Ron Paul to Congress: Don’t Destroy The Dollar!

The process of this bailout reminds me of a panic-stricken swimmer thrashing in the water only making his situation worse. Even a “bipartisan deal” – whatever that is supposed to mean – will not stop the Congress from thrashing about.

The beneficiaries of the corrupt monetary system of the last three decades are now desperately looking for victims to stick with the bill after they have reaped decades of profit and privilege.

The difficulties in our economy will continue because the Legislative and the Executive branches have not yet begun to address the real problems. The housing bubble’s collapse, as was the Dot Com bubble’s collapse, was predictable and is merely a symptom of the monetary system that brought us to this point.

Indeed, we do face a major crisis but it is much bigger than the freezing up of Wall Street and dealing with worthless assets on the books of major banks. The true crisis is the pending collapse of the fiat dollar system that emerged after the breakdown of the Bretton Woods agreement in 1971.

For 37 years the world built a financial system based on the dollar as the reserve currency of the world in an attempt to make the dollar serve as the new standard of value. However since 1971, the dollar has had no intrinsic value, as it is not tied to gold. The dollar is simply a fiat currency, which has fluctuated in value on a daily, if not hourly, bias. This worked to some degree until the market realized that too much debt and malinvestment existed and a correction was required.

Because of our economic and military strength, compared to other countries, trust in America’s currency lasted longer than deserved. This resulted in the biggest worldwide economic distortion in all of history. The problem is much bigger than the fears of a temporary decline on Wall Street if the bailout is not agreed to.

Money’s most important function is to serve as a means of exchange – a measurement of value. If this crucial yardstick is not stable, it becomes impossible for investors, entrepreneurs, savers, and consumers to make correct decisions; these mistakes create the bubble that must eventually be corrected.

Just imagine the results if a construction company was forced to use a yardstick whose measures changed daily to construct a skyscraper. The result would be a very unstable and dangerous building. No doubt the construction company would try to cover up their fundamental problem with patchwork repairs, but no amount of patchwork can fix a building with an unstable inner structure. Eventually, the skyscraper will collapse, forcing the construction company to rebuild – hopefully this time with a stable yardstick. This 700 billion package is more patchwork repair and will prove to be money down a rat hole and will only make the dollar crisis that much worse.

But what politicians are willing to say that the financial “skyscraper” – the global financial and monetary system-is a house of cards. It is not going to happen at this juncture. They’re not even talking about this. They talk only of bailouts, more monetary inflation, more special interest spending, more debt, and more regulations. There is almost no talk of the relationship of the Community Reinvestment Act, HUD, and government assisted loans to the housing bubble. And there is no talk of the oversight that is desperately needed for the Federal Reserve, the Exchange Stabilization Fund, and all the activities of the President’s Working Group on financial markets. When these actions are taken we will at last know that Congress is serious about the reforms that are really needed.

In conclusion, there are three good reasons why Congress should reject this legislation:

a. It is immoral – Dumping bad debt on the innocent taxpayers is an act of theft and is wrong.

b. It is unconstitutional – There is no constitutional authority to use government power to serve special interests.

c. It is bad economic policy – By refusing to address the monetary system while continuing to place the burdens of the bailout on the dollar, we can be certain that in time, we will be faced with another, more severe crisis when the market figures out that there is no magic government bailout or regulation that can make a fraudulent monetary system work.

Monetary reform will eventually come, but, unfortunately, Congress’ actions this week make it more likely the reform will come under dire circumstances, such as the midst of a worldwide collapse of the dollar. The question then will be how much of our liberties will be sacrificed in the process. Just remember what we lost in the aftermath of 9-11.

The best result we can hope for is that the economic necessity of getting our fiscal house in order will, at last, force us to give up our world empire. Without the empire we can then concentrate on rebuilding the Republic.


  • Are there more testimonials around the site?

  • Is there a way to become a content writer for the site?

  • Jason

    Dr. Paul:

    Thank you. You are an inspiration to many. Truth will prevail!

  • BigJoeRice

    How did “we the people” get so far in a hole that we’re now fighting to get our country back from these special interest groups and people in business and government who serve only themselves.

    I’m British by birth; American by inclination and I don’t understand why Americans born and raised here, are not as inflamed with outrage as I am, a Naturalised Citizen, watching the country I now call home being turned to turds by these people.

    In November, I’m voting for anybody associated with Ron Paul and his ideals; I;m voting against anybody who votes for this bail out BS

  • Proclamation on the Federal Reserve System of the United States of America

    March 2008

    WHEREAS, Article I, Section 8 of the Constitution of the United States of America authorizes Congress “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”;

    WHEREAS, on December 13th, 1913 the US Congress enacted the Federal Reserve System;

    WHEREAS, the Federal Reserve System is considered an independent agency within the federal government, with oversight of Congress and containing appointed public officials on its board of directors;

    WHEREAS, the Federal Reserve System Controls the Federal Reserve Note, the official currency of the great nation of the United States of America;

    WHEREAS, there may be controversies regarding the legality and constitutionality of the Federal Reserve System, it is recognized that the said system has operated continuously as the central banking system of the United States since the inception of the Federal Reserve Act of 1913;

    WHEREAS, the Constitution of the United States of America granted Congress the authority to create the current Federal Reserve System, it also does grant Congress the authority to modify or revoke the Federal Reserve System;

    WHEREAS, the actions of the Fedreral Reserve System represent the credit and currency of the United Stated of America to the citizens of this great nation and to the world;

    WHEREAS, the Federal Reserve System, acting independently within the federal government allowed, supported, and even promoted parasitical and non-productive uses of the money and credit of the United States of America;

    WHEREAS, the United States and likely the entire world’s financial system is undergoing massive de-leveraging of the said parasitical and non-productive uses of the credit and money of the United States of America (as well as other nations’ currencies);

    WHEREAS, the US dollar, the “Federal Reserve Note” is declining in value due to these parasitical activites, as well as potentially other causes;

    WHEREAS, it is recognized that the citizens of the United States and other nations did willingly participate at some level in the creation and propogation of said parasitical activities;

    WHEREAS, it is also recognized that the United States of America, a sovereign nation, has the legal, moral, and God given authority to take actions to benefit its citizens and to protect its good name, credit and money in times of difficulty;

    WHEREAS, it is recognized that the current time is such a time of great difficulty;

    WHEREAS, it is recognized the parasitical financial institutions and their activities are at odds with citizens of the United States of America and the good credit and money thereof;

    WHEREAS, the current indications are that the Federal Reserve System is acting to preserve the financial system currently flooded with the parasitical activities;

    WHEREAS, the current indications are that the neither the Federal Reserve System, nor the Congress of the United States, nor the people of the United States have access to the books of the institutions being preserved by the Federal Reserve, and therefor the degree of inter-connectivity and risk associated with the institutions and other entities cannot be determined;

    WHEREAS, the Federal Reserve System is accepting non-performing assets as collateral for credit with ultimate taxpayer responibility to entities not under its constitutional mandate;

    IT MUST BE CONCLUDED, that the Federal Reserve System is not acting to the benefit of the people of the United States of America, its credit, money, and good name;

    WHEREAS, it is recognized that the political will and capability of the government of the United States of America may not be up to the task of prosecuting this proclamation ; It is also recognized that this may be the only hope for the continued survival of the United States of America as the great nation as it has historically existed.

    NOW THEREFORE, it is PROCLAIMED by those supporting this Proclamation that the Congress of the United States of America FULLY NATIONALIZE the Federal Reserve System, and take full control of the credit and money of our great nation; The Congress must take whatever action necessary to seperate out, sequester, disown, or otherwise neutralize the effect of the parasitical financial activities which led to the current crisis; The Congress of the United States of America must reorganize, replace, or terminate the Federal Reserve System as appropriate; or otherwise devise a system for creation of the national currency.

    IT IS FURTHER PROCLAIMED, that the Congress of the United States of America in cooperation with the Executive of the United States of America contact allied nations and any other nation willing to participate in the overhaul of the failing and parastical financial sytem currently in operation and create new treaties and alliances as necessary to create a sane and productive system of finance with the express goal of supporting a productive national, and by extension and through voluntary cooperation, world economy;

    FURTHERMORE, it is PROCLAIMED that it should be the goal of such an international effort to maintain fair international trading practices allowing for protection in national interest of labor, resources, and productive capabilities;

    WHEREAS, it is recognized that such a move on the part of the United States of America may result in the necessity of an isolationist policy IF the other developed nations do not follow our lead; If such occurs, so be it.


  • Theresa Jones

    Mr. Paul,

    Thank you so much for speaking out against this bailout! Hopefully, it will never pass, especially when no one has mentioned where this money will come from.

    However, if Congress insists on spending $700 billion dollars, I heard of a much better plan. It would make more sense to divide that $700 billion dollars between U.S. Citizen taxpayers (only those who actually pay taxes). This would provide approximately $300,000 each (and push everyone into a higher tax bracket). Then each Citizen would put this money back into the economy; buy houses (the mortgage crisis would be over), cars, TVs; pay off credit card debt; start businesses and create jobs; put money away for retirement in banks and stock; etc.-a better economic stimulus plan than the last one. This would do much more to save our economy than just handing money over to Wall Street.

  • I heard your interview on Glenn Beck’s show this a.m. and immediately called my Arkansas Congressman (a Democrat) and left a strong message with his office urging and warning him not to vote for the bailout.

    I’m gratified that it was defeated. I only wish I’d paid more attention to the Republican primaries when Dr. Paul was in them (I’m an independent). How I wish that he would run as an independent. I’m very impressed with his courage and willingness to speak the truth and deal with the issues with more than a stop-gap solution. Buckle up, America. It’s going to take a LOT of work to get out of the mess we’re in, and there is no quick-fix. I’m afraid that our country as a whole no longer has the character to take the hard, necessary steps for responsibility, morality, and integrity.

  • Eugene

    Well done, representatives, at least won round 1 against all expectations!!! Congratulations, that’s unbelievable!!! Some representatives apart from Ron Paul also decided to listen to the people!!!

  • Mark

    Ron Paul, I’m still voting for you whether you’re running for President or not! Maybe you can get Bob Barr as your VP? 😉

  • Ron Paul… your my hero! There has never been anyone like you in my lifetime. And it’s a shame that you were bumped out of the candidancy for president.

  • Marita

    Thank goodness someone is speaking the truth! How long do we wait for the media and every day person to mention the Federal Reserve and its power? Why is everyone avoiding talking about the REAL problem? I think we grass roots are getting weary of taking care of messes, and even though many don’t know the real causes, they are now starting to become suspicious, especially since it feels like someone is trying to sell us a timeshare condo unit, and the price is only going to be available today, but not tomorrow…
    I am trusting this is all in divine order, and that there will be good coming out of this crisis and the American spirit can be restored, and that we will be able to get rid of the Federal Reserve, rebuild our country and return to the old values that made us great.