| Casey Research
Interviews Congressman Ron Paul |
| By Doug
Casey |
| For international investment expert
Doug
Casey, there’s more than a recession on the horizon… he recommends
battening down now for the rough seas ahead... with some special information
about making sure your investments can weather the coming storms. |
|
| There are very few political figures for whom
I have any respect. One exception is Congressman Ron Paul (R-TX). Ron has
been a personal friend of mine for many years. I can assure you that he’s
a “stand up guy,” who has voted “no” more times in Congress not just more
than any other member, but more than the rest of that august body combined.
He’s often called “Dr. No.” |
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| The fact that he has managed to get reelected
numerous times -- in Texas, of all places -- in spite of his outspoken
stands against the so-called “War on Drugs,” the “War on Terror” and other
popular stupidities is one of the few things that make me think all is
not absolutely lost in America. |
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| How does he do it? Ron’s an almost archetypical
country doctor; he simply radiates honesty and sound principles. He’s about
the last person you’d expect to see in Congress. The voters may not agree
with everything Ron believes in, but they know they can trust him to do
what he says he’ll do: always vote for lower taxes, less regulation and,
in fact, against absolutely anything not specifically authorized in the
U.S. Constitution. |
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| His campaign for the U.S. presidency on the Republican
ticket – once laughed at by mainstream apparatchiks from both parties –
has generated a huge groundswell of national support. Recently, his campaign
broke the record for the most funds raised online in a single day. That,
in itself, raised a lot of eyebrows – and the money has since been put
into high-profile ad campaigns libertarian-minded candidates could previously
only dream of. |
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| Ron is famous for his principled rejection
of fiat currency, and advocacy of hard money – the gold standard. That’s
a matter of particular interest to us, with obvious investment implications.
We thought, therefore, we’d get an update from Ron, to see if his thinking
has changed any. |
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Ron Paul’s campaign isn’t
about the relatively trivial issue of who should govern, Tweedledee or
Tweedledum. It’s about what the nature of the government should
be -
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| The following interview is from the December 2007
edition of the International
Speculator, our flagship publication dedicated to uncovering highly
prospective opportunities in pretty much any market sector, but these days
mostly in junior precious metals exploration stocks – a sector that has
treated subscribers very, very well in recent years. |
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| And they should only continue to do well unless
Boobus americanus stands up on his hind legs and demands some radical changes,
at which point we’d happily sell the gold we own as a hedge against the
fiscal calamity that is now all but inevitable. Importantly, Ron Paul’s
campaign isn’t about the relatively trivial issue of who should govern,
Tweedledee or Tweedledum. It’s about what the nature of the government
should be – and how much and how fast we can cut it down. |
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| - - Doug Casey |
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"History shows that governments
tend to react to economic crises by increasing government control over
the free market" - - Ron Paul
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| Casey Research: Why would the typical American,
who gets far more from government than he or she pays, even consider voting
for Ron Paul? |
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| Ron Paul: Even those Americans who receive
a higher nominal amount in transfer payments than they pay in income taxes
suffer from Big Government. Their standard of living is eroded by inflation,
their wages are garnished by income and payroll taxes, their civil liberties
are under constant assault, and their economic prospects are limited because
of the drag the welfare-warfare state places on the economy. Furthermore,
unless we reverse course quickly, future generations will suffer a declining
standard of living and loss of liberty. Thus, I expect many Americans to
vote for me not only out of concern for their own well-being, but out of
concern for their children. |
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| CR: What is your outlook for the U.S. dollar,
absent any significant change in the current course of things? |
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| RP: Unless we return to a sensible monetary
policy and rein in government spending, I expect the value of the dollar
to continue to fall. |
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| CR: Do you think we could see currency
or capital controls being implemented? |
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| RP: History shows that governments tend
to react to economic crises by increasing government control over the free
market, so, yes, it is quite possible that the U.S. Government will respond
to a future economic downturn with currency and capital controls. |
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| CR: We have seen the other presidential
candidates perform all sorts of linguistic gymnastics when asked how they
would handle the looming fiscal problems of Social Security and Medicare.
While the solutions will obviously not be quick or easy, where would you
start? |
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| RP: I would transfer some of the money
saved by my cuts in foreign programs and unconstitutional domestic bureaucracies
into the entitlements programs to keep the promises to those relying on
the system. I would then work to transition to a market system, phasing
in an option for younger workers to opt out of Social Security and Medicare
taxes in return for agreeing to provide for their own retirement and health
care needs without participating in a government entitlement program. |
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| CR: Further on domestic issues, just what
do you think the role of the federal government should be? |
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| RP: Ideally, it should be limited to providing
protection from foreign threats, securing the borders and ensuring free
trade among the states. |
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| CR: By what % would you estimate that federal
government spending could be cut without causing any great hardship? Which
agencies would you cut first? |
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| RP: I don’t have an exact percentage, but
I am confident that if the welfare state were cut, along with a corresponding
reduction in taxes, private charities would quickly step up to help the
truly needy – and do so in a much more effective and compassionate way
than government bureaucracies. I would cut the Iraq war, foreign aid and
all foreign commitments immediately. Domestically, I would work to shut
down the Departments of Education, Energy, and Commerce. I would also work
to eliminate all forms of corporate welfare and business subsidies. |
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| CR: Any idea how much of the total federal
debt could be paid off if the government sold all the land, buildings,
equipment and other assets it doesn't need for activities authorized by
the Constitution? |
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| RP: I do not have an estimate on that,
but it is definitely something I would pursue. |
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| CR: There is much talk about the Chinese
deliberately keeping their currency cheap in order to undercut U.S. and
European manufacturers. And we are increasingly hearing discussions about
layering on more tariffs aimed at the Chinese. We assume you are anti-tariff,
so do you do anything at all about “unfair” competition or just let the
global marketplace sort things out over time? |
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| RP: The United States does not have the
authority to tell China, or any other country, what to do with their currencies.
The values of currencies should be set by the market. Instead of worrying
about the speck in China's eye, I would focus on the beam in our eye by
reducing the national debt, restoring a market in currency by repealing
the legal tender laws and ending the continued debasement of the American
currency. |
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| CR: There is much talk about the Chinese
deliberately keeping their currency cheap in order to undercut U.S. and
European manufacturers. And we are increasingly hearing discussions about
layering on more tariffs aimed at the Chinese. We assume you are anti-tariff,
so do you do anything at all about “unfair” competition or just let the
global marketplace sort things out over time? |
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| RP: The United States does not have the
authority to tell China, or any other country, what to do with their currencies.
The values of currencies should be set by the market. Instead of worrying
about the speck in China's eye, I would focus on the beam in our eye by
reducing the national debt, restoring a market in currency by repealing
the legal tender laws and ending the continued debasement of the American
currency. |
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| CR: Much of the politicking this campaign
season has certain religious overtones. Are you a believer in a strict
separation of church and state? |
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| RP: Yes. However, I believe state and local
communities have the right to adopt policies such as school prayer without
interference from the Federal Judiciary or any other branch of the federal
government. |
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