Ron Paul on Freedom Watch: “Americans’ views aren’t being reflected here in Washington”

This Wednesday afternoon, Ron Paul joined Peter Schiff, Dr. Yaron Brook, Lew Rockwell, Tom Woods, John Pappas, Mike German for an insightful discussion of the Federal Reserve and other political and economic issues.

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Channel: Fox News Strategy Room
Show: Freedom Watch
Host: Judge Andrew Napolitano
Date: 6/17/2009

Transcript of Ron Paul’s appearance

Judge Andrew Napolitano: Liberty powers on! Welcome to Freedom Watch. I’m your host, Judge Andrew Napolitano. We’ll discuss the issues that profoundly affect your freedoms, your civil liberties, your financial liberties and your right to have a government that stays within the confines of the Constitution. Coming up are Congressman Ron Paul, economist Peter Schiff, Dr. Yaron Brook, president of the Ayn Rand Institute, Lew Rockwell, founder of the Ludwig von Mises institute, Tom Woods, author of the bestseller “Meltdown” and much, much more.

Right now it is my great pleasure to introduce one of American’s great defenders of freedom in Congress and anywhere, Congressman Ron Paul. Congressman Paul joins us, as usual, at this hour directly from the Capitol building itself. Congressman, welcome back to Freedom watch.

Ron Paul: Thank you, good to be with you again.

Judge Andrew Napolitano: I don’t know if you can see me, but I have in front of me the 85 pages that the White House produced last night, which is basically its wish list of regulations which starts with a couple of presumptions: The government knows best, the Constitution be damned, and the best regulator of all the financial markets in the country is the most secretive entity we know: the Federal Reserve. Could they possibly propose anything worse than this?

Ron Paul: Probably not, and everything they have been doing for the last year, including this, is based on the assumption that the marketplace can’t work and that all the problems come because we haven’t had enough government regulators. And therefore they guarantee to us that they have no idea why financial bubbles are built. If they do, they don’t want us to deal with it. But they’re saying that they need more regulations rather than saying that we had too much Federal Reserve manipulating interest rates, creating too much credit, causing the malinvestment, encouraging the debt… and we’ve already been overly regulated.

You know when Enron failed the Republican Party quickly got the Sarbanes-Oxley Bill passed. Right now there is an effort to try to repeal Sarbanes-Oxley because it didn’t do any good. We’re falling into the same trap. We did that in the Depression, in the middle of the 1930s, we super-regulated and actually It was part of the reasons why he Depression was prolonged. So, we don’t seem to learn very much, there is very little understanding and very little respect for the free market and very little respect for our Constitution.

Judge Andrew Napolitano: As I read this throughout the morning, Congressman Paul, I became personally very saddened at the attitude of those in the government who would, as I said, say that the Constitution be damned, economics 101 be damned, basic history be damned. Just think that you and I and a lot of people watching us now know and understand and appreciate the lessons from it.

We began to hear some feedback, some would call it blowback, throughout the day, that maybe even some Democrats in the House are prepared to argue that this is was way beyond anything that the American people could tolerate. Question: do you sense any of that? Or is this monstrosity – and again, this is the 85 page summary, this isn’t even the 500 or 600 page statue – is this a foregone conclusion that we will soon have everything from AIG to McDonald’s regulated by the Federal Reserve?

Ron Paul: No, I haven’t heard that and I am actually discouraged because of how the Democrats were able to twist arms and get a bunch of Democrats to switch and vote for that supplemental yesterday, which was a real boomdoggle, because I think the Republicans opposed it for wrong reason. But nevertheless there were 20-some Democrats who switched their vote. So that means partisanship is alive and well and there maybe some grumbling, but when push comes to shove they’ll tow the line and they have the votes. The Democrats have the votes, so there will be very little rebellion against what you’re sensing is going to happen.

Judge Andrew Napolitano: Votes to enact regulations, enact the statute to audit the Fed. Will this monster regulator – it’s already a monster and will become a bigger one if this statute passes – ever be exposed to the Congress and to the American people for what it truly is?

Ron Paul: Let’s hope so. I mean we have had this tremendous move with HR 1207 with 230-some co-sponsors. And I can sense that they’re very much aware of it because even when Obama talks about it he says “We want to have more transparency”, but they’re not talking about the transparency that HR 1207 is dealing with. They’re going to do exactly the opposite. If our problem is that the Federal Reserve has been too secretive and made too many deals, and then we’re giving them more powers, then we shouldn’t expect all of a sudden that we are going to be able to monitor and really audit the Fed.

But it is a very important issue and we won’t let it go. But, right now I’m not all that optimistic that coming out of this will be a weaker Fed and people understanding how the Fed created the bubble and that we have more transparency. Right now that doesn’t look like what we’re going to get.

Judge Andrew Napolitano: Before I let you go, the President wants not only this piece of legislation, this uber-regulation of American industry as we know it, whether chartered by the federal government, whether regulated by the SEC or whether privately owned. He also wants the federalization of healthcare. Can all this possibly be done by Labor Day, or is there some glimmer of hope somewhere from some source that the free market, the Constitution or the concept of history will shine through?

Ron Paul: Well, you would hope so. But you know, I got a statement from the FDIC yesterday and it showed that we have made a commitment of $13.9 trillion in this past year. Already out of that we’ve committed over half of it. And it doesn’t seem to ever end, it seems like they’ve been conditioned to think, “You don’t have to worry about it because it’s important to spend. The government has a role to stimulate the economy.” It’s all based on a fallacy in economics because they’re all Keynesians.

So to hope that they will come to their senses is right now mere hope. But you know that there are a lot of people in the country who are thinking differently. It’s just that those views aren’t being reflected here in Washington. So we’ll come to our senses, but slowly.

You know, somebody once wrote, “We go mad in crowds but we only regain our sensibilities one person at a time.” We’re in the process of doing that, but right now I wish I could because I’d like to be optimistic and say, “Oh no, we’re going to wake up, they’re going to realize that spending and borrowing and inflating and regulating doesn’t work and it contributed to our problem. So therefore we need to all of a sudden reverse course.” Right now I would say I don’t bet on it.

Judge Andrew Napolitano: Congressman, good luck, keep up the good fight. Until next Wednesday on Freedom Watch. As always it’s been a pleasure, thanks for joining us.

Ron Paul: Thank you, Judge.