On January 5, Ron Paul addressed the House Financial Services Committee’s hearing on the Madoff Ponzi scandal. He pointed out that Bernard Madoff was operating under the supervision of the SEC, that more regulation will only make the job of cunning fraudsters easier because they can claim to be approved by the government, and that two of the biggest government-run Ponzi schemes are the Social Security system and even the monetary system itself. These scams create a climate of fraud that sucks in the people and teaches them to imitate the government. This outrage must be stopped and it can be done by abolishing the Federal Reserve and the SEC, and returning to an honest monetary system based on gold and/or free competition in currencies.
Ron Paul: “For a good many years now, since the 1930s, every time a problem like this comes up, like in the Depression, we think that it is a lack of regulation, so we introduce regulatory agencies like the SEC, and, like after Enron, that was a major problem so we appropriate more money, and hire more people… that doesn’t do any good.
But this circumstance I think really makes my point, that the approach is completely wrong. [The approach] that the regulatory agencies are preempting people from doing bad things, just doesn’t work. There are millions and millions and millions of transactions. You can’t do it. All they do is give a false sense of security.
This is a perfect example of it. The SEC was involved with Madoff over the last decade. And that sort of gives the stamp of approval and says, “oh, must be okay”. So everybody’s guard is let down. This creates the moral hazard that allows people to make these mistakes and not to assume responsibility for themselves.
Does that mean we should ignore the problem? No! The problem comes because people commit fraud. And fraud laws are on the books. All the people involved with Enron were prosecuted under state laws of fraud, and the market took care of the stocks. But just adding on new regulations and spending millions and millions if not billions of dollars on regulating enterprise doesn’t do any good. It contributes to it. It is the problem.
We should look more to how the atmosphere is created by the Congress. If you look at the principle of fractional reserve banking, that in a way is a Ponzi scheme. This gets people doing things and building a mountain of debt… debt on debt, in this manner.
Also, if you really want to look at a big Ponzi scheme, and it is said too often that people end up doing what governments to, if we set examples, and believe me, everybody knows the Social Security system is a Ponzi scheme.
So yes, 50 billion dollars is horrendous, but what about an 8 trillion dollar loss in the stock market? So what do we do? We rush and pump in 8 trillion dollars. Where do we get the money? We create it out of thin air, furthering this whole idea of moral hazard and believing that we can create an unmanageable system.
It’s not the fault of the individuals at the SEC. They have an impossible job and they have to pretend they’re doing something to feel relevant the same way we do here in the Congress. We have to feel relevant we need the market to work, we need to get rid of the bad policies, the monetary system, and these mountains of debt. We say, well we’re relevant because we’re gonna hire more bureaucrats and we’re gonna appropriate more money we don’t have. And we’re gonna solve all our problems.
We’ve been doing this for 78 years, and we’ll do it again, but believe me, this will not solve our problems. We need to think about eliminating this whole regulatory process. And actually, we don’t need the SEC at all, and we could thrive even better and we would dwell on self-reliance, self-policing and the idea that people can’t commit fraud, but the government should not commit fraud either. We should not set an example.”
Processing your request, Please wait....
Check This Out…
[...]Here are some of the sites we recommend for our visitors[...]…
Like or Dislike:
0 
0
[...] Ron Paul talks about bringing home all of our troops, when he talks about eliminating the Federal Reserve and the Department of Education, when he talks about abolishing the Federal Income Tax and moving [...]
Like or Dislike:
0 
0
[...] of aggressiveness, not bureaucratic lassitude. But Paul wants it replaced by nothing. In 2009 he said, For a good many years now, since the 1930s, every time a problem like this comes up, like in the [...]
Like or Dislike:
0 
0
[...] wing of the Republican Party. Unfortunately, he also supports ideas like banning abortion and abolishing the Fed. Not flying at all – Obama could denounce him as naive, inexperienced (he has no executive [...]
Like or Dislike:
0 
0
[...] • Get rid of the Fed [...]
Like or Dislike:
0 
0
[...] Ron Paul (father of the recently-elected Kentucky Senator Rand Paul) — who has famously called for the abolition of the Federal Reserve – is likely to head the committee that oversees it: Paul is the ranking Republican on the [...]
Like or Dislike:
0 
0
[...] 1992 that there was a problem led Texas Congressman and Republican presidential candidate Ron Paul to call for its abolition a year [...]
Like or Dislike:
0 
0
I think Ron Pauls book “End The Fed” says it all when it comes to economics consequences. All countries can have a peaceful transition if they introduce competing currencies. Fiat currency is incredibly useful in terms of liquidity/loans but I want a sound commodity based currency for investment/savings. Presently, a person can invest in commodities but it is not nearly as easy or efficient as saving sound money.
Like or Dislike:
0 
0
Well I feel the Fed should be alive, but only when it comes to foreign policy. The income tax should either be replaced with national sales tax around 15% or a 30% tariff. Now personally I don’t favor Paul as much as I like Chuck Baldwin, because I feel his stance on immigration is better than Paul’s. Yet I never really will vote for Paul, because when it comes to foreign policy I don’t really care for him there. On economic policy I agree with him 99% of the time, but still not enough for my vote.
Like or Dislike:
0 
1
[...] to do so, will. I believe those with disabilities should be given assistance. I believe the IRS and Federal Reserve should be [...]
Like or Dislike:
0 
0
“Do we have to end fractional reserve banking at the same time?”
Absolutely, and then we have to prosecute those who started it and end the torutre, secret renditions, AIPAC/Egypt Lobbies and the rest which was caused by the Federal Reserve.
Then we can tear apart nine eleven like a fresh wound. Get rid of the Federal Fractional Reserve scam of crime and evil and give us back sound money.
Like or Dislike:
2 
0
If we end the Fed and print our own money, how do we make sure the new printers don’t cause the same kind of inflation?
Do we have to end fractional reserve banking at the same time?
Is there actually any gold in fort knox to back our own paper money?
Like or Dislike:
0 
0
americans are ASLEEP
wake up for gods sake wake up
henrymakow.com
infowars.com
goodnewsaboutgod.com
AMERICA IS GOING TO BE IN THE WORST DEPRESSION ITS EVER KNOWN
MY GOD even JIM Rogers says get rid of the federal reserve fractional banking system
and he packed his family up and MOVED TO CHINA
Like or Dislike:
1 
0
Nail on the head, Dixon.
RP is not talking about a gold standard, he’s referring to the Fractional Reserve Policies of the FED, and the fact that inflation is a constant as long as the US money supply is loaned to us at interest. This is clearly outlined in the book “Web of Debt” and movie “Zeitgeist: Addendum”. The FED is a non-private, non-government “entity” which propagates the deflation of the value of our currency, regardless of the inflation of productivity. Under a government-controlled money system outlined by Stephen Zerlanga’s American Monetary Act (http://www.monetary.org/American_Monetary_Act_version_10_feb_06.htm) the money (and therefore inflation) would be controlled by an ACTUAL government agency, subject to transparency under the freedom of information act. This worked before the FED, it would have worked with Lincoln’s Greenbacks, and it will at least improve, if not completely restore, our economy right now. However, another interesting theory is Jacque Fresco’s “Resource Based Global Economy”
It is my belief that with the intelligent management of all of the Earth’s resources, and the removal of money and any monetary system, is mandatory in order to succeed as a global human race, at the rate of population expansion, technological innovation, and rapid degradation of the environment in the last century. It is hard for me to imagine a world absent of money, trade, or barter, but the more I research the concept, the more logical and alluring it seems. Find out for yourself. http://www.thevenusproject.com
Like or Dislike:
0 
0
Matthew Stone, Sean, jacob frankerton… and i might have missed other scumbags, that are “participating” in this discussion with only one purpose…
to spam this place with loads of garbage, and to deviate from the main idea being discussed, which is to ABOLISH THE FEDERAL RESERVE SCAM and re-establish American Freedom again.
It is UNCONSTSITUTIONAL and ILLEGAL, and discussion about what we should have instead or will there be enough gold is irrelevant.
United States existed and prospered 140 years before the federal reserve leeched on and started robbing the Americans.
D. Dixon
Like or Dislike:
0 
0