Show: Mickelson in the Morning
Channel: Newsradio 1040 WHO
Jan Mickelson: We get a chance to do what not too many people get the chance to do, as pick the brain of one of the smartest guys in the Congress: Dr Ron Paul, Congressman Ron Paul, he’s from Texas, he was presidential candidate and he’s on our newsmaker line right now. Good morning, Dr. Paul, how you doing, sir?
Ron Paul: Good morning, Jan, how are you?
Jan Mickelson: I’m doing great. It’s a wonderful opportunity to get a chance to talk with you.
Ron Paul: Thank you.
Jan Mickelson: I had an opportunity to have a conversation a couple of days ago and yesterday too about the issue of money and its nature and what we’ve done to debase it and it got us involved into a constitutional issue and I have a couple of constitutional questions for you, if you don’t mind.
Ron Paul: I’ll give it a try.
Jan Mickelson: Because I know you’ve just written about the Federal Reserve and you’d like to abolish the Federal Reserve, and the reason for that is because it’s engaging in fractional reserve banking without any real gold backing. They’re just basically printing money, and that’s not even a constitutional banking system, is it?
Ron Paul: No, because there’s no authorization for a central bank but, interestingly enough, this argument started very early, because Jefferson believed there was no authority and he got rid of the first National Bank and yet, Hamilton loved it and he wanted it and said “Oh yes we do” and then when they went to court, the court said “Oh yes” and implied power, you know, we can do this because, those kind of arguments have going on through our history but unfortunately, the courts have always ruled in favor of the central bank.
Jan Mickelson: And, I guess that takes us right back to another issue about the judicial supremacy. Can the Supreme Court or any other court rewrite the Constitution, to make it mean something, that is explicitly denied by the Constitution itself?
Ron Paul: Well, unfortunately, they’ve been doing it, it’s getting worse all the time, and that has been the failure of our system and the shortcoming of the Constitution. We might also argue of the shortcoming of the people, who didn’t have any desire to be bound down by the chains of the Constitution and therefore, we have endless growth of the government. Just think about what’s been happening in the past 6 months, and nobody even thinks about the idea of whether not what we’re doing in Congress or the Federal Reserve or with Treasury is actually constitutional.
Jan Mickelson: Well, here’s a couple of codicils in the Constitution under the first under the section 8. This is the enumerating powers, the list of power you guys have. One of them is to coin the money and regulate the value thereof of. Now, coining is different than printing. Coining implies something of intrinsic worth, and the dollar at one time, in fact it began in the 1700s, to be defined as, according to gold content, it had to have so much in order to be considered a dollar.
Ron Paul: Yes, and that of course, during that time when they were writing that, they talked about emitting bills of credit, which was paper money and they had a prohibition against that.
Jan Mickelson: Yes, section 10. Says “no state shall enter into a treaty, alliance or confederation”, they can’t grant letters of marquee and then reprisal, or coin money, or emit bills of credit, but here’s the question I had for you, or make any thing but gold and silver coin a tender in payment of debts. That means that it has to be real money, the state has no ability to require us to pay anything that isn’t gold or silver. Is that correct?
Ron Paul: That’s absolutely right. So there’s the grand contradiction: the Federal Constitution dictates rarely to the states but it said, you can’t do anything, you can’t use anything than gold and silver, but then the federal government comes in and said “now you must use federal reserve notes as the only thing as legal tender”. And, of course, then they wonder why the founders cared about this, they understood about runaway inflation.
Jan Mickelson: They’ve been a victim of it several times.
Ron Paul: Yes, then we wonder why we get into a mess, because even those of us who are studying free market economics and the advancement of Austrian economics. The founders were pretty sound on this issue because inflation, the destruction of currency, that’s been something that’s been known for thousands of years. All great empires end with the destruction of the currency.
Jan Mickelson: Plus they were just fresh from the experience of what happened to their own continental dollar. And the British, apparently, had caught on to the paper money, and they were counterfeiting our continental dollar. And pretty understood how to do it and the British in essence counterfeited the American currency out of existence, and right now the Federal Reserve is doing exactly the same thing the British did to us.
Ron Paul: Yeah, we don’t even need an enemy to do it, we do it to ourselves! And we’ve been getting away with it, you know, literally, for, especially these last 35 years, and everybody trusts us so well and our great wealth and our military power, they take it. They take our money. But now, I think, soon at least, they’re going to realize that it is counterfeit money and those dollars all still exist, and they will come back home to roost here, which means we’re still in for a lot of trouble and a lot more inflation.
Jan Mickelson: Almost a trillion dollars in a stimulus package, and all of that’s borrowed money. Isn’t that correct, Congressman Paul?
Ron Paul: It will be because we have no money in the bank. They might not borrow it all, but indirectly, you know, borrow from the future by just printing the money, so it’s a form of borrowing, but I think right now even liberal democrats are realizing that pouring on high taxes on an economy that has no income doesn’t make a whole lot of sense. So I don’t think they are going to dump a lot of taxes on us, if anything they might even lower taxes, they will not stop spending, they will not stop borrowing, they will not stop printing.
Jan Mickelson: I was thinking about this as we were promised, in fact, that senator Harkin was bragging that that stimulus packaged of 1,5 billion is directed towards Iowa, and they’re calling it a stimulus package and I went through the list of things that are on that list that I would directly get. Almost all of it goes to some welfare program or another. Almost every single penny. There wasn’t a single penny that goes to the private sector, that goes to wealth production, all of it is consumption and all of it goes to one form or another of welfare.
Ron Paul: Well, it is actually a negative, because in real terms, that has to come from somebody who could have been productive. Even if they didn’t take it through taxation, they take it indirectly through the dilution factor of the money, so either is real wealth transfer, and it’s transferred from those who could have produced or invested and made proper decisions, given to individuals where the money is just spent and consumed.
Jan Mickelson: Senator, and now President Obama says, “You might be right. All these things might be correct and your arguments may be even sound and thank you for making them, but I won. And now I get to do what I want to do”.
Ron Paul: It reminds me of somebody saying something like that in the previous administration, when he said, “I have political capital now and I can do this and that”. It is this arrogance in the executive branch which the Congress, unfortunately, has contributed to because they allow so much power to gravitate and this is why we hear of these attitudes, rather than saying, the real democratic process is in the marketplace where people spend their own money and they have the incentive to earn their own money and the government is here to provide a healthy environment and sound money so ..
Jan Mickelson: So what are we supposed to do, Congressman Paul? Are we hosed, is this inevitable, is there any political pressure that’s left to be, I mean, what kind of political capital this close to an election do the voters really have? Even in your office in front of the 2 years, and then president’s another 4 years, then senator another 6 years. So what capital do we have to spend in order to say no this stuff?
Ron Paul: We don’t have any immediate capital to stop this train that’s running down over us, but I do believe that we have some things on our side. I think we have truth on our side and I think that, in time, people are going to realize that something else has to happen, because this program that we are working with now is a continuation of what we’ve been doing, is just an accelerated train right now and it’s going to fail. Believe me, it is serious because it is a question of the survival of our country. The one thing I can say with confidence, I think there are more and more people that are thinking along our way than they did, and I know you’ve been talking about and are interested in the money issues for a lot of years, but there’s a lot… I mean, I can go to campuses now, and these young people are reading Murray Rothbard and understanding the money issue and are sick of Federal Reserve and they know this, even though we’re not in charge. It seems like the younger generation are becoming knowledgeable enough that maybe we can sort this out and build something new and much better, rather than capitulating to total tyranny, which is genuinely what happens. But it’s going be a tough fight.
Jan Mickelson: Congressman Paul, thank you for joining us briefly this morning.
Ron Paul: Thank you very much.
Jan Mickelson: You betcha. Bye bye!