Archive for the ‘Ron Paul’ Category
At about 3:25 in, this video shows how much some of these folks have taken – BOTH of our “choices” for President are part of this.
They think you don’t get it. We think they’re wrong. Keep calling and e-mailing!
The financial meltdown the economists of the Austrian School predicted has arrived.
We are in this crisis because of an excess of artificially created credit at the hands of the Federal Reserve System. The solution being proposed? More artificial credit by the Federal Reserve. No liquidation of bad debt and malinvestment is to be allowed. By doing more of the same, we will only continue and intensify the distortions in our economy – all the capital misallocation, all the malinvestment – and prevent the market’s attempt to re-establish rational pricing of houses and other assets.
Last night the president addressed the nation about the financial crisis. There is no point in going through his remarks line by line, since I’d only be repeating what I’ve been saying over and over – not just for the past several days, but for years and even decades.
Still, at least a few observations are necessary.
The president assures us that his administration “is working with Congress to address the root cause behind much of the instability in our markets.” Care to take a guess at whether the Federal Reserve and its money creation spree were even mentioned?
We are told that “low interest rates” led to excessive borrowing, but we are not told how these low interest rates came about. They were a deliberate policy of the Federal Reserve. As always, artificially low interest rates distort the market. Entrepreneurs engage in malinvestments – investments that do not make sense in light of current resource availability, that occur in more temporally remote stages of the capital structure than the pattern of consumer demand can support, and that would not have been made at all if the interest rate had been permitted to tell the truth instead of being toyed with by the Fed.
Not a word about any of that, of course, because Americans might then discover how the great wise men in Washington caused this great debacle. Better to keep scapegoating the mortgage industry or “wildcat capitalism” (as if we actually have a pure free market!).
Speaking about Fannie Mae and Freddie Mac, the president said: “Because these companies were chartered by Congress, many believed they were guaranteed by the federal government. This allowed them to borrow enormous sums of money, fuel the market for questionable investments, and put our financial system at risk.”
Doesn’t that prove the foolishness of chartering Fannie and Freddie in the first place? Doesn’t that suggest that maybe, just maybe, government may have contributed to this mess? And of course, by bailing out Fannie and Freddie, hasn’t the federal government shown that the “many” who “believed they were guaranteed by the federal government” were in fact correct?
Then come the scare tactics. If we don’t give dictatorial powers to the Treasury Secretary “the stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet.” Left unsaid, naturally, is that with the bailout and all the money and credit that must be produced out of thin air to fund it, the value of your retirement account will drop anyway, because the value of the dollar will suffer a precipitous decline. As for home prices, they are obviously much too high, and supply and demand cannot equilibrate if government insists on propping them up.
It’s the same destructive strategy that government tried during the Great Depression: prop up prices at all costs. The Depression went on for over a decade. On the other hand, when liquidation was allowed to occur in the equally devastating downturn of 1921, the economy recovered within less than a year.
The president also tells us that Senators McCain and Obama will join him at the White House today in order to figure out how to get the bipartisan bailout passed. The two senators would do their country much more good if they stayed on the campaign trail debating who the bigger celebrity is, or whatever it is that occupies their attention these days.
F.A. Hayek won the Nobel Prize for showing how central banks’ manipulation of interest rates creates the boom-bust cycle with which we are sadly familiar. In 1932, in the depths of the Great Depression, he described the foolish policies being pursued in his day – and which are being proposed, just as destructively, in our own:
Instead of furthering the inevitable liquidation of the maladjustments brought about by the boom during the last three years, all conceivable means have been used to prevent that readjustment from taking place; and one of these means, which has been repeatedly tried though without success, from the earliest to the most recent stages of depression, has been this deliberate policy of credit expansion.
To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection – a procedure that can only lead to a much more severe crisis as soon as the credit expansion comes to an end… It is probably to this experiment, together with the attempts to prevent liquidation once the crisis had come, that we owe the exceptional severity and duration of the depression.
The only thing we learn from history, I am afraid, is that we do not learn from history.
The very people who have spent the past several years assuring us that the economy is fundamentally sound, and who themselves foolishly cheered the extension of all these novel kinds of mortgages, are the ones who now claim to be the experts who will restore prosperity! Just how spectacularly wrong, how utterly without a clue, does someone have to be before his expert status is called into question?
Oh, and did you notice that the bailout is now being called a “rescue plan”? I guess “bailout” wasn’t sitting too well with the American people.
The very people who with somber faces tell us of their deep concern for the spread of democracy around the world are the ones most insistent on forcing a bill through Congress that the American people overwhelmingly oppose. The very fact that some of you seem to think you’re supposed to have a voice in all this actually seems to annoy them.
I continue to urge you to contact your representatives and give them a piece of your mind. I myself am doing everything I can to promote the correct point of view on the crisis. Be sure also to educate yourselves on these subjects – the Campaign for Liberty blog is an excellent place to start. Read the posts, ask questions in the comment section, and learn.
H.G. Wells once said that civilization was in a race between education and catastrophe. Let us learn the truth and spread it as far and wide as our circumstances allow. For the truth is the greatest weapon we have.
Not being reported in the U.S. at this time – From the UK Guardian –
There has been a lot of talk in the news recently about the Federal Reserve and the actions it has taken over the past few months. Many media pundits have been bending over backwards to praise the Fed for supposedly restoring stability to the market. This interpretation of the Fed’s actions couldn’t be further from the truth.
The current market crisis began because of Federal Reserve monetary policy during the early 2000s in which the Fed lowered the interest rate to a below-market rate. The artificially low rates led to over investment in housing and other malinvestments. When the first indications of market trouble began back in August of 2007, instead of holding back and allowing bad decision-makers to suffer the consequences of their actions, the Federal Reserve took aggressive, inflationary action to ensure that large Wall Street firms would not lose money. It began by lowering the discount rates, the rates of interest charged to banks who borrow directly from the Fed, and lengthening the terms of such loans. This eliminated much of the stigma from discount window borrowing and enabled troubled banks to come to the Fed directly for funding, pay only a slightly higher interest rate but also secure these loans for a period longer than just overnight.
After the massive increase in discount window lending proved to be ineffective, the Fed became more and more creative with its funding arrangements. It has since created the Term Auction Facility (TAF), the Primary Dealer Credit Facility (PDCF), and the Term Securities Lending Facility (TSLF). The upshot of all of these new programs is that through auctions of securities or through deposits of collateral, the Fed is pushing hundreds of billions of dollars of funding into the financial system in a misguided attempt to shore up the stability of the system.
The PDCF in particular is a departure from the established pattern of Fed intervention because it targets the primary dealers, the largest investment banks who purchase government securities directly from the New York Fed. These banks have never before been allowed to borrow from the Fed, but thanks to the Fed Board of Governors, these investment banks can now receive loans from the Fed in exchange for securities which will in all likelihood soon lose much of their value.
The net effect of all this new funding has been to pump hundreds of billions of dollars into the financial system and bail out banks whose poor decision making should have caused them to go out of business. Instead of being forced to learn their lesson, these poor-performing banks are being rewarded for their financial mismanagement, and the ultimate cost of this bailout will fall on the American taxpayers. Already this new money flowing into the system is spurring talk of the next speculative bubble, possibly this time in commodities.
Worst of all, the Treasury Department has recently proposed that the Federal Reserve, which was responsible for the housing bubble and subprime crisis in the first place, be rewarded for all its intervention by being turned into a super-regulator. The Treasury foresees the Fed as the guarantor of market stability, with oversight over any financial institution that could pose a threat to the financial system. Rewarding poor performing financial institutions is bad enough, but rewarding the institution that enabled the current economic crisis is unconscionable.
Dr. Ron Paul
This is terrific! Go to SelectSmart.com and see how the candidates fit with what’s important to YOU.
***It’s been brought to our attention that this site sends out SPAM e-mails. Here’s the trick to avoid that – after you’ve made all of your suggestions, a screen comes up and asks for your e-mail. DON’T FILL IT IN. There is a link at the very top of the page to move you to the results page. Once there, don’t fill out the section that says “E-mail Results.”
This is just a fun questionnaire – we all came up with a 100% match with a “theoretical candidate.” The next closest match was 60%! Not so great, we think!!
We will not be posting Tuesday, Sept. 11, 2007. We are participating in the STRIKE FOR PEACE.
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It’s an interesting thing to us around here that the candidate that seems to be getting the most attention from The People (you know – as in “We The People”) has been virtually ignored or downright excluded from discussions, debates, “serious news coverage,” etc. Now – we’re not here to suggest anything “funny” is going on (oh yes we are) but, like we said – it’s “interesting.”
We’re not going to tell you who to vote for – our readers are among the smartest on the ‘net and can decide for yourselves – but we think you should be given ALL the information – something apparently ABC, CBS, NBC, CNN, and Fox don’t agree with.
The fact of the matter is that “THEY” have decided that Ron Paul can’t win – and so you don’t get the opportunity to hear about him. Oddly enough, we hear plenty about John McCain – and yet Dr. Paul has raised more money than McCain. We think you owe it to yourselves to at least check him out and see if he shares your views on the issues – the same thing we want you to do with the “major” candidates.
Read the article below – and then Google “Ron Paul.” You’ll get an education. Also take a look at an article on a non-political site – we’re not the only ones talking!
Paul’s Active Service Member Donations Get Noticed
Rep. Ron Paul (Texas), the anti-Iraq war candidate for the Republican presidential nomination and darling of the Internet, said his colleagues have taken notice that he has raised more money from active service members than any other GOP White House hopeful.
“Lots of military people turned out to be aware that our campaign got more donations from soldiers, sailors, airmen, and Marines than any other,” said Paul in a statement on his website. “Funny, that made a big impression in Congress too. Many of my colleagues were amazed and encouraged that you can be against this unconstitutional and disastrous war, and get military support.”
While campaign spokesman Jesse Benton did not name names, he said that “two southern Republicans” recently approached Paul. They noted that his success in getting money from members of the active military is “turning some heads.”
Paul said it is “an outrage that we are accused of not supporting the troops” and called it a “scam when the warmongers claim to be pro-soldier.”
Despite his popularity on the Internet and a surprisingly strong second quarter fund-raising effort, which saw his campaign haul in $2.4 million, Paul is universally considered as a long shot candidate for the nomination.
However, he told supporters that he is “cautiously optimistic” about next week’s Iowa straw poll.
Paul also noted that he has received some good press about being frugal with his campaign contributions.
“I treat every donation with care, since it comes from a good American who shares our hope for the future, and who had to work hard to earn that money,” Paul said.
Benton added that the prudence in spending is a sign of what is to come.
“The way he runs his campaign is a microcosm of how he would run the country,” said Benton of his boss. He added that Paul would spend money where it needs to be spent but would otherwise be careful not to waste a penny.
Can’t keep the players straight without a scorecard? Want to check all of the candidates’ positions at a glance? Here’s how:
The graph won’t post – read it at The Billings Outpost News
We think you’ll be amazed! Remember – Montana is a RED state!