Ron Paul: “They’re Doing Exactly What We Did In The Depression”

President Bush: “The risk of doing nothing far outweighs the risk of the [bailout] package!”

Wold Blitzer: “What do you say to the President who wants you and your fellow Republicans and Democrats to quickly pass this 700 billion dollar bailout package?”

Ron Paul: “Well I think that’s a mistake because we don’t have the money, but that doesn’t mean that you have to do nothing. I mean, we could reform the system, we could return to sound money, we could balance our budget, we could change our foreign policy, we could take care of our people at home, we could lower taxes, there’s a lot of things that we can do, but the worst thing that we can do is perpetuate the bad policies that gave us this trouble in the first place and that is, that we no longer over the last few decades believed in free market capitalism. Capital is supposed to come from savings, you’re supposed to work hard and save, as a matter of fact the Chinese work hard right now and they save and they’re buying up the world. But we borrow and spend and consume, and now it’s caught up to us and it’s undermining our whole system.”

Ron Paul on Financial Security vs. Inflation

by Ron Paul

Last week I discussed how sound money contributes to peaceful relationships around the world. It is not gold, in and of itself that excites me, but the many benefits of sound money. Another benefit is financial security.

Can sound money give you financial security? There is something very comforting in knowing that what you earn today will retain its purchasing power in the years to come. Indeed, the same silver dime that bought a loaf of bread in the 1960’s can still buy a loaf of bread with its precious metal content – which is worth about $1.00 today. An ounce of gold has always been about evenly exchangeable for a finely tailored men’s suit, which these days is roughly $800. And in these days of fluctuating gas prices, when priced in gold, oil has been stable.

Meanwhile, since the creation of the Federal Reserve, the fiat dollar has lost 94% of its purchasing power. The erosion of purchasing power rapidly accelerated when it was completely uncoupled from gold in 1971. This sort of fluctuation in the medium of exchange creates a lot of uncertainty in the marketplace and necessitates that you either take extraordinary defensive maneuvers, or face financial ruin. Trusting in government for financial security in retirement is not a safe option.

Indeed, a recent study by the Consumer Bankruptcy Project shows that bankruptcies among those 75 and older has more than quadrupled since 1991. This represents wealth and savings that have been eroded by inflation, and trust in entitlement promises that were more fantasy than reality. Even with the pittance that social security pays to seniors, it is bankrupt and bringing the economy to its knees. It is no wonder that many in the younger generations want no part of it, and they should not be forced into a failed system.

Woman burns money in Weimar GermanyOn the other hand, holding physical gold can defend against aggressive government monetary policies that threaten to inflate away the value of your life savings. During the hyperinflation in post WWI Germany, what used to be a comfortable nest egg was suddenly the value of a postage stamp. If one held just a portion of their savings in precious metals, the crisis was greatly softened. Gold will never be worth nothing, even if the exact price fluctuates. There is a famous photograph, however, of a German woman during this time period burning piles of tightly bound banknotes to keep warm.

Imagine if the money you earned had honest, stable value, or even appreciated like an investment! No such special measures, like converting dollars to gold, would be required to ensure that your savings would sustain you in your golden years. That is the way it could be and is supposed to be. However, the government’s thirst for power will not be easily, or cheaply, quenched. Fiat currency is one tool governments have to extract wealth quietly from the working class. It is time for the people to wake up to this ruse and look to the Constitution to restore sound currency.

Ron Paul on the Financial Crisis

“Our problems start with the Federal Reserve. The Federal Reserve is a monopoly and it controls interest rates artificially low, causing people to make mistakes. That’s the basic source. But then on top of that in the housing market we had the Community Reinvestment Act which told investors that they had to loan to risky borrowers, and that was the complication.

HUD contributes to this. FDIC contributes to this. It’s called moral hazard. Everything that we have done over here creates moral hazard. That is, we assure people [...] we’ll take care of everybody. “Just go out and take the risk.” It’s the opposite of the marketplace. And then they have people come along and say, “See, this is the failure of capitalism”. This has nothing to do with capitalism. This is something that started off as interventionism and as being too involved in the economy for the benefit of special interests, but now it’s being socialized out in the open.

We the taxpayers now own the mortgage companies, the insurance companies, and we’re gonna own a lot more. If our car companies need to be bailed out, believe me, it’s gonna happen, they’re not gonna let all our car companies go broke either.

But this will come to an end. The end of this comes when people reject the dollar. And I think we’re getting awfully close to this.”

Ron Paul on Gold and Sound Money

by Ron Paul

Many who agree with me on a lot of other issues, do not understand my enthusiasm for gold and sound money or why I spend so much time studying and talking about monetary policy. It’s true that I talk about money differently than most, but the fact is sound money offers many benefits. For example – peace.

Can sound money really bring about peace? Actually, it plays a big part in peaceful international relationships. Money based on commodities, rather than paper, is not subject to government manipulation, and is a key component to free and honest trade.

History shows that if countries engage in trade with each other, their governments tend to find ways to get along for the same reason you do not kill your customers at your place of business, even if they occasionally annoy you.

If someone outright cheats you, however, you may engage in “war” by taking them to court, for example, and the relationship will sour. Governments and central banks with unfettered power to manipulate currency also have the ability to cheat their creditors. One way they do this is to simply create enough currency to pay off debts. This devalues the currency and “cheats” the recipient out of what they are owed. It would not be fair if you watered down your product the way our government waters down its currency, so it is not hard to understand, in these simplified terms, why loose monetary policy contributes so much to ill will and war around the world.

Sound money, on the other hand, simply is what it is. Removing governmental power to manipulate money, removes the temptation for government to spend, print and cheat. Sound money ensures that our government’s spending priorities would be brought into sharp focus and reduced to only what we can afford.

Sound money also limits the ability to wage wars of aggression. Imagine how much more careful Washington would have to be about starting a war if they did not have this financial sleight of hand at their disposal! Fiat currency allows government do expensive things they should not be doing while paying the bills with cheap money. The Federal Reserve has lately been auctioning off large amounts of treasury bills as a way to finance the wars in Iraq and Afghanistan, and our crushing entitlement burden. The resulting devaluation of the dollar is quickly eroding our image as a good trading partner in the world. As a consequence, there is therefore more talk of economic isolation and war.

This vicious cycle of spending, fighting and inflating is not what Americans want. It is what the government wants, and it has had to deceive the citizens into allowing and supporting it. Sound money curbs the government’s ability to engage in these shenanigans and reduces the wars we fight to only truly defensive ones, for which Americans are more than willing to stand and fight. So in these ways, sound money is very conducive to peace.

Continued in Part 2…

Ron Paul, the Young Right and New Media

While Ron Paul will not be our next president, his memorable run for the Republican Presidential nomination will be heralded forever as the beginning of the “Young Right”.

For many, including myself, Dr. Paul represents both a practical form of modern libertarianism and proof that the truth can actually survive in modern politics. These are very important realizations, yet we’ve also learned that the truth is capable of much more than just surviving. It’s capable of winning. Perhaps not today, but in the near future mainstream politicians will speak of Ron Paul as Reagan spoke of Goldwater.

Most of the grassroots volunteers didn’t stop fighting when McCain was the declared the presumptive nominee. They moved to building infrastructure for the future. Indeed, a considerable amount of the Ron Paul Revolution is in the middle of shifting gears. We are not winding down, but gearing up.

The grassroots found new ways of communicating quickly and effectively. Websites like RonPaul.com started popping up all over the Internet. Today most of us can’t even name all the Ron Paul related websites, podcasts, forums, or media outlets in existence and be sure that every one of them is visited, heard, or read. We should have no doubt that, though scattered throughout cyberspace, the revolution continues.

While the mainstream media continues to salivate over McBama’s ludicrous stage fight for the presidency, Ron Paul’s newly awakened “Young Conservatives” are patiently building their own media empire. Everything from social networking, to radio, to interviews, to scholarly journals, even to cable channels has been created to promote ‘pro-liberty’ media. How about a media company that caters instead of panders? How about a source for relevant news, not ‘brain candy’? How about a million new ways for people to communicate? They’ve been built, they’re being used, and we must be familiar with them.

One day the horn will blow for the Ron Paul army to re-emerge and push our next liberty loving candidate into the mainstream. Our success rests in our own hands and in our ability to use the tools we have been given and the tools we have created. While I can’t list all the sites dedicated to filling the gap left by our mainstream media, I’d like to list a few below. I believe that by using the sites below, and other independent media movements, we give even more power to truth.

RonPaul.com, CampaignforLiberty.com, DailyPaul.com, BreaktheMatrix.com, ActualPolitics.com, RevolutionBroadcasting.com, RonPaulForums.com, RonPaulBlog.com, RonPaulPlanet.com, Mises.org

Feel free to post additional websites in the comments.

Let’s Take Our Country Back

The massive response to Ron Paul’s Statement to the Nation and Press Conference has been extremely encouraging.

A complete video of the press conference is now available; you can watch it below. We also set up a separate page to preserve this historic event for posterity.

Ron Paul has taken a tremendous risk by directly attacking the two party system. He expressed in clear words what we, the silent majority, had quietly resigned ourselves to a long time ago: The presidential election is a well designed charade that makes us believe we have a real choice, when in reality both parties are virtually identical and controlled by the same interests. They squabble over minor details while completely agreeing with each other on the elitist agenda that has taken away our freedoms and brought our country to the brink of financial ruin.

The time has come to stand up and eliminate the establishment’s monopoly on our lives, our money, our health and our freedom. Let’s take our country back and transcend the two party system so we can have a real choice over our future.

Do You Even Think Of Americans?

Just who is Daniel Fried referring to when he speaks of “our” interests?

Ron Paul’s Statement to the Nation

The coverage of the presidential election is designed to be a grand distraction. This is not new, but this year, it’s more so than ever.

Pretending that a true difference exists between the two major candidates is a charade of great proportion. Many who help to perpetuate this myth are frequently unaware of what they are doing and believe that significant differences actually do exist. Indeed, on small points there is the appearance of a difference. The real issues, however, are buried in a barrage of miscellaneous nonsense and endless pontifications by robotic pundits hired to perpetuate the myth of a campaign of substance.

The truth is that our two-party system offers no real choice. The real goal of the campaign is to distract people from considering the real issues.

Influential forces, the media, the government, the privileged corporations and moneyed interests see to it that both parties’ candidates are acceptable, regardless of the outcome, since they will still be in charge. It’s been that way for a long time. George Wallace was not the first to recognize that there’s “not a dime’s worth of difference” between the two parties. There is, though, a difference between the two major candidates and the candidates on third-party tickets and those running as independents.

The two parties and their candidates have no real disagreements on foreign policy, monetary policy, privacy issues, or the welfare state. They both are willing to abuse the Rule of Law and ignore constitutional restraint on Executive Powers. Neither major party champions free markets and private-property ownership.

Those candidates who represent actual change or disagreement with the status quo are held in check by the two major parties in power, making it very difficult to compete in the pretend democratic process. This is done by making it difficult for third-party candidates to get on the ballots, enter into the debates, raise money, avoid being marginalized, or get fair or actual coverage. A rare celebrity or a wealthy individual can, to a degree, overcome these difficulties.

The system we have today allows a President to be elected by as little as 32% of the American people, with half of those merely voting for the “lesser of two evils”. Therefore, as little as 16% actually vote for a president. No wonder when things go wrong, anger explodes. A recent poll shows that 60% of the American people are not happy with the two major candidates this year.

This system is driven by the conviction that only a major party candidate can win. Voters become convinced that any other vote is a “wasted” vote. It’s time for that conclusion to be challenged and to recognize that the only way not to waste one’s vote is to reject the two establishment candidates and join the majority, once called silent, and allow the voices of the people to be heard.

We cannot expect withdrawal of troops from Iraq or the Middle East with either of the two major candidates. Expect continued involvement in Iran, Iraq, Afghanistan, Pakistan and Georgia. Neither hints of a non-interventionist foreign policy. Do not expect to hear the rejection of the policy of supporting the American world empire. There will be no emphasis on protecting privacy and civil liberties and the constant surveillance of the American people. Do not expect any serious attempt to curtail the rapidly expanding national debt. And certainly, there will be no hint of addressing the Federal Reserve System and its cozy relationship with big banks and international corporations and the politicians.

There is only one way that these issues can get the attention they deserve: the silent majority must become the vocal majority.

This message can be sent to our leaders by not participating in the Great Distraction - the quadrennial campaign and election of an American President without a choice. Just think of how much of an edge a Vice President has in this process, and he or she is picked by a single person - the party’s nominee. This was never intended by the Constitution.

Since a principled non-voter sends a message, we must count them and recognize the message they are sending as well. The non-voters need to hold their own “election” by starting a “League of Non-voters” and explain their principled reasons for opting out of this charade of the presidential elective process. They just might get a bigger membership than anyone would guess.

Write-in votes should not be discouraged, but the electoral officials must be held accountable and make sure the votes are counted. But one must not be naïve and believe that under today’s circumstances one has a chance of accomplishing much by a write-in campaign.

The strongest message can be sent by rejecting the two-party system, which in reality is a one-party system with no possible chance for the changes to occur which are necessary to solve our economic and foreign policy problems. This can be accomplished by voting for one of the non-establishment principled candidates - Baldwin, Barr, McKinney, Nader, and possibly others. (listed alphabetically)

Yes, these individuals do have strong philosophic disagreements on various issues, but they all stand for challenging the status quo - those special interest who control our federal government. And because of this, on the big issues of war, civil liberties, deficits, and the Federal Reserve they have much in common. People will waste their vote in voting for the lesser of two evils. That can’t be stopped overnight, but for us to have an impact we must maximize the total votes of those rejecting the two major candidates.

For me, though, my advice - for what it’s worth - is to vote! Reject the two candidates who demand perpetuation of the status quo and pick one of the alternatives that you have the greatest affinity to, based on the other issues.

A huge vote for those running on principle will be a lot more valuable by sending a message that we’ve had enough and want real change than wasting one’s vote on a supposed lesser of two evils.

“The argument that the two parties should represent opposed ideals and policies, one, perhaps of the Right and the other of the Left, is a foolish idea acceptable only to the doctrinaire and academic thinkers. Instead the two parties should be almost identical, so that the American people can ‘throw the rascals out’ at any election without leading to any profound or extensive shifts in policy.”

Carroll Quigley – Author of Tragedy & Hope

Paul, Baldwin, McKinney, Nader: We Agree

The Republican/Democrat duopoly has, for far too long, ignored the most important issues facing our nation.  However, alternate candidates Chuck Baldwin, Cynthia McKinney, and Ralph Nader agree with Ron Paul on four key principles central to the health of our nation. These principles should be key in the considerations of every voter this November and in every election.

We Agree

Foreign Policy: The Iraq War must end as quickly as possible with removal of all our soldiers from the region. We must initiate the return of our soldiers from around the world, including Korea, Japan, Europe and the entire Middle East. We must cease the war propaganda, threats of a blockade and plans for attacks on Iran, nor should we re-ignite the cold war with Russia over Georgia. We must be willing to talk to all countries and offer friendship and trade and travel to all who are willing. We must take off the table the threat of a nuclear first strike against all nations.

Privacy: We must protect the privacy and civil liberties of all persons under US jurisdiction. We must repeal or radically change the Patriot Act, the Military Commissions Act, and the FISA legislation. We must reject the notion and practice of torture, eliminations of habeas corpus, secret tribunals, and secret prisons. We must deny immunity for corporations that spy willingly on the people for the benefit of the government. We must reject the unitary presidency, the illegal use of signing statements and excessive use of executive orders.

The National Debt: We believe that there should be no increase in the national debt. The burden of debt placed on the next generation is unjust and already threatening our economy and the value of our dollar. We must pay our bills as we go along and not unfairly place this burden on a future generation.

The Federal Reserve: We seek a thorough investigation, evaluation and audit of the Federal Reserve System and its cozy relationships with the banking, corporate, and other financial institutions. The arbitrary power to create money and credit out of thin air behind closed doors for the benefit of commercial interests must be ended. There should be no taxpayer bailouts of corporations and no corporate subsidies. Corporations should be aggressively prosecuted for their crimes and frauds.

(more…)

Ron Paul Announcement

Update: Click here to read the Ron Paul Announcement

In a press conference scheduled for Wednesday, September 10, at the National Press Club in Washington D.C., Congressman Ron Paul is expected to urge supporters to reject John McCain and Barack Obama and vote for “any” of the four smaller-party contenders in the coming presidential elections: Libertarian Party nominee Bob Barr, Green Party contender Cynthia McKinney, independent Ralph Nader or Constitution Party standard-bearer Chuck Baldwin.

Update: Click here to read the Ron Paul Announcement