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Rep. Ron Paul's 1988 Libertarian presidential campaign started with great promise: A former four-term Republican US Congressman running on the ticket of America's third largest party. But it ended in failure and even scandal. Many were predicting over 1 million votes - a Libertarian record. Paul ended up with 435,000.

On the money front it was even more of a downer. By some estimates over $3.5 million was raised. Most of it was squandered on full-page NY Times ads, escapades to the Republican National Convention, and lavish luncheons for visiting Libertarian luminaries. On Election Day scores of lawyers, and accountants raided the Ron Paul for President Campaign headquarters and closed down the campaign operation. Campaign Manager Nadia Hayes was arrested by the Nassau Bay, TX Police Department and later convicted for embezzlement of roughly $140,000.

American Libertarian magazine November 1988 described the situation: "...a bizarre twist tough-talking campaign manager Nadia Hayes was sacked the day before the election. And the much awaited last minute campaign media blitz largely failed to materialize.... Paul campaign chair Burt Blumert and Paul campaign ghostwriter and direct mail fundraiser Lew Rockwell showed up... unannounced and unexpected (at HQ). Staff were told that they should leave... locksmiths turned up late in the day to change the locks on the office doors."

Three years later, an undeterred Ron Paul prepared to launch yet another presidential campaign. Many inside the Paul camp were anxious to back a more successful effort and redeem their reputations. Several had been booted from the Libertarian Party in 1989. They were on the receiving end of a mini-purge largely resulting from the scandal-ridden '88 effort.

Their new project was Ron Paul, Republican for President. The Trio of Paleo-libertarians Lew Rockwell, Burt Blumert and Murray Rothbard, conspired with ex-Libertarian Republican Organizing Committee members Justin Raimondo and Eric Garris to draft Paul to run again, this time in early GOP primaries.

Problem was Paul himself had stayed within the LP and wasn't anxious to re-join the Republicans.

In the Fall of '91 Burt Blumert, Paul's longtime partner with his Camino Coins Gold business in Burlingame, CA and the Ron Paul Investment Letter, finally secured permission from Paul to launch an exploratory committee, and to raise money for the effort. Paul himself wanted to keep all his options open, including the option of another 3rd party bid.

Soon thereafter, Blumert, who is now the publisher of LewRockwell.com contacted this reporter and asked me to run the effort on the ground. I had served as Ron Paul's travel aide in 1988, and had all the necessary contacts, particularly in critical states like New Hampshire. By December we had a few state coordinators and volunteers in place in New Hampshire ready to go. Everything was under the radar, hoping to catch the Bush people off-guard.

But two weeks before our scheduled first trip to NH Pat Buchanan muscled his way into the campaign. On PBS' McLaughlin Group, Buchanan announced that a "good source" told him "a former Congressman" was about to jump in and challenge Bush in the New Hampshire primary. .

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