By Ron Paul | RPI | October 9, 2018

Last week the United States, Mexico, and Canada agreed to replace the North American Free Trade Agreement (NAFTA) with a new United States-Mexico-Canada Agreement (USMCA). Sadly, instead of replacing NAFTA’s managed trade with true free trade, the new USMCA expands government’s control over trade.

For example, under the USMCA’s “rules of origin,” at least 75 percent of a car’s parts must be from the US, Canada, or Mexico in order to avoid tariffs. This is protectionism designed to raise prices of cars using materials from outside North America.

The USMCA also requires that 40 to 45 percent of an automobile’s content be made by workers earning at least 16 dollars per hour. Like all government-set wages, this requirement will increase prices and decrease employment.

The USMCA also requires Mexico to pass legislation recognizing the “right of collective bargaining.” In other words, this so-called free trade agreement forces Mexico to import US-style compulsory unionism. If the Mexican legislature does not comply, the US and Canada will impose tariffs on Mexican goods.




The USMCA also requires the three countries to abide by the International Labour Organization (ILO) standards for worker rights. So, if, for example, the bureaucrats at the ILO declared that Right to Work laws violate “international labor standards”’ because they weaken collective bargaining and give Right to Work states an unfair advantage over compulsory unionism states and countries, the federal government may have to nullify all state Right to Work laws.

The USMCA also obligates the three countries to work together to improve air quality. This sounds harmless but could be used as a backdoor way to impose costly new regulations and taxes, such as a cap-and-trade scheme, on America.

This agreement also forbids the use of currency devaluation as a means of attempting to gain a competitive advantage in international trade. Enforcement of this provision will be difficult if not impossible, as no central bank will ever admit it is devaluing currency to obtain a competitive advantage in international trade. Of course, given that the very act of creating money lowers its value, the only way to stop central banks from devaluing currency is to put them out of business. Sadly, I don’t think the drafters of the USMCA seek to restore free-market money.

The currency provision will likely be used to justify coordination of monetary policy between the Federal Reserve and the Mexican and Canadian central banks. This will lead to region-wide inflation and a global currency war as the US pressures Mexico and Canada to help the Fed counter other countries’ alleged currency manipulation and challenges to the dollar’s reserve currency status.

A true free trade deal would simply reduce or eliminate tariffs and other trade barriers. It would not dictate wages and labor standards, or require inter-governmental cooperation on environmental standards and monetary policy. A true free trade deal also would not, as the USMCA does, list acceptable names for types of cheeses.

Those of us who support real free trade must not let supporters of the USMCA get away with claiming the USMCA has anything to do with free trade. We must also fight the forces of protectionism that are threatening to start a destructive trade war. Also, we must work to stop the government from trying to control our economic activities through regulations, taxes, and (most importantly) control of the currency through central banking and legal tender laws.


Contributed by Ron Paul of the Ron Paul Institute.


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By Ron Paul | RPI | Sept. 17, 2018

According to a recent Reuters/Ipsos survey, 70 percent of Americans, including about 50 percent of Republicans, support Medicare for all, the latest incarnation of single-payer health care. Republican support for a health plan labeled “Medicare for all” is not surprising considering that Republican politicians support Medicare and that one of their attacks on Obamacare was that it would harm the program. Furthermore, the biggest expansion of Medicare since its creation — the Part D prescription drug program — occurred under a conservative president working with a conservative Congress.

Conservative Republicans do propose reforming Medicare to reduce its costs, but their proposals are always framed as “saving Medicare,” and most reform plans increase spending. Few conservative Republicans would dare advocate allowing young people to opt out of paying Medicare taxes in exchange for agreeing to forgo Medicare benefits.

Many conservative Republicans favor other government interventions into health care, including many features of Obamacare. In fact, Obamacare’s individual mandate originated as a conservative proposal and was once championed by many leading Republicans. Many other Republicans simply lack the courage to repeal Obamacare, so they say they only want to repeal the “unpopular” parts of the law. It would not be surprising if we soon heard conservatives and Republican politicians talk about defending Obamacare from supporters of socialized medicine.




The same dynamic at work in health care is at work in other areas. For example, the same conservative administration and Congress that created Medicare Part D also dramatically expanded federal control of education with “No Child Left Behind.” Conservative Republicans who (rightly) fight against deficit spending when a Democrat sits in the White House decide that “deficits don’t matter” when the president has an “R” next to his name.

Many Republican politicians — and even conservative intellectuals — will say they are being pragmatic by not fighting progressives on first principles, but instead limiting the damage done by the welfare state. The problem with this line is that, by accepting the premise that government can and should solve all of life’s problems, conservatives and Republicans will inevitably get into a “bidding war” with progressives and Democrats. The only way Republicans can then win is to join Democrats in continually increasing spending and creating new programs. This is why the so-called “conservative welfare state” ends up as bloated and expansive as the progressive welfare state. Refusing to question the premises of the welfarists and socialists is not a pragmatic way to advance liberty.

While progressives blame social crises on the free market, Republicans and conservatives are unwilling to admit the problems were caused by prior government interventions. Thus the passage of Dodd-Frank was aided by claims that the housing bubble was created by deregulation, while Obamacare’s passage benefited from widespread misconception that America had a free-market health care system prior to 2010.

Until a popular intellectual movement arises that is able and willing to challenge the premises of Keynesianism, welfarism, and democratic socialism, while putting forth a positive vision of a free society, government will continue to expand. Fortunately, such a movement exists and is growing as more Americans — particularly young Americans— are studying the ideas of Liberty and working to spread those ideas. If the new liberty movement grows and stays true to its principles, it will be able to defeat the socialists of all parties, including those who call themselves conservative.


Contributed by Ron Paul of Ron Paul Institute

The Ron Paul Institute for Peace and Prosperity is a project of Dr. Paul’s Foundation for Rational Economics and Education (F.R.E.E.), founded in the 1970s as an educational organization. The Institute continues and expands Dr. Paul’s lifetime of public advocacy for a peaceful foreign policy and the protection of civil liberties at home.


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Can We Just Leave Syria Alone?

By Ron Paul | RPI | September 3, 2018

Assad was supposed to be gone already. President Obama thought it would be just another “regime change” operation and perhaps Assad would end up like Saddam Hussein or Yanukovych. Or maybe even Gaddafi. But he was supposed to be gone. The US spent billions to get rid of him and even provided weapons and training to the kinds of radicals that attacked the United States on 9/11.

But with the help of his allies, Assad has nearly defeated this foreign-sponsored insurgency.

The US fought him every step of the way. Each time the Syrian military approached another occupied city or province, Washington and its obedient allies issued the usual warnings that Assad was not liberating territory but was actually seeking to kill more of his own people.

Remember Aleppo, where the US claimed Assad was planning mass slaughter once he regained control? As usual the neocons and the media were completely wrong. Even the UN has admitted that with Aleppo back in the hands of the Syrian government hundreds of thousands of Syrians have actually moved back. We are supposed to believe they willingly returned so that Assad could kill them?

The truth is Aleppo is being rebuilt. Christians celebrated Easter there this spring for the first time in years. There has been no slaughter once al-Qaeda and ISIS’ hold was broken. Believe me, if there was a slaughter we would have heard about it in the media!

So now, with the Syrian military and its allies prepare to liberate the final Syrian province of Idlib, Secretary of State Mike Pompeo again warns the Syrian government against re-taking its own territory. He Tweeted on Friday that: “The three million Syrians, who have already been forced out of their homes and are now in Idlib, will suffer from this aggression. Not good. The world is watching.”

President Trump’s National Security Advisor, John Bolton, has also warned the Syrian government that the US will attack if it uses gas in Idlib. Of course, that warning serves as an open invitation to rebels currently holding Idlib to set off another false flag and enjoy US air support.




Bolton and Pompeo are painting Idlib as a peaceful province resisting the violence of an Assad who they claim just enjoys killing his own people. But who controls Idlib province? President Trump’s own Special Envoy for the Global Coalition to Counter ISIS, Brett McGurk, said in Washington just last year that, “Idlib province is the largest al-Qaeda safe-haven since 9/11, tied to directly to Ayman al Zawahiri, this is a huge problem.”

Could someone please remind Pompeo and Bolton that al-Qaeda are the bad guys?

After six years of a foreign-backed regime-change operation in Syria, where hundreds of thousands have been killed and the country nearly fell into the hands of ISIS and al-Qaeda, the Syrian government is on the verge of victory. Assad is hardly a saint, but does anyone really think al-Qaeda and ISIS are preferable? After all, how many Syrians fled the country when Assad was in charge versus when the US-backed “rebels” started taking over?

Americans should be outraged that Pompeo and Bolton are defending al-Qaeda in Idlib. It’s time for the neocons to admit they lost. It is time to give Syria back to the Syrians. It is time to pull the US troops from Syria. It is time to just leave Syria alone!


Contributed by Ron Paul of Ron Paul Institute


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By Ron Paul | RPI | August 27, 2018

President Trump recently imposed sanctions on Turkey to protest the Turkish government’s detention of an American pastor. Turkey has responded by increasing tariffs on US exports. The trade war is being blamed for the collapse of Turkey’s currency, the lira. While the sanctions may have played a role, Turkey’s currency crisis is rooted in the Turkish government’s fiscal and (especially) monetary policies.

In the past seven years, Turkey’s central bank has tripled the money supply and pushed interest rates down to 4.5 percent. While Turkey’s government did not adopt Ben Bernanke’s proposal to drop money from helicopters, Turkish politicians have taken advantage of easy money policies to increase subsidies for key voting blocs and special interests.

The results of the Turkish government’s inflation-fueled spending binge are not surprising to anyone familiar with Austrian economics or economic history. Turkey is now plagued with huge deficits, a collapsing currency, and a looming economic crisis, making it the next candidate for a European Union or Federal Reserve bailout.

Turkey’s combination of low interest rates, money creation, and massive government spending to “stimulate” the economy parallels the policies the US government has pursued for the past ten years. Without drastic changes in fiscal and monetary policies, economic trouble in America is around the corner.




The very large and growing federal debt will cause a major crisis as the government’s debt burden will be unsustainable. Instead of cutting spending or raising taxes, politicians can be expected to pressure the Federal Reserve to do their dirty work for them via inflation. We may even see the Fed “experiment” with negative interest rates, which would punish Americans for saving. The monetization of the federal debt will erode the dollar’s purchasing power and decimate middle-and-working-class Americans who are already seeing any gains in their incomes eaten away by inflation.

If we are lucky, the next Fed-caused downturn will cause only a resurgence of 1970s-style stagflation. The more likely scenario is the type of widespread economic chaos not seen in America since the Great Depression. The growth of cultural Marxism, the widespread entitlement mentality, and the willingness of partisans of various sides to use force against their political opponents suggests that this economic crisis will result in civil unrest that will be used to justify new crackdowns on individual liberty.

Those who understand the causes of, and cures for, our current predicament have two responsibilities. First, prepare a plan to protect your family when the crisis occurs. Second, do all you can to spread the truth in hopes the liberty movement reaches critical mass so it can force Congress to make the changes necessary to avert disaster.

Since the crisis will result in a rejection of the dollar’s world reserve currency status, individuals should consider alternatives such as gold and other precious metals. Restoring a free-market monetary system should be a priority for the liberty movement. Other priorities include ending our interventionist foreign policy, cutting spending in all areas, rolling back the surveillance state, protecting all civil liberties, and auditing (and ending) the Federal Reserve. If we do our jobs, we can build a society of peace, prosperity, and liberty atop the ashes of the welfare-warfare state.


Contributed by Ron Paul of Ron Paul Institute For Peace And Prosperity

The Ron Paul Institute for Peace and Prosperity is a project of Dr. Paul’s Foundation for Rational Economics and Education (F.R.E.E.), founded in the 1970s as an educational organization. The Institute continues and expands Dr. Paul’s lifetime of public advocacy for a peaceful foreign policy and the protection of civil liberties at home.


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By Ron Paul | Ron Paul Liberty Report | August 21, 2018

One of the most insidious ways politicians expand government is by creating new programs to “solve” problems created by politicians. For example, government interference in health care increased health care costs, making it difficult or even impossible for many to obtain affordable, quality care. The effects of these prior interventions were used to justify Obamacare.

Now, the failures of Obamacare are being used to justify further government intervention in health care. This does not just include the renewed push for socialized medicine. It also includes supporting new laws mandating price transparency. The lack of transparency in health care pricing is a direct result of government policies encouraging overreliance on third-party payers.

This phenomenon is also observed in foreign policy. American military interventions result in blowback that is used to justify more military intervention. The result is an ever-expanding warfare state and curtailments on our liberty in the name of security.

Another example of this is related to the reaction to President Trump’s tariffs. Many of America’s leading trading partners have imposed “retaliatory” tariffs on US goods. Many of these tariffs target agriculture exports. These tariffs could be devastating for American farmers, since exports compose as much as 20 percent of the average farmer’s income.




President Trump has responded to the hardships imposed on farmers by these retaliatory tariffs with a 12 billion dollar farm bailout program. The program has three elements: direct payments to farmers, use of federal funds to buy surplus crops and distribute them to food banks and nutrition programs, and a new federal effort to promote American agriculture overseas.

This program will not fix the problems caused by Tramp’s tariffs. For one thing, the payments are unlikely to equal the money farmers will lose from this trade war. Also, government marketing programs benefit large agribusiness but do nothing to help small farmers. In fact, by giving another advantage to large agribusiness, the program may make it more difficult for small farmers to compete in the global marketplace.

Distributing surplus food to programs serving the needy may seem like a worthwhile use of government funds. However, the federal government has neither constitutional nor moral authority to use money taken by force from taxpayers for charitable purposes. Government-funded welfare programs also crowd out much more effective and compassionate private efforts. Of course, if government regulations such as the minimum wage and occupational licensing did not destroy job opportunities, government farm programs did not increase food prices, and the Federal Reserve’s inflationary policies did not continuously erode purchasing power, the demand for food aid would be much less. By increasing spending and debt, the agriculture bailout will do much more to create poverty than to help the needy.

Agriculture is hardly the only industry suffering from the new trade war. Industries — such as automobile manufacturing — that depend on imports for affordable materials are suffering along with American exporters. AFL-CIO President Richard Trumka (who supports tariffs) has called for bailouts of industries negatively impacted by tariffs. He is likely to be joined in his advocacy by crony capitalists seeking another government handout.

More bailouts will only add to the trade war’s economic damage by increasing government spending and hastening the welfare–warfare state’s collapse and the rejection of the dollar’s world reserve currency status. Instead of trying to fix tariffs-caused damage through more corporate welfare, President Trump and Congress should pursue a policy of free markets and free trade for all and bailouts for none.


Contributed by Ron Paul of Ron Paul Liberty Report

The Liberty Report brings provocative opinion and analysis to the breaking issues affecting our lives and finances. It is live-cast on YouTube at 12pm ET (US) and is co-hosted by Daniel McAdams, who is the Executive Director of The Ron Paul Institute for Peace and Prosperity.


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