Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

Ron Paul Needs to Escape His Libertarian Handlers for Chance of Winning Republican Nomination

ElectionOracle / US Presidential Election 2012 Jan 23, 2012 - 06:59 AM GMT

By: Paul_Craig_Roberts

ElectionOracle

Best Financial Markets Analysis ArticleIf Ron Paul’s libertarian handlers and support base could escape their ideology, Ron Paul could be much better positioned to win the Republican nomination.

Here are some suggestions.


Ron Paul should be making the point that Social Security and Medicare are threatened by multi-trillion dollar wars that are funded by debt, by bailouts of a deregulated banking system, and by money creation to keep the banks afloat. Libertarians support deregulation, but their position has always been that deregulated industries must not be bailed out with public subsidies, much less subsidies that are so extensive that they threaten government solvency and the value of the currency.

Instead of hitting hard on the serious threat to Social Security and Medicare posed by Obama and Republican candidates for the nomination, all of whom serve Wall Street, the military/security complex, and the Israel Lobby, Ron Paul has been positioned both by his supporters and his opponents as the danger to Social Security and Medicare. This is an amazing strategic mistake by the Ron Paul campaign.

The mistake is somewhat understandable. Ron Paul’s supporters are mainly among the young. The importance to them of Social Security and Medicare will not register for many years, but for the vast majority of the population Social Security and Medicare are essential for survival. A candidate who is positioned as the destroyer of what scant economic protection the American elderly have is not positioned to win an election for president.

Many libertarians regard Social Security and Medicare as welfare handouts and as Ponzi schemes, when in fact these programs are a form of private property. People pay for these programs all their working lives, just as they pay premiums for private medical policies and make their deposits into private pension plans. Libertarians are great defenders of private property, so why don’t they defend the elderly’s private property rights in Social Security and Medicare benefits? Social Security and Medicare are contracts that government made with citizens. These contracts are as valid and enforceable as any other contracts. If Social Security and Medicare are in dire trouble, why is the government wasting trillions of dollars in behalf of private armaments industries, a neocon ideology, and Israel’s territorial ambitions? Why isn’t this question the most important issue in the campaign?

Instead, in a decade that has seen two massive stock market crashes and an amazing amount of financial fraud, libertarians prattle on about privatizing Social Security and about how much larger the retirement pensions would be. They speak about delaying the Social Security retirement age to 70 without any thought to what a person does who is retired by his employer at 65. People who suggest making Social Security and Medicare off limits until people reach 70 need to have a look at the cost of private medical plans for older people. A group plan with Blue Cross Blue Shield Florida for a 64-year old woman has a $18,000 premium, large deductibles per medical issue, and a 20% co-pay. Even a person with private insurance faces potentially ruinous health care expenses.

Libertarians will not wait to think before they inform me that private savings are funded but Social Security and Medicare are not. They are incorrect on both accounts.

Social Security and Medicare are funded with a payroll tax. It is true that the government has stolen the funds, spent them, and left non-marketable IOU’s in their place. But in our deregulated casino financial system with street registration of “securities,” the same thing happens to private holdings. Where is the money that individuals had in MF Global? What happened to people’s savings invested with Madoff? What happened to Enron’s investors? Can AIG make good on its promises to pay the benefits that people have purchased? Can banks whose balance sheets are loaded with subprime derivatives make good on their depositors’ accounts? US government debt is a component of many private pension plans. How secure are the values of Treasury bonds?

The notion that free unregulated markets are totally trustworthy is the enormous mistake that former Federal Reserve Chairman Alan Greenspan made, for which American and European peoples continue to pay. Libertarians endorse this fantastic mistake to the hilt.

This is not meant to be an attack on libertarians. Rather, it is an explanation of some of their mistakes. There is much to admire about libertarians. They believe in civil liberty, that is, in the Bill of Rights and the Constitution. They understand that government cannot substitute for the market. I know a lot about libertarians. I was associated with them for years, serving for several years as Distinguished Scholar at the Cato Institute until I was run off for independent thinking.

Libertarians are sectarian, and their tolerance does not extend beyond their ideology. The biggest mistake that libertarians make is the way they view government and private sectors. Government is the root of all evil, and the private sector is the source of all good. Libertarians have never figured out that people are the same whether in the government or in the private sector. They will abuse their power regardless of where they perch. That is why government needs to be tied down by the Constitution and the private sector by regulation. Yes, regulation can go too far. Certainly, deregulation has gone too far.

The ongoing financial crisis from deregulation and ongoing jobs crisis from offshoring constitute empirical evidence that the belief is false that an unfettered private sector is the source of all good.

Some readers misunderstood the point of my previous column, “America’s Last Chance.” I am endorsing the U.S. Constitution and making the point that Ron Paul is the only candidate for president in either party who is committed to resurrecting the Constitution. Without the Constitution we cease to be American citizens and become subjects of a tyrannical police state. My complaint is that the only candidate who could bring back the Constitution cannot be elected because of the inflexibility and sectarianism of his base. Possibly there are more worthy third party candidates, but they have no prospect of visibility. Ron Paul is visible, and the opportunity is going to waste.

I hope readers will spare me their comments about how important their various single issues are. There are many important things. The question is: what is the over-riding important thing?

Civil Liberty, essentially the accountability of government to law that serves to protect the innocent, is the historic achievement of the English over many centuries from its beginnings with the foundation for common law established by Alfred the Great in the 9th century through Magna Carta in the 13th century to the Glorious Revolution in the 17th century. If this human achievement is lost, it is unlikely to be resurrected. If the Constitution that Bush and Obama have murdered stays in its grave one more presidential term, no one will be able to re-establish the Constitution’s authority.

And please, no prattle from libertarians about “natural rights.” The only rights we have are rights achieved by centuries of human struggle that we have the wits and strength to retain.

And no prattle from left-wingers who denounce the Constitution for not protecting slaves and native Indians. The Constitution did not establish universal justice. The Constitution protected the people covered by it. Over time rights were extended. During the past decade the Constitution lost its power. Today rights depend on the subjective opinion of the executive branch. This is tyranny. We should be unified in our opposition to tyranny.

Paul Craig Roberts

http://www.paulcraigroberts.org/

Paul Craig Roberts [ email him ] was Assistant Secretary of the Treasury during President Reagan's first term.  He was Associate Editor of the Wall Street Journal .  He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand. He is the author of Supply-Side Revolution : An Insider's Account of Policymaking in Washington ; Alienation and the Soviet Economy and Meltdown: Inside the Soviet Economy , and is the co-author with Lawrence M. Stratton of The Tyranny of Good Intentions : How Prosecutors and Bureaucrats Are Trampling the Constitution in the Name of Justice . Click here for Peter Brimelow's Forbes Magazine interview with Roberts about the recent epidemic of prosecutorial misconduct.

© 2012 Copyright Paul Craig Roberts - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Phil Ridley
24 Jan 12, 07:49
Confused?

Ron Paul has said that he will end the wars to fund existing Medicare and Medicaid. You obviously haven't read any of his speeches.


Ben Ganschow
06 Mar 12, 11:29
Constitutional Choice

Great article,

This is absolutely why I am trying to convince people to vote for Ron Paul. It doesn't matter whether you believe in his arguments, you can protest against and therefore his arguments will probably not pass into fruition. It's like the author at the Cato Institute, the institute has decided that truth is not supportive of their agenda, therefore he was pushed out. Ron Paul is someone who wants clarity, who wants to reside within the boundaries of the constitution. The other points about ending the Fed and or a reversion to the gold standard miss the main point.

Within my whole lifetime (26 years) I have seen candidates who are basically marketing campaigns and have seen polling replace the thinking and actual concrete beliefs of a candidate.

It has always astounded me that people will lose sight of what is important about America, the governmental boundaries you learned in 7th grade, and let themselves be subverted by which candidate they can drink a beer with, or which candidate is more religious, which candidates wife is prettier, or what the candidate thinks their neighbors should practice in terms of abortion. All these heuristic qualities that we should all learn to see beyond, or if not beyond at the most the whole picture.

Its classic mind games and like the article states, there are probably better candidates out there, but we have a chance to elect a person who has based his career on consistency and principle. That is why he gets my vote.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules