Ron Paul on Nullification and the Fed

I’ve been paying attention to what Congressman Dr. Ron Paul has to say for nearly two decades. In that time, I’ve never heard him exaggerate our circumstances. So, when he alerts us that he is anticipating a “big, big collapse” of our monetary system, it’s time to take heed. What does Paul Say we should…

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“Small Is Beautiful” Guy Hearts Fed

Here’s a reply I just wrote to an email asking me where a certain person got the idea that the economy was in recession 40% of the time in the nineteenth century.  I am calling the person X, because he’s about the most uncharitable (and uncomprehending) antagonist I’ve ever faced — yes, even a genial guy like me has antagonists — and I’m all done dealing with him.

“I’d tell you where he gets it from, but my answer would be too crude.  X is a real estate agent who knows as much about nineteenth-century economic history as any other real estate agent.  (I am not saying real estate agents are ignorant, you understand, but that they tend not to be experts in this highly specialized area.) Yes, there were recessions, but contemporaries correctly blamed them on excessive issue of bank credit, often pushed by federally chartered national banks.  Austrians oppose this kind of activity in the first place, so X proves nothing by citing these panics.  Rothbard shows in his book The Panic of 1819 (Columbia University Press, 1962) that many people decided, in the wake of that panic, that the best policy was 100% reserve banking in a completely private system.  We never got that.  That system, say many Austrians, is the only one that would put a stop to the boom-bust cycle.

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States to Congress: Print More Money

Writes Ryan W. McMaken The states (and the local governments) are facing crushing deficits and declines in tax revenues. Unlike the feds, the states can’t simply monetize debt by having the Fed purchase enormous amounts of new debt. But that doesn’t mean the states can’t ask Congress to run up some new debt for them.…

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Regional Fed Bank Presidents Blocking Transparency

State Representative Paul Opsommer (R-DeWitt) criticized regional Fed bank presidents for their testimony on Capitol Hill yesterday, saying their efforts to block inquiry into Wall Street bailout details continue to stymie needed financial reforms. “We continue to see strong bi-partisan efforts to audit the Fed at both the state and federal level that is being…

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Jefferson, the Fed, and the Tenth Amendment

In one of the many arguments Thomas Jefferson had with Alexander Hamilton in the first administration of the newly found republic, under President George Washington, Jefferson used these words to describe why Hamilton’s plan for a federal bank under private management was a bad and unconstitutional idea: “I consider the foundation of the Constitution as…

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