"These fast-approaching events will not go
unnoticed. They will affect all of us. They will not be limited
to just some areas of our country. The world economy and political
system will share in the chaos about to be unleashed."
"There are reasons to believe this coming crisis
is different and bigger than the world has ever experienced. Instead
of using globalism in a positive fashion, it's been used to globalize
all of the mistakes of the politicians, bureaucrats and central
bankers." Paul continued.
In one of Paul's most memorable speeches to date,
the Congressman spoke of rampant authoritarianism having replaced
the principles of liberty that the United States was founded upon
and warned that current empire building financed through inflation
and debt signals a most frightening period in history.
"Our arrogance and aggressiveness have been
used to promote a world empire backed by the most powerful army
of history. This type of globalist intervention creates problems
for all citizens of the world and fails to contribute to the well-being
of the world's populations. Just think how our personal liberties
have been trashed here at home in the last decade." Paul
urged fellow representatives.
Paul outlined the history of the current economic crisis and
alluded to key events such as the inception of the Federal Reserve
System, the creation of the Bretton-Woods Monetary System and
the creation of a "dollar bubble".
"This bubble is different and bigger for another reason."
"The central banks of the world secretly collude to centrally
plan the world economy. I'm convinced that agreements among central
banks to “monetize” U.S. debt these past 15 years
have existed, although secretly and out of the reach of any oversight
of anyone--especially the U.S. Congress that doesn't care, or
just flat doesn't understand."
Yesterday, the Congressman also confronted Federal Reserve Chairman
Ben Bernanke over what he described as a 35 plus year dollar bubble,
telling him "You are probably the biggest taxer in the country",
citing the inflationary fiat money system as the most unfair and
regressive form of taxation there is.
A stunned Bernanke put up little resistance and simply agreed
with Paul, stating “Congressman, I couldn’t agree
with you more that inflation is a tax, and that inflation is currently
Paul also pointed out that government bail out packages for lenders
will inevitably lead to a further increases in the already stratospheric
Madam Speaker, I have, for the past 35 years, expressed my
grave concern for the future of America . The course we have
taken over the past century has threatened our liberties, security
and prosperity. In spite of these long-held concerns, I have
days--growing more frequent all the time--when I'm convinced
the time is now upon us that some Big Events are about to occur.
These fast-approaching events will not go unnoticed. They will
affect all of us. They will not be limited to just some areas
of our country. The world economy and political system will
share in the chaos about to be unleashed.
Though the world has long suffered from the senselessness of
wars that should have been avoided, my greatest fear is that
the course on which we find ourselves will bring even greater
conflict and economic suffering to the innocent people of the
world--unless we quickly change our ways.
America , with her traditions of free markets and property
rights, led the way toward great wealth and progress throughout
the world as well as at home. Since we have lost our confidence
in the principles of liberty, self reliance, hard work and frugality,
and instead took on empire building, financed through inflation
and debt, all this has changed. This is indeed frightening and
an historic event.
The problem we face is not new in history. Authoritarianism
has been around a long time. For centuries, inflation and debt
have been used by tyrants to hold power, promote aggression,
and provide “bread and circuses” for the people.
The notion that a country can afford “guns and butter”
with no significant penalty existed even before the 1960s when
it became a popular slogan. It was then, though, we were told
the Vietnam War and the massive expansion of the welfare state
were not problems. The seventies proved that assumption wrong.
Today things are different from even ancient times or the 1970s.
There is something to the argument that we are now a global
economy. The world has more people and is more integrated due
to modern technology, communications, and travel. If modern
technology had been used to promote the ideas of liberty, free
markets, sound money and trade, it would have ushered in a new
golden age--a globalism we could accept.
Instead, the wealth and freedom we now enjoy are shrinking
and rest upon a fragile philosophic infrastructure. It is not
unlike the levies and bridges in our own country that our system
of war and welfare has caused us to ignore.
I'm fearful that my concerns have been legitimate and may even
be worse than I first thought. They are now at our doorstep.
Time is short for making a course correction before this grand
experiment in liberty goes into deep hibernation.
There are reasons to believe this coming crisis is different
and bigger than the world has ever experienced. Instead of using
globalism in a positive fashion, it's been used to globalize
all of the mistakes of the politicians, bureaucrats and central
Being an unchallenged sole superpower was never accepted by
us with a sense of humility and respect. Our arrogance and aggressiveness
have been used to promote a world empire backed by the most
powerful army of history. This type of globalist intervention
creates problems for all citizens of the world and fails to
contribute to the well-being of the world's populations. Just
think how our personal liberties have been trashed here at home
in the last decade.
The financial crisis, still in its early stages, is apparent
to everyone: gasoline prices over $4 a gallon; skyrocketing
education and medical-care costs; the collapse of the housing
bubble; the bursting of the NASDAQ bubble; stock markets plunging;
unemployment rising; massive underemployment; excessive government
debt; and unmanageable personal debt. Little doubt exists as
to whether we'll get stagflation. The question that will soon
be asked is: When will the stagflation become an inflationary
There are various reasons that the world economy has been globalized
and the problems we face are worldwide. We cannot understand
what we're facing without understanding fiat money and the long-developing
There were several stages. From the inception of the Federal
Reserve System in 1913 to 1933, the Central Bank established
itself as the official dollar manager. By 1933, Americans could
no longer own gold, thus removing restraint on the Federal Reserve
to inflate for war and welfare.
By 1945, further restraints were removed by creating the Bretton-Woods
Monetary System making the dollar the reserve currency of the
world. This system lasted up until 1971. During the period between
1945 and 1971, some restraints on the Fed remained in place.
Foreigners, but not Americans, could convert dollars to gold
at $35 an ounce. Due to the excessive dollars being created,
that system came to an end in 1971.
It's the post Bretton-Woods system that was responsible for
globalizing inflation and markets and for generating a gigantic
worldwide dollar bubble. That bubble is now bursting, and we're
seeing what it's like to suffer the consequences of the many
previous economic errors.
Ironically in these past 35 years, we have benefited from this
very flawed system. Because the world accepted dollars as if
they were gold, we only had to counterfeit more dollars, spend
them overseas (indirectly encouraging our jobs to go overseas
as well) and enjoy unearned prosperity. Those who took our dollars
and gave us goods and services were only too anxious to loan
those dollars back to us. This allowed us to export our inflation
and delay the consequences we now are starting to see.
But it was never destined to last, and now we have to pay the
piper. Our huge foreign debt must be paid or liquidated. Our
entitlements are coming due just as the world has become more
reluctant to hold dollars. The consequence of that decision
is price inflation in this country--and that's what we are witnessing
today. Already price inflation overseas is even higher than
here at home as a consequence of foreign central banks' willingness
to monetize our debt.
Printing dollars over long periods of time may not immediately
push prices up--yet in time it always does. Now we're seeing
catch-up for past inflating of the monetary supply. As bad as
it is today with $4 a gallon gasoline, this is just the beginning.
It's a gross distraction to hound away at “drill, drill,
drill” as a solution to the dollar crisis and high gasoline
prices. Its okay to let the market increase supplies and drill,
but that issue is a gross distraction from the sins of deficits
and Federal Reserve monetary shenanigans.
This bubble is different and bigger for another reason. The
central banks of the world secretly collude to centrally plan
the world economy. I'm convinced that agreements among central
banks to “monetize” U.S. debt these past 15 years
have existed, although secretly and out of the reach of any
oversight of anyone--especially the U.S. Congress that doesn't
care, or just flat doesn't understand. As this “gift”
to us comes to an end, our problems worsen. The central banks
and the various governments are very powerful, but eventually
the markets overwhelm when the people who get stuck holding
the bag (of bad dollars) catch on and spend the dollars into
the economy with emotional zeal, thus igniting inflationary
This time--since there are so many dollars and so many countries
involved--the Fed has been able to “paper” over
every approaching crisis for the past 15 years, especially with
Alan Greenspan as Chairman of the Federal Reserve Board, which
has allowed the bubble to become history's greatest.
The mistakes made with excessive credit at artificially low
rates are huge, and the market is demanding a correction. This
involves excessive debt, misdirected investments, over-investments,
and all the other problems caused by the government when spending
the money they should never have had. Foreign militarism, welfare
handouts and $80 trillion entitlement promises are all coming
to an end. We don't have the money or the wealth-creating capacity
to catch up and care for all the needs that now exist because
we rejected the market economy, sound money, self reliance and
the principles of liberty.
Since the correction of all this misallocation of resources
is necessary and must come, one can look for some good that
may come as this “Big Event” unfolds.
There are two choices that people can make. The one choice
that is unavailable to us is to limp along with the status quo
and prop up the system with more debt, inflation and lies. That
One of the two choices, and the one chosen so often by government
in the past is that of rejecting the principles of liberty and
resorting to even bigger and more authoritarian government.
Some argue that giving dictatorial powers to the President,
just as we have allowed him to run the American empire, is what
we should do. That's the great danger, and in this post-911
atmosphere, too many Americans are seeking safety over freedom.
We have already lost too many of our personal liberties already.
Real fear of economic collapse could prompt central planners
to act to such a degree that the New Deal of the 30's might
look like Jefferson 's Declaration of Independence.
The more the government is allowed to do in taking over and
running the economy, the deeper the depression gets and the
longer it lasts. That was the story of the 30s and the early
40s, and the same mistakes are likely to be made again if we
do not wake up.
But the good news is that it need not be so bad if we do the
right thing. I saw “Something Big” happening in
the past 18 months on the campaign trail. I was encouraged that
we are capable of waking up and doing the right thing. I have
literally met thousands of high school and college kids who
are quite willing to accept the challenge and responsibility
of a free society and reject the cradle-to-grave welfare that
is promised them by so many do-good politicians.
If more hear the message of liberty, more will join in this
effort. The failure of our foreign policy, welfare system, and
monetary policies and virtually all government solutions are
so readily apparent, it doesn't take that much convincing. But
the positive message of how freedom works and why it's possible
is what is urgently needed.
One of the best parts of accepting self reliance in a free
society is that true personal satisfaction with one's own life
can be achieved. This doesn't happen when the government assumes
the role of guardian, parent or provider, because it eliminates
a sense of pride. But the real problem is the government can't
provide the safety and economic security that it claims. The
so called good that government claims it can deliver is always
achieved at the expense of someone else's freedom. It's a failed
system and the young people know it.
Restoring a free society doesn't eliminate the need to get
our house in order and to pay for the extravagant spending.
But the pain would not be long-lasting if we did the right things,
and best of all the empire would have to end for financial reasons.
Our wars would stop, the attack on civil liberties would cease,
and prosperity would return. The choices are clear: it shouldn't
be difficult, but the big event now unfolding gives us a great
opportunity to reverse the tide and resume the truly great American
Revolution started in 1776. Opportunity knocks in spite of the
urgency and the dangers we face.
Let's make “Something Big Is Happening” be the
discovery that freedom works and is popular and the big economic
and political event we're witnessing is a blessing in disguise.