Posts tagged Ron Paul
Banks and Reid working together? “Nuclear Option,” a move to make sure Yellen is confirmed and QE continues? (Video)0
Banks and Reid working together? “Nuclear Option,” a move to make sure Yellen is confirmed and QE continues? (Video)
This in an interesting take on why Reid moved when he did. From one of the best connected people in politics, Ron Paul. (He does have a son in the Senate.)
End the Fed.
Image credit: http://www.againstcronycapitalism.org
Apple’s Siri is asked: “What are your political views?” Answers with Ron Paul!
I have to say – this is pretty cool.
Video capture added to original post.
By Ron Paul
Federal Reserve Steals From the Poor and Gives to the Rich
Last Thursday the Senate Banking Committee held hearings on Janet Yellen’s nomination as Federal Reserve Board Chairman. As expected, Ms. Yellen indicated that she would continue the Fed’s “quantitative easing” (QE) polices, despite QE’s failure to improve the economy. Coincidentally, two days before the Yellen hearings, Andrew Huszar, an ex-Fed official, publicly apologized to the American people for his role in QE. Mr. Huszar called QE “the greatest backdoor Wall Street bailout of all time.”
As recently as five years ago, it would have been unheard of for a Wall Street insider and former Fed official to speak so bluntly about how the Fed acts as a reverse Robin Hood. But a quick glance at the latest unemployment numbers shows that QE is not benefiting the average American. It is increasingly obvious that the Fed’s post-2008 policies of bailouts, money printing, and bond buying benefited the big banks and the politically-connected investment firms. QE is such a blatant example of crony capitalism that it makes Solyndra look like a shining example of a pure free market!
It would be a mistake to think that QE is the first time the Fed’s policies have benefited the well-to-do at the expense of the average American. The Fed’s polices have always benefited crony capitalists and big spending politicians at the expense of the average American.
By manipulating the money supply and the interest rate, Federal Reserve polices create inflation and thereby erode the value of the currency. Since the Federal Reserve opened its doors one hundred years ago, the dollar has lost over 95 percent of its purchasing power —that’s right, today you need $23.70 to buy what one dollar bought in 1913!
As pointed out by the economists of the Austrian School, the creation of new money does not impact everyone equally. The well-connected benefit from inflation, as they receive the newly-created money first, before general price increases have spread through the economy. It is obvious, then, that middle- and working-class Americans are hardest hit by the rising level of prices.
Congress also benefits from the devaluation of the currency, as it allows them to increase welfare- and warfare-spending without directly taxing the people. Instead, the increase is only felt via the hidden “inflation tax.” I have often said that the inflation tax is one of the worst taxes because it is hidden and because it is regressive. Of course, there is a limit to how long the Fed can facilitate big government spending without causing an economic crisis.
Far from promoting a sound economy for all, the Federal Reserve is the main cause of the boom-and-bust economy, as well as the leading facilitator of big government and crony capitalism. Fortunately, in recent years more Americans have become aware of how the Fed is impacting their lives. These Americans have joined efforts to educate their fellow citizens on the dangers of the Federal Reserve and have joined efforts to bring transparency to the Federal Reserve by passing the Audit the Fed bill.
Auditing the Fed is an excellent first step toward restoring a monetary policy that works for the benefit of the American people, not the special interests. Another important step is to repeal legal tender laws that restrict the ability of the people to use the currency of their choice. This would allow Americans to protect themselves from the effects of the Fed’s polices. Auditing and ending the Fed, and allowing Americans to use the currency of their choice, must be a priority for anyone serious about restoring peace, prosperity, and liberty.
Economist Attacks Ron Paul
Recently, Ron Paul wrote a important piece, Chained CPI Chains Taxpayers. In the piece, Dr. Paul explains how the chained CPI “is an effort to alter the perceived impact of inflation via the gimmick of ‘full substitution.””
Economist David Henderson objects to this view. He writes:
By using the words “gimmick” and “perceived,” Paul makes it sound as if the purpose of the chained CPI is to trick people into thinking that their cost of living has not gone up as much as the old CPI said. That’s not true. The purpose of the chained CPI is to get a more accurate read on how much the cost of living has gone up.
But how can chained CPI not be a distortion? Henderson, himself, writes:
When the price of one good rises a lot and the price of another good rises a little or not at all, and those goods are, in many people’s minds, substitutes, people will tend to substitute out of the good whose price has risen more and into the good whose price has risen less. So the purpose of the chained CPI is to take account of that in order to estimate the cost of achieving a given level of utility.
First off, if the price of one good rises and therefore I substitute a lower priced good, my standard of living has indeed been altered. If I like steak, but the price of steak rises beyond my budget and I substitute a Mrs. Stouffer’s television dinner, Henderson may not see the decline in my standard of living that has occurred, nevertheless in my mind as consumer, the decline is pretty damn obvious. I have made a substitution, not because I see the two products as nearly identical but because the price increase for steak has pushed it out of my budget. Henderson is wrong in implying that because I am substituting one good for another that I see the two products as early identical.
Second, Henderson pulls out of his hat the use of “utility” as though it were somehow a calculatable cardinal number. There is no such calculatable number. Austrian economics teaches us that all we can do is rank our values on a value scale.
As Murray Rothbard put it:
Ron Paul image added to original post.
The Economic Crisis On Our Doorstep
Published by Libertarianism.org
Dr. Ron Paul was formerly the U.S. Representative for Texas’s 14th congressional district. He has also been a three-time candidate for President of the United States; as a Libertarian in 1988 and as a Republican in 2008 and 2012.
Paul speaks at a meeting of the Economic Club of Detroit in 1988. He warns of a coming economic crisis, which he claims is the end result of the government’s fiscal and monetary programs.
Again, Ron Paul had it right and told all willing to listen regarding the upcoming economic crisis.
By Ron Paul
Chained CPI Chains Taxpayers
One of the least discussed, but potentially most significant, provisions in President Obama’s budget is the use of the “chained consumer price index” (chained CPI), to measure the effect of inflation on people’s standard of living. Chained CPI is an effort to alter the perceived impact of inflation via the gimmick of “full substitution.” This is the assumption that when the price of one consumer product increases, consumers will simply substitute a similar, lower-cost product with no adverse effect. Thus, the government decides your standard of living is not affected if you can no longer afford to eat steak, as long as you can afford to eat hamburger.
The problem with “full substitution” should be obvious to anyone not on the government payroll. Since consumers did not choose to buy lower-priced beef before inflation raised the price of steak, they obviously preferred steak. So if the Federal Reserve’s policies create inflation that forces you to purchase hamburger instead of steak, your standard of living is lowered. CPI already uses this sort of substitution to mask the costs of inflation, but chained CPI uses those substitutions more frequently, thereby lowering the reported rate of inflation.
Supporters of chained CPI also argue that the government should take into account technology and other advances that enhance the quality of the products we buy. By this theory, increasing prices signal an increase in our standard of living! While it is certainly true that advances in technology improve our standard of living, it is also true that, left undisturbed, market processes tend to lower the prices of goods. Remember the mobile phones from the 1980s? They had limited service, constantly needed charging, and were extremely expensive. Today, almost all Americans can easily afford a mobile device to make and receive calls, texts, and e-mails, as well as use the Internet, watch movies, read books, and more.
The same process occurred with personal computers, cars, and numerous other products. If left alone, the operations of the market place will deliver higher quality and lower prices. It is only when the government interferes with the operation of the market, especially via fiat money, that consumers must contend with constant price increases.
The goal of chained CPI is to decrease the government’s obligation to meet its promise to keep up with the cost of living in programs like Social Security. But it does not prevent individuals who have a nominal increase in income from being pushed into a higher income bracket. Both are achieved without a vote of Congress.
Noted financial analyst Peter Schiff correctly calls chained CPI a measurement of the cost of survival. Instead of using inflation statistics as a political ploy to raise taxes and artificially cut spending, the President and Congress should use a measurement that actually captures the eroding standard of living caused by the Federal Reserve’s inflationary policies. Changing government statistics to exploit the decline in the American way of life and benefit big spending politicians and their cronies in the big banks does nothing but harm the American people.
Ideas Created The Federal Reserve…Ideas Can Get Rid of It
The Washington Post‘s Wonkblog, which can be counted on to defend every government mischief imaginable, reports on an “all-star economic conference” that took place in DC. Whenever you hear of an “economic conference” in DC, it can only mean trouble. The real economic conferences take place in Auburn, Alabama.
In the DC conference, the King of the “all-stars” — Fed Chairman Bernanke — graced the stage, and would provide a history lesson for all of the attendees. Bernanke described the similarities between the Panic of 1907, and the Panic of 2008.
The 1907 panic was created by fractional-reserve banking. When the bank runs got underway, and panic set in amongst the public, JP Morgan orchestrated the bailouts and the “liquidity” to “save the system”. Remember this was pre-Fed.
The 2008 panic was also created by the fractional-reserve banking system — along with — the central banking counterfeiter that now exists. The bailouts this time around were provided by “The Hero”:
Before we go any further, a few things have to be understood. First, both in 1907 and 2008 the banking systems were dishonest and fraudulent. The situation in 1907 is actually preferable to today because, back then, gold still provided a check on the bankers. In 2008 (and today) there are no checks. It’s basically unlimited power for the bankers to finance whatever they want (until economic law shuts them down eventually).
Image credit: http://www.economicpolicyjournal.com
Ron Paul Introduces New Official Website: RonPaulMD.com
While reading a new post this morning on the Ron Paul Institute website I was very happy to discover the arrival of RonPaulMD.com, which is Ron Paul’s personal and official site. Below Ron Paul created a video to explain the new official site, welcome new viewers and describe what can be expected, sort of a mission statement, regarding the contents and purpose of RonPaulMD.com. Ron Paul also offers insight as to his selection of the new domain name and reflects back to the importance of his medical career.
Click the screen capture below to visit the welcome video created by Ron Paul.
By Ron Paul | November 8, 2013
When I was thinking of the URL for my new personal homepage, I considered many possibilities. Thanks also to all those who sent other suggestions. But I settled on RonPaulMD.com as reflecting a very important area of my life. To be a physician, and deliver 4,000 babies, was extremely fulfilling. Many times, I see people wearing a “I Was a Ron Paul Baby” t-shirt. Once, when I gave a speech in Iowa, I was told the head of the convention center wanted to talk to me. She had her birth certificate, and this time, she said, she wanted a legible signature! I was delighted to sign it again.
Vince Vaughn Expresses His Support For Ron Paul on The Adam Carolla Show
Vince Vaughn is solid here, and on a show that’s so popular it made the Guinness Book of World Records.
Eat your heart out Hollywood.
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Glenn Jacobs (WWE Wrestler Kane) Talks Libertarianism, and His Heroes
Published by TomWoodsTV
Tom Woods interviews Tennessean and WWE wrestler (Kane) Glenn Jacobs regarding the philosophy of Libertarianism, personal freedom and economic liberty.