Ron Paul for President


With summer on our doorstep, Im sure we all have time to do some reading on the beach. There are answers to our problems other than governmnent and in the below reading list you shall find them. Enjoy!

Davey Crockett’s “Not Yours To Give” –  http://www.house.gov/paul/nytg.htm

James Bovard’s Liberty vs. Democracy – http://www.fee.org/pdf/the-freeman/July-Aug%2006%20Bovard.pdf  (spolier alert: liberty wins, LIBERTY WINS… take.. me out… to the… ballgaaaame….)
 

 

Atlas Shrugged by Ayn Rand
Economics in One Lesson by Henry Hazlitt
Human Action by Mises

Ron Paul’s Revolutioin a Manifesto

Conscience of a Conservative – B. Goldwater
History of Money and Banking by Rothbard

Democracy:  the god that failed    – Hoppe
Ethics of liberty    -Rothbard
Machinery of Freedom     -D Friedman

Tom Paine: Common Sense and The Crisis

Douglas Hyde: Dedication and Leadership

Faustino Ballve: Essentials of Economics

Andrew Bacevich: American Empire

Ron Paul: Foreign Policy of Freedom

Justin Raimondo: Reclaiming the American Right

Friedrich Hayek: Road to Serfdom

Rothbard: America’s Great Depression

Albert Nock: Our Enemy, the State

Chalmers Johnson: Blowback

Mises: Liberalism

Rothbard: Man, Economy and State

Hoppe: Democracy: The God that Failed

Michael Scheur: Imperial Hubris

Robert Pape: Dying to Win

Alan Greenspan: Age of Turbulence

 

 

 

 

  What Has Government Done to Our Money? by Dr. Murray N. Rothbard

This first one is still the best introduction to money I’ve come across, and with the situation constantly going on around us, I think it’ll be indispensable in the future.  Follow-ups to this work will be listed at the end.*  It’s quite a bit longer than most of the entries on this list.

 2.  “I, Pencil” by Leonard Read

     http://www.econlib.org/LIBRARY/Essays/rdPncl1.html (and many other URLs)

 Along with Rothbard’s money tract I tend to recommend this one to everyone.  This short essay is usually used as a beginner’s work.  Something meant to open people up to the concept of the invisible hand, and undirected, spontaneous order.  With this base one can continue on in a discussion about the possibilities of an undirected world.

 3.  “The Philosophy of Liberty” flash video presentation from ISIL.

     http://www.isil.org/resources/introduction.swf

 Something simple.  The video is based on a piece by Ken Schoolland (The Adventures of Jonathan Gullible).  Without getting into fine philosophical detail, this little video presents the libertarian message with concision and accuracy.  If people view this they can usually understand the way you think if not agree with you.  So long as they understand, there’s something to build on.

 4.  “patterns” a blog post by iceberg18 (a well written individual blog from a NYC Rothbardian)

    http://iceberg18.blogspot.com/2007/07/todays-mises.html

 I include this one as a launching pad for helping folks understand the case against so-called “intellectual property.”  Now, there are some libertarians out there who support forms of IP like copyrights, patents, and trademarks (e.g. Randians), but there are probably just as many who fight them as a form of government granted monopoly.

 5.  “Do We Ever Really Get Out of Anarchy?” by Dr. Alfred G. Cuzán

     http://uwf.edu/govt/facultyforums/OutofAnarcy.pdf

 6.  La Loi (known as The Law in English) by Claude Frederic Bastiat

     http://bastiat.org/en/the_law.html (and many other URLs)

 Works well for the minarchist, and for the anarchist.  Bastiat gives his theoretical defense for government that has no more powers than any individual.  Some might call that radical minarchism, or some might call that anarchism.  Though this work has been around for about 160 years now, it is relevant everyday.  This is probably the longest piece on the list of Reads.

 7.  L’etat (known as either The State in English, or The Government) by Claude Frederic Bastiat

     http://bastiat.org/en/government.html (and many other URLs)

 A quote should serve well, “Government is the great fiction through which everybody endeavors to live at the expense of everybody else.”

 8.  “The Only Path to Tomorrow” by Ayn Rand

     http://fare.tunes.org/liberty/library/toptt.html

 This is a great little essay by a relatively young Rand.  She hadn’t given over to the Rightist/Conservative/Proto-Fascists just yet, and she voiced clear support for individualism against collectivism.  Not an unsullied anarchist piece, but very respectable nonetheless.

 9.  How Government Solved the Health Care Crisis by Roderick Long

     http://libertariannation.org/a/f12l3.html

 No list of mine would be complete without some contributions from Roderick Long.  This one is specifically on the Fascist medical system in America today, and how an older and better alternative was destroyed by the state.  This is also one of the pamphlets in William Gillis’ Market Anarchist series.

 10.  Punishment vs. Restitution: A Formulation by Roderick Long

      http://libertariannation.org/a/f12l2.html

 Necessary reading in my opinion.  Just what are the implications of the libertarian principle of non-aggression in regards to criminals and crime?  The piece includes a denouncement of punishment, and argues for a system of justice based on restitution as the only one compatible with libertarian principles.  This piece in combination with Rothbard’s “Punishment and Proportionality” can make one absolutely livid with rage when thinking about today’s “justice system” (more aptly systematized injustice).

 11.  A Four-Step Health-Care Solution by Hans-Hermann Hoppe

       http://www.mises.org/freemarket_detail.aspx?control=279

 A second healthcare/medical services entry.  This is one of my favorite short pieces by Hoppe.  Clearly written, easily understood, concise, to the point.

 12.  “Government Medical ‘Insurance'” by Dr. Murray N. Rothbard
      
http://www.mises.org/econsense/ch20.asp

 Continuing on a medical theme I include chapter 20 of Rothbard’s Making Economic Sense, in which he discusses the problems with modern medical insurance.

 13.  Gun Control and the War on Drugs” by Anthony Gregory

      http://www.fff.org/freedom/fd0502e.asp

 An excellent little write up by Anthony Gregory, highlighting the fact that not only do the two have shared origins, they are to the libertarian, different variations of the same tune.  Share this with those who support one and not the other to show them their inconsistency.

 15.  Inside the Martial Law Act of 2006″ by James Bovard

      http://www.counterpunch.org/bovard01092008.html

 Yet another update on where America is now, from the indispensable Jim Bovard.  With the erosion of Habeas Corpus protection, the near elimination of the Insurrection Act and the Posse Comitatus Act, the existence of near universal government spying, the legitimation of torture as a tactic, prison camps for enemies of the state, seizure laws reversing the presumption of innocence, a court dedicated to the presumption of constitutionality, and government intervention at every level and in every facet of Americans’ everyday life, the stage is already set for dictatorship, totalitarianism, tyranny, despotism, etc.  In fact, it might already be here in hiding.  Read some Bovard, get informed.

 

1.  Economics for Real People by Gene Callahan

     http://www.mises.org/books/econforrealpeople.pdf

 Specifically an introduction to Austrian econ, but he explains in such clarity regular economic concepts that this is a pretty good general work as well.

 2.  The Concise Guide To Economics by Jim Cox

     http://www.conciseguidetoeconomics.com/

 Lots of short entries on important topics of economics.  Great for just looking things up.

 3.  Capitalism: A Treatise on Economics by Dr. George Reisman

     http://www.capitalism.net/Capitalism/CAPITALISM_Internet.pdf

 George Reisman’s magnum opus.  It’s honestly too enormous to recommend that someone read through, so this is definitely a resource book.  A textbook even.  While Reisman is a statist he’s probably of the least offensive variety.  An inductee of the Randian cult through and through, you can hear Rand’s words come out of his mouth.  Even the title of the book is an ode to Rand (see the first sentence of Rand’s book Capitalism: The Unknown Ideal).

 4.  The Case for Free Trade and Open Immigration edited by R. Ebeling and J. Hornberger

     http://www.amatecon.com/etext/cftoi/cftoi.html

 More necessary reading in my opinion.  Unlike some other so-called libertarians and so-called anarchists Ebeling, Hornberger, the other authors whose essays are included in this collection, and all classical liberals have uphold the traditional libertarian position of open immigration (not managed and centrally planned immigration), and free trade (not managed and centrally planned trade).  This book is made up of essays by several authors, so one can pick and choose whichever sections one wants to read.  I even have chapters 6, 7, 18, 21, and 22 if anyone would like them (as they’re not included).  The Ebeling-Hornberger team also produced The Dangers of Socialized Medicine.  So if you like these essay collection books and the style that the editors edit with check that out as well.

 5.  Man, Economy, and State with Power and Market by Dr. Murray N. Rothbard
    
http://www.mises.org/rothbard/mes.asp

 Of course I was going to include Rothbard’s magnum opus.  Also designed as a college textbook, this is definitely in the resource section.  It’s gargantuan in size and scope.  Intended to supersede Mises’ Human Action as the authoritative Austrian/praxeological book (and Mises admitted that it had), it’s been the center of much of Austrian Economic studies since its publication.

 

 

 

 

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A look back at some good times on the Ron Paul campaign leading up to the NH Primary. Enjoy!

Dear friends,

a recent letter from Ron Paul on the current Fed actions and its true implications.

by Ron Paul | March 31, 2008

These past few weeks have provided an unfortunate opportunity to discuss inflation. The dollar index has reached new all-time lows. The total money supply, M3, as calculated by private sources, is growing at a disturbing 17% rate. The Fed is pumping dollars into the economy at an alarming rate. Just recently the Fed announced new loan auctions totaling $100 billion. That is new money created from thin air. If these money auctions, combined with the bailout of Bear Stearns, continue to be the trend, we are in for some economic stormy weather. The explanation lies in understanding the basics of money, and why it is dangerous to give government and big banks control over it.

First, money is not wealth, in and of itself. You cannot create more wealth simply by creating more money. Wall Street bankers cry out for more liquidity, but what is really needed is more value behind the dollar. But the value, unfortunately, isn’t there.

You see, the Fed creates new money and uses it to purchase securities from banks. Flush with funds, these banks seek to put this money to use. During the Fed’s expansionary period, much of this money went to home loans. Through a combination of federal government inducements to lend to risky borrowers, and the Fed’s supply of easy money, the housing bubble took shape. Fannie Mae and Freddie Mac were encouraged to purchase and securitize mortgages, while investors, buoyed by implicit government backing, rushed to provide funding. Money that could have been invested in more productive, less risky sectors of the economy was thereby malinvested in subprime mortgage loans.

The implicit guarantee from the Fed is quickly becoming explicit, as those institutions deemed “too big to fail” are bailed out at taxpayer expense. Wall Street made a killing during the housing bubble, reaping record profits. Now that the bubble has burst, these same firms are trying to dump their losses on the taxpayers. This approach requires more money creation, and therefore debasement of all dollars in circulation.

The Federal Reserve, a quasi-government entity, should not be creating money or determining interest rates, as this causes malinvestment and excessive debt to accumulate. Centrally planned, government manipulated economies always fail eventually. The collapse of communism and the failure of socialism should have made this apparent. Even the most educated, well-intentioned central planners cannot plan the market better than the market itself. Those that understand economics best, understand this reality.

In free markets, both success and failure are options. If government interventions prevent businesses, like Bear Stearns, from failing, then it is not truly a free market. As painful as it might be for Wall Street, banks, even big ones, must be allowed to fail.

The end game for this policy of monetary inflation is that the money in your bank account loses purchasing power. So, by keeping failing banks afloat, the Fed punishes those who have lived frugally and saved. The power to create money is a power that should never be granted to government. As we can plainly see today, the Fed has abused this power, and taxpayers are paying the price.

Ron Paul warned us in the early debates, “We have lived beyond our means for too long, now we will be destined to live beneath our means”. We will see our prosperity dwindle, inflation erode our savings, heavier taxation and regulation hinders creation of new wealth and more government control of our lives in education, healthcare and everyday privacy.

March 26, 2008 10:37AM

Time to Listen to Ron Paul?

By Elizabeth MacDonald Fox Business News

Time to listen to Texas Congressman Ron Paul, the lone voice of reason in Congress today who’s got to feel like he’s shouting into a field of cotton with his repeated warnings about the dangers of a collapsing dollar, while the administration goes AWOL on the problem.

The dollar just hit a record intraday low against the euro on reports that consumer confidence levels have dropped to levels not seen since the post-Watergate era. It is down 7% year to date against the Chinese renminbi, it’s weaker than the Japanese yen and the Canadian loonie.

The joke is the greenback is now only stronger than the Mexican pesos and the Zimbabwe dollar, an overstatement for dramatic effect, to be sure.But since hitting a peak in 2002, the dollar has lost about a quarter of its value against a trade weighted basket of currencies.

A weak dollar acts as an anvil around the neck of the US economy and consumers. Rising inflation is essentially a tax on consumers, so are rising energy prices, and that double whammy threatens to undermine the purchasing power of the rebate checks due out in May–backed by printing even more dollars.

A bellwether event of significant import to our nation’s finances happened this past January 1 with little notice. That’s the day the first baby boomer was allowed to retire. A new federal report wearily warns once again for the umpteenth time that the nation faces some $60t in Social Security and Medicare unfunded liabilities alone.

We’ve heard time and again conservatives say deficits don’t matter. To say that deficits don’t matter is like saying ketchup is a vegetable or trees cause pollution.

The $406b we pay annually in interest on the $9t in federal debt alone would rank as the world’s 30th biggest economy.

That annual interest cost surpasses the gross domestic product of Belgium, and is bigger than the GDP of Denmark and Hungary combined. The $406b would cover the annual cost of investigating Medicare fraud.

Stack all those one dollar bills making up our $9t deficit (and that doesn’t include the $60t in unfunded liabilities for Medicare and Social Security) and you would reach the moon and back. “Printing money cannot create wealth, if it could counterfeiting would be legal,” economist Brian Wesbury has said.

Even Milton Friedman, the Nobel Prize-winning economist and a forceful advocate for laissez-faire economics, got so sick of the way central bankers were willy nilly printing money in the ‘70s, he advocated that the government should replace the Federal Reserve with a computer. “Money is too important to be left to central bankers,” he quipped.

Broad zoom: The US economy has spent all of a year and four months in a downturn over the last two and a half decades. During that time we’ve seen a market crash of 22% in 1987, the S&L crisis, four wars, three financial crises (Mexico, Asian flu and Russian debt crises), the blow up of the hedge fund Long Term Capital, two asset bubbles (dot com and telecom). Since the Bush tax cuts of 2003, the US economy added the equivalent of China’s GDP–and government spending has boomed.

Now Federal Reserve chairman Ben Bernanke has both cut rates at a breakneck speed and pumped a massive amount of monetary stimulus into the markets to cure the credit crisis. I still think he is doing his level best to fix a crisis not entirely of his own making. The question now is, will Bernanke yank the liquidity punch bowl when the economy returns to trend growth in 2010 or 2011 as the central bank projects?

Let’s hope so, because the case for a weak dollar is, to me, well, weak. Namely, that a lame greenback softens the housing and credit crises as it fuels profits at US exporters whose goods are now dirt cheap in the eyes of foreign customers. Strong foreign sales at places like Boeing and Caterpillar reportedly added 1.4% to US growth in the second quarter of 2007. But exports make up just 13% of GDP. Consumers make up a larger 70%.

It’s no surprise consumer confidence is as weak as it was in the ’70s. LBJ had promised this country it could have both guns and butter in the ‘60s, so the Federal Reserve gunned the printing presses to pay for spending on entitlement programs and for the Vietnam war. For the first time, too, politicians got their mitts on taxpayers’ Social Security funds, after Democrats passed a so-called “unified budget” in the late ‘60s.

All that spending caused the dollar to nosedive in the 1970s amidst an oil embargo that sent oil costs, priced in dollars, soaring. Paul Volcker, then Fed chairman, enacted rapid rate hikes hitting 21% by 1979, and the Treasury went so far as to sell $6.4b in “Carter bonds,” largely denominated in Deutschemarks, to prop up the dollar. Gold got ripped off its mooring of an average $35 an ounce in the ‘70s, and in 1980 it hit a record $835 an ounce, around $2,250 in today’s prices.

Gold acts as a dew line for inflation. We essentially have a good handle on how much gold there is in the world and potentially below ground. When gold rises in price, it signals we are printing too many dollars, which indicates a concurrent drop in the greenback’s value. Over the last seven years, gold and oil prices have risen in lockstep, up 239% and 267% respectively. If the dollar had also risen in value at the same rate, oil would be selling at about $30 a barrel.

But now central bankers say that because of the weak dollar, they’ve seen capital losses carved out of an estimated $12t worth of dollars they hold in foreign currency reserves. The fear is they may unload their $12t in greenbacks en masse to cut their losses and run–which would really tip the US into a protracted recession. Already reports out of China show government officials there willing to rotate future planned investments out of US treasurys into other investments.

Countries pegged to the dollar are rightly saying, too, that we are exporting inflation to their shores. Saudi Arabia is a land that has had nearly zero inflation since 1998, but recently inflation soared to 7% annually, despite the fact the country is flush with petrodollars.

Congressman Paul rightfully warns us when he says the US government has “systematically undermined” the US dollar by expanding “the money supply at will for financing war or manipulating the economy with little resistance from Congress–while benefiting the special interests that influence government.”

It’s not just the US gunning the mints. Goldman Sachs figures that three-fifths of the world’s broad money supply growth came from emerging economies over the past year or so. Three-fifths. That’s gigantic.

Goldman Sachs says the growth in Russia’s M3 measure of broad money grew 51% over the last year or so, India by 24%, and by 20% in China, Saudi Arabia, South Africa and Brazil. That’s three times as fast as the US and the rest of the developed world, and it’s faster than their GDP growth rates. It’s the fastest pace in decades.

All that loose money is pouring into commodities, stock exchanges around the planet as well as bond markets–it’s largely why our long-term bond yields have been historically low, spurring a dramatic increase in mortgage borrowing, as mortgage rates typically track the 10-year Treasury note.

Watch out here–emerging economies are just as susceptible to minting lots of money due to political pressures, including things like paying for wars, or calming local populations clamoring for higher pay and more jobs.

What can be done stateside?

The administration needs to state more emphatically that it supports a strong dollar. A stronger dollar would draw liquidity back into the credit markets, lower inflation risks, cut oil prices and restart economic growth, notes Bear Stearns economist David Malpass.

Presidential candidates vilify NAFTA and free trade, when the weak dollar is partly to blame for problems like jobs lost to overseas operations, Malpass adds.

“Empires fail because they run out of money, or more accurately, run out of the ability to spend or inflate,” Congressman Paul warns. “We need to control spending, immediately, before it is too late.”

ok, i said this would happen months ago, see my post from earlier.  the Fed and Federal government will bail out the banks, mortgage companies, bond insurers…who’s next? it appears free markets have been laid to rest. what we see is a nationalisation of the banking industry..aka more central planning. what we see happening is “socialism for the rich”

 so they didnt use the word “taxpayer bailout” instead they used financial engineering as a side step. first, the Fed is a lender of last resort and its main goal is to maintain low inflation and high employment. the recent $200 billion offer to banks  is a transfer of wealth from the poor and middle class to the very wealthy. when the Fed allowed banks to offer mortgage backed securities as collateral and the Fed traded quality treasury notes in essence the Fed took bad worthless debt and gave the banks clean cash. now when the mortgage back securities continue to fail (foreclosures up 60% last quarter), housing market continues to depreciate (13% last 6 months) these bad debts will be worthless and the banks will own the taxpayer back quality treasuries.

 this is how the Fed pulled over a taxpayer bail out.

look at the bear sterns…lender of last resort to now prime lender (your money). they bail out a failed bank…lets not forget how much the average person makes at bear sterns, hundreds of thousands of $$$…top bankers and executive management receiving millions in bonuses. so the Fed bails them out, lends more money to JP Morgan so they can buy it now at a steal of $2.00 a share.

this will quicken at a unprecedented rate…we..you..us…fellow Americans will bail out more than a trillion dollars. FYI: WE CAN NOT AFFORD ANY OF THIS. the dollar will continue to fall and savings of every American will be wiped out. inflation will rise and rise choking us. we will experience a hard recession for many years with inflation first, followed by stagflation. with our purchasing power declining due to a falling dollar and then higher prices and for sure higher taxes I say again we will become surfs to the state.

i urge you to write your congressmen and senators to ask them to repeal the Federal Reserve Act immediately. Join Ron Paul, Peter Schiff, Jim Rogers http://www.cnbc.com/id/23588079 Jim Cramer, and many more.

 something is happening to our economy and country that has never been witnessed before…..we wake up and fight or loose or our prosperity and our freedoms. join us in this great campaign for freedom, prosperity and peace!

bill_buran22retouched.jpg

me and the good doc in New Hampshire week before the primary…..ahhh the memories. the fight continues.

I have warned about this for some time, this is not positive news, especially for the poor and middle class. Citibank announced recently that they will no longer allow depositors to withdraw more  than a $100,000 per month. So Citibank has taken first position on your money. Not a good time to keep money at a bank. also, not a good idea to keep savings in US Dollars..i recommend ETF’s in gold, silver, austrailian $, swiss franc, commiodities. Even if the return isnt high, these are great inflation hedges. if the dollar falls 5%..you just lost 5%. if the Fed keeps inflating the money supply as reported below soon inflation will eat you alive.

Thursday, January 24, 2008

Banks have NEGATIVE reserve ratios

The Federal Reserve published on Jan. 17, 2008 the bi-weekly report Aggregate Reserves of Depository Institutions and the Monetary Base.  I encourage you to review this report to see the actual numbers and trends.

The Federal Reserve published on Jan. 17, 2008 the bi-weekly report Aggregate Reserves of Depository Institutions and the Monetary Base.  I encourage you to review this report to see the actual numbers and trends.

A bank’s reserves is equal to the sum of borrowed and non-borrowed reserves.  Because the Federal Reserve acts as the lender of last resort the Federal Reserve system acts as one bank.

So, where are the required reserves coming from?  The Federal Reserve is printing the money out of thin air as shows up in ‘Term auction credit’.

Dec      11,613

Jan 2    30,000

Jan 16  40,000

This combined increase in one month of 81,613 compared to the monetary base of 820,331 is about 9.9%, or 119% annually, of the total money supply.  This is very serious inflation.

The Bottom Line

Instead of holding $18 of non-borrowed reserves the average bank in the US owes $1.70 to the Federal Reserve for every $1,000 to meet the required reserve ratio.  To continue meeting their required reserve ratio the banks are borrowing about $12.5B per week that the Federal Reserve prints out of thin air increasing the money supply by 10% per month.

Note:

After deeper research this is the first time ever in the history of the Federal Reserve that the non-borrowed reserves number has ever gone negative. The Fed has always been in control over the individual banks and held moral suasion over them which prevented them from borrowing to meet their required reserve ratio.

Bernake has said the ‘loans’ will go on as long as necessary and he has been increasing the size of them.

What makes you think the banks would ever want to repay these loans? They are a cheaper source of capital than anywhere else. The banks have now shifted the cost of their reserves onto the Fed who is then printing the reserves out of thin air. Because the Federal Reserve system functions like one big bank (whose required reserve ratio is now being printed out of thin air every week to prevent a bank run) and because the Fed has lost all control, they no longer have any moral suasion power, therefore hyperinflation is the only option to a bank run.

We’ve now officially entered the Weimar Germany phase.

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