A Fitting Farewell from Ron Paul

We suppose we should say something about the ‘historic’ transition of Chinese political power that occurred yesterday. But we won’t. There’s a torrent of opinion in the world’s media about what it all means, and we don’t intend to add to it…not today anyway.

Except for this: China has already sown the seeds of its economic problems. There’s simply a younger generation of privileged power brokers now in place to oversee those problems. Job number one of the powerful is to entrench that power base. Job number two is to maintain a ‘harmonious society’, in order to reinforce job number 1.

Everything else is just the method by which the powerful seek to retain and reinforce that power. Pretty simple really.

Contrast the motives of China’s elite with those of a true American patriot, Ron Paul, who gave his farewell speech to congress last night. Paul reflected on a political career of trying to ‘promote peace and prosperity by a strict adherence to the principles of individual liberty.’

‘In spite of my efforts, the government has grown exponentially, taxes remain excessive, and the prolific increase of incomprehensible regulations continues. Wars are constant and pursued without Congressional declaration, deficits rise to the sky, poverty is rampant and dependency on the federal government is now worse than any time in our history.

‘All this with minimal concerns for the deficits and unfunded liabilities that common sense tells us cannot go on much longer. A grand, but never mentioned, bipartisan agreement allows for the well-kept secret that keeps the spending going. One side doesn’t give up one penny on military spending, the other side doesn’t give up one penny on welfare spending, while both sides support the bailouts and subsidies for the banking and corporate elite. And the spending continues as the economy weakens and the downward spiral continues. As the government continues fiddling around, our liberties and our wealth burn in the flames of a foreign policy that makes us less safe.

‘The major stumbling block to real change in Washington is the total resistance to admitting that the country is broke. This has made compromising, just to agree to increase spending, inevitable since neither side has any intention of cutting spending.

‘The country and the Congress will remain divisive since there’s no “loot left to divvy up.”

‘Without this recognition the spenders in Washington will continue the march toward a fiscal cliff much bigger than the one anticipated this coming January.

‘Some complain that my arguments make no sense, since great wealth and the standard of living improved for many Americans over the last 100 years, even with these new policies.

‘But the damage to the market economy, and the currency, has been insidious and steady. It took a long time to consume our wealth, destroy the currency and undermine productivity and get our financial obligations to a point of no return. Confidence sometimes lasts longer than deserved. Most of our wealth today depends on debt.

‘The wealth that we enjoyed and seemed to be endless, allowed concern for the principle of a free society to be neglected. As long as most people believed the material abundance would last forever, worrying about protecting a competitive productive economy and individual liberty seemed unnecessary.’

We encourage you to read the full speech here. Like a great novel that only gains prestige long after it’s written, Ron Paul’s wisdom will only become widely apparent in hindsight.


Greg Canavan
for Markets and Money

From the Archives…

The Grand Plans of the Chinese Communist Party
9-11-2012 – Greg Canavan

The Superannuation Gravy Train
8-11-2012 – Greg Canavan

Using the Habit of Optimism to Find Great Investment Opportunities
7-10-2012 – Dan Denning

The US Presidential Election: The other race that stops the other nation…
6-10-2012 – Dan Denning

Why Gold Hasn’t Risen
5-10-2012 – Bill Bonner

Greg Canavan
Greg Canavan is a contributing Editor of Markets and Money and is the foremost authority for retail investors on value investing in Australia. He is a former head of Australasian Research for an Australian asset-management group and has been a regular guest on CNBC, Sky Business’s The Perrett Report and Lateline Business. Greg is also the editor of Crisis & Opportunity, an investment publication designed to help investors profit from companies and stocks that are undervalued on the market. To follow Greg's financial world view more closely you can subscribe to Markets and Money for free here. If you’re already a Markets and Money subscriber, then we recommend you also join him on Google+. It's where he shares investment research, commentary and ideas that he can't always fit into his regular Markets and Money emails. For more on Greg go here.

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5 Comments on "A Fitting Farewell from Ron Paul"

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Pat Warriner
Retire to Australia Ron Paul. You have a broad streak of plain common sense that I believe most Australians would love and admire. I say most, because you will never appeal to people within a system who have vested interests to protect. And will work against you ensure that the system stays the same. But the USA’s loss could be our gain I reckon there’s more than enough Australians with common sense, to vote you in to power and get this country back on track. You’re a man to be admired, and it’s a damn shame that you have not… Read more »
Good call Pat. There is a bed for him at my place anytime. On Greg though, China’s elite is doing a better job at advancing their 99%’s lot than the US. Looking after number one and family is followed by a healthier dose of looking after the majority than in the US. Ron didn’t get anything much on his agenda implemented so the hide of you to play red team blue team with the US and China. Ron laments that the US is not the image of its constitutional potential so your image of the US is unrealistic in Tocqueville… Read more »

I believe Ron did exactly what he should have done. For the best part he just stated the truth. People need not be disappointed he did not save them. When they are ready they will do something to help save themselves with maybe just a grain of the man’s wisdom resonating within them..or some other wisdom. That’s all he needed to do. Sow the seed.
Personally I know we cant save the world. The direction we are heading in is what counts. Towards personal responsibility is the hope. Ron can see it.


Imagine how great Australia could become under the leadership of someone like Ron Paul. Let’s offer him citizenship before another country gets him.
Whilst it would be preferential to have a home grown leader, clearly our political system is as corrupt and incompetent as any and the chances of an independent thinker getting into any position of influence is very remote.

Educated Citizen
@Pat “I reckon there’s more than enough Australians with common sense, to vote you in to power and get this country back on track.” If you take a good look at our local political climate, social climate and economic climate (debt and housing), I am not sure you can honestly say that. Which collective is more stupid? The one that forget after a generation and repeats the mistakes? Or a country that watches every other nation globally commit financial suicide and still assumes ‘it’s different here’. Whilst there’s a small minority of people who are woken up to the system,… Read more »
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