Ron Paul on the Financial Crisis

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

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

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

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

  • Action

    Should Dr. Ron Paul become the United States Secretary of the Treasury under a Republican President?

    Dr. Paul chose to represent the Republican Party and so it would be more logical for him to become an executive cabinet member if McCain/Palin wins the election. This is because their ideologies are more similar than the democrat party, who embrace more of a socialist system.

    Instead of creating more polarity between Republicans, why not just make an agreement that will satisfy both supporters of Dr. Paul and McCain/Palin, which will better unite the Republican Party against the socialist Democrats.

    If this comes into fruition, Dr. Paul would have direct substantial influence on the monetary system of US and can make a greater difference in helping the state of America.

    John McCain would reinforce his ‘maverick’ association and the Republicans would easily defeat the democrats.

    If the Republicans win this election and Dr. Paul is part of the executive administration, his views and solutions would garner more respect and attention.


  • William

    To be a little more explicit, Ayn Rand identified the prevailing philosophy to be characterized simplistically as mysticism/altruism/collectivism. In my post above I only mentioned Altruism which is the dominant ethical system.

    Every philosophy has to deal with certain fundamental questions and their answers constitute their own ideas in the realms which have come to be known as Metaphysics, Epistemology and Ethics. Confronted with the universe, usually on a clear dark star filled night, one wonders in effect: “what is the nature of the universe?”
    Related questions about the nature of reality include whether there are supernatural forces or gods which influence what happens, whether there are immutable laws of nature, whether things are what they are, whether our wishes can come true, whether one must sacrifice virgins to the rain gods or the sun god in order for rain to fall or for the sun to come up, and on and on.

    The next fundamental question is: “What should I do?” in order to remain alive or to be happy, hence the realm of Ethics. What standard should I use to determine whether an action is good or evil? The benefit of others or one’s life on earth?

    Which brings up the question: “How do I know?” What criteria should one use to determine whether one’s thoughts and answers or ideas are true, meaning consistent with the facts of reality? Throughout history certain mistaken criteria have been used, tradition, majority, authority, “just knowing”and “gut feeling” and are still in use today. All are subject to abuse and are often mistaken and are unreliable and subject to error.

    The category to which such questions belong, including whether our minds can understand reality or whether we have to sacrifice our own minds and judgment and follow some leader who has a direct line to the truth, is called Epistemology.

    That said I encourage you to read the books I recommended in the above post in the hope that you will have a better understanding just what we are up against in our struggle for individual freedom.

    Enjoy and take heart that the antidote for the ills of our society are known to a growing number especially among the younger generation. Remember that what the children of Ancient Greece were taught we now consider to be mythology.

  • William

    The politicians are cashing in on the prevailing ethic in this country which is Altruism. It justifies sacrificing the productive for the benefit of those in need. Stated euphemistically as “It is better to give than to receive!” which sounds innocent enough. But in reality it is based on the idea that each human being is a sacrificial animal who should hold the needs of others above his own and be willing to sacrifice himself or herself or others for the alleged good of society.

    Our politicians take advantage of the prevalence of Altruism in order to do what they think is best by that standard, for they believe it too, and further erode our freedoms.

    The alternative is the Founder’s idea that each person has a right to his or her own life. In order for the sacrificing to stop enough of us have to grasp the idea that each individual does not have the right to the productive effort of others, that one’s needs do not constitute a claim on others, that there is no such thing as the right to enslave.

    If you are beginning to see read Ayn Rand’s Atlas Shrugged, For the New Intellectual, The Virtue of Selfishness, Capitalism: The Unknown Ideal and her The Objectivist Newsletter.

    Both Rand and Ron Paul recommend the works of Ludwig von Mises who favored laissez faire capitalism. Read Planning for Freedom, Planned Chaos which are shorter works of his than Human Action.

    Successful political action will not be possible until the proper ideological foundation is prevalent. Ron Paul is correct that we have to change our philosophy of government and to do that requires checking our premises right down to the root.

    In order to discover the proper treatment you have to first make the correct diagnosis. In order to do that you have to comprehend the ideas at the base of the policies of those in power and the alternative ideas which would serve as the basis for a fully free society. I can only point out the way. I am one of Ron Paul’s ardent supporters. I am one who has read the books I am recommending and which Ron Paul has recommended as well. Please take the time to climb the mountain in order to share the perspective the ideas of these other freedom loving individuals have discovered.

    Let me know what you think and pass the torch! [email protected]

  • Ralph Cynthia

    Follow the money

    Hurry up and wait
    Troops idle in the kill zone
    Our USN as ducks in a bathtub


    Ron Paul
    Mike Gravel
    Dennis Kucinich
    JFK RFK MLK Malcolm

  • Nanse Browne

    As the Lord Jesus Christ said,
    “Wisdom is vindicated by her children.”
    I am sorry that the majority of your fellow citizens know and care more about “American Idol” than American ideals, Dr.Paul. Thanks and honor to you for championing for so long and so well the burden of the Constitution.

  • I read somewhere- “if the government bails out Wall St., who is going to bail out the government?”. We are going to see inflation go through the roof, due to dumping hundreds of billions into the economy to cover the losses. And with wages being stagnant, people are going to have a hard time paying bills and groceries.

    I am considering writing in Ron Paul for President as well- I despise Republicans, and don’t trust the Democrats completely. I wish we had a Ron Paul / Ralph Nader ticket!! That’s my dream ticket.

  • i was one of those people unable to vote for you on the republican ticket because the rules had been modified/changed when in past years i had no problem voting for a republican named g.b. i thought i was a christian and so was he. however, i realized if being christian meant killing muslims or anyone who disagreed with my beliefs then that was wrong no matter how you look at it. my son was also denied voting for you as well and told he would have to re-register. unfortunately, we lost hope. sometimes continual oppression from a young age including that of your ancestors does that to a person. there are now some feelings of vindication and glimpses of hope though many people here in northern california esp. middle class or upper class people would rather believe a system of lies than face the truth. they shoot the messenger when all your trying to do is help them, but you can’t help people who don’t yet know they need it and i’m sure you know all to well what that feels like. self importance, self concern has been stripped away and absence of vainglory can only be a gift from our creator to you ron paul and we thank you for being true to your word.

  • Kevin

    Ron Paul is a true American. Individual freedoms, small government and laissez faire economics. My question (and concern) is how does our world economy get from where it is today (a complete disaster from decades of lies poor regulations and government mismanagement) to where it should be (capitalism with a “hands off” attitude with a money system based on gold with management as spelled out in the Constitution) without going through a lengthy 1930’s type depression (and most probably worse)? Can anyone shed some light on this question?

  • Fawn


    Fellow Americans,

    In the simplest form, this is my best description of what I see during this presidential race:
    Our national symbol is the Eagle, with its wings spread wide.
    The Left wing is pushing WE THE PEOPLE into a communist/socialist America, dependant on the government for our next meal. If this is the direction you want then move to China or Russia.
    While the Right wing will continue down the same destitute path until it has America
    Controlled by the EU and finally a one-world government.
    Correct me if I’m wrong but neither of these choices will enable us to be American’s, Land of the Free. Neither offers the CHANGE we truly want or need.
    Most the time I feel hopeless and helpless because WE THE PEOPLE cannot actually do anything except write our deaf congressmen.
    But while we still have time and the power to do something vitally important this election. Let WE THE PEOPLE tell the government we no longer buy the Republican/Democrat monopoly and vote for one man who upholds our constitution and comprehends how to revitalize the Land of the Free. Do your homework on this man fellow American’s. Did this financial crisis finally wake you up? Are you paying attention to what is actually happening? Are you listening to these flapping wings?
    This is OUR last chance to fix America!
    This November lets make a loud noise the entire government will hear…
    Vote Ron Paul
    If his name is not listed “WRITE IT IN”
    For your security & peace of mind
    For your children’s future
    For the men & women who have bled and fought and died for our freedoms!

    Please make a REAL CHANGE this year.
    Stop putting band-aid’s on the bullet wounds of our Eagle’s Wings!
    The Eagle needs surgery before the Democrats and Republican’s let her bleed to death.

  • sue b

    Corey: Do NOT not vote! WRITE IN RON PAUL! That is my daughter’s mantra – she had a baby July 31 and during pushing even told the doctor and nurse’s “Please vote this year and write in Ron Paul”! She is so enthralled with Mr. Paul and is very dedicated to this. She even created a MySpace account “Write in Ron Paul”! You need to vote – we ALL need to vote. A lot of people are telling my daughter that she is wasting her vote but she’s voting for who SHE BELIEVES IN – and you need to do the same! Not voting is not the answer. Voting for someone who isn’t even “in the running” says a lot more!

  • Marco A.

    Dr. Paul,

    It was truly refreshing to follow your campaign for the presidency this past year, and God knows I agree with you 100%! Our country is a twisted mess of class warfare, stupid economic policy, endless taxation, entitlements, pork barrel spending, rising crime, declining wages, government bailouts of private industries, increased tuitions for higher education, reduced funding for medical research, runaway war funding, needless litigation, failing schools, weak foreign policy and poor immigration policy just to name a few. As a registered Independant voter, I too have become sickened by the old “business as usual” garbage spewed forth by both major parties who’s only solution is to treat a symptom instead of find real cures for the sicknesses plaguing our society. Yet, I for one will not stay clear of the polls this election as others have chosen to do so. A great many people in our country’s past have sacrificed so much to give myself and others the right to cast a vote and to not exercise that right in my opinion, is to betray those sacrifices. So I will vote in 2008 and every election thereafter; only I will write in your name as my choice for President of the United States and while many will view it as a wasted vote, I will sleep well in knowing that it was MY vote and I chose to use it in any way I saw fit. God Bless you Dr. Paul, and I hope you will continue to fight on!

  • Christian Hinckley

    One thing that Ron Paul doesn’t say is that the Federal Reserve System is not a federal institution but a coterie of fraudulent private banksters who stole money-creation from Congress at Jekyll Island in 1913. All in violation of the Constitution of the United States, of course. The use of the term “federal” was devised so that the private banksters could defraud the America people. The Federal Reserve needs to be abolished and America needs to return to the creation of money according to the prescription set forth in the Constitution of the United States.

  • Charles Skinner

    Congressman Paul, how long might it take for the complete failure of our economic system? I believe that this will be the only way to have an even start of a new system which might follow the guidelines of the constitution once again. Is this possible with the members who occupy the senate and congress today. I think there needs to be a great change in these members to have any new system work. Do you agree? What is the best way to prepare for the following events that we all know are going to take place in the very near future?

  • Chris W

    Congressman Paul,
    Thank you for speaking out. I’m glad that your out there representing my approch on the financial problem. We can not continue living in this proped up imaginary economy. Whats proped up will fall down eventualy. Keep fighing, I know that when the problems become more severe, more will listen to your message and seek your leadership. Keep fighting.

  • tbpirate

    Ron Paul has the answers but the power people don’t want to let the citizens of this Republic hear him. How can two people say they are for change when they are part of the problem that got us into this mess? We have not had any leadership in this nation since Ronald Reagan left office in 1988. The only person who has carried on the promise of the Republic is Ron Paul.

  • DeathOrLiberty

    I heard an interesting quote from a Lawyer/Educator on NPR. He described the situation as “Privatized profits and Socialized Losses.” If taxpayers are shouldering the burden for gamblers; and have now purchased the failures of multinationals. When will we get our dividends? Are w to rely on the government to distribute the money fairly? What do they know of me, my needs, and desires. What formula is used to determine the common good? Ron Paul on point as always. I truly despise both parties and the temporal left decrying the failure of ‘Capitalism.’ We have yet to fully implement or support the tenets of this great idea. See Ayn Rand:Capitalism. Sound money and the repeal of the XVIth Amendment is what is in high order. No income tax is equated to freedom; with income being a large component of property, consent, contract, and privacy.

  • Chris H

    Ron Paul I’ll give it to you that you are right about the Federal Reserve & the Need for a Sound-Currency, but this Conservative is supporting Obama… Still, keep doing what you’re doing… In the meantime… I’ll be watching…

    Obama/Biden 08!!!

  • Robert DeMott

    OK, we have a problem, a big problem, a very big problem. Now what will fix the problem ? What can we do to help fix the problem ?

  • Corey

    Ron Paul is a hero. I wish he wouldn’t have gotten out of the race, I really think he had a chance to win. I refuse to vote for the lesser of two evils(if one is any less evil than the other)so I will not be voting this year.

    I agree with this statement completely. We must stop spending BILLIONS of dollars supporting other countries while our country is struggling. Over 400 Billion dollars for the Iraq war!!! I’m not the smartest man in the world, but that seems like enough money to help the people in this country. Corruption and ignorance will be the demise of the USA.

  • doug baker

    Congressman Paul

    I have followed your campaign for some time, and I like your message. I also, agree with analysis of Obama, him being a fraud. I agree with your analysis of how bad our economy is. There is one thing that you have never put really put your foot down hard on and I think it is time you did. Simply George Bush is the biggist Idiot in the history of this country. I would like to hear you say something similar. I think you should call a spade a spade. There is no way you can get elected President so what are we to do. Do you believe that George McCain would be our best bet, or is it most of the same.