The Time Has Come: Let’s End The Fed!

Ron Paul addresses Congress
Channel: C-SPAN
Date: 2/25/2008


Ron Paul: Mr. Speaker, the Federal Reserve is the culprit. It has delivered this crisis to us. The Federal Reserve’s low interest policy is a big mistake; it is not a panacea. Artificially low interest rates are achieved by inflating the money supply. Low interest rates penalize the thrifty, and those who save are cheated. It promotes consumption and borrowing over savings and investing. Manipulating interest rates is an immoral act; it is economically destructive. The policy of artificially low interest rates caused our problems and therefore cannot be the solution.

The market rate of interest is crucial information for the smooth operation of the economy. A central bank setting interest rates is price fixing and is a form of central economic planning. Price fixing is a tool of socialists and destroys production. Central bankers, politicians and bureaucrats can’t know what the proper rate should be; they lack the knowledge and are deceived by their own aggrandizement. Manipulating the money supply and interest rates rejects all the principles of the free market.

Ironically, free markets and sound money generates low rates, but unlike the artificially low rates orchestrated by the Fed, this information conveyed is beneficial to investors and savers. The Congress, by conceding this authority, conveys extraordinary economic powers to the elite few. This is a power that has been abused throughout history.

Only the Federal Reserve can inflate the currency; creating new money and credit out of thin air in secrecy without oversight or supervision. Inflation facilitates deficits, needless wars and excessive welfare spending. Debasing a currency is counterfeiting; it steals value from every dollar earned or saved. It robs the people and makes them poorer; it is the enemy of the working person. Inflation is the most vicious and regressive of all forms of taxation. It transfers wealth from the middle class to the privileged rich.

The economic chaos that results from a policy of central bank inflation inevitably leads to political instability and violence; it is an ancient tool of all authoritarians. Inflating is never a benefit to freedom loving people; it destroys prosperity and feeds the fires of war. It is responsible for recessions and depressions. It’s deceptive, addictive and causes delusions of grandeur with regards to wealth and knowledge.

Wealth cannot be achieved by creating money by fiat; it instead destroys wealth and it rewards the special interests. Depending on monetary fraud for national prosperity or a reversal of our downward spiral is riskier than depending on the lottery. Inflation has been used to pay for all the wars and empires, and they all end badly.

Inflationism and corporatism engenders protectionism and trade wars. It prompts scapegoating; blaming foreigners, illegal immigrants, ethnic minorities, and too often freedom itself for the predictable events and suffering that results. Besides, the whole process in unconstitutional; there is no legal authority to operate such a monetary system. So let’s stop it. Let us restore a policy of prosperity, peace and liberty.

The time has come. Let’s end the Fed.

And I yield back the balance of my time.


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  • Robert Brown

    Why does it seem like Ron Paul is the only politician who sees what a corrupt and inherently unconstitutional government/private institution the Federal Reserve really is? 99% of politicians cannot be so blind. Why will his “End the Fed” bill receive so few votes? By controlling and enslaving the strong the weak empower themselves. Our politicians are like little punks who vandalize a masterpiece to prove they are above it. We must honestly start considering using our last recourse to freedom.

  • K.C.

    He is the man. At the end of the day, just be ready to witness history or at least be apart of the downward evolution. This country isn’t even 300 years old. Not even close to the legendary status most politicians see us as. We are a joke! 1 GIANT egotistical joke! I’m so sick of hearing America is the greatest country on earth. Says who? A bunch of Americans or some people who live in really crappy places where anything but there would do?
    Sorry, I’m not seeing a massive influx of English or Swede’s coming here. What about the massive push of French and Canadians, How about the Greeks or Italians, perhaps 2 of the most influential societies ever to exist, and exist a hell of a lot longer than 300 years. No one wants to come here anymore cause the rich have turned this place upside down. A land divided by haves and have nots and no where in the middle. I hate to say this but the people have sold out the people. Success in this country does not create a one for all but rather a all for one. People forget about anyone else except themselves. Perhaps this wash the wrong place to put this comment but I had to.

    The fed is a complete joke and had been forever. The pleasure I get from this is knowing that at some point when a empire like this collapses, no one is exempt from pain and tragedy. When the dollar is worth nothing it will level the class system and the rich will no longer be so. This may take another 100 years as evolution takes time.

    Dr. Paul is ahead of his time and a bit late I fear as no one seems to even give him a real look see. They blow him off like he’s insane. He’s not. Question. why are we typing and not marching and screaming and getting arrested to save the greatest country on earth??? why? This place will crumble from beneath us, from us, by us.

  • Ross Johnson

    The Fed Res is truely an abomination.Name another authority that has the power to steal the wealth from a nation and loan it back to them at interest.What other authority has the power not to be audited ,yet charge interest to the US public at a nominated whim?

    What other authority has the power to buy politicians and subjugate workers in an orchestrated debt trap?The only difference between us and the slaves of the past ,is that we pay for our own food and accommodation.

    The Fed Res is the most evil organisation ever perpetrated on our
    humanity.They know that they don’t have the real power since the banks produce nothing.The only power that the Fed Res have over the real economy is deception.Their power can be made void at the stroke of a pen.This is why they use leverage over politicians to attain their goals.We live under the illusion of democracy,and it is up to the individual to change the status quo.

  • Is it just me or does it seem like every time I see Ron Paul talking in congress its oddly similar to the last day’s of school.

    People moving about but not really paying attention. Administrators just going through the motions to run out the clock. The people who care(Ron Paul) are speaking and doing there work but no one is listening.

    Just a feeling of hurry up I got better things to do then be here.

    Lets hope Ron Paul gets nominated next presidential election, then the media will have to allow him in the presidential debate.

  • anon

    The Federal Reserve engineers these collapses so they can grow and expand at the expense of the American taxpayer, I for one have had enough.

  • longshotlouie

    Grab some tea bags. There’s a revolution brewing.