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minnesotachris uploaded a new video
(6 days ago)
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Trust Us; We're the Government
by Ron Paul
While much has been made recently of the President's unconstitutional appointment of Richard Cordray to be director of the Consumer Financial Protection Bureau (CFPB), lost in the hubbub has been any discussion of the unconstitutionality of, or the need for, the CFPB itself. Proponents of the CFPB claim that this new bureaucracy will help consumers by protecting them from fraudulent activity. In reality, it will only expose consumers to more financial harm.
Housed within the unconstitutional Federal Reserve, and funded not through Congressional appropriations but through the Federal Reserve's interest revenue off the trillions of dollars of US government debt it holds, the structure of the CFPB ensures that it is run by unelected, unaccountable bureaucrats, with no effective oversight from Congress. Given broad power to regulate the activities not only of banks, but also of any other entity which the government deems offers a financial product, there is almost no limit to the scope of financial activities which the CFPB can oversee.
Giving impetus to the CFPB's creation was the poor reputation of Wall Street banks and financial firms that developed as a result of the financial crisis. Banks which received trillions of dollars of taxpayer-funded bailouts turned around and shafted their customers by foreclosing on homes, raising credit card interest rates, and introducing numerous new fees.
But rather than keeping Wall Street in check as its proponents allege, the CFPB will end up placing further restrictions on the ability of Main Street Americans to engage in productive financial endeavors. Current law already allows only the richest Americans to invest in potentially lucrative ventures such as hedge funds because such investments are deemed to be "too risky" for the average American to invest in. The government in its paternalistic wisdom treats American investors as too stupid to know what to do with their own money, and "protects" them, supposedly, by keeping them poorer than they otherwise would be. We can expect even more of this once the CFPB is running in full stride.
The CFPB will further harm consumers by encouraging them to use only financial products which have received the Bureau's approval. Many consumers will assume that these products are "safe", and will fail to engage in their own due diligence, with predictably unfortunate results. We have seen this with the stock markets and the cases of Bernie Madoff and Allen Stanford, where investors trusting the SEC to prevent fraud ended up suffering huge losses. Social Security is a similar case, in which millions of people placed their trust in the government to take care of them in their old age. The inability of Social Security to pay its future obligations is well understood but ignored, and millions of Americans will likely once again learn the hard way that the government cannot be taken at its word.
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minnesotachris uploaded a new video
(1 week ago)
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minnesotachris uploaded a new video
(1 week ago)
http://RonPaul2012.com
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Failed Fed...
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Failed Fed Policies Prolong the Agony
by Ron Paul
The Federal Reserve's interest rate price-setting board, the FOMC, met last week. They will continue to set the federal funds rate at well below 1%, and plan to keep it low until the end of 2014. That's a year and half longer than they planned when they met just last month. Chairman Bernanke says they are keeping interest rates so low for so long because the economic outlook warrants it.
The fallacies in their reasoning would be amusing if they weren't so dangerous. The Fed wants to keep the price of money at essentially zero -- in other words "free" -- to boost the economy. But the boost they are attempting won't get here for another three years. That's not a recovery. And we've already tried this tactic. That's how we got into this mess in the first place: with interest rates artificially low for a very long time. Free money doesn't stimulate growth, as Japan's two lost decades clearly show. Artificially low interest rates only serve to punish saving, distort market signals, and cause further malinvestment. They also do nothing to address the only real solution to our economic woes: liquidation of the bad debt that hangs around the neck of the world's economy, preventing recovery. Artificially low interest rates merely ensure that we remain a debt-financed consumer economy guaranteed to end up with a weaker economy and higher prices.
What baffles me even more is that two decades after the collapse of Soviet planning and decades more since the U.S. and economists purportedly rejected the idea of price setting, we find nothing wrong with the Fed setting the price of money. We all agree it is a bad idea to have a board saying the price of wheat should be $250 a ton today, or carpenters wages should be $25 an hour until the end of 2014. But we are perfectly comfortable with having a board set the price of one half of every transaction in our economy. And our markets are supposedly free.
The Fed policies of low interest rates, Operation Twist, and rounds of quantitative easing are all attempts to keep the economy alive artificially. But the 12 FOMC participants cannot manage the economy any better than the bureaucrats of the Soviet Union. The policies haven't worked. They won't work. Real economic recovery cannot come until we liquidate the bad debt, until we eradicate the poor decisions we made over the last decade, and start with a sound foundation. It is time we acknowledge the truth of the Fed's activities: they are merely using fancy words for price setting.
Treasury Secretary Andrew Mellon was correct in the 1920s when he said "liquidate everything." That's what we did in the severe depression of 1920-21, and we recovered so quickly it is never even talked about. We didn't take his advice after the 1929 crash, and ended up with the Great Depression. We are committing the same mistakes, destined to live in this Great Recession for a decade or more—it has already been four years, the Fed says it will be at least three more! It's time we start rethinking what the Fed's policies are really doing to our economy, because obviously, by their own admission, they haven't helped.
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minnesotachris uploaded a new video
(2 weeks ago)
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minnesotachris uploaded a new video
(2 weeks ago)
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Although Congress was back in sess...
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Although Congress was back in session for scarcely more than a day last week, private citizens across the country managed to cause an uproar felt across Capitol Hill. The uproar took the form of hundreds of thousands of phone calls to both Senators and Representatives, urging them to oppose two draconian new bills that threaten the free and unbridled flow of information on the internet.
On Wednesday last week, dozens of prominent websites like Wikipedia, Reddit, and Craigslist, were blacked out in protest of two bills known in DC jargon as SOPA and PIPA. SOPA is the House bill; PIPA is its Senate companion. These bills ostensibly will combat internet piracy, and of course we also are told they will help us wage the never ending "war on terror."
What these bills actually do is force website owners to police the internet; create entry barriers to the only relatively free and open medium of communication; and threaten to break the technological structure of the internet itself. They also violate our 1st Amendment right to freedom of speech and our 4th Amendment freedom from unreasonable searches and seizures.
SOPA and PIPA have been drafted not only without respect for the Constitution, but also without an understanding of the how the internet works. These bills attack the very system upon which the entire orderly organization of the web depends. Search engines, internet service providers, advertising sites, and sites with user-generated content such as Facebook, YouTube, and Twitter--all magnificent creations of the market-- are directly threatened by these bills. They will be held responsible if even a single of their millions of users posts even one link to a website that a copyright holder claims is violating a copyright.
Note that under the bills as written, the Department of Justice or a copyright holder do not have to prove that their copyright was violated-- they simply have to claim copyright infringement and an entire site is shut down. The burden of these regulations on the internet will be enormous, shifting resources away from productivity and innovation and into monitoring and censoring. It turns internet companies into involuntary tools for Big Brother government, further eroding our Constitutional rights.
As is typical of so many bills in Congress, SOPA and PIPA were not crafted to make life better for the American people, but rather were written at the behest of big business trying to enlist the federal government as its strong-arm. For example, the Motion Picture Association of America spent more than $1.2 million so far lobbying for their passage.
But the internet community is fighting back effectively, not just with websites that went black but with millions of users who expressed their solidarity. Congressional sponsors of both bills have been jumping ship in response to the outrage. The House Judiciary Committee canceled the SOPA hearing they were planning to hold last Wednesday; the House leadership announced they have no intention of considering this bill; and at the end of the week Senator Reid announced he was postponing the vote until a "compromise" could be reached. The American people are speaking, and with their continued grassroots efforts the marketplace for free ideas and communication will prevail over government controls and censorship.
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Joseph gutiz