Response to Danny Concerning Ron Paul.

This is a follow up to my favorite Ron Paul supporter and friend Danny. I agree to a certain point that the Federal Reserve System is broken and in need of an overhaul. The government should have the ability to borrow, but I believe this should be done on a very narrow basis. Congress is the spending machine of our country and as such they have to conform to a balanced approach to spending. This is accomplished in numerous ways. They have to recognize that spending or borrowing should be more on an investment basis instead of the free way it is handled today. In investing we should look at areas such as education, infrastructure and new technology. When we do investments we will see returns of increased revenue to pay off any loans. They should be for short term and major projects, but also short term. I agree that the prospect of borrowing for expansionist wars should not be allowed. The borrowing for a war, when America is directly attacked, would be necessary, unless we built a surplus, similar to households having savings accounts to meet unexpected emergencies. One of the items I so strongly disagreed with President Bush on was him giving people a tax cut and the rebates when we had a surplus. Then he started two wars, without the funds to pay for them.

The other area that I disagree with the Federal Reserves policy is the abundance of cheap funds for the banks. When I first started with Barnett Bank almost thirty years ago, the banks generated money to lend, by attracting depositors. They paid a decent rate for savings accounts and CD's to raise funds. They then set a margin for loans. That difference between what they paid and what they lent the money at was their profits. Now they basically get free money from the Feds. They pay nothing on savings accounts and instead of lending the money, they make risky investments to boost their profits. They also garner fee income by squeezing their clients, charging for every service they can get away with. Banks also have the freedom to make risky loans because they are guaranteed by the Federal Government and agencies such as Freddie Mac. Would I be opposed to significant changes to the federal reserve system? Absolutely not. I believe the changes are necessary and long overdue. Could this be accomplished without eliminating the entire system? Yes, but if the changes are not made, over a period of time, we would have to eliminate the entire federal monetary system.

I am not so sure how a direct referendum by the people would work, if this is what you are suggesting. People tend to not support a tax unless they are directly affected. Their are needs for our society that should be met by all, for the good of all. Health care being a good example, of what is needed but yet opposed because people fear the change. I do not believe that all taxes are evil or unnecessary. We need a fair tax system to meet the general public needs and generate the necessary revenue.

Lastly, I have stated to many people over the years, there is more that we could agree upon, then disagree with, if people would place their pre-conceived ideas to the side and have a direct dialog on solutions and direction of our country. We all love America and want it to succeed and grow. Right now we are allowing partisanship politics to divide us. We need to unite and move forward.