Archive for July 27th, 2008
Dr. Ron Paul, a Republican member of Congress from Texas, said before the US House of Representatives Financial Services Committee, at the full committee hearing on “Implications of a Weaker Dollar for Oil Prices and the U.S. Economy,” on the 24th July, 2008 The following has been taken by the famous “Lew Rockwell Column”.
The root of our current economic malaise, the weak dollar, the high price of oil, and the collapse of the housing market, comes about because almost no one understands what inflation is. Inflation is an increase in the money supply, which occurs by various methods, the printing of currency, low reserve requirements, Federal Reserve open market operations, etc.
In Germany in the 1920s, South America in the 1980s, and Zimbabwe today, everyone recognizes that inflation was caused by the government running the printing presses non-stop, with the resulting exponential rise in prices being the necessary result of monetary growth. Yet somehow, both the empirical and theoretical reality of inflation as a rise in money supply is ignored in this country. Inflation is conflated with price inflation, the increase in the overall price level, and is viewed as something both endogenous to the market economy while at the same time influenced by exogenous price shocks.
He then went on to say:
Until the cause of inflation is understood, no effective strategy can be undertaken to combat it. The problem, however, is that the government does not want inflation to be done away with. Inflation benefits debtors and harms creditors, and the United States government is the biggest debtor of all. The United States government, the banking monopoly under the Federal Reserve System, and politically-connected firms and industries are the first entities to take advantage of new money injected into the system, before prices increase. As the increased supply of money begins to chase the same number of goods, prices rise, and the average American suffers. Poor and middle-class Americans are always the hardest hit by inflation, as the weakening dollar makes the imported goods that many Americans depend on more expensive.
As Chairman Bernanke admitted last week, inflation is a tax, and it is the most pernicious because of its hidden nature. It taxes the very purchasing power of money, and because the inflation rate in recent years has generally been low, its effects often take a while to manifest themselves. Now that inflation is beginning to rise, more and more rhetoric is being spun to hide the government’s role in creating inflation. I applaud Chairman Frank for holding this hearing, as hearings such as this one investigating the link between the weak dollar and the high price of oil are more important now than ever.
Ron Paul has spent four decades in the US Congress and is known as Dr No. He has been the most consistent politician in recent American political history. His nickname was earned because lobbyists no longer approach him on behalf of corporates and other interests, knowing he will not take up their case for getting tax payers money to bail them out of their difficulties.
His is the only clear honest voice in politics on both sides of the pond (Atlantic) and if I were an American I would sell up everything I owned and would follow him to the four corners of the world.
He stood for the Presidency but was not accorded national airtime, other than to be ridiculed as the media is controlled by big business because the first thing he would do if he became President would be to abolish all Corporate Welfare (handing taxpayer’s money to big business).
However, on the Internet he drew an enormous following and in the last quarter in 2007 raised more money than any other Republican candidate. Alas, the opposition was too strong therefore Americans have lost the ability to grow rich.
The military budget with forces stationed in 750 bases in 130 countries around the world is costing 50% of the American budget. Income Tax is bringing in 30% of this budget. Ron would abolish Income Tax and bring the military home. Work out the mathematics. He would be billions in profit even after abolishing Income Tax. Americans would grow more wealthy and America would no longer be the most hated country in the world.
Congressman Paul is not an isolationist and will be willing to fight a war if the war has been officially declared. I believe the last war that America, or Britain, officially declared was WWII.
How Ron Paul votes in Congress, taken from one of Ron Paul’s website: (My highlighting)
He has never voted to raise taxes.
He has never voted for an unbalanced budget.
He has never voted for a federal restriction on gun ownership.
He has never voted to raise congressional pay.
He has never taken a government-paid junket.
He has never voted to increase the power of the executive branch.
He voted against the Patriot Act.
He voted against regulating the Internet.
He voted against the Iraq war.
A little potted history from the same website (I believe he now has great-grand children and has been married for 52 years)
Ron Paul was born and raised in Pittsburgh, Pennsylvania. He graduated from Gettysburg College and the Duke University School of Medicine, before proudly serving as a flight surgeon in the U.S. Air Force during the 1960s. He and his wife Carol moved to Texas in 1968, where he began his medical practice in Brazoria County. As a specialist in obstetrics/gynecology, Dr. Paul has delivered more than 4,000 babies. He and Carol, who reside in Lake Jackson, Texas, are the proud parents of five children and have 17 grandchildren.