CAMPAIGN FOR LIBERTY

Campaign for Liberty Chairman Ron Paul recently discussed competing currencies on his Liberty Report. The show includes the successful efforts of Arizona and Wyoming Campaign for Liberty groups to pass legislation recognizing gold, silver, and other precious metals as legal tender and exempting them from state taxation. Campaign for Liberty state groups will continue to push for more state legislation allowing people to choose alternatives to the Federal Reserve’s fiat currency. Please help support their efforts. Watch Dr. Paul discuss competing currencies here. [...]
Fri, Oct 19, 2018
Source: CAMPAIGN FOR LIBERTY
Tim Carney comments on the 10th anniversary of the big bank bailouts by looking at how the Troubled Asset Relief Program (TARP) was nothing more than protectionism for the financial elites: But there are better words than cronyism for the bailouts of the late-Bush and early-Obama era. Protectionism is one. The power players—Geithner in particular—were set not just on propping up the financial system, but on propping up the current institutions. To give these public servants the benefit of the doubt, they believed that America’s economy needed Goldman, Bank of America, Citigroup, JP Morgan, and Wells Fargo, and needed them to be at least as big as they were before the crisis. The stated reasons for government intervention were twofold: to prevent a disorderly fire sale of financial assets, which could cause a total market collapse; and to make sure banks kept lending money. The latter didn’t happen. On October 12, 2008, Bernanke, Geithner, Paulson, and friends pumped $125 billion into nine big banks, charging them cheap rates. The banks did not lend that money back out to small businesses and homebuyers. They used the cash to shore up their weak positions. And on the score of preventing a fire sale of assets held [...]
Thu, Oct 18, 2018
Source: CAMPAIGN FOR LIBERTY
Donald Trump’s recent attacks on the Fed have caused some— including those who should know better— to claim that Trump is threatening the central bank’s independence. The problems with that statement is that the Federal Reserve is not really independent. The Fed has a long history of tailoring monetary policy to suit the needs of the incumbent President. Critics of Audit the Fed claim that an audit would give Congress more control over the Fed, but nothing in the bill gives Congress any new powers. Campaign for Liberty Chairman Ron Paul addressed the issue of whether President Trump’s tweets threaten Fed independence earlier this year: Trump’s Tweets End the Myth of Fed Independence POSTED BY Ron Paul July 30, 2018 President Trump’s recent Tweets expressing displeasure with the Federal Reserve’s (minor) interest rate increases led to accusations that President Trump is undermining the Federal Reserve’s independence. But, the critics ignore the fact that Federal Reserve “independence” is one of the great myths of American politics. When it comes to intimidating the Federal Reserve, President Trump pales in comparison to President Lyndon Johnson. After the Federal Reserve increased interest rates in 1965, President Johnson summoned then-Fed Chairman William McChesney Martin to Johnson’s Texas ranch where [...]
Thu, Oct 18, 2018
Source: CAMPAIGN FOR LIBERTY
The Senate has finally adjourned to go home and campaign. They will be back on November 13, one week after the election. Before leaving, the Senate confirmed 15 judges as part of a deal between Senate Majority Leader McConnell and Senate Minority Leader Chuck Schumer. As I wrote last week, the Senate voted on legislation overturning President Trump’s regulation expanding short term health insurance plans. The vote was 50-50. Senator Susan Collins from Maine was the only Republican to vote for the bill. Every Democrat Senator voted yes. You can see that vote here. The Senate also passed the Water Resources Development Act (WRDA). Senator Mike Lee (R-UT) was the only Senator to vote no. You can see that vote here. [...]
Tue, Oct 16, 2018
Source: CAMPAIGN FOR LIBERTY
September marked a decade since the bursting of the housing bubble, which was followed by the stock market meltdown and the government bailout of the big banks and Wall Street. Last week’s frantic stock market sell-off indicates the failure to learn the lesson of 2008 makes another meltdown inevitable. In 2001-2002 the Federal Reserve responded to the economic downturn caused by the bursting of the technology bubble by pumping money into the economy. This new money ended up in the housing market. This was because the so-called conservative Bush administration, like the “liberal” Clinton administration before it, was using the Community Reinvestment Act and government-sponsored enterprises Fannie Mae and Freddie Mac to make mortgages available to anyone who wanted one — regardless of income or credit history. Banks and other lenders eagerly embraced this “ownership society”’ agenda with a “lend first, ask questions when foreclosing” policy. The result was the growth of subprime mortgages, the rush to invest in housing, and millions of Americans finding themselves in homes they could not afford. When the housing bubble burst, the government should have let the downturn run its course in order to correct the malinvestments made during the phony, Fed-created boom. This may have caused [...]
Mon, Oct 15, 2018
Source: CAMPAIGN FOR LIBERTY
Only if they are not paired with spending cuts. Ever since the seventies, Republicans have argued that the economic growth spurred by tax cuts would raise enough government revenue to overcome any negative effects on the deficit. But Peter Suderman, writing at Reason Magazine, argues that tax cuts may harm economic growth if they increase deficits — and that the GOP does not care: Republican leaders, however, dismissed these estimates, saying that economic growth spurred by the tax cuts would make up the difference. Never mind that Republicans had made similar claims about the likely deficit effects of the tax cuts passed under George W. Bush, and those claims had proven wrong. This time would be different. As Ryan said last year while the tax plan was moving through Congress, "We believe that . . . with economic growth that gives us more revenue with where we need to be." The tax bill passed. The deficit increased and is now on track to hit $1 trillion years earlier than previously expected. Once again, there is scant evidence to support the notion that economic growth would compensate for the deficit effects of a second round of tax cuts. On the contrary, there is reason [...]
Fri, Oct 12, 2018
Source: CAMPAIGN FOR LIBERTY
According to former Federal Reserve Board Governor Kevin Warsh, the U.S. is on the verge of a new Cold War with China -- but this one is going to be economic. "We're at the risk of a real 'cold war' between the world's two largest economies," said Warsh, who was on President Trump's list for Fed Chairman before Jerome Powell was chosen. "The last 30 years we've been living and breathing globalization as if it's an inevitable force," but now, it seems the six-decade-long bubble has finally popped. During a CNBC interview, Warsh used the term "cold war" to describe the economic standoff, not the decades-long "mutually assured destruction" nuclear stalemate with Russia. "We are probably on the precipice of a brand new relationship with the Chinese," Warsh told CNBC. He asked, "Could we be at the beginning of a 10- or 20-year cold war?" If so, an economic cold war between the countries could have major implications for the global economy like causing a global growth scare and repricing risk assets. Already we see Americans losing jobs as a results of President Trump’s trade tariffs.  An economic cold war with China would be devastating and could even lead to a global depression. The good [...]
Thu, Oct 11, 2018
Source: CAMPAIGN FOR LIBERTY
The Senate -- defying my expectations and past tradition -- remains in session even though we are only a month away from the mid-term election. The big vote this week could occur today, as Senator Tammy Baldwin (D-WI) is offering a privileged resolution under the Congressional Review Act overturning President Trump's regulation expanding the availability of short-term insurance plans that are not subject to many ObamaCare restrictions. These plans allow people who  cannot afford ObamaCare plans to obtain affordable health insurance. Well we can’t have that! The vote is expected to fail, but it is part of Democrats' strategy to stoke fear that Republicans will deny care to those with previous-existing conditions, even though most Republican plans keep the pre-existing  conditions mandate. Of course, if Republicans have the courage to actually fight for for free-market health care, they could show how a free-market health care system would find innovative ways to protect people with pre-existing conditions. Michael Cannon at Cato has more on this here. The Senate will also consider the Water Resources Development bill, which funds Corps of Engineers' projects. [...]
Wed, Oct 10, 2018
Source: CAMPAIGN FOR LIBERTY
Last week, I wrote about Senator Rand Paul’s efforts to stop U.S. taxpayer dollars from supporting Afghanistan military units that turn a blind eye to child sexual abuse. As I mentioned, this practice is common, but U.S. troops have been ordered to ignore it. This is a difficult topic to write about, but an important one for several reasons. As taxpayers, we have a right to know when funds are being used to support such activity. Supporters of the war in Afghanistan claim we are there to promote human rights.  I cannot possibly imagine any security interest that would justify turning a blind eye to rape, but I can see how this would create further resentment of the U.S. among Afghans -- especially since the Taliban put an end to the practice and uses the promise of rescuing sexual slaves as a recruiting tool. Jack Hunter, writing in The American Conservative, provides some more details on this issue. American troops have been in Afghanistan since 2001. According to the State Department, U.S. officials have obviously been aware of this problem on some level since at least 2010. For years, it appears to have been the policy of both the Pentagon and Afghanistan’s allies to [...]
Tue, Oct 09, 2018
Source: CAMPAIGN FOR LIBERTY
Last week the United States, Mexico, and Canada agreed to replace the North American Free Trade Agreement (NAFTA) with a new United States-Mexico-Canada Agreement (USMCA). Sadly, instead of replacing NAFTA’s managed trade with true free trade, the new USMCA expands government’s control over trade. For example, under the USMCA’s “rules of origin,” at least 75 percent of a car’s parts must be from the US, Canada, or Mexico in order to avoid tariffs. This is protectionism designed to raise prices of cars using materials from outside North America. The USMCA also requires that 40 to 45 percent of an automobile’s content be made by workers earning at least 16 dollars per hour. Like all government-set wages, this requirement will increase prices and decrease employment. The USMCA also requires Mexico to pass legislation recognizing the “right of collective bargaining.” In other words, this so-called free trade agreement forces Mexico to import US-style compulsory unionism. If the Mexican legislature does not comply, the US and Canada will impose tariffs on Mexican goods. The USMCA also requires the three countries to abide by the International Labour Organization (ILO) standards for worker rights. So, if, for example, the bureaucrats at the ILO declared that Right to Work laws [...]
Mon, Oct 08, 2018
Source: CAMPAIGN FOR LIBERTY

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