Ron Paul: We have failed to recognize the true cause of the crisis.



Date: 6/3/2009

Transcript

Ron Paul: Thank you, Mr. Speaker. Mr. Speaker, in the last few years in interviews on the economy I have been asked what I would do if I were in charge. In answering the question I usually started with explaining the errors we made that gave us the crisis.

The interviewer frequently responded by saying he wasn’t interested in the cause of the problems, only what we should do now to correct it. This is a typical attitude in Washington. But we cannot expect correct policies to be implemented if we don’t understand the cause of the crisis. Instead, we have pursued all the wrong policies.

Let me list a few mistakes we have made:

  • We have failed to recognize the true cause of the crisis. Instead, free markets and not enough regulations and central economic planning have been blamed.
  • We continue to listen to and give too much credibility to the very people who caused the crisis and failed to predict the onset.
  • A massive single-year debt increase of $2 trillion and a $9 trillion stimulus by Congress and the Federal Reserve verges on madness. This has entailed taxpayers being forced to buy worthless assets, propping up malinvestments, not allowing the liquidation of bad debt, bailing out crippling banking, Wall Street and corporate elites.
  • We promote artificially low interest rates which eliminates information that only the market can provide.
  • Steadily sacrificing economic and personal liberty is accepted as good policy.
  • Socializing American industry offers little hope that prosperity will soon return.
  • Inflating the money supply over 100% in less than a year is no way to restore confidence to a failing financial system. Expect huge price increases in the future.
  • We have set the stage for further expanding the money supply manyfold over though fractional reserve banking. We deliberately liquidate debt, especially government debt by debasing the currency.
  • We refuse to accept the fact that the debt cannot be paid and future obligations are incomprehensible with revenues crashing and unpredictable while expenditures are put on auto pilot with no new request being denied.
  • There is an attitude that the deficit and inflation can be dealt with later on. Yet tomorrow will be here sooner than later.
  • Plans are being laid for a super regulator, even if it takes a worldwide government organization like the IMF to impose it. Promising the IMF $100 billion when we can’t even take care of our own people’s medical needs is obviously absurd.
  • Plans are laid to massively increase taxes, especially with the carbon tax that when tried in other countries didn’t work and had many unintended consequences.
  • A national sales tax now being planned sends bad signals to investors, consumers and workers.
  • The deeply flawed neoconservative foreign policy of expanding our militarism in the Middle East and Central Asia continues.
  • There is no end in sight for secret prisons, special courts, ignoring the right of Habeas Corpus, no penalties for carrying out illegal torture, and a new system of preventive detention.
  • We continue to protect the concepts of state secrets and presidential signing statements.
  • We’re enlarging […] prison in Afghanistan and there is no cessation of the senseless war on drugs. Indeed, as former Vice-President Dick Cheney has said, we’re in greater danger today than under the Bush administration, but it’s not because we’re not following the Cheney-Bush foreign policy of preventive war, but rather because we are.
  • The Bush doctrine on war is still in place and the economic failures of the previous administration are being continued and expanded.

The policies required to provide a solution to this catastrophic crisis we face are available. We must apply a precise philosophy of liberty along with the respect for private property ownership, free markets, voluntarily contracts enforced by law, and free minds.

Also required is the adoption of a commonsense foreign policy that requires us to stay out of the internal affairs of other nations. Pretending that politicians, central bankers and regulators have the knowledge to centrally plan the economy and police the world only makes things worse.

Realizing this provides the necessary first step to salvage our economy and liberty.

I yield back the balance of my time.

Date: 6/3/2009

Transcript

Ron Paul: Thank you, Mr. Speaker. Mr. Speaker, in the last few years in interviews on the economy I have been asked what I would do if I were in charge. In answering the question I usually started with explaining the errors we made that gave us the crisis.

The interviewer frequently responded by saying he wasn’t interested in the cause of the problems, only what we should do now to correct it. This is a typical attitude in Washington. But we cannot expect correct policies to be implemented if we don’t understand the cause of the crisis. Instead, we have pursued all the wrong policies.

Let me list a few mistakes we have made:

  • We have failed to recognize the true cause of the crisis. Instead, free markets and not enough regulations and central economic planning have been blamed.
  • We continue to listen to and give too much credibility to the very people who caused the crisis and failed to predict the onset.
  • A massive single-year debt increase of $2 trillion and a $9 trillion stimulus by Congress and the Federal Reserve verges on madness. This has entailed taxpayers being forced to buy worthless assets, propping up malinvestments, not allowing the liquidation of bad debt, bailing out crippling banking, Wall Street and corporate elites.
  • We promote artificially low interest rates which eliminates information that only the market can provide.
  • Steadily sacrificing economic and personal liberty is accepted as good policy.
  • Socializing American industry offers little hope that prosperity will soon return.
  • Inflating the money supply over 100% in less than a year is no way to restore confidence to a failing financial system. Expect huge price increases in the future.
  • We have set the stage for further expanding the money supply manyfold over though fractional reserve banking. We deliberately liquidate debt, especially government debt by debasing the currency.
  • We refuse to accept the fact that the debt cannot be paid and future obligations are incomprehensible with revenues crashing and unpredictable while expenditures are put on auto pilot with no new request being denied.
  • There is an attitude that the deficit and inflation can be dealt with later on. Yet tomorrow will be here sooner than later.
  • Plans are being laid for a super regulator, even if it takes a worldwide government organization like the IMF to impose it. Promising the IMF $100 billion when we can’t even take care of our own people’s medical needs is obviously absurd.
  • Plans are laid to massively increase taxes, especially with the carbon tax that when tried in other countries didn’t work and had many unintended consequences.
  • A national sales tax now being planned sends bad signals to investors, consumers and workers.
  • The deeply flawed neoconservative foreign policy of expanding our militarism in the Middle East and Central Asia continues.
  • There is no end in sight for secret prisons, special courts, ignoring the right of Habeas Corpus, no penalties for carrying out illegal torture, and a new system of preventive detention.
  • We continue to protect the concepts of state secrets and presidential signing statements.
  • We’re enlarging […] prison in Afghanistan and there is no cessation of the senseless war on drugs. Indeed, as former Vice-President Dick Cheney has said, we’re in greater danger today than under the Bush administration, but it’s not because we’re not following the Cheney-Bush foreign policy of preventive war, but rather because we are.
  • The Bush doctrine on war is still in place and the economic failures of the previous administration are being continued and expanded.

The policies required to provide a solution to this catastrophic crisis we face are available. We must apply a precise philosophy of liberty along with the respect for private property ownership, free markets, voluntarily contracts enforced by law, and free minds.

Also required is the adoption of a commonsense foreign policy that requires us to stay out of the internal affairs of other nations. Pretending that politicians, central bankers and regulators have the knowledge to centrally plan the economy and police the world only makes things worse.

Realizing this provides the necessary first step to salvage our economy and liberty.

I yield back the balance of my time.



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3 Comments:

  1. Pingback: Ron Paul to Ben Bernanke: When will you admit that your policies have failed? | Daily Libertarian

  2. In what part of history did people decide governments were good?
    When governments rule the people suffer, when good people rule government suffers.
    If Europeans don’t like our ideas GO BACK TO EUROPE…. TROLLS.

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  3. Phillip Oliver

    I appreciate your stand for freedom and liberty. I understand everything all too well but it took a long time to dig up the truths I was denied in the public school system. And I’m very angry about it.

    I keep hearing that our “Representatives” have not learned from the mistakes of the past. I don’t believe that. I believe there are two types in Washington other than those admitting the truth. Those that are so self absorbed and egotistical that they believe they can control the natural order and those that are intentionally destroying the economy to destroy our nation, the socialists (communists). I believe this is the manner they plan to take over without a shot.

    Is there any way to educate the people, show them the parallels of the communist manifesto and our current path. People need to know how many bailouts have taken place since 1913. People need to understand that prices are not rising, it is a smokescreen or false perspective that is used to prevent everyone from knowing that our currency being debased and devaluated. It is like the picture that you can see either a hag or a horse. You are led to see what the central bank wants you to see. This way everyone thinks that the oil companies are ripping them off when it really is to much currency being printed and circulated. Where can I find a study of the cost of goods and services in relation to the amount of Silver or Gold over the last 200 years paralleling that of the dollar.

    Economics is only complicated when you are trying steal from others.

    Do people really thing the Federal Reserve is part of the government? (Like some Merill Lynch investors told me) Where do the people think all the interest is going? If it was part of the government, the payments should show up to benefit the public.

    The media does not realize that their effort to thwart the truth will go unrewarded. Most will be out of work once the government takes over that industry with a centralized media center. Very few will live the high life with the ruling class and the intellectual elite that own the central banks.

    Do people really want to be slaves?

    I have a great deal to say but need to stop. What can I do to help?

    »crosslinked«

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