Bringing LIBERTY to Capitol Hill -- 2008
OZARKS VIRTUAL TOWN HALL
Saturday Morning, September 27, 2008, 10:30am
A Discussion of The President's Saturday Morning Radio Address
Click here to listen to a replay of the September 27, 2008 Ozarks Virtual Town Hall
Notes and Summary of the President's Address: Bailing out Lenders
THE PRESIDENT: Good morning. This is an extraordinary period for America's economy. Many Americans are anxious about their finances and their future. (continued below)
How the President Differs from the American vision of "Liberty Under God":
- America was founded on the philosophy of "Liberty Under God."
- "Liberty" means freedom from government suppression of ideas and confiscation of wealth
- "Under God" means we have a personal responsibility to love God and neighbor.
- Human beings are endowed with the right to property by God, not the government.
- The original American Dream: Everyone dwelling safely under his own Vine & Fig Tree
- America's Founders spoke of this as "an Experiment in Liberty" (1787-1887)
- The "experiment" was a success: a Free Market made America the most prosperous and admired nation in history
- In the 20th century, the experiment in liberty was replaced with another experiment: an experiment in central planning
- The original American dream of personal, private ownership, has been replaced with private indebtedness and public control.
- Nothing in the President's Agenda reduces socialism and promotes Free Markets.
- The President has forgotten the limits placed on his authority by the Constitution. He does not have the Constitutional authority to spend a trillion dollars.
- The central problem in this "crisis" is a system of "false weights and measures." Banks create "counterfeit" money to lend. The debt (and the interest) is sold to investors, who stand to lose money if the borrower does not repay the "fiat money." If the government were not fraudulently debasing the currency, creating new money to be loaned out at interest, the debt-pyramid would never be created in the first place.
Saturday Morning Radio Address
"Liberty Under God"
|THE PRESIDENT: Good morning. This is an extraordinary period for America's economy. Many Americans are anxious about their finances and their future. On Wednesday, I spoke to the Nation, and thanked Congress for working with my Administration to address the instability in our financial system. On Thursday, I hosted Senator McCain, Senator Obama, and congressional leaders from both parties at the White House to discuss the urgency of passing a bipartisan rescue package for our economy.
||The question we should ask first is, "Rescued from what?" Suppose you're an avid fisherman, and every weekend you rent a boat, and every weekend the boats starts sinking, and you have to call an expensive rescue service to pull you out of the lake. Time to go to a new boat rental store? What if the boat store worked hand-and-glove with the expensive rescue service, and received a kick-back from the rescue service for every boat that leaked and resulted in a call for rescue?
The Problems originated with the government. The government encouraged people to go into debt who shouldn't have gone into debt.
|The problems in our economy are extremely complex, but at their core is uncertainty over "mortgage-backed securities." Many of these financial assets relate to home mortgages that have lost value during the housing decline. In turn, the banks holding these assets have restricted credit, and businesses and consumers have found it more difficult to obtain affordable loans. As a result, our entire economy is in danger. So I proposed that the Federal government reduce the risk posed by these troubled assets, and supply urgently needed money to help banks and other financial institutions avoid collapse and resume lending.
||The essence of the Free Market is the right to buy or not to buy anything you are uncertain about. If I'm "uncertain" about the widgets you sell, the government should not bail out your widget company.
An extraordinary admission: "our entire economy" is based on debt, not savings, not inheritance, not freedom, not profit, not living confidently under one's own Vine & Fig Tree.
Why is it that these particular banks -- which made the bad decision to get behind mortgage-based investments -- are the only banks that can make loans? Why can't new banks under better management rise up and fill the void?
Why does there have to be a void? Why do Americans have to be in perpetual debt? Answer: the government takes two-thirds of everything you earn.
|I know many of you listening this morning are frustrated with the situation. You make sacrifices every day to meet your mortgage payments and keep up with your bills. When the government asks you to pay for mistakes on Wall Street, it does not seem fair. And I understand that. And if it were possible to let every irresponsible firm on Wall Street fail without affecting you and your family, I would do it. But that is not possible. The failure of the financial system would mean financial hardship for many of you.
||The President admits that these firms are irresponsible. The core of Free Market economics is competition. We are better served when irresponsible firms go out of business, because irresponsible firms waste our resources -- in this case, resources available for lending. Bailing out irresponsible firms is uncompetitive, to say nothing of unconstitutional.
|The failure of the financial system would cause banks to stop lending money to one another and to businesses and consumers. That would make it harder for you to take out a loan or borrow money to expand a business. The result would be less economic growth and more American jobs lost. And that would put our economy on the path toward a deep and painful recession.
||Our economy is already on the path toward another Great Depression. Bailing out uncompetitive businesses only keeps us on that path. Perpetuating a system of keeping Americans in debt to banks that debase the currency, then force us to pay both interest and taxes on that currency, keeps us on a path of slavery that leads to destruction.
|The rescue effort we're negotiating is not aimed at Wall Street -- it is aimed at your street. And there is now widespread agreement on the major principles. We must free up the flow of credit to consumers and businesses by reducing the risk posed by troubled assets. We must ensure that taxpayers are protected, that failed executives do not receive a windfall from your tax dollars, and that there is a bipartisan board to oversee these efforts.
||This is a plan that ensures that Americans on Main Street will be perpetually enslaved to Wall Street and Pennsylvania Ave.
The rich rules over the poor,
And the borrower is servant to the lender.
|Under the proposal my Administration sent to Congress, the government would spend up to $700 billion to buy troubled assets from banks and other financial institutions. I know many Americans understand the urgency of this action, but are concerned about such a high price tag. Well, let me address this directly:
||Some have suggested that the Paulson plan gives Washington the power to buy All of Microsoft for a Buck
|The final cost of this plan will be far less than $700 billion. And here's why: As fear and uncertainty have gripped the market for mortgage-related assets, their price has dropped sharply. Yet many of these assets still have significant underlying value, because the vast majority of people will eventually pay off their mortgages. In other words, many of the assets the government would buy are likely to go up in price over time. This means that the government will be able to recoup much, if not all, of the original expenditure.
||The plan will cost at least $700 billion in today's money, and if it's ever repaid, it will be repaid in tomorrow's devalued money. Your purchasing power will be taken from you today and given to the bankers. If -- a big if -- you get your $700 billion back, it will be able to purchase only a fraction of what it could purchase today.
Imagine losing a $100,000 mansion in 1958, and being repaid a $100,000 shack in 2008. Then the government says, "See? You got your $100,000 back just like we promised!"
|Members of Congress from both sides of the aisle have contributed constructive proposals that have improved this plan. I appreciate the efforts of House and Senate Democratic and Republican leaders to bring a spirit of bipartisan cooperation to these discussions. Our Nation's economic well-being is an issue that transcends partisanship. Republicans and Democrats must continue to address it together. And I am confident that we will pass a bill to protect the financial security of every American very soon.
| Thank you for listening.
Kevin Craig's Platform:
From the Blog
From the blog:
Additional "Liberty Under God" Resources
The Bailout Reader - Mises.org
Fannie Mae and Freddie Mac
- Freddie Mac: A Mercantilist Enterprise, by Paul Cleveland, March 14, 2005
- Fannie Mae: Another New Deal Monstrosity, by Karen De Coster, July 2, 2007
- How Fannie and Freddie Made Me a Grumpy Economist, by Christopher Westley, July 21, 2008
- Who Made the Fannie and Freddie Threat? By Frank Shostak, March 5, 2004
- Are Fannie and Freddie Too Big to Fail? By Frank Shostak, September 17, 2008
- Fannie Mae Distorts Markets, by Robert Blumen, June 17, 2002
The Housing Bubble
- The Housing Bubble in Four Easy Steps, by Mark Thornton, September 27, 2008
- The Real Cost of a Full Bailout, by Don Rich, August 22, 2008
- The Subprime Mortgage "Crisis" Will Fix Itself, by Steve Berger, May 30, 2007
- Did the Fed Cause the Housing Bubble? By Robert Murphy, April 14, 2008
- The Mortgage Market Mess, by Christopher Westley, May 17, 2007
- Housing Bubble: Myth or Reality? By Frank Shostak, March 4, 2003
- What's Behind the Financial Market Crisis? by Antony Mueller, September 18, 2008
- Our Financial House of Cards, by George Reisman, March 25, 2008
- Will Central Bankers Become Central Planners? by Robert Blumen, July 31, 2008
- Inflation is a Policy that Cannot Last, by Thorsten Polleit, March 14, 2008
- The Widening Safety Net, by Christopher Mayer, March 19, 2004
- The Fed's New Tricks Are Creating Disaster, Frank Shostak, March 18, 2008
- The Fed's War on the Middle Class, by Mark Thornton, June 4, 2008.
- Austrian Economics and Financial Markets conference at The Venetian Hotel Resort Casino, Las Vegas, 02-18-2005
Community Reinvestment Act
The Austrian Theory of the Business Cycle
- The Idiocy of Wall Street, by Don Rich, September 24, 2008
- The Fed is Culpable, by Hans F. Sennholz, November 11, 2002
- Skyscrapers and Business Cycles, by Mark Thornton, August 23, 2008
- Economic Outlook 2008: Darkening Clouds, Dominick Armentano, January 2, 2008
- Business Cycle Primer, Llewellyn H. Rockwell, Jr. February 8, 2001
- Economics Depressions: Their Cause and Cure, by Murray Rothbard
Who Predicted This?
- The Financial Apocalyptics are Back, Robert Blumen, July 25, 2007
- Sowing the Seeds of the Next Crisis, Thorsten Polleit, April 25, 2006
- Credit Crisis: Precursor of Great Inflation, by Thorsten Polleit, February 7, 2008
- Mr. Bailout, by Anton Mueller, September 30, 2004
- America's Unsustainable Boom, by Stefan Karlsson, November 8, 2004
- Who Predicted the Bubble? Who Predicted the Crash? By Mark Thornton, July 14, 2003
What To Do
- The Rescue Package Will Delay Recovery, September 29, 2008
- Don't Bail Them Out, by Llewellyn H. Rockwell, Jr., September 10, 2008
- How to Avoid Another Depression, by Mark Thornton, September 10, 2008
- Taking Money Back, By Murray N. Rothbard, June 14, 2008
- Beware the Alchemists, by Ludwig von Mises, February 3, 2006
- Reflation in American History, by H.A. Scott Trask, October 31, 2003
- Money and Freedom, by Joseph Salerno, February 2, 2002
- The Case for a Genuine Gold Dollar, by Murray Rothbard
- Interview with Frank Shostak, September 30, 2008
Books to Distribute
- The Theory of Money and Credit, by Ludwig von Mises
- America's Great Depression, by Murray Rothbard
- The Mystery of Banking, by Murray Rothbard
- Prices and Production, by F.A. Hayek
- Causes of the Economic Crisis, by Ludwig von Mises
- Austrian Theory of the Trade Cycle and Other Essays, by Ludwig von Mises, et al.
- Understanding the Dollar Crisis, by Percy Greaves
- The Case Against the Fed, by Murray Rothbard
- Money, Bank Credit, and Economic Cycles, by Jesus Huerta de Soto
- History of American Currency, by William Graham Sumner
- Banking and the Business Cycle, by C.A. Phillips
- Fiat Money Inflation in France, by Andrew Dickson White
What Would America's Founding Fathers Do?
The men who threw tea into the Boston Harbor over a tax of 3 pence per pound would not be happy with a tax ten times greater on every gallon of gas. Those who took up muskets over a total tax burden of less than 3% would not be happy with the fact that the federal government now takes more than half of everything you earn.
Today it is illegal for public school teachers to teach their students that the Declaration of Independence is really true (and not just an outdated historical document). The federal government is clearly at war with everything the Founding Fathers stood for.
America's greatest Americans would abolish today's federal government.
Muskets are Not an Option
There are two reasons why we should not take up arms to pull off the violent overthrow of the federal government, even if America's Founders would surely do so. First, the feds have nukes. Second, violent revolution is unChristian and unBiblical. We must beat our swords into plowshares and use persuasion to abolish tyranny. This is time for a revolution of ideas.
Revolution Won't Come in a Day
John Adams once wrote that the American Revolution began in 1761, when Massachusetts attorney James Otis began legal challenges to the Writs of Assistance. He lost the case, but "American independence," Adams wrote, "was then and there born." Now do the math. That means it took 15 years to convince the rest of America to declare Independence (1776). Then another seven years of war was required before a Peace Treaty was signed (1783), and then six
years before the Constitution was finally ratified (1789). That's almost 30 years. (And Jefferson said we shouldn't go 20 years without another rebellion!) How can we hope to convince Americans to fight for principles they were never taught in government schools? We need to be in this battle for the long term. "Eternal Vigilance is the Price of Liberty."
The Internet Can Speed up the Revolution
Here are ways you can help.
Communicating with Government and Media
- Contact Congress -- this is from the JBS website, powered by "CapWiz," from Capitol Advantage. Lots of organizations use capwiz. If you don't want to go through the JBS, search for capwiz on Google and find another organization that uses it.
Notice that you can also contact media through this webpage.
- Action E-List
Sign up for the JBS Action E-List and be notified when you can make a critical difference on important issues.
||Make Congress Read Their Bills Before Voting
Make Congress read every word of every bill they create before they vote on it.
Urge your Representative and your Senators to sponsor DownsizeDC.org's “Read the Bills Act” (RTBA).
|TWIC - A Backdoor Real ID Card|
Real ID is dying. But the Department of Homeland Security has a new plan to subject every American to a national ID card anyway. They plan to pick off one occupational field at a time, starting with the maritime industry. One man is fighting back. Meet him, and help stop this backdoor Real ID plan.
||Stop the Killer Horse Hormones
The FDA "outlawed" the use of Estriol, an estrogen medication that's bio-identical to human estrogen. Doctors must now prescribe animal-derived estrogen instead. Are bio-identical hormones dangerous, while animal-derived hormones are safe? No. The practice of medicine is moving to chemically identical to human hormones and away from animal hormones. Learn why the FDA decided to endanger women's health in this way, and take action.
|End Asset Forfeiture|
If the government suspects you used your house or car in a crime, they can take it and sell it at auction. They don't even have to prove your guilt. They call this practice civil asset forfeiture, but it's really theft. It violates the 4th, 5th, 6th, 8th, 9th and 14th Amendments. It also encourages law enforcement to put profits before justice. Tell Congress to end civil asset forfeiture.
Support an Iraq Referendum
Americans keep debating when, how, or if to leave Iraq. Maybe we should ask the Iraqi people what they want. After all, it's their country. Tell Congress to request that the Iraqi government hold a public referendum on the U.S. occupation. Learn more »
"Cap and Trade" is not the way
The politicians seem to be unifying around "cap and trade" as a way to cut CO2 emissions. If they take this step it may be the largest increase in the size, scope, and intrusiveness of government since the creation of Medicare. Worse still, it may not even achieve its purpose. Please tell Congress to oppose "cap and trade." Learn more »
Big government prospers through failure. Each new failure is used to justify more spending and new powers. Wasteful spending in Iraq is the latest example. One way to change this is to hold government accountable. A new bill in Congress seeks to provide some of the needed accountability. Please support it. Learn more »
Stop the War for Terror
U.S. policy has inflamed the Middle East. It has made terrorism more likely rather than less. We seem to be fighting a war for terror, rather than on terror. This policy must stop. The place to start stopping is with Iran. We must not attack Iran. War with Iran would devastate our economy, disrupt world oil supplies, and recruit more terrorists. Click here to stop this war before it starts.
The Democrat Party Radio Address:
The The Democratic Radio Address was delivered by House Majority Leader Steny Hoyer of the 5th Congressional District in Maryland. He said Obama would have prevented the whole problem. He didn't say a word about the Federal Reserve creating money out of thin air for bankers to lend to those who can't pay the loan back.
Click here for a replay of this edition of the Ozarks Virtual Town Hall