Ron Paul On The Proposed Government Bailout
U.S. News & World Report Associate Editor Luke Mullins got the chance to speak with political maverick and one-time candidate for POTUS, Congressman Ron Paul, about the government’s proposed massive intervention in the U.S. financial system. From his piece, “Ron Paul: This Bailout Won’t Be The Last”:
I recently chatted with Rep. Ron Paul (R-Texas) about the gigantic financial bailout that the government is preparing to undertake.
Some excerpts from the interview:
What’s your take on this huge financial bailout?
“It’s more of the same. More debt and more inflation and more pressure on the dollar. Ultimately, although the markets are responding very favorably at the moment, I think it is going to be devastating to the dollar and to our financial situation in this country.”
Dr. Paul sees some nasty stuff coming down the road. So do I.
You can read the rest of Mullins’ interview with the Texas congressman here.
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September 20th, 2008 at 12:27 am
I agree with Paul. In fact, my own blog commentary this evening raises some key questions about what is apparently not a part of this historic and stupid taxpayer rescue plan for the rich.
September 20th, 2008 at 10:20 am
Thanks for the comment charles.
September 20th, 2008 at 1:33 pm
Big business should not be allowed to become too large to fail. A business with that much influence is too big for a free market. It has access to wholesale market manipulation. And it has the privilege of depending on a government safety net if it fails.
The recent economic crisis demonstrates that such businesses will now be rescued at taxpayer’s expense when they suddenly collapse. The CEO of AIG has even demonstrated on national TV that big business leaders expect tax funded rescues. And that diminishes a primary incentive for them to be efficient and prudent. It may even encourage their board members to strategically create a crisis requiring a government bailout rather than suffer losses over time on their own. These business leaders have developed an attitude of entitlement that should inspire corporate welfare reform.
If businesses that are too big to fail are allowed to exist, then they should pay for their own government entitlement programs. This has been the arrangement for the lower classes. That is why social security tax rates in the United States become less for those who become wealthier. Wage earners should not be expected to pay for business welfare too. The influence these businesses have over markets should help them pay for their government programs. And to discourage corporate welfare fraud those in charge of businesses that either purposely or by neglect cause the government to pay for their rescue should be punished for a kind of embezzlement.
Bryant Arms
September 21st, 2008 at 2:48 am
The bailout is ridiculous, and not needed, and only taxes future generations. (And both candidates want to increase govt spending?) NESARA as drafted by Dr. Barnard is the only way out of our fiscal and monetary mess. Force balanced budget, abolish income and capital taxes in favor of 14% sales tax on everything else except rents, groceries, insurance, and medical services; new monetary tools to ensure 0% inflation; abolish compound interest on secured loans in favor of simple monetization fee, and require principals be paid before before banks are allowed to collect on the monetization fee. No payment no matter how small will always reduce a debt to zero, banks more willing to prevent foreclosures and will turn around funds for more loans sooner. No more of this pay for 2.5 houses just to own 1. Pay for just 1.5 and be done with it in 17 years. National debt paid off in 30 years while standard of living doubled within a generation. NESARA (not the hoax, but Dr. Barnard’s original version). A 21st century engineered solution for a 21st century economy. Google the NESARA Institute.
September 22nd, 2008 at 8:36 am
Thanks for the comment Bryant Arms. Very persuasive arguments against bailing out big businesses…
September 22nd, 2008 at 8:40 am
Thanks for the heads-up Ryan. Information on NESARA can be found at http://www.nesara.org.
September 24th, 2008 at 2:52 am
Any bailout should be publicly transparent. All financial info should be available in easily readable form on a publicized website. No employees/stockholders of these bailout should benefit by one cent. The ceo’s and their close cohorts should not be paid one dime for their greedy robbery of public moneys and public trust. The last three years of their wages should be open to attachment for past greedy/illegal actions. They should be barred from profiting in any way from the sale of assets. Any business profits should be put into a public trust to help pay of the public debt. All sales by the govt to private interests should be publicly publicly posted before the action so other businesses have a chance to bid. Corrupt government has destroyed the American Way, and opened the country to unspeakable danger and harm. In my mind, it is treason. The Govt. hearings are disgusting. No one talks about who will be the next big profiteers in this scam game. Unless every transaction is open to public scrutiny, the foul games will continue.
September 24th, 2008 at 7:30 am
Thanks for the comment b martin. You had me at “Any bailout should be publicly transparent.”
September 30th, 2008 at 4:10 am
Ron Paul knows whereof he speaks, but did you know many of the fat cats who circulate from board to board and from job to job throughout the financial industry, are also members of the Bilderberg Group and or the Trilateral Commission? When someone takes your money and steals your car, it makes an impression. When they belong to such a secret political clique, it leaves an indelible impression. Many elected officials even belong to these cabals, hence the secrecy. When Bill Clinton eased banking restrictions, he dished out $8-billion dollars for community reinvestment loans. When the financing schemes fell through, as is their wont whenever 30-million Mexican nationals buy inflated properties and default, it left banks in the lurch. Hillary Clinton counted on the loan giveaways to buy votes. Interestingly enough, had Hillary secured the nomination; she, instead of Barack Obama would preside over the bailout. So, where’s that $8-bilion plus dollars? Where’s Hillary? Why the caveat in Section 8 of the bailout: “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.” The Global Initiative people (code speak for car thieves) took my money; they stole my car. If you or I did half the things these people have done, we’d be serving consecutive life sentences. Wise up, get angry, and let the bubble burst. Remember, Ben Stein says we’re going to be just fine. You have my word on it. Gentlemen, I want my money back: http://theseedsof9-11.com
September 30th, 2008 at 7:54 am
Thanks for the comment Peggy. You know everything is fine and dandy if Ben Stein says so…
September 30th, 2008 at 12:38 pm
This has been going on for years. It started back with Deregulation. This brought down wages due to cut-throating. That wasn’t enough..then our U.S. companies moved overseas (outsourceing our jobs) which decreaseed jobs in this country. Looking back to the great depression at least there were factories and industry to supply jobs for us…now where can we go to get a job? All of our industry has moved overseas! The cost of everything has gone up while our wages remain the same or barely increased. Now the Rich & Stupid…(Not so stupid), after all they will be the one’s that benefit from the bail-out at our expense. When is enough, enough? I have always tried to do what is right, but if this goes through maybe I need to look at what they have been doing and follow their lead and they can bail me out. These Wallstreet CEO’S should be jailed and assets stripped and then this stupidity will stop! Please don’t reward them!
Rick B.
October 2nd, 2008 at 12:09 am
Thanks for the comment Rick B.
“Please don’t reward them!”
I predict the bailout will take place, and even worse, nothing will happen to Wall Street CEOs… especially in an election year. As the Irish literary figure George Bernard Shaw once put it:
American politicians are hoping this will indeed be the case.
October 3rd, 2008 at 8:42 pm
They passed the bailout almost exactly as proposed except for all of the ‘bribes’ we call pork barrel spending that are now part of the package too. And the benefits for the middle class; what a joke!
Only 12% of Americans make over 100000 dollars a year. The alternative minimum tax that has been for the most part repealed only begins to effect people who make between 100000 and 500000. That means less than 12% of Americans are benefiting from that goody.
The raising of the amount insured by the FDIC only helps people who have more than 100000 in their savings accounts. How many people really have that much money saved? Our nation has one of the lowest savings rates in the world. I wouldn’t be surprised if this goody for the middle class only helps around 12% of the population too. For that matter, it is probably the same 12% of people mentioned in the previous paragraph.
So maybe one person on ‘Main Street’ is being helped by this bailout for each of the fat cats on Wall Street.
Some of those fat cats include the media moguls. So it is no wonder that the talking heads and invited pundits in the mass media seemed outraged by the bailout’s first rejection. Maybe these media moguls even promised members of Congress reduced rates for campaign ads this election season in return for approving the bailout.
Obviously I am very upset. I hope this Congress ultimately gets the same punishment as the one that approved the 2nd Gulf War. The truth has a way of showing itself to the majority eventually.
In the meantime, Congress has expended a lot of political capital for this. It is almost as broke as Wall Street. So this is probably one of the best opportunites we have for getting some fundamental reforms created.
Bryant Arms
October 5th, 2008 at 10:48 am
Thanks for the comment Bryant Arms. Reminds me of something broadcast journalist Edward R. Morrow once said: