How to fix America

by Mike Cuneo

Whether you think we are in a recession, depression, contraction, correction, or whatever, the key point is, our economy is headed for a complete and utter collapse in 5-7 years if we don’t act now. Bailing out companies that are built on worthless assets might stave off the trouble for a little while but it can’t fix the root problem. There are a whole host of things we should do as a country to restore our status as the best country on Earth.

1. Get back on a gold standard. This is essential to many of the other ideas, simply because it puts a limit on how much the government can spend (and waste). The government should be run like any other business, and at least attempt to spend within its means. Going to a gold standard would be a solid step in that direction.

2. Phase in the FairTax/phase out the IRS. There are several benefits to doing this. People traveling here from other countries (illegal aliens included) would contribute to our country. So would most, if not all, of the underground economy. Workers earning tips would contribute their fair share. Rich businessmen who shelter their money offshore would contribute. This is the best way to close all tax “loopholes” and to reduce the burden on honest taxpayers. It’s also very transparent, and allows savings and investment to grow faster. Plus it saves compliance costs and could allow us to eliminate the IRS and replace it with a smaller agency in charge of collecting the tax from retailers.

3. End the war on drugs. Clearly all the billions we are spending trying to decrease drug use is not working. People have a strong desire to use chemicals and substances to get high, buzzed, or just escape reality. The suppliers will always be at least a step ahead of regulation. Ending this war on drugs and legalizing them would clean up the streets and it could be treated similarly to cigarettes.

4. Privatize Social Security. People always get this one wrong, claiming that they don’t want to “gamble” with their life savings. The fact is, over a 30 year timeframe the markets have shown great returns. Anyone who can’t survive because their investments have gone down 15% in a year is too heavily invested in risky vehicles. As of now, there is no guarantee that you will get your money back if you pay into the system, so for younger generations, the better option would be simply investing their Social Security money in a simple savings account. The real “gambling” goes on when you allow the government to take your payments and use the money however the hell they see fit, which is what goes on now.

5. Eliminate the Department of Education. Our schools are a joke. We spend billions and the results are horrible. That’s what you get without competition. Funny how the government tries to break up monopolies in the private sector, but can’t survive without being one.

6. Privatize roads/jails/bridges. Our infrastructure is crumbling. We can’t afford to fix it, so maybe we should hand it over to private companies. There’s no sound reason the government builds our roads and bridges and there’s no reason they should manage the jails. All we get is waste.

7. End the Iraq/Afghanistan etc wars. Can someone tell me why we are in these areas, and who we are at war with? There will always be countries that don’t like us, but we can’t afford to just go to war with them for that reason. There’s no credible threat of another 9/11 style attack, and being at war with these countries might actually make us more vulnerable.

8. Get out of the UN. We don’t listen to them anyway, so what’s the point of belonging?

9. Eliminate the Federal Reserve. Clearly, free markets can set interest rates on their own. We don’t need rates set to protect us from inflation, deflation, recession, etc. by anyone except the market itself. When the Fed sets rates based on often faulty assumptions, it distorts the market and the economy as a whole.

10. Allow at least one other party besides Republican and Democrat at the debates. Setting the bar at 15% of the votes is insane. We need some fresh ideas and candidates to be heard. Without exposure, smaller candidates don’t have a chance.

11. Every citizen should be entitled to a report showing where their money goes. Any government spending over, say, $5m should be accounted for and listed on this report. Somewhere along the line we forgot that government works for us, that without OUR money they wouldn’t have any power at all. All the extra money the government would save by adopting the steps above would more than pay for such a report.

Ron Paul: A Financial PATRIOT Act

by Ron Paul

It has not been a good week for the Republic. It took quite a bit of trampling of the Constitution, but the bailout bill passed, as I suspected it would.

The bailout failed the first time it was brought to the House. Undaunted, the Senate pressed on by attaching the bailout as an amendment to another House passed bill that was pending in the Senate. The new bailout version had new taxes, so according to the Constitution it should not have originated in the Senate.

The rallying cry heard all over the Hill the past two weeks was that Congress must act. Our economy is facing a meltdown. Would this bill fix it? Nobody could really explain how it would. In fact, few demonstrated any real understanding of credit markets, of derivatives, of credit default swaps or mortgage-backed securities. If they did, they would have known better than to vote for this bill. All they knew was that this administration was saying some frightening things, and asking for a lot of money. And when has Congress ever been able to come up with a better solution to a problem than to throw more of your money at it? So that is what Congress did, enacting a financial PATRIOT Act in the process.

In its embarrassment at being called a “Do-Nothing Congress” the 110th Congress took decisive action and did SOMETHING. No matter that it was the wrong thing. In fact, it wasn’t until the Senate had a chance to load it up with even MORE spending, when it was finally inflationary and horrible enough, at $850 billion instead of a mere $700 billion, that it passed – and with a comfortable margin, in spite of constituent calls still coming in overwhelmingly against it. 57 members switched their vote!

The market went down anyway. Our nation is now just that much more in the hole. You will pay your part of this mess through inflation, and very likely hyperinflation.

Sometimes doing nothing is much better than thrashing about aimlessly. When one is caught in quicksand, for example, or when one doesn’t understand economics and finds oneself in the position Congress was in for the past two weeks, with decades of irresponsible monetary policy coming to a head. Why should we trust the same people who said just a few months ago that the economy was perfectly sound? The same people who just knew there were weapons of mass destruction? The same people that crammed the PATRIOT Act down our throats? Why not consult the people who had the foresight and understanding to see this coming? They would have recommended such logical actions as repealing the Community Reinvestment Act, which forces banks to make bad loans, or allowing the market to set interest rates instead of the Federal Reserve system. How about abolishing the Federal Reserve altogether? There are many things that could have been done, but don’t expect Congress take a course of action that comes from a place of understanding and competence when they could just spend money.

This bailout will be the legacy of the 110th “Do-Something” Congress, along with record low approval ratings. Here’s hoping the 111th Congress will be a “Do the Right Thing” Congress, and will focus on repealing and abolishing what is wrong with government instead of reinforcing it.

B.J. Lawson Money Bomb Today!

lawsonforcongress.com

Dear Friend,

A lot of folks have begun calling B.J. Lawson the next Ron Paul. The comparison is very flattering… for me.

For those who are not yet familiar, B.J. Lawson is a wonderful young candidate running for Congress in North Carolina’s Fourth Congressional District. B.J. is a medical doctor, family man, Constitutionalist and a fierce defender of individual freedom. We need B.J. Lawson in Congress to stand beside me in the fight for liberty, and against the corporate socialism that has overtaken our economy!

B.J. is running against an entrenched big government liberal who voted for the $700 billion taxpayer bailout of Wall Street and has a long history of voting for huge spending, raiding your social security trust fund for pet projects, and even voted for the Patriot Act.

A recent poll shows B.J. Lawson within striking distance in this election, but he needs your help!

B.J. needs $250,000, right away, to run the campaign he needs to take this race right down the the wire. I know that if we band together, we can help him get the money he needs.

I am asking you, as a fellow Defender of Liberty, to mark the four week countdown to this November’s election and join with me and donate to B.J. Lawson’s campaign this Tuesday, October 7th. I know times are tough, but that is all the more reason why we need to send a message and help B.J. Lawson.

Contributions can be made at http://www.lawsonforcongress.com

This one-day “Money Bomb” could be what it takes to propel the next Ron Paul into Congress. I hope you will join me to support B.J. Lawson with your on-line contribution this Tuesday, October 7th.

Sincerely,

Ron Paul

Ron Paul’s Statement on the Passage of the Bailout Bill

United States House of Representatives
Statement on HR 1424
October 3, 2008
Ron Paul

Madame Speaker, only in Washington could a bill demonstrably worse than its predecessor be brought back for another vote and actually expect to gain votes. That this bailout was initially defeated was a welcome surprise, but the power-brokers in Washington and on Wall Street could not allow that defeat to be permanent. It was most unfortunate that this monstrosity of a bill, loaded up with even more pork, was able to pass.

The Federal Reserve has already injected hundreds of billions of dollars into US and world credit markets. The adjusted monetary base is up sharply, bank reserves have exploded, and the national debt is up almost half a trillion dollars over the past two weeks. Yet, we are still told that after all this intervention, all this inflation, that we still need an additional $700 billion bailout, otherwise the credit markets will seize and the economy will collapse. This is the same excuse that preceded previous bailouts, and undoubtedly we will hear it again in the future after this bailout fails.

One of the most dangerous effects of this bailout is the incredibly elevated risk of moral hazard in the future. The worst performing financial services firms, even those who have been taken over by the government or have filed for bankruptcy, will find all of their poor decision-making rewarded. What incentive do Wall Street firms or any other large concerns have to make sound financial decisions, now that they see the federal government bailing out private companies to the tune of trillions of dollars? As Congress did with the legislation authorizing the Fannie and Freddie bailout, it proposes a solution that exacerbates and encourages the problematic behavior that led to this crisis in the first place.

With deposit insurance increasing to $250,000 and banks able to set their reserves to zero, we will undoubtedly see future increases in unsound lending. No one in our society seems to understand that wealth is not created by government fiat, is not created by banks, and is not created through the manipulation of interest rates and provision of easy credit. A debt-based society cannot prosper and is doomed to fail, as debts must either be defaulted on or repaid, neither resolution of which presents this country with a pleasant view of the future. True wealth can only come about through savings, the deferral of present consumption in order to provide for a higher level of future consumption. Instead, our government through its own behavior and through its policies encourages us to live beyond our means, reducing existing capital and mortgaging our future to pay for present consumption.

The money for this bailout does not just materialize out of thin air. The entire burden will be borne by the taxpayers, not now, because that is politically unacceptable, but in the future. This bailout will be paid for through the issuance of debt which we can only hope will be purchased by foreign creditors. The interest payments on that debt, which already take up a sizeable portion of federal expenditures, will rise, and our children and grandchildren will be burdened with increased taxes in order to pay that increased debt.

As usual, Congress has show itself to be reactive rather than proactive. For years, many people have been warning about the housing bubble and the inevitable bust. Congress ignored the impending storm, and responded to this crisis with a poorly thought-out piece of legislation that will only further harm the economy. We ought to be ashamed.

(emphasis added)

“Dear Ron Paul… HELP!!!”

This is a letter to Ron Paul and to all who are sick and tired of the “big money” running our country’s affairs. We “little people” are what make this country work…they are NOT listening to us!

You just watched them pass another bail out bill under pressure by Bush and the cronies! They’re killing us fast!

If you feel this way as well, please copy this video and get it out there among the peeps who care. Maybe we can get Ron Paul back in action somehow, “write in”, Independent”? Whatever.

Congress Passes Bailout Bill

263 yes - 171 no

YEA: Abercrombie, Ackerman, Alexander, Allen, Andrews, Arcuri, Baca, Bachus, Baird, Baldwin, Barrett (SC), Bean, Berkley, Berman, Berry, Biggert, Bishop (GA), Bishop (NY), Blunt, Boehner, Bonner, Bono Mack, Boozman, Boren, Boswell, Boucher, Boustany, Boyd (FL), Brady (PA), Brady (TX), Braley (IA), Brown (SC), Brown, Corrine, Buchanan, Calvert, Camp (MI), Campbell (CA), Cannon, Cantor, Capps, Capuano, Cardoza, Carnahan, Carson, Castle, Clarke, Cleaver, Clyburn, Coble, Cohen, Cole (OK), Conaway, Cooper, Costa, Cramer, Crenshaw, Crowley, Cubin, Cuellar, Cummings, Davis (AL), Davis (CA), Davis (IL), Davis, Tom, DeGette, DeLauro, Dent, Dicks, Dingell, Donnelly, Doyle, Dreier, Edwards (MD), Edwards (TX), Ehlers, Ellison, Ellsworth, Emanuel, Emerson, Engel, Eshoo, Etheridge, Everett, Fallin, Farr, Fattah, Ferguson, Fossella, Foster, Frank (MA), Frelinghuysen, Gerlach, Giffords, Gilchrest, Gonzalez, Gordon, Granger, Green, Al, Gutierrez, Hall (NY), Hare, Harman, Hastings (FL), Herger, Higgins, Hinojosa, Hirono, Hobson, Hoekstra, Holt, Honda, Hooley, Hoyer, Inglis (SC), Israel, Jackson (IL), Jackson-Lee (TX), Johnson, E. B., Kanjorski, Kennedy, Kildee, Kilpatrick, Kind, King (NY), Kirk, Klein (FL), Kline (MN), Knollenberg, Kuhl (NY), LaHood, Langevin, Larsen (WA), Larson (CT), Lee, Levin, Lewis (CA), Lewis (GA), Lewis (KY), Loebsack, Lofgren, Zoe, Lowey, Lungren, Daniel E., Mahoney (FL), Maloney (NY), Markey, Marshall, Matsui, McCarthy (NY), McCollum (MN), McCrery, McGovern, McHugh, McKeon, McNerney, McNulty, Meek (FL), Meeks (NY), Melancon, Miller (NC), Miller, Gary, Miller, George, Mitchell, Mollohan, Moore (KS), Moore (WI), Moran (VA), Murphy (CT), Murphy, Patrick, Murtha, Myrick, Nadler, Neal (MA), Oberstar, Obey, Olver, Ortiz, Pallone, Pascrell, Pastor, Pelosi, Perlmutter, Peterson (PA), Pickering, Pomeroy, Porter, Price (NC), Pryce (OH), Putnam, Radanovich, Rahall, Ramstad, Rangel, Regula, Reyes, Reynolds, Richardson, Rogers (AL), Rogers (KY), Ros-Lehtinen, Ross, Ruppersberger, Rush, Ryan (OH), Ryan (WI), Sarbanes, Saxton, Schakowsky, Schiff, Schmidt, Schwartz, Scott (GA), Sessions, Sestak, Shadegg, Shays, Shuster, Simpson, Sires, Skelton, Slaughter, Smith (TX), Smith (WA), Snyder, Solis, Souder, Space, Speier, Spratt, Sullivan, Sutton, Tancredo, Tanner, Tauscher, Terry, Thompson (CA), Thornberry, Tiberi, Tierney, Towns, Tsongas, Upton, Van Hollen, Velázquez, Walden (OR), Walsh (NY), Wamp, Wasserman Schultz, Waters, Watson, Watt, Waxman, Weiner, Welch (VT), Weldon (FL), Weller, Wexler, Wilson (NM), Wilson (OH), Wilson (SC), Wolf, Woolsey, Wu, Yarmuth

(Shown in red are those who changed their vote from no to yes)

NAY: Aderholt, Akin, Altmire, Bachmann, Barrow, Bartlett (MD), Barton (TX), Becerra, Bilbray, Bilirakis, Bishop (UT), Blackburn, Blumenauer, Boyda (KS), Broun (GA), Brown-Waite, Ginny, Burgess, Burton (IN), Butterfield, Buyer, Capito, Carney, Carter, Castor, Cazayoux, Chabot, Chandler, Childers, Clay, Conyers, Costello, Courtney, Culberson, Davis (KY), Davis, David, Davis, Lincoln, Deal (GA), DeFazio, Delahunt, Diaz-Balart, L., Diaz-Balart, M., Doggett, Doolittle, Drake, Duncan, English (PA), Feeney, Filner, Flake, Forbes, Fortenberry, Foxx, Franks (AZ), Gallegly, Garrett (NJ), Gillibrand, Gingrey, Gohmert, Goode, Goodlatte, Graves, Green, Gene, Grijalva, Hall (TX), Hastings (WA), Hayes, Heller, Hensarling, Herseth Sandlin, Hill, Hinchey, Hodes, Holden, Hulshof, Hunter, Inslee, Issa, Jefferson, Johnson (GA), Johnson (IL), Johnson, Sam, Jones (NC), Jordan, Kagen, Kaptur, Keller, King (IA), Kingston, Kucinich, Lamborn, Lampson, Latham, LaTourette, Latta, Linder, Lipinski, LoBiondo, Lucas, Lynch, Mack, Manzullo, Marchant, Matheson, McCarthy (CA), McCaul (TX), McCotter, McDermott, McHenry, McIntyre, McMorris Rodgers, Mica, Michaud, Miller (FL), Miller (MI), Moran (KS), Murphy, Tim, Musgrave, Napolitano, Neugebauer, Nunes, Paul, Payne, Pearce, Pence, Peterson (MN), Petri, Pitts, Platts, Poe, Price (GA), Rehberg, Reichert, Renzi, Rodriguez, Rogers (MI), Rohrabacher, Roskam, Rothman, Roybal-Allard, Royce, Salazar, Sali, Sánchez, Linda T., Sanchez, Loretta, Scalise, Scott (VA), Sensenbrenner, Serrano, Shea-Porter, Sherman, Shimkus, Shuler, Smith (NE), Smith (NJ), Stark, Stearns, Stupak, Taylor, Thompson (MS), Tiahrt, Turner, Udall (CO), Udall (NM), Visclosky, Walberg, Walz (MN), Westmoreland, Whitfield (KY), Wittman (VA), Young (AK), Young (FL)

(Only one Congressman, Jim McDermott, changed his vote from Yes to No)

Ron Paul to Congress: You’re Going to Guarantee a Depression!

Ron Paul’s address to Congress, Oct. 3, 2008

“Madam Speaker, I rise in strong opposition to this bill, because it won’t solve our problem. It is said that we’re in a liquidity crisis and a credit crunch, and all we need is more credit. The Federal Reserve has already injected over a trillion dollars worth of credit, and it hasn’t seemed to help a whole lot. Injecting another 600 or 700 billion dollars will not solve the problem.

I think one of the reasons why we’re floundering around here is that we don’t understand the problem, because instead of it being a credit crunch I think a lot more serious than that and that is, I think what’s happening in the market today is signalling something much more draconian.

Because it’s probably telling us that our government is insolvent, that we’re on the verge of bankruptcy, and big things are starting to happen, and we don’t quite understand it, so we fall back on the old cliches: What we need is more appropriations, more spending, more debt, and more credit in the market, that means more inflation by the Federal Reserve system. And yet that is what caused the trouble.

We want to do this, it is said, to prevent the recession or depression, because that is “unbearable”. But the truth is, you should have thought of that about 10 or 15 years ago, because the financial bubble created by the excess of credit and the lowering of the interest rates is the cause of the recession.

The recession is a demand. It’s a must. You can’t avoid it. Yes, it’s been papered over several times over these last several decades, but that just made the bubble bigger. But the message now is you can’t paper it over any longer, so the recession and/or the depression will come.

My sincere conviction is that by doing more mischief and not allowing markets to adjust, debt to be liquidated, you’re going to guarantee a depression. It’s going to be prolonged, the agony is going to be there a lot longer than if you allow markets to adjust. Liquidation of debt, let the bankruptcy occur, let the good assets come up, and let it react.

This idea that there’s just not enough regulation is completely wrong. There’s too much regulation and lack of regulation of the Federal Reserve system and the Exchange and Stabilization Fund.

Earlier today, Ron Paul was interviewed on Fox Business:

Poll: Do You Support The Bailout Bill?

 

In your opinion, should the House pass the Bailout Bill?
View Results

The House of Representatives is approaching a crucial vote on the Bailout Bill later today [Update: The bill passed 263 to 171]. The mainstream media claims that public opinion is increasingly in favor of the bill, so we decided to run our own poll to verify these claims.

In your opinion, should the House pass the Bailout Bill? Please take a second to vote in our poll, then tell everyone you know about the poll to make sure that all our voices will be heard.

(Feel free to post an explanation of your vote in the comments section.)

A Dark Day For America

The controlled media’s “shock and awe” propaganda blitz and fear mongering campaign had its desired effect: Last night, the Senate passed the Bailout Bill 75 to 24.

See who voted “yes” and “no”:

Alabama Sessions (R) No Shelby (R) No
Alaska Murkowski (R) Yes Stevens (R) Yes
Arizona Kyl (R) Yes McCain (R) Yes
Arkansas Lincoln (D) Yes Pryor (D) Yes
California Boxer (D) Yes Feinstein (D) Yes
Colorado Allard (R) No Salazar (D) Yes
Connecticut Dodd (D) Yes Lieberman (I) Yes
Delaware Biden (D) Yes Carper (D) Yes
Florida Martinez (R) Yes Nelson (D) No
Georgia Chambliss (R) Yes Isakson (R) Yes
Hawaii Akaka (D) Yes Inouye (D) Yes
Idaho Craig (R) Yes Crapo (R) No
Illinois Durbin (D) Yes Obama (D) Yes
Indiana Bayh (D) Yes Lugar (R) Yes
Iowa Grassley (R) Yes Harkin (D) Yes
Kansas Brownback (R) No Roberts (R) No
Kentucky Bunning (R) No McConnell (R) Yes
Louisiana Landrieu (D) No Vitter (R) No
Maine Collins (R) Yes Snowe (R) Yes
Maryland Cardin (D) Yes Mikulski (D) Yes
Massachusetts Kennedy (D) Absent    Kerry (D) Yes
Michigan Levin (D) Yes Stabenow (D) No
Minnesota Coleman (R) Yes Klobuchar (D) Yes
Mississippi Cochran (R) No Wicker (R) No
Missouri Bond (R) Yes McCaskill (D) Yes
Montana Baucus (D) Yes Tester (D) No
Nebraska Hagel (R) Yes Nelson (D) Yes
Nevada Ensign (R) Yes Reid (D) Yes
New Hampshire   Gregg (R) Yes Sununu (R) Yes
New Jersey Lautenberg(D) Yes Menendez (D) Yes
New Mexico Bingaman (D) Yes Domenici (R) Yes
New York Clinton (D) Yes Schumer (D) Yes
North Carolina Burr (R) Yes Dole (R) No
North Dakota Conrad (D) Yes Dorgan (D) No
Ohio Brown (D) Yes Voinovich (R) Yes
Oklahoma Coburn (R) Yes Inhofe (R) No
Oregon Smith (R) Yes Wyden (D) No
Pennsylvania Casey (D) Yes Specter (R) Yes
Rhode Island Reed (D) Yes Whitehouse (D) Yes
South Carolina DeMint (R) No Graham (R) Yes
South Dakota Johnson (D) No Thune (R) Yes
Tennessee Alexander (R) Yes Corker (R) Yes
Texas Cornyn (R) Yes Hutchison (R) Yes
Utah Bennett (R) Yes Hatch (R) Yes
Vermont Leahy (D) Yes Sanders (I) No
Virginia Warner (R) Yes Webb (D) Yes
Washington Cantwell (D) No Murray (D) Yes
West Virginia Byrd (D) Yes Rockefeller (D) Yes
Wisconsin Feingold (D) No Kohl (D) Yes
Wyoming Barrasso (R) No Enzi (R) No

The Bailout Bill will now be sent “back” to the House. Our final hope rests on the brave Congressmen and women who already defeated the bill on Monday. Let’ keep contacting them and ask them to remain firm in their opposition.

More on the Bailout:

Senate to Revive Bailout Bill Tonight

As predicted earlier this week, the failed bankers and their government enablers won’t take “no” for an answer. Even though the Bailout Bill was soundly defeated by the House on Monday, the Senate still plans to vote on the bill tonight.

How is this even possible?

In circumvention of normal procedures, the Senate merged the Bailout Bill with another bill that deals with completely unrelated matters: renewable energy tax incentives and a mental health parity provision for health insurance companies (!). If the new hodgepodge version is approved by the Senate, the bill would then be sent back to the House for a final vote.

According to the Campaign for Liberty, the following Senators are considered key votes. Please take a moment to call these Senators and urge them to cast their vote against the Bailout Bill. And please, call your two U.S. Senators and urge them to vote “no” as well.

Elizabeth Dole (NC)
* D.C.: Phone: (202) 224-6342 Fax: (202) 224-1100
* Raleigh: Phone: (919) 856-4630 Fax: (919) 856-4053

Norm Coleman (MN)
* D.C.: Phone: (202) 224-5641 Fax: (202) 224-1152
* St. Paul: Phone: (651) 645-0323 Fax: (651) 645-3110

Roger Wicker (MS)
* D.C.: Phone: (202) 224-6253 Fax: (202) 228-0378
* Jackson: Phone: (601) 965-4644 Fax: (601) 965-4007

Gordon Smith (OR)
* D.C.: Phone: (202) 224-3753 Fax: (202) 228-3997
* Portland: Phone: (503) 326-3386 Fax: (503) 326-2900

Lyndsey Graham (SC)
* D.C.: Phone: (202) 224-5972 Fax: (202) 224-3808
* Greenville: Phone: (864) 250-1417 Fax: (864) 250-4322

Ted Stevens (AK)
* D.C.: Phone: (202) 224-3004 Fax: (202) 224-2354
* Anchorage: Phone: (907) 271-5915 Fax: (907) 258-9305