Finance

More Spending is Always the Answer

Last week, the House approved another increase in the national debt ceiling. This means the government can borrow $1.9 trillion more to stay afloat and avoid default. It has been little more than a year since the last debt limit increase, and graphs showing the debt limit over time show a steep, almost vertical trend. It is not likely to be very long before this new ceiling is met and the government is back on the brink between default and borrowing us further into oblivion. Congressional leaders and the administration acknowledge that the debt limit will need to be increased again next year. They are crossing their fingers that the forecasts are correct and they will not need another increase sooner, even before the 2010 midterm elections.

Spending Freeze Not Likely

Last week politicians in Washington made a few things clear about how they really feel about the state of the union. First, they are beginning to hear the growing discontent with the size and scope of government and the broken promises that keep piling up. Certain events in Massachusetts recently made that statement loud, clear and unavoidable. In the face of those events, the powers that be made the determination that some populist rhetoric was in order, and the idea of a spending freeze in Washington was proposed, albeit with several caveats. These caveats to the proposed spending freeze ensure that we are not at any real risk of actually doing anything about spending.

Sociopaths - They Prey on All of Us.

When one looks at you he or she sees not a person but a thing to be used, consumed, and disposed of. They are all around you and you need to know how to recognize them behind the smiling face.

AIG/Geithner

The new details revealed today regarding AIG's bailout in 2008 come as no surprise to those of us who believe that the American people deserve full transparency from the Federal Reserve. It also demonstrates why defenders of the Fed are so adamant about 'independence' by which they really mean secrecy.

The Free Market as Regulator, by US Rep. Ron Paul

Since the bailouts last fall, lawmakers have been behaving as quasi-owners of the bailed-out banks and businesses, leading to calls for increased regulation of executive compensation and other wasteful expenditures. We have heard much about bonuses and executive pay packages that sound more like lottery winnings than an honest salary.

Many lawmakers voted in favor of these unconstitutional bailouts, believing that these corporations were too big to fail, and allowing them to go under would precipitate widespread economic disaster. This second wave of citizen outrage at the bailouts has left these lawmakers with a bit of egg on their face, and once again, they feel the need to "do something" to "fix" it. Shouldn't there be a regulatory structure in place governing executive compensation? Politically, it seems quite feasible. People are outraged that the system has once again gutted the many to make a few at the top fantastically wealthy. But they are incorrectly demonizing the free market.

Statement at Financial Services Committee Hearing, by US Rep. Ron Paul

The Federal Reserve in collaboration with the giant banks has created the greatest financial crisis the world has ever seen. The foolish notion that unlimited amounts of money and credit, created out of thin air, can provide sustained economic growth has delivered this crisis to us. Instead of economic growth and stable prices it has given us a system of government and finance that now threatens the world financial and political institutions.

Real unemployment is now 20% and there has not been any economic growth since the onset of the crisis in the year 2000, according to non-government statistics. Pyramiding debt and credit expansion, over the past 38 years, has come to an abrupt end—as predicted by free-market economists. Pursuing the same policy of excessive spending, debt expansion, and monetary inflation, can only compound the problems and prevent the required correction. Doubling the money supply didn’t work; quadrupling it won’t work either. The problem of debt must be addressed.

International Bailout Brings Us Closer to Economic Collapse, by US Rep. Ron Paul

Last week Congress passed the war supplemental appropriations bill. In an affront to all those who thought they voted for a peace candidate, the current president will be sending another $106 billion we don’t have to continue the bloodshed in Afghanistan and Iraq, without a hint of a plan to bring our troops home.

Many of my colleagues who voted with me as I opposed every war supplemental request under the previous administration seem to have changed their tune. I maintain that a vote to fund the war is a vote in favor of the war. Congress exercises its constitutional prerogatives through the power of the purse, and as long as Congress continues to enable these dangerous interventions abroad, there is no end in sight, that is until we face total economic collapse.

Audit the Fed Bill Reaches Crucial Benchmark, by US Rep. Ron Paul

Congressman Ron Paul's Federal Reserve Transparency Act, HR 1207, has reached and surpassed the level of 218 cosponsors in the House of Representatives, which means it is now cosponsored by a majority of the members.

The 218th cosponsor was Dennis Kucinich (OH-10), and the bill has since received its 222nd cosponsor.

Peter Namtvedt's picture

Hounding Obama 11 – Forever Political

Welcome to the age of dozens of Czars within the U.S. government, of the nomination of an “empathetic” Supreme Court Justice rather than one who will apply the Constitution as it was written, an age where government forgets its mission – to protect individual rights – and instead promises to put a Yugo in every garage, ending the War of Terror by renaming it, printing money because it has run out of wealth to tax.

Mistakes Just a Few, by US Rep. Ron Paul

In the last few years in interviews on the economy, I have been asked what I would do if I were in charge. In answering the question I usually started with explaining the errors we made that gave us the crisis. The interviewer frequently responded by saying that he wasn’t interested in the cause of the problem, only what we should do now to correct it.

This is a typical attitude in Washington. But, we cannot expect correct policies to be implemented if we don’t understand the cause of the crises. Instead, we have pursued all the wrong policies. Let me list a few mistakes we have made.

Peter Namtvedt's picture

Hounding Obama 10 – Rule by Decree

What frightens grown men is the uncertainty of what the Federal government is going to do tomorrow. The rules are changing too fast; shooting from the hip. Congress seems to have no time to read the bills, just vote, vote, vote! Moreover, some of these rules are not the laws as the Constitution limited Congress to enact. We are talking about Executive Orders.

Audit the Fed, Then End It!, by US Rep. Ron Paul

I have been very pleased with the progress of my legislation, HR 1207, which calls for a complete audit of the Federal Reserve and removes many significant barriers towards transparency of our monetary system. This bill now has nearly 170 cosponsors, with support from both Republicans and Democrats. Senator Bernie Sanders has introduced a companion bill in the Senate S 604, which will hopefully begin to gain momentum as well. I am very encouraged to see so many of my colleagues in Congress stand with me for greater transparency in government.

Peter Namtvedt's picture

Hounding Obama 9 – Assault on Economic Freedom

Is there a shred of real capitalism left in the U.S.A? Obama's standing orders seem to be “Find it, take it out to the wood-shed and shoot it!” Even the IRS tells us that we should not pay any more tax than the tax code requires. However, to Obama, if you rationally try to reduce costs such as taxes, you now are an Enemy of the People
Peter Namtvedt's picture

Hounding Obama 8 – Fabianism

Obama is no revolutionary. What he is aiming at may be the familiar old socialism of the past century and a half, but not by one bold move, one big bomb or one gigantic upheaval. He is moving by a process of evolution. One step at a time. This is not Socialism. This is Fabianism.

Council on Foreign Relations

A look at the power base of American politics and economics and their long range plans and goals.

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