Shortly after the start of Campaign for Liberty, Congressman Paul gave a special order speech on the House floor in July 2008 entitled "Something Big is Going On," where he laid out how our country had gone off a sound economic path, and he again predicted what would turn out to be the greatest economic crisis since the Great Depression.
In this follow-up to that momentous speech, entitled, "Is That All There is to a Recession?", Dr. Paul argues that, contrary to establishment thinking, we are by no means out of the woods. Urging a return to common sense and sound money, Congressman Paul looks at what lies ahead for our country if we continue to spend beyond our means and rely on a fradulent money system. Prosperity is waiting for our nation, but its return hinges on our ability to change our way of thinking in order to pursue liberty.
(Thanks to Minnesota Chris for the full playlist!)
As we start the new year 2010, the establishment politicians, economists and Wall Street are trying to convince themselves that we have turned the corner and economic growth has once again begun. The predictions that conditions are getting back to normal come from those who never saw the crisis coming and don't have the vaguest notion what caused it. Some of them concede that it could be a jobless recovery. That will establish a new definition for a recovery.
Official unemployment is at 10% but even the government knows that if everyone is counted, including those individuals that are too discouraged to even be looking for work, the unemployment rate is 17%. Free-market economists claim the actual unemployment rate is closer to 22%.
There's reason to believe that the correction is just barely started and has a long way to run. If the financial bubble came from excess credit created by the Federal Reserve, doubling the money supply can hardly be a solution. It wouldn't make much sense for a doctor taking care of a very sick patient from severe infection to deliberately give the patient another infection. Yet that's what the PhD doctors are doing to our very sick economy. It can't work. It will make the economy much sicker. If our leaders don't wake up soon, the economy will be brought to its knees. Great danger lies ahead.
In foreign policy, it's always crucial that the motives of those who would do us harm are understood. Denial of the truth and accepting more politically palatable excuses will guarantee that threats to our safety will continue as we pursue a seriously flawed involvement overseas.
It's the same in economic policy. If there's denial or ignorance of the real cause of financial bubbles and the inevitable corrections that must follow, the economy cannot be reenergized.
We should have learned the lesson from the Depression of the 1930s that it was a predictable result from the Federal Reserve's orchestrated excesses of the 1920s. Instead, the new-born Keynesian economists who took charge made certain that the correction would not be a one or two year affair as were the previous corrections in our history. The aggressive intervention by Hoover and Roosevelt, the Republicans and the Democrats, turned a short recession into the Great Depression, which lasted until the end of World War II.
The real tragedy was that the interpretation of the 1930s institutionalized bad economic theories. Unfortunately, and erroneously, the Depression was blamed on the gold standard, free markets and a lack of regulations. Though monetary policy was analyzed, its importance was 100% misinterpreted. The low interest rates and excess credit of the 1920s, driven by Federal Reserve policy, was not considered a factor in producing the stock market bubble and the mal-investment.
Instead, the 1930s analysts and even later analysis by Milton Freidman and the monetarists, along with academic "scholars" like Bernanke, came to an opposite conclusion: the Fed was at fault but only because it was too tight, arguing that massive monetary inflation was the only answer to the slumping economy.
And now we are witnessing a grand experiment by the very person who for years claimed special knowledge regarding the Depression. Chairman Bernanke is in the midst of trying to solve the problem of massive monetary inflation and excessively low interest rates instituted by his predecessor, Alan Greenspan, by implementing even more inflation at historic rates. The sad part is the answer to his very risky experiment with the wealth of our country and the health of our economy will take years to analyze. The conclusions will be just as flawed as they were in the aftermath of the Great Depression by an intellectual and political community that had totally rejected commodity money and the principle of free market with the current understanding in Washington.
One hope, though, is that free-market thinking and Austrian economic theories will have greater influence in the next decade or two, since their influence is now on a dramatic upswing. But there are a lot of hurdles to overcome.
In the 1930s, in an effort to find the true cause of the crisis, Congress ordered an official investigation. It became known as the "Pecora Investigation" named after Ferdinand Pecora, the aggressive chief council of the hearings. It received a lot of public attention and brought about many major changes but, tragically, every conclusion made and new policies implemented caused the depression to worsen and legitimized bad economic theories that continue to haunt us to this day.
The Federal Reserve was not blamed except for not printing enough money fast enough. Artificially low interest rates and mal-investment, the main source of the grossly distorted economy and bubble of the 1920s, were exonerated. Not enough regulations were blamed, thus the Glass-Stiegall Act and the Securities Act of 1933 were passed and deepened the depression. Separating commercial and investment banking and the newly created SEC were to have solved all future problems-as long as the Fed was free from any restraint in its money creation operation to serve big-government spenders and members of the banking cartel.
Since the flaws in the monetary and economic system were not corrected but made worse after the Depression, it was to be expected that periodic booms and busts would persist. The longer these cycles could be papered over with new money and credit, the greater would be the distortions and debt that would one day have to undergo a major correction.
That correction is now in its early stages. Since the dollar was the reserve currency of the world and totally fiat since 1971, without any linkage to gold, the financial bubble became worldwide. This bubble that burst in 2008 was the largest in history. During the formation of the bubble, the U.S. as the issuer of the world currency received undeserved benefits. We essentially became the counterfeiter of the world and no one called us on it. Even today, the trust in the dollar that persists has buffeted the pain of the correction for us. This unique setup was a prime cause for our balance of payment deficits and the huge foreign debt we owe-the largest in the history of the world. The discord in the world financial system is telling us that it's time for us to pay for our profligate spending and massive foreign indebtedness. We have lived, as a nation, far beyond our means and the message is, for the foreseeable future, that we will be forced to live beneath our means as this debt is paid.
The inflation optimists are excited about current signs of economic growth and have even announced the end of the recession. It is conceivable that a reprieve can be achieved and the penalty that our economy must endure delayed. A reprieve must not be confused with a pardon; one is a temporary delay, the other an exemption. The payback for our excesses is certain to come.
Massively increasing debt and monetary inflation can slow the crash and change some government statistics encouraging the optimists. But real job growth and return of prosperity will remain elusive. The odds of us once again becoming an exporter of manufactured goods, like steel, cars, and textiles, are remote.
Ironically, a reprieve may well restore some confidence and motivate some spending and investment. But instead of restoring long-term growth, it may well act perversely by precipitating price inflation and higher interest rates. Since today's interest rates are artificially set, much of our investing is unproductively misdirected.
Current enthusiasm in the stock market is once again a reflection of the message that low interest rates send. Thus too, the government's stimulus package has helped to sustain the bond bubble, which in time must be deflated in order to get back to sound economic growth. All of this activity poses a threat to the dollar.
Governments are very powerful, and when in partnership with the monetary authorities that can inflate the currency at will, big government thrives. Welfare demands and senseless wars can be financed for long period of time through inflation, as long as trust in the currency lasts. Trust, though ultimately controlled by facts, can be misleading, since currency values can gain benefit from a country that has a strong military and wealth and a reasonably healthy economy. Eventually, markets and reality overwhelm, and illusions about a currency's worth become a reality.
Today, reality is setting in and the first of three major events has begun. The worldwide financial system, built on a foundation of paper, has received the shock waves of an impending collapse.
The wild speculation and the derivatives market, the stock market bubble, the insurmountable debt-public and private-and the massive mal-investments have been shattered.
The only solution so far offered worldwide, but led by the United States, has been to "print money" faster, keep interest rates low at practically zero percent, and remove all stops for controlling deficits. These are the very policies that caused the disequilibrium, and doing more of the same, but only faster, can hardly help our economy. The addiction to easy credit and deficit defies a wise political solution. Politicians are incapable of delivering the message of frugality, common sense, and sound money.
We can expect that the course we are on to continue and accelerate, since the first event, the collapse of the financial system, is still in its early stage.
The housing crisis is far from over; the commercial property crisis has not yet gotten much attention, and the financial obligations of the government are growing exponentially. And none of this forces the slightest pause in the expanding of welfare growth. The number of regulations, which are indeed a tax, are exploding though the market was already suffering from regulatory excesses. There's a consensus in Washington that "wise" regulations can compensate for all the mistakes made by the Federal Reserve, the Executive Branch, and Congress. This fallacy has been around a long time and will be difficult to overcome.
The pessimism of the middle class continues to get worse despite the prognostication of Wall Street and the Administration. Most Americans know that the standard of living and real wages have not gone up for the past 10 years. If you're not a shrewd stock trader and instead invested in stocks 10 years ago and held on, in real terms you would have lost 20% of your savings. The middle class is poorer also because house prices have crashed and many have lost their homes. On top of this, all we hear about is the trillions of dollars of debt and entitlement obligations that have been racked up for future taxpayers to pay. When it is revealed that the insider friends of the Fed and Congress get billions of dollars in bailout at the expense of the middle class, it's no wonder the people are taking to the streets and directing their hostilities toward both Republicans and Democrats in Washington. Many would agree it's well-earned anger and properly directed.
This anger and frustration will certainly grow as the consequences of the collapse of the financial system become more severe. The concerted effort to prevent the correction the market demands, guarantees a prolonged agonizing crisis. Every effort to reverse the tide will depend on spending, higher deficits, increased taxes and money creation. This effort is now providing another grand bubble: the dollar/bond bubble.
The next event will be a dollar crisis. A full-blown dollar crisis will be worse than our current financial crisis. The extent of a dollar crisis depends on whether or not the Washington politicians wake up and change their ways-a dubious hope.
More likely, the insanity will continue until some not yet known event will undermine the confidence of the dollar worldwide. Signs of less desire by foreigners to hold our dollars are already present. I'm certain our Treasury and Federal Reserve are pulling out all stops to prevent a massive run on the dollar. At present the "orderly" retreat from the dollar is working. But it won't last.
China is quite active in investing in natural resources around the world, and including in Iran. While we live in the dark ages and believe only our military presence and military threats can protect our access to oil, China is actually spending some of their savings investing in their future access to energy and other precious metals and minerals.
But the orderly retreat from the dollar won't last forever. Since 1973, shortly after the breakdown of the Bretton Woods Agreement, the dollar has lost 32% of its value against a Federal Reserve basket of currencies. But that doesn't tell the real story, since that is a measurement against all other currencies, and they are fiat currencies as well. This gave the dollar an artificial benefit from its position of power in great wealth and military prowess. The dollar in relationship to gold, however, is down 97% since 1971, and 82% as measured by the CPI. The dollar, mismanaged by the Fed, has not been a benefit to the savers who sought to responsibly take care of themselves. They've been cheated by a rotten system and are just beginning to understand exactly how the Federal Reserve has been responsible for the swindle.
It is impossible to predict the time when confidence will be lost, but it can come quickly. Resorting to buying other paper currencies will not be of much help. When the dollar crashes, most likely the purchasing power of all currencies-since all countries hold dollars as a reserve-will go down as well.
This means that dollars and other currencies will go into buying consumer items, precious metals and other physical properties. Consumer prices will soar, as well as interest rates. The central bank will lose control; and the more they inflate, the worse the confidence becomes. The interest rates will respond to these efforts by rising sharply.
If the Fed tries to reverse the run on the dollar, interest rates will also soar, and the pain on the American citizens will be of such proportion that political chaos will result. Either scenario leads to political and social chaos-the third event, and the most dangerous.
With no ability of the federal government to fund its commitments, international or domestic, major changes will occur in our system. The social unrest will elicit cries for government to exert unusual force to head off a complete breakdown of law and order. The ultimate trap will be set for a system of government claiming to protect a free society. If more power and police authority are not given to the federal government, it will be argued that only anarchy will result. If more government policing power is given, it will mean a lethal threat to civil liberties. Already we have permitted the notion that a single person, the Attorney General or President, can decide who is an "enemy combatant", thus denying that individual the right to habeas corpus, permitting indefinite detentions without charges made. This attitude toward civil liberties has changed significantly since the fear built around 9/11.
Yes, I know declaring one an "enemy combatant" is reserved for the radical Muslims engaged in terrorism against the United States. To be reassured by this reasoning is quite dangerous and naïve. Logic should not lead us to equate suspects with terrorists, and include American citizens, and yet this has already been set by precedent. Under difficult circumstances, our political leaders will not be hesitant to use these powers to maintain order. Tragically, the people may even demand it.
We are rapidly moving toward a dangerous time in our history. Society as we know it is vulnerable to political and social chaos.
This impending crisis comes as a consequence of our flawed foreign and domestic economic policies, a silly notion about money, ignorance about Central Banking, ignoring the onerous power and mischief of our out-of-control intelligence agencies, our unsustainable welfare state, and a willingness to sacrifice privacy and civil liberties in an attempt to achieve safety and security from an inept government. Dangerous times indeed!
What can be done about it? Must we wait for the inevitable and expect to restore our liberties in a street fight against the overwhelming power of the state? Not a good option!
The only way that we can prevent blood from running in the streets is to offer a better idea of the proper role of government in a society that desires first and foremost -liberty.
And that is impossible without a firm commitment by our thought leaders to the ideas of freedom, the source of all creative energy and prosperity. An all-powerful state is the threat to that ideal.
The prevailing attitude of the people-as it once was in early America-must be that of liberty and self reliance, rather than the nanny state and dependency relying on government force to mold all private choices.
If this is understood, a smooth-although not painless-transition to a free society is achievable. Ignoring this option will be very destructive to everything that is dear to the hearts of most Americans.
What is it that we must do? We must immediately embark on: • Balance the budget by reducing spending • Change our foreign policy to that of non-intervention • A full audit and more supervision of the Federal Reserve leading to abolishing the Federal Reserve • Legalize competition to the Federal Reserve with competing currencies • Regain respect for civil liberties and privacy while reigning in the CIA • Wean ourselves off the dependence of wealth transfers by government • Abolish crony capitalism-no subsidies, no bailouts, no regulatory or tax privileges to protect the powerful elite, especially the military industrial complex • Eliminate the income tax, inheritance tax and taxes on savings and dividends.
None of this can happen without the restoration of Congress to its dominant position of the three Branches of Government as was originally intended by the Constitution. The Executive and Judicial must be reined in, and Congress must assert its prerogatives over all legislation curtailing all unconstitutional agendae through budgetary controls.
Signs abound that angry Americans are now more ready than ever before for a change in direction that is indeed real. If this program were improvised-even suddenly and dramatically-the adjustment, though significant and to a degree somewhat painful, would be much shorter and of minor consequence compared to the chaos and poverty that will result if we refuse to change our gluttonous appetite for a free lunch.
I cannot begin to express how thankful I am for Dr. Paul. I think that he would be the first to tell us that it's not about him because that's how he is. It is about the message and he delivers it constantly. Whether popular or not, Ron Paul speaks with principles behind his words. He is consistent and while there can be healthy debate about his desires, which I believe he would encourage, I am so impressed with how devoted he is to history, foreign policy, economics, liberty, and the people of this nation. Mr. Obama may be my president but Ron Paul is my leader. He opened my eyes...
• Balance the budget by reducing spending.
• Change our foreign policy to that of non-intervention.
• A full audit and more supervision of the Federal Reserve leading to abolishing the Federal Reserve.
• Legalize competition to the Federal Reserve with competing currencies.
• Regain respect for civil liberties and privacy while reigning in the CIA.
• Wean ourselves off the dependence of wealth transfers by government.
• Abolish crony capitalism-no subsidies, no bailouts, no regulatory or tax privileges to protect the powerful elite, especially the military industrial complex.
• Eliminate the income tax, inheritance tax and taxes on savings and dividends.
...And adherence to the U.S. Constitution.
Posted 01/21/10 8:31 PM Lawful Money Woodstock, GA
Thank goodness they got rid of those silly annoying stupid sound effects at the beginning of Ron Paul's videos. This looks significantly more professional,presidential, and authoritative...
It's a great video, although some of it appears to be missing at the end of part 1 or beginning of part 2. The part that is missing is in the transcript:
"That correction is now in its early stages. Since the dollar was the reserve currency of the world and totally fiat since 1971, without any linkage to gold, the financial bubble became worldwide. This bubble that burst in 2008 was the largest in history. During the formation of the bubble, the U.S. as the issuer of the world currency received undeserved benefits. We essentially became the counterfeiter of the world and no one called us on it. Even today, the trust in the dollar that persists has buffeted the pain of the correction for us. This unique setup was a prime cause for our balance of payment deficits"
Here's an idea. Why not help support getting the word out by buying TV air time. The media won't cover these important issues. I'm tired of the American voice being cock blocked at every turn. Our government has been over run by maniacs. It's high time we remove these people and defeat their socialist ideals. By any means, if necessary. Desperate times call for desperate measures.
Posted 01/22/10 01:47 AM RomanRepublic Hicksville, NY
I think it is good thing that Ron Paul is using a teleprompter. Unlike most, I am sure he fully agrees with everything that was entered into the teleprompter. If Obama's presidential campaign has told us anything, it has told us that teleprompters work well. Fire needs to be fought with fire. I am not saying to get down in the gutter with these people, but simply to employ some of their own tactics against them.
Posted 01/22/10 01:48 AM RomanRepublic Hicksville, NY
Note: By "these people" I meant corrupt politicians and the like.
Posted 01/22/10 10:06 AM Jon Champaign, Urbana, IL
This text is missing twixt 1 & 2, what happened?:
"That correction is now in its early stages. Since the dollar was the reserve currency of the world and totally fiat since 1971, without any linkage to gold, the financial bubble became worldwide. This bubble that burst in 2008 was the largest in history. During the formation of the bubble, the U.S. as the issuer of the world currency received undeserved benefits. We essentially became the counterfeiter of the world and no one called us on it. Even today, the trust in the dollar that persists has buffeted the pain of the correction for us. This unique setup was a prime cause for our balance of payment deficits..."
Thank you again Ron Paul for a preview of things to come.
Our PhD Doctors of decisions. (Shown to be imbeciles at best)
Denial of the truth is putting it in very light terms; you have to be able to recognize first what truth is.
The real cause: I could put a huge list here but I am only going to list not what is in place but what is not in place.
No verification or validation of products or the lack of period.
There is only one aggressive interpretation, the buying of power from those so eager to sell it like a commodity.
The banking cartel must be held accountable for their actions; until this is done the beatings will continue.
The massive debt is a ploy only to gain control.
Common sense died with the practices of our present education system and entire false claims added to keep us from reaching any real goal. This is recorded back in time from the infancy of education itself.
You can be assured as the results we see today are from what was done that there are results coming tomorrow from things done today.
Exposing the insider friends of the Fed will be our victory and with out it our total demise.
The dollar and the bond bubble are the direct creation of these so called friends and the entire intention is for the dollar to crash.
Politics: a way to have disputes without resolutions.
Intelligence agencies, there is no such thing in our country because you would have to know completely what intelligence actually refers to and these people do not, they work off an idea of authority which is made up.
As the words I hear so willingly communicated in our country that our Democracy. This being the very point which the intent is directed which in terns only leads to Oligarchy which ultimately fails and kills itself.
It is a Republic that is missing and must be clearly defined if we are to have Government at all. It should be made known to all as the Rule of Law and mandated by nature itself, not of man made laws which are corrupt and can be seen as made up. This means we have issue with our present Constitution and its continuous miss interpretation that must be corrected in clear terms and understood by all those who choose to agree to these terms. These should then be presented at our basic education level as applicable in our very lives and our understanding in how to use them.
With out them you can see very clearly how it can go so very wrong.
'Jobless recovery' is an euphemism for 'depression.'
Very fine speech....I would have liked him to note that at the core of prosperity and rising standards of living is the requirement of abundant and inexpensive energy produced by policies of abundance rather than the establishment policies of scarcity.
How rare to read and hear a politicians speech which contains substance!
I thought the same thing about the tele-prompter. He is obviously uncomfortable using one. Maybe Mr. O can give him lessons! If you have not already seen it, go to youtube and search for candidates @ google. Compare Ron Paul, Obama and McCain - Ron is at ease, speaks with knowledge and conviction- definitely no teleprompter! The other 2, well- business as usual, rhetoric ad nauseam
Posted 01/22/10 5:24 PM BruceKoerber Cedar Rapids, IA
http://destinyofamerica.blogspot.com/
Friday, January 22, 2010
State Of The Nation By Our Greatest Statesman!
What is the truth about our State of the Nation? Listen to the non-partisan voice of our great Statesman - Ron Paul. Below are excerpts that truthfully emphasize what Americas will have to endure in the near future.
". . . Today, reality is setting in and the first of three major events has begun. The worldwide financial system, built on a foundation of paper, has received the shock waves of an impending collapse. . . ."
"We can expect that the course we are on to continue and accelerate, since the first event, the collapse of the financial system, is still in its early stage. . ."
". . . The next event will be a dollar crisis. A full-blown dollar crisis will be worse than our current financial crisis. The extent of a dollar crisis depends on whether or not the Washington politicians wake up and change their ways-a dubious hope. . ."
". . . More likely, the insanity will continue until some not yet known event will undermine the confidence of the dollar worldwide. Signs of less desire by foreigners to hold our dollars are already present. I'm certain our Treasury and Federal Reserve are pulling out all stops to prevent a massive run on the dollar. At present the "orderly" retreat from the dollar is working. But it won't last. . ."
". . . This means that dollars and other currencies will go into buying consumer items, precious metals and other physical properties. Consumer prices will soar, as well as interest rates. The central bank will lose control; and the more they inflate, the worse the confidence becomes. The interest rates will respond to these efforts by rising sharply. . . ."
". . . If the Fed tries to reverse the run on the dollar, interest rates will also soar, and the pain on the American citizens will be of such proportion that political chaos will result. Either scenario leads to political and social chaos-the third event, and the most dangerous. . ."
It is time to educate ourselves about classical liberalism. We will need to rebuild our society and the principles of liberty and justice and prosperity will be very valuable to that process.
Posted 01/23/10 02:00 AM danielvalley Bangkok, Thailand
if those Banksters start acquiring assets to preserve their "wealth", they will LOSE, just like everyone else...
That puts the members of the IMF in an advantageous position.
Because the bank assets are denominated in sdr.
"The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR, serves as the unit of account of the IMF and some other international organizations."
http://www.imf.org/external/np/exr/facts/sdr.htm
What I see is a manipulation of reserve accounts at the IMF to favor and augment trade for favored partners of the banks preference via a future 'international clearing union'.
The path is being made for this:
SDR-denominated tradable financial instruments
But only for 'sovereign wealth funds'.
By all means, please contribute any insight you have to my meager advances.
You may argue that the sdr is a basket of currencies, it will float with the value of combined values in its make up. The advantage is the value will change at a slower rate than an individual currency. Still it is susceptible to the effects of swings in infla/deflation......
however,
"it will float with the value of combined values in its make up"
"To combine the advantages of multiple and single currency systems, a basket-based reserve system, perhaps built on the IMF's Special Drawing Rights (SDRs), could be envisaged. The SDR is not a currency; it takes its value from its constituent currencies (currently, the US dollar, euro, pound sterling, and yen, but the basket is periodically reviewed), and this makes it more stable: if one of its constituent currencies depreciates, the share of the others in the basket rises proportionately, dampening the volatility of the basket. However, for the SDR to take on such a significant role, its liquidity would need to increase massively. While an increase in demand (from BRIC central banks) and supply of SDR assets (from the Fund) have recently materialized, the scale remains limited-about 4 percent of global reserves. Generating a liquid SDR market of the size needed to create a new reserve currency would be a major undertaking."
Generating a liquid SDR market of the size needed to create a new reserve currency would be a major undertaking
"The general allocation of SDRs should be extended through supplementary mechanisms.
France is extremely pleased with the 250 billion-US-dollar general allocation of SDRs, supplemented by a special allocation totaling 32 billion US dollars. France also welcomes the commitment by several countries, among them the United States and China, to take part in the voluntary trading arrangements for SDRs. France urges as many countries as possible to agree to such arrangements with the IMF in order to ensure adequate liquidity in the SDR market. At the same time, ways and means for enabling the poorest countries to benefit most effectively from the allocation of SDRs should be explored."
http://www.imf.org/External/AM/2009/imfc/statement/eng/fra.pd f
furthermore....
"Volatility suppression is the primary reason for the sdr, imo, only the privileged can participate in this arena"
It is not the primary reason, imho. The sdr quotas are assigned by the IMF and relate to trade positions and voting rights for member countries. If one falls below the quota level by drawing on hard currency, one is tasked with interest payable to the IMF. Will this be a deflationary mechanism if interest rates increase (which they are now at historic lows).
The system will be used to control export and import of member nations.
The IMF assigns these quotas by creating sdrs by fiat decision of the IMF council.
The IMF is like the Fed on steroids and with a bad cocaine habit.
IMF is the new world government then, yes?.....but not new.
Ron Paul : what can one say? You are the final, but bright, beacon. Nothing less.
A small, but important comment on this video, if I may. Our man, Dr Ron Paul, has quite excellent speaking skills. All his video posts, or when he speaks to the press on TV, are well done. He finds the right words, and in his classic style, it is in plain, direct English. Without overdone emotion, or getting personal. A gentleman. Okay, we know this and agree. He has his style which is simultaneously erudite and approachable. A thinking man for everyone. An intellectual in everyday clothes. Okay, enough. We agree and know.
Now, however, please note the tremendous change with this video in terms of his delivery. To say that it is a change is an understatement. Frankly, it was terrible. It made me literally dizzy, as our man 'sang-song' so obviously off of the card. This really should not continue. This was a disaster, as it came across as so unprofessional (from a public speaking perspective, I mean). Dr. Paul, if you can read this: please continue to deliver your message in the manner that suits you best. This method does not. It looks and sounds terribly canned.
Please note that I am an avid supporter of you, and your tenats. So, please take my observation for what it is: it's just about this method of message delivery that suddenly and fantastically changed, out of the blue, on this State of the Union video. It just doesn't work. Is there some way to get more professional advice on how to use the teleprompter, or, just forget it altogether. You don't need it. You have everything in your head, as you are brilliant. Perhaps this was just a little experiment by your handlers. Tell them to take a walk.
I note that I am not the only one who noticed this poor teleprompting sing-song (monotone/childish) delivery. None of us want you to sound like the idiots in Congress. Stick with what you know and do best. You are the king. You are going to win in 2012, I am sure. Good luck. You are a man of honor, and deserve every minute of your growing respect, now outside the tight core of libertarians, and into the mainstream....
Mr Paul is right on many things. Unfortunately the US problem id socio-psychological. I explain.
The hiperarticulate critics like Ralph Nader, Naomi Klein, Michael Moore, Noam Chomsky and many in the media have succeeded in thoroughly discredit the manufacturing industry and manufacturing business people.
From a few examples of companies behaving badly, although not nearly as bad as companies in other industrial countrie, they have build an image of industry as greedy polluters, basically as if it was an illegitimate activity.
Sure GM made a mistake with the Corvair (although it was far safer thatn the VW beetle also sold at the time).
Sure the obacco companies did bad things. Sure some chemical companies did pollute, although mostly unaware it presented a danger.
The result is that many bright people in the US do not want to be manufacturing entrepreneurs or engineers. Industrial workers are no longer proud to work in an American company.
To work for Toyota may be OK, after all is not American and trounced Detroit.
o their
I mean, even the pharmaceutical companies are presented as terribly inmoral Never mind thanks to them millions of people are alive in the US and around the World.
It is sick and stupid the current state of public opinion. It only makes America poorer because without manuafacturing it is not possible to have a high standard of living in any large country and wothout that forget about high level social services.
So American hypercritics must be neutralized with lots of writing exposing them, movies and so on. Business must spearhead this effort because its survival is at stake.
Another problem is the MBA culture of running business; teaching graduates basically short term financial and marketging tricks. Not many MBAs in the Japanes and German companies that beat US companies.
Yes, for the time being we have Boeing, Caterpillar and the new hightech sector, specially software (hardware is made in China or Japan (the fancier).
In Europe it is almost impossible to find products made in the USA. Just Caterpillar and Boeing. All consumer goods come from Japan or China.
The US is suffering a real "brain drain", the brains of American are sucked dry. Today in the US is more attractive to be anything but an industriakist or work in industry.
As long as industry is so discredited and the nation is run by talkers, not doers, the US is doomed. No matter waht Bill Gates and Warren Vuffet says. For the time being Buffet is buying railways, basically because they can n ot me noved to China. Even in the poorest countries railways are a safe investment. Buffet does not have much trust in US manufacturing.
Perhaps Ron Paul needs to expand his message. We need a sort of Reagan able to trounce the hypercritics.
Posted 01/24/10 02:19 AM fredricwilliams Seoul, Korea (south)
It has been some months since I last visited this site. I came to the website in search of intelligent people who believe that freedom is essential to the well-being of people. I sought people who are thoughtful and active in advancing the cause of freedom in our own country and around the world.
While I have found some intelligent and reasonable individuals on this site, I stopped visiting www.CampaignforLiberty.com because the authors of virtually all the selected essays seem so shallow in their knowledge and so limited in their capacity for reasoning. They are followed and commented on by cheerleaders who repeat the same slogans -- much like the sheep in Orwell's "Animal Farm".
Far too many of the active participants here have opinions which are fixed and unmovable. Their views are so perfectly established that neither facts nor reason can budge them. Essayists and commentators turn to some historical document which they interpret to fit their opinion or to some economic theory which, like most theories, works well in an academic environment but fails quickly when forced to address the world as it exists.
The impolite word for this is "schizophrenic" -- imagining a world which is not the real world and attempting to live in this imaginary world.
So, while I am in agreement with many of the criticisms that are made of our current government, I find the solutions proposed here to be naive and impractical. They are made by people who either lack experience in governance or who are unable to benefit by their experience.
Dr. Paul has been in the U.S. Congress for nearly twenty years. In all that time, has he convinced the Congress to take action to correct the problems he rails against? Even his innocuous bill "to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported" -- something 75% of the House has paid lip service to (co-sponsored) -- what has the introduction of this measure actually achieved? Why, as we approach a year after its introduction, is it not law?
I agree with the view that our economy is far from healthy, and that the centrally managed socialism which guides our government is a philosophy which is unlikely to improve things in the long run. However, most of the short-term actions taken in the past two years have been attempts to undo the damage caused by earlier attempts to manage the economy.
In the current environment, we are driving on ice, and while Dr. Paul might think it would be best to drive in a straight line -- generally a wise approach to getting where you are going -- perhaps he has forgotten that the best policy on ice is to steer in the direction of the skid. The fact that others agree with him -- and argue for letting the skid continue until we are in the ditch -- this will seem wise only to people who are not in the car. Most people are in the car.
Behind Dr. Paul's reasoning there are facts. Dr. Paul observes that the value of the dollar has dropped 32% against other currencies over the past 37 years -- then tells us that this really doesn't tell us anything. He shifts to argue that the change in the price of gold (97% since 1971) is the real measure.
No, it isn't. The price of gold in 1971 was fixed by law, not by any market. Nixon's decision to abandon the promise to pay other countries (not individuals) with our limited gold supply (too little to pay all the claims that other nations might make) led to spectacular inflation in the U.S. What seemed quite reasonable to Nixon (and others) proved quite disastrous to the economy.
During the 1970s it was very easy to increase one's wealth. Knowing that inflation was running at high rates, an intelligent person borrowed money and invested in highly leveraged tangible assets. I bought residential property and made enough money to retire.
Dr. Paul whines that "The dollar, mismanaged by the Fed, has not been a benefit to the savers who sought to responsibly take care of themselves. They've been cheated by a rotten system and are just beginning to understand exactly how the Federal Reserve has been responsible for the swindle."
Those who are just beginning to understand should not blame others for their ignorance. While there are certainly foolish people who save dollars and do not invest them in productive assets, such people surely should not be described as seeking "responsibly to take care of themselves." It would be more accurate to say that they are ignorant people who were unwilling to pay attention to reality and too lazy to learn about the financial system or the value of currency.
Those familiar with the parable of the talents in the Bible will understand that if you bury your money in the ground (or stick it in a bank), you deserve to lose it. We have had inflation, as Dr. Paul knows, for more than 70 years -- and inflation has been a characteristic of every national currency since the beginning of recorded history.
Savers who are not investors are fools. Had they invested wisely at any point in time, they would have all their savings and more. A fool and his money are soon parted. This is the way it should be. We have no need for rich fools.
As for the relationship between the dollar and gold since 1971 (down 97% by Dr. Paul's calculation), this is meaningless. No individual could buy gold at the artificial price fixed by the US government. It had been just over $20 an ounce for a century before FDR raised it to $35 for paying dollar debts to other countries.
Counting from any such point should remind us of the old joke -- bananas are 5 cents a bunch, but, yes, we have no bananas.
As for the market price of gold, historically it fluctuates around the point described some decades ago by Professor Roy Jastram at Berkeley as one ounce of gold being the price of a good men's suit. The purchasing power of gold today is less than half of what it was at its peak in 1980, when fears of inflation (there had been considerable inflation in the previous decade) produced very high prices.
Today, while people fear inflation, anyone who looks at the price of housing or commercial real estate -- or even stocks (today they are where they were a decade ago) might more reasonably fear deflation. Deflation is a terrifying prospect -- businesses close, people lose their jobs, and creditors (savers) do not get back the money they have loaned to others (including banks). Those who hold cash (not buying anything, not hiring anyone) destroy the economy -- and increase their wealth.
Without the bank bailouts last year, savers would have lost their savings, due in part to the deflation in housing prices and in part due to the practice of fractional reserve banking and long-term lending on short-term deposits.
So, while I admire the theory behind much of what is said on this site, I reject the impracticality. Dr. Paul is a smart guy. He should know after nearly forty years of active participation in politics and twenty years in high office that the solutions he proposes are unworkable.
To be effective, we must deal with the real world.
Until then we cannot contribute to the solution, we can only contribute to the noise.
Posted 01/24/10 10:13 AM danielvalley Bangkok, Thailand
Real justice? Yes, the criminals at the FSB are the ones I’d start on first. Then the others would be easy pickings.
Posted 01/24/10 10:17 AM danielvalley Bangkok, Thailand
The big boys are reforming the international financial system. ‘Shadow economic warfare’ is a way of saying ’survival’ which is about all one is to be able to do in America once Obama has his way with us.
He can stick “our democracy” up his *sscrack.
get our nations out of the UN and the IMF,Else, we all adjust ourselves whilst those banksters that sat around the fire cozy-like in Canada last week regulate the world into the dark ages.
No risk, no opportunities, no kidding.
The US economy is headed for a complete breakdown. There will be social chaos worldwide. The criminal bankers who engineer the fraud called “banking regulation” are using the scheme to consolidate monopoly interest for those who consider ‘human’ in different terms than I do. These new terms will be foisted upon the world. The wars will not cease: they are fought with the sanctimony of our ‘global peace agency’. The colonization will not cease; it is to be perfected with the introduction of the ‘international clearing union’. The genocide will not cease: Africa is under a pernicious ‘humanitarian’ umbrella.
Those who are able now to fight against this future tyranny instead prefer to run to Mama Nostalgia and suckle at her large and preposterous bosom. Enjoy!
Ron Paul's solution to our crisis is clearly stated:
"If this is understood, a smooth-although not painless-transition to a free society is achievable. Ignoring this option will be very destructive to everything that is dear to the hearts of most Americans.
What is it that we must do? We must immediately embark on:
• Balance the budget by reducing spending
• Change our foreign policy to that of non-intervention
• A full audit and more supervision of the Federal Reserve leading to abolishing the Federal Reserve
• Legalize competition to the Federal Reserve with competing currencies
• Regain respect for civil liberties and privacy while reigning in the CIA
• Wean ourselves off the dependence of wealth transfers by government
• Abolish crony capitalism-no subsidies, no bailouts, no regulatory or tax privileges to protect the powerful elite, especially the military industrial complex
• Eliminate the income tax, inheritance tax and taxes on savings and dividends."
I believe these recommendations would constitute a very fine start and would not characterize them at all as 'naive.'
You have been critical of Dr. Paul's efforts over the past twenty years....I am tempted to ask, "What have you done to advance liberty in the last twenty years?"
I do note that you have spoken of a time when it was very easy to increase one's wealth. We now live in the mirror image of that age...an age in which the most likely experience of Americans going forward is going to be impoverishment. Both of these times are the result of government interference in the economy, picking winners and losers, and taxing income and assets with the power of inflation.
There are only two possible outcomes of this age.
1) Either we accept and move in the general direction recommended by Dr. Paul, or
2) we will be subjected evermore to the international interventionism and tutelary fascism which has become popular and even celebrated by its beneficiaries.
The inflation/deflation debate is quite interesting.
At the same time that almost all nations are increasing their money supply, running printing presses in overdrive and so forth...they are at the same time creating an artificial contraction in private credit. The net effect of these policies will be to create ever narrower concentrations of wealth and ever wider distributions of poverty.
Those who have lost their jobs, lost most of the value of their retirement accounts, and lost their homes...do not have a lot of spare cash on hand with which to invest and start new businesses. This must be left to others, like yourself.
I read your entire comment carefully and frankly was looking at the end for your 'workable solutions.'
The IMF is working to substitute sdr for dollar as new reserve currency. There is a plan.
“At the heart of the institutional structure of global financial governance is the IMF, with virtually universal membership and a mandate to create rules that govern cooperation to ensure the stability of the international monetary system. At the same time, the IMF has also the mandate to promote–through its surveillance function, policy advice, financial support, and technical assistance–policies necessary for domestic financial stability and sustainable growth. No other multilateral organization within the global financial structure has the legitimacy of the IMF. Even when other powerful multilateral organizations press for global rules, they tend to channel them through the IMF in order to benefit from its legitimacy. Efforts to fight money laundering and the financing of global terrorism are only two recent examples.
Up to the mid-1980s, the IMF and the World Bank had, by today’s standards, relatively clear and distinct mandates. Since then, however, globalization and the dynamic changes fueled by technological innovation in increasingly open markets have forced the two institutions into unprecedented patterns of adaptation. At present, the World Bank is primarily concerned with poverty alleviation, economic development, debt relief, and transfer of financial resources; while the major concerns of the IMF are economic and financial stability in the domestic economy of member countries as well as in the international financial system. Thus, both institutions face a much-expanded agenda of responsibilities that are broader and deeper than their original mandates of monitoring macroeconomic performance and making specific loans.”
“The International Monetary Fund said it’s possible to take the “revolutionary” step of creating a new global reserve currency to replace the dollar over time.
The IMF’s so-called special drawing rights could be used as the basis for a new currency, First Deputy Managing Director John Lipsky told a panel discussing reserve currencies at the St. Petersburg International Economic Forum today.”
This sounded terrible. His usual conversational tone is gone, and it sounds very much like he is reading, as he probably is, which if I didn't know better would lead me to believe his grasp of the subject(s) is not as strong as I know it to be.
Would definitely seem better if there wasn't a video component. It would seem less obvious that his attention is on a text rather than on the ideas and the subject being discussed if you couldn't see his manner, although it got better as the speech went on.
None of this is intended to detract from the actual content or the man himself, of course.
I think we need to Impeach Obama and elect Dr. Paul. go to www.impeachobamacampaign.com . they have over 100,000 signatures and Growing by the Day. Great job Ron.
The forces of tyranny and oppression are gathering.
Their armies of despair await for the call to launch the final assault to end individual liberty.
The message of freedom is our rallying cry.
Thank you, Dr. Paul.
Posted 01/27/10 08:59 AM danielvalley Bangkok, Thailand
Looks like the G30 is whispering in Frank’s ear:
“Among the 18 specific recommendations made by the G30 was to limit the size and scope of banks by prohibiting them from managing hedge or private equity funds. The report also calls for the operation of major mutual funds as commercial banks, which would subject them to increased government oversight, and for venture capital groups and rating agencies to be subject to increased government regulation.
The proposal also suggests that the U.S. government should clarify the status of Fannie Mae and Freddie Mac, by either making them government agencies or regulating them as independent mortgage brokers.
“We hope that our proposals, which explicitly relate to the weaknesses that have become evident in the financial system over the last year, will be a useful contribution to the debate about needed reforms both by private financial institutions and by public authorities,” said Volker.”
Posted 01/28/10 03:48 AM pschoch9485 San Marcos, TX
He's the only one willing to do what this country needs to get back on track. I do hope he decides to run in 2012. We need you Ron Paul.
Posted 01/28/10 10:09 AM fredricwilliams Seoul, Korea (south)
In response to MichaelBarry:
I think we are in agreement about the problems, but may see the solutions in a very different way.
I have no quibble with Ron Paul's theory about what might be best in an ideal world, but simply with the practicality of implementing it. I do not consider his effort a failure, since I believe no one could succeed on the course he has laid out. Neither he nor I are in a position to accomplish any of the things he believes might move us toward a free society.
What he, and most of us who believe liberty is best, rail against is a direct result of modern democracy. Its reversal, while one might like to see it, simply won't happen. Marx saw this as inevitable a century and a half ago. Sad to say, so did his opponents. He expected universal suffrage would bring about the socialist state, and so it has.
I don't think we can turn the ship of state around. I prefer the lesson taught by some martial artists. Let the power of the state be used to cause its fall. Oddly enough, even Marx would agree that this is the ultimate result.
The opposite course would require immense force to defeat the power of millions of people getting state welfare. Nearly none of them would be willing to give it up. Ask folks if they would agree to end social security, medicare, or medicaid. Ask those getting unemployment checks or food stamps -- millions more. Even among libertarians, most receiving a government check would surrender it only if forced to. We don't have the power to force millions to give up the system they believe sustains them. Even if we could, the result would not be what Dr. Paul may wish -- it might easily lead to a new tyranny as the disfranchised seek a new savior and at a minimum might cause immense economic dislocation -- poverty worse than anything we have seen in a century.
Long ago I concluded that we might best win by accepting the government's desire to manage the world and then find a way by which the implementation might result in a great increase in freedom. To me, the simple solution is to privatize government operations -- to take everything that the government does and create a private company to do it under a very specific kind of contract.
Once management is out of the hands of the politicians, and ownership of the company vested in individual American citizens, it might be possible to unwind the mess.
This is a short explanation. The long and detailed one would require a book. The essential idea, however, is that free enterprise can do what government does for half the price -- and that the benefits of this savings should go directly to the citizens of the country. Once this process begins and cash begins to flow to stockholders in the nation's "government operations" enterprise, it will be possible to guide the country away from bureaucracy and waste.
After that, perhaps the politicians can be persuaded to adopt policies conducive to the public weal -- not to what looks good to contributors. The power of the corporation can lead to a better informed electorate, and its success can help convince people of the value of free enterprise once again.
As for me, I have worked for peace when the opportunity presented itself and worked to educate national leaders on economic development when asked to do so. I invested my capital in solving this economic problem nearly thirty years ago, when it was beginning under Ronald Reagan. I have no other business and no other goal.
The solution to correcting our course requires a crisis and a leader willing to change directions. We have the crisis. We even have a leader committed to change. Hope springs eternal in the human breast.
FDW
http://fredricwilliams.freeservers.com
Posted 01/29/10 11:09 AM Blaise61 Silver Spring, MD
Fredricwilliams: I’m very confused by your posts. You state that the reversal of the expansion of government (modern democracy) is what is desired but that “it simply won’t happen”.
I’m not sure that it won’t happen, but do believe that it will be very difficult to bring about that change because the Federal Government will not give up its power and authority easily.
You say “To me, the simple solution is to privatize government operations -- to take everything that the government does and create a private company to do it under a very specific kind of contract. “
“Once management is out of the hands of the politicians, and ownership of the company vested in individual American citizens, it might be possible to unwind the mess. “
It seems to me that in order for private companies and individual American citizens to gain control of powers and authority currently held by the Federal Government, the Federal Government will have to willingly cede that power. I cannot find an example where a Federal Government (especially the U.S.’s) has done that in the past. Can you provide one?
“The solution to correcting our course requires a crisis and a leader willing to change directions.”
Or are you saying that it will be by the results of this crisis, that we’ll be able to persuade our political leaders to cede their power and authority (back) to the states and the People (i.e. private enterprise)?
If so, what is it about this current “crisis” that makes you think that will happen? And who is the leader you refer to that we have that will do this? Because wrote “We even have a leader committed to change”, I thought you meant President Obama, but his “change” does not appear to be a move from Big government to private enterprise, but in fact one toward Bigger government and less private enterprise.
i agree with much of what Ron Paul says - except that i feel the dollar crisis is unavoidable at this point rather than dependent on political choices (the paper has already been lost to bad investments that cannot be redeemed) i share his concern about political chaos (much of the rise in hate groups i feel stems from this economic crisis, not ... See Morehaving the first president of color) the last melt down of the world economy resulted in world wars & it's important that we look to real solutions during this crisis since it's going to be getting worse
where i disagree with him is in his view that there is a way to manage these 'inevitable corrections' that would reenergize the economy back to 'sound economic growth'... i don't like the Fed any more than he does - but the problem with our monetary system is a systemic one. this expansionary model we've based our financial system on is not sustainable - it was profitable when europeans were coming to a new world to exploit vast new resources & labor populations - but there is no more new world to exploit & we need to re-examine how we think of money. $s aren't going to go away overnight - but we need to create new currencies that are sustainable until the current system fades into history.
money should function for the trade of goods & services not for the speculative growth of new money (which is what over 95% of all $ transactions do)
money can be thought of as a utility - it needs to keep circulating to keep the society healthy & instead of having pyramid schemes like the stock market to artifically expand the currency pool - we need to stimulate the use of money in exchanges in the community and build a sustainable monetary system instead of a growth economy.
http://www.facebook.com/notes/jill-harrison/sustainable-economic-pro ject-for-baltimore-city/240623730037
has an example of what i'm talking about
Posted 01/31/10 02:19 AM zretrareo27 Lancaster, OH
Absolutely awesome. WE NEED RON PAUL for 2012!
Please!
America is at war on several fronts. However, the war that will do the most damage to our country is an economic war, and we're loosing. Our government, not to mention the majority of American citizens, repeatedly fails to even recognize that we are in an economic war or to see the damage to our society that we are sustaining due to it.
It is heartbreaking that extremists would target our country for terrorist acts, but their effects are small compared to the damage we sustain by neglecting our economic health. We spend trillions on our military to protect our shores because Saddam and bin Laden were plotting to invade Iowa?
No, instead of striving to be smarter, more competitive, more understanding, have we chosen to build our muscles and bully our way around the world? Maybe, maybe not. But our real strength comes from our freedoms, from our liberties, and from our economy. By loosing these, we really have no strength at all.
"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty."
—Thomas Jefferson
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