2002 Ron Paul Chapter 1
Congressman Ron Paul
January 24, 2002
January 24, 2002, in the House of Representatives
The Case for Defending America
2002 Ron Paul 1:1
As we begin this new legislative
session, we
cannot avoid reflecting on this past year. All Americans will remember
the
moment and place when tragedy hit us on September 11
th
. We
also all
know that a good philosophy to follow is to turn adversity into
something
positive, if at all possible. Although we have suffered for years from
a flawed
foreign policy and were already in a recession before the attacks, the
severity
of these events has forced many of us to reassess our foreign and
domestic
policies. Hopefully, positive changes will come of this.
2002 Ron Paul 1:2
It is just as well that the economy was
already
in recession for six months prior to the September attacks. Otherwise,
the
temptation would have been too great to blame the attacks for the weak
economy
rather than look for the government policies responsible for the
recession.
Terrorist attacks alone, no matter how disruptive, could never be the
sole
source of a significant economic downturn.
2002 Ron Paul 1:3
A major debate over foreign policy has
naturally
resulted from this crisis. Dealing with the shortcomings of our
policies of the
past is essential. We were spending $40 billion a year on intelligence
gathering
that, we must admit, failed. This tells us a problem exists. There are
shortcomings with our $320 billion DOD budget that did not provide the
protection Americans expect.
2002 Ron Paul 1:4
Obviously, a proper response to the
terrorists
requires sound judgment in order to prevent further suffering of the
innocent or
foolishly bring about a worldwide conflict.
2002 Ron Paul 1:5
One of the key responsibilities of the
federal
government in providing for national defense is protection of liberty
here at
home. Unwisely responding to the attacks could undermine our national
defense
while threatening our liberties. What we have done so far since last
September
is not very reassuring. What we do here in the Congress in the coming
months may
well determine the survival of our republic. Fear and insecurity must
not drive
our policies. Sacrificing personal liberty should never be an option.
2002 Ron Paul 1:6
Involving ourselves in every complex
conflict
around the globe hardly enhances our national security. The special
interests
that were already lined up at the public trough should not be permitted
to use
the ongoing crisis as an opportunity to demand even more benefits. Let
us all
remember why the U.S. Congress was established, what our
responsibilities are
and what our oath of office means.
2002 Ron Paul 1:7
Its been reported that since the 9-11
attacks,
big-government answers have gained in popularity, and people, fearful
for their
security, have looked to the federal government for help. Polls
indicate that
acceptance of government solutions to our problems is at its highest
level in
decades. That may be true to some degree, or it may merely reflect the
sentiments of the moment, or even the way the questions were asked.
Only time
will tell. Since the welfare state is no more viable in the long run
than a
communist or fascist state, most Americans will eventually realize the
fallacy
of depending on the government for economic security and know that
personal
liberty should not be sacrificed out of fear.
2002 Ron Paul 1:8
Even with this massive rush to embrace
all the
bailouts offered up by Washington, a growing number of Americans are
rightfully
offended by the enormity of it all and annoyed that powerful and
wealthy special
interests seem to be getting the bulk of the benefits. In one area,
though, a
very healthy reaction has occurred. Almost all Americans- especially
those still
flying commercial airlines- now know that they have a personal
responsibility to
react to any threat on any flight. Passengers have responded
magnificently. Most
people recognize that armed citizens best protect our homes, because it
is
impossible for the police to be everywhere and prevent crimes from
happening. A
homeowners ability to defend himself serves as a strong deterrent.
2002 Ron Paul 1:9
Our governments ridiculous policy
regarding
airline safety and prohibiting guns on airplanes had indoctrinated us
all-
pilots, passengers and airline owners- to believe we should never
resist
hijackers. This set up the perfect conditions for terrorists to take
over
domestic flights, just as they did on September 11
th
.
2002 Ron Paul 1:10
The people of this country now realize,
more
than ever, their own responsibility for personal self-defense, using
guns if
necessary. The anti-gun fanatics have been very quiet since 9-11, and
more
Americans are ready to assume responsibility for their own safety than
ever
before. This is all good.
2002 Ron Paul 1:11
But sadly, the Congress went in the
opposite
direction in providing safety on commercial flights. Pilots are not
carrying
guns, and security has been socialized- in spite of the fact that
security
procedures authorized by the FAA prior to 9-11 were not compromised.
The problem
did not come from
failure to follow
FAA rules; the problem
resulted from
precisely
following FAA rules. No wonder so many Americans are wisely assuming
theyd
better be ready to protect themselves when necessary!
2002 Ron Paul 1:12
This attitude is healthy, practical and
legal
under the Constitution. Unfortunately, too many people who have come to
this
conclusion still cling to the notion that economic security is a
responsibility
of the U.S. government. Thats the reason we have a $2 trillion annual
budget
and a growing $6 trillion national debt.
2002 Ron Paul 1:13
Another positive result of last years
attacks
was the uniting of many Americans in an effort to deal with the
problems the
country faced. This applies more to the people who reflect true
patriotism than
it does to some of the politicians and special interests who took
advantage of
the situation. If this renewed energy and sense of unity could be
channeled
correctly, much good could come of it. If misdirected, actual harm will
result.
2002 Ron Paul 1:14
I give less credit to the Washington
politicians
who sing the songs of patriotism, but use the crisis to pursue their
endless
personal goal to gain more political power. But the greatest
condemnation should
be directed toward the special-interest lobbyists who finance the
politicians in
order to secure their power, while using patriotism as a cover and the
crisis as
a golden opportunity. Indeed, those who are using the crisis to promote
their
own agenda are many.
2002 Ron Paul 1:15
There is no doubt, as many have pointed
out, our
country changed dramatically with the horror that hit us on 9-11. The
changes
obviously are a result of something other than the tragic loss of over
3,900
people. We kill that many people every month on our government
highways. We lost
60,000 young people in the Vietnam War, yet the sense of fear in our
country
then was not the same as it is today. The major difference is that last
years
attacks made us feel vulnerable, because it was clear that our federal
government had failed in its responsibility to provide defense against
such an
assault. And the anthrax scare certainly didnt help to diminish that
fear.
2002 Ron Paul 1:16
Giving up our civil liberties has made
us feel
even less safe from our own governments intrusion in our lives. The
two seem to
be in conflict. How can we be safer from outside threats while making
ourselves
more exposed to our own governments threat to our liberty?
2002 Ron Paul 1:17
The most significant and dangerous
result of
last years attacks has been the bold expansion of the federal police
state and
our enhanced international role as the worlds policeman.
2002 Ron Paul 1:18
Although most of the legislation
pushing the
enhanced domestic and international role for our government passed by
huge
majorities, Im convinced that the peoples support for much of it is
less
enthusiastic than Washington politicians believe. As time progresses,
the full
impact of Homeland Security, and the unintended consequences of our
growing
overseas commitments, will become apparent. And a large majority of
Americans
will appropriately ask, Why did the Congress do it?
2002 Ron Paul 1:19
Unless we precisely understand the
proper role
of government in a free society, our problems will not be solved
without
sacrificing liberty. The wonderful thing is that our problems can be
easily
solved when protecting individual liberty becomes our goal, rather than
the
erroneous assumption that solutions must always be in conflict with
liberty and
that sacrificing some liberty is to be expected during trying times.
This is not
necessary.
2002 Ron Paul 1:20
Our Attorney General established a
standard for
disloyalty to the U.S. government by claiming that those who talk of
lost
liberty serve to erode our national unity and give
ammunition to Americas enemies and only aid terrorists.
2002 Ron Paul 1:21
The dangerous assumption is that, in
the eyes of
our top law-enforcement official, perceived disloyalty or even
criticism of the
government is approximating an act of terrorism. The grand irony is
that this
criticism is being directed toward those who, heaven forbid, are
expressing
concern for losing our cherished liberties here at home. This, of
course, is
what the whole war on terrorism is supposed to be about- protecting
liberty, and
that includes the right of free expression.
2002 Ron Paul 1:22
Our government leaders have threatened
foreign
countries by claiming that if they are not with us, they are against
us, which leaves no room for the neutrality that has been practiced by
some nations for centuries. This position could easily result in
perpetual
conflicts with dozens of nations around the world.
2002 Ron Paul 1:23
Could it ever come to a point where
those who
dissent at home against our military operations overseas will be
considered too
sympathetic to the enemy? The Attorney Generals comments suggest just
that, and
it has happened here in our past. We indeed live in dangerous times. We
are
unable to guarantee protection from outside threats and may be
approaching a
time when our own government poses a threat to our liberties.
2002 Ron Paul 1:24
No matter how sincere and well
motivated, the
effort to fight terrorism and provide for homeland security, if ill
advised,
will result neither in vanquishing terrorism nor in preserving our
liberties. I
am fearful that, here in Washington, theres little understanding of
the real
cause of the terrorist attacks on us, little remembrance of the grand
purpose of
the American experiment with liberty, or even how our Constitution was
written
to strictly limit government officials in all that they do.
2002 Ron Paul 1:25
The military operation against the
Taliban has
gone well. The Taliban has been removed from power, and our government,
with the
help of the UN, is well along the way toward establishing a new Afghan
government. We werent supposed to be in the business of nation
building, but I
guess 9-11 changed all that. The one problem is that the actual number
of al-Qaida
members captured or killed is uncertain. Also the number of Taliban
officials
that had any direct contact or knowledge of the attacks on us is purely
speculative. Since this war is carried out in secrecy, well probably
not know
the details of what went on for years to come.
2002 Ron Paul 1:26
I wonder how many civilians have been
killed so
far. I know a lot of Members could care less, remembering innocent
American
civilians who were slaughtered in New York and Washington. But a policy
that
shows no concern for the innocent will magnify our problems rather than
lessen
them. The hard part to understand in all of this is that Saudi Arabia
probably
had more to do with these attacks than did Afghanistan.
2002 Ron Paul 1:27
But then again, who wants to offend our
oil
partners?
2002 Ron Paul 1:28
Our sterile approach to the bombing,
with
minimal loss of American life is to be commended, but it may generate
outrage
toward us by this lopsided killing of persons totally unaware of the
events of
September 11
th
.
2002 Ron Paul 1:29
Our President wisely has not been
anxious to
send in large numbers of occupying forces into Afghanistan. This also
guarantees
chaos among the warring tribal factions. The odds of a stable Afghan
government
evolving out of this mess are
remote
. The odds of our investing
large
sums of money to buy support for years to come are
great
.
2002 Ron Paul 1:30
Unfortunately, it has been seen only as
an
opportunity for Pakistan and India to resume their warring ways,
placing us in a
dangerous situation. This could easily get out of control, since China
will not
allow a clear-cut Indian victory over Pakistan. The danger of a nuclear
confrontation is real. Even the British have spoken sympathetically
about
Pakistans interests over India. The tragedy is that we have helped
both India
and Pakistan financially, and, therefore, the American taxpayer has
indirectly
contributed funds for the weapons on both sides. Our troops in this
region are
potential targets of either or both countries.
2002 Ron Paul 1:31
Fortunately, due to the many probable
repercussions, a swift attack on Iraq now seems less likely. Our
surrogate army,
organized by the Iraqi National Congress, is now known to be a charade,
prompting our administration to stop all funding of this organization.
Relying
on the Kurds to help remove Hussein defies logic, as the U.S.-funded
Turkish
army continues its war on the Kurds. There is just no coalition in the
Persian
Gulf to take on Iraq, and, fortunately, our Secretary of State knows it.
2002 Ron Paul 1:32
Our terrorist enemy is vague and
elusive. Our
plans to expand our current military operations into many other
countries are
fraught with great risks- risks of making our problems worse. Not
dealing with
the people actually responsible for the attacks and ignoring the root
causes of
the terrorism will needlessly perpetuate and expand a war that will do
nothing
to enhance the security and safety of the American people.
2002 Ron Paul 1:33
Since Iraq is now less likely to be
hit, it
looks like another poverty-ridden, rudderless nation, possibly Somalia,
will be
the next target. No good can come of this process. It will provide more
fodder
for the radicals claim that the war is about America against Islam.
Somalia
poses no threat to the United States, but bombing Somalia as we have
Afghanistan- and Iraq for 12 years- will only incite more hatred toward
the U.S.
and increase the odds of our someday getting hit again by some
frustrated,
vengeful, radicalized Muslim.
2002 Ron Paul 1:34
Our presence in the Persian Gulf is not
necessary to provide for Americas defense. Our presence in the region
makes all
Americans more vulnerable to attacks and defending America much more
difficult.
2002 Ron Paul 1:35
The real reason for our presence in the
Persian
Gulf, as well as our eagerness to assist in building a new Afghan
government
under UN authority, should be apparent to us all.
2002 Ron Paul 1:36
Stewart Eizenstat, Undersecretary of
Economics,
Business, and Agricultural Affairs for the previous administration,
succinctly
stated U.S. policy for Afghanistan, testifying before the Senate
Foreign
Relations Trade Subcommittee on October 13, 1997:
2002 Ron Paul 1:37
[One of] Five main foreign policy
interests in the Caspian region [is] continued support for U.S.
companies
[and] the least progress has been made in Afghanistan, where gas and
oil
pipeline proposals designed to carry central Asian energy to world
markets have
been delayed indefinitely pending establishment of a broad-based
multi-ethnic
government.
2002 Ron Paul 1:38
This was a rather blunt acknowledgment
of our
intentions.
2002 Ron Paul 1:39
It is apparent that our policy has not
changed
with this administration. Our new special envoy to Afghanistan, Zalmay
Khalilzad,
was at one time a lobbyist for the Taliban and worked for Unocal- the
American
oil company seeking rights to build oil and gas pipelines through
northern
Afghanistan. During his stint as a lobbyist, he urged approval of the
Taliban
and defended them in the U.S. press. He now, of course, sings a
different tune
with respect to the Taliban, but I am sure his views on the pipeline by
U.S.
companies have not changed.
2002 Ron Paul 1:40
Born in Afghanistan, Khalilzad is a
controversial figure, to say the least, due to his close relationship
with the
oil industry and previously with the Taliban. His appointment to the
National
Security Council very conveniently did not require confirmation by the
Senate.
Khalilzad also is a close ally of the Secretary of Defense, Paul
Wolfowitz, in
promoting early and swift military action against Iraq.
2002 Ron Paul 1:41
The point being, of course, that it may
be good
to have a new Afghan government, but the question is whether that is
our
responsibility
and whether we
should
be doing it
under the constraints
of our
Constitution. Theres a real question of whether it will serve our best
interests in the long-term.
2002 Ron Paul 1:42
CIA support for the Shah of Iran for 25
years
led to the long-term serious problems with that nation that persist
even to this
day. Could oil be the reason we have concentrated on bombing
Afghanistan while
ignoring Saudi Arabia, even though we have never found Osama bin Laden?
Obviously, Saudi Arabia is culpable in these terrorist attacks in the
United
States, and yet little is done about it.
2002 Ron Paul 1:43
There are quite a few unintended
consequences
that might occur if our worldwide commitment to fighting terrorism is
unrestrained.
2002 Ron Paul 1:44
Russias interests in the Afghan region
are much
more intense than Putin would have us believe, and Russias active
involvement
in a spreading regional conflict should be expected.
2002 Ron Paul 1:45
An alliance between Iraq and Iran
against the
U.S. is a more likely possibility now than ever before. Iraqi Foreign
Minister
Naji Sabri is optimistically working on bringing the two nations
together in a
military alliance. His hope is that this would be activated if we
attacked Iraq.
The two nations have already exchanged prisoners of war as a step in
that
direction.
2002 Ron Paul 1:46
U.S. military planners are making
preparations
for our troops to stay in Central Asia for a long time.
A long time
could
mean 50 years! We have been in Korea for that long, and have been in
Japan and
Europe even longer, but the time will come when we will wear out our
welcome and
have to leave these areas. The Vietnam War met with more resistance,
and we left
relatively quickly in humiliating defeat. Similarly, episodes of a more
minor
nature occurred in Somalia and Lebanon.
2002 Ron Paul 1:47
Why look for more of these kinds of
problems
when it does not serve our interests? Jeopardizing our security
violates the
spirit of our Constitution and inevitably costs us more than we can
afford.
2002 Ron Paul 1:48
Our permanent air bases built in Saudi
Arabia
are totally unessential to our security, contributed to the turmoil in
the
Middle East, and they continue to do so.
2002 Ron Paul 1:49
Were building a giant new air base in
Kyrgyzstan, a country once part of the Soviet Union and close to
Russia. China,
also a neighbor, with whom we eagerly seek a close relationship as a
trading
partner, will not ignore our military buildup in this region.
2002 Ron Paul 1:50
Islamic fundamentalists may overthrow
the
current government of Saudi Arabia- a fear that drives her to cooperate
openly
with the terrorists while flaunting her relationship with the United
States.
The
Wall Street Journal
has editorialized that the solution ought to be
our
forcibly seizing the Saudi Arabian oil fields and replacing the current
government with an even more pro-Western government. All along I
thought we
condemned regimes that took over their neighbors oil fields!
2002 Ron Paul 1:51
The editorial, unbelievably explicit,
concluded
by saying: Finally, we must be prepared to seize the Saudi oil fields
and
administer them for the greater good.
The greater good?
I
just wonder whose greater good?
2002 Ron Paul 1:52
If the jingoism of the
Wall Street
Journal
prevails,
and the warmongers in the Congress and the administration carry the
day, we can
assume with certainty that these efforts being made will precipitate an
uncontrollable breakout of hostilities in the region that could lead to
World
War III.
2002 Ron Paul 1:53
How a major publication can actually
print an
article that openly supports such aggression as a serious proposal is
difficult
to comprehend! Two countries armed with nuclear weapons, on the verge
of war in
the region, and were being urged to dig a deeper hole for ourselves by
seizing
the Saudi oil fields?
2002 Ron Paul 1:54
Already the presence of our troops in
the Muslim
holy land of Saudi Arabia has inflamed the hatred drove the terrorists
to carry
out their tragic acts of 9-11. Pursuing such an aggressive policy would
only
further undermine our ability to defend the American people and will
compound
the economic problems we face.
2002 Ron Paul 1:55
Something, anything, regardless of its
effectiveness, had to be done, since the American people expected it,
and
Congress and the Administration willed it. An effort to get the
terrorists and
their supporters is obviously in order, and hopefully that has been
achieved.
But a never-ending commitment to end all terrorism in the world,
whether it is
related to the attack on September 11
th
or not, is neither a
legitimate nor wise policy.
2002 Ron Paul 1:56
HJ RES 64 gives the President authority
to
pursue only those guilty of the attack on us- not every terrorist in
the entire
world. Let there be no doubt: for every
terrorist
identified,
others will
see only a
freedom fighter
.
2002 Ron Paul 1:57
When we aided Osama bin Laden in the
1980s, he
was a member of the Mujahidien, and they were the
freedom fighters
waging
a
just
war against the Soviet Army. A broad definition of
terrorism
outside the understanding of those who attack the United States
opens a Pandoras box in our foreign policy commitments.
2002 Ron Paul 1:58
If we concentrate on searching for all
terrorists throughout the world and bombing dozens of countries, but
forget to
deal with the important contributing factors that drove those who
killed our
fellow citizens, we will only make ourselves more vulnerable to new
attacks.
2002 Ron Paul 1:59
How can we forever fail to address the
provocative nature of U.S. taxpayer money being used to suppress and
kill
Palestinians and ignore the affront to the Islamic people that our
military
presence on their holy land of Saudi Arabia causes- not to mention the
persistent 12 years of bombing Iraq?
2002 Ron Paul 1:60
Im fearful that an unlimited worldwide
war
against all terrorism will distract from the serious consideration that
must be
given to our policy of foreign interventionism, driven by the powerful
commercial interests and a desire to promote world government. This is
done
while ignoring our principle responsibility of protecting national
security and
liberty here at home.
2002 Ron Paul 1:61
There is a serious problem with a
policy that
has allowed a successful attack on our homeland. It cannot be written
off as a
result of irrational yet efficient evildoers who are merely jealous of
our
success and despise our freedoms.
2002 Ron Paul 1:62
Weve had enemies throughout our
history, but
never before have we suffered such an attack that has made us feel so
vulnerable. The cause of this crisis is much more profound and requires
looking
inwardly as well as outwardly at our own policies as well as those of
others.
2002 Ron Paul 1:63
The Founders of this country were
precise in
their beliefs regarding foreign policy. Our Constitution reflects these
beliefs,
and all of our early presidents endorsed these views. It was not until
the 20
th
Century that our nation went off to far away places looking for dragons
to slay.
This past century reflects the new and less-traditional American policy
of
foreign interventionism. Our economic and military power, a result of
our
domestic freedoms, has permitted us to survive and even thrive while
dangerously
expanding our worldwide influence.
2002 Ron Paul 1:64
Theres no historic precedent that such
a policy
can be continued forever. All empires and great nations throughout
history have
ended when they stretched their commitments overseas too far and abused
their
financial system at home. The over-commitment of a countrys military
forces
when forced with budgetary constraints can only lead to a lower
standard of
living for its citizens. That has already started to happen here in the
United
States. Who today is confident the government and our private
retirement systems
are sound and the benefits guaranteed?
2002 Ron Paul 1:65
The unfortunate complicating factor
that all
great powers suffer is the buildup of animosity toward the nation
currently at
the top of the heap, which is aggravated by arrogance and domination
over the
weaker nations. We are beginning to see this, and the
Wall Street
Journal
editorial clearly symbolizes this arrogance.
2002 Ron Paul 1:66
The traditional American foreign policy
of the
Founders and our presidents for the first 145 years of our history
entailed
three points:
2002 Ron Paul 1:67
Friendship with all nations desiring of
such
2002 Ron Paul 1:68
As much free trade and travel with
those
countries as possible
2002 Ron Paul 1:69
Avoiding entangling alliances
2002 Ron Paul 1:70
This is still good advice. The Framers
also
understood that the important powers for dealing with other countries
and the
issue of war were to be placed in the hands of the Congress. This
principle has
essentially been forgotten.
2002 Ron Paul 1:71
The executive branch now has much more
power
than does the Congress. Congress continues to allow its authority to be
transferred to the executive branch, as well as to international
agencies, such
as the UN, NAFTA, IMF, and the WTO. Through executive orders, our
presidents
routinely use powers once jealously guarded and held by the Congress.
2002 Ron Paul 1:72
Today, through altering aid and
sanctions, we
buy and sell our friendship with all kinds of threats and bribes in
our effort to spread our influence around the world. To most people in
Washington, free trade means international managed trade, with
subsidies and
support for the WTO, where influential corporations can seek sanctions
against
their competitors. Our alliances, too numerous to count, have committed
our
dollars and our troops to such an extent that, under todays
circumstances,
theres not a border war or civil disturbance in the world in which we
do not
have a stake. And more than likely, we have a stake- foreign aid- in
both
sides of each military conflict.
2002 Ron Paul 1:73
After the demise of our nemesis, the
Soviet
Union, many believed that we could safely withdraw from some of our
worldwide
commitments. It was hoped we would start minding our own business, save
some
money, and reduce the threat to our military personnel. But the
opposite has
happened. Without any international competition for super-power status,
our
commitments have grown and spread, so that today we provide better
military
protection to Taiwan and South Korea and Saudi Arabia than we do for
our own
cities like New York and Washington.
2002 Ron Paul 1:74
I am certain that national security and
defense
of our own cities can never be adequately provided unless we reconsider
our
policy of foreign interventionism.
2002 Ron Paul 1:75
Conventional wisdom in Washington today
is that
we have
no choice
but to play the role of the worlds only
superpower.
Recently, we had to cancel flights of our own Air Force over our cities
because
of spending constraints, and we rely on foreign AWACS aircraft to
patrol our
airspace.
2002 Ron Paul 1:76
The American people are not in sync
with the
assumption that we must commit ourselves endlessly to being the worlds
policemen. If we do not wisely step back and reassess our worldwide
commitments
and our endless entanglements as we march toward world government,
economic law
will one day force us to do so anyway under undesirable circumstances.
In the
meantime, we can expect plenty more military confrontations around the
world
while becoming even more vulnerable to attack by terrorists here at
home.
2002 Ron Paul Chapter 2
http://www.house.gov/paul/congrec/congrec2002/cr020402.htm
Statement of Congressman Ron
Paul
House Financial Services Committee, Capital Markets Subcommittee
Monday, February 4, 2002
Statement before the House Capital Markets Subcommittee
2002 Ron Paul 2:1
Mr. Chairman, the collapse of
Enron has
so far been the cause of numerous hearings, as well as calls for
increased
federal control over the financial markets and the accounting
profession. For
example, legislation has been introduced to force all publicly traded
companies
to submit to federal audits.
2002 Ron Paul 2:2
I fear that many of my
well-meaning
colleagues are reacting to media reports portraying Enron as a reckless
company
whose problems stemmed from a lack of federal oversight. It is a
mistake for
Congress to view the Enron collapse as a justification for more
government
regulation. Publicly held corporations already comply with massive
amounts of
SEC regulations, including the filing of quarterly reports that
disclose minute
details of assets and liabilities. If these disclosure rules failed to
protect
Enron investors, will more red tape really solve anything? The real
problem with
SEC rules is that they give investors a false sense of security, a
sense that
the government is protecting them from dangerous investments.
2002 Ron Paul 2:3
In truth, investing carries
risk, and
it is not the role of the federal government to bail out
every
investor who loses money. In a true free market, investors are
responsible for
their
own decisions, good
or bad.
This responsibility leads them to vigorously analyze companies before
they
invest, using independent financial analysts. In our heavily
regulated
economy, however, investors and analysts equate SEC compliance with
reputability.
The more we look to the government to protect us from investment
mistakes,
the less competition there is for truly independent evaluations of
investment
risk.
2002 Ron Paul 2:4
The SEC, like all government
agencies,
is not immune from political influence or conflicts
of
interest. In fact, the new SEC chief used to represent the very
accounting
companies
now under SEC
scrutiny.
If anything, the Enron failure should teach us to place less trust
in
the SEC. Yet many in Congress and the media characterize Enrons
bankruptcy as
an example of unbridled capitalism gone wrong.
Few
in Congress seem to understand how the Federal Reserve system
artificially
inflates
stock prices and
causes
financial bubbles. Yet what other explanation can there be when
a
company goes from a market value of more than $75 billion to virtually
nothing
in just a
few months? The
obvious
truth is that Enron was never really worth anything near $75
billion,
but the media focuses only on the possibility of deceptive practices by
management,
ignoring the primary cause of stock overvaluation: Fed expansion of
money
and credit.
2002 Ron Paul 2:5
The Fed consistently increased
the
money supply (by printing dollars) throughout the
1990s,
while simultaneously lowering interest rates. When dollars are
plentiful, and
interest rates are artificially
low, the
cost of borrowing becomes cheap. This is why so many Americans are more
deeply
in debt than ever before. This easy credit environment
made
it possible for Enron to secure hundreds of millions in
uncollateralized loans,
loans
that now cannot be
repaid.
The cost of borrowing money, like the cost of everything else, should
be
established by the free market- not by government edict. Unfortunately,
however,
the trend toward overvaluation will continue until the Fed stops
creating money
out of thin air and stops keeping
interest
rates artificially low. Until then, every investor should understand
how Fed
manipulations affect the true value of any company and the
level
of the markets.
2002 Ron Paul 2:6
Therefore, if Congress wishes
to avoid
future bankruptcies like Enron, the best thing it can do
is
repeal existing regulations which give investors a false sense of
security and
reform the countrys monetary policy to end the Fed-generated
boom-and-bust
cycle. Congress should also repeal those programs which provide
taxpayer
subsidies to large, politically-powerful corporations such as Enron.
2002 Ron Paul 2:7
Enron provides a perfect
example of the
dangers of corporate subsidies. The company
was
(and is) one of the biggest beneficiaries of Export-Import Bank
subsidies. The
Ex-Im bank, a program that
Congress
continues to fund with tax dollars taken from hard-working Americans,
essentially makes risky loans to foreign governments and businesses for
projects
involving American companies. The Bank, which purports to help
developing
nations, really acts as a naked subsidy for certain politically-favored
American
corporations- especially corporations
like
Enron that lobbied hard and gave huge amounts of cash to both political
parties.
Its
reward was more that
$600
million in cash via six different Ex-Im financed projects.
2002 Ron Paul 2:8
One such project, a power
plant in
India, played a big part in Enrons demise. The
company
had trouble selling the power to local officials, adding to its huge
$618
million
loss for the
third quarter
of 2001. Former president Clinton worked hard to secure the India deal
for Enron
in the mid-90s; not surprisingly, his 1996 campaign received
$100,000
from the company. Yet the media makes no mention of this favoritism.
Clinton
may claim he was protecting
tax dollars, but those tax dollars should never have been
sent
to India in the first place.
2002 Ron Paul 2:9
Enron similarly benefited from
another
federal boondoggle, the Overseas Private
Investment
Corporation. OPIC operates much like the Ex-Im Bank, providing
taxpayer-funded
loan guarantees for overseas projects, often in countries with shaky
governments
and economies. An OPIC spokesman claims the organization paid more
than
one billion dollars for 12 projects involving Enron, dollars that now
may never
be
repaid. Once again,
corporate
welfare benefits certain interests at the expense of taxpayers.
The
point is that Enron was intimately involved with the federal
government. While
most
of my colleagues are
busy
devising ways to save investors with more government, we
should
be viewing the Enron mess as an argument for
less
government.
It is
precisely because government is so big and so thoroughly involved in
every
aspect of business that
Enron
felt
the need to seek influence through campaign money. It is precisely
because
corporate welfare is so extensive
that
Enron cozied up to DC-based politicians of both parties. Its a game
every big
corporation plays in our heavily regulated economy, because they must
when the
government, rather than the marketplace, distributes the spoils.
2002 Ron Paul 2:10
This does not mean Enron is to
be
excused. There seems to be little question that executives at Enron
deceived
employees and investors, and any fraudulent conduct should of course be
fully
prosecuted. However, Mr. Chairman, I hope we will not allow criminal
fraud in
one company, which constitutionally is a matter for state law, to
justify the
imposition of burdensome new accounting and stock regulations. Instead,
we
should focus on repealing those monetary and fiscal policies that
distort the
market and allow the politically powerful to enrich themselves at the
expense of
the American taxpayer.
2002 Ron Paul Chapter 3
http://www.house.gov/paul/congrec/congrec2002/cr020602.htm
February 6 2002
Congressman Ron Paul
House Financial Services committee, February 6 2002
Statement on the Argentine crisis
2002 Ron Paul 3:1
Mr. Chairman, the recent
economic
difficulties in Argentina provide many valuable lessons for policy
makers, both
in America and the rest of the world. Unfortunately, early signals
indicate that
many are drawing the wrong lesson from this crisis.
2002 Ron Paul 3:2
In the last several months,
too many
commentators and policy makers have pointed the finger of blame for
Argentinas
economic crisis at deregulation, free markets, and free trade. The
logical
conclusion of this analysis is that Argentina should embrace
protectionism,
increased welfare spending, regulation, and maybe even return to the
days when
all major industry in the country was nationalized. However, those
familiar with
the economic history of the twentieth century will find this analysis
shocking-
after all, if state control of the economy was the path to prosperity,
then Cuba
and North Korea would be the worlds richest countries and leading
economies!
2002 Ron Paul 3:3
In fact, Mr. Chairman,
Argentina does
not represent an exception to the laws of economics. Rather,
Argentinas
economic collapse is but one more example of the folly of government
intervention in the economy done to benefit powerful special interests
at the
expense of the Argentine people and the American taxpayer. The primary
means by
which the federal government forces American taxpayers to underwrite
the
destruction of the Argentine economy is the International Monetary Fund
(IMF),
which enjoys a $37 billion line of credit provided with U.S. Treasury
funds.
2002 Ron Paul 3:4
Despite clear signs over the
past
several years that the Argentine economy was in serious trouble, the
IMF
continued pouring taxpayer-subsidized loans with an incredibly low
interest rate
of 2.6% into the country. In 2001, as Argentinas fiscal position
steadily
deteriorated, the IMF funneled over 8 billion dollars to the Argentine
government!
2002 Ron Paul 3:5
According to our colleague,
Congressman
Jim Saxton, Chairman of the Joint Economic Committee, this Continued
lending over many years sustained and subsidized a bankrupt Argentine
economic
policy, whose collapse is now all the more serious. The IMFs generous
subsidized bailouts lead to moral hazard problems, and enable shaky
governments
to pressure the IMF for even more funding or risk disaster.
2002 Ron Paul 3:6
Argentina is just the latest
example of
the folly of IMF policies. Only three years ago the world economy was
rocked by
an IMF-created disaster in Asia. The IMF regularly puts taxpayers on
the hook
for the mistakes of the big banks. Oftentimes, Mr. Chairman, IMF funds
end up in
the hands of corrupt dictators who use the taxpayer-provided largesse
to prop up
their regimes by rewarding their supporters and depriving their
opponents access
to capital.
2002 Ron Paul 3:7
Even if they are not corrupt,
most IMF
borrowers are governments of countries with little economic
productivity. Either
way, most recipient nations end up with huge debts that they cannot
service,
which only adds to their poverty and instability. IMF money ultimately
corrupts
those countries it purports to help, by keeping afloat reckless
political
institutions that destroy their own economies.
2002 Ron Paul 3:8
IMF policies ultimately are
based on a
flawed philosophy that says the best means of creating economic
prosperity is
government-to-government transfers. Such programs cannot produce
growth, because
they take capital out of private hands, where it can be allocated to
its most
productive use as determined by the choices of consumers in the market,
and
place it in the hands of politicians. Placing economic resources in the
hands of
politicians and bureaucrats inevitably results in inefficiencies,
shortages, and
an economic crisis, as even the best intentioned politicians cannot
know the
most efficient use of resources.
2002 Ron Paul 3:9
In addition, Mr. Chairman, the
IMF
violates basic constitutional and moral principles. The federal
government has
no constitutional authority to fund international institutions such as
the IMF,
and it is simply immoral to take money form hard-working Americas to
support the
economic schemes of politically-powerful special interests and
third-world
dictators.
2002 Ron Paul 3:10
The only constituency for the
IMF are
the huge multinational banks and corporations. Big banks used IMF
funds-
taxpayer funds- to bail themselves out from billions in losses after
the Asian
financial crisis. Big corporations obtain lucrative contracts for a
wide variety
of construction projects funded with IMF loans. Its a familiar game in
Washington, with corporate
welfare
disguised as compassion for the poor.
2002 Ron Paul 3:11
Mr. Chairman, the damage
inflicted by
the IMF on Argentina is immense and inexcusable. This is yet further
proof that
the IMF was a bad idea from the very beginning- economically,
constitutionally,
and morally. However, perhaps some good can come out of this debacle if
it
causes Congress to at last rethink Americas foolish participation in
the IMF.
This is why I will soon be introducing legislation to withdraw America
from the
IMF. I hope my colleagues will join me in working to protect the
American
taxpayer from underwriting the destruction of countries like Argentina,
by
working with me to end Americas support for the IMF.
2002 Ron Paul Chapter 4
http://www.house.gov/paul/congrec/congrec2002/cr020702.htm
Congressman Ron Paul
U.S. House of Representatives
February 7, 2002
Economic Concerns
Mr. Speaker:
2002 Ron Paul 4:1
Dealing with the slumping
economy will
prove every bit as challenging to Congress as fighting terrorism.
2002 Ron Paul 4:2
No one challenges the need to
protect
American citizens from further terrorist attacks, but there is much
debate
throughout the country as to how it should be done and whether personal
liberty
here at home must be sacrificed. Many are convinced that our efforts
overseas
might escalate the crisis and actually precipitate more violence. A
growing
number of Americans are becoming concerned that our efforts to preserve
our
freedoms and security will result in the unnecessary sacrifice of that
which
weve pledge to protect- our constitutionally protected liberty.
2002 Ron Paul 4:3
A similar conflict also exists
once
government attempts to legislate an end to a recession. In the 1970s,
wage and
price controls were used to suppress price inflation and to help the
economy,
without realizing the futility of such a policy. Not only did it not
work, the
economy was greatly harmed. Legislation, per se, is not necessarily
harmful, but
if it reflects bad policy, it is. The policy of wage and price controls
makes
things worse and represents a serious violation of peoples rights.
2002 Ron Paul 4:4
Today, we hear from strong
advocates of
higher taxation, increased spending, higher budget deficits, tougher
regulations, bailouts and all kinds of subsidies and support programs
as tools
to restore economic growth. The Federal Reserve recognized early on the
severity
of the problems and, over the past year, lowered short-term interest
rates an
unprecedented 11 times, dropping the Fed funds rate from 6 1/2 % to 1
3/4 %. This has
not helped, and none of these other suggestions can solve the economic
problems
we face either. Some may temporarily help a part of the economy, but
the
solution to restoring growth lies not in more government but less. It
is
precisely too much government, and especially manipulation of credit by
the
Federal Reserve, that precipitated the economic downturn in the first
place.
Increasing that which caused the recession cant possibly, at the same
time, be
the solution.
2002 Ron Paul 4:5
The magnitude of the
distortions of the
1990s brought on by artificially low interest rates orchestrated by the
Fed, on
top of 30 years of operating with a fiat currency worldwide, suggests
that this
slowdown will not abort quickly.
2002 Ron Paul 4:6
The Japanese economy has been
in a
slump for over 10 years and shows no signs of recovery. The world
economies are
more integrated than ever before. When they are growing, it is a
benefit to all,
but in a contraction, globalism based on fiat money and international
government
assures that most economies will be dragged down together. Evidence is
abundant
that most countries of the world are feeling the pressure of a
weakening
economy.
2002 Ron Paul 4:7
Many of our political and
economic
leaders have been preaching that more consumer spending can revitalize
the
economy. This admonition, of course, fails to address the reality of a
record-high $7.5 trillion-and rising consumer debt. Today, a party-
tomorrow an economic hangover has essentially been our philosophy for
decades. But theres always a limit to deficit spending, whether its
private or
governmental, and the short-term benefits must always be paid for in
one form or
another later on.
2002 Ron Paul 4:8
Those who felt and acted
wealthy in
holding the dot-com and Enron stocks were brought back to earth with a
shattering correction. Theres a lot more of this type of correction
yet to come
in the financial sector.
2002 Ron Paul 4:9
In recessions, to remain
solvent,
consumers ought to tighten their belts, pay off debt, and save. In a
free
market, this would lower market interest rates to once again make
investments
attractive. The confusing aspect of todays economy is that consumers
and even
businesses continue profligate borrowing, in spite of problems on the
horizon.
Interest rates, instead of rising, are pushed dramatically downward by
the
Federal Reserve, creating massive amounts of new credit.
2002 Ron Paul 4:10
This new credit, according to
economic
law, must in time push the value of the dollar down and general prices
up. When
this happens and the dollar is threatened on exchange markets, the cost
of
living is pushed sharply upward. The central bank is then forced to
raise
interest rates, as they did in 1979 when the rates hit 21%.
2002 Ron Paul 4:11
But even before any need to
tighten,
interest rates may rise or not fall as expected. This has just happened
in 2001.
Even with Fed fund rates at 40-year lows, the 10 and 30-year rates have
not
fallen accordingly. Many corporate-bond rates have stayed high, and
credit-card
rates have stayed in double digits. This happens because the market
discounts
for debt quality and future depreciation of the dollar.
2002 Ron Paul 4:12
The Fed cant control these
rates, and
they cant control where the new credit they create goes. This means
that
resorting to, or trusting in, the Fed to bail out the economy and
accommodate
congressional spending is foolhardy and dangerous. This policy has led
to a
record default for U.S. corporate bonds. Worldwide, $110 billion of
bonds were
defaulted on last year.
2002 Ron Paul 4:13
Monetary inflation is the
chief cause
of recessions. Therefore, we must never expect that this same policy
will
reverse the economic dislocations it has caused.
2002 Ron Paul 4:14
For over a year, the Fed has
been
massively inflating the money supply, and there is no evidence that it
has done
much good. This continuous influx of new credit instead delays the
correction
that must eventually come- the liquidation of bad debt, and the
reduction of
overcapacity. This is something Japan has not accomplished in 12 years
of
interest rates around 1%. The market must be left to eliminate the
misdirected
investments and allow the sound investments to survive.
2002 Ron Paul 4:15
There are other policies that
will
assist in a recovery that the Congress could implement. All taxes ought
to be
lowered, government spending should be reduced, controls on labor costs
should
be removed, and onerous regulations should be reduced or eliminated.
2002 Ron Paul 4:16
We should not expect any of
this to
happen unless the people and the Congress decide that free-market
capitalism and
sound money are preferable to a welfare state and fiat money. Whether
this
downturn is the one that will force that major decision upon us is not
known,
but eventually we will have to make it. Welfarism and our expanding
growing
foreign commitments, financed seductively through credit creation by
the Fed,
are not viable options.
2002 Ron Paul 4:17
Transferring wealth to achieve
a
modicum of economic equality and assuming the role of world policeman,
while
ignoring economic laws regarding money and credit, must lead to
economic
distortions and a lower standard of living for most citizens. In the
process,
dependency on the government develops and Congress attempts to solve
all the
problems with a much more visible hand than Adam Smith recommended. The
police
efforts overseas and the effort to solve the social and economic
problems here
at home cannot be carried out without undermining the freedoms that we
all
profess to care about.
2002 Ron Paul 4:18
Sadly lacking in the Congress
is a
conviction that free markets- that is truly free markets- and sound
money can
provide the highest standard of living for the greatest number of
people.
Instead, we operate with a system that compromises free markets and
causes
economic injury to a growing number of people, while rewarding special
interests
and steadily undermining the principles of liberty. Unfortunately, the
policy of
monetary inflation is most harmful to the poor and the middle class,
especially
in the early stages.
2002 Ron Paul 4:19
Since rejecting the current
system and
endorsing economic freedom diminishes the power and influence of
politicians,
its difficult to get political support for such a program. The
necessary
changes will only come when the American people wake up to the reality
and
insist that the Congress pursues only those goals permitted under the
Constitution.
2002 Ron Paul 4:20
Instead of moving in that
direction of
freer markets, the more problems the western countries face, the more
government
programs are demanded. If one looks at Europe, the United States, or
even Japan
as their economies weaken, government involvement in the economy
increases. But
in China and Russia, the horrible conditions that communism causes,
ironically,
made these two countries move toward freer markets when they
encountered serious
troubles. Even the central banks of these two countries today are
accumulating
gold, while western central banks are selling.
2002 Ron Paul 4:21
The reason for this is that
the
conventional wisdom of the wests political and economic leaders is
that theres
a third way that is best, or an alternative to the extremes of too much
freedom-
laissez faire capitalism- and too little freedom- authoritarianism,
socialism or
communism.
2002 Ron Paul 4:22
But this is a myth. One can
only
justify intervention in the market on principle or argue against it.
Theres
always the hope that government will be prudent and limit its intrusion
in the
economy with low taxes, minimal regulations, a little inflation, and
only a few
special interest favors. Yet the record is clear. Any sign of distress
prompts
government action for any and every conceivable problem. Since each
action by
the government not only fails in its attempt to solve the problem it
addresses,
it creates several new problems in addition while prompting even more
government
intervention.
2002 Ron Paul 4:23
Here in the United States we
have seen
the process at work for several decades with steady growth in the size
and scope
of the federal bureaucracy and the corresponding reduction in our
personal
freedoms. This principle also applies to overseas intervention. One
episode of
meddling in the affairs of other nations leads to several new problems
requiring
even more of our attention and funding.
2002 Ron Paul 4:24
This system leads to a huge
bureaucratic government, manipulated by politicians, and generates an
army of
special interests that flood the system with money and demands. To
achieve and
maintain political power in Washington, these powerful special
interests must be
satisfied.
2002 Ron Paul 4:25
This is a well-known problem
and
prompts some serious-minded and well-intentioned Members to want to
legislate
campaign finance reforms. But the reforms proposed would actually make
the whole
mess worse. They would regulate access to the members of Congress, and
dictate
how private money is spent in campaigns. This merely curtails liberty,
while
ignoring the real problem- a government that ignores the Constitution
naturally
passes out largesse. Even under todays conditions, where money talks
in
Washington, if enough members would refuse either to accept or be
influenced by
the special interests, government favors would no longer be up for
sale. Since
politicians are far from perfect, the solution is having a government
of limited
size acting strictly within the framework of the Constitution. No
matter how
strictly campaign finance laws are written, they will do only harm if
the rule
of law is not restored and if Congress refuses to stop being
manipulated by the
special interests.
2002 Ron Paul 4:26
Most people recognize the
horrible mess
that Washington is and how campaign money and lobbyists influence the
system.
But the reforms proposed only deal with the symptoms and not the root
cause.
There is sharp disagreement in what to do about it, but no one denies
the
existence of the problem. It=s just hard for most to acknowledge that
the
welfare state is out of control and shouldnt be in existence anyway.
Therefore,
they misdirect our attention toward campaign-finance reform rather than
deal
with the real problem.
2002 Ron Paul 4:27
Very few in Washington,
however,
recognize the dire consequences to economic prosperity that welfarism,
warfarism, and inflationism cause. Most believe that the occasional
recession
can be easily handled by government programs and a Federal Reserve
policy
designed to stimulate growth. Its happened many times already, and
almost
everyone believes that in a few months our economy and stock market
will be
roaring once again.
2002 Ron Paul 4:28
This is where I disagree.
2002 Ron Paul 4:29
Every recession in the last 30
years,
since the dollar became a purely fiat currency, has ended after a
significant
correction and resumption of all the bad policies that caused the
recession in
the first place. Each rebound required more spending, debt and easy
credit than
the previous recovery did. And with each cycle, the government got
bigger and
more intrusive.
2002 Ron Paul 4:30
Bigger government with more
monetary
debasement and deficit spending means a steady erosion of the free
market and
personal freedoms. This is not tolerated, because the people enjoy or
even
endorse higher taxes, more regulations and fewer freedoms. Its
tolerated
because most people believe that their financial and economic security
is the
responsibility of the government. They believe they are better off with
government assistance in facilitating the free market, having been
taught for
decades that it is necessary for government to put a human face on
capitalism.
Extreme capitalism, i.e. freedom, we have been told is just as
dangerous as
extreme socialism. As long as this belief prevails, our system will
continue in
its inexorable march toward fascist-type socialism.
2002 Ron Paul 4:31
However, support for todays
policies
is built on the fallacy that material wealth and general prosperity are
best
achieved with this third way- interventionism- while avoiding the
dangers of
communism and socialism. This is coupled with the firm conviction that
the
sacrifice of freedom will be minimal and limited and that the very rich
can be
adequately taxed and regulated to help the poor.
2002 Ron Paul 4:32
This is a fallacy because more
freedom
will be lost than is expected, and the productivity of the market will
suffer
more than anticipated. Once this realization occurs, it will suddenly
be
discovered that the apparent wealth of the nation is a lot less than
calculated.
2002 Ron Paul 4:33
An economy that depends on
ever-increasing rates of monetary inflation will appear much healthier
and the
people much richer than is the actual case. Owners of the dot-com
companies or
Enron stocks know what its like to feel rich one day and very poor the
next.
This is not a unique experience but one that should be expected and is
predictable.
2002 Ron Paul 4:34
Countries that inflate their
currencies
must adjust their values periodically with sudden devaluations, which
destroy
the pseudo-wealth of the middle class and poor. The wealthy, more often
than
not, can protect themselves from the sudden shocks to the monetary
system.
However, they cant protect from the insidious loss of liberty that
accompanies
these adjustments, and eventually everyone suffers.
2002 Ron Paul 4:35
Our dollar system is quite
similar to
the Argentine and Mexican peso systems that periodically make sudden
and painful
adjustments. But ours is different in one respect, because the dollar
is
accepted as the reserve currency of the world- the paper gold of the
world
financial system. This gives us license to inflate- that is, steal- for
longer
periods of time, and we can avoid sudden and sharp devaluations since
the
worlds currencies are defined by our dollar. But this doesnt
permit the ultimate devaluation that will bring a significant increase
in the
cost of living to all Americans, but hurt the poor and the middle class
the
most.
2002 Ron Paul 4:36
This special status of the
dollar only
makes the problem of the illusion of wealth much worse. Since our
bubble can
last longer due to our perceived military and economic strength, it
appears that
our wealth is much greater than it actually is. Because of our unique
position
as the economic powerhouse of the world, were able to borrow more than
anyone
else. Foreigners loan us exorbitant sums, as our current account
deficit soars
out of sight. The U.S. now has a foreign debt of over $2 trillion.
Perceptions
and illusions and easy credit allow our consumers to spend, even in
recessions,
by rolling up even more debt in a time when market forces are saying
that
borrowing should decrease and the debt burden lessen. Our corporations
follow
the same pattern, keeping afloat with more borrowing.
2002 Ron Paul 4:37
Ideas regarding the national
debt have
been transformed. Presidents Jefferson and Jackson despised government
debt and
warned against it. Likewise, both detested central banking, which they
knew
inevitably, would be used to liquidate the real debt through the
mischievous
process of monetary debasement.
2002 Ron Paul 4:38
Today, few decry the debt,
except for
the purpose of political demagoguery when convenient. The concern about
deficits
expressed by liberal big spenders does not merit credibility, but even
conservative spenders now are less likely to decry deficits and some
actually
praise them.
2002 Ron Paul 4:39
Just recently, the
conservative
Institute for Policy Innovation (IPI) announced in a national press
release:
National debt can lead to a growing economy, claiming government
borrowing, produces steady long-term growth, greater security, and a
higher standard of living.
2002 Ron Paul 4:40
This wouldnt be so bad if it
came from
a typically Keynesian think tank. But this is the growing conventional
wisdom of
many conservatives whose goal is to generate government revenues,
painlessly of
course, not to drastically shrink the size of government and restore
personal
liberty.
2002 Ron Paul 4:41
What they fail to recognize,
once they
lose interest in shrinking the size of government, is that government
borrowing
always takes money from productive enterprises, while placing these
funds in the
hands of politicians whose prime job is to serve special interests.
Deficits are
a political expedience that also forces the Federal Reserve to inflate
the
currency while reducing in real terms the debt owed by the government
by
depreciating the value of the currency.
2002 Ron Paul 4:42
Those who would belittle the
critics of
the deficit and national debt are merely supporting a system of big
government,
whether its welfare or warfare, or both.
2002 Ron Paul 4:43
Debt, per se, is not the only
issue.
Its also because debt always encourages the growth in the size of
government.
Allowing it to be seductively financed through inflation or borrowing
is what
makes it so bad. Just because its less painful at first and payment is
delayed,
we should not be tempted to endorse this process.
2002 Ron Paul 4:44
If liberty is our goal and
minimal
government a benefit to a sound economy, we must always reject debt and
deficits
as a legitimate tool for improving the economy and the welfare of the
greatest
number of people. The principle of authoritarian government is endorsed
whenever
deficits are legitimatised. All those who love liberty must reject the
notion
that deficits and debt perform a useful function.
2002 Ron Paul 4:45
Its possible this recession
may end in
a few months as the optimists predict, but if it does, our problems are
only
delayed. The fundamental correction will still be necessary to preserve
the
productivity of a market economy. If we do not change our ways, the
financial
bubble will just go back to inflating again. The big correction, like
that which
Argentina is now experiencing with rapid disappearance of paper wealth,
will
eventually hit our economy. The longer the delay, the bigger will be
the bust
and greater the threat to our freedoms and institutions.
2002 Ron Paul 4:46
Since were moving toward the
big
correction, were going to see a lot more wealth removed from our
balance sheets
and our retirement accounts. The rampant price inflation that results
will erode
the purchasing power of all fixed-income retirement funds like Social
Security
and mean a lower standard living for most people. The routine
government
response of increasing benefits for living expenses and medical care
will never
keep up with the needs or demands. Eventually we will have to give up,
and a new
economic system will have to be devised, as occurred in the Soviet
system after
1989.
2002 Ron Paul 4:47
Wealth- the product of labor,
investment and savings- can never be substituted by government spending
or by a
central bank that creates new money out of thin air. Governments can
only give
things they first take away from someone else. Printing money only
diminishes
the value of each monetary unit. Neither can create wealth; both can
destroy it.
2002 Ron Paul 4:48
The dilemma is that early on,
and
sometimes for many years as we have experienced, transferring wealth
and
printing money seem to help more than it hurts. Thats because the
wealth is not
real, and the trust funds, like Social Security hold no actual wealth.
A pension
fund with dot-com and Enron stock held no wealth either. Unfortunately,
the
stocks and bonds remaining are worth a lot less than most people
realize.
2002 Ron Paul 4:49
The Social Security system
depends on
the value of the dollar and on future taxation. The Fed can create
unlimited
amounts of money that Congress needs, and Congress can raise taxes as
it wants.
But this policy guarantees that the dollar cannot maintain its
purchasing power
and that there wont be enough young people to tax in the future.
Increasing
benefits under these circumstances can only be done at the expense of
the
dollar. Catching up with the current system of money and transfer
payments is
equivalent to a person on a treadmill who expects to get to the next
town. It
tragically doesnt work.
2002 Ron Paul 4:50
The economic loss is bad
enough, but
whether its fighting the war on terrorism, acting as the worlds
policeman, or
solving the problems of vanishing wealth, the real insult will come
from the
freedoms we lose. These freedoms, vital to production and wealth
formation, are
necessary and represent what the American dream is all about. They are
what made
us the richest nation in all of history, but this we will lose if
Congress is
not careful with what it does in the coming months.
2002 Ron Paul 4:51
The Dangers We Face
2002 Ron Paul 4:52
Mr. Speaker, if nothing else,
the
knowledge that we are now vulnerable from outside attack is shared by
all
Americans. The danger is clear and present and everyone wants something
done
about it.
2002 Ron Paul 4:53
There is, however, no
unanimity as to
the cause of the attacks, who is responsible, and what exactly has to
be done.
The President has been given congressional authority to use force
against
those responsible for the recent attacks launched against the United
States. A large majority of Americans are quite satisfied that his
efforts
have been carried out with due diligence.
2002 Ron Paul 4:54
But a growing number of
Americans are
becoming aware that anti-terrorist efforts, both at home and abroad,
will have
unintended consequences that few anticipated and that, in time, will
not be
beneficial to U.S. security and will undermine our liberties here at
home.
2002 Ron Paul 4:55
Let me name a few potential
dangers we
face.
2002 Ron Paul 4:56
1. Theres a danger that the
definition
of terrorism will become so vague and broad that almost any act
internationally
or domestically will qualify. If our response in Afghanistan becomes
the
standard for all countries in their retaliation, negotiated settlements
of
conflicts will become a thing of the past. Acts of terror occur on a
regular
basis around the world, whether involving Northern Ireland and Britain,
India
and Pakistan, the Palestinians and Israel, Turkey and Greece, or many
other
places. Traditionally, the United States has always urged restraint and
negotiations. This approach may end if our response in Afghanistan sets
the
standard.
2002 Ron Paul 4:57
2. Another danger is that the
administration may take it upon itself to broadly and incorrectly
interpret
House Joint Resolution 64- the resolution granting authority to the
President to
use force to retaliate against only those responsible for the recent
attacks launched against the United States. Congress did not authorize
force against all terrorist attacks throughout the world if the
individuals
involved were not directly involved in the 9-11 attacks. It would be
incorrect
and dangerous to use this authority to suppress uprisings throughout
the world.
This authority cannot be used to initiate an all-out attack on Iraq or
any other
nation we might find displeasing but that did not participate in the
9-11
attacks.
2002 Ron Paul 4:58
3. An imprecise definition of
who is or
who is not a terrorist may be used to justify our massively expanding
military
might throughout the world. For every accused terrorist, there will be
a
declared freedom fighter. To always know the difference is more than
one can expect. Our record in the past 50 years for choosing the right
side in
the many conflicts in which we have been involved is poor, to say the
least.
Many times, there is no right side, from the viewpoint of American
security, and our unnecessary entanglements have turned out to be the
greater
threat to our security.
2002 Ron Paul 4:59
4. Theres risk that our
massive
deployment of troops in the many countries of the world may contribute
to a
greater conflict. We are today in the middle of a dangerous situation
between
Pakistan and India over Kashmir, both of whom possess nuclear weapons
and both
of whom we generally finance. Exposing ourselves to such risk, while
spending
endless sums supporting both sides, makes no sense.
2002 Ron Paul 4:60
5. Our pervasive military
presence may
well encourage alliances that would have been unheard of a few years
ago. Now
that weve committed ourselves internationally to destroying
Afghanistan and
rebuilding it, with a promise that well be there for a long time,
might
encourage closer military alliances between Russia and China, and even
others
like Pakistan, Iran and Iraq, and even Saudi Arabia- countries all
nervous about
our military permanency in this region. Control of Caspian Sea oil is
not a
forgotten item for these countries, and it will not be gracefully
conceded to
U.S. oil interests. If these alliances develop, even U.S. control of
Persian
Gulf oil could be challenged as well.
2002 Ron Paul 4:61
6. Limits exist on how
extensive our
foreign commitments should be. We have our military limits. Its
difficult to be
everyplace at one time, especially if significant hostilities break out
in more
than one place. For instance, if we were to commit massive troops to
the
overthrow of Saddam Hussein, and Iran were to decide to help Iraq, and
at the
same time the North Koreans were to decide to make a move, our capacity
to wage
war in both places would be limited. Already were short of bombs from
the
current Afghanistan war. We had to quit flying sorties over our own
cities due
to cost, while depending on NATO planes to provide us AWACs cover over
U.S.
territory. In addition, our financial resources are not unlimited, and
any
significant change in the value of the dollar, as well as our rapidly
growing
deficits, could play a significant role in our ability to pay our bills.
2002 Ron Paul 4:62
7. In the area of personal
liberty, we
face some real dangers. Throughout our history, starting with the Civil
War, our
liberties have been curtailed and the Constitution has been flaunted.
Although
our government continued to grow with each crisis, many of the
liberties
curtailed during wartime were restored. War was precise and declared,
and when
the war was over, there was a desire to return to normalcy. With the
current war
on terrorism, there is no end in sight and there is no precise enemy,
and weve
been forewarned that this fight will go on for a long time. This means
that a
return to normalcy after the sacrifices we are making with our freedoms
is not
likely. The implementation of a national ID card, pervasive
surveillance,
easy-to-get search warrants, and loss of financial and medical privacy
will be
permanent. If this trend continues, the Constitution will become a much
weaker
document.
2002 Ron Paul 4:63
8. A danger exists that the
United
States is becoming a police state. Just a few decades ago, this would
have been
unimaginable. As originally designed, in the American republic, police
powers
were the prerogative of the states and the military was not to be
involved.
Unfortunately today, most Americans welcome the use of military troops
to police
our public places, especially the airports. Even before 9-11, more than
80,000
armed federal bureaucrats patrolled the countryside, checking for
violations of
federal laws and regulations. That number since 9-11 has increased by
nearly
50%- and it will not soon shrink. A military takeover of homeland
security looks
certain. Can freedom and prosperity survive if the police state
continues to
expand? I doubt it. It never has before in all of history, and this is
a threat
the Congress should not ignore.
2002 Ron Paul 4:64
9. There is a danger that
personal
privacy will be a thing of the past. Even before 9-11, there were
attacks on the
privacy of all Americans- for good reasons, or so it was argued. The
attacks
included plans for national ID cards, a national medical data bank, and
Know Your Customer type banking regulations. The need for
enforcement powers for the DEA and the IRS routinely prompted laws that
violated
the Fourth amendment. The current crisis has emboldened those who
already were
anxious to impose restrictions on the American people. With drug and
tax laws,
and now with anti-terrorist legislation sailing through Congress, true
privacy
enjoyed by a free people is fast becoming something that we will only
read about
in our textbooks. Reversing this trend will not be easy.
2002 Ron Paul 4:65
10. Flying commercial airlines
will
continue to be a hassle and dangerous. Even travel by other means will
require
close scrutiny by all levels of government in the name of providing
security.
Unfortunately, the restrictions and rules on travel on all American
citizens
will do little, if anything, to prevent another terrorist attack.
2002 Ron Paul 4:66
11. The economic ramifications
of our
war on terrorism are difficult to ascertain but could be quite
significant.
Although the recession was obviously not caused by the attacks, the
additional
money spent and the effect of all the new regulations cannot help the
recovery.
When one adds up the domestic costs, the military costs and the costs
of new
regulations, we can be certain that deficits are going to grow
significantly,
and the Federal Reserve will be further pressured to pursue a dangerous
monetary
inflation. This policy will result in higher rather than lower interest
rates, a
weak dollar and certainly rising prices. The danger of our economy
spinning out
of control should not be lightly dismissed.
2002 Ron Paul 4:67
12. In this crisis, as in all
crises,
the special interests are motivated to increase their demands. Its a
convenient
excuse to push for the benefits they were already looking for.
Domestically,
this includes everyone from the airlines to the unions, insurance
companies,
travel agents, state and local governments, and anyone who can justify
a related
need. Its difficult for the military-industrial complex to hide their
glee with
their new contracts for weapons and related technology. Instead of the
events
precipitating a patriotic fervor for liberty, we see enthusiasm for big
government, more spending, more dependency, greater deficits and
military
confrontations that are unrelated to the problems of terrorism. We are
supposed
to be fighting terrorism to protect our freedoms, but if we are not
careful, we
will lose our freedoms and precipitate more terrorist attacks.
2002 Ron Paul 4:68
13. Understandably, not much
empathy is
being expressed for members of the Taliban that we now hold as
prisoners. The
antipathy is easily understood. Its not only that as a nation we
should set a
good example under the rules of the Geneva Convention, but if we treat
the
Taliban prisoners inhumanly, there is the danger it will surely be used
as an
excuse to treat U.S. prisoners in the same manner in the future. This
certainly
is true when we use torture to extract information, which is now being
advised.
Not only does that reflect on our own society as a free nation, but
torture
notoriously rarely generates reliable information. This danger should
not be
ignored. Besides, we have nothing to gain by mistreating prisoners who
may have
no knowledge of the 9-11 attacks. The idea that those captured are
terrorists responsible for the 9-11 attacks begs the obvious
question.
2002 Ron Paul 4:69
Optimism or Pessimism?
2002 Ron Paul 4:70
Many realists who see the
world as it
really is and who recognize the dilemma we face in the United States to
preserve
our freedoms in this time of crisis are despondent and pessimistic,
believing
little can be done to reverse the tide against liberty. Others who
share the
same concern are confident that efforts to preserve the true spirit of
the
Constitution can be successful. Maybe next month or next year or at
some later
date, Im convinced that, in time, the love for liberty can be
rejuvenated. Once
its recognized that government has no guarantee of future success,
promoting
dependency and security can quickly lose it allure.
2002 Ron Paul 4:71
The Roman poet, Horace, two
thousand
years ago spoke of adversity: Adversity has the effect of eliciting
talents which in times of prosperity would have lain dormant. Since I
believe we will be a lot less prosperous in the not-too-distant future,
we will
have plenty of opportunity to elicit the talents of many Americans.
2002 Ron Paul 4:72
Leonard Read, one of the
greatest
champions of liberty in the 20
th
Century, advised optimism:
2002 Ron Paul 4:73
In every society there are persons who have the
intelligence to figure out the requirements of liberty and the
character to walk
in its ways. This is a scattered fellowship of individuals-
mostly unknown
to you or me- bound together by a love of ideas and a hunger to know
the plain
truth of things.
He was convinced that this
remnant
would rise to the occasion and do the necessary things to restore
virtue and
excellence to a people who had lost their way. Liberty would prevail.
2002 Ron Paul 4:74
Let us be convinced that there
is not
enough hate or anger to silence the cries for liberty or to extinguish
the flame
of justice and truth
.
2002 Ron Paul 4:75
We must have faith that those
who now
are apathetic, anxious for security at all costs, forgetful of the true
spirit
of American liberty, and neglectful of the Constitution, will
rise to the
task and respond accordingly.
2002 Ron Paul Chapter 5
http://www.house.gov/paul/congrec/congrec2002/cr021302.htm
Congressman Ron Paul
U.S. House of Representatives
February 13, 2002
So-Called Campaign Finance Reform is Unconstitutional
2002 Ron Paul 5:1
Mr. PAUL. Mr. Speaker, the Enron bankruptcy and the subsequent revelations
regarding Enrons political influence have once again brought campaign
finance
to the forefront of the congressional agenda. Ironically, many of the
strongest
proponents of campaign finance reform are among those who receive the
largest
donations from special interests seeking state favors. In fact, some
legislators
who where involved in the government-created savings and loan scandal
of the
late eighties and early nineties today pose as born again advocates of
good government via campaign finance reform!
2002 Ron Paul 5:2
Mr. Speaker, this so-called reform legislation is clearly unconstitutional. Many have pointed out that the First amendment
unquestionably
grants individuals and businesses the free and unfettered right to
advertise,
lobby, and contribute to politicians as they choose. Campaign reform
legislation
blows a huge hole in these First amendment protections by criminalizing
criticism of elected officials. Thus, passage of this bill will import
into
American law the totalitarian concept that government officials should
be able
to use their power to silence their critics.
2002 Ron Paul 5:3
The case against this provision was best stated by Herb Titus, one of
Americas leading constitutional scholars, in his paper
Campaign-Finance
Reform: A Constitutional Analysis
: At the heart of the guarantee
of
the freedom of speech is the prohibition against any law designed to
protect the
reputation of the government to the end that the people have confidence
in their
current governors. As seditious libel laws protecting the reputation of
the
government unconstitutionally abridge the freedom of speech, so also do
campaign-finance reform laws.
2002 Ron Paul 5:4
The damage this bill does to the First amendment is certainly a sufficient
reason to oppose it. However, as Professor Titus demonstrates in his
analysis of
the bill, the most important reason to oppose this bill is that the
Constitution
does not grant Congress the power to regulate campaigns. In fact,
article II
expressly authorizes the regulation of elections, so the omission of
campaigns
is glaring.
2002 Ron Paul 5:5
This legislation thus represents an attempt by Congress to fix a problem
created by excessive government intervention in the economy with
another
infringement on the peoples constitutional liberties. The real problem
is not
that government lacks power to control campaign financing, but that the
federal
government has excessive power over our economy and lives.
2002 Ron Paul 5:6
It is the power of the welfare-regulatory state which creates a tremendous
incentive to protect ones own interests by investing in
politicians. Since the problem is not a lack of federal laws, or rules
regulating campaign spending, more laws wont help. We hardly suffer
from too
much freedom. Any effort to solve the campaign finance problem with
more laws
will only make things worse by further undermining the principles of
liberty and
private property ownership.
2002 Ron Paul 5:7
Attempts to address the problems of special interest influence through new
unconstitutional rules and regulations address only the symptoms while
ignoring
the root cause of the problem. Tough enforcement of spending rules will
merely
drive the influence underground, since the stakes are too high and much
is to be
gained by exerting influence over government- legally or not. The more
open and
legal campaign expenditures are, the easier it is for voters to know
whos
buying influence from whom.
2002 Ron Paul 5:8
There is a tremendous incentive for every special interest group to influence
government. Every individual, bank, or corporation that does
business with
government invests plenty in influencing government. Lobbyists spend
over a
hundred million dollars per month trying to influence Congress.
Taxpayer dollars
are endlessly spent by bureaucrats in their effort to convince Congress
to
protect their own empires. Government has tremendous influence over the
economy
and financial markets through interest rate controls, contracts,
regulations,
loans, and grants. Corporations and others are forced to participate
in the process out of greed as well as self-defense- since thats the
way the
system works. Equalizing competition and balancing power- such as
between labor
and business- is a common practice. As long as this system remains in
place, the
incentive to buy influence will continue.
2002 Ron Paul 5:9
Many reformers recognize this, and either like the system or believe that
its futile to bring about changes. They argue that curtailing
influence is the
only option left, even if it involves compromising freedom of political
speech
by regulating political money.
2002 Ron Paul 5:10
Its naive to believe stricter rules will make a difference. If members of
Congress resisted the temptation to support unconstitutional
legislation to
benefit special interests, this whole discussion would be unnecessary.
Because
members do yield to the pressure, the reformers believe that more rules
regulating political speech will solve the problem.
2002 Ron Paul 5:11
The reformers argue that its only the fault of those trying to influence
government and not the fault of the members of Congress who yield to
the
pressure, or the system that generates the abuse. This allows members
to avoid
assuming responsibility for their own acts, and instead places the
blame on
those who exert pressure on Congress through the political process-
which is a
basic right bestowed on all Americans. The reformers argument is Stop
us
before we succumb to the special interest groups.
2002 Ron Paul 5:12
Politicians unable to accept this responsibility clamor for a system that
diminishes the need for them to persuade individuals and groups to
donate money
to their campaigns. Instead of persuasion, they endorse coercing
taxpayers to
finance campaigns.
2002 Ron Paul 5:13
This only changes the special interest groups that control government policy.
Instead of voluntary groups making their own decisions with their own
money,
politicians and bureaucrats dictate how political campaigns will be
financed.
Not only will politicians and bureaucrats gain influence over
elections, other
nondeserving people will benefit. Clearly, incumbents will greatly
benefit by
more controls over campaign spending- a benefit to which the reformers
will
never admit.
2002 Ron Paul 5:14
Mr. Speaker, the freedoms of the American people should not be restricted
because some politicians cannot control themselves. We need to get
money out of
government. Only then will money not be important in politics. Campaign
finance
laws, such as those before us today, will not make politicians more
ethical, but
they will make it harder for average Americans to influence Washington.
2002 Ron Paul 5:15
The case against this bill was eloquently made by Herb Titus in the paper
referenced above:
ACampaign-finance
reform is truly a wolf in sheeps clothing. Promising reform, it hides
incumbent
perquisites. Promising competition, it favors monopoly. Promising
integrity, it
fosters corruption. Real campaign-finance reform calls for a return to
Americas
original constitutional principles of limited and decentralized
governmental
power, thereby preserving the power of the people.
2002 Ron Paul 5:16
I urge my colleagues to listen to Professor Titus and reject this unconstitutional proposal. Instead, I hope my colleagues will work to
reduce
special interest influence in Washington and restore integrity to
politics by
reducing the federal government to its constitutional limits. I
would like
to take this opportunity to introduce the excellent article by Mr.
Titus into
the record:
2002 Ron Paul 5:17
2002 Ron Paul 5:18
Campaign-Finance Reform
A Constitutional Analysis
2002 Ron Paul 5:19
by Herbert W. Titus
2002 Ron Paul 5:20
-
Introduction
-
Congress Has No Constitutional Authority to Pass Any Campaign-Finance
2002 Ron Paul 5:21
Reform Legislation
-
Campaign-Finance Reform Violates Separation of Powers and Federalism
2002 Ron Paul 5:22
-
Campaign-Finance Reform Abridges the Freedom of Speech and the Press
-
Campaign-Finance Reform Abridges the Right of the People to Assemble
2002 Ron Paul 5:23
-
Conclusion
2002 Ron Paul 5:24
I. Introduction
2002 Ron Paul 5:25
To date, the legislative debate over campaign-finance reform has focused upon the First Amendment guarantee of freedom of speech, as
interpreted and applied by the courts. The constitutional issues,
however, are not limited to the First Amendment, neither are they
resolved by citation to
Buckley v. Valeo,
424 U.S. 1 (1976)
nor by the latest Supreme Court opinion, including the one handed down
on June 25, 2001 in
FEC v
.
Colorado Republican Federal
Campaign Committee
. To the contrary, pursuant to their oaths of
office, members of Congress have an independent duty to determine the
constitutionality of legislation before them and to decide, before ever
reaching the First Amendment, whether they have been vested by the
Constitution with
any
authority, at all, to regulate federal
election campaigns.
2002 Ron Paul 5:26
The original Constitution did not contain the Bill of Rights, including the First Amendment. Writing in
Federalist No. 84,
Alexander
Hamilton defended this omission, claiming that a bill of rights was not
needed in a republic with a written constitution expressly enumerating
the powers of government. Indeed, Hamilton observed a bill of rights
attached to such a constitution might well prove dangerous because
placing express limits upon the exercise of a power might give rise to
the assumption that such a power had been previously granted.
2002 Ron Paul 5:27
Hamilton’s warning has proved prophetic in the case of campaign-finance reform. As the debate swirls around the impact of such
reform measures on the freedom of speech and association, the question
whether Congress has the constitutional authority to regulate federal
election campaigns is being ignored. Yet, that question would have been
hotly debated and quickly answered in America’s founding era in light
of the constitutional text carefully circumscribing Congress’s
authority in relation to federal elections. (See Article I, Section 4,
Clause 1 and Article II, Section 1, Clause 4;
Federalist No. 60
and
Federalist No. 68,
I Story’s Commentaries on the
Constitution
,
Sections 814-826 and
II Story’s
Commentaries
, Sections 1453-75, 5th ed. 1891.)
2002 Ron Paul 5:28
Additionally, the issue of constitutional authority would have been examined, in the first instance, by Congress and the president
without their being bound by previous court opinions. It had already
been well established that each representative, each senator, and the
president and his cabinet had a constitutional duty, independent of the
judiciary, to determine the constitutionality of legislation before
them. As President Andrew Jackson observed, in his 1832 veto message
rejecting a bill extending the charter of the Bank of the United States:
2002 Ron Paul 5:29
It is maintained by the advocates of the bank that its constitutionality in all its features ought to be considered as settled
by precedent and by the decision of the Supreme Court. To this
conclusion I cannot assent. Mere precedent is a dangerous source of
authority...[and] the opinion of the Supreme Court...ought not to
control the coordinate authorities of this Government. The Congress,
the Executive, and the Court must each for itself be guided by its own
opinion of the Constitution. Each public officer who takes an oath to
support the Constitution swears that he will support it as he
understands it, and not as it is understood by others. It is as much
the duty of the House of Representatives, of the Senate, and of the
President to decide upon the constitutionality of any bill...presented
to them for passage...as it is of the supreme judges when it may be
brought before them for judicial decision.
2002 Ron Paul 5:30
It is in light of these principles, then, that the issue of constitutional authority to enact any campaign-finance reform bill is
addressed in sections II and III below, before reaching the First
Amendment issues raised by particular campaign-finance measures in
sections IV and V.
Furthermore, those issues are examined in
light of the constitutional duty of Congress to decide for itself
whether it has the constitutional authority to enact campaign-finance
reform legislation and whether any such legislation violates the First
Amendment, regardless of the opinion of the United States Supreme Court
in
Buckley v. Valeo,
424 U.S. 1 (1976) and its progeny,
including the high court’s most recent pronouncement on June 25, 2001.
2002 Ron Paul 5:31
II.Congress Has No Constitutional Authority to Pass Any Campaign-Finance Reform Legislation
2002 Ron Paul 5:32
According to Article I, Section 1 of the United States Constitution, Congress is a legislature of enumerated powers, having
only those powers herein granted. As a legislature of enumerated
powers, Congress may enact laws only for constitutionally authorized
purposes. (
McCulloch v. Maryland,
17 U.S., 4 Wheat. 316, 1819)
(Let the end be legitimate, and all means which are appropriate, which
are plainly adapted to that end which are not prohibited, are
constitutional.) The stated purpose of all campaign-finance reform
legislation, like the Federal Election Campaign Act that it amends, is
to reform the financing of campaigns for election to Federal office,
thereby preventing the corruption and the appearance of corruption in
government and equaliz[ing] the relative ability of all citizens to
affect the outcomes of elections. (
Buckley v. Valeo,
424 U.S.
1, 25-26, 1976) Congress has been granted no such power.
2002 Ron Paul 5:33
The threshold question concerning any campaign-finance reform bill is whether the Constitution has conferred upon Congress any authority
to regulate federal election
campaigns
. Such authority is not
found among any enumerated power conferred upon Congress. Therefore,
Congress may not justify any campaign-finance reform measure on the
grounds that its purpose is to reform the financing of campaigns for
federal office. Thus, campaign-finance reform laws may be
constitutionally justified only if enacted as a means to achieve some
other purpose that is constitutionally authorized. (
McCulloch v.
Maryland,
17 U.S., 4 Wheat. 316, 1819)
2002 Ron Paul 5:34
The Federal Election Campaign Act of 1971, as amended in 1974, presumed that the Constitution authorized Congress to regulate federal
election campaigns for the purposes of the prevention of corruption
and the appearance of corruption in government and of the equalization
of the relative ability of all citizens to affect the outcome of
elections. (
Buckley v. Valeo,
424 U.S. 1, 25-26, 1976)
According to the proponents of campaign-finance reform, both then and
now, Congress has power to regulate federal election campaigns because
it has the general power to regulate federal elections....
(
Id.,
424 U.S. at 13-14) A careful examination of the Constitution, as
it is written, uncovers no such broad power, but only a carefully
circumscribed one.
2002 Ron Paul 5:35
As for congressional elections, Article I, Section 4 limits Congress to the making of regulations prescribing the times, places
and manner of holding elections for senators and representatives. As
for the election of the president and vice president Article II,
Section 1 limits Congress only to determin[ing] the
time
of
choosing the [presidential] electors, and the day on which they shall
give their votes; which
day
shall be the same throughout the
United States. (Emphasis added.) As for the place and manner of the
selection of the presidential electors, and hence the president and
vice president of the United States, the Twelfth Amendment to the
Constitution determines the
place
and, according to Article II,
Section 1, the state legislatures choose the
manner
by which
the electors are chosen. (
Bush v. Gore
, 531 U.S. --, 148 L.Ed.2d
388, 2000)
2002 Ron Paul 5:36
Given these express restrictions upon congressional power over federal elections, it was not until the 1930s that Congress, with court
approval, began to assume broad powers over federal elections,
including the regulation of campaigns for the office of the president. (
Burroughs
v. United States,
290 U.S. 534, 1934) At the time of America’s
founding, and extending for a period of nearly 135 years, such was not
the case.
2002 Ron Paul 5:37
As for congressional elections, Alexander Hamilton observed, in
Federalist No. 60,
that congressional authority was expressly
restricted
to the regulation of the
times,
the
places
, the
manner
of elections, and did not, for example, extend to the qualifications
of voters. Likewise, Joseph Story noted that congressional authority
over federal elections was explicitly confined to regulations
concerning the mechanics and integrity of the election process itself,
and did not extend to the integrity of government generally or the
relative power of voters. (
I Story’s Commentaries on the Constitution
,
Section 826, 5th ed., 1891)
2002 Ron Paul 5:38
As for presidential elections, Hamilton noted that the detailed plan set forth in the original constitution was deliberately designed
to ensure that the president would not be elected according to rules
promulgated by Congress, lest the president be too dependent upon that
body. (
Federalist No. 68
) Likewise, Justice Story asserted that
both the original Constitution and the Twelfth Amendment immunized the
mode of election of the President and Vice-President from
congressional regulation, limiting congressional authority only to
setting the time of the election. (
II Story’s
Commentaries
,
Sections 1453-75, 5th ed., 1891)
2002 Ron Paul 5:39
In 1892, a unanimous Supreme Court rehearsed the history and text governing the election of the president and vice president, concluding
that the
manner
of selection of presidential electors was
placed absolutely and wholly with the legislatures of the several
states and that this power and jurisdiction of the State was so
framed that congressional and Federal influence might be excluded. (
McPherson
v. Blacker,
146 U.S. 1, 34-36, 1892) (See also
Bush v. Gore
,
supra.) Because the Constitution grants to Congress no authority to
regulate the manner of the election of the president and vice
president, it follows that Congress has no authority over presidential
and vice presidential election campaigns.
2002 Ron Paul 5:40
As for congressional regulation of the campaigns of candidates for the United States House of Representatives and United States Senate,
four justices of the United States Supreme Court, in 1921, struck down
a federal law limiting contributions and expenditures in congressional
elections, observing:
2002 Ron Paul 5:41
We find no support in reason or authority for the argument that because the offices were created by the Constitution, Congress has some
indefinite, undefined power over elections for Senators and
Representatives not derived from [Article I] Section 4.
(
Newberry
v. United States
, 256 U.S. 232, 249, 1921)
2002 Ron Paul 5:42
From this constitutional premise, these justices ruled that the authority to regulate the manner of holding... [elections] gives
no
right to control things that are prerequisites to elections or [that]
may affect their outcomes - voters, education, means of transportation,
health,
public discussion
, immigration, private animosities,
even the face and figure of the candidate.... (
Id.,
256 U.S.
at 257 [emphasis added])
Therefore, they concluded that
Congress had authority only to regulate congressional elections to
protect voters from fraud {
Ex parte Siebold,
100 U.S. 371,
382-88 (1880)}, from intimidation {
Ex Parte Yarbrough,
110 U.S.
660-62 (1884)} and from other acts designed to protect the integrity of
the election process, as such. (
Newberry v. United States, supra,
256
U.S. at 255)
2002 Ron Paul 5:43
This was the original understanding, as set forth in the constitutional text and as stated by Hamilton and Story. Congressional
regulation of political campaigns, beginning in the 1930s, disregards
the founding principle of limited federal authority. Instead, such
regulation is based upon the assumption that Congress is a legislature
of plenary power, rather than enumerated powers as stated in Article I,
Section 1.
2002 Ron Paul 5:44
(See
Burroughs v. United States, supra,
290 U.S. at 545.) Such precedents as these should be rejected, lest Congress overstep the
limited authority granted to it by the sovereign people of the United
States.
2002 Ron Paul 5:45
III. Campaign-Finance Reform Violates Separation of Powers and Federalism
2002 Ron Paul 5:46
Under the Constitution, Congress has no role in the manner by which the president and vice president are selected. In order to ensure
the independence of the president from Congress, the electors of the
president and vice president are state officers, governed exclusively
by the Constitution and by state law. (See
Bush v. Gore
,
supra.) All current campaign-finance measures, such as the Federal
Campaign Act of 1971, as amended in 1974, subvert these separation of
powers and federalism principles by imposing a national uniform rule
governing the conduct of election campaigns for president and
vice-president. They also undermine the federalism principle
underpinning the limited role of Congress in the governance of
elections of representatives and senators.
2002 Ron Paul 5:47
According to Article II, Section 1, the state legislatures, not Congress, determine the manner of the election of presidential
electors who, in turn, are governed by the Twelfth Amendment as to the
manner of the election of the president and vice president of the
United States. The only constitutionally prescribed role for the Senate
in that election process is to serve as an objective observer of the
final count of votes cast by the presidential electors. The House also
is limited to the role of an objective observer, unless on final count
of the electors’ votes, no person achieves a majority of votes for
president. Then, and only then, may the House intervene in the manner
of electing a president, casting one vote per state until a candidate
achieves a majority. As for the vice president, both houses of Congress
are limited to serving as objective observers of the final tally of
votes, except that the Senate plays the same role as the House if no
candidate for vice president receives a majority.
2002 Ron Paul 5:48
This detailed scheme limiting the role of Congress in the manner of electing the president and the vice president of the United States
was deliberately chosen by America’s founders to insulate the federal
executive branch from the legislative branch in order to ensure
independence of the former from the latter. As Alexander Hamilton put
it in
Federalist No. 68,
the Constitution entrusts the
selection of the president and vice president not to any
preestablished body, but to men chosen by the people for the special
purpose.... The electoral college was designed, therefore, as a buffer
between the people and Congress to guard against the risk of corruption
of the presidency by congressional participation in the election
process.
2002 Ron Paul 5:49
Thus, the electoral college system was designed to prevent corruption and the appearance of corruption of the offices of the
president and the vice president. That system was set up in such a way
as to deny to Congress any authority over the manner of selecting those
two officers, leaving the selection process to be exclusively and
absolutely determined by the legislatures of the several states. This
delegation to the several state legislatures necessarily precludes
Congress from imposing any uniform rule governing the election of the
president and the vice president. (See
McPherson v. Blacker,
146
U.S. 1, 1892.) By continuing the regulation of presidential election
campaigns as provided for in the Federal Election Campaign Act of 1971,
as amended in 1974, and by adding new regulations that extend to
candidates for the presidency and vice presidency, all current
campaign-finance reform measures subvert the constitutionally
prescribed decentralized manner by which the president and vice
president of the United States are selected.
2002 Ron Paul 5:50
By design and effect, such measures perpetuate the current regulations governing the selection of presidential and vice
presidential electors who are, according to the Constitution, state
officers, and not federal ones. (
In re Green,
134 U.S. 377,
1890) (Although the electors are appointed and act under and pursuant
to the Constitution of the United States, they are no more officers or
agents of the United States than are... the people of the States when
acting as electors of representatives in Congress.);
Ray v. Blair,
343 U.S. 214, 224-25 (1952) (The presidential electors exercise
a federal function in balloting for President and Vice-President but
they are not federal officers or agents any more than the state elector
who votes for congressmen.) Thus, all current campaign-finance reform
bills violate the principles of separation of powers and federalism
protecting the independence of the federal executive branch.
2002 Ron Paul 5:51
Additionally, campaign-finance regulations applied to the election of members of Congress also intrude upon the power of their electors
who, like presidential electors, are state officers. According to
Article I, Section 2 and the Seventeenth Amendment, the qualifications
of the electors of United States representatives and senators are set
by state law, not by federal law. (
In re Green, supra,
134 U.S.
379;
Ray v. Blair, supra,
343 U.S. at 224-25) The Constitution
did not grant to Congress any power to determine the eligibility of
their electors, and thus insulated those electors from having their
power reduced, or otherwise affected, by their representatives in
Congress.
2002 Ron Paul 5:52
Although no current campaign-finance reform bill sets the qualifications of electors for Congress, each one does, like its
predecessors, impose a uniform system of campaign rules designed to
govern the power to be exercised by citizens at the voting booth. Some
of the measures, like the McCain-Feingold bill passed in the Senate and
Shays-Meehan bill pending before the House, extend that uniform system,
exercising power over the state, district and local committees of
political parties as well as the national committees of those parties.
While such laws do not change state laws governing voter eligibility,
as such, they do change the power exercised by those eligible voters.
Indeed, one of the stated purposes of campaign reform legislation is to
equalize the power of citizens to affect the outcome of elections. (
Buckley
v. Valeo, supra,
424 U.S. at 25-26) Such a purpose, however, is
illegitimate. It imposes a national uniform standard limiting the power
of voters to the detriment of a constitutionally prescribed system of
state diversity.
2002 Ron Paul 5:53
In his
Commentaries on the Constitution
, Justice Story observed that the framers deliberately chose not to impose a standard
of equality among the voters of the several states, but rather to
accommodate a mixed system, embracing and representing and combining
distinct interests, classes and opinions. (
I Story
,
Commentaries
on the Constitution
Sections 583-84, 5th ed., 1891) More recently,
in a column published in the September 5, 1999, issue of
The
Washington Post,
columnist George Will reminded his fellow
Americans that the Constitution does not authorize
one
federal
election, but many. All current campaign-finance reform measures
disregard this decentralized federal structure governing elections to
Congress and to the presidency and, for that reason, are
unconstitutional.
2002 Ron Paul 5:54
IV. Campaign-Finance Reform Abridges the Freedom of Speech and the Press
2002 Ron Paul 5:55
At the heart of campaign-finance reform legislation, is the desire of
Congress to eliminate even the appearance of corruption to the end
that the people have confidence in the current system of representative
government. (
Buckley v. Valeo,
424 U.S. 1, 27, 1976) At the
heart of the
guarantee of the freedom of speech is the prohibition against any law
designed
to protect the reputation of the government to the end that the people
have
confidence in their current governors. As seditious libel laws
protecting the
reputation of the government unconstitutionally abridge the freedom of
speech so
also do campaign-finance reform laws.
2002 Ron Paul 5:56
In
Buckley v. Valeo,
424 U.S. 1, 27-28 (1976), the Supreme Court
recognized that the contribution and other limitations imposed by the
Federal
Election Campaign Act of 1971 could
not
be justified on the
grounds that
they prevented only the most blatant and specific attempts of those
with
money to influence governmental action. Rather, the court found, that
such
limitations served a much broader purpose, namely, the prevention of
the
appearance of corruption to the end that confidence in the system of
representative government is not to be eroded.... (
Id.,
424
U.S. at
27)
2002 Ron Paul 5:57
Since
Buckley,
the proponents of ever more stringent limits upon
campaign contributions have emphasized that such laws are needed
not
to
prevent actual government corruption, but to eliminate all appearances
of such
corruption. Indeed, these proponents have contended that the
elimination of the
appearance of corruption is compelling because, if the appearance is
allowed to
remain, people will lose faith in our current system of government and
their
confidence in their elected leaders, such faith and confidence lying at
the
heart of a healthy democracy.
2002 Ron Paul 5:58
This same theme has been struck by leading proponents of reform in the House
of Representatives. Four years ago, House Minority Leader Richard
Gephardt urged
the adoption of more restrictive measures for healthy campaigns in a
healthy democracy even at the expense of the freedom of speech.
(Gibbs,
The Wake-Up Call,
Time,
p. 25, Feb. 3, 1997) Representative
Gephardt has not changed his mind, continuing his adamant support of
the
speech-restrictive Shays-Meehan bill to this day. (Mitchell, 2
Election
Bills Go to the House Floor, The New York Times , June 29, 2001)
Indeed,
Senator John McCain has not changed his mind either. Having urged in
1997 the
enactment of a law placing limits on public policy organizations’
political
advertising in the waning days of an election campaign, and thus
calling off the
political attack dogs (NBC News, Meet the Press, Feb. 3, 1997),
Senator McCain is waging an all-out war to make sure that his version
of
campaign-finance reform passes the House. (Shenon, House Critics Call
McCain a Bully on Campaign Bill, The New York Times, July 9, 2001) As
McCain’s Democrat colleague, Russell Feingold, put it upon the
introduction of
Shays-Meehan in the Senate in 1999: The prevalence – no – the
dominance of money in our system of elections and our legislature
will…cause
them to crumble. (Cong. Rec. S422, 423, daily ed., Jan. 19, 1999)
2002 Ron Paul 5:59
What these advocates of campaign-finance reform really want is to protect
incumbent office holders from the people. Under the guise of preserving
the
present governmental structure, they support campaign-finance reform
measures
that are nothing more than incumbent-protection legislation that
would make entrenched politicians even less responsive to the people.
(See e.g.,
James C. Miller,
Monopoly Politics
88-101, Hoover Inst. 1999.)
2002 Ron Paul 5:60
Such contentions and consequences as these undermine the foundation of
America’s constitutional republic. Our nation’s continued existence -
its
sovereignty - is not embodied in its current system of government or in
its
current elected and appointed leaders. Instead, the civil sovereignty
of the
nation resides in the people. To preserve popular sovereignty, the
First
Amendment secures to the people the freedom of speech, which, in turn,
protects
the people from any legislation the purpose of which is to preserve the
current
government and its leaders.
2002 Ron Paul 5:61
Twice in America’s history, the sovereignty of the people came under direct
attack from Congress. Both times the attack came in the form of laws
prohibiting
seditious libel (writing or speaking in such a way as to bring the
government into ridicule or disrepute), and thereby threatening the
current
system of government and its leaders. Finally, in 1964, the United
States
Supreme Court put an end to seditious libel, ruling that the freedom of
speech
guarantees a nation in which debate on the public issues should be
uninhibited, robust and wide-open, and that it may well include
vehement,
caustic, and sometimes unpleasantly sharp attacks on government and
public
officials. (
New York Times v. Sullivan,
376 U.S. 254, 270,
1964)
2002 Ron Paul 5:62
Had the court applied the same standard to the Campaign Reform Act of 1971,
that law, too, would have been cast into the dustbin of history. For,
campaign-finance reform laws - like seditious libel laws - exist solely
to
protect the present government and her leaders from the people. While
this goal
may be permissible in England where the Parliament embodies the
sovereignty of
the nation, it has no place in America where, as James Madison put it
in the
1800 Virginia Resolutions in opposition to the Alien and Sedition Act
of 1798,
the people, not the government, possess absolute sovereignty.
2002 Ron Paul 5:63
Campaign-finance reform also constitutes a direct attack on the First
Amendment freedom of the press. By giving politicians and their
appointed
bureaucrats the right to decide what the people can say about them in
the heat
of an election campaign, as McCain-Feingold and Shays-Meehan do with
respect to
issue advertising in the closing weeks of a campaign, these so-called
reformers
reject the very idea of a republican form of government, granting to
the
government censorial power over the people, instead of preserving
the censorial power of the people over their government. (See New York
Times v.
Sullivan, supra, 376 U.S. at 275.)
2002 Ron Paul 5:64
Such intrusions into the campaign process put the government into the role of
editor of campaign literature, a role that is absolutely forbidden to
the
government by the freedom of the press. (
Miami Herald Tribune v.
Tornillo,
418
U.S. 241, 258, 1974) Indeed, if the Supreme Court would apply the same
principle
to election-campaign literature that it has applied to election
editorials and
stories carried by newspapers, all campaign-finance reform legislation
would be
clearly unconstitutional. Not only do all campaign-finance reform
measures
transfer editorial control over an election campaign from the people to
the
government, but they also continue the unconstitutional licensing
system of the
Federal Election Commission established by the Federal Election
Campaign Act of
1971. In order to engage in a campaign for federal office, a candidate
must
register and report to the commission. Anyone who does not meet the
commission’s
registration and reporting rules is denied the right to participate and
is
subject not only to civil and criminal penalties, but to an injunction.
Such a
regulatory scheme strikes at the very heart of the freedom of the press
which,
as Sir William Blackstone wrote in 1769:
2002 Ron Paul 5:65
The liberty of the press...consists of laying...no previous restraints on publications....
Every freeman
has the undoubted
right to lay what sentiments he pleases before the public: to forbid
this is to destroy the freedom of the press.
2002 Ron Paul 5:66
(IV W. Blackstone,
Commentaries on the Laws of England
151-52,1769 [emphasis added])
2002 Ron Paul 5:67
Campaign-finance reform, then, is not progressive, but reactive, turning the
clock back to the days of the English Star Chamber that enforced the
King’s
rules governing the conduct of elections for the ostensible purpose of
keeping
his realm free of moral and political corruption. (
Sources of Our
Liberties
130,
242, Perry, ed., American Bar Found., 1978) A free nation may only be
preserved
when the people have the liberty of the press to censor their own
speech about
the government and about candidates for governmental office, not when
the
government has censorship power of the people, as campaign-finance
reform
inevitably dictates.
2002 Ron Paul 5:68
V. Campaign-Finance Reform Abridges the Right of the People to Assemble
2002 Ron Paul 5:69
The right of the people to assemble is the right of the people to associate
freely together to consult for the common good, subject only to the
requirement
that their association be peaceable. Any law that is not designed to
keep the physical peace of the community is, therefore,
unconstitutional. No
campaign-finance reform measure has ever been designed to keep the
physical peace; rather, each is designed to keep the political
peace; a constitutionally impermissible goal abridging the right of
the
people to assemble.
2002 Ron Paul 5:70
Since Watergate, Congress has been scrambling to purify the political process in order to restore public confidence in the federal
government. Campaign-finance reform has been one of the centerpieces of
this
purification effort. Two central goals have dominated this reform
effort: (1) to
limit the amounts that any one person or entity may contribute to an
election
campaign; (2) to force disclosure of the identity of those
contributors. Both of
these aims violate the First Amendment right of the people to assemble.
2002 Ron Paul 5:71
At the heart of the right of the people to assemble is the right of the
people to choose how they are going to associate with one another for
the
‘common advancement of political beliefs.’ (
Democratic Party v.
Wisconsin,
450 U.S. 107, 121-22, 1981) This right extends to
associations of
people for the purpose of electing persons to federal office who share
those
political beliefs. (
Buckley v. Valeo,
424 U.S. 1, 57, 1976)
Indeed, as
Justice Clarence Thomas recently observed: Political associations
allow
citizens to pool their resources and make their advocacy more effective
and such
efforts are fully protected by the First Amendment. (
Colo. Rep.
Fed.
Camp. Comm. v. FEC,
518 U.S. 604, 135 Led2d 795, 818, 1996,
Thomas, J.,
concurring in the judgment and dissenting)
2002 Ron Paul 5:72
Had the Supreme Court applied this principle consistently in its review of
the Federal Election Campaign Act of 1971, it would have held that the
individual contribution limits of that act violated the
constitutionally
guaranteed freedom of association. As Justice Thomas has pointed out:
If
an individual is limited in the amount of resources he can contribute
to...a
pool, he is certainly limited in his ability to associate for the
purposes of
effective advocacy. (
Id.,
135 L.Ed.2d at 819) Instead, the
court
has attempted to distinguish between issue advocacy - where the
right of the people to associate must remain unfettered - and express
advocacy for or against individual candidates - where the right of the
people to associate may be limited.
2002 Ron Paul 5:73
Both McCain-Feingold and Shays-Meehan exploit this distinction in their
attempt to muzzle political advertisements in the final weeks of an
election
campaign, claiming that issue advocacy becomes express candidate
advocacy when
conducted during the crucial weeks before election day. In so doing,
both bills
seriously undermine the people’s right to choose for themselves how
they will
associate to advance or defeat certain measures or to promote specific
principles of public policy. Constraining the people who speak out on
the issues
in conjunction with an election campaign may make for a more orderly
political process, but people are not horses or mules to be hooked up
to the
political bandwagons of government-subsidized incumbent politicians.
Additionally, limits on so-called soft money to political parties
are really designed to place incumbent office holders in control of the
political parties whose name they sport. By placing controls on how
political
parties may raise and spend money, independent politicians like John
McCain seek to transmute America’s political parties into political
eunuchs,
impotent to affect the outcome of any election.
2002 Ron Paul 5:74
Compounding these intrusions upon the people’s right to choose how and with
whom they will associate to advance their political agenda, all
campaign-finance
reform measures depend upon forced disclosure of the names and
addresses of even
the smallest contributor to an election campaign. Such required public
disclosure hearkens back to the days when the English monarchy required
the
publication of the names and addresses of all printers of all
publications
circulated throughout the realm. Requiring disclosure of the names of
contributors to federal election campaigns departs from an American
tradition
and practice that dates back to the founding of the nation and from a
long line
of cases affording constitutional protection of anonymity in
associative
relationships. (
McIntyre v. Ohio,
514 U.S. 334, 1995;
NAACP
v.
Alabama,
357 U.S. 449, 1958)
Forced divulgence of the
names of
contributors to federal election campaigns exposes people not only to
retaliation by employers and union leaders, whose political choices are
not the
same as their employees and their members, but it also exposes people
who
support challengers to the inevitable cold shoulder of a re-elected
incumbent. (
Buckley
v. Valeo, supra,
424 U.S. at 237,
Burger, C.J., dissenting)
2002 Ron Paul 5:75
Keeping the political peace, as campaign-finance reform is designed to do,
exacts a high price, costing the people their precious liberty of
choosing how
much energy and resources they wish to devote to politics. While full
freedom of
association, including anonymity, risks corruption of the political
process,
nothing is more corrosive of that process than placing election
campaigns in the
discretionary hands of unelected bureaucrats. (Miller,
Monopoly
Politics
95-100, 1999)
2002 Ron Paul 5:76
VI. Conclusion
2002 Ron Paul 5:77
Campaign-finance reform is truly a wolf in sheep’s clothing. Promising
reform, it hides incumbent perquisites. Promising competition, it
favors
monopoly. Promising integrity, it fosters corruption. Real
campaign-finance
reform calls for a return to America’s original constitutional
principles of
limited and decentralized governmental power, thereby preserving the
power of
the people.
2002 Ron Paul Chapter 6
http://www.house.gov/paul/congrec/congrec2002/cr021402.htm
Congressman Ron Paul
U.S. House of Representatives
February 14, 2002
Introduction of the Monetary Freedom and Accountability Act
2002 Ron Paul 6:1
Mr. Speaker, I rise to introduce the Monetary Freedom and Accountability Act.
This simple bill takes a step toward restoring Congress constitutional
authority over U.S. monetary policy by requiring congressional approval
before
the President or the Treasury secretary buys or sells gold.
2002 Ron Paul 6:2
Federal dealings in the gold market have the potential to seriously disrupt
the free market by either artificially inflating or deflating the price
of gold.
Given golds importance to Americas (and the worlds) monetary system,
any
federal interference in the gold market will have ripple effects
through the
entire economy. For example, if the government were to intervene to
artificially
lower the price of gold, the result would be to hide the true effects
of an
inflationary policy until the damage was too severe to remain out of
the public
eye.
2002 Ron Paul 6:3
By artificially deflating the price of gold, federal intervention in the gold
market can reduce the values of private gold holdings, adversely
affecting
millions of investors. These investors rely on their gold holdings to
protect
them from the effects of our misguided fiat currency system. Federal
dealings in
gold can also adversely affect those countries with large gold mines,
many of
which are currently ravished by extreme poverty. Mr. Speaker, restoring
a
vibrant gold market could do more than any foreign aid program to
restore
economic growth to those areas.
2002 Ron Paul 6:4
While the Treasury denies it is dealing in gold, the Gold Anti-Trust Action
Committee (GATA) has uncovered evidence suggesting that the Federal
Reserve and
the Treasury, operating through the Exchange-Stabilization Fund and in
cooperation with major banks and the International Monetary Fund, have
been
interfering in the gold market with the goal of lowering the price of
gold. The
purpose of this policy has been to disguise the true effects of the
monetary
bubble responsible for the artificial prosperity of the 1990s, and to
protect
the politically-powerful banks that are heavy invested in gold
derivatives. GATA
believes federal actions to drive down the price of gold help protect
the
profits of these banks at the expense of investors, consumers, and
taxpayers
around the world.
2002 Ron Paul 6:5
GATA has also produced evidence that American officials are involved in gold
transactions. Alan Greenspan himself referred to the federal
governments power
to manipulate the price of gold at hearings before the House Banking
Committee
and the Senate Agricultural Committee in July, 1998: Nor can private
counterparts restrict supplies of gold, another commodity whose
derivatives are
often traded over-the-counter, where
central banks stand ready to
lease gold
in increasing quantities should the price rise
. [Emphasis added].
2002 Ron Paul 6:6
Mr. Speaker, in order to allow my colleagues to learn more about this issue,
I am enclosing All that Glitters is Not Gold by Kelly Patricia
OMeara, an investigative reporter from
Insight
magazine. This
article
explains in detail GATAs allegations of federal involvement in the
gold market.
2002 Ron Paul 6:7
Mr. Speaker, while I certainly share GATAs concerns over the effects of
federal dealings in the gold market, my bill in no way interferes with
the
ability of the federal government to buy or sell gold. It simply
requires that
before the executive branch engages in such transactions, Congress has
the
chance to review it, debate it, and approve it.
2002 Ron Paul 6:8
Given the tremendous effects on the American economy from federal dealings in
the gold market, it certainly is reasonable that the peoples
representatives
have a role in approving these transactions, especially since Congress
has a
neglected but vital constitutional role in overseeing monetary policy.
Therefore, I urge all my colleagues to stand up for sound economics,
open
government, and Congress constitutional role in monetary policy by
cosponsoring
the Monetary Freedom and Accountability Act.
2002 Ron Paul 6:9
All That Glitters Is Not Gold
By Kelly Patricia OMeara
Insight Magazine
March 4, 2002, edition
2002 Ron Paul 6:10
Even though Enron employees and the companys accounting firm, Arthur
Andersen, have destroyed mountains of documents, enough information
remains in
the ruins of the nations largest corporate bankruptcy to provide a
clear
picture of what happened to wreck what once was the seventh-largest
U.S.
corporation.
2002 Ron Paul 6:11
Obfuscation, secrecy, and accounting tricks appear to have catapulted the
Houston-based trader of oil and gas to the top of the Fortune 100, only
to be
brought down by the same corporate chicanery. Meanwhile, Wall Street
analysts
and the federal governments top bean counters struggle to convince the
nation
that the Enron crash is an isolated case, not in the least reflective
of how
business is done in corporate America.
2002 Ron Paul 6:12
But there are many in the world of high finance who arent buying the
official line and warn that Enron is just the first to fall from a
shaky house
of cards.
2002 Ron Paul 6:13
Many analysts believe that this problem is nowhere more evident than at the
nations bullion banks, and particularly at the House of Morgan (J.P.
Morgan
Chase). One of the worlds leading banking institutions and a major
international bullion bank, Morgan Chase has received heavy media
attention in
recent weeks both for its financial relationships with bankrupts Enron
and
Global Crossing Ltd. as well as the financial collapse of Argentina.
2002 Ron Paul 6:14
It is no secret that Morgan Chase was one of Enrons biggest lenders,
reportedly losing at least $600 million and, perhaps, billions. The
banking
giants stock has gone south, and management has been called before its
shareholders to explain substantial investments in highly speculative
derivatives
C hidden
speculation of
the sort that overheated and blew up on Enron.
2002 Ron Paul 6:15
In recent years Morgan Chase has invested much of its capital in derivatives,
including gold and interest-rate derivatives, about which very little
information is provided to shareholders. Among the information that has
been
made available, however, is that as of June 2000, J.P. Morgan reported
nearly
$30 billion of gold derivatives and Chase Manhattan Corp., although
merged with
J.P. Morgan, still reported separately in 2000 that it had $35 billion
in gold
derivatives. Analysts agree that the derivatives have exploded at this
bank and
that both positions are enormous relative to the capital of the bank
and the
size of the gold market.
2002 Ron Paul 6:16
It gets worse. J.P. Morgans total derivatives position reportedly now stands
at nearly $29 trillion, or three times the U.S. annual gross domestic
product.
Wall Street insiders speculate that if the gold market were to rise,
Morgan
Chase could be in serious financial difficulty because of its short
positions in gold. In other words, if the price of
2002 Ron Paul 6:17
gold were to increase substantially, Morgan Chase and other bullion banks
that are highly leveraged in gold would have trouble covering their
liabilities.
One financial analyst, who asked not to be identified, explained the
situation
this way: Gold is borrowed by Morgan Chase from the Bank of England at
1
percent interest and then Morgan Chase sells the gold on the open
market, then
reinvests the proceeds into interest-bearing vehicles at maybe 6
percent.
2002 Ron Paul 6:18
At some point, though, Morgan Chase must return the borrowed gold to the Bank
of England, and if the price of gold were significantly to increase
during any
point in this process, it would make it prohibitive and potentially
ruinous to
repay the gold.
2002 Ron Paul 6:19
Bill Murphy, chairman of the Gold Anti-Trust Action Committee, a nonprofit
organization that researches and studies what he calls the gold
cartel (J.P. Morgan Chase, Deutsche Bank, Citigroup, Goldman Sachs,
Bank
for International Settlements (BIS), the U.S. Treasury, and the Federal
Reserve), and owner of www.LeMetropoleCafe.com, tells Insight that
Morgan
Chase and other bullion banks are another Enron waiting to happen.
Murphy
says, Enron occurred because the nature of their business was
obscured,
there was no oversight and someone was cooking the books. Enron was
deceiving
everyone about their business operations
C
and the same thing is happening with the gold and bullion banks.
2002 Ron Paul 6:20
According to Murphy, The price of gold always has been a barometer used
by many to determine the financial health of the United States. A
steady gold
price usually is associated by the public and economic analysts as an
indication
or a reflection of the stability of the financial system. Steady gold;
steady
dollar. Enron structured a financial system that put the company at
risk and
eventually took it down. The same structure now exists at Morgan Chase
with
their own interest-rate/gold-derivatives position. There is very little
information available about its position in the gold market and, as
with the
case of Enron, it could easily bring them down.
2002 Ron Paul 6:21
In December 2000, attorney Reginald H. Howe, a private investor and proprietor of the Website www.goldensextant.com, which reports on gold,
filed a
lawsuit in the U.S. District Court in Boston. Named as defendants were
J.P.
Morgan & Co., Chase Manhattan Corp., Citigroup Inc., Goldman Sachs
Group
Inc., Deutsche Bank, Lawrence Summers (former secretary of the
Treasury),
William McDonough (president of the Federal Reserve Bank of New York),
Alan
Greenspan (chairman of the Board of Governors of the Federal Reserve
System),
and the BIS.
2002 Ron Paul 6:22
Howes claim contends that the price of gold has been manipulated since 1994
by conspiracy of public officials and major bullion banks, with three
objectives: 1) to prevent rising gold prices from sounding a warning on
U.S.
inflation; 2) to prevent rising gold prices from signaling weakness in
the
international value of the dollar; and 3) to prevent banks and others
who have
funded themselves through borrowing gold at low interest rates and are
thus
short physical gold from suffering huge losses as a consequence of
rising gold
prices.
2002 Ron Paul 6:23
While all the defendants flatly deny participation in such a scheme, Howes
case is being heard. Howe tells Insight he has provided the court with
very
compelling evidence to support his claim, including sworn testimony by
Greenspan
before the House Banking Committee in July 1998. Greenspan assured the
committee, Nor can private counterparties restrict supply of gold,
another
commodity whose derivatives are often traded over the counter, where
central
banks stand ready to lease gold in increasing quantities should the
price
rise. Howe and other gold bugs cite this as a virtual public
announcement that the price of gold had been and would continue to be
controlled if necessary.
2002 Ron Paul 6:24
According to Howe, There is a great deal of evidence, but this is a very complicated issue. The key, though, is the short position of the
banks and
their gold derivatives. The central banks have leased gold for low
returns to
the bullion banks for the purpose of keeping the price of gold low.
Greenspans
remarks in 1998 explain how the price of gold has been suppressed at
times when
it looked like the price of gold was increasing.
2002 Ron Paul 6:25
Furthermore, Howes complaint also cites remarks made privately by Edward
George, governor of the Bank of England and a director of the BIS, to
Nicholas
J. Morrell, chief executive of Lonmin Plc: We looked into the abyss if
the
gold price rose further. A further rise would have taken down one or
several
trading houses, which might have
2002 Ron Paul 6:26
taken down all the rest in their wake. Therefore, at any price, at any cost,
the central banks had to quell the gold price, manage it. It was very
difficult
to get the gold price under control, but we have now succeeded. The
U.S. Fed was
very active in getting the gold price down. So was the U.K. [United
Kingdom].
2002 Ron Paul 6:27
Whether the Fed and others in the alleged gold cartel have conspired to suppress the price of gold may, in the end, be secondary
to the
growing need for financial transparency. Wall Street insiders agree
that as long
as regulators, analysts, accountants, and politicians can be lobbied
and
corrupted to permit special privileges, there will be more
Enron-size failures.
2002 Ron Paul 6:28
Securities and Exchange Commission Chairman Harvey L. Pitt, well aware of the
seriousness of these problems, recently testified before the House
Financial
Services Committee that it is my hope there are not other Enrons out
there, but Im not willing to rely on hope.
2002 Ron Paul 6:29
Robert Maltbie, chief executive officer of www.stockjock.com and an independent analyst, long has followed Morgan Chase. He tells Insight
that
there are a lot of things going on in these companies, but we dont
know
for sure because much of what theyre doing is off the balance sheet.
The market
is scared and crying out to see whats under the hood. Like Enron, much
of what
the banks are doing is off the balance sheet, and its a time bomb
ticking as we
speak.
2002 Ron Paul 6:30
Just what would happen if a bank the size of Morgan Chase were unable to meet
its financial obligations? Its tough to go there, Maltbie says,
because it could shake the financial markets to the core.
2002 Ron Paul Chapter 7
http://www.house.gov/paul/congrec/congrec2002/cr022602.htm
Congressman Ron Paul
U.S. House of Representatives
February 26, 2002
Before We Bomb Iraq...
2002 Ron Paul 7:1
The war drums are beating,
louder and
louder. Iraq, Iran, and North Korea have been forewarned. Plans have
been laid
and, for all we know, already initiated, for the overthrow and
assassination of
Saddam Hussein.
2002 Ron Paul 7:2
Theres been talk of sabotage,
psychological warfare, arming domestic rebels, killing Hussein, and
even an
outright invasion of Iraq with hundreds of thousands of US troops. All
we hear
about in the biased media is the need to eliminate Saddam Hussein, with
little
regard for how this, in itself, might totally destabilize the entire
Middle East
and Central Asia. It could, in fact, make the Iraq problem much
worse.
2002 Ron Paul 7:3
The assumption is that, with
our
success in Afghanistan, we should now pursue this same policy against
any
country we choose, no matter how flimsy the justification. It hardly
can be
argued that it is because authoritarian governments deserve our wrath,
considering the number of current and past such governments that we
have not
only tolerated but subsidized.
2002 Ron Paul 7:4
Protestations from our Arab
allies are
silenced by our dumping more American taxpayer dollars upon them.
2002 Ron Paul 7:5
European criticism that the
United
States is now following a unilateral approach is brushed off, which
only causes
more apprehension in the European community. Widespread support from
the eager
media pumps the public to support the warmongers in the administration.
2002 Ron Paul 7:6
The pro and cons of how
dangerous
Saddam Hussein actually is are legitimate. However, it is rarely
pointed out
that the CIA has found no evidence whatsoever that Iraq was involved in
the
terrorist attacks of 9/11.
2002 Ron Paul 7:7
Rarely do we hear that Iraq
has never
committed any aggression against the United States. No one in the media
questions our aggression against Iraq for the past 12 years by
continuous
bombing and imposed sanctions responsible for the deaths of hundreds of
thousands of children.
2002 Ron Paul 7:8
Iraqs defense of her homeland
can
hardly be characterized as aggression against those who rain bombs down
on them.
We had to go over 6,000 miles to pick this fight against a third-world
nation
with little ability to defend itself.
2002 Ron Paul 7:9
Our policies have actually
served to
generate support for Saddam Hussein, in spite of his brutal control of
the Iraq
people. He is as strong today- if not stronger- as he was prior to the
Persian
Gulf War 12 years ago.
2002 Ron Paul 7:10
Even today, our jingoism
ironically is
driving a closer alliance between Iraq and Iran, two long-time bitter
enemies.
2002 Ron Paul 7:11
While we trade with, and
subsidize to
the hilt, the questionable government of China, we place sanctions on
and refuse
to trade with Iran and Iraq, which only causes greater antagonism. But
if the
warmongers goal is to have a war, regardless of international law and
the
Constitution, current policy serves their interests.
2002 Ron Paul 7:12
Could it be that only through
war and
removal of certain governments we can maintain control of the oil in
this
region? Could it be all about oil, and have nothing to do with US
national
security?
2002 Ron Paul 7:13
Too often when we dictate who
will lead
another country, we only replace one group of thugs with another- as we
just did
in Afghanistan- with the only difference being that the thugs we
support are
expected to be puppet-like and remain loyal to the US, or else.
2002 Ron Paul 7:14
Although bits and pieces of
the
administrations plans to wage war against Iraq and possibly Iran and
North
Korea are discussed, we never hear any mention of the authority to do
so. It
seems that Tony Blairs approval is more important than the approval of
the
American people!
2002 Ron Paul 7:15
Congress never complains about
its lost
prerogative to be the sole declarer of war. Astoundingly, Congress is
only too
eager to give war power to our presidents through the back door, by the
use of
some fuzzy resolution that the president can use as his justification.
And once
the hostilities begin, the money always follows, because Congress fears
criticism for not supporting the troops. But putting soldiers in
harms way without proper authority, and unnecessarily, can hardly be
the way to
support the troops.
2002 Ron Paul 7:16
Let it be clearly understood-
there is
no authority to wage war against Iraq without Congress passing a
Declaration of
War. HJ RES 65, passed in the aftermath of 9/11, does not even suggest
that this
authority exists. A UN Resolution authorizing an invasion of Iraq, even
if it
were to come, cannot replace the legal process for the United States
going to
war as precisely defined in the Constitution. We must remember that a
covert war
is no more justifiable, and is even more reprehensible.
2002 Ron Paul 7:17
Only tyrants can take a nation
to war
without the consent of the people. The planned war against Iraq without
a
Declaration of War is illegal. It is unwise because of many unforeseen
consequences that are likely to result. It is immoral and unjust,
because it has
nothing to do with US security and because Iraq has not initiated
aggression
against us.
2002 Ron Paul 7:18
We must understand that the
American
people become less secure when we risk a major conflict driven by
commercial
interests and not constitutionally authorized by Congress. Victory
under these
circumstances is always elusive, and unintended consequences are
inevitable.
2002 Ron Paul Chapter 8
http://www.house.gov/paul/congrec/congrec2002/cr022702.htm
Congressman Ron Paul
U.S. House of Representatives
February 27, 2002
Statement on Ending US Membership in the IMF
2002 Ron Paul 8:1
Mr. Speaker, I rise to introduce
legislation to withdraw the United States from the Bretton Woods
Agreement and
thus end taxpayer support for the International Monetary Fund (IMF).
Rooted in a
discredited economic philosophy and a complete disregard for
fundamental
constitutional principles, the IMF forces American taxpayers to
subsidize large,
multinational corporations and underwrite economic destruction around
the globe.
This is because the IMF often uses the $37 billion line of credit
provided to it
by the American taxpayers to bribe countries to follow destructive,
statist
policies.
2002 Ron Paul 8:2
For example, Mr. Speaker, the
IMF
played a major role in creating the Argentine economic crisis. Despite
clear
signs over the past several years that the Argentine economy was in
serious
trouble, the IMF continued pouring taxpayer-subsidized loans with an
incredibly
low interest rate of 2.6% into the country. In 2001, as Argentinas
fiscal
position steadily deteriorated, the IMF funneled over 8 billion dollars
to the
Argentine government!
2002 Ron Paul 8:3
According to Congressman Jim
Saxton,
Chairman of the Joint Economic Committee, this Continued lending over
many
years sustained and subsidized a bankrupt Argentine economic policy,
whose
collapse is now all the more serious. The IMFs generous subsidized
bailouts
lead to moral hazard problems, and enable shaky governments to pressure
the IMF
for even more funding or risk disaster.
2002 Ron Paul 8:4
Argentina is just the latest
example of
the folly of IMF policies. Only four years ago the world economy was
rocked by
an IMF-created disaster in Asia. The IMF regularly puts the taxpayer on
the hook
for the mistakes of the big banks. Oftentimes, Mr. Speaker, IMF funds
end up in
the hands of corrupt dictators who use our taxpayer-provided largesse
to prop up
their regimes by rewarding their supporters and depriving their
opponents of
access to capital.
2002 Ron Paul 8:5
If not corrupt, most IMF
borrowers are
governments of countries with little economic productivity. Either way,
most
recipient nations end up with huge debts that they cannot service,
which only
adds to their poverty and instability. IMF money ultimately corrupts
those
countries it purports to help, by keeping afloat reckless political
institutions
that destroy their own economies.
2002 Ron Paul 8:6
IMF policies ultimately are
based on a
flawed philosophy that says the best means of creating economic
prosperity is
through government-to-government transfers. Such programs cannot
produce growth,
because they take capital out of private hands, where it can be
allocated to its
most productive use as determined by the choices of consumers in the
market, and
place it in the hands of politicians. Placing economic resources in the
hands of
politicians and bureaucrats inevitably results in inefficiencies,
shortages, and
economic crises, as even the best intentioned politicians cannot know
the most
efficient use of resources.
2002 Ron Paul 8:7
In addition, the IMF violates
basic
constitutional and moral principles. The federal government has no
constitutional authority to fund international institutions such as the
IMF.
Furthermore, Mr. Speaker, it is simply immoral to take money from
hard-working
Americans to support the economic schemes of politically-powerful
special
interests and third-world dictators.
2002 Ron Paul 8:8
In all my years in Congress, I
have
never been approached by a taxpayer asking that he or she be forced to
provide
more subsidies to Wall Street executives and foreign dictators. The
only
constituency for the IMF is the huge multinational banks and
corporations. Big
banks used IMF funds- taxpayer funds- to bail themselves out from
billions in
losses after the Asian financial crisis. Big corporations obtain
lucrative
contracts for a wide variety of construction projects funded with IMF
loans.
Its a familiar game in Washington, with corporate welfare disguised as
compassion for the poor.
2002 Ron Paul 8:9
The Argentine debacle is yet
further
proof that the IMF was a bad idea from the very beginning-
economically,
constitutionally, and morally. The IMF is a relic of an era when
power-hungry
bureaucrats and deluded economists believed they could micromanage the
worlds
economy. Withdrawal from the IMF would benefit American taxpayers, as
well as
workers and consumers around the globe. I hope my colleagues will join
me in
working to protect the American taxpayer from underwriting the
destruction of
countries like Argentina, by cosponsoring my legislation to end
Americas
support for the IMF.
2002 Ron Paul Chapter 9
http://www.house.gov/paul/congrec/congrec2002/cr022702B.htm
Congressman Ron
Paul
U.S. House of Representatives
February 27, 2002
Health Information Independence Act of 2002
2002 Ron Paul 9:1
Mr. Speaker, I
rise to introduce the Health Information Independence Act of 2002. This
act takes a major
step toward restoring the right of consumers to purchase the dietary
supplements of their choice and receive accurate
information about the health benefits of foods and dietary supplements.
The Health Information Independence Act
repeals the Food and Drug Administrations (FDA) authority to approve
health claims of foods and dietary supplements.
2002 Ron Paul 9:2
Instead, that authority is vested in an independent review board. The board is
comprised of independent scientific experts randomly chosen by the FDA.
However, anyone who is, or has ever been, on the FDAs payroll is
disqualified
from serving on the commission. The FDA is forbidden from exercising
any influence over the review board. If the board
recommends approval of a health claim then the FDA must approve the
claim.
2002 Ron Paul 9:3
The board also must consider whether any claims can be rendered non-misleading by adopting a disclaimer before
rejecting a claim out of hand. For example, if the board finds that the
scientific evidence does not conclusively support a
claim, but the claim could be rendered non-misleading if accompanied
with a disclaimer then the board must approve the
claim provided the claim is always accompanied by an appropriate
disclaimer. The disclaimer would be a simple
statement to the effect that scientific studies on these claims are
inconclusive and/or these claims are not approved by
the FDA. Thus, the bill tilts the balance of federal law in favor of
allowing consumers access to information regarding the
health benefits of foods and dietary supplements, which is proper in a
free society.
2002 Ron Paul 9:4
The procedures established by the Health Information Independence Act are a fair and balanced way to ensure
consumers have access to truthful information about dietary
supplements. Over the past decade, the American people
have made it clear they do not want the federal government to interfere
with their access to dietary supplements, yet the
FDA continues to engage in heavy-handed attempts to restrict access to
dietary supplements.
2002 Ron Paul 9:5
In 1994, Congress responded to the American peoples desire for greater access to information about the benefits of
dietary supplements by passing the Dietary Supplements and Health and
Education Act of 1994 (DSHEA), which
liberalized rules regarding the regulation of dietary supplements.
Congressional offices received a record number of
comments in favor of DSHEA.
2002 Ron Paul 9:6
Despite DSHEA, FDA officials continued to attempt to enforce regulations aimed at keeping the American public in the
dark about the benefits of dietary supplements. Finally, in the case of
Pearson v. Shalala, 154 F.3d 650 (DC Cir. 1999),
rehg denied en banc, 172 F.3d 72 (DC Cir. 1999), the United States
Court of Appeals for the DC Circuit Court
reaffirmed consumers First Amendment right to learn about dietary
supplements without unnecessary interference from
the FDA. The Pearson court anticipated my legislation by suggesting the
FDA adopt disclaimers in order to render some
health claims non-misleading.
2002 Ron Paul 9:7
In the more than two years since the Pearson decision, members of Congress have had to continually intervene with the
FDA to ensure it followed the court order. The FDA continues to deny
consumers access to truthful health information.
Clearly, the FDA is determined to continue to (as the Pearson court
pointed out) act as though liberalizing regulations
regarding health claims is the equivalent of asking consumers to buy
something while hypnotized and therefore they are
bound to be misled. Therefore, if Congress is serious about
respecting the First Amendment rights of the people, we
must remove FDA authority to censor non-misleading health claims, and
those claims which can be rendered
non-misleading by the simple device of adopting a disclaimer, by
passing my Health Information Independence Act.
2002 Ron Paul 9:8
In conclusion, I urge my colleagues to help establish an objective process that respects consumers First Amendment
rights to non-misleading information regarding the health benefits of
foods and dietary supplements by cosponsoring the
Health Information Independence Act.
2002 Ron Paul Chapter 10
http://www.house.gov/paul/congrec/congrec2002/cr022802.htm
Congressman Ron
Paul
House Financial Services committee
February 28, 2002
Statement on the Financial Services committees Views and Estimates for Fiscal Year 2003
2002 Ron Paul 10:1
Supporters of limited,
constitutional
government and free markets will find little, if anything, to view
favorably in
the Financial Services committees Views and Estimates for Fiscal Year
2003. Almost every policy endorsed in this document is
unconstitutional
and a threat to the liberty and prosperity of the American people.
2002 Ron Paul 10:2
For example, this document
gives an
unqualified endorsement to increased taxpayer support for the Financial
Crimes
Enforcement Network (FINCEN). According to the committee, these
increased funds
are justified by FINCENs new authority under the PATRIOT Act. However,
Mr.
Chairman, FINCENs powers to snoop into the private financial affairs
of
American citizens raise serious constitutional issues. Whether the
expansion of
FINCENs power threatens civil liberties is ignored in this document;
instead,
the report claims the only problem with the PATRIOT Act is that the
federal
financial police state does not have enough power and taxpayer money to
invade
the privacy of United States citizens!
2002 Ron Paul 10:3
The committee also expresses
unqualified support for programs such as the Export-Import Bank (EX-IM)
which
use taxpayer dollars to subsidize large, multinational corporations.
Ex-Im
exists to subsidize large corporations that are quite capable of paying
the
costs of their own export programs! Ex-Im also provides taxpayer
funding for
export programs that would never obtain funding in the private market.
As
Austrian economists Ludwig Von Mises and F.A. Hayek demonstrated, one
of the
purposes of the market is to determine the highest value of resources.
Thus, the
failure of a project to receive funding through the free market means
the
resources that could have gone to that project have a higher-valued
use.
Government programs that take funds from the private sector and use
them to fund
projects that cannot get market funding reduce economic efficiency and
lower
living standards. Yet Ex-Im actually brags about its support for
projects
rejected by the market!
2002 Ron Paul 10:4
Finally, the committees views
support
expanding the domestic welfare state, particularly in the area of
housing. This
despite the fact that federal housing subsidies distort the housing
market by
taking capital that could be better used elsewhere, and applying it to
housing
at the direction of politicians and bureaucrats. Housing subsidies also
violate
the constitutional prohibitions against redistributionism. The federal
government has no constitutional authority to abuse its taxing power to
fund
programs that reshape the housing market to the liking of politicians
and
bureaucrats.
2002 Ron Paul 10:5
Rather than embracing an
agenda of
expanded statism, I hope my colleagues will work to reduce government
interference in the market that only benefits the politically powerful.
For
example, the committee could take a major step toward ending corporate
welfare
by holding hearings and a mark-up on my legislation to withdrawal the
United
States from the Bretton Woods Agreement and end taxpayer support for
the
International Monetary Fund (IMF). The Financial Services committee can
also
take a step toward restoring Congress constitutional role in monetary
policy by
acting on my Monetary Freedom and Accountability Act (HR 3732), which
requires
Congressional approval before the federal government buys or sells gold.
2002 Ron Paul 10:6
This committee should also
examine
seriously the need for reform of the system of fiat currency which is
responsible for the cycle of booms and busts which have plagued the
American
economy. Many members of the committee have expressed outrage over the
behavior
of the corporate executives of Enron. However, Enron was created by
federal
policies of easy credit and corporate welfare. Until this committee
addresses
those issues, I am afraid the American economy may suffer many more
Enron-like
disasters in the future.
2002 Ron Paul 10:7
In conclusion, the Views and
Estimates presented by the Financial Services committee endorses
increasing the power of the federal police state, as well as increasing
both
international and corporate welfare, while ignoring the economic
problems
created by federal intervention into the economy. I therefore urge my
colleagues
to reject this document and instead embrace an agenda of ending federal
corporate welfare, protecting financial privacy, and reforming the fiat
money
system which is the root cause of Americas economic instability.
2002 Ron Paul Chapter 11
http://www.house.gov/paul/congrec/congrec2002/cr022802B.htm
Congressman Ron
Paul
House International Relations committee
February 28, 2002
Statement on the International Criminal Court
2002 Ron Paul 11:1
Mr. Chairman: Thank you, Mr.
Chairman,
for holding this hearing on the important topic of the International
Criminal
Tribunals for the former Yugoslavia and Rwanda. For Americans, the most
important aspect of these international criminal tribunals is that they
are the
model for the UNs International Criminal Court. Indeed, it is the
perceived
need to make these
ad hoc
tribunals permanent that really led
to the
creation of the ICC in the first place. This permanent UN court will
attempt to
claim jurisdiction over the rest of the world within the next few
weeks, as it
has claimed that ratification by 60 countries confers world
jurisdiction upon
it.
2002 Ron Paul 11:2
This means that even though
the United
States has not ratified the treaty- though it was signed by President
Clintons
representative at midnight on the last day- the Court will claim
jurisdiction
over every American citizen, from President Bush on down. The Bush
Administration has admirably stated its opposition to the International
Criminal
Court, but it unfortunately has taken no proactive measures to unsign
Clintons initial signature or to make it known that the United States
has no
intention of cooperating with, providing funding to, or recognizing any
authority of this international court. The clock is ticking, however,
and the
day of reckoning is close at hand.
2002 Ron Paul 11:3
This court is every Americans
worst
nightmare. Currently, there are no protections for either US military
personnel
or civilians from the tentacles of this International Court. This means
when it
claims jurisdiction, you, I, or any of our 240,000 military personnel
stationed
across the globe can be kidnapped, dragged off a foreign land and be
put on
trial by foreign judges, without benefit of the basic protections of
the
American legal system, for crimes that may not even be considered
crimes in the
United States.
2002 Ron Paul 11:4
Pro-life groups in America
have already
expressed concern that the Courts claimed jurisdiction over enforced
pregnancy could make it criminal for groups to work to restrict access
to
abortions- or even reduce government funding of abortions. The pro-ICC
Womans
Caucus for Gender Justice has already stated that countries domestic
laws may
need to be changed to conform to ICC Statutes. Former Assistant to the
US
Solicitor General, Dr. Richard Wilkins, said recently that the ICC
could
eventually be used to try the Pope and other religious leaders,
because issues such as abortion and homosexuality would ultimately fall
within
the Courts jurisdiction.
2002 Ron Paul 11:5
Supporters of the
International
Criminal Court are quick to say that the Court is modeled on the
Nuremberg
tribunal set up after World War II, but nothing could be further from
the truth.
Nuremberg was a trial initiated and prosecuted by sovereign nations. It
was a
reassertion of national sovereignty over the crimes of a regime that
disregarded
the concept, that saw other sovereign countries as merely living
space for their own people. As one analyst recently wrote, the
Nuremberg tribunal, unlike the Hague tribunal, was not really an
international
tribunal at all. The judges quite specifically stated that the act of
promulgating the Nuremberg charter was the exercise of sovereign
legislative
power of the countries to which the German Reich unconditionally
surrendered. There was no pretense that the international
community was
prosecuting the Germans.
2002 Ron Paul 11:6
The International Criminal
Court is to
be modeled after the tribunals dealing with Rwanda and Yugoslavia, that
is a
fact. Knowing how these tribunals operate should therefore terrify any
American
who loves our Constitution and our system of justice. In the Yugoslav
and
Rwandan tribunals, anonymous witnesses and secret testimony are
permitted; the
defendant cannot identify his accusers. There is no independent appeals
procedure. As one observer of the Hague in action noted, the
prosecutors
use of conspiracy as a charge recalls the great Soviet show trials of
1936-1938.
In one case, the Orwellian proportions of the Prosecution mindset was
revealed
as the accused was charged with conspiring, despite the admitted lack
of
evidence. It is not the destruction of evidence but its very
absence which
can be used to convict!
2002 Ron Paul 11:7
Indeed in the showcase trial
of the
ICTY, that of former Serb leader Slobodan Milosevic, chief prosecutor
Carla del
Ponte told the French paper Le Monde last year that no genocide charge
had been
brought against Milosevic for Kosovo because there is no evidence for
it. What did the Court do in the face of this lack of evidence? They
simply disregarded a basic principle of extradition law and announced
that they
would try Milosevic for crimes other than those for which he had been
extradited. Thus they added two additional sets of charges- for Bosnia
and
Croatia- to the indictment for Kosovo. The Kosovo extradition itself
was nothing
more than bribery and kidnapping. Milosevic was snatched up off the
streets of
Serbia after the United States promised the government it had helped
install
millions of dollars in aid. That national sovereignty was to be
completely
disregarded by this international tribunal was evident in its ignoring
a ruling
by the Yugoslav Constitutional Court that extradition was illegal and
unconstitutional. Yugoslav officials preferred to put Milosevic on
trial in
Yugoslavia, under the Yugoslav system of jurisprudence, for whatever
crimes he
may have committed in Yugoslavia. The internationalists completely
ignored this
legitimate right of a sovereign state.
2002 Ron Paul 11:8
Supporters of the
International
Criminal Court, like the World Federalist Association, claim that ICC
procedures
are in full accordance with the Bill of Rights. They arent. One
pro-ICC website
sponsored by the World Federalist Association, attempting to dispel
myths
about the Court, perhaps unintentionally provided some real insight. In
response
to the myth that the ICC is unconstitutional, the website argues
that The Rome Treaty establishing the International Criminal Court
provides
almost
all the same due process protections as
the U.S.
Constitution. Every due process protection provided for in the
Constitution is
guaranteed by the Rome Treaty, with the exception of a trial by jury.
Since when is almost all equal to all? Either the Rome
Treaty provides all the protections or it does not provide all the
protections,
and here we have by its own admission that the ICC is indeed at odds
with
American due process protections. So what else are they not telling the
truth
about? Another claim on the World Federalist Association website is
that the ICC
is that the rights of the accused to a presumption of innocence is
guaranteed.
Interestingly, on the very same website the accused Slobodan Milosevic
is
referred to as a criminal. Not very reassuring.
2002 Ron Paul 11:9
It is very convenient for
supporters of
this International Criminal Court that the high profile test case in
the
Yugoslav tribunal is the widely reviled Slobodan Milosevic. They
couldnt have
hoped for a better case. Any attack on the tribunal is immediately
brushed off
as a defense of Milosevic. It is illustrative for us to take a look at
how the
Milosevic trial is being prosecuted thus far. After all, today it is
Milosevic
but tomorrow it could be any of us. And with the Milosevic trial, the
signs are
very troubling. We have all seen the arrogance of the judge in the
case, who
several times has turned off Milosevics microphone in mid-sentence.
Thus far,
the prosecution has attempted to bring as witnesses people who are on
the
payroll of the tribunal itself, as in the case of Besnik Sokoli. Other
witnesses
have turned out to have been members of the Kosovo Liberation Army,
which is the
armed force that initiated the insurgent movement within Yugoslavia.
Remember,
Milosevic was extradited for Kosovo and for Kosovo only, but the
weakness of the
case forced the Court to add other charges in other countries. Now,
after
Milosevic has shown himself adept at cross-examination, the prosecution
is
seeking to have the judge limit Milosevics ability to cross-examine
the
prosecutions witnesses. This in itself flies in the face of our system
of
evidence law, which allows the defendant nearly unlimited ability to
cross-examine a witness as long as it is relevant to testimony.
2002 Ron Paul 11:10
Mr. Chairman, these
international
tribunals and the International Criminal Court that they spawned are
bad for
America and bad for the rest of the world. The concept of a permanent
criminal
court, run by unelected bureaucrats, third rate judges, and political
hacks, and
answerable to no one, undermines everything that free peoples should
hold dear.
It is about American sovereignty, the sovereignty of our American legal
system,
but that is not all. It should also be important for Americans that the
sovereignty of the rest of the world be maintained as well, as when
sovereignty
is undermined anywhere by an un-elected international body, it is under
threat
everywhere.
2002 Ron Paul Chapter 12
http://www.house.gov/paul/congrec/congrec2002/cr030602.htm
Congressman Ron
Paul
House International Relations committee
March 6, 2002
Statement on wasteful foreign aid to Colombia
2002 Ron Paul 12:1
Mr. PAUL. Mr. Speaker, as a
member of
the House International Relations committee and the subcommittee on the
Western
Hemisphere, I would like to state my strong objections to the manner in
which
this piece of legislation was raised. I was only made aware of the
existence of
this legislation this morning, just a couple of hours before I was
expected to
vote on it. There was no committee markup of the legislation, nor was
there any
notice that this legislation would appear on todays suspension
calendar.
2002 Ron Paul 12:2
This legislation represents a
very
serious and significant shift in United States policy toward Colombia.
It sets
us on a slippery slope toward unwise military intervention in a foreign
civil
war that has nothing to do with the United States.
2002 Ron Paul 12:3
Our policy toward Colombia was
already
ill-advised when it consisted of an expensive front in our failed war
on
drugs. Plan Colombia, launched nearly two years ago, sent $1.3
billion to Colombia under the guise of this war on drugs. A majority of
that
went to the Colombian military; much was no doubt lost through
corruption.
Though this massive assistance program was supposed to put an end to
the FARC
and other rebel groups involved in drug trafficking, two years later we
are now
being told- in this legislation and elsewhere- that the FARC and rebel
groups
are stronger than ever. So now we are being asked to provide even more
assistance in an effort that seems to have had a result the opposite of
what was
intended. In effect, we are being asked to redouble failed efforts.
That doesnt
make sense.
2002 Ron Paul 12:4
At the time Plan Colombia was
introduced, President Clinton promised the American people that this
action
would in no way drag us into the Colombian civil war. This current
legislation
takes a bad policy and makes it much worse. This legislation calls for
the
United States to assist the Government of Colombia protect its
democracy
from United States-designated foreign terrorist organizations . . . In
other words, this legislation elevates a civil war in Colombia to the
level of
the international war on terror, and it will drag us deep into the
conflict.
2002 Ron Paul 12:5
Mr. Speaker, there is a world
of
difference between a rebel group fighting a civil war in a foreign
country and
the kind of international terrorist organization that targeted the
United States
last September. As ruthless and violent as the three rebel groups in
Colombia no
doubt are, their struggle for power in that country is an internal one.
None of
the three appears to have any intention of carrying out terrorist
activities in
the United States. Should we become involved in a civil war against
them,
however, these organizations may well begin to view the United States
as a
legitimate target. What possible reason could there be for us to take
on such a
deadly risk? What possible rewards could there be for the United States
support
for one faction or the other in this civil war?
2002 Ron Paul 12:6
As with much of our
interventionism, if
you scratch the surface of the high-sounding calls to protect
democracy and stop drug trafficking you often find commercial
interests driving U.S. foreign policy. This also appears to be the case
in
Colombia. And like Afghanistan, Kosovo, Iraq, and elsewhere, that
commercial
interest appears to be related to oil. The U.S. administration request
for FY
2003 includes a request for an additional $98 million to help protect
the
Cano-Limon Pipeline- jointly owned by the Colombian government and
Occidental
Petroleum. Rebels have been blowing up parts of the pipeline and the
resulting
disruption of the flow of oil is costing Occidental Petroleum and the
Colombian
government more than half a billion dollars per year. Now the
administration
wants American taxpayers to finance the equipping and training of a
security
force to protect the pipeline, which much of the training coming from
the U.S.
military. Since when is it the responsibility of American citizens to
subsidize
risky investments made by private companies in foreign countries? And
since when
is it the duty of American service men and women to lay their lives on
the line
for these commercial interests?
2002 Ron Paul 12:7
Further intervention in the
internal
political and military affairs of Colombia will only increase the
mistrust and
anger of the average Colombian citizen toward the United States, as
these
citizens will face the prospect of an ongoing, United States-supported
war in
their country. Already Plan Colombia has fueled the deep resentment of
Colombian
farmers toward the United States. These farmers have seen their
legitimate crops
destroyed, water supply polluted, and families sprayed as powerful
herbicides
miss their intended marks. An escalation of American involvement will
only make
matters worse.
2002 Ron Paul 12:8
Mr. Speaker, at this critical
time, our
precious military and financial resources must not be diverted to a
conflict
that has nothing to do with the United States and poses no threat to
the United
States. Trying to designate increased military involvement in Colombia
as a new
front on the war on terror makes no sense at all. It will only draw
the United States into a quagmire much like Vietnam. The Colombian
civil war is
now in its fourth decade; pretending that the fighting there is somehow
related
to our international war on terrorism is to stretch the imagination to
the
breaking point. It is unwise and dangerous.
2002 Ron Paul Chapter 13
http://www.house.gov/paul/congrec/congrec2002/cr031302.htm
Congressman Ron Paul
Wednesday, March 13, 2002
Steel Protectionism
2002 Ron Paul 13:1
Mr. Speaker, I am disheartened
by the
administration’s recent decision to impose a 30 percent tariff on steel
imports. This measure will hurt far more Americans than it will help,
and it
takes a step backwards toward the protectionist thinking that dominated
Washington in decades past. Make no mistake about it, these tariffs
represent
naked protectionism at its worst, a blatant disregard of any remaining
free-market principles to gain the short-term favor of certain special
interests. These steel tariffs also make it quite clear that the
rhetoric about
free trade in Washington is abandoned and replaced with talk of fair
trade when special interests make demands. What most Washington
politicians really believe in is government-managed trade, not free
trade. True
free trade, by definition, takes place only in the absence of
government
interference of any kind, including tariffs. Government-managed trade
means
government, rather than competence in the marketplace, determines what
industries and companies succeed or fail.
2002 Ron Paul 13:2
We’ve all heard about how
these
tariffs are needed to protect the jobs of American steelworkers, but we
never
hear about the jobs that will be lost or never created when the cost of
steel
rises 30 percent. We forget that tariffs are taxes, and that imposing
tariffs
means raising taxes. Why is the administration raising taxes on
American steel
consumers? Apparently no one in the administration has read Henry
Hazlitt’s
classic book,
Economics in one Lesson
. Professor Hazlitt’s
fundamental
lesson was simple: We must examine economic policy by considering the
long-term
effects of any proposal on
all
groups. The administration
instead
chose to focus only on the immediate effects of steel tariffs on one
group, the
domestic steel industry. In doing so, it chose to ignore basic
economics for the
sake of political expediency. Now I grant you that this is hardly
anything new
in this town, but it’s important that we see these tariffs as the
political
favors that they are. This has nothing to do with fairness. The free
market is
fair; it alone justly rewards the worthiest competitors. Tariffs reward
the
strongest Washington lobbies.
2002 Ron Paul 13:3
We should recognize that the
cost of
these tariffs will not only be borne by American companies that import
steel,
such as those in the auto industry and building trades. The cost of
these import
taxes will be borne by nearly all Americans, because steel is widely
used in the
cars we drive and the buildings in which we live and work. We will all
pay, but
the cost will be spread out and hidden, so no one complains. The
domestic steel
industry, however, has complained- and it has the corporate and union
power that
scares politicians in Washington. So the administration moved to
protect
domestic steel interests, with an eye toward the upcoming midterm
elections. It
moved to help members who represent steel-producing states. We hear a
great deal
of criticism of special interests and their stranglehold on Washington,
but
somehow when we prop up an entire industry that has failed to stay
competitive,
we’re protecting American workers. What we’re really doing is
taxing all Americans to keep some politically-favored corporations
afloat. Sure,
some rank and file jobs may also be saved, but at what cost? Do
steelworkers
really have a right to demand that Americans pay higher taxes to save
an
industry that should be required to compete on its own?
2002 Ron Paul 13:4
If we’re going to protect the
steel
industry with tariffs, why not other industries? Does every industry
that
competes with imported goods have the same claim for protection? We’ve
propped
up the auto industry in the past, now we’re doing it for steel, so who
should
be next in line? Virtually every American industry competes with at
least some
imports.
2002 Ron Paul 13:5
What happened to the wonderful
harmony
that the WTO was supposed to bring to global trade? The administration
has been
roundly criticized since the steel decision was announced last week,
especially
by our WTO partners. The European Union is preparing to impose
retaliatory sanctions to protect its own steel industry. EU trade
commissioner
Pascal Lamy has accused the U.S. of setting the stage for a global
trade war,
and several other steel producing nations such as Japan and Russia also
have
vowed to fight the tariffs. Even British Prime Minister Tony Blair, who
has been
tremendously supportive of the President since September 11th, recently
stated
that the new American steel tariffs were totally unjustified. Wasn’t
the WTO
supposed to prevent all this squabbling? Those of us who opposed U.S.
membership
in the WTO were scolded as being out of touch, unwilling to see the
promise of a
new global prosperity. What we’re getting instead is increased
hostility from
our trading partners and threats of economic sanctions from our WTO
masters.
This is what happens when we let government-managed trade schemes pick
winners
and losers in the global trading game. The truly deplorable thing about
all of
this is that the WTO is touted as promoting free trade!
2002 Ron Paul 13:6
Mr. Speaker, it’s always
amazing to
me that Washington gives so much lip service to free trade while never
adhering
to true free trade principles. Free trade really means freedom- the
freedom to
buy and sell goods and services free from government interference. Time
and time
again, history proves that tariffs don’t work. Even some modern
Keynesian
economists have grudgingly begun to admit that free markets allocate
resources
better than centralized planning. Yet we cling to the idea that
government needs
to manage trade, when it really needs to get out of the way and let the
marketplace determine the cost of goods. I sincerely hope that the
administration’s position on steel does not signal a willingness to
resort to
protectionism whenever special interests make demands in the future.
2002 Ron Paul Chapter 14
http://www.house.gov/paul/congrec/congrec2002/cr032002.htm
Congressman Ron Paul
Wednesday, March 20, 2002
Statement against Meddling in Domestic Ukrainian Politics
2002 Ron Paul 14:1
Mr. PAUL. Mr. Speaker, I strongly oppose H. Res. 339, a bill by the United
States Congress which seeks to tell a sovereign nation how to hold its
own
elections. It seems the height of arrogance for us to sit here and
lecture the
people and government of Ukraine on what they should do and should not
do in
their own election process. One would have thought after our own
election
debacle in November 2000, that we would have learned how
counterproductive and
hypocritical it is to lecture other democratic countries on their
electoral
processes. How would members of this body- or any American- react if
countries
like Ukraine demanded that our elections here in the United States
conform to
their criteria? So I think we can guess how Ukrainians feel about this
piece of
legislation.
2002 Ron Paul 14:2
Mr. Speaker, Ukraine has been the recipient of hundreds of millions of
dollars in foreign aid from the United States. In fiscal year 2002
alone,
Ukraine was provided $154 million. Yet after all this money- which we
were told
was to promote democracy- and more than ten years after the end of the
Soviet
Union, we are told in this legislation that Ukraine has made little if
any
progress in establishing a democratic political system.
2002 Ron Paul 14:3
Far from getting more involved in Ukraines electoral process, which is where
this legislation leads us, the United States is already much too
involved in the
Ukrainian elections. The U.S. government has sent some $4.7 million
dollars to
Ukraine for monitoring and assistance programs, including to train
their
electoral commission members and domestic monitoring organizations.
There have
been numerous reports of U.S.-funded non-governmental organizations in
Ukraine
being involved in pushing one or another political party. This makes it
look
like the United States is taking sides in the Ukrainian elections.
2002 Ron Paul 14:4
The legislation calls for the full access of Organization for Security and
Cooperation in Europe (OSCE) monitors to all aspects of the
parliamentary
elections, but that organization has time and time again, from Slovakia
to
Russia and elsewhere, shown itself to be unreliable and politically
biased. Yet
the United States continues to fund and participate in OSCE activities.
As
British writer John Laughland observed this week in the Guardian
newspaper,
Western election monitoring has become the political equivalent of an
Arthur Andersen audit. This supposedly technical process is now so
corrupted by
political bias that it would be better to abandon it. Only then will
countries
be able to elect their leaders freely. Mr. Speaker, I think this is
advice
we would be wise to heed.
2002 Ron Paul 14:5
Other aspects of this bill are likewise troubling. This bill seeks, from
thousands of miles away and without any of the facts, to demand that
the
Ukrainian government solve crimes within Ukraine that have absolutely
nothing to
do with the United States. No one knows what happened to journalist
Heorhiy
Gongadze or any of the alleged murdered Ukrainian journalists, yet by
adding it
into this ill-advised piece of legislation we are sitting here
suggesting that
the government has something to do with the alleged murders. This
meddling into
the Ukrainian judicial system is inappropriate and counter-productive.
2002 Ron Paul 14:6
Mr. Speaker, we are legislators in the United States Congress. We are not in
Ukraine. We have no right to interfere in the internal affairs of that
country
and no business telling them how to conduct their elections. A far
better policy
toward Ukraine would be to eliminate any U.S.-government imposed
barrier to free
trade between Americans and Ukrainians.
2002 Ron Paul Chapter 15
http://www.house.gov/paul/congrec/congrec2002/cr0321a02.htm
Congressman Ron Paul
March 20, 2002
Why Initiate War on Iraq?
2002 Ron Paul 15:1
I was recently asked why I thought it was a bad idea for the President to
initiate a war against Iraq. I responded by saying that I could easily
give a
half a dozen reasons why; and if I took a minute, I could give a full
dozen. For
starters, here is a half a dozen.
2002 Ron Paul 15:2
Number one, Congress has not given the President the legal authority to wage
war against Iraq as directed by the Constitution, nor does he have U.N.
authority to do so. Even if he did, it would not satisfy the rule of
law laid
down by the Framers of the Constitution.
2002 Ron Paul 15:3
Number two, Iraq has not initiated aggression against the United States.
Invading Iraq and deposing Saddam Hussein, no matter how evil a
dictator he may
be, has nothing to do with our national security. Iraq does not have a
single
airplane in its air force and is a poverty-ridden third world nation,
hardly a
threat to U.S. security. Stirring up a major conflict in this region
will
actually jeopardize our security.
2002 Ron Paul 15:4
Number three, a war against Iraq initiated by the United States cannot be
morally justified. The argument that someday in the future Saddam
Hussein might
pose a threat to us means that any nation, any place in the world is
subject to
an American invasion without cause. This would be comparable to the
impossibility of proving a negative.
2002 Ron Paul 15:5
Number four, initiating a war against Iraq will surely antagonize all
neighboring Arab and Muslim nations as well as the Russians, the
Chinese, and
the European Union, if not the whole world. Even the English people are
reluctant to support Tony Blairs prodding of our President to invade
Iraq.
There is no practical benefit for such action. Iraq could end up in
even more
dangerous hands like Iran.
2002 Ron Paul 15:6
Number five, an attack on Iraq will not likely be confined to Iraq alone.
Spreading the war to Israel and rallying all Arab nations against her
may well
end up jeopardizing the very existence of Israel. The President has
already
likened the current international crisis more to that of World War II
than the
more localized Vietnam war. The law of unintended consequences applies
to
international affairs every bit as much as to domestic interventions,
yet the
consequences of such are much more dangerous.
2002 Ron Paul 15:7
Number six, the cost of a war against Iraq would be prohibitive. We paid a
heavy economic price for the Vietnam war in direct cost, debt and
inflation.
This coming war could be a lot more expensive. Our national debt is
growing at a
rate greater than $250 billion per year. This will certainly
accelerate. The
dollar cost will be the least of our concerns compared to the potential
loss of
innocent lives, both theirs and ours. The systematic attack on civil
liberties
that accompanies all wars cannot be ignored. Already we hear cries for
resurrecting the authoritarian program of constriction in the name of
patriotism, of course.
2002 Ron Paul 15:8
Could any benefit come from all this warmongering? Possibly. Let us hope and
pray so. It should be evident that big government is anathema to
individual
liberty. In a free society, the role of government is to protect the
individuals right to life and liberty. The biggest government of all,
the U.N.
consistently threatens personal liberties and U.S. sovereignty. But our
recent
move toward unilateralism hopefully will inadvertently weaken the
United
Nations. Our participation more often than not lately is conditioned on
following the international rules and courts and trade agreements only
when they
please us, flaunting the consensus, without rejecting internationalism
on
principle- as we should.
2002 Ron Paul 15:9
The way these international events will eventually play out is unknown, and
in the process we expose ourselves to great danger. Instead of
replacing todays
international government, (the United Nations, the IMF, the World Bank,
the WTO,
the international criminal court) with free and independent republics,
it is
more likely that we will see a rise of militant nationalism with a
penchant for
solving problems with arms and protectionism rather than free trade and
peaceful
negotiations.
2002 Ron Paul 15:10
The last thing this world needs is the development of more nuclear weapons,
as is now being planned in a pretense for ensuring the peace. We would
need more
than an office of strategic information to convince the world of that.
2002 Ron Paul 15:11
What do we need? We need a clear understanding and belief in a free society,
a true republic that protects individual liberty, private property,
free
markets, voluntary exchange and private solutions to social problems,
placing
strict restraints on government meddling in the internal affairs of
others.
2002 Ron Paul 15:12
Indeed, we live in challenging and dangerous times.
2002 Ron Paul Chapter 16
http://www.house.gov/paul/congrec/congrec2002/cr0321b02.htm
Congressman Ron Paul
March 20, 2002
Statement Opposing Military Conscription
2002 Ron Paul 16:1
Mr. Speaker, I rise to introduce legislation expressing the sense of Congress
that the United States government should not revive military
conscription.
Supporters of conscription have taken advantage of the events of
September 11 to
renew efforts to reinstate the military draft. However, reviving the
draft may
actually weaken America’s military. Furthermore, a military draft
violates the
very principles of individual liberty this country was founded upon. It
is no
exaggeration to state that military conscription is better suited for a
totalitarian government, such as the recently dethroned Taliban regime,
than a
free society.
2002 Ron Paul 16:2
Since military conscription ended over 30 years ago, voluntary armed services
have successfully fulfilled the military needs of the United States.
The recent
success of the military campaign in Afghanistan once again demonstrates
the
ability of the volunteer military to respond to threats to the lives,
liberty,
and property of the people of the United States.
2002 Ron Paul 16:3
A draft weakens the military by introducing tensions and rivalries between
those who volunteer for military service and those who have been
conscripted.
This undermines the cohesiveness of military units, which is a vital
element of
military effectiveness. Conscripts also are unlikely to choose the
military as a
career; thus, a draft will do little to address problems with
retention. With
today’s high-tech military, retention is the most important personnel
issue
and it seems counter-productive to adopt any policy that will not
address this
important issue.
2002 Ron Paul 16:4
If conscription helps promote an effective military, then why did General
Vladisova Putilin, Chief of the Russian General Staff, react to plans
to end the
military draft in Russia, by saying This is the great dream of all
servicemen, when our army will become completely professional...?
2002 Ron Paul 16:5
Instead of reinstating a military draft, Congress should make military
service attractive by finally living up to its responsibility to
provide good
benefits and pay to members of the armed forces and our nation’s
veterans. It
is an outrage that American military personnel and veterans are given a
lower
priority in the federal budget than spending to benefit politically
powerful
special interests. Until this is changed, we will never have a military
which
reflects our nation’s highest ideals.
2002 Ron Paul 16:6
Mr. Speaker, the most important reason to oppose reinstatement of a military
draft is that conscription violates the very principles upon which this
country
was founded. The basic premise underlying conscription is that the
individual
belongs to the state, individual rights are granted by the state, and
therefore
politicians can abridge individual rights at will. In contrast, the
philosophy
which inspired America’s founders, expressed in the Declaration of
Independence, is that individuals possess natural, God-given rights
which cannot
be abridged by the government. Forcing people into military service
against
their will thus directly contradicts the philosophy of the Founding
Fathers. A
military draft also appears to contradict the constitutional
prohibition of
involuntary servitude.
2002 Ron Paul 16:7
During the War of 1812, Daniel Webster eloquently made the case that a
military draft was unconstitutional: Where is it written in the
Constitution , in what article or section is it contained, that you may
take
children from their parents, and parents from their children, and
compel them to
fight the battles of any war, in which the folly or the wickedness of
Government
may engage it? Under what concealment has this power lain hidden, which
now for
the first time comes forth, with a tremendous and baleful aspect, to
trample
down and destroy the dearest rights of personal liberty? Sir, I almost
disdain
to go to quotations and references to prove that such an abominable
doctrine had
no foundation in the Constitution of the country. It is enough to know
that the
instrument was intended as the basis of a free government, and that the
power
contended for is incompatible with any notion of personal liberty. An
attempt to
maintain this doctrine upon the provisions of the Constitution is an
exercise of
perverse ingenuity to extract slavery from the substance of a free
government.
It is an attempt to show, by proof and argument, that we ourselves are
subjects
of despotism, and that we have a right to chains and bondage, firmly
secured to
us and our children, by the provisions of our government.
2002 Ron Paul 16:8
Another eloquent opponent of the draft was former President Ronald Reagan who
in a 1979 column on conscription said: ...it rests on the assumption
that
your kids belong to the state. If we buy that assumption then it is for
the
state -- not for parents, the community, the religious institutions or
teachers
-- to decide who shall have what values and who shall do what work,
when, where
and how in our society. That assumption isn’t a new one. The Nazis
thought it
was a great idea.
2002 Ron Paul 16:9
President Reagan and Daniel Webster are not the only prominent Americans to
oppose conscription. In fact, throughout American history the draft has
been
opposed by Americans from across the political spectrum, from Henry
David
Thoreau to Barry Goldwater to Bill Bradley to Jesse Ventura.
Organizations
opposed to conscription range from the American Civil Liberties Union
to the
United Methodist Church General Board of Church and Society, and from
the
National Taxpayers Union to the Conservative Caucus. Other major
figures
opposing conscription include current Federal Reserve Chairman Alan
Greenspan
and Nobel Laureate Milton Friedman.
2002 Ron Paul 16:10
In conclusion, Mr. Speaker, I ask my colleagues to stand up for the long-term
military interests of the United States, individual liberty, and values
of the
Declaration of Independence by cosponsoring my sense of Congress
resolution
opposing reinstatement of the military draft.
2002 Ron Paul Chapter 17
http://www.house.gov/paul/congrec/congrec2002/cr041002.htm
Congressman Ron Paul
U.S. House of Representatives
April 10, 2002
America’s Entangling Alliances in the Middle East
2002 Ron Paul 17:1
We were warned, and in the early years of our Republic, we heeded that
warning. Today, though, we are entangled in everyone’s affairs
throughout the
world, and we are less safe as a result. The current Middle-East crisis
is one
that we helped create, and it is typical of how foreign intervention
fails to
serve our interests. Now we find ourselves smack-dab in the middle of a
fight
that will not soon end. No matter what the outcome, we lose.
2002 Ron Paul 17:2
By trying to support both sides we, in the end, will alienate both sides. We
are forced, by domestic politics here at home, to support Israel at all
costs,
with billions of dollars of aid, sophisticated weapons, and a guarantee
that
America will do whatever is necessary for Israel’s security.
2002 Ron Paul 17:3
Political pressure compels us to support Israel, but it is oil that prompts
us to guarantee security for the western puppet governments of the
oil-rich Arab
nations.
2002 Ron Paul 17:4
Since the Israeli-Arab fight will not soon be resolved, our policy of
involving ourselves in a conflict unrelated to our security guarantees
that we
will suffer the consequences.
2002 Ron Paul 17:5
What a choice! We must choose between the character of Arafat versus that of
Sharon.
2002 Ron Paul 17:6
The information the average American gets from the major media outlets, with
their obvious bias, only makes the problem worse. Who would ever guess
that the
side that loses
seven
people to every
one
on the other
side is
portrayed as the sole aggressor and condemned as terrorists? We should
remember
that Palestinian deaths are seen by most Arabs as being
American-inspired, since
our weapons are being used against them, and they’re the ones whose
land has
been continuously taken from them.
2002 Ron Paul 17:7
Yet there are still some in this country who can’t understand why many in
the Arab/Muslim world hate America.
2002 Ron Paul 17:8
Is it any wonder that the grassroots people in Arab nations, even in Kuwait,
threaten their own governments that are totally dominated by American
power and
money?
2002 Ron Paul 17:9
The arguments against foreign intervention are many. The chaos in the current
Middle-East crisis should be evidence enough for all Americans to
reconsider our
extensive role overseas and reaffirm the foreign policy of our early
leaders- a
policy that kept us out of the affairs of others.
2002 Ron Paul 17:10
But here we are in the middle of a war that has no end and serves only to
divide us here at home, while the unbalanced slaughter continues with
tanks and
aircraft tearing up a country that does not even have an army.
2002 Ron Paul 17:11
It is amazing that the clamor of support for Israel here at home comes from
men of deep religious conviction in the Christian faith, who are
convinced they
are doing the Lord’s work. That, quite frankly, is difficult for me as
a
Christian to comprehend. We need to remember the young people who will
be on the
front lines when the big war starts- which is something so many in this
body
seem intent on provoking.
2002 Ron Paul 17:12
Ironically, the biggest frustration in Washington, for those who eagerly
resort to war to resolve differences, is that the violence in the
Middle East
has delayed plans for starting another war against Iraq.
2002 Ron Paul 17:13
Current policy prompts our government on one day to give the go-ahead to
Sharon to do what he needs to do to combat terrorism (a term that now
has little
or no meaning); on the next day, however, our government tells him to
quit, for
fear that we may overly aggravate our oil pals in the Arab nations and
jeopardize our oil supplies. This is an impossible policy that will
inevitably
lead to chaos.
2002 Ron Paul 17:14
Foreign interventionism is bad for America. Special interests control our
policies, while true national security is ignored. Real defense needs,
the
defense of our borders, are ignored, and the financial interests of
corporations, bankers, and the military-industrial complex gain
control- and the
American people lose.
2002 Ron Paul 17:15
It’s costly, to say the least. Already our military budget has sapped
domestic spending and caused the deficit to explode. But the greatest
danger is
that one day these contained conflicts will get out of control.
Certainly the
stage is set for that to happen in the Middle East and south central
Asia. A
world war is a possibility that should not be ignored. Our policy of
subsidizing
both sides is ludicrous. We support Arabs and Jews, Pakistanis and
Indians,
Chinese and Russians. We have troops in 140 countries around the world
just
looking for trouble. Our policies have led us to support Al Qaeda in
Kosovo and
bomb their Serb adversaries. We have, in the past, allied ourselves
with bin
Laden, as well as Saddam Hussein, only to find out later the
seriousness of our
mistake. Will this foolishness ever end?
2002 Ron Paul 17:16
A non-interventionist foreign policy has a lot to say for itself, especially
when one looks at the danger and inconsistency of our current policy in
the
Middle East.
2002 Ron Paul Chapter 18
http://www.house.gov/paul/congrec/congrec2002/cr041102.htm
Congressman Ron Paul
U.S. House of Representatives
April 11, 2002
Statement on the American Servicemember and Civilian Protection Act of 2002
2002 Ron Paul 18:1
Mr. Paul. Mr. Speaker, I rise today to introduce the American Servicemember and Civilian Protection Act of 2002.
2002 Ron Paul 18:2
This bill expresses the sense of the Congress that President Bush should
formally rescind the signature approving the International Criminal
Court made
on behalf of the United States, and should take necessary steps to
prevent the
establishment of that Court. It also prohibits funds made available by
the
United States Government from being used for the establishment or
operation of
the Court.
2002 Ron Paul 18:3
Perhaps the most significant part of the bill makes clear that any action
taken by or on behalf of the Court against members of the United States
Armed
Forces shall be considered an act of aggression against the United
States; and
that any action taken by or on behalf of the Court against a United
States
citizen or national shall be considered an offense against the law of
nations.
2002 Ron Paul 18:4
Mr. Speaker, today in New York and Rome celebrations are underway to mark the
formal establishment of this International Criminal Court. Though the
United
States has not ratified the treaty establishing the Court, as required
by the
U.S. Constitution, this body will claim jurisdiction over every
American citizen
-- military personnel and civilian alike.
2002 Ron Paul 18:5
The Court itself, however, is an illegitimate body even by the United Nations’
own standards. The Statute of the International Criminal Court was
enacted by a
Conference of Diplomats convened by the United Nations General
Assembly, whereas
according to the UN Charter, the authority to create such a body lies
only in
the UN Security Council.
2002 Ron Paul 18:6
The International Criminal Court was established contrary to the American
Declaration of Independence and the Constitution of the United States.
It puts
United States citizens in jeopardy of unlawful and unconstitutional
criminal
prosecution.
2002 Ron Paul 18:7
The International Criminal Court does not provide many of the Constitutional
protections guaranteed every American citizen, including the right to
trial by
jury, the right to face your accuser, and the presumption of innocence,
and the
protection against double jeopardy.
2002 Ron Paul 18:8
Members of the United States Armed Forces are particularly at risk for
politically motivated arrests, prosecutions, fines, and imprisonment
for acts
engaged in for the protection of the United States. These are the same
brave men
and women who place their lives on the line to protect and defend our
Constitution. Do they not deserve the full protections of that same
Constitution?
2002 Ron Paul 18:9
Mr. Speaker, I hope all members of this body will join me in opposing this
illegitimate and illegal court by co-sponsoring the American
Servicemember
and Civilian Protection Act of 2002.
2002 Ron Paul Chapter 19
http://www.house.gov/paul/congrec/congrec2002/cr050102c.htm
Congressman Ron Paul
U.S. House of Representatives
May 1, 2002
Statement Opposing Taxpayer Funding of Multinational Development Banks
2002 Ron Paul 19:1
Mr. Speaker, Congress can perform a great service to the American taxpayer,
as well as citizens in developing countries, by rejecting HR 2604,
which
reauthorizes two multilateral development banks, the International Fund
for
Agricultural Development (IFAD) and the Asian Development Fund (AsDF).
2002 Ron Paul 19:2
Congress has no constitutional authority to take money from American taxpayers and send that money overseas for
any reason
.
Furthermore,
foreign aid undermines the recipient countries’ long-term economic
progress by
breeding a culture of dependency. Ironically, foreign aid also
undermines
long-term United States foreign policy goals by breeding resentment
among
recipients of the aid, which may manifest itself in a foreign policy
hostile to
the United States.
2002 Ron Paul 19:3
If Congress lacks authority to fund an international food aid program, then
Congress certainly lacks authority to use taxpayer funds to promote
economic
development in foreign lands. Programs such as the AsDF are not only
unconstitutional, but, by removing resources from the control of
consumers and
placing them under the control of bureaucrats and politically-powerful
special
interests, these programs actually retard economic development in the
countries
receiving this aid! This is because funds received from programs
like the AsDF are all-too-often wasted on political boondoggles which
benefit
the political elites in the recipient countries, but are of little
benefit to
the individual citizens of those countries.
2002 Ron Paul 19:4
In conclusion, HR 2604 authorizes the continued taking of taxpayer funds for
unconstitutional and economically destructive programs. I therefore
urge my
colleagues to reject this bill, return the money to the American
taxpayers, and
show the world that the United States Congress is embracing the
greatest means
of generating prosperity: the free market.
2002 Ron Paul Chapter 20
http://www.house.gov/paul/congrec/congrec2002/cr050102b.htm
Congressman Ron Paul
U.S. House of Representatives
May 1, 2002
Statement Opposing Export-Import Bank Subsidies
2002 Ron Paul 20:1
Mr. Chairman, I rise in strong support of this amendment, being a cosponsor
of this amendment. I am opposed to the Export-Import Bank because I see
there is
no benefit to it, it has nothing to do with capitalism and freedom. It
has a lot
to do with special interests, and I am opposed to that.
2002 Ron Paul 20:2
One thing I am convinced of over the years from looking at bad agencies of
government, tinkering on the edges does not do a lot of good. Members
might ask
why am I tinkering here? Why do I want to tell corporations what to do?
I am a
capitalist. I believe in capitalism. I do not want to tell the
corporations what
to do at all as long as they do not commit fraud and live up to their
promises,
but this is different because they are getting taxpayer money. That is
different
than if they were just a corporation making it on their own.
2002 Ron Paul 20:3
The gentleman from Nebraska (Mr. Bereuter) said if we do not give them these
loans, the companies will not get any money and they will have to go
overseas.
This is a fallacy to believe if all of a sudden we took all of the
Export-Import
Bank money away from corporations, that they would have no funding.
That is not
true at all. There is a lot of funding available. It is just that they
do not
get the benefit, they do not get the subsidy.
2002 Ron Paul 20:4
What we are trying to do is make it fair to everyone so that the little guy
who is competing for these same funds can compete on a level playing
field and
not give the advantage to the big guys. What happens so often when
government
gets involved is there are unintended consequences. The original intent
was to
boost exports and jobs. After 70 years, there are unintended
consequences. The
world is a more world market. I am not opposed to that. I believe in
free trade;
but I think this is more protectionism. This is so minor and so modest
that
anybody who wants to be on record for fairness into curtailing the
political
power of the Export-Import Bank, has to vote for this. This will be a
little bit
of help to a few people in order to say to these corporations that if
they are
going to get tax subsidies for their loans, and they start laying off
people,
they better lay them off someplace else other than here. That is pretty
modest.
I have no interest in ever telling a corporation to do this if they
were not
getting the special benefits from government. That makes the big
difference.
2002 Ron Paul 20:5
Mr. Chairman, there is a market allocation of credit and there is credit
allocation by politicians, and that is what we are talking about here.
We have
credit allocation, and we have mal-investment and over capacity which
causes the
conditions to exist for the recession. Of course, a lot of this comes
from what
the Federal Reserve does in artificially lowering interest rates; but
this is a
compounding problem when government gets in and allocates credit at
lower rates.
It causes more distortions. This is why allocations to companies like
Enron
contributes to the bubble that ends up in a major correction.
2002 Ron Paul Chapter 21
http://www.house.gov/paul/congrec/congrec2002/cr050102.htm
Congressman Ron Paul
U.S. House of Representatives
May 1, 2002
Statement Opposing Export-Import Bank Corporate Welfare
2002 Ron Paul 21:1
Mr. Chairman, we are here
today to
reauthorize the Export-Import Bank, but it has nothing to
do
with a bank, do not mislead anybody. This has to do with an agency of
the
government that
allocates
credit to
special interests and to the benefit of foreign entities. So it is not
a bank in
that sense. To me it is immoral
in the
fact that it takes from some who cannot defend themselves
to
give to the rich who get the benefits. And I just do not see that as
being a
very good function
and a
very good
program for the U.S. Congress. Besides, I would like to see where
somebody
gives me the constitutional
authority for
doing what we do here and we have been doing, of
course,
for a long time.
2002 Ron Paul 21:2
But I do not want to talk
about the
immorality of this so-called bank or the unconstitutionality
of
it. I want to talk just a second or two about the economics of it. It
is really
bad economics. It
is
pointed out
that it helps a company here or there, but what is never talked about
what you
do
not see. This is
credit
allocation.
2002 Ron Paul 21:3
In order to take billions of
dollars
and give it to one single company, it is taken out of the pool
of
funds available. And nobody talks about that. There is an expense. Why
would not
a bank
loan when it is
guaranteed
by the government? Because it is guaranteed. So if you are a smaller
investor
or a marginal investor, there is no way that you are going to get the
loan. For
that
investor to get the
loan, the
interest rates have to be higher.
So
it is a form of credit allocation, and it is also a form of
protectionism. We do
a lot of talk
around here
about
free trade. Of course, there is a lot of tariff activity going on as
well, but
this
is a form of
protectionism.
Because some argue, well, this company has to compete and another
government
subsidizes their company so, therefore, we have to compete. So it is
competitive
subsidization of special interest
corporations in order to do this.
2002 Ron Paul 21:4
Now, it seems strange that we
here in
the Congress are willing to give the beneficiary China
the
most number of dollars. They qualify for nearly $6 billion worth of
credits. And
that just does not seem like the reasonable thing for us to do. So I
strongly
urge a no vote on this bill.
2002 Ron Paul 21:5
Mr. Chairman, Congress should
reject
H.R. 2871, the Export-Import Reauthorization Act, for
economic,
constitutional, and moral reasons. The Export-Import Bank (Eximbank)
takes money
from American taxpayers to
subsidize
exports by American companies. Of course, it is not just
any
company that receives Eximbank support; the majority of Eximbank
funding benefit
large,
politically
powerful
corporations.
2002 Ron Paul 21:6
Enron provides a perfect
example of how
Eximbank provides politically-powerful corporations competitive
advantages they
could not obtain in the free market. According to
journalist
Robert Novak, Enron has received over $640 million in taxpayer-funded
assistance
from
Eximbank. This
taxpayer-provided largesse no doubt helped postpone Enrons inevitable
day
of reckoning.
2002 Ron Paul 21:7
Eximbanks use of taxpayer
funds to
support Enron is outrageous, but hardly surprising. The
the
vast majority of Eximbank funds benefit Enron-like outfits that must
rely on
political
connections and
government subsidies to survive and/or multinational corporations who
can
afford to support their own
exports
without relying on the American taxpayer.
2002 Ron Paul 21:8
It is not only bad economics
to force
working Americans, small business, and entrepreneurs to
subsidize
the export of the large corporations: it is also immoral. In fact, this
redistribution from
the
poor and
middle class to the wealthy is the most indefensible aspect of the
welfare
state, yet
it is the most
accepted
form of welfare. Mr. Speaker, it never ceases to amaze me how members
who
criticize welfare for the poor on moral and constitutional grounds see
no
problem with the
even
more
objectionable programs that provide welfare for the rich.
2002 Ron Paul 21:9
The moral case against
Eximbank is
strengthened when one considers that the government
which
benefits most from Eximbank funds is communist China. In fact, Eximbank
actually
underwrites joint ventures with
firms
owned by the Chinese government! Whatever ones
position
on trading with China, I would hope all of us would agree that it is
wrong to
force
taxpayers to
subsidize in any
way this brutal regime. Unfortunately, China is not an isolated
case:
Colombia and Sudan benefit from taxpayer-subsidized trade, courtesy of
the
Eximbank!
2002 Ron Paul 21:10
At a time when the Federal
budget is
going back into deficit and Congress is once again
preparing
to raid the Social Security and Medicare trust funds, does it really
make sense
to use
taxpayer funds to
benefit
future Enrons, Fortune 500 companies, and communist China?
2002 Ron Paul 21:11
Proponents of continued
American
support for the Eximbank claim that the bank creates
jobs
and promotes economic growth. However, this claim rests on a version of
what the
great
economist Henry
Hazlitt
called, the broken window fallacy. When a hoodlum throws a rock
through
a store window, it can be said he has contributed to the economy, as
the store
owner
will have to spend
money
having the window fixed. The benefits to those who repaired the
window
are visible for all to see, therefore it is easy to see the broken
window as
economically
beneficial.
However,
the benefits of the broken window are revealed as an illusion when
one
takes into account what is not
seen: the
businesses and workers who would have benefited had
the
store owner not spent money repairing a window, but rather had been
free to
spend his
money as he
chose.
Similarly, the beneficiaries of
Eximbank
are visible to all. What is not seen is the products
that
would have been built, the businesses that would have been started, and
the jobs
that would
have been
created had
the funds used for the Eximbank been left in the hands of consumers.
2002 Ron Paul 21:12
Some supporters of this bill
equate
supporting Eximbank with supporting free trade, and
claim
that opponents are protectionists and isolationists. Mr.
Chairman, this
is nonsense,
Eximbank has
nothing
to do with free trade. True free trade involves the peaceful, voluntary
exchange
of goods across borders, not forcing taxpayers to subsidize the exports
of
politically
powerful
companies.
Eximbank is not free trade, but rather managed trade, where winners and
losers
are determined by how well they please government bureacrats instead of
how well
they
please consumers.
2002 Ron Paul 21:13
Expenditures on the Eximbank
distort
the market by diverting resources from the private
sector,
where they could be put to the use most highly valued by individual
consumers,
into the
public sector,
where their
use will be determined by bureaucrats and politically powerful
special
interests. By distorting the market and preventing resources from
achieving
their highest
valued use,
Eximbank
actually costs Americans jobs and reduces Americas standard of living!
2002 Ron Paul 21:14
Finally, Mr. Chairman, I would
like to
remind my colleagues that there is simply no
constitutional
justification for the expenditure of funds on programs such as
Eximbank. In
fact,
the drafters of the
Constitution would be horrified to think the Federal Government was
taking
hard-earned money from the
American people
in order to benefit the politically powerful.
2002 Ron Paul 21:15
In conclusion, Mr. Chairman,
Eximbank
distorts the market by allowing government bureaucrats to make economic
decisions in place of individual consumers. Eximbank also
violates
basic principles of morality, by forcing working Americans to subsidize
the
trade of
wealthy
companies that
could easily afford to subsidize their own trade, as well as subsidizing
brutal
governments like Red China and the Sudan. Eximbank also violates the
limitations
on
congressional power to
take the
property of individual citizens and use it to benefit powerful
special
interests. It is for these reasons that I urge my colleagues to reject
H.R.
2871, the
Export-Import
Bank
Reauthorization Act.
2002 Ron Paul Chapter 22
http://www.house.gov/paul/congrec/congrec2002/cr050202.htm
Congressman Ron Paul
U.S. House of Representatives
May 2, 2002
Statement in Support of a Balanced Approach to the Middle East Peace Process
2002 Ron Paul 22:1
MR. PAUL: Mr. Speaker, this legislation could not
have come at
a worse time in the ongoing Middle East crisis. Just when we have seen
some
positive signs that the two sides may return to negotiations toward a
peaceful
settlement, Congress has jumped into the fray on one side of the
conflict. I do
not believe that this body wishes to de-rail the slight progress that
seems to
have come from the Administration’s more even-handed approach over the
past
several days. So why is it that we are here today ready to pass
legislation that
clearly and openly favors one side in the Israeli-Palestinian conflict?
2002 Ron Paul 22:2
There are many troubling aspects to this legislation.
The
legislation says that the number of Israelis killed during that time
[since September 2000] by suicide terrorist attacks alone, on a basis
proportional to the United States population, is approximately 9,000,
three
times the number killed in the terrorist attacks on New York and
Washington on
September 11, 2001. This kind of numbers game with the innocent dead
strikes me as terribly disrespectful and completely unhelpful.
2002 Ron Paul 22:3
It is, when speaking of the dead, the one-sidedness
of this
bill that is so unfortunate. How is it that the side that loses seven
people to
every one on the other side is portrayed as the sole aggressor and
condemned as
terrorist? This is only made worse by the fact that Palestinian deaths
are seen
in the Arab world as being American-inspired, as it is our weapons that
are
being used against them. This bill just reinforces negative perceptions
of the
United States in that part of the world. What might be the consequences
of this?
I think we need to stop and think about that for a while. We in this
body have a
Constitutional responsibility to protect the national security of the
United
States. This one-sided intervention in a far-off war has the potential
to do
great harm to our national security.
2002 Ron Paul 22:4
Perhaps this is why the Administration views this
legislation
as not a very helpful approach to the situation in the Middle East.
In my view, it is bad enough that we are intervening at all in this
conflict,
but this legislation strips any lingering notion that the United States
intends
to be an honest broker. It states clearly that the leadership of one
side - the
Palestinians - is bad and supports terrorism just at a time when this
Administration negotiates with both sides in an attempt to bring peace
to the
region. Talk about undermining the difficult efforts of the president
and the
State Department. What incentive does Palestinian leader Yasser Arafat
or his
organization have to return to the negotiating table if we as honest
broker make it clear that in Congress’s eyes, the Palestinians are
illegitimate terrorists? Must we become so involved in this far-off
conflict
that we are forced to choose between Arafat and Israeli Prime Minister
Ariel
Sharon? The United States Congress should not, Constitutionally, be in
the
business of choosing who gets to lead which foreign people.
2002 Ron Paul 22:5
Many people of various religious backgrounds seem
determined
to portray what is happening in the Middle East as some kind of
historic/religious struggle, where one side is pre-ordained to triumph
and
destroy the other. Even some in this body have embraced this notion.
Surely the
religious component that some interject into the conflict rouses
emotions and
adds fuel to the fire. But this is dangerous thinking. Far from a great
holy
war, the Middle East conflict is largely about what most wars are
about: a
struggle for land and resources in a part of the world where both are
scarce. We
must think and act rationally, with this fact clearly in mind.
2002 Ron Paul 22:6
Just as with our interventionism in other similar
struggles
around the world, our meddling in the Middle East has unforeseen
consequences.
Our favoritism of one side has led to the hatred of America and
Americans by the
other side. We are placing our country in harm’s way with this
approach. It is
time to step back and look at our policy in the Middle East. After 24
years of
the peace process and some 300
billion
of our dollars, we are
no closer to peace than when President Carter concluded the Camp David
talks.
2002 Ron Paul 22:7
Mr. Speaker, any other policy that had so utterly
failed over
such a long period of time would likely come under close scrutiny here.
Why is
it that when it comes to interventionism in the Middle East conflict we
continue
down this unproductive and very expensive road?
2002 Ron Paul Chapter 23
http://www.house.gov/paul/congrec/congrec2002/cr050902.htm
Congressman Ron Paul
U.S. House of Representatives
May 9, 2002
Say No to Conscription
2002 Ron Paul 23:1
Mr.
PAUL. Mr. Speaker, I hope my colleagues who
believe that the current war on terrorism justifies violating the
liberty of
millions of young men by reinstating a military draft will consider the
eloquent
argument against conscription in the attached speech by Daniel
Webster. Then-representative Webster delivered his remarks on the floor
of the House in opposition to a proposal to institute a
draft during the War of 1812. Websters speech
remains one of the best statements of the Constitutional and moral case
against conscription.
2002 Ron Paul 23:2
Despite
the threat posed to the very existence of
the young republic by the invading British Empire,
Congress ultimately rejected the proposal to institute a draft. If the
new
nation of America could defeat what was then
the most powerful military empire in the world without
a draft, there is no reason why we cannot address our current military
needs
with a voluntary military.
2002 Ron Paul 23:3
Webster
was among the first of a long line of
prominent Americans, including former President
Ronald Reagan and Federal Reserve Chairman Alan Greenspan, to recognize
that a draft violates the fundamental principles of
liberty this country was founded upon.
2002 Ron Paul 23:4
In
order to
reaffirm support for individual liberty and an effective military, I
have introduced H. Con. Res. 368, which expresses the
sense of Congress against reinstating a military
draft. I urge my colleagues to read Daniel Websters explanation of why
the
draft is incompatible with liberty government
and cosponsor H. Con. Res. 368.
2002 Ron Paul 23:5
ON
CONSCRIPTION
(By
Daniel Webster)
During Americas first great war, waged against
Great Britain, the Madison Administration tried
to introduce a conscription bill into Congress. This bill called forth
one of
Daniel Websters most eloquent efforts, in a
powerful opposition to conscription. The speech was delivered
in the House of Representatives on December 9, 1814; the following is a
condensation:
2002 Ron Paul 23:6
This
bill indeed is less undisguised in its object,
and less direct in its means, than some of the
measures proposed. It is an attempt to exercise the power of forcing
the free
men of this country into the ranks of an
army, for the general purposes of war, under color of a military
service.
It is a distinct system, introduced for new purposes, and not connected
with any
power, which the Constitution has conferred on
Congress.
2002 Ron Paul 23:7
But,
Sir, there is another consideration. The
services of the men to be raised under this act are
not limited to those cases in which alone this Government is entitled
to the aid
of the militia of the States. These cases are
particularly stated in the Constitution--to repel invasion,
suppress insurrection, or execute the laws.
2002 Ron Paul 23:8
The
question is nothing less, than whether the most
essential rights of personal liberty shall be
surrendered, and despotism embraced in its worst form. When the present
generation of men shall be swept away, and
that this Government ever existed shall be a matter of history only,
I desire that it may then be known, that you have not proceeded in your
course unadmonished and unforewarned. Let it then be known,
that there were those, who would have stopped
you, in the career of your measures, and held you back, as by the
skirts of your garments, from the precipice, over which you
are plunging, and drawing after you the Government
of your Country.
2002 Ron Paul 23:9
Conscription
is chosen as the most promising
instrument, both of overcoming reluctance to the
Service, and of subduing the difficulties which arise from the
deficiencies of
the Exchequer. The administration asserts the
right to fill the ranks of the regular army by compulsion.
It contends that it may now take one out of every twenty-five men, and
any part or the whole of the rest, whenever its occasions
require. Persons thus taken by force, and put into an army, may be
compelled to
serve there, during the war, or for life.
They may be put on any service, at home or abroad, for defense or for
invasion, according to the will and pleasure of Government.
This power does not grow out of any invasion
of the country, or even out of a state of war. It belongs to Government
at all
times, in peace as well as in war, and is to
be exercised under all circumstances, according to its mere
discretion. This, Sir, is the amount of the principle contended for by
the
Secretary of War (James Monroe).
2002 Ron Paul 23:10
Is
this, Sir, consistent with the character of a
free Government? Is this civil liberty? Is this the
real character of our Constitution? No, Sir, indeed it is not. The
Constitution
is libeled, foully libeled. The people of
this country have not established for themselves such a fabric of
despotism. They have not purchased at a vast expense of their own
treasure and
their own blood a Magna Carta to be slaves.
Where is it written in the Constitution, in what article
or section is it contained, that you may take children from their
parents, and
parents from their children, and compel them
to fight the battles of any war, in which the folly or the
wickedness of Government may engage it? Under what concealment has this
power
lain hidden, which now for the first time
comes forth, with a tremendous and baleful aspect, to trample
down and destroy the dearest rights of personal liberty? Sir,
I almost disdain to go to quotations and
references to prove that such an abominable doctrine has no foundation
in the Constitution of the country. It is enough to
know that that instrument was intended as the basis
of a free Government, and that the power contended for is incompatible
with any notion of personal liberty. An attempt to maintain
this doctrine upon the provisions of the Constitution
is an exercise of perverse ingenuity to extract slavery from the
substance of a free Government. It is an attempt to show, by proof
and argument, that we ourselves are subjects
of despotism, and that we have a right to chains and bondage, firmly
secured to
us and our children, by the provisions of our
Government.
2002 Ron Paul 23:11
The
supporters of the measures before us act on the
principle that it is their task to raise arbitrary
powers, by construction, out of a plain written charter of National
Liberty. It
is their pleasing duty to free us of the
delusion, which we have fondly cherished, that we are the
subjects of a mild, free and limited Government, and to demonstrate by
a regular
chain of premises and conclusions, that
Government possesses over us a power more tyrannical, more
arbitrary, more dangerous, more allied to blood and murder, more full
of every
form of mischief, more productive of every
sort and degree of misery, than has been exercised by
any civilized Government in modern times.
2002 Ron Paul 23:12
But
it is said, that it might happen that any army
would not be raised by voluntary enlistment,
in which case the power to raise armies would be granted in vain,
unless they might be raised by compulsion. If this reasoning
could prove any thing, it would equally show,
that whenever the legitimate powers of the Constitution should be so
badly administered as to cease to answer the great ends
intended by them, such new powers may be
assumed or usurped, as any existing administration may deem expedient.
This is a
result of his own reasoning, to which the
Secretary does not profess to go. But it is a true result. For
if it is to be assumed, that all powers were granted, which might by
possibility
become necessary, and that Government itself
is the judge of this possible necessity, then the powers
of Government are precisely what it chooses they should be.
2002 Ron Paul 23:13
The
tyranny of
Arbitrary Government consists as much in its means as in its end; and
it would
be a ridiculous and absurd constitution which should be less cautious
to guard against abuses in the one case than in the other.
All the means and instruments which a free Government
exercises, as well as the ends and objects which it pursues, are to
partake of its own essential character, and to be conformed to
its genuine spirit. A free Government with
arbitrary means to administer it is a contradiction; a free Government
without adequate provision for personal security is an
absurdity; a free Government, with an uncontrolled power of military
conscription, is a solecism, at once the most ridiculous and abominable
that ever entered into the head of man.
2002 Ron Paul 23:14
Into
the paradise of domestic life you enter, not
indeed by temptations and sorceries, but by open
force and violence.
2002 Ron Paul 23:15
Nor
is it, Sir, for the defense of his own house
and home, that he who is the subject of military
draft is to perform the task allotted to him. You will put him upon a
service equally foreign to his interests and abhorrent to
his feelings. With his aid you are to push your
purposes of conquest. The battles which he is to fight are the battles
of
invasion; battles which he detests perhaps
and abhors, less from the danger and the death that gather over
them, and the blood with which they drench the plain, than from the
principles
in which they have their origin. If, Sir, in
this strife he fall — if, while ready to obey every rightful
command of Government, he is forced from home against right, not to
contend for the defense of his country, but to prosecute a
miserable and detestable project of invasion, and
in that strife he fall, tis murder. It may stalk above the cognizance
of human
law, but in the sight of Heaven it is murder;
and though millions of years may roll away, while his ashes
and yours lie mingled together in the earth, the day will yet come,
when his
spirit and the spirits of his children must
be met at the bar of omnipotent justice. May God, in his compassion,
shield me from any participation in the enormity of this guilt.
2002 Ron Paul 23:16
A
military force cannot be raised, in this manner,
but by the means of a military force. If administration
has found that it can not form an army without conscription, it will
find, if it
venture on these experiments, that it can not
enforce conscription without an army. The Government was not
constituted for
such purposes. Framed in the spirit of liberty, and in the
love of peace, it has no powers which render it able to enforce such
laws. The
attempt, if we rashly make it, will fail; and
having already thrown away our peace, we may thereby throw
away our Government.
2002 Ron Paul 23:17
I
express these sentiments here, Sir, because I
shall express them to my constituents. Both they
and myself live under a Constitution which teaches us, that the
doctrine of non-resistance against arbitrary power and
oppression, is absurd, slavish, and destructive of
the good and happiness of mankind. With the same earnestness with
which I now
exhort you to forbear from these measures, I
shall exhort them to exercise their unquestionable right
of providing for the security of their own liberties.
2002 Ron Paul Chapter 24
http://www.house.gov/paul/congrec/congrec2002/cr0509202.htm
Congressman Ron Paul
U.S. House of Representatives
May 9, 2002
Statement on the Paul Amendment to H.R. 4546, the Defense Authorization Act of 2003
2002 Ron Paul 24:1
Not One American Tax Dollar to the International Criminal
Court
2002 Ron Paul 24:2
Mr. PAUL: Mr. Speaker, earlier this week President Bush took the bold step of
renouncing the signature of the United States on the Rome Statute of
the
International Criminal Court. The Bush Administration, in explaining
this move,
correctly pointed out that this court has unchecked power that
contradicts our
Constitution and its system of checks and balances; that the Court is
open
for exploitation and politically-motivated prosecutions; and that
the ICC asserts jurisdiction over citizens of states that have not
ratified the treaty – which undermines American sovereignty.
2002 Ron Paul 24:3
President Bush, in renouncing the U.S. signature and declaring that the
United States would have nothing to do with the International Criminal
Court,
has put the Court on notice that the United States will defend its
sovereignty
and its citizens. The president is to be most highly commended for
standing
strong for American sovereignty in the face of world-wide attempts to
undermine
that sovereignty with this deeply flawed global court.
2002 Ron Paul 24:4
But there is no time to rest on this victory. As Secretary of Defense Donald
Rumsfeld stated this week, upon our renunciation of the ICC:
Unfortunately, the ICC will not respect the U.S. decision to stay out
of
the treaty. To the contrary, the ICC provisions claim the authority to
detain
and try American citizens-U.S. soldiers, sailors, airmen and Marines,
as well as
current and future officials-even though the United States has not
given its
consent to be bound by the treaty. Secretary Rumsfeld added, When
the ICC treaty enters into force this summer, U.S. citizens will be
exposed to
the risk of prosecution by a court that is unaccountable to the
American people,
and that has no obligation to respect the Constitutional rights of our
citizens.
2002 Ron Paul 24:5
Secretary Rumsfeld is correct. It is clear that the International Criminal
Court has no intention of honoring our president’s decision to neither
participate in nor support their global judicial enterprise. According
to the
Statutes of the court, they do indeed claim jurisdiction over Americans
even
though the president has now stated forcefully that we do not recognize
the
Court nor are we a party to the Treaty.
2002 Ron Paul 24:6
I have introduced this amendment to the Defense Authorization Act, therefore,
to support the president’s decision and to indicate that Congress is
behind
him in his rejection of this unconstitutional global court. It is
imperative
that we not award the International Criminal Court a single tax dollar
to
further its objective of undermining our sovereignty and our
Constitutional
protections. How could we do anything less: each of us in this body has
taken an
oath to protect and defend the Constitution of the United States?
2002 Ron Paul 24:7
I am also introducing today a Sense of the Congress bill to commend President
Bush for his bold and brave decision to renounce the United States’
signature
on the Statute of the International Court. We must support the
president as he
seeks to protect American servicemen and citizens from this court. I
hope all of
my colleagues here will co-sponsor and support this legislation, and
please call
my office for more details.
2002 Ron Paul 24:8
In the meantime, I urge enthusiastic support of this amendment before us. We
must speak with one voice in denying the International Criminal Court a
single
American tax dollar!
2002 Ron Paul Chapter 25
http://www.house.gov/paul/congrec/congrec2002/cr0509302.htm
Congressman Ron Paul
U.S. House of Representatives
May 9, 2002
Statement on the introduction of H. Res. 416, Expressing the Sense of the Congress regarding the International Criminal Court
2002 Ron Paul 25:1
We Want No Part of the ICC: Commending President Bush
Mr. PAUL: Mr. Speaker, I rise today to introduce a bill Expressing
the Sense
of the Congress regarding the International Criminal Court.
2002 Ron Paul 25:2
On Monday, May 6, President George W. Bush directed his representative to
inform United Nations Secretary General Kofi Annan that the United
States
does not intend to become a party to the treaty [the Rome Statute of
the
International Criminal Court (ICC)]. President Bush is to be highly
commended for renouncing the U.S. signature on the ICC treaty, a bold
first step
toward protecting American servicemembers and citizens from the
possibility of
unwarranted and politically-motivated persecutions.
2002 Ron Paul 25:3
By taking this action, President Bush has put the international community on
notice that the United States will defend its sovereignty and citizens
from this
global court. The Bush Administration correctly pointed out that the
ICC has
unchecked power that contradicts our Constitution and its system of
checks and
balances; that the Court is open for exploitation and
politically-motivated prosecutions; and that the ICC asserts
jurisdiction over citizens of states that have not ratified the treaty
–
which seriously threatens American sovereignty.
2002 Ron Paul 25:4
I applaud President Bush in making it perfectly clear that the United States
wants no part of the ICC. He faced enormous pressure from the
international
community to do otherwise, yet he did the right thing.
2002 Ron Paul 25:5
But this is only a first step. As Secretary of Defense Donald Rumsfeld stated
this week, upon our renunciation of the ICC: Unfortunately, the ICC
will
not respect the U.S. decision to stay out of the treaty. To the
contrary, the
ICC provisions claim the authority to detain and try American
citizens-U.S.
soldiers, sailors, airmen and Marines, as well as current and future
officials-even though the United States has not given its consent to be
bound by
the treaty. Secretary Rumsfeld added, When the ICC treaty enters
into force this summer, U.S. citizens will be exposed to the risk of
prosecution
by a court that is unaccountable to the American people, and that has
no
obligation to respect the Constitutional rights of our citizens.
2002 Ron Paul 25:6
Undersecretary of State Marc Grossman, explaining the president’s decision
to withdraw from the ICC, made the following critical point:
Notwithstanding our disagreements with the Rome Treaty, the United
States
respects the decision of those nations who have chosen to join the ICC;
but they
in turn must respect our decision
not
to join the ICC or place
our
citizens under the jurisdiction of the court. There is no indication
that
Undersecretary Grossman’s message has been received.
2002 Ron Paul 25:7
Therefore, this legislation makes it clear that Congress should take all
steps necessary to grant appropriate authority to the president to
defend the
American people – servicemember and citizen alike -- from the threat of
arrest, prosecution and conviction by the International Criminal Court.
2002 Ron Paul 25:8
I am introducing this legislation to also to commend President Bush for his
courageous move, to assure the president that this body supports his
action to
protect the Constitution and American sovereignty. We have all taken an
oath to
protect and defend the Constitution, and we should stand with the
president.
2002 Ron Paul 25:9
I rise, finally, to encourage the president to remain steadfast in his
intention of protecting American servicemembers and citizens from the
unchecked
power of the International Criminal Court. This is only the beginning,
however,
there is much more to be done.
2002 Ron Paul Chapter 26
http://www.house.gov/paul/congrec/congrec2002/cr051402.htm
Congressman Ron Paul
U.S. House of Representatives
May 14, 2002
No Forced Dress Code for U.S. Soldiers Abroad
2002 Ron Paul 26:1
Mr. PAUL. Mr. Speaker, while I
support
this legislation, I would like to make a few
observations.
It is unfortunate that we are in a position where we must act on such
legislation.
Because
of our
unwise policy of foreign interventionism, which has placed thousands of
American
service members in the Middle East including in Saudi Arabia, we are
placed in a
no-win situation. Either we
disregard and
mock the customs and culture of Saudi Arabia by
refusing
to adhere to dress codes that they have adopted, or we subject American
women to
a
dress code that is
offensive to
our own culture and customs and is disrespectful to the sacrifices
they
are making for this country. What a choice, Mr. Speaker!
2002 Ron Paul 26:2
I am voting for this bill
because I
believe, on the whole, that it is preferable to place concerns
about
our own citizens over those whose homeland is being defended by
American troops.
Young Americans join the
all-volunteer
military as an act of patriotism in hopes of defending
their
country and their constitution. We in Congress must honor that
sacrifice. it is
bad enough
that our
troops are sent
around the world to defend foreign soil. Asking them to comply with
foreign
customs which violate basic American beliefs about freedom in order to
appease
the
very governments our
troops are
defending adds insult to injury. I do not believe a single female
member
of the armed forces enlisted for the privilege of wearing an abaya
while
defending
the House of
Saud or that
one single male member of the armed forces enlisted in order to force
his
female colleagues to wear an abaya.
2002 Ron Paul 26:3
The fact remains that we
continue to
maintain troops in a place where they are not needed. It is the
consequences of
this dangerous policy that concern me most. Isnt it time to return to
a more
sound foreign policy, one that respects the culture of others by not
intervening
in their affairs? Is it not time to bring American troops home to
protect
America, rather than continuing to station them in far off lands where
the
protection they offer is not needed?
2002 Ron Paul Chapter 27
http://www.house.gov/paul/congrec/congrec2002/cr051602.htm
Congressman Ron Paul
U.S. House of Representatives
May 16, 2002
Stop Perpetuating the Welfare State
2002 Ron Paul 27:1
Mr. PAUL. Mr. Speaker, no one
can deny
that welfare programs have undermined Americas
moral
fabric and constitutional system. Therefore, all those concerned with
restoring
liberty and
protecting
civil
society from the maw of the omnipotent state should support efforts to
eliminate
the welfare state, or, at the
very last,
reduce federal control over the provision of social
services.
Unfortunately, the misnamed Personal Responsibility, Work, and Family
Promotion
Act (H.R. 4737) actually increases the unconstitutional federal welfare
state
and thus undermines
personal
responsibility, the work ethic, and the family.
2002 Ron Paul 27:2
H.R. 4737 reauthorizes the
Temporary
Assistance to Needy Families (TANF) block grant
program,
the main federal welfare program. Mr. Speaker, increasing federal funds
always
increases federal control as the
recipients of the funds must tailor their programs to meet federal
mandates
and regulations. More importantly, since federal funds represent
resources taken
out of
the hands of
private
individuals, increasing federal funding leaves fewer resources
available for
the voluntary provision of social
services, which, as I will explain in more detail later, is a
more
effective, moral, and constitutional means of meeting the needs of the
poor.
2002 Ron Paul 27:3
H.R. 4737 further increases
federal
control over welfare policy by increasing federal mandates on
welfare
recipients. This bill even goes so far as to dictate to states how they
must
spend their own funds! Many of the new mandates imposed by this
legislation
concern work requirements. Of course, Mr. Speaker, there is a sound
argument for
requiring recipients of welfare benefits to work. Among other benefits,
a work
requirement can help a welfare recipient obtain useful job skills and
thus
increase the likelihood that they will find productive employment.
However,
forcing welfare recipients to work does raise valid concerns regarding
how much
control over ones life should be ceded to the government in exchange
for
government benefits.
2002 Ron Paul 27:4
In addition, Mr. Speaker, it is highly unlikely that a one-size-fits-all approach dictated from Washington will meet the
diverse needs of every welfare recipient in every state and locality in
the
nation. Proponents of this bill claim to support allowing states,
localities,
and private charities the flexibility to design welfare-to-work
programs that
fit their particular circumstances. Yet, as Minnesota Governor Jesse
Ventura
points out in the attached article, this proposal constricts the
ability of the
states to design welfare-to-work programs that meet the unique needs of
their
citizens.
2002 Ron Paul 27:5
As Governor Ventura points out in reference to this proposals effects on
Minnesotas welfare-to-welfare work program, We know what we are doing
in
Minnesota works. We have evidence. And our way of doing things has
broad support
in the state. Why should we be forced by the federal government to put
our
system at risk? Why indeed, Mr. Speaker, should any state be forced
to abandon
its individual welfare programs because a group of self-appointed
experts in
Congress, the federal bureaucracy, and inside-the-beltway think tanks
have
decided there is only one correct way to transition people from welfare
to work?
2002 Ron Paul 27:6
Mr. Speaker, H.R. 4737 further expands the reach of the federal government by
authorizing $100 million dollars for new marriage promotion
programs. I
certainly recognize how the welfare state has contributed to the
decline of the
institution of marriage. As an ob-gyn with over 30 years of private
practice. I
know better than most the importance of stable, two parent families to
a healthy
society. However, I am skeptical, to say the least, of claims that
government
education programs can fix the deep-rooted cultural problems
responsible for the
decline of the American family.
2002 Ron Paul 27:7
Furthermore, Mr. Speaker, federal promotion of marriage opens the door for a
level of social engineering that should worry all those concerned with
preserving a free society. The federal government has no constitutional
authority to promote any particular social arrangement; instead, the
founders
recognized that people are better off when they form their own social
arrangements free from federal interference. The history of the failed
experiments with welfarism and socialism shows that government can only
destroy
a culture; when a government tries to build a culture, it only further
erodes
the peoples liberty.
2002 Ron Paul 27:8
H.R. 4737 further raises serious privacy concerns by expanding the use of the
New Hires Database to allow states to use the database to verify
unemployment claims. The New Hires Database contains the name and
social
security number of everyone lawfully employed in the United States.
Increasing
the states ability to identify fraudulent unemployment claims is a
worthwhile
public policy goal. However, every time Congress authorizes a new use
for the
New Hires Database it takes a step toward transforming it into a
universal
national database that can be used by government officials to monitor
the lives
of American citizens.
2002 Ron Paul 27:9
As with all proponents of welfare programs, the supporters of H.R. 4737 show
a remarkable lack of trust in the American people. They would have us
believe
that without the federal government, the lives of the poor would be
nasty,
brutish and short. However, as scholar Sheldon Richman of the Future
of
Freedom Foundation and others have shown, voluntary charities and
organizations,
such as friendly societies that devoted themselves to helping those in
need,
flourished in the days before the welfare state turned charity into a
government
function.
2002 Ron Paul 27:10
Today, government welfare programs have supplemented the old-style private
programs. One major reason for this is that the policy of high taxes
and the
inflationary monetary policy imposed on the American people in order to
finance
the welfare state have reduced the income available for charitable
giving. Many
over-taxed Americans take the attitude toward private charity that I
give
at the (tax) office.
2002 Ron Paul 27:11
Releasing the charitable impulses of the American people by freeing them from
the excessive tax burden so they can devote more of their resources to
charity,
is a moral and constitutional means of helping the needy. By contrast,
the
federal welfare state is neither moral or constitutional. Nowhere in
the
Constitution is the federal government given the power to level
excessive taxes
on one group of citizens for the benefit of another group of citizens.
Many of
the founders would have been horrified to see modern politicians define
compassion as giving away other peoples money stolen through
confiscatory
taxation. In the words of the famous essay by former Congressman Davy
Crockett,
this money is Not Yours to Give.
2002 Ron Paul 27:12
Voluntary charities also promote self-reliance, but government welfare
programs foster dependency. In fact, it is the self-interests of the
bureaucrats
and politicians who control the welfare state to encourage dependency.
After
all, when a private organization moves a person off welfare, the
organization
has fulfilled its mission and proved its worth to donors. In contrast,
when
people leave government welfare programs, they have deprived federal
bureaucrats
of power and of a justification for a larger amount of taxpayer funding.
2002 Ron Paul 27:13
In conclusion, H.R. 4737 furthers federal control over welfare programs by
imposing new mandates on the states which furthers unconstitutional
interference
in matters best left to state local governments, and individuals.
Therefore, I
urge my colleagues to oppose it. Instead, I hope my colleagues will
learn the
lessons of the failure of the welfare state and embrace a
constitutional and
compassionate agenda of returning control over the welfare programs to
the
American people through large tax cuts.
2002 Ron Paul 27:14
Welfare: Not the Feds Job (By Jesse Ventura)
In 1996, the federal government ended 60 years of failed welfare
policy that
trapped families in dependency rather than helping them to
self-sufficiency. The
1996 law scrapped the federally centralized welfare system in favor of
broad
flexibility so states could come up with their own welfare programs. It
was a
move that had bipartisan support, was smart public policy and worked.
2002 Ron Paul 27:15
Welfare reform has been a huge success. Even those who criticized the 1996
law now agree it is working. Welfare case loads are down, more families
are
working, family income is up, and child poverty has dropped.
2002 Ron Paul 27:16
The reason is simple: state flexibility. In six short years the states undid
a 60-year-old federally prescribed welfare system and created their own
programs
which are far better for poor families and for taxpayers.
2002 Ron Paul 27:17
But now it appears the Bush administration is having second thoughts about
empowering the states. The administrations proposal would return us to
a
federally prescribed system. It would impose rules on how states work
with each
family, forcing a one size fits all model for a system that for the
past six years has produced individualized systems that have been
successful in
states across the country.
2002 Ron Paul 27:18
I would hope that as a former governor, President Bush would understand that
these problems are better handled by the individual states. The
administrations
proposal would cripple welfare reform in my state and many others.
2002 Ron Paul 27:19
I know that my friend Health and Human Services Secretary Tommy Thompson did
a wonderful job of reforming Wisconsins welfare system. But that
doesnt mean
the Wisconsin system would be as effective in Vermont. My state of
Minnesota is
also a national model for welfare reform. It is a national model, in
part
because we make sure welfare reform gets families out of poverty. How
do we do
this? Exactly the way President Bush and Secretary
2002 Ron Paul 27:20
Thompson would want us to do it: by putting people to work. But heres the
rub- it matters how families on welfare get to work. In Minnesota, we
work with
each family one on one and use a broad range of services to make sure
the family
breadwinner gets and keeps a decent job. For some families it might
take a
little longer that what the president is comfortable with, but the
results are
overwhelmingly positive. A three-year follow-up of Minnesota families
on welfare
found that more than three-quarters have left welfare or gone to work.
Families
that have left welfare for work earn more than $9 an hour, higher than
comparable figures in other states. The federal government has twice
cited
Minnesota as a leader among the states in job retention and advancement.
2002 Ron Paul 27:21
An independent evaluation of Minnesotas welfare reform pilot found it to be
perhaps the most successful welfare reform effort in the nation. The
evaluation
found Minnesotas program not only increased employment and earnings
but also
reduced poverty, reduced domestic abuse, reduced behavioral problems
with kids
and improved their school performance. It also found that marriage and
marital
stability increased as a result of higher family incomes.
2002 Ron Paul 27:22
The administrations proposal would have Minnesota set all this aside and
focus instead on make-work activities. In Minnesota we believe that
success in
welfare reform is about helping families progress to a self-sufficiency
that
will last. While it may be politically appealing to demand that all
welfare
recipients have shovels in their hands, it makes sense to me that the
states-
and not the feds- are in the best position to make those decisions.
2002 Ron Paul 27:23
We know what we are doing in Minnesota works. We have evidence. And our way
of doing things has broad support in the state. Why should we be forced
by the
federal government to put our system at risk?
2002 Ron Paul 27:24
I believe in accountable and responsive government, and have no problem with
the federal government holding states accountable for results in
welfare reform.
But I also believe that in this case the people closest to the problem
should be
trusted to solve the problem and be left alone if they have.
2002 Ron Paul 27:25
Secretary Thompson, with the blessing of the president, seems to be taking us
down a road that violates the tenets of states rights.
2002 Ron Paul 27:26
Say it aint so, Tommy. As long as its working, why not let the states do
our own thing?
2002 Ron Paul Chapter 28
http://www.house.gov/paul/congrec/congrec2002/cr052102c.htm
Congressman Ron Paul
U.S. House of Representatives
May 21, 2002
Dont Force Taxpayers to Fund Nation-Building in Afghanistan
2002 Ron Paul 28:1
Mr. PAUL. Madam Chairman, I
thank the
chairman for yielding me time.
Madam Chairman, I rise in
opposition to this bill. The President has not asked for this piece of
legislation; he does not support it. We do not anticipate that it will
be passed
in the other body. But there is one good part of the bill, and that is
the
title, Freedom Support. We all support freedom. It is just that this
bill does not support freedom. Really, it undermines the liberties and
the taxes
of many Americans in order to pump another in $1.2 billion into
Afghanistan.
2002 Ron Paul 28:2
One of the moral
justifications, maybe,
for rebuilding Afghanistan is that it was the American bombs that
helped to
destroy Afghanistan in our routing of the Taliban. But there is a lot
of
shortcomings in this method. Nation-building does not work. I think
this will
fail. I do not think it will help us.
2002 Ron Paul 28:3
I do not think for a minute
that this
is much different than social engineering that we try here in the U.S.
with a
lot of duress and a lot of problems; and now we are going to do it over
there
where we really do not understand the social conditions that exist, and
it is
not like here. Some, especially those in that part of the world, will
see this
as neo-colonialism because we are over there for a lot of different
reasons. And
even in the bill it states one of the reasons. It says, We are to
design
an
overall strategy to
advance U.S.
interests in Afghanistan.
2002 Ron Paul 28:4
Well, I wonder what that
means?
Over 10 years ago there was an explicit desire and a statement made by
the
administration that until we had a unified government in Afghanistan,
we could
not build a gas pipeline across northern Afghanistan. And that is in
our
interests. Does that mean this is one of the motivations?
2002 Ron Paul 28:5
I imagine a lot of people here
in the
Congress might say no, but that might be the ultimate outcome. It is
said that
this bill may cut down on the drug trade. But the Taliban was stronger
against
drugs than the Northern Alliance. Drug production is up since weve
been
involved this past year in Afghanistan.
2002 Ron Paul 28:6
Madam Chairman, I think it is
important
to state first off that while it is true that the administration has
not
actively opposed this legislation, it certainly has not asked for nor
does it
support the Afghanistan Freedom Support Act. It did not support the
bill when we
marked it up in the International Relations Committee, it did not
support the
bill after it was amended in Committee, and it does not support the
bill today.
2002 Ron Paul 28:7
Madam Chairman, perhaps the
Afghanistan
Freedom Support Act should more accurately be renamed the
Afghanistan
Territorial Expansion Act, because this legislation essentially
treats that
troubled nation like a new American territory. In fact, I wonder
whether we give
Guam, Puerto Rico, or other American territories anywhere near $1.2
billion
every few years- so maybe we just should consider full statehood for
Afghanistan. This new State of Afghanistan even comes complete with an
American
governor, which the bill charitably calls a coordinator. After all,
we
cant just give away such a huge sum without installing an American
overseer to
ensure we approve of all aspects of the fledgling Afghan government.
Madam Chairman, when we fill a nations empty treasury, when we fund
and train
its military, when we arm it with our weapons, when we try to impose
foreign
standards and values within it, indeed when we attempt to impose a
government
and civil society of our own making upon it, we are nation-building.
There is no
other term for it. Whether Congress wants to recognize it or not, this
is
neo-colonialism. Afghanistan will be unable to sustain itself
economically for a
very long time to come, and during that time American taxpayers will
pay the
bills. This sad reality was inevitable from the moment we decided to
invade it
and replace its government, rather than use covert forces to eliminate
the
individuals truly responsible for September 11th. Perhaps the saddest
truth is
that Bin Laden remains alive and free even as we begin to sweep up the
rubble
from our bombs.
2002 Ron Paul 28:8
I am sure that supporters of
this bill
are well-intentioned, but judging from past experience this approach
will fail
to improve the lives of the average Afghan citizen. Though many will
also
attempt to claim that this bill is somehow about the attacks of 9/11,
lets not
fool ourselves: nation-building and social engineering are what this
bill is
about. Most of the problems it seeks to address predate the 9/11
attacks and
those it purports to assist had nothing to do with those attacks.
2002 Ron Paul 28:9
If we are operating under the
premise
that global poverty itself poses a national security threat to the
United
States, then I am afraid we have an impossible task ahead of us.
2002 Ron Paul 28:10
As is often the case, much of
the money
authorized by this bill will go toward lucrative contracts with
well-connected
private firms and individuals. In short, when you look past all the
talk about
building civil society in Afghanistan and defending against terrorism,
this bill
is laden with the usual corporate welfare and hand-outs to special
interests.
2002 Ron Paul 28:11
Among other harmful things,
this
legislation dramatically expands the drug war. Under the group we have
installed
in Afghanistan, opium production has skyrocketed. Now we are expected
to go in
and clean up the mess our allies have created. In addition, this bill
will send
some $60 million to the United Nations, to help fund its own drug
eradication
program. I am sure most Americans agree that we already send the United
Nations
too much of our tax money, yet this bill commits us to sending even
more.
2002 Ron Paul 28:12
The drug war has been a
failure. Plan
Colombia, an enormously expensive attempt to reduce drug production in
that
Andean nation, has actually resulted in a 25 percent increase in coca
leaf and
cocaine production. Does anyone still think our war on drugs there has
been
successful? Is it responsible to continue spending money on policies
that do not
work?
2002 Ron Paul 28:13
The bill also reflects a
disturbing
effort by the Washington elite to conduct experiments in social
engineering in
Afghanistan. It demands at least five times that the Afghans create a
government
that is broad-based, multi-ethnic, gender-sensitive, and fully
representative. We are imposing race and gender quotas on a foreign
government
that have been found inappropriate and in some cases even illegal in
the United
States. Is this an appropriate activity to be carried out with taxpayer
funds?
2002 Ron Paul 28:14
Madam Chairman, the problem
with
nation-building and social-engineering, as experience tells us time and
time
again is that it simply doesnt work. We cannot build multi-ethnic,
multi-cultural, gender-sensitive civil society and good governance in
Afghanistan on a top-down basis from afar. What this bill represents is
a
commitment to deepening involvement in Afghanistan and a determination
to impose
a political system on that country based on a blueprint drawn up
thousands of
miles away by Washington elites. Does anyone actually believe that we
can buy
Afghan democracy with even the staggering sum of 1.2 billion dollars? A
real
democracy is the product of shared values and the willingness of a
population to
demand and support it. None of these things can be purchased by a
foreign power.
What is needed in Afghanistan is not just democracy, but freedom- the
two are
not the same.
2002 Ron Paul 28:15
Release of funds authorized by
this
legislation is dependent on the holding of a traditional Afghan
assembly of
tribal representatives –a loya jirga – as a first step toward
democratization. It authorizes $10 million dollars to finance this
meeting. That
this traditional meeting will produce anything like a truly
representative body
is already in question, as we heard earlier this month that seven out
of 33
influential tribal leaders have already announced they will boycott the
meeting.
Additionally, press reports have indicated that the U.S. government
itself was
not too long ago involved in an attempted assassination of a
non-Taliban
regional leader who happened to be opposed to the rule of the
American-installed
Hamid Karzai. More likely, this loya jirga will be a stage-managed
showpiece, primarily convened to please Western donors. Is this any way
to teach
democracy?
2002 Ron Paul 28:16
Madam Chairman, some two
decades
ago the Soviet Union also invaded Afghanistan and attempted to impose
upon the
Afghan people a foreign political system. Some nine years and 15,000
Soviet
lives later they retreated in disgrace, morally and financially
bankrupt. During
that time, we propped up the Afghan resistance with our weapons, money,
and
training, planting the seeds of the Taliban in the process. Now the
former
Soviet Union is gone, its armies long withdrawn from Afghanistan, and
were left
cleaning up the mess- yet we wont be loved for it. No, we wont get
respect or
allegiance from the Afghans, especially now that our bombs have rained
down upon
them. We will pay the bills, however, Afghanistan will become a tragic
ward of
the American state, another example of an interventionist foreign
policy that is
supposed to serve our national interests and gain allies, yet which
does
neither.
2002 Ron Paul 28:17
I repeat that t
he President has not been interested
in this legislation. I do not see
a good reason to give him the burden of reporting back to us in 45 days
to explain how he is going to provide for Afghan
security for the long term. How long is long term? We have been in
Korea now for 50 years. Are we planning to send troops
that provide national security for Afghanistan? I think we should be
more concerned about the security of this country and not
wondering how we are going to provide the troops for long-term security
in Afghanistan. We should be more concerned about
the security of our ports.
2002 Ron Paul 28:18
Madam Chairman, over the last several days and almost continuously, as a matter of fact, many Members get up and talk
about any expenditure or any tax cut as an attack on Social Security,
but we do not hear this today because there is a coalition,
well built, to support this intervention and presumed occupation of
Afghanistan. But the truth is, there are monetary and budget
consequences for this.
2002 Ron Paul 28:19
After this bill is passed, if this bill is to pass, we will be close to $2 billion in aid to Afghanistan, not counting the
military. Now, that is an astounding amount of money, but it
seems
like it is irrelevant here. Twelve months ago, the national debt was
$365 billion less than it is today, and people say we are just getting
away from having surpluses. Well, $365 billion is a huge
deficit, and the national debt is going up at that rate. April revenues
were down 30 percent from 1 year ago. The only way we
pay for programs like this is either we rob Social Security or we print
the money, but both are very harmful to poor people and
people living on a limited income. Our funds are not unlimited. I
know
there is a lot of good intention; nobody in this body is saying we are
going over there to cause mischief, but let me tell
my colleagues, there is a lot of reasons not to be all that optimistic
about these wonderful results and what we are going to
accomplish over there.
2002 Ron Paul 28:20
Madam Chairman, earlier the gentleman from California (Mr. Rohrabacher) came up with an astounding reason for us to do
this. He said that we owe this to Afghanistan. Now, I have heard all
kinds of arguments for foreign aid and foreign intervention, but the
fact that
we owe this to Afghanistan? Do we know what we owe? We owe
responsibility to the American taxpayer. We owe
responsibility to the security of this country.
One provision of this bill takes a $300 million line of credit
from our DOD and just gives the President the authority to take
$300 million of weapons away from us and give it to somebody in
Afghanistan. Well, that dilutes our defense, that does not
help our defense. This is not beneficial. We do not need to have an
occupation of Afghanistan for security of this country. There
is no evidence for that.
2002 Ron Paul 28:21
The occupation of Afghanistan is unnecessary. It is going to be very costly, and it is very
dangerous. My colleagues might say, well, this is all for
democracy.
For democracy? Well, did we care about democracy in Venezuela?
It seemed like we tried to undermine that just recently. Do we care
about the democracy in Pakistan? A military dictator takes
over and he becomes our best ally, and we use his land, and yet he has
been a friend to the Taliban, and who knows, bin
Laden may even be in Pakistan. Here we are saying we are doing it all
for democracy. Now, that is just pulling our leg a little
bit too much. This is not the reason that we are over there. We are
over there for a lot of other reasons and, hopefully, things
will be improved.
2002 Ron Paul 28:22
But I am terribly concerned that we will spend a lot of money, we will become deeply mired in Afghanistan, and we will not
do a lot better than the Soviets did. Now, that is a real
possibility
that we should not ignore. We say, oh, no, everything sounds rosy and
we are going to do this,
we are going to do it differently, and this time it is going to be
okay. Well, if we look at the history of that land and that country,
I would think that we should have second thoughts.
2002 Ron Paul 28:23
It has been said that one of the reasons why we need this legislation is to help pay for drug eradication. Now, that is a good
idea. That would be nice if we could do that. But the drug production
has exploded since we have been there. In the last year,
it is just going wild. Well, that is even more reason we have to spend
money because we contributed to the explosion of the
drug production. There is money in this bill, and maybe some good will
come of this; there is money in this bill that is going to
be used to teach the Afghan citizens not to use drugs.
2002 Ron Paul 28:24
Mr. Speaker, if this is successful, if we teach the Afghan people not to use drugs, that would be
wonderful. Maybe then we can do something about the ravenous
appetite
of our people for drugs which is the basic cause of so much drug
production.
2002 Ron Paul 28:25
So to spend money on these kinds of programs I think is just a little bit of a stretch. Already there have been 33 tribal leaders
that have said they will not attend this Loya Jirga, that they are not
going to attend. The fact that we are going to spend millions
of dollars trying to gather these people together and tell them what to
do with their country, I think the odds of producing a
secure country are slim.
2002 Ron Paul 28:26
Already in the papers just a few weeks ago it was reported in The Washington Post that our CIA made an attempt to
assassinate a former prime minister of Afghanistan. He may have been a
bum for all I know, but do Members think that sits
well? He was not an ally of bin Laden, he was not a Taliban member, yet
our CIA is over there getting involved. As a matter of
fact, that is against our law, if that report is true. Yet, that is
what the papers have reported.
2002 Ron Paul 28:27
So I would say that we should move cautiously. I think this is very dangerous. I know nobody else has spoken out against
this bill, but I do not see much benefit coming from this. I know it is
well motivated, but it is going to cost a lot of money, we are
going to get further engaged, more troops are going to go over there;
and now that we are a close ally of Pakistan, we do know
that Pakistan and India both have nuclear weapons, and we are sitting
right next to them. So I would hardly think this is
advantageous for our security, nor advantageous for the American
people, nor advantageous to the American taxpayer.
2002 Ron Paul 28:28
I see this as a threat to our security. It does not reassure me one bit. This is what scares me. It scares me when we send
troops into places like Vietnam and Korea and other places, because it
ultimately comes back to haunt us.
2002 Ron Paul Chapter 29
http://www.house.gov/paul/congrec/congrec2002/cr052102b.htm
Congressman Ron Paul
U.S. House of Representatives
May 21, 2002
Statement on New Internet Regulations and Expanded Federal Wiretap Powers
2002 Ron Paul 29:1
Mr. Speaker, as a parent, grandparent, and OB-GYN who
has
delivered over three thousand babies, I certainly share the desire to
protect
children from pornography and other inappropriate material available on
the
internet. However, as a United States Congressman, I cannot support
measures
which exceed the limitations on constitutional power contained in
Article one,
Section 8 of the Constitution. The Constitution does not provide
Congress with
the authority to spend taxpayer funds to create new internet domains.
2002 Ron Paul 29:2
Furthermore, Mr. Speaker, the federal government is
singularly
unqualified to act as the arbiter of what material is inappropriate for
children. Instead, this is a decision that should be made by parents.
Most of
the problems pointed to by proponents of increased government control
of the
internet are the result of a lack of parental, not governmental,
control of
children’s computer habits. Expanding the government’s control over the
internet may actually encourage parents to disregard their
responsibility to
monitor their child’s computer habits. After all, why should parents
worry
about what websites their children is viewing when the government has
usurped
this parental function?
2002 Ron Paul 29:3
The market is already creating solutions to many of
these
problems through the development of filtering software that responsible
parents
can use to protect their children from inappropriate materials. The
best way to
address this problem is by allowing this market process to develop, not
by
creating new government regulations.
2002 Ron Paul 29:4
In addition to creating new internet domains,
Congress is also
expanding federal wiretapping powers. Mr. Speaker, my colleagues should
also
remember that the Constitution creates only three federal crimes,
namely
treason, piracy, and counterfeiting. Expansion of federal police power
for
crimes outside these well-defined areas thus violates the Constitution.
In
addition, expansion of federal wiretapping powers raises serious civil
liberties
concerns, as such powers easily can be abused by federal officials.
2002 Ron Paul 29:5
I therefore hope my colleagues will respect the
constitutional
limitations on federal power. Instead of usurping powers not granted
the federal
government, Congress should allow state and local law enforcement,
schools,
local communities, and most of all responsible parents to devise the
best
measures to protect children.
2002 Ron Paul Chapter 30
http://www.house.gov/paul/congrec/congrec2002/cr052202.htm
Congressman Ron Paul
U.S. House of Representatives
May 22, 2002
Stop Taxing Social Security Benefits!
2002 Ron Paul 30:1
Mr. Speaker, I am pleased to commemorate Older
Americans Month
by introducing two pieces of legislation to reduce taxes on senior
citizens. The
first bill, the Social Security Beneficiary Tax Reduction Act, repeals
the 1993
tax increase on Social Security benefits. Repealing this increase on
Social
Security benefits is a good first step toward reducing the burden
imposed by the
federal government on senior citizens. However, imposing any tax on
Social
Security benefits is unfair and illogical. This is why I am also
introducing the
Senior Citizens’ Tax Elimination Act, which repeals all taxes on Social
Security benefits.
2002 Ron Paul 30:2
Since Social Security benefits are financed with tax
dollars,
taxing these benefits is yet another example of double taxation.
Furthermore,
taxing benefits paid by the government is merely an accounting
trick, a shell game which allows members of Congress to reduce benefits
by
subterfuge. This allows Congress to continue using the Social Security
trust
fund as a means of financing other government programs, and masks the
true size
of the federal deficit.
2002 Ron Paul 30:3
Instead of imposing ridiculous taxes on senior
citizens,
Congress should ensure the integrity of the Social Security trust fund
by ending
the practice of using trust fund monies for other programs. In order to
accomplish this goal I introduced the Social Security Preservation Act
(H.R.
219), which ensures that all money in the Social Security trust fund is
spent
solely on Social Security. At a time when Congress’ inability to
control
spending is once again threatening the Social Security trust fund, the
need for
this legislation has never been greater. When the government taxes
Americans to
fund Social Security, it promises the American people that the money
will be
there for them when they retire. Congress has a moral obligation to
keep that
promise.
2002 Ron Paul 30:4
In conclusion, Mr. Speaker, I urge my colleagues to
help free
senior citizens from oppressive taxation by supporting my Senior
Citizens’ Tax
Elimination Act and my Social Security Beneficiary Tax Reduction Act. I
also
urge my colleagues to ensure that moneys from the Social Security trust
fund are
used solely for Social Security benefits and not wasted on frivolous
government
programs.
2002 Ron Paul Chapter 31
http://www.house.gov/paul/congrec/congrec2002/cr052202b.htm
Congressman Ron Paul
U.S. House of Representatives
May 22, 2002
Dont Expand Federal Deposit Insurance
2002 Ron Paul 31:1
Mr. Speaker, HR 3717, the Federal Deposit Insurance
Reform
Act, expands the federal government’s unconstitutional control over the
financial services industry and raises taxes on all financial
institutions.
Furthermore, this legislation could increase the possibility of future
bank
failures. Therefore, I must oppose this bill.
2002 Ron Paul 31:2
I primarily object to the provisions in HR 3717 which
may
increase the premiums assessed on participating financial institutions.
These
premiums, which are actually taxes, are the premier sources of funds
for the Deposit Insurance Fund. This fund is used to bail out banks who
experience difficulties meeting their commitments to their depositors.
Thus, the
deposit insurance system transfers liability for poor management
decisions from
those who made the decisions to their competitors. This system punishes
those
financial institutions which follow sound practices, as they are forced
to
absorb the losses of their competitors. This also compounds the moral
hazard
problem created whenever government socializes business losses.
2002 Ron Paul 31:3
In the event of a severe banking crisis, Congress
likely will
transfer funds from general revenues into the Deposit Insurance Fund,
which
could make all taxpayers liable for the mistakes of a few. Of course,
such a
bailout would require separate authorization from Congress, but can
anyone
imagine Congress saying No to banking lobbyists pleading for relief
from the costs of bailing out their weaker competitors?
2002 Ron Paul 31:4
Government subsidies lead to government control, as
regulations are imposed on the recipients of the subsidies in order to
address
the moral hazard problem. This is certainly the case in banking, which
is one of
the most heavily regulated industries in America. However, as George
Kaufman,
the John Smith Professor of Banking and Finance at Loyola University in
Chicago,
and co-chair of the Shadow Financial Regulatory Committee, pointed out
in a
study for the CATO Institute, the FDIC’s history of poor management
exacerbated the banking crisis of the eighties and nineties. Professor
Kaufman
properly identifies a key reason for the FDIC’s poor track record in
protecting individual depositors: regulators have incentives to
downplay or even
cover-up problems in the financial system such as banking failures.
Banking
failures are black marks on the regulators’ records. In addition,
regulators
may be subject to political pressure to delay imposing sanctions on
failing
institutions, thus increasing the magnitude of the loss.
2002 Ron Paul 31:5
Immediately after a problem in the banking industry
comes to
light, the media and Congress inevitably will blame it on regulators
who were
asleep at the switch. Yet, most politicians continue to believe the
very regulators whose incompetence (or worse) either caused or
contributed to
the problem will somehow prevent future crises!
2002 Ron Paul 31:6
The presence of deposit insurance and government
regulations
removes incentives for individuals to act on their own to protect their
deposits
or even inquire as to the health of their financial institutions. After
all, why
should individuals be concerned with the health of their financial
institutions
when the federal government insures their deposits?
2002 Ron Paul 31:7
Finally, I would remind my colleagues that the
federal deposit
insurance program lacks constitutional authority. Congress’ only
mandate in
the area of money and banking is to maintain the value of the money.
Unfortunately, Congress abdicated its responsibility over monetary
policy with
the passage of the Federal Reserve Act of 1913, which allows the
federal
government to erode the value of the currency at the will of the
central bank.
Congress’ embrace of fiat money is directly responsible for the
instability in
the banking system that created the justification for deposit insurance.
2002 Ron Paul 31:8
In conclusion, Mr. Speaker, HR 3717 imposes new taxes
on
financial institutions, forces sound institutions to pay for the
mistakes of
their reckless competitors, increases the chances of taxpayers being
forced to
bail out unsound financial institutions, reduces individual depositors’
incentives to take action to protect their deposits, and exceeds
Congress’s
constitutional authority. I therefore urge my colleagues to reject this
bill.
Instead of extending this federal program, Congress should work to
prevent the
crises which justify government programs like deposit insurance, by
fulfilling
our constitutional responsibility to pursue sound monetary policies.
2002 Ron Paul Chapter 32
http://www.house.gov/paul/congrec/congrec2002/cr052302.htm
Congressman Ron Paul
U.S. House of Representatives
May 23, 2002
No More Taxpayer Funds for the Failed Drug War in Colombia
2002 Ron Paul 32:1
Mr. PAUL. Mr. Chairman, I rise
in
strong support of this amendment, and I compliment the gentleman from
Massachusetts (Mr.
McGovern
) and the gentleman from Missouri
(Mr.
Skelton
)
for bringing this to us. There has been a lot of discussion in the last
2 days,
a lot about the deficit; and it strikes me as a bit of an irony,
especially
because it comes from many, and I have to say on both sides of the
aisle, that
do a lot to raise the national debt and the spending, and yet the
debate went on
and on. For some reason, I think there has been a lot of politics in
the debate.
2002 Ron Paul 32:2
The interesting thing about
what is
going on right now, there is no politics in this. This is about war,
and this is
important, and this is about policy. It is said that we would like to
get things
like this through without a full discussion; but this, to me, is a key
issue.
This amendment is about whether or not we will change our policy in
central
America and, specifically, in Colombia.
2002 Ron Paul 32:3
Mr. Chairman, a year or so ago
we
appropriated $1.6 billion, and we went into Colombia with the intent of
reducing
drug usage. Instead it is up 25 percent. Drug usage is going up! They
sprayed
210,000 acres, and now there are 53,000 more acres than ever before. It
reminds
me of Afghanistan. We have been in Afghanistan for less than a year and
drug
production is going up! I just wonder about the effectiveness of our
drug
program in Colombia.
2002 Ron Paul 32:4
But the theory is that we will
be more
effective if we change the policy. Pastrana tried to negotiate a peace
and we
were going too deal with the drugs, and we were going to have peace
after 40
years of a civil war. Now Uribi is likely to become President and the
approach
is to different. He said, no more negotiations. We will be fighting and
we want
American help, and we want a change in policy, and we do not want
spraying
fields; we want helicopters to fight a war. That is what we are dealing
with
here. We should not let this go by without a full discussion and a full
understanding, because in reality, there is no authority to support a
military
operation in Colombia.
2002 Ron Paul 32:5
What we are doing is we are
appropriating for something for the administration to do without a
proper
authority. He has no authority to get involved in the civil war down
there. We
cannot imply that the issue of war is granted through the appropriation
process.
It is not the way the system works. The constitutional system works
with
granting explicit authority to wage war. The President has no
authority, and now
he wants the money; and we are ready to capitulate. Let me tell my
colleagues,
if we care about national defense, we must reconsider this.
2002 Ron Paul 32:6
This dilutes our national
defense, it
dilutes our forces, exposes our troops, takes away our weapons,
increases the
expenditures. If we ignore this issue I guess we can go back to
demagoging the
national debt limit.
2002 Ron Paul 32:7
So I would say, please, take a
close
look at this. We do not need to be expanding our role in Colombia. The
drug war
down there has not worked, and I do not expect this military war that
we are
about to wage to work either. We need to talk about national defense,
and this
does not help our national defense. I fear this. I feel less secure
when we go
into areas like this, because believe me, this is the way that we get
troops in
later on. We already have advisory forces in Colombia. Does anybody
remember
about advisors and then eventually having military follow in other
times in our
history. Yes, this is a very risky change in policy. This is not just a
minor
little increase in appropriation.
2002 Ron Paul 32:8
So I would ask, once again,
where is
the authority? Where does the authority exists for our President to go
down and
expand a war in Colombia when it has nothing to do with our national
defense or
our security? It has more to do with oil than our national security,
and we know
it. There is a pipeline down there that everybody complains that it is
not well
protected. It is even designated in legislation, and we deal with this
at times.
So I would say think about the real reasons behind us going down there.
2002 Ron Paul 32:9
It just happens that we have
spread
ourselves around the world; we are now in nine countries of the 15
countries
that used to be part of the Soviet Union. And every country has
something to do
with oil. The Caspian Sea, Georgia, and why are we in the Persian Gulf?
We are
in the Persian Gulf to protect our oil. Why are we involved with
making
and interfering with the democratically elected leader of Venezuela? I
thought
we were for democracy, and yet the reports are that we may well have
participated in the attempt to have a democratically elected official
in
Venezuela removed. I think there is a little bit of oil in Venezuela as
well.
Could that have been the reason.
2002 Ron Paul 32:10
So I would say, once again,
please take
a look at this amendment. This amendment is a yes vote, and I urge
my
colleagues to support it.
2002 Ron Paul Chapter 33
http://www.house.gov/paul/congrec/congrec2002/cr052302b.htm
Congressman Ron Paul
U.S. House of Representatives
May 23, 2002
COMMEMORATING THE 50TH ANNIVERSARY OF THE CITY OF CLUTE, TEXAS
2002 Ron Paul 33:1
Mr. PAUL. Mr. Speaker, I am
pleased to
commemorate the 50th Anniversary of the incorporation of the City of
Clute,
Texas, which will be celebrated on June 2, 2002. Clute is a city of
just over
10,000 citizens in Brazoria County on the coast of Texas. Clute has a
very rich
heritage and played an important role in the development of the proud
state of
Texas.
2002 Ron Paul 33:2
The City of Clute began as
land deeded
to Alexander Calvit by Stephen F. Austin when holdings were parceled
out to the
Old 300, the first settlers in Texas. These settlers had to be tough
as
living on the Texas coastland in the early days was not for the weak or
faint of
heart.
2002 Ron Paul 33:3
Though the living was hard
these early
settlers contributed many things to the advancement of our state. The
first
milled lumber plantation house was built in Clute. Bricks used to build
homes
and buildings all over the coast of Texas were made from the high grade
clay
that was found only in Clute. That clay was used to make structures at
Ft.
Velasco, where in 1832 the Brazoria Militia staged the first battle for
Texas
Independence.
2002 Ron Paul 33:4
Now, many years later, Clute
is still
growing and achieving. Citizens raise their families in quiet and
serene
neighborhoods while contributing to some of the greatest chemical and
industrial
achievements in modern America.
2002 Ron Paul 33:5
The face of Clute has changed
but the
people are still the same brave, hardworking Texans that helped mold
the
Republic.
2002 Ron Paul 33:6
I am pleased to extend my best
wishes
to the people of Clute as the town celebrates its 50th birthday of
incorporation
and over 170 years of habitation by the original settlers of Texas. I
am sure
all my colleagues join me in extending congratulations and wishes for
many more
years of progress to the community of Clute, Texas.
2002 Ron Paul Chapter 34
http://www.house.gov/paul/congrec/congrec2002/cr052402.htm
Congressman Ron Paul
U.S. House of Representatives
May 24, 2002
Oppose the Supplemental Spending Bill
2002 Ron Paul 34:1
Mr. Speaker, supporters of
fiscal
responsibility, a rational foreign policy, and constitutional
government can
find little, it anything, to support in the Supplemental Appropriations
bill (HR
4775). HR 4775 enlarges the federal deficit, increases the size of the
federal
government, jeopardizes the Social Security trust fund, and, by
removing
resources from individuals and placing them under government control,
depresses
economic growth.
2002 Ron Paul 34:2
Despite being sold as a
national
security bill, most of the spending in this bill bears little
relationship to
protecting the American people from terrorism. For example, this bill
contains
funding for the Securities and Exchange Commission, federal courts, and
various
welfare programs. In addition, this bill spends millions on
unconstitutional
foreign aid. Mr. Speaker, some may say that foreign aid promotes
national
security, but if that were true America would be the most beloved
country on
earth. After all, almost every country in the world has in some way
benefited
from Congress willingness to send the American people’s money oversees.
2002 Ron Paul 34:3
Even much of the military
spending in
this bill has no relationship to legitimate national security needs.
Instead it
furthers an interventionist foreign policy which is neither
constitutional nor
in the best interests of the American people. For example, this
supplemental
contains a stealth attempt to shift our policy toward Colombia,
expanding our
already failed drug war to include direct participation in Colombia’s
38-year
civil war. Though a bill on Colombia was scheduled for markup in the
International Relations committee, for some reason it was pulled at the
last
minute. Therefore, the committee has not been able to debate this
policy shift
on Colombia. We are instead expected just not to notice, I suppose,
that the
policy shift has been included in this bill.
2002 Ron Paul 34:4
Our expanded interventionism
in
Colombia is called counterterrorism, but no one has even attempted
to demonstrate that Colombias civil war poses even a remote terrorist
threat to
the United States. In fact, the only terrorist threat from Colombia I
have seen
actually counsels against our deepening involvement. According to House
International Relations Committee briefing materials made available
last month:
2002 Ron Paul 34:5
We have hundreds of
temporary duty personnel in Colombia on any given day, in addition to
our agents from the Drug Enforcement Administration (DEA), military
advisors, contractors, and embassy personnel. If U.S. presence expands
to help Colombia fight terrorism as well, these alarming IRA explosives
tactics could be used directly and intentionally against American
facilities and employees.
2002 Ron Paul 34:6
If anything, this is an
argument
against getting more deeply involved in Colombias internal affairs, as
it
rightly recognizes that our involvement will only inflame the other
side and
thus open the door to retaliation against our interventionism.
2002 Ron Paul 34:7
The war on drugs in Colombia
is failing
miserably. Under Plan Colombia, coca production has increased 25
percent in the period between 2000 and 2001. The production of cocaine
increased
by roughly the same amount. More cocaine was coming out of Colombia
into the
United States at the end of 2001, during Plan Colombia, than at the end
of 2000,
before Plan Colombia. Is this a reason to expand our involvement into
Colombias
civil war?
2002 Ron Paul 34:8
US commercial interests- not
national
security- are a big factor in our shifting policy toward Colombia. We
have
already seen an administration request for an additional $98 million to
help
protect the Caño-Limon Pipeline - jointly owned by the Colombian
national oil
company and Occidental Petroleum. This supplemental will provide for
the first
installment of this money to be paid to protect Occidentals pipeline.
2002 Ron Paul 34:9
We are being dragged into a
civil war
in Colombia that has nothing to do with us and nothing to do with
international
terrorism. Those who want to send American money and troops into the
Colombian
quagmire do not want debate, because their claims that a 38 year civil
war
somehow has something to do with 9/11 ring hollow.
2002 Ron Paul 34:10
Finally, Mr. Speaker, I must
object to
this bill on the grounds that it enables further increases in
government
spending by providing a method to increases the debt ceiling. It is bad
enough
that Congress is increasing the debt limit, but this rule provides a
procedure
whereby the debt limit will be raised in conference, away from public
scrutiny.
It makes a mockery of open government to impose more government debt on
hardworking Americans and future generations by subterfuge.
2002 Ron Paul 34:11
In conclusion, Mr. Speaker, HR
4775
contains increases in unconstitutional spending on wide variety of
welfare
programs and foreign aid. It also ignores the true security interests
of the
American people by spending valuable resources on a flawed Colombian
policy.
This bill also creates conditions for further expansions in spending by
providing a procedure to raise the debt ceiling safe from public
scrutiny. HR
4775 thus threatens the liberty and prosperity of all Americans so I
urge my
colleagues to reject this bill.
2002 Ron Paul Chapter 35
http://www.house.gov/paul/congrec/congrec2002/cr053102.htm
May 31, 2002
AN OPEN LETTER TO TREASURY SECRETARY ONEILL AND FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN
2002 Ron Paul 35:1
Why Does the IMF Prohibit Gold-Backed Currency for its Member States?
2002 Ron Paul 35:2
(Congressman Ron Paul sent this letter to both the Treasury and the Federal
Reserve Bank in April. Neither has responded)
2002 Ron Paul 35:3
Dear Sirs:
I am writing regarding Article
4,
Section 2b of the International Monetary Fund (IMF)s Articles of
Agreement. As
you may be aware, this language prohibits countries who are members of
the IMF
from linking their currency to gold. Thus, the IMF is forbidding
countries
suffering from an erratic monetary policy from adopting the most
effective means
of stabilizing their currency. This policy could delay a countrys
recovery from
an economic crisis and retard economic growth, thus furthering economic
and
political instability.
2002 Ron Paul 35:4
I would greatly appreciate an
explanation from both the Treasury and the Federal Reserve of the
reasons the
United States has continued to acquiesce in this misguided policy.
Please
contact Mr. Norman Singleton, my legislative director, if you require
any
further information regarding this request. Thank you for your
cooperation in
this matter.
2002 Ron Paul 35:5
Ron Paul
U.S. House of Representatives
2002 Ron Paul Chapter 36
http://www.house.gov/paul/congrec/congrec2002/cr060502.htm
Congressman Ron Paul
U.S. House of Representatives
June 5, 2002
Gold and the Dollar
2002 Ron Paul 36:1
Mr. Speaker, I have for several years come to the House floor to
express my
concern for the value of the
dollar. It
has been, and is, my concern that we in the Congress have
not
met our responsibility in this regard. The constitutional mandate for
Congress
should only
permit silver
and gold
to be used as legal tender and has been ignored for decades and has
caused
much economic pain for many innocent Americans. Instead of maintaining
a sound
dollar, Congress has by both
default and
deliberate action promoted a policy that systematically
depreciates
the dollar. The financial markets are keenly aware of the
minute-by-minute
fluctuations of all the fiat
currencies
and look to these swings in value for an investment
advantage.
This type of anticipation and speculation does not exist in a sound
monetary
system.
2002 Ron Paul 36:2
But Congress should be
interested in
the dollar fluctuation not as an investment but because of
our
responsibility for maintaining a sound and stable currency, a
requirement for
sustained
economic growth.
2002 Ron Paul 36:3
The consensus now is that the
dollar is
weakening and the hope is that the drop in its value
will
be neither too much nor occur too quickly; but no matter what the spin
is, a
depreciating
currency,
one that is
losing its value against goods, services, other currencies and gold,
cannot
be beneficial and may well be
dangerous. A
sharply dropping dollar, especially since it is the
reserve
currency of the world, can play havoc with the entire world economy.
2002 Ron Paul 36:4
Gold is historys oldest and
most
stable currency. Central bankers and politicians hate gold
because
it restrains spending and denies them the power to create money and
credit out
of thin
air. Those who
promote big
government, whether to wage war and promote foreign
expansionism
or to finance the welfare state here at home, cherish this power.
2002 Ron Paul 36:5
History and economic law are
on the
side of the gold. Paper money always fails.
Unfortunately,
though, this occurs only after many innocent people have suffered the
consequences
of the fraud that paper money represents. Monetary inflation is a
hidden tax
levied
more on the poor
and those
on fixed incomes than the wealthy, the bankers, or the corporations.
2002 Ron Paul 36:6
In the past 2 years, gold has
been the
strongest currency throughout the world in spite of
persistent
central bank selling designed to suppress the gold price in hopes of
hiding the
evil
caused by the
inflationary
policies that all central bankers follow. This type of depreciation only
works
for short periods; economic law always rules over the astounding power
and
influence of
central
bankers.
2002 Ron Paul 36:7
That is what is starting to
happen, and
trust in the dollar is being lost. The value of the dollar
this
year is down 18 percent compared to gold. This drop in value should not
be
ignored by
Congress. We
should
never have permitted this policy that was deliberately designed to
undermine
the value of the currency.
2002 Ron Paul 36:8
There are a lot of reasons the
market
is pushing down the value of the dollar at this time. But
only
one is foremost. Current world economic and political conditions lead
to less
trust in the
dollars
value.
Economic strength here at home is questionable and causes concerns. Our
huge
foreign debt is more than $2
trillion, and
our current account deficit is now 4 percent of GDP
and
growing. Financing this debt requires borrowing $1.3 billion per day
from
overseas. But
these
problems are
ancillary to the real reason that the dollar must go down in value. For
nearly
7 years the U.S. has had the
privilege of
creating unlimited amounts of dollars with foreigners
only
too eager to accept them to satisfy our ravenous appetite for consumer
items.
The markets
have yet to
discount
most of this monetary inflation. But they are doing so now; and for us
to
ignore what is happening, we do
so at the
Nations peril. Price inflation and much higher interest
rates
are around the corner.
2002 Ron Paul 36:9
Misplaced confidence in a
currency can
lead money managers and investors astray, but
eventually
the piper must be paid. Last years record interest rate drop by the
Federal
Reserve
was like pouring
gasoline
on a fire. Now the policy of the past decade is being recognized as
being
weak for the dollar; and trust and confidence in it is justifiably
being
questioned.
2002 Ron Paul 36:10
Trust in paper is difficult to
measure
and anticipate, but long-term value in gold is dependable
and
more reliably assessed. Printing money and creating artificial credit
may
temporarily lower
interest
rates,
but it also causes the distortions of malinvestment, overcapacity,
excessive
debt
and speculation.
These
conditions cause instability, and market forces eventually overrule the
intentions
of the central bankers. That is when the apparent benefits of the easy
money
disappear, such as we
dramatically have
seen with the crash of the dot-coms and the Enrons and
many
other stocks.
2002 Ron Paul 36:11
Now it is back to reality.
This is
serious business, and the correction that must come to adjust for
the
Federal Reserves mischief of the past 30 years has only begun.
Congress must
soon
consider significant
changes
in our monetary system.
2002 Ron Paul 36:12
Congress must soon consider
significant
changes in our monetary system if we hope to
preserve
a system of sound growth and wealth preservation. Paper money managed
by the
Federal Reserve System cannot
accomplish
this. In fact, it does the opposite.
2002 Ron Paul Chapter 37
http://www.house.gov/paul/congrec/congrec2002/cr060502b.htm
Congressman Ron Paul
U.S. House of Representatives
June 5, 2002
EXPORT-IMPORT BANK IS CORPORATE WELFARE
2002 Ron Paul 37:1
Mr. PAUL. Madam Speaker, I rise
in opposition to this bill. This bill is nothing more than subsidies
for big corporations. If
one were to look at the Constitution and look for authority for
legislation of this sort in article I, section 8, it would not be
found. That in itself should be reason to stop and think about this,
but we do not look at that particular article too often any
more.
2002 Ron Paul 37:2
Also for moral reasons, I object to this. Even if we accepted the idea that we should interfere and be involved in this type of
activity, it is unfair because the little guy gets squeezed and the big
guy gets all of the money. It is not morally fair because it
cannot be.
2002 Ron Paul 37:3
One thing that annoys me the most is when Members come to the floor and in the name of free trade say we have to support
the Export-Import Bank. This is the opposite of free trade. Free trade
is good. Low tariffs are good, which lead to lower
prices; but subsidies to our competitors is not free trade. We should
call it for what it is. We have Members who claim they are
free traders, and yet support managed trade through NAFTA and WTO and
all these special interest management schemes, as
well as competitive devaluation of currencies with the notion that we
might increase exports. This has nothing to do with free
trade.
2002 Ron Paul 37:4
I am a strong advocate for free trade, and for that reason I think this bill should not be passed. There are good economic
reasons not to support this. Because some who favor this bill argue
that some of these companies are doing risky things and
they do not qualify in the ordinary banking system for these loans and,
therefore, they need a little bit of help. That is precisely
when we should not be helping. If there is a risk, it is telling us
there is something wrong and we should not do it. It is
transferring the liability from the company to the taxpayer. So the
risk argument does not hold water at all.
The other reason why economically it is unsound, is that this is a
form of credit allocation. If a bank has money and they can
get a guarantee from the Export-Import Bank, they will always choose
the guarantee over the nonguarantee, so who gets
squeezed. The funds are taken out of the investment pool. The little
people get squeezed. They do not get the loan, but they are
totally unknown. Nobody sees those who did not get a loan. All we see
is the loan that benefits somebody on the short run. But
really on the long run, it benefits the big corporations. Many times it
doesnt even do that.
2002 Ron Paul 37:5
Take a look at Enron. We have mentioned Enron quite a few times already. If we add up all of the subsidies to Enron, it adds
up to $1.9 billion. That is if we add up the subsidies from OPIC as
well. And look at what Enron did. They ran a
few risks,
and then they lost it. Who was left holding the bag? The
taxpayers.
2002 Ron Paul 37:6
Madam Speaker, I strongly urge a no vote on this bill. If Members
are for free trade, they will vote against this bill, and will
vote for true free trade.
2002 Ron Paul Chapter 38
http://www.house.gov/paul/congrec/congrec2002/cr061202.htm
Congressman Ron Paul
U.S. House of Representatives
June 12, 2002
AFFORDABILITY OF CHILD HEALTH CARE
2002 Ron Paul 38:1
Mr. PAUL. Mr. Speaker, I am pleased to
help working Americans provide for their childrens health care needs
by
introducing the Child Health Care Affordability Act. The Child Health
Care
Affordability Act provides parents with a tax credit of up to $500 for
health
care expenses of dependent children. Parents caring for a child with a
disability, terminal disease, cancer, or any other health condition
requiring
specialized care would receive a tax credit of up to $3,000 to help
cover their
childs health care expenses. The tax credit would be available to all
citizens
regardless of whether or not they itemize their deductions.
2002 Ron Paul 38:2
The tax credits provided in
this bill
will be especially helpful to those Americans whose employers cannot
afford to
provide their employees health insurance. These workers must struggle
to meet
the medical bills of themselves and their families. This burden is
especially
heavy on, parents whose children have a medical condition, such as
cancer or a
physical disability, which requires long-term or specialized health
care.
2002 Ron Paul 38:3
As an OB-GYN who has had the
privilege
of delivering more than four thousand babies, I know how important it
is that
parents have the resources to provide adequate health care for their
children.
The inability of many working Americans to provide health care for
their
children is rooted in one of the great inequities of the tax code:
Congress
failure to allow individuals the same ability to deduct health care
costs that
it grants to businesses. As a direct result of Congress refusal to
provide
individuals with health care related tax credits, parents whose
employers do not
provide health insurance have to struggle to provide health care for
their
children. Many of these parents work in low-income jobs; oftentimes
their only
recourse to health care is the local emergency room.
2002 Ron Paul 38:4
Sometimes parents are forced
to delay
seeking care for their children until minor health concern that could
have been
easily treated become serious problems requiring expensive treatment!
If these
parents had access to the type of tax credits provided in the Child
Health Care
Affordability Act, they would be better able to provide care for their
children,
and our nations already overcrowded emergency room facilities would be
relieved
of the burden of having to provide routine care for people who
otherwise cannot
afford it.
2002 Ron Paul 38:5
According to research on the
effects of
this bill done by my staff and legislative counsel, the benefit of
these tax
credits would begin to be felt by joint filers with incomes slightly
above
$18,000 dollars a year, or single income filers with incomes slightly
above
$15,000 per year. Clearly this bill will be of the most benefit to
low-income
Americans balancing the demands of taxation with the needs of their
children.
2002 Ron Paul 38:6
Under the Child Health Care
Affordability Act, a struggling single mother with an asthmatic child
would at
last be able to provide for her childs needs; while a working-class
family will
not have to worry about how they will pay the bills if one of their
children
requires lengthy hospitalization or some other form of specialized care.
2002 Ron Paul 38:7
Mr. Speaker, this Congress has
a moral
responsibility to provide tax relief for low-income parents struggling
to care
for a sick child, in order to help them better meet their childs
medical
expenses. Some may say that we cannot enact the Child Health Care
Affordability
Act because it would cause the government to lose revenue, but who is
more
deserving of this money, Congress or the working parents of a sick
child?
2002 Ron Paul 38:8
The Child Health Care
Affordability Act
takes a major step toward helping working Americans meet their health
care needs
by providing them with generous health care related tax cuts and tax
credits. I
urge my colleagues to support the pro-family, pro-health care tax cuts
contained
in the Child Health Care Affordability Act.
2002 Ron Paul Chapter 39
http://www.house.gov/paul/congrec/congrec2002/cr061202b.htm
Congressman Ron Paul
U.S. House of Representatives
June 12, 2002
BAD TAX POLICY SENDS COMPANIES OVERSEAS
2002 Ron Paul 39:1
Mr. PAUL. Mr. Speaker, I wish to
call my
colleagues attention to the following article entitled Bad Tax
Policy: You Can Run ..... by Daniel Mitchell, McKenna Senior Fellow at the
Heritage
Foundation. Mr. Mitchell discusses the practice of companies
reincorporating in
foreign jurisdictions to reduce their tax liability. As Mr. Mitchell
points out,
reincorporation benefits shareholders and American workers. This is
because
reincorporation In a low-tax foreign jurisdiction makes companies more
competitive, thus enabling the companies to create new and better jobs
for
working Americans. Furthermore, reincorporation helps protect American
companies
from corporate takeovers by foreign investors. Americas
anti-competitive tax
system is a major reason why several US companies have been taken over
by
foreign business interests.
2002 Ron Paul 39:2
In the vast majority of cases,
when a
company moves its corporate headquarters to a foreign jurisdiction, it
maintains
its physical operations in America. In fact, Mr. Speaker, Stanley
Company, whose
recently-announced decision to incorporate in Bermuda has caused much
handwringing over reincorporation, will not be laying off a single
American
worker as a consequence of their action!
2002 Ron Paul 39:3
Though reincorporation
benefits
American investors and workers, some of my colleagues have objected to
reincorporation because this action deprives the government of revenue.
Some
have even gone so far as to question the patriotism of companies that
reincorporate. However, there is nothing unpatriotic about trying to
minimize
ones tax burden to enhance economic competitiveness. In fact, it could
be
argued that since reincorporation helps companies create new jobs and
expand the
American economy, those who reincorporate are behaving patriotically.
2002 Ron Paul 39:4
One also could argue that it
is those
who oppose reincorporation who do not grasp the essence of the American
system.
After all, two of the main principles underlying the Constitution and
the
Declaration of Independence are limited government and respect for
private
property. In contrast, opponents of reincorporation implicitly assume
that the
government owns all of a nations assets; therefore taxpayers never
should take
any actions to deny government what the politicians have determined to
be their
fair share. Mr. Speaker, this philosophy has more in common with
medieval feudalism than with the constitutional republic created by the
drafters
of the Constitution.
2002 Ron Paul 39:5
In conclusion, Mr. Speaker, I
once
again urge my colleagues to read Mr. Mitchells article, which
forcefully makes
the case that taxing offshore income is economically destructive. Such
taxation
also is inconsistent with the respect for individual liberty and
private
property rights which forms the foundation of Americas constitutional
republic,
as well as a threat to the sovereign right of nations to determine the
tax
treatment of income earned inside national borders. I hope my
colleagues will
reject efforts to subject companies that reincorporate overseas to
burdensome
new taxes and regulations. Expanding federal power in order to prevent
companies
from reincorporating will only kill American jobs and further weaken
Americas
economy.
2002 Ron Paul 39:6
[From the Washington Times, May 8, 2002]
BAD TAX POLICY: YOU CAN RUN .....
(By Daniel Mitchell)
2002 Ron Paul 39:7
The worst Supreme Court
decision of all
time? One of the leading candidates has to be the infamous 1857 Dred
Scott
decision, in which the Supreme Court ruled that slaves did not gain
freedom by
escaping to nonslave states.
2002 Ron Paul 39:8
Instead, they were considered
property
and had to be returned to their owners.
2002 Ron Paul 39:9
Some U.S. companies soon may
be treated
in a similar manner, thanks to legislation being touted by Sens. Max
Baucus,
Montana Democrat, and Charles Grassley, Iowa Republican.
2002 Ron Paul 39:10
It all starts with the
Internal Revenue
Code, which forces U.S.-based companies to pay an extra layer of tax on
income
earned in other countries.
2002 Ron Paul 39:11
In an effort to protect the
interests
of workers, shareholders and consumers, some of these companies are
escaping bad
U.S. tax law by rechartering in Bermuda.
2002 Ron Paul 39:12
This is a win-win situation
for
America. We get to keep factories and headquarters in America, and our
companies
remain on a level playing field with businesses based in Europe and
elsewhere.
2002 Ron Paul 39:13
Not so fast, Sens. Baucus and
Grassley
are saying. They want to stop corporate expatriations, even though
they
keep American jobs in America and help U.S. companies compete with
their
counterparts in Europe and Asia.
2002 Ron Paul 39:14
Their legislation would forbid
U.S.
companies from re-chartering in countries with better tax laws.
2002 Ron Paul 39:15
The politicians who support
this are
acting as if these companies belonged to the government. Yet when House
Minority
Leader Richard Gephardt, Missouri Democrat, for instance, accuses them
of being
unpatriotic, he never explains whats so patriotic
about
higher taxes and noncompetitive tax policy.
2002 Ron Paul 39:16
Republicans are doing their
share of
business-bashing, too. Mr. Grassley claims that corporate expatriations
are
:immoral,'' as if companies would be moral if they instead kept their
U.S.
charters and fired some of their workers.
2002 Ron Paul 39:17
If politicians are upset that
some
companies want to recharter, they should blame themselves for trying to
tax
worldwide income. An American firm competing against a Dutch firm
for a
contract in Ireland, for instance, must pay a 35 percent tax on its
income ndash; and
the lions share goes to the IRS.
2002 Ron Paul 39:18
The Dutch firm, by contrast,
pays only
the 10 percent Irish tax on its Irish-source income because the
Netherlands
doesnt tax income earned outside its borders.
2002 Ron Paul 39:19
Before giving the IRS more
power,
politicians should consider the following:
2002 Ron Paul 39:20
Expatriation helps control
government
waste. High-tax California cant stop companies from moving to low-tax
Nevada.
Knowing this helps deter the big-spenders in the state capitol from
wasting even
more money. The politicians in Massachusetts must exercise some
restraint
because they know local businesses can flee to low-tax New Hampshire.
Nations
also should be subject to market discipline. This is why Washington
politicians
shouldnt stop companies from escaping bad U.S. tax law.
2002 Ron Paul 39:21
Expatriation protects American
jobs.
Rechartering in another jurisdiction doesnt mean factories will go
overseas.
Nor does it require a company to move its headquarters. It simply means
a
company is chartered under the laws of a different jurisdiction, much
as many
American companies are chartered in Delaware, but operate factories and
have
their home offices in other states. In the case of expatriations, the
newly
formed foreign company still maintains its U.S. operations, but now
wont have
to fire workers since it can compete more effectively with overseas
businesses.
2002 Ron Paul 39:22
Expatriation is not tax
evasion. All
corporations, regardless of where theyre based, pay tax to the IRS on
all
profits they earn in the United States. This is true of U.S.-based
companies,
and its true of all foreign-based companies- including those that
expatriate.
All that changes is that expatriating companies no longer have to pay
taxes on
income earned outside Americas borders. Since worldwide taxation is
misguided
tax policy, this is a positive result. Indeed, every tax reform plan,
including
the flat tax, is based on this common-sense principle of territorial
taxation.
2002 Ron Paul 39:23
Now is hardly the time, with
the
economy in the midst of recovery, for Washington politicians to make
U.S.
companies less competitive. Nor is it the time to give the IRS the
power to
prohibit businesses from rechartering in jurisdictions with more
sensible tax
laws. Instead of treating companies as if theyre federal property,
Sens.
Grassley and Baucus should be fixing the problems in the tax code.
2002 Ron Paul Chapter 40
http://www.house.gov/paul/congrec/congrec2002/cr061302.htm
Congressman Ron Paul
U.S. House of Representatives
June 13, 2002
RESTORING FIRST AMENDMENT PROTECTIONS OF RELIGION AND RELIGIOUS SPEECH
2002 Ron Paul 40:1
Mr. PAUL. Mr. Speaker, I rise
to
introduce legislation restoring First amendment protections of religion
and
religious speech. For fifty years, the personal religious freedom of
this
nations citizens has been infringed upon by courts that misread and
distort the
First amendment. The framers of the Constitution never in their worst
nightmares
imagined that the words, Congress shall make no law respecting an
establishment of religion or prohibiting the free exercise thereof; or
abridging
the freedom of speech ..... would be used to ban children from
praying in
school, prohibit courthouses from displaying the Ten Commandments, or
prevent
citizens from praying before football games. The original meaning of
the First
amendment was clear on these two points: The federal government cannot
enact
laws establishing one religious denomination over another, and the
federal
government cannot forbid mention of religion, including the Ten
Commandments and
references to God.
2002 Ron Paul 40:2
In case after case, the
Supreme Court
has used the infamous separation of church and state metaphor to
uphold
court decisions that allow the federal government to intrude upon and
deprive
citizens of their religious liberty. This separation doctrine is
based upon a
phrase taken
out of
context from a letter written by Thomas Jefferson to the Danbury
Baptists on
January 1, 1802. In the letter, Jefferson simply reassures the Baptists
that the
First amendment would preclude an intrusion by the federal government
into
religious matters between denominations. It is ironic and sad that a
letter
defending the principle that the federal government must stay out of
religious
affairs. should be used two hundred years later to justify the Supreme
Court
telling a child that he cannot pray in school!
2002 Ron Paul 40:3
The Court completely
disregards the
original meaning and intent of the First amendment. It has interpreted
the
establishment clause to preclude prayer and other religious speech in a
public
place, thereby violating the free exercise clause of the very same
First
amendment. Therefore, it is incumbent upon Congress to correct this
error, and
to perform its duty to support and defend the Constitution. My
legislation would
restore First amendment protections of religion and speech by removing
all
religious freedom-related cases from federal district court
jurisdiction, as
well as from federal claims court jurisdiction. The federal government
has no
constitutional authority to reach its hands in the religious affairs of
its
citizens or of the several states.
2002 Ron Paul 40:4
As James Madison said, There
are
more instances of the abridgement of the freedom of the people by the
gradual
and silent encroachment of those in power, than by violent and sudden
usurpation. I sincerely hope that my colleagues will fight against the
gradual and silent encroachment of the courts upon our nations
religious liberties by supporting this bill.
2002 Ron Paul Chapter 41
http://www.house.gov/paul/congrec/congrec2002/cr062402.htm
Congressman Ron Paul
U.S. House of Representatives
June 24, 2002
Inspection or Invasion in Iraq?
2002 Ron Paul 41:1
Mr. PAUL. Mr. Speaker, I call my colleagues attention to a recent
article by
Scott Ritter, former chief UN weapons inspector in Iraq, published in
the Los
Angeles Times. In this article, Mr. Ritter makes a salient point that
deserves
careful and serious consideration in this body: how will it be possible
to
achieve the stated administration goal of getting weapons inspectors
back into
Iraq when the administration has made it known that it intends to
assassinate
the Iraqi leader?
2002 Ron Paul 41:2
If nothing else, Saddam Hussein has proven himself a survivor. Does anyone
believe that he will allow inspectors back into his country knowing
that any one
of them might kill him? Is it the intention of the administration to
get
inspectors back into Iraq and thus answers to lingering and critical
questions
regarding Iraqs military capabilities, or is the intent to invade that
country
regardless of the near total absence of information and actually make
it
impossible for Suddam Hussein to accept the inspectors?
2002 Ron Paul 41:3
Mr. Ritter, who as former chief UN inspector in Iraq probably knows that
country better than any of us here, made some excellent points in a
recent
meeting with Republican members of Congress. According to Mr. Ritter,
no
American-installed regime could survive in Iraq. Interestingly, Mr.
Ritter noted
that though his rule is no doubt despotic, Saddam Hussein has been
harsher
toward Islamic fundamentalism than any other Arab regime. He added that
any U.S.
invasion to remove Saddam from power would likely open the door to an
anti-American fundamentalist Islamic regime in Iraq. That can hardly be
viewed
in a positive light here in the United States. Is a policy that
replaces a bad
regime with a worse regime the wisest course to follow?
2002 Ron Paul 41:4
Much is made of Iraqi National Congress leader Ahmed Chalabi, as a potential
post-invasion leader of Iraq. Mr. Ritter told me that in his many
dealings with
Chalabi, he found him to be completely unreliable and untrustworthy. He
added
that neither he nor the approximately 100 Iraqi generals that the US is
courting
have any credibility inside Iraq, and any attempt to place them in
power would
be rejected in the strongest manner by the Iraqi people. Hundreds, if
not
thousands, of American military personnel would be required to occupy
Iraq
indefinitely if any American-installed regime is to remain in power.
Again, it
appears we are creating a larger problem than we are attempting to
solve.
2002 Ron Paul 41:5
Similarly, proponents of a US invasion of Iraq often cite the Kurds in the
northern part of that country as a Northern Alliance-like ally, who
will do much
of our fighting on the ground and unseat Saddam. But just last week the
Washington Times reported that neither of the two rival Kurdish groups
in
northern Iraq want anything to do with an invasion of Iraq.
2002 Ron Paul 41:6
In the meeting last month, Scott Ritter reminded members of Congress that a
nation cannot go to war based on assumptions and guesses, that a lack
of
knowledge is no basis on which to initiate military action. Mr. Ritter
warned
those present that remaining quiescent in the face of the
administrations
seeming determination to exceed the authority granted to go after those
who
attacked us, will actually hurt the president and will hurt Congress.
He
concluded by stating that going in to Iraq without
Congressionally-granted
authority would be a failure of American democracy. Those pounding
the
war drums loudest for an invasion of Iraq should pause for a moment and
ponder
what Scott Ritter is saying. Thousands of lives are at stake.
[From the Los Angeles Times, June 19, 2002]
BEHIND PLOT ON HUSSEIN, A SECRET AGENDA
(By Scott Ritter)
2002 Ron Paul 41:7
President Bush has reportedly authorized the CIA to use all of the means at
its disposal- including U.S. military special operations forces and CIA
paramilitary teams- to eliminate Iraqs Saddam Hussein. According to
reports,
the CIA is to view any such plan as preparatory for a larger
military strike.
2002 Ron Paul 41:8
Congressional leaders from both parties have greeted these reports with
enthusiasm. In their rush to be seen as embracing the presidents
hard-line
stance on Iraq, however, almost no one in Congress has questioned why a
supposedly covert operation would be made public, thus undermining the
very
mission it was intended to accomplish.
2002 Ron Paul 41:9
It is high time that Congress start questioning the hype and rhetoric
emanating from the White House regarding Baghdad, because the leaked
CIA plan is
well timed to undermine the efforts underway in the United Nations to
get
weapons inspectors back to work in Iraq. In early July, the U.N.
secretary-general will meet with Iraqs foreign minister for a third
round of
talks on the return of the weapons monitors. A major sticking point is
Iraqi
concern over the use- or abuse- of such inspections by the U.S. for
intelligence
collection.
2002 Ron Paul 41:10
I recall during my time as a chief inspector in Iraq the dozens of extremely
fit missile experts and logistics specialists who frequented my
inspection teams and others. Drawn from U.S. units such as Delta Force
or from
CIA paramilitary teams such as the Special Activities Staff (both of
which have
an ongoing role in the conflict in Afghanistan), these specialists had
a
legitimate part to play in the difficult cat-and-mouse effort to disarm
Iraq. So
did the teams of British radio intercept operators I ran in Iraq from
1996 to
1998- which listened in on the conversations of Husseins inner circle-
and the
various other intelligence specialists who were part of the inspection
effort.
2002 Ron Paul 41:11
The presence of such personnel on inspection teams was, and is, viewed by the
Iraqi government as an unacceptable risk to its nations security.
2002 Ron Paul 41:12
As early as 1992, the Iraqis viewed the teams I led inside Iraq as a threat
to the safety of their president. They were concerned that my
inspections were
nothing more than a front for a larger effort to eliminate their
leader.
2002 Ron Paul 41:13
Those concerns were largely baseless while I was in Iraq. Now that Bush has
specifically authorized American covert-operations forces to remove
Hussein,
however, the Iraqis will never trust an inspection regime that has
already shown
itself susceptible to infiltration and manipulation by intelligence
services
hostile to Iraq, regardless of any assurances the U.N.
secretary-general might
give.
2002 Ron Paul 41:14
The leaked CIA covert operations plan effectively kills any chance of
inspectors returning to Iraq, and it closes the door on the last
opportunity for
shedding light on the true state of affairs regarding any threat in the
form of
Iraq weapons of mass destruction.
2002 Ron Paul 41:15
Absent any return of weapons inspectors, no one seems willing to challenge
the Bush administrations assertions of an Iraqi threat. If Bush has a
factual
case against Iraq concerning weapons of mass destruction, he hasnt
made it yet.
2002 Ron Paul 41:16
Can the Bush administration substantiate any of its claims that Iraq continues to pursue efforts to reacquire its capability to produce
chemical and
biological weapons, which was dismantled and destroyed by U.N. weapons
inspectors from 1991 to 1998? The same question applies to nuclear
weapons. What
facts show that Iraq continues to pursue nuclear weapons aspirations?
2002 Ron Paul 41:17
Bush spoke ominously of an Iraqi ballistic missile threat to Europe. What
missile threat is the president talking about? These questions are
valid, and if
the case for war is to be made, they must be answered with more than
speculative
rhetoric.
2002 Ron Paul 41:18
Congress has seemed unwilling to challenge the Bush administrations pursuit
of war against Iraq. The one roadblock to an all- out U.S. assault
would be
weapons inspectors reporting on the facts inside Iraq. Yet without any
meaningful discussion and debate by Congress concerning the nature of
the threat
posed by Baghdad, war seems all but inevitable.
2002 Ron Paul 41:19
The true target of the supposed CIA plan may not be Hussein but rather the
weapons inspection program itself. The real casualty is the last chance
to avoid
bloody conflict.
2002 Ron Paul Chapter 42
http://www.house.gov/paul/congrec/congrec2002/cr062502.htm
Congressman Ron Paul
U.S. House of Representatives
June 25, 2002
Introduction of the Public Safety Tax Cut Act:
2002 Ron Paul 42:1
Mr. Speaker, I am pleased to
introduce the Public Safety Tax
Cut Act. This legislation will achieve two important public policy
goals. First,
it will effectively overturn a ruling of the Internal Revenue Service
which has declared as taxable income the waiving of
fees by local governments who provide service for public safety volunteers.
2002 Ron Paul 42:2
Many local governments use volunteer firefighters and auxiliary police either in place of,
or as a supplement to, their public safety professionals. Often as an incentive to
would-be volunteers, the local entities waive all or a portion of the fees typically charged for
city services such as the provision of drinking water, sewer charges, or debris pick up.
2002 Ron Paul 42:3
Local entities make these decisions for the purpose of encouraging folks to volunteer, and seldom do these benefits come anywhere near the level of a true compensation
for the many hours of training and service required of the volunteers. This, of course, does not even
mention the fact that these volunteers very possibly could be called into a situation where
they have to put their lives on the line.
2002 Ron Paul 42:4
Rather than encouraging this
type of volunteerism, which is so
crucial, particularly to
Americas
rural communities, the IRS has decided that the provision of the
benefits
described above amount to taxable
income.
Not only does this adversely affect the
financial
position of the volunteer by imposing new taxes upon him or her, it has
in fact
led
local entities
to stop
providing these benefits, thus taking away a key tool they have used to
recruit volunteers. That is why
the IRS
ruling in this instance has a substantial negative
impact
on the spirit of American volunteerism. How far could this go? For
example,
would
consistent
application
mean that a local Salvation Army volunteer must be taxed for the value
of
a complimentary ticket to that
organizations annual county dinner? This is obviously bad
policy.
2002 Ron Paul 42:5
This legislation would rectify
the situation by specifically
exempting these types of
benefits
from federal taxation.
2002 Ron Paul 42:6
Next, this legislation would
also provide paid professional
police and fire officers with a
$1,000
per year tax credit. These professional public safety officers put
their lives
on the
line each
and every
day, and I think we all agree that there is no way to properly
compensate
them for the fabulous services they provide. In America we have a
tradition of
local, as opposed to federal, law
enforcement and public safety provision. So, while it is not the role
of our
federal government to increase the salaries of local officers, it
certainly is
within our authority to increase their take-home pay by reducing the
amount of
money that we take from their pockets via federal taxation, and that is
something this bill specifically does as well.
2002 Ron Paul 42:7
President George Bush has
called on Americans to volunteer
their time and energy to enhance public safety. Shouldn’t Congress do
its part
by reducing taxes that discourage public safety volunteerism? Shouldn’t
Congress also show its appreciation to police officers and fire
fighters by
reducing their taxes? I believe the answer to both of these questions
is a
resounding Yes, and therefore I am proud to introduce the Public
Safety Tax Cut Act. I request that my fellow Members join in support of
this key
legislation.
2002 Ron Paul Chapter 43
http://www.house.gov/paul/congrec/congrec2002/cr062502b.htm
Congressman Ron Paul
U.S. House of Representatives
June 25, 2002
Introduction of the Police Security Protection Act
2002 Ron Paul 43:1
Mr. Speaker, I am pleased to help America’s law
enforcement
officers by introducing the Police Security Protection Act. This
legislation
provides police officers with a tax credit for the purchase of armored
vests.
2002 Ron Paul 43:2
As recent events have reminded us, professional law
enforcement officers put their lives on the line each and every day.
Reducing
the tax liability of law enforcement officers so they can afford
armored vests
is one of the best ways Congress can help these brave men and women.
After all,
an armored vest literally could make the difference between life or
death for a
police officer, I hope my colleagues will join me in helping our
nation’s law
enforcement officers by cosponsoring the Police Security Protection Act.
2002 Ron Paul Chapter 44
http://www.house.gov/paul/congrec/congrec2002/cr062702.htm
Congressman Ron Paul
U.S. House of Representatives
June 27, 2002
Is America a Police State?
2002 Ron Paul 44:1
Mr. Speaker:
Most Americans believe we live in dangerous times, and I must agree.
Today I
want to talk about how I see those dangers and what Congress ought to
do about
them.
2002 Ron Paul 44:2
Of course, the Monday-morning quarterbacks are now explaining, with political
overtones, what we should have done to prevent the 9/11 tragedy.
Unfortunately,
in doing so, foreign policy changes are never considered.
2002 Ron Paul 44:3
I have, for more than two decades, been severely critical of our post-World
War II foreign policy. I have perceived it to be not in our best
interest and
have believed that it presented a serious danger to our security.
2002 Ron Paul 44:4
For the record, in January of 2000 I stated the following on this floor:
2002 Ron Paul 44:5
Our commercial interests and foreign policy are no longer separate...as
bad as it is that average Americans are forced to subsidize such a
system, we
additionally are placed in greater danger because of our arrogant
policy of
bombing nations that do not submit to our wishes. This generates hatred
directed
toward America ...and exposes us to a greater threat of terrorism,
since this is
the only vehicle our victims can use to retaliate against a powerful
military
state...the cost in terms of lost liberties and unnecessary exposure to
terrorism is difficult to assess, but in time, it will become apparent
to all of
us that foreign interventionism is of no benefit to American citizens,
but
instead is a threat to our liberties.
2002 Ron Paul 44:6
Again, let me remind you I made these statements on the House floor in
January 2000. Unfortunately, my greatest fears and warnings have been
borne out.
2002 Ron Paul 44:7
I believe my concerns are as relevant today as they were then. We should move
with caution in this post-9/11 period so we do not make our problems
worse
overseas while further undermining our liberties at home.
2002 Ron Paul 44:8
So far our post-9/11 policies have challenged the rule of law here at home,
and our efforts against the al Qaeda have essentially come up
empty-handed. The
best we can tell now, instead of being in one place, the members of the
al Qaeda
are scattered around the world, with more of them in allied Pakistan
than in
Afghanistan. Our efforts to find our enemies have put the CIA in 80
different
countries. The question that we must answer some day is whether we can
catch
enemies faster than we make new ones. So far it appears we are losing.
2002 Ron Paul 44:9
As evidence mounts that we have achieved little in reducing the terrorist
threat, more diversionary tactics will be used. The big one will be to
blame
Saddam Hussein for everything and initiate a major war against Iraq,
which will
only generate even more hatred toward America from the Muslim world.
2002 Ron Paul 44:10
But, Mr. Speaker, my subject today is whether America is a police state. Im
sure the large majority of Americans would answer this in the negative.
Most
would associate military patrols, martial law and summary executions
with a
police state, something obviously not present in our everyday
activities.
However, those with knowledge of Ruby Ridge, Mount Carmel and other
such
incidents may have a different opinion.
2002 Ron Paul 44:11
The principal tool for sustaining a police state, even the most militant, is
always economic control and punishment by denying disobedient citizens
such
things as jobs or places to live, and by levying fines and
imprisonment. The
military is more often used in the transition phase to a totalitarian
state.
Maintenance for long periods is usually accomplished through economic
controls
on commercial transactions, the use of all property, and political
dissent.
Peaceful control through these efforts can be achieved without storm
troopers on
our street corners.
2002 Ron Paul 44:12
Terror and fear are used to achieve complacency and obedience, especially
when citizens are deluded into believing they are still a free people.
The
changes, they are assured, will be minimal, short-lived, and necessary,
such as
those that occur in times of a declared war. Under these conditions,
most
citizens believe that once the war is won, the restrictions on their
liberties
will be reversed. For the most part, however, after a declared war is
over, the
return to normalcy is never complete. In an undeclared war, without a
precise
enemy and therefore no precise ending, returning to normalcy can prove
illusory.
2002 Ron Paul 44:13
We have just concluded a century of wars, declared and undeclared, while at
the same time responding to public outcries for more economic equity.
The
question, as a result of these policies, is: Are we
already
living
in a police state? If we are, what are we going to do about it? If we
are
not, we need to know if theres any danger that were moving in that
direction.
2002 Ron Paul 44:14
Most police states, surprisingly, come about through the democratic process
with majority support. During a crisis, the rights of individuals and
the
minority are more easily trampled, which is more likely to condition a
nation to
become a police state than a military coup. Promised benefits initially
seem to
exceed the cost in dollars or lost freedom. When people face terrorism
or great
fear- from whatever source- the tendency to demand economic and
physical
security over liberty and self-reliance proves irresistible. The masses
are
easily led to believe that security and liberty are mutually exclusive,
and
demand for security far exceeds that for liberty.
2002 Ron Paul 44:15
Once its discovered that the desire for both economic and physical security
that prompted the sacrifice of liberty inevitably led to the loss of
prosperity
and no real safety, its too late. Reversing the trend from
authoritarian rule
toward a freer society becomes very difficult, takes a long time, and
entails
much suffering. Although dissolution of the Soviet empire was
relatively
non-violent at the end, millions suffered from police suppression and
economic
deprivation in the decades prior to 1989.
2002 Ron Paul 44:16
But what about here in the United States? With respect to a police state,
where are we and where are we going?
2002 Ron Paul 44:17
Let me make a few observations:
2002 Ron Paul 44:18
Our government already keeps close tabs on just about everything we do and
requires official permission for nearly all of our activities.
2002 Ron Paul 44:19
One might take a look at our Capitol for any evidence of a police state. We
see: barricades, metal detectors, police, military soldiers at times,
dogs, ID
badges required for every move, vehicles checked at airports and
throughout the
Capitol. The people are totally disarmed, except for the police and the
criminals. But worse yet, surveillance cameras in Washington are
everywhere to
ensure our safety.
2002 Ron Paul 44:20
The terrorist attacks only provided the cover for the do-gooders who have
been planning for a long time before last September to monitor us for
our
own good. Cameras are used to spy on our drug habits, on our kids at
school, on subway travelers, and on visitors to every government
building or
park. Theres not much evidence of an open society in Washington, DC,
yet most
folks do not complain- anything goes if its for government-provided
safety and
security.
2002 Ron Paul 44:21
If this huge amount of information and technology is placed in the hands of
the government to catch the bad guys, one naturally asks, Whats the
big deal?
But it should be a big deal, because it eliminates the enjoyment of
privacy that
a free society holds dear. The personal information of law-abiding
citizens can
be used for reasons other than safety- including political reasons.
Like gun
control, people control hurts law-abiding citizens much more than the
law-breakers.
2002 Ron Paul 44:22
Social Security numbers are used to monitor our daily activities. The numbers
are given at birth, and then are needed when we die and for everything
in
between. This allows government record keeping of monstrous
proportions, and
accommodates the thugs who would steal others identities for criminal
purposes.
This invasion of privacy has been compounded by the technology now
available to
those in government who enjoy monitoring and directing the activities
of others.
Loss of personal privacy was a major problem long before 9/11.
2002 Ron Paul 44:23
Centralized control and regulations are required in a police state. Community
and individual state regulations are not as threatening as the monolith
of rules
and regulations written by Congress and the federal bureaucracy. Law
and order
has been federalized in many ways and we are moving inexorably in that
direction.
2002 Ron Paul 44:24
Almost all of our economic activities depend upon receiving the proper
permits from the federal government. Transactions involving guns, food,
medicine, smoking, drinking, hiring, firing, wages, politically correct
speech,
land use, fishing, hunting, buying a house, business mergers and
acquisitions,
selling stocks and bonds, and farming all require approval and strict
regulation
from our federal government. If this is not done properly and in a
timely
fashion, economic penalties and even imprisonment are likely
consequences.
2002 Ron Paul 44:25
Because government pays for much of our health care, its conveniently argued
that any habits or risk-taking that could harm ones health are the
prerogative
of the federal government, and are to be regulated by explicit rules to
keep
medical-care costs down. This same argument is used to require helmets
for
riding motorcycles and bikes.
2002 Ron Paul 44:26
Not only do we need a license to drive, but we also need special belts, bags,
buzzers, seats and environmentally dictated speed limits- or a
policemen will be
pulling us over to levy a fine, and he will be toting a gun for sure.
2002 Ron Paul 44:27
The states do exactly as theyre told by the federal government, because they
are threatened with the loss of tax dollars being returned to their
state-
dollars that should have never been sent to DC in the first place, let
alone
used to extort obedience to a powerful federal government.
2002 Ron Paul 44:28
Over 80,000 federal bureaucrats now carry guns to make us toe the line and to
enforce the thousands of laws and tens of thousands of regulations that
no one
can possibly understand. We dont see the guns, but we all know theyre
there,
and we all know we cant fight City Hall, especially if its
Uncle Sam.
2002 Ron Paul 44:29
All 18-year-old males must register to be ready for the next undeclared war.
If they dont, men with guns will appear and enforce this congressional
mandate.
Involuntary servitude was banned by the 13th Amendment, but courts
dont apply this prohibition to the servitude of draftees or those
citizens
required to follow the dictates of the IRS- especially the employers of
the
country, who serve as the federal governments chief tax collectors and
information gatherers. Fear is the tool used to intimidate most
Americans to
comply to the tax code by making examples of celebrities. Leona
Helmsley and
Willie Nelson know how this process works.
2002 Ron Paul 44:30
Economic threats against business establishments are notorious. Rules and
regulations from the EPA, the ADA, the SEC, the LRB, OSHA, etc.
terrorize
business owners into submission, and those charged accept their own
guilt until
they can prove themselves innocent. Of course, it turns out its much
more
practical to admit guilt and pay the fine. This serves the interest of
the
authoritarians because it firmly establishes just who is in charge.
2002 Ron Paul 44:31
Information leaked from a government agency like the FDA can make or break a
company within minutes. If information is leaked, even inadvertently, a
company
can be destroyed, and individuals involved in revealing
government-monopolized
information can be sent to prison. Even though economic crimes are
serious
offenses in the United States, violent crimes sometimes evoke more
sympathy and
fewer penalties. Just look at the O.J. Simpson case as an example.
2002 Ron Paul 44:32
Efforts to convict Bill Gates and others like him of an economic crime are
astounding, considering his contribution to economic progress, while
sources
used to screen out terrorist elements from our midst are tragically
useless. If
business people are found guilty of even the suggestion of collusion in
the
marketplace, huge fines and even imprisonment are likely consequences.
2002 Ron Paul 44:33
Price fixing is impossible to achieve in a free market. Under todays laws,
talking to, or consulting with, competitors can be easily construed as
price fixing and involve a serious crime, even with proof that the
so-called collusion never generated monopoly-controlled prices or was
detrimental to consumers.
2002 Ron Paul 44:34
Lawfully circumventing taxes, even sales taxes, can lead to serious problems
if a high-profile person can be made an example.
2002 Ron Paul 44:35
One of the most onerous controls placed on American citizens is the control
of speech through politically correct legislation. Derogatory remarks
or
off-color jokes are justification for firings, demotions, and the
destruction of
political careers. The movement toward designating penalties based on
the
category to which victims belong, rather the nature of the crime
itself, has the
thought police patrolling the airways and byways. Establishing relative
rights
and special penalties for subjective motivation is a dangerous trend.
2002 Ron Paul 44:36
All our financial activities are subject to legal searches without warrants and without probable cause. Tax collection, drug
usage, and
possible terrorist activities justify the endless accumulation of
information on all Americans.
2002 Ron Paul 44:37
Government control of medicine has prompted the establishment of the National
Medical Data Bank. For efficiency reasons, it is said, the government
keeps our
medical records for our benefit. This, of course, is done with vague
and useless
promises that this information will always remain confidential- just
like all
the FBI information in the past!
2002 Ron Paul 44:38
Personal privacy, the sine qua non of liberty, no longer exists in the United
States. Ruthless and abusive use of all this information accumulated by
the
government is yet to come. The Patriot Act has given unbelievable power
to
listen, read, and monitor all our transactions without a search warrant
being
issued after affirmation of probably cause. Sneak and peak and
blanket searches are now becoming more frequent every day. What have we
allowed
to happen to the 4th amendment?
2002 Ron Paul 44:39
It may be true that the average American does not feel intimidated by the
encroachment of the police state. Im sure our citizens are more
tolerant of
what they see as mere nuisances because they have been deluded into
believing
all this government supervision is necessary and helpful- and besides
they are
living quite comfortably, material wise. However the reaction will be
different
once all this new legislation were passing comes into full force, and
the
material comforts that soften our concerns for government regulations
are
decreased. This attitude then will change dramatically, but the trend
toward the
authoritarian state will be difficult to reverse.
2002 Ron Paul 44:40
What government gives with one hand- as it attempts to provide safety and
security- it must, at the same time, take away with two others. When
the
majority recognizes that the monetary cost and the results of our war
against
terrorism and personal freedoms are a lot less than promised, it may be
too
late.
2002 Ron Paul 44:41
Im sure all my concerns are unconvincing to the vast majority of Americans,
who not only are seeking but also are demanding they be made safe from
any
possible attack from anybody, ever. I grant you this is a reasonable
request.
2002 Ron Paul 44:42
The point is, however, there may be a much better way of doing it. We must
remember, we dont sit around and worry that some Canadian citizen is
about to
walk into New York City and set off a nuclear weapon. We must come to
understand
the real reason is that theres a difference between the Canadians and
all our
many friends and the Islamic radicals. And believe me, were not the
target
because were free and prosperous.
2002 Ron Paul 44:43
The argument made for more government controls here at home and expansionism
overseas to combat terrorism is simple and goes like this: If were
not
made safe from potential terrorists, property and freedom have no
meaning.
It is argued that first we must have life and physical and economic
security,
with continued abundance, then well talk about freedom.
2002 Ron Paul 44:44
It reminds me of the time I was soliciting political support from a voter and
was boldly put down: Ron, she said, I wish you would lay off
this freedom stuff; its all nonsense. Were looking for a
Representative who
will know how to bring home the bacon and help our area, and youre not
that
person. Believe me, I understand that argument; its just that I dont
agree that is what should be motivating us here in the Congress.
2002 Ron Paul 44:45
Thats not the way it works. Freedom does not preclude security. Making
security the highest priority can deny prosperity and still fail to
provide the
safety we all want.
2002 Ron Paul 44:46
The Congress would never agree that we are a police state. Most members, Im
sure, would argue otherwise. But we are all obligated to decide in
which
direction we are going. If were moving toward a system that enhances
individual
liberty and justice for all, my concerns about a police state should be
reduced
or totally ignored. Yet, if, by chance, were moving toward more
authoritarian
control than is good for us, and moving toward a major war of which we
should
have no part, we should not ignore the dangers. If current policies are
permitting a serious challenge to our institutions that allow for our
great
abundance, we ignore them at great risk for future generations.
2002 Ron Paul 44:47
Thats why the post-9/11 analysis and subsequent legislation are crucial to
the survival of those institutions that made America great. We now are
considering a major legislative proposal dealing with this dilemma- the
new
Department of Homeland Security- and we must decide if it truly serves
the
interests of America.
2002 Ron Paul 44:48
Since the new department is now a forgone conclusion, why should anyone
bother to record a dissent? Because its the responsibility of all of
us to
speak the truth to our best ability, and if there are reservations
about what
were doing, we should sound an alarm and warn the people of what is to
come.
2002 Ron Paul 44:49
In times of crisis, nearly unanimous support for government programs is usual
and the effects are instantaneous. Discovering the error of our ways
and waiting
to see the unintended consequences evolve takes time and careful
analysis.
Reversing the bad effects is slow and tedious and fraught with danger.
People
would much prefer to hear platitudes than the pessimism of a flawed
policy.
2002 Ron Paul 44:50
Understanding the real reason why we were attacked is crucial to crafting a
proper response. I know of no one who does not condemn the attacks of
9/11.
Disagreement as to the cause and the proper course of action should be
legitimate in a free society such as ours. If not, were not a free
society.
2002 Ron Paul 44:51
Not only do I condemn the vicious acts of 9/11, but also, out of deep
philosophic and moral commitment, I have pledged never to use any form
of
aggression to bring about social or economic changes.
2002 Ron Paul 44:52
But I am deeply concerned about what has been done and what we are yet to do
in the name of security against the threat of terrorism.
2002 Ron Paul 44:53
Political propagandizing is used to get all of us to toe the line and be good
patriots, supporting every measure suggested by the administration.
We are told that preemptive strikes, torture, military tribunals,
suspension of
habeas corpus, executive orders to wage war, and sacrificing privacy
with a
weakened 4th Amendment are the minimum required to save our country
from the
threat of terrorism.
2002 Ron Paul 44:54
Whos winning this war anyway?
2002 Ron Paul 44:55
To get popular support for these serious violations of our traditional rule
of law requires that people be kept in a state of fear. The episode of
spreading
undue concern about the possibility of a dirty bomb being exploded in
Washington
without any substantiation of an actual threat is a good example of
excessive
fear being generated by government officials.
2002 Ron Paul 44:56
To add insult to injury, when he made this outlandish announcement, our
Attorney General was in Moscow. Maybe if our FBI spent more time at
home, we
would get more for the money we pump into this now- discredited
organization.
Our FBI should be gathering information here at home, and the thousands
of
agents overseas should return. We dont need these agents competing
overseas and
confusing the intelligence apparatus of the CIA or the military.
2002 Ron Paul 44:57
Im concerned that the excess fear, created by the several hundred al Qaeda
functionaries willing to sacrifice their lives for their demented
goals, is
driving us to do to ourselves what the al Qaeda themselves could never
do to us
by force.
2002 Ron Paul 44:58
So far the direction is clear: we are legislating bigger and more intrusive
government here at home and are allowing our President to pursue much
more
military adventurism abroad. These pursuits are overwhelmingly
supported by
Members of Congress, the media, and the so-called intellectual
community, and
questioned only by a small number of civil libertarians and
anti-imperial,
anti-war advocates.
2002 Ron Paul 44:59
The main reason why so many usually levelheaded critics of bad policy accept
this massive increase in government power is clear. They, for various
reasons,
believe the official explanation of Why us? The several hundred al
Qaeda members, we were told, hate us because: Were rich, were free,
we
enjoy materialism, and the purveyors of terror are jealous and envious,
creating
the hatred that drives their cause. They despise our Christian-Judaic
values and
this, is the sole reason why they are willing to die for their cause.
For
this to be believed, one must also be convinced that the perpetrators
lied to
the world about why they attacked us.
2002 Ron Paul 44:60
The al Qaeda leaders say they hate us because:
-We support Western puppet regimes in Arab countries for commercial
reasons
and against the wishes of the populace of these countries.
2002 Ron Paul 44:61
-This partnership allows a military occupation, the most confrontational
being in Saudi Arabia, that offends their sense of pride and violates
their
religious convictions by having a foreign military power on their holy
land. We
refuse to consider how we might feel if Chinas navy occupied the Gulf
of Mexico
for the purpose of protecting their oil and had air bases on U.S.
territory.
2002 Ron Paul 44:62
-We show extreme bias in support of one side in the fifty-plus-year war going
on in the Middle East.
2002 Ron Paul 44:63
What if the al Qaeda is telling the truth and we ignore it? If we believe
only the official line from the administration and proceed to change
our whole
system and undermine our constitutional rights, we may one day wake up
to find
that the attacks have increased, the numbers of those willing to commit
suicide
for their cause have grown, our freedoms are diminished, and all this
has
contributed to making our economic problems worse. The dollar cost of
this
war could turn out to be exorbitant, and the efficiency of our
markets can be undermined by the compromises placed on our liberties.
2002 Ron Paul 44:64
Sometimes it almost seems that our policies inadvertently are actually based
on a desire to make ourselves less free and less prosperous- those
conditions that are supposed to have prompted the attacks. Im
convinced we must
pay more attention to the real cause of the attacks of last year and
challenge
the explanations given us.
2002 Ron Paul 44:65
The question that one day must be answered is this:
2002 Ron Paul 44:66
What if we had never placed our troops in Saudi Arabia and had involved
ourselves in the Middle East war in an even-handed fashion. Would it
have been
worth it if this would have prevented the events of 9/11?
2002 Ron Paul 44:67
If we avoid the truth, we will be far less well off than if we recognize that
just maybe there is some truth in the statements made by the leaders of
those
who perpetrated the atrocities. If they speak the truth about the real
cause,
changing our foreign policy from foreign military interventionism
around the
globe supporting an American empire would make a lot of sense. It could
reduce
tensions, save money, preserve liberty and preserve our economic system.
2002 Ron Paul 44:68
This, for me, is not a reactive position coming out of 9/11, but rather is an
argument Ive made for decades, claiming that meddling in the affairs
of others
is dangerous to our security and actually reduces our ability to defend
ourselves.
2002 Ron Paul 44:69
This in no way precludes pursuing those directly responsible for the attacks
and dealing with them accordingly- something that we seem to have not
yet done.
We hear more talk of starting a war in Iraq than in achieving victory
against
the international outlaws that instigated the attacks on 9/11. Rather
than
pursuing war against countries that were not directly responsible for
the
attacks, we should consider the judicious use of Marque and Reprisal.
2002 Ron Paul 44:70
Im sure that a more enlightened approach to our foreign policy will prove
elusive. Financial interests of our international corporations, oil
companies,
and banks, along with the military-industrial complex, are sure to
remain a
deciding influence on our policies.
2002 Ron Paul 44:71
Besides, even if my assessments prove to be true, any shift away from foreign
militarism- like bringing our troops home- would now be construed as
yielding to
the terrorists. It just wont happen. This is a powerful point and the
concern
that we might appear to be capitulating is legitimate.
2002 Ron Paul 44:72
Yet how long should we deny the truth, especially if this denial only makes
us more vulnerable? Shouldnt we demand the courage and wisdom of our
leaders to
do the right thing, in spite of the political shortcomings?
2002 Ron Paul 44:73
President Kennedy faced an even greater threat in October 1962, and from a
much more powerful force. The Soviet/Cuban terrorist threat with
nuclear
missiles only 90 miles off our shores was wisely defused by Kennedys
capitulating and removing missiles from Turkey on the Soviet border.
Kennedy
deserved the praise he received for the way he handled the nuclear
standoff with
the Soviets. This concession most likely prevented a nuclear exchange
and proved
that taking a step back from a failed policy is beneficial, yet how one
does so
is crucial. The answer is to do it diplomatically- thats what
diplomats are
supposed to do.
2002 Ron Paul 44:74
Maybe there is no real desire to remove the excuse for our worldwide imperialism, especially our current new expansion into central Asia or
the
domestic violations of our civil liberties. Todays conditions may well
be
exactly what our world commercial interests want. Its now easy for us
to go
into the Philippines, Columbia, Pakistan, Afghanistan, or wherever in
pursuit of
terrorists. No questions are asked by the media or the politicians-
only cheers.
Put in these terms, who can object? We all despise the tactics of the
terrorists, so the nature of the response is not to be questioned!
2002 Ron Paul 44:75
A growing number of Americans are concluding that the threat we now face
comes more as a consequence of our foreign policy than because the bad
guys envy
our freedoms and prosperity. How many terrorist attacks have been
directed
toward Switzerland, Australia, Canada, or Sweden? They too are rich and
free,
and would be easy targets, but the Islamic fundamentalists see no
purpose in
doing so.
2002 Ron Paul 44:76
Theres no purpose in targeting us unless theres a political agenda, which
there surely is. To deny that this political agenda exists jeopardizes
the
security of this country. Pretending something to be true that is not
is
dangerous.
2002 Ron Paul 44:77
Its a definite benefit for so many to recognize that our $40 billion annual
investment in intelligence gathering prior to 9/11 was a failure. Now a
sincere
desire exists to rectify these mistakes. Thats good, unless, instead
of
changing the role for the CIA and the FBI, all the past mistakes are
made worse
by spending more money and enlarging the bureaucracies to do the very
same thing
without improving their efficiency or changing their goals.
Unfortunately that
is what is likely to happen.
2002 Ron Paul 44:78
One of the major shortcomings that led to the 9/11 tragedies was that the
responsibility for protecting commercial airlines was left to the
government,
the FAA, the FBI, the CIA, and the INS. And they failed. A greater
sense of
responsibility for the owners to provide security is what was needed.
Guns in
the cockpit would have most likely prevented most of the deaths that
occurred on
that fateful day.
2002 Ron Paul 44:79
But what does our government do? It firmly denies airline pilots the right to
defend their planes, and we federalize the security screeners and rely
on F16s
to shoot down airliners if they are hijacked.
2002 Ron Paul 44:80
Security screeners, many barely able to speak English, spend endless hours
harassing pilots, confiscating dangerous mustache scissors, mauling
grandmothers
and children, and pestering Al Gore, while doing nothing about the
influx of
aliens from Middle-Eastern countries who are on designated watch lists.
2002 Ron Paul 44:81
We pump up the military in India and Pakistan, ignore all the warnings about
Saudi Arabia, and plan a secret war against Iraq to make sure no one
starts
asking where Osama bin Laden is. We think we know where Saddam Hussein
lives, so
lets go get him instead.
2002 Ron Paul 44:82
Since our government bureaucracy failed, why not get rid of it instead of
adding to it? If we had proper respect and understood how private
property
owners effectively defend themselves, we could apply those rules to the
airlines
and achieve something worthwhile.
2002 Ron Paul 44:83
If our immigration policies have failed us, when will we defy the politically
correct fanatics and curtail the immigration of those individuals on
the highly
suspect lists? Instead of these changes, all we hear is that the major
solution
will come by establishing a huge new federal department- the Department
of
Homeland Security.
2002 Ron Paul 44:84
According to all the pundits, we are expected to champion this big-government
approach, and if we dont jolly well like it, we will be tagged
unpatriotic. The fear that permeates our country cries out for
something to be done in response to almost daily warnings of the next
attack. If
its not a real attack, then its a theoretical one; one where the bomb
could
well be only in the mind of a potential terrorist.
2002 Ron Paul 44:85
Where is all this leading us? Are we moving toward a safer and more secure
society? I think not. All the discussions of these proposed plans since
9/11
have been designed to condition the American people to accept major
changes in
our political system. Some of the changes being made are unnecessary,
and others
are outright dangerous to our way of life.
2002 Ron Paul 44:86
There is no need for us to be forced to choose between security and freedom.
Giving up freedom does not provide greater security. Preserving and
better
understanding freedom can. Sadly today, many are anxious to give up
freedom in
response to real and generated fears..
2002 Ron Paul 44:87
The plans for a first strike supposedly against a potential foreign government should alarm all Americans. If we do not resist this power
the
President is assuming, our President, through executive order, can
start a war
anyplace, anytime, against anyone he chooses, for any reason, without
congressional approval. This is a tragic usurpation of the war power by
the
executive branch from the legislative branch, with Congress being all
too
accommodating.
2002 Ron Paul 44:88
Removing the power of the executive branch to wage war, as was done through
our revolution and the writing of the Constitution, is now being
casually
sacrificed on the altar of security. In a free society, and certainly
in the
constitutional republic we have been given, it should never be assumed
that the
President alone can take it upon himself to wage war whenever he
pleases.
2002 Ron Paul 44:89
The publicly announced plan to murder Saddam Hussein in the name of our
national security draws nary a whimper from Congress. Support is
overwhelming,
without a thought as to its legality, morality, constitutionality, or
its
practicality. Murdering Saddam Hussein will surely generate many more
fanatics
ready to commit their lives to suicide terrorist attacks against us.
2002 Ron Paul 44:90
Our CIA attempt to assassinate Castro backfired with the subsequent assassination of our president. Killing Saddam Hussein, just for the
sake of
killing him, obviously will increase the threat against us, not
diminish it. It
makes no sense. But our warriors argue that someday he may build a
bomb, someday
he might use it, maybe against us or some yet-unknown target. This
policy
further radicalizes the Islamic fundamentalists against us, because
from their
viewpoint, our policy is driven by Israeli, not U.S. security interests.
2002 Ron Paul 44:91
Planned assassination, a preemptive strike policy without proof of any
threat, and a vague definition of terrorism may work for us as long as
were
king of the hill, but one must assume every other nation will naturally
use our
definition of policy as justification for dealing with their neighbors.
India
can justify a first strike against Pakistan, China against India or
Taiwan, as
well as many other such examples. This new policy, if carried through,
will make
the world much less safe.
2002 Ron Paul 44:92
This new doctrine is based on proving a negative, which is impossible to do,
especially when were dealing with a subjective interpretation of plans
buried
in someones head. To those who suggest a more restrained approach on
Iraq and
killing Saddam Hussein, the war hawks retort, saying: Prove to me that
Saddam Hussein might not do something someday directly harmful to the
United
States. Since no one can prove this, the warmongers shout: Lets
march on Baghdad.
2002 Ron Paul 44:93
We all can agree that aggression should be met with force and that providing
national security is an ominous responsibility that falls on Congress
shoulders. But avoiding useless and unjustifiable wars that threaten
our whole
system of government and security seems to be the more prudent thing to
do.
2002 Ron Paul 44:94
Since September 11th, Congress has responded with a massive barrage of
legislation not seen since Roosevelt took over in 1933. Where Roosevelt
dealt
with trying to provide economic security, todays legislation deals
with
personal security from any and all imaginable threats, at any cost-
dollar or
freedom-wise. These efforts include:
2002 Ron Paul 44:95
-The Patriot Act, which undermines the 4th Amendment with the establishment
of an overly broad and dangerous definition of terrorism.
2002 Ron Paul 44:96
- The Financial Anti-Terrorism Act, which expands the governments surveillance of the financial transactions of all American citizens
through
increased power to FinCen and puts back on track the plans to impose
Know
Your Customer rules on all Americans, which had been sought after for
years.
2002 Ron Paul 44:97
-The airline bailout bill gave $15 billion, rushed through shortly after
9/11.
2002 Ron Paul 44:98
- The federalization of all airline security employees.
-Military tribunals set up by executive order-undermining the rights
of those
accused- rights established as far back in history as 1215.
2002 Ron Paul 44:99
- Unlimited retention of suspects without charges being made, even when a
crime has not been committed- a serious precedent that one day may well
be
abused.
2002 Ron Paul 44:100
- Relaxation of FBI surveillance guidelines of all political activity.
2002 Ron Paul 44:101
- Essentially monopolizing vaccines and treatment for infectious diseases,
permitting massive quarantines and mandates for vaccinations.
2002 Ron Paul 44:102
Almost all significant legislation since 9/11 has been rushed through in a
tone of urgency with reference to the tragedy, including the $190
billion farm
bill as well as fast track.
2002 Ron Paul 44:103
Guarantees to all insurance companies now are moving quickly through the
Congress.
Increasing the billions already flowing into foreign aid is now being
planned as
our interventions overseas continue to grow and expand.
2002 Ron Paul 44:104
Theres no reason to believe that the massive increase in spending, both
domestic and foreign, along with the massive expansion of the size of
the
federal government, will slow any time soon. The deficit is exploding
as the
economy weakens. When the government sector drains the resources needed
for
capital expansion, it contributes to the loss of confidence needed for
growth.
2002 Ron Paul 44:105
Even without evidence that any good has come from this massive expansion of
government power, Congress is in the process of establishing a huge new
bureaucracy, the Department of Homeland Security, hoping miraculously
through
centralization to make all these efforts productive and worthwhile.
2002 Ron Paul 44:106
There is no evidence, however, that government bureaucracy and huge funding
can solve our nations problems. The likelihood is that the unintended
consequences of this new proposal will diminish our freedoms and do
nothing to
enhance our security.
2002 Ron Paul 44:107
Opposing currently proposed and recently passed legislation does not mean one
is complacent about terrorism or homeland security. The truth is that
there are
alternative solutions to these problems we face, without resorting to
expanding
the size and scope of government at the expense of liberty.
2002 Ron Paul 44:108
As tempting as it may seem, a government is incapable of preventing crimes.
On occasion, with luck it might succeed. But the failure to tip us off
about
9/11, after spending $40 billion annually on intelligence gathering,
should have
surprised no one. Governments, by nature, are very inefficient
institutions. We
must accept this as fact.
2002 Ron Paul 44:109
Im sure that our intelligence agencies had the information available to head
off 9/11, but bureaucratic blundering and turf wars prevented the
information
from being useful. But, the basic principle is wrong. City policeman
cant and
should not be expected to try to preempt crimes. That would invite
massive
intrusions into the everyday activities of every law-abiding citizen.
2002 Ron Paul 44:110
But thats exactly what our recent legislation is doing. Its a wrong-headed
goal, no matter how wonderful it may sound. The policemen in the inner
cities
patrol their beats, but crime is still rampant. In the rural areas of
America,
literally millions of our citizens are safe and secure in their homes,
though
miles from any police protection. They are safe because even the
advantage of
isolation doesnt entice the burglar to rob a house when he knows a
shotgun sits
inside the door waiting to be used. But this is a right denied many of
our
citizens living in the inner cities.
2002 Ron Paul 44:111
The whole idea of government preventing crime is dangerous. To prevent crimes
in our homes or businesses, government would need cameras to spy on our
every
move; to check for illegal drug use, wife beating, child abuse, or tax
evasion.
They would need cameras, not only on our streets and in our homes, but
our
phones, internet, and travels would need to be constantly monitored-
just to
make sure we are not a terrorist, drug dealer, or tax evader.
2002 Ron Paul 44:112
This is the assumption now used at our airports, rather than allowing
privately owned airlines to profile their passengers to assure the
safety for
which the airline owners ought to assume responsibility. But, of
course, this
would mean guns in the cockpit. I am certain that this approach to
safety and
security would be far superior to the rules that existed prior to 9/11
and now
have been made much worse in the past nine months.
2002 Ron Paul 44:113
This method of providing security emphasizes private-property ownership and
responsibility of the owners to protect that property. But the right to
bear
arms must also be included. The fact that the administration is opposed
to guns
in the cockpit and the fact that the airline owners are more interested
in
bailouts and insurance protection mean that were just digging a bigger
hole for
ourselves- ignoring liberty and expecting the government to provide
something
its not capable of doing.
2002 Ron Paul 44:114
Because of this, in combination with a foreign policy that generates more
hatred toward us and multiplies the number of terrorists that seek
vengeance, I
am deeply concerned that Washingtons efforts so far sadly have only
made us
more vulnerable. Im convinced that the newly proposed Department of
Homeland
Security will do nothing to make us more secure, but it will make us
all a lot
poorer and less free. If the trend continues, the Department of
Homeland
Security may well be the vehicle used for a much more ruthless control
of the
people by some future administration than any of us dreams. Lets pray
that this
concern will never materialize.
2002 Ron Paul 44:115
America is not now a ruthless authoritarian police state. But our concerns
ought to be whether we have laid the foundation of a more docile police
state.
The love of liberty has been so diminished that we tolerate intrusions
into our
privacies today that would have been abhorred just a few years ago.
Tolerance of
inconvenience to our liberties is not uncommon when both personal and
economic
fear persists. The sacrifices being made to our liberties will surely
usher in a
system of government that will please only those who enjoy being in
charge of
running other peoples lives.
2002 Ron Paul 44:116
Mr. Speaker, what, then, is the answer to the question: Is America a
Police State? My answer is: Maybe not yet, but it is fast
approaching. The seeds have been sown and many of our basic
protections
against tyranny have been and are constantly being undermined. The
post-9/11
atmosphere here in Congress has provided ample excuse to concentrate on
safety
at the expense of liberty, failing to recognize that we cannot have one
without
the other.
2002 Ron Paul 44:117
When the government keeps detailed records on every move we make and we
either need advance permission for everything we do or are penalized
for not
knowing what the rules are, America will be declared a police state.
Personal
privacy for law-abiding citizens will be a thing of the past.
Enforcement of
laws against economic and political crimes will exceed that of violent
crimes
(just look at whats coming under the new FEC law). War will be the
prerogative
of the administration. Civil liberties will be suspended for suspects,
and their
prosecution will not be carried out by an independent judiciary. In a
police
state, this becomes common practice rather than a rare incident.
2002 Ron Paul 44:118
Some argue that we already live in a police state, and Congress doesnt have
the foggiest notion of what theyre dealing with. So forget it and use
your
energy for your own survival. Some advise that the momentum towards the
monolithic state cannot be reversed. Possibly thats true, but Im
optimistic
that if we do the right thing and do not capitulate to popular fancy
and the
incessant war propaganda, the onslaught of statism can be reversed.
2002 Ron Paul 44:119
To do so, we as a people will once again have to dedicate ourselves to
establishing the proper role a government plays in a free society. That
does not
involve the redistribution of wealth through force. It does not mean
that
government dictates the moral and religious standards of the people. It
does not
allow us to police the world by involving ourselves in every conflict
as if its
our responsibility to manage a world American empire.
2002 Ron Paul 44:120
But it does mean government has a proper role in guaranteeing free markets,
protecting voluntary and religious choices and guaranteeing private
property
ownership, while punishing those who violate these rules – whether
foreign or
domestic.
2002 Ron Paul 44:121
In a free society, the governments job is simply to protect liberty – the
people do the rest. Lets not give up on a grand experiment that has
provided so
much for so many. Lets reject the police state.
2002 Ron Paul Chapter 45
http://www.house.gov/paul/congrec/congrec2002/cr062802.htm
Congressman Ron Paul
U.S. House of Representatives
June 28, 2002
Unintended Consequences of the Drug War
2002 Ron Paul 45:1
Mr. Speaker, I highly recommend the
attached article Unintended Consequences by Thomas G. Donlan, from
Barrons magazine, to my colleagues. This article provides an excellent
explanation of the way current federal drug policy actually encourages
international terrorist organizations, such as Al Queda, to use the
drug trade
to finance their activities. Far from being an argument to enhance the
war on
drugs, the reliance of terrorist organizations upon the drug trade is
actually
one more reason to reconsider current drug policy. Terrorist
organizations are
drawn to the drug trade because federal policy still enables drug
dealers to
reap huge profits from dealing illicit substances. As Mr. Donlan points
out,
pursuing a more rational drug policy would remove the exorbitant
profits from
the drug trade and thus remove the incentive for terrorists to produce
and sell
drugs.
2002 Ron Paul 45:2
In conclusion, I once again
recommend
Mr. Donlans article to my colleagues. I hope the authors explanation
of how
the war on drugs is inadvertently strengthening terrorist organizations
will
lead them to embrace a more humane, constitutional and rational
approach to
dealing with the legitimate problems associated with drug abuse.
2002 Ron Paul 45:3
From Barrons,
June 24,
2002
UNINTENDED CONSEQUENCES
By Thomas G. Donlan
2002 Ron Paul 45:4
Its harvest time in
Afghanistan. While
the delegates to its grand council, the loya jurga, met under the great
tent in
Kabul and grudgingly acknowledged Hamid Karza as the president of a
transitional government, the impoverished farmers of Afghanistan
reaped
the rewards of their best cash crop, the despised opium poppy.
2002 Ron Paul 45:5
A few months ago, newspaper
correspondents reported that the American proconsuls in Afghanistan had
abandoned their hopes of reducing the opium harvest. They had
considered buying
the crop or paying farmers to destroy their poppies, but concluded that
in the
lawless Afghan hinterland they would simply be paying a bonus for
non-delivery.
2002 Ron Paul 45:6
Karzais previous interim
administration had banned opium production, but its writ did not run
many
miles beyond the city of Kabul. Warlords and provincial governors did
as they
pleased, and they were pleased to tax the opium trade and indeed
participate in
it as traders and transporters and protectors.
2002 Ron Paul 45:7
Thats what the Taliban did
for most of
the years that the mullahs ruled and protected the al Qaeda terrorist
network.
In 2000, Afghanistan accounted for 71% of the worlds opium supply.
(Opium in
turn is the building block for heroin, which most drug-fighters believe
takes
the greatest human toll and provides the greatest profit in the whole
illicit
industry.)
2002 Ron Paul 45:8
In 2001, the Taliban decreed
an end to
opium cultivation, not so much to carry favor with the West but to
maintain the
price: A bumper crop provided enough for two years of commerce. Indeed,
the
Taliban and al Qaeda may have earned more from their stockpiles in 2001
than
they did from high production in 2000.
2002 Ron Paul 45:9
As ye sow, so shall ye
reap.
The Biblical passage is an apt reminder that Americas undercover
agents
nurtured Islamic fundamentalism to strengthen Afghan resistance to the
Soviet
Union. We reaped chaos in Afghanistan and a corps of well-trained
fanatics bent
on our destruction. America has also sown a war on drugs, and those
same
fanatics have harvested the profits.
2002 Ron Paul 45:10
This was not what we intended.
Nor did
we intend to let huge profits earned by terrorists and common criminals
be used
to corrupt police in every country where the trade reaches, including
our own.
Nor did we intend to put hundreds of thousands of Americans in prison
for their
participation in the drug trade. Nor did we intend to create periodic
drug
scarcities that turn addicts to crime to pay for their habits.
2002 Ron Paul 45:11
But all those things are
unintended
consequences of the war on drugs. Drug use is eventually a
self-punishing
mistake; the drug war turns out to be the same.
2002 Ron Paul 45:12
Now the war on drugs and the
war on
terrorism are beginning to look like two currents in a single river.
Nearly half
of the international terrorist groups on the State Departments list
are
involved in drug trafficking, either to raise money for their political
aims or
because successful drug commerce requires a ruthlessness
indistinguishable from
terrorism.
2002 Ron Paul 45:13
The currents dont always run
together:
The FBI and other federal law enforcement agencies acknowledge that the
extra
resources they are devoting to the detection and apprehension of
terrorists are
not new resources; the money agents and equipment come to the war on
terror at
the expense of the war on drugs.
2002 Ron Paul 45:14
In the domestic war on drugs,
officials
are trying to make the two currents serve their purposes. The
government runs TV
ads portraying young Americans confessing, I
killed
grandmas. I killed daughters. I killed firemen. I killed policemen,
and then
warning the viewers, Where do terrorists get their money? If you buy
drugs, some of it may come from you.
2002 Ron Paul 45:15
Bummer.
2002 Ron Paul 45:16
Like they wanted to do that?
The buyers
of drugs would be perfectly happy to buy them in a clean, well-lit
store at
reasonable prices, with the profits heavily taxed to support schools,
medical
benefits, or any other legitimate function of government – even police.
Thats
how they buy cigarettes and liquor, neither of which finances
international
terrorists. (In a current prosecution, smuggling cigarettes from
low-tax North
Carolina to high-tax Michigan allegedly raised $1,500 for an alleged
affiliate
of Hamas. But big violence needs bigger sums from more lucrative
sources.)
2002 Ron Paul 45:17
It was bad when drug laws gave
the
Mafia an opportunity to do big business. It was worse when the laws
encouraged
Colombian and Mexican drug cartels to obtain aircraft and heavy
weapons. Now
that the drug laws provide profits to people who want to kill Americans
wholesale instead of retail, its time to change the laws.
2002 Ron Paul 45:18
Using drugs is stupid enough;
making
the users finance international terrorists is even more foolish.
2002 Ron Paul Chapter 46
http://www.house.gov/paul/congrec/congrec2002/cr070902.htm
Congressman Ron Paul
U.S. House of Representatives
July 9, 2002
Has Capitalism Failed?
2002 Ron Paul 46:1
It is now commonplace and
politically
correct to blame what is referred to as
the excesses of capitalism
for
the economic problems we face, and especially for the Wall Street fraud
that
dominates the business news. Politicians are having a field day with
demagoguing
the issue while, of course, failing to address the fraud and deceit
found in the
budgetary shenanigans of the federal government- for which they are
directly
responsible. Instead, it gives the Keynesian crowd that run the show a
chance to
attack free markets and ignore the issue of sound money.
2002 Ron Paul 46:2
So once again we hear the
chant:
Capitalism
has failed; we need more government controls over the entire financial
market.
No one asks why the billions that have been spent
and
thousands of pages of regulations that have been written since the last
major
attack on capitalism in the 1930s didn’t prevent the fraud and
deception of
Enron, WorldCom, and Global Crossings. That failure surely couldn’t
have come
from a dearth of regulations.
2002 Ron Paul 46:3
What is distinctively absent
is any
mention that all financial bubbles are saturated with excesses in hype,
speculation, debt, greed, fraud, gross errors in investment judgment,
carelessness on the part of analysts and investors, huge paper profits,
conviction that a new era economy has arrived and, above all else,
pie-in-the-sky expectations.
2002 Ron Paul 46:4
When the bubble is inflating,
there are
no complaints. When it bursts, the blame game begins. This is
especially true in
the age of victimization, and is done on a grand scale. It quickly
becomes a
philosophic, partisan, class, generational, and even a racial issue.
While
avoiding the real cause, all the finger pointing makes it difficult to
resolve
the crisis and further undermines the principles upon which freedom and
prosperity rest.
2002 Ron Paul 46:5
Nixon was right- once- when he
declared
We’re all Keynesians now. All of Washington is in sync in
declaring that too much capitalism has brought us to where we are
today. The
only decision now before the central planners in Washington is whose
special
interests will continue to benefit from the coming pretense at reform.
The
various special interests will be lobbying heavily like the Wall Street
investors, the corporations, the military-industrial complex, the
banks, the
workers, the unions, the farmers, the politicians, and everybody else.
2002 Ron Paul 46:6
But what is not discussed is
the actual
cause and perpetration of the excesses now unraveling at a frantic
pace. This
same response occurred in the 1930s in the United States as our
policymakers
responded to the very similar excesses that developed and collapsed in
1929.
Because of the failure to understand the problem then, the depression
was
prolonged. These mistakes allowed our current problems to develop to a
much
greater degree. Consider the failure to come to grips with the cause of
the
1980s bubble, as Japan’s economy continues to linger at no-growth and
recession level, with their stock market at approximately one-fourth of
its peak
13 years ago. If we’re not careful- and so far we’ve not been- we will
make
the same errors that will prevent the correction needed before economic
growth
can be resumed.
2002 Ron Paul 46:7
In the 1930s, it was quite
popular to
condemn the greed of capitalism, the gold standard, lack of regulation,
and a
lack government insurance on bank deposits for the disaster.
Businessmen became
the scapegoat. Changes were made as a result, and the welfare/warfare
state was
institutionalized. Easy credit became the holy grail of monetary
policy,
especially under Alan Greenspan, the ultimate Maestro. Today,
despite the presumed protection from these government programs built
into the
system, we find ourselves in a bigger mess than ever before. The bubble
is
bigger, the boom lasted longer, and the gold price has been
deliberately
undermined as an economic signal. Monetary inflation continues at a
rate never
seen before in a frantic effort to prop up stock prices and continue
the housing
bubble, while avoiding the consequences that inevitably come from easy
credit.
This is all done because we are unwilling to acknowledge that current
policy is
only setting the stage for a huge drop in the value of the dollar.
Everyone
fears it, but no one wants to deal with it.
2002 Ron Paul 46:8
Ignorance, as well as
disapproval for
the natural restraints placed on market excesses that capitalism and
sound
markets impose, cause our present leaders to reject capitalism and
blame it for
all the problems we face. If this fallacy is not corrected and
capitalism is
even further undermined, the prosperity that the free market generates
will be
destroyed.
2002 Ron Paul 46:9
Corruption and fraud in the
accounting
practices of many companies are coming to light. There are those who
would have
us believe this is an integral part of free-market capitalism. If we
did have
free-market capitalism, there would be no guarantees that some fraud
wouldn’t
occur. When it did, it would then be dealt with by local
law-enforcement
authority and not by the politicians in Congress, who had their chance
to
prevent such problems but chose instead to politicize the issue,
while using the opportunity to promote more Keynesian useless
regulations.
2002 Ron Paul 46:10
Capitalism should not be
condemned,
since we haven’t had capitalism. A system of capitalism presumes sound
money,
not fiat money manipulated by a central bank. Capitalism cherishes
voluntary
contracts and interest rates that are determined by savings, not credit
creation
by a central bank. It’s not capitalism when the system is plagued with
incomprehensible rules regarding mergers, acquisitions, and stock
sales, along
with wage controls, price controls, protectionism, corporate subsidies,
international management of trade, complex and punishing corporate
taxes,
privileged government contracts to the military- industrial complex,
and a
foreign policy controlled by corporate interests and overseas
investments. Add
to this centralized federal mismanagement of farming, education,
medicine,
insurance, banking and welfare. This is not capitalism!
2002 Ron Paul 46:11
To condemn free-market
capitalism
because of anything going on today makes no sense. There is no evidence
that
capitalism exists today. We are deeply involved in an
interventionist-planned
economy that allows major benefits to accrue to the politically
connected of
both political spectrums. One may condemn the fraud and the current
system, but
it must be called by its proper names- Keynesian inflationism,
interventionism,
and corporatism.
2002 Ron Paul 46:12
What is not discussed is that
the
current crop of bankruptcies reveals that the blatant distortions and
lies
emanating from years of speculative orgy were predictable.
2002 Ron Paul 46:13
First, Congress should be
investigating
the federal government’s fraud and deception in accounting, especially
in
reporting future obligations such as Social Security, and how the
monetary
system destroys wealth. Those problems are bigger than anything in the
corporate
world and are the responsibility of Congress. Besides, it’s the
standard set
by the government and the monetary system it operates that are major
contributing causes to all that’s wrong on Wall Street today. Where
fraud does
exist, it’s a state rather than federal matter, and state authorities
can
enforce these laws without any help from Congress.
2002 Ron Paul 46:14
Second, we do know why
financial
bubbles occur, and we know from history that they are routinely
associated with
speculation, excessive debt, wild promises, greed, lying, and cheating.
These
problems were described by quite a few observers as the problems were
developing
throughout the 90s, but the warnings were ignored for one reason.
Everybody was
making a killing and no one cared, and those who were reminded of
history were
reassured by the Fed Chairman that this time a new economic era had
arrived and not to worry. Productivity increases, it was said, could
explain it
all.
2002 Ron Paul 46:15
But now we know that’s just
not so.
Speculative bubbles and all that we’ve been witnessing are a
consequence of
huge amounts of easy credit, created out of thin air by the Federal
Reserve. We’ve
had essentially no savings, which is one of the most significant
driving forces
in capitalism. The illusion created by low interest rates perpetuates
the bubble
and all the bad stuff that goes along with it. And that’s not a fault
of
capitalism. We are dealing with a system of inflationism and
interventionism
that always produces a bubble economy that must end badly.
2002 Ron Paul 46:16
So far the assessment made by
the
administration, Congress, and the Fed bodes badly for our economic
future. All
they offer is more of the same, which can’t possibly help. All it will
do is
drive us closer to national bankruptcy, a sharply lower dollar, and a
lower
standard of living for most Americans, as well as less freedom for
everyone.
2002 Ron Paul 46:17
This is a bad scenario that
need not
happen. But preserving our system is impossible if the critics are
allowed to
blame capitalism and sound monetary policy is rejected. More spending,
more
debt, more easy credit, more distortion of interest rates, more
regulations on
everything, and more foreign meddling will soon force us into the very
uncomfortable position of deciding the fate of our entire political
system.
2002 Ron Paul 46:18
If we were to choose freedom
and
capitalism, we would restore our dollar to a commodity or a gold
standard.
Federal spending would be reduced, income taxes would be lowered, and
no taxes
would be levied upon savings, dividends, and capital gains. Regulations
would be
reduced, special-interest subsidies would be stopped, and no
protectionist
measures would be permitted. Our foreign policy would change, and we
would bring
our troops home.
2002 Ron Paul 46:19
We cannot depend on government
to
restore trust to the markets; only trustworthy people can do that.
Actually, the
lack of trust in Wall Street executives is healthy because it’s
deserved and
prompts caution. The same lack of trust in politicians, the budgetary
process,
and the monetary system would serve as a healthy incentive for the
reform in
government we need.
2002 Ron Paul 46:20
Markets regulate better than
governments can. Depending on government regulations to protect us
significantly
contributes to the bubble mentality.
2002 Ron Paul 46:21
These moves would produce the
climate
for releasing the creative energy necessary to simply serve consumers,
which is
what capitalism is all about. The system that inevitably breeds the
corporate-government cronyism that created our current ongoing disaster
would
end.
2002 Ron Paul 46:22
Capitalism didn’t give us this
crisis
of confidence now existing in the corporate world. The lack of free
markets and
sound money did. Congress does have a role to play, but it’s not
proactive.
Congress’ job is to get out of the way.
2002 Ron Paul Chapter 47
http://www.house.gov/paul/congrec/congrec2002/cr071602.htm
Congressman Ron Paul
U.S. House of Representatives
July 16, 2002
Government Mortgage Schemes Distort the Housing Market
2002 Ron Paul 47:1
Mr. Speaker, I rise to introduce the Free Housing Market Enhancement Act.
This legislation restores a free market in housing by repealing special
privileges for housing-related government sponsored enterprises (GSEs).
These
entities are the Federal National Mortgage Association (Fannie), the
Federal
Home Loan Mortgage Corporation (Freddie), and the National Home Loan
Bank Board
(HLBB). According to the Congressional Budget Office, the
housing-related GSEs
received $13.6 billion worth of indirect federal subsidies in fiscal
year 2000
alone.
2002 Ron Paul 47:2
One of the major government privileges granted these GSEs is a line of credit
to the United States Treasury. According to some estimates, the line of
credit
may be worth over $2 billion. This explicit promise by the Treasury to
bail out
these GSEs in times of economic difficulty helps them attract investors
who are
willing to settle for lower yields than they would demand in the
absence of the
subsidy. Thus, the line of credit distorts the allocation of capital.
More
importantly, the line of credit is a promise on behalf of the
government to
engage in a massive unconstitutional and immoral income transfer from
working
Americans to holders of GSE debt.
2002 Ron Paul 47:3
The Free Housing Market Enhancement Act also repeals the explicit grant of
legal authority given to the Federal Reserve to purchase the debt of
housing-related GSEs. GSEs are the only institutions besides the United
States
Treasury granted explicit statutory authority to monetize their debt
through the
Federal Reserve. This provision gives the GSEs a source of liquidity
unavailable
to their competitors.
2002 Ron Paul 47:4
Ironically, by transferring the risk of a widespread mortgage default, the
government increases the likelihood of a painful crash in the housing
market.
This is because the special privileges of Fannie, Freddie, and HLBB
have
distorted the housing market by allowing them to attract capital they
could not
attract under pure market conditions. As a result, capital is diverted
from its
most productive use into housing. This reduces the efficacy of the
entire market
and thus reduces the standard of living of all Americans.
2002 Ron Paul 47:5
However, despite the long-term damage to the economy inflicted by the
government’s interference in the housing market, the government’s
policies
of diverting capital to other uses creates a short-term boom in
housing. Like
all artificially-created bubbles, the boom in housing prices cannot
last
forever. When housing prices fall, homeowners will experience
difficulty as
their equity is wiped out. Furthermore, the holders of the mortgage
debt will
also have a loss. These losses will be greater than they would have
otherwise
been had government policy not actively encouraged over-investment in
housing.
2002 Ron Paul 47:6
Perhaps the Federal Reserve can stave off the day of reckoning by purchasing
GSE debt and pumping liquidity into the housing market, but this cannot
hold off
the inevitable drop in the housing market forever. In fact, postponing
the
necessary but painful market corrections will only deepen the
inevitable fall.
The more people invested in the market, the greater the effects across
the
economy when the bubble bursts.
2002 Ron Paul 47:7
No less an authority than Federal Reserve Chairman Alan Greenspan has
expressed concern that government subsidies provided to the GSEs make
investors
underestimate the risk of investing in Fannie Mae and Freddie Mac.
2002 Ron Paul 47:8
Mr. Speaker, it is time for Congress to act to remove taxpayer support from
the housing GSEs before the bubble bursts and taxpayers are once again
forced to
bail out investors misled by foolish government interference in the
market. I
therefore hope my colleagues will stand up for American taxpayers and
investors
by cosponsoring the Free Housing Market Enhancement Act.
2002 Ron Paul Chapter 48
http://www.house.gov/paul/congrec/congrec2002/cr071702.htm
Congressman Ron Paul
U.S. House of Representatives, Financial Services Committee
July 17, 2002
Hard Questions for Federal Reserve Chairman Greenspan
2002 Ron Paul 48:1
Rep. Paul: Welcome Chairman Greenspan.
Ive listened carefully to your
testimony but I get the sense I may be listening to the Chairman of the
Board of Central Economic planning rather than the chairman of a board
that
has been entrusted with protecting the value of the dollar.
2002 Ron Paul 48:2
I have for quite a few years now
expressed concern about the value of the
dollar which I think we neglect here in the Congress, here in the
committee
and I do not think that the Federal Reserve has done a good job in
protecting the value of the dollar. And it seems that maybe others are
coming around to this viewpoint because I see that the head of the IMF
this
week, Mr. Koehler has expressed a concern and made a suggestion that
all
the central bankers of the world need to lay plans in the near future
to
possibly prop up the dollar. So others have this same concern.
2002 Ron Paul 48:3
You have in your testimony expressed
concern about the greed factor which
obviously is there. And you implied that this has come out from the
excessive capitalization/excessive valuations, which may be true. But I
believe where you have come up short is in failing to explain why we
have
financial bubbles. I think when you have fiat money and excessive
credit
you create financial bubbles and you also undermine the value of the
dollar
and now we are facing that consequence. We see the disintegration of
some
of these markets. At the same time we have potential real depreciation
of
the value of our dollar. And we have pursued rampant inflation of the
money
supply. Since you have been Chairman of the Federal Reserve we have
literally created $4.7 trillion worth of new money in M-3. Even in this
last year with this tremendous burst of inflation of the money supply
has gone up since last January over $1 trillion. You cant have
anything but lower value of that unit of account if you keep printing
and creating new money.
2002 Ron Paul 48:4
Now I would like to bring us back
to sound money. And I would like to quote an eminent economist by the
name of Alan Greenspan who gives me some
credibility on what I am interested in. A time ago you said, In the
absence of the gold standard there is no way to protect savings from
the confiscation through inflation. There is no safe store of value
without gold. This is the shabby secret of the welfare statists
tirades against gold. Deficit spending is simply a scheme for the
hidden confiscation of wealth. Gold stands in the way of this insidious
process that stands as a protector of property rights.
2002 Ron Paul 48:5
Congressman Paul then added the he
strongly believed this statement by
Greenspan taken from a 1966 article that was included in an article he
had
written titled, Gold & Economic Freedom was true. Congressman
Paul
continued,
2002 Ron Paul 48:6
But gold has always had to be
undermined if fiat money is to work and there has to be an illusion of
trust for paper to work. And I think this has been happening for
thousands of years. At one time the kings clipped coins. Then they
debased the metals. Then we learned how to print money. Even as
recently as the 1960s for us to perpetuate a myth about our monetary
system, we dumped 2/3 of our gold, or 500 million ounces of gold at $35
per ounce in order to try to convince people to trust the money. And
even today, there is a fair amount of trading by central banks, the
dumping of hundreds of tonnes of gold, loaning of gold for the sole
purpose that this indicator of gold does not discredit the paper money
and I think there is a definite concerted effort to do that.
2002 Ron Paul 48:7
My questions are two fold relating to
gold. One, I have been trying to
desperately to find out the total amount of gold either dumped and sold
on
to the markets by all the central banks of the world or loaned by the
central banks of the world. And this is in hundreds and hundreds of
tons. But those figures are not available to me. Maybe you can help me
find this. I think it would be important to know since all central
banks still deal with and hold gold whether they are dumping, or
loaning or buying for that matter.
2002 Ron Paul 48:8
But along this line, I have a bill
that would say that our government, our
Treasury could not deal in gold and could not be involved in the gold
market unless the Congress knows about it. Now that to me seems like
such a reasonable approach and reasonable request. But they say they
dont use
it (gold) so we dont need the bill. But if they are not trading in
gold, what would be the harm in the Congress knowing about handling and
dealing about this asset, gold?
2002 Ron Paul 48:9
Chairman Greenspan: Well first of all,
neither we nor the Treasury trade gold. And
my impression is that were we to do so, we would announce it. It is
certain the case that others do. There are data published monthly or
quarterly which shows the reported gold holdings of central banks
throughout the world, so you do know who holds what. The actual trading
data, ah, I dont think is available though the London gold exchange
does show what its volume numbers are. And periodically, individual
central banks do indicate when they are planning to sell gold. But they
all report what they own. So it may well be the case that you cant
find specific transactions. I think what you can find is the net result
of those transactions and they are published. But so far as the United
States is concerned, we dont do it.
2002 Ron Paul Chapter 49
http://www.house.gov/paul/congrec/congrec2002/cr072302.htm
Congressman Ron Paul
U.S. House of Representatives
July 23, 2002
DEPARTMENT OF HOMELAND SECURITY – WHO NEEDS IT?
2002 Ron Paul 49:1
Mr. Speaker, the Department of Homeland Security, who needs it? Mr. Speaker, everyone agrees the 9-11 tragedy confirmed a problem that
exists in our domestic security and dramatized our vulnerability to
outside attacks. Most agree that the existing bureaucracy was inept.
The CIA, the FBI, the INS, and Customs failed to protect us.
2002 Ron Paul 49:2
It was not a lack of information that caused this failure; they had plenty. But they
failed to analyze, communicate, and use the information to our
advantage.
2002 Ron Paul 49:3
The flawed foreign policy of interventionism that we have followed for decades significantly contributed to the attacks. Warnings
had been sounded by the more astute that our meddling in the affairs of
others would come to no good. This resulted in our inability to defend
our own cities, while spending hundreds of billions of dollars
providing more defense for others than for ourselves. In the aftermath,
we were even forced to ask other countries to patrol our airways to
provide security for us.
2002 Ron Paul 49:4
A clear understanding of private property and an owners responsibility to protect it has been seriously undermined. This was
especially true for the airline industry. The benefit of gun ownership
and second amendment protections were prohibited. The government was
given the responsibility for airline safety through FAA rules and
regulations, and it failed miserably.
2002 Ron Paul 49:5
The solution now being proposed is a giant new federal department, and it is the only solution we are being offered, and one
which I am certain will lead to tens of billions of dollars of new
spending.
2002 Ron Paul 49:6
What is being done about the lack of emphasis on private property ownership? The security services are federalized. The airlines
are bailed out and given guaranteed insurance against all threats. We
have made the airline industry a public utility that gets to keep its
profits and pass on its losses to the taxpayers, like Amtrak and the
post office. Instead of more ownership responsibility, we get more
government controls.
2002 Ron Paul 49:7
Is the first amendment revitalized, and are owners permitted to defend their property, their passengers, and personnel? No, no hint
of it, unless you are El Al airlines, which enjoys this right, while no
others do.
2002 Ron Paul 49:8
Has anything been done to limit immigration from countries placed on the terrorist list? Hardly. Have we done anything to slow up
immigration of individuals with Saudi passports? No, oil is too
important to offend the Saudis.
2002 Ron Paul 49:9
Yet, we have done plenty to undermine the liberties and privacy of all Americans through legislation such as the PATRIOT Act. A
program is being planned to use millions of Americans to spy on their
neighbors, an idea appropriate for a totalitarian society. Regardless
of any assurances, we all know that the national ID card will soon be
instituted.
2002 Ron Paul 49:10
Who believes for a moment that the military will not be used to enforce civil law in the near future? Posse comitatus will be
repealed by executive order or by law, and liberty, the Constitution,
and the
republic will suffer another major setback.
2002 Ron Paul 49:11
Unfortunately, foreign policy will not change, and those who suggest that it be strictly designed for American security will be
shouted down for their lack of patriotism. Instead, war fever will
build until the warmongers get their wish and we march on Baghdad,
making us even a greater target of those who despise us for our
bellicose control of the world.
2002 Ron Paul 49:12
A new department is hardly what we need. That is more of the same, and will surely not solve our problems. It will, however, further
undermine our liberties and hasten the day of our national bankruptcy.
2002 Ron Paul 49:13
A common sense improvement to homeland security would allow the DOD to provide protection, not a huge, new, militarized domestic
department. We need to bring our troops home, including our Coast
Guard; close down the base in Saudi Arabia; stop expanding our presence
in the Muslim portion of the former Soviet Union; and stop taking sides
in the long, ongoing war in the Middle East.
2002 Ron Paul 49:14
If we did these few things, we would provide a lot more security and protect our liberties a lot better than any new department
ever will, and it will cost a lot less.
2002 Ron Paul Chapter 50
http://www.house.gov/paul/congrec/congrec2002/cr072402.htm
Congressman Ron Paul
U.S. House of Representatives
July 24, 2002
The Tragedy of Partial-Birth Abortion
2002 Ron Paul 50:1
Mr. Speaker, like many
Americans, I am
greatly concerned about abortion. Abortion on demand is no doubt the
most
serious social-political problem of our age. The lack of respect for
life that
permits abortion significantly contributes to our violent culture and
our
careless attitude toward liberty.
2002 Ron Paul 50:2
Whether a civilized society
treats
human life with dignity or contempt determines the outcome of that
civilization.
Reaffirming the importance of the sanctity of life is crucial for the
continuation of a civilized society. There is already strong evidence
that we
are indeed on the slippery slope toward euthanasia and human
experimentation.
Although the real problem lies within the hearts and minds of the
people, the
legal problems of protecting life stem from the ill-advised Roe v. Wade
ruling,
a ruling that constitutionally should never have occurred.
2002 Ron Paul 50:3
The best solution, of course,
is not
now available to us. That would be a Supreme Court that recognizes that
for all
criminal laws, the several states retain jurisdiction. Something that
Congress
can do is remove the issue from the jurisdiction of the lower federal
courts, so
that states can deal with the problems surrounding abortion, thus
helping to
reverse some of the impact of Roe v. Wade.
2002 Ron Paul 50:4
Unfortunately, H.R. 4965 takes
a
different approach, one that is not only constitutionally flawed, but
flawed in
principle, as well. Though I
will
vote to ban the horrible
partial-birth
abortion procedure, I fear that the language and reasoning used in this
bill do
not further the pro-life cause, but rather cement fallacious principles
into
both our culture and legal system.
2002 Ron Paul 50:5
For example, 14G in the
Findings section of this bill states, ...such a prohibition
[upon the partial-birth abortion procedure] will draw a bright line
that clearly
distinguishes abortion and infanticide... The question I wish to pose
in
response is this: Is not the fact that life begins at conception the
main tenet
of the pro-life community? By stating that we are drawing a bright
line between abortion and infanticide, I fear that we are simply
reinforcing the dangerous idea underlying Roe v. Wade, which is the
belief that
we as human beings can determine which members of the human family are
expendable, and which are not.
2002 Ron Paul 50:6
The belief that we as a
society can
decide which persons are expendable, leads us directly down a
slippery slope of violence and apathy toward humanity. Though many
decry such
ethicists as Peter Singer of Princeton, who advocates the right of
parents to choose infanticide, as well as euthanasia, his reasoning is
simply a
logical extension of the ethic underlying Roe v. Wade, which is that if
certain
people are not useful or convenient, they should be done
away with.
2002 Ron Paul 50:7
H.R. 4965 also depends heavily
upon a
distinction made by the Court in both Roe v. Wade and Planned
Parenthood v. Casey, which established that a child within the womb is
not
protected under law, but one outside of the womb is. By depending upon
this
false and illogical distinction, I fear that H.R. 4965, as I stated
before, ingrains the principles of Roe v. Wade into our justice system,
rather
than refutes them as it should.
2002 Ron Paul 50:8
Despite its severe flaws, this
bill
nonetheless has the possibility of saving innocent human life, and
should
therefore be supported. I fear, though, that when the pro-life
community uses
the arguments of the opposing side to advance its agenda, it does more
harm than
good.
2002 Ron Paul 50:9
I wish to conclude with a
quote from
Mother Theresa, who gave a beautiful and powerful speech about abortion
on
February 3, 1994, at the National Prayer Breakfast in Washington DC:
...From here, a sign of care for the weakest of the weak- the unborn
child- must go out to the world. If you (in the United States) become a
burning
light of justice and peace in the world, then really you will be true
to what
the founders of this country stood for...
2002 Ron Paul 50:10
May we see bills in the future
that
stay true to the solid principles the founders of this country stood
for, rather
than waver and compromise these principles.
2002 Ron Paul Chapter 51
http://www.house.gov/paul/congrec/congrec2002/cr072402b.htm
Congressman Ron Paul
U.S. House of Representatives
July 24, 2002
Statement on Expulsion of Congressman Jim Traficant
2002 Ron Paul 51:1
Mr. Speaker, many of Congressman
Traficant’s
actions are impossible to defend. Mr. Traficant likely engaged in
unethical
behavior. I hope all my colleagues would join me in condemning any
member who
abused his office by requiring staff to pay kick-backs to him and/or do
personal
work as a condition of employment. I also condemn in the strongest
terms
possible using one’s office to obtain personal favors from
constituents, the
people we are sent here to represent. Such behavior should never be
tolerated.
2002 Ron Paul 51:2
However, before expelling a member we
must
consider more than eccentric behavior and ethical standards. We must
first
consider whether Mr. Traficant’s received a fair trial and a fair
ethics
hearing. His constitutional right to a fair trial, and the right to be
judged by
those who elected him to office, are every bit as important.
2002 Ron Paul 51:3
Many Americans believe that Congress
routinely
engages in ethically questionable and unconstitutional actions, actions
which
are far more injurious to the liberty and prosperity of the American
people than
the actions of Mr. Traficant. Some question the ability of Congress to
judge the
moral behavior of one individual when, to use just one example, we
manage to
give ourselves a pay raise without taking a direct vote.
2002 Ron Paul 51:4
Mr. Speaker, after listening carefully
to last
week’s ethics hearing, I have serious concerns about whether Mr.
Traficant
received a fair trial. In particular, I am concerned whether the change
of venue
denied Mr. Traficant a meaningful opportunity to present his case to a
jury of
his peers. Usually a change of venue is appropriate in cases where the
defendant
cannot receive a fair trial. I am unaware of any other case where the
venue was
changed for the benefit of the state.
2002 Ron Paul 51:5
However, the most disturbing
accusations concern
the possibility that Mr. Traficant was denied basic due process by not
being
allowed to present all of his witnesses at the trial. This failure
raises
serious questions whether Mr. Traficant had the opportunity to present
an
adequate defense. These questions are especially serious since one of
the jurors
from Mr. Traficant’s criminal trial told the
Cleveland Plain Dealer
that had he heard the testimony of Richard Detore at Mr. Traficant’s
trial, he
would have voted not guilty.
2002 Ron Paul 51:6
Mr. Speaker, I also question the timing
of this
resolution and the process by which this resolution is being brought to
the
floor. Mr. Traficant’s conviction is currently on appeal. Many
Americans
reasonably wonder whether the case, and the question of Mr. Traficant’s
guilt,
can be considered settled before the appeals process is completed. I
fail to see
the harm that would be done to this body if we waited until Mr.
Traficant
exhausts his right to appeal.
2002 Ron Paul 51:7
Before voting to expel Mr. Traficant
while his
appeal is pending, my colleagues should consider the case of former
Representative George Hansen. Like Mr. Traficant, Mr. Hansen was
convicted in
federal court, censured by Congress, and actually served time in
federal prison.
However, Mr. Hansen was acquitted on appeal- after his life, career,
and
reputation were destroyed.
2002 Ron Paul 51:8
If my colleagues feel it is important
to condemn
Mr. Traficant before the August recess, perhaps we should consider
censure. Over
the past twenty years, this body has censured, rather than expelled,
members who
have committed various ethical and even criminal violations, ranging
from
bribery to engaging in sexual activity with underage subordinates.
2002 Ron Paul 51:9
I also am troubled that Mr. Traficant
will have
only 30 minutes to plead his case before the full House. Spending only
an hour
to debate this resolution, as though expelling a member of Congress is
no more
important than honoring Paul Ecke’s contributions to the Poinsettia
industry,
does this Congress a disservice.
2002 Ron Paul 51:10
In conclusion Mr. Speaker, because of
my
concerns over the fairness of Mr. Traficant’s trial, I believe it is
inappropriate to consider this matter until Mr. Traficant has exhausted
his
right to appeal.
2002 Ron Paul Chapter 52
http://www.house.gov/paul/congrec/congrec2002/cr072602.htm
Congressman Ron Paul
U.S. House of Representatives
July 26, 2002
Statement on Homeland Security Vote
2002 Ron Paul 52:1
MR. PAUL: Mr. Speaker, I do not oppose this rule because I would like to
consider this important issue, but I am very concerned with the process
of
bringing this legislation before this body.
2002 Ron Paul 52:2
Mr. Speaker, since we began looking at proposals here in the House of
Representatives, more questions have arisen than have been answered. We
have put
this legislation on a fast track to passage, primarily for reasons
of public relations, and hence have short-circuited the deliberative
process. It
has been argued that the reason for haste is the seriousness of the
issue, but
frankly I have always held that the more serious the issue is, the more
deliberative we here ought to be.
2002 Ron Paul 52:3
Instead of a carefully-crafted product of meaningful deliberations, I fear we
are once again about to pass a hastily-drafted bill in order to appear
that we
are doing something. Over the past several months, Congress has
passed a number of hastily crafted measures that do little, if
anything, to
enhance the security of the American people. Instead, these measures
grow the
size of the federal government, erode constitutional liberties, and
endanger our
economy by increasing the federal deficit and raiding the social
security trust
fund. The American people would be better severed if we gave the
question of how
to enhance security from international terrorism the serious
consideration it
deserves rather than blindly expanding the federal government. Congress
should
also consider whether our hyper-interventionist foreign policy really
benefits
the American people.
2002 Ron Paul 52:4
Serious and substantive questions about this reorganization have been raised.
Many of these questions have yet to be resolved. Just because a bill
has been
reported from the Select Committee does not mean that a consensus
exists.
Indeed, even a couple of days before consideration, this bill it was
impossible
to get access to the legislation in the form introduced in the
committee, let
alone as amended by the committee.
2002 Ron Paul 52:5
In the course of just one week, the President’s original 52-page proposal
swelled to 232 pages, with most members, including myself, unable to
review the
greatly expanded bill. While I know that some of those additions are
positive,
such as Mr. Armeys amendments to protect the privacy of American
citizens, it
is impossible to fully explore the implications of this, the largest
departmental reorganization in the history of our federal government,
without
sufficient time to review the bill. This is especially the case in
light of the
fact that a number of the recommendations of the standing committees
were not
incorporated in the legislation, thus limiting our ability to
understand how our
constituents will be affected by this legislation.
2002 Ron Paul 52:6
I have attempted to be a constructive part of this very important process.
From my seat on the House International Relations Committee I
introduced
amendments that would do something concrete to better secure our
homeland.
Unfortunately, my amendments were not adopted in the form I offered
them. Why?
Was it because they did not deal substantively with the issues at hand?
Was it
because they addressed concerns other than those this new department
should
address? No, amazingly I was told that my amendments were too
substantive. My amendments would have made it impossible for more
people similar to those who hijacked those aircraft to get into our
country.
They would have denied certain visas and identified Saudi Arabia as a
key
problem in our attempt to deal with terrorism. Those ideas were deemed
too
controversial, so they are not included in this bill.
2002 Ron Paul 52:7
I also introduced four amendments to the bill itself, including those that
would prohibit a national identification card, that would prohibit the
secretary
of this new department from moving money to other agencies and
departments
without Congressional oversight, that would deny student visas to
nationals of
Saudi Arabia, and that would deny student and diversity visas to
nationals from
terrorist-sponsoring countries. All of these amendments, which would
have
addressed some of the real issues of our security, were rejected. They
were not
even allowed onto the floor for a debate. This is yet more evidence of
the
failure of this process.
2002 Ron Paul 52:8
Mr. Speaker, the move to create a federal Department of Homeland Security was
initiated in response to the terrorist attacks of September 11 and
subsequent
revelations regarding bureaucratic bungling and ineptness related to
those
attacks. Leaving aside other policy initiatives that may be more
successful in
reducing the threat of future terror attacks, I believe the President
was
well-intentioned in suggesting that a streamlining of functions might
be
helpful.
2002 Ron Paul 52:9
Mr. Speaker, as many commentators have pointed out, the creation of this new
department represents the largest reorganization of federal agencies
since the
creation of the Department of Defense in 1947. Unfortunately, the
process by
which we are creating this new department bears little resemblance to
the
process by which the Defense Department was created. Congress began
hearings on
the proposed department of defense in 1945 -- two years before
President Truman
signed legislation creating the new Department into law! Despite the
lengthy
deliberative process through which Congress created the new department,
turf
battles and logistical problems continued to bedevil the military
establishment,
requiring several corrective pieces of legislation. In fact, Mr.
Speaker, the
Goldwater-Nicholas Department of Defense Reorganization Act of 1986 (PL
99-433)
was passed to deal with problems steaming from the 1947 law! The
experience with
the Department of Defense certainly suggests the importance of a more
deliberative process in the creation of this new agency.
2002 Ron Paul 52:10
This current proposed legislation suggests that merging 22 government
agencies and departments — comprising nearly 200,000 federal
employees — into
one department will address our current vulnerabilities. I do not see
how this
can be the case. If we are presently under terrorist threat, it seems
to me that
turning 22 agencies upside down, sparking scores of turf wars and
creating
massive logistical and technological headaches - does anyone really
believe that
even simple things like computer and telephone networks will be up and
running
in the short term? — is hardly the way to maintain the readiness and
focus
necessary to defend the United States. What about vulnerabilities while
Americans wait for this massive new bureaucracy to begin functioning as
a whole
even to the levels at which its component parts were functioning before
this
legislation was taken up? Is this a risk we can afford to take? Also,
isn’t it
a bit ironic that in the name of homeland security we seem to be
consolidating everything except the government agencies most critical
to the
defense of the United States: the multitude of intelligence agencies
that make
up the Intelligence Community?
2002 Ron Paul 52:11
Mr. Speaker, I come from a Coastal District in Texas. The Coast Guard and its
mission are important to us. The chairman of the committee of
jurisdiction over
the Coast Guard has expressed strong reservations about the plan to
move the
Coast Guard into the new department. Recently my district was hit by
the
flooding in Texas, and we relied upon the Federal Emergency Management
Agency (FEMA)
to again provide certain services. Additionally, as a district close to
our
border, much of the casework performed in my district offices relates
to
requests made to the Immigration and Naturalization Service. There has
been a
difference of opinion between committees of jurisdiction and the
administration
in regard to all these functions. In fact, the Presidents proposal was
amended
in no fewer than a half dozen of the dozen committees to which it was
originally
referred.
2002 Ron Paul 52:12
My coastal district also relies heavily on shipping. Our ports are essential
for international trade and commerce. Last year, over one million tons
of goods
was moved through just one of the Ports in my district! However,
questions
remain about how the mission of the Customs Service will be changed by
this new
department. These are significant issues to my constituents, and may
well affect
their very livelihoods. For me to vote for this bill would amount to
giving my personal assurance that the creation of this new department will not
adversely impact the fashion in which the Coast Guard and Customs Service provide
the services which my constituents have come to rely upon. Based on the
expedited process we have followed with this legislation, I do not believe I can
give such an assurance.
2002 Ron Paul 52:13
We have also received a Congressional Budget Office (CBO) cost estimate suggesting that it will cost no less than $3 billion just to implement
this new department. That is $3 billion dollars that could be spent to capture
those responsible for the attacks of September 11 or to provide tax-relief to
the families of the victims of that attack. It is three billion dollars
that could perhaps be better spent protecting against future attacks, or even
simply to meet the fiscal needs of our government. Since those attacks this
Congress has gone on a massive spending spree. Spending three billion additional
dollars now, simply to rearrange offices and command structures, is not a wise move.
In fact, Congress is actually jeopardizing the security of millions of Americans
by raiding the social security trust fund to rearrange deck chairs and
give big spenders yet another department on which to lavish pork-barrel
spending. The way the costs of this department have skyrocketed before the Department is
even open for business leads me to fear that this will become yet another
justification for Congress to raid the social security trust fund in order to finance
pork-barrel spending. This is especially true in light of the fact that
so many questions remain regarding the ultimate effect of these structural
changes. Moreover, this legislation will give the Executive Branch the authority
to spend
money appropriated by Congress in ways Congress has not authorized.
This clearly
erodes Constitutionally-mandated Congressional prerogatives relative to
control
of federal spending.
2002 Ron Paul 52:14
Recently the House passed a bill allowing for the arming of pilots. This was
necessary because the Transportation Security Administration (TSA)
simply
ignored legislation we had passed previously. TSA is, of course, a key
component
of this new department. Do we really want to grant authority over
appropriations
to a Department containing an agency that has so brazenly ignored the
will of
Congress as recently as has the TSA?
2002 Ron Paul 52:15
In fact, there has been a constant refusal of the bureaucracy to recognize
that one of the best ways to enhance security is to legalize the second
amendment and allow private property owners to defend their property.
Instead,
the security services are federalized. The airlines are bailed out and
given
guaranteed insurance against all threats. We have made the airline
industry a
public utility that gets to keep its profits and pass on its losses to
the
taxpayers, like Amtrak and the post office. Instead of more ownership
responsibility, we get more government controls. I am reluctant, to say
the
least, to give any new powers to bureaucrats who refuse to recognize
the vital
role free citizens exercising their second amendment rights play in
homeland
security.
2002 Ron Paul 52:16
Mr. Speaker, government reorganizations, though generally seen as benign, can
have a deleterious affect not just on the functioning of government but
on our
safety and liberty as well. The concentration and centralization of
authority
that may result from today’s efforts should give us all reason for
pause. But
the current process does not allow for pause. Indeed, it militates
toward
rushing decisions without regard to consequence. Furthermore, this
particular
reorganization, in an attempt to provide broad leeway for the new
department,
undermines our Congressional oversight function. Abrogating our
Constitutionally-mandated responsibilities so hastily now also means
that future
administrations will find it much easier to abuse the powers of this
new
department to violate constitutional liberties.
2002 Ron Paul 52:17
Perhaps a streamlined, reconfigured federal government with a more clearly
defined and limited mission focused on protecting citizens and their
freedoms
could result from this reorganization, but right now it seems far more
likely
that the opposite will occur. That is why I must oppose creation of
this new
department.
2002 Ron Paul 52:18
Until we deal with the substance of the problem — serious issues of American
foreign policy about which I have spoken out for years, and important
concerns
with our immigration policy in light of the current environment — attempts such
as we undertake today at improved homeland security will amount to,
more or
less, rearranging deck chairs — or perhaps more accurately office
chairs in
various bureaucracies. Until we are prepared to have serious and frank
discussions of policy this body will not improve the security of
American
citizens and their property. I stand ready to have that debate, but
unfortunately this bill does nothing to begin the debate and nothing
substantive
to protect us. At best it will provide an illusion of security, and at
worst
these unanswered questions will be resolved by the realization that
entities
such as the Customs Service, Coast Guard and INS will be less
effective, less
efficient, more intrusive and mired in more bureaucratic red tape.
Therefore, we
should not pass this bill today.
2002 Ron Paul Chapter 53
http://www.house.gov/paul/congrec/congrec2002/cr072602b.htm
Congressman Ron Paul
July 23, 2002
Before the House Ways and Means Committee
Member comment period on HR 5095
2002 Ron Paul 53:1
MR. PAUL: Mr. Chairman, thank you for the opportunity to submit my statement
regarding the corporate tax bill recently marked up by this
committee.
2002 Ron Paul 53:2
I hope Congress understands the historical significance of this bill. Once
again, as when we created the ETI (extraterritorial) tax regime in
2000, we are acting at the behest on an international body. We
are changing our domestic laws, and changing the way we tax domestic parent
corporations
on the activities of their subsidiaries operating
wholly outside
of the U.S.,
because an international body demands it. The
WTO
appellate panel has spoken, and their will trumps Congress. Yet
we were
assured in 1994 that our membership in the WTO would never diminish
American
sovereignty.
2002 Ron Paul 53:3
The Europeans argue, quite correctly, that we treat some foreign-source
corporate earnings preferentially, i.e. we exempt from tax a portion of
the earnings of foreign sales corporations (FSCs). This is not,
however, an argument for abolishing the FSC — it is an argument for adopting a
territorial tax system like many of our European critics!
2002 Ron Paul 53:4
Putting politics aside, however, the reality
is that we must craft a bill
that satisfies the WTO to avoid further trade sanctions.
While
reform of our overall tax system remains an issue for another day, it
is vital
that Congress begin to consider comprehensive overhaul of U.S.
international tax
rules.
2002 Ron Paul 53:5
The FSC, created by Congress in 1984 under IRC sections 921-927, provides needed
relief
from the subpart F anti-deferral rules for the foreign subsidiaries of
our
domestic corporations.
FSCs make it
possible for U.S. corporations to better compete with companies
incorporated in
territorial-system nations — which is to say companies that generally
pay no
corporate tax at all on the foreign-source income of their subsidiaries.
I urge the committee to reconsider repealing the FSC, an entity
utilized by
several corporations in my district that employ thousands of people,
including
Marathon Oil, Dow Chemical, and British Petroleum. Since
competing
legislation recently introduced in this committee seeks to encourage
American
manufacturing and exports, it is imperative that any manufacturing
deduction
(for qualified production activities) include income derived from
the production of finished energy products — refined gasoline,
liquefied natural
gas, etc.
2002 Ron Paul 53:6
It may not be possible
to design a replacement that will replicate the same benefits (of the
FSC) to
the same taxpayers and still satisfy the WTO. On this point, I
concur with
Chairman Thomas. The committee should recognize that there
will be
winners and losers with any change to the existing rules.
However, I
believe it is important to balance the needs of various affected
industries and
implement any proposed legislation in a manner that avoids disruption
of current
business plans and activities.
2002 Ron Paul 53:7
Current international
tax rules are grossly outdated. The basic Subpart F rules were
enacted in
1962. These rules reflect the economic climate of that
time. In
1962, the United States was a net exporter of capital and enjoyed a
trade
surplus. Imports and exports were only one-half of the percentage
of GDP
that they are today. The world has changed. Our tax laws
need to
change too.
2002 Ron Paul 53:8
The impact of U.S. tax
rules on the international competitiveness of U.S. multinationals is
much more
significant an issue than it was forty years ago. Today, foreign
markets provide
an increasing amount of the growth opportunities for U.S.
businesses. At
the same time, competition from multinationals headquartered outside of
the
United States is becoming greater. Of the world’s 20 largest
corporations, the number headquartered in the United States has
declined from 18
in 1960 to just 8 in 1996. Around the world, 21,000 foreign
affiliates of
U.S. multinationals compete with about 260,000 foreign affiliates of
foreign
multinationals.
2002 Ron Paul 53:9
If U.S. rules for taxing foreign source income are more burdensome than those of other
countries, U.S. businesses will be less successful in global markets, with
negative consequences for exports and jobs at home. I think a fair
comparison of U.S. international tax rules and those of other nations shows that
American businesses are increasingly put at a competitive disadvantage in the
world marketplace.
2002 Ron Paul 53:10
First, about half of OECD countries have a territorial tax system under which a company
generally is not subject to tax on the active income earned by a foreign
subsidiary. By
contrast, the United States taxes income of a U.S.-controlled foreign
corporation either when repatriated or when earned in cases where
income is
subject to U.S. anti-deferral rules.
2002 Ron Paul 53:11
Second, the scope of
U.S. anti-deferral rules under subpart F is unusually broad compared to
those of
other countries. While some countries tax passive income earned
by
controlled foreign subsidiaries, the United States stands out for
taxing (as a
deemed dividend) a wide range of active income under various subpart F
provisions.
2002 Ron Paul 53:12
Third, the U.S. foreign
tax credit, which is intended to prevent double taxation of foreign
source
income, has a number of deficiencies that increase complexity and
prevent full
double tax relief.
2002 Ron Paul 53:13
Taken all together, you
find that a U.S.-based business operating internationally frequently
pays a
greater share of its income in foreign and U.S. tax than does a
competing
multinational company headquartered outside of the United States. Yet
Congress
wonders why corporate inversions are at an all-time high!
2002 Ron Paul 53:14
One indication of the
impact of an overly burdensome and complex tax regime on the U.S.
economy is in
the area of corporate mergers and reorganizations. U.S.
international tax
rules can play a key role in determining the location of a corporate
headquarter, as we witnessed with the DaimlerChrysler merger. In
fact,
recent studies have shown that between 73 and 86 percent of large
cross-border
transactions involving U.S. companies have resulted in the merged
company being
headquartered abroad.
2002 Ron Paul 53:15
In conclusion, Mr. Chairman, I urge the committee to craft a final bill (or conference report) that satisfies the WTO without punishing those
U.S.
corporations that have relied on the FSC structure to maintain their
international competitiveness. I also urge the committee to use
this
debate as a springboard for wholesale reform of our international tax
rules.
2002 Ron Paul Chapter 54
http://www.house.gov/paul/congrec/congrec2002/cr090402.htm
Congressman Ron Paul
U.S. House of Representatives
September 4, 2002
Arguments Against a War in Iraq
2002 Ron Paul 54:1
Mr. Speaker;
I rise to urge the Congress to think twice before thrusting this
nation into
a war without merit- one fraught with the danger of escalating into
something no
American will be pleased with.
2002 Ron Paul 54:2
Thomas Jefferson once said:
Never was so much false arithmetic
employed
on any subject as that which has been employed to persuade nations that
it is in
their interests to go to war.
2002 Ron Paul 54:3
We have for months now heard plenty of false arithmetic and lame excuses for
why we must pursue a preemptive war of aggression against an
impoverished third
world nation 6000 miles from our shores that doesn’t even possess a
navy or
air force, on the pretense that it must be done for national security
reasons.
2002 Ron Paul 54:4
For some reason such an attack makes me feel much less secure, while our
country is made more vulnerable.
2002 Ron Paul 54:5
Congress must consider the fact that those with military experience advocate
a go slow policy, while those without military experience are the
ones demanding this war.
2002 Ron Paul 54:6
We cannot ignore the fact that all of Iraq’s neighbors oppose this attack,
and our European allies object as well.
2002 Ron Paul 54:7
If the military and diplomatic reasons for a policy of restraint make no
sense to those who want a war, I advise they consider the $100 billion
cost that
will surely compound our serious budget and economic problems we face
here at
home. We need no more false arithmetic on our budget or false reasons
for
pursuing this new adventure into preemptive war and worldwide
nation-building.
2002 Ron Paul 54:8
Mr. Speaker, allow me to offer another quote from Jefferson. Jefferson said:
No country perhaps was ever so thoroughly against war as ours. These
dispositions pervade every description of its citizens, whether in or
out of
office. We love and we value peace, we know its blessings from
experience.
2002 Ron Paul 54:9
We need this sentiment renewed in this Congress in order to avoid a needless
war that offers us nothing but trouble. Congress must deal with this
serious
matter of whether or not we go to war. I believe it would be a mistake
with the
information that is available to us today. I do not see any reason
whatsoever to
take young men and young women and send them 6,000 miles to attack a
country
that has not committed any aggression against this country. Many
American now
share my belief that it would be a serious mistake.
2002 Ron Paul 54:10
First, there is a practical reason to oppose a war in Iraq. Our military now
has been weakened over the last decade, and when we go into Iraq we
will clearly
dilute our ability to defend our country. We do not enhance our
national defense
by initiating this war. Besides, it is impractical because of
unintended
consequences which none of us know about. We do not know exactly how
long this
will last. It could be a six-day war, a six-month war, or six years or
even
longer.
2002 Ron Paul 54:11
There is a military reason for not going to war. We ought to listen to the
generals and other military experts, including Colin Powell, Brent
Scowcroft,
Anthony Zinni, and Norman Schwarzkopf, who are now advising us NOT to
go to war.
Some have even cautioned against the possibility of starting World War
III. They
understand that our troops have been spread too thin around the world,
and it is
dangerous from a purely military standpoint to go to war today.
2002 Ron Paul 54:12
There is a constitutional argument and a constitutional mistake that could be
made. If we once again go to war, as we have done on so many occasions
since
World War II, without a clear declaration of war by Congress, we
blatantly
violate the Constitution. I fear we will once again go to war in a
haphazard
way, by executive order, or even by begging permission from the rotten,
anti-American United Nations. This haphazard approach, combined with a
lack of
clearly defined goal for victory, makes it almost inevitable that true
victory
will not come. So we should look at this from a constitutional
perspective.
Congress should assume its responsibility, because war is declared by
Congress,
not by a President and not by a U.N.
2002 Ron Paul 54:13
This is a very important matter, and I am delighted to hear that there will
be congressional hearings and discussion. I certainly believe we should
have a
balanced approach. We have already had some hearings in the other body,
where we
heard only one side of the issue. If we want to have real hearings, we
should
have a debate and hear evidence on
both
sides, rather than just
hearing
pro-war interests arguing for war.
2002 Ron Paul 54:14
There are even good political reasons for not initiating this conflict. War
is not popular. It may seem popular in the short run, when there
appears to be
an immediate victory and everyone is gloating, but war is not popular.
People
get killed, and body bags end up coming back. War is very unpopular,
and it is
not the politically smart thing to do.
2002 Ron Paul 54:15
There are economic reasons to avoid this war. We can do serious damage to our
economy. It is estimated that this venture into Iraq may well cost over
a
hundred billion dollars. Our national debt right now is increasing at a
rate of
over $450 billion yearly, and we are talking about spending another
hundred
billion dollars on an adventure when we do not know what the outcome
will be and
how long it will last? What will happen to oil prices? What will happen
to the
recession that we are in? What will happen to the deficit? We must
expect all
kinds of economic ramifications.
2002 Ron Paul 54:16
There are countless diplomatic reasons for not going. All the Arab nations
near Iraq object to and do not endorse our plans, and none of our
European
allies are anxious for this to happen. So diplomatically we make a
serious
mistake by doing this. I hope we have second thoughts and are very
cautious in
what we do.
2002 Ron Paul 54:17
There are philosophical reasons for those who believe in limited government
to oppose this war. War is the health of the state, as the saying
goes. War necessarily means more power is given to the state. This
additional
power always results in a loss of liberty. Many of the worst government
programs
of the 20th century began during wartime emergencies and were never
abolished. War and big government go hand in hand, but we should be
striving for
peace and freedom.
2002 Ron Paul 54:18
Finally, there is a compelling moral argument against war in Iraq. Military
force is justified only in self-defense; naked aggression is the
province of
dictators and rogue states. This is the danger of a new preemptive
first
strike doctrine. America is the most moral nation on earth, founded on
moral principles, and we must apply moral principles when deciding to
use
military force.
2002 Ron Paul Chapter 55
http://www.house.gov/paul/congrec/congrec2002/cr090502.htm
Congressman Ron Paul
U.S. House of Representatives
September 5, 2002
A Foreign Policy for Peace, Prosperity, and Liberty
2002 Ron Paul 55:1
Introduction
Mr. Speaker:
2002 Ron Paul 55:2
Thomas Jefferson spoke for the founders and all our early presidents when he
stated: peace, commerce, and honest friendship with all nations,
entangling alliances with none... which is, one of the
essential principles of our government. The question is: Whatever
happened
to this principle and should it be restored?
2002 Ron Paul 55:3
We find the 20
th
Century was wracked with war, peace was turned
asunder, and our liberties were steadily eroded. Foreign alliances and
meddling
in the internal affairs of other nations became commonplace. On many
occasions,
involvement in military action occurred through UN resolutions or a
presidential
executive order, despite the fact that the war power was explicitly
placed in
the hands of Congress.
2002 Ron Paul 55:4
Since World War II, nearly 100,000 deaths and over a quarter million wounded
(not counting the many thousands that have been affected by Agent
Orange and the
Persian Gulf War Syndrome) have all occurred without a declaration of
war and
without a clear-cut victory. The entire 20
th
century was
indeed
costly, with over 600,000 killed in battle and an additional million
wounded.
2002 Ron Paul 55:5
If liberty had been truly enhanced during that time, less could be said about
the imperfections of the policy. The evidence, however, is clear that
we as a
people are less free, and the prosperity we still enjoy may be more
illusionary
than many realize. The innocent victims who have suffered at the hands
of our
militarism abroad are rarely considered by our government. Yet they may
well be
a major factor in the hatred now being directed toward America. It is
not
currently popular to question corporate and banking influence over a
foreign
policy that replaced the wisdom of Washington and Jefferson.
Questioning foreign
government influence on our policies, although known about for years,
is not
acceptable in the politically correct environment in which we live.
2002 Ron Paul 55:6
Theres little doubt that our role in the world dramatically changed in the 20
th
century,
inexorably
evolving from that of strict non-interventionism to that of sole
superpower,
with the assumption that we were destined to be the world policeman. By
the end
of the 20
th
century, in fact, this occurred. We have totally
forgotten that for well over a hundred years we followed the advice of
the
founders by meticulously avoiding overseas conflicts. Instead we now
find
ourselves in charge of an American hegemony spread to the four corners
of the
earth.
2002 Ron Paul 55:7
Now we have entered the 21
st
century, and there is not a country
in the world that does not either depend on the U.S. for protection, or
fear her
wrath if they refuse to do her bidding. As the 20
th
century
progressed, American taxpayers were required to finance, with great
sacrifices
to their pocketbooks and their liberty, the buying of loyalty through
foreign
aid and intimidation of those countries that did not cooperate.
2002 Ron Paul 55:8
The question remains, however: Has this change been beneficial to freedom and
prosperity here at home, and has it promoted peace and trade throughout
the
world? Those who justify our interventionist policies abroad argue that
the
violation of the rule of law is not a problem, considering the
benefits
we receive for maintaining the American empire. But has this really
taken into
consideration the cost in lives lost, the damage to long-term
prosperity, as
well as the dollar cost and freedoms we have lost? And what about the
future?
Has this policy of foreign intervention set the stage for radically
changing
America- and the world- in ways not yet seen? Were the founders
completely off
track because they lived in different times, or was the foreign policy
they
advised based on an
essential principle
of lasting value?
Choosing the
wrong answer to this question could very well be deadly to the grand
experiment
in liberty begun in 1776.
2002 Ron Paul 55:9
The Slippery Road to World Policeman
2002 Ron Paul 55:10
The transition from non-interventionism to our current role as world arbiter
in all conflicts was insidious and fortuitous. In the early part of the
20
th
century, the collapse of the British Empire left a vacuum, which was
steadily
filled by a US presence. In the latter part of the century, the results
of World
War II and the collapse of the Soviet system propelled us into our
current role.
Throughout most of the 20
th
century, it was our competition
with the
Soviets that prompted our ever-expanded presence around the world. We
are where
we are today almost by default. But does that justify interventionism
or prove
it is in our best interest?
2002 Ron Paul 55:11
Disregarding for the moment the moral and constitutional arguments against
foreign intervention, a strong case can be made against it for other
reasons. It
is clear that one intervention begets another. The first problem is
rarely
solved, and new ones are created. Indeed, in foreign affairs a slippery
slope
exists. In recent years, we too often slipped into war through the back
door,
with the purpose rarely defined or understood and the need for victory
ignored.
2002 Ron Paul 55:12
A restrained effort of intervention frequently explodes into something that
we did not foresee. Policies end up doing the opposite of their
intended
purpose- with unintended consequences. The result is that the action
taken turns
out to actually be detrimental to our national security interests. Yet
no effort
is made to challenge the fundamental principle behind our foreign
policy. It is
this failure to adhere to a set of principles that has allowed us to
slip into
this role, and if unchallenged, could well undo the liberties we all
cherish.
2002 Ron Paul 55:13
Throughout history, there has always been a great temptation for rulers to
spread their influence and pursue empire over liberty. Few resist this
temptation to power. There always seems to be a natural inclination to
yield to
this historic human passion. Could it be that progress and civilization
and
promoting freedom require ignoring this impulse to control others, as
the
founders of this great nation advised?
2002 Ron Paul 55:14
Historically, the driving force behind world domination is usually an effort
to control wealth. The Europeans were searching for gold when they came
to the
Americas. Now it
=s our turn
to seek
control over the black gold which drives much of what we do today in
foreign
affairs. Competing with the Soviet Union prompted our involvement in
areas of
the world where the struggle for the balance of power was the sole
motivating
force.
2002 Ron Paul 55:15
The foreign policy of the 20
th
century replaced the policy
endorsed by all the early presidents. This permitted our steadily
growing
involvement overseas in an effort to control the worlds
commercial interests, with a special emphasis on oil.
2002 Ron Paul 55:16
Our influence in the Middle East evolved out of concern for the newly created
state of Israel in 1947, and our desire to secure control over the flow
of oil
in that region. Israels needs and
Arab oil have influenced our foreign policy for more than a half a
century.
2002 Ron Paul 55:17
In the 1950s, the CIA installed the Shah in Iran. It was not until the
hostage crisis of the late 1970s that the unintended consequences of
this became
apparent. This generated Iranian hatred of America and led to the
takeover by
the reactionary Khoumini and the Islamic fundamentalists. It caused
greater
regional instability than we anticipated. Our meddling in the internal
affairs
of Iran was of no benefit to us and set the stage for our failed policy
in
dealing with Iraq.
2002 Ron Paul 55:18
We allied ourselves in the 1980s with Iraq in its war with Iran, and assisted
Saddam Hussein in his rise to power. As recent reports reconfirm, we
did nothing
to stop Husseins development of
chemical and biological weapons and at least indirectly assisted in
their
development. Now, as a consequence of that needless intervention, we
=re
planning a risky war to remove him from power. And as usual, the
probable result
of such an effort will be something our government does not anticipate-
like a
takeover by someone much worse. As bad as Hussein is, hes
an enemy of the Al Qaeda, and someone new may well be a close ally of
the
Islamic radicals.
2002 Ron Paul 55:19
Although our puppet dictatorship in Saudi Arabia has lasted for many decades,
its becoming shakier every day. The
Saudi people are not exactly friendly toward us, and our military
presence on
their holy soil is greatly resented. This contributes to the radical
fundamentalist hatred directed toward us. Another unfavorable
consequence to
America, such as a regime change not to our liking, could soon occur in
Saudi
Arabia. It is not merely a coincidence that 15 of the 9/11 terrorists
are
Saudis.
2002 Ron Paul 55:20
The Persian Gulf War, fought without a declaration of war, is in reality
still going on. It looks now like 9/11 may well have been a battle in
that war,
perpetrated by fanatical guerillas. It indicates how seriously flawed
our
foreign policy is. In the 1980s, we got involved in the Soviet/Afghan
war and
actually sided with the forces of Osama bin Laden, helping him gain
power. This
obviously was an alliance of no benefit to the United States, and it
has now
come back to haunt us. Our policy for years was to encourage Saudi
Arabia to
oppose communism by financing and promoting Islamic fundamentalism.
Surely the
shortcomings of that policy are now evident to everyone.
2002 Ron Paul 55:21
Clintons bombing of Sudan and Afghanistan on the eve of his indictment over Monica Lewinsky shattered
a
Taliban plan to expel Osama bin Laden from Afghanistan. Clintons
bombing of Baghdad on the eve of his impeachment hardly won any
converts to our
cause or reassured Muslim people in the Middle East of a balanced
American
policy.
2002 Ron Paul 55:22
The continued bombing of Iraq over these past 12 years, along with the deadly
sanctions resulting in hundreds of thousands of needless Iraqi civilian
deaths,
has not been beneficial to our security. And it has been used as one of
the
excuses for recruiting fanatics ready to sacrifice their lives in
demonstrating
their hatred toward us.
2002 Ron Paul 55:23
Essentially all Muslims see our policy in the Israeli-Palestinian conflict as
being openly favorable toward Israel and in opposition to the
Palestinians. It
is for this reason they hold us responsible for Palestinian deaths,
since all
the Israeli weapons are from the United States. Since the Palestinians
dont
even have an army and must live in refugee camps, one should understand
why the
animosity builds, even if our pro-Israeli position can be explained.
2002 Ron Paul 55:24
There is no end in sight. Since 9/11, our involvement in the Middle East and
Saudi Arabia has grown significantly. Though we can badger those
countries-
whose leaders depend upon us to keep them in power- to stay loyal to
the United
States, the common people of the region become more alienated. Our cozy
relationship with the Russians may not be as long-lasting as our
current
administration hopes, considering the $40 billion trade deal recently
made
between Russia and Saddam Hussein. Its
more than a bit ironic that we find the Russians now promoting free
trade as a
solution to a difficult situation while were
promoting war.
2002 Ron Paul 55:25
This continuous escalation of our involvement overseas has been widespread.
Weve been in Korea for more than 50
years. We have promised to never back away from the China-Taiwan
conflict over
territorial disputes. Fifty-seven years after World War II, we still
find our
military spread throughout Europe and Asia.
2002 Ron Paul 55:26
And now, the debate rages over whether our national security requires that
we, for the first time, escalate this policy of intervention to include
anticipatory
self-defense and preemptive war. If our interventions of the 20
th
century led to needless deaths, unwinnable wars, and continuous
unintended
consequences, imagine what this new doctrine is about to unleash on the
world.
2002 Ron Paul 55:27
Our policy has prompted us to announce that our CIA will assassinate Saddam
Hussein whenever it gets the chance and that the government of Iraq is
to be
replaced. Evidence now has surfaced that the United Nations inspection
teams in
the 1990s definitely included American CIA agents who were collecting
information on how to undermine the Iraqi government and continue with
the
routine bombing missions. Why should there be a question of why Saddam
Hussein
might not readily accept UN inspectors without some type of assurances?
Does
anybody doubt that control of Iraqi oil supplies, second only to Saudi
Arabia,
is the reason U.S. policy is belligerent toward Saddam Hussein? If our
goal is
honestly to remove dictators around the world, then this is the
beginning of an
endless task.
2002 Ron Paul 55:28
In the transition from the original American foreign policy of peace, trade,
and neutrality to that of world policeman, we have sacrificed our
sovereignty to
world government organizations, such as the UN, the IMF, the World
Bank, and the
WTO. To further confuse and undermine our position, we currently have
embarked
on a policy of unilateralism within these world organizations. This
means we
accept the principle of globalized government when it pleases us, but
when it
doesnt, we ignore it for the
sake of
our own interests.
2002 Ron Paul 55:29
Acting in our own interest is to be applauded, but what were getting is not a good alternative to a one-world government. We dont
get our sovereignty back, yet we continue to subject ourselves to a
great
potential financial burden and loss of liberty as we shift from a
national
government, with constitutional protection of our rights, to an
international
government, where our citizens rights
are threatened by treaties we haven
=t
ratified, like the Kyoto and International Criminal Court treaties. We
cannot
depend on controlling the world government at some later date, even if
we seem
to be able to do that now.
2002 Ron Paul 55:30
The unilateralist approach of dominating world leaders and arbitrarily ignoring certain mandates-
something we
can do with impunity because of our intimidating power- serves only to
further
undermine our prestige and acceptability throughout the world. And this
includes
the Muslim countries as well as our European friends. This merely sets
the stage
for both our enemies and current friends to act in concert against our
interests
when the time comes. This is especially true if we become financially
strapped
and our dollar is sharply weakened and we are in a much more vulnerable
bargaining position.
2002 Ron Paul 55:31
Unilateralism within a globalist approach to government is the worst of all
choices. It ignores national sovereignty, dignifies one-world
government, and
places us in the position of demanding dictatorial powers over the
world
community. Demanding the right to set all policy and exclude ourselves
from
jurisdictional restraints sows the seeds of future discontent and
hostility.
2002 Ron Paul 55:32
The downside is we get all the bills, risk the lives of our people without
cause, and make ourselves the target for every event that goes badly.
We get
blamed for the unintended, unforeseen consequences and become the
target of
terrorists that evolve from the radicalized fringes.
2002 Ron Paul 55:33
Long-term, foreign interventionism does not serve our interests. Tinkering on
the edges of our current policy will not help. An announced policy of
support
for globalist government, assuming the financial and military role of
world
policeman, maintaining an American world empire, while flaunting
unilateralism,
is a recipe for disaster. US unilateralism is a far cry from the
non-intervention that the founders advised.
2002 Ron Paul 55:34
The Principle Behind Foreign Policy
2002 Ron Paul 55:35
The term foreign policy does not exist in the Constitution. All members of the federal
government have
sworn to uphold the Constitution, and should do only those things that
are
clearly authorized. Careful reading of the Constitution reveals
Congress has a
lot more responsibility than the President in dealing with foreign
affairs. The
President is the Commander-in-Chief, but can
=t
declare war or finance military action without explicit congressional
approval.
A good starting point would be for Congress to assume the
responsibility given
it and to make sure the executive branch does not usurp any authority
explicitly
granted to Congress.
2002 Ron Paul 55:36
A proper foreign policy of non-intervention is built on friendship with other
nations, free trade, and open travel, maximizing the exchanges of goods
and
services and ideas. Nations that trade with each other are definitely
less
likely to fight against each other. Unnecessary bellicosity and
jingoism is
detrimental to peace and prosperity, and incites unnecessary
confrontation. And
yet, today, thats about all we hear
coming from the politicians and the media pundits who are so anxious
for this
war against Iraq.
2002 Ron Paul 55:37
We should avoid entangling alliances and stop meddling in the internal affairs of other
nations- no matter how many special interests demand otherwise. The
entangling alliances that we should avoid include the complex alliances
in the
UN, the IMF, the World Bank, and the WTO. One-world government goals
are
anathema to non-intervention and free trade. The temptation to settle
disputes
and install better governments abroad is fraught with great danger and
many
uncertainties.
2002 Ron Paul 55:38
Protecting our national sovereignty and guaranteeing constitutional protection of our citizens rights are
crucial. Respecting the sovereignty of other nations, even when we
=re
in disagreement with some of their policies, is also necessary.
Changing others
then becomes a job of persuasion and example- not force and
intimidation- just
as it is in trying to improve personal moral behavior of our fellow
citizens
here at home.
2002 Ron Paul 55:39
Defending our country from outside attack is legitimate and is of the highest
priority. Protecting individual liberty should be our goal. This does
not mean,
however, that our troops should follow our citizens or their
investments
throughout the world. While foreign visitors should be welcomed, no
tax-supported services should be provided. Citizenship should be given
with
caution, and not automatically by merely stepping over a national
boundary for
the purpose of giving birth.
2002 Ron Paul 55:40
A successful and prosperous society comes from such policies and is impossible without a sound free-market economy, one not controlled by a
central
bank. Avoiding trade wars, devaluations, inflations, deflations, and
disruption
of free trade with protectionist legislation is impossible under a
system of
international trade dependent on fluctuating fiat currencies controlled
by world
central banks and influenced by powerful financial interests.
Instability in
trade is one of the prime causes of creating conditions that lead to
war.
2002 Ron Paul 55:41
The basic moral principle underpinning a non-interventionist foreign policy
is that of rejecting the initiation of force against others. It is
based on
non-violence and friendship unless attacked, self-determination, and
self-defense while avoiding confrontation, even when we disagree with
the way
other countries run their affairs. It simply means that we should mind
our own
business and not be influenced by special interests that have an ax to
grind or
benefits to gain by controlling our foreign policy. Manipulating our
country
into conflicts that are none of our business and unrelated to national
security
provides no benefits to us, while exposing us to great risks
financially and
militarily.
2002 Ron Paul 55:42
What Would a Foreign Policy For Peace Look Like?
2002 Ron Paul 55:43
Our troops would be brought home, systematically but soon. Being in Europe
and Japan for over 50 years is long enough. The failure in Vietnam
resulted in
no occupation and a more westernized country now doing business with
the United
States. There
=s no evidence
that the
military approach in Vietnam was superior to that of trade and
friendship. The
lack of trade and the imposition of sanctions have not served us well
in Cuba or
in the Middle East. The mission for our Coast Guard would change if our
foreign
policy became non-interventionist. They, too, would come home, protect
our
coast, and stop being the enforcers of bureaucratic laws that either
should not
exist or should be a state function.
2002 Ron Paul 55:44
All foreign aid would be discontinued. Most evidence shows that this money
rarely helps the poor, but instead solidifies power in the hands of
dictators.
Theres no moral argument that can
justify taxing poor people in this country to help rich people in poor
countries. Much of the foreign aid, when spent, is channeled back to
weapons
manufacturers and other special interests in the United States who are
the
strong promoters of these foreign-aid expenditures. Yet its
all done in the name of humanitarian causes.
2002 Ron Paul 55:45
A foreign policy of freedom and peace would prompt us to give ample notice
before permanently withdrawing from international organizations that
have
entangled us for over a half a century. US membership in world
government was
hardly what the founders envisioned when writing the Constitution. The
principle
of Marque and Reprisal would be revived and specific problems such as
terrorist
threats would be dealt with on a contract basis incorporating private
resources
to more accurately target our enemies and reduce the chances of
needless and
endless war. This would help prevent a continual expansion of conflicts
into
areas not relating to any immediate threat. By narrowing the target,
theres
less opportunity for special interests to manipulate our foreign policy
to serve
the financial needs of the oil and military-weapon industries.
2002 Ron Paul 55:46
The Logan Act would be repealed, thus allowing maximum freedom of our
citizens to volunteer to support their war of choice. This would help
diminish
the enthusiasm for wars the proponents have used to justify our world
policies
and diminish the perceived need for a military draft.
2002 Ron Paul 55:47
If we followed a constitutional policy of non-intervention, we would never
have to entertain the aggressive notion of preemptive war based on
speculation
of what a country might do at some future date. Political pressure by
other
countries to alter our foreign policy for their benefit would never be
a
consideration. Commercial interests and our citizens investing overseas
could
not expect our armies to follow them and protect their profits. A
non-interventionist foreign policy would not condone subsidies to our
corporations through programs like the Export/Import Bank and the
Overseas
Private Investment Corporation. These programs guarantee against
losses, while
the risk takers want our military to protect their investments from
political
threats. This current flawed policy removes the tough decisions of when
to
invest in foreign countries and diminishes the pressure on those
particular
countries to clean up their political acts in order to entice foreign
capital to
move into their country. Todays
foreign policy encourages bad investments. Ironically this is all done
in the
name of free trade and capitalism, but it does more to export jobs and
businesses than promote free trade. And yet when it fails, capitalism
and
freedom are blamed.
2002 Ron Paul 55:48
A non-interventionist foreign policy would go a long way toward preventing
9/11 type attacks. The Department of Homeland Security would be
unnecessary, and
the military, along with less bureaucracy in our intelligence-gathering
agencies, could instead provide the security the new department is
supposed to
provide. A renewed respect for gun ownership and responsibility for
defending
one
=s property would provide
additional protection against potential terrorists.
2002 Ron Paul 55:49
Conclusion
2002 Ron Paul 55:50
There are many reasons why a policy of peace is superior to a policy of war.
The principle that we do not have the moral authority to forcibly
change
governments in foreign lands just because we dont
approve of their shortcomings should be our strongest argument- but
rarely today
is a moral argument in politics worth much.
2002 Ron Paul 55:51
The practical argument against intervention, because of its record of
failure, should certainly prompt all thoughtful people to reconsider
what we
have been doing for the past many decades.
2002 Ron Paul 55:52
We should all be aware that war is a failure of relationship between foreign
powers. Since this is such a serious matter, our American tradition as
established by the founders made certain that the executive is
subservient to
the more democratically responsive legislative branch on the issue of
war.
Therefore, no war is ever to be the prerogative of a president through
his
unconstitutional use of executive orders, nor should it ever be
something where
the legal authority comes from an international body such as NATO or
the United
Nations. Up until 50 years ago, this had been the American tradition.
2002 Ron Paul 55:53
Non-intervention prevents the unexpected and unintended consequences that
inevitably result from well-intended meddling in the affairs of others.
2002 Ron Paul 55:54
Countries like Switzerland and Sweden who promote neutrality and non-intervention have benefited for the most part by remaining secure
and free
of war over the centuries. Non-intervention consumes a lot less of the
nations
wealth- and with less wars, a higher standard of living for all
citizens
results. But this, of course, is not attractive to the
military-industrial
complex, which enjoys a higher standard of living at the expense of the
taxpayer
when a policy of intervention and constant war preparation is carried
out.
2002 Ron Paul 55:55
Wisdom, morality, and the Constitution are very unlikely to invade the minds
of the policy makers that control our foreign affairs. We have
institutionalized
foreign intervention over the past 100 years through the teachings of
all our
major universities and the propaganda that the media spews out. The
powerful
influence over our policy, both domestic and foreign, is not soon going
to go
away.
2002 Ron Paul 55:56
Im convinced however, that eventually restraint in our interventions overseas will be guided by a
more
reasonable constitutional policy. Economic reality will dictate it.
Although
political pressure in times of severe economic downturn and domestic
strife
encourage planned distractions overseas, these adventures always cause
economic
harm due to the economic costs. When the particular country or empire
involved
overreaches, as we are currently doing, national bankruptcy and a
severely
weakened currency call the whole process to a halt.
2002 Ron Paul 55:57
The Soviet system armed with an aggressive plan to spread its empire worldwide collapsed, not because we attacked it militarily, but for
financial
and economic reasons. They no longer could afford it, and the resources
and
wealth that it drained finally turned the people against its
authoritarian rule.
2002 Ron Paul 55:58
Maintaining an overseas empire is incompatible with the American tradition of
liberty and prosperity. The financial drain and the antagonism that it
causes
with our enemies, and even our friends, will finally force the American
people
to reject the policy outright. There will be no choice. Gorbachev just
walked
away and Yeltsin walked in, with barely a ripple. A non-violent
revolution of
unbelievable historic magnitude occurred and the Cold War ended. We are
not
immune from such a similar change.
2002 Ron Paul 55:59
This Soviet collapse ushered in the age of unparalleled American dominance
over the entire world, and along with it allowed the new expanded hot
war
between the West and the Muslim East. All the hostility directed toward
the West
built up over the centuries between the two factions is now directed
toward the
United States. We are now the only power capable of paying for and
literally
controlling the Middle East and its cherished wealth, and we have not
hesitated.
Iraq, with its oil and water and agricultural land, is a prime target
of our
desire to further expand our dominion. The battle is growing more tense
with
our acceptance and desire to control the Caspian Sea oil riches. But
Russia, now
licking its wounds and once again accumulating wealth, will not sit
idly by and
watch the American empire engulf this region. When time runs out for
us, we can
be sure Russia will once again be ready to fight for control of all
those
resources in countries adjacent to her borders. And expect the same for
China
and India. And who knows, maybe one day even Japan will return to the
ancient
art of using force to occupy the cherished territories in her region of
the
world.
2002 Ron Paul 55:60
The most we can hope for will be, once the errors of our ways are acknowledged and we can no longer afford our militarism, we will
reestablish the
moral principle that underpins the policy of peace,
commerce and honest friendship with all nations, entangling alliances
with none.
Our modern-day war hawks do not respect this American principle, nor do
they
understand how the love of liberty drove the founders in their great
battle
against tyranny.
2002 Ron Paul 55:61
We must prepare for the day when our financial bankruptcy and the failure of
our effort at world domination are apparent. The solution to such a
crisis can
be easily found in our Constitution and in our traditions. But
ultimately, the
love of liberty can only come from a change in the hearts and minds of
the
people and with an answered prayer for the blessings of divine
intervention.
2002 Ron Paul Chapter 56
http://www.house.gov/paul/congrec/congrec2002/cr091002.htm
Congressman Ron Paul
U.S. House of Representatives
September 10, 2002
QUESTIONS THAT WONT BE ASKED ABOUT IRAQ
2002 Ron Paul 56:1
Soon we hope to have hearings on the pending war with Iraq. I am concerned
there are some questions that won’t be asked- and maybe will not even
be
allowed to be asked. Here are some questions I would like
answered by
those who are urging us to start this war.
2002 Ron Paul 56:2
1. Is it not true that the reason we did not bomb the Soviet Union at the height of the Cold War was because we knew they
could
retaliate?
2002 Ron Paul 56:3
2. Is it not also true that we are willing to bomb Iraq now because we know it
cannot
retaliate- which just
confirms that there is
no real threat
?
2002 Ron Paul 56:4
3. Is it not true that those who argue that even
with
inspections we cannot be sure that Hussein might be hiding weapons, at
the same time imply that we can be more sure that weapons exist
in
the absence of
inspections?
2002 Ron Paul 56:5
4. Is it not true that the UN’s International Atomic Energy Agency was able to complete its yearly verification mission to
Iraq just this year with Iraqi cooperation?
2002 Ron Paul 56:6
5. Is it not true that the intelligence community has been unable to develop a case tying Iraq to global terrorism at all,
much less the attacks on the United States last year? Does anyone
remember that 15 of the 19 hijackers came from Saudi Arabia and that
none came from Iraq?
2002 Ron Paul 56:7
6. Was former CIA counter-terrorism chief Vincent Cannistraro wrong when he recently said there is no confirmed evidence
of Iraq’s links to terrorism?
2002 Ron Paul 56:8
7. Is it not true that the CIA has concluded there is no evidence that a Prague meeting between 9/11 hijacker Atta and Iraqi
intelligence took place?
2002 Ron Paul 56:9
8. Is it not true that northern Iraq, where the administration claimed al-Qaeda were hiding out, is in the control of
our allies, the Kurds?
2002 Ron Paul 56:10
9. Is it not true that the vast majority of al-Qaeda leaders who escaped appear to have safely made their way to Pakistan,
another of our so-called allies?
2002 Ron Paul 56:11
10. Has anyone noticed that Afghanistan is rapidly sinking into total chaos, with bombings and assassinations becoming
daily occurrences; and that according to a recent UN report the
al-Qaeda is, by all accounts, alive and well and poised to strike
again, how, when, and where it chooses?
2002 Ron Paul 56:12
11. Why are we taking precious military and intelligence resources away from tracking
down those who did attack the United States- and who may again attack
the United States- and using them to
invade countries that have not attacked the United States?
2002 Ron Paul 56:13
12. Would an attack on Iraq not just confirm the Arab worlds worst suspicions about the US, and isnt this what
bin Laden wanted?
2002 Ron Paul 56:14
13. How can Hussein be compared to Hitler when he has no navy or air force, and now has an
army 1/5 the size of twelve years ago, which even then proved totally
inept at defending the
country?
2002 Ron Paul 56:15
14. Is it not true that the constitutional power to declare war is exclusively that of the Congress? Should presidents,
contrary to the Constitution, allow Congress to concur only when
pressured by public opinion? Are presidents permitted to rely on the UN
for permission to go to war?
2002 Ron Paul 56:16
15. Are you aware of a Pentagon report studying charges that thousands of Kurds in one village were gassed by the
Iraqis, which found no conclusive evidence that Iraq was responsible,
that Iran occupied the very city involved, and that evidence indicated
the type of gas used was more likely controlled by Iran not Iraq?
2002 Ron Paul 56:17
16. Is it not true that anywhere between 100,000 and 300,000 US soldiers have suffered from Persian Gulf War syndrome from
the first Gulf War, and that thousands may have died?
2002 Ron Paul 56:18
17. Are we prepared for possibly thousands of American casualties in a war against a country that does not have the
capacity to attack the United States?
2002 Ron Paul 56:19
18. Are we willing to bear the economic burden of a 100 billion dollar war against Iraq, with oil prices expected to
skyrocket and further rattle an already shaky American economy? How
about an estimated 30 years occupation of Iraq that some have deemed
necessary to build democracy there?
2002 Ron Paul 56:20
19. Iraq’s alleged violations of UN resolutions are given as reason to initiate an attack, yet is it not true that hundreds
of UN Resolutions have been ignored by various countries without
penalty?
2002 Ron Paul 56:21
20. Did former President Bush not cite the UN Resolution of 1990 as the reason he could
not
march into
Baghdad, while supporters of a new attack assert that it is the very
reason we
can
march into Baghdad?
2002 Ron Paul 56:22
21. Is it not true that, contrary to current claims, the no-fly zones were set up by Britain and the United States without
specific approval from the United Nations?
2002 Ron Paul 56:23
22. If we claim membership in the international community and conform to its rules only when it pleases us, does this
not serve to undermine our position, directing animosity toward us by
both friend and foe?
2002 Ron Paul 56:24
23. How can our declared goal of bringing democracy to Iraq be believable when we prop
up dictators throughout the Middle East and support military tyrants
like Musharaf in Pakistan, who
overthrew a democratically-elected president?
2002 Ron Paul 56:25
24. Are you familiar with the 1994 Senate Hearings that revealed the U.S. knowingly supplied chemical and biological
materials to Iraq during the Iran-Iraq war and as late as 1992-
including
after
the alleged Iraqi gas attack on a Kurdish
village?
2002 Ron Paul 56:26
25. Did we not assist Saddam Hussein’s rise to power by supporting and encouraging his invasion of Iran? Is it honest to
criticize Saddam now for his invasion of Iran, which at the time we
actively supported?
2002 Ron Paul 56:27
26. Is it not true that preventive war is synonymous with an act of aggression, and has never been considered a moral or
legitimate US policy?
2002 Ron Paul 56:28
27. Why do the oil company executives strongly support this war if oil is not the real reason we plan to take over
Iraq?
2002 Ron Paul 56:29
28. Why is it that those who never wore a uniform and are confident that they won’t have to personally fight this war are
more anxious for this war than our generals?
2002 Ron Paul 56:30
29. What is the moral argument for attacking a nation that has not initiated aggression against us, and could not if it
wanted?
2002 Ron Paul 56:31
30. Where does the Constitution grant us permission to wage war for any reason other than self-defense?
2002 Ron Paul 56:32
31. Is it not true that a war against Iraq rejects the sentiments of the time-honored Treaty of Westphalia, nearly 400
years ago, that countries should never go into another for the purpose
of regime change?
2002 Ron Paul 56:33
32. Is it not true that the more civilized a society is, the less likely disagreements will be settled by war?
2002 Ron Paul 56:34
33. Is it not true that since World War II Congress has not declared war and- not coincidentally- we have not since then
had a clear-cut victory?
2002 Ron Paul 56:35
34. Is it not true that Pakistan, especially through its intelligence services, was an active supporter and key organizer of
the Taliban?
2002 Ron Paul 56:36
35. Why dont those who want war bring a formal declaration of war resolution to the
floor of Congress?
2002 Ron Paul Chapter 57
http://www.house.gov/paul/congrec/congrec2002/cr091002b.htm
Congressman Ron Paul
U.S. House of Representatives
September 10, 2002
ABOLISH THE FEDERAL RESERVE
2002 Ron Paul 57:1
Mr. Speaker, I rise to introduce legislation to restore financial stability to Americas
economy by abolishing the Federal Reserve. I also ask unanimous consent
to insert the attached article by Lew Rockwell, president of the Ludwig
Von Mises Institute, which explains the benefits of abolishing the Fed
and restoring the gold standard, into the
record.
2002 Ron Paul 57:2
Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy. In
addition, most Americans have suffered a steadily eroding purchasing
power because of the Federal Reserves inflationary policies. This
represents a real, if hidden, tax imposed on the American people.
2002 Ron Paul 57:3
From the Great Depression, to the stagflation of the seventies, to the burst of the dotcom bubble last year, every economic downturn suffered
by the country over the last 80 years can be traced to Federal Reserve
policy. The Fed has followed a consistent policy of flooding the
economy with easy money, leading to a misallocation of resources and an
artificial
boom followed by a recession or depression when the Fed-created
bubble bursts.
2002 Ron Paul 57:4
With a stable currency, American exporters will no longer be held hostage to an erratic monetary policy. Stabilizing the currency will
also give Americans new incentives to save as they will no longer have
to fear inflation eroding their savings. Those members concerned about
increasing Americas exports or the low rate of savings should be
enthusiastic supporters of this legislation.
2002 Ron Paul 57:5
Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in
monetary policy. The main beneficiaries are those who receive access to
artificially inflated money and/or credit before the inflationary
effects of the policy impact the entire economy. Federal Reserve
policies also benefit big spending politicians who use the inflated
currency created by the Fed to hide the true costs of the
welfare-warfare state. It is time for Congress
to put the interests of the American people ahead of the special
interests and their own appetite for big government.
2002 Ron Paul 57:6
Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States
Constitution grants to Congress the authority to coin money and
regulate the value of the currency. The Constitution does not give
Congress the authority to delegate control over monetary policy to a
central bank. Furthermore, the Constitution certainly does not empower
the federal government to erode the American standard of living via an
inflationary monetary policy.
2002 Ron Paul 57:7
In fact, Congress constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver
and gold to be used as legal tender. Therefore, abolishing the Federal
Reserve and returning to a constitutional system will enable America to
return to the type of monetary system envisioned by our
nations founders: one where the value of money is consistent because
it is tied to a commodity such as
gold. Such a monetary system is the basis of a true free-market
economy.
2002 Ron Paul 57:8
In conclusion, Mr. Speaker, I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money
supply which erodes Americans standard of living, enlarges big
government, and enriches well-connected elites, by cosponsoring my
legislation to abolish the Federal Reserve.
2002 Ron Paul 57:9
WHY GOLD?
By Llewellyn H. Rockwell, Jr.
2002 Ron Paul 57:10
As with all matters of investment, everything is clear in hindsight. Had you bought gold mutual funds earlier this year, they might have
appreciated more than 100 percent. Gold has risen $60 since March 2001
to the latest spot price of $326.
2002 Ron Paul 57:11
Why wasnt it obvious? The Fed has been inflating the dollar as never before, driving interest rates down to absurdly low levels, even as the
federal government has been pushing a mercantile trade policy, and New
York City, the hub of the world economy, continues to be threatened by
terrorism. The government is failing to prevent more successful attacks
by not backing down from foreign policy disasters and by not allowing
planes to arm
themselves. These are all conditions that make gold particularly
attractive.
2002 Ron Paul 57:12
Or perhaps it is not so obvious why this is true. Its been three decades since the dollars tie to gold was completely severed, to the
hosannas of mainstream economists. There is no stash of gold held by
the Fed or the Treasury that backs our currency system. The government
owns gold but not as a monetary asset. It owns it the same way it owns
national parks and fighter planes. Its just another asset the
government keeps to itself.
2002 Ron Paul 57:13
The dollar, and all our money, is nothing more and nothing less than what it looks like: a cut piece of linen paper with fancy printing on
it. You can exchange it for other currency at a fixed rate and for any
good or service at a flexible rate. But there is no established
exchange rate between the dollar and gold, either at home or
internationally.
2002 Ron Paul 57:14
The supply of money is not limited by the amount of gold. Gold is just another good for which the dollar can be exchanged, and in that sense
is legally no different from a gallon of milk, a tank of gas, or an
hour of babysitting services.
2002 Ron Paul 57:15
Why, then, do people turn to gold in times like these? What is gold used for? Yes, there are industrial uses and there are consumer uses in
jewelry and the like. But recessions and inflations dont cause people
to want to wear more jewelry or stock up on industrial metal. The
investor demand ultimately reflects consumer demand for gold. But that
still leaves us with the question of why the consumer demand exists in
the first place. Why gold and not sugar or wheat or something else?
2002 Ron Paul 57:16
There is no getting away from it: investor markets have memories of the days when gold was money. In fact, in the whole history of
civilization, gold has served as the basic money of all people wherever
its been available. Other precious metals have been valued and coined,
but gold always emerged on top in the great competition for what
constitutes the most valuable commodity of all.
2002 Ron Paul 57:17
There is nothing intrinsic about gold that makes it money. It has certain properties that lend itself to monetary use, like portability,
divisibility, scarcity, durability, and uniformity. But these are just
descriptors of certain qualities of the metal, not explanations as to
why it became money. Gold became money for only one reason: because
thats what the markets chose.
2002 Ron Paul 57:18
Why isnt gold money now? Because governments destroyed the gold standard. Why? Because they regarded it as too inflexible. To be sure,
monetary inflexibility is the friend of free markets. Without the
ability to create money out of nothing, governments tend to run tight
financial ships. Banks are more careful about the lending when they
cant rely on a lender of last resort with access to a money-creation
machine like the Fed.
2002 Ron Paul 57:19
A fixed money stock means that overall prices are generally more stable. The problems of inflation and business cycles disappear
entirely. Under the gold standard, in fact, increased market
productivity causes prices to generally decline over time as the
purchasing power of money increases.
2002 Ron Paul 57:20
In 1967, Alan Greenspan once wrote an article called Gold and Economic Freedom. He wrote that:
2002 Ron Paul 57:21
An almost hysterical antagonism toward the gold standard is one issue
which unites statists of all persuasions. They seem to sense — perhaps
more clearly and subtly than many consistent defenders of
laissez-faire — that gold and economic freedom are inseparable, that the
gold standard is an instrument of laissez-faire and that each implies
and requires the other. . . . This is the shabby secret of the welfare
statists tirades against gold. Deficit spending is simply a scheme for
the confiscation
of wealth. Gold stands in the way of this insidious process. It stands
as a protector of property
rights.
2002 Ron Paul 57:22
He was right. Gold and freedom go together. Gold money is both the result of freedom and its leading protector. When money is as good as
gold, the government cannot manipulate the supply for its own purposes.
Just as the rule of law puts limits on the despotic use of police
power, a gold standard puts extreme limits on the governments ability
to spend, borrow, and otherwise create crazy unworkable programs. It is
forced to raise its revenue through taxation, not inflation, and
generally keep
its house in order.
2002 Ron Paul 57:23
Without the gold standard, government is free to work with the Fed to inflate the currency without limit. Even in our own times, weve seen
governments do that and thereby spread mass misery.
2002 Ron Paul 57:24
Now, all governments are stupid but not all are so stupid as to pull stunts like this. Most of the time, governments are pleased to inflate
their currencies so long as they dont have to pay the price in the
form of mass bankruptcies, falling exchange rates, and inflation.
2002 Ron Paul 57:25
In the real world, of course, there is a lag time between cause and effect. The Fed has been inflating the currency at very high levels for
longer than a year. The consequences of this disastrous policy are
showing up only recently in the form of a falling dollar and higher
gold prices. And so what does the Fed do? It is pulling back now. For
the first time in nearly ten years, some measures of money (M2 and MZM)
are showing a falling money stock, which is likely to prompt a second
dip in the
continuing recession.
2002 Ron Paul 57:26
Greenspan now finds himself on the horns of a very serious dilemma. If he continues to pull back on money, the economy could tip into a
serious recession. This is especially a danger given rising
protectionism, which mirrors the events of the early 1930s. On the
other hand, a continuation of the loose policy he has pursued for a
year endangers the value of the dollar overseas.
2002 Ron Paul 57:27
How much easier matters were when we didnt have to rely on the wisdom of exalted monetary central planners like Greenspan. Under the gold
standard, the supply of money regulated itself. The government kept
within limits. Banks were more cautious. Savings were high because
credit was tight and saving was rewarded. This approach to economics is
the foundation of a sustainable prosperity.
2002 Ron Paul 57:28
We dont have that system now for the country or the world, but individuals are showing their preferences once again. By driving up the
price of gold, prompting gold producers to become profitable again, the
people are expressing their lack of confidence in their leaders. They
have decided to protect themselves and not trust the state. That is the
hidden message behind the new luster of gold.
2002 Ron Paul 57:29
Is a gold standard feasible again? Of course. The dollar could be redefined in terms of gold. Interest rates would reflect the real
supply and demand for credit. We could shut down the Fed and we would
never need to worry again what the chairman of the Fed wanted. There
was a time when Greenspan was nostalgic for such a system. Investors of
the world have come to embrace this view even as Greenspan has
completely abandoned it.
2002 Ron Paul 57:30
What keeps the gold standard from becoming a reality again is the love of big government and war. If we ever fall in love with freedom again,
the gold standard will once more become a hot issue in public debate.
2002 Ron Paul Chapter 58
http://www.house.gov/paul/congrec/congrec2002/cr091802.htm
Congressman Ron Paul
U.S. House of Representatives
September 18, 2002
War is a Political Mistake
2002 Ron Paul 58:1
Mr. Speaker, I have for years advocated a moral and constitutional approach to our foreign
policy. This has been done in the sincerest belief that a policy
of peace, trade, and friendship with all nations is far superior in all
respects to a policy of war, protectionism, and confrontation. But in
the Congress I find, with regards to foreign affairs, no
interest in following the precepts of the Constitution and the advice
of our early Presidents.
2002 Ron Paul 58:2
Interventionism, internationalism, inflationism, protectionism, jingoism, and bellicosity are much more popular in our
nations capital than a policy of restraint.
2002 Ron Paul 58:3
I have heard all the arguments on why we must immediately invade and occupy Iraq and have observed that there are only a
few hardy souls left in the Congress who are trying to stop this
needless, senseless, and dangerous war. They have adequately
refuted every one of the excuses for this war of aggression; but,
obviously, either no one listens, or the unspoken motives for
this invasion silence those tempted to dissent.
2002 Ron Paul 58:4
But the tragic and most irresponsible excuse for the war rhetoric is now emerging in the political discourse. We now hear
rumblings that the vote is all about politics, the November elections,
and the control of the U.S. Congress, that is, the main
concern is political power. Can one imagine delaying the
declaration
of war against Japan after Pearl Harbor for political reasons? Or can
one imagine
forcing a vote on the issue of war before an election for political
gain? Can anyone believe there are those who would foment
war rhetoric for political gain at the expense of those who are called
to fight and might even die if the war does not go as
planned?
2002 Ron Paul 58:5
I do not want to believe it is possible, but rumors are rampant that looking weak on the war issue is considered to be
unpatriotic and a risky political position to take before the November
elections. Taking pleasure in the fact that this might place
many politicians in a difficult position is a sobering thought
indeed.
2002 Ron Paul 58:6
There is a bit of irony over all of this political posturing on a vote to condone a war of aggression and force some Members
into a tough vote. Guess what, contrary to conventional wisdom, war is
never politically beneficial to the politicians who
promote it. Presidents Wilson and Roosevelt were reelected by
promising to stay out of war. Remember, the party in power during the
Korean War was routed in 1952 by a general who promised to stop the
bloodshed. Vietnam, which started with overwhelming
support and hype and jingoistic fervor, ended President Johnsons
political career in disgrace and humiliation. The most
significant plight on the short term of President Kennedy was his
effort at regime change in Cuba and the fate he met at the Bay
of Pigs. Even Persian Gulf War I, thought at the time to be a
tremendous victory, with its aftermath still lingering, did not serve
President Bush, Sr.s reelection efforts in 1992.
2002 Ron Paul 58:7
War is not politically beneficial for two reasons: innocent people die, and the economy is always damaged. These two things,
after the dust settles from the hype and the propaganda, always make
the people unhappy. The euphoria associated with the
dreams of grandiose and painless victories is replaced by the stark
reality of death, destruction, and economic pain. Instead of
euphoria, we end up with heartache as we did after the Bay of Pigs,
Korea, Vietnam, Somalia, and Lebanon.
2002 Ron Paul 58:8
Since no one wants to hear anymore of morality and constitutionality and justice, possibly some will listen to the
politics of
war, since that is what drives so many. A token victory at the polls
this fall by using a vote on the war as a lever will be to little
avail. It may not even work in the short run. Surely, history shows
that war is never a winner, especially when the people who
have to pay, fight, and die for it come to realize that the war was not
even necessary and had nothing to do with national
security or fighting for freedom, but was promoted by special interests
who stood to gain from taking over a sovereign country.
2002 Ron Paul 58:9
Mr. Speaker, peace is always superior to war; it is also a political winner.
2002 Ron Paul Chapter 59
http://www.house.gov/paul/congrec/congrec2002/cr092402.htm
Congressman Ron Paul
U.S. House of Representatives
September 24, 2002
Can We Afford this War?
2002 Ron Paul 59:1
Mr. Speaker, a casual analysis of the world economy shows it rapidly
deteriorating into recession, with a possible depression on the
horizon.
Unemployment is sharply rising with price inflation rampant, despite
official
government inflationary reports. The worlds stock markets continue to
collapse,
even after trillions of dollars in losses have been recorded in the
past 2
years. These losses already have set historic records.
2002 Ron Paul 59:2
With government revenues shrinking at all levels, we find deficits exploding.
Our national debt is currently rising at a $450 billion per year.
Confidence in
corporate America has shrunk to levels usually reserved for governments
alone.
2002 Ron Paul 59:3
Government spending in all areas is skyrocketing, much of it out of the
control of the politicians, who show little concern. Yet we are
expected to
believe our government leaders who say that we are experiencing a
recovery and
that a return to grand prosperity is just around the corner. The
absence of
capital formation, savings, and corporate profits are totally ignored.
2002 Ron Paul 59:4
Evidence abounds that our $350 billion DOD budget and the $40 billion spent
on intelligence gathering and our immigration policies have failed
miserably in
protecting our homeland. In spite of the rhetoric and new legislation
attacking
our civil liberties, we are as vulnerable to outside attack as before.
2002 Ron Paul 59:5
Our military is drastically smaller than a decade ago, and we are spread
around the world and involved in world conflicts more than we have ever
been
before.
2002 Ron Paul 59:6
We have run a huge current account deficit for 15 years and massively
expanded our money supply. No one should be surprised that the dollar
is
weakening and the commodity, natural resources, and precious metal
prices are
rising.
2002 Ron Paul 59:7
Oil prices are over $31 a barrel, and predictions are that they can easily go
up another $15 to $20 if international tensions grow.
2002 Ron Paul 59:8
But the only talk here in the nations capitol is about when, not if, we must
initiate a war that even the administration admits could cost $200
billion. Some
are not even embarrassed to gloat about the political benefits for
those who
preach war over those who prefer negotiations, diplomacy and
containment. The
fact that the Arab nations are overwhelmingly opposed to an attack on
Iraq and
are joined by the European Community is of no concern to those who
demand war
regardless of any circumstance.
2002 Ron Paul 59:9
Eighty percent of the American people now report that they believe that a war
with Iraq will increase the chances of our suffering from a new
terrorist
attack. If this is true, we become less secure with an attack on Iraq,
since
little has been done to correct the deficiencies in the intelligence
gathering
agencies and our immigration policies.
2002 Ron Paul 59:10
No credible evidence has been produced that Iraq has or is close to having
nuclear weapons. No evidence exists to show that Iraq harbors al Qaeda
terrorists. Quite to the contrary, experts on this region recognize
Hussein as
an enemy of the al Qaeda and a foe to Islamic fundamentalism. Many
other nations
pose much greater threats to world peace. Yet no one is clamoring for
war
against them. Saddam Hussein is now weaker than ever.
2002 Ron Paul 59:11
Reports are now appearing that we are negotiating with allies to share in the
oil bounty once Iraq is occupied in order to get support for our
invasion from
various countries around the world.
2002 Ron Paul 59:12
Our national debt is over $6 trillion and is increasing by nearly half a
trillion dollars a year. Since Social Security funds are all placed in
the
general revenues and spent and all funds are fungible, honest
accounting, of
which there has been a shortage lately, dictates that a $200 billion
war must
jeopardize Social Security funding. This is something the American
people
deserve to know.
2002 Ron Paul 59:13
Since there are limits to borrowing and taxing, but no limits to the Fed
printing money to cover our deficit, we can be assured this will occur.
This
guarantees that Social Security checks will never stop coming, but it
also
guarantees that the dollars that all retired people receive will buy
less. We
have already seen this happening in providing medical services. A cheap
dollar;
that is, an inflated dollar, is a sinister and deceitful way of cutting
benefits.
2002 Ron Paul 59:14
Rest assured, a $200 billion hit on the economy will have economic consequences, and the elderly retirees on fixed incomes, and especially
Social
Security beneficiaries, will suffer the greatest burden of policy,
reflecting a
belief that our country is so rich that it can afford both guns and
butter.
Remember, we have tried that before.
2002 Ron Paul 59:15
The tragedy is that once the flaw in policy is discovered, it is too late to
prevent the pain and suffering, and only finger pointing occurs. Now is
the only
time we can give serious attention to the true cost of assuming the
burden of an
endless task of being the worlds policeman and starting wars that have
nothing
to do with defense or national security.
2002 Ron Paul 59:16
A nation suffering from recession can ill afford a foreign policy that
encourages unnecessary military action that will run up huge deficits.
Congress
ought to pause a moment, and carefully contemplate the consequences of
the
decisions we are about to make in the coming days.
2002 Ron Paul Chapter 60
http://www.house.gov/paul/congrec/congrec2002/cr092602.htm
Congressman Ron Paul
U.S. House of Representatives
September 26, 2002
Statement on Medical Malpractice Legislation
2002 Ron Paul 60:1
Mr. Speaker, as an OB-GYN with over
30 years in
private practice, I understand better than perhaps any other member of
Congress
the burden imposed on both medical practitioners and patients by
excessive
malpractice judgments and the corresponding explosion in malpractice
insurance
premiums. Malpractice insurance has skyrocketed to the point where
doctors are
unable to practice in some areas or see certain types of patients
because they
cannot afford the insurance premiums. This crisis has particularly hit
my area
of practice, leaving some pregnant woman unable to find a qualified
obstetrician
in their city. Therefore, I am pleased to see Congress address this
problem.
2002 Ron Paul 60:2
However this bill raises several
question of
constitutionality, as well as whether it treats those victimized by
large
corporations and medical devices fairly. In addition, it places
de
facto
price
controls on the amounts injured parties can receive in a lawsuit and
rewrites
every contingency fee contract in the country. Yet, among all the new
assumptions of federal power, this bill does nothing to address the
power of
insurance companies over the medical profession. Thus, even if the
reforms of HR
4600 become law, there will be nothing to stop the insurance companies
from
continuing to charge exorbitant rates.
2002 Ron Paul 60:3
Of course, I am not suggesting
Congress place
price controls on the insurance industry, Instead, Congress should
reexamine
those federal laws such as ERISA and the HMO Act of 1973, which have
allowed
insurers to achieve such a prominent role in the medical profession. As
I will
detail below, Congress should also take steps to encourage contractual
means of
resolving malpractice disputes. Such an approach may not be beneficial
to the
insurance companies or the trial lawyers, but will certainly benefit
the
patients and physicians which both sides in this debate claim to
represent.
2002 Ron Paul 60:4
HR 4600 does contain some positive
elements. For
example, the language limiting joint and several liability to the
percentage of
damage someone actually caused, is a reform I have long championed.
However, Mr.
Speaker, HR 4600 exceeds Congress’ constitutional authority by
preempting
state law. Congressional dissatisfaction with the malpractice laws in
some
states provides no justification for Congress to impose uniform
standards on all
50 states. The 10th amendment does not authorize federal action in
areas
otherwise reserved to the states simply because some members of
Congress are
unhappy with the way the states have handled the problem. Furthermore,
Mr.
Speaker, by imposing uniform laws on the states, Congress is preventing
the
states from creating innovative solutions to the malpractice problems.
2002 Ron Paul 60:5
The current governor of my own state
of Texas
has introduced a far reaching medical litigation reform plan that the
Texas
state legislature will consider in January. However, if HR 4600 becomes
law,
Texans will be deprived of the opportunity to address the malpractice
crisis in
the way that meets their needs. Ironically, HR 4600 actually increases
the risk
of frivolous litigation in Texas by lengthening the statue of
limitations and
changing the definition of comparative negligence!
2002 Ron Paul 60:6
I am also disturbed by the language
that limits
liability for those harmed by FDA-approved products. This language, in
effect,
establishes FDA approval as the gold standard for measuring the safety
and
soundness of medical devices. However, if FDA approval guaranteed
safety, then
the FDA would not regularly issue recalls of approved products later
found to
endanger human health and/or safety.
2002 Ron Paul 60:7
Mr. Speaker, HR 4600 also punishes
victims of
government mandates by limiting the ability of those who have suffered
adverse
reactions from vaccines to collect damages. Many of those affected by
these
provisions are children forced by federal mandates to receive vaccines.
Oftentimes, parents reluctantly submit to these mandates in order to
ensure
their children can attend public school. HR 4600 rubs salt in the
wounds of
those parents whose children may have been harmed by government
policies forcing
children to receive unsafe vaccines.
2002 Ron Paul 60:8
Rather than further expanding
unconstitutional
mandates and harming those with a legitimate claim to collect
compensation,
Congress should be looking for ways to encourage physicians and
patients to
resolve questions of liability via private, binding contracts. The root
cause of
the malpractice crisis (and all of the problems with the health care
system) is
the shift away from treating the doctor-patient relationship as a
contractual
one to viewing it as one governed by regulations imposed by insurance
company
functionaries, politicians, government bureaucrats, and trial lawyers.
There is
no reason why questions of the assessment of liability and compensation
cannot
be determined by a private contractual agreement between physicians and
patients.
2002 Ron Paul 60:9
I am working on legislation to
provide tax
incentives to individuals who agree to purchase malpractice insurance,
which
will automatically provide coverage for any injuries sustained in
treatment.
This will insure that those harmed by spiraling medical errors receive
timely
and full compensation. My plan spares both patients and doctors the
costs of a
lengthy, drawn-out trial and respects Congress’ constitutional
limitations.
2002 Ron Paul 60:10
Congress could also help physicians
lower
insurance rates by passing legislation that removes the antitrust
restrictions
preventing physicians from forming professional organizations for the
purpose of
negotiating contracts with insurance companies and HMOs. These laws
give
insurance companies and HMOs, who are often protected from excessive
malpractice
claims by ERISA, the ability to force doctors to sign contracts
exposing them to
excessive insurance premiums and limiting their exercise of
professional
judgment. The lack of a level playing field also enables insurance
companies to
raise premiums at will. In fact, it seems odd that malpractice premiums
have
skyrocketed at a time when insurance companies need to find other
sources of
revenue to compensate for their recent losses in the stock market.
2002 Ron Paul 60:11
In conclusion, Mr. Speaker, while I
support the
efforts of the sponsors of HR 4600 to address the crisis in health care
caused
by excessive malpractice litigation and insurance premiums, I cannot
support
this bill. HR 4600 exceeds Congress’ constitutional limitations and
denies
full compensation to those harmed by the unintentional effects of
federal
vaccine mandates. Instead of furthering unconstitutional authority, my
colleagues should focus on addressing the root causes of the
malpractice crisis
by supporting efforts to restore the primacy of contract to the
doctor-patient
relationships.
2002 Ron Paul Chapter 61
http://www.house.gov/paul/congrec/congrec2002/cr100202.htm
Congressman Ron Paul
U.S. House of Representatives
October 2, 2002
Introduction of the Television Consumer Freedom Act
2002 Ron Paul 61:1
Mr. Speaker, I rise to introduce the Television Consumer Freedom Act, legislation repealing regulations that interfere with a consumers’
ability to
avail themselves of desired television programming.
2002 Ron Paul 61:2
My office has received numerous calls from rural satellite and cable TV
customers who are upset because their satellite or cable service
providers have
informed them that they will lose access to certain network television
programs
and/or cable networks. The reason my constituents cannot obtain their
desired
satellite and cable services is that the satellite and cable
marketplace is fraught with government interventionism at every
level. Cable companies have historically been granted franchises of
monopoly
privilege at the local level. Government has previously intervened to
invalidate
exclusive dealings contracts between private parties, namely cable
service providers and program creators, and has most recently assumed
the role
of price setter. The Library of Congress has even been delegated the
power to
determine prices at which program suppliers must make their programs
available
to cable and satellite programming service providers.
2002 Ron Paul 61:3
It is, of course, within the constitutionally enumerated powers of Congress
to promote the progress of science and useful arts by securing for
limited
times to authors and inventors the exclusive right to their respective
writings
and discoveries. However, operating a clearing-house for the
subsequent
transfer of such property rights in the name of setting a just price or
instilling competition via central planning seems not to
be an economically prudent nor justifiable action under this enumerated
power.
This process is one best reserved to the competitive marketplace.
2002 Ron Paul 61:4
Governments attempt to set the just price for satellite programming outside
the market mechanism is inherently impossible. This has resulted in
competition
among service providers for government privilege rather than the
consumer
benefits inherent to the genuine free market. Currently, while federal
regulation does leave satellite programming service providers free to
bypass the
governmental royalty distribution scheme and negotiate directly with
owners of
programming for program rights, there is a federal prohibition on
satellite
service providers making local network affiliates’ programs available
to
nearby satellite subscribers. This bill repeals that federal
prohibition and
allows satellite service providers to more freely negotiate with
program owners
for programming desired by satellite service subscribers. Technology is
now
available by which viewers will be able to view network programs via
satellite
as presented by their nearest network affiliate. This market-generated
technology will remove a major stumbling block to negotiations that
should
currently be taking place between network program owners and satellite
service
providers.
2002 Ron Paul 61:5
This bill also repeals federal laws that force cable companies to carry
certain programs. These federal must carry mandates deny cable
companies the ability to provide the programming desired by their
customers.
Decisions about what programming to carry on a cable system should be
made by
consumers, not federal bureaucrats.
2002 Ron Paul 61:6
Mr. Speaker, the federal government should not interfere with a consumers
ability to purchase services such as satellite or cable television in
the free
market. I therefore urge my colleagues to take a step toward restoring
freedom
by cosponsoring my Television Consumer Freedom Act.
2002 Ron Paul Chapter 62
http://www.house.gov/paul/congrec/congrec2002/cr100302.htm
Congressman Ron Paul
U.S. House of Representatives
October 3, 2002
Is Congress Relevant with Regards to War?
2002 Ron Paul 62:1
The last time Congress declared war was on December 11, 1941, against Germany
in response to its formal declaration of war against the United States.
This was
accomplished with wording that took less than one-third of a page,
without any
nitpicking arguments over precise language, yet it was a clear
declaration of
who the enemy was and what had to be done. And in three-and-a-half
years, this
was accomplished. A similar resolve came from the declaration of war
against
Japan three days earlier. Likewise, a clear-cut victory was achieved
against
Japan.
2002 Ron Paul 62:2
Many Americans have been forced into war since that time on numerous
occasions, with no congressional declaration of war and with
essentially no
victories. Today’s world political condition is as chaotic as ever.
We’re
still in Korea and we’re still fighting the Persian Gulf War that
started in
1990.
2002 Ron Paul 62:3
The process by which we’ve entered wars over the past 57 years, and the
inconclusive results of each war since that time, are obviously related
to
Congress’ abdication of its responsibility regarding war, given to it
by
Article I Section 8 of the Constitution.
2002 Ron Paul 62:4
Congress has either ignored its responsibility entirely over these years, or
transferred the war power to the executive branch by a near majority
vote of its
Members, without consideration of it by the states as an amendment
required by
the Constitution.
2002 Ron Paul 62:5
Congress is about to circumvent the Constitution and avoid the tough decision
of whether war should be declared by transferring this monumental
decision-making power regarding war to the President. Once again, the
process is
being abused. Odds are, since a clear-cut decision and commitment by
the people
through their representatives are not being made, the results will be
as murky
as before. We will be required to follow the confusing dictates of the
UN, since
that is where the ultimate authority to invade Iraq is coming from-
rather than
from the American people and the U.S. Constitution.
2002 Ron Paul 62:6
Controversial language is being hotly debated in an effort to satisfy
political constituencies and for Congress to avoid responsibility of
whether to
go to war. So far the proposed resolution never mentions war, only
empowering
the President to use force at his will to bring about peace. Rather
strange
language indeed!
2002 Ron Paul 62:7
A declaration of war limits the presidential powers, narrows the focus, and
implies a precise end point to the conflict. A declaration of war makes
Congress
assume the responsibilities directed by the Constitution for this very
important
decision, rather than assume that if the major decision is left to the
President
and a poor result occurs, it will be his fault, not that of Congress.
Hiding
behind the transfer of the war power to the executive through the War
Powers
Resolution of 1973 will hardly suffice.
2002 Ron Paul 62:8
However, the modern way we go to war is even more complex and deceptive. We
must also write language that satisfies the UN and all our allies.
Congress
gladly transfers the legislative prerogatives to declare war to the
President,
and the legislative and the executive branch both acquiesce in
transferring our
sovereign rights to the UN, an un-elected international government. No
wonder
the language of the resolution grows in length and incorporates
justification
for starting this war by citing UN Resolutions.
2002 Ron Paul 62:9
In order to get more of what we want from the United Nations, we rejoined
UNESCO, which Ronald Reagan had bravely gotten us out of, and promised
millions
of dollars of U.S. taxpayer support to run this international agency
started by
Sir Julian Huxley. In addition, we read of promises by our
administration that
once we control Iraqi oil, it will be available for allies like France
and
Russia, who have been reluctant to join our efforts.
2002 Ron Paul 62:10
What a difference from the days when a declaration of war was clean and
precise and accomplished by a responsible Congress and an informed
people!
2002 Ron Paul 62:11
A great irony of all this is that the United Nations Charter doesn’t permit
declaring war, especially against a nation that has been in a state of
peace for
12 years. The UN can only declare peace. Remember, it wasn’t a war in
Korea;
it was only a police action to bring about peace. But at least in Korea
and
Vietnam there was fighting going on, so it was a bit easier to stretch
the
language than it is today regarding Iraq. Since Iraq doesn’t even have
an Air
Force or a Navy, is incapable of waging a war, and remains defenseless
against
the overwhelming powers of the United States and the British, it’s
difficult
to claim that we’re going into Iraq to restore peace.
2002 Ron Paul 62:12
History will eventually show that if we launch this attack the real victims
will be the innocent Iraqi civilians who despise Saddam Hussein and are
terrified of the coming bombs that will destroy their cities.
2002 Ron Paul 62:13
The greatest beneficiaries of the attack may well be Osama bin Ladin and the
al Qaeda. Some in the media have already suggested that the al Qaeda
may be
encouraging the whole event. Unintended consequences will occur- what
will come
from this attack is still entirely unknown.
2002 Ron Paul 62:14
It’s a well-known fact that the al Qaeda are not allies of Saddam Hussein
and despise the secularization and partial westernization of Iraqi
culture. They
would welcome the chaos that’s about to come. This will give them a
chance to
influence post-Saddam Hussein Iraq. The attack, many believe, will
confirm to
the Arab world that indeed the Christian West has once again attacked
the Muslim
East, providing radical fundamentalists a tremendous boost for
recruitment.
2002 Ron Paul 62:15
An up or down vote on declaring war against Iraq would not pass the Congress,
and the President has no intention of asking for it. This is
unfortunate,
because if the process were carried out in a constitutional fashion,
the
American people and the U.S. Congress would vote No on assuming
responsibility for this war.
2002 Ron Paul 62:16
Transferring authority to wage war, calling it permission to use force to
fight for peace in order to satisfy the UN Charter, which replaces the
Article
I, Section 8 war power provision, is about as close to 1984 newspeak
that we will ever get in the real world.
2002 Ron Paul 62:17
Not only is it sad that we have gone so far astray from our Constitution, but
it’s also dangerous for world peace and threatens our liberties here at
home.
2002 Ron Paul Chapter 63
http://www.house.gov/paul/congrec/congrec2002/cr100802.htm
Congressman Ron Paul
U.S. House of Representatives
October 8, 2002
Statement Opposing the use of Military Force against Iraq
2002 Ron Paul 63:1
Madam Speaker, I rise in opposition
to this
resolution. The wisdom of the war is one issue, but the process and the
philosophy behind our foreign policy are important issues as well. But
I have
come to the conclusion that I see no threat to our national security.
There is
no convincing evidence that Iraq is capable of threatening the security
of this
country, and, therefore, very little reason, if any, to pursue a war.
2002 Ron Paul 63:2
But I am very interested also in the
process
that we are pursuing. This is not a resolution to declare war. We know
that.
This is a resolution that does something much different. This
resolution
transfers the responsibility, the authority, and the power of the
Congress to
the President so he can declare war when and if he wants to. He has not
even
indicated that he wants to go to war or has to go to war; but he will
make the
full decision, not the Congress, not the people through the Congress of
this
country in that manner.
2002 Ron Paul 63:3
It does something else, though.
One-half of the
resolution delivers this power to the President, but it also instructs
him to
enforce U.N. resolutions. I happen to think I would rather listen to
the
President when he talks about unilateralism and national security
interests,
than accept this responsibility to follow all of the rules and the
dictates of
the United Nations. That is what this resolution does. It instructs him
to
follow all of the resolutions.
2002 Ron Paul 63:4
But an important aspect of the
philosophy and
the policy we are endorsing here is the preemption doctrine. This
should not be
passed off lightly. It has been done to some degree in the past, but
never been
put into law that we will preemptively strike another nation that has
not
attacked us. No matter what the arguments may be, this policy is new;
and it
will have ramifications for our future, and it will have ramifications
for the
future of the world because other countries will adopt this same
philosophy.
2002 Ron Paul 63:5
I also want to mention very briefly
something
that has essentially never been brought up. For more than a thousand
years there
has been a doctrine and Christian definition of what a just war is all
about. I
think this effort and this plan to go to war comes up short of that
doctrine.
First, it says that there has to be an act of aggression; and there has
not been
an act of aggression against the United States. We are 6,000 miles from
their
shores.
2002 Ron Paul 63:6
Also, it says that all efforts at
negotiations
must be exhausted. I do not believe that is the case. It seems to me
like the
opposition, the enemy, right now is begging for more negotiations.
2002 Ron Paul 63:7
Also, the Christian doctrine says
that the
proper authority must be responsible for initiating the war. I do not
believe
that proper authority can be transferred to the President nor to the
United
Nations.
2002 Ron Paul 63:8
But a very practical reason why I
have a great
deal of reservations has to do with the issue of no-win wars that we
have been
involved in for so long. Once we give up our responsibilities from here
in the
House and the Senate to make these decisions, it seems that we depend
on the
United Nations for our instructions; and that is why, as a Member
earlier
indicated, essentially we are already at war. That is correct. We are
still in
the Persian Gulf War. We have been bombing for 12 years, and the reason
President Bush, Sr., did not go all the way? He said the U.N. did not
give him
permission to.
2002 Ron Paul 63:9
My argument is when we go to war
through the
back door, we are more likely to have the wars last longer and not have
resolution of the wars, such as we had in Korea and Vietnam. We ought
to
consider this very seriously.
2002 Ron Paul 63:10
Also it is said we are wrong about
the act of
aggression, there has been an act of aggression against us because
Saddam
Hussein has shot at our airplanes. The fact that he has missed every
single
airplane for 12 years, and tens of thousands of sorties have been
flown,
indicates the strength of our enemy, an impoverished, Third World
nation that
does not have an air force, anti-aircraft weapons, or a navy.
2002 Ron Paul 63:11
But the indication is because he shot
at us,
therefore, it is an act of aggression. However, what is cited as the
reason for
us flying over the no-fly zone comes from U.N. Resolution 688, which
instructs
us and all the nations to contribute to humanitarian relief in the
Kurdish and
the Shiite areas. It says nothing about no-fly zones, and it says
nothing about
bombing missions over Iraq.
2002 Ron Paul 63:12
So to declare that we have been
attacked, I do
not believe for a minute that this fulfills the requirement that we are
retaliating against aggression by this country. There is a need for us
to assume
responsibility for the declaration of war, and also to prepare the
American
people for the taxes that will be raised and the possibility of a
military draft
which may well come.
2002 Ron Paul 63:13
I must oppose this resolution, which
regardless
of what many have tried to claim will lead us into war with Iraq. This
resolution is not a declaration of war, however, and that is an
important point:
this resolution transfers the Constitutionally-mandated Congressional
authority
to declare wars to the executive branch. This resolution tells the
president
that he alone has the authority to determine when, where, why, and how
war will
be declared. It merely asks the president to pay us a courtesy call a
couple of
days after the bombing starts to let us know what is going on. This is
exactly
what our Founding Fathers cautioned against when crafting our form of
government: most had just left behind a monarchy where the power to
declare war
rested in one individual. It is this they most wished to avoid.
2002 Ron Paul 63:14
As James Madison wrote in 1798, The
Constitution supposes what the history of all governments demonstrates,
that the
executive is the branch of power most interested in war, and most prone
to it.
It has, accordingly, with studied care, vested the question of war in
the
legislature.
2002 Ron Paul 63:15
Some- even some in this body- have
claimed that
this Constitutional requirement is an anachronism, and that those who
insist on
following the founding legal document of this country are just being
frivolous.
I could not disagree more.
2002 Ron Paul 63:16
Mr. Speaker, for the more than one
dozen years I
have spent as a federal legislator I have taken a particular interest
in foreign
affairs and especially the politics of the Middle East. From my seat on
the
international relations committee I have had the opportunity to review
dozens of
documents and to sit through numerous hearings and mark-up sessions
regarding
the issues of both Iraq and international terrorism.
2002 Ron Paul 63:17
Back in 1997 and 1998 I publicly
spoke out
against the actions of the Clinton Administration, which I believed was
moving
us once again toward war with Iraq. I believe the genesis of our
current policy
was unfortunately being set at that time. Indeed, many of the same
voices who
then demanded that the Clinton Administration attack Iraq are now
demanding that
the Bush Administration attack Iraq. It is unfortunate that these
individuals
are using the tragedy of September 11, 2001 as cover to force their
long-standing desire to see an American invasion of Iraq. Despite all
of the
information to which I have access, I remain very skeptical that the
nation of
Iraq poses a serious and immanent terrorist threat to the United
States. If I
were convinced of such a threat I would support going to war, as I did
when I
supported President Bush by voting to give him both the authority and
the
necessary funding to fight the war on terror.
2002 Ron Paul 63:18
Mr. Speaker, consider some of the
following
claims presented by supporters of this resolution, and contrast them
with the
following facts:
2002 Ron Paul 63:19
Claim: Iraq has consistently
demonstrated its
willingness to use force against the US through its firing on our
planes
patrolling the UN-established no-fly zones.
2002 Ron Paul 63:20
Reality: The no-fly zones were
never
authorized by the United Nations, nor was their 12 year patrol by
American and
British fighter planes sanctioned by the United Nations. Under UN
Security
Council Resolution 688 (April, 1991), Iraq’s repression of the Kurds
and Shi’ites
was condemned, but there was no authorization for no-fly zones, much
less airstrikes. The resolution only calls for member states to
contribute
to humanitarian relief in the Kurd and Shi’ite areas. Yet the US and
British have been bombing Iraq in the no-fly zones for 12 years.
While one can only condemn any country firing on our pilots, isn’t the
real
argument whether we should continue to bomb Iraq relentlessly? Just
since 1998,
some 40,000 sorties have been flown over Iraq.
2002 Ron Paul 63:21
Claim: Iraq is an international
sponsor of
terrorism.
2002 Ron Paul 63:22
Reality: According to the latest
edition of the
State Department’s Patterns of Global Terrorism, Iraq sponsors several
minor
Palestinian groups, the Mujahedin-e-Khalq (MEK), and the Kurdistan
Workers’
Party (PKK). None of these carries out attacks against the United
States. As a
matter of fact, the MEK (an Iranian organization located in Iraq) has
enjoyed
broad Congressional support over the years. According to last year’s
Patterns
of Global Terrorism, Iraq has not been involved in terrorist activity
against
the West since 1993 – the alleged attempt against former President Bush.
2002 Ron Paul 63:23
Claim: Iraq tried to assassinate
President Bush
in 1993.
2002 Ron Paul 63:24
Reality: It is far from certain that
Iraq was
behind the attack. News reports at the time were skeptical about
Kuwaiti
assertions that the attack was planned by Iraq against former.
President Bush.
Following is an interesting quote from Seymore Hersh’s article from
Nov. 1993:
2002 Ron Paul 63:25
Three years ago,
during Iraqs six-month occupation of Kuwait, there had been an outcry
when a teen-age Kuwaiti girl testified eloquently and effectively
before Congress about Iraqi atrocities involving newborn infants. The
girl turned out to be the
daughter of the Kuwaiti Ambassador to
Washington, Sheikh Saud
Nasir al-Sabah, and her account of Iraqi
soldiers flinging babies out of incubators was challenged as
exaggerated both by journalists and by human-rights groups. (
Sheikh
Saud was subsequently named Minister of Information in Kuwait, and he
was the government official in charge of briefing the international
press on the alleged assassination attempt against George Bush
.) In
a second incident, in August of 1991, Kuwait provoked a special session
of the United Nations Security Council by claiming that twelve Iraqi
vessels, including a speedboat, had been involved in an attempt to
assault Bubiyan Island, long-disputed territory that was then under
Kuwaiti control. The Security Council eventually concluded that, while
the Iraqis had been provocative, there had been no Iraqi military raid,
and that the Kuwaiti government knew there hadnt. What did take place
was nothing more than a smuggler-versus-smuggler dispute over war booty
in a nearby demilitarized zone that had emerged, after the Gulf War, as
an illegal marketplace for alcohol, ammunition, and livestock.
2002 Ron Paul 63:26
This establishes that on several
occasions Kuwait has lied about the threat from Iraq. Hersh goes on to
point out in the article numerous other times the Kuwaitis lied to the
US and the UN about Iraq. Here is another good quote from Hersh:
2002 Ron Paul 63:27
The President was not alone in
his caution. Janet Reno, the Attorney General, also had her doubts.
The A.G. remains skeptical of certain aspects of the case, a senior
Justice Department official told me in late July, a month after the
bombs were dropped on Baghdad…Two weeks later, what amounted to open
warfare broke out among various factions in the government on the issue
of who had done what in Kuwait. Someone gave a Boston Globe reporter
access to a classified C.I.A. study that was highly skeptical of the
Kuwaiti claims of an Iraqi assassination attempt.
The study,
prepared by the C.I.A.s Counter Terrorism Center, suggested that
Kuwait might have cooked the books on the alleged plot in an effort
to play up the continuing Iraqi threat to Western interests in the
Persian Gulf
. Neither the Times nor the Post made any significant
mention of the Globe dispatch, which had been written by a Washington
correspondent named Paul Quinn-Judge, although the story cited specific
paragraphs from the C.I.A. assessment. The two major American
newspapers had been driven by their sources to the other side of the
debate.
2002 Ron Paul 63:28
At the very least, the case against
Iraq for the
alleged bomb threat is not conclusive.
2002 Ron Paul 63:29
Claim: Saddam Hussein will use
weapons of mass
destruction against us – he has already used them against his own
people (the
Kurds in 1988 in the village of Halabja).
2002 Ron Paul 63:30
Reality: It is far from certain that
Iraq used
chemical weapons against the Kurds. It may be accepted as conventional
wisdom in
these times, but back when it was first claimed there was great
skepticism. The
evidence is far from conclusive. A 1990 study by the Strategic Studies
Institute
of the U.S. Army War College cast great doubts on the claim that Iraq
used
chemical weapons on the Kurds. Following are the two gassing incidents
as
described in the report:
2002 Ron Paul 63:31
In September 1988, however – a
month after the war (between Iran and Iraq) had ended – the State
Department abruptly, and in what many viewed as a sensational manner,
condemned Iraq for allegedly using chemicals against its Kurdish
population. The incident cannot be understood without some background
of Iraq’s relations with the Kurds…throughout the war Iraq effectively
faced two enemies – Iran and elements of its own Kurdish minority.
Significant numbers of the Kurds had launched a revolt against Baghdad
and in the process teamed up with Tehran. As soon as the war with Iran
ended, Iraq announced its determination to crush the Kurdish
insurrection. It sent Republican Guards to the Kurdish area, and in the
course of the operation – according to the U.S. State Department – gas
was used, with the result that numerous Kurdish civilians were killed.
The Iraqi government denied that any such gassing had occurred.
Nonetheless, Secretary of State Schultz stood by U.S. accusations, and
the U.S. Congress, acting on its own, sought to impose economic
sanctions on Baghdad as a violator of the Kurds’ human rights.
2002 Ron Paul 63:32
Having looked at all the
evidence that was available to us, we find it impossible to confirm the
State Department’s claim that gas was used in this instance
. To begin with.
There were never any
victims produced
. International relief organizations who examined
the Kurds – in Turkey where they had gone for asylum – failed to
discover any. Nor were there ever any found inside Iraq
. The claim
rests solely on testimony of the Kurds who had crossed the border into
Turkey, where they were interviewed by staffers of the Senate Foreign
Relations Committee
…
2002 Ron Paul 63:33
It appears that in seeking to
punish Iraq, the Congress was influenced by another incident that
occurred five months earlier in another Iraqi-Kurdish city, Halabjah.
In March 1988, the Kurds at Halabjah were bombarded with chemical
weapons, producing many deaths. Photographs of the Kurdish victims were
widely disseminated in the international media. Iraq was blamed for the
Halabjah attack, even though it was subsequently brought out that Iran
too had used chemicals in this operation and
it seemed likely that
it was the
Iranian
bombardment that had actually killed the
Kurds
.
2002 Ron Paul 63:34
Thus, in our view, the
Congress
acted more on the basis of emotionalism than factual information
,
and without sufficient thought for the adverse diplomatic effects of
its action.
2002 Ron Paul 63:35
Claim: Iraq must be attacked because
it has
ignored UN Security Council resolutions – these resolutions must be
backed up
by the use of force.
2002 Ron Paul 63:36
Reality: Iraq is but one of the many
countries
that have not complied with UN Security Council resolutions. In
addition to the
dozen or so resolutions currently being violated by Iraq, a
conservative
estimate reveals that there are an additional 91Security Council
resolutions by
countries other than Iraq that are also currently being violated.
Adding in
older resolutions that were violated would mean easily more than 200 UN
Security
Council resolutions have been violated with total impunity. Countries
currently
in violation include: Israel, Turkey, Morocco, Croatia, Armenia,
Russia, Sudan,
Turkey-controlled Cyprus, India, Pakistan, Indonesia. None of these
countries
have been threatened with force over their violations.
2002 Ron Paul 63:37
Claim: Iraq has anthrax and other
chemical and
biological agents.
2002 Ron Paul 63:38
Reality: That may be true. However,
according to
UNSCOM’s chief weapons inspector 90-95 percent of Iraq’s chemical and
biological weapons and capabilities were destroyed by 1998; those that
remained
have likely degraded in the intervening four years and are likely
useless. A
1994 Senate Banking Committee hearing revealed some 74 shipments of
deadly
chemical and biological agents from the U.S. to Iraq in the 1980s. As
one recent
press report stated:
2002 Ron Paul 63:39
One 1986 shipment from the
Virginia-based American Type Culture Collection included three strains
of anthrax, six strains of the bacteria that make botulinum toxin and
three strains of the bacteria that cause gas gangrene.
Iraq later
admitted to the United Nations that it had made weapons out of all three
…
2002 Ron Paul 63:40
The
CDC, meanwhile, sent
shipments of germs
to the Iraqi Atomic Energy Commission and other
agencies involved in Iraqs weapons of mass destruction programs. It
sent samples in 1986 of botulinum toxin and botulinum toxoid — used to
make vaccines against botulinum toxin —
directly to the Iraqi
chemical and biological weapons complex
at al-Muthanna, the records
show.
2002 Ron Paul 63:41
These were sent while the United
States was
supporting Iraq covertly in its war against Iran. U.S. assistance to
Iraq in
that war also included covertly-delivered intelligence on Iranian troop
movements and other assistance. This is just another example of our
policy of
interventionism in affairs that do not concern us – and how this
interventionism nearly always ends up causing harm to the United States.
2002 Ron Paul 63:42
Claim: The president claimed last
night that:
Iraq possesses ballistic missiles with a likely range of hundreds of
miles; far enough to strike Saudi Arabia, Israel, Turkey and other
nations in a
region where more than 135,000 American civilians and service members
live and
work.
2002 Ron Paul 63:43
Reality: Then why is only Israel
talking about
the need for the U.S. to attack Iraq? None of the other countries seem
concerned
at all. Also, the fact that some 135,000 Americans in the area are
under threat
from these alleged missiles is just makes the point that it is time to
bring our
troops home to defend our own country.
2002 Ron Paul 63:44
Claim: Iraq harbors al-Qaeda and
other
terrorists.
2002 Ron Paul 63:45
Reality: The administration has
claimed that
some Al-Qaeda elements have been present in Northern Iraq. This is
territory
controlled by the Kurds – who are our allies – and is patrolled by U.S.
and
British fighter aircraft. Moreover, dozens of countries – including
Iran and
the United States – are said to have al-Qaeda members on their
territory.
Other terrorists allegedly harbored by Iraq, all are affiliated with
Palestinian
causes and do not attack the United States.
2002 Ron Paul 63:46
Claim: President Bush said in his
speech on 7
October 2002: Many people have asked how close Saddam Hussein is to
developing a nuclear weapon.
Well, we dont know exactly, and
thats the
problem
…
2002 Ron Paul 63:47
Reality: An admission of a
lack
of
information is justification for an attack?
2002 Ron Paul Chapter 64
http://www.house.gov/paul/congrec/congrec2002/cr100802b.htm
Congressman Ron Paul
U.S. House of Representatives
October 8, 2002
The Shrimp Importation Financing Fairness Act
2002 Ron Paul 64:1
Mr. PAUL. Mr. Speaker, I rise to introduce the Shrimp Importation Financing
Fairness Act. This bill aids Americas struggling domestic shrimping
industry by
placing a moratorium on restrictive regulations affecting the shrimping
industry. This bill also prevents tax dollars from going to the
domestic
shrimping industrys major foreign competitors.
2002 Ron Paul 64:2
The United States domestic shrimping industry is a vital social and economic
force in many coastal communities across the United States, including
several in
my congressional district. A thriving shrimping industry benefits not
only those
who own and operate shrimp boats, but also food processors, hotels and
restaurants, grocery stores, and all those who work in and service
these
industries. Shrimping also serves as a key source of safe domestic
foods at a
time when the nation is engaged in hostilities abroad.
2002 Ron Paul 64:3
Given the importance of a strong shrimping industry to so many Americans, it
seems strange that the federal government continues to burden shrimpers
with
excessive regulations. For example, the federal government has imposed
costly
regulations on this industry dealing with usage of items such as by
catch
reduction devices and turtle excluder devices (TEDS). The mandatory use
of these
devices results in a significant reduction in the amount of shrimp
caught by
domestic shrimpers, thus damaging their competitive position and market
share.
2002 Ron Paul 64:4
Many members of Congress have let the National Marine Fisheries Service,
which is the lead federal agency with responsibility to regulate the
domestic
shrimp industry, know of their displeasure with the unreasonable
regulatory
burden imposed upon the industry. In response, the agency recently held
briefings with House and Senate staffers as well as industry
representatives to
discuss how the agencys actions are harming shrimpers.
2002 Ron Paul 64:5
However, even after hearing first-hand testimony from industry representatives and representatives of communities whose economies rely
on a
thriving shrimping industry, the agency refuses to refrain from placing
regulatory encumbrances upon the domestic shrimping industry. Therefore
it is up
to Congress to protect this industry from overzealous regulators. The
Shrimp
Importation Financing Fairness Act provides this protection by placing
an
indefinite moratorium on all future restrictive regulations on the
shrimping
industry.
2002 Ron Paul 64:6
Seven foreign countries (Thailand, Vietnam, India, China, Ecuador, Indonesia,
and Brazil) have taken advantage of the domestic shrimping industrys
government-created vulnerabilities. These countries have each exported
in excess
of 20,000,000 pounds of shrimp to the United States in the first 6
months of
this year. These seven countries account for nearly 70 percent of all
shrimp
consumed in the United States in the first six months of this year and
nearly 80
percent of all shrimp imported to this country in the same period!
2002 Ron Paul 64:7
Adding insult to injury the federal government is forcing American shrimpers
to subsidize their competitors! In the last three years, the United
States
Government has provided more than $1,800,000,000 in financing and
insurance for
these foreign countries through the Overseas Private Investment
Corporation (OPIC).
Furthermore, the U.S. current exposure relative to these countries
through the
Export-Import Bank totals some $14,800,000,000. Thus, the United States
taxpayer
is providing a total subsidy of $16,500,000,000 to the home countries
of the
leading foreign competitors of American shrimpers! Of course, the
American
taxpayer could be forced to shovel more money to these countries
through the
International Monetary Fund (IMF).
2002 Ron Paul 64:8
Many of the countries in question do not have free-market economics. Thus,
the participation of these countries in United States-supported
international
financial regimes amounts to a direct subsidy by American shrimpers to
their
international competitors. In any case, providing aid to any of these
countries
indirectly grants benefits to foreign shrimpers because of the
fungibility of
money.
2002 Ron Paul 64:9
In order to ensure that American shrimpers are not forced to subsidize their
competitors, the Shrimp Importation Financing Fairness Act ends all
Export-Import and OPIC subsidizes to the seven countries who imported
more than
20 million pounds of shrimp in the first six months of 2002. The bill
also
reduces Americas contribution to the IMF by Americas pro rata share
of any IMF
aid provided to one of those seven countries.
Mr. Speaker, it is time for Congress to rein in regulation-happy
bureaucrats and
stop subsidizing the domestic shrimping industries leading
competitors.
Otherwise, the government-manufactured depression in the price of
shrimp will
decimate the domestic shrimping industry and the communities whose
economies
depend on this industry. I, therefore, hope all my colleagues will
stand up for
shrimpers by cosponsoring the Shrimp Importation Financing Fairness Act.
2002 Ron Paul Chapter 65
http://www.house.gov/paul/congrec/congrec2002/cr111302.htm
Congressman Ron Paul
U.S. House of Representatives
November 13, 2002
Oppose The New Homeland Security Bureaucracy!
2002 Ron Paul 65:1
Mr. Speaker, when the
process of
creating a Department of Homeland Security commenced, Congress was led
to
believe that the legislation would be a simple reorganization aimed at
increasing efficiency, not an attempt to expand federal power. Fiscally
conservative members of Congress were even told that the bill would be
budget
neutral! Yet, when the House of Representatives initially considered
creating a
Department of Homeland Security, the legislative vehicle almost
overnight grew
from 32 pages to 282 pages- and the cost had ballooned to at least $3
billion.
Now we are prepared to vote on a nearly 500-page bill that increases
federal
expenditures and raises troubling civil liberties questions. Adding
insult to
injury, this bill was put together late last night and introduced only
this
morning. Worst of all, the text of the bill has not been made readily
available
to most members, meaning this Congress is prepared to create a massive
new
federal agency without even knowing the details. This is a dangerous
and
irresponsible practice.
2002 Ron Paul 65:2
The last time Congress
attempted a
similarly ambitious reorganization of the government was with the
creation of
the Department of Defense in 1947. However, the process by which we are
creating
this new department bears little resemblance to the process by which
the Defense
Department was created. Congress began hearings on the proposed
Department of Defense in 1945 – two years before President Truman signed legislation
creating the new Department into law! Despite the lengthy deliberative process
through which Congress created that new department, turf battles and logistical
problems continued to bedevil the military establishment, requiring several
corrective pieces of legislation. In fact, Mr. Speaker, the Goldwater-Nicholas
Department of Defense Reorganization Act of
1986
was passed to deal with
problems steaming from the 1947 law! The experience with the Department of
Defense certainly suggests the importance of a more deliberative process in the
creation of this new agency.
2002 Ron Paul 65:3
HR 5710 grants major new powers to the
Department of Health and Human Services (HHS) by granting HHS the
authority to
administer the smallpox vaccine to members of the public if the
Department unilaterally determines that there is a public health threat
posed by
smallpox. HHS would not even have to demonstrate an actual threat of a
smallpox
attack, merely the potential of an attack. Thus, this bill grants
federal agents the authority to force millions of Americans to be
injected with
a potentially lethal vaccine based on nothing more than a theoretical
potential
smallpox incident. Furthermore, this provision continues to restrict
access to
the smallpox vaccine from those who have made a voluntary choice to
accept the
risk of the vaccine in order to protect themselves from smallpox. It is
hard to
think of a more blatant violation of liberty than allowing government
officials
to force people to receive potentially dangerous vaccines based on
hypothetical risks.
2002 Ron Paul 65:4
While this provision appears to be based on similar provisions granting broad mandatory vaccination and
quarantine powers to governors from the controversial Model Health Emergency
Powers Act, this provision has not been considered by the House. Instead,
this provision seems to have been snuck into the bill at the last minute. At
the very least, Mr. Speaker, before Congress grants HHS such sweeping powers, we
should have an open debate instead of burying the authorization in a couple of
paragraphs tucked away in a 484 page bill!
2002 Ron Paul 65:5
HR 5710 also expands the federal police
state by allowing the attorney general to authorize federal agency
inspectors
general and their agents to carry firearms and make warrantless
arrests. One of
the most disturbing trends in recent years is the increase in the
number of
federal officials authorized to carry guns. This is especially
disturbing when
combined with the increasing trend toward restricting the ability of
average
Americans to exercise their second amendment rights. Arming the
government while
disarming the public encourages abuses of power.
2002 Ron Paul 65:6
Mr. Speaker, HR 5710 gives
the federal
government new powers and increases federal expenditures, completely
contradicting what members were told about the bill. Furthermore, these
new power grabs are being rushed through Congress without giving members
the ability to debate, or even properly study, this proposal. I must oppose this
bill and urge my colleagues to do the same.
2002 Ron Paul Chapter 66
http://www.house.gov/paul/congrec/congrec2002/cr111402.htm
Congressman Ron Paul
U.S. House of Representatives
November 14, 2002
Unintended Consequences
2002 Ron Paul 66:1
Mr. Speaker, government efforts at benevolence always backfire. Inevitably,
unintended consequences overwhelm the short-term and narrow benefits of
authoritarian programs designed to make the economic system fair, the
people
morally better, and the world safe for democracy. One hundred years of
intense
government benevolence in the United States has brought us to the
brink of economic collapse, a domestic police state, and perpetual war
overseas.
And now our obsession with conquering and occupying Iraq is about to
unleash
consequences that no one can accurately foresee. The negative
possibilities are
unlimited and the benefits negligible.
2002 Ron Paul 66:2
Some have warned that the planned pre-emptive invasion of Iraq could prove so
destabilizing to the region and the world that it literally could
ignite a
worldwide conflict big enough to be called World War III. Nuclear
exchanges are
perhaps even more likely to occur under the conditions of an expanded
Middle
east war than they were at the height of the Cold War, when the Soviets
and U.S.
had literally thousands of nuclear weapons pointed at each other. If we
carry
out our threats to invade and occupy Iraq, especially if we do so
unilaterally,
the odds are at least 50-50 that this worst case scenario will result.
2002 Ron Paul 66:3
The best-case scenario would be a short war, limited to weeks and involving
few American and Iraqi civilian casualties. This, in combination with a
unified
Iraqi welcome, the placing into power of a stable popular government
that is
long lasting, contributing to regional stability and prosperity, and
free
elections, just is what our planners are hoping for. The odds of
achieving this
miraculous result are probably one in 10,000.
2002 Ron Paul 66:4
More likely, the consequences will be severe and surprising and not what
anyone planned for or intended. It will likely fall somewhere between
the two
extremes, but closer to the worst scenario than the best.
2002 Ron Paul 66:5
There are numerous other possible consequences. Here are a few worth
contemplating:
2002 Ron Paul 66:6
No local Iraqi or regional Arab support materializes. Instead of a spontaneous uprising as is hoped, the opposite occurs. The Iraqi
citizens
anxious to get rid of Hussein join in his defense, believing foreign
occupation
and control of their oil is far worse than living under the current
dictator.
Already we see that sanctions have done precisely that. Instead of
blaming
Saddam Hussein and his dictatorial regime for the suffering of the past
decade,
the Iraqi people blame the U.S.-led sanctions and the constant bombing
by the
U.S. and British. Hussein has increased his power and the people have
suffered
from the war against Iraq since 1991. There are a lot of reasons to
believe this
same reaction will occur with an escalation of our military attacks.
Training
dissidents like the Iraqi National Congress will prove no more reliable
than the
training and the military assistance we provided in the 70’s and the
80’s
for Osama bin Laden and Saddam Hussein when they qualified as U.S.
allies.
2002 Ron Paul 66:7
Pre-emptive war against Iraq may well prompt traditional enemies in the
regions to create new alliances, as the hatred for America comes to
exceed
age-old hatreds that caused regional conflicts. Iraq already has made
overtures
and concessions to Iran and Kuwait, with some signs of conciliation
being shown
by both sides. Total domination of the entire Persian Gulf and the
Caspian Sea
regions by the U.S. will surely stir survival instincts in these
countries as
well as in Russia. As the balance of power continues to shift in the
U.S.’s
favor, there will be even more reasons for countries like China and
Pakistan to
secretly support the nations that are being subjected to U.S.
domination in the
region. The U.S. will never have a free ride in its effort to control
the entire
world’s oil supply. Antagonisms are bound to build, and our ability to
finance
the multiple military conflicts that are bound to come is self-limited.
2002 Ron Paul 66:8
The Kurds may jump at the chance, if chaos ensues, to fulfill their dream of
an independent Kurdish homeland. This, of course, will stir the ire of
the Turks
and the Iranians. Instead of stability for northern Iraq, the war
likely will
precipitate more fighting than the war planners ever imagined.
Delivering
Kurdish Iraq to Turkey as a prize for its cooperation with our war
plans will
not occur without a heated and deadly struggle. Turkey is already
deeply
concerned about the prospect for Kurdish independence, and only remains
loyal to
America because U.S. taxpayers are forced to subsidize an already
depressed
Turkish economy caused by our Iraqi policies. More money will pacify
for a
while, but either frustration with the perpetual nature of the problem
or our
inability to continue the financial bailout will lead Turkey to have
second
thoughts about its obedience to our demands to wage war from their
country. All
of this raises the odds that Islamic radicals will once more take
control of the
Turkish government. These developing conditions increase the odds of
civil
strife erupting in Turkey.
2002 Ron Paul 66:9
Islamic fundamentalism in the entire region will get a shot in the arm once
the invasion of Iraq begins, especially in Saudi Arabia, Yemen, and
Turkey. Our
placing the Shah in power in Iran in the 1950’s was a major reason that
the
Ayatollah eventually made it to power in the late 1970’s- a delayed but
nevertheless direct consequence of our policy. Balance of power in this
area of
the world has always been delicate, and outside interference serves
only to
destabilize. There’s no evidence that our current efforts will lead to
more
stability. Promoting democracy, as it’s said we’re doing, is a farce.
If
elections were to occur in most of the Arab countries today, Osama bin
Laden and
his key allies would win. Besides, it seems we adapt quite well to
working with
military dictators that have ousted elected leaders, as we do in
Pakistan by
rewarding their cooperation with huge subsidies and future promises.
2002 Ron Paul 66:10
In the chaos that may erupt, several countries might see an opportunity to
move on their neighbors. Already we have been warned that cooperation
from
Russia means no American criticism or resistance to its moves in
Georgia or
Chechnya. China could attack Taiwan. North Korea could renew its
struggle
against South Korea. India may see this as an opportunity to settle the
Kashmir
dispute with Pakistan- with the real risk of nuclear war breaking out.
It seems
the obsession about Iraq’s improbable possession of nuclear weapons far
exceeds the more realistic possibility that our pre-emptive strike
against Iraq
may precipitate a nuclear exchange between these two countries, or even
a first
strike with nuclear weapons by Israel against Iraq.
2002 Ron Paul 66:11
Expect Israel to use the chaos to further promote their occupation and
settlements in the Palestinian homeland and possibly even in Lebanon.
Israel’s
possession of nuclear weapons in a period of outright war will surely
serve to
intimidate her neighbors and intensify her efforts to further expand
the Israeli
homeland.
2002 Ron Paul 66:12
If massive Iraqi civilian casualties result, as indeed is possible though not
deliberate, expect more worldwide condemnation and even a UN resolution
condemning what others will call American War Crimes. Our refusal to be
subject
to the International Criminal Court, while demanding others be tried in
the
court, will never sit well with the world community. Our position is a
far cry
from what it ought to be- demanding national sovereignty while
promoting
neutrality and friendship with all nations.
2002 Ron Paul 66:13
Our own CIA has warned that war with Iraq will more likely cause Saddam
Hussein to use any massively lethal weapons that he might have than if
we don’t
attack him. Also, they warned that the likelihood of al Qaeda attacks
on our own
soil will increase once an invasion begins. This, of course, could
cause a wave
of well-placed snipers around the United States.
2002 Ron Paul 66:14
It is now admitted that over 150,000 U.S. servicemen are suffering from
Persian Gulf War Syndrome as a result of the first Persian Gulf War.
Our
government would like to ignore this fact, but a new war literally
could create
an epidemic of casualties of the same sort, since the exact etiology is
not
completely understood. The number of deaths and injuries that might
occur from
an occupation of Iraq is unknown, but conceivably could be much higher
than
anyone wants to imagine.
2002 Ron Paul 66:15
Anti Americanism now sweeping the world will significantly increase once we
launch our attack. Already we have seen elections swayed in Europe,
Turkey, and
Pakistan by those unfriendly to the United States. The attitude that
the world’s
King of the Hill must be brought down will escalate, especially if
the war goes poorly and does not end quickly with minimal civilian
deaths.
2002 Ron Paul 66:16
Al Qaeda likely will get a real boost in membership once the war breaks out.
Membership is already pervasive throughout the world without any
centralized
control. We should expect this to continue, with an explosion in
membership and
a negative impact around the world. Our attack will confirm to the
doubters that
bin Laden was right in assessing our desire to control the Middle
Eastern
resources and dictate policy to the entire region while giving support
to Israel
over the Palestinians.
2002 Ron Paul 66:17
Our very weak economy could easily collapse with the additional burden of a
costly war. War is never a way to make the people of a country better
off. It
does not end recessions, and is much more likely to cause one or make
one much
worse. A significant war will cause revenues to decrease, taxes to
increase,
inflation to jump, encourage trade wars, and balloon the deficit. Oil
prices
will soar and the dollar will retreat ever further.
2002 Ron Paul 66:18
Already we’re hearing demands for a military draft to be instituted for
both men and women. I see that coming, and it will serve as another
source of
domestic friction as our economy deteriorates and unemployment rises.
Under
these conditions the standard of living for all Americans is destined
to go
down.
2002 Ron Paul 66:19
This war, if of any significant duration, in time will be seen as a
Republican war plain and simple. Along with a weak economy, it could
easily
usher in a regime change here in the United States. The conditions
may justify a change in leadership, but the return of control to the
opposition
party will allow them to use the opportunity to promote their domestic
liberal
agenda and socialize the entire economy.
2002 Ron Paul 66:20
The net result, regardless of the size and duration of the coming war, will
be that the people of the United States will be less free and much
poorer. The
bigger the war, the greater will be the suffering.
2002 Ron Paul Chapter 67
http://www.house.gov/paul/congrec/congrec2002/cr111502.htm
HON. RON PAUL OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, November 14, 2002
Oppose the New Homeland Security Bureaucracy!
2002 Ron Paul 67:1
Mr. PAUL. Mr. Speaker, I urge my colleagues to read You are a Suspect by William Safire in todays New York Times. Mr. Safire, who
has
been one of the medias most consistent defenders of personal privacy,
details
the Defense Departments plan to establish a system of Total
Information Awareness. According to Mr. Safire, once this system
is
implemented, no American will be able to use the internet to fill a
prescription, subscribe to a magazine, buy a book, send or receive
e-mail, or
visit a web site free from the prying eyes of government bureaucrats.
Furthermore, individual internet transactions will be recorded in a
virtual centralized grand database. Implementation of this project
would
shred the Fourth Amendments requirement that the government establish
probable
cause and obtain a search warrant before snooping into the private
affairs of
its citizens. I hope my colleagues read Mr. Safires article and
support efforts
to prevent the implementation of this program, including repealing any
legislation weakening privacy protections that Congress may
inadvertently have
passed in the rush to complete legislative business this year.
2002 Ron Paul 67:2
New York Times, Nov. 14, 2002
YOU ARE A SUSPECT
(By William Safire)
Washington--If the Homeland Security Act is not amended before passage,
here is
what will happen to you: Every purchase you make with a credit card,
every
magazine subscription you buy and medical prescription you fill, every
Web site
you visit and e-mail you send or receive, every academic grade you
receive,
every bank deposit you make, every trip you book and every event you
attend--all
these transactions and communications will go into what the Defense
Department
describes as a virtual, centralized grand database.
2002 Ron Paul 67:3
To this computerized dossier on your private life from commercial sources, add
every piece of information that government has about you--passport
application,
drivers license and bridge toll records, judicial and divorce records,
complaints from nosy neighbors to the F.B.I., your lifetime paper trail
plus the
latest hidden camera surveillance — and you have the supersnoops dream:
a
Total Information Awareness about every U.S. citizen.
2002 Ron Paul 67:4
This is not some far-out Orwellian scenario. It is what will happen to your
personal freedom in the next few weeks if John Poindexter gets the
unprecedented
power he seeks.
2002 Ron Paul 67:5
Remember Poindexter? Brilliant man, first in his class at the Naval Academy,
later earned a doctorate in physics, rose to national security adviser
under
President Ronald Reagan. He had this brilliant idea of secretly selling
missiles
to Iran to pay ransom for hostages, and with the illicit proceeds to
illegally
support contras in Nicaragua.
2002 Ron Paul 67:6
A jury convicted Poindexter in 1990 on five felony counts of misleading Congress
and making false statements, but an appeals court overturned the
verdict because
Congress had given him immunity for his testimony. He famously
asserted,
The buck stops here, arguing that the White House staff, and not the
president, was responsible for fateful decisions that might prove
embarrassing.
2002 Ron Paul 67:7
This ring-knocking master of deceit is back again with a plan even more scandalous than Iran-contra. He heads the Information Awareness
Office in the otherwise excellent Defense Advanced Research Projects
Agency, which spawned the Internet and stealth aircraft technology.
Poindexter
is now realizing his 20-year dream: getting the data-mining power to
snoop on every public and private act of every American.
2002 Ron Paul 67:8
Even the hastily passed U.S.A. Patriot Act, which widened the scope of the
Foreign Intelligence Surveillance Act and weakened 15 privacy laws,
raised
requirements for the government to report secret eavesdropping to
Congress and
the courts. But Poindexters assault on individual privacy rides
roughshod over
such oversight.
2002 Ron Paul 67:9
He is determined to break down the wall between commercial snooping and secret
government intrusion. The disgraced admiral dismisses such necessary
differentiation as bureaucratic stovepiping. And he has been given a
$200 million budget to create computer dossiers on 300 million
Americans.
2002 Ron Paul 67:10
When George W. Bush was running for president, he stood foursquare in defense of
each persons medical, financial and communications privacy. But
Poindexter,
whose contempt for the restraints of oversight drew the Reagan
administration
into its most serious blunder, is still operating on the presumption
that on
such a sweeping theft of privacy rights, the buck ends with him and not
with the
president.
2002 Ron Paul 67:11
This time, however, he has been seizing power in the open. In the past week John
Markoff of The Times, followed by Robert OHarrow of The Washington
Post have
revealed the extent of Poindexters operation, but editorialists have
not
grasped its undermining of the Freedom of Information Act.
2002 Ron Paul 67:12
Political awareness can overcome Total Information Awareness, the combined force of commercial and government snooping. In a similar
overreach,
Attorney General Ashcroft tried his Terrorism Information and
Prevention System
(TIPS), but public outrage at the use of gossips and postal workers as
snoops
caused the House to shoot it down. The Senate should now do the same to
this
other exploitation of fear.
2002 Ron Paul 67:13
The Latin motto over Poindexters new Pentagon office reads Scientia Est
Potentia knowledge is power. Exactly: the governments
infinite knowledge about you is its power over you. Were just as
concerned as the next person with protecting privacy, this brilliant
mind
blandly assured The Post. A jury found he spoke falsely before.
2002 Ron Paul Chapter 68
http://www.house.gov/paul/congrec/congrec2002/cr122002.htm
December 19th, 2002
Important Questions Concerning the Administrations Smallpox Vaccine Proposals
2002 Ron Paul 68:1
(This letter was sent by Congressman
Ron Paul to
Tommy Thompson, the Secretary of the Department of Health and Human
Services, in
response to announcements that the administration plans mandatory
smallpox
vaccines for approximately one million soldiers and frontline medical
providers)
2002 Ron Paul 68:2
Dear Secretary Thompson:
2002 Ron Paul 68:3
Please provide answers to the
following
questions regarding the administrations smallpox vaccination policy:
2002 Ron Paul 68:4
1. Does the administration believe it
has the
legal authority to institute a mandatory vaccine program for any group
of
Americans?
2002 Ron Paul 68:5
2. If the answer to question one is
yes, would
the administration consider implementing a mandatory vaccine program
for first
responders, if the current voluntary program does not produce what the
administration considers a sufficient number of vaccinated first
responders to
handle a smallpox emergency?
2002 Ron Paul 68:6
3. Are those who voluntarily receive
the
smallpox vaccine eligible for compensation from the National Vaccine
Compensation Fund?
2002 Ron Paul 68:7
4. Are individuals who are injured by
inadvertent exposure to the smallpox vaccine because of contact with a
vaccinated person eligible for compensation from the National Vaccine
Compensation Fund?
2002 Ron Paul 68:8
5. Have any states made plans to
mandate
smallpox vaccines as part of their bioterrorism defense plan?
2002 Ron Paul 68:9
6. Does the administration support
the
provisions in the Model Emergency Health Powers Act, which were drafted
with the
assistance of the Center for Disease Control, which appear to grant
individual
governors the ability to implement a mandatory smallpox vaccine program?
2002 Ron Paul 68:10
7. If the answer to questions 5 or 6
is yes, how
will the administration support and/or assist a governor who has
decided to
implement a mandatory smallpox vaccination plan?