U.S. Rep. Ron Paul | recession |
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State Of The Republic
28 January 1998 1998 Ron Paul 2:67
Long-term, the average American citizen suffers through higher interest rates, rising prices, recessions and lower standard of living, but the cause and effect is conveniently hidden from the public and the Congress.
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The Bubble
28 April 1998 1998 Ron Paul 39:4
Alan Greenspan took over the Fed a few months before the stock market crash of October, 1997. In the 10 years that Greenspan has headed the Fed, $2 trillion of new credit has been created as measured by M3. Banks threatened by bankruptcy in the early 1990s received generous assistance from the Fed policy of low interest rates and rapid credit expansion as a response to the recession of 1991. Fed fund rates were held at 3 percent for well over a year. This generous dose of Fed credit has fueled the 5-year superboom on Wall Street.
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The Bubble
28 April 1998 1998 Ron Paul 39:29
LEARN FROM JAPAN The most important thing to remember is that perceptions and economic conditions here can change rapidly, just as they did last summer in the East Asian countries with the bursting of their financial bubble. They are now in deep recession.
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The Bubble
28 April 1998 1998 Ron Paul 39:50
The same sentiment exists here in the United States, but it’s not quiet as bad at this particular time because our economy is doing better. But in the midst of a deep recession, the scapegoats will be found and alien workers will always be a target.
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Worldwide Financial Crisis
10 September 1998 1998 Ron Paul 97:6
The current system eventually promotes overcapacity and debt that cannot be sustained. The result is a slump, a recession, or even a depression. When the government makes an effort to prevent a swift, sharp correction, the agony of liquidation is prolonged and deepened. This is what is happening in Japan and other Asian countries today. We made the same mistake in the 1930s.
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Congress Relinquishing The Power To Wage War
2 February 1999 1999 Ron Paul 4:68
Credit expansion is the root cause of all financial bubbles. Fiat monetary systems inevitably cause unsustainable economic expansion that results in a recession and/or depression. A correction always results, with the degree and duration being determined by government fiscal policy and central bank monetary policy. If wages and prices are not allowed to adjust and the correction is thwarted by invigorated monetary expansion, new and sustained economic growth will be delayed or prevented. Financial dislocation caused by central banks in the various countries will differ from one to another due to political perceptions, military considerations, and reserve currency status.
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A Republic, If You Can Keep It
31 January 2000 2000 Ron Paul 2:105
All the price inflation, all the distortions, all the recessions and unemployment should be laid at the doorstep of the Federal Reserve. The Fed is an accomplice in promoting all unnecessary war, as well as the useless and harmful welfare programs, with its willingness to cover Congress’ profligate spending habits.
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Manipulating Interest Rates
May 15, 2000 2000 Ron Paul 36:2
* Although many have done well during the last seven years of economic growth, many middle-income families have had to struggle just to keep up. For them, inflation is not dead and the easy fortunes made on Wall Street are as far removed as winning the lottery. When the economy enters into recession, this sense of frustration will spread.
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INTERNATIONAL TRADE
May 23, 2000 2000 Ron Paul 39:6
The Federal Reserve believes that prosperity causes high prices and rising wages, thus causing it to declare war on a symptom of its own inflationary policy, deliberately forcing an economic slowdown, a sad and silly policy, indeed. The Fed also hopes that higher interest rates will curtail the burgeoning trade deficit and prevent the serious currency crisis that usually results from currency-induced trade imbalances. And of course, the Fed hopes to do all this without a recession or depression.
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INTERNATIONAL TRADE
May 23, 2000 2000 Ron Paul 39:7
That is a dream. Not only is the dollar due for a downturn, the Chinese currency is, as well. When these adjustments occur and recession sets in, with rising prices in consumer and producer goods, there will be those who will argue that it happened because of, or the lack thereof, of low tariffs and free trade with China.
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FSC Repeal And Extra-Territorial Income Exclusion Act Of 2000
September 12, 2000 2000 Ron Paul 73:14
* millions of dollars of U.S. exports. These trade problems will only worsen if the world slips into a recession when protectionist sentiments are strongest. Also, since currency fluctuations by their very nature stimulate trade wars, this problem will continue with the very significant weakness of the EURO.
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FSC Repeal And Extra-Territorial Income Exclusion Act Of 2000
September 12, 2000 2000 Ron Paul 73:17
* In addition to the danger of a recession and a continual problem with currency fluctuation, there are also other problems that will surely aggravate this growing trade war. The Europeans have already complained and have threatened to file suit in the WTO against the Americans for selling software products over the Internet. Europeans tax their Internet sales and are able to get their products much cheaper when bought from the United States thus penalizing European countries. Since the goal is to manage things in a so-called equitable manner the WTO very likely could rule against the United States and force a tax on our international Internet sales.
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CONGRESS IGNORES ITS CONSTITUTIONAL RESPONSIBILITY REGARDING MONETARY POLICY
October 11, 2000 2000 Ron Paul 84:6
Already we hear the pundits arguing over who is to be blamed if the markets crash or a recession hits. Some have given the current President credit for the good times we have enjoyed. If the crash comes before January, some will place the blame on him as well. If problems hit later, the next President will get the blame. But the truth is our Presidents deserve neither the credit for the good times nor the blame for the bad times.
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FSC Repeal and Extraterritorial Income Exclusion Act of 2000
14 November 2000 2000 Ron Paul 94:12
H.R. 4986 will only anger the European Union and accelerate the trade war. Most likely within two months, the WTO will give permission for the Europeans to place punitive tariffs on hundreds of millions of dollars of U.S. exports. These trade problems will only worsen if the world slips into a recession when protectionist sentiments are strongest. Also, since currency fluctuations by their very nature stimulate trade wars, this problem will continue with the very significant weakness of the EURO.
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FSC Repeal and Extraterritorial Income Exclusion Act of 2000
14 November 2000 2000 Ron Paul 94:15
In addition to the danger of a recession and a continual problem with currency fluctuation, there are also other problems that will surely aggravate this growing trade war. The Europeans have already complained and have threatened to file suit in the WTO against the Americans for selling software products over the Internet. Europeans tax their Internet sales and are able to get their products much cheaper when bought from the United States thus penalizing European countries. Since the goal is to manage things in a so-called equitable manner the WTO very likely could rule against the United States and force a tax on our international Internet sales.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:1
* Mr. Speaker, more and more people now are talking about an oncoming recession. I tend to agree. I think we are moving into a recession, and for good reasons. But already the question that comes up so often among politicians is, who will get blamed? Will the current President be blamed for the recession or will the next President be blamed? Will the current Congress be blamed for the recession or the next Congress?
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:3
* Soon we will hear from many, we have already heard some from the financial circles as well as from politicians, to lower interest rates. This will keep the economy from turning down. It will prevent the recession from coming. And if we do have a recession, it is always said, what you do is you lower the interest rates. But dwelling on the interest rates and not talking about what it takes to lower interest rates I think is a serious mistake.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:9
* Now, if in the midst of a recession the Federal Reserve decides that they want to lower interest rates but the dollar is also dropping and we lower interest rates, we cause the dollar to go down and price inflation will occur because of that. So it is not quite so simple as saying, well, let us just tell the Fed what to do, lower the interest rates and it will solve our problems.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:11
* The reason we should be concerned about this more so than we are is the fact that, when we are in a recession, revenues go crashing down. The inflation that occurred over these past 10 years, which was artificially created, giant revenues from capital gains from this artificially high stock market. Well that is all being reversed now, so revenues are going to go down now, and we will have to deal with this in the next Congress.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:13
* What I think is going to happen is that once the recession sets in and there is a need for additional spending and there will be no longer a concern at all about the deficit; and that is when the Congress will spend, the Federal Reserve will inflate. And it may temporarily help, but in the long-run it does not do the trick. It is not the way we gain economic prosperity out of a printing press. We just cannot allow a Federal Reserve to believe it creates capital by creating credit out of thin air.
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ECONOMIC UPDATE
December 4, 2000 2000 Ron Paul 97:17
* Congress should be prepared for some surprises in the not-to-distance future. A slumping economy or definite recession will obviously lower revenues. This will reverse the illusion of the grand surpluses that everyone has been anxious to spend. Instead of expenditures being held under control, expect them to rise rapidly.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:24
As we move into the next Congress, some worry that gridlock will make it impossible to get needed legislation passed. This seems highly unlikely. If big government supporters found ways to enlarge the government in the past, the current evenly split Congress will hardly impede this trend and may even accelerate it. With a recession on the horizon, both sides will be more eager than ever to cooperate on expanding federal spending to stimulate the economy , whether the fictitious budget surplus shrinks or not.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:39
The booming economy of the last six years has come to an end. The only question remaining is how bad the slump will be. Although many economists expressed surprise at the sudden and serious shift in sentiment, others have been warning of its inevitability. Boom times built on central-bank credit creation always end in recession or depression. But central planners, being extremely optimistic, hope that this time it will be different; that a new era has arrived.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:44
The majority of Americans have not yet accepted the harsh reality that this less-threatening, friendlier type of economic planning is minimally more efficient than that of the socialist planners with their five-year economic plans. We must face the fact that the business cycle, with its recurring recessions, wage controls, wealth transfers, and social discord are still with us and will get worse unless there is a fundamental change in economic and monetary policy. Regardless of the type, central economic planning is a dangerous notion.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:45
In an economic downturn, a large majority of our political leaders believe that the ill effects of recession can be greatly minimized by monetary and fiscal policy. Although cutting taxes is always beneficial, spending one’s way out of a recession is no panacea. Even if some help is gained by cutting taxes or temporary relief given by an increase in government spending, they distract from the real cause of the downturn: previously pursued faulty monetary policy. The consequences of interest-rate manipulation in a recession-along with tax and spending changes-are unpredictable and do not always produce the same results each time they’re used. This is why interest rates of less than 1% and massive spending programs have not revitalized Japan’s economy or her stock market. We may well be witnessing the beginning of a major worldwide economic downturn, making even more unpredictable the consequence of conventional western-style central bank tinkering.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:51
When the recession hits full force, even the extraordinary power and influence of Alan Greenspan and the Federal Reserve, along with all the other central banks of the world, won’t be able to stop the powerful natural economic forces that demand equilibrium. Liquidation of unreasonable debt and the elimination of the over-capacity built into the system and a return to trustworthy money and trustworthy government will be necessary. Quite an undertaking!
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:56
No one should be surprised when recessions hit or bewildered as to their cause or danger. The greater surprise should be the endurance of an economy fine-tuned by a manipulative central bank and a compulsively interventionist Congress. But the full payment for all past economic sins may now be required. Let’s hope we can keep the pain and suffering to a minimum.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:57
The most recent new era of the 1990s appeared to be an answer to all politicians’ dreams: a good economy, low unemployment, minimal price inflation, a skyrocketing stock market, with capital gains tax revenues flooding the Treasury, thus providing money to accommodate every special-interest demand. But it was too good to be true. It was based on an inflated currency and massive corporate, personal, and government borrowing. A recession was inevitable to pay for the extravagance that many knew was an inherent part of the new era, understanding that abundance without a commensurate amount of work was not achievable.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:58
The mantra now is for the FED to quickly lower short-term interest rates to stimulate the economy and alleviate a liquidity crisis. This policy may stimulate a boom and may help in a mild downturn, but it doesn’t always work in a bad recession. It actually could do great harm since it could weaken the dollar, which in turn would allow market forces instead to push long-term interest rates higher. Deliberately lowering interest rates isn’t even necessary for the dollar to drop, since our policy has led to a current-account deficit of a magnitude that demands the dollar eventually readjust and weaken.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:71
Inflation is socially disruptive in that the management of fiat money-as all today’s currencies are- causes great hardships. Unemployment is a direct consequence of the constantly recurring recessions. Persistent rising costs impoverish many as the standard of living of unfortunate groups erodes. Because the pain and suffering that comes from monetary debasement is never evenly distributed, certain segments of society can actually benefit.
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CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:112
We have just gone through a roaring decade with many Americans enjoying prosperity beyond their wildest dreams. Because this wealth was not always earned and instead resulted from borrowing, speculation, and inflation, the correction that’s to come will contribute to the social discord already inherent in a system of government interventionism. If, indeed, the economy enters a severe recession, which is highly possible, it will compound the problems characteristic of a system that encourages government supervision over all that we do.
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POTENTIAL FOR WAR
February 08, 2001 2001 Ron Paul 10:44
If indeed the economy enters a severe recession, which is highly possible, it will compound the problems characteristic of a system that encourages government supervision over all that we do.
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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.
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The Economy
February 13, 2001 2001 Ron Paul 13:2
When one is permitted to use “rising prices” as the definition for inflation it is followed by a nonsensical assumption that a robust economy is the cause for rising prices. Foolish conclusions of this sort lead our economic planners and Federal Reserve officials to attempt to “solve ” the problem of price or labor-cost inflation by precipitating an economic slowdown. Such a deliberate policy is anathema to a free market economy. It’s always hoped that the planned economic slowdown will never do serious harm, but this is never the case. The recession with rising prices still comes. And that’s what we are seeing today.
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The Economy
February 13, 2001 2001 Ron Paul 13:8
When control is lost in a sharp downturn, dealing with it by massive monetary inflation, may well cause something worse than the stagflation that we experienced in the 1970s; an inflationary recession or depression could result.
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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.
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LIFT THE UNITED STATES EMBARGO ON CUBA — HON. RON PAUL
July 26, 2001 2001 Ron Paul 66:12
Whereas, Cuba imports nearly a billion dollars’ worth of food every year, including approximately 1,100,000 tons of wheat, 420,000 tons of rice, 37,000 tons of poultry, and 60,000 tons of dairy products; these amounts are expected to grow significantly in coming years as Cuba slowly recovers from the severe economic recession it has endured following the withdrawal of subsidies from the former Soviet Union in the last decade; and
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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.
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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.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:22
The next recession, from which I’m sure we’re already suffering, will be even more pervasive worldwide than the one in the 1930s due to the artificial nature of modern globalism, with world paper money and international agencies deeply involved in the economy of every nation. We have witnessed the current and recent bailouts in Mexico, Argentina, Brazil, Turkey and the Far East. While resisting the market’s tendency for correction, faith in government deficits and belief in paper money inflation will surely prolong the coming worldwide crisis.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:23
Alan Greenspan made a concerted effort to stave off the 1991-1992 recession with numerous reductions in the Fed funds rate to no avail. The recession hit, and most people believe it led to George Bush’s defeat in the 1992 election. It wasn’t that Greenspan didn’t try, and in many ways the Bush people’s criticism of Greenspan’s effort is not justified. Greenspan, the politician, would have liked to please the elder Bush, but was unable to control events as he had wished. This time around, however, he’s been much more aggressive with the half-point cuts along with seven cuts in just eight months, for a total of a three-point cut in the Fed funds rate. But guess what? So far it hasn’t helped. Stocks continue to slide, and the economy is still in the doldrums. It is now safe to say that Greenspan is pushing on a string. In the year 2000, bank loans and commercial paper were growing at an annualized rate of 23%. In less than a year, in spite of this massive influx of new credit, these loans have crashed to a rate of minus 5%.
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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.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:41
Economic adjustments wouldn’t be so bad, as many mild recessions have proven, except that wealth is inexorably and unfairly transferred from middle class and poor to the rich. Job losses and the rising cost of living hurt some more than others. If our course is not changed, the entire middle-class prosperity can be endangered, as has happened all too often in other societies that pursued a false belief that paper money could be satisfactorily managed.
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The US Dollar and the World Economy
September 6, 2001 2001 Ron Paul 75:46
But we must also reject the notion that one man, Alan Greenspan, or any other chairman of the Federal Reserve Board, can know what the proper money supply and interest rates ought to be- only the market can determine that. This must happen if we ever expect to avoid continuous and deeper recessions and to get the economy growing in a healthy and sustainable fashion. It also must happen if we want to preserve free-market capitalism and personal liberty.
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Sometimes The Economy Needs A Setback
10 September 2001 2001 Ron Paul 77:11
Röpke, wrote before the 1946 Employment Act, which directed the United States government to cut recessions short — using tax breaks, for example, or cuts in interest rates — even if these actions stymie a salutary process of economic adjustment. No one doubts the humanity of this law. Yet equally, no one can doubt the inhumanity of a decade-long string a palliatives in Japan, intended to insulate the Japanese people from the consequences of their bubble economy of the 1980’s. Rather than suppressing the bust, the government has only managed to prolong it, for a decade and counting.
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A SAD STATE OF AFFAIRS --
October 25, 2001 2001 Ron Paul 90:27
It is both annoying and sad that there is so little interest by anyone in Washington in free market solutions to the world’s economic problems. True private ownership of property without regulation and abusive taxation is a thing of the past. Few understand how the Federal Reserve monetary policy causes the booms and the busts that, when severe, as now, only serve to enhance the prestige of the money managers- while most politicians and Wall Streeters demand that the Fed inflate the currency at an even more rapid rate. Today’s conditions give license to the politicians to spend our way out of recession, they hope.
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A SAD STATE OF AFFAIRS --
October 25, 2001 2001 Ron Paul 90:28
One thing for sure, as a consequence of the recession and the 9-11 tragedy, is that big spending and deficits are alive and well. Even though we are currently adding to the national debt at the rate of $150 billion per year, most politicians still claim that Social Security is sound and has not been touched. At least the majority of American citizens are now wise enough to know better.
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The Case For Defending America
24 January 2002 2002 Ron Paul 1:8
Although we have suffered for years from a flawed foreign policy and we were already in a recession before the attacks, the severity of these events has forced many of us to reassess our foreign and domestic policies. Hopefully, positive changes will come of this.
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The Case For Defending America
24 January 2002 2002 Ron Paul 1:9
It is just as well that the economy was already in a recession for 6 months prior to the September attacks. Otherwise the temptation would have been too great to blame the attacks for the weak economy rather than look for the government policies responsible for the recession. Terrorist attacks alone, no matter how disruptive, could never be the source of a significant economic downturn.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:3
A similar conflict also exists once government attempts to legislate an end to a recession. In the 1970s, wage and price controls were used to suppress price inflation and to help the economy, without realizing the futility of such a policy. Not only did it not work, the economy was greatly harmed. Legislation, per se, is not necessarily harmful, but if it reflects bad policy, it is. The policy of wage and price controls makes things worse and represents a serious violation of people’s rights.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:4
Today, we hear from strong advocates of higher taxation, increased spending, higher budget deficits, tougher regulations, bailouts and all kinds of subsidies and support programs as tools to restore economic growth. The Federal Reserve recognized early on the severity of the problems and, over the past year, lowered short-term interest rates an unprecedented 11 times, dropping the Fed funds rate from 6 1/2 % to 1 3/4 %. This has not helped, and none of these other suggestions can solve the economic problems we face either. Some may temporarily help a part of the economy, but the solution to restoring growth lies not in more government but less. It is precisely too much government, and especially manipulation of credit by the Federal Reserve, that precipitated the economic downturn in the first place. Increasing that which caused the recession can’t possibly, at the same time, be the solution.
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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.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:13
Monetary inflation is the chief cause of recessions. Therefore, we must never expect that this same policy will reverse the economic dislocations it has caused.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:27
Very few in Washington, however, recognize the dire consequences to economic prosperity that welfarism, warfarism, and inflationism cause. Most believe that the occasional recession can be easily handled by government programs and a Federal Reserve policy designed to stimulate growth. It’s happened many times already, and almost everyone believes that in a few months our economy and stock market will be roaring once again.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:29
Every recession in the last 30 years, since the dollar became a purely fiat currency, has ended after a significant correction and resumption of all the bad policies that caused the recession in the first place. Each rebound required more spending, debt and easy credit than the previous recovery did. And with each cycle, the government got bigger and more intrusive.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:36
This special status of the dollar only makes the problem of the illusion of wealth much worse. Since our bubble can last longer due to our perceived military and economic strength, it appears that our wealth is much greater than it actually is. Because of our unique position as the economic powerhouse of the world, we’re able to borrow more than anyone else. Foreigners loan us exorbitant sums, as our current account deficit soars out of sight. The U.S. now has a foreign debt of over $2 trillion. Perceptions and illusions and easy credit allow our consumers to spend, even in recessions, by rolling up even more debt in a time when market forces are saying that borrowing should decrease and the debt burden lessen. Our corporations follow the same pattern, keeping afloat with more borrowing.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:45
It’s possible this recession may end in a few months as the optimists predict, but if it does, our problems are only delayed. The fundamental correction will still be necessary to preserve the productivity of a market economy. If we do not change our ways, the financial bubble will just go back to inflating again. The big correction, like that which Argentina is now experiencing with rapid disappearance of paper wealth, will eventually hit our economy. The longer the delay, the bigger will be the bust and greater the threat to our freedoms and institutions.
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Stimulating The Economy
February 7, 2002 2002 Ron Paul 5:65
11. The economic ramifications of our war on terrorism are difficult to ascertain but could be quite significant. Although the recession was obviously not caused by the attacks, the additional money spent and the effect of all the new regulations cannot help the recovery. When one adds up the domestic costs, the military costs and the costs of new regulations, we can be certain that deficits are going to grow significantly, and the Federal Reserve will be further pressured to pursue a dangerous monetary inflation. This policy will result in higher rather than lower interest rates, a weak dollar and certainly rising prices. The danger of our economy spinning out of control should not be lightly dismissed.
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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.
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Has Capitalism Failed?
July 9, 2002 2002 Ron Paul 66:6
But what is not discussed is the actual cause and perpetration of the excesses now unraveling at a frantic pace. This same response occurred in the 1930s in the United States as our policymakers responded to the very similar excesses that developed and collapsed in 1929. Because of the failure to understand the problem then, the depression was prolonged. These mistakes allowed our current problems to develop to a much greater degree. Consider the failure to come to grips with the cause of the 1980s bubble, as Japan’s economy continues to linger at no-growth and recession level, with their stock market at approximately one-fourth of its peak 13 years ago. If we’re not careful- and so far we’ve not been- we will make the same errors that will prevent the correction needed before economic growth can be resumed.
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Congress Sgould Think Twice Before Thrusting U.S. Into War
September 4, 2002 2002 Ron Paul 81:15
There are economic reasons to avoid this war. We can do serious damage to our economy. It is estimated that this venture into Iraq may well cost over a hundred billion dollars. Our national debt right now is increasing at a rate of over $450 billion yearly, and we are talking about spending another hundred billion dollars on an adventure when we do not know what the outcome will be and how long it will last? What will happen to oil prices? What will happen to the recession that we are in? What will happen to the deficit? We must expect all kinds of economic ramifications.
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Avoid War With Iraq
4 September 2002 2002 Ron Paul 82:11
There are economic reasons that we must be careful for. We can make serious economic mistakes. It is estimated that this venture into Iraq may well cost over a hundred billion dollars. Our national debt right now is increasing at a rate of over $450 billion and we are talking about spending another hundred billion dollars on an adventure that we do not know what the outcome will be and how long this will last? What will happen to oil prices? What will happen to the recession that we are in? What is going to happen to the deficit? All kinds of economic ramification. So we better not make the mistake of going into something that really we have no business getting into.
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Abolishing The Federal Reserve
10 September 2002 2002 Ron Paul 86:3
From the Great Depression, to the stagflation of the seventies, to the burst of the dotcom bubble last year, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts.
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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?
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Abolishing The Federal Reserve
10 September 2002 2002 Ron Paul 86:24
In the real world, of course, there is a lag time between cause and effect. The Fed has been inflating the currency at very high levels for longer than a year. The consequences of this disastrous policy are showing up only recently in the form of a falling dollar and higher gold prices. And so what does the Fed do? It is pulling back now. For the first time in nearly ten years, some measures of money (M2 and MZM) are showing a falling money stock, which is likely to prompt a second dip in the continuing recession.
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Abolishing The Federal Reserve
10 September 2002 2002 Ron Paul 86:25
Greenspan now finds himself on the horns of a very serious dilemma. If he continues to pull back on money, the economy could tip into a serious recession. This is especially a danger given rising protectionism, which mirrors the events of the early 1930s. On the other hand, a continuation of the loose policy he has pursued for a year endangers the value of the dollar overseas.
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Can We Afford this War?
September 24, 2002 2002 Ron Paul 89:1
Mr. Speaker, a casual analysis of the world economy shows it rapidly deteriorating into recession, with a possible depression on the horizon. Unemployment is sharply rising with price inflation rampant, despite official government inflationary reports. The world’s stock markets continue to collapse, even after trillions of dollars in losses have been recorded in the past 2 years. These losses already have set historic records.
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Can We Afford this War?
September 24, 2002 2002 Ron Paul 89:16
A nation suffering from recession can ill afford a foreign policy that encourages unnecessary military action that will run up huge deficits. Congress ought to pause a moment, and carefully contemplate the consequences of the decisions we are about to make in the coming days.
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Unintended Consequences
November 14, 2002 2002 Ron Paul 102:17
Our very weak economy could easily collapse with the additional burden of a costly war. War is never a way to make the people of a country better off. It does not end recessions, and is much more likely to cause one or make one much worse. A significant war will cause revenues to decrease, taxes to increase, inflation to jump, encourage trade wars, and balloon the deficit. Oil prices will soar and the dollar will retreat ever further.
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Republic Versus Democracy
29 January 2003 2003 Ron Paul 6:72
With the additional spending to wage war against terrorism at home, while propping up an ever-expensive and failing welfare state, and the added funds needed to police the world, all in the midst of a recession, we are destined to see an unbelievably huge explosion of deficit spending. Raising taxes will not help. Borrowing the needed funds for the budgetary deficit, plus the daily borrowing from foreigners required to finance our ever-growing account deficit, will put tremendous pressure on the dollar.
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The Financial Services Committee’s Terrible Blueprint for 2004
February 28, 2003 2003 Ron Paul 27:7
Perhaps the most disappointing omission from the committee’s views is the failure to address monetary policy. This is especially troubling given that many Americans have lost their jobs, while millions of others have seen severe declines in their net worth, because of the Federal Reserve’s continuing boom and bust monetary policy. It is long past time for Congress to examine seriously the need for reform of the system of fiat currency that is responsible for the cycle of booms and busts that plague the American economy. Until this committee addresses those issues, I am afraid the American economy may suffer more recessions or even depressions in the future.
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Don’t Antagonize our Trading Partners
April 1, 2003 2003 Ron Paul 41:7
The dollar has already significantly weakened this past year, and this trend will surely continue. A weaker dollar requires that we pay more for everything we buy overseas. Foreign borrowing will eventually become more difficult, and this will in time cause interest rates to rise. Be assured that domestic price inflation will accelerate. Economic law dictates that these events will cause the recession to linger and deepen.
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Abolishing The Federal Reserve
17 July 2003 2003 Ron Paul 83:4
From the Great Depression, to the stagflation of the seventies, to the burst of the dotcom bubble, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:22
The monetary issue, along with the desire to have free trade among the states, prompted those at the Constitutional Convention to seek solutions to problems that plagued the post-revolutionary war economy. This post-war recession was greatly aggravated by the collapse of the unsound fiat Continental dollar. The people, through their representatives, spoke loudly and clearly for gold and silver over paper.
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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.
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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.
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Paper Money and Tyranny
September 5, 2003 2003 Ron Paul 93:71
The set of circumstances we face today are unique and quite different from all the other recessions the Federal Reserve has had to deal with. Generally, interest rates are raised to slow the economy and dampen price inflation. At the bottom of the cycle interest rates are lowered to stimulate the economy. But this time around, the recession came in spite of huge and significant interest rate reductions by the Fed. This aggressive policy did not prevent the recession as was hoped; so far it has not produced the desired recovery. Now we’re at the bottom of the cycle and interest rates not only can’t be lowered, they are rising. This is a unique and dangerous combination of events. This set of circumstances can only occur with fiat money and indicates that further manipulation of the money supply and interest rates by the Fed will have little if any effect.
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Where To From Here?
November 20, 2004 2004 Ron Paul 81:24
There will be little resistance to spending and deficits because it will be claimed they are necessary to “fight terrorism.” The irony is that Patriot Act-type regulations were all proposed before 9-11, and are now becoming a costly burden to American businesses. I’m getting more calls every day from constituents who are being harassed by government bureaucrats for “infractions” of all kinds totally unrelated to national security. This immeasurable cost from the stepped-up activity of government bureaucrats will further burden our economy as it slips toward recession — and do little to enhance homeland security.
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Gold And The U.S. Dollar
25 April 2006 2006 Ron Paul 23:85
These were momentous monetary events, and every knowledgeable person worldwide paid close attention. Major changes were endured in 1979 and 1980 to save the dollar from disintegration. This involved a severe recession, interest rates over 21 percent, and general price inflation of 15 percent.
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Introduction Of The Federal reserve Board Abolition Act
15 June 2007 2007 Ron Paul 65:2
From the Great Depression, to the stagflation of the 70s, to the burst of the dotcom bubble, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts.
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“Monetary Policy and the State of the Economy”
February 27, 2008 2008 Ron Paul 9:2
A topic that is on the lips of many people during the past few months, and one with which I have greatly concerned myself, is that of moral hazard. We hear cries from all corners, from politicians, journalists, economists, businessmen, and citizens, clamoring for the federal government to intervene in the economy in order to forestall a calamitous recession. During the boom, many of these same individuals called for no end to the Fed’s easy credit. Now that the consequences of that easy money policy are coming home to roost, no one wants to face those ill effects.
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“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.
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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.
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Hearing on “The Economic Outlook”
April 2, 2008 2008 Ron Paul 18:6
The latest regulatory plan from the Treasury Department, with the potential to turn the Federal Reserve into a super-regulator overseeing state-chartered banks, bank holding companies, and acting as a guarantor of market stability, is another in a long line of half-baked government responses to financial difficulty. Recession after recession has not impressed upon government leaders the reality that the Federal Reserve’s monetary policy activities are what lead to market instability.
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Humphrey Hawkins Hearing on Monetary Policy
July 16, 2008 2008 Ron Paul 46:1
Mr. Chairman, today we find ourselves on the verge of an economic crisis the likes of which the United States has not seen in decades. Our economy is very clearly in a recession, and every time someone tells us that the worst has passed, another serious event takes place, as we saw once again last week and early this week. Everyone now realizes that the situation is dire, yet either no one understands the cause behind the credit crisis, or no one is willing to take the necessary steps to ensure as orderly an end to the crisis as possible. Instead, we hear talk of further bailouts. The Fed-brokered takeover of Bear Stearns, a supposed one-off incident, has now been joined by a potential bailout of the Government-Sponsored Enterprises, Fannie Mae and Freddie Mac.
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UNTITLED
3 October 2008 2008 Ron Paul 68:3
We want to do this it is said to prevent the recession or depression because that is unbearable. But the truth is you should have thought about that 10 or 15 years ago because the financial bubble created by the excess of credit and the lowering of the interest rate is the cause of the recession. The recession is a demand. It is a must; you can’t avoid it. Yes, it has been papered over several times over the last several decades, but that just made the bubble bigger.
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UNTITLED
3 October 2008 2008 Ron Paul 68:4
The message is now you can’t paper it over any longer. So the recession and/or depression will come.
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The Austrians Are Right
November 20, 2008 2008 Ron Paul 71:9
All the programs since the Depression were meant to prevent recessions and depressions. Yet all that was done was to plant the seeds of the greatest financial bubble in all history. Because of this lack of understanding, the stage is now set for massive nationalization of the financial system and quite likely the means of production.
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Bailout
January 14, 2009 2009 Ron Paul 8:6
Actually, the recession is therapy for all of the mistakes, but the mistakes come, basically, from a Federal Reserve system that’s causing too many people to make mistakes. It causes savers to make mistakes. Interest rates are lower than they should be, so they don’t save. In capitalism, capital comes from savings, but for decades now, capital has come from the printing press, and nobody has saved.
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LIVING BENEATH OUR MEANS
January 21, 2009 2009 Ron Paul 10:5
Today’s middle class and poor are suffering and the elite are being bailed out, and all the while the Federal Reserve refuses to tell the Congress exactly who has benefitted by its largesse. The beneficial corrections that come with a recession, of debt liquidation and removing the malinvestment, are delayed by government bailouts. This strategy proved in the late 1930s to transform a recession into a Great Depression and will surely do so again.
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FEDERAL RESERVE BOARD ABOLITION ACT
February 3, 2009 2009 Ron Paul 14:2
From the Great Depression, to the stagflation of the seventies, to the current economic crisis caused by the housing bubble, every economic downturn suffered by this country over the past century can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts.
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FEDERAL RESERVE IS THE CULPRIT
February 25, 2009 2009 Ron Paul 17:10
Inflating is never a benefit to freedom- loving people. It destroys prosperity and feeds the fires of war. It is responsible for recessions and depressions. It is deceptive, addictive, and causes delusions of grandeur with regards to wealth and knowledge.
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INTRODUCTION OF BILLS TO HELP THE UNEMPLOYED
March 4, 2009 2009 Ron Paul 22:1
Mr. PAUL. Madam Speaker, today I am introducing two pieces of legislation to help the increasing number of Americans who, because of the recession, have lost their jobs. The first bill, the Unemployed Tax Relief Act, makes a laid-off worker’s last paycheck tax free.
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Federal Reserve Monetizes Debt
April 1, 2009 2009 Ron Paul 41:4
It is said that this budget is going to be $3.6 trillion with a $1.1 trillion deficit. An amazing thing is that $1.1 trillion deficit is going to be $400 billion less than this year. I will wait and see if that really comes out because that probably won’t work out that way. Matter of fact, characteristically, the statistics that we hear when we talk about the budget are never reliable, especially when you’re in a recession. In a recession, nobody can protect the revenues. The revenues are going to be a lot lower than they said and the expenditures are going to be a lot higher.
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TRANSPARENCY AT THE FEDERAL RESERVE
December 1, 2009 2009 Ron Paul 100:7
What he does not recognize – nor does he want to admit – is that he is talking about symptoms while ignoring the source of the crisis: the Federal Reserve itself. More regulations will never compensate for all the distortion and excesses caused by monetary inflation and artificially low interest rates. Regulation distracts from the real cause while further interfering with the market forces, thus guaranteeing that the recession will become much deeper and prolonged.
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The problem is the currency
21 September 1998 Texas Straight Talk 21 September 1998 verse 7 ... Cached
The near anarchy in Russia, the food riots in Indonesia, and the growing recession in Japan are signs of conditions spreading across the globe. And unfortunately, there is no sign that correct policy will soon be instituted - anywhere.
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Greenspan Nominated to a Fourth Term
17 January 2000 Texas Straight Talk 17 January 2000 verse 5 ... Cached
Essentially, no one in Washington, on Wall Street, or in the financial media challenges the inflationary policy of the Fed, believing that the favorable status quo will continue indefinitely as long as the money wizard stays in charge. In good times it's easy to forget severe recessions and commodity price inflation. Today, just about everyone endorses the New Era in prosperity that technology and Alan Greenspan have delivered to us. Inflation, as defined by a rising CPI, has been declared dead.
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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.
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Greenspan Nominated to a Fourth Term
17 January 2000 Texas Straight Talk 17 January 2000 verse 8 ... Cached
Greenspan has already supervised one serious recession in the early 1990s. No matter how astute a chairman of the Federal Reserve Board is, it's impossible to avoid recessions when managing a fiat monetary system. Alan Greenspan has been quite generous when it comes to creating new money. Since 1987 when Greenspan took over, high-powered money, as measured by the monetary base, has increased by 138%. This has resulted in an increase of nearly $3 trillion of bank deposits as measured by M3. This new money creation keeps interest rates lower than they otherwise would be, making the banks and Wall Street happy. It also pleases the spendthrift politicians who during Greenspan's term have increased the national debt by $32 trillion. Almost the entire increase in the national debt since 1987 has been monetized or paid for by Greenspan printing new money.
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Greenspan Nominated to a Fourth Term
17 January 2000 Texas Straight Talk 17 January 2000 verse 16 ... Cached
This is not to say that anyone else can do any better than the current chairman in the coming years. Central planning, whether it's in the monetary system or in the economy itself, just doesn't work. The debate should not be over who is best at managing the economy, determining the money supply and knowing the proper interest rates. It should be over whether or not we should have a monetary system that requires its manager to know things he cannot know. Instead of arguing over whether and when interest rates should go up or down, we should debate whether or not market interest rates and commodity money is superior to fiat money in preventing price inflation, recessions and painful periods of unemployment.
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Sound Money Needed More Than Ever
28 February 2000 Texas Straight Talk 28 February 2000 verse 6 ... Cached
This is in fact an obvious truth but at the same time a startling admission from our nation's leading maker of monetary policy. Of course, one thing of which Greenspan is quite aware due to his familiarity with the economics of sound money, is the fact that the creation of units of monetary exchange out of thin air will lead to a recession.
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Answering the Middle Class Squeeze
27 March 2000 Texas Straight Talk 27 March 2000 verse 7 ... Cached
Consider also that recent Producer Price Index figures show costs jumping at their highest rate in about nine years. Those figures indicate that our interventionist economic policy may soon bring about a recession.
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Answering the Middle Class Squeeze
27 March 2000 Texas Straight Talk 27 March 2000 verse 11 ... Cached
Again, there is only one reason why prices are rising instead of falling. Because the government, through its credit-creation mechanism, is engaged in a sort of price controls, it is in fact following a policy that eventuates in price inflation as well as recession. Plus, this credit creation is at the heart of recent instability in the markets, thus threatening retirement security.
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Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 4 ... Cached
The market downturn is not surprising. An economic slowdown began in 2000, accelerating in the last quarter of the year. All indications suggest the U.S. economy is headed for a further slowdown in economic growth, if not an outright recession. Already we have seen thousands of job cuts, and not only in the market-sensitive high tech sector. Economic output, as measured by the gross domestic product, dropped every quarter in 2000.
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Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 5 ... Cached
Amazingly, some in Washington and the popular media want to blame President Bush and his administration for our current economic predicament. Never mind that growth began slowing fully one year before he took office. Apparently, certain politicians believe that the President is causing a recession merely by talking about the economic data. One prominent Congressman fretted that "we've been talking ourselves into this. Now it's happening." In other words, Mr. Bush is "talking down the economy," making a recession more likely simply by discussing reality.
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Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 6 ... Cached
Such thinking should be dismissed as absurd. Economic recessions are not the result of a gloomy national state of mind; if so, we could create economic prosperity simply by positive thinking. Yet basic education in economics is so badly lacking in America that many will accept this preposterous idea. The same ignorance of economic principles is behind the fallacy that capitalism is to blame for recessions, that a free market system causes an inevitable cycle of booms and busts. In reality, it is government intervention in the economy, particularly in the areas of money supply and interest rates, which creates the precarious financial bubbles that cause economic recessions.
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Economic Woes and the Federal Reserve
19 March 2001 Texas Straight Talk 19 March 2001 verse 9 ... Cached
Only six months ago, market pundits were still proclaiming a new era of unending prosperity. They claimed that the fundamentals no longer mattered, that technology would save us from any more bear markets. Technology is wonderful, but it cannot save us from our own misguided monetary policies. Until we stop permitting the Fed to manipulate the economy, real prosperity will elude us. The Fed received credit for the boom times of the 1990s, yet its policies are responsible for the market correction and economic recession we are experiencing today.
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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.
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The Fed Cannot Create Prosperity
03 September 2001 Texas Straight Talk 03 September 2001 verse 3 ... Cached
Last week Federal Reserve chairman Alan Greenspan discussed the state of the US economy during a conference held in Wyoming. He was quite candid in his admission that the economic outlook remains gloomy, especially given the sobering numbers recently released in the media. Economic growth, measured by GDP, has fallen to .2%, the lowest in 8 years- meaning the economy is nearly in a recession. The Dow and Nasdaq averages suffered losses throughout August. Consumer spending, supposedly the one bright spot in the outlook, is also wavering. American families undoubtedly know first-hand that the job market is very shaky, and it was only a matter of time until purchases of new houses, cars, and retail goods declined. A tumble in the real estate markets may be the last straw that sends the economy into a tailspin.
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Business as Usual in Washington?
29 October 2001 Texas Straight Talk 29 October 2001 verse 13 ... Cached
One thing for sure (as a consequence of the recession and the 9/11 tragedy) is that big spending and deficits are alive and well. Even though we are currently adding to the national debt at the rate of $150 billion per year, most politicians still claim that Social Security is sound and hasn't been touched. At least the majority of American citizens are now wise enough to know better.
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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.
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Optimism or Pessimism for the Future of Liberty?
11 February 2002 Texas Straight Talk 11 February 2002 verse 7 ... Cached
The economic ramifications of our war on terrorism are also quite serious. Although the recession certainly cannot be blamed solely on the September 11th attacks, the huge increases in federal spending and the effects of all the new regulations cannot help the recovery. When one adds up the domestic costs, the military costs, and the costs of new regulations, it is certain that deficits will grow significantly. The Federal Reserve will remain under great pressure to continue its dangerous monetary inflation by printing dollars and expanding credit. This policy will result in higher rather than lower interest rates, a weak dollar, and rising prices. The danger of our economy spinning out of control cannot be dismissed.
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Predictions for an Unwritten Future
29 April 2002 Texas Straight Talk 29 April 2002 verse 3 ... Cached
The months since September 11th have been unsettling for our nation. The twin specters of war and economic recession weigh heavily on the national consciousness. The Middle East conflict intensifies, with no peaceful end in sight. Government intervention- in the economy, in the private affairs of citizens, and in the internal affairs of foreign nations- has accelerated. Federal spending is growing wildly, and annual deficits will be larger than expected in the coming years. Despite any rhetoric otherwise, tax cuts are off the table in this new era of war funding and unchallenged government growth. As one prominent Washington Democrat put it, "The era of limited government is over."
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The Case against War in Iraq
09 September 2002 Texas Straight Talk 09 September 2002 verse 5 ... Cached
There are economic reasons to avoid this war. We can do serious damage to our already faltering economy. An invasion of Iraq may well cost over a hundred billion dollars, especially when we cannot know the outcome or duration of the conflict. Our national debt is increasing at a rate of over $450 billion yearly, yet we are talking about spending a hundred billion dollars pursuing another nation-building adventure in Iraq. What will happen to the economy if oil skyrockets to $30 a barrel and lines form at gas stations? Will the current recession deepen? What will happen to the deficit? We must not kid ourselves about the economic ramifications.
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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.
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Monetary Inflation is the Problem
04 December 2006 Texas Straight Talk 04 December 2006 verse 5 ... Cached
Federal Reserve Chairman Ben Bernanke faces two basic ongoing choices: raise interest rates to prop up the dollar, but risk pushing the economy into a recession; or lower interest rates to stimulate the economy, but risk further declines in the dollar. This unfortunate dilemma is inherent with a fiat currency, however.
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Legislative Forecast for 2008
13 January 2008 Texas Straight Talk 13 January 2008 verse 4 ... Cached
This leads me to my next forecast of more federal bailouts for the housing sector. Efforts by the Federal Reserve to stave off recession will have the net effect of only blowing the bubble bigger, making the crash that much more painful when it inevitably comes. The malinvestments caused by easy credit in the housing industry will be prolonged by more easy credit. New programs and laws will be enacted to prop up housing, all with a falling dollar, devalued by continued foreign interventions. The crisis in the housing market will spread and I’m afraid we are in for some rough economic times.
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Legislative Forecast for 2008
13 January 2008 Texas Straight Talk 13 January 2008 verse 5 ... Cached
Moreover, the government will require more money than ever this year, and as funding options run out, taxes will go up. Expect stealth tax increases on consumer goods, perhaps airline tickets or cigarettes, and increased government fees here and there. Ironically total revenues will probably fall due to a weakened economy. The new programs started to “help” the country will require extra money wherever the government can squeeze it out of you, unfortunately it will be at exactly the moment you can least afford it. Since the Democrats enacted “pay-as-you-go” rules for new legislation, cutting taxes to give relief during recession will be bureaucratically next to impossible. In spite of that, I will continue the uphill battle for tax relief.
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Making a Recession Great
16 March 2008 Texas Straight Talk 16 March 2008 verse 1 ... Cached
Making a Recession Great
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Making a Recession Great
16 March 2008 Texas Straight Talk 16 March 2008 verse 6 ... Cached
This spending spree is exactly the wrong policy for an economy on the brink of recession. History has shown that all empires eventually crumble under a worthless currency and with an exhausted military. Since too many of our nation's leaders haven't taken the time to learn from history, we are seeing mistakes repeated through recently enacted policies such as the new House budget.
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On Five Years in Iraq
23 March 2008 Texas Straight Talk 23 March 2008 verse 7 ... Cached
A study by Nobel Prize economist Joseph Stiglitz concludes that the cost of the war in Iraq could be at least $3 trillion. The economic consequences of our enormous expenditure in Iraq are beginning to make themselves known as we fall into recession and possibly worse.
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.