From Fourwinds10
I don’t know if Dr. Paul has the right slutions to the economic situation, but he definitely is on it with regards to the bigger roots of the problem as well as is one of the only senators bold sufficient to publicly address it. The rest of congress doesn’t seem to get it, or maybe they do, but you have to ask, Who are they working for? it ain’t you as well as me. follow the money.
Statement of Congressman Ron Paul
 
On the Floor of the United States House of Representatives
 
November 20, 2008
 
Madame Speaker, numerous Americans are hoping the new administration shall solve the economic difficulties we face.  That’s not likely to happen, because of the fact that the economic advisors to the new President have no more understanding of how to get us out of this mess than previous administrations as well as Congresses understood how the crisis was took about in the first place.
 
Except on behalf of a rare few, Members of Congress are unaware of Austrian Free Market economics.  For the last 80 years, the legislative, judiciary as well as executive branches of our government have been totally influenced by Keynesian economics.  If they had had any understanding of the Austrian economic explanation of the business cycle, they would have never permitted the dangerous bubbles that at all times give rise to painful corrections.
 
Today, a major economic crisis is unfolding.  New government programs are started daily, as well as future plans are being made on behalf of even more.  All are based on the belief that we’re in this mess because of the fact that free-market capitalism as well as sound money failed.  The obsession is with more spending, bailouts of bad investments, more debt, as well as further dollar debasement.  Many are saying we require an international answer to our difficulties with the establishment of a world central bank as well as a single fiat reserve currency.  These suggestions are merely more of the same policies that created our mess as well as are doomed to fail.
 
At least 90% of the cause on behalf of the financial crisis can be laid at the doorstep of the Federal Reserve.  It is the manipulation of credit, the money supply, as well as interest rates that caused the various bubbles to form.  Congress added fuel to the fire by various programs as well as institutions like the Community Reinvestment Act, Fannie Mae as well as Freddie Mac, FDIC, as well as HUD mandates, which were all backed up by aggressive court rulings.
 
The Fed has now doled out adjacent to $2 trillion in subsidized loans to troubled banks as well as other financial institutions.  The Federal Reserve as well as Treasury constantly brag about the require on behalf of “transparency” as well as “oversight,” but it’s all just talk — they desire none at all of it.  They desire secrecy while the privileged are rescued at the expense of the middle class.
 
It is unimaginable that Congress could be so derelict in its duty.  It does nothing but condone the arrogance of the Fed in its refusal to tell us where the $2 trillion has gone.  All Members of Congress as well as all Americans should be outraged that conditions could deteriorate to this degree.  It’s no wonder that a large as well as growing number of Americans are now demanding an end to the Fed.
 
The Federal Reserve created our problem, yet it manages to gain even more power in the socialization of the entire financial system.  The whole bailout process this past year was characterized by no oversight, no limits, no concerns, no understanding, as well as no common sense.
 
Similar mistakes were made in the 1930s as well as ushered in the age of the New Deal, the Fair Deal, the Great Society as well as the supply-siders who convinced conservatives that deficits didn’t really matter at the end of all, since they were anxious to finance a very expensive deficit-financed American empire.
 
All the programs since the Depression were meant to prevent recessions as well as depressions.  Yet all that was done was to plant the seeds of the greatest financial bubble in all history.  Because of this lack of understanding, the stage is now set on behalf of massive nationalization of the financial system as well as quite likely the means of production.
 
Although it is obvious that the Keynesians were all wrong as well as interventionism as well as central economic planning don’t work, whom are we listening to on behalf of advice on getting us out of this mess?  Unfortunately, it’s the Keynesians, the socialists, as well as big-government proponents.
 
Who’s being ignored?  The Austrian free-market economists—the very ones who predicted not only the Great Depression, but the calamity we’re dealing with today.  If the crisis was predictable as well as is explainable, why did no one listen?  It’s because of the fact that excessive number of politicians trusted that a free lunch was possible as well as a new economic paradigm had arrived. But we’ve heard that one before–like the philosopher’s stone that could turn lead into gold.  Prosperity without work is a dream of the ages.
 
Over as well as above this are those who understand that political power is controlled by those who control the money supply.  Liberals as well as conservatives, Republicans as well as Democrats came to believe, as they were taught in our universities, that deficits don’t matter as well as that Federal Reserve accommodation by monetizing debt is legitimate as well as never harmful.  The truth is otherwise.  Central economic planning is at all times harmful.  Inflating the money supply as well as purposely devaluing the dollar is at all times painful as well as dangerous.
 
The policies of big-government proponents are operational out of steam.  Their policies have failed as well as shall continue to fail.  Merely doing more of what caused the crisis can hardly provide a solution.
 
The good news is that Austrian economists are gaining more acceptance every day as well as have a greater possibility of influencing our future than they’ve had on behalf of a long time.
 
The basic problem is that proponents of big government require a central bank in order to surreptitiously pay bills without direct taxation.  Printing needed money delays the payment. Raising taxes would reveal the true cost of big government, as well as the people would revolt.  But the piper shall be paid, as well as that’s what this crisis is all about.
 
There are limits.  A country can't forever depend on a central bank to retain the economy afloat as well as the currency functionable through constant acceleration of money supply growth.  Eventually the laws of economics shall overrule the politicians, the bureaucrats as well as the central bankers.  The system shall fail to respond except when the excess debt as well as mal-investment is liquidated.  If it goes too far as well as the wild extravagance is not arrested, runaway inflation shall result, as well as an entirely new currency shall be required to restore growth as well as reasonable political stability.
 
The choice we face is ominous:  We either take world-wide authoritarian government holding combined a flawed system, OR we restore the principles of the Constitution, restriction government power, restore commodity money without a Federal Reserve system, reject world government, as well as promote the cause of peace by protecting liberty equally on behalf of all persons.  Freedom is the answer.