Category Archives: Monetary Policy

Questions Obama and Romney won’t have to answer at tonight’s debate

TAMPA, October 16, 2012 – Tonight, we will be subjected to another presidential “debate,” in which two candidates who agree that government is the solution to everything argue about whose central plan is better. With the questions coming directly from the electorate and super-liberal Candy Crowley deciding which ones to ask, there is not much chance that big government will be challenged by anyone.

Wouldn’t it be refreshing if the candidates were actually asked substantive questions that couldn’t be answered with rehearsed talking points? Here are just a few that you won’t hear asked in any debate or interview:

1. Both of you support U.S. military involvement in the Middle East and elsewhere against nations that have committed no acts of war against the United States. How do you justify planned military action when no state of war exists?

2. Both of you support employing the U.S. military to promote “democracy” in other countries. Why is the U.S. taxpayer financially responsible for the liberty and security of everyone on the planet? When will this financial responsibility end?

3. You both agree that President Obama was right in signing the last NDAA bill which has provisions allowing the arrest and indefinite detention of U.S. citizens by the military without due process. How do you reconcile this policy with the 4th and 5th Amendments to the U.S. Constitution?

4. It is almost universally acknowledged that Social Security and Medicare have unfunded liabilities that can never be paid, with Medicare representing the graver financial threat. Both of you argue that the programs must be preserved. However, don’t U.S. citizens who weren’t even born when these programs were started have a right to opt out of them, if they agree to waive all benefits in exchange for not being required to pay in? Would you sign a bill allowing younger workers to opt out under those conditions?

Continue at Communities@ Washington Times…

What Ron Paul didn’t say

TAMPA, September 6, 2012 — There was no big announcement during Ron Paul’s appearance on Jay Leno Tuesday night. On the contrary, Paul’s appearance was somewhat anticlimactic given Mitt Romney’s nomination at the Republican National Convention last week. Of course, he still said what he has been saying for over thirty years in public life: America must stop spending money it doesn’t have, must liquidate its debts and rethink the role of government as cradle-to-grave caregiver and policeman of the world.

Ron Paul has said many memorable things during his two most recent campaigns for president. A debate moderator tried to put him on the spot regarding his position on leaving Iraq, asking contemptuously, “What is your plan to get U.S. troops out of Iraq?” Paul replied without hesitation, “We marched right in there without a plan, we can march right out.”

When asked about Newt Gingrich’s suggestion that the U.S. government explore colonizing the moon, Paul replied, “No, I don’t want to go to the moon, although I’d like to send some politicians up there.”

A few days ago, I posed a question at the end of my story on the Maine delegation fiasco. What were they really so afraid of?

It wasn’t what Ron Paul said that had them so scared. It was what he didn’t say.

Continue at Communities@ Washington Times…

The real story behind those Ron Paul delegates from Maine

TAMPA, September 2, 2012 – By the time of Marco Rubio’s speech at the Republican National Convention (RNC), rhetoric overload and sore feet had overcome any desire I had to listen. I sat down at a table in the corridor of the Tampa Bay Times Forum. A few minutes later, several young people sat in the other chairs.

One of them was wearing a tee shirt that read, “Texas Remembers the Alamo, and the Maine, and the Oklahoma, and the Louisiana, and the Oregon, and the Massachusetts.”

Those are the other five states in which Ron Paul had majorities one week before the RNC. Together with the three states he actually won (Iowa, Minnesota and Nevada) Ron Paul would have carried eight states had many of those delegates not been unseated at the last minute.

The man wearing the tee shirt was Chris Howe, Ron Paul supporter and alternate delegate from Texas. Rob Hinojosa was a guest and the graphic designer of the tee shirts.

One day before, both had marched out of the RNC along with the Maine delegation and an army Ron Paul’s other delegates chanting “As Maine goes, so goes the nation!”

Howe and Hinojosa went to work on their smart phones and in short order produced Ashley Ryan, 21, the youngest national committeewoman in the history of the Republican Party.

Continue at Communities@ Washington Times…

Ryan confirmed that Ron Paul did indeed still have 20 of the 24 delegates from Maine as of the day before the RNC. They had been ready for a fight since learning of a challenge to the delegation a month earlier.

All that has been reported so far is that the delegation was contested on the grounds that the state convention did not follow “parliamentary procedure.” However, the details tell a very different story.

“The contest was filed by current national committeewoman Jan Staples and Peter Cianchette, who was the Romney state director for Maine. Those are well-known Romney supporters. They filed the contest based on the claims that our state convention lacked credentialing and lacked security. The ironic thing about that is that Jan Staples is on the executive committee for the party, so it was her job to plan the state convention. So if there was lax credentialing or if there was lax security, that would have been her fault,” explained Ryan.

Credentialing and security means that the officers of the convention ensure that all inside are who they say they are and that only duly elected delegates are present to vote.

“When they first presented their case to the contest committee, the contest committee found that there wasn’t enough evidence to invalidate the state convention or to rule against the delegates. So, instead of throwing it out like you would in a regular court of law – in a court of law if you sue someone and you don’t have enough evidence your case gets thrown out – in this situation the RNC kicked it down the line for a few more weeks and said we’ll figure it out in Tampa,” continued Ryan.

So, the convention is chaired by a Romney supporter and the national committeewoman in charge of credentialing and security is a Romney supporter. After Ron Paul supporters win a landslide victory, that same committeewoman joins Romney’s state campaign director in filing a contest based upon her own failure to ensure proper credentialing and security. The matter is put before the RNC, who are working hand in hand with Romney’s campaign.

As Ron Paul himself once wrote of the Federal Reserve System, “If that sounds fishy, then you understand it just fine.”

A call on Friday to Ms. Staples’ home phone was not returned.

Facing similar pressure, four of the five states agreed to have some of their delegates replaced with Romney supporters, but Maine held out.

“We didn’t agree to anything. We decided that we’d fight until the very end. The Committee on Contests made a recommendation to the Committee on Credentials to take 10 of our delegation off, 10 of our alternates off, so that’s 20 people total, and then the RNC hand-picked 10 delegates and 10 alternates to take their place, obviously who are all Mitt Romney supporters, all hand-picked and for the most part, party insiders” said Ryan.

So who were these unelected delegates? Are they even from Maine?

“These people are from Maine, but the people who chose these people are not from Maine. From what I’ve been told, but I haven’t been able to confirm this yet, our state party paid for them to come down, paid for their travel expenses and their hotel expenses, which a lot of people are incredibly angry about because they worked for months and in some cases years to make sure that they could afford to be here. They saved up over the four years to be able to fly down and now the state party is paying to fly down people who were never elected,” said Ryan

These details lend insight into former Republican National Committee Chairman Michael Steele’s comment to Jon Stewart that the RNC’s treatment of Ron Paul and his supporters was “the height of rudeness and stupidity.”

“Why would you alienate them,” continued Steele, “get on the floor and not let them speak? Let his name go up on the board and let them see the numbers of electoral votes that he received.”

Had all of his delegates been seated, Ron Paul would also have been entitled to a 15-minute, unedited speech.

Apologists for the RNC claim that all of this was done to ensure that the convention came off as a show of unity within the party behind its nominee for president.

One has to wonder, though. What were they really so afraid of?

Tom Mullen is the author of A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Peter Schiff on The Real Crash, Austrian economics and Ron Paul

TAMPA, August 30, 2012 – Like Ron Paul, Peter Schiff was predicting the 2008 economic meltdown long before it occurred. Schiff is the president of Euro Pacific Capital, a firm that pursues investment strategies based upon Schiff’s contrarian economic analysis. Clients who took his advice over the past decade did very well, even after the financial crisis.

Both Paul and Schiff are proponents of the Austrian school of economics, which emphasizes free markets, sound money and Carl Menger’s subjective theory of value. Asked to describe what the “Austrian school” is, Schiff quipped,

“It’s kind of like you’re asking me ‘What’s Science? Or what’s astronomy, because you believe in astrology. Austrian economics is economics. Keynesianism is like a witch doctor. It’s all a bunch of nonsense, but politicians love Keynesianism, because it justifies what they want to do to get elected, which is spend more money, promise something for nothing, play Santa Claus.”

Schiff was Ron Paul’s economic advisor during the 2008 campaign.

Schiff became a national sensation when the predictions documented in his 2007 book, Crash Proof: How to Profit from the Coming Economic Collapse, came true. Not only was Schiff the darling of nationally televised financial and investing programs, but he found a whole new audience among Ron Paul supporters, who drove millions of page views to the You Tube video “Peter Schiff was right.”

Continue at Communities@ Washington Times…

 

Ron Paul’s “We are the Future Rally” unlike any other political event

TAMPA, August 27, 2012 ― Everyone knows what to expect from a political rally. Speakers recite the party line on various subjects. The audience already agrees with them and knows what they are going to say. The crowd cheers. The opposition is trashed. The crowd cheers again. The keynote speaker is introduced. Standing ovation. More talking points.

Ron Paul’s “We Are the Future Rally” couldn’t have resembled that model less. Rather than politics, the entire program focused on ideas.

His first three speakers were libertarian philosophers Lew Rockwell, Walter Block and Butler Shaffer. There were no talking points. Instead, attendees were treated to intellectual arguments for individual liberty from three of the most powerful libertarian thinkers alive.

Not everyone agreed, either. Block’s controversial argument for a new libertarian stance on abortion actually drew boos. Block argued that a woman has a property right in her body and thus can evict a “trespassing” fetus from her womb, but does not have a right to take the fetus’ life. Block claimed that this was possible now during the third trimester of pregnancy and that as the science advanced, it would be possible earlier and earlier.

Some of the more conservative among Paul’s following weren’t ready to hear it.

There were speeches by politicians Barry Goldwater, Jr. and South Carolina State Senator Tom Davis, but even these were atypical. Goldwater read from and commented on passages from his father’s Conscience of a Conservative, while Davis focused exclusively on attacking the Federal Reserve System.

Paul’s official campaign blogger and rising conservative star Jack Hunter continued with a talk on conservative philosophy, citing Ronald Reagan, Russell Kirk and other noteworthy conservatives. Hunter reminded supporters of Reagan’s “three-legged stool” theory of conservatism: equal parts national security conservatives, religious conservatives and economic/libertarian conservatives. Hunter argued that it was the absence of the libertarian leg that led to the profligacy of the Bush years. He quoted Reagan saying, “libertarianism is the very heart and soul of conservatism.”

None of this is to suggest that the affair was a quiet seminar with attendees nodding their heads and taking notes. Right from senior campaign advisor Doug Wead’s opening remarks, the atmosphere was electric and the applause thunderous. As usual, remarks on the Federal Reserve System and Paul’s non-interventionist foreign policy got the most enthusiastic response.

Continue at Communities@ Washington Times…

Repealing Glass-Steagall did not create the banking monster

TAMPA, August 22, 2012 – As we approach the Republican and Democratic National Conventions with two major party candidates that don’t substantively disagree on anything, debate about the causes of the housing bubble and what should be done about it will inevitably recur.

Both candidates advocate massive government intervention. They just disagree about the details.

Neil Barofsky weighs in with the generally accepted argument that the repeal of Glass-Steagall was the creator of what he calls “the monster,” highly leveraged investment banks taking extraordinary risks that led to the 2008 financial meltdown.

Barofsky is right about Wall Street being a monster, but the repeal of Glass Steagall wasn’t its Frankenstein. As Tom Woods explains in his bestseller, Rollback,

“But did the repeal of two provisions of Glass-Steagall allowing affiliation of commercial banks with securities firms through their control by the same holding company contribute to the losses and risk that permeated the system? Certainly not. For one thing, commercial banks bought mortgage-backed securities for their AAA rating, their attractive return, and the minimal capital requirements associated with holding them; they did not acquire these assets because they were connected to investment banks that were trying to unload them.

Moreover, severe regulatory firewalls essentially prevent this kind of affiliation from contributing to losses or increased risk on the part of the commercial bank involved. The reverse problem, that affiliation with a commercial bank might bring down and investment bank, is exceedingly unlikely, given the relative magnitudes of assets held by each institution. The commercial banks’ assets were only a tiny fraction of those held by the investment banks they were affiliated with. These banks were in no position to cause the investment banks any serious problem, much less their complete downfall.”

If that’s true, then why was that “sucker going down,” as President Bush so eloquently put it?

Continue at Washington Times Communities…

Audit the Fed first shot in Ron Paul’s revolution

TAMPA, August 3, 2012 – “When I was your age, I went to the movies for a dime and bought a big bag of popcorn and a soda for a nickel.”

My father said that to me a hundred times when I used to pay $2.75 to go to the movies and another $1.25 for the popcorn and soda. For five generations, Americans have understood steadily rising prices as an immutable law of nature. Yet history shows that this just isn’t true.

The Federal Reserve of Minnesota publishes historical inflation figures on its website going back to 1800. The attached chart from that website shows annual inflation rates from 1800 through 2008. I added the last column to calculate the price movements of a basket of goods that cost $100 in 1800.

You don’t need a Ph.D. in finance for the numbers to jump off the page. The basket of goods that cost $100 in 1800 only cost $58.10 in 1913 (the year the Federal Reserve System was created). For that entire first full century of American history, steadily decreasing prices were something Americans took for granted.

In the ninety-nine years since the creation of the Federal Reserve System, that same basket of goods has risen to $1,265.14.

Continue at Washington Times Communities…

Exclusive Interview: Rand Paul weathers endorsement storm

TAMPA, June 18 2012 – 218 years ago, George Washington signed the Jay Treaty, reestablishing economic relations with the British. Claiming that John Jay and the Federalist Party had sold America out to the British and betrayed France, Jefferson’s Republicans denounced Jay as a monarchist and a traitor.

His effigy was burned and one newspaper went so far as to print, “John Jay, ah! the arch traitor – seize him, drown him, burn him, flay him alive.”

Senator Rand Paul of Kentucky might know how Jay felt. Since endorsing Mitt Romney for president on June 7, Paul has endured a barrage of criticism from his father’s supporters and those who consider themselves part of the larger “liberty movement.”

There have even been a few death threats.

I spoke to Senator Paul last Thursday. He was understandably concerned by the more outlandish reactions, but put them in perspective.

“The people that are over the top and even making death threats on the internet, I hope they are not serious, but they are a small number of people making a disproportionate number of the comments. A lot of those people may not even vote or may not have voted for my father. They don’t represent the majority of the people that support what we’re fighting for.”

Overlooked during the controversy is Paul’s promise to his constituents to endorse the Republican nominee. Paul won a decisive victory in Kentucky with far more than Ron Paul supporters behind him. Without promising to endorse the nominee, Paul may have never even won the Republican nomination, much less become a U.S. Senator.

“I’ve said all along that I would endorse the Republican nominee. I made that promise during my own campaign, because it was a concern for many Republicans that my dad hadn’t endorsed the Republican nominee in the past. People should understand that it doesn’t mean that I’ve changed my philosophy or adopted anyone else’s.”

Continute at The Washington Times Communities…

Will Ron Paul delegates make Romney flip flop again?

TAMPA, June 10, 2012 – With all but one of the Republican primaries concluded, there are two things that are clear. The first is that unless something very improbable occurs, Mitt Romney will be the Republican nominee for president in 2012. The second is that Ron Paul will have an army of delegates at the Republican National Convention (RNC) in August.

The media continue to wonder what Paul hopes to accomplish with those delegates, although he has been clear from the beginning. His primary goal was to win the nomination. His secondary goal was to influence the direction of the Republican Party.

Paul has remained consistent in his strategy. In a June 6 e-mail to supporters, Paul said

“We stand to send nearly 200 bound delegates to the Republican National Convention in Tampa…What’s more, we will send several hundred additional supporters to Tampa who, while bound to Romney, believe in our ideas of liberty, constitutional government, and a common-sense foreign policy. When it is all said and done, we will likely have as many as 500 supporters as delegates on the Convention floor.

And while this total is not enough to win the nomination, it puts us in a tremendous position to grow our movement and shape the future of the GOP!”

Some of Paul’s supporters dispute that any of the RNC delegates are bound to vote for any candidate, citing Republican Party Rule No. 38. Obviously, Ron Paul doesn’t see it that way.

However, one thing everyone acknowledges is that no delegate to the RNC is bound to any candidate’s position on the issues. That means Paul’s 500 delegates can vote any way they want regarding the Republican Party platform.

Continue at Washington Times Communities…