House Proceeding on Jan 22nd, 2009 :: 1:25:35 to 1:29:00
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1:25:31 to 1:25:52( Edit History Discussion )

Ron Paul: balance of his time. the gentlelady from north carolina, ms. foxx, is recognized. ms. foxx: thank you, mr. speaker. i now yield three minutes to the gentleman from texas, mr. paul. the speaker pro tempore: the gentleman from texas is recognized for three minutes. mr. paul: i thank the gentlelady for yielding, and i ask unanimous consent to revise and extend my remarks. the speaker pro tempore:

1:25:35 to 1:29:00( Edit History Discussion )
Speech By: Ron Paul

1:25:53 to 1:26:13( Edit History Discussion )

Ron Paul: without objection. mr. paul: mr. speaker, i rise in support of this resolution because i don't believe the bailouts can work and more spending isn't the answer. actually we should have talked more about prevention of a problem like we have today than trying to deal with a financial cancer that we're dealing with. but the prevention could have come many decades ago and many free market economists predicted even decades ago that we would have a crisis like

1:26:14 to 1:26:35( Edit History Discussion )

Ron Paul: this. but those warnings were not heeded. and even in the last 10 years there have been dire warnings by people who believe in sound money and not in the inflationary system that we have that we will come to this point. over those decades we were able to bail out to a degree and patch er and keep the financial bubble going, but

1:26:36 to 1:26:57( Edit History Discussion )

Ron Paul: today we're in a massive deflationary crisis and we only have two choices. one is to con we are doing, inflate more, run up more deficits. but it doesn't seem to be working because it won't work because the confidence has been lost. the confidence in the post- bretten wood system, it's got.

1:26:58 to 1:27:19( Edit History Discussion )

Ron Paul: and this whole effort to refinance in this manner just won't work. now the other option is to allow the deflation to occur, allow the liquidation of bad debt and to allow the remal of all the bad investments. but that politically is unacceptable so we are really

1:27:20 to 1:27:40( Edit History Discussion )

Ron Paul: in a demma because nobody can take a hands off position. politicses have to feel relevant and say, therefore, they have to do something. but there is no evidence that this is going to work. now we hear there is a proposal and we head about it in the paper. i don't know who came up with this, but it's the idea of having a bad bank. let's create a government bad

1:27:41 to 1:28:01( Edit History Discussion )

Ron Paul: bank. and it's to take the bad debt from the bad bankers and dump these assets onto the good citizens. well, i think that's a very bad idea. it doesn't make any sense for the innocent american citizen to bear the burden, but others will say, no, we'll bail out

1:28:02 to 1:28:22( Edit History Discussion )

Ron Paul: the citizens as ll. but ultimately it's the little guy that loses on this. the bankers got 50 billion. we can't account for it. their assets don't look all that much better, and yet the american people are still suffering. it didn't create any more new jobs. so the attempt now will be maybe to redirect this, but unfortunately it will not be

1:28:23 to 1:28:43( Edit History Discussion )

Ron Paul: any more successful. the fall is i here is we're trying -- the we're trying to lower the prices of homes down. let a poor person buy these houses. that's what we want. this is the philosophy of the

1:28:44 to 1:29:00( Edit History Discussion )

Ron Paul: 1930's because it was thought we were in trouble because the farmers were not getting enough money for their crops so people were starving in the streets. and guess what the policy that came out of washington? pile on to the crops and maybe the price will go up. it didn't work then.