When There Is No Rule of Law
Last week ended with some promising news on finally stopping the oil spill in the Gulf of Mexico. Unfortunately, the administration still seems to believe that shutting down working oil wells is a higher priority than effectively dealing with the broken one. They are again issuing a moratorium on off-shore drilling, while maintaining a de facto ban on new permits even for shallow water drilling, which they previously stated would be unaffected. The courts have twice declared this unconstitutional, over 70 percent of the people see this as unreasonable, yet the administration seems determined to simply end off-shore drilling, at least for those producers that cannot afford to sit idle for an unknown period of time until the ban is lifted.
Whether or not this latest effort will hold up in court is yet to be seen. Sadly, many smaller oil producers in the Gulf see the writing on the wall, and instead of waiting around and risking their livelihoods on the whims of American politicians and judges, they are leaving for friendlier business climates. What is happening to this country when the Republic of Congo is better for business than the United States? One big factor is regime uncertainty.
Regime uncertainty is the opposite of the rule of law. It is the rule of the whims of the people in charge and what mood they are in on any particular day. It is usually associated with third world dictatorships and plays a major role in why some countries remain poor. When a business cannot predict whether a government will issue a permit, confiscate or nationalize their capital investments, tax them into bankruptcy, or arbitrarily stall their operations, they tend to do business elsewhere. This type of government hostility is not conducive to wealth creation and it is tragic to see it chasing away businesses here when we need the jobs and productivity more than ever.
When the rule of law is respected, it provides business with some measure of predictability so they can plan and operate smoothly. When it is not respected, there are just too many variables, too much risk of loss or waste.
Of course, disregard of the rule of law creates other problems too. For the larger and better-connected businesses, it creates the opportunity of regulatory capture. If the government becomes too unpredictable, one business survival strategy is to become so involved in government and regulatory bodies that they effectively gain control over the very entities that are supposed to keep them in line. In other words, if you can't beat the government, become the government. A business that achieves regulatory capture is also able to write and implement laws and regulations that it can deal with, but its competitors cannot. The eventual outcome is that companies use regulation to drive everyone else out of business until a monopoly is achieved, putting consumers at its mercy.
Meanwhile, the people develop a false sense of security, assuming that the many regulatory bodies in place are protecting them. Without respect for the rule of law, however, those bodies and their regulations are more likely protecting and enabling big business at the expense of small business and the consumer.
We see this not only with big oil, but big banking, big defense contractors, you name it. This is why, especially in a crisis, we should uphold the Constitution. It is the ultimate consumer protection from crony corporatism.
Posted by Keith Allison on 09/07/10 12:08 PM
You want to talk about the lack of a "rule of law?" How about a case where a U.S. District Court judge is a defendant in a civil trial and he is given the authority to act as the jurist in his own case. Then, he basically declares himself innocent and tosses the case with prejudice. I believe the rule of law was flushed in this particular case.
Posted by Keith Allison on 08/07/10 10:15 AM
Dr. Paul: The rule of law is long gone from the United States. The only rule we see these days is how much can you pay some corrupt politician, judge, or bureaucrat to "favor" your project or business. I know of six federal judges who decide law probably based on what they receive through kickbacks rather than what the law says. They routinely dismiss cases without giving any cites of case or statutory laws, or other justification for dismissing a case for cause. Ah well, so much for the relevance of the Constitution where the law stands today.
Posted by Please Explain on 07/21/10 01:16 PM
Does anyone have any idea what Victor Barney is talking about; if so please enlighten me? If not, perhaps his rambling should not have been posted, or should be removed. Personally, I really don't like to see anything that detracts from the quality and thoughtfulness of Dr. Paul's posting be degraded by inappropriate posting.
Reply from The Daily Bell
So long as he doesn't bombard the site, he is entitled to his opinion.
Posted by Bill Ross on 07/20/10 06:51 PM
"To say it is not prudent to have a short moratorium on drilling until this well is taken care of is short sighted and political"
How long has offshore drilling been going on, safely, may I add?
The anomaly here is the BP "accident" (or false flag op, you choose).
What you suggest is equivalent to stopping all road traffic (for "study") after a particularly nasty accident and ignoring the bulk of traffic with a proven safety record.
And, the assumption that those who do the "study" are in any way competent, unbiased and free of political (read: subversion by hidden interests) is ludacrist.
As to "damned if he does and damned if he does not", this is life for all of us. Whether we do or don't do something / anything, some will agree, others will be pissed. There is no pleasing everyone " EVER.
So, choose as best you can with the facts at hand and adapt your position (choices) as more facts become available. THINK about it:
Click to view link
Ron Paul is absolutely correct. Obama cannot help attempting to achieve political goals (shut down offshore, please some) with the BP disaster while ignoring the disaster (not by word, deed). In fact, with this political goal in mind, the longer the disaster lingers (and the more it costs others), the more false political rationale that can be achieved (with idiots). From this perspective, the disaster should be nurtured, coddled and made as costly as possible. It is not a large intellectual leap from this to the false flag possibility.
This is the danger of having "problem solvers" in monopoly control. It does not take them long to realize that solved problems equals unemployment and ongoing, escalating, carefully nurtured (created) problems are very lucrative, until the parasite collapses the host. Soon.
The sheeple go "baah"
Posted by Bill on 07/20/10 06:01 PM
This CLEARLY demonstrates Paul's lack of common sense. To say it is not prudent to have a short moratorium on drilling until this well is taken care of is short sighted and political. Obama is damned if he does and damned if he does not. I will not be supporting Mr. Paul in any election. This reminds me of the time Reagan helped ram ASPARTAME into approval, beginning the day after he was elected. Don Rumsfeld, was President of SEARLE, and politics prevailed over science.
Posted by Bryan on 07/20/10 05:03 PM
Ditto to Bob Hand's post. Following the Constitution would mean nullifying about 1/2 to 3/4 of the Fed. govt; what a relief that would be!
That would of course include the Individual Income Tax, which is NOT a law.
Posted by Leonardo Pisano on 07/20/10 04:26 PM
I forgot to mention the latest disaster at BP " a Great Coffee Spill. Here is the video evidence: Click to view link
Posted by Leonardo Pisano on 07/20/10 04:20 PM
Small businesses are a pain in the neck for government. They are as individuals difficult to control. Thence, Big Corporations are encouraged, helped, etc " at the expense of the little ones. Typical control measures are regulations that take so much time if done properly, it will wipe out small businesses swiftly. And if they don't comply? Well these rascals can legally be punished, thrown in jail, or whatever is needed to make them behave.
Of course this is for the greater good to create an orderly society, to protect the little guy, and to make sure everyone benefits from what society generates " redistributed by a fair government.
Ever heard of small business who are the motor of the economy and where innovation comes from? Imho this is a dominant social sub-theme to create a feeling under small businesses that they are needed and appreciated: so they work hard and behave as good slaves should be.
Posted by Lance E. Schultz on 07/20/10 03:10 PM
Posted by Lance E. Schultz on 07/20/10 02:40 PM
Yes, and nothing in the universe screams 'Regulatory Capture' louder than the US Federal Reserve cabal whose tentacles scream into every crevace of central government and into the lives of every American. The sad fact is we have not been a nation governed by the rule of law for a very long time.
Posted by Victor Barney on 07/20/10 12:28 PM
"When There Is No Rule of Law" by Dr. Ron Paul: That is at the end time when Israel appoints over them the Anti-Messiah(Marxist by definition)and a forbidden foreigner(Deut 17:15)! Israel by the seed of Joseph(Gen 48:16), not Judah, only promised "grace" (Messiah),but not race(irony) or the name "Israel," only given to Joseph's seed, who lost his real name because he broke the 7th day covenant! Now comes the anti-messiah of the latter days! Israel appointed it's own doom! Watch! Yes, I realize that Obama now can murder us through yesterday's executive order to do so! Yes, Israel(America) repent and be saved or just die for Lucifer, the power of this world and our current President! Watch!
Posted by Ed Waggoner Sr. on 07/20/10 12:05 PM
Bill Ross said:
"I speculate that is is to restrict supply, resulting in demand driving the price of fuel through the roof, vast profits for those who have achieved "regulatory capture". Additionally, for those who think in terms of strategic US dominance (as opposed to one of many collaborative trading partners), this takes oil reserves offline and saves them for the day when rapacious US consumption has sucked the rest of the planet dry. This leaves the US as the last industrial entity standing, free to strut the planet, enslaving everyone."
The very moment the news about BP's oil leak in the gulf broke I had the exact same thoughts. A false flag operation. All the hype about gaining access to Alaska oil, middle-east oil, South American oil and on and on is all non-sense. The whole idea is to keep oil off the market. I read recently that Iran would love to flood the market with cheap oil and reject the Dollar in favor of the EURO. Cui bono?
Posted by Obewon on 07/20/10 12:03 PM
Thank you Congressman Paul for your continual fight to save the US Constitution and its amendments.
In sharp contrast, the current Obama administration believes the US Constitution and the US Bill of Rights (Amendments) are no longer important, and should be pre-empted by the federal government's wishes (and whims).
Posted by Walt on 07/20/10 10:39 AM
Corporate Communism has arrived and no one except the professional politician has taken note !!!
Posted by John Butler on 07/20/10 10:25 AM
The kleptomaniacs in Washington constitute a corporate fascism, a corporate fascistic kleptocracy. Ron Paul is accurate, and the power elite will continue to debase the currency. "Lawmakers" are becoming ever more irrelevent, because the MONEY IS BROKEN.
Posted by CP on 07/20/10 09:24 AM
Obama acts more like Chavez everyday. Us voting Americans must surely be proud of electing a dictator instead of a President. I think I'll go look for a rock to crawl under before the big BANG!!
Posted by Bill Ross on 07/20/10 09:03 AM
It is always welcome when the absence of the "rule of law" (equals rule of corrupt man) is discussed and acknowledged as the root cause of our woes and collapse of civilization, including war.
First, RP:"shutting down working oil wells is a higher priority than effectively dealing with the broken one."
I speculate that is is to restrict supply, resulting in demand driving the price of fuel through the roof, vast profits for those who have achieved "regulatory capture". Additionally, for those who think in terms of strategic US dominance (as opposed to one of many collaborative trading partners), this takes oil reserves offline and saves them for the day when rapacious US consumption has sucked the rest of the planet dry. This leaves the US as the last industrial entity standing, free to strut the planet, enslaving everyone.
I would go so far as to state that the BP disaster makes it appear "necessary" that political choices with vast benefits to the "choosers" does not pass the smell test and, pointed question in the area of "cui bono" and how, exactly the explosion occurred. BP may be a pawn, taking a hit for "the team".
Secondly, if the term "rule of law" is to be bandied about and discussed, we need to know EXACTLY what the "rule of law" IS and IS NOT:
Click to view link
Allowing / Tolerating the parochial, corrupt persons who currently occupy the bench and lawmaking positions to self-define their power and function is not too bright on the part of "we, the people"...
Posted by Stewart Wilcox on 07/20/10 08:56 AM
Thank you Dr Paul for those sensible insights. I hope you will stand for President again as we need someone in this post who has a good grasp on reality.
Posted by Puzzled on 07/20/10 08:48 AM
Yes, I believe in the Constitution! I also believe one person, no matter how often or loud we speak, can not effect change.
The American public has to realize this is the END! Of their S.S. check, Paycheck, Job, Benefits etc. Then they will get off the couch, from their big screen T.V., & get motivated. The few people with good paying jobs, like Bell Helicopter, News media, Banking, et all, will get involved.
soetoro/bernake need to get these bills passed, however! Then when we are at the bottom,as we are now, nothing left in America to take over! the terrorists will walk away, they have been successful. Our gov't has done this to us, using terrorist threat!
Then & only then, will our people get up and start this country again.
Posted by Bob Hand on 07/20/10 08:33 AM
Exactly!! And with the recent report that polls indicate that approval of "Obamacare" is gradually approaching a majority of the American people, it shows how deeply the people have developed that "false sense of security". We can only hope that the movement toward liberty will maintain and gain its momentum through its exposure on the Internet.