Tag Archives: Newsletters

The Ron Paul Newsletters: A Slight Return

Around the time that this blog started, one of the projects tackled was to transcribe various newsletters that Ron Paul had published, from the late seventies into the mid nineties: “Ron Paul Paper Trail – The Newsletters”. There is constant discomfort and denial of what was in these newsletters, not simply a case of inappropriate or unartful language used, but the most venomous feeling in American life given vent. Even the excellent recent profile, “The Revenge of Rand Paul” by Ryan Lizza, shies somewhat from their content, and does not mention “Blast ’em?”, in which the reader is instructed on how to kill a black man and get away with it.

Given the growing momentum behind his son’s campaign for president in 2016 and my own difficulty writing various posts, this seems like an apt time to post the remaining unposted newsletters that were lying around my drive, so that their content might be easily searched for, copied, and re-transmitted. Those newsletter excerpts that I had pdfs for, I uploaded to scribd; the remainder are accompanied by scanned images of the newsletter excerpts which I got from the invaluable @RP_Newsletter.

Notable moments include sympathy for Scientologists because they managed to infiltrate the IRS through their Snow White operation (“Time for Scientologists”, from “Ron Paul Survival Report June 1991”); the title and tone, “Animals Take Over the D.C. Zoo”, of a piece on a riot involving latino kids (from “Ron Paul Survival Report June 1991”) U.S. intervention in Bosnia criticized because it would bring about “a Muslim government in the heart of Europe that will be ruling over a Christian population” (“Clinton’s War for Reelection” from “Ron Paul Survival Report January 1996”); the sentence, “Thanks to Clinton and the Senate, we now have a far-left normal-hating lesbian activist heading the anti-discrimination bureau within HUD” (“Achtenberg Update” in “Ron Paul Survival Report July 1993”). Though he is often praised as a critic of police tactics, in his newsletter, Ron Paul Political Report June 1992 – A Special Issue on Racial Terrorism / This is America, 1992, Paul is upset at the amount of restrictions on the police in dealing with the L.A. riots. In such newsletter pieces as “Why Militias Scare the Striped Pants Off Big Government” (“Ron Paul Survival Report November 1994”) and “Are the Federal Chickens Coming Home to Roost?” (“Ron Paul Survival Report August 1995”) he takes entirely the opposite tact, chastising the federal government for a raid on the Waco compound, a compound with a cache of weapons. I leave it to the reader to distinguish the reason for the difference in approach. Perhaps because of 2016, most interesting among this recent batch of newsletters is his attitude toward Bill and Hillary Clinton. From “Ron Paul Survival Report July 1993”, there is “Hillary’s Marxism”: “She is surrounded by Marxists, and has been since her student days…Like all Marxists, she is also duplicitous.” From “Ron Paul Survival Report August 1994”, there is “Murderous Clintonians”, which accuses the Clintons of murdering Vincent Foster: “In the entire Foster report, not one mention was made of the decade-long adulterous affair between Hillary Clinton and Vince Foster…Given this obvious coverup, how much less likely is it that Fiske would have considered exposing a murderous plot to kill Foster? If he doesn’t report on well-known facts that have bearing, we can’t expect him to report on something as earth-shaking as a murderer in the White House.”

These newsletters are written under the name of Ron Paul, and often adopt most of his qualities, so any reader would assume that Paul had written them. Paul lives at Lake Jackson, the New Deal housing development mentioned in “The Revenge of Rand Paul” as the place where Rand Paul grew up, and it’s Lake Jackson that is mentioned as the home of the newsletter writer in “Blast ’em?”: “I frankly don’t know what to make of such advice, but even in my little town of Lake Jackson, Texas, I’ve urged everyone in my family to know how to use a gun in self defense. For the animals are coming.” The piece “Who Wrote Ron Paul’s Newsletters?” by Julian Sanchez and David Weigel would allege that it was Lew Rockwell, Paul’s former congressional chief of staff, who wrote these newsletters. “Paul Disowns Extremists’ Views but Doesn’t Disavow the Support” by Jim Rutenberg and Serge F. Kovaleski, an overview of the controversy when the newsletters came out in 2011 gave his stance on what had been published under his own name: “I disavow those positions,” he said in the interview. “They’re not my positions, and anybody who knows me, they’ve never heard a word of it.” Though Paul was supposedly shocked by the content of the newsletters published under his name, but which he never read, he did not treat Rockwell as an apostate. “The Ron Paul Institute: Be Afraid, Very Afraid” by James Kirchick, the writer who’d done more than just about anyone to bring the newsletter story to the fore, would describe the creation of a think tank in 2013 with Lew Rockwell on the advisory board. “If Paul “disavow[s] those positions” expressed in the newsletters,” Kirchick would ask, “as he adamantly told the Times less than two years ago, then why would he place their presumed author on the board of a think tank bearing his name?”

On October 2nd, Terry Gross would interview Ryan Lizza about his profile on the NPR program “Fresh Air”, “As He Considers A Run For President, Rand Paul Tries to Rebrand Himself”. It was an insightful interview, especially so on the subject of the newsletters.

From the 32:33 to 35:19 segment of the interview:

GROSS
It was in that campaign, that Ron’s opponent, Charles Morris, got a hold of some of the newsletters. Some of Ron Paul’s newsletters, that had quotes in them like, “We are constantly told that it is evil to be afraid of black men. But it is hardly irrational. Black men commit murders, rapes, robberies, muggings, and burglaries, all out of proportion to their number.” And you quote that in your article, and you also quote one of the Ron Paul newsletters as saying that, “Most black males in Washington D.C. were quote semi-criminal to entirely criminal” and “Only about five percent of blacks have sensible political opinions.” You say at the time, Ron Paul didn’t dispute that he’d wrote these articles-

LIZZA
He did not.

GROSS
But years later, he said they were ghostwritten.

LIZZA
That was news to me, because I remember when this controversy erupted, much later, in the 2012 campaign. But when you go back and look at the Texas newspapers that covered the ’96 campaign, when, I don’t think people remember this, but the racist newsletters that Ron Paul wrote, was a huge issue in his ’96 campaign, and during that campaign, he did not deny that he wrote them, and the newspapers at the time reported just straight up that he did write them, and it went undisputed by Ron Paul. And many years later, he said, “Well, they weren’t- Yes, I sold them, but I didn’t write them.” Frankly, to me, it’s not much of a distinction.

GROSS
So, what does that say about Rand, Ron Paul’s son, who is working on his father’s campaigns, one would assume he’s read those newsletters, and didn’t do anything to back away from those racist statements, didn’t do anything at the to try to moderate those racist statements?

LIZZA
I think this is where you get into the question of, how much does the son have to pay for the sins of the father-

GROSS
Wait, but let me just interrupt here, the son worked for the father on that campaign, and-

LIZZA
Helped him win it!

GROSS
-was theoretically supporting his father’s views…

LIZZA
Absolutely. And I think that will…if he runs, that will be an issue for him. And a legitimate issue. What did you know about your father’s newsletters? You worked on that campaign, you said you helped win it. You told- He’s boasted about helping his dad win that campaign. It’s a small family. This family is very close. Well, you were reading your dad’s newsletters, right? Those are all questions I didn’t explore every avenue of that, but there’s no doubt this issue of race that has sortof haunted the Paul family now for many years, is one that’s going to play a huge role, if he runs for president.

Near the end, from 36:42 to 37:56 on the audio file:

GROSS
Is there anything that you found particularly surprising or particularly enlightening when you were reporting this piece on Rand Paul?

LIZZA
One thing that stood out…to me, is that….this is really a piece about a father and son, who share so much in common, and the reason the son got to where he is in life, is because of his father. He wouldn’t be a United States Senator without his father. He told me as much. And now, for him to take the next step, to get where he wants to go next, his father is basically what’s standing in the way. His father’s history and associations. And, you know, that’s an awfully tough predicament to be in, for a politician. I mean, one of the things I was really surprised to learn…do you know who the best man at Rand Paul’s wedding was?

GROSS
Who?

LIZZA
It was his dad. It was Ron Paul. And so, you know, he obviously has a deep affection and relationship with his dad. And yet, it’s his dad, and his dad’s sortof peculiar mix of associations and outrageous statements that are gonna haunt him when he runs for president.

The following are the newly posted newsletters:

Ron Paul Survival Report March 1990 – AIDS as a Communicable Disease / Palestinian Rights?

Ron Paul Survival Report June 1991 – Tax Guerilla Warfare / Animals Take Over the D.C. Zoo / King George and Foreign Aid / Challenge to Liberty / Curious George / Time for Scientologists / Politically Correct? / More Nonsense From Gingrich

Ron Paul Survival Report December 1991 – Mr. Johnson’s Magic

Ron Paul Survival Report July 1993 – The Koresh Tapes / Randy Weaver / The Unmentionable Cause of Breast Cancer / Clinton’s Deficit Cutting / Gergen’s Connections / Achtenberg Update / Hillary’s Marxism

Ron Paul Survival Report August 1994 – Buy a Gun, Now / Haitians and Americans / Hessians / Murderous Clintonians

Ron Paul Survival Report November 1994 – Why Militias Scare the Striped Pants Off Big Government / South African Gold Developments / North American Gold / Go Minorco

Ron Paul Survival Report August 1995 – Are the Federal Chickens Coming Home to Roost? / A Dollar Coin?

Ron Paul Survival Report January 1996 – Clinton’s War for Reelection / Ceour [sic] d’Alene Mines

Previously posted newsletters follow:

Ron Paul Freedom Report April 1978 – devoted entirely to the handover of the Panama Canal

Ron Paul Survival Report August 1983 – Big Government Serves the Power Seekers, Not Freedom / Big Government Threatens Our Health and Freedom / Big Government Causes Massive International Debt and War

Senate Fundraising Letter 1984

Ron Paul Report January 1988 – AIDS: Something Else We Can Thank Government For? / Bush or Weed?

Ron Paul Political Report September 1988 – Just Another Day’s Work for David Rockefeller / Private Quayle / The Last Temptation of Christ

Ron Paul Political Report April 1989 – Salman Rushdie Affair / Radicals As Media Distractions

Ron Paul Political Report November 1989 – The Establishment at Play / A Hero Honors Heroes / Sex on George Bush’s Locker

Ron Paul Political Report December 1989 – “Needlin’” / The District of Bogata, Columbia / Schultz Speaks the Truth, for Once / Run, Jesse, Run / Hurrah for Secession! / A Black Eye for Washington? / Congressional Courage / Washington, D.C.: A Black Thing? / Poor Jim Bakker / The Pension Fund Bail-Out / Flown the Koop

Ron Paul Political Report January 1990 – AIDSomania / Dan Rather Explained

Unknown Publication February 1990 – Religion in the Post-Communist Era / The Coming Race War

Ron Paul Political Report June 1990 – Race War? / Black Robed Justice / The Abolition of Private Property / The Pink House? / Private Justice in New York

Ron Paul Political Report October 1990 – King City? / Hate Crime? / Family Values on Pennsylvania Avenue / Caring for the AIDS Patient

Ron Paul Political Report November 1990 – Jews and Christians Against a Mideast War / The Duke’s Victory / More Federal Spying / Kempocrisy / U.N. Tyranny

Ron Paul Political Report January 1992 – Presidential Politics: Patrick Buchanan Endorsement / Six Questions

Ron Paul Political Report June 1992 – A Special Issue on Racial Terrorism / This is America, 1992

Ron Paul Political Report July 1992 – Encore / Sister Souljah / Liberation or Slavery? / The Government Temptation / Panama’s Gratitude / The Racial Racket / Real Racial Discrimination / Foreign Buyout?

Ron Paul Political Report October 1992 – Blast ‘Em? / Weld’s Rise And Fall / Straws in the Wind

Ron Paul Political Report November 1992 – Condoms? / Spaasky vs. Who? / Left-Wing Takeover / Willie Horton’s President / Seizing Property at Gunpoint

Ron Paul Survival Report January 1993 – untitled excerpt where he calls Commerce Secretary Ron Brown a racial victimologist / Gold and South Africa / The Somalian Question / Another Theory on Somalia / Federal Kidnapping Undone / The Norplant “Solution” / A Real Rocky Mountain High / Poor Marge Schott! / The Costs of Equality / Clinton’s School Choice / The Donald Scott Case / People Prefer Their Own / A Cashless Test / Gays and the Military / Equal Opportunity / The Future of Pensions / Economic Notes / The Disappearing White Majority / Ronald Reagan’s Contemptible Speech

Ron Paul Survival Report March 1993 – Clinton’s Illegitimate Children / Clinton’s Sacrificial Altar / Trouble at Treasury / Price Controls / More Haitians? / You Can’t Fire a Freak / Harry Schultz on the Strategy Report

Ron Paul Survival Report April 1993 – The New York Bombing / Rush To Gold / What is Income?

Ron Paul Political Report January 1994 – The ADL Gets Off Scot Free / AIDS Dementia / The CFR

Ron Paul Survival Report September 1994 – Chastity, Not Condoms / Avoiding AIDS / Using Gold During Chaos

Ron Paul Survival Report January 1995 – Ten Militia Commandments / Bearish on the Precious Metals? / A Resurrected Ecu?

Ron Paul Survival Report May 1995 – Join Me in the Battle For America / More Bailouts Ahead

Ron Paul Survival Report September 1995 – Waco, Ruby Ridge, Oklahoma City, Foster / Black Helicopters? / No Trespassing / Phony Train Wreck

Ron Paul Survival Report May 1996 – Why He Traveled / Up and Up / Funny Money

(On October 3rd, the interview of Ryan Lizza by Terry Gross on Fresh Air was added. On October 6th, text and link were slightly changed for the September 1995 report, to reflect the added material about the allegation that the Oklahoma City bombing was a government conspiracy.)

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Ron Paul Newsletters / Ron Paul Survival Report January 1996

A transcript of the January 1996 Ron Paul Survival Report. A scan of this excerpt of the newsletter is on scribd: “Ron Paul Survival Report January 1996”.

January 15, 1996, Volume XII, Number 1

Clinton’s War for Reelection

No sooner had the troops hit the ground in Bosnia than many former critics of the operation retracted their views: We must back the president. Politics stops at the borders. Clinton may have gotten us into this mess, but it’s our mess now. We must work together to clean it up.

Baloney. The time for bipartisan foreign policy is over. The Cold War is history. There is not one good reason for sending our troops into this hotbed of religious and ethnic feuding. Most of the troops themselves oppose it. The public opposes it. If we support our troops, we should bring them home.

This Bosnian mission will be expensive in tax dollars and perhaps in American lives. And, to start, there are 40,000 American lives at stake, not the 20,000 usually cited.

But should “we” maintain “our” leadership role in the world? What a bunch of poppycock. There are no American interests in this region. No American territorial security is threatened. The ethnic troubles in our country are bad enough. There is no reason to take on the troubles of the world. After all, the real threat to our security and our sovereignty is in Washington, D.C.

If we practiced the rules of a free society, and set a standard with the free market, sound money, and civil liberties, that examples could provide true leadership to a world now swiftly moving toward world government.

To make matters worse, Clinton’s “peace” agreement was made at the expense of the Bosnian Serbs, who have been emigrating as fast as possible, and with the bones of their family members in tow. Why are they taking the bones? To keep the graves from being desecrated by the muslims who are now ruling over Sarajevo and its suburbs.

That’s right. The U.S. government is imposing a plan to create a Muslim government in the heart of Europe that will be ruling over a Christian population, or what’s left of it after this peace agreement. How or why this happened is the subject of a great deal of revisionism right now.

My Ten Predictions for the New Year
(Although the principles of Austrian economics preclude an overemphasis on short-term projections.)

1. The Federal Reserve will lose control of the international value of the dollar.

2. The myth of the mutual fund (that it’s as secure as secured savings) will explode.

3. Congressional spending, taxes, and the deficit will be higher next year than this.

4. Interest rates will also be higher.

5. The elections will reveal unrivaled hatred of the federal government.

6. The Fed will bail out at least one large pension fund as the Pension Benefit Guaranty Corporation is stretched to the limit.

7. A recession will be confirmed by year’s end.

8. Price inflation, even by government measures, will accelerate.

9. The war in Bosnia, as well as the war in our streets, will get worse.

10. Gold will break through $400.

The 1991 Russian recall of the 50 and 100 ruble notes destroyed the life savings of many innocent citizens. In that recall, they had only three days to turn in their cash, and for tax purposes, were required to explain, in detail, its source.

Our Treasury Department continues to argue that the U.S. has never had a recall nor declared any paper currency not to be legal tender. But our government has really done worse. It failed to keep its promise to redeem our currency in gold and silver, and refused to pay gold for federal bonds issued as promises – acts equally immoral to declaring a currency to be no longer usable.

The Russian situation cannot be ignored. Robert Friedman, an investigative reporter for New York Magazine, claims that U.S. banks, with the full knowledge of our Federal Reserve, have sent $40 billion in new $100 bills to Russia since January of 1994 [this is actually a fascinating story, and is available on the New York magazine archive at Google Books: “The Money Plane” by Robert Friedman]. This amount is greater than all the rubles in circulation in Russia. Currently, $100 to $200 million in cash is flown to Moscow Monday through Friday to satisfy demands for U.S. currency.

Since the Russian Mafia controls the majority of Russian banks, and it is deeply involved in the drug trade, it makes one wonder as to the full motivation behind our government’s willingness to participate in this massive currency flow.

My analysis is that it’s a short-run benefit to our Treasury to export our cash since it helps to keep price inflation in check here at home. If all this cash circulated in the United States, it would put tremendous price pressure on our goods and services here at home.

Yet I would not put it past some of our officials to be in bed with the drug dealers and the Russian Mafia. Is there really that much difference between the Russian Mafia-controlled system and our highly secretive, illegal, and all-powerful Federal Reserve system?

The problem they are running into is that with the issuance of the new currency, the masses of Russian underground participants are getting skittish. This is the reason for the Treasury Department’s unbelievable effort to reassure the Russians, pleading that they not dump our dollars out of panic (which could lead to a world-wide repudiation of the dollar, or at least its devaluation vis a vis harder currencies like the mark).

The Fed and the Russian Mafia are powerful and rich, but they cannot control public confidence. It is controlled by the market place, and public confidence is cracking and threatens the establishment’s whole financial empire including the dollar system. If it comes undone, which it could rather rapidly, there would be an explosion in gold prices and massive inflation in dollar terms.

Issuing new currency has been an on-again off-again plan for more than 15 years. The concerns expressed by many Americans modified and slowed down the government’s plans, and this newsletter ironically played the crucial role in bringing about the delay.

Even now, our officials are quite worried and hesitant about the way the new money will be received, otherwise there wouldn’t be this lavish PR effort worldwide directed toward maintaining confidence in the U.S. currency. It’s conceivable, if not likely, that this concern could force even another delay.

Many ask me about the possibility of a 10 to 1 or 100 to 1 exchange on the new money. Under current conditions, that’s not to be expected. But if, by accident or design, the Russian-U.S. dollar controversy precipitates a run on the dollar and instant inflation occurs, all bets are off.

The U.S. government is anxious to break people’s attachment to the present design of the currency as a foreshadowing of more ominous plans later. If the U.S. does default on its bonds, or has to inflate to the skies to pay them, the power elite want the flexibility to undertake any measures, even extreme ones. Government officials want that too, and changing the currency now helps minimize the chances of a panic.

U.S. officials also want to do what they can to uproot the vast underground economy in legal goods and services. If currency switches are in the offing, it discourages people making long-term contracts in paper money and from keeping underground savings in this form.

Ultimately, the goal of central bankers and government is power and wealth at our expense. Honest money and economic growth benefiting the middle class is of little concern to them. That’s why reform in money, and the promotion of individual liberty, will only come from intellectual leaders who care more about the middle class than the privileged elite.

Ceour [sic] d’Alene Mines

Although we are big believers in silver’s long-term role as a monetary metal and its significant appreciation potential, Greg Orrell and I have rarely mentioned silver-mining stocks.

It is not that we have purposely neglected silver stocks; it has more to do with the fact that there is no longer a silver mining industry in North America as there once was.

While the 80s marked the rebirth of the gold-mining industry in North America as gold prices stabilized around $400 an ounce, the silver mining industry was wrecked by depressed prices and higher costs.

The Spokane Stock Exchange, which listed mostly silver-related issues, closed down in the late 80s for lack of interest. Venerable silver producer Sunshine Mining went basically bankrupt; it is only now recovering.

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Ron Paul Newsletters / Ron Paul Survival Report August 1995

A transcript of the August 1995 Ron Paul Survival Report. A scan of this excerpt of the newsletter is on scribd: “Ron Paul Survival Report August 1995”.

August 15, 1995 Volume XI, Number 8

Are the Federal Chickens Coming Home to Roost?

Anyone who has worked in a bureaucracy knows how all-consuming a public scandal can be. Lacking any real work to do, and fearing only public exposure, press attention causes whole departments to slip into chaos and effectively to shut down.

That describes the current status of the ATF, the FBI, and the Justice Department, and many other agencies in government that are watching the fun. A series of mishaps (not to mention murders) has undermined their credibility and turned each agency into a viper’s nest of recriminations.

The “Good Ol’ Boys Roundup” attended by agents of the FBI, the IRS, ATF, and other agencies has led to serious problems for the agencies. Agents were shown on a video engaging in activities that Treasury Secretary Robert Rubin described as “abjectly racist and anti-Semitic behavior.”

Trouble is, it is supposed to be the militias and right-wing anti-government groups who do racist and anti-Semitic things. However, I can’t remember seeing a Hollywood production about “hate” in the federal government. This is why this video, filmed by an actual militia member, has caused such a stir. There is no evidence the militias are haters; but now we’ve got a video that shows government agents doing things the government itself has defined as hate crimes.

That video is only the beginning of the federal government’s troubles right now. It has capped weeks of Glasnost on the two incidents that have galvanized the biggest anti-government movement this country has seen since the Whiskey Rebellion.

The matter of Ruby Ridge, a murderous affair which has become a rallying point for everyone oppressed by the feds, is a central cause of the uproar. The case offers an inside look at how the federal government operates: through threats, coercion, killing, and lying.

They tried to keep it under wraps, but Justice Department’s secret study on the Randy Weaver case has surfaced thanks to a heroic leaker. It is 542 pages long, and was sent anonymously onto the Internet, becoming impossible to suppress.

The study demonstrated that key documents were destroyed showing how Weaver’s wife and young son were killed in 1992. The FBI and Justice are replete with internal recriminations and accusations.

FBI agent Michael Kahoe has been suspended pending this investigation. He was responsible for the very first Weaver review, and may have shredded documents. Sources are now saying that if these charges are proved true, this would indicate a coverup by the highest-ranking FBI officials.

Testimony at the Randy Weaver trial showed that the FBI first removed all evidence. Once an investigations ensued, they “replaced” all the materials in the cabin pretending that they had never touched it, and some of it was made-up. This was one of the main reasons the defendants won without calling a single witness.

This investigation is important because it will show that the FBI is more illegal than the people it is investigating. All patriotic Americans were outraged that Larry Potts, who was in charge of both Waco and Ruby Ridge, was promoted to second in charge at the FBI. Prior to Congressional hearings, however, the Clinton administration booted him back down again.

These high profile cases where the FBI is caught in wrongdoing are crucial to the future of the country. They can cripple these government activities and diminish the government’s respectability in the eyes of the public. The truth is that FBI, ATF, and DEA abuses are too numerous to count, and the vast majority never reach the newspapers.

At the same moment of these Weaver disclosures, another atrocious incident is coming unraveled: Waco. Thanks to an amazing amount of constituent pressure – pressure that has only increased since the Oklahoma City bombings despite media smears – Congress is holding hearings and demanding documents from the Justice Department and the ATF. A joint House committee demanded additional papers from the White House on just how the raid was approved.

The White House responded that they wouldn’t give the papers on ground [sic] that “some of them go to the core of the kinds of things the institutional presidency must protect” and are “totally innocuous.” Hmmm. Why does that not sound like a plausible reason?

Here’s what the White House fears. Clinton was briefed on the raid on April 18, 1993, the day before it occurred. His papers should have complete notes on what occurred at the meetings, which may in turn give some indication about the reasons the raid was approved in the first.

There’s still a great deal of mystery surrounding why the Branch Davidians were targeted in the first place. There are thousands of non-mainstream religious groups in this country. Some are left wing, some are right, and some are apolitical. Many of them have an institutional supply of food and weapons. The government generally leaves them alone.

What did the Branch Davidians do to bring them to the attention of the feds, and why did they arouse so much animosity with the Justice Department? What was the role of the secretive and powerful “Cult Awareness Network” in identifying the group and contacting its friends at the Justice Department?

Where did Janet Reno get the idea that children were being abused inside the compound? Why did she continue to say so after she had been corrected? Who was advising her within the department and what are the institutional affiliations of her advisors outside of the department?

There are hundreds of other questions. For example: Did the agents know that the CS gas they pumped so massively into the house was highly flammable? Is this what caused the fire? Did they also know that it was deadly for children?

The Washington Establishment is against these hearings. They don’t want any suggestion, ever, that the government is something less than wonderful to become public. D.C. also hates the idea of being held accountable for its actions.

If the new freshmen – who are primarily responsible for these hearings – do nothing else in this Congress beside hold these hearings, they will have justified their terms. The entire government will not come crashing down, but if they do their job, they will likely expose a conspiracy at the highest levels of government.

The Republican leadership of the House and Senate are already being offered deals to back away from the uglier aspects of the Waco and Weaver atrocities. But with their own party members and voters breathing down the backs of their necks, they may be in no position to accept.

Meanwhile, the bureaucrats in the federal government continue to hold memorial services for the victims of the Oklahoma bombing. Nothing is yet schedules for the far more numerous victims of the government.

Against all odds, the facts about Waco and Weaver are making it into public, and complaints against the government are being heard. The psychological change this causes cannot be overlooked. People have begun to look more carefully at other police functions of the government – in particular the brutal tactics it uses to collect revenue – and ask even more questions.

A Dollar Coin?

I’m often asked whether I favor replacing the dollar bill with a dollar coin. As much as I don’t like paper money, it’s probably better than a tin dollar spraypainted gold.

The government says it can save $400 million per year with the new coin. Since when did Washington care about such amounts? There’s more going on here. Before the government undertakes a much larger switch of the currency, the Fed and the Treasury want to see how well a switch from one form of currency to another goes.

Though you will never read this in the news stories, that’s why the dollar coin continues to be an issue. After the Susan B. Anthony fiasco, when the government issued a form of money that nobody really wanted, the bureaucrats are shy about any form of new money. If they intend to exchange our present stock of money with bills which are colored and can be traced, they have to make sure they won’t be rejected by the market.

But the move has set some powerful business interests against the government. The American Banking Association opposes the idea on solid grounds. It is more expensive to ship dollar coins than dollar bills. The change would simply shift costs form [sic] the government to the private sector.

Currently, Senators are shifting around to decide the fare of the dollar coin issue. If it ultimately passes Congress, it will be with a very long phase-in period of fours years or more. My prediction: the dollar will stay in circulation and the new coins,

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Ron Paul Newsletters / Ron Paul Survival Report August 1994

A transcript of the August 1994 Ron Paul Survival Report. A scan of this excerpt of the newsletter is on scribd: “Ron Paul Survival Report August 1994”.

Buy a Gun, Now

In a matter of months, or perhaps sooner, the federal government will begin a crackdown on the only remaining legal way to buy an unregistered gun: private sales at gun shows and through classified ads. Since the passage of the Brady bill, gun shows have become enormously popular, attracting people from all walks of life. Licensed dealers have to comply with all the unconstitutional BATF paperwork. If you meet a private person with a gun to sell, it is not only legal for him to sell it to you, but for you to buy it, without any paperwork whatsoever.

The feds, with the help of the Wall Street Journal and other establishment news outlets, has begun to claim that gun shows are used by gang members to buy weapons. In fact, gang members do not need to go to shows. Plenty of guns are available on the streets. It is middle and working class people who fear the streets and go to gun shows to purchase weapons for their self-defense.

But as with other anti-gun propaganda, the gun lobby does not have the strength to counter the disinformation with facts. The left pretends as if the NRA is the most powerful lobby in Washington. If that were true, legislation based on pure lies would not stand a chance of passing.

So get to a gun show. They are usually advertised in the sports section of the newspaper. Another option is to comb the want ads in your local newspaper. Through these means, you can purchase all the guns you might need, without paperwork. At the same time, you should always have at least one registered weapon to turn in when the BATF stormtroopers come calling, as they may if the American people don’t stop this evil crusade.

However you go about it – whether through the want ads or the guns shows – you will need to act soon. Gun prices have settled down a bit since the hysteria of a few months back. You might catch the market at the lowest it is going to be for the foreseeable future. And remember, it is never wise to underestimate the feds’ determination to disarm the public.

Haitians and Americans

The Left has found a war it can love. It is expensive. It is not in our national interest. It promotes the United Nations and therefore world government. It risks American lives to help the underclass of a third-world country. And it has an unmistakable racial dimension. I speak, of course, of the military operation in Haiti, which all the left-liberals seem to favor.

Where have all the Peaceniks gone? Into the Republican Party. They deserve credit for not beating the drums for this outrageous war. But they should have resisted our first act of war against Haiti, the embargo which has driven standards of living even lower.

Haiti, like all countries of a similar type, is ruled by a cruel government. The system reflects the demographic makeup of the country: overwhelmingly populated by poor, uneducated, and superstitious blacks, but ruled by an educated mulatto elite. It is that elite which the Congressional Black Caucus has targeted (even though polls suggest that black Americans have no interest in the situation at all).

The question is not whether Haiti can have a constitutional republic. That is out of the question. The question boils down to letting the natural elites rule or imposing “democracy” and a communist ex-priest as president, risking mass bloodshed of Rwandan proportions.

It is always hard to root against your own government in foreign affairs, but the consequences of displacing the Haitian elites with Jean Bertrand Aristide would be disastrous.

It is a sign of Bill Clinton’s weakness that he has allowed himself to be dragged into this conflict. He knows it is against his long-run self interest. No regular American wants to take over Haiti and put it on AFDC and food stamps, which is what would happen.

Hessians

As the U.S. sends its soldiers to police foreign lands, the U.S. government is inviting foreigners to police us. It happens under every tyranny. Governments rely on distant enforcers when local ones would be insufficiently brutal. The local police in Waco, Texas, for example, would never have torched the Branch Davidians. This psychological dimension explains why every dictatorship in world history has centralized the police function.

The Clinton crime bill passed by the House and Senate centralizes enforcement in myriad ways. And it also takes the astounding step of recruiting foreigners from the Royal Hong Kong Police to serve in federal “law enforcement” (Section 5108) Fortunately, some state legislators are standing up to this outrageous idea, which reminds me of King George’s Hessian mercenaries used against our Founding Fathers.

The crime bill will also cost the American taxpayers more than $30 billion, yet it will not result in less crime. The bill itself is a “crime” in that it violates the Constitution. It also violates the rights of the American citizens by having more of their wealth confiscated through taxation.

Federal crime control is contrary to all that was intended by the Founders. It raises the number of federal crimes from 22 to 70. The one benefit from this is that it is stirring up the judges and prosecutors in the state law enforcement agencies whoa re losing control. May they someday reject this and all other unconstitutional federal mandates, in obedience to the 10th Amendment.

Murderous Clintonians

The media trumpeted “Independent Counsel” Robert Fiske’s conclusion that Vincent Foster killed himself and was not therefore murdered, contrary to reports in this newsletter and others. Fiske came to this conclusion by noting that Foster was “depressed.” And what about the odd positioning of the gun? Recall that it stayed in his hand, and not ten or twenty feet away, as one would expect. Fiske said his thumb stuck in the trigger.

That’s it, the whole report. It was astonishingly thin. It begged questions, dismissed others entirely, and evaded crucial pieces of evidence to the contrary. Yet the Counsel’s explanation was enough for the statist media. Not one American media outlet dared raise any points in opposition.

Of course, nobody seriously thought that errand boy Fiske would conclude otherwise. In some sense, it is amazing a commission was forced to comment on it at all. But let’s just say he had discovered evidence of a White House conspiracy to kill Foster and cover it up. Would he have revealed it?

Let’s see. In the entire Foster report, not one mention was made of the decade-long adulterous affair between Hillary Clinton and Vince Foster. Yet this affair has been well documented by many sources. The press in Arkansas and Washington spoke of it often. Everyone in the White House knew about it. Yet this fact, which would seem to have some bearing on the Foster investigation, was never mentioned.

Given this obvious coverup, how much less likely is it that Fiske would have considered exposing a murderous plot to kill Foster? If he doesn’t report on well-known facts that have bearing, we can’t expect him to report on something as earth-shaking as a murderer in the White House.

Meanwhile, even The Economist has reported on the deaths associated with the Whitewater affair. The Vincent Foster “suicide” was far from the only one. Also included:

1. “On May 11th this year Kathy Ferguson, a 38-year-old hospital worker was found dead in Sherwood, Arkansas. A gun shot had pierced her right temple in what a local police report labeled a suicide. A note was found next to the body suggesting as much. Mrs. Ferguson’s death came only five days after her ex-husband, Danny Ferguson, an Arkansas state trooper, was named as co-defendant in Paula Jones’s sexual harassment suit against Bill Clinton.”

2. “On July 12th Bill Shelton, an Arkansas police officer, was found dead – again in Sherwood, Arkansas – lying sprawled on the grave of Mrs. Ferguson, who was his girlfriend at the time of her death. Again a suicide note was found next to the body. The police report, which again describes the death as suicide, states that the bullet entered behind the right ear and came out behind the left ear.”

3. “On August 15, 1993, Jon Walker fell to his death from the top of the Lincoln Towers Building in Arlington, Virginia. In March 1992, Walker, an investigator for the RTC had contacted the Kansas City RTC Regional Office for information concerning possible ties between Whitewater Development, Madison Guaranteed Savings and Loan, and the Clintons.”

4. “On September 26, 1993, Jerry Parks was killed when several bullets were pumped into him on a street corner in Little Rock, Arkansas. Parks had been the chief of security for Mr. Clinton’s national campaign headquarters in Little Rock during the 1992 presidential campaign. No autopsy report has been released nor has anybody been charged for what looks like a professional hit. Mr. Parks’ son, Gary, says his father carried out private investigations on Bill Clinton during the 1980s. He also says the material gathered was stolen from the family home in July 1993.”

5. “On July 26, 1992, Gary Johnson, a lawyer was beaten up so badly that he had to have a ruptured spleen removed. Mr. Johnson lived in Quapaw Towers, in Little Rock, in the flat next door to Jennifer Flowers. Miss Flowers claimed during the campaign to have had a twelve year affair with Bill Clinton, which Mr. Clinton denied.”

The Economist also reports that Dennis Patrick survived

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Ron Paul Newsletters / Ron Paul Survival Report July 1993

A transcript of the Ron Paul Survival Report of July 1993. Scan of this report is on postimage:

july 1993 1 july 1993 2 july 1993 3

The report was taken from the blog, @RP_Newsletter, “July 1993: The Ron Paul Survival Report”.

per ounce dropped to $304 an ounce in the first quarter of ’93 down from $368 a year ago. Homestake’s policy of not selling its production forward means the company participates fully in a rising gold market.

Another good company is Agnico Eagle Mines (OTC-AEAGC $9 1/4) Agnico Eagle produces approximately 170,000 ounces of gold annually and has recently hit a new high-grade zone at its La Ronde gold mine in Quebec. Agnico Eagle will benefit from rising silver prices as well. The company’s silver operations are currently shut down awaiting $6-$7 silver.

One speculation we like – and you must hold the blue chips first – is Fairfield Minerals, Ltd. (TSE FFD $1 7/8). Fairfield is developing a high grade gold mine in southern British Columbia with the potential to produce 50,000 ounces annually. Last year the company produced 9,000 ounces as it was testing the continuity of the vein system.

Work for 1993 will test mining methods prior to making a commercial production decision. With talented management, a strong balance sheet and a promising ore body, Fairfield could be a winner.

The Koresh Tapes

Several months after the mass murder in Waco, Texas, the FBI released some transcripts of the local sheriff’s conversations with David Koresh, leader of the Branch Davidians, on the 911 line. Published by the Houston Chronicle, they confirm much of my initial analysis.

Far from revealing a crazy madman, the tapes show him to be a reasonable person, despite his alleged religious views, with a traditional American request: to be left alone. Of the BATF, he told the sheriff: “they could have arrested me any day, taking my jogs. Every day, I took them…I don’t care who they are. Nobody is going to come in my home, with my babies around, shaking guns around, without a gun back in their face. That’s just not the American way.”

Poor Koresh. He’s right that it ued to be the American way. But no longer. In the tapes, Koresh also relayed a comment made by an FBI agent to a Davidian who left the compound. “You give me the heebie-jeebies,” said the government goon to the Davidian. “I hope you fry.”

Koresh also said: “you brought a bunch of guys out here and you killed some of my children. We told you we wanted to talk.”

After the deaths of the Branch Davidians, Janet Reno said there would be no recriminations (investigations) into who did what to whom. The only hearings would be on how to do better next time. But after this tape cam out, she ordered an investigation as to why they were “leaked.”

If there were ever proof of a coverup, this is it. The government has quietly dropped its claim that the Davidians killed themselves, the line they insisted upon in the early days. They are still not forthcoming on why they were after Koresh in the first place.

I continue to believe the real purpose was to demonstrate the government’s power to go after gun owners and religious dissenters.

The original English settlers of this country came here with a religious goal in mind. They wanted a society that reflected their understanding of Christian morality.

Some of the Founders of the nation had views influenced by the Enlightenment and others were explicitly Deistic. But on the whole their worldview was not far removed from the form of Christianity preached and practiced by the early settlers. The result was a society, culture, and political order that reflected a Christian understanding of family, property, and ethics.

Somewhere between then and now, this was marginalized and repudiated. The federal government even feels itself justified in causing the deaths of 80 people who separated themselves so they could freely exercise their faith, just as the original settlers did.

Bill Clinton can pray at the graves of dead Kennedys, and Hillary can urge us to adopt a new secular spiritualism in the form of a “politics of meaning,” but public high schools can no longer have clergy to pray at graduation, just condoms in the classroom. In short, government and its apologists are the only entities entitled to free exercise of religion.

The rules that govern the free exercise of religion in this country are confused and contradictory. But people who hold to old-fashioned Christian values know that one thing comes through: they can no longer expect to have the expression of their religious faith culturally or legally protected.

What happened at Waco was a human rights violation as serious as any that occurred in the waning days of the Soviet Union. In fact, if anything such as this had occurred under Brezhnev, the U.S. government and human rights activists would have declared it as further evidence of Russia’s evil empire.

Already the memory of the martyrs at Waco is leaving our national conscience, thanks to the government and its kept press.

Lesser crimes in the past have led to the overthrow of whole governments, on the grounds that any government so wicked as to cause the mass death of innocents simply because they challenged state power cannot claim to be legitimate representatives of the people.

In the case of the United States, it should at least serve as a catalyst for drastically reducing the power of the federal government in our lives. For this is the government that has set fire to the Constitution just as surely as it burned the homes in Waco.

Randy Weaver

An atrocity that preceded Waco involved Randy Weaver, the Idaho political dissident whose wife and son were murdered by FBI snipers. The government lies surrounding this event are still coming out in the open. Under oath, the FBI admitted to tampering with the evidence to suppress the truth.

Here again the crime was a concocted infraction of the gun laws, a parking-ticket like offense. But the real concern was that some Americans had religious and racial beliefs that were politically incorrect.

David Bond, an Idaho columnist, said it all: “What would happen if some guys in camouflage came into your yard and lured your dog and your children outside, then shot them in the back,” then held a press conference, then “drew a bead on your spouse and blew her head off, all the while telling the media that you’re a dangerous, bigoted religious kook?”

The Unmentionable Cause of Breast Cancer

The tragedy of breast cancer is rightfully getting more

(page missing)

Clinton’s Deficit Cutting

Buried deep in the budget bill working its way through Congress is the sentence: “Increase the statutory limit on the public debt to $4.9 trillion to comply with reconciliation instructions.” Congress, at Clinton’s request, recently raised the debt limit by $250 billion, and this buried sentence raises it again by $600 billion for the coming fiscal year. In other words, $600 billion is what Clinton expects his “lowered deficit” to be! And usually these predictions are way too low. Note: the real deficit (the increase in the national debt) is always much larger than the official deficit reported int he press, thanks to various off-budget shenanigans that I fought when I was in Congress.

Gergen’s Connections

Before he could become President Clinton’s fix-it man at the White House, former Reagan spokesman David Gergen had to “resign” from some of his organizations. In case you had any doubts about the Gerg, they included the Council on Foreign Relations, the Trilateral Commission, the Bohemian Grove, the Aspen Institute, and the National Endowment for Democracy.

Gergen was editor and then columnist for U.S. News & World Report. Why isn’t being an Establishment shill considered a compromise of journalistic integrity? Or does no one pretend that such a thing exists any longer?

Achtenberg Update

Thanks to Clinton and the Senate, we now have a far-left normal-hating lesbian activist heading the anti-discrimination bureau within HUD. Her most vociferous opponent was Jesse Helms, bless him. A few days after her confirmation, in an interview with the Jewish Bulletin of Northern California, she called Helms’s opposition to her “anti-Semitic” because he called her “pushy.”

Hillary’s Marxism

Congressman Dick Armey (R-Tex.) is one of the better guys on Capitol Hill, but he found himself in hot water when he publicly stated that Hillary has Marxist friends. He then retracted the statement and apologized. But if he had chosen to do so, he could easily have defended this position. She is surrounded by Marxists, and has been since her student days.

Like all Marxists, she is also duplicitous. She can stand before the AMA and neutralize their opposition to her socialized medicine by saying exactly what the medical profession wanted to hear. (Say, I wonder what the AMA’s IQ is?)

By the way, anyone who wants to understand exactly how we got ourselves into this medical mess should read a small book by Terree Wasley called What Has Government Done to Our Health Care, a play on Murray N. Rothbard’s famous book on money. It is published by the Cato Institute in Washington, D.C.

Ethics in Government

After it turned out that taxpayers were paying for Stanford president Donald Kennedy’s yacht and other luxuries, the Department of Health and Human Services asked 261 colleges and universities to examine their books for similar expenses wrongly billed to Uncle Sam. The biggest offender, the University of Wisconsin at Madison, had $10.5 million in illegal billings. The charges were run up when Donna Shalala was the campus’ Chief Executive Officer. She illegally charged $58,000 for maids, flowers, and other luxuries. Kennedy was fired as Stanford’s president. Shalala is now secretary of Health and Human Services.

Just What We Need

The Clinton administration is determined to broaden the definition of “standing” with regards to the court. With a broader definition it will become easier for individuals and environmental groups to sue companies who they believe are violating federal environmental standards. This will not only play havoc with the court system, but will put another money wrench into the business of doing business.

Clinton will use this as a criterion for appointing federal judges and he is going to have ample opportunity to do that over the next three years. Also, the liberal Congress, at Clinton and Gore’s urging is passing environmental statutes that will encourage more lawsuits. Both the Clean Water Act and the Resource Conservation and Recovery Act that are now going through the Congress are going to broaden the power of the U.S. government and enhance the ability of environmental groups to file harassing lawsuits. It will be a boon to the attorneys, as usual, and will further undermine the integrity of our economic system.

Lost Dreams

For two decades Sweden has been held up as the ideal socialist state. The Swedes eventually reached a point

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Ron Paul Newsletters / Ron Paul Survival Report March 1990

A transcript of the Ron Paul Survival Report of March 1990. Scan of this report is on postimage:

mar 1990 1 mar 1990 2 mar 1990 3

The report was taken from the blog, @RP_Newsletter, “March 1990: The Ron Paul Political Report”.

AIDS as a Communicable Disease

The Center for Disease Control and other organs of the U.S. government have long held that AIDS was transmittable only through sexual relations, needle-sharing, and blood-to-blood contact. Skeptics like surgeon Lorraine Day of San Francisco General Hospital, on the other hand, have held that “aerosol transmission” was also possible. That is, that AIDS could be transmitted by sneeze, breath, etc. through the air.

After long suppression, we now find out that a Florida dentist, who kept seeing patients after he knew he had AIDS, transmitted it to 22-year-old Kimberly Bergalis, probably by breathing in her mouth during a tooth extraction. We know the dentist–and nothing else–was responsible, because of a DNA analysis of the AIDS virus in his blood and hers.

It has received virtually no publicity, however, that two additional patients of this evil dentist have also developed AIDS through the same route, and there may be others on the way.

AIDS may be the first “politically correct” disease, but when are we going to wake up? Patients have the right to know if their doctors are AIDS carriers, and doctors have the right to know the same about their patients. Am i the only one who thinks that it is insane, on both sides, for this vital medical information to be legally hidden?

Palestinian Rights?

In the case of Taher Shriteh, we get a glimpse of how even well-known Palestinians are treated by Israel. Shriteh, a reporter for Reuters and other news organizations, was arrested and held without charges for three weeks. Through media pressure, he was granted a bail hearing, which the New York Times described as “a rare glimpse” into Israel’s military “justice” system.

Shriteh supposed crime was reporting on the contents of Infitada pamphlets, but the Israeli press does the same. In fact, the military felt he should be a spy for their occupation forces. He refused, and so has been tortured, held in a cell 60″ by 30″, in which he cannot stand, and denied food and bathroom facilities. We hope, said the prosecutor, that “very difficult conditions in prison” will make him “tell us more things.”

During the trial, which was conducted in Hebrew without translation for Shriteh, the stenographer stopped taking notes when the defense spoke. The judge refused bail and agreed to hold Shriteh for 60 days longer without charges. He agreed with the prosecutor that “continuing the investigation” is more important than “the freedom of the individual.”

Besides, Taher Shriteh is obviously a dangerous man. He was found to be in possession of “an unregistered fax machine,” which

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Ron Paul Newsletters / Ron Paul Survival Report December 1991

A transcript of the Ron Paul Survival Report of December 1991. Scan of this report is on postimage:

dec 1991

The report was taken from the blog, @RP_Newsletter, “December 1991: The Ron Paul Political Report”.

Mr. Johnson’s Magic

I shouldn’t admit it, but I had never heard of Magic Johnson before he announced his HIV infection. Thus, I had no emotional attachment to Magic, and I do not understand why his view of “safe sex” deserves the same respect as his basketball ability.

The subject of promiscuous sex is still undiscussible, even though that is what needs to be opposed. All the government commissions and “education” will not stop the virus’s spread unless we break this taboo.

The National Commission on AIDS has issued a report with 30 separate recommendations. Not one mentioned the necessity of stopping the sexual practices that lead to AIDS. At one point in our history, diseases like syphilis were considered socially negative. Thanks to lobbying efforts, it is Politically Incorrect to place AIDS in the same category. It is nearly impossible to find government officials or media people who will point out the importance of personal responsibility.

People say government should do more to stem AIDS. Actually, it should do less and thereby help more. FDA regulations prevent potential cures from being developed and used. Sick people and their doctors should decide about what drugs to try, not bureaucrats. Moreover, insurance companies should be able to request HIV testing as a condition of extending coverage, but in California, this is illegal, and the battle is on to extend this rule to other states. Just what we need–a government intervention to make the insurance industry even shakier.

Nor will we see improvement in black family structures so long as people like Wilt Chamberlain (who claims to have slept with more than 20,000 women) and Magic Johnson (who says he was hyper-promiscuous) are heroes. What an outrage that even President Bush declared Magic Johnson “a hero.”

Johnson may be a sports star. but he is dying because he violated moral laws. His campaign to make young people use condoms–which fail almost 14% of the time in heterosexual

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Ron Paul Newsletters / Ron Paul Survival Report June 1991

A transcript of the June 1991 Ron Paul Survival Report. A scan of this part of the newsletter is on scribd: “Ron Paul Newsletter June 1991”.

Tax Guerilla Warfare

Recently, nine pipe bombs were launched at a government building. No, not in Northern Ireland or the Middle East, but in Fresno, California. The target was the Internal Revenue Service Center.

This is not the right approach, of course. Sometimes I dream about a giant electromagnet that would not damage people or property, but simply erase all computer records when passed near federal buildings.

* * * * *

We’ve all heard of the Type A personality. Well now, Professor Frank Farley of the Psychology Department at the University of Wisconsin claims that there is a Type T personality too. This personality, he says, delights in “cheating” on his taxes. He is a thrill seeker and risk taker. Such people, claims Farley, can engage in the most negative or positive behavior.

His study shows that when there is guaranteed anonymity, Type Ts will admit they cheated on their taxes. They are usually energetic, self-confident, and independent sorts. The T personalities enjoy the thrill of tax cheating because, he claims, it’s easy, risky, and “profitable.” Farley hypothesizes that there may be genetic reasons for Type T behavior.

Farley says: “We need to learn more about the psychology of tax cheaters–their motives and habits–before we can fully understand this socially costly behavior.”

In other words, give him more money for another study. I’m sure we can expect a Type T office soon at IRS headquarters.

(missing pages)

to electric shock, burning with cigarettes and acids, and threatened by sexual assault and execution. A Baker aide said: “It’s a real problem and they are still trying to figure out how to deal with it.” But Bush has defended the Kuwaiti treatment of alleged collaborators, with one man getting 15 years in prison for wearing a Saddam T-shirt in the privacy of his own home, a shirt he had had for years.

Note: we have also learned that our weapons only worked about 33% of the time against a worthless enemy. What else haven’t we been told?

Animals Take Over the D.C. Zoo

The riots that broke out in the Adams Morgan and Mount Pleasant areas of Washington, D.C., receive global attention. And mot papers portrayed the rioters and looters as they are: hoodlums. In Washington proper, however, things were different. The only possible explanation allowed was that the Hispanics who started the riots, and the blacks who did the looting, were “ignored” and therefore justified. For example, neo-conservative black commentator William Raspberry blamed the violence on “accumulated grievances” like “rough evictions, callous officials, exploitative employers, uncaring teachers.” The rioting youth are “voiceless,” but not–unfortunately–fistless.

D.C. Mayor Sharon Pratt Dixon promised jobs for all unemployed Hispanics, either in government-financed rackets or in the government itself. The blacks screamed that they should be offered the same, and Dixon complied.

How did the three days of rioting, looting, and burning begin? A female cop shot a Hispanic man in the chest after he tried to stab her. But that was just an excuse for the massive criminality that followed. Buses and cars were torched, hundreds of windows were broken, and dozens of shops were looted.

But because of D.C. government orders, for the first evening, the police did virtually nothing to stop the destruction. A black police captain even gave interviews spouting liberal psychobabble about “frustrated” youths and excusing their behavior. It wasn’t until late in the evening that the cops could bring out tear gas and make arrests. Black cops even threatened to arrest a Korean shop owner who wanted to use his gun to defend his storm from looting, which apparently now represents a sort of instantaneous welfare.

In Washington, these neighborhoods are widely heralded as models of racial and ethnic integration and love. That was always nonsense, of course. This is only the first skirmish in the race war of the 1990s.

King George and Foreign Aid

Last month, the Bush administration submitted an outrageous request to Congress: that the president be able to take full control over the foreign aid budget, without any congressional “interference,” for the sake of the New World Order!

I don’t believe in foreign aid, and Congress is notorious for doling out money to parochial interests, especially Israel. But that doesn’t mean that the president should be dictator.

Challenge to Liberty

Everyone expresses surprise and shock when an unwed mother tosses her newborn baby into the dumpster to die. If she is caught, the authorities prosecute her for murder. But since an entire generation has been taught that pre-born life has no value, is it any wonder that newborns don’t qualify for much more?

We condemn murder; why is not the killing of a human fetus also an act of aggression? My new book, Challenge to Liberty: Coming to Grips With the Abortion Issue is written out of my experience as a lawmaker and a physician. If you’d like a copy, sen $10 to my Houston address, or call 713-333-4888.

Curious George

In all publicity about President Bush’s thyroid condition, no one has mentioned the possible mental effects. Talk about media control! As a physician, I knew about them. Others do too.

I pulled down the standard Textbook of Endocrinology from my shelves and read–remembering the president’s frenetic conduct in Kennebunkport last summer and all during the war–about “mental and physical ‘jitteriness.’ The patient’s thoughts flash rapidly” and he is “in more or less constant motion.”

“There are many unrestrained emotional swings. There may be unjustified outbursts of laughter, loquacity, euphoria, and great exuberance.”

“Psychasthenia, neurasthenia, and ‘nervous breakdown’ are not uncommon. Agitation, delirium, and other forms of toxic psychoses develop. Manic depressive states, schizophrenia, and paranoid reaction are observed” and “severe thyroid storm” has caused “degenerative changes in the brain.”

Time for Scientologists

Last month, Time magazine ran a hatchet-job cover story on the Church of Scientology. I am not a Scientologist, but I was outraged.

The only good thing about the cover story was that it showed–to the careful reader–that the Scientologists have been targeted by the IRS for more than 30 years, especially because they are the only organization ever to plant agents within the IRS! As a result, an IRS memo called for “the ultimate disintegration” of the church.

The Scientologists are also hated, said Time, because of their “notorious jihads against individual agents.” They don’t know that IRS agents are supposed to be immune no matter how outrageous their actions.

Any organization hated by the IRS and the Trilateralist Time magazine has got to have something going for it!

Politically Correct?

There are three concepts that should determine our thinking about the new authoritarianism (political correctness) sweeping our campuses and society at large:

  1. Free speech: all speech in a free society should be permitted, especially if the opinions are controversial. Speech that is slanderous or libelous is best dealt with in a civil court, but neither is an issue in political correctness.
  2. Private rules: the private university, in a free society can make its own rules by voluntary contracts with its students. Rules and regulations designed by the college and clearly presented to students before their entrance can be used to shape behavior. We are free to disagree with the rules and motivations, of course.

    State-run universities muddy the water then they define rules and regulations, but where doubt exists, maximum freedom of expression must be permitted.

  3. Good taste: moral and ethical standards are a personal matter. Much of the talk on political correctness is from authoritarians who would like to silence “rude” individuals, rude being defined as unfashionable ideas.

More Nonsense From Gingrich

On national television recently, Congressman Newt Gingrich debated a liberal on government housing. “If this $5 billion government program worked and helped the poor, would you support it?” he was asked. Gingrich answered: “Of course.” In other words, if theft “works”, great.

Of course, even by their own standards, the welfare state is a failure. And no one thought to ask a much better question: if

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Matt Stoller Writes Wrongly Of Many Things

(since initially posting this, I have made a few style edits and added some text addressing the Federal Reserve, sourced from William Greider’s Secrets of the Temple

An analysis of Matt Stoller’s “Why Ron Paul Challenges Liberals”. I will point out that Mr. Stoller’s core thesis, “that the anger [Paul] inspires comes not from his positions, but from the tensions that modern American liberals bear within their own worldview” is very obviously flawed. The anger that Paul inspires in progressives can be directly linked to works – the newsletters which deeply violate progressive norms and the ideas espoused in Freedom Under Siege.

Of the newsletter articles, which include those that engage in racial slurs about the laziness of black people, talk about killing a black man and getting away with it, encourage paranoia over a race war, encourage nativism about the descent of the white race, encourage nativism over immigrants with AIDS, advocate the segregation of those with AIDS, Paul, either, at best, simply profited from but did not write them, or, at worst, was directly involved in writing (a paragraph of authorial marks linking Paul to the newsletters is here, a mention of an obscure word used both by Paul in Freedom Under Siege and his newsletter is here). This, in addition to what is stated in Freedom Under Siege, a book written by him, advocating the end of sexual harassment protection, the end of legal protection of those with HIV, AIDS, or other disease from being terminated on the basis of their illness, the end of civil rights legislation in general. All this is in opposition with essential progressive ideals, not a convenient re-interpretation or over-generalization of progressive ideals, but the very core of progressive ideals regarding the dignity and rights of a fellow citizen. It can be taken for granted, then, that the anger felt towards someone who is in such opposition to their ideals may well be over the ideals themselves, whatever the other traits of the opponent.

If individual A is indicted and convicted of deliberate murder, we might state that wealth, poverty, or political inconvenience play a part in the conviction if the evidence is non-existent or spare; on the other hand, if the evidence is strong, untampered, with eyewitnesses, then it can be stated that the conviction is sound, lies with the crime at hand, and whatever the other traits of the individual, the conviction lies with the crime itself, with the individual’s traits irrelevant. Mr. Stoller, showing either arrogance or an absence of intellectual rigor, concedes the crime, but somehow insists that the indictment and conviction takes place because of individual A’s traits.

I will go through Mr. Stoller’s piece in some depth, use well-known, mainstream, and reputable sources for my points. I will leave any commentary to the end, as I do not wish the analysis to be tainted with a pejorative tone.

The essay is structured around an examination of three presidents, Lincoln, Wilson, and FDR, their intertwined use of centralization of financial power, enlarged state power, and war-making.

Mr. Stoller:

What connects all three of these Presidents is one thing – big ass wars, and specifically, war financing.

American empire precedes the federal reserve, and war financing took place outside these presidents. The Revolutionary War involved huge debts and the payment of soldiers in scrip, due to the lack of hard currency. A list of those principally culpable for the formation of American empire would not contain these three.

The major elements of the foundation of american empire would include the overthrow and seizure of the Hawaii kingdom by William McKinley for the convenience of the island’s wealthy planter class and white minority; the Spanish-American War, again under McKinley, which gave the US virtual rule over Cuba through the Platt amendment, to the great benefit of sugar and coffee plantation owners, to the great adversity of their laborers; the acquisition of the Phillipines for strategic and commercial advantage. The case for seizure of the Phillipines was opposed on the basis that it was an imperialist power-grab; it was argued for on the grounds that Filipinos were too racially inferior to handle their own sovereignty. These ideas of the inherent inferiority of certain racial groups show up, of course, in Ron Paul’s publications.

Under another republican, Theodore Roosevelt, the Panama independence movement was backed through funding and gunboats. After, Roosevelt formulates his doctrine that gives the United States the right to intercede in any part of the hemisphere it sees fit. Nations in the hemisphere must show “reasonable efficiency and decency in social and political matters, if it keeps order and pays its obligations”, or they may face intervention. This happens under Taft, another republican, in Nicaragua, where the reformist president Jose Santos Zelaya was overthrown for the benefit of american mining interests. A similar coup took place under Honduras, again under Taft, again under the basis of the Roosevelt doctrine, this time for wealthy american landowners. I do not see Taft and Roosevelt in Stoller’s list of miscreants; Paul, in his newsletter, was disgusted at the return of the Panama Canal to its territory, blaming, as usual, the Trilateral Commission and David Rockefeller.

I make these points without citation because they are well-known; I consulted Stephen Kinzer’s Overthrow when writing this for the part on the foundation of american empire, and Ron Chernow’s Alexander Hamilton for the few sentences on the Revolutionary War.

Moving on,

If you think today’s deficits are bad, well, Abraham Lincoln financed the Civil War pretty much entirely by money printing and debt creation, taking America off the gold standard.

He did not take America off the gold standard; paper money was issued, but gold coins remained in circulation, and gold was still used to pay interest on bonds and tariffs. You cannot take a nation off the gold standard, if gold and gold currency is still being used for payment. A table showing the various currencies in circulation – gold coin, gold certificate, paper currency – can be found in A Monetary History of the United States by Milton Friedman and Anna Jacobson Schwartz, page 43.

The argument made at the time was that paper currency was already in existence alongside metallic currency. From Battle Cry Of Freedom by James McPherson:

“Every intelligent man knows that coined money is not the currency of the country,” said Republican Representative Samuel Hooper of Massachusetts. State banknotes—many of them depreciated and irredeemable — were the principal medium of exchange. The issue before Congress was whether the notes of a sovereign government had “as much virtue…as the notes of banks which have suspended specie payments.”

Lincoln did not take such action, unilaterally, but with the support of business, banks, and a majority vote from Congress.

Continuing with Mr. Stoller:

The dollar then became the national currency, and Lincoln didn’t even back those dollars by gold (and gold is written into the Constitution).

Gold is not written into the constitution. The coinage of money is written into the constitution. The argument that currency must be metallic derives from a literal reading of this federal power:

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

The counterargument is that paper money, as stated by representative Hooper, in the previous quote, was already in use. Paper scrip had been used in payment during the revolutionary war. The insistence that “coin” must imply gold or silver is necessary to make the argument against paper currency, since any metallic currency, without rarer metals such as gold and silver, might be as plentiful as one of paper.

This financing of the Civil War was upheld in a series of cases over the Legal Tender Act of 1862.

I’m not sure what is meant by “upheld”, since the first of the cases over the Legal Tender Act, Hepburn v. Griswold, was heard in 1870, years after the war was over.

Prior to Lincoln, it was these United States. Afterwards, it was the United States.

No, prior to Lincoln it was the United States. After, it was the United States. The constitutional preamble:

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

What changes is that prior to the Civil War, there is the implication that the United States are. From Christopher Hitchens’ Thomas Jefferson: Author of America, following the Louisiana Purchase:

When the treaty was signed, [diplomat and Jefferson friend] Robert Livingston probably spoke for a majority in saying, “From this day, the United States take their place among the powers of first rank.” (Pause to note the locution: it was not until after Gettysburg that Americans began to say “the United States is” rather than “the United States are.”)

The essay then moves on to Woodrow Wilson. I would like to take the time to point out a sentence in this section, not for its factual falsehood, but strange, sloppy thinking:

Like Lincoln, [Wilson] set up a tremendous war financing vehicle to centralize capital flows and therefore, political authority.

The sentence implies, perhaps inadvertently, a Confederate reading of Lincoln. War financing was set up in order to centralize capital flows and political authority. War financing is not set up for war itself, in this case, Confederate insurrection (or “insurrection”, in quotation marks, as Ron Paul writes in Freedom Under Siege), but for the purpose of centralizing capital flows and political authority. War is waged, not out of necessity, but for the selfish purpose that the president be able to make himself tyrant. That’s an extraordinary claim, and I hope that sentence is not making it.

There is also this sentence:

In many ways, Wilson set up the rudiments of America’s police state, and did so arguably to help a transatlantic Anglo-American banking elite.

It makes a claim that is extraordinarily large and dangerous, yet is entirely vague and contains no facts. It may or may not be refutable, since it only makes a claim without factual citation. It reminds me of nothing so much as the sentence, “The Trilateral Commission is no longer known only by those who are knowledgeable about international conspiracies, but is routinely mentioned in the daily news. Evidence of its influence on the Republican and Democratic administrations is all about us”, from the Ron Paul Freedom Report 1978.

Back to Mr. Stoller, who begins his critique of Wilson with the president’s establishment of the Federal Reserve:

On to Woodrow Wilson. Wilson signed the highly controversial Federal Reserve Act in 1913; originally, the Federal Reserve system was supposed to discount commercial and agricultural paper. Government bonds were not really considered part of the system’s mandate. But what happened the next year? Yes, World War I.

This link between the purchase of government bonds being driven by a war funding decision is, again, wrong. The initial decision to buy bonds came not from the Reserve, but from the Reserve Banks, and was taken not for the purpose of funding or regulation, but because government paper was a sound place for keeping funds. From the sane, skeptical, but non-conspiratorial (despite the title) look at the Federal Reserve, William Greider’s Secrets Of The Temple: How The Federal Reserve Runs The Country:

The twelve Reserve Banks formed their alliance against Washington around an issue that, at the time, seemed a peripheral question – the buying and selling of government securities. The original operations of the Federal Reserve did not use the open-market purchases of U.S. securities as the means to create new money or extinguish it. Money was created entirely through the Discount windows at the twelve Reserve Banks. Instead of buying or selling government notes and bonds, the Fed took in “real bills” of trade – the short-term debt notes that banks took when they lent to business and agriculture. When these notes were eventually paid off at the Fed, the money would automatically cease to exist. Creating money for real commercial transactions, it was assumed, would make the money supply self-regulating, growing and contracting always in step with the ebb and flow of private commerce and credit.

When individual Reserve Banks began buying government securities for their separate portfolios, it was not to regulate the money supply but to increase their own earnings. Treasury paper was a safe place to park idle funds and provided a modest return that would help pay for the banks’ operations. Most economists, inside and outside the Fed, did not grasp the larger implications – these random transactions were themselves expanding or shrinking the money in circulation. If Atlanta or Philadelphia bought $1 million in bonds, it was pumping high-powered money into the banking system – $1 million that would be multiplied by bank lending. If it sold bonds, the reverse occurred.

The wiser heads, including Benjamin Strong in New York, rather quickly recognized the connection. When Reserve Banks made open-market transactions, interest rates rose or fell, accordingly, in financial markets. On some occasions, there was plain confusion when one Reserve Bank would be buying bonds while another Reserve Bank was selling.

Strong persuaded the other Reserve Bank officials that the twelve Reserve Banks, at the very least, must coordinate their actions, a proposal that became the means for organizing the regional banks as a rival power center, independent of the Federal Reserve Board in Washington. The New York Fed, it was agreed, would handle all sales and purchases for the others managed in a way that did not disrupt markets. The twelve Reserve Banks formed their own Open Market Investment Committee to decide things. The Federal Reserve Board approved, apparently unaware that it was ceding control of a powerful monetary lever.

It should be emphasized that Strong’s action was not part of some conspiratorial attempt to go off the currency. Strong does not want to go off the gold standard, and fears this possibility.

Greider:

In 1913, Strong wrote to his friend Paul Warburg warning that if Federal Reserve Notes were made an obligation of the U.S government, they would inevitably constitute “greenbacks,” the fiat money that the Populists had sought. “If the United States government embarks once more upon the expedient or experiment of issuing fiat paper, although in this case supported by bank assets and percentage in gold reserve. the day will come when we will deeply regret it…”

Mr. Stoller writes of government bonds not being part of the original mandate; I am uncertain of where he gets this idea. The original mandate was extraordinarily vague, and certainly allowed for the purchase of government paper. Again, Greider:

The original instructions that Congress gave to the temple were vague (and not much improved over the years). The 1913 act said merely that the Reserve Banks should set Discount loan rates “with a view of accomodating commerce and business.” Credit should be provided to member banks with due regard to “the maintenance of sound credit conditions, and the accommodation of commerce, industry, and agriculture.”

From A Monetary History of the United States (my bolds):

Receipt of gold, rediscounting of “eligible” paper, discounting of foreign trade acceptances, and open market purchases of government securities, bankers’ acceptances, and bills of exchange were the means initially provided for creating Federal Reserve money, and the converse for retiring it.

Back to Mr. Stoller, and his discussion of the internal security measures of the Wilson administration.

Wilson also implemented a wide variety of highly repressive authoritarian measures, including the Palmer Raids, the Espionage Act of 1917, and the use of modern PR techniques by government agencies.

Here, one can argue that libertarians are wary of centralized financing and political authority for liberal reasons – the ACLU was founded after the Palmer raids.

The Palmer raids, initiated under Attorney General Mitchell Palmer, along with the Espionage Act and the Sedition Act, were almost entirely an attempt to destroy american organized labor, for the ostensible reason that they were part of a larger communist insurgency. The Palmer raids had nothing to do with centralized financing or authority; labor had been persecuted before and after the creation of the Federal Reserve.

The major target of the Espionage Act was the International Workers of the World group; it was government harassment done in concert with the vigilante group the American Protective League (APL), a private business supported organization, which placed operatives in bank and industry, who would root out any subversives, in this case, members of organized labor; nor would he have issue with the practices of private detectives and thugs in the pay of such business. It is a simple and obvious note that Paul would have no difficulty with the private persecution of employees, or the more loathsome business practices of the era which led to the formation of unions, that this is entirely consistent with his admitted writings on private property and contracts.

On to the Palmer raids: Mr. Stoller appears to give Wilson sole responsibility for the authority and supervision of these raids, which I find somewhat strange. The first Palmer raid takes place on November 7, 1919, not co-incidentally, an anniversary of the Russian revolution. On September 25, a month prior, Wilson has already suffered the stroke that destroys him entirely, making him president in name only. The Palmer raids were conducted entirely by Palmer himself, without any presidential oversight whatsoever.

Opposition to the Palmer raids came from within the Wilson government itself, with the Secretary of Labor, William Wilson, former coal miner, who now witnessed his fellow workingmen persecuted. Palmer made these raids in the fervent hope that they would help elect him president. His support at the democratic convention was derived from his strikebreaking and abandonment of anti-trust prosecutions, actions, again, which Ron Paul would heartily support. The opposition to Palmer lay not with any libertarian business owners, but entirely, again, with organized labor, who helped defeat him at this same convention.

Mr. Stoller takes what was fundamentally an anti-labour political action, of public and private powers acting in unison to deprive workers of their rights, not unkin to the anti-labour movement now, and somehow transforms it into something to do with the Federal Reserve.

The previous is sourced from the chapters “The Missing Years”, “‘Palmer – Do Not Let This Country See Red!'”, “The Soviet Ark”, “The Facts Are a Matter of Record” from J. Edgar Hoover: The Man and The Secrets, by Curt Gentry.

Now, FDR:

And finally, we come to Franklin Delano Roosevelt. Roosevelt’s Fed is a bit more complex, because he did centralize monetary authority using wartime emergency powers, but he did so in peacetime. FDR abrogated gold clause contracts, seized the domestic supply of gold, and devalued the currency.

FDR did not use “wartime” emergency powers for this. The initial executive action immediately following his election, without congressional approval, was to make a de facto bank holiday official, a bank holiday that many banks, national and state had already taken. From Traitor to his Class by H.W. Brands:

As various governors watched banks in their states succumb to “runs”—uncontrolled withdrawal demands by depositors, which frequently ended with the failure of the banks—several pondered the drastic step of declaring “bank holidays,” that is, simply closing the banks to business. The idea, or hope, was that the panic would pass: that if depositors were temporarily prevented from withdrawing their funds, they would calm down and decide they really didn’t need the money. In fact most neither needed nor really wanted the money. Bank deposits earned interest; cash in a can in the garden or in a shoe box under the bed did not. If the depositors could have been sure their money was safe in the banks, nearly all of them would have been happy to leave it there. With this in mind, the governor of Louisiana declared a state bank holiday in early February. Michigan did the same at midmonth, followed by Maryland, Indiana, Arkansas, and Ohio. At the beginning of March twenty other states closed the doors of their banks. By inauguration day, the American banking system was nearly at a standstill.

Congress would give retroactive approval to this holiday, along with the power to open and close banks, embargo gold, and issue notes that would circulate as currency. Brands, again:

The law retroactively granted Roosevelt authority to close the banks and embargo gold, thereby removing any taint of unconstitutionality from Roosevelt’s executive action. Looking forward, the bank bill authorized him to reopen the banks when he saw fit, under the supervision of the comptroller of the currency, and to direct the Federal Reserve to issue notes that would circulate as money, regardless of the strictures of the gold standard, which remained technically in effect.

The second major executive action that Roosevelt asked for, and Congress granted, was unilateral ability to cut the budget. This was done to the detriment of the poor, as it was chiefly used to cut pensions and veterans’ benefits, which Congress very much wanted to cut, but were unable to do given the power of the constituency.

I have a very specific sense in mind of “wartime powers”. They are powers exercised by the executive, without approval of other branches, on the basis of military threat, whether used for military or non-military purposes. It does not include executive powers voted and approved by congress on the basis of a national emergency.

The abandonment of the gold standard is a combination of the powers granted by congress, and later congressional action.

Brands:

Deflation was an economywide problem, but because of their chronic indebtedness it hit farmers the hardest. Roosevelt had long commiserated with farmers, and even before the success of the bank rescue was assured, he turned to the farm question. There were two ways of dealing with low prices. One was to expand the money supply. This strategy was what the Populists and silver Democrats led by William Jennings Bryan had advocated in the 1890s with their call for remonetizing silver. They lost their fight in the election of 1896, and the country had officially embraced the gold standard—after decades of observing a de facto version—in 1900. Some silver-state Westerners still agitated for silver, but the first step in any systematic expansion of the money supply would be the abandonment of the gold standard.

Curtailing production would tend to raise farm prices, but not as fast or surely as increasing the money supply. Diehard populists like Oklahoma Democrat Elmer Thomas contended that every other effort would be wasted unless the president did something about money. Roosevelt’s farm bill passed the House in mere days and by an overwhelming margin—315 to 98. But Thomas stalled its progress in the Senate by proposing an amendment authorizing the president to expand the money supply by remonetizing silver, redefining the relationship between the dollar and gold, or reissuing the kind of fiat currency—“greenbacks”—that had circulated during and after the Civil War.

Roosevelt had known that the money question would come up, but he had hoped to keep it separate from the farm issue. The Thomas amendment made this impossible—as Thomas knew it would. The Oklahoma senator felt an obligation not merely to farmers but to the people of America generally. “No permanent relief is possible until the masses have buying power,” he declared. The way to give them buying power was to put money in their hands.

Elmer Thomas’s maneuver compelled Roosevelt to take a position on money sooner than he had intended. Roosevelt accepted the Thomas amendment, noting, however, that it only authorized the president to devalue the dollar. It did not require him to do so. “Purely discretionary” was how Roosevelt, speaking at a press conference, characterized his prospective power to expand the money supply. The Thomas amendment provided various methods of achieving inflation. “I do not have to use any of them,” Roosevelt said.

He wasn’t opposed in principle to inflation. On April 5, before the Thomas amendment came to a vote in the Senate, Roosevelt employed his new authority under the banking act to order private possessors of gold to surrender their yellow metal for currency. “The chief purpose of the order,” he explained, “is to restore to the country’s reserves gold held for hoarding and the withholding of which under existing conditions does not promote the public interest.”

The administration’s “monetary goal and objective” proved to be a managed currency, one freed of the constraints of gold. The gold order of April 5 was the first step; Roosevelt’s acceptance of the Thomas amendment two weeks later was a second. “Congratulate me. We are off the gold standard,” he told his economic advisers. Some of them sighed with relief; others spluttered with indignation.

Roosevelt explained that his acceptance of the Thomas amendment was tactical. “He said that the reason for the amendment was that unless something of this sort was done immediately, Congress would take the matter in its own hands and legislate mandatory law instead of permissive,” James Warburg, an adviser to [Secretary of the Treasury Will] Woodin, recalled.

Roosevelt may have overstated the hazard of a congressional diktat, but the result of the Thomas amendment, which passed the Senate in slightly revised form, and the House shortly thereafter, was to augment the president’s power over the money supply. As an indication of what he would do with the added power, he issued an executive order on April 20 forbidding the export of gold without license from the Treasury. More permanently than anything till now, Roosevelt’s embargo cut the dollar adrift from gold.

I have no doubt that Roosevelt’s actions, then and now, are controversial. To have a thesis, however, which argues about the intertwining of finance and military under democratic presidents, then to label temporary powers voted by congress to the executive in a financial emergency without any mention of war as “war-time” in order to make one’s case, strikes me as a little dishonest.

Back to Mr. Stoller:

[FDR] constrained banks with aggressive regulation and seizures of insolvent banks, saving depositors with the Reconstruction Finance Corporation. He also used the RFC to set up much of what we know today as the Federal government, including early versions of disaster relief, small business lending, massive bridge and railroad building, the FHA, Fannie Mae, and state and local aid.

The Reconstruction Finance Corporation was set up under Republican Herbert Hoover, with this very mandate, to provide funds for reconstruction and relief.

After this overview of the three presidents is the main part of Mr. Stoller’s thesis.

Modern liberalism is a mixture of two elements. One is a support of Federal power – what came out of the late 1930s, World War II, and the civil rights era where a social safety net and warfare were financed by Wall Street, the Federal Reserve and the RFC, and human rights were enforced by a Federal government, unions, and a cadre of corporate, journalistic and technocratic experts (and cheap oil made the whole system run.)

And two, it originates from the anti-war sentiment of the Vietnam era, with its distrust of centralized authority mobilizing national resources for what were perceived to be immoral priorities.

I wish to focus on one point: “a social safety net and warfare were financed by Wall Street, the Federal Reserve and the RFC”. It would seem that both a social safety net and warfare would be financed by a labourer’s taxes, that this is the nature, say, of social security, with a portion of one’s wages saved for later needs. It also formed a part of the opposition to war, including Viet Nam, beyond the awful objectives and wretched nature of war itself: that the wages from my labour could best be served in schools, medicine, and food for fellow citizens rather than killing those in a distant place. By making the labourer beholden for his benefits to Wall Street, Federal Reserve, and the RFC, Mr. Stoller removes all agency for the worker, making him entirely a dependent on these powers.

When you throw in the recent financial crisis, the corruption of big finance, the increasing militarization of society, Iraq and Afghanistan, and the collapse of the moral authority of the technocrats, you have a big problem. Liberalism doesn’t really exist much within the Democratic Party so much anymore, but it also has a profound challenge insofar as the rudiments of liberalism going back to the 1930s don’t work.

It would seem that if the social safety net, warfare, as well as (though Mr. Stoller strangely doesn’t mention this), tax breaks and subsidies for large corporations were all funded by the contributions of worker’s wages, then the worker is not beholden to finance, not beholden to the military, not beholden to any technocrat. But no: Mr. Stoller has removed this possibility. And because the labourer, according to Mr. Stoller, is beholden to these, he is unable to make his own critique of the existing morass. He must rely on a degenerate conspiracy minded racist who stands apart from all of them:

This is why Ron Paul can critique the Federal Reserve and American empire, and why liberals have essentially no answer to his ideas, arguing instead over Paul having character defects.

Again, as stated before, Mr. Stoller leaves out the simple fact of a worker’s wages freely earned, with his own sweat, a portion of which goes to taxes funding all these things, in order to remove an agency and participation that the worker has, not as supplicant, but as an engine of all this.

I will make no statements derived from this analysis, as I believe they would be a little too passionate, and a little too defamatory. That can be left for another time, until others, preferably with a stronger background than I in economics and history, can examine Mr. Stoller’s essay as fully, or more fully and in-depth, than I have, providing either confirmation or dissent of what is written here.

For the time being, I will only say this. Mr. Stoller’s essay been praised as “genuinely brilliant” by Mr. Glenn Greenwald, of Salon, in his piece, “Progressives and the Ron Paul Fallacies”. Given the flaws in Mr. Stoller’s work, Mr. Greenwald has either barely read this essay, his knowledge of the economic and political history of the United States is very limited, or his knowledge of the history of the United States is very different from mine. I am told by many that my blog is barely readable; should Mr. Greenwald ever decide to barely read it, and declare me an authentic genius, I would be grateful.

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The Ron Paul Newsletters / Ron Paul Paper Trail – Survival Report January 1994

(The following contains language that may well be considered offensive. This post is an attempt to make clear what was written in past Ron Paul newsletters. More information can be found here)

had monitored the Weavers for 18 months. Yet the y never told the FBI about this. Instead, they suggested that the FBI shoot anyone who carried a weapon outside the house.

That order led to the death of Vicki Weaver. The sniper who shot her, Lon Horiuchi, blew her head off. Horiuchi was trained to hit a quarter-inch target from 200 yards. Yet at the trial he testified that it was “accidental” and he was trying to hit someone else.

The Marshall’s Service also reported to the FBI that the Weavers attacked the government, killed an officer, and had the government “pinned down in a fire fight.” This too was a lie. The Service had told the FBI that Mrs. Weaver was a religious fanatic who intended to kill her children and then herself. But there was no evidence of any of it. In fact, she was a good Christian and a fine wife and mother.

Further, they did not mention that they had shot Weaver’s son in the back the day before the FBI arrived. The FBI did not find out about it until they discovered the boy’s body. The FBI now claims it thought he was shot by someone in the family.

Other troubling aspects of the case include entrapment. The reason the government was interested in the Weavers was because he sawed off a shotgun. But the BATF solicited Weaver to cut it a quarter-inch short and sell the guns to an undercover agent. The government paid Weaver $300 to commit the “crime” they later used to justify their siege.

A U.S. Marshal was shot only after Weaver’s son had been killed. A federal jury acquitted the Weavers for this. The Justice Department is reviewing the case under the auspices of the Office of Professional Responsibility. If the final report follows the tradition of its report on Waco, it will be a whitewash.

“Waco, the Big Lie” videotapes are available for $24.95, including shipping. Send your payment to 18333 Egret Bay, Suite 265, Houston, TX 77058, or phone 800-RON-PAUL.

The ADL Gets Off Scot Free

More than a year ago, the Anti-Defamation League office in San Francisco was caught illegally buying confidential police and other government records in pursuit of groups thought to be anti-Semitic. The uproar caused firings at the ADL, but in court, it got off easy.

The District Attorney in San Francisco agreed to drop the investigation. The Anti-Defamation League agreed to spend $75,000 in San Francisco “combating bigotry.” The ADL did not admit to any wrongdoing. But they promised not to obtain confidential information from any California state or local law enforcement officer in the future.

A woman who represented one of the organizations spied upon was not happy. “Not only is there no admission of guily,” she said “but the ADL are portrayed as good Samaritans waving the flag against bigotry.” Evidence indicated the ADL monitored such groups as the Davidians in Waco, and may have helped instigate the attack.

AIDS Dementia

If you heard a certain behavior of yours caused a deadly disease, wouldn’t you immediately cease and desist? Well, gays in San Francisco do not obey the dictates of good sense. They have stopped practicing “safe sex.” The rate of AIDS infection is on the increase again. From the gay point of view, the reasons seem quite sensible, as the New York Times explained.

First, these men don’t really see a reason to live past their fifties. They are not married, they have no children, and their lives are centered on new sexual partners. These conditions do not make one’s older years the happiest. Second, because sex is the center of their lives, they want it to be as pleasurable as possible, which means unprotected sex. Third, they enjoy the attention and pity that comes with being sick. Put it all together, and you’ve got another wave of AIDS infections, that you, dear taxpayer, will be asked to pay for.

The CFR

The Council on Foreign Relations, organized in 1921, started publishing its journal Foreign Affairs 70 years ago. Most Americans have never heard of the journal and quite possibly have never heard of the CFR. In the early years the CFR was very secretive and only the newsletter industry along with the John Birch Society ever mentioned it or tried to explain its program and power.

Times have changed. Ever since the 1980s when Ronald Reagan, who was once a critic of the CFR and the Trilateral Commission, hosted the Trilateral Commission in the White House, there has been much more openness and boldness on the part of both of these organizations.

jan 1994 1 jan 1994 2

A scan of this newsletter can be found at @RP_Newsletter, “January 1994: The Ron Paul Survival Report”.

On August 19th, 2014 the link to this report was changed from a defunct one at the New Republic to scans at the blog @RP_Newsletter.

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