Capitalism Without Capital?

by Rep Ron Paul

It has been long understood that our federal government is going deeper into debt, consistently raising the debt ceiling and demonstrating no fiscal restraint. In recent years, debt ceiling increases have been placed in “must pass” legislation as a means to guarantee that Republicans as well as Democrats would vote for them when Congress was under Republican control.

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Constitution? More of a “Guideline” Really

by History Matters, Church v State

The title of this post is loosely taken from Pirates of the Caribbean: The Curse of the Black Pearl:
“…the code is more what you’d call ‘guidelines’ than actual rules”

Readers of my posts here will know that I think the courts often get very far from the original intent of our Founding Fathers when they wrote the U.S. Constitution. There is a process for changing the Constitution (i.e. amendments), and that power is not supposed to be just in the hands of a handful of justices or a single judge, nor is it supposed to be in the hands of the legislature along.

The new “Bail-Out Bill” that just passed is a good example of losing sight of the basic theory of the Constitution. The bill authorizes the Secretary of the Treasury to “ensure the economic well-being of Americans.” Well, I certainly with for all Americans to have economic well being, but the Federal Government was not originally empowered to do that so directly.

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The Do-Something Congress

by Rep Ron Paul

It has not been a good week for the Republic.  It took quite a bit of trampling of the Constitution, but the bailout bill passed, as I suspected it would.

The bailout failed the first time it was brought to the House.  Undaunted, the Senate pressed on by attaching the bailout as an amendment to another House passed bill that was pending in the Senate.  The new bailout version had new taxes, so according to the Constitution it should not have originated in the Senate.

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Economics and the Meltdown

by Rep Ron Paul

The financial meltdown the economists of the Austrian School predicted has arrived.

We are in this crisis because of an excess of artificially created credit at the hands of the Federal Reserve System. The solution being proposed? More artificial credit by the Federal Reserve. No liquidation of bad debt and malinvestment is to be allowed. By doing more of the same, we will only continue and intensify the distortions in our economy – all the capital misallocation, all the malinvestment – and prevent the market’s attempt to re-establish rational pricing of houses and other assets.

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