Obscenity and Pornography Prevention Act (H.R. 4623) exceeds Congress’ constitutional power and does nothing to protect any child from being abused and exploited by pornographers. Instead, H.R. 4623 redirects law enforcement resources to investigations and prosecutions of “virtual” pornography which, by definition, do not involve the abuse or exploitation of children. Therefore, H.R. 4623 may reduce law enforcement’s ability to investigate and prosecute legitimate cases of child pornography. invest Is America a Police State? June 27, 2002    2002 Ron Paul 64:79 It’s a definite benefit for so many to recognize that our $40 billion annual investment in intelligence gathering prior to 9/11 was a failure. Now a sincere desire exists to rectify these mistakes. That’s good, unless, instead of changing the role for the CIA and the FBI, all the past mistakes are made worse by spending more money and enlarging the bureaucracies to do the very same thing without improving their efficiency or changing their goals. Unfortunately that is what is likely to happen. invest Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:3 What is distinctively absent is any mention that all financial bubbles are saturated with excesses in hype, speculation, debt, greed, fraud, gross errors in investment judgment, carelessness on the part of analysts and investors, huge paper profits, conviction that a new era economy has arrived and, above all else, pie-in-the-sky expectations. invest 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. invest 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! invest Has Capitalism Failed? July 9, 2002    2002 Ron Paul 66:13 First, Congress should be investigating the federal government’s fraud and deception in accounting, especially in reporting future obligations such as Social Security, and how the monetary system destroys wealth. Those problems are bigger than anything in the corporate world and are the responsibility of Congress. Besides, it’s the standard set by the government and the monetary system it operates that are major contributing causes to all that’s wrong on Wall Street today. Where fraud does exist, it’s a state rather than federal matter, and state authorities can enforce these laws without any help from Congress. invest Free Housing Market Enhancement Act July 16, 2002    2002 Ron Paul 70:2 One of the major government privileges granted these GSEs is a line of credit to the United States Treasury. According to some estimates, the line of credit may be worth over $2 billion. This explicit promise by the Treasury to bail out these GSEs in times of economic difficulty helps them attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt. invest Free Housing Market Enhancement Act July 16, 2002    2002 Ron Paul 70:5 However, despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policies of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing. invest Free Housing Market Enhancement Act July 16, 2002    2002 Ron Paul 70:6 Perhaps the Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts. invest Free Housing Market Enhancement Act July 16, 2002    2002 Ron Paul 70:7 No less an authority than Federal Reserve Chairman Alan Greenspan has expressed concern that government subsidies provided to the GSEs make investors underestimate the risk of investing in Fannie Mae and Freddie Mac. invest Free Housing Market Enhancement Act July 16, 2002    2002 Ron Paul 70:8 Mr. Speaker, it is time for Congress to act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors misled by foolish government interference in the market. I therefore hope my colleagues will stand up for American taxpayers and investors by cosponsoring the Free Housing Market Enhancement Act. invest 25 July 2002 Monetary Practices    2002 Ron Paul 78:5 A CLASSIC HAYEKIAN HANGOVER (By Roger Garrison and Gene Callahan) Are investment booms followed by busts like drinking binges are followed by hangovers? Dubbing the idea “The Hangover Theory” (Slate, 12/3/98), Paul Krugman has attempted to denigrate the business-cycle theory introduced early last century by Austrian economist Ludwig von Mises and developed most notably by Nobelist F. A. Hayek. invest 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. invest 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. invest 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. invest 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. invest 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. invest 25 July 2002 Monetary Practices    2002 Ron Paul 78:12 Save more, and we get a market process that plays itself out as economic growth. Pump new money through credit markets, and we get a market process of a very different kind: It doesn’t play itself out; it does itself in. The investment binge is followed by a hangover. This is the Austrian theory in a nutshell. (Ironically, it is the theory that Alan Greenspan presented forty years ago when he lectured for the Nathaniel Branden Institute.) We believe that there is strong evidence that the United States is now in the hangover phase of a classic Mises-Hayek business cycle. invest 25 July 2002 Monetary Practices    2002 Ron Paul 78:17 Meanwhile consumer spending stayed strong — with very low (sometimes negative) savings rates. Growth was not being fueled by real investment, which would require forgoing current consumption to save for the future, but by the monetary printing press. invest 25 July 2002 Monetary Practices    2002 Ron Paul 78:18 As so often happens at bacchanalia, when the party entered the wee hours, it became apparent that too many guys had planned on taking the same girl home. There were too few resources available for all of their plans to succeed. The most crucial — and most general — unavailable factor was a continuing flow of investment funds. There also turned out to be shortages of programmers, network engineers, technical managers, and other factors of production. The rising prices of these factors exacerbated the ill effects of the shortage of funds. invest 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.” invest The Price Of War 5 September 2002    2002 Ron Paul 83:40 Defending our country from outside attack is legitimate and is of the highest priority. Protecting individual liberties should be our goal. This does not mean, however, that our troops follow our citizens or their investments throughout the world. invest 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. invest The Price Of War 5 September 2002    2002 Ron Paul 83:50 A noninterventionist foreign policy would not condone subsidies to our corporations through programs like the Export-Import Bank and the Overseas Private Investment Corporation. These programs guarantee against losses while the risk takers want our military to protect their investments from political threats. This current flawed policy removes the tough decisions of when to invest in foreign countries and diminishes the pressure on those particular countries to clean up their political acts in order to entice foreign capital to move into their country. Today’s foreign policy encourages bad investments. Ironically this is all done in the name of free trade and capitalism, but it does more to export jobs and businesses than promote free trade. Yet when it fails, capitalism and freedom are blamed. invest Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:9 WHY GOLD? (By Llewellyn H. Rockwell, Jr.) As with all matters of investment, everything is clear in hindsight. Had you bought gold mutual funds earlier this year, they might have appreciated more than 100 percent. Gold has risen $60 since March 2001 to the latest spot price of $326. invest Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:15 Why, then, do people turn to gold in times like these? What is gold used for? Yes, there are industrial uses and there are consumer uses in jewelry and the like. But recessions and inflations don’t cause people to want to wear more jewelry or stock up on industrial metal. The investor demand ultimately reflects consumer demand for gold. But that still leaves us with the question of why the consumer demand exists in the first place. Why gold and not sugar or wheat or something else? invest Abolishing The Federal Reserve 10 September 2002    2002 Ron Paul 86:16 There is no getting away from it: investor markets have memories of the days when gold was money. In fact, in the whole history of civilization, gold has served as the basic money of all people wherever it’s been available. Other precious metals have been valued and coined, but gold always emerged on top in the great competition for what constitutes the most valuable commodity of all. invest 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. invest The Shrimp Importation Financing Fairness Act October 8, 2002    2002 Ron Paul 97:7 Adding insult to injury the federal government is forcing American shrimpers to subsidize their competitors! In the last three years, the United States Government has provided more than $1,800,000,000 in financing and insurance for these foreign countries through the Overseas Private Investment Corporation (OPIC). Furthermore, the U.S. current exposure relative to these countries through the Export-Import Bank totals some $14,800,000,000. Thus, the United States taxpayer is providing a total subsidy of $16,500,000,000 to the home countries of the leading foreign competitors of American shrimpers! Of course, the American taxpayer could be forced to shovel more money to these countries through the International Monetary Fund (IMF). invest Treatment Of Mr. Martin Mawyer By U.N. Officers Must Be Investigated 16 October 2002    2002 Ron Paul 100:4 Mr. Speaker, while I am not charging that the U.N. agents involved have in fact violated U.S. laws, I do believe the attached items demonstrate that sufficient evidence exists for an investigation to be undertaken and I have asked that the International Relations Committee or the appropriate subcommittee to undertake said investigation. invest 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. invest Shrimp Importation Financing Fairness Act 7 January 2003    2003 Ron Paul 3:7 Adding insult to injury, the federal government is forcing American shrimpers to subsidize their competitors! Since 1999, the United States Government has provided more than $1,800,000,000 in financing and insurance for these foreign countries through the Overseas Private Investment Corporation (OPIC). Furthermore, according to the latest available figures, the U.S. current exposure relative to these countries through the Export- Import Bank totals some $14,800,000,000. Thus, the United States taxpayer is providing a subsidy of at least $16,500,000,000 to the home countries of the leading foreign competitors of American shrimpers! Of course, the American taxpayer could be forced to shovel more money to these countries through the International Monetary Fund (IMF). invest Stop Identity Theft – Make Social Security Numbers Confidential January 7, 2003    2003 Ron Paul 4:5 This act also forbids the federal government from creating national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions between American citizens, as well as repealing those sections of the Health Insurance Portability and Accountability Act of 1996 that require the Department of Health and Human Services to establish a uniform standard health identifier. By putting an end to government-mandated uniform IDs, the Identity Theft Prevention Act will prevent millions of Americans from having their liberty, property and privacy violated by private-and-public sector criminals. invest Stop Identity Theft – Make Social Security Numbers Confidential January 7, 2003    2003 Ron Paul 4:7 Mr. Speaker, of all the invasions of privacy proposed in the past decade, perhaps the most onerous is the attempt to assign every American a “unique health identifier” — an identifier which could be used to create a national database containing the medical history of all Americans. As an OB/GYN with more than 30 years in private practice, I know the importance of preserving the sanctity of the physician-patient relationship. Oftentimes, effective treatment depends on a patient’s ability to place absolute trust in his or her doctor. What will happen to that trust when patients know that any and all information given to their doctor will be placed in a government accessible database? Some members of Congress may claim that the federal monitoring of all Americans will enhance security. However, the fact is that creating a surveillance state will divert valuable resources away from investigating legitimate security threats into spying on innocent Americans, thus reducing security. The American people would be better served if the government focused attention on ensuring our borders are closed to potential terrorists instead of coming up with new ways to violate the rights of American citizens. invest Republic Versus Democracy 29 January 2003    2003 Ron Paul 6:33 Public financing of housing, for instance, benefits builders, bureaucrats, insurance companies and financial institutions while the poor end up in drug-invested, crime-ridden housing projects. For the same reason, not only do business leaders not object to this system but they also become strong supporters of welfare programs and foreign aid. invest Don’t Antagonize our Trading Partners April 1, 2003    2003 Ron Paul 41:3 In 2002 we earned $11.9 billion less from our investments overseas than foreigners did here. This is not a sign of financial strength. A negative balance on the income account contributes to the $500 billion annual current account deficit. Since 1985 when we became a deficit nation, we have acquired a foreign debt of approximately $2.8 trillion, the world’s largest. No nation can long sustain a debt that continues to expand at a rate greater than 5 percent of the GDP. This means we borrowed more than $1.4 billion every day to keep the borrowing binge going. This only can be maintained until foreigners get tired of taking and holding our dollars and buying our debt. Bashing the French and others will only hasten the day that sets off the train of economic events that will please no one. invest The Wisdom Of Tax Cuts 6 May 2003    2003 Ron Paul 56:2 Some say tax cuts raise revenues by addressing economic activity, thus providing Congress with even more money to spend. Others say lowering taxes simply lowers revenues and increases deficits. Some say we must target tax cuts to the poor and the middle class so they will spend more money. Others say tax cuts should be targeted to the rich so they can invest and create jobs. We must accept that it is hard to give tax cuts to people who do not pay taxes. But we could, if we wanted, cut payroll taxes for lower-income workers. invest The Wisdom Of Tax Cuts 6 May 2003    2003 Ron Paul 56:3 The truth is, government officials cannot know what consumers and investors will do if they get a tax cut. Plugging tax cut data into a computer and expecting an accurate projection of the economic outcome is about as reliable as asking Congress to project government surpluses. Two important points are purposely ignored: first, the money people earn is their own, and they have a moral right to keep as much of it as possible. It is not Congress’ money to spend. Government spending is the problem. Taking a big chunk of the people’s earnings out of the economy, whether through taxes or borrowing, is always harmful. Taxation is more honest and direct and the harm is less hidden. Borrowing, especially since the Federal Reserve creates credit out of thin air to loan to big spenders in Congress, is more deceitful. It hides the effects and delays the consequences. But over the long term, this method of financing is much more dangerous. invest Amendment 6 To de-Fund The United Nations — Part 1 15 July 2003    2003 Ron Paul 75:4 Mr. Chairman, last year we spent $3.25 billion on the U.N. as well as the other agencies at the U.N. I do not believe that is money worthwhile. It is not a good investment. I do not think the money is spent well. The amendment, as I said, defunds the United Nations as well as its agencies. We pay 21 percent of the budget, and on peacekeeping missions we pay over 27 percent. I think this is essentially wasted money. invest 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. invest Legislation To Prohibit The Federal Government From Imposing A “Carry Tax” 17 July 2003    2003 Ron Paul 78:3 The carry tax was proposed as a measure to counteract the perceived risk of deflation. Yet, the problems this carry tax is intended to solve are caused by our government’s boomand- bust monetary policy. Any perceived deflation in the American economy is the result of the end of the inflationary period of the nineties that created the stock market bubble. When the bubble burst, there was the inevitable process of liquidating bad investments caused by the misallocation of credit as a result of the Federal Reserve monetary policy. In fact, this liquidation is necessary for the economy to recover from the economic misallocations caused by the Federal Reserve’s monetary policy. invest The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Monetary Freedom and Accountability Act. This simple bill takes a step toward restoring Congress’ constitutional authority over U.S. monetary policy by requiring congressional approval before the President or the Treasury secretary buys or sells gold. I also ask for unanimous consent to insert into the RECORD articles by Kelly Patricia O Meara of Insight magazine detailing the evidence supporting allegations that the United States Government has manipulated the price of gold over the past decade and the harm such manipulation caused American investors, taxpayers, consumers, and workers. invest The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:3 By artificially deflating the price of gold, federal intervention in the gold market can reduce the values of private gold holdings, adversely affecting millions of investors. These investors rely on their gold holdings to protect them from the effects of our misguided fiat currency system. Federal dealings in gold can also adversely affect those countries with large gold mines, many of which are currently ravished by extreme poverty. Mr. Speaker, restoring a vibrant gold market could do more than any foreign aid program to restore economic growth to those areas. invest The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:4 While the Treasury denies it is dealing in gold, the Gold Anti-Trust Action Committee (GATA) has uncovered evidence suggesting that the Federal Reserve and the Treasury, as detailed in the attached article. GATA alleges that the Treasury, operating through the Exchange- Stabilization Fund and in cooperation with major banks and the International Monetary Fund, has been interfering in the gold market with the goal of lowering the price of gold. The purpose of this policy has been to disguise the true effects of the monetary bubble responsible for the artificial prosperity of the 1990s, and to protect the politically-powerful banks that are heavy invested in gold derivatives. GATA believes federal actions to drive down the price of gold help protect the profits of these banks at the expense of investors, consumers, and taxpayers around the world. invest The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:8 [From Insight Magazine, July 8, 2003] PANIC IS NEAR IF “THE GOLD IS GONE” (By Kelly Patricia O Meara) Gold. It’s been called a barbarous relic, and those who focus on its historic role as a standard of value frequently are labeled “lunatic fringe.” Given the recent highs in the gold market, it looks like the crazies have been having a hell of a year. With the stock market taking its third yearly loss, gold returned nearly 30 percent to investors, moving from $255 an ounce to six-year highs of $380. invest The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:15 According to Murphy, “The cartel has been able to get away with lying about the amount of gold in reserve because the International Monetary Fund [IMF] is the Arthur Andersen of the gold world.” He has provided to Insight documents from central banks confirming that the IMF instructed them to count both lent and swapped gold as a reserve. “In other words, the IMF told the central banks to deceive the investment and gold world[s]. Once this gold is lent [or] swapped, it’s gone until such time as it can be repurchased. And with the skyrocketing price of gold we’re now seeing, it would be incredibly expensive, let alone nearly physically impossible, to get it back.” invest The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:17 The gold bugs appear to be basing their identification of a world gold shortage on industry data, much of which has been summarized in two papers prepared by four different gold analysts at different times using separate methods. The first paper was written by governmental investment adviser Frank Veneroso and his associate, mining analyst Declan Costelloe. Titled Gold Derivatives, Gold Lending: Official Management of the Gold Price and the Current State of the Gold Market, it was presented at the 2002 International Gold Symposium in Lima, Peru, and estimates the gold deficit of the central banks at between 10,000 and 15,000 tonnes. The second paper, Gold Derivatives: Moving Towards Checkmate, by Mike Bolser, a retired businessman, and Reginald H. Howe, a private investor and proprietor of the Website www.goldensextant.com, estimates the alleged shortage of central-bank gold at between 15,000 and 16,000 tonnes — nearly a decade’s worth of mine production. invest The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:23 The European Central Bank (ECB) also made it clear that the IMF policy is to include swaps and loans as reserves. The ECB responded to GATA: “Following the recommendations set out in the IMF operational guidelines of the ’Data Template on International Reserve and Foreign Currency Liquidity,’ which were developed in 1999, all reversible gold transactions, including gold swaps, are recorded as collateralized loans in balance of payments and international investment- position statistics. This treatment implies that the gold account would remain unchanged on the balance sheet.” The Bank of Finland and the Bank of Portugal also confirmed in writing that the swapped gold remains a reserve asset under IMF regulations. invest The Monetary Freedom And Accountability Act 17 July 2003    2003 Ron Paul 79:27 Embry says, “I’ve made a fortune for my clients investing in gold and gold stocks because I have operated on the premise that the Veneroso/Howe reports are right — that gold was significantly undervalued in the daily quote and that it was going a lot higher. The circumstantial evidence, and I bet my clients’ money on it, was very much in favor of the guys who said a great deal more central-bank gold had entered the market and driven the price down far too low. GATA has had this story from day one. I think that they’re right and that officialdom doesn’t want this exposed. GATA is willing to have a public debate but the gold world won’t debate. I think there is a tacit admission of anyone who has an IQ above that of a grapefruit that Veneroso and Howe have a pretty good point. I’m an analyst who has looked at both sides of the issue and I bet my money on GATA. So far they’ve been right.” invest Stop Subsidizing Foreign Shrimpers July 25, 2003    2003 Ron Paul 92:4 Adding insult to injury the federal government is forcing American shrimpers to subsidize their competitors! From 1999-2002, the United States government provided approximately $2,172,220,000 in financing and insurance for these foreign countries through the Overseas Private Investment Corporation (OPIC). Furthermore, the United States’ current exposure relative to these countries through the Export-Import Bank totals approximately $14,800,000,000. Thus, the United States taxpayer is providing a subsidy of at least $16,972,220,000 to the home countries of the leading foreign competitors of American shrimpers! invest Paper Money and Tyranny September 5, 2003    2003 Ron Paul 93:16 In many societies the middle class has actually been wiped out by monetary inflation, which always accompanies fiat money. The high cost of living and loss of jobs hits one segment of society, while in the early stages of inflation, the business class actually benefits from the easy credit. An astute stock investor or home builder can make millions in the boom phase of the business cycle, while the poor and those dependent on fixed incomes can’t keep up with the rising cost of living. invest 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. invest 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. invest 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. invest 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. invest 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. invest 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. invest Fannie Mae and Freddie Mac Subsidies Distort the Housing Market September 10, 2003    2003 Ron Paul 95:3 One of the major government privileges granted to GSEs is a line of credit with the United States Treasury. According to some estimates, the line of credit may be worth over $2 billion dollars. This explicit promise by the Treasury to bail out GSEs in times of economic difficulty helps the GSEs attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a huge unconstitutional and immoral income transfer from working Americans to holders of GSE debt. invest Fannie Mae and Freddie Mac Subsidies Distort the Housing Market September 10, 2003    2003 Ron Paul 95:5 The connection between the GSEs and the government helps isolate the GSE management from market discipline. This isolation from market discipline is the root cause of the recent reports of mismanagement occurring at Fannie and Freddie. After all, if Fannie and Freddie were not underwritten by the federal government, investors would demand Fannie and Freddie provide assurance that they follow accepted management and accounting practices. invest Fannie Mae and Freddie Mac Subsidies Distort the Housing Market September 10, 2003    2003 Ron Paul 95:7 Despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policy of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing. invest Fannie Mae and Freddie Mac Subsidies Distort the Housing Market September 10, 2003    2003 Ron Paul 95:8 Perhaps the Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary, but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts. invest Fannie Mae and Freddie Mac Subsidies Distort the Housing Market September 10, 2003    2003 Ron Paul 95:9 No less an authority than Federal Reserve Chairman Alan Greenspan has expressed concern that government subsidies provided to GSEs make investors underestimate the risk of investing in Fannie Mae and Freddie Mac. invest Fannie Mae and Freddie Mac Subsidies Distort the Housing Market September 10, 2003    2003 Ron Paul 95:10 Mr. Chairman, I would like to once again thank the Financial Services Committee for holding this hearing. I would also like to thank Secretaries Snow and Martinez for their presence here today. I hope today’s hearing sheds light on how special privileges granted to GSEs distort the housing market and endanger American taxpayers. Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors who were misled by foolish government interference in the market. I therefore hope this committee will soon stand up for American taxpayers and investors by acting on my Free Housing Market Enhancement Act. invest Introducing Free Housing Market Enhancement Act 10 September 2003    2003 Ron Paul 96:2 One of the major government privileges granted the GSE is a line of credit to the United States Treasury. According to some estimates, the line of credit may be worth over $2 billion dollars. This explicit promise by the Treasury to bail out the GSEs in times of economic difficulty helps the GSEs attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt. invest Introducing Free Housing Market Enhancement Act 10 September 2003    2003 Ron Paul 96:4 The connection between the GSEs and the government helps isolate the GSE management from market discipline. This isolation from market discipline is the root cause of the recent reports of mismanagement occurring at Fannie and Freddie. After all, if investors did not have reason to believe that Fannie and Freddie were underwritten by the Federal government then investors would demand Fannie and Freddie provided assurance they were following accepted management and accounting practices before investing in Fannie and Freddie. invest Introducing Free Housing Market Enhancement Act 10 September 2003    2003 Ron Paul 96:6 Despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policies of diverting capital to other uses creates a short-term boom in housing. Like all artificially- created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing. invest Introducing Free Housing Market Enhancement Act 10 September 2003    2003 Ron Paul 96:7 Perhaps the Federal Reserve can stave off the day of reckoning by purchasing the GSE’s debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary, but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts. invest Introducing Free Housing Market Enhancement Act 10 September 2003    2003 Ron Paul 96:8 No less an authority than Federal Reserve Chairman Alan Greenspan has expressed concern that the government subsidies provided to the GSEs make investors underestimate the risk of investing in Fannie Mac and Freddie Mac. invest Introducing Free Housing Market Enhancement Act 10 September 2003    2003 Ron Paul 96:9 Mr. Speaker, it is time for Congress to act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors who were misled by foolish government interference in the market. I therefore hope my colleagues will stand up for American taxpayers and investors by cosponsoring the Free Housing Market Enhancement Act. invest Introduction Of The Steel Financing Fairness Act 10 September 2003    2003 Ron Paul 97:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Steel Financing Fairness Act. This bill helps our Nation’s beleaguered steel industry by stopping the Government from forcing American steel workers to subsidize their foreign competitors. Specifically, the bill prohibits the Overseas Private Investment Corporation (OPIC) and the Export-Import Bank (EXIMBANK) from providing any assistance to countries that subsidize their steel industries. The Steel Financing Fairness Act also instructs the Secretary of the Treasury to reduce America’s contribution to the International Monetary Fund (IMF) by a prorated share of the IMF’s assistance to countries that subsidize their steel industries. invest Thrift Savings Improvement Act 16 September 2003    2003 Ron Paul 99:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Thrift Savings Fund Improvement Act. This legislation to expand the investment options available to congressional and other federal employees by creating a precious metals investment fund in the Thrift Savings Plan (TSP). Adding a precious metals fund to the TSP will enhance the plan’s ability to offer congressional employees a wide range of investment options that can provide financial security even during difficult economic conditions. invest Thrift Savings Improvement Act 16 September 2003    2003 Ron Paul 99:5 Recent gains aside, precious metals have a number of features that make them a sound part of a prudent investment strategy. In particular, inflation does not erode the value of precious metals is not eroded over time. Thus, precious metals can serve as a valuable “inflation hedge.” Precious metals also maintain, or even increase, their value during times of stock market instability, such as what the country is currently experiencing. Thus, investments in precious metals can help ensure that an investment portfolio maintains its value during times of economic instability. invest Thrift Savings Improvement Act 16 September 2003    2003 Ron Paul 99:6 Federal employees could greatly benefit from the protection against inflation and economic downturns provided by prudent investments in precious metals. I, therefore, once again urge my colleagues to cosponsor the Thrift Savings Fund Improvement Act. invest 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 115:10 Instead of promoting global economic government, the United States Congress should reform those policies that reduce our manufacturers’ competitiveness. Recently, a financial journalist visited with businessmen who are launching new enterprises in China. When he asked them why they chose to invest in China, they answered: “It is so much easier to start a business in China than in the United States, especially in places like Massachusetts and California.” This answer should send a clear message to every lawmaker in America: the taxes and regulations imposed on American businesses are damaging economic growth and killing jobs. If we were serious about creating jobs, we would be working on an aggressive agenda of cutting taxes and repealing needless regulations. invest Redrawing Coastal Barrier Resources Map 17 November 2003    2003 Ron Paul 117:2 This change will ensure property owners who had already begun developing this area are able to obtain insurance. Congress never intended to deny these landowners access to insurance. Matagorda Dunes was included in COBRA as a result of a drafting error when the COBRA maps were revised in the early eighties. Unless this mistake is fixed, the result could be catastrophic for these property owners who invested in developing Matagorda Dunes under the belief that the land was excluded from COBRA. A failure to fix this mistake could also be quite costly to the American taxpayers. invest Congress Abandoned its Duty to Debate and Declare War February 4, 2004    2004 Ron Paul 1:2 Our intelligence agencies failed for whatever reason this time, but their frequent failures should raise the question of whether or not secretly spending forty billion taxpayer dollars annually gathering bad information is a good investment. The administration certainly failed us by making the decision to sacrifice so much in life and limb, by plunging us into this Persian Gulf quagmire that surely will last for years to come. invest Congress Abandoned its Duty to Debate and Declare War February 4, 2004    2004 Ron Paul 1:3 But before Congress gets too carried away with condemning the administration or the intelligence gathering agencies, it ought to look to itself. A proper investigation and debate by this Congress — as we’re now scrambling to accomplish — clearly was warranted prior to any decision to go to war. An open and detailed debate on a proper declaration of war certainly would have revealed that U.S. national security was not threatened — and the whole war could have been avoided. Because Congress did not do that, it deserves the greatest criticism for its dereliction of duty. invest Congress Abandoned its Duty to Debate and Declare War February 4, 2004    2004 Ron Paul 1:6 But already we hear the inquiry will be deliberately delayed, limited to investigating only the failures of the intelligence agencies themselves, and may divert its focus to studying intelligence gathering related to North Korea and elsewhere. If the commission avoids the central controversy — whether or not there was selective use of information or undue pressure put on the CIA to support a foregone conclusion to go to war by the administration — the commission will appear a sham. invest 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. invest Federal War On Drugs Threatens The Effective Treatment Of Chronic Pain 11 February 2004    2004 Ron Paul 4:1 Mr. PAUL. Mr. Speaker, the publicity surrounding popular radio talk show host Rush Limbaugh’s legal troubles relating to his use of the pain killer OxyContin will hopefully focus public attention on how the federal War on Drugs threatens the effective treatment of chronic pain. Prosecutors have seized Mr. Limbaugh’s medical records in connection with an investigation into charges that Mr. Limbaugh violated federal drug laws. The fact that Mr. Limbaugh is a high profile, and often controversial, conservative media personality has given rise to speculation that the prosecution is politically motivated. Adding to this suspicion is the fact that individual pain patients are rarely prosecuted in this type of case. invest Rush Limbaugh and the Sick Federal War on Pain Relief February 12, 2004    2004 Ron Paul 5:1 Mr. Speaker, the publicity surrounding popular radio talk show host Rush Limbaugh’s legal troubles relating to his use of the pain killer OxyContin hopefully will focus public attention on how the federal drug war threatens the effective treatment of chronic pain. Prosecutors have seized Mr. Limbaugh’s medical records to investigate whether he violated federal drug laws. The fact that Mr. Limbaugh is a high profile, controversial, conservative media personality has given rise to speculation that the prosecution is politically motivated. Adding to this suspicion is the fact that individual pain patients are rarely prosecuted in this type of case. invest The Financial Services Committees “Views and Estimates for 2005” February 26, 2004    2004 Ron Paul 7:2 This document claims that “investor confidence” was boosted by the Sarbanes-Oxley Act, which imposed new federal regulations on capital markets, including mandating new duties for board members and dictating how companies must structure their boards of directors. One of Sarbanes-Oxley’s most onerous provisions makes every member of a company’s board of directors, as well as the company’s chief executive officer, criminally liable if they fail to catch accounting errors. invest The Financial Services Committees “Views and Estimates for 2005” February 26, 2004    2004 Ron Paul 7:3 As investigative reporter John Berleau detailed in his Insight magazine article (“Sarbanes-Oxley is a Business Disaster”), the new mandates in Sarbanes-Oxley have caused directorship, accounting, audit, and legal fees to double. In addition, the cost of directors’ liability insurance has almost doubled since Sarbanes-Oxley became law. Not surprisingly, the impact of these new costs hit small businesses especially hard — the traditional engine of job creation in America. invest The Financial Services Committees “Views and Estimates for 2005” February 26, 2004    2004 Ron Paul 7:7 Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, the financial losses suffered by the mortgage debt holders will be greater than they would have been had the government not actively encouraged over-investment in housing. invest The Financial Services Committees “Views and Estimates for 2005” February 26, 2004    2004 Ron Paul 7:16 It is long past time for Congress to examine seriously the need to reform the fiat currency system. The committee also should examine how Federal Reserve policies encourage excessive public and private sector debt, and the threat that debt poses to the long-term health of the American economy. Additionally, the committee should examine how the American government and economy would be affected if the dollar lost its privileged status as the world’s reserve currency. After all, the main reason the United States government is able to run such large deficits without suffering hyperinflation is the willingness of foreign investors to hold US debt instruments. If, or when, the dollar’s weakness causes foreigners to become reluctant to invest in US debt instruments, the results could be cataclysmic for our economy. invest H. Res. 412 Honoring Men And Women Of The Drug Enforcement Administration — Part 1 3 March 2004    2004 Ron Paul 10:4 I do not know of anybody who likes drugs and advocates the use of drugs. I as a physician am strongly opposed to the use of drugs. It is just that the techniques make a big difference. We are talking about bad habits, and yet we are resorting to the use of force, literally an army of agents and hundreds of billions of dollars over a 30-year period, in an effort to bring about changes in people’s habits. Someday we are going to have to decide how successful we have been. Was it a good investment? Have we really accomplished anything? invest The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:2 The 9/11 Commission soon will release its report after months of fanfare by those whose reputations are at stake. The many hours and dollars spent on the investigation may well reveal little we don’t already know, while ignoring the most important lessons that should be learned from this egregious attack on our homeland. Common sense already tells us the tens of billions of dollars spent by government agencies, whose job it is to provide security and intelligence for our country, failed. invest The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:3 A full-fledged investigation into the bureaucracy may help us in the future, but one should never pretend that government bureaucracies can be made efficient. It is the very nature of bureaucracies to be inefficient. Spending an inordinate amount of time finger pointing will distract from the real lessons of 9/11. Which agency, which department, or which individual receives the most blame should not be the main purpose of the investigation. invest The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:4 Despite our serious failure to prevent the attacks, it’s disturbing to see how politicized the whole investigation has become. Which political party receives the greatest blame is a high stakes election-year event, and distracts from the real lessons ignored by both sides. invest The Lessons of 9/11 April 22, 2004    2004 Ron Paul 27:20 It’s not whether the Commission investigation of the causes of 9/11 is unwarranted; since the Commissioners are looking in the wrong places for answers, it’s whether much will be achieved. invest Statement on the Abuse of Prisoners in Iraq May 6, 2004    2004 Ron Paul 31:2 But why are we condemning a small group of low-level servicemembers when we do not yet know the full story? Why are we rushing to insert ourselves into an ongoing investigation, pretending that we already know the conclusions when we have yet to even ask all the questions? As revolting as the pictures we have seen are, they are all we have to go by, and we are reacting to these pictures alone. We do not and cannot know the full story at this point, yet we jump to condemn those who have not even yet had the benefit of a trial. We appear to be operating on the principle of guilty until proven innocent. It seems convenient and perhaps politically expedient to blame a small group of “bad apples” for what may well turn out to be something completely different – as the continuously widening investigation increasingly suggests. invest Reject the Millennium Challenge Act May 19, 2004    2004 Ron Paul 35:3 The MCA budget request for fiscal year 2005 is $2.5 billion. We have been told that somewhere between 12 and 16 countries have met the following criteria for inclusion in the program: “ruling justly, investing in people, and pursuing sound economic policies.” invest Reject the Millennium Challenge Act May 19, 2004    2004 Ron Paul 35:4 It is a good idea to pay close attention to these criteria, as they tell the real tale of this new program. First, what does “investing in people” mean? It is probably safe to assume that “investing in people” does not mean keeping taxes low and government interference to a minimum so that individuals can create wealth through private economic activity. So, in short, this program will reward socialist-style governance. invest Reject the Millennium Challenge Act May 19, 2004    2004 Ron Paul 35:6 MCA is a waste of taxpayer money. Countries that pursue sound economic policies will find that international financial markets provide many times the investment capital necessary for economic growth. MCA funds will not even be a drop in the bucket compared to what private capital can bring to bear in an economy with promise and potential. And this capital will be invested according to sound investment strategies - designed to make a profit - rather than allocated according to the whim of government bureaucrats. invest Millennium Challenge Account — Part 2 15 July 2004    2004 Ron Paul 59:4 If the conditions of a country are amenable to capitalism and investment, there is never a problem of a lack of investors. The fact that we have to do this, that means there are flaws in the system. This will not improve it. It actually makes it worse. Just because you have partnership with businesses does not mean you are moving toward free enterprise. That means you are moving toward a system of interventionism, or crony capitalism. It is not true reform. invest Reject a National Prescription Database October 5, 2004    2004 Ron Paul 74:4 Applying to doctors laws intended to deal with drug kingpins, the government has created the illusion of some success in the war on drugs. Investigating drug dealers can be hard and dangerous work. In comparison, it is much easier to shut down medical practices and prosecute doctors who prescribe pain medication. invest The 9-11 Intelligence Bill: More Bureaucracy, More Intervention, Less Freedom October 8, 2004    2004 Ron Paul 77:9 Immediately after the attack on September 11, 2001, I introduced several pieces of legislation designed to help fight terrorism and secure the United States, including a bill to allow airline pilots to carry firearms and a bill that would have expedited the hiring of Federal Bureau of Investigation (FBI) translators to support counterterrorism investigations and operations. I also introduced a bill to authorize the president to issue letters of marque and reprisal to bring to justice those who committed the attacks of September 11, 2001, and other similar acts of war planned for the future. invest 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? invest Where To From Here? November 20, 2004    2004 Ron Paul 81:34 There are even more reasons to believe the current government status quo is unsustainable. As a nation dependent on the willingness of foreigners to loan us the money to finance our extravagance, we now are consuming 80% of the world’s savings. Though the Fed does its part in supplying funds by purchasing Treasury debt, foreign central banks and investors have loaned us nearly twice what the Fed has, to the tune of $1.3 trillion. The daily borrowing needed to support our spending habits cannot last. It can be argued that even the financing of the Iraq war cannot be accomplished without the willingness of countries like China and Japan to loan us the necessary funds. Any shift, even minor, in this sentiment will send chills through the world financial markets. It will not go unnoticed, and every American consumer will be affected. invest Where To From Here? November 20, 2004    2004 Ron Paul 81:36 Few in Washington comprehend the nature of the crisis. But liberal Lawrence Summers, Clinton’s Secretary of the Treasury and now president of Harvard, perceptively warns of the danger that is fast approaching. He talks of, “A kind of global balance of financial terror” that we should be concerned about. He goes on to say: “there is surely something off about the world’s greatest power being the world’s greatest debtor. In order to finance prevailing levels of consumption and investment, must the United States be as dependent as it is on the discretionary acts of what are inevitably political entities in other countries?” An economist from the American Enterprise Institute also expressed concern by saying that foreign central banks “now have considerable ability to disrupt U.S. financial markets by simply deciding to refrain from buying further U.S. government paper.” invest Where To From Here? November 20, 2004    2004 Ron Paul 81:57 A Chinese news agency recently reported that the Chinese government made a $70 billion investment commitment in Iran for the development of natural gas resources. This kind of investment by a neighbor of Iran will be of great significance if the neo-cons have their way and we drag Iran into the Afghanistan and Iraqi quagmire. The close alliance between Iranian Shias and their allies in Iraq makes a confrontation with Iran likely, as the neo-cons stoke the fire of war in the region. invest U.S. Hypocrisy in Ukraine December 7, 2004    2004 Ron Paul 82:13 That is what I find so disturbing: there are so many cut-out organizations and sub-grantees that we have no idea how much US government money was really spent on Ukraine, and most importantly how it was spent. Perhaps the several examples of blatant partisan support that we have been able to uncover are but an anomaly. I believe Congress and the American taxpayers have a right to know. I believe we urgently need an investigation by the Government Accounting Office into how much US government money was spent in Ukraine and exactly how it was spent. I would hope very much for the support of Chairman Hyde, Chairman Lugar, Deputy Assistant Secretary Tefft, and my colleagues on the Committee in this request. invest Introducing The Identity Theft protection Act 4 January 2005    2005 Ron Paul 2:5 This act also forbids the Federal Government from creating national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions among American citizens. At the very end of the 108th Congress, this body established a de facto national ID card with a provision buried in the “intelligence” reform bill mandating Federal standards for drivers’ licenses, and mandating that Federal agents only accept a license that conforms to these standards as a valid ID. invest 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. invest Government IDs and Identity Theft January 6, 2005    2005 Ron Paul 5:5 This act also forbids the federal government from creating national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions among American citizens. At the very end of the 108th Congress, this body established a de facto national ID card with a provisions buried in the “intelligence” reform bill mandating federal standards for drivers’ licenses, and mandating that federal agents only accept a license that conforms to these standards as a valid ID. invest America’s Foreign Policy Of Intervention 26 January 2005    2005 Ron Paul 6:13 We have spent over $200 billion in these occupations, as well as hundreds of billions of dollars here at home hoping to be safer. We have created the Department of Homeland Security, passed the PATRIOT Act, and created a new super CIA agency. Our government is now permitted to monitor the Internet, read our mail, search us without proper search warrants, to develop a national ID card, and to investigate what people are reading in libraries. Ironically, illegal aliens flow into our country and qualify for driver’s licenses and welfare benefits with little restraint. invest Introducing The Make College Affordable Act 26 January 2005    2005 Ron Paul 11:4 Helping the American people use their own money to ensure every qualified American can receive a college education is one of the best investments this Congress can make in the future. I therefore urge my colleagues to help strengthen America by ensuring more Americans can obtain college educations by cosponsoring the Make College Affordable Act. invest Tribute To Dr. Andrew Messenger, A True Friend Of Liberty 6 April 2005    2005 Ron Paul 37:10 Clearly, Dr. Messenger has not only contributed to society by raising six successful children, he has made provisions for future generations through investing in the long-term mission of the Leadership Institute. invest Tribute To Dr. Andrew Messenger, A True Friend Of Liberty 6 April 2005    2005 Ron Paul 37:11 Thank you, Dr. Messenger, for investing in the lives of the future leaders of this country through your faithful and generous support of the Leadership Institute. invest Repeal Sarbanes-Oxley! April 14, 2005    2005 Ron Paul 39:1 Mr. Speaker, I rise to introduce the Due Process and Economic Competitiveness Restoration Act, which repeals Section 404 of the Sarbanes-Oxley Act. Sarbanes-Oxley was rushed into law in the hysterical atmosphere surrounding the Enron and WorldCom bankruptcies, by a Congress more concerned with doing something than doing the right thing. Today, American businesses, workers, and investors are suffering because Congress was so eager to appear “tough on corporate crime.” Sarbanes-Oxley imposes costly new regulations on the financial services industry. These regulations are damaging American capital markets by providing an incentive for small US firms and foreign firms to deregister from US stock exchanges. According to a study by the prestigious Wharton Business School, the number of American companies deregistering from public stock exchanges nearly tripled during the year after Sarbanes-Oxley became law, while the New York Stock Exchange had only 10 new foreign listings in all of 2004. invest Repeal Sarbanes-Oxley! April 14, 2005    2005 Ron Paul 39:3 Many of the major problems stem from section 404 of Sarbanes-Oxley, which requires Chief Executive Officers to certify the accuracy of financial statements. It also requires that outside auditors “attest to” the soundness of the internal controls used in preparing the statements-- an obvious sop to auditors and accounting firms. The Public Company Accounting Oversight Board defines internal controls as “controls over all significant accounts and disclosures in the financial statements.” According to John Berlau, a Warren Brookes Fellow at the Competitive Enterprise Institute, the definition of internal controls is so broad that a CEO possibly could be found liable for not using the latest version of Windows! Financial analysts have identified Section 404 as the major reason why American corporations are hoarding cash instead of investing it in new ventures. invest Military Appropriations 26 May 2005    2005 Ron Paul 53:2 I do retain strong concerns over some of the funds appropriated under the Military Construction and North Atlantic Treaty Organization Security Investment Program sections of this bill. invest 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. invest The Republican Congress Wastes Billions Overseas July 20, 2005    2005 Ron Paul 86:8 Mr. Speaker, this is a shameful day for the US Congress. We are taking billions out of the pockets of Americans and sending the money overseas in violation of the Constitution. These are billions that will not be available for investment inside the United States: investment in infrastructure, roads, new businesses, education. These are billions that will not be available to American families, to take care of their children or senior relatives, or to give to their churches or favorite charities. We must not continue to spend money like there is no tomorrow. We are going broke, and bills like this are like a lead foot on the accelerator toward bankruptcy. invest Amend The PATRIOT Act — Part 1 21 July 2005    2005 Ron Paul 87:1 Mr. PAUL. Mr. Chairman, I offer an amendment. The Acting CHAIRMAN. The Clerk will designate the amendment. mBR> The text of the amendment is as follows: Amendment No. 19 offered by Mr. PAUL: Add at the end the following: mBR> SEC. 17. SENSE OF CONGRESS RELATING TO LAWFUL POLITICAL ACTIVITY. It is the sense of Congress that the Federal Government should not investigate an American citizen for alleged criminal conduct solely on the basis of the citizen’s membership in a non-violent political organization or the fact that the citizen was engaging in other lawful political activity. The Acting CHAIRMAN. Pursuant to House Resolution 369, the gentleman from Texas (Mr. PAUL) and a Member opposed each will control 5 minutes. The Chair recognizes the gentleman from Texas (Mr. PAUL). invest Amend The PATRIOT Act — Part 1 21 July 2005    2005 Ron Paul 87:3 Mr. Chairman, this is a straightforward amendment intended to modestly improve the PATRIOT Act, and let me just state exactly what it does. “It is the sense of Congress that the Federal government should not investigate any American citizen for alleged criminal conduct solely on the basis of citizen’s membership in a nonviolent political organization or the fact that the citizen was engaging in other lawful political activity.” invest Amend The PATRIOT Act — Part 2 21 July 2005    2005 Ron Paul 88:10 H.R. 3199 continues to violate the constitution by allowing searches and seizures of American citizens and their property without a warrant issued by an independent court upon a finding of probable cause. The drafters of the Bill of Rights considered this essential protection against an overreaching government. For example, Section 215 of the PATRIOT Act, popularly known as the libraries provision, allows Foreign Intelligence Surveillance Courts, whose standards hardly meet the constitutional requirements of the Fourth Amendment, to issue warrants for individual records, including medical and library records. H.R. 3199 does reform this provision by clarifying that it can be used to acquire the records of an American citizen only during terrorist investigations. However, this marginal change fails to bring the section up to the constitutional standard of probable cause. invest Amend The PATRIOT Act — Part 2 21 July 2005    2005 Ron Paul 88:11 Requiring a showing of probable cause before a warrant may be issued will in no way hamper terrorist investigations. For one thing, federal authorities would still have numerous tools available to investigate and monitor the activities of non-citizens suspected of terrorism. Second, restoring the Fourth Amendment protections would in no way interfere with the provisions of the PATRIOT Act that removed the firewalls that prevented the government’s law enforcement and intelligence agencies from sharing information. invest Amend The PATRIOT Act — Part 2 21 July 2005    2005 Ron Paul 88:12 The probable cause requirements will not delay a terrorist investigation. Preparations can be made for the issuance of a warrant in the event of an emergency and allowances can be made for cases where law enforcement does not have time to obtain a warrant. In fact, a requirement that law enforcement demonstrate probable cause may help law enforcement focus their efforts on true threats, thus avoiding the problem of information overload that is handicapping the government’s efforts to identify sources of terrorists’ financing. invest Amend The PATRIOT Act — Part 2 21 July 2005    2005 Ron Paul 88:13 The requirement that law enforcement demonstrate probable cause before a judge preserves the Founders’ system of checks and balances that protects against one branch gathering too much power. The Founders recognized that one of the chief dangers to liberty was the concentration of power in a few hands, which is why they carefully divided power among the three branches. I would remind those of my colleagues who will claim that we must set aside the constitutional requirements during war that the founders were especially concerned about the consolidation of power during times of war and national emergencies. My colleagues should also keep in mind that PATRIOT Act powers have already been used in non-terrorism related cases, most notably in a bribery investigation in Nevada. invest Don’t Reauthorize the Patriot Act July 21, 2005    2005 Ron Paul 89:4 HR 3199 continues to violate the constitution by allowing searches and seizures of American citizens and their property without a warrant issued by an independent court upon a finding of probable cause. The drafters of the Bill of Rights considered this essential protection against an overreaching government. For example, Section 215 of the PATRIOT Act, popularly known as the library provision, allows Foreign Intelligence Surveillance Courts, whose standards hardly meet the constitutional requirements of the Fourth Amendment, to issue warrants for individual records, including medical and library records. HR 3199 does reform this provision by clarifying that it can be used to acquire the records of an American citizen only during terrorist investigations. However, this marginal change fails to bring the section up to the constitutional standard of probable cause. invest Don’t Reauthorize the Patriot Act July 21, 2005    2005 Ron Paul 89:5 Requiring a showing of probable cause before a warrant may be issued will in no way hamper terrorist investigations. For one thing, federal authorities still would have numerous tools available to investigate and monitor the activities of non-citizens suspected of terrorism. Second, restoring the Fourth Amendment protections would in no way interfere with the provisions of the PATRIOT Act removing the firewalls that prevented the government’s law enforcement and intelligence agencies from sharing information. invest Don’t Reauthorize the Patriot Act July 21, 2005    2005 Ron Paul 89:6 The probable cause requirements will not delay a terrorist investigation. Preparations can be made for the issuance of a warrant in the event of an emergency, and allowances can be made for cases where law enforcement does not have time to obtain a warrant. In fact, a requirement that law enforcement demonstrate probable cause may help law enforcement focus their efforts on true threats, thus avoiding the problem of information overload that is handicapping the government’s efforts to identify sources of terrorist financing. invest Don’t Reauthorize the Patriot Act July 21, 2005    2005 Ron Paul 89:7 The requirement that law enforcement demonstrate probable cause before a judge preserves the Founders’ system of checks and balances that protects against one branch gathering too much power. The Founders recognized that one of the chief dangers to liberty was the concentration of power in a few hands, which is why they carefully divided power among the three branches. I would remind those of my colleagues who claim that we must set aside the constitutional requirements during war that the founders were especially concerned about the consolidation of power during times of war and national emergences. My colleagues should also keep in mind that PATRIOT Act powers have already been used in non-terrorism related cases, most notably in a bribery investigation in Nevada. invest Introduction Of The Cures Can Be Found Act 26 July 2005    2005 Ron Paul 91:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Cures Can Be Found Act. This legislation promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research, and provides a $2,000 tax credit to new parents for the donation of umbilical cord blood that can be used to extract stem cells. invest Why We Fight September 8, 2005    2005 Ron Paul 95:68 Though these problems are serious and threaten our freedoms and way of life, there’s every reason to work for the traditional constitutional foreign policy that promotes peace over war, while not being tempted to mold the world in our image through force. We should not forget that what we did not achieve by military force in Vietnam, was essentially achieved with the peace that came from our military failure and withdrawal of our armed forces. Today, through trade and peace, U.S. investment and economic cooperation has westernized Vietnam far more than our military efforts. invest 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. invest Introduction Of The Affordable Gas Price Act 6 October 2005    2005 Ron Paul 99:4 Instead of expanding government, Congress should repeal Federal laws and policies that raise the price of gas, either directly through taxes or indirectly through regulations that discourage the development of new fuel sources. This is why my legislation repeals the Federal moratorium on offshore drilling and allows oil exploration in the ANWR reserve in Alaska. My bill also ensures that the National Environmental Policy Act’s environmental impact statement requirement will no longer be used as a tool to force refiners to waste valuable time and capital on nuisance litigation. The Affordable Gas Price Act also provides tax incentives to encourage investment in new refineries. invest Staying or Leaving October 7, 2005    2005 Ron Paul 102:9 We lost a war in Vietnam, and the domino theory that communism would spread throughout southeast Asia was proven wrong. Today, Vietnam accepts American investment dollars and technology. We maintain a trade relationship with Vietnam that the war never achieved. invest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:3 This implicit promise by the government to bail out the GSEs in times of economic difficulty helps the GSEs attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt. This is why I am offering an amendment to cut off this line of credit. I hope my colleagues join me in protecting taxpayers from having to bail out Fannie Mae and Freddie Mac when the housing bubble bursts. invest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:4 The connection between the GSEs and the government helps isolate the GSEs’ managements from market discipline. This isolation from market discipline is the root cause of the mismanagement occurring at Fannie and Freddie. After all, if investors did not believe that the Federal Government would bail out Fannie and Freddie if the GSEs faced financial crises, then investors would have forced the GSEs to provide assurances that the GSEs are following accepted management and accounting practices before investors would consider Fannie and Freddie to be good investments. invest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:5 Federal Reserve Chairman Alan Greenspan has expressed concern that the government subsidies provided to the GSEs makes investors underestimate the risk of investing in Fannie Mae and Freddie Mac. Although he has endorsed many of the regulatory “solutions” being considered here today, Chairman Greenspan has implicitly admitted the subsidies are the true source of the problems with Fannie and Freddie. invest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:6 Mr. Chairman, H.R. 1461 compounds these problems by further insulating the GSEs from market discipline. By creating a “world-class” regulator, Congress would send a signal to investors that investors need not concern themselves with investigating the financial health and stability of Fannie and Freddie since a “world-class” regulator is performing that function. invest 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. invest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:12 Ironically, by transferring the risk of widespread mortgage defaults to the taxpayers through government subsidies and convincing investors that all is well because a “world- class” regulator is ensuring the GSEs’ soundness, the government increases the likelihood of a painful crash in the housing market. This is because the special privileges of Fannie and Freddie have distorted the housing market by allowing Fannie and Freddie to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive uses into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans. invest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:13 Despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policy of diverting capital into housing creates a short-term boom in housing. Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have been had government policy not actively encouraged over-investment in housing. invest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:15 Perhaps the Federal Reserve can stave off the day of reckoning by purchasing the GSEs’ debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary and painful market corrections will only deepen the inevitable fall. The more people are invested in the market, the greater the effects across the economy when the bubble bursts. invest Government Sponsored Enterprises 26 October 2005    2005 Ron Paul 108:17 In conclusion, H.R. 1461 compounds the problems with the GSEs and may increases the damage that will be inflicted by a bursting of the housing bubble. This is because this bill creates a new unaccountable regulator and introduces further distortions into the housing market via increased regulatory power. H.R. 1461 also violates the Constitution by creating yet another unaccountable regulator with quasi-executive, judicial, and legislative powers. Instead of expanding unconstitutional and market distorting government bureaucracies, Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bailout investors who were misled by foolish government interference in the market. invest Big Lies and Little Lies November 2, 2005    2005 Ron Paul 116:1 Scooter Libby has been indicted for lying. Many suspect Libby, and perhaps others, deliberately outed Joe Wilson’s wife as a covert CIA agent. This was done to punish and discredit Wilson for bringing attention to the false information regarding Iraq’s supposed efforts to build a nuclear weapon — information made public in President Bush’s State of the Union message in January 2003. Special Prosecutor Patrick Fitzgerald was chosen to determine if this revelation regarding Valerie Plame, Wilson’s wife, violated the Intelligence Identification Protection Act. The actual indictment of Libby did not claim such a violation occurred. Instead, he has been charged with lying and participating in a cover-up during the two-year investigation. I believe this is a serious matter that should not be ignored, but it is not an earth-shattering event. invest Big Lies and Little Lies November 2, 2005    2005 Ron Paul 116:4 The lies Scooter Libby may or may not have told deserve a thorough investigation. But in the scheme of things, the indictment about questions regarding the release of Valerie Plame’s name, a political dirty trick, is minor compared to the disinformation about weapons of mass destruction and other events that propelled us into an unnecessary war. Its costs — in life, suffering, and money — have proven to be prohibitive. invest Big Lies and Little Lies November 2, 2005    2005 Ron Paul 116:6 The decision to go to war is profound. It behooves Congress to ask more questions and investigate exactly how the President, Congress, and the people were misled into believing that invading Iraq was necessary for our national security. invest Terrorism Insurance Program 7 December 2005    2005 Ron Paul 125:9 H.R. 3210 compounds the danger to taxpayers because of what economists call the “moral hazard” problem. A moral hazard is created when individuals have the costs incurred from a risky action subsidized by a third party. In such a case individuals may engage in unnecessary risks or fail to take steps to minimize their risks. After all, if a third party will bear the costs of negative consequences of risky behavior, why should individuals invest their resources in avoiding or minimizing risk? invest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:13 Dollar diplomacy, a policy instituted by William Howard Taft and his Secretary of State, Philander C. Knox, was designed to enhance U.S. commercial investments in Latin America and the Far East. McKinley concocted a war against Spain in 1898 and Teddy Roosevelt’s corollary to the Monroe Doctrine preceded Taft’s aggressive approach to using the U.S. dollar and diplomat influence to secure U.S. investments abroad. invest The End Of Dollar Hegemony 15 February 2006    2006 Ron Paul 3:98 Is it any wonder jobs go overseas? True capital only comes from savings, and Americans save nothing. We only borrow and consume. A counterfeiter has no incentive to take his newly created money and build factories. The incentive for Americans is to buy consumers goods from other countries whose people are willing to save and invest in their factories and jobs. The only way we can continue this charade is to borrow excess dollars back from the foreign governments who sell us goods and perpetuate the pretense of wealth that we enjoy. invest Introduction Of The Sunshine In Monetary Policy Act 7 March 2006    2006 Ron Paul 10:2 The Federal Reserve Board has recently announced it will stop reporting M3, thus depriving Congress and the American people of the most comprehensive measure of the money supply. The cessation of Federal Reserve’s weekly M3 report will make it more difficult for policymakers, economists, investors, and the general public to learn the true rate of inflation. As Nobel laureate Milton Friedman famously said, “inflation is always and everywhere a monetary phenomenon.” Therefore, having access to a comprehensive measure of the money supply like M3 is a vital tool for those seeking to track inflation. Thorsten Polleit, honorary professor at HfB-Business School of Finance and Management, in his article “Why Money Supply Matters” posted on the Ludwig von Mises Institute’s website mises.org, examined the relationship between changes in the money supply and inflation and concluded that “money supply signals might actually be far more important for inflation — even in the short-term — than current central bank practice suggests,” thus demonstrating the importance of the M3 aggregate. invest Introduction Of The Sunshine In Monetary Policy Act 7 March 2006    2006 Ron Paul 10:5 Economists and others who are following M3 have become increasingly concerned about inflation because last year the rate of M3 rose almost twice as fast as other monetary aggregates. This suggests that the inflation picture is not as rosy as the Federal Reserve would like Congress and the American people to believe. Discontinuing reporting the monetary aggregate that provides the best evidence that the Federal Reserve Board has not conquered inflation suggests to many people that the government is trying to conceal information about the true state of the economy from the American people. Brad Conrad, a professor of investing who has also worked with IBM, CDC, and Amdahl, spoke for many when he said, “It [the discontinuance of M3] is unsettling. It detracts from the transparency the Fed preaches and adds to the suspicion that the Fed wants to hide anything showing money growth high enough to fuel inflation...” Discontinuing reporting M3 will only save 0.00000699% of the Federal Reserve Board’s yearly budget. This savings hardly seems to justify depriving the American people of an important measurement of money supply, especially since Congress has tasked the Federal Reserve Board with reporting on monetary aggregates. invest Tribute To Harry Browne 15 March 2006    2006 Ron Paul 16:2 Harry first came to public attention in the 1970 when he penned a best-selling investment book, How You Can Profit From the Coming Devaluation, which foresaw President Richard Nixon’s abandonment of the gold standard and the ways the American economy would be damaged by the inevitable resulting inflation. Harry’s book helped many Americans survive, and even profit, during the economic troubles of the seventies. It also introduced millions of people to the insights developed by followers of the Austrian school of economics regarding the dangers fiat currency poses to both prosperity and liberty posed by fiat. How You Can Profit From the Coming Devaluation is generally recognized as the founding document of the hard money movement, which combined the insights of the Austrian economists with a practical investment strategy. invest Iran, The Next Neocon Target 5 April 2006    2006 Ron Paul 21:33 Even though ElBaradei and his IAEA investigations have found no violations of the NPT required IAEA safeguard agreement, the Iran Freedom Support Act still demands that Iran prove they have no nuclear weapons, refusing to acknowledge that proving a negative is impossible. Let there be no doubt, though, the words “regime change” are not found in the bill. That is precisely what they are talking about. Neoconservative Michael Ladine, one of the architects of the Iraq fiasco, testifying before the International Relations Committee in favor of the Iraq Freedom Support Act stated it plainly. “I know some members would prefer to dance around the explicit declaration of regime change as the policy of this country, but anyone looking closely at the language and the context of the Iraq Freedom Support Act and its close relative in the Senate can clearly see that this is, in fact, the essence of the matter. invest 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. invest 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. invest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:5 It is more accurate to say that one might invest in a gold or silver mining company, where management, labor costs, and the nature of new discoveries all play a vital role in determining the quality of the investment and the profits made. invest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:6 Buying gold and holding it is somewhat analogous to converting one’s saving into $100 bills and hiding them under the mattress, yet not exactly the same. Both gold and dollars are considered money, and holding money does not qualify as an investment. There is a big difference between the two, however, since by holding paper money, one loses purchasing power. The purchasing power of commodity money, that is gold, however, goes up if the government devalues the circulating paper currency. invest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:7 Holding gold is protection or insurance against government’s proclivity to debase the currency. The purchasing power of gold goes up not because it is a so-called good investment. It goes up in value only because the paper currency goes down in value. In our current situation, that means the dollar. invest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:10 The point is that most who buy gold do so to protect against the depreciating currency, rather than as an investment in the classical sense. Americans understand this less than citizens of other countries. Some nations have suffered from severe monetary inflation that literally led to the destruction of their national currency. invest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:30 Already we see this trend developing, which surely will accelerate in the not- too-distant future. Part of this reaction will be from those who seek a haven to protect their wealth, not invest, by treating gold and silver as universal and historic money. This means holding fewer dollars that are decreasing in value while holding gold as it increases in value. invest Gold And The U.S. Dollar 25 April 2006    2006 Ron Paul 23:83 Holding gold helps preserve and store wealth; but technically, gold is not a true investment. invest Introduction Of The Steel Financing Fairness Act 15 June 2006    2006 Ron Paul 44:1 Mr. PAUL. Mr. Speaker, I rise to introduce the Steel Financing Fairness Act. This bill helps our Nation’s beleaguered steel industry by stopping the government from forcing American steel workers to subsidize their foreign competitors. Specifically, the bill prohibits the Overseas Private Investment Corporation (OPIC) and the Export-Import Bank (EXIMBANK) from providing any assistance to countries that subsidize their steel industries. The Steel Financing Fairness Act also instructs the Secretary of the Treasury to reduce America’s contribution to the International Monetary Fund (IMF) by a prorated share of the IMF’s assistance to countries that subsidize their steel industries. invest Society For Worldwide Interbank Financial Telecommunications 29 June 2006    2006 Ron Paul 49:2 According to investigative journalist James Bovard, writing in the Baltimore Sun on June 28, “[a] U.N. report on terrorist financing released in May 2002 noted that a ‘suspicious transaction report’ had been filed with the U.S. government over a $69,985 wire transfer that Mohamed Atta, leader of the hijackers, received from the United Arab Emirates. The report noted that ‘this particular transaction was not noticed quickly enough because the report was just one of a very large number and was not distinguishable from those related to other financial crimes.’ ” Congress should be skeptical, to say the least, that giving federal bureaucrats even more data to sift through will make the American people safer. invest Why Are Americans So Angry? June 29, 2006    2006 Ron Paul 52:62 Policy changes in wartime are difficult, for it is almost impossible for the administration to change course since so much emotional energy has been invested in the effort. That’s why Eisenhower ended the Korean War, and not Truman. That’s why Nixon ended the Vietnam War, and not LBJ. Even in the case of Vietnam the end was too slow and costly, as more then 30,000 military deaths came after Nixon’s election in 1968. It makes a lot more sense to avoid unnecessary wars than to overcome the politics involved in stopping them once started. I personally am convinced that many of our wars could be prevented by paying stricter attention to the method whereby our troops are committed to battle. I also am convinced that when Congress does not declare war, victory is unlikely. invest 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. invest Tribute To Bruce Farmer 12 July 2006    2006 Ron Paul 54:2 Mr. Farmer, a resident of Galveston, Texas, was a husband, father of four sons, entrepreneur, and community leader. Mr. Farmer’s career exemplifies the best features of American capitalism. Mr. Farmer was CEO of Farmer’s Copper Ltd., which he founded in 1978 as Farmer’s Copper and Industrial Supply. Under his leadership, Farmer’s Copper Ltd. grew into one of the nation’s largest privately owned copper and brass distributors, employing approximately 185 people in Galveston. Mr. Farmer began working in the metal fabrication business at the age of 14, when he went to work for Farmer’s Marine Copper Works, an engineering and fabrication firm founded by his father and uncle. Mr. Farmer was also CEO of the Four Winds Investments and a director of Moody National Bank invest Tribute To Bruce Farmer 12 July 2006    2006 Ron Paul 54:14 His willingness to invest in equipment, inventory and especially people has assured our success. His boundless energy and ever present optimism inspired us all. During industry downturns when others saw troubles, Bruce found opportunity. When everyone else was in the dark, Bruce found the light. That is how in a volatile and cyclical industry we have always prospered. invest Alternative Pluripotent Stem cell Therapies Enhancement Act 18 July 2006    2006 Ron Paul 57:5 In order to promote private medical research, I have introduced the Cures Can Be Found Act (H.R. 3444). H.R. 3444 promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research and providing a $2,000 tax credit to new parents for the donation of umbilical cord blood from which to extract stem cells. The Cures Can Be Found Act will ensure greater resources are devoted to this valuable research. The tax credit for donations of umbilical cord blood will ensure that medical science has a continuous supply of stem cells. Thus, this bill will help scientists discover new cures using stem cells and, hopefully, make routine the use of stem cells to treat formerly incurable diseases. invest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:38 We went into Vietnam and involved ourselves unnecessarily in the civil war to bring peace and harmony to that country. We lost 60,000 troops and spent hundreds of billions of dollars, yet failed to achieve victory. Ironically, since losing in Vietnam, we now have a better relationship with them than ever. We now trade, invest, travel and communicate with a unified Western- leaning country that is catching on quickly to capitalist ways. This policy, not military confrontation, is exactly what the Constitution permits and the Founders encouraged in our relationship with others. invest Big-Government Solutions Don’t Work 7 september 2006    2006 Ron Paul 74:62 It is estimated that over 12,000 fighters were trained in the camps we set up in Afghanistan. They were taught how to make bombs, carry out sabotage and use guerrilla war tactics, and now we are on the receiving end of this U.S.-financed program, hardly a good investment. It is difficult to understand why our policymakers aren’t more cautious in their effort to police the world once they realize how unsuccessful we have been. It seems they always hope that the next time our efforts won’t come flying back in our face. invest 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. invest Military Personnel Financial Services Protection Act 20 September 2006    2006 Ron Paul 82:2 This is the first time in recent memory that this committee has ever proposed banning a product that is fully permissible under current law and that — again according to testimony received by the committee — is used by thousands of senior military officials to facilitate their financial security. Specifically, we were told that the clients of First Command Financial Planning, the Texas-based company principally involved in this market, has invested $734.4 million aggregate in these accounts in 2004. The sales charge on that amount was about $44 million, or about six percent. What is the basis for outlawing a product that over half a million individuals, including half the flag officers on active duty at the time, had freely chosen? Do we really believe that individuals charged with the deployment of billions of dollars of military equipment, are not sophisticated enough to make their own financial decisions? invest Warrantless Wiretaps 28 september 2006    2006 Ron Paul 91:6 Warrantless wiretapping may hinder the ability to identify true threats to safety. This is because experience has shown that, when Congress makes it easier for the federal government to monitor the activities of Americans, there is a tendency to collect so much information that it becomes impossible to weed out the true threats. My colleagues should consider how the over-filing of “suspicious transaction reports” regarding financial transactions hampers effective anti-terrorism efforts. According to investigative journalist James Bovard, writing in the Baltimore Sun on June 28, “[a] U.N. report on terrorist financing released in May 2002 noted that a ‘suspicious transaction report’ had been filed with the U.S. government over a $69,985 wire transfer that Mohamed Atta, leader of the hijackers, received from the United Arab Emirates. The report noted that ‘this particular transaction was not noticed quickly enough because the report was just one of a very large number and was not distinguishable from those related to other financial crimes.’ ” Congress should be skeptical, to say the least, regarding the assertion that allowing federal bureaucrats to accumulate even more data without having to demonstrate a link between the data sought and national security will make the American people safer. invest Milton Friedman 6 December 2006    2006 Ron Paul 100:15 “When a young man is forced to serve at $45 a week, including the cost of his keep, of his uniforms, and his dependency allowances, and there are many civilian opportunities available to him at something like $100 a week, he is paying $55 a week in an implicit tax. . . . And if you were to add to those taxes in kind, the costs imposed on universities and colleges; of seating, housing, and entertaining young men who would otherwise be doing productive work; if you were to add to that the costs imposed on industry by the fact that they can only offer young men who are in danger of being drafted stopgap jobs, and cannot effectively invest money in training them; if you were to add to that the costs imposed on individuals of a financial kind by their marrying earlier or having children at an earlier stage, and so on; if you were to add all these up, there is no doubt at all in my mind that the cost of a volunteer force, correctly calculated, would be very much smaller than the amount we are now spending in manning our Armed Forces.” invest 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. invest Introducing The Make College Affordable Act 4 January 2007    2007 Ron Paul 6:4 Helping the American people use their own money to ensure every qualified American can receive a college education is one of the best investments this Congress can make in the future. I therefore urge my colleagues to help strengthen America by ensuring more Americans can obtain college educations by cosponsoring the Make College Affordable Act. invest Identity Theft Protection Act 5 January 2007    2007 Ron Paul 8:5 This act also forbids the Federal Government from creating national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions among American citizens. In 2005, this body established a de facto national ID card with provisions buried in the “intelligence” reform bill mandating Federal standards for drivers” licenses, and mandating that Federal agents only accept a license that conforms to these standards as a valid ID. invest Governmental Funding Of Embryonic Stem Cell Research 11 January 2007    2007 Ron Paul 11:4 In order to promote private medical research, I will introduce the Cures Can Be Found Act. The Cures Can Be Found Act promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research and providing a $2,000 tax credit to new parents for the donation of umbilical cord blood from which to extract stem cells. The Cures Can Be Found Act will ensure greater resources are devoted to this valuable research. The tax credit for donations of umbilical cord blood will ensure that medical science has a continuous supply of stem cells. Thus, this bill will help scientists discover new cures using stem cells and, hopefully, make routine the use of stem cells to treat formerly incurable diseases. invest Introduction Of The Cures Can be Found Act 12 January 2007    2007 Ron Paul 16:1 Mr. PAUL. Madam Speaker, I rise to introduce the Cures Can Be Found Act. This legislation promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research, and provides a $2,000 tax credit to new parents for the donation of umbilical cord blood that can be used to extract stem cells. invest 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. invest The Port Of Galveston: A Source Of Economic Growth For Texas And The Nation 1 March 2007    2007 Ron Paul 33:4 The increase in cruise-related income has presented the Port of Galveston with the challenge of ensuring the port is capable of continuing to meet the needs of the cruise business. The Port of Galveston’s management is committed to ensuring the port continues to grow and change to meet the demands of the port’s expanding cruise and other businesses. Since 2000, approximately $45 million has been invested in the port’s cruise facilities. It is expected that revenues from cruise operations will give the port an opportunity to move forward and leverage earlier financing to provide for additional maintenance, repair, and capital construction in the port. invest Shareholder Vote On Executive Compensation Act 18 April 2007    2007 Ron Paul 43:5 In a free market, shareholders who are concerned about CEO compensation are free to refuse to invest in corporations that do not provide sufficient information regarding how CEO salaries are set or do not allow shareholders to have a say in setting compensation packages. invest Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:3 This implicit promise by the Government to bail out the GSEs in times of economic difficulty helps the GSEs attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the Government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt. invest Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:4 The connection between the GSEs and the Government helps isolate the GSEs’ managements from market discipline. This isolation from market discipline is the root cause of the mismanagement occurring at Fannie and Freddie. After all, if investors did not believe that the Federal Government would bail out Fannie and Freddie if the GSEs faced financial crises, then investors would have forced the GSEs to provide assurances that the GSEs are following accepted management and accounting practices before investors would consider Fannie and Freddie to be good investments. invest Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:5 Federal Reserve Chairman Alan Greenspan has expressed concern that the government subsidies provided to the GSEs makes investors underestimate the risk of investing in Fannie Mae and Freddie Mac. Although he has endorsed many of the regulatory “solutions” being considered here today, Chairman Greenspan has implicitly admitted the subsidies are the true source of the problems with Fannie and Freddie. invest Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:6 Mr. Chairman, H.R. 1427 compounds these problems by further insulating the GSEs from market discipline. By creating a “world-class” regulator, Congress would send a signal to investors that investors need not concern themselves with investigating the financial health and stability of Fannie and Freddie since a “world-class” regulator is performing that function. invest 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. invest Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:12 Ironically, by transferring the risk of widespread mortgage defaults to the taxpayers through Government subsidies and convincing investors that all is well because a “world- class” regulator is ensuring the GSEs’ soundness, the Government increases the likelihood of a painful crash in the housing market. This is because the special privileges of Fannie and Freddie have distorted the housing market by allowing Fannie and Freddie to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive uses into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans. invest Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:15 Perhaps the Federal Reserve can stave off the day of reckoning by purchasing the GSEs’ debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary and painful market corrections will only deepen the inevitable fall. The more people are invested in the market, the greater the effects across the economy when the bubble bursts. invest Federal Housing Finance Reform Act Of 2007 17 May 2007    2007 Ron Paul 52:17 In conclusion, H.R. 1427 compounds the problems with the GSEs and may increase the damage that will be inflicted by a bursting of the housing bubble. This is because this bill creates a new unaccountable regulator and introduces further distortions into the housing market via increased regulatory power. H.R. 1427 also violates the Constitution by creating yet another unaccountable regulator with quasi-executive, judicial, and legislative powers. Instead of expanding unconstitutional and market distorting government bureaucracies, Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bailout investors who were misled by foolish Government interference in the market. invest The Affordable Gas Price Act 21 May 2007    2007 Ron Paul 54:4 Instead of expanding government, Congress should repeal federal laws and polices that raise the price of gas, either directly through taxes or indirectly though regulations that. discourage the development of new fuel sources. This is why my legislation repeals the federal moratorium on offshore drilling and allows oil exploration in the ANWR reserve in Alaska. My bill also ensures that the National Environmental Policy Act’s environmental impact statement requirement will no longer be used as a tool to force refiners to waste valuable time and capital on nuisance litigation. The Affordable Gas Price Act also provides tax incentives to encourage investment in new refineries. invest Unanticipated Good results (When We leave) 6 June 2007    2007 Ron Paul 57:9 After we left Vietnam under dire circumstances, chaos continued, but no more American lives were lost. But, subsequently, we and the Vietnamese have achieved in peace what could not be achieved in war. We now are friends. We trade with each other, and we invest in Vietnam. The result proves the sound advice of the Founders: Trade in friendship with all nations, entangling alliances with none. Example and persuasion is far superior to force of arms for promoting America’s goodness. invest Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:2 The Federal Reserve Board ceased reporting M3 on March 22, 2006, thus depriving Congress and the American people of the most comprehensive measure of the money supply. The cessation of the Federal Reserve’s weekly M3 report will make it more difficult for policymakers, economists, investors, and the general public to learn the true rate of inflation. As Nobel laureate Milton Friedman famously said, “inflation is always and everywhere a monetary phenomenon.” Therefore, having access to a comprehensive measure of the money supply like M3 is a vital tool for those seeking to track inflation. Thorsten Polleit, honorary professor at HfB-Business School of Finance and Management, in his article “Why Money Supply Matters” posted on the Ludwig von Mises Institute’s Web site mises.org, examined the relationship between changes in the money supply and inflation and concluded that “money supply signals might actually be far more important for inflation — even in the short-term — than current central bank practice suggests,” thus demonstrating the importance of the M3 aggregate. invest Introduction Of The Sunshine In Monetary Policy Act 15 June 2007    2007 Ron Paul 66:5 Economists and others who are following M3 have become increasingly concerned about inflation because in 2005 the rate of M3 rose almost twice as fast as other monetary aggregates. This suggests that the inflation picture is not as rosy as the Federal Reserve would like Congress and the American people to believe. Discontinuing reporting the monetary aggregate that provides the best evidence that the Federal Reserve Board has not conquered inflation suggested to many people that the government was trying to conceal information about the true state of the economy from the American people. Brad Conrad, a professor of investing who has also worked with IBM, CDC, and Amdahl, spoke for many when he said, “It [the discontinuance of M3] is unsettling. It detracts from the transparency the Fed preaches and adds to the suspicion that the Fed wants to hide anything showing money growth high enough to fuel inflation . . .” invest Opening Statement – Committee on Financial Services – Subcommittee: Domestic and International Monetary Policy, Trade and Technology – Remittance Hearing 17 June 2007    2007 Ron Paul 68:1 It is clear to most people that remittances provide a significant economic boost to many South American and Latin American countries. Remittance flows to some countries dwarf foreign direct investment and foreign aid and have a beneficial effect on economic development, enabling low-income families to better their situations. The effect of remittances on development showcases the beneficial effects of market-based interaction to improve peoples' lives. invest Darfur Accountability and Divestment Act 30 July 2007    2007 Ron Paul 77:4 This bill would fail in its aim of influencing the Government of the Sudan, and would likely result in the exact opposite of its intended effects. The regime in Khartoum would see no loss of oil revenues, and the civil conflict will eventually flare up again. The unintended consequences of this bill on American workers, investors, and companies need to be considered as well. Forcing American workers to divest from companies which may only be tangentially related to supporting the Sudanese government could have serious economic repercussions which need to be taken into account. invest Terrorism Insurance 19 september 2007    2007 Ron Paul 89:9 H.R. 3210 compounds the danger to taxpayers because of what economists call the “moral hazard” problem. A moral hazard is created when individuals have the costs incurred from a risky action subsidized by a third party. In such a case individuals may engage in unnecessary risks or fail to take steps to minimize their risks. After all, if a third party will bear the costs of negative consequences of risky behavior, why should individuals invest their resources in avoiding or minimizing risk? invest 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. invest House Financial Services Committee – Subcommittee on Domestic and International Monetary Policy 17 October 2007    2007 Ron Paul 99:3 While I empathize with the investors who have lost money through the Yukos incident, the fact remains that markets are fraught with risk. Our loose monetary policy and stimulation of credit have led to expectations of permanent positive economic growth. The technology bubble and the housing bubble have caused many to believe that markets can only go up. When bubbles burst, when stocks decline, something must have gone awry, and the government is called upon to right the wrong. invest House Financial Services Committee – Subcommittee on Domestic and International Monetary Policy 17 October 2007    2007 Ron Paul 99:4 While many innocent investors are lured into the stock market as a result of our flawed expansionary government policies leading to visions of ever-increasing wealth, and may not be entirely at fault for their losses, the principle of caveat emptor seems to have been forgotten. In the case of a burst asset bubble or a stock's decline in price, some investors will lose out. It might be painful, it may have come about through injustice and government meddling, but government wrongdoing cannot be undone by more government wrongdoing. invest House Financial Services Committee – Subcommittee on Domestic and International Monetary Policy 17 October 2007    2007 Ron Paul 99:5 Neither a bailout, as in the case of the housing bubble, nor attempted government pressure on a foreign government, as in the case of Yukos, are appropriate reactions to the losses of investors. I wish the investors affected in the Yukos incident well, but urge my colleagues to resist the temptation to intervene in Russia's internal affairs. invest Question Of The Privileges Of The House 6 November 2007    2007 Ron Paul 102:2 I have always been strongly in favor of vigorous congressional oversight of the executive branch, and I have lamented our abrogation of these Constitutional obligations in recent times. I do believe, however, that this legislation should proceed through the House of Representatives following regular order, which would require investigation and hearings in the House Judiciary Committee before the resolution proceeds to the floor for a vote. This time- tested manner of moving impeachment legislation may slow the process, but in the long run it preserves liberty by ensuring that the House thoroughly deliberates on such weighty matters. In past impeachments of high officials, including those of Presidents Nixon and Clinton, the legislation had always gone through the proper committee with full investigation and accompanying committee report. invest Statement Before the Joint Economic Committee 8 November 2007    2007 Ron Paul 103:3 The implicit government backing of Fannie Mae and Freddie Mac provides investors an incentive to provide funds to Fannie and Freddie that otherwise would have been put to use in other sectors of the economy. It was this flood of investor capital that helped to fuel the housing bubble. invest Statement Before the Joint Economic Committee 8 November 2007    2007 Ron Paul 103:5 When this requirement is minimized or eliminated, you introduce a new class of homebuyers, people who are unable to budget and save for the purchase of a home, or who should wait for a few years until they have saved enough to purchase a home. Federal policies have encouraged investors, lenders, and brokers to cater to these people, so it is no surprise that market actors came up with ever more sophisticated means of bringing these people into the real estate market. invest 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. invest Introducing The Free Competition In Currency Act 13 December 2007    2007 Ron Paul 110:3 Due to nearly a century of inflationary monetary policy on the part of the Federal Reserve, the U.S. dollar stands at historically low levels. Investors around the world are shunning the dollar, and millions of Americans see their salaries, savings accounts, and pensions eroded away by rising inflation. We stand on the precipice of an unprecedented monetary collapse, and as a result many people have begun to look for alternatives to the dollar. invest Statement of Ron Paul on H.R. 5104 30 January 2008    2008 Ron Paul 3:5 We must remember that the original Foreign Intelligence Surveillance Act was passed in 1978 as a result of the U.S. Senate investigations into the federal government’s illegal spying on American citizens. Its purpose was to prevent the abuse of power from occurring in the future by establishing guidelines and prescribing oversight to the process. It was designed to protect citizens , not the government. The effect seems to have been opposite of what was intended. These recent attempts to “upgrade” FISA do not appear to be designed to enhance protection of our civil liberties, but to make it easier for the government to spy on us! invest TRIBUTE TO GULF COPPER & MANUFACTURING 14 February 2008    2008 Ron Paul 5:5 Gulf Copper also benefits the people of Galveston by serving as a model of corporate civic involvement. The company has helped promote Galveston’s Oceans of Opportunities Job Fair and works with Galveston College to promote Workforce Investment Act-funded welding and pipe fitting classes. invest “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. invest “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. invest “Monetary Policy and the State of the Economy” February 27, 2008    2008 Ron Paul 9:6 Many market actors therefore continue to undertake risky investments and expect that in the future, if their investments go south, that the Fed would and should intervene by creating more money and credit. The result of these bailouts is that each successive recession runs the risk of becoming larger and more severe, requiring a stronger reaction by the Fed. Eventually, however, the Fed begins to run out of room in which to maneuver, a problem we are facing today. invest Foreign Government Investment in the U.S. Economy and Financial Sector March 5, 2008    2008 Ron Paul 11:4 Rather than bemoaning the fact that foreign governments are using their dollars to purchase stakes in American companies, we should welcome the stability that such investment is bringing to our economy. While I am reluctant as anyone in this room to involve any government in any sort of intervention into the market, the fact remains that without injections of capital from foreign wealth funds the results of the subprime crisis would have been far worse for many financial firms. Even now we read that Citigroup, despite the massive funding it has received from sovereign wealth funds, is in danger of collapse unless it receives additional funding. invest Foreign Government Investment in the U.S. Economy and Financial Sector March 5, 2008    2008 Ron Paul 11:5 I have always been a staunch advocate of abandoning our loose monetary policy and facing the consequences now, rather than continuing easy money in the hopes of never having to face a recession. Now that it is clear that decades of Federal Reserve monetary manipulation have led to a severe recession, the thought of sovereign wealth funds investing in the financial sector holds far more appeal than that of a complete collapse of major industry players which would cause catastrophic effects throughout the economy. invest 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. invest Hearing on “The Economic Outlook” April 2, 2008    2008 Ron Paul 18:4 Back in the 1970s, government-caused inflation reached levels high enough that the Nixon administration decided to implement wage and price controls. Placing blame on greedy speculators, unscrupulous mortgage originators, or panicky investors, is a common reaction on the part of government. invest Statement Before the Financial Services Committee, On UIGEA April 2, 2008    2008 Ron Paul 19:3 The proper role of the federal government is not that of a nanny, protecting citizens from any and every potential negative consequence of their actions. Although I personally believe gambling to be a dumb waste of money, American citizens should be just as free to spend their money playing online poker as they should be able to buy a used car, enter into a mortgage, or invest in a hedge fund. Risk is inherent in any economic activity, and it is not for the government to determine which risky behaviors Americans may or may not engage in. invest CONGRESS MUST ACT TO HELP SHRIMPERS 19 June 2008    2008 Ron Paul 36:4 The problems shrimpers face are compounded by foreign competitors who are taking advantage of the government-created vulnerabilities in the American shrimp industry. Adding insult to injury, the federal government is forcing American shrimpers to subsidize their competitors through international agencies such as the Overseas Private Investment Corporation, the Export-Import Bank, and the International Monetary Fund! In fact, United States taxpayers have provided over $16,500,000,000 to the home countries of the leading foreign competitors of American shrimpers since 1999. invest DO NOT BELIEVE THE U.S. FEAR FACTOR PROPAGANDA AS IT RELATES TO OUR FOREIGN POLICY 26 June 2008    2008 Ron Paul 40:7 The Iranians have not been working on a nuclear weapon since 2003. They say they’re enriching uranium, but there’s no evidence whatsoever that they’re enriching uranium for weapons purposes. They may well be enriching uranium for peaceful purposes, and that is perfectly legal. They have been a member of the nonproliferation treaties, and they are under the investigation of the IAEA, and Alberidy last verified in the last year there have been nine unannounced investigations and examinations of the uranium nuclear structure, and they have never been found to be in violation. Yet this country and Israel are talking about a preventive war starting bombing for this reason without negotiation, without talks. invest Statement: “Something Big is Happening” 9 July 2008    2008 Ron Paul 42:20 The mistakes made with excessive credit at artificially low rates are huge, and the market is demanding a correction. This involves excessive debt, misdirected investments, over-investments, and all the other problems caused by the government when spending the money they should never have had. Foreign militarism, welfare handouts and $80 trillion entitlement promises are all coming to an end. We don’t have the money or the wealth-creating capacity to catch up and care for all the needs that now exist because we rejected the market economy, sound money, self reliance and the principles of liberty. invest 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 , invest 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 45:3 “As tensions between the U.S. and Iran persist, Washington and its allies are using an investigation into a 1994 terrorist attack in Argentina to maintain pressure on the Iranian regime. “Behind the scenes, Bush administration officials are encouraging the probe, which centers on the bombing of a Jewish community center in Buenos Aires . One U.S. goal is to cause legal problems for some of Iran ’s political leaders. Administration officials also hope to use the matter to highlight Iran ’s alleged role in financing and supporting terrorism around the world.” invest Humphrey Hawkins Hearing on Monetary Policy July 16, 2008    2008 Ron Paul 46:3 At the heart of this economic malaise is the Fed’s poor stewardship of the dollar. The cause of the dollar’s demise is not the result of a purely psychological response to public statements on US dollar policy, but is rather a reaction to a massive increase in the money supply brought about by the Federal Reserve’s loose monetary policy. The policies that led to hemorrhaging of gold during the 1960’s and the eventual closing of the gold standard are the same policies that are leading to the dollar’s decline in international currency markets today. Foreign governments no longer wish to hold depreciating dollars, and would prefer to hold stronger currencies such as the euro. Foreign investors no longer wish to hold underperforming dollars, and seek to hold better-performing assets such as ports and beer companies. invest UNTITLED 23 July 2008    2008 Ron Paul 47:2 The Federal Reserve has already invested hundreds of billions of dollars, probably close to $300 billion to bail out this industry. And of course the Fed has no money. But when we open the doors in an unlimited amount, and no restraint on what the Treasury might do in buying up these securities, we have to talk about the budget. And, of course, that is why this bill increases the national debt by $800 billion, so I guess they are expecting to buy a whole lot of mortgage securities. But that won’t solve the problem. We have to find out why this problem has existed. invest Statement on HR 3221 July 24, 2008    2008 Ron Paul 48:1 Madam Speaker, For several years, followers of the Austrian school of economics have warned that unless Congress moved to end the implicit government guarantee of Fannie Mae and Freddie Mac, and took other steps to disengage the US Government from the housing market, America would face a crisis in housing. This crisis would force Congress to chose between authorizing a taxpayer bailout of Fannie and Freddie, and other measures increasing government’s involvement in housing, or restoring a free-market in housing by ending government support for Fannie and Freddie and repealing all laws that interfere in housing. The bursting of the housing bubble, and the recent near-collapse in investor support for Fannie and Freddie has proven my fellow Austrians correct. Unfortunately, but not surprisingly, instead of ending the prior interventions in the housing market that are responsible for the current crisis, Congress is increasing the level of government intervention in the housing market. This is the equivalent of giving a drug addict another fix, which will only make the necessary withdrawal more painful. invest Full Committee Hearing on “Implications of a Weaker Dollar for Oil Prices and the U.S. Economy” July 24, 2008    2008 Ron Paul 50:6 As Chairman Bernanke admitted last week, inflation is a tax, and it is the most pernicious because of its hidden nature. It taxes the very purchasing power of money, and because the inflation rate in recent years has generally been low, its effects often take a while to manifest themselves. Now that inflation is beginning to rise, more and more rhetoric is being spun to hide the government’s role in creating inflation. I applaud Chairman Frank for holding this hearing, as hearings such as this one investigating the link between the weak dollar and the high price of oil are more important now than ever. invest HOUSING AND ECONOMIC RECOVERY ACT OF 2008 25 July 2008    2008 Ron Paul 52:1 Mr. PAUL. Mr. Speaker, for several years, followers of the Austrian school of economics have warned that unless Congress moved to end the implicit Government guarantee of Fannie Mae and Freddie Mac, and took other steps to disengage the U.S. Government from the housing market, America would face a crisis in housing. This crisis would force Congress to chose between authorizing a taxpayer bailout of Fannie and Freddie, and other measures increasing Government’s involvement in housing, or restoring a free market in housing by ending Government support for Fannie and Freddie and repealing all laws that interfere in housing. The bursting of the housing bubble, and the recent near-collapse in investor support for Fannie and Freddie has proven my fellow Austrians correct. Unfortunately, but not surprisingly, instead of ending the prior interventions in the housing market that are responsible for the current crisis, Congress is increasing the level of Government intervention in the housing market. This is the equivalent of giving a drug addict another fix, which will only make the necessary withdrawal more painful. invest Statement on Sovereign Wealth Funds September 10, 2008    2008 Ron Paul 58:2 The United States government now finds itself between a rock and a hard place. The massive amounts of debt that we have allowed to accumulate are hanging over us like Damocles’ sword. Foreign governments such as Russia and China hold large amounts of government and agency bonds, and there are fears that as our creditors they will exert leverage over us. At the same time, as the dollar weakens, the desire to sell bonds and purchase better performing assets increases, leading to fears from others that foreign governments will attempt to purchase American national champion companies, or invest in strategic industries to gain sensitive technologies. invest Statement on Sovereign Wealth Funds September 10, 2008    2008 Ron Paul 58:3 In either case, most politicians overlook the fact that we are in this situation because of our loose monetary and fiscal policy. Actions that would stifle the operations of foreign sovereign wealth funds would likely result in corresponding retaliatory actions by foreign countries against American pension funds and could have the same detrimental effects on the economy as the trade wars begun after passage of the Smoot-Hawley tariff. Rather than limiting or prohibiting investment by sovereign wealth funds, we should be concerned with striking at the root of the problem and addressing inflationary monetary and fiscal policy. invest “The Economic Outlook” September 24, 2008    2008 Ron Paul 60:2 One of the perverse effects of this bailout proposal is that the worst-performing firms, and those who interjected themselves most deeply into mortgage-backed securities, credit default swaps, and special investment vehicles will be those who benefit the most from this bailout. As with the bailout of airlines in the aftermath of 9/11, those businesses who were the least efficient, least productive, and least concerned with serving consumers are those who will be rewarded for their mismanagement with a government handout, rather than the failure of their company that is proper to the market. This creates a dangerous moral hazard, as the precedent of bailing out reckless lending will lead to even more reckless lending and irresponsible behavior on the part of financial firms in the future. invest “The Bailout” September 29, 2008    2008 Ron Paul 65:13 Money’s most important function is to serve as a means of exchange—a measurement of value. If this crucial yardstick is not stable, it becomes impossible for investors, entrepreneurs, savers, and consumers to make correct decisions; these mistakes create the bubble that must eventually be corrected. invest The Austrians Are Right November 20, 2008    2008 Ron Paul 71:3 Today, a major economic crisis is unfolding. New government programs are started daily, and future plans are being made for even more. All are based on the belief that we’re in this mess because free-market capitalism and sound money failed. The obsession is with more spending, bailouts of bad investments, more debt, and further dollar debasement. Many are saying we need an international answer to our problems with the establishment of a world central bank and a single fiat reserve currency. These suggestions are merely more of the same policies that created our mess and are doomed to fail. invest The Austrians Are Right November 20, 2008    2008 Ron Paul 71:16 There are limits. A country cannot forever depend on a central bank to keep the economy afloat and the currency functionable through constant acceleration of money supply growth. Eventually the laws of economics will overrule the politicians, the bureaucrats and the central bankers. The system will fail to respond unless the excess debt and mal-investment is liquidated. If it goes too far and the wild extravagance is not arrested, runaway inflation will result, and an entirely new currency will be required to restore growth and reasonable political stability. invest UNTITLED 10 December 2008    2008 Ron Paul 72:5 The big thing is the big bailout, the $8 trillion, the unlimited amount the Federal Reserve has invested and what we’ve been doing for the past 6 months. We are on the road to nationalization. In many ways, we’re in the midst of nationalization without a whimper. invest 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. invest INTRODUCTION OF THE IDENTITY THEFT PREVENTION ACT January 6, 2009    2009 Ron Paul 4:5 This act also forbids the federal government from creating national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions among American citizens. In 2005, this body established a de facto national ID card with a provisions buried in the “intelligence” reform bill mandating federal standards for drivers’ licenses, and mandating that federal agents only accept a license that conforms to these standards as a valid ID. invest Bailout January 14, 2009    2009 Ron Paul 8:8 Then we subsidized the insurance. The government-subsidized insurance program further promoted the principle of moral hazard – people doing things, spending money and investing in the incorrect way. invest More Spending Isn’t The Answer January 22, 2009    2009 Ron Paul 11:4 Now, the other option is to allow the deflation to occur, allow the liquidation of bad debt and to allow the removal of all of the bad investments; but that politically is unacceptable, so we are really in a dilemma because nobody can take a hands-off position. Politicians have to feel relevant. And, therefore, they have to do something. But there is no evidence that this is going to work. invest 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. invest FEDERAL RESERVE IS THE CULPRIT February 25, 2009    2009 Ron Paul 17:5 Ironically, free markets and sound money generates low rates, but unlike the artificially low rates orchestrated by the Fed, the information conveyed is beneficial to investors and savers. invest STATEMENT ON INTRODUCING THE SUNLIGHT RULE March 5, 2009    2009 Ron Paul 23:3 The sunlight rule provides the people the opportunity to be involved in enforcing the rule by allowing a citizen to petition for an Office of Congressional Ethics investigation into any House Member who votes for a bill brought to the floor in violation of this act. The sunlight rule can never be waived by the Committee on Rules or House leadership. If an attempt is made to bring a bill to the floor in violation of this rule, any member could raise a point of order requiring the bill to be immediately pulled from the House calendar until it can be brought to the floor in a manner consistent with this rule. invest THRIFT SAVINGS FUND IMPROVEMENT ACT March 10, 2009    2009 Ron Paul 25:1 Mr. PAUL. Madam Speaker, I rise to introduce the Thrift Savings Fund Improvement Act. This legislation expands the investment options available to congressional and other federal employees by creating a precious metals investment fund in the Thrift Savings Plan (TSP). Adding a precious metals fund to the TSP will enhance the plan’s ability to offer congressional employees a wide range of investment options that can provide financial security even during difficult economic conditions. invest THRIFT SAVINGS FUND IMPROVEMENT ACT March 10, 2009    2009 Ron Paul 25:3 Recent gains aside, precious metals have a number of features that make them a sound part of a prudent investment strategy. In particular, inflation does not erode the value of precious metals is not eroded over time. Thus, precious metals can serve as a valuable “inflation hedge.” Precious metals also maintain, or even increase, their value during times of stock market instability, such as what the country is currently experiencing. Thus, investments in precious metals can help ensure that an investment portfolio maintains its value during times of economic instability. invest THRIFT SAVINGS FUND IMPROVEMENT ACT March 10, 2009    2009 Ron Paul 25:4 Federal employees could greatly benefit from the protection against inflation and economic downturns provided by prudent investments in precious metals. I, therefore, once again urge my colleagues to cosponsor the Thrift Savings Fund Improvement Act. invest INTRODUCTION OF THE CURES CAN BE FOUND ACT March 19, 2009    2009 Ron Paul 36:1 Mr. PAUL. Madam Speaker, I rise to introduce the Cures Can Be Found Act. This legislation promotes medical research by providing a tax credit for investments and donations to promote adult and umbilical cord blood stem cell research, and provides a $2,000 tax credit to new parents for the donation of umbilical cord blood that can be used to extract stem cells. invest INTRODUCING THE MAKE COLLEGE AFFORDABLE ACT April 2, 2009    2009 Ron Paul 46:4 Helping the American people use their own money to ensure every qualified American can receive a college education is one of the best investments this Congress can make in the future. I therefore urge my colleagues to help strengthen America by ensuring more Americans can obtain college educations by cosponsoring the Make College Affordable Act. invest INTRODUCTION OF THE AFFORDABLE GAS PRICE ACT May 21, 2009    2009 Ron Paul 60:4 Instead of expanding government, Congress should repeal Federal laws and polices that raise the price of gas, either directly through taxes or indirectly though regulations that discourage the development of new fuel sources. This is why my legislation repeals the Federal moratorium on offshore drilling and allows oil exploration in the ANWR reserve in Alaska. My bill also ensures that the National Environmental Policy Act’s environmental impact statement requirement will no longer be used as a tool to force refiners to waste valuable time and capital on nuisance litigation. The Affordable Gas Price Act also provides tax incentives to encourage investment in new refineries. invest COMMEMORATING 20TH ANNIVERSARY OF THE TIANANMEN SQUARE SUPPRESSION June 2, 2009    2009 Ron Paul 61:3 This resolution “calls on the People’s Republic of China to invite full and independent investigations into the Tiananmen Square crackdown, assisted by the United Nations High Commissioner for Human Rights and the International Committee of the Red Cross . . .” Where do we get the authority for such a demand? I wonder how the U.S. government would respond if China demanded that the United Nations conduct a full and independent investigation into the treatment of detainees at the U.S.-operated Guantanamo facility? invest 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. invest MISTAKES: JUST A FEW! June 3, 2009    2009 Ron Paul 63:12 A national sales tax, now being planned, sends bad signals to investors, consumers and workers. invest EARMARK DECLARATION July 16, 2009    2009 Ron Paul 80:10 Account: USACE, Investigations invest EARMARK DECLARATION July 16, 2009    2009 Ron Paul 80:13 Description of Request: An earmark of $675,000 to fund investigations at Port Freeport, Texas. invest EARMARK DECLARATION July 16, 2009    2009 Ron Paul 80:16 Account: USACE, Investigations invest EARMARK DECLARATION July 16, 2009    2009 Ron Paul 80:19 Description of Request: An earmark of $200,000 to fund investigations at Sabine Pass to Galveston Bay, Texas. invest Afghanistan, Part 2 November 18, 2009    2009 Ron Paul 97:2 I just want to mention a couple of things that I think are bad arguments. One thing is we are involved there, we have invested too much, and, therefore, we have to save face because it would look terrible if we had to leave. But it is like in medicine. What if we, in medicine, were doing the wrong thing, made the wrong diagnosis? Would we keep doing it to prove that we are right or are we going listen to the patient and to the results? Mr. KAGEN. You would lose your license. invest TRANSPARENCY AT THE FEDERAL RESERVE December 1, 2009    2009 Ron Paul 100:3 Since the Fed is the source of all economic downturns, it’s impossible for any central banker to regulate in such a manner to prevent the problems that are predictable consequences of his own monetary management. The Federal Reserve fixes interest rates at levels inevitably lower than those demanded by the market. This manipulation is a form of price control through credit expansion, and is the ultimate cause of business cycles and so many of our economic problems, generating the mal- investment, excessive debt, stock, bond, commodity, and housing bubbles. Texas Straight Talk invest - The worst day of the year 20 March 1997    Texas Straight Talk 20 March 1997 verse 12 ... Cached A second piece of legislation I will be supporting is the Capital Gains Reduction Act. Right now, the profit someone may make off of selling a house, trading stocks or other activities, is taxed at 28 percent or higher. This bill would cut that rate in half. Again, the people hurt most by the capital gains tax are not the wealthy, but the middle and low income families. When a parent has provided for their child's future by investing for college, it is immoral that the government should be able to step in and take almost a third. The taxes paid on those gains could have paid for an extra semester, or more. invest - Fear of IRS misplaced, real problem is the system 20 April 1997    Texas Straight Talk 20 April 1997 verse 10 ... Cached In recently released White House recordings, former President Nixon made it abundantly clear that he wanted the IRS to be cracking down on groups (like "the Jews," he said) and individuals who were contributing to the Democrats. It has recently been revealed that Mr. Nixon was planning on having the IRS investigate every member of Congress because "it worries the (expletive) out of the thieves… It really does. Even if a person isn't a thief…" invest - Gun Control? Disarm The Bureaucrats! 20 October 1997    Texas Straight Talk 20 October 1997 verse 5 ... Cached Even an "FBI" style of federal agency, limited only to being a resource for investigations, was not accepted until this century. Yet today, fueled by the federal government's misdirected and misapplied war on drugs, the hysteria surrounding radical environmentalism, and the aggressive dictates of the nanny state, we have witnessed the massive buildup of a virtual army of armed regulators prowling the states. This buildup is the direct result of the sacrifice of individual responsibility and the concept of local control by many Americans. invest - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 2 ... Cached President opts to use taxpayer fund to bailout wealthy investors invest - 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. invest - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 6 ... Cached This kind of frivolous use of taxpayers' money is a sham. Under our Constitution, this fund should not exist in the first place, given the Article 1, Section 7, powers and restrictions on raising and spending money. Brought online by the Roosevelt Administration in the 1930s, the fund was set-up to stabilize a volatile US dollar, not prop-up foreign currencies and markets. So even if this fund were constitutional - which it clearly is not - to use the money to cover the bad investments of Wall Street bankers and save the hides of Korean government officials is against the premise under which the fund was established. invest - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 8 ... Cached But the stage was set for this kind of bail-out funding several years ago, during the so-called "Mexican Peso Crises." Then, the US raided the Stabilization fund to pay-off another bad set of investments in a risky foreign economy. At least then the US was given collateral for the loan in the form of oil production revenues. invest - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 11 ... Cached Of course, Mexico and South Korea do have something special which makes their case easier for the politically minded controllers of the taxpayer purse-strings. Both countries had a lot of American investors wanting to cash in on lucrative deals abroad with the possibility of big payoffs. Of course, as anyone who invests knows, the bigger the potential payoff, the bigger the risk. But many investors today are eager to embrace the philosophy of free-market economics when it comes to making money and keeping their profits, but at the first sign of those investments going sour, they want the government to socialize their losses at the expense of the taxpayers. invest - President opts to use taxpayer fund to bailout wealthy investors 29 December 1997    Texas Straight Talk 29 December 1997 verse 12 ... Cached And since these investors have also heavily "invested" in American politics, it is easy for the politicians to use your money to help them out. After all, it is very easy to be generous with other people's money. invest Never sacrifice liberty for "campaign reform" 02 March 1998    Texas Straight Talk 02 March 1998 verse 8 ... Cached Extensive power - the ability to confer financial and legislative favors - is now concentrated in the hands of relatively few lawmakers. If we remove that power, we remove the incentive to influence how the power is wielded. I wouldn't mind getting the big PAC money, but it doesn't come my way because I'm not considered a "good investment" for those seeking handouts or special attention at taxpayer expense; they know I just won't go along. Big money flows to non-ideological candidates who have no problem tinkering with the markets to give advantages - or disadvantages - as they wish. invest Asian economic crisis result of suppressed liberty 25 May 1998    Texas Straight Talk 25 May 1998 verse 3 ... Cached Along with the Berlin Wall, the communist system came crashing down in 1989. But in the same year, the Japanese "economic miracle" of the 1970's and the 1980's, with its `guaranteed' safeguards, turned out to be a lot more vulnerable than any investor wanted to believe. The possibility of what is happening in Asia spreading next to Europe, and then to America, should not be summarily dismissed. invest 'High crimes and misdemeanors' 07 September 1998    Texas Straight Talk 07 September 1998 verse 9 ... Cached Discussions of a powerful man using influence in an attempt to secure employment for his much-younger mistress, while disgraceful and shameful, pale in comparison to the abuse of power in accessing hundreds of confidential files on private citizens and political opponents. It is disturbing that under this president's watch, at least 900 files from the Federal Bureau of Investigations, detailing the intimate details uncovered for security background checks, were found to have been illegally transferred to the White House. invest 'High crimes and misdemeanors' 07 September 1998    Texas Straight Talk 07 September 1998 verse 12 ... Cached Far more pressing than the results of DNA tests on a cocktail dress are investigations into whether this president allowed highly-classified missile technology to be transferred to the communist Chinese government in exchange for campaign donations. The allegations and accompanying evidence are compelling, if not yet complete, to indicate that this has indeed been the case. Let us be clear about this: the government of China is not our ally, and in fact has nuclear missiles aimed at our cities. While we are "at peace," we should be mindful that China is a foreign government with a system diametrically opposed to our own. invest For sake of Rule of Law, Congress must proceed 28 September 1998    Texas Straight Talk 28 September 1998 verse 7 ... Cached Under our Constitution, the House of Representatives is charged with investigating allegations against a sitting president or judge. While some may talk about whether or not an offense is "impeachable," that is only so much political rhetoric. The Constitution only specifies that Congress can impeach a president for "high crimes" and "misdemeanors," but the definitions of those words are left to Congress to determine - anything a sufficient number of Members of Congress find offensive can be cause for impeachment. invest For sake of Rule of Law, Congress must proceed 28 September 1998    Texas Straight Talk 28 September 1998 verse 14 ... Cached While one should never discount the importance of lying under oath, I am saddened that some congressional leaders have recently suggested hearings will not include these other, far more serious, allegations. Crimes against our Constitution must not be set aside for details of sexual escapades. I hope that after $40 million being spent on investigating these more serious charges of crimes against the Constitution, that the entirety of the hearings are not simply restricted to this matter of perjury. invest Economic crisis looms 19 October 1998    Texas Straight Talk 19 October 1998 verse 16 ... Cached Third, we must abandon the tradition of bailing out bad debtors, foreign and domestic. No International Monetary Fund and related institution funding to prop up bankrupt countries, and no Federal Reserve-orchestrated bailouts such as Long Term Capital Management LP. Liquidation of bad debt and investments must be permitted. invest A New Pandora's Box 25 January 1999    Texas Straight Talk 25 January 1999 verse 3 ... Cached Government invest in market must be opposed invest A New Pandora's Box 25 January 1999    Texas Straight Talk 25 January 1999 verse 5 ... Cached Perhaps the worst of his propositions is the proposal to allow the federal government to invest in the stock market. Under the Clinton plan, a quarter of the Social Security funds would be invested in the stock market. invest A New Pandora's Box 25 January 1999    Texas Straight Talk 25 January 1999 verse 7 ... Cached As it is, Social Security is approaching bankruptcy and doesn't have any cash to invest. For decades congresses and presidents have raided the fund to bolster big-government programs. The president's shady investment plan hinges on investing cash that simply isn't there. invest A New Pandora's Box 25 January 1999    Texas Straight Talk 25 January 1999 verse 10 ... Cached One does not set money on a table at Wall Street, leave it there, then come back a few days later to collect the loot and call it investment. When one invests, they are becoming a part owner in the company or companies. With ownership comes the benefit of sharing in the profits, the risk of sharing in losses, and, perhaps most importantly, responsibility in making decisions. invest A New Pandora's Box 25 January 1999    Texas Straight Talk 25 January 1999 verse 11 ... Cached It is that last component which is perhaps the most troubling aspect of the president's plan. Are we to assume that the government will invest billions of dollars in stocks, and yet not want to have a voice in the way the companies operate? That would deny the way our government operates. Look at education; the federal government, unconstitutionally, subsidizes approximately eight percent of the public education budget. Yet the strings attached to that small percentage gives the federal government near-absolute control in one way or another over nearly every aspect of the operations in individual school districts. invest A New Pandora's Box 25 January 1999    Texas Straight Talk 25 January 1999 verse 12 ... Cached Under the president's plan, government will become a very loud part-owner of thousands of companies. And because government will want to ensure a return on its investments (which is fundamentally impossible), one shudders at the potential rules and regulations that would be imposed on the marketplace in general, and those companies specifically. invest A New Pandora's Box 25 January 1999    Texas Straight Talk 25 January 1999 verse 13 ... Cached This president firmly believes government knows best -- in everything. While he would deny individual Americans the right to divert a portion of their Social Security taxes to savings and investment programs of their choosing, this president would dump billions into the stock market so he and his cronies can effectively nationalize our economy, while using the proceeds to pay for more needless government programs. invest A New Pandora's Box 25 January 1999    Texas Straight Talk 25 January 1999 verse 16 ... Cached Government investment in the stock market is a path that must not be taken, and a Pandora's Box that should never be opened. The results could be unimaginably dangerous for the nation, and simply unprofitable for the individual. invest Orwellian rules face major opposition 01 February 1999    Texas Straight Talk 01 February 1999 verse 6 ... Cached Almost three months ago I first reported on the proposed regulations brought forward by the Federal Reserve, the FDIC and other regulatory agencies. These regs would turn bank tellers from reluctant information-gathers to unwilling investigators for the federal government's ongoing War-on-Everything -- which obviously includes the privacy of ordinary Americans. invest Orwellian rules face major opposition 01 February 1999    Texas Straight Talk 01 February 1999 verse 7 ... Cached Under the existing Nixon-era Bank Secrecy Act, financial institutions already must report large transactions to the government. Under these new rules, not only would the banks have to collect the raw data on transactions like a low-level spy but will now be required to serve as the government's front-line investigators. Investigating who and what? Everyone, and everything financial. Forget the Fourth Amendment, forget the notion of innocent until proven guilty, and forget search warrants; these regulations assume everyone is as guilty as Al Capone. invest China is only winner in scandals 31 May 1999    Texas Straight Talk 31 May 1999 verse 13 ... Cached Almost two years ago, long before Monica Lewinsky and the national soap opera begun, several Members and I introduced an Inquiry into Impeachment because of the then-materializing allegations involving these serious breaches of national security, among other similar charges. Of course, this Congress -- and indeed much of the nation -- was disinterested in pursuing such an investigation, apparently because it is far less ribald than the obsession with sex, though arguably more dangerous. invest 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. invest Legalized theft 09 August 1999    Texas Straight Talk 09 August 1999 verse 8 ... Cached If a businessman comes to a rational person and says, "I want to expand into a new territory, but the downside is that it is an area that is fraught with civil unrest, is economically unsound, the workforce is untrained and we probably won't make a profit." The prudent investor would obviously not take the risk. invest Legalized theft 09 August 1999    Texas Straight Talk 09 August 1999 verse 9 ... Cached But under our current system, that same businessman can make his move with the knowledge that the taxpayers of the United States will bail him out. This bailout comes from several different mechanisms, like the Export-Import Bank and the Overseas Private Investment Corporation. This absurdity that passes for policy is made all the more disgusting when one recognizes that working families, struggling to make ends meet, are being held liable for business decisions that the wealthiest of private investors would likely not cover. invest Legalized theft 09 August 1999    Texas Straight Talk 09 August 1999 verse 10 ... Cached Worse still is that if this risky investment finally has some measure of success, the taxpayer gets no benefit despite the exposure to liability; thus the costs are socialized while the profits are internalized. Of course, grateful recipients of the largess generously fill the campaign coffers of those who vote for these gross subsidies. invest 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. invest 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. invest Parental Control Key to Education Reform 24 January 2000    Texas Straight Talk 24 January 2000 verse 4 ... Cached A recent Investor's Business Daily story told of parents across the nation who have become so frustrated with their lack of control over their children's education that they are taking school administrators to court! For example, parents in Plano, Texas are challenging the school district's intention to use textbooks relying on "connected math." These parents want their children taught traditional math, not the education establishment's latest fad. In a similar case, a mother in Fort Zumwalt, Missouri is suing the school district for not offering her autistic son the education program that she believes will enable him to reach his full potential. invest The Big Lie 13 March 2000    Texas Straight Talk 13 March 2000 verse 7 ... Cached Finally, Steele points out that the stories about Kosovo came not only from NATO officers but also from officials of the United Nations as well as from our own government. However, a few sources closely followed developments and seemed to get the story about right. Pablo Ordaz of El Pais magazine, Audrey Gillan of the London Review of Books and even two members of an inspection team sent to Kosovo for the purpose of investigating purported mass graves all challenged the stories of the propaganda machine. invest Electoral Follies 03 April 2000    Texas Straight Talk 03 April 2000 verse 11 ... Cached Vice President Gore's proposal can only be marked down as a cynical and hypocritical attack on the very idea of free elections. Rather than trying to protect his own political backside by attempting to restrict free campaigns, Vice President Gore should use the authority of his office to impress upon the Attorney General the need for a full investigation into the laws that were violated in the 1996 campaign. Instead of proposing new laws and new bureaucracies, the Vice President and his ilk should simply come into compliance with the existing laws for which they claim such strong support. invest High Taxes Cause High Gas Prices 17 July 2000    Texas Straight Talk 17 July 2000 verse 4 ... Cached Consumers throughout the 14th district of Texas and Americans everywhere have felt the impact of higher gasoline prices during the past year. In response, our government officials have offered up the usual "solution": greater regulation of the oil industry. Administration officials have ordered an FTC antitrust probe, while vote-seeking politicians have condemned the oil industry and called for an investigation into collusion and price gouging. The truth is that costly federal taxes and regulations largely are to blame for high fuel prices, not convenient scapegoats like OPEC and the oil companies. I co-sponsored legislation in March that would immediately address the real problem: exorbitant gas taxes. invest High Taxes Cause High Gas Prices 17 July 2000    Texas Straight Talk 17 July 2000 verse 6 ... Cached The call by administration politicians for an investigation of high gas prices is particularly inconsistent, because the current administration routinely has supported energy taxes and EPA regulations which directly increase the price we all pay at the pump. Of course, politicians love to respond to pressure that they "do something" about high gas prices, regardless of the hypocrisy involved. Unfortunately, they never do the right thing by eliminating or reducing the taxes that cause high gas prices to begin with. invest Lower Taxes Encourage Saving for Retirement 24 July 2000    Texas Straight Talk 24 July 2000 verse 4 ... Cached This week the House of Representatives voted to support H.R. 1102, the "Comprehensive Retirement Security and Pension Reform" bill. The bill increases the deductible amounts individuals may contribute to their IRAs, while also increasing tax-deferred amounts that may be contributed to 401(k) pension plans. While I certainly supported the bill based on its tax relief, I also applaud the underlying principle of encouraging private retirement saving by allowing individuals to keep more of their paychecks. American taxpayers know that the best way for them to save for their retirement is to invest their pre-tax dollars in private pensions and retirement accounts. Taxpayers, rather than the federal government, should be the stewards of their own hard-earned retirement savings. invest 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. invest "Privatization" of Social Security Poses Risks 02 October 2000    Texas Straight Talk 02 October 2000 verse 6 ... Cached Concerns over the future solvency of Social Security have prompted proposals for "privatizing" the system. Many proposals include plans to allow the federal government to put tax dollars into certain approved stock market investments. invest "Privatization" of Social Security Poses Risks 02 October 2000    Texas Straight Talk 02 October 2000 verse 7 ... Cached I certainly support policies that encourage individuals to invest for their retirement. I believe Congress should lower taxes, allowing workers to keep more of their paychecks to invest. I also support legislation increasing the amounts individuals may put into tax-deductible or tax-deferred IRA, 401(k), and similar pension plans. Furthermore, I have cosponsored legislation that would end the terrible income tax on Social Security benefits. invest "Privatization" of Social Security Poses Risks 02 October 2000    Texas Straight Talk 02 October 2000 verse 8 ... Cached However, I believe government-managed investment of Social Security funds poses undue risks for our nation's seniors. Although the stock market has done well in recent years, market investments never are completely safe (especially with the Federal Reserve's risky inflationary policies). Our nation's seniors could lose their benefits if the U.S. stock market (or markets worldwide) experience a severe downturn. Remember that Social Security payments were promised to our seniors, and they paid for them during their working lives. Congress cannot risk breaking the Social Security promise, because it cannot risk the well being of millions of our nation's seniors. invest "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. invest "Privatization" of Social Security Poses Risks 02 October 2000    Texas Straight Talk 02 October 2000 verse 10 ... Cached Such "privatization" of Social Security would not really be private at all. Private companies would become a "partner" of sorts with the government. Individuals still would not truly own their invested Social Security funds. Payroll taxes likely would be raised to make up for dollars taken out of the Social Security trust fund. Political favoritism, rather than market efficiency, would determine what investments were made. Worst of all, our nation's seniors would be threatened with the loss of the benefits they already paid for. invest 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? invest Real Tax Reform Still Needed for Texas Families 16 October 2000    Texas Straight Talk 16 October 2000 verse 4 ... Cached Washington politicians love to champion the "budget surplus," as though government created an economic windfall. The truth is quite different. The surplus simply represents an overpayment of your tax dollars. Of course once the government has your money, it characterizes any tax cutting proposals as "costing too much." "We can’t afford to spend the surplus," politicians tell us. This is nonsense, and I urge taxpayers in my district to reject the ludicrous notion that tax reduction will harm the economy. The economy suffers when government takes money from your paycheck that you otherwise would spend, save, or invest. Taxes never create prosperity. Private-sector innovation and productivity are the engines that drive our economy, regardless of what politicians tell us. invest Real Tax Reform Still Needed for Texas Families 16 October 2000    Texas Straight Talk 16 October 2000 verse 9 ... Cached Various other taxes also must be eliminated. Capital gains taxes are terribly counterproductive, punishing those who save and invest. Payroll taxes impose a tremendous compliance burden on businesses, especially smaller entrepreneurs who cannot hire an accounting department. Federal gas taxes should be slashed to provide taxpayers relief at the pump. Most importantly, federal spending must be dramatically reduced so that all Americans can go back to working for themselves instead of working to pay their taxes. invest Our Foolish War in the Middle East 20 November 2000    Texas Straight Talk 20 November 2000 verse 7 ... Cached The USS Cole disaster was needless and preventable. The loss of this vessel and the tragic deaths of 17 Americans were a direct consequence of an interventionist policy. This policy has led to a lack of military readiness by spreading our forces too thin, increasing the danger to all Americans and our servicemen in that region in particular. It's positively amazing we do not have the ability to protect a $1 billion dollar vessel from a rubber raft, despite our $300 billion military budget. Our sentries on duty had rifles without bullets, and were prohibited from firing on any enemy targets. This policy is absurd if not insane. It is obvious that our navy lacks the military intelligence to warn and prevent such an event. It is incapable even of investigating the incident, since the FBI was brought in to try to figure out what happened. This further intrusion will only serve to increase the resentment of the people of Yemen and the Middle East toward all Americans. invest The Conflict Between Collectivism and Liberty is Reflected in the Presidential Election 27 November 2000    Texas Straight Talk 27 November 2000 verse 9 ... Cached The financial markets now are nervously watching the impasse reached in the presidential election. Many commentators claim the most recent drop in the market is a consequence of the uncertainty surrounding the election. Although it would be a mistake to dismiss completely the influence of the election as a factor in the economy, it must be made clear that the markets and the economy are driven by something much more basic. We know that the markets have been off significantly for the past several months, and this drop was not related in any way to the presidential election. However, confidence is an important factor in the way markets work, and certainly the confusion in the Presidential election does not convey confidence in American markets to investors. invest Faith-Based Initiative Plan Poses Risks to Religious Organizations 05 February 2001    Texas Straight Talk 05 February 2001 verse 3 ... Cached An ABC news special entitled Mr. Stossel goes to Washington aired last weekend, documenting waste and inefficiency in government. In one particularly poignant example, the show profiled a woman who started a food kitchen to deliver hot meals to needy families in her small town. She operated with a small budget, using donations of food and money. Area families considered her a godsend, as she often provided the only complete meal they had each day. The success of her efforts, however, was quickly diminished when the federal government began investigating her operation. Because she received some federal funds, she was required to comply with numerous regulations. The stove she used did not have a hood, which federal regulations mandate. Her only choice was to buy a new stove, at prohibitive cost, or stop using her stove altogether. The government refused to make an exception for her, and now she runs a smaller kitchen which delivers only cold bag lunches. Of course, the ultimate victim of the government's shortsighted policy is the local families who once enjoyed hot meals. This example does not represent an isolated case, but rather is typical of the way government regulations harm our citizens. invest Bush Tax Plan Only One Piece of the Tax Cut Puzzle 12 March 2001    Texas Straight Talk 12 March 2001 verse 4 ... Cached Those opposing the tax cut said that it would "cost the government too much" and hurt the economy. The truth of the matter is that the economy is hurt when the government takes money out of the paychecks of private citizens that they would otherwise spend, save or invest. The government has never created anything, much less economic prosperity. The government can only take from one and give to another. invest Bush Tax Plan Only One Piece of the Tax Cut Puzzle 12 March 2001    Texas Straight Talk 12 March 2001 verse 7 ... Cached The capital gains tax is another onerous tax that must be removed. Like the estate tax, the capital gains tax punishes individuals for saving and investing wisely for themselves and their families. The capital gains tax was once thought of as a tax on the rich. However, with more and more Americans investing in the stock market and relying on IRA's and 401K's to fund their retirements, there is growing opposition to this burdensome tax that actually discourages individuals from being self-sufficient. invest Economic Woes and the Federal Reserve 19 March 2001    Texas Straight Talk 19 March 2001 verse 3 ... Cached Last week was tumultuous for worldwide stock markets, some of which ended the week at their lowest levels in years. Our own Dow-Jones and NASDAQ market indices both suffered heavy losses, while the Japanese Nikkei index fell to its lowest level since 1985! Nervous investors scrambled to sell even blue-chip holdings, especially after news that projected 2001 earnings would be lower than expected for many companies. invest The Bush Tax Cut 11 June 2001    Texas Straight Talk 11 June 2001 verse 5 ... Cached Individual income tax rates will be reduced slightly over the next five years. The new rate structure eventually will be 10%, 15%, 25%, 28%, 33%, and 35%. These rate reductions are very important and should be much larger. Despite the dishonest rhetoric about the benefits of the tax bill going only to the rich, the truth is that high rates for the wealthiest taxpayers leave those individuals with less money to spend and invest. The tax surplus (the result of overtaxing) makes the current economic slowdown much worse, because billions of potential investment dollars are tied up in Treasury coffers. Marginal rate reductions are needed to spur investment and economic activity, but the new rates should have been made retroactive to immediately jump-start our nation's struggling businesses. invest The Bush Tax Cut 11 June 2001    Texas Straight Talk 11 June 2001 verse 7 ... Cached Long overdue pension and IRA reform finally has become law. The paltry $2000 IRA contribution increases incrementally to $5,000 by 2008, when it then is indexed for inflation each year. Likewise, the contribution limit for 401(k) and similar pension plans increases from the current $10,500 to $15,000. Americans over 50 are permitted to make larger "catch-up" contributions to both IRAs and 401(k)s. While I certainly believe individuals should be able to deduct unlimited amounts invested in retirement plans, it's encouraging that Congress finally raised the contribution amounts established decades ago. invest Congress Sends Billions Overseas 23 July 2001    Texas Straight Talk 23 July 2001 verse 14 ... Cached It's ironic that Congress is sending more money abroad even as the U.S. economy limps toward recession. Those foreign aid dollars should have been returned to taxpayers to spend, save, invest, or donate to charity. In the fight against big government, we should start by demanding that Congress abide by the Constitution and stop sending U.S. taxpayer funds overseas. invest Government Cannot Mandate Solutions to Ethical Dilemmas 06 August 2001    Texas Straight Talk 06 August 2001 verse 6 ... Cached First and foremost, we should insist that no federal funding be used for cloning or stem cell research. Most people don't realize that much of the cloning research performed to date has been funded with federal tax dollars. We can't know whether private money would have been spent in the same manner, because federal funding reduces the incentive for private companies to invest their own research dollars- especially when there is no guarantee that cloning technology will produce worthwhile results. Indeed, my own suspicion as a medical doctor is that the potential benefits of cloning have been overblown. So cloning almost certainly would not be the pressing issue it is today if the federal government had not become involved in the first place. Now, of course, Congress wants to ban the very thing it has been funding for years. invest What Happened to the Surplus? 20 August 2001    Texas Straight Talk 20 August 2001 verse 7 ... Cached American voters should understand that Congress will always find a way to spend every last dollar sent to Washington. Remember, politicians get votes by promising everything to everyone, always at the expense of some other invisible taxpayers. Most politicians are unashamed of their unconstitutional pork-barrel spending, even highlighting during campaigns their "accomplishment" of spending more and more of your money. The federal government cannot maintain a budget surplus any more than an alcoholic can leave a fresh bottle of whiskey untouched in the cupboard. We must change our perception that a budget surplus is healthy for the economy, because every dollar parked in the federal treasury ultimately is spent by Congress. Those dollars could have been spent, saved, or invested in the private marketplace. With a spendthrift Congress, high federal revenues simply mean more federal spending. The only way to end the unconscionable waste is to drastically reduce federal revenues by cutting taxes. Voters need to regain control of the nation's finances by rejecting the big spenders at the ballot box. invest The Fed Cannot Create Prosperity 03 September 2001    Texas Straight Talk 03 September 2001 verse 7 ... Cached The truth is that the good times may be coming to an end. The Fed, far from being our savior, is actually the cause of the current economic troubles. The Fed's easy credit policies flooded the economy with cheap money over the last decade, but the bills are coming due. With lots of artificial investment capital in the marketplace, businesses and individuals spent with less discipline and incurred more debt. The stock market became wildly overvalued, with many companies trading at outrageous prices. We should expect both personal and business bankruptcies to continue to climb as the bubble bursts. invest Effective and Practical Counter-Terrorism Measures 15 October 2001    Texas Straight Talk 15 October 2001 verse 10 ... Cached End legal preferences for terrorist suspects: Congress should clarify all federal criminal statutes to insure that so-called "extralegal" preferences for criminal terrorist suspects are eliminated. In some past terrorist investigations, federal rules have been interpreted to require law enforcement to show something more than standard probable cause to obtain warrants. Law enforcement officials should never have to demonstrate anything more than standard probable cause when seeking a warrant in the war on terrorism. invest Terrorism and the Expansion of Federal Power 10 December 2001    Texas Straight Talk 10 December 2001 verse 6 ... Cached The cycle is repeating itself. Congress has been scrambling to pass new legislation (and spend billions of your tax dollars) since September. Most of the news laws passed and dollars spent have nothing to do with defending our borders and cities against terrorist attacks. I have already written and spoken at length concerning the dangers to our civil liberties posed by the rush to pass new laws. I do not believe that our Constitution permits federal agents to monitor phones, mail, or computers without a warrant. I do not believe that government should eavesdrop on confidential conversations between attorneys and clients. I certainly do not believe "terrorism" should be defined so broadly that American citizens expressing dissent against their own government could be investigated and prosecuted as terrorists. invest Terrorism and the Expansion of Federal Power 10 December 2001    Texas Straight Talk 10 December 2001 verse 7 ... Cached Remember, President Bush will not be in office forever. History demonstrates that the powers we give the federal government today will remain in place indefinitely. How comfortable are you that future Presidents won't abuse those powers? Politically-motivated IRS audits and FBI investigations have been used by past administrations to destroy political enemies. It's certainly possible that future executives could use their new surveillance powers in similarly unethical ways. The bottom line is that every American should be very concerned about the unintended consequences of policies promoted to fight an unending, amorphous battle against terrorism. invest Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 3 ... Cached The recent bankruptcy filing by Enron has shaken the economy, with investors, employees, and creditors losing billions in a few short months. The shocking and sudden demise of America's seventh-largest company raises serious issues about stock valuations and the financial health of America's big companies. Questions are being raised about improprieties on the part of Enron management and its accounting firm. If evidence of fraud or other criminal activity exists, management and auditors should of course be held responsible. People are understandably angry, especially those who suffered serious financial losses. However, we should be careful not to blame the free market for the actions of a few in what is actually a very highly regulated market. invest Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 4 ... Cached It is a mistake for Congress view the Enron collapse as an justification for more government regulation. Publicly held corporations already comply with massive amounts of SEC regulations, including the filing of quarterly reports that disclose minute details of assets and liabilities. If these disclosure rules failed to protect Enron investors, will more red tape really solve anything? The real problem with SEC rules is that they give investors a false sense of security, a sense that the government is protecting them from dangerous investments. invest Enron, Bankruptcy, and Easy Credit 17 December 2001    Texas Straight Talk 17 December 2001 verse 5 ... Cached In truth, investing carries risk, and it is not the role of the federal government to bail out every investor who loses money. In a true free market, investors are responsible for their own decisions, good or bad. This responsibility leads them to vigorously analyze companies before they invest, using independent financial analysts. In our heavily regulated environment, however, investors and analysts equate SEC compliance with reputability. The more we look to the government to protect us from investment mistakes, the less competition there is for truly independent evaluations of investment risk. invest 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. invest Stimulus or Spending? 24 December 2001    Texas Straight Talk 24 December 2001 verse 4 ... Cached It's important to cut through the rhetoric surrounding the stimulus debate over the last few weeks. The only real and lasting way to stimulate the economy is to reduce the amount of money government takes out of the private economy. The only way to do this is by cutting taxes. When taxes are reduced on individuals, they have more money to spend, save, or invest. When taxes are reduced on companies, they have more money to hire new employees, increase wages, or pay dividends to investors. Since all economic growth depends on private capital, the goal of any economic stimulus plan must be to leave more private capital in the hands of investors. When too much American wealth is tied up in government coffers, investment and job growth suffer. This is exactly what we have seen over the past 18 months- the Treasury "surplus" touted by the last administration actually represents a tax overcharge that dragged the economy down well before September 11th. invest Stimulus or Spending? 24 December 2001    Texas Straight Talk 24 December 2001 verse 7 ... Cached Liberty-minded Americans must continue their efforts to change the climate in Washington. It is still possible for tax cuts to be enacted in 2002; unfortunately, it appears the Senate won't act until the economy gets even worse. This is unfortunate, because a deeper recession could be avoided with some obvious steps. An elimination of corporate income taxes would immediately spur job growth. Despite the claims of the class warriors, corporate income taxes are paid by all of us in the form of higher prices for goods and services. A capital gains cut for individuals, coupled with a significant decrease in marginal tax rates, would cause a huge increase in investment. Such measures would represent real stimulus; our hardworking and entrepreneurial citizens would do the rest. The American people should not wait for a severe economic crisis before they demand that the government cut taxes and return needed capital to the legitimate private economy. invest 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? invest 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. invest Enron: Under-Regulated or Over-Subsidized? 28 January 2002    Texas Straight Talk 28 January 2002 verse 8 ... Cached The point is that Enron was intimately involved with the federal government. While most in Washington are busy devising ways to "save" investors with more government, we should be viewing the Enron mess as an argument for less government. It is precisely because government is so big and so thoroughly involved in every aspect of business that Enron felt the need to seek influence through campaign money. It is precisely because corporate welfare is so extensive that Enron cozied up to Congress and the Clinton administration. It's a game every big corporation plays in our heavily regulated economy, because they must when the government, rather than the marketplace, distributes the spoils. invest Enron: Under-Regulated or Over-Subsidized? 28 January 2002    Texas Straight Talk 28 January 2002 verse 9 ... Cached This does not mean Enron is to be excused. There seems to be little question that executives at Enron deceived employees and investors, and any fraudulent conduct should of course be fully prosecuted. Yet we should not allow criminal fraud in one company, which constitutionally is a matter for state law, to justify the imposition of burdensome new accounting and stock regulations. We certainly should not allow the Enron collapse to be characterized as a failure of capitalism or free markets, because the opposite is true. The Enron collapse provides an example of how government does so much to prevent the market from working properly in the first place. invest Gold, Dollars, and Federal Reserve Mischief 10 June 2002    Texas Straight Talk 10 June 2002 verse 3 ... Cached The mainstream financial press is now reporting the weakening of the U.S. dollar as measured against other currencies. This is unsettling news, as a relatively strong dollar was considered a hallmark of the economic boom of the 1990s- a boom that had far more to do with rapid credit expansion than real increases in productivity. The value of the dollar is down 18% this year compared to gold, which acts as a bellwether for the health of paper money. Gold prices historically rise when faith in paper currencies erodes, as investors seek the intrinsic value of gold to protect themselves from the arbitrary actions of the world’s central banks, including our own Federal Reserve. invest A Stay of Execution for the Death Tax 17 June 2002    Texas Straight Talk 17 June 2002 verse 4 ... Cached The estate tax, more accurately known as the death tax because it is levied when a taxpayer dies, confiscates anywhere from 37% to 55% of a individual’s assets. While these rates are unconscionable, the death tax also represents an especially galling form of double taxation. Americans already pay federal and state income taxes throughout their working lives. They pay income and capital gains taxes on money they save and invest. They pay local property taxes on their homes. They pay various sales taxes whenever they buy something. They even pay steep federal taxes on gasoline and telephone use. Yet after a lifetime of burdensome taxes, the death tax punishes Americans one last time simply because they worked hard, saved, and invested to pass something on to their families. invest What About Government Accountability? 15 July 2002    Texas Straight Talk 15 July 2002 verse 3 ... Cached This does not mean corporate America is innocent. Many big corporations soak taxpayers for billions in government subsidies every year, while using political influence to avoid fair competition in the marketplace. Criminal conduct by executives at Enron, WorldCom, or any other company should be prosecuted vigorously under state fraud laws. If these executives indeed lied to investors, presented false earnings statements, or otherwise stole from shareholders, they should return the stolen money and serve jail time. invest What About Government Accountability? 15 July 2002    Texas Straight Talk 15 July 2002 verse 5 ... Cached None of the free-market restraints against financial mismanagement apply to government. The federal government doesn’t need to raise money by meeting a market demand or raising investment capital- it simply takes what it wants through taxes, which can be raised at will. It never has to operate profitably or efficiently; witness Amtrak and the Postal Service. It also has no incentive to cut costs. In fact, federal agencies scramble to spend every last penny of their budgets to justify more the next year. There is no stock price to worry about, and nobody tracks government "performance" against earlier years. Nobody ever gets fired. Simply put, the money is not hard-earned, so it’s not well-spent. invest What About Government Accountability? 15 July 2002    Texas Straight Talk 15 July 2002 verse 7 ... Cached Of course Congress could clean up its financial mess, but ultimately it is voters who must demand accountability for their tax dollars. Remember that you give government at all levels nearly half of everything you earn. If you invested that much into a private company, don’t you think you would keep a close eye on it and demand accountability as a shareholder? The only thing we know for sure about the federal budget is that it will go up each year unless and until voters remove the politicians who insist on taxing, spending, and borrowing us to death. invest Monitor thy Neighbor 22 July 2002    Texas Straight Talk 22 July 2002 verse 3 ... Cached Now the Justice department wants to extend the new investigative powers to private citizens. It recently unveiled Operation TIPS- Terrorism Information and Prevention System- as part of President Bush’s Citizen Corps initiative. The goal is to enlist thousands or even millions of Americans to act as spies for the government, reporting suspicious activity to officials using a handy toll-free hotline. The Justice department especially hopes to enlist mailmen, delivery drivers, plumbers, gas-meter readers, and the like, as they have access to private homes and businesses in their daily work. As usual, the war on terror is offered as justification for this proposal. invest 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. invest Your Taxes Fund South American Bailout 12 August 2002    Texas Straight Talk 12 August 2002 verse 7 ... Cached But why should taxpayers subsidize the risky business practices of multinational lenders? The banks themselves should bear the risks of investing in unstable nations, just as surely as they enjoy the rewards when investments in foreign markets prove profitable. They want taxpayers to protect them from risk, but never share in the rewards. invest Tax Cuts and Class Wars 20 January 2003    Texas Straight Talk 20 January 2003 verse 2 ... Cached President Bush unveiled a very modest tax cut plan last week that calls for the elimination of double taxation on dividends. Democrats immediately attacked the plan using class warfare tactics, clamoring that only the rich will benefit from a dividends tax reduction. This tired argument ignores the millions of middle class American investors who receive dividend checks and presumably don’t consider themselves wealthy. It also ignores the stimulative effect that any form of tax cut has on the economy. When dividends are taxed only once, as corporate income, investment is encouraged and shareholder demand for dividends increases. This in turn encourages companies to increase profits, because it’s hard to pay dividends if you’re not making any money. But these arguments require some analysis, and the left would rather appeal to base emotions and attempt to paint the wealthy as sinister tax dodgers. invest Tax Cuts and Class Wars 20 January 2003    Texas Straight Talk 20 January 2003 verse 6 ... Cached I’m in favor of cutting everybody’s taxes- rich, poor, and otherwise. Whether a tax cut reduces a single mother’s payroll taxes by forty dollars a month, or allows a wealthy business owner to save millions in capital gains, the net effect is beneficial. Both either spend, save, or invest the extra dollars, which helps all of us infinitely more than if those dollars were sent to the black hole known as the federal Treasury. The single mother desperately needs those extra dollars, and that’s why we should reduce or eliminate her payroll taxes. As for the wealthy business owner and whether he “needs” the extra dollars, I’ll simply relate the old adage of the man who said “I’ve never had my paycheck signed by a poor man.” invest Government Policy and False Prosperity 27 January 2003    Texas Straight Talk 27 January 2003 verse 5 ... Cached The financial markets demand real value. Merely reducing taxes on dividends or capital gains cannot make a company or stock fundamentally more valuable. Any increase in a company’s stock price not based on real gains in productivity cannot be sustained for long, especially when the increase is caused by a reaction to government policies. Simply believing a company is worth a certain amount doesn’t make it so. In the end, only results- in the form of profitability and growth- matter. When government interferes in the financial markets through its monetary or tax policies, company values become distorted and investor knowledge become even more imperfect. This encourages the kind of uneducated speculation we saw during the 1990s, and many investors today find themselves mired in debt and holding almost worthless stocks. invest Support the President's Tax-Free Savings Plan 10 February 2003    Texas Straight Talk 10 February 2003 verse 6 ... Cached Incredibly, members of both political parties seem to question the obvious benefit of tax-free accounts. With the Social Security system threatened by demographics and congressional spending raids, the need for private retirement saving has never been greater. America was in fact built with private savings. Only when individuals save money does a society develop the capital for investment and lending that is so critical to economic growth. Impoverished nations, by contrast, have little or no capital. This is often because of burdensome taxes and a lack of property rights. The desire to save money and build a better life is intrinsically human, and no society that punishes saving can remain prosperous for long. invest The 2003 Spending Orgy 03 March 2003    Texas Straight Talk 03 March 2003 verse 2 ... Cached Federal tax revenues have dropped dramatically since the stock market peaks of 2000. Rising unemployment continues to reduce the number of taxpayers, while plummeting investor portfolios no longer produce the huge capital gains and dividend revenues that flooded federal coffers in the 1990s. This drop in revenues was of course predictable, given the faltering economy and enormous market losses of the past two years. invest The Myth of War Prosperity 10 March 2003    Texas Straight Talk 10 March 2003 verse 6 ... Cached We should expect the financial markets to react badly to an invasion of Iraq. Although military victory should be swift, prolonged urban fighting in Baghdad or other cities would cause investor confidence to plunge. This lack of confidence in the U.S. economy will make trade more difficult and cause our trade deficit to rise. invest The Unbearable Cost of Running Iraq 09 June 2003    Texas Straight Talk 09 June 2003 verse 4 ... Cached A recent Washington Post editorial suggests that, "The reality is that tens of thousands of U.S. troops will likely be in Iraq for years to come, and (that) country will not recover without extensive investment by the United States and other international donors." Of course, what this means is that American taxpayers are to be squeezed in every direction to pay to “fix” Iraq. And it is becoming increasingly obvious that the open-ended American military presence in Iraq is not welcome: in the past two weeks eight American soldiers have, tragically, been killed in Iraq. invest Declining Dollar, Declining Fortunes 23 June 2003    Texas Straight Talk 23 June 2003 verse 7 ... Cached Both Congress and the Fed should be promoting sound dollar policies, because a sound and stable currency is required for sustained economic growth. Instead, both have through default and deliberate action promoted fiat policies that systematically depreciate the dollar. The financial markets understand this, and investors track the minute-by-minute fluctuations in value of the dollar seeking an investment advantage. This kind of speculation would not exist in a sound monetary system. invest The Terrible Cost of Government 28 July 2003    Texas Straight Talk 28 July 2003 verse 3 ... Cached The good news for Americans is that the Cost of Government day is finally behind us for the year. The bad news is that the day keeps falling later and later, in fact 17 days later than 2000. This is due largely to the rapid growth in federal spending in recent years. This relentless growth has increased the burden of government faster than national income has risen. The result is that taxpayers are left with less money to spend, save, or invest, while the legitimate private economy staggers under the weight of a growing federal leviathan. invest Your Money in Iraq 29 September 2003    Texas Straight Talk 29 September 2003 verse 13 ... Cached -$100 million for hundreds of criminal investigators; and invest Paying Dearly for Free Prescription Drugs 06 October 2003    Texas Straight Talk 06 October 2003 verse 8 ... Cached The Food and Drug Administration is also directly responsible for high drug costs. Pharmaceutical companies spend hundreds of millions of dollars to bring a single drug to market because of FDA rules. Often FDA approval is never obtained, no matter how much a company spends developing a drug. So pharmaceutical makers naturally try to recoup their huge investments by charging high prices and lobbying to keep exclusive drug patent periods as lengthy as possible. We need to understand that the FDA does far more harm than good, both in terms of drug prices and the incalculable chilling effect it has on needed drug research. With less FDA interference, patents could be shortened and drug development costs reduced. This would allow greater price competition between drug companies. invest Economic Woes Begin at Home 03 November 2003    Texas Straight Talk 03 November 2003 verse 7 ... Cached Instead of promoting global economic government, Congress should reform those policies that reduce our manufacturers’ competitiveness. Recently, a prominent financial journalist visited with businessmen who are launching new enterprises in China. When he asked them why they chose to invest in China, they answered: “It is so much easier to start a business in China than in the United States, especially in places like Massachusetts and California.” invest The Disappearing Dollar 08 December 2003    Texas Straight Talk 08 December 2003 verse 5 ... Cached The problem is that faith can be shaken, and the precipitous drop in the dollar shows how investors around the globe are very concerned about American deficits and debt. When government policies in a fiat system are the sole measure of a currency’s worth, the currency markets act as a reliable barometer of how those policies are viewed around the world. Politicians often manage to fool voters and the media, but they rarely fool the financial markets over time. When investors lack faith in the U.S. dollar, they really lack faith in the economic policies of the U.S. government. The Medicare prescription drug bill passed two weeks ago provides an example of this phenomenon- the day after the bill passed, the dollar dropped once again. Investors understand that the new entitlement will cost trillions over coming decades, trillions that will come from Treasury printing presses and further devalue existing dollars. invest The Disappearing Dollar 08 December 2003    Texas Straight Talk 08 December 2003 verse 6 ... Cached Ultra-cautious investor Warren Buffett is trading heavily in foreign currencies for the first time, demonstrating his lack of faith in the dollar. His predicament is simple: He holds billions of dollars, and cannot afford to sit by and watch the value of those dollars drop another 30%. By taking a position against the U.S. dollar, his actions speak volumes. invest Congress Goes AWOL 09 February 2004    Texas Straight Talk 09 February 2004 verse 6 ... Cached The furor over bad intelligence is a little late, to put it mildly. A proper investigation and debate by Congress clearly was warranted prior to any decision to go to war. The consequences cannot be undone. Hundreds of American soldiers have been killed, thousands more maimed or injured. More than one hundred billion dollars have been spent, and billions more will be needed to support our open-ended occupation of Iraq. The current after-the-fact debate is hollow and political. We now see those who abdicated their congressional responsibility to declare or reject war, who timidly voted to give the president the power he wanted, posturing as his harshest critics. invest Greenspan's Black Magic 23 February 2004    Texas Straight Talk 23 February 2004 verse 5 ... Cached Mr. Shostak also demonstrates that American businesses aren’t doing much better. As consumers exhaust their ability to borrow, they necessarily buy fewer goods and services. The ratio of business liabilities to assets is very high, price to earning ratios are still unrealistic, and investment capital remains scarce. Business may be better than it was two years ago, but the fundamentals are far less healthy than Mr. Greenspan would have us believe. invest Congressional Indecency 15 March 2004    Texas Straight Talk 15 March 2004 verse 7 ... Cached Conservatives must understand that the powers they grant the FCC today may one day be used against them. It is not hard to imagine a future where criticism of abortion is deemed hate speech against women, or criticism of affirmative action considered an unlawful attack on minorities. It is not hard to imagine President Hillary Clinton ordering the FCC to shut down Rush Limbaugh for using the term “feminazi.” Already a petition has been filed with the Justice department to investigate The Passion of the Christ for possible hate crimes against those who dislike the film’s theology! Big-government conservatives will learn that heavy-handed federal control of speech is far more likely to result in a rigidly secular, politically-correct society than a moral society imbued with Christian virtue. invest The Federal Reserve Debt Engine 26 April 2004    Texas Straight Talk 26 April 2004 verse 6 ... Cached During past recessions, many Americans shed debt either through bankruptcy or through austerity measures. In other words, they either changed their spending and borrowing habits or went broke. At some point their debts were in essence cleared from the books. In the recent recession of 2000-2002, however, many cash-strapped households managed to stay ahead of creditors by borrowing even more money. This is directly attributable to Fed easy-money policies, which greatly expanded the money supply and caused banks to lower creditworthiness standards. As a result, many Americans are overextended rather than bankrupt. Someday, however, they simply won’t be able to borrow another dime. All the Fed has done is make the bubble bigger and postpone the day of reckoning. This hardly makes for a strong economy, which must be based on savings and investment. invest Passing the Buck in Iraq 10 May 2004    Texas Straight Talk 10 May 2004 verse 2 ... Cached The allegations of prisoner torture by our troops in Iraq are disturbing, and clearly drastic action must be taken to ensure such conduct stops immediately. But why are we condemning a small group of low-level reservists when we do not yet know the full story? As revolting as the pictures are, we cannot know with certainty what took place in Iraq’s prisons based on a few photographs. We do not and cannot know the full story at this point, yet we jump to condemn those who have not even had the benefit of a trial. We appear to be operating on the principle of guilty until proven innocent. It seems convenient and perhaps politically expedient to blame a small group of “bad apples” for what may well turn out to be something completely different – as the continuously widening investigation suggests. invest Passing the Buck in Iraq 10 May 2004    Texas Straight Talk 10 May 2004 verse 6 ... Cached Congress has the power – and the obligation – to keep itself better informed. Congress should hold hearings on the torture allegations, exercising its subpoena power if necessary. Demanding that the administration investigate the matter is simply another example of Congress passing the buck. That’s what got us into trouble in the first place. invest The Great Foreign Aid Swindle 24 May 2004    Texas Straight Talk 24 May 2004 verse 6 ... Cached In developing countries that pursue sound economic policies, foreign aid money is not needed- the international financial markets will provide the investment capital necessary for economic growth. This capital will be invested according to sound investment strategies - designed to make a profit - rather than allocated according to the whims of government bureaucrats. invest Government Debt- The Greatest Threat to National Security 25 October 2004    Texas Straight Talk 25 October 2004 verse 7 ... Cached The federal government issues U.S. Treasury bonds to finance its deficit spending. The largest holders of those Treasury notes-- our largest creditors-- are foreign governments and foreign individuals. Asian central banks and investors in particular, especially China, have been happy to buy U.S. dollars over the past decade. But foreign governments will not prop up our spending habits forever. Already, Asian central banks are favoring Euro-denominated assets over U.S. dollars, reflecting their belief that the American economy is headed for trouble. It’s akin to a credit-card company cutting off a borrower who has exceeded his credit limit one too many times. invest Social Security: House of Cards 08 November 2004    Texas Straight Talk 08 November 2004 verse 7 ... Cached We’ve all heard proposals for “privatizing” the Social Security system. The best private solution, of course, is simply to allow the American people to keep more of their paychecks and invest for retirement as they see fit. But putting Social Security funds into government-approved investments could have dangerous consequences. Private companies would become a partner of sorts with the government. Individuals still would not truly own their invested Social Security funds. Payroll taxes likely would be raised to cover payments to current beneficiaries, as the President alluded to when warning us that fixing Social Security would be “costly.” invest 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. invest 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? invest Gold Exposes the Dollar 06 December 2004    Texas Straight Talk 06 December 2004 verse 6 ... Cached Gold, by contrast, has surged 70% in the same period. The New York Times last week acknowledged that gold “was now a more favored currency than the U.S. dollar.” As analyst Harry Schultz points out, when gold prices are low the financial press calls gold a commodity. When prices are high, they call it a currency. Investors cannot afford to sit idly by while their dollar accounts lose another 30% in value, so the rise in demand for gold is hardly surprising. invest Private Help for Tsunami Victims 10 January 2005    Texas Straight Talk 10 January 2005 verse 10 ... Cached The Asian tsunami is the worst natural disaster of our lifetimes, and we should all do everything we can to help. Investigate the charities and private groups involved, and send what you can. But let’s get governments and the United Nations out of the way, please. invest 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. invest Want to Reform Social Security? Stop Spending. 24 January 2005    Texas Straight Talk 24 January 2005 verse 8 ... Cached If the administration truly wants to give people more control over their retirement dollars, why not simply reduce payroll taxes and let them keep their own money to invest privately as they see fit? This is the true private solution. invest Reconsidering the Patriot Act 02 May 2005    Texas Straight Talk 02 May 2005 verse 7 ... Cached Many of the most constitutionally offensive measures in the Act are not limited to terrorist offenses, but apply to any criminal activity. In fact, some of the new police powers could be applied even to those engaging in peaceful protest against government policies. The bill as written defines terrorism as acts intended “to influence the policy of a government by intimidation or coercion.” Under this broad definition, a scuffle at an otherwise peaceful pro-life demonstration might subject attendees to a federal investigation. We have seen abuses of law enforcement authority in the past to harass individuals or organizations with unpopular political views. Congress has given future administrations a tool to investigate pro-life or gun rights organizations on the grounds that fringe members of such groups advocate violence. invest Congress and the Federal Reserve Erode Your Dollars 23 May 2005    Texas Straight Talk 23 May 2005 verse 6 ... Cached The root of the problem is the Federal Reserve and our fiat monetary system itself. Since US dollars and other major currencies are not backed by gold, they have no inherent value. Their relative values are subject to political events, and fluctuate constantly in highly volatile currency markets. A fiat system means every dollar you have can be eroded into nothing by the actions of politicians and central bankers. In essence, paper currencies like the US dollar operate as articles of faith-- faith in the policies of the governments and central banks that issue them. When it comes to a government as deeply indebted as our own, that faith is sorely lacking among investors worldwide. Politicians often manage to fool voters and the media, but they rarely fool financial markets over time. The precipitous drop in the US dollar over the past few years is proof that investors around the globe are very concerned about American deficits and debt. When investors lack faith in the U.S. dollar, they really lack faith in the economic policies of the U.S. government. invest Will the Estate Tax ever be Repealed? 24 October 2005    Texas Straight Talk 24 October 2005 verse 4 ... Cached The estate tax, more accurately known as the death tax because it is levied when a taxpayer dies, confiscates anywhere from 37% to 55% of a individual’s assets. While these rates are unconscionable, the death tax also represents an especially galling form of double taxation. Americans already pay federal and state income taxes throughout their working lives. They pay income and capital gains taxes on money they save and invest. They pay local property taxes on their homes. They pay various sales taxes whenever they buy something. They even pay steep federal taxes on gasoline and telephone use. Yet after a lifetime of burdensome taxes, the death tax punishes Americans one last time simply because they worked hard, saved, and invested to pass something on to their families. invest A Free Market in Gasoline 31 October 2005    Texas Straight Talk 31 October 2005 verse 4 ... Cached Consider Marathon Oil, which operates a refinery in Texas City. Marathon recently announced the construction of new refinery that will bring several hundred thousand barrels of oil online every day- which is exactly what the nation needs. But building a new refinery is a daunting task that requires billions of dollars in capital investment. The process of obtaining federal permits alone can take several years. As a result, we won’t see a drop of refined gasoline from the new Marathon facility until 2009. invest More of the Same at the Federal Reserve 28 November 2005    Texas Straight Talk 28 November 2005 verse 6 ... Cached But there is a cost, and it's a heavy one. It's called monetary inflation, which destroys the value of the dollar and punishes those who save and invest. The money supply, as measured by the Fed's own M3 figure, has increased about 5 times since 1980. Yet for years officials at the Fed have insisted that inflation is firmly in check. invest 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. invest Sanctions against Iran 17 April 2006    Texas Straight Talk 17 April 2006 verse 3 ... Cached As the drumbeat for military action against Iran grows louder, some members of Congress are calling to expand the longstanding U.S. trade ban that bars American companies from investing in that nation. In fact, many war hawks in Washington are pushing for a comprehensive international embargo against Iran. The international response has been lukewarm, however, because the world needs Iranian oil. But we cannot underestimate the irrational, almost manic desire of some neoconservatives to attack Iran one way or another, even if it means crippling a major source of oil and destabilizing the worldwide economy. invest True Foreign Aid 01 May 2006    Texas Straight Talk 01 May 2006 verse 6 ... Cached Likewise with the so-called Millennium Challenge Account, which sends US aid to countries that meet US-determined economic reform criteria. The fact is, countries that enact solid economic policies will attract many times the amount of private foreign investment on international capital markets than they receive through the Millennium Challenge program. invest The Annual Foreign Aid Rip-Off 05 June 2006    Texas Straight Talk 05 June 2006 verse 6 ... Cached Also, this year Congress will nearly double funding for the monstrous Millennium Challenge program. This is billed as a different kind of foreign aid, in that it only goes to governments that pursue “free market” economic and social reforms. Of course this is a waste of money: governments that pursue wise economic policies will attract much more in foreign private investment than the US government can send them. The true reward for sound economic policies is increased prosperity. Foreign aid does not purchase that prosperity but in fact distorts internal markets and props up inefficient companies. invest Why Won't Congress Abolish the Estate Tax? 12 June 2006    Texas Straight Talk 12 June 2006 verse 7 ... Cached The real motivation behind the estate tax is a deep-seated hostility to property rights, and a misguided fear of family dynasties. But people don’t keep money in mattresses anymore. Money inherited from an estate is either spent, saved, or invested—all of which are better for the economy than sending it to Washington, where bureaucratic overhead consumes at least 50 cents of every dollar. invest Why Won't Congress Abolish the Estate Tax? 12 June 2006    Texas Straight Talk 12 June 2006 verse 13 ... Cached First, it discourages savings and investment. invest Why Won't Congress Abolish the Estate Tax? 12 June 2006    Texas Straight Talk 12 June 2006 verse 15 ... Cached Third, it stifles investment. invest Taxes, Spending, and Debt are the Real Issues 16 October 2006    Texas Straight Talk 16 October 2006 verse 4 ... Cached Lower taxes benefit all Americans by increasing economic growth and encouraging wealth creation. I’m in favor of cutting everybody’s taxes – rich, poor, and otherwise. Whether a tax cut reduces a single mother’s payroll taxes by forty dollars a month, or allows a business owner to save thousands in capital gains and hire more employees, the net effect is beneficial. Both either spend, save, or invest the extra dollars, which helps all of us more than if those dollars were sent to the black hole known as the federal Treasury. invest Taxes, Spending, and Debt are the Real Issues 16 October 2006    Texas Straight Talk 16 October 2006 verse 7 ... Cached The question to ask yourself is this: What would I do with the money withheld from my paycheck each month? The answer is simple: you would spend, save, or invest the money, all of which do more for the economy and society than sending it to Washington. Thanks to the deception of income tax withholding, however, some people actually look forward to tax time and a much-anticipated refund. Imagine how quickly Americans would demand lower taxes and spending if they had to write the federal government a check each month! invest Do Tax Cuts Cost the Government Money? 23 October 2006    Texas Straight Talk 23 October 2006 verse 6 ... Cached I reject the notion that tax cuts harm the economy. The economy suffers when government takes money from your paycheck that you otherwise would spend, save, or invest. Taxes never create prosperity. Private-sector innovation and productivity are the engines that drive our economy, regardless of what politicians tell us. invest Do Tax Cuts Cost the Government Money? 23 October 2006    Texas Straight Talk 23 October 2006 verse 9 ... Cached Various other taxes also must be reduced. Capital gains taxes are terribly counterproductive, punishing those who save and invest. Payroll taxes impose a tremendous compliance burden on businesses, especially smaller entrepreneurs who cannot hire an accounting department. Federal gas taxes should be slashed to provide taxpayers relief at the pump. Most importantly, federal spending must be dramatically reduced so that all Americans can go back to working for themselves instead of working to pay their taxes. invest Demographic Reality and the Entitlement State 13 November 2006    Texas Straight Talk 13 November 2006 verse 3 ... Cached The Government Accountability Office, or GAO, is an investigative arm of Congress charged with the thankless task of accounting for the money received and spent by the federal government. As you might imagine, people who spend all day examining the nitty-gritty realities of federal spending and deficits might not share the voters' enthusiasm for grand campaign promises. invest Monetary Inflation is the Problem 04 December 2006    Texas Straight Talk 04 December 2006 verse 9 ... Cached The precipitous drop in the dollar shows how investors around the globe are very concerned about American deficits and debt. When government policies in a fiat system are the sole measure of a currency’s worth, the currency markets act as a reliable barometer of how those policies are viewed around the world. Politicians often manage to fool voters and the media, but they rarely fool the financial markets over time. When investors lack faith in the U.S. dollar, they really lack faith in the economic policies of the U.S. government. invest Don't Blame the Market for Housing Bubble 19 March 2007    Texas Straight Talk 19 March 2007 verse 9 ... Cached Fed credit also distorts mortgage lending through Fannie Mae and Freddie Mac, two government schemes created by Congress supposedly to help poor people. Fannie and Freddie enjoy an implicit guarantee of a bailout by the federal government if their loans default, and thus are insulated from market forces. This insulation spurred investors to make funds available to Fannie and Freddie that otherwise would have been invested in other securities or more productive endeavors, thereby fueling the housing boom. invest The Federal Reserve Monopoly over Money 09 April 2007    Texas Straight Talk 09 April 2007 verse 5 ... Cached Few Americans give much thought to the Federal Reserve System or monetary policy in general. But even as they strive to earn a living, and hopefully save or invest for the future, Congress and the Federal Reserve Bank are working insidiously against them. Day by day, every dollar you have is being devalued. invest Unconstitutional Legislation Threatens Freedoms 07 May 2007    Texas Straight Talk 07 May 2007 verse 4 ... Cached There is no evidence that local governments are failing to apprehend and prosecute criminals motivated by prejudice, in comparison to the apprehension and conviction rates of other crimes. Therefore, new hate crime laws will not significantly reduce crime. Instead of increasing the effectiveness of law enforcement, hate crime laws undermine equal justice under the law by requiring law enforcement and judicial system officers to give priority to investigating and prosecuting hate crimes. Of course, all decent people should condemn criminal acts motivated by prejudice. But why should an assault victim be treated by the legal system as a second-class citizen because his assailant was motivated by greed instead of hate? invest Aging Infrastructure 27 August 2007    Texas Straight Talk 27 August 2007 verse 6 ... Cached As the so-called Highway Trust Fund is set to go bankrupt as early as 2009, private investment firms are gearing up for partnerships, which could be a positive step, if handled sensibly. What we need to avoid are items such as the Trans Texas Corridor (TTC), which is phase 1 of the NAFTA Super Highway . The Spanish firm Cintra is set to take over toll collections after the TTC’s completion, however it is unclear that they’ll have any obligations for maintenance. The cost is being socialized, while the profit is privatized, effectively making the American people pay for it twice. invest Aging Infrastructure 27 August 2007    Texas Straight Talk 27 August 2007 verse 7 ... Cached Infrastructure, in a capitalist model, is an asset worthy of maintaining to ensure continuity of revenue. In a government controlled model infrastructure is nothing but a cumbersome liability. This should be taken into consideration when developing plans to keep our current infrastructure safe. Privatization should be used to encourage maintenance and safety, and where private companies truly invest and bear the upfront costs in return for ability to collect tolls or usage fees in some form. But public/private partnerships that look more like corporate welfare must be avoided. invest The Money Has to Come From Somewhere 23 September 2007    Texas Straight Talk 23 September 2007 verse 4 ... Cached In a very real sense, the Fed and the government are close to going over the spending limit of our nation’s credit card. We rely on foreign investors to buy our debt so our government can maintain its appetite for spending. Yet the market for US Treasury Bonds is rapidly shrinking as yield declines. Still the government will need an estimated $100 billion more for every year we “stay the course” in Iraq , not to mention what a possible conflict in Iran could cost. invest Taxing Ourselves to Death 14 October 2007    Texas Straight Talk 14 October 2007 verse 6 ... Cached The death tax punishes one of the greatest and ultimate satisfactions of achieving the American dream – the knowledge that your life’s work is an investment in your family’s future. Instead of being able to focus on hard work, however, death tax provisions keep countless estate planners working countless hours helping Americans negotiate through complicated tax laws just to keep the fruits of their life’s work out of the squandering hands of government. invest Taxing Ourselves to Death 14 October 2007    Texas Straight Talk 14 October 2007 verse 7 ... Cached Other anti-property rights provisions in the Tax Collection Responsibility Act make desperate last attempts to extract the most amount of revenue possible from expatriots on their way out the door. A telling signal that a country is taxing itself to death is capital flight and expatriation. When successful Americans no longer feel their property is secure from government thieves, and they have too much to lose by staying, they vote with their feet and go elsewhere. This country is poorer for the loss of that citizen’s investment here, but it is their right to keep and enjoy what they have built up. How dare Congress or the IRS try to deny them that? And what message does that send to the next generation of young entrepreneurs? invest Pain at the Pump 25 November 2007    Texas Straight Talk 25 November 2007 verse 5 ... Cached I've introduced The Affordable Gas Price Act (HR 2415) to deal with some of these issues. My bill would suspend Federal fuel taxes when prices rise above $3.00 a gallon, giving some immediate relief at the pump. It would also repeal misguided legislation that causes more investment in attorneys and nuisance litigation than in actually producing affordable gasoline and strengthening our refining capacity. Also, it would open up ANWR for oil exploration and repeal the federal moratorium on off-shore drilling. invest On Foreign Entanglements: The Ties that Strangle 30 December 2007    Texas Straight Talk 30 December 2007 verse 4 ... Cached Musharraf, unfortunately, appears to have learned how to work our system, much in the way a career welfare recipient has learned to do the same. The perpetual welfare recipient promises to look for a job. Musharraf has promised to look for Bin Laden. Both are terrible investments of American taxpayer dollars, however with Musharraf, its been an astonishing $10 billion loss over the last few years. But it is even worse than that. With his recent actions declaring martial law, and dismissing the justices of the supreme court, he is to the rest of the world, and to Pakistanis, a wildly unpopular, power hungry, brutal military dictator. The perception by most is that we are propping him up while simultaneously urging Ms. Bhutto back into Pakistan as a lamb to the slaughter. invest Economic Stimulus Concerns 27 January 2008    Texas Straight Talk 27 January 2008 verse 6 ... Cached ·Full immediate expensing for major business asset investments invest Paving Paradise 03 February 2008    Texas Straight Talk 03 February 2008 verse 4 ... Cached The principle of private property is the cornerstone to a free and prosperous society. In situations where a colossal government land grab is a distinct possibility, investment or improvement becomes more risky with an uncertain future and tends not to happen. How do you sell land that may or may not be taken by the government at some point in the not too distant future? Who would buy it? How do you cultivate or build on, or even near, land that may or may not be paved over and turned into a massive, noisy thoroughfare in a few years? invest Making a Recession Great 16 March 2008    Texas Straight Talk 16 March 2008 verse 2 ... Cached House Democrats recently adopted a budget with massive tax hikes, many of which are directed at those Americans who can least afford them. By allowing the Bush tax cuts to expire in 2010, this budget will raise income taxes not only on those in the highest income brackets, but raises the lowest bracket from 10% to 15% as well. Estates would again be taxed at 55%. The child tax credit would drop from $1000 to $500. Senior citizens relying on investment income would be hurt by increases in dividend and capital gains taxes. It's not just that the Democrats want to raise taxes on the rich. They want to raise taxes on everybody. invest On Money, Inflation and Government 30 March 2008    Texas Straight Talk 30 March 2008 verse 4 ... Cached You see, the Fed creates new money and uses it to purchase securities from banks. Flush with funds, these banks seek to put this money to use. During the Fed's expansionary period, much of this money went to home loans. Through a combination of federal government inducements to lend to risky borrowers, and the Fed's supply of easy money, the housing bubble took shape. Fannie Mae and Freddie Mac were encouraged to purchase and securitize mortgages, while investors, buoyed by implicit government backing, rushed to provide funding. Money that could have been invested in more productive, less risky sectors of the economy was thereby malinvested in subprime mortgage loans. invest Bailing Out Banks 13 April 2008    Texas Straight Talk 13 April 2008 verse 5 ... Cached The PDCF in particular is a departure from the established pattern of Fed intervention because it targets the primary dealers, the largest investment banks who purchase government securities directly from the New York Fed. These banks have never before been allowed to borrow from the Fed, but thanks to the Fed Board of Governors, these investment banks can now receive loans from the Fed in exchange for securities which will in all likelihood soon lose much of their value. invest Big Government Responsible for High Gas Prices 04 May 2008    Texas Straight Talk 04 May 2008 verse 4 ... Cached Basic economics says that when government restricts the supply of a good, the price will increase. Yet Congress continues to reject simple measures that could increase the supply of oil. For example, Congress refuses to allow reasonable, environmentally sensitive, offshore drilling. Congress also refuses to remove the numerous regulatory hurdles that add to the prohibitively expensive task of constructing new refineries. Building a new refinery requires billions of dollars in capital investment. It can take several years just to obtain the necessary federal permits. Even after the permits are obtained, construction of a refinery may still be delayed or even halted by frivolous lawsuits. It is no wonder that there has not been a new refinery constructed in the United States since 1976. invest Big Government Responsible for Housing Bubble 11 May 2008    Texas Straight Talk 11 May 2008 verse 2 ... Cached The House passed two bills attempting to rehabilitate the housing and mortgage market this week. There doesn't seem to be any shortage of criticism and blame for the bad decisions, and rightly so. Lenders and banks do share much of the blame for the overheated market. Lending standards were relaxed, or even abandoned altogether, creating an exaggerated pool of homebuyers that led to ballooning home prices that many, especially real estate investors, expected to continue forever. Now that the bubble has burst, the losses are staggering. invest 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. 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.