What Would Really Happen If Ron Paul Were To Be Elected President?
by Bill Sardi
Recently by Bill Sardi: Was Steve Jobs Really a DifficultPatient?
So what would really happen if Ron Paul were as elected President?
President Paul would immediately push for $1 trillion cut in federal spending (per year, not the $3 trillion that Democrats proposed over 10 years with half of that from increased taxes).
President Paul would have the authority as commander-and-chief towithdraw troops from overseas, within limits of treaty commitments which must be honored (US supplies defense for Saudi Arabia, many other nations). To the extent possible, the US would cease being the world’s policeman and plunderer of foreign economies (Iraq, Libya). The US would cease being a war economy. President Paul would also push to eradicate foreign aid which essentially is bribery, often to foreign despots who the US quietly supports because they hold a strong hand over their masses.
President Paul would have some empty chairs in his Cabinet – the Department of Commerce, Department of Education and other Cabinet positions would be eliminated. Civil service employees would be ushered into other government jobs.
President Paul would likely demand, using his bully-pulpit, a regular audit of the Federal Reserve (recall the FED pushed $13 trillion of short-term loans out the door in the world financial crisis without any oversight, which resulted in worldwide inflation and the unrest we now see in foreign countries – Egypt, Libya, etc – as a result of rising food prices.).
You probably don’t know that the Federal Reserve bank takes a 6% cut off the top of all interest it collects as middleman between the US Treasury Dept and local banks. (President John F Kennedy realized this, recognized it would result in huge federal debts in the future, which have now materialized, and cut the Federal Reserve entirely out of the equation in 1963 by directly issuing US Notes, not Federal Reserve currency, into the economy. Of course, shots fired in Dallas ceased that practice and all those US Notes were quietly withdrawn from circulation.) That cut for the central bankers would be eliminated in a Ron Paul Presidency.
President Paul would likely demand and personally oversee an audit of the gold at Ft. Knox. Wouldn’t you like to be there for that (live cameras please)? If the gold isn’t there, who absconded with it and where is it now? (Might not have to look far, it could be stashed in Federal Reserve bank vaults – recall, the Federal Reserve is not federal, it is a bunch of private banks who may have absconded with the nation’s gold supply).
With a public groundswell of support, President Paul would oversee theabolishment of the Internal Revenue Service, freeing Americans of the onerous and treacherous task of figuring out the taxes they owe (recall the Secretary of the Treasury couldn’t accurately figure out his own taxes). No more debtors prison for not filing tax forms properly (yep, some Americans are in prison for this). That would free-up about 6 billion man-hours and $250-300 billion of money now committed to tax preparation. Real money, not the fractionated loan money, would be returned to the economy.
There would be a re-adjustment period as the nation figures out how to rebuild employment without phony government jobs programs, but anticipate an eventual US renaissance. The US would be spared the fate of Greece which has 40% employment in the government sector, placing those jobs on the back of the remaining tax payers there.
Without an income tax the Federal Reserve would have no conduit to siphon money back out of the economy to limit inflation and it would have to cease its inflationary money printing practices. Mothers of young American children would be told that their struggles to see their kids get ahead in this country will not be futile as the Federal Reserve’s planned inflation policy would be put to a halt. If your kids can’t earn a better income than the rate of inflation (now 7-11%, government says it is only ~3%) they will surely be impoverished.
For example, if an American child was born in 1990 and her/her mother as sole bread winner was making $35,000 a year on the date of that child’s birth, that child would have to earn $60,758 today (2011) to equal his/her mother’s salary in 1990. Soccer moms should shout loudly for a Ron Paul Presidency. Your children have no future if one of the other pretenders is elected. Without currency reform, all other reforms become meaningless. The elites will continue to plunder and undermine the wealth that you create.
President Ron Paul would push for the federal government to get out of the real estate lending business. By Fannie Mae and Freddie Mac ensuring home loans, lenders generated loans based upon low teaser interest rates (subprime, ALT-A) and unverified incomes and then funneled these bad loans on up to these quasi-government agencies where the public took the losses (these losses are now on the accounting books of the Federal Reserve). In a Ron Paul Presidency, bad lenders would go out of business, not be given bailouts.
The Federal Reserve now holds over $1 trillion in bad loans on it accounting books – let the Federal Reserve get what it deserves – a giant loss as its banks go out of business due to insolvency, just punishment for allowing low interest rates to prevail and create a real estate bubble in the first place. Stop protecting bankers, start protecting your own wealth – vote for Ron Paul!
Without a government backstop to insure home loans, lenders would be more diligent in checking out lender qualifications and incomes. Thefalse demand for housing that the Federal government created would cease and home values would crash, for a short time. But that would be good news – now homes would become affordable.
It is said, if the Federal Government would get out of housing homes prices would tumble by 50%. While that is not good news for the asset-side of lenders accounting books, it is the only way to bring back the housing market in a short time. This is the mark-to-market value accounting that must be practiced. Interest rates on home mortgages would rise, but so would the interest on saved money – Americans would cease losing money on savings accounts (interest on saved money today is less than 1% while inflation is ~7-11%).
While the US economy is said to be the strongest in the world (~$14 trillion), the US is hiding the fact its Gross Domestic Product is actually in decline and that probably half of the GDP is comprised of financial gains from moving money around. An example is the stock market with 70% of its trades now comprised of high-speed millisecond trading. Financial gains are contrived and there is no real value created out of these phony transactions, nor is any employment created. The lending classes will have to face reality. Phony numbers would not likely be a part of a Ron Paul Presidency.
With a groundswell of public support, President Ron Paul would push for a currency that has limited stretchability by backing it with gold. No more rubber money. The fortunes of Americans would cease being eroded by money printing practices at the Federal Reserve. If you missed Ron Paul’s object lesson – he recently held up a pre-1964 silver dime (dimes today have no silver in them) and said it is worth ~$3.00 today, about the price of a gallon of gasoline. That means a gold-backed dollar could buy you a full tank of gas. Imagine that?
But inflationary policies have robbed American bank accounts of wealth. The thief of inflation that is robbing your money out the back door of your local bank would be handcuffed.
Ron Paul would also push for competing currencies (if this sounds foreign to you, we already have one – its called a VISA card, and don’t forget American Express Checks). Creators of currencies who have the most backing in the form of reserves would have the most desired currencies, those who don’t would have currencies of lesser value.
So what would happen worldwide with the announcement of a Ron Paul Presidency? Did you see what happened yesterday when the European Union band-aided its currency and debt problems for the time being. Markets soared with even a hint of sound money. Likewise, a Ron Paul Presidency should cause markets to soar just on the announcement of his Presidency. The International Monetary Fund has been begging the US to cut federal spending or devalue its currency by 30%.
The tax and print-money Keynsians would be ousted from power. Phony money would be a thing of the past. Real jobs, not government-contrived jobs that add a 15% administration burden and place the salaries of government workers on the remaining private sector, would be created. Two bad examples are Solyndra and General Motors, both whom received a government-back loan and then sought government contracts to sell solar panels to the US Navy and Chevy Volt electric cars to the federal government’s fleet of automobiles. That is nothing but false demand.
Imagine Ron Paul appoints a new chief at the Food & Drug Administration who turns that institution upside down, who complies with the law (Dietary Supplement Health & Education Act) rather than repudiates or ignores it as the current FDA does, and works to allow health claims for natural medicines that work far more safely and effectively than synthetically made drugs, and at much lower cost. Imagine the National Institutes of Health is forced to generate studies to reveal the true effectiveness of vitamins C and D, as previously documented by this author in the archives at LewRockwell.com, and the life expectancy of Americans soars and their quality of life in their retirement years greatly improves. Dr. Ron Paul is committed to this kind of real change, not give lip service to it.
Imagine for a moment that President Ron Paul, advocate of free markets, calls for a true revamp of the nation’s electrical grid unlike the current administration which only gives rhetoric to the idea. With installation of new US-manufactured power cable technology that is able to transmit twice as much power on a single power line with 9-20% greater efficiency (less line loss), averting the need for 98 new fossil-fueled or atomic power plants by stringing just 3000 miles of the nation’s power lines with this US-made technology, and bringing $60 billion greater bottom-line profits to power generating companies, your electricity bill would be measurably trimmed instead of continually rising.
Ron Paul – your President. Your vote for RP will cause all of the above and more to happen. This article is just a sampling of what could happen almost overnight. One man, one moment in time, and everything changes on day-one of a RP Presidency. It would the best $39,000 your government could invest (Ron Paul has publicly stated he would take a $39,000/year salary while in office compared to the $400,000/year salary of the incumbent, to set an example).
Don’t be dissuaded by bogus claims “Ron Paul is unelectable” or by the menu of wanna-be candidates served up by the news media. The 4th-Estate, the nation’s major news sources are not unbiased parties. The news media is in dire financial straits themselves and wants those campaign advertising dollars, particularly the $750 million the incumbent President is likely to raise like he did last election. Ron Paul is electable – by you. Make the election of RP so magnanimous that even vote fraud can’t hide it.
Let’s recap – no income tax, the Federal government generates revenues by other means; no IRS forms to deal with; no need to send your kids off to phony wars in foreign theatres; no more cut off the top by the Federal Reserve; assurance there really is gold in Ft. Knox; gold-backed money like this nation once had before the banksters cut their own deal at Jekyll Island, South Carolina decades ago and Nixon took America off the gold standard; rising individual purchasing power as inflation is nixed (no need to ask the boss for a raise, your money will buy more), financial gains on your banked money instead of erosion of your wealth via inflation; your chance to own a home will greatly improve rather than the current situation where home ownership is now only a fading American pipe dream; and true reform of healthcare rather than manipulation by those with vested interests.
These are what a Ron Paul Presidency portends. This is Doctor Ron Paul’s prescription for the re-installation of sanity in American politics. Entrenched forces and crony capitalism are destroying America. You can fight back. Let the public’s voice be heard loud at the ballot box. Vote for Ron Paul so the 99% can have a real opportunity to become the 1%.
