Rep. Ron Paul (R-TX): The Non-establishment Candidate

Timothy P. Carney ponders why no one “rid the GOP” of Rep. Paul. He has proven to be correct in his prognostications of government policy, from housing subsidies, to wars, to cutting taxes while increasing spending.

One reason the bipartisan establishment finds Paul so obnoxious is how much the past four years have proven him correct — on the housing bubble, on the economy, on our foreign misadventures, and on our national debt.

Shunning Paul would be the equivalent of silencing critics through campaign finance “reform”, ie, infringing on First Amendment rights, or relying goons as Sen. Durbin (D-IL) did when he was recently confronted by a journalist from the Washington Times about him blaming the Tea Party for S&P’s downgrade.

It has taken me some time to understand Rep. Paul’s arguments about the Federal Reserve, government spending, and military. But now I do. I recommend you take the time also because he is the only presidential candidate, including President Obama, with the ideas to fix this economy.

The Federal Reserve allows politicians to spend wildly two ways. One, by keeping interest rates low the government can sell bonds at low interest rates thereby keeping financing costs low. That encourages politicians to spend and offer tax credits because they have a cheap source of financing for economically inefficient policies. Two, the Federal Reserve can buy those bonds directly in the open market as it has done with QE1 and QE2. None of this cannot happen with a gold-based currency.

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