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According to Keith Poole of the
University of Georgia, on a scale measuring American politicians’
advocacy of government intervention in the economy (as opposed, among
other things, to positions on non-economic issues),
Paul’s voting record has been more consistently anti-interventionist
than that of any other member of Congress since 1937. He bases his
political philosophy – and his votes in Congress – upon the conviction
that “the proper role for government is to provide national defence, a
court system for civil disputes, a criminal justice system for acts of
force and fraud, and little else” (see Ron Paul,
Political Power and the Rule of Law, 5 February 2007). Dr Paul has
been nicknamed “Dr
No” – reflecting both his medical vocation and his
insistence that he will “never vote for legislation unless the
proposed measure is expressly authorised by the Constitution.”
On 10 September 2003, he testified before the House Financial Services Committee, which was holding hearings regarding the special privileges extended to government-sponsored enterprises (GSEs), particularly the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). In his testimony, Paul criticised these privileges; specifically, he warned that GSEs could and likely would trigger disaster. Paul noted that, according to the Congressional Budget Office, in fiscal 2000 alone housing-related GSEs received $13.6 billion in indirect federal subsidies; moreover, they possessed lines of credit with the U.S. Treasury. This support was potentially unlimited; as such, it constituted an explicit promise by the Treasury to rescue the GSEs during times of economic difficulty. In Paul’s words, it
The government’s backing of GSEs, Paul observed, isolated their managers from the market’s discipline, and thereby encouraged them to accept risks that sane managers in a free market would not undertake. “Ironically, by transferring the risk of a widespread mortgage default [from the GSEs to the government, i.e., to taxpayers], the government increases the likelihood of a painful crash in the housing market,” Paul warned. He continued:
“I hope today’s hearing sheds
light on how special privileges granted to GSEs distort the housing
market and endanger American taxpayers,” Paul concluded his testimony.
“Congress should act to remove taxpayer support from the housing GSEs
before the bubble bursts and taxpayers are once again forced to bail out
investors who were misled by foolish government interference in the
market.” For that reason, on that day he introduced the Free Housing
Market Enhancement Act. This legislation would have removed government
subsidies from Fannie Mae, Freddie Mac and the National Home Loan Bank
Board. Alas, nobody co-sponsored the bill, and it stalled in the
committee process.
Almost exactly two years later, Paul again warned:
Our political masters either do not understand or wilfully misunderstand what money is and what it is not, as well as what it can and cannot do. In the wake of their relentless meddling, commerce and investment rest upon weak and unstable foundations. It hardly helps that the government routinely lies to its subjects about the cause and magnitude of its inflation (see also Inflation: Not as Low as You Think, CBS MoneyWatch, 29 February 2012). The bust is merely a visible consequence of less visible causes – namely erroneous thinking and poor policy regarding money and banking. The government’s control over a nation’s currency means that it (through its central bank) strongly influences and – inevitably – comprehensively mismanages the nation’s economic well-being. By manipulating the supply of dollars and fixing key rates of interest (that is, suppressing them below the rate that would obtain in a free market), central bankers continually debase the value of money. As a result, the depreciating value of our savings and the dwindling purchasing power of our paycheques relentlessly make us poorer. Hence, Paul concludes that a return to first principles is both urgent and inescapable:
Ron Paul foresaw the crisis that brewed for years and erupted in
2007-2009. The mainstream media (MSM), in contrast, blindly worshipped
Greenspan and Bernanke and otherwise dozed contentedly. Perhaps that’s
why the MSM have not covered Ron Paul’s philosophy, proposals and
campaign impartially. Quite the contrary: typically, and despite the
fact that he often polls better than candidates who receive a greater
amount of positively-slanted coverage, it either ignores or maligns
him. Never mind that,
if he were the Republican presidential nominee, Paul
would run neck-and-neck against Barack Obama:
as far as the MSM is concerned,
Ron Paul is “unelectable.”
In
Ron Paul Remains Media Poison
(Politico, 15 August 2011), Roger Simon reported that the MSM had
“shafted” Paul.
In his own words,
“it [his
electoral support]
is hard for them [the MSM] to accept. I had one interview scheduled for
this morning, a national program, but they cancelled. It is shocking to
be told nobody wants you.” Simon added: “Was this because technically
Paul came in second and not first [in the Iowa Straw Poll]? I don’t
think so. Four years ago, Mike Huckabee came in a bad second to [Mitt]
Romney, losing by 13.4 percentage points. Huckabee managed to spin that
into a victory at Ames and became a media darling. But Paul almost wins
the thing and he remains poison.” Why is this? “They [the MSM] believe
this guy is dangerous to the status quo,” Paul said of himself.
“I am a bit more challenging, but I am not on the wrong track. I don’t
think that my ideas are more exotic. They are threatening.” |
"Today, Ron Paul’s views are “threatening” and “extremist” partly because he is the only Republican candidate – indeed, the only presidential candidate of either party – who has categorically refused to use nuclear weapons – indeed, weapons of any description – against Iran." |
Conclusion #1: Distrust the Mainstream Media Its treatment of Ron Paul provides yet another reason (we already had plenty!) to distrust the MSM. Should journalists “challenge ‘facts’ that are asserted by newsmakers they write about”? It’s astounding that anybody should ask this question; and it’s drearily predictable, but no less disappointing, that a leading light at The New York Times did so. As Glenn Greenwald (Arthur Brisbane and Selective Stenography, Salon, 13 January 2012), put it, “that’s basically the equivalent of pondering in a medical journal whether doctors should treat diseases, or asking in a law review article whether lawyers should defend the legal interests of their clients: reporting facts that conflict with public claims (what Brisbane tellingly demeaned as being “truth vigilantes”) is one of the defining functions of journalism, at least in theory.” Greenwald continues:
By their own admission, the MSM are docile scribes and strident shills for the welfare-warfare state. In Stephen Colbert’s words, uttered at the White House Correspondents’ Dinner in 2006: “Let’s review the rules. Here’s how it works. The President makes decisions. He’s the decider. The press secretary announces those decisions, and you people of the press type those decisions down. Make, announce, type. Just put ‘em through a spell check and go home.” The state routinely lies, and its clerks dutifully disseminate its lies. So distrust the regime’s stenographers and propagandists, and assume that everything they say is false. Greenwald concludes:
About one thing the MSM is quite correct: Ron Paul’s ideas are “out of the mainstream.” The trouble, of course, lies not with Paul’s ideas; it lies with the American mainstream’s. In 1944, at the height of the Second World War, John T. Flynn wrote in As We Go Marching:
Long ago the mainstream became precisely what today it laughably pretends to oppose. America’s approved political spectrum – stretching from Mitt Romney to Barack Obama – in effect if not in name advocates fascism. The same special-interest and predatory elites that supported Mussolini and Hitler now underwrite the welfare-warfare state. Today’s Europeans, too, worship at the fascist altar. You think I exaggerate? “The most serious financial problem for the Nazi State,” wrote Günter Reimann in The Vampire Economy: Doing Business Under Fascism (1939),
That’s an eerily accurate description of the EU’s trials and
tribulations today.
The Establishment in
countries like Australia and Canada, of course, is every bit as bad –
but its craven subservience makes it far more comical. As Mises and
others have demonstrated, fascism and communism are peas in a pod. In
“Bailout Marks Karl Marx’s Comeback” (The Financial Post, 20
September 2008), Martin Masse reminded us that the Communist Manifesto
demanded the “centralisation of credit in the banks of the state, by
means of a national bank with state capital and an exclusive monopoly.”
Doesn’t Karl Marx’s demand now epitomise monetary policy throughout the
West? |