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Boxed in by Neocons and the Media, Will Trump Launch Iran War? – Article by Ron Paul

Boxed in by Neocons and the Media, Will Trump Launch Iran War? – Article by Ron Paul

Ron Paul

July 22, 2019

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President Trump did the smart thing in June 19th by calling off a US airstrike on Iran over the downing of an American spy drone near or within Iranian territorial waters. According to press reports, the president over-ruled virtually all his top advisors – Bolton, Pompeo, and Haspel – who all wanted another undeclared and unauthorized US war in the Middle East.

Is Iran really the aggressive one? When you unilaterally pull out of an agreement that was reducing tensions and boosting trade; when you begin applying sanctions designed to completely destroy another country’s economy; when you position military assets right offshore of that country; when you threaten to destroy that country on a regular basis, calling it a campaign of “maximum pressure,” to me it seems a stretch to play the victim when that country retaliates by shooting a spy plane that is likely looking for the best way to attack.

Even if the US spy plane was not in Iranian airspace – but it increasingly looks like it was – it was just another part of an already-existing US war on Iran. Yes, sanctions are a form of war, not a substitute for war.

The media are also a big part of the problem. The same media that praised Trump as “presidential” when he fired rockets into Syria on what turned out to be false claims that Assad gassed his own people, has been attacking Trump for not bombing Iran. From Left to Right – with one important exception – the major media is all braying for war. Why? They can afford to cheer death and destruction because they will not suffer the agony of war. Networks will benefit by capturing big ratings and big money and new media stars will be born.

President Trump has said he does not want to be the one to start a new war in the Middle East. He seemed to prove that by avoiding the urgings of his closest advisors to attack Iran. It is hard to imagine a president having top advisors who work at cross-purposes to him, planning and plotting their wars – and maybe more – behind his back. Even Trump seems to recognize that his national security advisor is not really serving his administration well. Over the weekend he said in an interview, “John Bolton is absolutely a hawk. If it was up to him he’d take on the whole world at one time, okay?”

I think when you have a national security advisor who wants to fight the whole world at once, you have a problem. Does anyone believe we will be more secure after spending a few trillion more dollars and making a few hundred million more enemies? What does “victory” even look like?

President Trump is in a bind and it is of his own making. Iran has shown that it is not willing to take its marching orders from Washington, which means “maximum pressure” from the US will not work. He has two options remaining in that case: risk it all by launching a war or make a gesture toward peace. A war would ruin his presidency – and a lot more. I would urge the president to issue waivers to China, India, Turkey, and the others who wish to continue buying Iranian oil and invite the Iranian leadership to meet at a neutral location. And fire Bolton and Pompeo.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

Trump Should Veto Congress’s Foolish New Sanctions Bill – Article by Ron Paul

Trump Should Veto Congress’s Foolish New Sanctions Bill – Article by Ron Paul

The New Renaissance Hat
Ron Paul
July 27, 2017
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This week’s expected House vote to add more sanctions on Russia, Iran, and North Korea is a prime example of how little thought goes into US foreign policy. Sanctions have become kind of an automatic action the US government takes when it simply doesn’t know what else to do.

No matter what the problem, no matter where on earth it occurs, the answer from Washington is always sanctions. Sanctions are supposed to force governments to change policies and do what Washington tells them or face the wrath of their people. So the goal of sanctions is to make life as miserable as possible for civilians so they will try to overthrow their governments. Foreign leaders and the elites do not suffer under sanctions. This policy would be immoral even if it did work, but it does not.

Why is Congress so eager for more sanctions on Russia? The neocons and the media have designated Russia as the official enemy, and the military-industrial complex and other special interests want to continue getting rich terrifying Americans into believing the propaganda.

Why, just weeks after the White House affirmed that Iran is abiding by its obligations under the nuclear treaty, does Congress pass additional sanctions anyway? Washington blames Iran for “destabilizing” Syria and Iraq by helping them fight ISIS and al-Qaeda. Does this make any sense at all?

When is the last time Iran committed a terrorist act on our soil? It hasn’t. Yet we learned from the declassified 28 pages of the Congressional 9/11 report that Saudi Arabia was deeply involved in the 2001 attacks against Washington and New York. Who has funded al-Qaeda and ISIS in Syria for years? Saudi Arabia. Yet no one is talking about sanctions against that country. This is because sanctions are not about our security. They are about politics and special interests.

Why is Congress poised to add yet more sanctions on North Korea? Do they want the North Korean people to suffer more than they are already suffering? North Korea’s GDP is half that of Vermont – the US state with the lowest GDP! Does anyone believe they are about to invade us? There is much talk about North Korea’s ballistic missile program, but little talk about 30,000 US troops and weapons on North Korea’s border. For Washington, it’s never a threat if we do it to the other guy.

Here’s an alternative to doing the same thing over and over: Let’s take US troops out of North Korea after 70 years. The new South Korean president has proposed military talks with North Korea to try and reduce tensions. We should get out of the way and let them solve their own problems. If Iran and Russia want to fight ISIS and al-Qaeda at the invitation of their ally, Syria, why stand in the way? We can’t run the world. We are out of money.

President Trump was elected to pursue a new kind of foreign policy. If he means what he said on the campaign trail, he will veto this foolish sanctions bill and begin dismantling neocon control of his Administration.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

Trump Turns Back the Clock With Cold War Cuba U-Turn – Article by Ron Paul

Trump Turns Back the Clock With Cold War Cuba U-Turn – Article by Ron Paul

The New Renaissance Hat
Ron Paul
June 24, 2017
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Nostalgia seems to be very popular in Washington. While the neocons and Democratic Party hard-liners have succeeded in bringing back the Cold War with Russia, it looks like President Trump is determined to take us back to a replay of the Bay of Pigs!

In Miami on Friday, June 16, the president announced that he was slamming the door on one of President Obama’s few foreign-policy successes: easing 50 years of US sanctions on Cuba. The nostalgia was so strong at Trump’s Friday speech that he even announced participants in the CIA’s disastrous 1961 Bay of Pigs invasion of Cuba in the audience!

President Trump said Friday that his new policy would be nothing short of “regime change” for Cuba. No easing of US sanctions on Cuba, he said, “until all political prisoners are freed, freedoms of assembly and expression are respected, all political parties are legalized, and free and internationally supervised elections are scheduled.”

Yes, this is the same Donald Trump who declared as president-elect in December that his incoming Administration would “pursue a new foreign policy that finally learns from the mistakes of the past. We will stop looking to topple regimes and overthrow governments.” Now, in another flip-flop toward the neocons, President Trump is pursuing regime change in Cuba on the pretext of human rights violations.

While the Cuban government may not have a spotless record when it comes to human rights, this is the same President Trump who just weeks ago heaped praise on perhaps the world’s worst human rights abuser, Saudi Arabia. There, he even participated in a bizarre ceremony to open a global anti-extremism center in the home of state-sponsored extremism!

While President Trump is not overturning all of President Obama’s Cuba policy reforms – the US Embassy will remain open – he will roll back the liberalization of travel restrictions and make it very difficult for American firms to do business in Cuba. Certainly foreign competitors of US construction and travel companies are thrilled by this new policy, as it keeps American businesses out of the market. How many Americans will be put out of work by this foolish political stunt?

There is a very big irony here. President Trump says that Cuba’s bad human-rights record justifies a return to Cuba sanctions and travel prohibitions. But the US government preventing Americans from traveling and spending their own money wherever they wish is itself a violation of basic human rights. Historically it has been only the most totalitarian of regimes that prevent their citizens from traveling abroad. Think of East Germany, the Soviet Union, and North Korea. The US is not at war with Cuba. There is no reason to keep Americans from going where they please.

President Trump’s shift back to the bad old days on Cuba will not have the desired effect of liberalizing that country’s political environment. If it did not work for fifty years why does Trump think it will suddenly work today? If anything, a hardening of US policy on Cuba will prevent reforms and empower those who warned that the US could not be trusted as an honest partner. The neocons increasingly have President Trump’s ear, even though he was elected on promises to ignore their constant calls for war and conflict. How many more flip-flops before his supporters no longer recognize him?

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

When Peace Breaks Out With Iran… – Article by Ron Paul

When Peace Breaks Out With Iran… – Article by Ron Paul

The New Renaissance HatRon Paul
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This has been the most dramatic week in US/Iranian relations since 1979.

Last weekend ten US Navy personnel were caught in Iranian waters, as the Pentagon kept changing its story on how they got there. It could have been a disaster for President Obama’s big gamble on diplomacy over conflict with Iran. But after several rounds of telephone diplomacy between Secretary of State John Kerry and his Iranian counterpart Javad Zarif, the Iranian leadership – which we are told by the neocons is too irrational to even talk to – did a most rational thing: weighing the costs and benefits they decided it made more sense not to belabor the question of what an armed US Naval vessel was doing just miles from an Iranian military base. Instead of escalating, the Iranian government fed the sailors and sent them back to their base in Bahrain.

Then on Saturday, the Iranians released four Iranian-Americans from prison, including Washington Post reporter Jason Rezaian. On the US side, seven Iranians held in US prisons, including six who were dual citizens, were granted clemency. The seven were in prison for seeking to trade with Iran in violation of the decades-old US economic sanctions.

This mutual release came just hours before the United Nations certified that Iran had met its obligations under the nuclear treaty signed last summer and that, accordingly, US and international sanctions would be lifted against the country.

How did the “irrational” Iranians celebrate being allowed back into the international community? They immediately announced a massive purchase of more than 100 passenger planes from the European Airbus company, and that they would also purchase spare parts from Seattle-based Boeing. Additionally, US oil executives have been in Tehran negotiating trade deals to be finalized as soon as it is legal to do so. The jobs created by this peaceful trade will be beneficial to all parties concerned. The only jobs that should be lost are those of the Washington advocates of re-introducing sanctions on Iran.

Events this week have dealt a harsh blow to Washington’s neocons, who for decades have been warning against any engagement with Iran. These true isolationists were determined that only regime change and a puppet government in Tehran could produce peaceful relations between the US and Iran. Instead, engagement has worked to the benefit of the US and Iran.

Even though they are proven wrong, however, we should not expect the neocons to apologize or even pause to reflect on their failed ideology. Instead, they will continue to call for new sanctions on any pretext. They even found a way to complain about the release of the US sailors – they should have never been confronted in the first place even if they were in Iranian waters. And they even found a way to complain about the return of the four Iranian-Americans to their families and loved ones – the US should have never negotiated with the Iranians to coordinate the release of prisoners, they grumbled. It was a show of weakness to negotiate! Tell that to the families on both sides who can now enjoy the company of their loved ones once again!

I have often said that the neocons’ greatest fear is for peace to break out. Their well-paid jobs are dependent on conflict, sanctions, and pre-emptive war. They grow wealthy on conflict, which only drains our economy. Let’s hope that this new opening with Iran will allow many other productive Americans to grow wealthy through trade and business ties. Let’s hope many new productive jobs will be created on both sides. Peace is prosperous!

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

How Embargoes Destroy Freedom – Article by Ryan W. McMaken

How Embargoes Destroy Freedom – Article by Ryan W. McMaken

The New Renaissance Hat
Ryan W. McMaken
February 12, 2015
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In the wake of the Obama administration’s partial normalization of relations with Cuba, proponents of the embargo condemned the move, with National Review publishing an unsigned editorial claiming that allowing Americans to trade freely with the island nation amounts to giving comfort to murderous dictators. NR’s editors concluded with:

The Cuban government is not legitimate, and never has been. It is a one-party dictatorship with a gulag, an archipelago of prisons into which democrats and dissidents are thrown. We hope that the new American policy — Obama’s policy — does not benefit the Cuban dictatorship and harm Cuban democrats. We fear that yesterday was a good day for the Castros and a bad day for the Cuban people, and for American foreign policy.

This is all very interesting from an international relations perspective, and there is no doubt that the Cuban regime is a brutal regime. On the other hand, why does the brutality of the Cuban regime make it alright for the US regime to jail and persecute private American citizens who attempt to trade with people in Cuba?

That is, after all, the position of those who favor the embargo. Embargoes are not something where a magic fairy waves her wand and Cuba suddenly becomes invisible to Americans.

No, supporting an embargo means supporting the government when it fines, prosecutes, and jails peaceful citizens who attempt to engage in truly free trade. Support for an embargo also requires support for a customs bureaucracy that spies on merchants and consumers, and the whole panoply of enforcement programs necessary to punish those who run afoul of the government’s arbitrary pronouncements on what kind of trade is acceptable, and what kind is verboten. Naturally, this is all paid for by the taxpayers.

How the American Federal Government Punishes Trade

To get a taste of the reality of embargoes, one need only consult the Treasury Department’s summary of the Cuban embargo as administered by the “Office of Foreign Assets Control.”

For those who think the embargo has something to do with freedom, they might wish to consult the section on punishments for trading with people in Cuba:

Criminal penalties for violating the Regulations range up to 10 years in prison, $1,000,000 in corporate fines, and $250,000 in individual fines. Civil penalties up to $65,000 per violation may also be imposed. The Regulations require those dealing with Cuba (including traveling to Cuba) to maintain records for five years and, upon request from OFAC, to furnish information regarding such dealings.

Nothing says “freedom” like $250,000 fines and mandatory presentation of five years of private records upon demand from the federal government.

Private companies, of course, regard such potentially draconian sanctions as no joke, and companies must spend time and resources training employees and business associates to be sure that they do not find themselves in violation of federal law. This manual from Snap-on Tools is one example of how private companies must stay up to date on details such as this:

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) maintains strict embargoes banning, and lesser sanctions limiting U.S companies and their foreign subsidiaries from entering into commercial transactions with specified foreign countries, persons and business entities. Congress recently quintupled the maximum civil fines per violation of many of these sanctions from $11,000 to $50,000 (each unlawful shipment constitutes a violation), and doubled maximum potential criminal penalties assessed willful violations from 10 years to 20 years in prison. Moreover, enforcement is being given a much higher priority…

It’s easy to see why those who favor greater government intervention in the economy would have no problem with such a program, but it’s alleged defenders of free markets like the editors at National Review who appear to be most insistent that the US government keep all its agents armed and ready, and a prison cell open for anyone who violates their federal programs of choice.

Embargoes as Mercantilist Prohibition

At their heart, embargoes are nothing but a specific type of prohibition. Sometimes, the government imposes prohibitions on transactions involving certain goods, such as cannabis. Other times, the prohibition extends to all transactions with people in a certain place. The fundamentals are the same, however, in that they prohibit peaceful exchange, with heavy penalties for violators.

Moreover, embargoes are a throwback to the mercantilism of the days of yore when economic policy was viewed as a tool of international affairs, and should be designed, at least in part, to benefit the regime of the home country.

Historically, the mercantilist regimes of old tightly controlled trade opportunities which were debated as part of armistice agreements, such as the Peace of Utrech (1713) when the British were able to force the Spanish to allow exactly one ship of merchandise annually into Spanish colonies. At home, during the same era, the British state forbade its own citizens with valuable engineering knowledge from leaving the country, lest they emigrate to a foreign land and share their knowledge with foreigners. The economic needs of the state superceded those of the individual.

This is the type of economic policy that precipitated the American Revolution, when Americans in the colonies were allowed to trade with only specified nation-states and territories in such a way that was seen as advantageous to the British Crown. The freedom fighters in that conflict engaged in rampant smuggling throughout eastern North America to avoid taxes and to trade with the French and the Spanish who were hardly paragons of democratic liberalism.

Unfortunately, the Americans did not learn their lesson in the revolution, and got to work erecting their own trade restrictions by the late eighteenth century. The greatest crime of the era, however, was Thomas Jefferson’s embargo against the British which crippled the shipping and shipbuilding industries in the United States. Naturally, it was pointed out at the time that the Constitution did not permit any such action on the part of the federal government. No such quaint considerations restrain the American state or its pro-embargo allies today.

Cuba is not the only country subject to embargoes handed out by the American state, and North Korea, Iran, and Syria are in similar positions. The question is often asked as to whether or not these sanctions work. I would certainly claim that they do not work in accomplishing their stated purposes, but whether or not they work is really beside the point. Those who advocate for such embargoes need to back up a step and first prove that it is moral and legitimate for nation-states to dictate to the people who pay the bills (i.e., the taxpayers) with whom they are allowed to trade. A society that actually respects private property rights, of course, will accept no such proposition and will respect the right of private citizens to dispose of their property as they see fit. On the other hand, those who believe that it’s the prerogative of governments to micromanage private property and throw violators in prison are encouraged to move somewhere that the government can take a robust and active role in such things. Cuba, for instance.

Ryan W. McMaken is the editor of Mises Daily and The Free Market. He has degrees in economics and political science from the University of Colorado, and was the economist for the Colorado Division of Housing from 2009 to 2014. He is the author of Commie Cowboys: The Bourgeoisie and the Nation-State in the Western Genre. 
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This article was published on Mises.org and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.
North Korea: From Hermit Kingdom to Merchant Kingdom? – Article by J. Wiltz

North Korea: From Hermit Kingdom to Merchant Kingdom? – Article by J. Wiltz

The New Renaissance Hat
J. Wiltz
December 7, 2014
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Toward the end of her remarkable speech at this year’s One Young World Summit in Dublin, North Korean defector and human rights activist Yeon-mi Park listed three ways in which ordinary people can help freedom-seekers in North Korea:

One, educate yourself so you can raise awareness about the human crisis in North Korea. Two, help and support North Korean refugees who are trying to escape to freedom. Three, petition China to stop repatriation.

To this list, Swiss-born businessman Felix Abt might add a fourth suggestion: do business with them. This suggestion forms the heart of Abt’s new book, A Capitalist in North Korea: My Seven Years in the Hermit Kingdom (Tuttle Publishing 2014).

From Hermit Kingdom to Merchant Kingdom

 

Those familiar with the situation in North Korea (officially known as the Democratic People’s Republic of Korea or DPRK) will not find Abt’s title as shocking as it’s probably intended to be. Indeed, as early as 2009, and undoubtedly even before that, Western media outlets were reporting on “the secret capitalist economy of North Korea” (i.e., the black market) which sprung up in response to the famine of the mid-1990s. Writing for the Washington Post in May 2014, Yeon-mi Park herself even referred to the young people currently living in North Korea as the “Jangmadang, or ‘Black Market Generation’.”  These young people, she says, are far more individualistic than their predecessors, far less loyal to the ruling Kim regime, and infinitely more likely to be exposed to outside media and information.

Abt’s book echoes and elaborates on all of these points. Drawing on his personal experience as the foreign head of a North Korean pharmaceutical company, as well as a co-founder of the Pyongyang Business School, he details the DPRK’s early forays into franchising, customer service, online forums(!), bicycle merchants, performance incentives, and even that most un-socialist of all market activities, advertising.

These ideas and practices are still very new to the world’s most notorious “bastion of communism” (Abt’s words), but already the government is being forced to make gradual changes to its market policies. Two quick examples: “More flexible opening hours are allowed for markets, and more companies are permitted to interact with businesses abroad.”

In spite of these positive developments, however, Abt laments, “There appears to be no end in sight for the severe economic problems of the world’s most centrally planned economy.” He divides the blame for these problems among several perpetrators: (1) North Korean military policy; (2) over-dependence on foreign humanitarian aid; and (3) foreign sanctions and embargoes.

“North Korea,” says Abt, “is the most heavily sanctioned nation in the world, and no other people have had to deal with the massive quarantines that Western and Asian powers have enclosed around its economy.”

Two Steps Forward, One Step Back

 

To be sure, arguments against North Korean sanctions are a tough sell, given the country’s well-documented human rights abuses and annual nuclear threats against the United States and South Korea. Several Amazon reviewers have accused Abt of simply parroting North Korean propaganda, calling him “Pyongyang Pete” and “the Kim Dynasty’s useful idiot.”  Even many libertarians, long opposed to the Cuban embargo, can probably agree that many of North Korea’s domestic and international woes are self-inflicted.

For example, in 2006, the former president of South Korea’s largest dairy company came up with the strategy to provide every child in North Korea a daily glass of milk. “Charities and wealthy individuals committed to the project,” Abt writes, “but after Kim Jong Il’s first nuclear test, the prospect quickly vanished.”

Abt also notes that in 2007, the website DailyNK reported that North Korea spends up to 40 percent of its annual budget on monuments and celebrations dedicated to the Kim regime. Abt recounts how he “gasped” at the sheer size of these monuments, as well as other buildings like the Koryo Hotel where “up to 1000 guests can stay in 504 rooms on 45 floors.”

But read to the end of A Capitalist in North Korea and you’ll find that “fewer than a third of all hotel rooms are occupied during most weeks.” Pyongyang tourist videos on YouTube corroborate this point. On almost every day of any given year, the 504 rooms of the Koryo Hotel sit empty (a predictable side effect of the DPRK’s notoriously tight travel restrictions). This is not what an efficient allocation of resources looks like.

Moreover, the North Korean government sometimes reacts to the market activities of its foreign investors with repression and cronyism. In 2006, a Chinese-run pharmacy was closed because it posed a threat to the socialist public health system. Several years later, a German internet provider was able to lobby the government, making it impossible for other foreign-invested businesses to install their own satellite dishes.

“So how will reform come about?”

 

And yet, not one of these things — not the nuclear tests, the empty hotels, or the shady business dealings — could in any way be prevented by sanctions that target foreign banks, farm equipment, fertilizer, mobile phones, alcoholic drinks, French cheese, or luxury items. “The current sanctions have not only failed to curtail the nuclear ambitions and human rights abuses of the ambitious North Korean leader,” says Emma Campbell in a May 2013 article for East Asia Forum, “they are also constraining the actions of humanitarian NGOs trying to carry out life-saving activities inside the DPRK.”

Among these life-saving activities is the development of a market-minded merchant class that is less dependent on the regime and better able to conduct business with the outside world in a peaceful, profitable manner. While Abt is clear that doing business in North Korea is by no means a guaranteed success, he rightly sees it as one of the best methods for improving the lives of millions of North Koreans caught between domestic and foreign repression. “Business,” he writes, “is the way forward for Kim’s country … a promising way to open and change the hitherto isolated country and the course of things for the better.”

The decades-long task of opening North Korea to the outside world may very well be accomplished by first opening the outside world to North Korea.

J. Wiltz writes from Anyang, South Korea, where he teaches English and blogs at A Day with J.

This article was published on Mises.org and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.

US Sanctions on Russia May Sink the Dollar – Article by Ron Paul

US Sanctions on Russia May Sink the Dollar – Article by Ron Paul

The New Renaissance Hat
Ron Paul
August 10, 2014
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The US government’s decision to apply more sanctions on Russia is a grave mistake and will only escalate an already tense situation, ultimately harming the US economy itself. While the effect of sanctions on the dollar may not be appreciated in the short term, in the long run these sanctions are just another step toward the dollar’s eventual demise as the world’s reserve currency.

Not only is the US sanctioning Russian banks and companies, but it also is trying to strong-arm European banks into enacting harsh sanctions against Russia as well. Given the amount of business that European banks do with Russia, European sanctions could hurt Europe at least as much as Russia. At the same time the US expects cooperation from European banks, it is also prosecuting those same banks and fining them billions of dollars for violating existing US sanctions. It is not difficult to imagine that European banks will increasingly become fed up with having to act as the US government’s unpaid policemen, while having to pay billions of dollars in fines every time they engage in business that Washington doesn’t like.

European banks are already cutting ties with American citizens and businesses due to the stringent compliance required by recently-passed laws such as FATCA (Foreign Account Tax Compliance Act). In the IRS’s quest to suck in as much tax dollars as possible from around the world, the agency has made Americans into the pariahs of the international financial system. As the burdens the US government places on European banks grow heavier, it should be expected that more and more European banks will reduce their exposure to the United States and to the dollar, eventually leaving the US isolated. Attempting to isolate Russia, the US actually isolates itself.

Another effect of sanctions is that Russia will grow closer to its BRICS (Brazil/Russia/India/China/South Africa) allies. These countries count over 40 percent of the world’s population, have a combined economic output almost equal to the US and EU, and have significant natural resources at their disposal. Russia is one of the world’s largest oil producers and supplies Europe with a large percent of its natural gas. Brazil has the second-largest industrial sector in the Americas and is the world’s largest exporter of ethanol. China is rich in mineral resources and is the world’s largest food producer. Already Russia and China are signing agreements to conduct their bilateral trade with their own national currencies rather than with the dollar, a trend which, if it spreads, will continue to erode the dollar’s position in international trade. Perhaps more importantly, China, Russia, and South Africa together produce nearly 40 percent of the world’s gold, which could play a role if the BRICS countries decide to establish a gold-backed currency to challenge the dollar.

US policymakers fail to realize that the United States is not the global hegemon it was after World War II. They fail to understand that their overbearing actions toward other countries, even those considered friends, have severely eroded any good will that might previously have existed. And they fail to appreciate that more than 70 years of devaluing the dollar has put the rest of the world on edge. There is a reason the euro was created, a reason that China is moving to internationalize its currency, and a reason that other countries around the world seek to negotiate monetary and trade compacts. The rest of the world is tired of subsidizing the United States government’s enormous debts, and tired of producing and exporting trillions of dollars of goods to the US, only to receive increasingly worthless dollars in return.

The US government has always relied on the cooperation of other countries to maintain the dollar’s preeminent position. But international patience is wearing thin, especially as the carrot-and-stick approach of recent decades has become all stick and no carrot. If President Obama and his successors continue with their heavy-handed approach of levying sanctions against every country that does something US policymakers don’t like, it will only lead to more countries shunning the dollar and accelerating the dollar’s slide into irrelevance.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

Progress Toward Peace in 2013, But Dark Clouds Remain – Article by Ron Paul

Progress Toward Peace in 2013, But Dark Clouds Remain – Article by Ron Paul

The New Renaissance Hat
Ron Paul
December 22, 2013
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It is the time of year we feel a sense of joy and optimism. We are preparing for the holidays and looking to spend time with our families and friends. This year as we look back we see several developments that leave us feeling optimistic.
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A US attack on Syria was averted to a large degree because the American people did not want another Middle Eastern war. Public pressure was so strong that President Obama was forced to back down from his threats to launch missiles at Syria over an alleged Syrian government chemical attack. We have just recently discovered that US claims at the time were based on highly manipulated “intelligence.” The president narrowly avoided another Iraq debacle, where the US went to war based on lies and fabrications. This time the American people were much more skeptical. That is good news!

A US attack on Syria would have brought us one step closer to the neocons’ ultimate goal of an attack on Iran. The administration’s decision to step back from the brink with Syria has consequently opened the door to an historic US diplomatic engagement with Iran.

Yes, the neocons have suffered a number of defeats this year for which we have great reason to be thankful and optimistic. However, it would be foolish to believe that a couple of defeats will end their obsession with American exceptionalism, war, and the US global empire. Though the neocons have had several set-backs, they will continue their efforts. And there are some dark clouds on the horizon that we should closely watch.

The Senate, for example, seems intent on ruining the Christmas spirit – a time when Christians celebrate the birth of the Prince of Peace – with new threats against Iran, even as diplomacy has achieved what decades of sanctions could not.

While US Senate efforts to include new Iran sanctions language in the National Defense Authorization Act for 2014 (NDAA) were unsuccessful, those pushing for more sanctions on Iran even in the midst of a diplomatic thaw have not given up. Last week 26 Senators – drawn equally from each party — introduced the Nuclear Weapons Free Iran Act, which would impose severe new sanctions on Iran and on countries who do business with Iran.

Perhaps worse, the Act states that it is the sense of the Congress that if Israel attacks Iran, the US Congress should:

“[A]uthorize the use of military force, diplomatic, military, and economic support to the Government of Israel in its defense of its territory, people, and existence.”

Even though a “sense of Congress” has no force of law, these are the kinds of blank checks that lead to world wars. Though not binding, language like this is meant to establish US policy over time, so that if Israel does attack Iran, enough Senators will be on record supporting US involvement that they feel compelled to vote for war. This is the game they played for more than a decade with Iraq legislation.

The Senate bill is unlikely to ever become law, but even if it did, it would not succeed. Its demand that the rest of the world stop doing business with Iran just as Iran has shown such diplomatic flexibility would likely be ignored.

Congress – under the influence of the Israeli and Saudi lobbies — is seeking to derail the Obama Administration’s diplomatic efforts with Iran. We can be optimistic over the steps toward peace this past year, but we should remain vigilant. The war lobby will not give up so easily.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

You Cannot Negotiate With Iran? – Article by Ron Paul

You Cannot Negotiate With Iran? – Article by Ron Paul

The New Renaissance Hat
Ron Paul
December 2, 2013
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You cannot negotiate with Iran. That is what they told us for years. The Iranian leadership is too fanatical, they are not rational actors, they are “not like us.” One US official even recently said that deception is part of the Iranian DNA. But just over a week ago negotiations between the five permanent UN Security Council Members plus Germany and the Iranians produced an historic agreement that may be first step toward a new era in US relations with the Middle East.As Middle East expert Eric Margolis pointed out this week, for Iran’s major concessions it will only receive “$7 billion – of its own money, which has been frozen abroad by US-led sanctions.” That sounds like quite a bit of compromise for such a “fanatical” country.

Earlier this summer the same people made the same arguments about Syria. You cannot negotiate with Syrian President Assad, they said. He is insane; he is another Hitler. But not only was it possible, a deal was signed ending the threat of a US strike in exchange for Syria agreeing to give up its chemical weapons and the ability to manufacture new ones. Syria upheld its end of the agreement and the chemicals were all accounted for on schedule.

Why have the interventionists, the neocons, and the special interest groups claimed for so long that negotiation and diplomacy was tantamount to surrender; that countries such as Iran and Syria “only understand force”? It is because these groups are afraid of diplomacy. They do not want a peaceful resolution to these conflicts. They see US foreign relations only in the starkest terms: do what we say and we will give you aid, disobey us and we will bomb you.

Now the warmongers who call themselves “foreign policy experts” have been exposed. The whole world sees that they are wrong. Their advice is bad. Their limited vision of how foreign affairs should be conducted is actually dangerous to the United States. It is now clear that there are workable alternatives.

As with the US threats against Syria, public opinion polls on talks with Iran demonstrate that the American people are solidly behind diplomacy and opposed to another war. According to one recent poll, Americans support the deal reached with Iran by a margin of two-to-one.

Congress, however, is once again far behind the American people. Even as US negotiators were reaching agreement with their Iranian counterparts, US representatives and Senators were drafting legislation to increase sanctions on Iran. Instead of listening to the American people, many in Congress seem attached to special interests like the Israel and Saudi lobbies, which oppose anything less than full Iranian capitulation. Israel refuses to join the Non-Proliferation Treaty yet it seeks to dictate the rules of the treaty to those who have signed it. Saudi Arabia is desperate to control the region politically and economically, and it views an Iran that is free to sell oil and other products on the open market as a threat to Saudi power.

For too long both Israel and the Saudis have benefited from a US military guarantee. It has created “moral hazard” that only encourages more belligerent behavior on both of their parts. It remains to be seen whether this six month trial period will develop into a permanent move toward normalization of relations with Iran. What if Congress refuses to give Iran its own money back? But we are moving in the right direction and we should be optimistic.

A better US relationship with Iran may signal the beginning of the end of US meddling in the region and serve as an incentive for Saudi Arabia, Israel, and the Gulf States to solve their problems themselves. This would be a great boost to US national security, just as an Iran open to US business and trade would be a great boost to our economic security. Is peace finally breaking out? Let’s hope so.

Ron Paul, MD, is a former three-time Republican candidate for U. S. President and Congressman from Texas.

This article is reprinted with permission from the Ron Paul Institute for Peace and Prosperity.

Moving Toward War in Syria – Article by Ron Paul

Moving Toward War in Syria – Article by Ron Paul

The New Renaissance Hat
Ron Paul
August 6, 2012
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Last week the House passed yet another bill placing sanctions on Iran and Syria, bringing us closer to another war in the Middle East. We are told that ever harsher sanctions finally will force the targeted nations to bend to our will.  Yet the ineffectiveness of previous sanctions teaches us nothing; in truth sanctions lead to war more than they prevent war.

Until last year, Libyan sanctions were touted as a great success story.  The regime would change its behavior. Yet NATO bombed the country anyway.

Last week we learned that President Obama signed an intelligence “finding” directing the CIA to covertly assist rebels in Syria. The administration seems determined to fight yet another war in Syria that has nothing to do with American national interests.
We already know that a similar “finding” was signed under the latest Bush administration directing US intelligence to undermine the Iranian government and promote regime change there. Neoconservatives have long demanded that we overthrow the Syrian government before moving on to war against Iran.  This bellicosity continues regardless of which party is in the White House.

In Syria we see once again we see how our interventionist policies backfire and make us less secure.  Recent news reports point to ties between the Syrian opposition and al-Qaeda (and other extremist groups).  A recent article in the Guardian, a British newspaper, exclaimed that, “Al-Qaida turns tide for rebels in battle for eastern Syria.”  The article quotes an al-Qaeda leader in Syria saying that he meets with the main US-backed Syrian rebel organization, the Free Syrian Army, “almost every day.”  So by promoting civil war in Syria we end up fueling al-Qaeda.

According to another recent press report, German intelligence services estimate that nearly 100 terrorist attacks have been committed by al-Qaeda or related organizations in Syria over the past six months. Last month a suicide bomber in Syria killed a defense minister and several top government officials. The US government, which has been fighting a “War on Terror” for more than a decade now, refused to condemn that act of terrorism.

This raises the question of whether the US administration is supporting the same people in Syria that we have been fighting in Iraq and Afghanistan. Secretary of State Hillary Clinton expressed these same concerns earlier this year when asked whether the US has been reluctant to arm the Syrian rebels. She answered, “To whom are you delivering them? We know al-Qaida. Zawahiri is supporting the opposition in Syria. Are we supporting al-Qaida in Syria?”

That is a very good question.  It clearly demonstrates that the United States has no business at all being involved in the Syrian civil war. In the 1980s we supported a resistance movement in Afghanistan that later gave birth to elements of al-Qaeda and the Taliban. When will we learn our lesson and stop intervening in conflicts we don’t truly understand, conflicts that have nothing to do with American national interests?

Representative Ron Paul (R – TX), MD, is a Republican candidate for U. S. President. See his Congressional webpage and his official campaign website

This article has been released by Dr. Paul into the public domain and may be republished by anyone in any manner.