Freddie and Fannie Bailout: Expensive to Taxpayers, and Destructive of Liberty.

by Rep Ron Paul

Statement before the US House of Representatives on HR 3221 July 24, 2008

Madam Speaker,

For several years, followers of the Austrian school of economics have warned that unless Congress moved to end the implicit government guarantee of Fannie Mae and Freddie Mac, and took other steps to disengage the US Government from the housing market, America would face a crisis in housing.

This crisis would force Congress to choose between authorizing a taxpayer bailout of Fannie and Freddie, and other measures increasing government’s involvement in housing, or restoring a free-market in housing by ending government support for Fannie and Freddie and repealing all laws that interfere in housing. The bursting of the housing bubble, and the recent near-collapse in investor support for Fannie and Freddie has proven my fellow Austrians correct.

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Time for Some Real Change

by Rep Ron Paul

One reason people are unhappy with the way politics and governments operate is that people who run for office are known to “say one thing and do another.”  Thus, we have the call for “change.”

Candidates for high office make frequent use of that word.  Even our House Republican Conference’s recently released slogan highlights that word.

Yet, bringing about change is easier said than done.  The American people are aware that government is broken and must be fixed.  They will demand more than lip service as our problems become more severe.

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The Falling Dollar and Rising Energy Prices

by Rep Ron Paul

Oil prices are on the minds of many Americans as gas hits $4 a gallon, and continues to surge.  How high can prices go?  How can we solve these problems?  What, or who, is to blame?

Part of the answer lies in understanding bubbles and monetary inflation, but especially the Federal Reserve System.  The Federal Reserve is charged with controlling inflation through interest rate manipulation, however, many fail to realize that creating money, and therefore inflation, is really its only tool.  When the Federal Reserve inflates the dollar as drastically as it has in the past few decades, the first users of the newly created money go in search of investments for their dollars.  They must invest this money quickly and aggressively before it loses value. 

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Another Casualty of War: The Economy

by Rep Ron Paul

This week, as the American economy continued to suffer the effects of big government, the House attempted to pass two multibillion dollar “emergency” spending bills, one for continued spending on the war in Iraq , and one increasing spending on domestic and international welfare programs.  The plan was to pass these two bills and then send them to the president as one package.

Even though the House failed to pass the war spending bill, opponents of the war should not be fooled into believing this vote signals a long term change in policy.  At the end of the day, those favoring continued military occupation of Iraq  will receive every penny they are requesting and more as long as they agree to dramatically increase domestic and international welfare spending as well.

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Who Is Responsible for the Housing Bubble?

by Rep Ron Paul

The House passed two bills attempting to rehabilitate the housing and mortgage market this week.  There doesn’t seem to be any shortage of criticism and blame for the bad decisions, and rightly so.

Lenders and banks do share much of the blame for the overheated market.  Lending standards were relaxed, or even abandoned altogether, creating an exaggerated pool of homebuyers that led to ballooning home prices that many, especially real estate investors, expected to continue forever.  Now that the bubble has burst, the losses are staggering.

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The Double Trouble of Taxation

by Rep Ron Paul

Taxes were on the forefront of many Americans’ minds this week as they scrambled to meet the April 15th deadline to file their returns.  Tax policy in this country hurts taxpayers twice – once when they pay taxes, and then when the government spends the money.  Americans are sick and tired of the financial burden and the endless forms to fill out.

To add insult to injury, after collecting this money the government does some very detrimental things to the economy.

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No Sunlight on the Omnibus

by Rep Ron Paul

One Christmas tradition Congress could do without is the broken process of passing the annual Omnibus Spending Bill, which we recently did right before the holiday recess.

Every December Congress fights and argues over spending and never seems to be able to pass the necessary appropriations until the very last minute.  There is panic and threats of government shut downs and reduction in essential services.  And they always threaten the essential services, as if there is no waste they could possibly eliminate instead. 

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Free People and Free Markets

by Clay Barham, PopulistAmerica.com

At this time in man’s history, we know more about how the human body works. With this knowledge, we know more about the kinds of behaviors to avoid in order not to harm the body. We know more about engineering and construction today, and what designs and behaviors to avoid that cause collapse. We know more about weather, to predict and avoid its harmful effects. Knowing more about everything helps us to live better in our world. Somehow, we refuse to learn more about our social and economic life. Knowledge would help us avoid behaviors that disrupt it.

We should reduce our economy to its parts and see how they work together. Then, we can better understand economics. First is the human element, the individual. Second is the community of individuals who interact with each other. Our economy is that interaction. If each individual simply sat on a log, hoping God would give him a meal, he would starve. He must fend for himself. If he mates and has children, he must feed, clothe, shelter and protect them. He must act responsibly. If he acts alone, he will provide for the moment. If injured and unable to act, his family may not survive. His actions are purposeful, for survival of self and family. Being different from others in his community, he has certain skills, attributes and deficiencies. Others can make up for the deficiencies, so everyone cooperates for a community purpose of survival.

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