If they expected us to retire quietly from the scene, the political elite are in for a surprise. Today I am making some very big announcements.

First, from August 31 to September 2 in Minneapolis, we will host a handful of events that will shake the political establishment. Everything will culminate on Tuesday with the official launch of the Campaign for Liberty at the Rally for the Republic.

The Campaign for Liberty will be the largest organization for peace, freedom, the Constitution, and sound money in American history. It will launch in grand fashion with lots of special guests and - if the early television and print inquiries we've received are any indication - plenty of media attention.

I would like to personally invite you and your family to join me and thousands of others in Minneapolis for these events and send a message to the Republican Party.

Tickets will go on sale for the Rally for the Republic this Friday, July 25 @ 10AM CST. We want this to be an unforgettable day, so we are holding a ticket bomb all day Friday in the tradition of our famous money bombs. How many seats can we sell on the first day?

In patriotic fashion all tickets will cost $17.76, so you can afford to bring the whole family.

This leads me to the second big announcement. After measuring the excitement and enthusiasm, we decided that the Williams Arena at the University of Minnesota was just too small to hold you. Therefore, we are making a significant upgrade. The Rally for the Republic will now take place at the Target Center, the largest arena in Minneapolis!

This promises to be the most spirited and provocative political event of the year! We held some very large rallies during the presidential campaign, but I have never attempted anything of this scale before. Its success rests entirely in your hands.

Later this week I will announce two internationally renowned musicians as headliners for the Rally for the Republic. We'll also be joined by rock star Aimee Allen, NBC's Tucker Carlson, Barry Goldwater Jr., Gov. Gary Johnson, conservative stalwart Grover Norquist, former Reagan deputy Attorney General Bruce Fein, presidential historian Doug Wead, MTV's Adam Curry, musician Mark Scibilia, and Frank Sinatra impersonator Rick Ellis. Other special guests will be announced soon.

My staff has been working overtime to provide you with three full days of entertainment. Please visit the schedule page of the website and read all about upcoming events. We also have a lodging page to help you find accommodations in Minneapolis.

Together we are taking back our government and restoring the republic. Please join me in Minneapolis to kickoff the Campaign for Liberty and support our Revolution. Can I count on you to be there?

In Liberty,
Ron Paul

This video elaborates on the previous video about the dollar and its value.

Bush, Bernake, and Paulson is trying to pull the wool over the american people. They do not talk about the failing value of the dollar. This is the root of why gas and food prices are rising. It is because the DOLLAR is weak and will NEVER RECOVER.

America today is burdened with deeply rooted and unsustainable economic challenges. From credit debts and loss of manufacturing nationwide, to foreign nations buying our best companies and proping up the economy with loans, these issues impact every citizen. Here are the 16 major problems America faces today:

1. Wholesale sellout of core strategic assets to foreign acquirers: according to official figures, more than 8,815 American companies have been sold to foreign corporations in the last 10 years for at least $1.3 trillion.

2. Subprime Fallout: Millions of Americans took mortgage rates that reset to a higher value, resulting in a steep rise in foreclosures nationwide and over 161 subprime lenders have gone bankrupt as of October, 2007. It also shook the 6.5 trillion mortgage-backed investment market, notably causing two Bear Stearns hedge funds to lose nearly all their value. Worries remain about contagion and subprimes fallout on the housing market and broader U.S. economy.

3. Housing Bubble Burst: market value of residential real estate was inflated to a record-high 38 percent of household net worth, now real estate value is in a free fall nationwide. In October, 2007 the National Association of Realtors estimated that home sales will drop 10.8%, the lowest level in a decade

4. Decline of vital industries through bankruptcy, foreign predatory competition, and foreign acquisition: examples include steel, publishing, textiles, machine tools, automobiles, electronics, movies and others

5. Inability to manufacture competitively: American manufacturers suffer a 22 percent structural cost disadvantage compared to overseas competitors through taxes, health and pension benefits, litigation, regulation, and unequal environmental protection

6. Overdependence on imports: $1 in $4 of US consumption of manufactured goods now goes immediately and directly to imports

7. Massive wealth transfer to foreign ownership: our trade deficit, at $765 billion in 2006, equal to almost $1.5 million per minute

8. Loss of job and career opportunities for people at all educational levels: 3 million high-paying manufacturing jobs lost over past 5 years

9. Insourcing of foreign manufacturers destroys our domestic industries, takes profits and taxes overseas, and provides only low-skill jobs for American workers: foreign manufacturers operating in the US now account for over 20 percent of our exports and manufacturing assets, and a large percentage of our employment

10. Dependence on foreign financing of vast majority of government debt: foreign countries now control 44% of our total federal deficit and finance nearly 100 percent of all new borrowings – our competitors are now our bankers. Japan and China alone account for more than $1 trillion in loans

11. Outsourcing key manufacturing, research, and design: unchecked offshore outsourcing benefits individual companies and shareholders but destroys entire industries and communities

12. Transition to services-oriented economy: high-paying goods-producing industries have lost net employment over the past 25 years while lower paying non-tradable service-providing employment has nearly doubled. Most new jobs are only in service positions in bars, resturants, hotels and hospitals

13. Lost scientific, engineering, technological prowess: in 2004, China and India graduated a combined 950,000 engineers versus 70,000 in the US. US ranks near the bottom of science/math proficiency

14. Record levels of personal and government debt: household liabilities at record levels, federal government adding record levels of debt each year financed mostly by foreign countries, trade deficits transferring unprecedented accelerating amounts of wealth to foreign hands each year. In 2005, the average U.S. savings rate was a negative 1%

15. Misleading commonly used economic statistics: misleading incomplete statistics like GDP, job creation, and productivity belie our crumbling economic infrastructure. In June 2007, Businessweek reported that 40% of the gains in manufacturing could be non-existent due to a miscalculation known as “phantom GDP.”

16. Proven failed trade policies and other legislation contributing to our demise continue unchallenged: destroying our industry and allowing our assets to be sold or taken from us

"If we do (attack) it is going to be a disaster," the Congressman told the Alex Jones show this Thursday.

"I was astounded to see on one of the networks the other day that the debate was not are we going to attack? but are we going to attack before or after the election?" Paul continued.

Listen to the radio interview…

Mr. Williams firmly believes that whoever controls energy controls the economy.

The buck doesn't stop here; it just keeps falling

The almighty dollar is mighty no more. It has been declining steadily for six years against other major currencies, undercutting its role as the leading international banking currency. The long slide is fanning inflation at home and playing a major role in the run-up of oil and gasoline prices everywhere.

Everything made in America — from goods to entire companies — is near dirt cheap to many foreigners. Meanwhile, American consumers, both those who travel and those who stay at home, are seeing big price increases in energy, food and imported goods. The dollar has lost roughly a quarter of its purchasing power against the currencies of major U.S. trading partners from its peak in 2002.

Since oil is bought and sold in dollars worldwide, the devalued dollar has made the recent surge in energy prices even worse for Americans, leading to $4 gasoline in the United States. Analysts suggest that of the $140 a barrel that oil fetches globally, some $25 may be due to the devalued dollar.

Further declines in the dollar will add to oil's appeal as a commodity to be traded.

Oil, suggests influential energy consultant Daniel Yergin, is "the new gold."

The loss of the dollar's purchasing power and international respect has some experts worrying that the euro might one day replace the dollar as the so-called primary reserve currency. And that could trigger a dollar rout as foreign governments and international investors flee from U.S. Treasury bonds and other dollar-denominated investments.

Making matters worse: The gaping U.S. current-account deficit — the amount by which the value of goods, services and investments bought in the U.S. from overseas exceeds the amount the U.S. sells abroad — and the low levels of domestic savings means that foreigners must purchase more than $3 billion every business day to fund the imbalance.

Since roughly half of the nation's nearly $10 trillion national debt is held by foreigners, mostly in Treasury bills and bonds, such a withdrawal could have enormous consequences.

The buck doesn't stop here; it just keeps falling - Yahoo! News

Tags: gasolineprices, oil prices, devalued dollar

The United States has been spending $69 billion a year worldwide for
the last 40 years, for a total of $2.5 trillion, on drug prohibition –
with little to show for it. Is anyone actually benefiting from this
war? Six groups come to mind.

Winners in the War on Drugs

• Drug lords in nations such as Colombia,
  Afghanistan and Mexico, as well as those in the United States. They are
  making billions of dollars every year — tax free.
• Street gangs that infest many of our cities and
  neighborhoods, whose main source of income is the sale of illegal drugs.
• People in government who are paid well to fight the
  first two groups. Their powers and bureaucratic fiefdoms grow larger
  with each tax dollar spent to fund this massive program that has been
  proved not to work.
• Politicians who get elected and reelected by talking tough –
  not smart, just tough — about drugs and crime.
• People who
  make money from increased crime - those who build prisons
  and those who staff them.
• Terrorist groups worldwide that are principally financed by the sale of illegal drugs.

Losers in the War on Drugs

• Literally everyone else, especially our children.

This is the U.S. on drugs - Los Angeles Times

Tags: waron drugs, terrorism

I have, for the past 35 years, expressed my grave concern for the future of America. The course we have taken over the past century has threatened our liberties, security and prosperity. In spite of these long-held concerns, I have days—growing more frequent all the time—when I’m convinced the time is now upon us that some Big Events are about to occur. These fast-approaching events will not go unnoticed. They will affect all of us. They will not be limited to just some areas of our country. The world economy and political system will share in the chaos about to be unleashed.

Though the world has long suffered from the senselessness of wars that should have been avoided, my greatest fear is that the course on which we find ourselves will bring even greater conflict and economic suffering to the innocent people of the world—unless we quickly change our ways.

America, with her traditions of free markets and property rights, led the way toward great wealth and progress throughout the world as well as at home. Since we have lost our confidence in the principles of liberty, self reliance, hard work and frugality, and instead took on empire building, financed through inflation and debt, all this has changed. This is indeed frightening and an historic event.

The problem we face is not new in history. Authoritarianism has been around a long time. For centuries, inflation and debt have been used by tyrants to hold power, promote aggression, and provide “bread and circuses” for the people. The notion that a country can afford “guns and butter” with no significant penalty existed even before the 1960s when it became a popular slogan. It was then, though, we were told the Vietnam War and a massive expansion of the welfare state were not problems. The seventies proved that assumption wrong.

Today things are different from even ancient times or the 1970s. There is something to the argument that we are now a global economy. The world has more people and is more integrated due to modern technology, communications, and travel. If modern technology had been used to promote the ideas of liberty, free markets, sound money and trade, it would have ushered in a new golden age—a globalism we could accept.

Instead, the wealth and freedom we now enjoy are shrinking and rest upon a fragile philosophic infrastructure. It is not unlike the levies and bridges in our own country that our system of war and welfare has caused us to ignore.

I’m fearful that my concerns have been legitimate and may even be worse than I first thought. They are now at our doorstep. Time is short for making a course correction before this grand experiment in liberty goes into deep hibernation.

There are reasons to believe this coming crisis is different and bigger than the world has ever experienced. Instead of using globalism in a positive fashion, it’s been used to globalize all of the mistakes of the politicians, bureaucrats and central bankers.

Being an unchallenged sole superpower was never accepted by us with a sense of humility and respect. Our arrogance and aggressiveness have been used to promote a world empire backed by the most powerful army of history. This type of globalist intervention creates problems for all citizens of the world and fails to contribute to the well-being of the world’s populations. Just think how our personal liberties have been trashed here at home in the last decade.

The financial crisis, still in its early stages, is apparent to everyone: gasoline prices over $4 a gallon; skyrocketing education and medical-care costs; the collapse of the housing bubble; the bursting of the NASDAQ bubble; stockmarkets plunging; unemployment rising;, massive underemployment; excessive government debt; and unmanageable personal debt. Little doubt exists as to whether we’ll get stagflation. The question that will soon be asked is: When will the stagflation become an inflationary depression?

There are various reasons that the world economy has been globalized and the problems we face are worldwide. We cannot understand what we’re facing without understanding fiat money and the long-developing dollar bubble.

There were several stages. From the inception of the Federal Reserve System in 1913 to 1933, the Central Bank established itself as the official dollar manager. By 1933, Americans could no longer own gold, thus removing restraint on the Federal Reserve to inflate for war and welfare.

By 1945, further restraints were removed by creating the Bretton-Woods Monetary System making the dollar the reserve currency of the world. This system lasted up until 1971. During the period between 1945 and 1971, some restraints on the Fed remained in place. Foreigners, but not Americans, could convert dollars to gold at $35 an ounce. Due to the excessive dollars being created, that system came to an end in 1971.

It’s the post Bretton-Woods system that was responsible for globalizing inflation and markets and for generating a gigantic worldwide dollar bubble. That bubble is now bursting, and we’re seeing what it’s like to suffer the consequences of the many previous economic errors.

Ironically in these past 35 years, we have benefited from this very flawed system. Because the world accepted dollars as if they were gold, we only had to counterfeit more dollars, spend them overseas (indirectly encouraging our jobs to go overseas as well) and enjoy unearned prosperity. Those who took our dollars and gave us goods and services were only too anxious to loan those dollars back to us. This allowed us to export our inflation and delay the consequences we now are starting to see.

But it was never destined to last, and now we have to pay the piper. Our huge foreign debt must be paid or liquidated. Our entitlements are coming due just as the world has become more reluctant to hold dollars. The consequence of that decision is price inflation in this country—and that’s what we are witnessing today. Already price inflation overseas is even higher than here at home as a consequence of foreign central bank’s willingness to monetize our debt.

Printing dollars over long periods of time may not immediately push prices up–yet in time it always does. Now we’re seeing catch-up for past inflating of the monetary supply. As bad as it is today with $4 a gallon gasoline, this is just the beginning. It’s a gross distraction to hound away at “drill, drill, drill” as a solution to the dollar crisis and high gasoline prices. Its okay to let the market increase supplies and drill, but that issue is a gross distraction from the sins of deficits and Federal Reserve monetary shenanigans.

This bubble is different and bigger for another reason. The central banks of the world secretly collude to centrally plan the world economy. I’m convinced that agreements among central banks to “monetize” U.S. debt these past 15 years have existed, although secretly and out of the reach of any oversight of anyone—especially the U.S. Congress that doesn’t care, or just flat doesn’t understand. As this “gift” to us comes to an end, our problems worsen. The central banks and the various governments are very powerful, but eventually the markets overwhelm when the people who get stuck holding the bag (of bad dollars) catch on and spend the dollars into the economy with emotional zeal, thus igniting inflationary fever.

This time—since there are so many dollars and so many countries involved—the Fed has been able to “paper” over every approaching crisis for the past 15 years, especially with Alan Greenspan as Chairman of the Federal Reserve Board, which has allowed the bubble to become history’s greatest.

The mistakes made with excessive credit at artificially low rates are huge, and the market is demanding a correction. This involves excessive debt, misdirected investments, over-investments, and all the other problems caused by the government when spending the money they should never have had. Foreign militarism, welfare handouts and $80 trillion entitlement promises are all coming to an end. We don’t have the money or the wealth-creating capacity to catch up and care for all the needs that now exist because we rejected the market economy, sound money, self reliance and the principles of liberty.

Since the correction of all this misallocation of resources is necessary and must come, one can look for some good that may come as this “Big Even” unfolds.

There are two choices that people can make. The one choice that is unavailable to us is to limp along with the status quo and prop up the system with more debt, inflation and lies. That won’t happen.

One of the two choices, and the one chosen so often by government in the past is that of rejecting the principles of liberty and resorting to even bigger and more authoritarian government. Some argue that giving dictatorial powers to the President, just as we have allowed him to run the American empire, is what we should do. That’s the great danger, and in this post-911 atmosphere, too many Americans are seeking safety over freedom. We have already lost too many of our personal liberties already. Real fear of economic collapse could prompt central planners to act to such a degree that the New Deal of the 30’s might look like Jefferson’s Declaration of Independence.

The more the government is allowed to do in taking over and running the economy, the deeper the depression gets and the longer it lasts. That was the story of the 30ss and the early 40s, and the same mistakes are likely to be made again if we do not wake up.

But the good news is that it need not be so bad if we do the right thing. I saw “Something Big” happening in the past 18 months on the campaign trail. I was encouraged that we are capable of waking up and doing the right thing. I have literally met thousands of high school and college kids who are quite willing to accept the challenge and responsibility of a free society and reject the cradle-to-grave welfare that is promised them by so many do-good politicians.

If more hear the message of liberty, more will join in this effort. The failure of our foreign policy, welfare system, and monetary policies and virtually all government solutions are so readily apparent, it doesn’t take that much convincing. But the positive message of how freedom works and why it’s possible is what is urgently needed.

One of the best parts of accepting self reliance in a free society is that true personal satisfaction with one’s own life can be achieved. This doesn’t happen when the government assumes the role of guardian, parent or provider, because it eliminates a sense of pride. But the real problem is the government can’t provide the safety and economic security that it claims. The so-called good that government claims it can deliver is always achieved at the expense of someone else’s freedom. It’s a failed system and the young people know it.

Restoring a free society doesn’t eliminate the need to get our house in order and to pay for the extravagant spending. But the pain would not be long-lasting if we did the right things, and best of all the empire would have to end for financial reasons. Our wars would stop, the attack on civil liberties would cease, and prosperity would return. The choices are clear: it shouldn’t be difficult, but the big event now unfolding gives us a great opportunity to reverse the tide and resume the truly great American Revolution started in 1776. Opportunity knocks in spite of the urgency and the dangers we face.

Let’s make “Something Big is Happening” be the discovery that freedom works and is popular and the big economic and political event we’re witnessing is a blessing in disguise.

The tendency of these managers is to fabricate a view of cause and effect that conforms to what they would like to do. In the war on terror, we were told that the 9-11 attacks came about because shadowy bad guys from afar resent our freedom. If you believe that, the answer is more militarism and killing as a preventative measure. If, however, you realize that these attacks grew out of a desire for vengeance against American military policies, the implied policy solution looks radically different.

So it is with the economy and the proper policy response to recession. If you believe that there is no good reason for an economic downturn other than a wave of animal spirits and flagging public confidence, your response is to inject optimism via the printing press. Surely, nothing makes folks happier, temporarily, than for them to find themselves awash in newly printed bills. This will lead to internal joy, consumer spending, and thus recovery.

So believes the silly political class.

Consider a different view of cause and effect. If the recession is a correction to an overly pumped economic boom, matters change. The recession, then, is not an aberration crying out for correction; it is itself the correction for the unsustainable economic bubble that preceded it. It should be welcomed in the same way we welcome a sober day after a drunken evening, or the detoxification of an addict after a period of addiction.

Continue reading Grand Theft Society by Lew Rockwell

Supply and Demand
According to the peak oil theory, the surge in oil prices can be traced back to a fall in oil production. It says that the continuously rising consumption levels create a strain on the existing oil reserves, thereby broadening the global demand-supply gap.

• “In reality, global production has risen every year since 2002, and is still growing,” says Absolute Return Partners LLP, a London-based investment advisory firm newsletter for June 2008.

• The U.S. Energy Information Administration's weekly report Wednesday said inventories rose by 800,000 barrels to 301.8 million barrels last week.
• In the last month, gasoline demand fell by 2.1 percent compared to the same period last year, according to the Energy Information Administration, the Energy Department's statistical arm.

Speculators
Hedge funds, investment banks, mutual funds, and other financial institutions are magnifying small movements in prices—first as prices moved up last year, and now as they move back down.  The explosion in the number of financial players in the energy markets has occurred particularly in the past year or two. There are currently 530 energy hedge funds, up from just 180 in October, 2004. Of the total funds now, 177 are strictly energy commodity funds trading oil or oil futures and options, as opposed to the stocks of energy companies such as ExxonMobil (XOM) and Chevron (CVX). Larger financial institutions such as Goldman Sachs (GS) and Morgan Stanley (MS) have also stepped up their participation in the energy markets recently.

A Weak Dollar
Another major factor is that oil is priced, globally, in dollars. As long as the dollar is weak, that will contribute to higher prices.  Commodity prices have significantly pushed up inflation in most global economies and many central banks have resorted to a number of fiscal and monetary measures to counter this, with no success.

The Threat of War
The recent ‘rumors of war’ regarding bombing Iran has allowed the big brokers/traders to push the prices on the exchange up due to this panic speculation. Ron Paul addresses this issue in the following video where he also exposes the lies associated with the criminal push to implement a 2nd illegal war on a sovereign nation that poses us no risk.

Tags: ronpaul, oil prices, crude oil prices, inflation, oil speculators, supply and demand, oil production, oil consumption, threat of war