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A publication f theFoundationor Rational conomics ndEducation.VOLUME 2.NO.3 MARCH OO9

Friday, February 27,2009

Conservativemovementhashada struggledefininga Conservative.We finally got the Conservatives ncharge.Wehave been struggling ever sinceBarry Goldwater,andRonald Reagan, heRevolution tn l994,and the continuation ntheyear2000; we finally got the Houseandthe Senate nd he Presidency. nd whatdidwe do? We doubled the size of theDeparffnentof Education. thoughtwe weresupposed o get rid of the Departmentof

So haveafew suggestionsnhowyoucanidentiff aConservative. irstof all, heyhave o be devoted o andwilling to standbyand defend he Constitution.And of coursethere'sanotherposition hey ought o take;many have,many n this roomwill take hat

TheConservativemovementhatwas designed obring us back toour roots-likeIimited gov-ernment,smnllerSovernment,moreindividual liberty-it hasnt happened.

Congressmanaulb Addressto CPA2009I give a lot of speeches ver on the

hill,I givea ot of speechesnthe floor,and o andbehold, don't get hatkind of applause, ecauseI don't think they'reon the samewavelengthasyou andareon. I think there's a disconnect,and of course hat'swhat this struggle s all about. think in many waysthe

like to make someamendments; would like to removetwo of them, he16thand he 7thAmendment.Though we've certainlygottenourselvesnto amessbecause he Conservativemovement hat was designed obring us backto ourroots-like limited government, mallergovemment,more ndividual berty-it hasn'thappened. ndnow,sincewe did not do thejob we were supposedo do,the oppositionhas taken over, and guesswhat, they'recriticizing theRepublicans nd he Conservativesor nothaving balanced he budget.But does hatmean hey'regoingto do that?No! They'regoingto makeus ook likepiken; they'regoing o doubleand riple andquadruplehe spending. mean t isendlessBelieveme, we're n seriousrouble.That s why I talk a lot to young peopleTheyoungpeoplearevery nterestedn whatI talk about,and heyoung n sprit arealso

interestedn what talk about.But theyoungpeopleespeciallyare nterested ecauseheyknow what they're getting. They knowthey'regettinga bad deal; hey'regettingnothingbutdebt.In the past12+nonthsour national debfwent up 1.5 rillion dollars,andnextyear t'sgoing o be more.They're hoping t will be1.7 hisyear otal,but hen t couldbe 2 or ttcouldbe3: the numbers re rrelevant.Ancwe'rc in an atrnosphere ow where f we canaccept he dea hat the taxpayerscanpayposition,but t isabsolutelynecessary,goodConservativewill starttalking boutandpreachingnwhy wehavetogetrid of theFederalReserveSystem.And thenwecould.we're devoted o the Constitution,rule of law is very, very important:You can't ignore theConstitutionwhenyoudon't like something;whatyouhaveto do s if vou don't like it, you have o amend t. I would

thatbailout, everybodyon Wall Street, ailout the banksand big business-theres nothing that can't be funded-nothing hat can't be appropriated; verythingwill beappropriated. herewill be no cuts; herewill only be onelimitationon whatwehavegoingon odayand hat imitationwill be thevalueof the dollar.Todaywe are still privilegedto print dollars, and he

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world is still unbelievably aking hosedollars,but that sgoingto end;and when hatends, heparty s over.Mostpeoplehinktheparfy'salreadyoverbut t's only half over.The financialsystemhat we havebuilt andhave ived withstarted nl97l It was hedollar standard,he fiat dollarstandard. he financialsystemhasbeen otallybuilt onthatsystemand t wasdoomed o fail. As a matterof fact, t wasthatvery day n Augustof 1971,on August15th,when heBrettonWoodsagreementinally cameundoneand he astlink to gold was removed.Then I knew that we hadembarkedon the course hatwe areon todayand hatsystem asbuilt this monstrosityof a financialsystemworldwideneverseen n the historyofthe world; We are he biggestdebtornation n theworld,andit'snotjustUnitedStateshat's nffouble, t's thewholeworld. That inancialsystem ascomeunglued,butthe nextshoeo dropwill be hedisintegration f the doilar.So weas Conservatives nd believers n limited governmentandbelieversn the Constitution,we havea ough ace oresfainthebig spenders efore hat happens.When that happenswhat is threatened s our liberty. The main purposeof agovernmentn afreesocietyshouldbe thepreservationoflibetty.Fortunately,we ive inacountry thatknewsomethingabout hatand emphasizedhat n our earlyyears,but wehave orgottent, we have ostour confidence.We arenotdeterminedopresenthe case or liberty,we havechoppedlibertyup nto pieces:We haveeconomic iberty,we havesocial iberty andwe havea foreignpolicy that'sbuilt onjust total allacies.So we have oput thisall back ogetheragain,and ortunatelywe havesomethinghat canpull itback ogether, nd hat sthe understanding f the FoundingFathershatput t intoour Constitution.This meanshat fwe would follow themles anddothe ob right,we wouldn'thavea welfare state.The ob that we have,we asbelieversand hose hatspreadhis message,he ob we have s to presenthis caseand still prove hat we are he humanitarians. he iberaldo-gooders,he big spenders ho say hat we're goingtogive a free houseto everybody, free medical care toeverybody, reeeducation;hat'spreposterous. ut theystill won the astelection-hadsomethingo do with that.Everythingsgoingtobeforfree,andyettheproofs, fyoucareaboutyour fellow man here soniy oneway you canmaximize prosperityand maximizefreedom,and hat sthrough he rule of law and making sure hat everybodyunderstandshat liberty is an ndividual thing and notacollectiveright.If wewantto getourHoirseinorder,wehavetoaddress

the subjectof foreign policy. There was a time whenConservativesada completely ifferentoreignpolicy.Bacin the olderdays,whenwe had a RobertTaft andotherstheyhada different understandingaboutwhat our foreignpolicyought o be.Theyweresoold-fashionedheybelievewe had o follow theConstitutionand t wasdesignedodefend hiscountry;nothingmore han hat.Not thegivingawayof our sovereignty,not to listen to the UN and heWorld Bank and the IMF and theWTO; we don't neeany ofthose.Today,n the midstof the urmoil that wehave here sastrongbehind-the-scenesovementowardanevengreatepresence f world govemment.They want to solve hisproblemby internationalizing tre inancialsystem-theas20,30 years t's been nternationalized, ut we had aprivilege; wegot to print thegold so we hadan advantageWe ivedoffothers,butthat'scoming o anend.We'rethebiggestdebtorandsoon hatdebtwill be called.But,they'retrying now to put this together,and they're going tointernationalizeit; it is going to be more of the samintemationalism,WTO and egulations ndbankingsystemIt is mpossibleorthatsystem o lastand o work,becausyoucannothavea fiat system,whether t's a singlecountryor an ntemational ovemment,o makepapermoneywork-and hat s theonly thingthat we havegoingfor us, That swhy the money ssues so mportant. n a freesocietyyouhaveto havehonestmoney; honestmoney is what theFounders escribed ndsaid hatonlygoldandsilvershouldbelegal ender.But we ought o addresshesubjectof foreign policy.Partof thereasonswhy we lost this lastelectionwas heforeign policy issue.Generallyspeaking,hepresidentiacandidatewho argueshecase orlesswarmongeringwillwin theelection,andof course,Obama ook advantage fit. He said I'm going o end he war n Iraqand 'm goingtobring those foops homeandsolveall theproblems,"andhewon the election.So hisgenerally s thecase;but thetruth s, oreignpolicyhasn'tchanged.We shouldbelookingmoretowhatGeorgeBushsaidin the year2000.He was stronglycritical of theClintonyean-of nationbuildingandbeing trepoliceman f theworld,whatwe were doing in BosniaandSomalia-andhe wonthe election.He saidsomevery,verygood hingsbut afterthathe againoined the nternationalists.oined his deathat heAmerican axpayers, ou,havean obligation o takecareof everybodyandpotce the world,andputour militaryout thereand be exposedo all this danger. t doesn't makeanysense; his is literally what bankrupts hecountry.Yousee nternationalexpenditures,t cost us atrillion dollarsa

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year o takecareof our foreignpolicy,and hat cannot ast.It iscoming o anend.As a matterof fact, hepersonmostpleasedwith ourforeignpolicy s OsamaBin Laden,becausehehasrittenabout his; "I amgoing o getyou to comeoverhereandwe'll fightyouon our sandandwe will dowhatwedidtothe Soviets."Of course,we helpedhim do what hedid tothe Sovietsbecausewe subsidized nd supported im todrain heSoviets,andhe saidhewill dothesamehing. Hewill eventuallybanlcupt hiscountry,and 1oand beholdwe are weakerfor it, our military personnel re atigued.wasveryproudof what happenedastyearin thecampaign,because talked about heold Conservative Republican non-interventionistconstitutional oreign policyand,we andour campaign,got the mostmoneyof anycandidate rom the military.But historically,greatnationsendwhenthey overextend hemselvesoverseaswhetherit'sbackto the Romandays,ortheSovietsor whatever.The country feelssoinvolved hat heygoand hink of themselvesasbeingover$ wonderfrrl,hatwearegoingto spreadour message.t actually startednWorld War I; the truth is there was no needfor us to be involved in World War I. but

Thewelfarestatewill endbecausethemoneywillquitworkingandwewill no longerbeableto affordtopromotewhatwe'redoingaround heworld.

soonerwercalizethatthebetter.Today t's only financedbecausewe have his monetarysystembecausewe can'tpossibly ax thepeople,we can'tborrow muchmore,sowe're still relyingon theFederalReserve.So what has heFederalReserve one n this astyearor so?Congress asspenthundreds f billions trying to bailout thesystem.Republicansare now voting against hiswhich sgood, 'm delightedwittr that,but t'sa ittle bit latebut hey'revotingagainstt.Butwhatabout. .What is the FederalReservedoing?Wetalkabout800billion dollarsand t's a big dealtheFederalReserve oes t in trillions.We'reup to acommitmentof 9 trillion dollars.Wein Congress ndyouascitizenshaveno deawhat'sgoingon, and t's governmentotallyout of control and t's to take careof theirbuddies.Theypumped his money nto theindustriesand what happens? hey getout,theygethuge,billions andbillions of dollarsworthof bonuses, nd hen heygoandbuytreasury ills to keep hedollar romcrashingbecausehey will leave he treasurybillseventually,so heybail out their friendsandthe bonusesare paid, and the Americanpeoplesuffer,becausen theageof inflationthe middle classgets wiped out. Thecharacteristic f inflation sthe wiping out ofwhowasn't?But there t was:WoodrowWilson saidwehave o do it becausewe have o make heword safe ordemocracy,which ledto this millions,hundreds f millionsof peoplebeing killed in the 20thCentury.Sowe're backat thesame hing;we have o go andspread urgoodnessn theMiddleEast.So,yeah,we wantto get id of a badguy n Iraq,we did;but t cost, t tooklives.Anothermillion Iraqisgot killed. Believeme, heywtrentallte-nbriStgSomepeopieticln-tp-rticu|aray1iFthat,but neverttrelesstpleasedOsamaBin Iadenbecausewewere here.We werebankruptingourcountryand ightnow, oday,wegetanew Presidentwho ays e didn't likethe war that wasgoingon. So what arewe going to do?We'regoing o draganother17,000Americans ndpopthemintoAfghanistan.Don't we knowanlthingabouthistory? t is bankuptingour country It will end, whether hepeopleagreewith meor not; t will endbecause e can'tafford t. That'swhereit's alwaysendedhroughout istorythat'swhat he inancialcrisis s telling us.The welfarestatewill endbecausehemoneywill quitworking andwe will no ongerbeabletoaffordtopromotewhat we're doing around he world. The

the middle classand enhancing he wealthy. So it's aneconomicandpolitical system hat s here odesffoyus,andhere o destroyour freedomunlesswe understandwhatfreedom s all about.Freedom omes o us n a naturalway; it's in aGod-givenway. t isnotgiven ous because e belong o agroup.Therc'snosuch hingasWomen'sRightsandMinority RightsandGay Rightsandall these hings.There'sonly one ypeofrighl+hat-isan n-dividualilghtthatlascome o us romGod.To defend hat right is like defendingFreedomof thePress. reedomof the Press ivespeople he ight to writeconffoversialhingsandengagen conffoversial iscussionsOtherwise ouwouldhavepriorrestraintand hegovemmenwould come n and ell newspapers nd radio what theycouldsayand do.Nobody wants hat.Buteverysingleday,we havepriorresnainton everythingwe do in the marketplace.Everymarket ransaction,everylabor ransaction, verydollar ransaction, verypropertytransaction s done only with the permission of thegovernment.

Sowe nowhavemovedamajorstep n thedirectionof

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socialism, nd heyalk aboutnationalismandnationalizingthebanks.The name sn't as mportantas he conffol. We'recloser o a fascistsystemwhere hegovernmenthas otalcontrol of our ivesandour economy, nd hat swhathasto be stopped.But if we understandwhatfreedommeans orFreedomof the Pressand no prior restraint.We also cannot askconservativeso say hat we have o havepriorrestraint onindividuals on their socialbehavioror that we can egulatesocialbehavior.Wehavesomepeopledefending conomic iberty ratherwell, andothersdefendingsocial iberty,andyet t's all oneand the same; he Foundersunderstood hat.And if wecould only putthat ogether, eoplewouldhave reedomofchoice n their economicand socialendeavors. heonlything s,under hat system ou have o beresponsible oryourself; f you do harm o yourseifor don't take careofyourself economically,you can't go crawling to thegovemmentandbeggingandpleadingand demanding.Weget nvolved oomuch n social egislationbecause omeofthe stateswant to do the right thing, whether t has o dowith marriageandothersocial ssues, nd he states nderthe Constitutionhavea right to do this.But they've beendenied his right becauset goes o aFederalCourt, theSupremeCourt and hey rule and throw out these aws;they shouldnot evenhear hese ases.That swhy my approacho dealing with themarriageissue, he abortion ssue,any social issue s that thejurisdiction is removed. t's takenout of theFederalCourtsandwe coulddo a ot more n whatwe wantto do.whetherit's rightto life, ratherthanwaiting ntil wehaveconffolofthe SupremeCourt rule or waiting until you amend heConstitution.Thisbill canbepassed nd t shouldhavebeenpassedwhen wehad hemajority. Unfortunately herewasvery ittle interestn it. The We ThePeopleAct hat have sonebill that couldpass,and t couldhave savedmillionsandmillions of lives by preventingabortionby stateaw.I've inffoduceda few piecesof legislationdealingwiththeFederalReserve.One s toget id of ttreFederalReserve.By all practicalities,we cannotdo thatright awaybecauseit would be chaotic.My realposition s thatyou legalizecompetition,egalize he Constitution; hat would be a boldstep.Allowing competitionwould take careof it, but thereis onepieceof legislation hat'sgettinga ot of attentionandsupporton both sidesof the aisle, something hat would begreat f you getbehind t. It was ust introducedyesterdayand he number s 1207 and what it isgoingto do, and cando, s to audit theFederalReserve.At leastwe can ind outwhat hey'redoing.

The law says hat the GAO has he right to audit theFederalReserve, xcept orA, B, C, D andE, and hat'severything hat hey do. Soby lawthey areprohibited,we'reprohibited from auditing or getting any answers rom theFed,yet theyhavemoremoneyandmorecontroloverourlivesandyour dollars andyour future.They havecontroover theforeignpolicy and he domesticpolicy, andyoudon't haveanyright to know anythingabout t. I can't evengetthe nformation. It has o comeaboutby thepassage flegislation like this, that demands hat they are notindependent nd otally secretand hat they can rule thiscountry through the power of creating money. It's amonstrous raud: t hasexisted hroughouthistory wherethe king getsconfol ofthemoney and nflates hecurrencyand dilutes themetalsandprints themoneyand whateverbut it has o stop;and f we don't, believeme, his thing willgetmuch worse. So his to me s amajor step n the rightdirection.I want togoaheadand closeand say hat I am stronglyencouraged,specially y theyoung people 've talked oin the astyear.They'reenthusiastic bout iberty,defendingit consistently, efending he Constitutionand ealizing hathe situation we have today is unworkable; the SociaSecuritySystem s unworkable.And that we candefendallthis by defendingourConstitution,defendtheruleof lawunderstandingwhereourrights come rom and say"Yeswe want our freedom back. and we will assume heresponsibility or ourselves.

Nothing in this publication is intended to aid or hinderthe passage of legislation before Congress.

About theRR.E.E.FoundationThe Foundation or RationalEconomicsandEducation,Inc. is a 501(cX3) ax-exemptpublic foundationdedi-cated o individual liberty and ree-marketeconomics.It was oundedby CongressmanRon Paul of Texasandpublisheshis FreedomReport.Formore information,or to makea tax-deductible onationwrite:F.R.E.E.,Inc., P.O.Box 1776,Lake Jackson, exas77566,orcall979-265-3034.