Dear Congressman Price

We were told last week that the world would end if the bail-out didn't pass immediately. It didn't pass, and the world didn't end. Then we were told we had a few days. Then we were told next Monday would be okay. Some even say a few weeks would be okay.

The truth is, no one in Congress has any freakin' idea what you're dealing with here. The $700 billion figure was pulled out of Paulson's ass. It has no grounding in reality whatsoever. It's not even clear that a bail out is absolutely necessary.

I am writing to encourage you as strongly as I possibly can to vote NO on whatever legislation is brought to the floor regarding this bail out. No matter what is put in front of you, it cannot be good legislation because it is being conceived under duress from a President who lies as often as he opens his mouth. There is no possible way to come up with a defensible plan to spend $700 billion in a few frantic days. No. Possible. Way.

Take a deep breath and be the calm, measured voice we expect you to be. Don't rush home to campaign or defend whatever cobbled-together scheme Congress is working on. Stay in Washington and tell your colleagues to stay there too. Think this through, and then think it through again.

That's what we are paying you to do.

Comments

The giveaway deal has been struck

Voting will be tomorrow or Saturday. What a sad day for the American taxpayer.


_____________________________________

Doubts about Dole?

James, we agree...

I called David's office, Richard's office and Liddy's office to say the same thing (well, the same sentiments...).

~Ray McKinnon

~Ray McKinnon

Thanks James, Well said.

Thanks James, Well said.

Bail out buzz

Just to be clear, I'm not against a bail out in concept. The point of my post is that we need to slow this monstrosity down. What I AM against is passing a $700 billion package with less than five days of serious deliberation. New ideas are coming out every hour, including the one from Richard Moore today.

Rushing this through is a mistake. A week's delay will make no difference. Hell, the Bush crooks have been working on their plan for six weeks. The urgency is false on its face.

Doubts about Dole?

I am

The conditions that I believe are necessary for this bailout to not be horrific would never get past the Senate.

If I was in the Congress or the Senate I would use every ounce of energy I had to stop this thing.

"Keep the Faith"

"Keep the Faith"

Phone Calls and E-Mails

Congressman #13 said the calls and e-mails to his office are running about 50/50....50% say "No" and 50% say "Hell No.

Lovex7

Well.....I have Price committed to a live blog soon

I need to get #13 signed up.



***************************
Vote Democratic! The ass you save may be your own.

Awesome

That makes my day.

"Keep the Faith"

"Keep the Faith"

Memo to NC Bush Dogs

Don't stab the Democratic Party in the back again. Bob, Mike, got it? Democrats together or no deal. Because Republicans want no deal and the tag of failure on the Democrats in Congress.

Make the Republicans vote the deal up or down on strict party line votes; we know they will vote on strict party line votes; that's what McCain was up to while he was dodging debates.

50 states, 210 media market, 435 Congressional Districts, 3080 counties, 192,480 precincts

50 states, 210 media market, 435 Congressional Districts, 3080 counties, 192,480 precincts

Tax Wall Street

There's an intriguing idea in play that would not only give Dems political cover, it would also be the right thing to do. If the R's vote against it, they're then the ones protecting Wall Street.

Rep. Peter DeFazio, D-Ore. [...] advocated a new government fee of .25 percent of every stock transaction to ensure that the government can recoup funds to pay for the aid that it provides to lenders. “If this is truly such a catastrophe, I don’t see how anybody can object to a one-quarter of one percent fee,” DeFazio said. Others who attended the session said that proposal seemed to be gaining little traction.

It's gaining little traction because too many people are thinking inside the Paulson box ... instead of creatively outside the box. I love this idea because it transforms the bail out into a loan that gets paid back in "user fees." The free-market extremists ought to love it too. It's like a toll road on Wall Street.

_____________________________________

Doubts about Dole?

Gaining little traction - Why would it gain traction?

It's gaining little traction because (1) Republicans want some game-changing political benefit out of this crisis and (2) Democrats were blindsided (why?) today by McCain and the House GOP going for more deregulation, more tax cuts, and a commission. Democrats are waiting for Republicans to get serious about this issue; therefore, no new Democratic ideas with traction. Sorry Pete.

This is a big game of chicken and the GOP still has locked their hands to the steering wheel. We've seen this before, and it has wound up over and over again with Blue Dog Democrats leading a capitulation to Republican demands. Some majority! No wonder Republican candidates are always saying, "...but Democrats have had the majority in Congress for two years."

50 states, 210 media market, 435 Congressional Districts, 3080 counties, 192,480 precincts

50 states, 210 media market, 435 Congressional Districts, 3080 counties, 192,480 precincts

Don't you know the Federal Reserve has never cause a dispression

Hell James! Even Ron Paul nail it!

From: Congresman Ron Paul

Sent: Thursday, September 25, 2008 2:54 PM
Subject: My Answer to the President

Dear Friends:

The financial meltdown the economists of the Austrian School predicted has arrived.

We are in this crisis because of an excess of artificially created credit at the hands of the Federal Reserve System. The solution being proposed? More artificial credit by the Federal Reserve. No liquidation of bad debt and malinvestment is to be allowed. By doing more of the same, we will only continue and intensify the distortions in our economy - all the capital misallocation, all the malinvestment - and prevent the market's attempt to re-establish rational pricing of houses and other assets.

Last night the president addressed the nation about the financial crisis. There is no point in going through his remarks line by line, since I'd only be repeating what I've been saying over and over - not just for the past several days, but for years and even decades.

Still, at least a few observations are necessary.

The president assures us that his administration "is working with Congress to address the root cause behind much of the instability in our markets." Care to take a guess at whether the Federal Reserve and its money creation spree were even mentioned?

We are told that "low interest rates" led to excessive borrowing, but we are not told how these low interest rates came about. They were a deliberate policy of the Federal Reserve. As always, artificially low interest rates distort the market. Entrepreneurs engage in malinvestments - investments that do not make sense in light of current resource availability, that occur in more temporally remote stages of the capital structure than the pattern of consumer demand can support, and that would not have been made at all if the interest rate had been permitted to tell the truth instead of being toyed with by the Fed.

Not a word about any of that, of course, because Americans might then discover how the great wise men in Washington caused this great debacle. Better to keep scapegoating the mortgage industry or "wildcat capitalism" (as if we actually have a pure free market!).

Speaking about Fannie Mae and Freddie Mac, the president said: "Because these companies were chartered by Congress, many believed they were guaranteed by the federal government. This allowed them to borrow enormous sums of money, fuel the market for questionable investments, and put our financial system at risk."

Doesn't that prove the foolishness of chartering Fannie and Freddie in the first place? Doesn't that suggest that maybe, just maybe, government may have contributed to this mess? And of course, by bailing out Fannie and Freddie, hasn't the federal government shown that the "many" who "believed they were guaranteed by the federal government" were in fact correct?

Then come the scare tactics. If we don't give dictatorial powers to the Treasury Secretary "the stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet." Left unsaid, naturally, is that with the bailout and all the money and credit that must be produced out of thin air to fund it, the value of your retirement account will drop anyway, because the value of the dollar will suffer a precipitous decline. As for home prices, they are obviously much too high, and supply and demand cannot equilibrate if government insists on propping them up.

It's the same destructive strategy that government tried during the Great Depression: prop up prices at all costs. The Depression went on for over a decade. On the other hand, when liquidation was allowed to occur in the equally devastating downturn of 1921, the economy recovered within less than a year.

The president also tells us that Senators McCain and Obama will join him at the White House today in order to figure out how to get the bipartisan bailout passed. The two senators would do their country much more good if they stayed on the campaign trail debating who the bigger celebrity is, or whatever it is that occupies their attention these days.

F.A. Hayek won the Nobel Prize for showing how central banks' manipulation of interest rates creates the boom-bust cycle with which we are sadly familiar. In 1932, in the depths of the Great Depression, he described the foolish policies being pursued in his day - and which are being proposed, just as destructively, in our own:

Instead of furthering the inevitable liquidation of the maladjustments brought about by the boom during the last three years, all conceivable means have been used to prevent that readjustment from taking place; and one of these means, which has been repeatedly tried though without success, from the earliest to the most recent stages of depression, has been this deliberate policy of credit expansion.

To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection - a procedure that can only lead to a much more severe crisis as soon as the credit expansion comes to an end... It is probably to this experiment, together with the attempts to prevent liquidation once the crisis had come, that we owe the exceptional severity and duration of the depression.

The only thing we learn from history, I am afraid, is that we do not learn from history.

The very people who have spent the past several years assuring us that the economy is fundamentally sound, and who themselves foolishly cheered the extension of all these novel kinds of mortgages, are the ones who now claim to be the experts who will restore prosperity! Just how spectacularly wrong, how utterly without a clue, does someone have to be before his expert status is called into question?

Oh, and did you notice that the bailout is now being called a "rescue plan"? I guess "bailout" wasn't sitting too well with the American people.

The very people who with somber faces tell us of their deep concern for the spread of democracy around the world are the ones most insistent on forcing a bill through Congress that the American people overwhelmingly oppose. The very fact that some of you seem to think you're supposed to have a voice in all this actually seems to annoy them.

I continue to urge you to contact your representatives and give them a piece of your mind. I myself am doing everything I can to promote the correct point of view on the crisis. Be sure also to educate yourselves on these subjects - the Campaign for Liberty blog is an excellent place to start. Read the posts, ask questions in the comment section, and learn.

H.G. Wells once said that civilization was in a race between education and catastrophe. Let us learn the truth and spread it as far and wide as our circumstances allow. For the truth is the greatest weapon we have.

In liberty,

Ron Paul

--------------------------------------------------------------------------------

Political Advertisement paid for by Committee to Re-Elect Ron Paul

It's the speed with which this is happening that frightens me.

and the fact that these freepers are all so willing to let the "invisible hand" of the market do its magic, until it slaps them upside the head, then it wants Mama Gubmint to bail them out of the bad decisions they made. I don't know - I don't see how they can have it both ways. I understand how banks failing is a really bad thing, but I want someone who made it happen stand up and say, "Holy Crap!! We really screwed up!!" I guess we needed some regulation after all!"

This illustrates the whole problem with the "invisible hand" of the free market - it has no compassion. Human beings, who band together to govern themselves, however, do. There should be a way we can keep the country from failing without allowing the people who screwed up from profiting from their failure, and still keeping families in their homes.

This is why we need Congressmen like Price and Miller to listen to constituents like us when we say - Hold on, wait a minute here. The last time this administration rushed us into something because it was a dire need, we wound up in a war that has turned into a huge quagmire - that has caused so money that we probably wouldn't be in this mess if we weren't in THAT mess.

I am not necessarily against them either,,,

I just do not want the same tactics of fear and some artificial urgency to get us into yet another situation that could have been avoided once cooler heads came together.

~Ray McKinnon

~Ray McKinnon

Hi James. I will sort of repeat what I told Jim?

This is an event where Wall Street, with the aid and complicity of our President,Treasury Secretary and many Congressional representatives, are taking us for another ride.

The Savings and Loan Debacle under the first President Bush Administration taught us nothing. Those who steer the Wallstreet bus should not be trusted to fix what they greedily broke.

The very people who are responsible for breaking America are being relied upon, now, to ensure the Fix-management of what is surely a desaster we cannot dodge, but one they greatly benefitted and profited from. We are depending on the fox to ensure the safty of the hens. This is insane.

America is happily blind James; wrapped up warmly in our flag and singing the praises of our brave leader as he, and those he permitted to rail us, march our country into third world status. How sad for a great people. How very sad.

I love this country....and my heart is breaking.

I remain your friend. MARSHALL

Marshall Adame
2014 U.S. Congress Candidate NC-03