Missouri's 7th District, U.S. House of Representatives




Bringing LIBERTY to Capitol Hill -- 2008
Saturday Morning, September 1, 2007, 10:30am

A Discussion of The President's Saturday Morning Radio Address

Click here to listen to a replay of the September 1, 2007 Ozarks Virtual Town Hall

Notes and Summary of the Broadcast -- The Home Mortgage Mess

THE PRESIDENT: Good morning.
       This week, I met with Housing Secretary Jackson and Treasury Secretary Paulson to discuss the economy and the turbulence in our Nation's mortgage industry. The fundamentals of America's economy remain strong. But the mortgage industry is going through a period of adjustment. And some Americans are worried about the impact this is having on their ability to make their monthly mortgage payments.
       I have made it a priority to help American homeowners navigate these financial challenges, so that as many families as possible can stay in their homes. The Federal government will not bail out lenders -- because that would only make a recurrence of the problem more likely. And it is not the government's job to bail out speculators, or those who made the decision to buy a home they knew they could never afford. But I support action at the Federal level that will help more American families keep their homes.

A Christian/Libertarian Response:

1. "Do as I say, not as I do." -- Government is a Fraud

The idea of the federal government -- mortgaged to the hilt -- rescuing mortgaged homeowners is ludicrous.

When a homebuyer takes out a mortgage, he enters into a legally-binding promise to pay money he does not yet have, but hopes to earn. The Federal Government is "bankrupt" according to economists in the Federal Reserve System. A newly published paper by an economist with the Federal Reserve Bank of St. Louis warns that a ballooning budget deficit and pension-welfare timebomb has created a $65.9 trillion fiscal gap that will force the United States into bankruptcy.

Politicians have promised voters
nearly $70 TRILLION
in government benefits
which the government cannot pay for.
This is fraudulent and unethical behavior.

It is like a homebuyer signing a mortgage promising to pay a million dollars in principal and interest knowing that he will lose his job at noon and never work again. The government knows it does not have the income to keep the promises it makes.

And this is the government that's going to solve the home-lending crisis? This is our moral leader?

2. The Moral Foundation -- "The Laws of Nature and of Nature's God"

Thou shalt not steal
The Eighth Commandment: A Politician's Moral Inventory
False Weights and Measures
In an introduction to his notes on the Constitutional Convention's deliberations in Philadelphia, James Madison, the "Father of the Constitution," noted that one of the defects the Convention was assembled to remedy was that

In the internal administration of the States, a violation of contracts had become familiar, in the form of depreciated paper made a legal tender.

Accordingly, the U.S. Constitution prohibits paper money, or the emitting of "bills of credit." (Art. 1, 10, 1) That provision reads:

"No State shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make any thing but gold and silver a legal tender in payment of debts; pass any bill of attainder, ex-post-facto law, or law impairing the obligation of contracts; or grant any title of nobility." ...

In Federalist Paper No. 44, possibly the most authoritative source for constitutional interpretation, Madison explained the provision:

The extension of the prohibition to bills of credit must give pleasure to every citizen, in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the peace, from the pestilent effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people, and on the character of republican government, constitutes an enormous debt against the States chargeable with this unadvised measure, which must long remain unsatisfied; or rather an accumulation of guilt, which can be expiated no otherwise than by a voluntary sacrifice on the altar of justice, of the power which has been the instrument of it. ... No one of these mischiefs is less incident to a power in the States to emit paper money, than to coin gold or silver. The power to make any thing but gold and silver a tender in payment of debts, is withdrawn from the States, on the same principle with that of issuing a paper currency.

A paper money economy is designed to foster a consumption mentality. No one saves for the future if they know the money will be worth less. People are inclined to go into debt, rather than to work, to get the things they want NOW, rather than defer gratification for some future-oriented purpose. Thus, corporations are able to capitalize quickly, without providing goods or services which are valued by people of good character, and they can depend on debtor-consumers to buy their goods with newly-printed money. Paper money is the antithesis of everything the Hebrew-Christian religion stands for.

But can we legitimately apply Biblical laws against "unjust balances" and "divers weights" to our money today? Excuse me for being a fundamentalist, but I say Yes.

See: Banking and Money
       Monetary Policy

The borrower is the slave of the lender. (Proverbs 22:7)

3. Policy Recommendations
  • Abolish the Federal Reserve System
    • "Easy Credit" encourages debt, debases the currency
  • Abolish the IRS
    • Mortgage deductions encourage debt
  • Abolish Costly Unconstitutional Federal Programs and Agencies which force families into debt
  • Abolish Restrictions on Affordable Housing
    • Rent Controls

4. "The American Dream"

Additional Resources:

The Democrat Party Radio Address:

Illinois Congresswoman Jan Schakowsky on President Bush's failed War in Iraq.

Libertarian Response to Democrats:

See the links on last week's Ozarks Virtual Town Hall

Click here for a replay of this edition of the Ozarks Virtual Town Hall