Patriot,

The U.S. House of Representatives recently had its first hearings
on the collusion between the federal government and Big Tech.

Critical information - information Americans needed to have in
order to really understand the issues of the day was censored -
from the origins of Covid to the corruption of the Biden family.

But as I discussed in my most recent column (reproduced below),
Big Tech didn't just collude with the government, Big Tech was
practically created by the government . . . thanks to the Federal
Reserve. The Fed has been pumping easy money into the technology
sector for decades . . . and he who pays the piper calls the
tune.

Now, however, the tech bubble is bursting, and this will be yet
another bust caused by the Fed.

That's just one more reason why we need to Audit the Fed. If you
haven't already done so - or even if you have - it's always a
good time to tell your representative in Congress to Audit the
Fed.
[link removed]

And if you support the work Campaign for Liberty is doing - the
only organization focused on reining in the out-of-control
Federal Reserve that is crippling our entire economy - please
chip in a contribution to help support our work.
[link removed]

Thanks for all you do for Liberty,

Ron Paul

P.S. Here is my latest column:

The Federal Reserve's Magic Trick: Big Tech

Now you see it . . . maybe soon you won't.


"The whole tech industry of the last 15 years was
built by cheap money."

Over the last year, the seeming ability of stock values of many
technology companies to keep rising forever met resistance. This
was true even for the major technology companies known
collectively as "Big Tech." During the last 12 months, Meta
(parent company of Facebook, WhatsApp, and Instagram), Amazon,
and Alphabet (parent company of Google and YouTube) suffered
layoffs and big declines in stock prices.

These were the result of both bad decisions and changing market
conditions. For example, the end of Covid lockdowns obviously
reduced demand for Amazon's delivery services. Also, an
increasing number of people are leaving Facebook and other Meta
sites for newer social media sites. Many of those who use social
media for political organization, education, or discussion are
abandoning Facebook and YouTube for sites such as Rumble - sites
that don't deplatform individuals for sharing opinions and news
that displeases "woke" bureaucrats and politicians.

The magician in this scenario - the Federal Reserve - played a
major role in Big (and Medium and Small) tech's rise and fall.
Technology writer David Streitfeld, writing in the New York
Times, recently examined how the Fed's 2008 market meltdown
related policy of near zero interest rates led many investors to
throw money at tech companies. In many cases, these investors
would not have bought tech companies stock had the Fed not
distorted the signals sent by interest rates, which are the price
of money.

The historic expansion of the Fed balance sheet thanks to
"quantitative easing" also helped create a tech bubble. Now that
the Fed is raising interest rates (although still keeping them
well below what they would likely be in a free market), the tech
bubble is being popped as investors are able to get a more
realistic view of tech companies' value. This is causing a
painful but necessary correction.

For example, Carvana, which aimed to be the "Amazon of used cars"
went from an 80 billion dollars valuation to a 1.5 billion
dollars valuation, a 98 percent loss, in just 18 months. Also,
the Fed-created tech bubble allowed Amazon to lose millions
opening new businesses, including physical bookstores. Amazon
announced in March of last year, the same month the Fed started
increasing interest rates, that it would close all its
bookstores.

The tech bubble enabled large companies to grow via mergers and
acquisitions. Many small and startup companies attracted
investors with a promise of a big payoff from an acquisition. The
frequency of tech-related mergers and acquisitions is a major
reason behind the left's (and some people on the right's) renewed
interest in antitrust laws. Federal Trade Commission Chairman
Lina Khan owes her position to her advocacy of using antitrust to
limit the growth of big tech. Khan's crusade against Big Tech has
suffered some setbacks in the courts. However, Khan need not
worry since the Federal Reserve may do a more effective job of
limiting tech-related mergers and acquisitions than the FTC ever
could.

Sam Abuelsamid, principal analyst with Guidehouse Insights,
accurately summed up the tech industry's recent history for
Streitfeld's article: "The whole tech industry of the last 15
years was built by cheap money. Now they're getting hit by a new
reality, and they will pay the price." Federal Reserve-created
bubbles and busts are not a new reality. They have been with us
since the Fed was created and will remain until the system
collapses or until Congress audits, then ends, the Fed.


Sign and Share the Petition to Audit the Fed!

[link removed]


And after you've signed, please support our common cause with a
contribution.

Click here to chip in - whether you can give $25, $50, or $100
today, your support keeps us going.
[link removed]

If you'd prefer to donate via PayPal, please click here.
[link removed]

Join Ron Paul's Patriot Club with a monthly contribution! Your
support sustains our work and members are automatically entered
to receive special giveaways autographed by Ron Paul.
[link removed]

The mission of Campaign for Liberty is to promote and defend the
great American principles of individual liberty, constitutional
government, sound money, free markets, and a constitutional
foreign policy, by means of education, issue advocacy, and
grassroots mobilization.

© Campaign for Liberty, 2012. Paid for by Campaign for Liberty
and not authorized by any candidate or candidate's committee.

Because of Campaign For Liberty's tax-exempt status under IRC
Sec. 501(C)(4) and its state and federal legislative activities,
contributions are not tax deductible as charitable contributions
(IRC § 170) or as business deductions (IRC §
162(e)(1)).

www.CampaignForLiberty.org


This message was intended for: [email protected]
You were added to the system June 27, 2019 [More information].
Update your preferences | Unsubscribe

----Powered by Paramount Communication----
[link removed]