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Ron Paul: Cures for Our Economic Disease

by Ron Paul
Texas Straight Talk | Feb 2, 2009

I have recently had several opportunities on various news programs to discuss the economy and what is wrong with the so-called economic stimulus package. I have said over and over what we shouldn’t be doing, and now I’d like to explain what we should be doing.

But to improve the situation, you must first have a solid grasp of how we got here. Government policies and central planning created the housing bubble, now going bust. About a decade ago the government made expanded homeownership and affordable housing a public goal. Through Fannie Mae, Freddie Mac and the secondary mortgage market the government incentivized creative, low down-payment, more widely available mortgage products, and discouraged the market-proven lending standards of the past. The Federal Reserve kept interest rates artificially low, which added more fuel to this fire. Many related sectors temporarily flourished because of this, and many people got into homes they otherwise could not have afforded. The increased demand for housing sent prices soaring until in many markets housing became even more unaffordable, necessitating even more creative mortgages, and impossibly leveraging homeowners. Many risky investment vehicles such as mortgage-backed securities, derivatives, credit default swaps grew out of this unsustainable situation. As the foreclosures began, the house of cards started to tumble. Too many people have confused the symptoms and the pain of the bust with the problematic policies that caused the bubble, which is really what needs to be treated.

First of all, just as the best cure for a hangover is not to drink so much, the best cure for a recession is a recession. It is time to sober up and return to free market sanity, risk and reward, supply and demand, without political intervention. Politicians are good at catering to the needs of special interests, but very bad at determining what needs to take place in the market. Government should stick to punishing fraud and enforcing contracts. When they use the tax code, bureaucratic departments and their manipulative rules and regulations to dictate social and economic behavior, we end up with distortions and malinvestments. Bailing out banks, continuing failed Fed policies and strapping the taxpayer with toxic debt will worsen the pain, and punish the innocent.

If Congress really wanted to do something helpful, it would cut taxes. Ideally, we would repeal the income tax altogether and get the IRS off the economy’s back, which would be a huge boon. We should also cut spending. Cut every unconstitutional department and program, every wasteful governmental encroachment on the people’s liberty and money, starting with our massive overseas empire. The cost of our empire is bringing us to our knees, just as the Soviets’ empire did to them. Congress should also abolish the Federal Reserve and take back its responsibilities to ensure sound money, safe from the manipulations of powerful banking interests.

These things would constitute real change, real economic stimulus. The plans being bandied about Washington are just more of the same. As long as no one seriously considers the cure, we are unfortunately destined to prolong the disease.



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END THE FED FIRST!!!

The rest will fall in line...

I may not know the truth, but I know when I'm being lied to...

I may not know the truth, but I know when I'm being lied to...

My rewrite: 4 Steps to Cure Our Economic Disease

Step One: If Congress really wanted to do something helpful immediately, it would abolish the income tax for 10 years. Ideally, we would repeal the income tax altogether and get the IRS off the economy’s back, which would be a huge boon {i.e. a real stimulus package for everyone}.

Step Two: We should also cut spending. Military, Police & Courts are central to good government, but most everything else can be safely and wisely privatized and raffled off as a function best left to the marketplace. Just go down the list and repeat after me, “Depart of… gone. But notice, when politicians talk about cutting services the first thing they say is Police departments will need to be scaled back. They also mention teachers, fire fighters, and every other large public union group or voting block. Yet the city of Scottsdale Arizona has proven you can privatize good Fire Departments, Ambulance Services, Hospitals, and yes even Schools. Yes schools can be fully privatized, starting with our Universities. Social Security & Medicare can also be privatized back into the private Insurance Industry where it all belongs. And of course, Bush’s latest addition to the public payroll, Airport Security workers can also be privatized, indeed the whole airport itself can be sold and privatized (as it should be anyway). Gone is the Department of Education, Energy and a whole list of Federal Alphabet soup departments. Use the bright light of the Constitution, that is cut every unconstitutional department and program, every wasteful governmental encroachment on the people’s liberty and money, but leave the police and Courts alone as they are indeed true government functions of state.

Step Three: Cut the Military. While it is true that military defense, emphasis on defense of the nation’s boarders is a true government function like Police and Courts, the military has grown into a behemoth, a seven continent stretching behemoth. The cost of our empire is bringing us to our knees, just as the Soviets’ empire did to them. It is often said our military must protect “our” interest overseas. Answer: No it does not. It protects certain interests over the many. If American corporations choose to build factories in unfriendly lands, get nationalized or taxed to death that is the risk they took. It is NOT in “our” collective American interest to single out and have our military subsidize the safety of certain corporations who choose to do business abroad. They should have stayed home where the military protects THIS nation’s boarders, and no other. This is the land of the Free. If the rest of Free World wishes to be free and prosperous like us, it will copy our lead.

Step Four: Perhaps the most important step. Congress should Repeal Legal Tender laws and also abolish the Federal Reserve. That will take back the Federal Government’s responsibilities to ensure sound money, safe from the manipulations of powerful banking interests. Allowing “free market money” was in the constitution from the get go. Every person is free to print or mint his or her own currency, government is just to check its “weights and measures” to deter fraud. The founders of this nation where very aware of the evils of central banks in bed with the federal government, and they were very aware of the evils of a government fiat paper being made the one and only “legal tender”. This is why no such fiat paper is legal tender under the Constitution and people are free to choose their currency of choice in the market. It should come as no surprise that gold and silver are chosen, but today people may even choose “e-gold” and other forms of currency. It is a free country after all, is it not?

These things would constitute real change, real economic stimulus. The United States would be again the “United” States under a small central federal government. The Choke-Hold of the Welfare-Warfare Congressional Complex would be over. Moreover, the United States would become a free market beacon of liberty and security to all who seek peace and prosperity. Manufactures of all kinds would return to America and jobs would be plentiful again. Sadly, the plans being bandied about Washington are just more of the same welfare-warfare ideas of the past that brought to us the over bloated Federal government that has now sunk our freedom ship.

Remember, …. “As long as no one seriously considers the cure, we are unfortunately destined to prolong the disease.”

In Peace & Liberty,
Treg

Yes, please BUY this wonderful libertarian BOOK! We all must know the History of Freedom! Buy it today!

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Since I'm lazy and like

Since I'm lazy and like listening to Audio rather than reading, here's the link to the audio for this RP-TST.
http://www.house.gov/paul/audio/TSTFeb2.mp3

Uh Oh...

I think the wrong guy got elected president....
If all of this economic mess had only happened a year earlier I believe we may have had a decent chance for President Paul today.

a bit off topic

does anyone know what kind of beer Ron Paul drinks(if any)?

(Better) to be confused in the search for truth than fully confident and sound asleep in a dream of lies. ~ Michael Nystrom
http://www.votenader.org/blog/2008/09/10/statement-to-ron-pa...
http://www.flickr.com/photos/57925480@N00/2660779139

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

No beer for the Dr.

sip of wine maybe? !

h-daddy

he likes red wines.

he likes red wines.

as usual

As usual Dr. Paul makes too much sense for the sheeple to comprehend. Until its too late, that is.
America has a serious wake-up call coming and maybe its for the best that we let it happen

The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants

The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants

Dr.Paul needs to get specific about what Gov. programs

are wastefull & should be cut.

Gov. is going to get so back in the next 4 years it's going to be head-spinnning.

Please, Dr.Paul just pick 1 & let's see of we can make it happen thru our movement.

reply

Don't think for a minute Dr. Paul doesn't visit this website, I love this man!!!

Wonderful as usual and people are listening up!

Keep this going!

Dr Paul's grasp of how we got here by MSM concealing fraud

I agree with Dr Paul, that to improve the situation, we must first have a solid grasp of how we got here.

In his own words on CNN in November 2007: " ... the monetary system is fraudulent. Instead of perpetuating fraud in the monetary system they should be dealing with real fraud. His host, CNN anchor, John Roberts, failed to ask any questions. He changed the topic with: "Well, regardless of what we talk about this morning, the Dow is going to go off a cliff again today so let me turn to politics if I could." See: http://edition.cnn.com/2008/POLITICS/10/24/ron.paul.economy/...

Please go here http://www.nolanchart.com/article5928.html to learn more and add your demands for re-opening the debate.

Also any reader with access to Dr Paul or his office, please try to get his attention to the evidence of the above Nolan Chart article. I fear his grasp of how the MSM got us here by concealing bankers fraud is not so solid!

End the fraud - report the Fed and its complicit media to an FBI office near you. For more details go here: http://www.nolanchart.com/article/print.php?ArticleID=5928

Bravo

Bump

"I don't want to be in a battle . . . but
waiting on the edge of one I can't escape
is even worse"

"I have found that being rich is not about having the most but about needing the least"

The guy just makes too much sense

If people can get past the "kooky" label that the MSM painted him with, and just listen to his words, he would have an army of followers. Manipulation is present everywhere it seems.