Trust Us; We’re The Government

By U. S. Rep. Ron Paul, M.D. (R-Texas)
While much has been made recently of the President’s unconstitutional appointment of Richard Cordray to be director of the Consumer Financial Protection Bureau (CFPB), lost in the hubbub has been any discussion of the unconstitutionality of, or the need for, the CFPB itself. Proponents of the CFPB claim that this new bureaucracy will help consumers by protecting them from fraudulent activity. In reality, it will only expose consumers to more financial harm.
Housed within the unconstitutional Federal Reserve, and funded not through Congressional appropriations but through the Federal Reserve’s interest revenue off the trillions of dollars of US government debt it holds, the structure of the CFPB ensures that it is run by unelected, unaccountable bureaucrats, with no effective oversight from Congress. Given broad power to regulate the activities not only of banks, but also of any other entity which the government deems offers a financial product, there is almost no limit to the scope of financial activities which the CFPB can oversee.
Giving impetus to the CFPB’s creation was the poor reputation of Wall Street banks and financial firms that developed as a result of the financial crisis. Banks which received trillions of dollars of taxpayer-funded bailouts turned around and shafted their customers by foreclosing on homes, raising credit card interest rates, and introducing numerous new fees.
But rather than keeping Wall Street in check as its proponents allege, the CFPB will end up placing further restrictions on the ability of Main Street Americans to engage in productive financial endeavors. Current law already allows only the richest Americans to invest in potentially lucrative ventures such as hedge funds because such investments are deemed to be “too risky” for the average American to invest in. The government in its paternalistic wisdom treats American investors as too stupid to know what to do with their own money, and “protects” them, supposedly, by keeping them poorer than they otherwise would be. We can expect even more of this once the CFPB is running in full stride.
The CFPB will further harm consumers by encouraging them to use only financial products which have received the Bureau’s approval. Many consumers will assume that these products are “safe”, and will fail to engage in their own due diligence, with predictably unfortunate results. We have seen this with the stock markets and the cases of Bernie Madoff and Allen Stanford, where investors trusting the SEC to prevent fraud ended up suffering huge losses. Social Security is a similar case, in which millions of people placed their trust in the government to take care of them in their old age. The inability of Social Security to pay its future obligations is well understood but ignored, and millions of Americans will likely once again learn the hard way that the government cannot be taken at its word.

This entry was posted on Wednesday, February 15th, 2012 and is filed under U.S. Rep. Ron Paul's "Texas Straight Talk". You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

5 Responses to “Trust Us; We’re The Government”

  1. Larry Flinchpaugh on February 16th, 2012 at 7:10 am

    Support Ron Paul In March Republican Caucus
    A vote for any candidate other than Ron Paul for president is a vote for the status quo. Nothing will change! New leader but the same old lies. Do you hear any of the other candidates talking about a balanced budget amendment or abolishing the Federal Reserve System? Both Mitt Romney and Newt Gingrich favor supporting Israel by continually giving them billions of dollars in aid and continue to support the hoax that Iran is America’s enemy.
    Those uniformed voters that say Ron Paul’s ideas scare the hell out of them have had their minds contaminated by the controlled main stream media. Their friends and relatives who feel the same way only reinforces their negative views. They both need to research the Ron Paul articles featured in the “Saint Joseph Telegraph” and various internet sources to learn the truth. You certainly will not know the truth watching FOX TV, MSNBC, CNN ABC, CBS, PBS, etc.
    I always ask people that don’t support Ron Paul. “Why?” Which part of his political platform do you not agree with?
    Is it that our government (1) should obey the US Constitution, (2) adopt sound monetary policies like abolishing the privately owned Federal Reserve that prints our money and charges us unnecessary interest, (3) stops being the policeman of the world, (4) should recognize the sovereignty of the states and individual liberty, (4) should have a balanced budget amendment so that government expenses are paid for by transparent taxes rather than by hidden debt financing that increases inflation.
    If number four were in effect, the chance of war would be almost zero. Can you imagine the president wanting to Nuke Iran and not being able to finance that war through debt financing? He would need to address the people on the evening TV news and say, “My fellow Americans. We are going to increase your income taxes by 40% to have enough money to pay for our war. I hope you folks don’t mind.”
    The mere fact that the media, bankers, military industrial complex companies, Israeli lobbyists and the Unions are frantically attempting to destroy the credibility of Ron Paul, should convince you that he is, indeed, the one to lead our country.
    Larry Flinchpaugh
    St. Joseph

  2. Mark W. Arthur on February 21st, 2012 at 11:44 am

    Just a smiling reader here. How can you not smile with a headline like that?

    The government would like for us to trust it, but their record clearly shows we are wise to watch and check.

    I wish more people knew about “Fully Informed Juries” or “Common Law Juries.” Our founding fathers wanted the people to be the final check on government. With juries of the people deciding whether a law is just or not–and not just the guilt of the accused–we have the power to thwart many bad decisions.

    Great article. You do a very good job of representing the spirit of the Constitution and the Bill of Rights with your decisions and votes in Congress.

    I voted for you in the primary and pray for more to do so in other contests. Our country needs a person of principle and not a dupe of corporate and other special interests. It’s little wonder that the establishment Republicans would prefer another.

  3. Columbus on February 23rd, 2012 at 11:35 pm

    Excellent article! I showed this to my girlfriend and she loves it too!

  4. Hjalmar Lindholm on March 15th, 2012 at 8:24 pm

    hi, I like viewing your website. Hjalmar Lindholm

  5. Darren Crouser on April 11th, 2012 at 11:04 pm

    Here’s one guy who doesn’t trust government.

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