Volume 2006 — The Book of Ron Paul
2006 Ron Paul Chapter 1
RON PAUL OF TEXAS
January 18, 2006
Searching for a New Direction
2006 Ron Paul 1:1
The Abramoff scandal has been
described as the biggest Washington scandal ever: bigger than
than Abscam; bigger than Koreagate; bigger than the House banking
bigger than Teapot Dome.
It’s certainly serious and
2006 Ron Paul 1:2
has prompted urgent proposals of suggested reforms to deal with the
If only we have more rules and regulations, more reporting
and stricter enforcement of laws, the American people will be assured
Ethics and character will
return to the halls of Congress.
is argued that new champions of reform should be elected to leadership
positions, to show how serious we are about dealing with the crisis of
confidence generated by the Abramoff affair.
Then all will be well.
it’s not so simple.
Maybe what we
have seen so far is just the tip of the iceberg, an insidious crisis
in the face that we refuse to properly identify and deal with.
2006 Ron Paul 1:3
It’s been suggested we need to change course and correct the way Congress is
A good idea, but if we merely tinker with current attitudes
role the federal government ought to play in our lives, it won’t do
solve the ethics crisis.
reform is impossible without addressing the immorality of wealth
Merely electing new leaders and writing more rules to regulate
petition Congress will achieve nothing.
2006 Ron Paul 1:4
Could it be that we’re all looking in the wrong places for a solution to
constant, and pervasive corruption in government?
Perhaps some of us in Congress are mistaken about the true
perhaps others deliberately distract us from exposing the truth about
miserably corrupt the budget process in Congress is.
Others simply are in a state of denial.
the denial will come to an end as the Abramoff scandal
reveals more and more.
eventually will expose the scandal of the ages: how and to what degree
American people have become indebted by the totally irresponsible
habits of the U.S. Congress — as encouraged by successive
condoned by our courts, and enjoyed by the recipients of the largesse.
2006 Ron Paul 1:5
This system of government is coming to an end — a fact that significantly
to the growing anxiety of most Americans, especially those who pay the
receive little in return from the corrupt system that has evolved over
2006 Ron Paul 1:6
Believe me, if everybody benefited equally there would be scant outcry over a
little bribery and influence peddling.
our country grows poorer and more indebted, fewer people benefit.
The beneficiaries are not the hard working, honest people who
The groups that master the
system of lobbying and special interest legislation are the ones who
2006 Ron Paul 1:7
steady erosion of real wealth in this country, and the dependency on
generated by welfarism and warfarism, presents itself as the crisis of
Lobbying scandals and the need for new leadership are mere
symptoms of a
much, much deeper problem.
2006 Ron Paul 1:8
There are quite a few reasons a relatively free country allows itself to fall
such an ethical and financial mess.
2006 Ron Paul 1:9
One major contributing factor for the past hundred years is our serious misunderstanding of the dangers of pure democracy.
The founders detested democracy and avoided the use of the
word in all the early documents.
most Americans accept without question a policy of sacrificing life,
and dollars to force “democracy” on a country 6,000 miles away.
This tells us how little opposition there is to “democracy.”
No one questions the principle that a majority electorate should
allowed to rule the country, dictate rights, and redistribute wealth.
2006 Ron Paul 1:10
system of democracy has come to mean worshipping the notion that a
for the distribution of government largesse, loot confiscated from the
people through an immoral tax system, is morally and constitutionally
circumstances it’s no wonder a system of runaway lobbying and special
interests has developed.
to the military industrial complex that developed over the decades due
foreign policy of perpetual war and foreign military intervention, and
shouldn’t wonder why there is such a powerful motivation to learn the
of the lobbying trade — and why former members of Congress and their
become such high priced commodities.
influence is much more lucrative than working and producing for a
trouble is the process invites moral corruption.
The dollars involved grow larger and larger because of the
financing and inflation that pure democracy always generates.
2006 Ron Paul 1:11
with lobbying scandals while ignoring the scandal of unconstitutional
government will solve nothing.
people truly believe that reform is the solution, through regulating
and increasing congressional reporting requirements, the real problem
ignored and never identified.
reform only makes things worse.
2006 Ron Paul 1:12
regulation of lobbyists is a dangerous and unnecessary proposition.
If one expects to solve a problem without correctly identifying
source, the problem persists.
First amendment clearly states: “Congress shall make no laws
right of the people…to petition the government for a redress of
That means NO law!
2006 Ron Paul 1:13
problem of special interest government that breeds corruption comes
lack of respect for the Constitution in the first place.
So what do we do? We further violate the Constitution rather
it for guidance as to the proper role of the federal government.
Laws addressing bribery, theft, and fraud, already on the books,
adequate to deal with the criminal activities associated with lobbying.
New laws and regulations are unnecessary.
2006 Ron Paul 1:14
theft that the federal government commits against its citizens, and the
that Congress has assumed illegally, are the real crimes that need to
In this regard we truly do
need a new direction.
Get rid of
the evil tax system; the fraudulent monetary system; and the power of
to run our lives, the economy, and the world; and the Abramoff types
exposed for the mere gnats they are.
would be a lot less of them, since the incentives to buy politicians
2006 Ron Paul 1:15
under today’s flawed system of democratic government, which is
redistributing property by force, a lot could be accomplished if
attracted men and women of good will and character.
Members could refuse to yield to the temptations of office,
and reject the path to a lobbying career.
it seems once government adopts the rules of immorality, some of the
participants in the process yield to the temptation as well, succumbing
belief that the new moral standards are acceptable.
2006 Ron Paul 1:16
though, any new rules designed to restrain special interest favoritism
push the money further under the table.
much is at stake.
bureaucrats, lobbyists, and politicians have grown accustomed to the
have learned to work within it to survive.
Only when the trough is emptied will the country wake up.
Eliminating earmarks in the budget will not solve the problem.
2006 Ron Paul 1:17
the current scandal to the “big” one, the Abramoff types are petty
The government deals in trillions of dollars; the Abramoffs in
Take a look at the
undeclared war we’re bogged down in 6,000 miles from our shores.
We’ve spent 300 billion dollars already, but Nobel prize winner
Stiglitz argues that the war actually will cost between one and two
dollars when it’s all over and done with.
, not billions.
Even that figure is unpredictable, because we may be in Iraq
or ten — who knows?
war had nothing to do with our national security, we’re talking big
being wasted and lining the pockets of many well-connected American
stupidity, and no-bid contracts characterize the process.
And it’s all done in the name of patriotism and national
Dissenters are accused of supporting the enemy.
Now this is a rip-off that a little tinkering with House rules
restraints on lobbyists won’t do much to solve.
2006 Ron Paul 1:18
of how this undeclared war has contributed to our national deficit,
military morale and preparedness, antagonized our allies, and exposed
us to an
even greater threat from those who resent our destructive occupation.
Claiming we have no interests in the oil of the entire Middle
helps our credibility throughout the world.
2006 Ron Paul 1:19
system of special interest government that has evolved over the last
decades has given us a national debt of over eight trillion dollars, a
now expands by over 600 billion dollars each year.
Our total obligations are estimated between fifteen and twenty
Most people realize the
Social Security system, the Medicare system, and the new prescription
Thousands of private
pension funds are now being dumped on the U.S. government and American
We are borrowing over
700 billion dollars each year from foreigners to finance this
we now qualify as the greatest international debtor nation in history.
Excessive consumption using borrowed money is hardly the way to
2006 Ron Paul 1:20
of reining in government spending, Congress remains oblivious to the
dangers and panders to special interests by offering no resistance
every request for new spending.
spends nearly 2 ½ trillion dollars annually in an attempt to
has generated over 200 trillion dollars of derivatives.
These problems can’t be addressed with token leadership changes
tinkering with the budget.
A new and a
dramatic direction is required.
2006 Ron Paul 1:21
current policy further erodes the budget, special interests and members
Congress become even more aggressive in their efforts to capture a
piece of the
dwindling economic pie.
success is the measure of effectiveness that guarantees a member’s
2006 Ron Paul 1:22
biggest rip-off of all — the paper money system that is morally and
equivalent to counterfeiting — is never questioned.
It is the deceptive tool for transferring billions from the
poor and middle-class to the special interest rich.
And in the process, the deficit-propelled budget process
spending demands of all the special interests — left and right, welfare
warfare — while delaying payment to another day and sometimes even to
2006 Ron Paul 1:23
enormous sums spent each year to support the influential special
expand exponentially, and no one really asks how it’s accomplished.
taxes to balance the budget is out of the question — and rightfully so.
Foreigners have been generous in their willingness to loan us
what we need, but even that generosity is limited and may well diminish
2006 Ron Paul 1:24
if the Federal Reserve did not pick up the slack and create huge
amounts of new
credit and money out of thin air, interest rates would rise and call a
The people who suffer
from a depreciated dollar don’t understand why they suffer, while the
who benefit promote the corrupt system.
wealthy clean up on Wall Street, and the unsophisticated buy in as the
Wealth is transferred
from one group to another, and it’s all related to the system that
politicians and the central banks to create money out of thin air.
It’s literally legalized counterfeiting.
2006 Ron Paul 1:25
it any wonder jobs go overseas?
capital only comes from savings, and Americans save nothing.
We only borrow and consume.
counterfeiter has no incentive to take his newly created money and
The incentive for
Americans is to buy consumer goods from other countries whose people
to save and invest in their factories and jobs.
The only way we can continue this charade is to borrow excess
back from the foreign governments who sell us goods, and perpetuate the
of wealth that we enjoy.
2006 Ron Paul 1:26
system of money contributes significantly to the problem of illegal
On the surface, immigrants escaping poverty in Mexico and
come here for the economic opportunity that our economy offers.
However, the social services they receive, including education
medical benefits — as well as the jobs they get — are dependent on our
indebtedness to foreign countries.
the burden of debt becomes excessive, this incentive to seek prosperity
the United States will change.
2006 Ron Paul 1:27
prime beneficiaries of a paper money system are those who use the money
early — governments, politicians, bankers, international corporations, and the
suffer most are the ones at the end of the money chain — the people
use depreciated dollars to buy urgently needed goods and services to
And guess what?
By then their money
is worth less, prices soar, and their
standard of living goes down.
2006 Ron Paul 1:28
consequences of this system, fully in place for the past thirty-four
astronomical and impossible to accurately measure.
Industries go offshore and the jobs follow.
Price inflation eats away at the middle class, and deficits soar
spending escalates rapidly as Congress hopes to keep up with the
The remaining wealth that
we struggle to hold onto is based on debt, future tax revenues, and our
to manufacture new dollars without restraint.
There’s only one problem: it all depends on trust in the dollar,
especially by foreign holders and purchasers.
This trust will end, and signs of the beginning of the end are
2006 Ron Paul 1:29
this administration the dollar has suffered severely as a consequence
policy of inflating the currency to pay our bills.
The dollar price of gold has more than doubled ($252 to $560
per ounce, a 122 % increase).
means the dollar has depreciated in terms of gold, the time-honored and
measurement of a nation’s currency, by an astounding 55%.
The long-term economic health of the nation is measured by the
of its currency.
converted from a republic to an empire, she depreciated her currency to
This eventually led to
Rome’s downfall. That is exactly what America is facing unless we
2006 Ron Paul 1:30
this is a real scandal worth worrying about.
Since it’s not yet on Washington’s radar screen, no attempt at
addressing the problem is being made.
we’ll be sure to make those the Constitution terms, “petitioners to
their grievances” fill out more forms.
make government officials attend more ethics courses so they can learn
how to be
2006 Ron Paul 1:31
free nation, as it moves toward authoritarianism, tolerates and hides a
abuse in the system.
impulse for wealth creation is hard to destroy.
But in the end it will happen here, if true reform of our
monetary, and political system is not accomplished.
2006 Ron Paul 1:32
government programs are promoted for “good” causes (helping the poor),
bad causes (permitting a military-industrial complex to capitalize on
profits), the principles of the market are undermined.
Eventually nearly everyone becomes dependent on the system of
borrowing, printing press money, and the special interest budget
distributes loot by majority vote.
2006 Ron Paul 1:33
most business interests and the poor are dependent on government
Education and medical care is almost completely controlled and
by an overpowering central government.
have come to accept our role as world policemen and nation builder with
question, despite the bad results and an inability to pay the bills.
2006 Ron Paul 1:34
question is, what will it take to bring about the changes in policy
reverse this dangerous trend?
answer is: quite a lot.
unfortunately it’s not on the horizon.
probably won’t come until there is a rejection of the dollar as the
strongest world currency, and a return to commodity money like gold and
to restore confidence.
2006 Ron Paul 1:35
Abramoff-type scandals come and go in Washington, patched over with
schemes of reform that amount to nothing but more government and
But our efforts should be
directed toward eliminating the greatest of all frauds — printing press
that creates the political conditions breeding the vultures and leeches
off the corrupt system.
2006 Ron Paul 1:36
money never creates wealth — it only steals wealth from the
The Federal Reserve creation of money is exactly the same.
Increasing the dollars in circulation can only diminish the
value of each
and jobs can make a country wealthy in the long run.
Today it’s obvious our country is becoming poorer and more
our jobs and capital go overseas.
2006 Ron Paul 1:37
Abramoff scandal can serve a useful purpose if we put it in context of
entire system that encourages corruption.
2006 Ron Paul 1:38
If it’s seen as an isolated case of individual corruption, and not an expected
consequence of big government run amuck, little good will come of it.
If we understand how our system of government intervenes in our
lives, the entire economy, and the internal affairs of nations around
we can understand how it generates the conditions where lobbyists
then will some good come of it.
then will we understand that undermining the First amendment right of
to petition their government is hardly a solution to this much more
2006 Ron Paul 1:39
we’re inclined to improve conditions, we should give serious
the following policy reforms, reforms the American people who cherish
would enthusiastically support:
2006 Ron Paul 1:40
“No Child Left Behind” legislation;
2006 Ron Paul 1:41
prescription drug programs;
2006 Ron Paul 1:42
2006 Ron Paul 1:43
2006 Ron Paul 1:44
acting as the world policemen;
2006 Ron Paul 1:45
2006 Ron Paul 1:46
2006 Ron Paul 1:47
political and partisan resolutions designed to embarrass those who may
legitimate and honest disagreements with current policy;
2006 Ron Paul 1:48
inferences that disagreeing with policy is unpatriotic or disloyal to
2006 Ron Paul 1:49
pretense of budget reform while ignoring off-budget spending and the
ever-growing fourteen appropriations bills;
2006 Ron Paul 1:50
funding for corporate welfare, foreign aid, international NGOs, defense
contractors, the military industrial complex, and rich corporate
cutting welfare for the poor at home;
2006 Ron Paul 1:51
unconstitutional intrusions into the privacy of law-abiding American
2006 Ron Paul 1:52
the hysterical demands for security over liberty by curtailing the
ever-expanding and oppressive wars on drugs, tax violators, and gun
2006 Ron Paul 1:53
Finally, why not try something novel, like having Congress act as an independent and equal
Restore the principle
of the separation of powers, so that we can perform our duty to provide
and balances on an executive branch (and an accommodating judiciary)
on Americans, glorifies the welfare state, fights undeclared wars, and
enormously increases the national debt.
was not meant to be a rubber stamp.
time for a new direction.
2006 Ron Paul Chapter 2
RON PAUL OF TEXAS
February 1, 2006
Statement on H.Res 648
2006 Ron Paul 2:1
Mr. Speaker, anyone who doubts that empty symbolism often trumps substance in
Washington only needs to consider the first item of business for the
Representatives in this new year: banning former members of Congress
lobbyists from using the House gym. This bill is being rushed to
in order to assure the American people that Congress is “cracking down”
lobbying practices in response to recent scandals
2006 Ron Paul 2:2
This measure does nothing to address the root cause of the scandals — the
ever-growing size and power of the federal government. As long the
government continues to regulate, tax, and subsidize the American
will be attempts to influence those who write the laws and regulations
which the people must live. Human nature being what it is, there will
those lobbyists and policymakers who manipulate the power of the
state to enrich themselves. I have said before, and I fear I will have
opportunity to say it again: the only way to get special interest money
influence out of politics is to get the money and power out of
Instead of passing new regulations and laws regulating the people’s
petition their government, my colleagues should refuse to vote for any
legislation that violates the constitutional limits on federal power or
a special interest at the expense of American taxpayers. Returning to
constitutional government is the only way to ensure that our republican
institutions will not be corrupted by powerful interests seeking
2006 Ron Paul Chapter 3
RON PAUL OF TEXAS
Before the U.S. House of Representatives
February 15, 2006
The End of Dollar Hegemony
2006 Ron Paul 3:1
A hundred years ago it was called
War II, and especially after the fall of the Soviet Union in 1989, that
evolved into “dollar hegemony.”
after all these many years of great success, our dollar dominance is
2006 Ron Paul 3:2
It has been said, rightly, that
he who holds the gold makes the rules.
earlier times it was readily accepted that fair and honest trade
exchange for something of real value.
2006 Ron Paul 3:3
First it was simply barter of
Then it was discovered that
gold held a universal attraction, and was a convenient substitute for
cumbersome barter transactions.
only did gold facilitate exchange of goods and services, it served as a
value for those who wanted to save for a rainy day.
2006 Ron Paul 3:4
Though money developed naturally
in the marketplace, as governments grew in power they assumed monopoly
succeeded in guaranteeing the quality and purity of gold, but in time
governments learned to outspend their revenues.
or higher taxes always incurred the disapproval of the
people, so it wasn’t long before Kings and Caesars learned how to
their currencies by reducing the amount of gold in each coin — always
their subjects wouldn’t discover the fraud.
But the people always did, and they strenuously objected.
2006 Ron Paul 3:5
This helped pressure leaders to
seek more gold by conquering other nations.
The people became accustomed to living beyond their means, and
the circuses and bread. Financing extravagances by conquering foreign
seemed a logical alternative to working harder and producing more.
Besides, conquering nations not only brought home gold, they
slaves as well.
Taxing the people
in conquered territories also provided an incentive to build empires.
This system of government worked well for a while, but the moral
of the people led to an unwillingness to produce for themselves.
There was a limit to the number of countries that could be
their wealth, and this always brought empires to an end.
When gold no longer could be obtained, their military might
In those days those who held the gold truly wrote the rules and
2006 Ron Paul 3:6
That general rule has held fast
throughout the ages.
When gold was
used, and the rules protected honest commerce, productive nations
Whenever wealthy nations — those with powerful armies and gold — strived
only for empire and easy fortunes to support welfare at home, those
2006 Ron Paul 3:7
Today the principles are the
same, but the process is quite different.
no longer is the currency of the realm; paper is.
The truth now is: “He who prints the money makes the rules” — at
least for the time being.
Although gold is
not used, the goals are the same: compel
foreign countries to produce and subsidize the country with military
and control over the monetary printing presses.
2006 Ron Paul 3:8
Since printing paper money is
nothing short of counterfeiting, the issuer of the international
always be the country with the military might to guarantee control over
This magnificent scheme
seems the perfect system for obtaining perpetual wealth for the country
issues the de facto world currency.
one problem, however, is that such a system destroys the character of
counterfeiting nation’s people — just as was the case when gold was the
currency and it was obtained by conquering other nations.
And this destroys the incentive to save and produce, while
debt and runaway welfare.
2006 Ron Paul 3:9
The pressure at home to inflate
the currency comes from the corporate welfare recipients, as well as
demand handouts as compensation for their needs and perceived injuries
In both cases personal
responsibility for one’s actions is rejected.
2006 Ron Paul 3:10
When paper money is rejected, or
when gold runs out, wealth and political stability are lost.
The country then must go from living beyond its means to living
its means, until the economic and political systems adjust to the new
rules — rules no longer written by those who ran the now defunct printing press.
2006 Ron Paul 3:11
“Dollar Diplomacy,” a policy
instituted by William Howard Taft and his Secretary of State Philander
was designed to enhance U.S. commercial investments in Latin America
and the Far
McKinley concocted a war
against Spain in 1898, and
Roosevelt’s corollary to the Monroe Doctrine preceded Taft’s aggressive
approach to using the U.S. dollar and diplomatic influence to secure
This earned the
popular title of “Dollar Diplomacy.”
significance of Roosevelt’s change was that our intervention now could
justified by the mere “appearance” that a country of interest to us was
politically or fiscally vulnerable to European control.
Not only did we claim a right, but even an official U.S.
“obligation” to protect our commercial interests from Europeans.
2006 Ron Paul 3:12
This new policy came on the heels
of the “gunboat” diplomacy of the late 19
century, and it
we could buy influence before resorting to the threat of force.
By the time the “dollar diplomacy” of William Howard Taft was
articulated, the seeds of American empire were planted.
And they were destined to grow in the fertile political soil of
that lost its love and respect for the republic bequeathed to us by the
of the Constitution.
It wasn’t too long
before dollar “diplomacy” became dollar “hegemony” in the second half
2006 Ron Paul 3:13
This transition only could have
occurred with a dramatic change in monetary policy and the nature of
2006 Ron Paul 3:14
Congress created the Federal
Reserve System in 1913.
then and 1971 the principle of sound money was systematically
Between 1913 and 1971, the Federal Reserve found it much easier
the money supply at will for financing war or manipulating the economy
little resistance from Congress — while benefiting the special
2006 Ron Paul 3:15
Dollar dominance got a huge boost
after World War II.
We were spared
the destruction that so many other nations suffered, and our coffers
with the world’s gold.
world chose not to return to the discipline of the gold standard, and
money to pay the bills was a lot more popular than taxing or
In spite of
the short-term benefits, imbalances were institutionalized for decades
2006 Ron Paul 3:16
The 1944 Bretton Woods agreement
solidified the dollar as the preeminent world reserve currency,
Due to our political
and military muscle, and because we had a huge amount of physical gold,
world readily accepted our dollar (defined as 1/35
gold) as the world’s reserve currency.
dollar was said to be “as good as gold,” and convertible to all foreign
central banks at that rate.
American citizens, however, it remained illegal to own.
This was a gold-exchange standard that from inception was doomed
2006 Ron Paul 3:17
The U.S. did exactly what many
predicted she would do.
more dollars for which there was no gold backing.
the world was content to accept those dollars for more
than 25 years with little question — until the French and others in the
1960s demanded we fulfill our promise to pay one ounce of gold for each
delivered to the U.S. Treasury.
resulted in a huge gold drain that brought an end to a very poorly
2006 Ron Paul 3:18
It all ended on August 15, 1971,
when Nixon closed the gold window and refused to pay out any of our
280 million ounces of gold.
essence, we declared our insolvency and everyone recognized some other
system had to be devised in order to bring stability to the markets.
2006 Ron Paul 3:19
Amazingly, a new system was
devised which allowed the U.S. to operate the printing presses for the
reserve currency with no restraints placed on it — not even a pretense
convertibility, none whatsoever!
the new policy was even more deeply flawed, it nevertheless opened the
dollar hegemony to spread.
2006 Ron Paul 3:20
Realizing the world was embarking
on something new and mind boggling, elite money managers, with
support from U.S. authorities, struck an agreement with OPEC to price
U.S. dollars exclusively for all worldwide transactions.
This gave the dollar a special place among world currencies and
essence “backed” the dollar with oil.
return, the U.S. promised to protect the various oil-rich kingdoms in
Persian Gulf against threat of invasion or domestic coup.
This arrangement helped ignite the radical Islamic movement
who resented our influence in the region.
arrangement gave the dollar artificial strength, with tremendous
benefits for the United States.
allowed us to export our monetary inflation by buying oil and other
goods at a
great discount as dollar influence flourished.
2006 Ron Paul 3:21
This post-Bretton Woods system
was much more fragile than the system that existed between 1945 and
Though the dollar/oil arrangement was helpful, it was not nearly
stable as the pseudo gold standard under Bretton Woods.
It certainly was less stable than the gold standard of the late
2006 Ron Paul 3:22
During the 1970s the dollar
nearly collapsed, as oil prices surged and gold skyrocketed to $800 an
1979 interest rates of 21% were required to rescue the system.
The pressure on the dollar in the 1970s, in spite of the
to it, reflected reckless budget deficits and monetary inflation during
The markets were not fooled
by LBJ’s claim that we could afford both “guns and butter.”
2006 Ron Paul 3:23
Once again the dollar was
rescued, and this ushered in the age of true dollar hegemony lasting
early 1980s to the present.
tremendous cooperation coming from the central banks and international
commercial banks, the dollar was accepted as if it were gold.
2006 Ron Paul 3:24
Fed Chair Alan Greenspan, on
several occasions before the House Banking Committee, answered my
him about his previously held favorable views on gold by claiming that
other central bankers had gotten paper money — i.e. the dollar system — to
respond as if it were gold.
time I strongly disagreed, and pointed out that if they had achieved
such a feat
they would have defied centuries of economic history regarding the need
money to be something of real value.
smugly and confidently concurred with this.
2006 Ron Paul 3:25
In recent years central banks and
various financial institutions, all with vested interests in
workable fiat dollar standard, were not secretive about selling and
large amounts of gold to the market even while decreasing gold prices
serious questions about the wisdom of such a policy.
They never admitted to gold price fixing, but the evidence is
abundant that they believed if the gold price fell it would convey a
confidence to the market, confidence that they indeed had achieved
success in turning paper into gold.
2006 Ron Paul 3:26
Increasing gold prices historically are viewed as an indicator of distrust in paper currency.
This recent effort was not a whole lot different than the U.S.
selling gold at $35 an ounce in the 1960s, in an attempt to convince
the dollar was sound and as good as gold.
during the Depression, one of Roosevelt’s first acts was to remove free
gold pricing as an indication of a flawed monetary system by making it
for American citizens to own gold.
law eventually limited that effort, as it did in the early 1970s when
Treasury and the IMF tried to fix the price of gold by dumping tons
market to dampen the enthusiasm of those seeking a safe haven for a
dollar after gold ownership was re-legalized.
2006 Ron Paul 3:27
Once again the effort between
1980 and 2000 to fool the market as to the true value of the dollar
In the past 5 years
the dollar has been devalued in terms of gold by more than 50%.
You just can’t fool all the people all the time, even with the
the mighty printing press and money creating system of the Federal
2006 Ron Paul 3:28
Even with all the shortcomings of
the fiat monetary system, dollar influence thrived.
The results seemed beneficial, but gross distortions built
into the system remained.
to form, Washington politicians are only too anxious to solve the
cropping up with window dressing, while failing to understand and deal
underlying flawed policy.
fixing exchange rates, punitive tariffs, politically motivated
corporate subsidies, international trade management, price controls,
rate and wage controls, super-nationalist sentiments, threats of force,
war are resorted to—all to solve the problems artificially created by
flawed monetary and economic systems.
2006 Ron Paul 3:29
In the short run, the issuer of a
fiat reserve currency can accrue great economic benefits.
In the long run, it poses a threat to the country issuing the
currency. In this case that’s the United States.
As long as foreign countries take our dollars in return for real
we come out ahead.
This is a benefit many
in Congress fail to recognize, as they
bash China for maintaining a positive trade balance with us.
But this leads to a loss of manufacturing jobs to overseas
markets, as we
become more dependent on others and less self-sufficient.
Foreign countries accumulate our dollars due to their high
and graciously loan them back to us at low interest rates to finance
2006 Ron Paul 3:30
It sounds like a great deal for
everyone, except the time will come when our dollars — due to their
depreciation — will be received less enthusiastically or even be
create a whole new ballgame and force us to pay a price for living
means and our production.
in sentiment regarding the dollar has already started, but the worst is
2006 Ron Paul 3:31
The agreement with OPEC in the
1970s to price oil in dollars has provided tremendous artificial
strength to the
dollar as the preeminent reserve currency.
This has created a universal demand for the dollar, and soaks up
number of new dollars generated each year.
year alone M3 increased over $700 billion.
2006 Ron Paul 3:32
The artificial demand for our
dollar, along with our military might, places us in the unique position
“rule” the world without productive work or savings, and without limits
consumer spending or deficits.
problem is, it can’t last.
2006 Ron Paul 3:33
Price inflation is raising its
ugly head, and the NASDAQ bubble — generated by easy money — has burst.
The housing bubble likewise created is deflating. Gold prices
doubled, and federal spending is out of sight with zero political will
The trade deficit last year
was over $728 billion.
trillion war is raging, and plans are being laid to expand the war into
restraining force will be the world’s rejection of the dollar.
It’s bound to come and create conditions worse than 1979-1980,
required 21% interest rates to correct.
everything possible will be done to protect the dollar in the meantime.
We have a shared interest with those who hold our dollars to
whole charade going.
2006 Ron Paul 3:34
Greenspan, in his first speech
after leaving the Fed, said that gold prices were up because of concern
terrorism, and not because of monetary concerns or because he created
dollars during his tenure.
to be discredited and the dollar propped up.
Even when the dollar comes under serious attack by market
central banks and the IMF surely will do everything conceivable to soak
dollars in hope of restoring stability.
they will fail.
2006 Ron Paul 3:35
Most importantly, the dollar/oil
relationship has to be maintained to keep the dollar as a preeminent
Any attack on this relationship will be forcefully challenged—as
already has been.
2006 Ron Paul 3:36
In November 2000 Saddam Hussein
demanded Euros for his oil.
arrogance was a threat to the dollar; his lack of any military might
was never a
At the first cabinet
meeting with the new administration in 2001, as reported by Treasury
Paul O’Neill, the major topic was how we would get rid of Saddam
Hussein — though there was no evidence whatsoever he posed a threat to us.
This deep concern for Saddam Hussein surprised and shocked
2006 Ron Paul 3:37
It now is common knowledge that
the immediate reaction of the administration after 9/11 revolved around
could connect Saddam Hussein to the attacks, to justify an invasion and
overthrow of his government.
with no evidence of any connection to 9/11, or evidence of weapons of
destruction, public and congressional support was generated through
and flat out misrepresentation of the facts to justify overthrowing
2006 Ron Paul 3:38
There was no public talk of
removing Saddam Hussein because of his attack on the integrity of the
a reserve currency by selling oil in Euros.
Many believe this was the real reason for our obsession with
I doubt it was the only reason, but it may well have played a
role in our motivation to wage war.
a very short period after the military victory, all Iraqi oil sales
out in dollars.
The Euro was
2006 Ron Paul 3:39
In 2001, Venezuela’s ambassador
to Russia spoke of Venezuela switching to the Euro for all their oil
Within a year there was a coup attempt against Chavez,
assistance from our CIA.
2006 Ron Paul 3:40
After these attempts to nudge the
Euro toward replacing the dollar as the world’s reserve currency were
resistance, the sharp fall of the dollar against the Euro was reversed.
These events may well have played a significant role in
2006 Ron Paul 3:41
It’s become clear the U.S.
administration was sympathetic to those who plotted the overthrow of
was embarrassed by its failure.
fact that Chavez was democratically elected had little influence on
2006 Ron Paul 3:42
Now, a new attempt is being made
against the petrodollar system.
another member of the “axis of evil,” has announced her plans to
oil bourse in March of this year.
what, the oil sales will be priced Euros, not dollars.
2006 Ron Paul 3:43
Most Americans forget how our
policies have systematically and needlessly antagonized the Iranians
In 1953 the CIA helped
overthrow a democratically elected president, Mohammed Mossadeqh, and
the authoritarian Shah, who was friendly to the U.S.
The Iranians were still fuming over this when the hostages
were seized in 1979.
with Saddam Hussein in his invasion of Iran in the early 1980s did not
matters, and obviously did not do much for our relationship with Saddam
The administration announcement in 2001 that Iran was part of
the axis of
evil didn’t do much to improve the diplomatic relationship between our
Recent threats over
nuclear power, while ignoring the fact that they are surrounded by
with nuclear weapons, doesn’t seem to register with those who continue
With what most
Muslims perceive as our war against Islam, and this recent history,
little wonder why Iran might choose to harm America by undermining the
Iran, like Iraq, has zero capability to attack us.
But that didn’t stop us from turning Saddam Hussein into a
Hitler ready to take over the world.
Iran, especially since she’s made plans for pricing oil in Euros, has
the receiving end of a propaganda war not unlike that waged against
2006 Ron Paul 3:44
It’s not likely that maintaining dollar supremacy was the only motivating factor for the war
Iraq, nor for agitating against Iran.
the real reasons for going to war are complex, we now know the reasons
before the war started, like the presence of weapons of mass
Saddam Hussein’s connection to 9/11, were false.
The dollar’s importance is obvious, but this does not diminish
influence of the distinct plans laid out years ago by the
remake the Middle East.
influence, as well as that of the Christian Zionists, likewise played a
prosecuting this war.
“our” oil supplies has influenced our Middle East policy for decades.
2006 Ron Paul 3:45
But the truth is that paying the
bills for this aggressive intervention is impossible the old fashioned
more taxes, more savings, and more production by the American people.
Much of the expense of the Persian Gulf War in 1991 was
many of our willing allies.
That’s not so
more than ever, the dollar hegemony — it’s dominance as the world
currency — is required to finance our huge war expenditures.
This $2 trillion never-ending war must be paid for, one way or
Dollar hegemony provides the vehicle to do just that.
2006 Ron Paul 3:46
For the most part the true
victims aren’t aware of how they pay the bills.
The license to create money out of thin air allows the bills to
through price inflation.
citizens, as well as average citizens of Japan, China, and other
suffer from price inflation, which represents the “tax” that pays the
for our military adventures.
is until the fraud is discovered, and the foreign producers decide not
dollars nor hold them very long in payment for their goods.
Everything possible is done to prevent the
fraud of the
monetary system from being exposed to the masses who suffer from it.
If oil markets replace dollars with Euros, it would in time
ability to continue to print, without restraint, the world’s reserve
2006 Ron Paul 3:47
It is an unbelievable benefit to
us to import valuable goods and export depreciating dollars.
The exporting countries have become addicted to our purchases
This dependency makes
them allies in continuing the fraud, and
their participation keeps the dollar’s value artificially high.
If this system were workable long term, American citizens would
have to work again.
We too could enjoy
“bread and circuses” just as the
Romans did, but their gold finally ran out and the inability of Rome to
to plunder conquered nations brought an end to her empire.
2006 Ron Paul 3:48
The same thing will happen to us
if we don’t change our ways.
we don’t occupy foreign countries to directly plunder, we nevertheless
spread our troops across 130 nations of the world.
Our intense effort to spread our power in the oil-rich Middle
East is not
But unlike the old
days, we don’t declare direct ownership of the natural resources — we
insist that we can buy what we want and pay for it with our paper money.
Any country that challenges our authority does so at great risk.
2006 Ron Paul 3:49
Once again Congress has bought
into the war propaganda against Iran, just as it did against Iraq.
Arguments are now made for attacking Iran economically, and
are all based on the same false reasons given for the ill-fated and
occupation of Iraq.
2006 Ron Paul 3:50
Our whole economic system depends
on continuing the current monetary arrangement, which means recycling
Currently, we borrow
over $700 billion every year from our gracious benefactors, who work
take our paper for their goods.
we borrow all the money we need to secure the empire (DOD budget $450
The military might we
enjoy becomes the “backing” of our currency.
There are no other countries that can challenge our military
and therefore they have little choice but to accept the dollars we
This is why
countries that challenge the system — like Iraq, Iran and Venezuela — become
targets of our plans for regime change.
2006 Ron Paul 3:51
Ironically, dollar superiority
depends on our strong military, and our strong military depends on the
As long as foreign recipients take our dollars for real goods
willing to finance our extravagant consumption and militarism, the
will continue regardless of how huge our foreign debt and current
2006 Ron Paul 3:52
But real threats come from our
political adversaries who are incapable of confronting us militarily,
not bashful about confronting us economically.
That’s why we see the new challenge from Iran being taken so
The urgent arguments about Iran posing a military threat to the
of the United States are no more plausible than the false charges
Yet there is no effort to resist
this march to confrontation
by those who grandstand for political reasons against the Iraq war.
2006 Ron Paul 3:53
It seems that the people and Congress are easily persuaded by the jingoism of
the preemptive war promoters.
only after the cost in human life and dollars are tallied up that the
object to unwise militarism.
2006 Ron Paul 3:54
The strange thing is that the
failure in Iraq is now apparent to a large majority of American people,
and Congress are acquiescing to the call for a needless and dangerous
confrontation with Iran.
2006 Ron Paul 3:55
But then again, our failure to
find Osama bin Laden and destroy his network did not dissuade us from
the Iraqis in a war totally unrelated to 9/11.
2006 Ron Paul 3:56
Concern for pricing oil only in
dollars helps explain our willingness to drop everything and teach
Hussein a lesson for his defiance in demanding Euros for oil.
2006 Ron Paul 3:57
And once again there’s this
urgent call for sanctions and threats of force against Iran at the
Iran is opening a new oil exchange with all transactions in Euros.
2006 Ron Paul 3:58
Using force to compel people to
accept money without real value can only work in the short run.
It ultimately leads to economic dislocation, both domestic and
international, and always ends with a price to be paid.
2006 Ron Paul 3:59
The economic law that honest
exchange demands only things of real value as currency cannot be
The chaos that one day will ensue from our 35-year experiment
worldwide fiat money will require a return to money of real value.
We will know that day is approaching when oil-producing
gold, or its equivalent, for their oil rather than dollars or Euros.
The sooner the better.
2006 Ron Paul Chapter 4
RON PAUL OF TEXAS
Before the U.S. House of Representatives
March 3, 2006
Statement on the Sunlight Rule
2006 Ron Paul 4:1
Mr. Speaker, Supreme Court Justice Louis Brandeis famously said, “Sunlight
is the best disinfectant.” In order to shine sunlight on the practices
House of Representatives, and thus restore public trust and integrity
institution, I am introducing the Sunlight Rule. This measure amends
House rules to ensure members have adequate time to study a bill before
asked to vote on it. One of the chief causes of increasing public
the way major pieces of legislation are brought to the floor without
having an opportunity to read the bills. This is particularly a problem
Appropriations committee conference reports, which are often rushed to
of the House in late-night sessions at the end of the year. For
this past December the House voted on the fiscal year 2006 Defense
Appropriations conference report at approximately four a.m. — just four
after the report was filed. Yet the report contained language dealing
flu, including controversial language regarding immunity liability for
manufacturers, that was added in the House-Senate conference on the
Considering legislation on important issues in this manner is a
our duty as the people’s elected representatives.
2006 Ron Paul 4:2
My proposed rule requires that no piece of legislation, including conference
reports, can be brought before the House of Representatives unless it
available to members and staff both in print and electronic versions
least ten days. My bill also requires that a manager’s amendment making
substantive changes to a bill be available in both printed and
at least 72 hours before a vote. While manager’s amendments
reserved for technical changes, oftentimes manager’s amendments contain
substantive additions to bills in the form of pork. Members
should be made
aware of such changes before being asked to vote on a bill.
2006 Ron Paul 4:3
The Sunlight Rule provides the American people the opportunity to be involved
in enforcing congressional rules by allowing citizens to move for
censure of any
Representative who votes for a bill brought to the floor in violation
act. The Sunlight Rule can never be waived by the Rules committee or
leadership. If an attempt is made to bring a bill to the floor in
this rule, any member can raise a point of order requiring the bill to
immediately pulled from the House calendar.
2006 Ron Paul 4:4
Mr. Speaker, the practice of rushing bills to the floor before individual
members have a chance to study them contributes to public distrust of
Voting on bills before members read them makes a mockery of
government and cheats voters who sent us here to make informed
public policy. Adopting the Sunlight Rule is one of the most important
to House rules this Congress could make to restore public trust and
preserve the integrity of this institution. I hope my colleagues will
this change to House rules.
2006 Ron Paul Chapter 5
RON PAUL OF TEXAS
Before the U.S. House of Representatives
March 28, 2006
Making the World Safe for Christianity
2006 Ron Paul 5:1
top Neo-Con of the twentieth century was Woodrow Wilson.
His supposed idealism, symbolized in the slogan “Make the world
for democracy,” resulted in untold destruction and death across the
His deceit and
manipulation of the pre-war intelligence from Europe dragged America
unnecessary conflict that cost the world and us dearly.
Without the disastrous Versailles Treaty, World War II could
averted — and the rise to power of Communists around the world might
2006 Ron Paul 5:2
seem to never learn from our past mistakes.
Today’s neo-cons are as idealistically misled and aggressive in
remaking the Middle East as the Wilsonian do-gooders.
Even given the horrendous costs of the Iraq War and the
consequences that plague us today, the neo-cons are eager to expand
change policy to Iran by force.
2006 Ron Paul 5:3
obvious shortcomings of our regime change and occupation of Afghanistan
The Taliban was ousted
from power, but they have regrouped
and threaten the delicate stability that now exists in that country.
Opium drug production is once again a major operation, with
controlling a huge area of the country outside Kabul.
And now the real nature of the government we created has been
the case of Abdul Rahman, the Muslim who faced a possible death
the Karzai administration for converting to Christianity.
Even now that Mr. Rahman is free due to western pressure, his
remains in danger.
2006 Ron Paul 5:4
bombs and guns haven’t changed the fact that the new puppet Afghan
still follows Sharia law.
loyalty to Sharia exists in Iraq, where we’re trying so hard to
And all this is done in the name
of spreading democracy.
2006 Ron Paul 5:5
sad fact is that even under the despicable rule of Saddam Hussein,
were safer in Iraq than they are today.
Hussein’s foreign minister was a practicing Christian.
Today thousands of Christians have fled Iraq following our
countries like Jordan and Syria.
Christians who have remained in Iraq fear for their lives every day.
That should tell us something about the
shortcomings of a
policy that presumes to make the world safe for democracy.
2006 Ron Paul 5:6
Muslim world is not fooled by our talk about spreading democracy and
The evidence is too overwhelming that we do not hesitate to
dictators and install puppet governments when it serves our interests.
When democratic elections result in the elevation of a leader or
not to our liking, we do not hesitate for a minute to undermine that
This hypocrisy is rarely recognized by the American people.
It’s much more comfortable to believe in slogans, to believe
we’re defending our goodness and spreading true liberty.
We accept this and believe strongly in the cause, strongly
sacrifice many of our sons and daughters, and stupendous amounts of
spread our ideals through force.
2006 Ron Paul 5:7
out the lack of success is taboo.
seems of little concern to many members of Congress that we lack both
right and constitutional authority to impose our will on other nations.
2006 Ron Paul 5:8
toughest task is analyzing what we do from their perspective.
We should try harder to place ourselves in the shoes of those
who live in
the Arab countries where our efforts currently are concentrated.
We are outraged by a Muslim country that would even consider the
penalty for a Christian convert.
many Muslims see all that we do as a reflection of western
to them includes Europe and America.
see everything in terms of religion.
2006 Ron Paul 5:9
our bombs and sanctions kill hundreds of thousands of their citizens,
it as an attack on their religion by Christians.
To them our actions represent a crusade to change their culture
They do not see
us as having noble intentions.
and realism tell them we’re involved in the Middle East to secure the
2006 Ron Paul 5:10
occupation and influence in the holy lands of the Middle East will
This includes all the
countries of the Arabian Peninsula, Iran, Iraq, and Afghanistan.
Naively believing otherwise will guarantee continuing
Our meddling will remain an
incitement for radicals to strike us here at home in future terrorist
All the intelligence gathering in the world will serve little
we don’t come to understand exactly why they hate us — despite the good
intentions that many Americans hold dear.
2006 Ron Paul Chapter 6
RON PAUL OF TEXAS
Before the U.S. House of Representatives
March 29, 2006
Statement on HR 609, the Academic Bill of Rights
2006 Ron Paul 6:1
Mr. Speaker, anyone needing proof that
federal funding leads to federal control should examine HR 609, the
College Access and Opportunity Act. HR 609 imposes several new
federal mandates on colleges, and extends numerous existing
609 proves the prophetic soundness of warnings that federal higher
programs would lead to federal control of higher education.
2006 Ron Paul 6:2
Opponents of increased
of higher education should be especially concerned about HR 609s
Bill of Rights. This provision takes a step toward complete federal
control of college curricula, grading, and teaching practices. While
provision is worded as a sense of Congress, the clear intent is to
intimidate college administrators into ensuring professors lectures
plans meet with federal approval.
2006 Ron Paul 6:3
The Academic Bill of Rights
is a response to concerns that federally-funded institutions of higher
are refusing to allow students to express, or even be exposed to,
points of view
that differ from those held by their professors. Ironically, the
of political correctness on college campuses is largely a
direct result of increased government funding of colleges and
Federal funding has isolated institutions of higher education from
discipline, thus freeing professors to promulgate their particular
regardless of whether it benefits their students (who are, after all,
professors customers). Now, in a perfect illustration of how
problems created by previous interventions in the market to justify new
interventions, Congress proposes to use the problem of political
correctness to justify more federal control over college classrooms.
2006 Ron Paul 6:4
Instead of fostering open
wide-raging intellectual inquiry, the main effect of the Academic Bill
Rights will be to further stifle debate about controversial topics.
is because many administrators will order their professors not to
contentious and divisive subjects, in order to avoid a possible
with the federal government. Those who doubt this should remember that
and radio stations minimized political programming in the 1960s and
order to avoid running afoul of the federal fairness doctrine.
2006 Ron Paul 6:5
I am convinced some
the Academic Bill of Rights would be perfectly happy if, instead of
fostering greater debate, this bill silences discussion of certain
the websites of some of the organizations promoting the Academic Bill
Rights and you will find calls for silencing critics of the Iraq war
other aspects of American foreign policy.
2006 Ron Paul 6:6
Mr. Speaker, HR 609 expands
control over higher education; in particular through an Academic Bill
Rights which could further stifle debate and inquiry on Americas
campus. Therefore, I urge my colleagues to reject this bill.
2006 Ron Paul Chapter 7
RON PAUL OF TEXAS
Before the U.S. House of Representatives
March 30, 2006
A Tribute to the Late Harry Browne
2006 Ron Paul 7:1
Mr. Speaker, America lost a great champion of liberty when Harry Browne
passed away on March 1, at the age of 72. Harry had a passion for
knowledge of a wide variety of subjects. His communication style, as he
so marvelously put it, focused on converting his opponents rather than
the argument. These attributes helped make him one of the most
proponents of the freedom philosophy I have had the privilege of
numerous books and columns, his radio and internet broadcasts, and his
educated millions in sound economics and the benefits of a free
motivated many people to become activists in the movement to restore
2006 Ron Paul 7:2
Harry first came to public attention in the 1970 when he penned a best-selling investment book,
How You Can Profit From the Coming
which foresaw President Richard Nixon’s abandonment of the gold
the ways the American economy would be damaged by the inevitable
inflation. Harry’s book helped many Americans survive, and even profit,
the economic troubles of the seventies. It also introduced millions of
the insights developed by followers of the Austrian school of economics
regarding the dangers fiat currency poses to both prosperity and
How You Can Profit From the Coming Devaluation
recognized as the founding document of the hard money movement, which
the insights of the Austrian economists with a practical investment
2006 Ron Paul 7:3
Harry’s third book,
You Can Profit from a Monetary Crisi
number one on the
New York Times
bestseller list. Other
popular books by
How I Found Freedom in an Unfree World
Why Government Doesn’t Work.
to write the foreword for one of Harry’s books,
Soundbites You Can Use Right Now
, a collection of direct,
and often humorous responses to the questions advocates of the freedom
2006 Ron Paul 7:4
During the nineties, Harry worked to advance liberty as a presidential
candidate, columnist, and radio talk-show host. He also hosted an
internet-based talk show and founded DownsizeDC, a grassroots advocacy
whose goals are accurately summed up in its title. Even while
Lou Gehrig’s disease, Harry maintained a full schedule of writing,
radio show, and speaking around the country.
2006 Ron Paul 7:5
Harry’s efforts were not limited to the economic realm. He understood the
threat to liberty and prosperity posed by global crusades for
democracy, as well
as the importance of opposing restrictions on civil liberties. Harry’s
outspoken defense of civil liberties and the Framers’ foreign policy of
nonintervention took on added importance in the last years of his
Unlike many self-styled advocates of liberty, Harry Browne never
curry favor with the political establishment by focusing solely on
economic liberty. He never combined advocacy of low taxes and
with active support for militarism and restrictions on personal liberty.
2006 Ron Paul 7:6
In all his educational, financial, and political work Harry served as a model
for everyone who works for the free society. Harry was principled and
uncompromising in message, while temperate and respectful of differing
in delivery. He avoided the histrionics too common in our today’s talk
culture, and he never personalized his arguments. Even when an opponent
attacks, Harry always kept his presentation on
ground of ideas and principles. In conclusion, Mr. Speaker, I extend my
to Harry Browne’s wife, Pamela, and daughter Autumn, as well as the
befriend in his years in the freedom movement. I pay tribute to
Browne for his lifelong efforts on behalf of individual liberty.
2006 Ron Paul Chapter 8
RON PAUL OF TEXAS
Before the U.S. House of Representatives
April 5, 2006
Iran: The Next Neocon Target
2006 Ron Paul 8:1
It’s been three years since the U.S. launched its war against Saddam
Hussein and his weapons of mass destruction.
Of course now almost everybody knows there were no WMDs, and
Hussein posed no threat to the United States.
Though some of our soldiers serving in Iraq still believe they
because Saddam Hussein was involved in 9/11, even the administration
acknowledges there was no connection.
no one can be absolutely certain why we invaded Iraq.
The current excuse, also given for staying in Iraq, is to make
democratic state, friendly to the United States.
are now fewer denials that securing oil supplies played
a significant role in our decision to go into Iraq and stay there.
That certainly would explain why U.S. taxpayers are paying such
to build and maintain numerous huge, permanent military bases in Iraq.
They’re also funding a new billion dollar embassy- the largest
2006 Ron Paul 8:2
The significant question we must
ask ourselves is: What have we learned from
three years in Iraq?
With plans now
being laid for regime change in Iran, it appears we have learned
There still are plenty of
administration officials who daily paint a rosy picture of the Iraq we
But I wonder: If the past
three years were nothing more than a bad dream, and our nation suddenly
awakened, how many would, for national security reasons, urge the same
Would we instead give a gigantic sigh of relief that it was only
dream, that we need not relive the three-year nightmare of death,
chaos and stupendous consumption of tax dollars.
Conceivably we would still see oil prices under $30 a barrel,
importantly, 20,000 severe U.S. causalities would not have occurred.
My guess is that 99% of all Americans would be thankful it was
only a bad
dream, and would never support the invasion knowing what we know today.
2006 Ron Paul 8:3
Even with the horrible results of
the past three years, Congress is abuzz with plans to change the
There is little
resistance to the rising clamor for “democratizing” Iran, even though
current president, Mahmoud Almadinejad, is an elected leader.
Though Iran is hardly a perfect democracy, its
system is far
superior to most of our Arab allies about which we never complain.
Already the coordinating propaganda has galvanized the American
against Iran for the supposed threat it poses to us with weapons of
destruction that are no more present than those Saddam Hussein was
It’s amazing how soon
after being thoroughly discredited over the charges levied against
Hussein the Neo-cons are willing to use the same arguments against Iran.
It’s frightening to see how easily Congress, the media, and the
accept many of the same arguments against Iran that were used to
invasion of Iraq.
2006 Ron Paul 8:4
Since 2001 we have spent over
$300 billion, and occupied two Muslim nations — Afghanistan and Iraq.
We’re poorer but certainly not safer for it.
We invaded Afghanistan to get Osama bin Laden, the ring leader
This effort has been
Even though the
Taliban was removed from power in
Afghanistan, most of the country is now occupied and controlled by
manage a drug trade bigger than ever before.
Removing the Taliban from power in Afghanistan actually served
interests of Iran, the Taliban’s arch enemy, more than our own.
2006 Ron Paul 8:5
The longtime Neo-con goal to
remake Iraq prompted us to abandon the search for Osama bin Laden.
The invasion of Iraq in 2003 was hyped as a noble mission,
misrepresentations of intelligence concerning Saddam Hussein and his
attack us and his neighbors.
failed policy has created the current chaos in Iraq — chaos that many
as a civil war.
Saddam Hussein is
out of power and most people are pleased.
some Iraqis, who dream of stability, long for his authoritarian rule.
But once again, Saddam Hussein’s removal benefited the Iranians,
consider Saddam Hussein an arch enemy.
2006 Ron Paul 8:6
Our obsession with democracy — which is clearly conditional, when one looks at our response to the
Palestinian elections — will allow the majority Shia to claim
if Iraq’s election actually leads to an organized government.
This delights the Iranians, who are close allies of the Iraqi
2006 Ron Paul 8:7
Talk about unintended
This war has produced
chaos, civil war, death and destruction, and huge financial costs.
It has eliminated two of Iran’s worst enemies and placed power
with Iran’s best friends.
this apparent failure of policy does nothing to restrain the current
toward a similar confrontation with Iran.
will it take for us to learn from our failures?
2006 Ron Paul 8:8
Common sense tells us the war in
Iraq soon will spread to Iran.
of imaginary nuclear weapons or an incident involving Iran — whether
accidental — will rally the support needed for us to move on Muslim
All the past failures and unintended consequences will be
2006 Ron Paul 8:9
Even with deteriorating support
for the Iraq war, new information, well planned propaganda, or a major
will override the skepticism and heartache of our frustrating fight.
Vocal opponents of an attack on Iran again will be labeled
unsupportive of the troops, and sympathetic to Iran’s radicals.
2006 Ron Paul 8:10
Instead of capitulating to these charges, we should point out that those who
maneuver us into war do so with little concern for our young people
the military, and theoretically think little of their own children if
It’s hard to conceive that political
supporters of the war
would consciously claim that a pre-emptive war for regime change, where
people are sacrificed, is only worth it if the deaths and injuries are
to other people’s children.
I’m sure, would be denied — which means their own children are
available for this sacrifice that is so often praised and glorified for
benefit of the families who have lost so much.
If so, they should think more of their own children.
If this is not so, and their children are not available for such
sacrifice, the hypocrisy is apparent.
most Neo-con planners fall into the category of chicken-hawks.
2006 Ron Paul 8:11
For the past 3 years it’s been
inferred that if one is not in support of the current policy, one is
troops and supports the enemy.
of support for the war in Iraq was said to be supportive of Saddam
his evil policies.
This is an
insulting and preposterous argument.
who argued for the containment of the Soviets were never deemed
Stalin or Khrushchev.
support for the Iraq war should never be used as an argument that one
sympathetic to Saddam Hussein.
and diplomacy are far superior to confronting a potential enemy, and
costly and far less dangerous — especially when there’s no evidence
national security is being threatened.
2006 Ron Paul 8:12
Although a large percentage of
the public now rejects the various arguments for the Iraq war, 3 years
were easily persuaded by the politicians and media to fully support the
Now, after 3 years of
terrible pain for so many, even the troops are awakening from their
sensing the fruitlessness of our failing effort.
percent of our troops now serving in Iraq say
it’s time to come home, yet the majority still cling to the propaganda
we’re there because of 9/11 attacks, something even the administration
ceased to claim.
pushed on our troops to exploit their need to believe in a cause that’s
the risk to life and limb.
2006 Ron Paul 8:13
I smell an expanded war in the
Middle East, and pray that I’m wrong.
sense that circumstances will arise that demand support regardless of
Any lack of support, once
again, will be painted as being soft on terrorism and al Qaeda.
We will be told we must support Israel, support patriotism,
troops, and defend freedom.
The public too
often only smells the stench of war after the
comes later on, but eventually it helps to stop the war.
I worry that before we can finish the war we’re in and
extricate ourselves, the patriotic fervor for expanding into Iran will
the cries of, “enough already!”
2006 Ron Paul 8:14
The agitation and congressional
resolutions painting Iran as an enemy about to attack us have already
It’s too bad we can’t learn from our mistakes.
2006 Ron Paul 8:15
This time there will be a greater
pretense of an international effort sanctioned by the UN before the
But even without support
from the international community, we should expect the plan for regime
We have been forewarned
that “all options” remain on the table.
And there’s little reason to expect much resistance from
So far there’s less resistance expressed in Congress for taking
than there was prior to going into Iraq.
astonishing that after three years of bad results and tremendous
there’s little indication we will reconsider our traditional
non-interventionist foreign policy.
regime change, nation building, policing the
world, and protecting “our oil” still constitute an acceptable policy
leaders of both major parties.
2006 Ron Paul 8:16
It’s already assumed by many in
Washington I talk to that Iran is dead serious about obtaining a
and is a much more formidable opponent than Iraq.
Besides, Mahmoud Almadinjad threatened to destroy Israel and
Washington sees Iran as a greater
threat than Iraq ever was, a
threat that cannot be ignored.
2006 Ron Paul 8:17
Iran’s history is being
ignored, just as we ignored Iraq’s history.
This ignorance or deliberate misrepresentation of our recent
to Iraq and Iran is required to generate the fervor needed to attack
a country that poses no threat to us.
policies toward Iran have been more provocative than those towards Iraq.
Yes, President Bush labeled Iran part of the axis of evil and
unnecessarily provoked their anger at us.
our mistakes with Iran started a long time before this president took
2006 Ron Paul 8:18
In 1953 our CIA, with help of the
British, participated in overthrowing the democratic elected leader,
We placed the Shah in
He ruled ruthlessly but
protected our oil interests, and for that we protected him — that is
We even provided him with Iran’s first nuclear reactor.
Evidently we didn’t buy the argument that his oil supplies
need for civilian nuclear energy.
1953 to 1979 his authoritarian rule served to incite a radical Muslim
led by the Ayatollah Khomeini, who overthrew the Shah and took our
This blowback event was slow
in coming, but Muslims have long memories. The hostage crisis and
the Shah by the Ayatollah was a major victory for the radical Islamists.
Most Americans either never knew about or easily forgot our
meddling in the internal affairs of Iran in 1953.
2006 Ron Paul 8:19
During the 1980s we further
antagonized Iran by supporting the Iraqis in their invasion of Iran.
This made our relationship with Iran worse, while sending a
Saddam Hussein that invading a neighboring country is not all that bad.
When Hussein got the message from our State Department that his
invade Kuwait was not of much concern to the United States he
proceeded to do so.
We in a way
encouraged him to do it almost like we encouraged him to go into Iran.
Of course this time our reaction was quite different, and all of
our friendly ally Saddam Hussein became our arch enemy.
The American people may forget this flip-flop, but those who
from it never forget.
Iranians remember well our meddling in their affairs.
Labeling the Iranians part of the axis of evil further alienated
contributed to the animosity directed toward us.
2006 Ron Paul 8:20
For whatever reasons the
Neo-conservatives might give, they are bound and determined to confront
Iranian government and demand changes in its leadership.
This policy will further spread our military presence and
The sad truth is that the
supposed dangers posed by Iran are no more real than those claimed
The charges made against Iran are unsubstantiated, and amazingly
very similar to the false charges made against Iraq.
One would think promoters of the war against Iraq would be a
more reluctant to use the same arguments to stir up hatred toward Iran.
The American people and Congress should be more cautious in
these charges at face value.
seems the propaganda is working, since few in Washington object as
passes resolutions condemning Iran and asking for UN sanctions against
2006 Ron Paul 8:21
There is no evidence of a threat
to us by Iran, and no reason to plan and initiate a confrontation with
There are many reasons not to do so, however.
2006 Ron Paul 8:22
Iran does not have a nuclear
weapon and there’s no evidence that she is working on one — only
2006 Ron Paul 8:23
If Iran had a nuclear weapon, why
would this be different from Pakistan, India, and North Korea having
Why does Iran have less right to a defensive weapon than these
2006 Ron Paul 8:24
If Iran had a nuclear weapon, the
odds of her initiating an attack against anybody — which would
guarantee her own
annihilation — are zero.
same goes for the possibility she would place weapons in the hands of a
non-state terrorist group.
2006 Ron Paul 8:25
Pakistan has spread nuclear
technology throughout the world, and in particular to the North Koreans.
They flaunt international restrictions on nuclear weapons.
But we reward them just as we reward India.
2006 Ron Paul 8:26
We needlessly and foolishly
threaten Iran even though they have no nuclear weapons.
But listen to what a leading Israeli historian, Martin Van
to say about this: “Obviously, we don’t want Iran to have a nuclear
and I don’t know if they’re developing them, but if they’re not
them, they’re crazy.”
2006 Ron Paul 8:27
There’s been a lot of
misinformation regarding Iran’s nuclear program.
distortion of the truth has been used to pump up
emotions in Congress to pass resolutions condemning her and promoting
2006 Ron Paul 8:28
IAEA Director General Mohamed El
Baradi has never reported any evidence of “undeclared” sources or
nuclear material in Iran, or any diversion of nuclear material.
2006 Ron Paul 8:29
We demand that Iran prove it is
not in violation of nuclear agreements, which is asking them impossibly
El Baradi states Iran
is in compliance with the nuclear NPT required IAEA safeguard agreement.
2006 Ron Paul 8:30
We forget that the weapons we
feared Saddam Hussein had were supplied to him by the U.S., and we
believe UN inspectors and the CIA that he no longer had them.
2006 Ron Paul 8:31
Likewise, Iran received her first
nuclear reactor from us. Now we’re hysterically wondering if someday
decide to build a bomb in self interest.
2006 Ron Paul 8:32
Anti-Iran voices, beating the
drums of confrontation, distort the agreement made in Paris and the
Iran to restart the enrichment process.
suspension of the enrichment process was voluntary, and not a legal
Iran has an absolute right under the NPT to develop and use
for peaceful purposes, and this is now said to be an egregious
violation of the
It’s the U.S. and her allies that are
violating the NPT.
provision of nuclear materials to India is a clear violation of the NPT.
2006 Ron Paul 8:33
The demand for UN sanctions is
now being strongly encouraged by Congress.
The “Iran Freedom Support Act,” HR 282, passed in the
Relations Committee; and recently the House passed H Con Res 341, which
inaccurately condemned Iran for violating its international nuclear
present, the likelihood of reason prevailing in Congress is minimal.
Let there be no doubt: The Neo-conservative warriors are still
and are conditioning Congress, the media, and the American people for a
pre-emptive attack on Iran.
that Afghanistan has unraveled and Iraq is in
civil war: serious plans are being laid for the next distraction which
further spread this war in the Middle East.
The unintended consequences of this effort surely will be worse
of the complications experienced in the three-year occupation of Iraq.
2006 Ron Paul 8:34
Our offer of political and
financial assistance to foreign and domestic individuals who support
overthrow of the current Iranian government is fraught with danger and
American citizens would respond if China supported similar efforts here
United States to bring about regime change!
How many of us would remain complacent if someone like Timothy
had been financed by a foreign power?
it any wonder the Iranian people resent us and the attitude of our
Even though El Baradi and his IAEA investigations have found no
violations of the NPT-required IAEA safeguards agreement, the Iran
Support Act still demands that Iran prove they have no nuclear
weapons — refusing to acknowledge that proving a negative is impossible.
2006 Ron Paul 8:35
Let there be no doubt, though the
words “regime change” are not found in the bill — that’s precisely what
they are talking about.
Michael Ledeen, one of the architects of the Iraq fiasco, testifying
International Relations Committee in favor of the IFSA, stated it
“I know some Members would prefer to dance around the explicit
declaration of regime change as the policy of this country, but anyone
closely at the language and context of the IFSA and its close relative
Senate, can clearly see that this is in fact the essence of the matter.
You can’t have freedom in Iran without bringing down the
2006 Ron Paul 8:36
Sanctions, along with financial
and political support to persons and groups dedicated to the overthrow
Iranian government, are acts of war.
again we’re unilaterally declaring a pre-emptive war against a country
people that have not harmed us and do not have the capacity to do so.
And don’t expect Congress to seriously debate a declaration of
For the past 56 years Congress
has transferred to the
executive branch the power to go to war as it pleases, regardless of
results and costs.
2006 Ron Paul 8:37
Secretary of State Rice recently
signaled a sharp shift towards confrontation in Iran policy as she
$75 million to finance propaganda, through TV and radio broadcasts into
She expressed this need because of the so-called “aggressive”
policies of the Iranian government.
seven thousand miles from home, telling the Iraqis and the Iranians
what kind of
government they will have, backed up by the use of our military force,
call them the aggressors.
to realize the Iranian people, for whatever faults they may have, have
modern times aggressed against any neighbor.
This provocation is so unnecessary, costly, and dangerous.
2006 Ron Paul 8:38
Just as the invasion of Iraq
inadvertently served the interests of the Iranians, military
Iran will have unintended consequences.
successful alliance engendered between the Iranians and the Iraqi
will prove a formidable opponent for us in Iraq as that civil war
Shipping in the Persian Gulf through the Straits of Hormuz may
disrupted by the Iranians in retaliation for any military confrontation.
Since Iran would be incapable of defending herself by
it seems logical that some might resort to a terrorist attack on us.
They will not passively lie down, nor can they be destroyed
2006 Ron Paul 8:39
One of the reasons given for
going into Iraq was to secure “our” oil supply.
This backfired badly: Production in Iraq is down 50%, and world
prices have more than doubled to $60 per barrel.
with Iran could easily have a similar result.
We could see oil over $120 a barrel and, and $6 gas at the pump.
The obsession the Neo-cons have with remaking the Middle East is
One thing that is easy
to understand is none of those who planned these wars expect to fight
nor do they expect their children to die in some IED explosion.
2006 Ron Paul 8:40
Exactly when an attack will occur
is not known, but we have been forewarned more than once that all
on the table.
The sequence of
events now occurring with regards to Iran are eerily reminiscent of the
prior to our pre-emptive strike against Iraq.
We should remember the saying:
me once shame on you, fool me twice, shame on me.”
It looks to me like the Congress and the country is open to
2006 Ron Paul 8:41
Interestingly, many early
supporters of the Iraq war are now highly critical of the President,
misled as to reasons for the invasion and occupation.
But these same people are only too eager to accept the same
arguments for our need to undermine the Iranian government.
2006 Ron Paul 8:42
The President’s 2006 National
Security Strategy, just released, is every bit as frightening as the
released in 2002 endorsing pre-emptive war.
In it he claims:
no greater challenge from a single country than from Iran.”
He claims the Iranians have for 20 years hidden key nuclear
activities — though the IAEA makes no such assumptions nor has the Security Council
20 years ever sanctioned Iran.
clincher in the National Security Strategy document is if diplomatic
fail, confrontation will follow.
problem is the diplomatic effort — if one wants to use that term — is
to fail by demanding the Iranians prove an unproveable negative.
The West — led by the U.S. — is in greater violation by
not pursue any nuclear technology, even peaceful, that the NPT
2006 Ron Paul 8:43
The President states:
Iran’s “desire to have a nuclear weapon is unacceptable.”
A “desire” is purely subjective, and cannot be substantiated nor
Therefore all that is
necessary to justify an attack is if Iran fails to prove it doesn’t
“desire” to be like the United States, China, Russia, Britain, France,
Pakistan, India, and Israel—whose nuclear missiles surround Iran.
Logic like this to justify a new war, without the least
a congressional declaration of war, is indeed frightening.
2006 Ron Paul 8:44
Common sense tells us Congress,
especially given the civil war in Iraq and the mess in Afghanistan,
with great caution in condoning a military confrontation with Iran.
2006 Ron Paul 8:45
Cause for Concern
Most Americans are uninterested
in foreign affairs until we get mired down in a war that costs too
too long, and kills too many U.S. troops.
out of a lengthy war is difficult, as I remember all too well with
serving in the U.S. Air Force from 1963 to 1968.
Getting into war is much easier.
the Legislative branch of our government too often defers to the
branch, and offers little resistance to war plans even with no
threat to our security.
The need to
go to war is always couched in patriotic terms and falsehoods regarding
imaginary eminent danger.
supporting the effort is painted as unpatriotic and wimpish against
that’s about to engulf us.
real reason for our militarism is rarely revealed and hidden from the
Even Congress is deceived into supporting adventurism they would
accept if fully informed.
2006 Ron Paul 8:46
If we accepted the traditional
American and constitutional foreign policy of non-intervention across
there would be no temptation to go along with these unnecessary
A foreign policy of
intervention invites all kinds of excuses for spreading ourselves
The debate shifts from
non-intervention versus interventionism, to where and for what
should we involve ourselves.
of the time it’s for less than honorable reasons.
Even when cloaked in honorable slogans — like making the world
democracy — the unintended consequences and the ultimate costs cancel
2006 Ron Paul 8:47
One of the greatest losses
suffered these past 60 years from interventionism becoming an
of both major parties is respect for the Constitution.
Congress flatly has reneged on its huge responsibility to
Going to war was never meant to be an Executive decision, used
indiscriminately with no resistance from Congress.
The strongest attempt by Congress in the past 60 years to
itself over foreign policy was the passage of the Foley Amendment,
assistance be given to the Nicaraguan contras.
Even this explicit prohibition was flaunted by an earlier
2006 Ron Paul 8:48
Arguing over the relative merits
of each intervention is not a true debate, because it assumes that
per se is both moral and constitutional.
for a Granada-type intervention because of its “success,” and against
Iraq war because of its failure and cost, is not enough.
We must once again understand the wisdom of rejecting entangling
alliances and rejecting nation building.
must stop trying to police the world and instead embrace
the proper, moral, and constitutional foreign policy.
2006 Ron Paul 8:49
The best reason to oppose
interventionism is that people die, needlessly, on both sides.
We have suffered over 20,000 American casualties in Iraq
Iraq civilian deaths probably number over 100,000 by all reasonable
The next best reason is that the rule of law is undermined,
when military interventions are carried out without a declaration of
Whenever a war is ongoing, civil liberties are under attack at
The current war in Iraq and the misnamed war on terror have
environment here at home that affords little constitutional protection
nationalism is common during wars.
of this are now apparent.
2006 Ron Paul 8:50
Prolonged wars, as this one has
become, have profound consequences.
matter how much positive spin is put on it, war never makes a society
World War II was not a solution to the Depression as many claim.
If a billion dollars is spent on weapons of war, the GDP records
growth in that amount.
the expenditure is consumed by destruction of the weapons or bombs it
and the real economy is denied $1 billion to produce products that
raised someone’s standard of living.
2006 Ron Paul 8:51
Excessive spending to finance the
war causes deficits to explode. There are never enough tax dollars
pay the bills, and since there are not enough willing lenders and
available, the Federal Reserve must create enough new money and credit
buying Treasury Bills to prevent interest rates from rising too rapidly.
Rising rates would tip off everyone that there are not enough
taxes to finance the war.
willingness to print whatever amount of money the government needs to
war is literally inflation.
a fiat monetary system wars would be very difficult to finance, since
would never tolerate the taxes required to pay for it.
Inflation of the money supply delays and hides the real cost of
The result of the excessive creation of new money leads to the
cost of living everyone decries and the Fed denies.
Since taxes are not levied, the increase in prices that results
printing too much money is technically the tax required to pay for the
2006 Ron Paul 8:52
The tragedy is that the inflation
tax is borne more by the poor and the middle class than the rich.
Meanwhile, the well-connected rich, the politicians, the
bankers, the military industrialists, and the international
the benefits of war profits.
2006 Ron Paul 8:53
A sound economic process is
disrupted with a war economy and monetary inflation.
Strong voices emerge blaming the wrong policies for our
problems, prompting an outcry for protectionist legislation.
It’s always easier to blame foreign producers
for our inflation, lack of savings, excess debt, and loss of industrial
Protectionist measures only make economic conditions worse.
Inevitably these conditions, if not corrected, lead to a lower
of living for most of our citizens.
2006 Ron Paul 8:54
Careless military intervention is
also bad for the civil disturbance that results.
chaos in the streets of America in the 1960s while the
Vietnam War raged, aggravated by the draft, was an example of domestic
caused by an ill-advised unconstitutional war that could not be won.
The early signs of civil discord are now present.
Hopefully we can extricate ourselves from Iraq and avoid a
Iran before our streets explode as they did in the 60s.
2006 Ron Paul 8:55
In a way it’s amazing there’s
not a lot more outrage expressed by the American people.
There’s plenty of complaining but no outrage over policies
that are not part of our American tradition.
War based on false pretenses, 20,000 American casualties,
policies, thousands jailed without due process, illegal surveillance of
citizens, warrantless searches, and yet no outrage.
When the issues come before Congress, Executive authority is
maintained or even strengthened while real oversight is ignored.
2006 Ron Paul 8:56
Though many Americans are
starting to feel the economic pain of paying for this war through
real pain has not yet arrived.
generally remain fat and happy, with a system of money and borrowing
postpones the day of reckoning.
in particular the Chinese and Japanese, gladly participate in the
We print the money and they take it, as do the OPEC nations, and
us with consumer goods and oil.
they loan the money back to us at low interest rates, which we use to
the war and our housing bubble and excessive consumption.
This recycling and perpetual borrowing of inflated dollars
allows us to
avoid the pain of high taxes to pay for our war and welfare spending.
It’s fine until the music stops and the real costs are realized,
much higher interest rates and significant price inflation.
That’s when outrage will be heard, and the people will realize
can’t afford the “humanitarianism” of the Neo-conservatives.
2006 Ron Paul 8:57
The notion that our economic
problems are principally due to the Chinese is nonsense.
the protectionists were to have their way, the problem of financing the
would become readily apparent and have immediate ramifications — none
Today’s economic problems, caused largely by our funny money
won’t be solved by altering exchange rates to favor us in the short
run, or by
imposing high tariffs.
money with real value will solve the problems of competing currency
and protectionist measures.
2006 Ron Paul 8:58
Economic interests almost always
are major reasons for wars being fought.
and patriotic causes are easier to sell to a public who must pay and
cannon fodder to defend the financial interests of a privileged class.
2006 Ron Paul 8:59
The fact that Saddam Hussein
demanded Euros for oil in an attempt to undermine the U.S. dollar is
many to be one of the ulterior motives for our invasion and occupation
Similarly, the Iranian oil burse now about to open may be seen
threat to those who depend on maintaining the current monetary system
dollar as the world’s reserve currency.
2006 Ron Paul 8:60
The theory and significance of
“peak oil” is believed to be an additional motivating factor for the
and Great Britain wanting to maintain firm control over the oil
supplies in the
The two nations have
interests in the Middle East for nearly a hundred years. With
supplies and expanding demands, the incentive to maintain a military
the Middle East is quite strong.
of China and Russia moving into this region to assume more control
who don’t understand how a free market can develop substitutes to
of the military effort to maintain control over large regions of the
protect oil fail to count the real costs once the DOD budget is
Remember, invading Iraq was costly and oil prices doubled.
Confrontation in Iran may evolve differently, but we can be sure
be costly and oil prices will rise.
2006 Ron Paul 8:61
There are long-term consequences
or blowback from our militant policy of intervention around the world.
They are unpredictable as to time and place.
9/11 was a consequence of our military presence on Muslim holy
Ayatollah Khomeini’s success in taking over the Iranian government in
a consequence of our CIA overthrowing Mossadech in 1953.
These connections are rarely recognized by the American people
acknowledged by our government.
never seem to learn how dangerous interventionism is to us and to our
2006 Ron Paul 8:62
There are some who may not agree
strongly with any of my arguments, and instead believe the propaganda:
Iran and her President, Mahmoud Almadinjad, are thoroughly
and have threatened to destroy Israel. So all measures must be taken to
getting nukes — thus the campaign to intimidate and confront
2006 Ron Paul 8:63
First, Iran doesn’t have a nuke
and is nowhere close to getting one, according to the CIA.
If they did have one, using it would guarantee almost
annihilation by Israel and the United States.
Hysterical fear of Iran is way out of proportion to reality.
With a policy of containment, we stood down and won the Cold War
the Soviets and their 30,000 nuclear weapons and missiles.
If you’re looking for a real kook with a bomb to worry about,
Korea would be high on the list.
we negotiate with Kim Jong Il.
has nukes and was a close ally of the Taliban up until 9/11.
Pakistan was never inspected by the IAEA as to their military
Yet we not only talk to her, we provide economic assistance — though
someday Musharraf may well be overthrown and a pro-al Qaeda government
We have been nearly obsessed
with talking about regime change in Iran, while ignoring Pakistan and
It makes no sense and it’s
a very costly and dangerous policy.
2006 Ron Paul 8:64
The conclusion we should derive
from this is simple: It’s in our best interest to pursue a foreign
interpretation of the Constitution mandates it.
moral imperative of not imposing our will on others, no
matter how well intentioned, is a powerful argument for minding our own
The principle of
self-determination should be respected.
non-intervention removes the incentives for foreign powers and
interests to influence our policies overseas.
We can’t afford the cost that intervention requires, whether
higher taxes or inflation.
moral arguments against intervention don’t suffice for some, the
2006 Ron Paul 8:65
Intervention just doesn’t work.
It backfires and ultimately hurts American citizens both at home
Spreading ourselves too
thin around the world actually diminishes our national security through
superpower of the world, a constant interventionist policy is perceived
arrogant, and greatly undermines our ability to use diplomacy in a
2006 Ron Paul 8:66
constitutionalists, and many of today’s liberals have all at one time
another endorsed a less interventionist foreign policy.
There’s no reason a coalition of these groups might not once
present the case for a pro-American, non-militant, non-interventionist
policy dealing with all nations.
policy of trade and peace, and a willingness to use diplomacy, is far
to the foreign policy that has evolved over the past 60 years.
2006 Ron Paul 8:67
It’s time for a change.
2006 Ron Paul Chapter 9
RON PAUL OF TEXAS
Before the U.S. House of Representatives
April 25, 2006
What the Price of Gold is Telling Us
2006 Ron Paul 9:1
The financial press, and even the network news shows, have
begun reporting the price of gold regularly.
For twenty years, between 1980 and 2000, the price of gold was
There was little
interest, and the price was either falling or remaining steady.
2006 Ron Paul 9:2
Since 2001 however, interest in gold has soared along with
With the price now over
$600 an ounce, a lot more people are becoming interested in gold as an
investment and an economic indicator.
can be learned by understanding what the rising dollar price of gold
2006 Ron Paul 9:3
The rise in gold prices from $250 per ounce in 2001 to over $600 today has drawn investors and
the precious metals market.
many already have made handsome profits, buying gold per se should not
as a good investment.
gold earns no interest and its quality never changes.
It’s static, and does not grow as sound investments should.
2006 Ron Paul 9:4
It’s more accurate to say that one might invest in a gold
or silver mining company, where management, labor costs, and the nature
discoveries all play a vital role in determining the quality of the
and the profits made.
2006 Ron Paul 9:5
Buying gold and holding it is somewhat analogous to
converting one’s savings into one hundred dollar bills and hiding them
the mattress — yet not exactly the same.
Both gold and dollars are considered money, and holding money
qualify as an investment.
a big difference between the two however, since by holding paper money
purchasing power of commodity money, i.e. gold, however, goes up if the
government devalues the circulating fiat currency.
2006 Ron Paul 9:6
Holding gold is protection or insurance against government’s proclivity to debase its currency.
The purchasing power of gold goes up not because it’s a
investment; it goes up in value only because the paper currency goes
In our current situation,
that means the dollar.
2006 Ron Paul 9:7
One of the characteristics of commodity money — one that originated naturally in the marketplace — is that it must serve as a
Gold and silver meet that
test — paper does not.
this profound difference, the incentive and wisdom of holding emergency
the form of gold becomes attractive when the official currency is being
It’s more attractive
than trying to save wealth in the form of a fiat currency, even when
some nominal interest.
The lack of
earned interest on gold is not a problem once people realize the
power of their currency is declining faster than the interest rates
The purchasing power of gold
can rise even faster than increases in the cost of living.
2006 Ron Paul 9:8
The point is that most who buy gold do so to protect
against a depreciating currency rather than as an investment in the
this less than citizens of other countries; some nations have suffered
severe monetary inflation that literally led to the destruction of
inflation — i.e. the depreciation of the U.S. dollar — has been
average Americans are unaware of how this occurs.
For instance, few Americans know nor seem concerned that the
pre-Federal Reserve dollar is now worth only four cents.
Officially, our central bankers and our politicians express no
the course on which we are set is fraught with great danger to our
our political system.
that money created out of thin air can work economic miracles, if only
“managed,” is pervasive in D.C.
2006 Ron Paul 9:9
In many ways we shouldn’t be surprised about this trust
in such an unsound system.
least four generations our government-run universities have
preached a monetary doctrine justifying the so-called wisdom of paper
the “foolishness” of sound money.
only that, paper money has worked surprisingly well in the past 35
years — the
years the world has accepted pure paper money as currency.
Alan Greenspan bragged that central bankers in these several
decades have gained the knowledge necessary to make paper money respond
as if it
This removes the problem
of obtaining gold to back currency, and hence frees politicians from
discipline a gold standard imposes.
2006 Ron Paul 9:10
Many central bankers in the last 15 years became so
confident they had achieved this milestone that they sold off large
their gold reserves.
At other times
they tried to prove that paper works better than gold by artificially
up the dollar by suppressing market gold prices.
recent deception failed just as it did in the 1960s,
when our government tried to hold gold artificially low at $35 an ounce.
But since they could not truly repeal the economic laws
just as many central bankers sold, others bought.
It’s fascinating that the European central banks sold gold while
central banks bought it over the last several years.
2006 Ron Paul 9:11
Since gold has proven to be the real money of the ages, we
see once again a shift in wealth from the West to the East, just as we
loss of our industrial base in the same direction.
Though Treasury officials deny any U.S. sales or loans of our
gold holdings, no audits are permitted so no one can be certain.
2006 Ron Paul 9:12
The special nature of the dollar as the reserve currency of
the world has allowed this game to last longer than it would have
But the fact that gold has gone from $252 per ounce to over $600
there is concern about the future of the dollar.
The higher the price for gold, the greater the concern for the
Instead of dwelling on the dollar price of gold, we should be
about the depreciation of the dollar.
1934 a dollar was worth 1/20
of an ounce of gold; $20
ounce of gold.
Today a dollar
is worth 1/600
of an ounce of gold, meaning it takes $600
one ounce of gold.
2006 Ron Paul 9:13
The number of dollars created by the Federal Reserve, and
through the fractional reserve banking system, is crucial in
determining how the
market assesses the relationship of the dollar and gold.
Though there’s a strong correlation, it’s not instantaneous or
many variables to consider, but in the long term the dollar price of
represents past inflation of the money supply.
Equally important, it represents the anticipation of how much
will be created in the future.
introduces the factor of trust and confidence in our monetary
And these days the
American people are casting a vote of
“no confidence” in this regard, and for good reasons.
2006 Ron Paul 9:14
The incentive for central bankers to create new money out
of thin air is twofold.
One is to
practice central economic planning through the manipulation of interest
The second is to monetize the escalating federal debt
and thrive on.
2006 Ron Paul 9:15
Today no one in Washington believes for a minute that
runaway deficits are going to be curtailed.
In March alone, the federal government created an historic $85
deficit. The current supplemental bill going through Congress has grown
billion to over $106 billion, and everyone knows it will not draw
Bush’s first veto.
knowledgeable people therefore assume that inflation of the money
supply is not
only going to continue, but accelerate.
anticipation, plus the fact that many new dollars have been created
past 15 years that have not yet been fully discounted, guarantees the
depreciation of the dollar in terms of gold.
2006 Ron Paul 9:16
There’s no single measurement that reveals what the Fed
has done in the recent past or tells us exactly what it’s about to do
Forget about the lip
service given to transparency by new Fed Chairman Bernanke.
Not only is this administration one of the
across the board in our history, the current Fed firmly supports
most important measurement of current monetary policy to Congress, the
community, and the American public.
of a lack of interest and poor understanding of monetary policy,
expressed essentially no concern about the significant change in
statistics on the money supply.
2006 Ron Paul 9:17
Beginning in March, though planned before Bernanke arrived
at the Fed, the central bank discontinued compiling and reporting the
aggregate known as M3.
M3 is the
best description of how quickly the Fed is creating new money and
Common sense tells us that a government central bank creating
out of thin air depreciates the value of each dollar in circulation.
Yet this report is no longer available to us and Congress makes
demands to receive it.
2006 Ron Paul 9:18
Though M3 is the most helpful statistic to track Fed
activity, it by no means tells us everything we need to know about
Total bank credit,
still available to us, gives us indirect information reflecting the
ultimately the markets will figure out exactly what the Fed is up to,
individuals, financial institutions, governments, and other central
The fact that our
money supply is rising significantly cannot be hidden from the markets.
2006 Ron Paul 9:19
The response in time will drive the dollar down, while
driving interest rates and commodity prices up.
we see this trend developing, which surely will
accelerate in the not too distant future.
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
This means holding fewer dollars that are decreasing in value
holding gold as it increases in value.
2006 Ron Paul 9:20
A soaring gold price is a vote of “no confidence” in
the central bank and the dollar.
certainly was the case in 1979 and 1980.
gold prices reflect a growing restlessness with the increasing money
budgetary and trade deficits, our unfunded liabilities, and the
Congress and the administration to reign in runaway spending.
2006 Ron Paul 9:21
Denying us statistical information, manipulating interest
rates, and artificially trying to keep gold prices in check won’t help
If the markets are fooled
short term, it only means the adjustments will be much more dramatic
And in the meantime, other market imbalances develop.
2006 Ron Paul 9:22
The Fed tries to keep the consumer spending spree going,
not through hard work and savings, but by creating artificial wealth in
markets bubbles and housing bubbles.
these distortions run their course and are discovered, the corrections
2006 Ron Paul 9:23
Likewise, a fiat monetary system encourages speculation and
develop, scapegoats are sought and frequently found in foreign nations.
This prompts many to demand altering exchange rates and
The sentiment for this
type of solution is growing each day.
2006 Ron Paul 9:24
Though everyone decries inflation, trade imbalances,
economic downturns, and federal deficits, few attempt a closer study of
monetary system and how these events are interrelated.
Even if it were recognized that a gold standard without monetary
inflation would be advantageous, few in Washington would accept the
disadvantages of living with the discipline of gold — since it serves
as a check
on government size and power.
is a sad commentary on the politics of today.
The best analogy to our affinity for government spending,
inflating is that of a drug addict who knows if he doesn’t quit he’ll
yet he can’t quit because of the heavy price required to overcome the
The right choice is
very difficult, but remaining addicted to drugs guarantees the death of
patient, while our addiction to deficit spending, debt, and inflation
the collapse of our economy.
2006 Ron Paul 9:25
Special interest groups, who vigorously compete for federal
dollars, want to perpetuate the system rather than admit to a dangerous
Those who champion
welfare for the poor, entitlements for the middle class, or war
the military industrial corporations, all agree on the so-called
bestowed by the Fed’s power to counterfeit fiat money.
Bankers, who benefit from our fractional reserve system,
criticize the Fed, especially since it’s the lender of last resort that
out financial institutions when crises arise.
And it’s true, special interests and bankers do benefit from the
and may well get bailed out — just as we saw with the Long-Term Capital
Management fund crisis a few years ago.
the past, companies like Lockheed and Chrysler benefited as well.
But what the Fed cannot do is guarantee the market will maintain
the worthiness of the dollar.
policy guarantees that the integrity of the dollar will be undermined.
Exactly when this will occur, and the extent of the resulting
financial system, cannot be known for sure — but it is coming.
There are plenty of indications already on the horizon.
2006 Ron Paul 9:26
Foreign policy plays a significant role in the economy and
the value of the dollar.
policy of militarism and empire building cannot be supported through
The American people would
never tolerate the taxes required to pay immediately for overseas wars,
the discipline of a gold standard.
and creating new money is much more politically palatable.
It hides and delays the real costs of war, and the people are
complacency — especially since the wars we fight are couched in terms
patriotism, spreading the ideas of freedom, and stamping out terrorism.
Unnecessary wars and fiat currencies go hand-in-hand, while a
standard encourages a sensible foreign policy.
2006 Ron Paul 9:27
The cost of war is enormously detrimental; it significantly
contributes to the economic instability of the nation by boosting
deficits, and inflation.
for war are funds that could have remained in the productive economy to
the standard of living of Americans now unemployed, underemployed, or
living on the margin.
2006 Ron Paul 9:28
Yet even these costs may be preferable to paying for war
with huge tax increases.
because although fiat dollars are theoretically worthless, value is
the trust placed in them by the world’s financial community.
Subjective trust in a currency can override objective knowledge
government policies, but only for a limited time.
2006 Ron Paul 9:29
Economic strength and military power contribute to the
trust in a currency; in today’s world trust in the U.S. dollar is not
and therefore fragile.
of the dollar, being as good as gold up until 1971, is helpful in
artificially higher value for the dollar than deserved.
2006 Ron Paul 9:30
Foreign policy contributes to the crisis when the spending
to maintain our worldwide military commitments becomes prohibitive, and
inflationary pressures accelerate.
the real crisis hits when the world realizes the king has no clothes,
the dollar has no backing, and we face a military setback even greater
already are experiencing in Iraq.
token friends may quickly transform into vocal enemies once the attack
2006 Ron Paul 9:31
False trust placed in the dollar once was helpful to us,
but panic and rejection of the dollar will develop into a real
Then we will have no other option but to tighten our belts, go
work, stop borrowing, start saving, and rebuild our industrial base,
adjusting to a lower standard of living for most Americans.
2006 Ron Paul 9:32
Counterfeiting the nation’s money is a serious offense.
The founders were especially adamant about avoiding the chaos,
and destruction associated with the Continental dollar.
That’s why the Constitution is clear that only gold and silver
be legal tender in the United States.
1792 the Coinage Act authorized the death penalty for any private
counterfeited the currency.
they weren’t explicit that counterfeiting by government officials is
detrimental to the economy and the value of the dollar.
2006 Ron Paul 9:33
In wartime, many nations actually operated counterfeiting
programs to undermine our dollar, but never to a disastrous level.
The enemy knew how harmful excessive creation of new money could
the dollar and our economy.
seems we never learned the dangers of creating new money out of thin
We don’t need an Arab nation or the Chinese to undermine our
with a counterfeiting operation.
do it ourselves, with all the disadvantages that would occur if others
did it to
Today we hear threats from some
Arab, Muslim, and far Eastern countries about undermining the dollar
by dishonest counterfeiting, but by initiating an alternative monetary
based on gold.
Wouldn’t that be
Such an event theoretically
could do great harm to us.
may well come, not so much as a direct political attack on the dollar
out of necessity to restore confidence in money once again.
2006 Ron Paul 9:34
Historically, paper money never has lasted for long periods
of time, while gold has survived thousands of years of attacks by
interests and big government.
time, the world once again will restore trust in the monetary system by
some currency as good as gold.
2006 Ron Paul 9:35
Gold, or any acceptable market commodity money, is required
to preserve liberty.
control by government of a system that creates fiat money out of thin
guarantees the loss of liberty.
matter how well-intended our militarism is portrayed, or how happily
promises of wonderful programs for the poor are promoted, inflating the
supply to pay these bills makes government bigger.
Empires always fail, and expenses always exceed projections.
Harmful unintended consequences are the rule, not the exception.
Welfare for the poor is inefficient and wasteful.
The beneficiaries are rarely the poor themselves, but instead
politicians, bureaucrats, or the wealthy.
same is true of all foreign aid — it’s nothing more than a program that
from the poor in a rich country and gives to the rich leaders of a poor
Whether it’s war or welfare payments, it always means higher
inflation, and debt.
the extraction of wealth from the productive economy, the distortion of
market by interest rate manipulation, or spending for war and welfare,
can’t happen without infringing upon personal liberty.
2006 Ron Paul 9:36
At home the war on poverty, terrorism, drugs, or foreign
rulers provides an opportunity for authoritarians to rise to power,
who think nothing of violating the people’s rights to privacy and
They believe their role is
to protect the secrecy of government, rather than protect the privacy
Unfortunately, that is
the atmosphere under which we live today, with essentially no respect
Bill of Rights.
2006 Ron Paul 9:37
Though great economic harm comes from a government monopoly
fiat monetary system, the loss of liberty associated with it is equally
Just as empires are
self-limiting in terms of money and manpower, so too is a monetary
on illusion and fraud.
When the end
comes we will be given an opportunity to choose once again between
and liberty on one hand; chaos, poverty, and authoritarianism on the
2006 Ron Paul 9:38
The economic harm done by a fiat monetary system is
pervasive, dangerous, and unfair.
runaway inflation is injurious to almost everyone, it is more insidious
Once inflation is
recognized as a tax, it becomes clear the tax is regressive: penalizing
and middle class more than the rich and politically privileged.
Price inflation, a consequence of inflating the money supply by
central bank, hits poor and marginal workers first and foremost.
It especially penalizes savers, retirees, those on fixed
anyone who trusts government promises.
businesses and individual enterprises suffer more than the financial
borrow large sums before the money loses value.
who are on the receiving end of government
contracts — especially in the military industrial complex during
wartime — receive undeserved benefits.
2006 Ron Paul 9:39
It’s a mistake to blame high gasoline and oil prices on
If we impose new
taxes or fix prices, while ignoring monetary inflation, corporate
excessive regulations, shortages will result.
The market is the only way to determine the best price for any
The law of supply and demand cannot be repealed.
The real problems arise when government planners give subsidies
companies and favor one form of energy over another.
2006 Ron Paul 9:40
Energy prices are rising for many reasons: Inflation;
increased demand from China and India; decreased supply resulting from
invasion of Iraq; anticipated disruption of supply as we push regime
Iran; regulatory restrictions on gasoline production; government
the free market development of alternative fuels; and subsidies to big
as free leases and grants for research and development.
2006 Ron Paul 9:41
Interestingly, the cost of oil and gas is actually much
higher than we pay at the retail level.
of the DOD budget is spent protecting “our” oil supplies, and if such
spending is factored in gasoline probably costs us more than $5 a
The sad irony is that this military effort to secure cheap oil
inevitably backfires, and actually curtails supplies and boosts prices
The waste and fraud in issuing
contracts to large
corporations for work in Iraq only add to price increases.
2006 Ron Paul 9:42
When problems arise under conditions that exist today,
it’s a serious error to blame the little bit of the free market that
Last summer the market
worked efficiently after Katrina — gas hit $3 a gallon, but soon
increased, usage went down, and the price returned to $2.
In the 1980s, market forces took oil from $40 per barrel to $10
barrel, and no one cried for the oil companies that went bankrupt.
Today’s increases are for the reasons mentioned above.
It’s natural for labor to seek its highest wage, and businesses
strive for the greatest profit. That’s the way the market works.
When the free market is allowed to work, it’s
who ultimately determines price and quality, with labor and business
accommodating consumer choices.
this process is distorted by government, prices rise excessively, labor
and profits are negatively affected, and problems emerge.
Instead of fixing the problem, politicians and demagogues
demanding windfall profits taxes and price controls, while never
previous government interference caused the whole mess in the first
Never let it be said that higher oil prices and profits cause
inflation of the money supply causes higher prices!
2006 Ron Paul 9:43
Since keeping interest rates below market levels is
synonymous with new money creation by the Fed, the resulting business
higher cost of living, and job losses all can be laid at the doorstep
This burden hits the poor the
most, making Fed taxation by inflation the worst of all regressive
Statistics about revenues generated by the income tax are
misleading; in reality much harm is done by our welfare/warfare system
supposedly designed to help the poor and tax the rich.
Only sound money can rectify the blatant injustice of this
2006 Ron Paul 9:44
The Founders understood this great danger, and voted
overwhelmingly to reject “emitting bills of credit,” the term they used
paper or fiat money.
It’s too bad
the knowledge and advice of our founders, and their mandate in the
are ignored today at our great peril.
current surge in gold prices — which reflects our dollar’s
devaluation — is
warning us to pay closer attention to our fiscal, monetary,
2006 Ron Paul 9:45
Meaning of the Gold Price — Summation
2006 Ron Paul 9:46
A recent headline in the financial press announced that
gold prices surged over concern that confrontation with Iran will
oil prices higher.
well reflect the current situation, but higher gold prices mainly
monetary expansion by the Federal Reserve.
Dwelling on current events and their effect on gold prices
concern for symptoms rather than an understanding of the actual cause
enormous increase in the money supply over the past 35 years and a
paper monetary system, this increase in the price of gold would not
2006 Ron Paul 9:47
Certainly geo-political events in the Middle East under a
gold standard would not alter its price, though they could affect the
oil and cause oil prices to rise.
under conditions created by excessive paper money would one expect all
prices to rise.
This is a mere
reflection of the devaluation of the dollar.
2006 Ron Paul 9:48
Particular things to remember:
2006 Ron Paul 9:49
If one endorses small government
and maximum liberty, one must support commodity money.
2006 Ron Paul 9:50
One of the strongest restraints
against unnecessary war is a gold standard.
2006 Ron Paul 9:51
Deficit financing by government is
severely restricted by sound money.
2006 Ron Paul 9:52
The harmful effects of the
business cycle are virtually eliminated with an honest gold standard.
2006 Ron Paul 9:53
Saving and thrift are encouraged
by a gold standard; and discouraged by paper money.
2006 Ron Paul 9:54
Price inflation, with generally
rising price levels, is characteristic of paper money.
Reports that the consumer price index and the producer price
rising are distractions: the real cause of inflation is the Fed’s
2006 Ron Paul 9:55
Interest rate manipulation by
central bank helps the rich, the banks, the government, and the
2006 Ron Paul 9:56
Paper money permits the regressive
inflation tax to be passed off on the poor and the middle class.
2006 Ron Paul 9:57
Speculative financial bubbles are
characteristic of paper money — not gold.
2006 Ron Paul 9:58
Paper money encourages economic
and political chaos, which subsequently causes a search for scapegoats
than blaming the central bank.
2006 Ron Paul 9:59
Dangerous protectionist measures
frequently are implemented to compensate for the dislocations caused by
2006 Ron Paul 9:60
Paper money, inflation, and the
conditions they create contribute to the problems of illegal
2006 Ron Paul 9:61
The value of gold is remarkably
2006 Ron Paul 9:62
The dollar price of gold reflects
2006 Ron Paul 9:63
Holding gold helps preserve and
store wealth, but technically gold is not a true investment.
2006 Ron Paul 9:64
2006 Ron Paul 9:65
Since 2001 the dollar has been
devalued by 60%.
2006 Ron Paul 9:66
In 1934 FDR devalued the dollar by 41%.
2006 Ron Paul 9:67
In 1971 Nixon devalued the dollar by 7.9%.
2006 Ron Paul 9:68
In 1973 Nixon devalued the dollar by 10%.
2006 Ron Paul 9:69
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.
involved a severe recession, interest rates over 21%, and general price
inflation of 15%.
2006 Ron Paul 9:70
Today we face a 60% devaluation and counting, yet no one seems to care.
of greater significance than the three events mentioned above.
And yet the one measurement that best reflects
the degree of
inflation, the Fed and our government deny us.
Since March, M3 reporting has been discontinued.
For starters, I’d like to see Congress demand that this report
I fully believe the
American people and Congress are entitled to this information.
Will we one day complain about false intelligence, as we have
Will we complain about
not having enough information to address monetary policy after it’s too
2006 Ron Paul 9:71
If ever there was a time to get a handle on what sound money is and what it
means, that time is today.
2006 Ron Paul 9:72
Inflation, as exposed by high gold prices, transfers wealth from the middle
class to the rich, as real wages decline while the salaries of CEOs,
stars, and athletes skyrocket — along with the profits of the military
industrial complex, the oil industry, and other special interests.
2006 Ron Paul 9:73
A sharply rising gold price is a vote of “no confidence” in Congress’ ability to control the budget, the Fed’s
to control the money supply, and the administration’s ability to bring
stability to the Middle East.
2006 Ron Paul 9:74
Ultimately, the gold price is a measurement of trust in the
currency and the politicians who run the country.
been that way for a long time, and is not about to
2006 Ron Paul 9:75
If we care about the financial system, the tax system, and
the monumental debt we’re accumulating, we must start talking about the
benefits and discipline that come only with a commodity standard of
money — money the government and central banks absolutely cannot create out of
2006 Ron Paul 9:76
dictates reform at some point.
But should we wait until the dollar is 1/1,000 of an ounce of
1/2,000 of an ounce of gold?
longer we wait, the more people suffer and the more difficult reforms
Runaway inflation inevitably leads to political chaos, something
countries have suffered throughout the 20
The worst example of course was the German inflation of the
led to the rise of Hitler.
communist takeover of China was associated with runaway inflation
brought on by
The time for
action is now, and it is up to the American people and the U.S.
2006 Ron Paul Chapter 10
RON PAUL OF TEXAS
Before the U.S. House of Representatives
May 2, 2006
What Congress Can Do About Soaring Gas Prices
2006 Ron Paul 10:1
soaring and the people are screaming.
they want something done about it—now!
2006 Ron Paul 10:2
$100 rebate checks to American motorists won’t cut it,
nor will mandatory mileage requirements for new vehicles.
Taxing oil profits will only force prices higher.
But there are some very important things we can do immediately
2006 Ron Paul 10:3
: We must reassess our foreign policy and
announce some changes.
One of the
reasons we went into Iraq was to secure “our” oil.
Before the Iraq war oil was less than $30 per barrel; today
it is over $70.
The sooner we get
out of Iraq and allow the Iraqis to solve their own problems the better.
Since 2002 oil production in Iraq has dropped 50%.
Pipeline sabotage and fires are routine; we have been unable to
Soaring gasoline prices are a
giant unintended consequence of our invasion, pure and simple.
2006 Ron Paul 10:4
must end our obsession for a military confrontation with Iran.
Iran does not have a nuclear weapon, and according to our own
CIA is not
on the verge of obtaining one for years.
is not in violation of the Nuclear Nonproliferation Treaty, and has a
right to enrich uranium for energy—in spite of the incessant government
media propaganda to the contrary.
has never been sanctioned by the UN Security Council.
Yet the drumbeat grows louder for attacking certain sites in
by conventional or even nuclear means.
resolutions by Congress stir up unnecessary animosity toward Iran, and
even more concern about future oil supplies from the Middle East.
We must quickly announce we do not seek war with Iran, remove
economic sanctions against her, and accept her offer to negotiate a
solution to the impasse.
on Iran, coupled with our continued presence in Iraq, could hike gas
$5 or $6 per gallon here at home.
contrast, a sensible approach toward Iran could quickly lower oil
prices by $20
2006 Ron Paul 10:5
: We must remember that prices of all things go
up because of inflation.
by definition is an increase in the money supply.
The money supply is controlled by the Federal Reserve Bank, and
to the deficits Congress creates.
deficits are excessive, as they are today, the Fed creates new dollars
thin air to buy Treasury bills and keep interest rates artificially low.
But when new money is created out of nothing, the money already
circulation loses value.
is recognized, prices rise — some more rapidly than others.
That’s what we see today with the cost of energy.
2006 Ron Paul 10:6
Exploding deficits, due to runaway entitlement spending and
the cost of dangerous militarism, create pressure for the Fed to
greatly to the higher prices we all claim to oppose.
2006 Ron Paul 10:7
If we want to do something about gas prices, we should
demand and vote for greatly reduced welfare and military spending, a
budget, and fewer regulations that interfere with the market
We also should
demand a return to a sound commodity monetary system.
2006 Ron Paul 10:8
All subsidies and special benefits to energy companies
should be ended.
And in the
meantime let’s eliminate federal gas taxes at the pump.
2006 Ron Paul 10:9
Oil prices are at a level where consumers reduce consumption voluntarily.
will work if we let it.
great as the market economy is, it cannot overcome a foreign policy
destined to disrupt oil supplies and threaten the world with an
dangerous conflict in the Middle East.
2006 Ron Paul Chapter 11
RON PAUL OF TEXAS
Before the U.S. House of Representatives
June 20, 2006
Dialogue is Key to Dealing With Iran
2006 Ron Paul 11:1
I am encouraged by recent news that the Administration has offered to put
to our 26 year old policy of refusing to speak with the Iranians.
2006 Ron Paul 11:2
this is a
positive move, I am still concerned about the pre-conditions set by the
administration before it will agree to begin talks. Unfortunately, the
pre-condition is that the Iranians abandon their uranium enrichment
this is exactly what the negotiations are meant to discuss! How can a
dialogue take place when one side demands that the other side abandon
position before talks can begin? Is this offer designed to fail so as
the way for military action while being able to claim that diplomacy
attempted? If the administration wishes to avoid this perception, it
wiser to abandon pre-conditions and simply agree to talk to Iran.
2006 Ron Paul 11:3
Iran give up its uranium enrichment program, the United States is
changing the terms of the Nuclear Non-Proliferation treaty. We must
that Iran has never been found in violation of the Non-Proliferation
inspectors have been in Iran for years, and International Atomic Energy
Director ElBaradei has repeatedly reported that he can find no
diversion of source or special nuclear materials to a military purpose.
2006 Ron Paul 11:4
the Non-Proliferation Treaty, Iran has, according to the Treaty, the
“inalienable right” to the “development research, production and use of
nuclear energy for peaceful purposes without discrimination.” Yet the
States is demanding that Iran give up that right even though after
monitoring Iran has never been found to have diverted nuclear material
peaceful to military use.
2006 Ron Paul 11:5
are well aware, I am strongly opposed to the United Nations and our
participation in that organization. Every Congress I introduce a bill
to get us
out of the UN. But I also recognize problems with our demanding to have
ways. On one hand, we pretend to abide by the UN and international law,
when Congress cited the UN in its resolution authorizing the president
initiate war with Iraq. On the other hand, we feel free to completely
terms of treaties - and even unilaterally demand a change in the terms
treaties - without hesitation. This leads to an increasing perception
world that we are no longer an honest broker, that we are not to be
this the message we really want to send at this critical time?
2006 Ron Paul 11:6
it does not matter whether the US operates under double standards. We
lone super-power and can do as we wish, they argue. But this is a
problem of the
rule of law. Are we a nation that respects the rule of law? What
example does it
set for the rest of the world - including rising powers like China and
when we change the rules of the game whenever we see fit? Won’t this
to haunt us?
2006 Ron Paul 11:7
that decision-making power under Iran’s government is not all
the president. We are all familiar with the inflammatory rhetoric of
Ahmadinejad, but there are other governmental bodies in Iran that are
moderate and eager for dialogue. We have already spent hundreds of
dollars on a war in the Middle East. We cannot afford to continue on
the path of
conflict over dialogue and peaceful resolution. Unnecessarily
is not in the US interest and is not in the interest of world peace.
2006 Ron Paul Chapter 12
RON PAUL OF TEXAS
Before the U.S. House of Representatives
June 29, 2006
Why Are Americans So Angry?
2006 Ron Paul 12:1
I have been involved in politics for over 30 years and have never
seen the American people so angry.
not unusual to sense a modest amount of outrage, but it seems the anger
unusually intense and quite possibly worse than ever.
It’s not easily explained, but I have some thoughts on this
Generally, anger and frustration among people are related to
conditions; bread and butter issues.
today, according to government statistics, things are going well. We
unemployment, low inflation, more homeowners than ever before, and
leisure with abundant luxuries.
the poor have cell phones, televisions, and computers.
Public school is free, and anyone can get free medical care at
emergency room in the country. Almost all taxes are paid by the top 50%
The lower 50% pay
essentially no income taxes, yet general dissatisfaction and anger are
The old slogan
“It’s the economy, stupid,” just doesn’t seem to explain things
2006 Ron Paul 12:2
Some say it’s the war, yet we’ve lived with war throughout the 20
century. The bigger they were the more
And the current war, by
comparison, has fewer American casualties than the rest.
So it can’t just be the war itself.
2006 Ron Paul 12:3
People complain about corruption, but what’s new about
In the 19
century we had railroad scandals; in the 20
Teapot Dome scandal, Watergate, Koreagate, and many others without too
anger and resentment.
Yet today it
seems anger is pervasive and worse than we’ve experienced in the past.
2006 Ron Paul 12:4
Could it be that war, vague yet persistent economic
uncertainty, corruption, and the immigration problem all contribute to
we feel in America?
it’s almost as though people aren’t exactly sure why they are so uneasy.
They only know that they’ve had it and aren’t going to put up
2006 Ron Paul 12:5
High gasoline prices make a lot of people angry, though
there is little understanding of how deficits, inflation, and war in
East all contribute to these higher prices.
2006 Ron Paul 12:6
Generally speaking, there are two controlling forces that
determine the nature of government: the people’s concern for their
self interests; and the philosophy of those who hold positions of power
influence in any particular government.
Soviet Communism the workers believed their economic best interests
served, while a few dedicated theoreticians placed themselves in
Likewise, the intellectual
leaders of the American Revolution were few, but rallied the colonists
all to overthrow a tyrannical king.
2006 Ron Paul 12:7
Since there’s never a perfect understanding between these
two forces, the people and the philosophical leaders, and because the
motivations of the intellectual leaders vary greatly, any transition
system of government to another is unpredictable.
communist takeover by Lenin was violent and costly; the
demise of communism and the acceptance of a relatively open system in
Soviet Union occurred in a miraculous manner.
systems had intellectual underpinnings.
2006 Ron Paul 12:8
In the United States over the last century we have witnessed the coming and going of various intellectual influences by
of the free market, Keynesian welfarism, varieties of socialism, and
In foreign policy
we’ve seen a transition from the founder’s vision of non-intervention
affairs of others to internationalism, unilateral nation building, and
We now have in place a
policy, driven by determined neo-conservatives, to promote American
“goodness” and democracy throughout the world by military force — with
particular emphasis on remaking the Middle East.
2006 Ron Paul 12:9
We all know that ideas do have consequences.
Bad ideas, even when supported naively by the people, will have
Could it be the people
sense, in a profound way, that the policies of recent decades are
unworkable — and thus they have instinctively lost confidence in their government
This certainly happened in the final years of the Soviet system.
Though not fully understood, this sense of frustration may well
source of anger we hear expressed on a daily basis by so many.
2006 Ron Paul 12:10
No matter how noble the motivations of political leaders
are, when they achieve positions of power the power itself inevitably
their driving force.
officials too often yield to the temptations and corrupting influences
2006 Ron Paul 12:11
But there are many others who are not bashful about using
government power to do “good.”
truly believe they can make the economy fair through a redistributive
spending system; make the people moral by regulating personal behavior
choices; and remake the world in our image using armies.
They argue that the use of force to achieve good is legitimate
for government — always speaking of the noble goals while ignoring the
inevitable failures and evils caused by coercion.
2006 Ron Paul 12:12
Not only do they justify government force, they believe
they have a moral obligation to do so.
2006 Ron Paul 12:13
Once we concede government has this “legitimate” function and can be manipulated by a majority vote, the various special
interests move in quickly.
gain control to direct government largesse for their own benefit.
Too often it is corporate interests who learn how to manipulate
contract, regulation and tax policy.
promoters of the “progressive” agenda, always hostile to property
compete for government power through safety, health, and environmental
Both groups resort to
using government power — and abuse this power — in an effort to serve
In the meantime,
constitutional limits on power and its mandate to protect liberty are
2006 Ron Paul 12:14
Since the use of power to achieve political ends is
accepted, pervasive, and ever expanding, popular support for various
achieved by creating fear.
the fear is concocted out of thin air, but usually it’s created by
exaggerating a problem or incident that does not warrant the proposed
caused the problem in the first place.
irony, of course, is that government action rarely solves any problem,
rather worsens existing problems or creates altogether new ones.
2006 Ron Paul 12:15
Fear is generated to garner popular support for the
proposed government action, even when some liberty has to be sacrificed.
This leads to a society that is systemically driven toward
fear — fear
that gives the monstrous government more and more authority and control
lives and property.
2006 Ron Paul 12:16
Fear is constantly generated by politicians to rally the
support of the people.
2006 Ron Paul 12:17
Environmentalists go back and forth, from warning about a
coming ice age to arguing the grave dangers of global warming.
2006 Ron Paul 12:18
It is said that without an economic safety net — for everyone, from cradle to
grave — people would starve and many would become homeless.
2006 Ron Paul 12:19
It is said that without government health care, the poor
would not receive treatment.
care would be available only to the rich.
2006 Ron Paul 12:20
Without government insuring pensions, all private pensions would be threatened.
2006 Ron Paul 12:21
Without federal assistance, there would be no funds for
public education, and the quality of our public schools would
diminish — ignoring recent history to the contrary.
2006 Ron Paul 12:22
It is argued that without government surveillance of every
American, even without search warrants, security cannot be achieved.
The sacrifice of some liberty is required for security of our
2006 Ron Paul 12:23
We are constantly told that the next terrorist attack could
come at any moment.
questioning why we might be attacked, this atmosphere of fear instead
giving up liberty and privacy.
has been conveniently used to generate the fear necessary to expand
foreign intervention and domestic surveillance.
2006 Ron Paul 12:24
Fear of nuclear power is used to assure shortages and
highly expensive energy.
2006 Ron Paul 12:25
In all instances where fear is generated and used to expand
government control, it’s safe to say the problems behind the fears were
caused by the free market economy, or too much privacy, or excessive
2006 Ron Paul 12:26
It’s easy to generate fear, fear that too often becomes
excessive, unrealistic, and difficult to curb.
This is important: It leads to even more demands for government
than the perpetrators of the fear actually anticipated.
2006 Ron Paul 12:27
Once people look to government to alleviate their fears and
make them safe, expectations exceed reality.
FEMA originally had a small role, but its current mission is to
manage every natural disaster that befalls us. This mission was
a fraud during last year’s hurricanes; incompetence and corruption are
anger among those who have to pay the bills, and among those who didn’t
receive the handouts promised to them quickly enough.
2006 Ron Paul 12:28
Generating exaggerated fear to justify and promote attacks
on private property is commonplace.
serves to inflame resentment between the producers in society and the
victims, whose demands grow exponentially.
2006 Ron Paul 12:29
The economic impossibility of this system guarantees that
the harder government tries to satisfy the unlimited demands, the worse
We won’t be able
to pay the bills forever, and eventually our ability to borrow and
money must end.
This dependency on
government will guarantee anger when the money runs out.
Today we’re still able to borrow and inflate, but budgets are
tighter and people sense serious problems lurking in the future.
This fear is legitimate.
easy solution to our fiscal problems is readily apparent, and this
2006 Ron Paul 12:30
Disenchantment is directed at the politicians and their
false promises, made in order to secure reelection and exert power that
of them enjoy.
2006 Ron Paul 12:31
It is, however, in foreign affairs that governments have
most abused fear to generate support for an agenda that under normal
circumstances would have been rejected.
decades our administrations have targeted one supposed “Hitler” after
another to gain support for military action against a particular
Today we have three choices termed the axis of evil: Iran, Iraq
2006 Ron Paul 12:32
We recently witnessed how unfounded fear was generated
concerning Saddam Hussein’s weapons of mass destruction to justify our
ever pre-emptive war.
It is now
universally known the fear was based on falsehoods.
And yet the war goes on; the death and destruction continue.
2006 Ron Paul 12:33
This is not a new phenomenon.
General Douglas MacArthur understood the political use of
fear when he made this famous statement:
2006 Ron Paul 12:34
“Always there has been some
terrible evil at home or some monstrous foreign power that was going to
us up if we did not blindly rally behind it.”
2006 Ron Paul 12:35
We should be ever vigilant when we hear the fear mongers
preparing us for the next military conflict our young men and women
expected to fight.
told of the great danger posed by Almadinejad in Iran and Kim Jung Il
Even Russia and China
bashing is in vogue again.
we’re still not able to trade with or travel to Cuba.
A constant enemy is required to expand the state.
More and more news stories blame Iran for the bad results in
Does this mean Iran is next
on the hit list?
2006 Ron Paul 12:36
The world is much too dangerous, we’re told, and therefore we must be prepared to fight at a moment’s notice, regardless
If the public could not be
manipulated by politicians’ efforts to instill needless fear, fewer
be fought and far fewer lives would be lost.
2006 Ron Paul 12:37
Fear and Anger over Iraq
Though the American people are fed up for a lot of
legitimate reasons, almost all polls show the mess in Iraq leads the
list of why
the anger is so intense.
2006 Ron Paul 12:38
Short wars, with well-defined victories, are tolerated by
the American people even when they are misled as to the reasons for the
Wars entered into without a proper declaration tend to be
motivated and not for national security reasons.
These wars, by their very nature, are prolonged, costly, and
require a new administration to finally end them.
This certainly was true with the Korean and Vietnam wars.
The lack of a quick military success, the loss of life and limb,
huge economic costs of lengthy wars precipitate anger.
This is overwhelmingly true when the war propaganda that stirred
illegitimate fears is exposed as a fraud.
soon come to realize the promise of guns and butter is an illusion.
They come to understand that inflation, a weak economy, and a
war without real success are the reality.
2006 Ron Paul 12:39
The anger over the Iraq war is multifaceted.
Some are angry believing they were lied to in order to gain
at the beginning.
Others are angry that
the forty billion dollars we spend
every year on intelligence gathering failed to provide good information.
Proponents of the war too often are unable to admit the truth.
They become frustrated with the progress of the war and then
those wanting to change course, angrily denouncing them as unpatriotic
2006 Ron Paul 12:40
Those accused are quick to respond to the insulting charges
made by those who want to fight on forever without regard to casualties.
Proponents of the war do not hesitate to challenge the manhood
critics, accusing them of wanting to cut and run.
Some war supporters ducked military service themselves while
fought and died, only adding to the anger of those who have seen battle
and now question our campaign in Iraq.
2006 Ron Paul 12:41
When people see a $600 million embassy being built in
Baghdad, while funding for services here in the United States is hard
they become angry.
understand why the money is being spent, especially when they are told
government that we have no intention of remaining permanently in Iraq.
2006 Ron Paul 12:42
The bickering and anger will not subside soon, since
victory in Iraq is not on the horizon and a change in policy is not
2006 Ron Paul 12:43
The neoconservative instigators of the war are angry at
everyone: at the people who want to get out of Iraq; and especially at
prosecuting the war for not bombing more aggressively, sending in more
expanding the war into Iran.
2006 Ron Paul 12:44
As our country becomes poorer due to the cost of the war,
anger surely will escalate. Much of it will be justified.
2006 Ron Paul 12:45
It seems bizarre that it’s so unthinkable to change
course if the current policy is failing.
leaders are like a physician who makes a wrong diagnosis and prescribes
wrong medicine, but because of his ego can’t tell the patient he made a
Instead he hopes the
patient will get better on his own.
instead of improving, the patient gets worse from the medication
This would be abhorrent
behavior in medicine, but tragically it is commonplace in politics.
2006 Ron Paul 12:46
If the truth is admitted, it would appear that the lives
lost and the money spent have been in vain.
Instead, more casualties must be sustained to prove a false
premise. What a tragedy! If the truth is admitted, imagine
the anger of all the families that
already have suffered such a burden.
burden is softened when the families and the wounded are told their
sacrifice was worthy, and required to preserve our freedoms and our
2006 Ron Paul 12:47
But no one is allowed to ask the obvious.
How have the 2,500 plus deaths, and the 18,500 wounded, made us
What in the world does Iraq
have to do with protecting our civil liberties here at home?
What national security threat prompted America’s first
How does our unilateral
enforcement of UN resolutions enhance our freedoms?
2006 Ron Paul 12:48
These questions aren’t permitted.
They are not politically correct.
agree that the truth hurts, and these questions are terribly
hurtful to the families that have suffered so much.
What a horrible thought it would be to find out the cause for
which we fight is not quite so noble.
2006 Ron Paul 12:49
I don’t believe those who hide from the truth and refuse
to face the reality of the war do so deliberately.
The pain is too great. Deep down, psychologically, many are
incapable of admitting such a costly and emotionally damaging error.
They instead become even greater and more determined supporters
2006 Ron Paul 12:50
I would concede that there are some — especially the
die-hard neoconservatives, who believe it is our moral duty to spread
goodness through force and remake the Middle East — who neither suffer
nor are bothered by the casualties.
continue to argue for more war without remorse, as long as they
not have to fight. Criticism is reserved for the wimps who want to “cut
2006 Ron Paul 12:51
Due to the psychological need to persist with the failed policy, the war
proponents must remain in denial of many facts staring them in the face.
2006 Ron Paul 12:52
They refuse to accept that the real reason for our invasion
and occupation of Iraq was not related to terrorism.
2006 Ron Paul 12:53
They deny that our military is weaker as a consequence of
2006 Ron Paul 12:54
They won’t admit that our invasion has served the interests of Osama Bin Laden.
continue to blame our image problems around the world on a few bad
2006 Ron Paul 12:55
They won’t admit that our invasion has served the interests of Iran’s radical regime.
2006 Ron Paul 12:56
The cost in lives lost and dollars spent is glossed over,
and the deficit spirals up without concern.
2006 Ron Paul 12:57
They ridicule those who point out that our relationships
with our allies have been significantly damaged.
2006 Ron Paul 12:58
We have provided a tremendous incentive for Russia and
China, and others like Iran, to organize through the Shanghai
They entertain future
challenges to our plans to dominate South East Asia, the Middle East,
2006 Ron Paul 12:59
Radicalizing the Middle East will in the long term jeopardize Israel’s security, and increase the odds of this war
2006 Ron Paul 12:60
War supporters cannot see that for every Iraqi killed,
another family turns on us — regardless of who did the killing. We are
continue to be blamed for every wrong done in Iraq: all deaths,
problems, food shortages, and electricity outages.
2006 Ron Paul 12:61
As long as our political leaders persist in these denials,
the war won’t end. The problem is that this is the source of the anger,
because the American people are not in denial and want a change in
2006 Ron Paul 12:62
Policy changes in wartime are difficult, for it is almost
impossible for the administration to change course since so much
energy has been invested in the effort. That’s why Eisenhower ended the
War, and not Truman. That’s why Nixon ended the Vietnam War, and not
in the case of Vietnam the end was too slow and costly, as more then
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
convinced that many of our wars could be prevented by paying stricter
to the method whereby our troops are committed to battle.
I also am convinced that when Congress does not declare war,
2006 Ron Paul 12:63
The most important thing Congress can do to prevent
needless and foolish wars is for every member to take seriously his or
to obey the Constitution. Wars should be entered into only after great
deliberation and caution. Wars that are declared by Congress should
support of the people, and the goal should be a quick and successful
2006 Ron Paul 12:64
Our undeclared wars over the past 65 years have dragged on
without precise victories. We fight to spread American values, to
resolutions, and to slay supposed Hitlers.
We forget that we once spread American values by persuasion and
an example — not by bombs and preemptive invasions.
Nowhere in the Constitution are we permitted to go to war on
behalf of the United Nations at the sacrifice of our national
We repeatedly use military force against former allies, thugs we
empower—like Saddam Hussein and Osama bin Laden—even when they pose no
danger to us.
2006 Ron Paul 12:65
The 2002 resolution allowing the president to decide when
and if to invade Iraq is an embarrassment. The Constitution authorizes
Congress to declare war. Our refusal to declare war transferred power
president illegally, without a constitutional amendment. Congress did
a simple resolution, passed by majority vote. This means Congress
reneged on its
responsibility as a separate branch of government, and should be held
accountable for the bad policy in Iraq that the majority of Americans
upset about. Congress is every bit as much at fault as the president.
2006 Ron Paul 12:66
Constitutional questions aside, the American people should
have demanded more answers from their government before they supported
invasion and occupation of a foreign country.
2006 Ron Paul 12:67
Some of the strongest supporters of the war declare that we
are a Christian nation, yet use their religious beliefs to justify the
claim it is our Christian duty to remake the Middle East and attack the
infidels. Evidently I have been reading from a different Bible.
I remember something about “Blessed are the peacemakers.”
2006 Ron Paul 12:68
My beliefs aside, Christian teaching of nearly a thousand
years reinforces the concept of “The Just War Theory.” This Christian
emphasizes six criteria needed to justify Christian participation in
Briefly the six points are as follows:
War should be fought only in self
War should be undertaken only as a
A decision to enter war should be made
only by a legitimate authority;
All military responses must be
proportional to the threat;
There must be a reasonable chance of
A public declaration notifying all
parties concerned is required.
2006 Ron Paul 12:69
The war in Iraq fails to meet almost all of these requirements. This discrepancy has generated anger and division within
2006 Ron Paul 12:70
Some are angry because the war is being fought out of
Christian duty, yet does not have uniform support from all Christians.
Others are angry because they see Christianity as a religion as
forgiveness, not war and annihilation of enemies.
2006 Ron Paul 12:71
Constitutional and moral restraints on war should be
understandable when kings, dictators, and tyrants take their people
since it serves their selfish interests — and those sent to fight have
no say in
It is more difficult to
understand why democracies and democratic legislative bodies, which
have a say
over the issue of war, so readily submit to the executive branch of
The determined effort of the authors of our Constitution to
the power to declare war in the legislative branch has been ignored in
decades following WWII.
2006 Ron Paul 12:72
Many members have confided in me that they are quite
comfortable with this arrangement.
flatly do not expect, in this modern age, to formally declare war ever
Yet no one predicts there will be fewer wars fought.
It is instead assumed they will be ordered by the executive
branch or the
United Nations — a rather sad commentary.
2006 Ron Paul 12:73
What about the practical arguments against war, since no
one seems interested in exerting constitutional or moral restraints?
Why do we continue to fight prolonged, political wars when the
results are so bad?
Our undeclared wars
since 1945 have been very costly, to put
We have suffered over
one hundred thousand military deaths, and even more serious casualties.
Tens of thousands have suffered from serious war-related
Sadly, we as a nation express essentially no concern for the millions
civilian casualties in the countries where we fought.
2006 Ron Paul 12:74
The cost of war since 1945, and our military presence in
over 100 countries, exceeds two trillion dollars in today’s dollars.
in higher taxes, debt, and persistent inflation is immeasurable.
Likewise, the economic opportunities lost by diverting trillions
dollars into war is impossible to measure, but it is huge. Yet our
persist in picking fights with countries that pose no threat to us,
participate in true diplomacy to resolve differences. Congress over the
has never resisted the political pressures to send our troops abroad on
that defy imagination.
2006 Ron Paul 12:75
When the people object to a new adventure, the propaganda
machine goes into action to make sure critics are seen as unpatriotic
or even traitors.
2006 Ron Paul 12:76
The military-industrial complex we were warned about has
been transformed into a military-media-industrial-government complex
capable of silencing the dissenters and cheerleading for war.
It’s only after years of failure that people are able to
propaganda for war and pressure their representatives in Congress to
needless killing. Many times the economic costs of war stir people to
This time around the war might
be brought to a halt by our actual inability to pay the bills due to a
A dollar crisis will make
borrowing 2.5 billion dollars per day from foreign powers like China
virtually impossible, at least at affordable interest rates.
2006 Ron Paul 12:77
That’s when we will be forced to reassess the spending
spree, both at home and abroad.
2006 Ron Paul 12:78
The solution to this mess is not complicated; but the
changes needed are nearly impossible for political reasons. Sound free
economics, sound money, and a sensible foreign policy would all result
strict adherence to the Constitution.
the people desired it, and Congress was filled with responsible
smooth although challenging transition could be achieved.
Since this is unlikely, we can only hope that the rule of law
goal of liberty can be reestablished without chaos.
2006 Ron Paul 12:79
We must move quickly toward a more traditional American
foreign policy of peace, friendship, and trade with all nations;
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
from the unworkable and unforgiving task of nation building.
We must reject the notion that our military should be used to
natural resources, private investments, or serve the interest of any
government or the United Nations. Our military should be designed for
purpose: defending our national security.
time to come home now, before financial conditions or military weakness
2006 Ron Paul 12:80
The major obstacle to a sensible foreign policy is the
fiction about what patriotism means. Today patriotism has come to mean
support for the government and its policies. In earlier times
having the willingness and courage to challenge government policies
of popular perceptions.
2006 Ron Paul 12:81
Today we constantly hear innuendos and direct insults aimed
at those who dare to challenge current foreign policy, no matter how
policy may be.
I would suggest it
takes more courage to admit the truth, to admit mistakes, than to
as unpatriotic for disagreeing with the war in Iraq.
2006 Ron Paul 12:82
Remember, the original American patriots challenged the
abuses of King George, and wrote and carried out the Declaration of
2006 Ron Paul 12:83
Yes Mr. Speaker, there is a lot of anger in this country.
Much of it is justified; some of it is totally unnecessary and
The only thing that
can lessen this anger is an informed public, a better understanding of
principles, a rejection of foreign intervention, and a strict adherence
constitutional rule of law.
will be difficult to achieve, but it’s not impossible and well worth
2006 Ron Paul Chapter 13
RON PAUL OF TEXAS
Before the U.S. House of Representatives
September 7, 2006
Big Government Solutions Dont Work/ The Law of Opposites
2006 Ron Paul 13:1
Politicians throughout history have tried to solve every problem
conceivable to man, always failing to recognize that many of the
face result from previous so-called political solutions.
Government cannot be the answer to every human ill.
Continuing to view more government as the solution to problems
make matters worse.
2006 Ron Paul 13:2
Not too long ago, I spoke on this floor about why I believe
Americans are so angry in spite of rosy government economic reports.
The majority of Americans are angry, disgusted, and frustrated
little is being done in Congress to solve their problems.
The fact is a majority of American citizens expect the federal
to provide for every need, without considering whether government
economic problems in the first place.
certainly is an incentive for politicians to embrace the role of
problem solvers, since nobody asks first whether they, the politicians
themselves, are at fault.
2006 Ron Paul 13:3
At home I’m frequently asked about my frustration with
Congress, since so many reform proposals go unheeded.
I jokingly reply, “No, I’m never frustrated, because I
have such low expectations.”
the American people have higher expectations, and without forthcoming
are beyond frustrated with their government.
2006 Ron Paul 13:4
If solutions to America’s problems won’t be found in
the frequent clamor for more government, it’s still up to Congress to
how our problems develop — and how solutions can be found in an
liberty, private property, and a free market order.
It’s up to us to demand radical change from our failed
policy of foreign military interventionism.
Robotic responses to the clichés of big government
intervention in our
lives are unbecoming to members who were elected to offer ideas and
We must challenge the status quo of our economic and political
2006 Ron Paul 13:5
Many things have contributed to the mess we’re in.
Bureaucratic management can never compete with the free market
Central economic planning
Just look at the
failed systems of the 20
Welfarism is an example of central economic planning.
Paper money, money created out of thin air to accommodate
government deficits, is not only silly, it’s unconstitutional.
No matter how hard the big spenders try to convince us
deficits do matter.
the deficit through higher taxes won’t solve anything.
2006 Ron Paul 13:6
Nothing will change in Washington until it’s recognized
that the ultimate driving force behind most politicians is obtaining
And money from special
interests drives the political process.
and power are important only because the government wields power not
constitutional government would not tempt special interests to buy the
politicians who wield power.
whole process feeds on itself.
is rewarded by ignoring constitutional restraints, while expanding and
complicating the entire bureaucratic state.
2006 Ron Paul 13:7
Even when it’s recognized that we’re traveling down the
wrong path, the lack of political courage and the desire for reelection
in ongoing support for the pork-barrel system that serves special
A safe middle ground, a don’t-rock-the-boat attitude, too often
rewarded in Washington, while meaningful solutions tend to offend those
in charge of the gigantic PAC/lobbyist empire that calls the shots in
Most members are
rewarded by reelection for accommodating and knowing how to work the
2006 Ron Paul 13:8
Though there’s little difference between the two parties,
the partisan fights are real.
of debates about philosophy, the partisan battles are about who will
True policy debates are
rare; power struggles are real and ruthless.
And yet we all know that power corrupts.
2006 Ron Paul 13:9
Both parties agree on monetary, fiscal, foreign and
neither party has much concern for civil liberties.
Both parties are split over trade, with mixed debates between
outright protectionists and those who endorse government-managed trade
agreements that masquerade as “free trade.”
It’s virtually impossible to find anyone who supports hands-off
trade, defended by the moral right of all citizens to spend their money
see fit, without being subject any special interest.
2006 Ron Paul 13:10
The big government nanny-state is based on the assumption
that free markets can’t provide the maximum good for the largest number
It assumes people are not
smart or responsible enough to take care of themselves, and thus their
must be filled through the government’s forcible redistribution of
Our system of intervention assumes that politicians and
superior knowledge, and are endowed with certain talents that produce
don’t seem to hold much water, of course, when we look at agencies like
Still, we expect the government to manage monetary and economic
the medical system, and the educational system, and then wonder why we
problems with the cost and efficiency of all these programs.
2006 Ron Paul 13:11
On top of this, the daily operation of Congress reflects
the power of special interests, not the will of the people- regardless
party is in power.
2006 Ron Paul 13:12
Critically important legislation comes up for votes late in
the evening, leaving members little chance to read or study the bills.
Key changes are buried in conference reports, often containing
legislation not even mentioned in either the House or Senate versions.
2006 Ron Paul 13:13
Conferences were meant to compromise two different positions in the House and Senate bills — not to slip in new material
not been mentioned in either bill.
2006 Ron Paul 13:14
Congress spends hundreds of billions of dollars in “emergency” supplemental bills to avoid the budgetary rules meant to
down the deficit.
money is appropriated and attached to emergency relief funds, making it
difficult for politicians to resist.
2006 Ron Paul 13:15
The principle of the pork barrel is alive and well, and it
shows how huge appropriations are passed easily with supporters of the
getting their share for their district.
2006 Ron Paul 13:16
Huge omnibus spending bills, introduced at the end of the
legislative year, are passed without scrutiny.
No one individual knows exactly what is in the bill.
2006 Ron Paul 13:17
In the process, legitimate needs and constitutional
responsibilities are frequently ignored.
for private property rights is ignored.
in the free market is lost or misunderstood.
Our tradition of self-reliance is mocked as archaic.
2006 Ron Paul 13:18
Lack of real choice in economic and personal decisions is
It seems that too
often the only choice we’re given is between prohibitions or subsidies.
Never is it said, “Let the people decide on things like stem
research or alternative medical treatments.”
2006 Ron Paul 13:19
Nearly everyone endorses exorbitant taxation; the only
debate is about who should pay—either tax the producers and the rich or
the workers and the poor through inflation and outsourcing jobs.
2006 Ron Paul 13:20
Both politicians and the media place blame on everything
except bad policy authored by Congress.
are needed, since there’s so much blame to go around and so little
understanding as to why we’re in such a mess.
2006 Ron Paul 13:21
In 1920s and 1930s Europe, as the financial system collapsed and inflation raged, it was commonplace to blame the Jews.
Today in America the blame is spread out:
Illegal immigrants, Muslims, big business (whether they get
from the government or not), price gouging oil companies (regardless of
circumstances), and labor unions.
of economics and denial of the political power system that prevails in
it possible for Congress to shift blame.
2006 Ron Paul 13:22
Since we’re not on the verge of mending our ways, the
problems will worsen and the blame games will get much more vicious.
Shortchanging a large segment of our society surely will breed
that could get out of control.
is a good reason for us to cast aside politics as usual and start
reliable answers to our problems.
2006 Ron Paul 13:23
Politics as usual is aided by the complicity of the media.
Economic ignorance, bleeding heart emotionalism, and populist
pervade our major networks and cable channels.
This is especially noticeable when the establishment seeks to
people behind an illegal, unwise war.
propaganda is well-coordinated by the
This collusion is worse than when
state- owned media do the
In countries where
everyone knows the media produces government propaganda, people remain
what they hear.
In the United
States the media are considered free and independent, thus the
accepted with less questioning.
2006 Ron Paul 13:24
One of the major reasons we’ve drifted from the Founders
vision of liberty in the Constitution was the division of the concept
into two parts.
Instead of freedom
being applied equally to social and economic transactions, it has come
thought of as two different concepts.
in Congress now protect economic liberty and market choices, but ignore
liberty and private choices.
defend personal liberty, but concede the realm of property and economic
transactions to government control.
2006 Ron Paul 13:25
There should be no distinction between commercial speech
and political speech.
consistent moral defense of true liberty, the continued erosion of
property rights is inevitable.
careless disregard for liberty, our traditions, and the Constitution
brought us disaster, with a foreign policy of military interventionism
by the leadership of both parties.
some day this will be radically changed.
2006 Ron Paul 13:26
The Law of Opposites
2006 Ron Paul 13:27
Everyone is aware of the Law of Unintended Consequences.
Most members of Congress understand that government actions can
unintended consequences, yet few quit voting for
government “solutions” — always hoping there won’t be any particular unintended consequences
They keep hoping there will be less harmful complications from
“solution” that they currently support.
Free market economics teaches that for every government action
an economic problem, two new ones are created.
The same unwanted results occur with foreign policy meddling.
2006 Ron Paul 13:28
The Law of Opposites is just a variation of the Law of
attempt to achieve a certain goal — like, “make the world safe for
democracy,” a grandiose scheme of World War I — one can be sure the
become less safe and less democratic regardless of the motivation.
2006 Ron Paul 13:29
The 1st World War was sold to the American people as the
war to end all wars.
history shows it was the war that caused the 20
most war-torn century in history.
entry into World War I helped lead us into World War II, the Cold War,
Korean War, and the Vietnam War. Even our current crisis in the Middle
be traced to the great wars of the 20
Though tens of millions of deaths are associated with these
haven’t learned a thing.
2006 Ron Paul 13:30
We went into Korea by direction of the United Nations, not
a congressional declaration of war, to unify Korea.
And yet that war ensured that Korea remains divided to this
day; our troops are still there.
Korea today is much more willing to reconcile differences with North
yet we obstruct such efforts.
doesn’t make much sense.
2006 Ron Paul 13:31
We went into Vietnam and involved ourselves unnecessarily
in a civil war to bring peace and harmony to that country.
We lost 60,000 troops and spent hundreds of billions of dollars,
failed to achieve victory.
since losing in Vietnam we now have a better
relationship with them than ever.
now trade, invest, travel, and communicate with a unified,
country that is catching on rather quickly to capitalist ways.
This policy, not military confrontation, is exactly what the
permits and the Founders encouraged in our relationship with others.
2006 Ron Paul 13:32
This policy should apply to both friends and perceived
Diplomacy and trade can
accomplish goals that military intervention cannot — and they certainly
2006 Ron Paul 13:33
In both instances — Korea and Vietnam — neither country
attacked us, and neither country posed a threat to our security. In
did we declare war.
All of the
fighting and killing was based on lies, miscalculations, and the
abide by constitutional restraint with regards to war.
2006 Ron Paul 13:34
When goals are couched in terms of humanitarianism, sincere
or not, the results are inevitably bad.
interventionism requires the use of force.
First, the funds needed to pursue a particular policy require
be forcibly imposed on the American people, either directly or
Picking sides in
foreign countries only increases the chances of antagonism toward us.
Too often foreign economic and military support means
poor in America and enhancing the rich ruling classes in poor countries.
When sanctions are used against one undesirable regime, it
resistance to the very regimes we’re trying to undermine.
Forty years of sanctions against Castro have left him in power,
fomented continued hatred and blame from the Cuban people directed at
Trade with Cuba likely would have accomplished the opposite, as
it has in
Vietnam, China, and even in the Eastern Block nations of the old Soviet
2006 Ron Paul 13:35
We spend billions of dollars in Afghanistan and Colombia to
curtail drug production.
evidence exists that it helps.
fact, drug production and corruption have increased.
We close our eyes to it because the reasons we’re in Colombia
Afghanistan are denied.
2006 Ron Paul 13:36
Obviously, we are not putting forth the full effort
required to capture Osama bin Laden.
our occupation of Afghanistan further inflames the Muslim radicals that
age with their fierce resistance to the Soviet occupation of a Muslim
Our occupation merely serves as a recruiting device for al
has promised retaliation for our presence in their country.
We learned nothing after first allying ourselves with Osama bin
when he applied this same logic toward the Soviets.
The net result of our invasion and occupation of Afghanistan has
miss capturing bin Laden, assist al Qaeda’s recruitment, stimulate more
production, lose hundreds of American lives, and allow spending
American taxpayer dollars with no end in sight.
2006 Ron Paul 13:37
Bankruptcy seems to be the only way we will reconsider the
foolishness of this type of occupation.
time for us to wake up.
2006 Ron Paul 13:38
Our policy toward
the past 50 years is every bit as disconcerting.
It makes no sense unless one concedes that our government is
by those who seek physical control over the vast oil riches of the
and egged on by Israel’s desires.
2006 Ron Paul 13:39
We have attacked the sovereignty of Iran on two occasions,
and are in the process of threatening her for the third time.
In 1953, the U.S. and British overthrew the democratically
Mohammed Mossadegh and installed the Shah.
His brutal regime lasted over 25 years, and ended with the
taking power in 1979.
for the Shah incited the radicalization of the Shiite Clerics in Iran,
in the hostage takeover.
2006 Ron Paul 13:40
In the 1980s we provided weapons — including poisonous
gas — to Saddam Hussein as we supported his invasion of Iran.
These events are not forgotten by the Iranians, who see us once
looking for another confrontation with them.
We insist that the UN ignore the guarantees under the NPT that
countries like Iran the right to enrich uranium.
The pressure on the UN and the threats we cast toward Iran are
harmful to the cause of peace.
are entirely unnecessary and serve no useful purpose.
Our policy toward Iran is much more likely to result in her
nuclear weapon than prevent it.
2006 Ron Paul 13:41
Our own effort at democratizing Iran has resulted instead
in radicalizing a population whose instincts are to like Americans and
Our meddling these
past 50 years has only served to alienate and unify the entire country
2006 Ron Paul 13:42
Though our officials only see Iran as an enemy, as does
Israel, our policies in the Middle East these past 5 years have done
strengthen Iran’s political and military position in the region.
We have totally ignored serious overtures by the Iranians to
with us before hostilities broke out in Iraq in 2003.
Both immediately after 9/11, and especially at the time of our
of Iraq in 2003, Iran, partially out of fear and realism, honestly
reconciliation and offered to help the U.S. in its battle against al
They were rebuked outright.
Iran is negotiating from a much stronger position, principally as a
our overall Middle East policy.
2006 Ron Paul 13:43
We accommodated Iran by severely weakening the Taliban in
Afghanistan on Iran’s eastern borders.
Iran’s western borders we helped the Iranians by eliminating their arch
Our invasion in
Iraq and the resulting chaos have inadvertently delivered up a large
Iraq to the Iranians, as the majority Shiites in Iraq ally themselves
2006 Ron Paul 13:44
The U.S./Israeli plan to hit Hezbollah in Lebanon before
taking on Iran militarily has totally backfired.
Hezbollah, an ally of Iran, has been made stronger than
ever with the military failure to rout Hezbollah from southern Lebanon.
Before the U.S./Israeli invasion of Lebanon, Hezbollah was
20% of the population, now it’s revered by 80%.
A democratic election in Lebanon cannot now serve the interest
U.S. or Israel.
It would only
support the cause of radical clerics in Iran.
2006 Ron Paul 13:45
Demanding an election in Palestinian Gaza resulted in
enhancing the power of Hamas.
U.S. and Israel promptly rejected the results.
So much for our support for democratically elected government.
2006 Ron Paul 13:46
Our support for dictatorial Arab leaders is a thorn in the
side of the large Muslim population in the Middle East, and one of the
reasons Osama bin Laden declared war against us.
talk of democracy and self-determination, but the masses
of people in the Middle East see through our hypocrisy when we support
secular dictators in Saudi Arabia, Egypt, and Jordan and at one time,
2006 Ron Paul 13:47
In the late 1970s and the 1980s the CIA spent over $4
billion on a program called “Operation Cyclone.”
was our contribution to setting up training schools in
Pakistan and elsewhere, including the U.S. itself, to teach “sabotage
The purpose was to use
these individuals in fighting our enemies in the Middle East, including
But as one could predict,
this effort has come back to haunt us, as our radical ally Osama bin
turned his fury against us after routing the Soviets.
It is estimated that over 12,000 fighters were trained in the
set up in Afghanistan.
taught how to make bombs, carry out sabotage, and use guerilla war
And now we’re on the receiving end of this U.S. financed
program — hardly a good investment.
2006 Ron Paul 13:48
It’s difficult to understand why our policy makers aren’t more cautious in their efforts to police the world, once it’s
realized how unsuccessful we have been.
seems they always hope that next time our efforts won’t come flying
2006 Ron Paul 13:49
Our failed efforts in Iraq continue to drain our resources,
costing us dearly both in lives lost and dollars spent.
And there’s no end in sight.
consideration is given for rejecting our obsession with a worldwide
presence, which rarely if ever directly enhances our security.
A much stronger case can be made that our policy of protecting
worldwide interests actually does the opposite by making us weaker,
our allies, inciting more hatred, and provoking our enemies.
The more we have interfered in the Middle East in the last 50
greater the danger has become for an attack on us.
The notion that Arab/Muslim radicals are motivated to attack us
of our freedoms and prosperity, and not our unwelcome presence in their
countries, is dangerous and silly.
2006 Ron Paul 13:50
We were told we needed to go into Iraq because our old
ally, Saddam Hussein, had weapons of mass destruction — yet no weapons
destruction were found.
2006 Ron Paul 13:51
We were told we needed to occupy Iraq to remove al Qaeda,
yet al Qaeda was nowhere to be found and now it’s admitted it had
do with 9/11.
Yet today, Iraq is
infested with al Qaeda — achieving exactly the opposite of what we
sought to do.
2006 Ron Paul 13:52
We were told that we needed to secure “our oil” to protect our economy and to pay for our invasion and occupation.
Instead, the opposite has resulted:
Oil production is down, oil prices are up, and no oil profits
used to pay the bills.
2006 Ron Paul 13:53
We were told that a regime change in Iraq would help us in
our long-time fight with Iran, yet everything we have done in Iraq has
the interests of Iran.
2006 Ron Paul 13:54
We’re being told in a threatening and intimidating fashion that,
“If America were to
pull out before Iraq could defend itself, the consequences would be
predictable and absolutely disastrous.”
convinced that the Law of Opposites could well apply here.
Going into Iraq we know produced exactly the opposite results of
Leaving also likely will
have results opposite of those we’re being frightened with.
Certainly leaving Vietnam at the height of the Cold War did not
the disaster predicted by the advocates of the Domino Theory — an
Communist takeover of the entire Far East.
2006 Ron Paul 13:55
We’re constantly being told that we cannot abandon Iraq
and we are obligated to stay forever if necessary.
This admonition is similar to a rallying cry from a determined
missionary bent on proselytizing to the world with a particular
Conceding that leaving may
not be a panacea for Iraqi tranquility, this assumption ignores two
One, our preemptive war ignited the Iraqi civil war, and two,
the Iraqi people is not the question.
real question is whether or not we should abandon the American people
them to pay for an undeclared war with huge economic and human costs,
placing our national security in greater jeopardy by ignoring our
serious problems here at home.
2006 Ron Paul 13:56
In our attempt to make Iraq a better place, we did great
harm to Iraqi Christians.
our invasion in 2003 there were approximately 1.2 million living in
Since then over half have been forced to leave due to
Many escaped to Syria.
With the neo-cons wanting to attack Syria, how long will they be
The answer to the
“Aren’t we better off
without Saddam Hussein,” is not an automatic yes for Iraqi Christians.
2006 Ron Paul 13:57
We’ve been told for decades that our policy of militarism
and preemption in the Middle East is designed to provide security for
Yet a very strong case can be made that Israel is more
ever, with moderate Muslims being challenged by a growing majority of
As the invincibility of the
American and Israeli military
becomes common knowledge, Israel’s security is diminished and world
turns against her, especially after the failed efforts to remove the
2006 Ron Paul 13:58
We were told that attacking and eliminating Hezbollah was
required to diminish the Iranian threat against Israel.
The results again were the opposite.
This failed effort has only emboldened Iran.
2006 Ron Paul 13:59
The lack of success of conventional warfare — the U.S. in
Vietnam, the Soviets in Afghanistan, the U.S. in Iraq and Afghanistan,
Lebanon — should awaken our policy makers to our failure in war and
Yet all we propose are bigger bombs and more military force for
occupation, rather than working to understand an entirely new
2006 Ron Paul 13:60
Many reasons are given for our preemptive wars and military
approach for spreading the American message of freedom and prosperity,
an obvious impossibility.
interests are always cited for justification, and it’s inferred that
do not support our militancy are unpatriotic.
Yet the opposite is actually the case: Wise resistance to one’s
government doing bad things requires a love of country, devotion to
and respect for the Rule of Law.
2006 Ron Paul 13:61
In attempting to build an artificial and unwelcome Iraqi
military, the harder we try, the more money we spend, and the more
lose, the stronger the real armies of Iraq become:
the Sunni insurgency, the Bardr Brigade, the Sardr Mahdi
Army, and the Kurdish militia.
2006 Ron Paul 13:62
The Kurds have already taken a bold step in this direction
by hoisting a Kurdish flag and removing the Iraqi flag — a virtual
forces are winning out over outside political forces.
2006 Ron Paul 13:63
We’re looking in all the wrong places for an Iraqi army
to bring stability to that country.
people have spoken and these troops that represent large segments of
population need no training.
not a lack of training, weapons, or money that hinders our efforts to
new superior Iraqi military.
the lack of inspiration and support for such an endeavor that is
Developing borders and separating the various factions, which
explicitly prohibits, is the basic flaw in our plan for a forced,
western-style democracy for Iraq.
self-determination for different regions is the only way to erase the
nature of Iraq — an Iraq designed by western outsiders nearly 80 years
It’s our obsession with control of the oil in the region, and imposing
will on the Middle East, and accommodating the demands of Israel that
And the American people
are finally getting sick and tired of their sacrifices.
It’s time to stop the bleeding.
2006 Ron Paul 13:64
Instead we continue to hear the constant agitation for us
to confront the Iranians with military action.
Reasons to attack Iran make no more sense than our foolish
and imaginary dangers are used to frighten the American people into
attack on Iran.
First it may only
be sanctions, but later it will be bombs and possible ground troops if
neo-cons have their way.
the chicken-hawk neo-conservative advisors to the administration are
critical of our current policy because it’s not aggressive enough.
They want more troops in Iraq, they want to attack Syria and
escalate the conflict in Lebanon.
2006 Ron Paul 13:65
We have a troop shortage, morale is low, and our military
equipment is in bad shape, yet the neo-cons would not hesitate to
inflate, and reinstate the draft to continue their grandiose schemes in
the entire Middle East.
victory of this sort is not available, no matter what effort is made or
money is spent.
2006 Ron Paul 13:66
Logic would tell us there’s no way we will contemplate
taking on Iran at this time.
logic did not prevail with our Iraq policy, and look at the mess we
Besides, both sides, the neo-con extremists and the radical
are driven by religious fervor. Both are convinced that God is on their
side — a
strange assumption since theologically it’s the same God.
2006 Ron Paul 13:67
Both sides of the war in the Middle East are driven by
religious beliefs of omnipotence.
sides endorse an eschatological theory regarding the forthcoming end of
Both anticipate the return of God personified and as promised to
Both sides are driven by a conviction of perfect knowledge
Creator, and though we supposedly worship the same God, each sees the
as completely wrong and blasphemous.
religiously driven Middle East war condemns tolerance of the other’s
Advocates of restraint and the use of diplomacy are ridiculed as
appeasers, and equivalent to supporting Nazism and considered
2006 Ron Paul 13:68
I find it amazing that we in this country seem determined
to completely separate religious expression and the state, even to the
of the 1
we can say little about how Christian and Jewish religious beliefs
influences our policies in the Middle East.
It should be the other way around.
expression, according to the 1
Amendment, cannot be
anywhere by Congress or the federal courts.
But deeply held theological beliefs should never dictate our
Being falsely accused of
anti-Semitism and being a supporter of radical fascism is not an
position for any politician.
realize it’s best to be quiet and support our Middle East involvement.
2006 Ron Paul 13:69
Believing we have perfect knowledge of God’s will, and
believing government can manage our lives and world affairs, have
caused a great
deal of problems for man over the ages.
these two elements are combined they become especially dangerous.
Liberty, by contrast, removes power from government and allows
freedom of choice in pursuing one’s religious beliefs.
The only solution to controlling political violence is to
use of force to pursue religious goals and reject government authority
the behavior of individuals.
2006 Ron Paul 13:70
Both are enamored with the so-called benefit that chaos
offers to those promoting revolutionary changes.
sides in situations like this always underestimate the
determination of the opposition, and ignore the law of unintended
They never consider that these policies might backfire.
2006 Ron Paul 13:71
Declaring war against Islamic fascism or terrorism is vague
This enemy we’re
fighting at the expense of our own liberties is purposely indefinable.
Therefore the government will exercise wartime powers
We’ve been fully warned to expect a long, long war.
2006 Ron Paul 13:72
The Islamic fascists are almost impossible to identify and
cannot be targeted by our conventional weapons.
who threaten us essentially are unarmed and stateless.
Comparing them to Nazi Germany, a huge military power, is
Labeling them as a unified force is a mistake.
It’s critical that we figure out why a growing number of Muslims
radicalized to the point of committing suicide terrorism against us.
Our presence in their countries represents a failed policy that
less safe, not more.
2006 Ron Paul 13:73
These guerilla warriors do not threaten us with tanks,
gunboats, fighter planes, missiles, or nuclear weapons, nor do they
history of aggression against the United States.
enemy’s credibility depends instead on the popular goal
of ending our occupation of their country.
2006 Ron Paul 13:74
We must not forget that the 9/11 terrorists came principally from Saudi Arabia,
not Iraq, Iran, Lebanon, or Syria.
has never in modern times invaded her neighbors, yet we
worry obsessively that she may develop a nuclear weapon someday.
Never mind that a radicalized Pakistan has nuclear weapons; our
Musharraf won’t lift a finger against Bin Laden, who most likely is
Our only defense against
this emerging nuclear threat has been to use, and threaten to use,
do not meet the needs of this new and different enemy.
2006 Ron Paul 13:75
Since resistance against the Iraq war is building here at
home, hopefully it won’t be too long before we abandon our grandiose
rule the entire Middle East through intimidation and military
2006 Ron Paul 13:76
Economic law eventually will prevail.
Runaway military and entitlement spending cannot be sustained.
We can tax the private economy only so much, and borrowing from
foreigners is limited by the total foreign debt and our current account
It will be difficult to continue
this spending spree without
significantly higher interest rates and further devaluation of the
This all spells more trouble for our economy and certainly
Our industrial base is
shattered and our borders remain open to those who exploit our reeling
2006 Ron Paul 13:77
Economic realities will prevail, regardless of the enthusiasm by most members of Congress for a continued expansion of the
state and support for our dangerously aggressive foreign policy.
The welfare/warfare state will come to an end when the dollar
the money simply runs out.
2006 Ron Paul 13:78
The overriding goal should then be to rescue our constitutional liberties, which have been steadily eroded by those who
that sacrificing civil liberties is required and legitimate in times of
war — even the undeclared and vague war we’re currently fighting.
2006 Ron Paul 13:79
A real solution to our problems will require a better
understanding of, and greater dedication to, free markets and private
It can’t be done without
restoring a sound, asset-backed currency.
we hope to restore any measure of constitutional government, we must
policy of policing the world and keeping troops in every corner of the
Our liberties and our prosperity depend on it.