Liberty Forged

the State has no money of its own, so it has no power of its own. ` Nock

Ron Paul in 2003

Posted by Jesse on January 18, 2008

It’s a long article, one that he gave on the House floor, September 5, 2003
Read the rest here

[Who else of the candidates can speak about this subject with such accuracy and clarity]

Artificially low interest rates deceive investors into believing that rates are low because savings are high and represent funds not spent on consumption. When the Fed creates bank deposits out of thin air making loans available at below-market rates, mal-investment and overcapacity results, setting the stage for the next recession or depression. The easy credit policy is welcomed by many: stock-market investors, home builders, home buyers, congressional spendthrifts, bankers, and many other consumers who enjoy borrowing at low rates and not worrying about repayment. However, perpetual good times cannot come from a printing press or easy credit created by a Federal Reserve computer. The piper will demand payment, and the downturn in the business cycle will see to it. The downturn is locked into place by the artificial boom that everyone enjoys, despite the dreams that we have ushered in a “new economic era.” Let there be no doubt: the business cycle, the stagflation, the recessions, the depressions, and the inflations are not a result of capitalism and sound money, but rather are a direct result of paper money and a central bank that is incapable of managing it.

…………..The two conditions that result from fiat money that are more likely to concern the people are inflation of prices and unemployment. Unfortunately, few realize these problems are directly related to our monetary system. Instead of demanding reforms, the chorus from both the right and left is for the Fed to do more of the same – only faster. If our problem stems from easy credit and interest-rate manipulation by the Fed, demanding more will not do much to help. Sadly, it will only make our problems worse.

……………It’s no coincidence that during the period following the establishment of the Federal Reserve and the elimination of the gold standard, a huge growth in the size of the federal government and its debt occurred. Believers in big government, whether on the left or right, vociferously reject the constraints on government growth that gold demands. Liberty is virtually impossible to protect when the people allow their government to print money at will. Inevitably, the left will demand more economic interventionism, the right more militarism and empire building. Both sides, either inadvertently or deliberately, will foster corporatism. Those whose greatest interest is in liberty and self-reliance are lost in the shuffle. Though left and right have different goals and serve different special-interest groups, they are only too willing to compromise and support each other’s programs.

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3 Responses to “Ron Paul in 2003”

  1. […] Jesse wrote an interesting post today on Ron Paul in 2003Here’s a quick excerptIt’sa long article, one that he gave on the House floor, September 5, 2003 Read the rest here. [Who else of the candidates can speak about this subject with such accuracy and clarity]. Artificially low interest rates deceive investors … […]

  2. […] unknown wrote an interesting post today onHere’s a quick excerpt It’s a long article, one that he gave on the House floor, September 5, 2003 Read the rest here [Who else of the candidates can speak about this subject with such accuracy and clarity] Artificially low interest rates deceive investors into believing that rates are low because savings are high and represent funds not spent on consumption. When the Fed creates bank deposits out of thin air making loans available at below-market rates, mal-investment and overcapacity results, setting the stage […]

  3. […] Here’s another interesting post I read today by Liberty Forged […]

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