A publicationof the Foundationfor RationalEconomicsand Education.

VOLUME12.NO.3 MARCH2OO9

Friday, February 27, 2009 like to make someamendments;I would like to remove
two of them,the 16thandthe l7thAmendment.
Congressman Paulb Address Though we've certainlygottenourselvesinto a mess
to CPA€2009 becausethe Conservativemovementthat was designedto
bring usbackto ourroots-like limited government,smaller
I give a lot of speechesover on the govemment,moreindividual[berty-it hasn'thappened. And
hill,I give a lot of speechesonthe floor, now, sincewe did not do thejob we were supposedto do,
andlo andbehold,I don't getthat kind of applause,because the opposition has taken over, and guesswhat, they're
I don't think they're on the samewavelengthasyou andI criticizing the Republicansandthe Conservativesfor not
are on. I think there's a disconnect,and of coursethat's having balancedthe budget.But doesthat meanthey're
what this struggleis all about. I think in many ways the going to do that?No! They're going to makeus look like
Conservativemovementhashad a struggle piken; they're goingto doubleandtriple and
defining a Conservative.
TheConservative quadruplethe spending.I meanit is endless.
We finally got the Conservatives in Believeme, we're in serioustrouble.
charge.We havebeenstruggling ever since movementthat That is why I talk a lot to young people.
Barry Goldwater,and Ronald Reagan,the Theyoungpeoplearevery interestedin what
Revolution tn l994,and the continuationin
was designedto I talk about,andthe young in sprit arealso
the year 2000; we finally got the Houseand bring us back to interestedin what I talk about.But theyoung
the Senateandthe Presidency.And what did peopleespeciallyareinterestedbecausethey
we do? We doubled the size of the our roots-like know what they're getting. They know
Deparffnentof Education.I thoughtwe were Iimited gov- they're gettinga bad deal;they're getting
supposedto get rid of the Departmentof nothingbutdebt.
- -fuion. ernment,smnller In the past 12+nonthsour national debf
on how you up 1.5trillion dollars,andnext yearit's
SoI havea few suggestions
more went
canidentiff aConservative.Firstof all, they Sovernment, going to be more.They're hoping it will be
haveto be devotedto andwilling to standby individual liberty- 1.7this yeartotal,but thenit couldbe 2 or tt
and defendthe Constitution.And of course couldbe 3: the numbersareirrelevant.Anc
there'sanotherpositionthey oughtto take;
it hasnt happened. we'rc in anatrnospherenow whereif we can
many have,many in this room will takethat acceptthe idea that the taxpayerscan pay
position,but it is absolutelynecessary, a goodConservative that bailout, everybodyon Wall Street,bailout the banks
will starttalkingaboutandpreaching onwhy wehavetoget and big business-thereis nothing that can't be funded-
rid of theFederalReserveSystem. nothing that can't be appropriated;everythingwill be
And thenwe could.we're devotedto theConstitution, appropriated.Therewill be no cuts;therewill only be one
rule of law is very, very important:You can't ignore the limitationon whatwehavegoingon todayandthatlimitation
Constitutionwhenyou don't like something;whatyou have will be the value of the dollar.
to do is if vou don't like it, you haveto amendit. I would Todaywe are still privileged to print dollars, and the
 world is still unbelievablytaking thosedollars,but that is
going to end; and when that ends,the party is over.Most
peoplethinktheparfy'salreadyoverbut it's only half over.
The financial systemthat we havebuilt andhavelived with
startedinl97l It was the dollar standard,the fiat dollar
standard.The financial systemhasbeentotally built on that
systemandit was doomedto fail. As a matterof fact, it was
thatvery day in Augustof 1971,on August 15th,whenthe
BrettonWoodsagreementfinally cameundoneandthe last
link to gold was removed.
Then I knew that we had embarkedon the coursethat
we areon todayandthat systemhasbuilt this monstrosity
of a financial systemworldwide neverseenin thehistory of
the world; We arethe biggestdebtornation in the world,
andit's notjustUnitedStatesthat'sinffouble,it's thewhole
world. That financialsystemhascomeunglued,but thenext
shoeto drop will be the disintegrationof the doilar.So we
asConservativesandbelieversin limited governmentand
believersin theConstitution,we havea toughraceto resfain
the big spendersbeforethat happens.When that happens
what is threatenedis our liberty. The main purposeof a
governmentin a free societyshouldbe the preservationof
libetty.
Fortunately,we live inacountry thatknew something
aboutthat and emphasizedthat in our early years,but we
haveforgottenit, we havelost our confidence.We arenot
determinedto presentthe casefor liberty, we havechopped
liberty up into pieces:We haveeconomicliberty,we have
socialliberty and we havea foreign policy that's built on
just total fallacies.So we haveto put this all backtogether
again,and fortunatelywe have somethingthat canpull it
backtogether,andthat is theunderstandingof theFounding
Fathersthatput it into our Constitution.This meansthat if
we would follow themles anddo thejob right, we wouldn't
have a welfare state.
Thejob that we have,we asbelieversandthosethat
spreadthis message,thejob we haveis to presentthis case
and still prove that we arethe humanitarians.The liberal
do-gooders,the big spenderswho saythat we're going to
give a free house to everybody, free medical care to
everybody,free education;that's preposterous.But they
still won the last election-hadsomethingto do with that.
Everythingis goingtobeforfree,andyettheproofis,ifyou
careaboutyour fellow man thereis oniy oneway you can
maximize prosperityand maximize freedom,and that is
through the rule of law and making surethat everybody
understandsthat liberty is an individual thing and not a
collectiveright.
If wewantto getourHoirseinorder,wehavetoaddress
the subject of foreign policy. There was a time when
Conservatives hada completelydifferentforeignpolicy.Back
in the older days,when we had a Robert Taft and others,
they had a different understandingaboutwhat our foreign
policy oughtto be.Theyweresoold-fashionedtheybelieved
we had to follow the Constitution and it was designedto
defendthis country; nothing more thanthat.Not the giving
away of our sovereignty,not to listen to the UN and the
World Bank and the IMF and the WTO; we don't need
any ofthose.
Today,in themidst of theturmoil that we havethereis a
strongbehind-the-scenes movementtowardanevengreater
presenceof world govemment.They want to solve this
problem by internationalizingttrefinancial system-thelast
20,30 years it's been internationalized,but we had a
privilege; we got to print the gold so we had an advantage.
We livedoffothers, butthat's comingto anend.We'rethe
biggestdebtorandsoonthat debtwill be called.But, they're
trying now to put this together, and they're going to
internationalize it; it is going to be more of the same
intemationalism,WTO andregulationsandbankingsystem.
It is impossibleforthat systemto lastandto work, because
you cannothavea fiat system,whetherit's a singlecountry
or anintemationalgovemment,to makepapermoneywork-
andthat is the only thing that we havegoing for us, That is
why the moneyissueis so important.In a free societyyou
have to have honest money; honest money is what the
Foundersdescribedandsaidthatonly gold andsilver should
belegal tender.
But we oughtto addressthe subjectof foreign policy.
Part of the reasonswhy we lost this last election was the
foreign policy issue.Generallyspeaking,the presidential
candidatewho arguesthecaseforlesswarmongeringwill
win theelection,andof course,Obamatook advantageof
it. He said"I'm going to endthe war in Iraq andI'm going
to bring thoseffoopshomeandsolveall theproblems,"and
he won the election.So this generallyis the case;but the
truth is, foreignpolicy hasn'tchanged.
We shouldbelookingmoreto what GeorgeBush said
in the year 2000. He was strongly critical of the Clinton
yean-of nationbuildingandbeingttrepolicemanof theworld,
what we were doing in Bosnia and Somalia-andhe won
the election.He saidsomevery,very goodthingsbut after
that he againjoined the internationalists.Joinedthis idea
thattheAmericantaxpayers,you, haveanobligationto take
careof everybodyandpotce theworld, andput our military
out thereandbe exposedto all this danger.It doesn'tmake
any sense;this is literally what bankruptsthe country.You
seeinternationalexpenditures,it costus a trillion dollars a
 yearto takecareof our foreign policy, andthat cannotlast.
It is comingto anend.
As a matterof fact, the personmost pleasedwith our
foreignpolicyis OsamaBin Laden,becausehehas written
aboutthis; "I am goingto getyou to comeoverhereand
we'll fightyou on our sandandwe will do whatwe didto
the Soviets."Of course,we helpedhim do what he did to
the Sovietsbecausewe subsidizedand supportedhim to
drainthe Soviets,andhe saidhe will do the
samething. He will eventuallybanlcupt this
country,and 1oand behold we are weaker Thewelfarestate
for it, our military personnelarefatigued.I
wasvery proud of what happenedlastyear
will endbecause
in the campaign,becauseI talked aboutthe themoneywill
old Conservative Republican non-
interventionistconstitutionalforeign policy quit workingand
and, we and our campaign,got the most
money of any candidatefrom themilitary.
we will no longer
But historically, greatnationsend when be able to afford
they overextend themselvesoverseas
whetherit's backto the Romandays,orthe to promotewhat
Sovietsor whatever.The country feels so we'redoing
involvedthattheygo andthink of themselves
asbeingover$ wonderfrrl,thatwearegoing aroundthe
to spreadour message.It actually startedin
World War I; the truth is there was no need world.
for us to be involved in World War I. but
who wasn't?But thereit was:WoodrowWilson saidwe
have to do it becausewe haveto make the word safefor
democracy,which led to this millions, hundredsof millions
of peoplebeing killed in the 20th Century.
So we're back at the samething; we haveto go and
spreadour goodnessin theMiddle East.So,yeah,we want
to get rid of a bad guy in Iraq, we did; but it cost,it took
lives.Another million Iraqis got killed. Believeme, they
wtrentallte-nbriStgSomepeopieticln-tp-rticu|aray1iF
that,but neverttreless itpleasedOsamaBin Iadenbecause
we were there.We werebankruptingour country andright
now,today,we geta new Presidentwhosayshe didn't like
the war that was going on. So what are we going to do?
We're going to draganother17,000Americansandpop
themintoAfghanistan.
Don't we know anlthing abouthistory?It is bankupting
our country It will end,whetherthe peopleagreewith me
or not; it will endbecausewe can't afford it. That's where
it's alwaysendedthroughouthistory that'swhatthefinancial
crisis is telling us.The welfare statewill endbecausethe
moneywill quitworking andwe will no longerbe ableto
afford to promotewhat we're doing aroundthe world. The
soonerwe rcalizethatthebetter.Todayit's only financed
becausewe havethis monetarysystembecausewe can't
possiblytax the people,we can'tborrow much more,so
we're still relying on theFederalReserve.So what hasthe
FederalReservedonein this lastyearor so?
Congresshasspenthundredsof billions trying to bail
out the system.Republicansare now voting againstthis,
which is good,I'm delightedwittr that,but it's a little bit late,
butthey'revotingagainstit. But whatabout.. .
What is the FederalReservedoing?We talk
about800 billion dollarsandit's a big deal;
theFederalReservedoesit in trillions. We're
up to a commitment of 9 trillion dollars.We
in Congressandyou ascitizenshaveno idea
what's going on, andit's governmenttotally
out of control and it's to take care of their
buddies.They pumpedthis money into the
industriesand what happens?They get out,
they gethuge,billions andbillions of dollars
worth of bonuses,andthentheygo andbuy
treasurybills to keepthedollarfrom crashing,
becausethey will leave the treasurybills
eventually,sothey bail out their friends and
the bonusesare paid, and the American
peoplesuffer,becausein the ageof inflation
the middle class gets wiped out. The
characteristicof inflation is thewiping out of
the middle class and enhancingthe wealthy. So it's an
economicandpolitical systemthat is hereto desffoyus,and
here to destroy our freedom unlesswe understandwhat
freedomis all about.
Freedomcomesto us in a naturalway; it's in a God-
given way.It is not given to usbecausewe belongto a group.
Therc'sno suchthingasWomen'sRightsandMinority Rights
andGay Rightsandall thesethings.There'sonly onetype
ofrighl+hat-is an in-dividualilghtthatlas cometo us from
God.
To defendthat right is like defendingFreedomof the
Press.Freedomof the Pressgivespeopletheright to write
conffoversialthingsandengagein conffoversialdiscussions.
Otherwiseyou would havepriorrestraintandthegovemment
would come in and tell newspapersand radio what they
could sayand do. Nobody wantsthat.
But everysingleday,we havepriorresnainton everything
we do in the marketplace.Every market transaction,every
labor transaction,everydollar transaction,everyproperty
transaction is done only with the permission of the
government.
Sowe now havemoveda major stepin thedirectionof
 socialism,andtheyalk aboutnationalismandnationalizing
thebanks.The nameisn't asimportantastheconffol.We're
closerto a fascistsystemwherethe governmenthastotal
control of our lives andour economy,andthat is what has
to be stopped.
But if we understandwhat freedommeansforFreedom
of the Pressand no prior restraint. We also cannot ask
conservativesto saythat we haveto havepriorrestraint on
individuals on their socialbehavioror that we canregulate
socialbehavior.
Wehavesomepeopledefendingeconomicliberty rather
well, andothersdefendingsocialliberty, andyet it's all one
and the same;the Foundersunderstoodthat. And if we
could only put that together,peoplewould havefreedomof
choicein their economicand socialendeavors.The only
thing is, underthat systemyou haveto be responsiblefor
yourself; if you do harm to yourseif or don't take careof
yourself economically,you can't go crawling to the
govemmentandbeggingandpleadinganddemanding.We
getinvolved too much in sociallegislationbecausesomeof
the stateswant to do the right thing, whetherit hasto do
with marriageandothersocialissues,andthe statesunder
the Constitutionhavea right to do this. But they've been
deniedthis right becauseit goesto a FederalCourt, the
SupremeCourt and they rule and throw out theselaws;
they shouldnot evenhearthesecases.
That is why my approachto dealingwith the marriage
issue,the abortion issue, any social issue is that the
jurisdiction is removed.It's takenout of the FederalCourts
andwe could do a lot more in what we want to do. whether
it's rightto life, ratherthanwaitinguntil wehaveconffolof
the SupremeCourt rule or waiting until you amendthe
Constitution.This bill canbepassedandit shouldhavebeen
passedwhen we had the majority. Unfortunately therewas
very little interestin it. The WeThe PeopleActthat I haveis
onebill that could pass,and it could have savedmillions
andmillions of lives by preventingabortionby statelaw.
I've inffoduceda few piecesof legislationdealingwith
theFederalReserve.Oneis to getrid of ttreFederalReserve.
By all practicalities,we cannotdo thatright awaybecause
it would be chaotic.My real position is that you legalize
competition,legalizethe Constitution;that would be a bold
step.Allowing competition would take careof it, but there
is onepieceof legislationthat'sgettinga lot of attentionand
supporton both sidesof the aisle,somethingthat would be
greatif you getbehindit. It wasjust introducedyesterday
andthe number is 1207, andwhat it is going to do, andcan
do, is to audit the FederalReserve.At leastwe can find out
whatthey'redoing.
The law saysthat the GAO hasthe right to audit the
FederalReserve,exceptforA, B, C, D andE, andthat's
everythingthattheydo. Soby law they areprohibited,we're
prohibited from auditing or getting any answersfrom the
Fed,yet they havemoremoneyandmorecontrol overour
lives andyour dollars andyour future.They havecontrol
over the foreign policy and the domesticpolicy, and you
don't haveany right to know anythingaboutit. I can't even
get the information. It hasto comeaboutby the passageof
legislation like this, that demandsthat they are not
independentand totally secretand that they can rule this
country through the power of creating money. It's a
monstrousfraud: It hasexistedthroughouthistory where
the king getsconfol ofthemoney andinflatesthecurrency
and dilutes the metalsand prints the money and whatever,
but it hasto stop;andif we don't, believeme, this thing will
get much worse. So this to me is a major stepin the right
direction.
I want to go aheadand closeand saythat I am strongly
encouraged,especiallyby the youngpeopleI've talkedto
in the lastyear.They're enthusiasticaboutliberty,defending
it consistently,defendingthe Constitutionandrealizingthat
the situation we have today is unworkable; the Social
Security Systemis unworkable.And that we candefendall
this by defendingourConstitution,defendtheruleof law,
understandingwhereourrights comefrom and say"Yes,
we want our freedom back. and we will assume the
responsibilityfor ourselves."
Nothing in this publication is intended to aid or hinder
the passage of legislation before Congress.
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