Ron Paul at Sovereign Wealth Funds Hearing

http://www.house.gov/paul
http://www.CampaignForLiberty.com

This is Congressman Ron Paul's opening statement at the Financial Services Hearing on Sovereign Wealth Funds, September 10, 2008. The text can be found here:

http://www.house.gov/paul/congrec/congrec2008/cr091008h.htm

Mr. Chairman, once again we confront the issue of sovereign wealth funds, an issue which has become quite important due to the large amount of dollars and dollar-denominated bonds held by foreign governments, and the fears of these governments given the dollar's precipitous decline over the past few years. The past few days have been quite interesting, with speculation that one of the reasons for the government takeover of Fannie Mae and Freddie Mac was the more than $1 trillion in Fannie and Freddie debt held by foreign governments. The threat of default on this debt would have undoubtedly had massive repercussions on the value of the dollar and might have unleashed the nuclear threat of a massive international sell-off of government and agency debt.

The United States government now finds itself between a rock and a hard place. The massive amounts of debt that we have allowed to accumulate are hanging over us like Damocles' sword. Foreign governments such as Russia and China hold large amounts of government and agency bonds, and there are fears that as our creditors they will exert leverage over us. At the same time, as the dollar weakens, the desire to sell bonds and purchase better performing assets increases, leading to fears from others that foreign governments will attempt to purchase American national champion companies, or invest in strategic industries to gain sensitive technologies.

In either case, most politicians overlook the fact that we are in this situation because of our loose monetary and fiscal policy. Actions that would stifle the operations of foreign sovereign wealth funds would likely result in corresponding retaliatory actions by foreign countries against American pension funds and could have the same detrimental effects on the economy as the trade wars begun after passage of the Smoot-Hawley tariff. Rather than limiting or prohibiting investment by sovereign wealth funds, we should be concerned with striking at the root of the problem and addressing inflationary monetary and fiscal policy.

Debtors cannot continue building debts forever, and we now face strong indications that our creditors are eager to begin collecting what is owed them. It is not too late to correct our mistakes, but we must act now and cannot dally. We must drastically reduce government spending, end wasteful and disastrous interventions into financial markets, and rein in the Federal Reserve's inflationary monetary policy. Failing to do so will ensure a descent into financial catastrophe.

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[thinkrevolution]

I love you Ron Paul

[boethius27]

Ron Paul seems to be in a million places at once. Go Ron Go!

[purpatriot78]

EVERBODY SHARE THESE NUMBERS CALL AND LEAVE A COMMENT CALLING MSM OUT ON THEIR COMMENT THAT IF RP WINS IOWA THE CAUCUS WILL BE DISCREDITED USE YOU VOICES AND CALL THE OUT AND ON THE ANONYMOUS ATTACK ON IOWA POLLS LET THEM KNOW WE ARE NOT BUYING THEUR LIES ANYMORE CNN COMMENTN 1 404 827 1500 fox comment 1 888 369 4762 cbs comment 1 212 975 3247 ONE VOICE

[BroomStik123]

omg such bullshit nuff said

[attorneyskillforjew]

@nixwebo the people do not have a venue to vote. Only the dumbass slave citizens. But you wouldnt know anything about truth so nevermind

[attorneyskillforjew]

@curethedots you mean like the attorney berg who conned you on the obama scam? Or the attorney vicent fagboy of the jew who claimed he was going ot sue bush but really wnated you to buy his book? Or do you mean like htat attorney foreign agent kusinick(or whatever the jew name) who claimed he was going ot sue? you folks are so easily fooled byt he jew. It is sickening

[attorneyskillforjew]

see the other jew stting behind ron paul jew lover prison bitch?? you folks are fools. This piece of shit ron paul is here to help the jew murder non jews

[attorneyskillforjew]

@boethius27 that is because the jew who steals your money sends him all over just like they did theri nigger jew martin luther nigger king. Dont be fooled. That makes you a fool.

[attorneyskillforjew]

@thinkrevolution that is because the jew who steals your money sends him all over just like they did theri nigger jew martin luther nigger king. Dont be fooled. That makes you a fool.

[a4finger]

Ron Paul is right

[ngonea]

FRN's are debt insts, this is a credit system, credit, create debt, since FDR 's , HJR-192 this country is bankrupt, there is no way to pay off the debt, because there is no money of substance, this is a debt based system and you know it. Congress has funded the warmongers and financed military bases around the world, stop spending when the ppl are unemployed and homeless, stop spending on the Pentagon, CIA, FBI, DOD, NSA, spy networks, that should stop a lot of debt, much respect to Ron Paul