Ron Paul: The Federal Reserve is the World’s Counterfeiter

Date: 7/8/2009

Corbett Daly: This is Reuters. I’m Corbett Daly in Washington. The Obama administration wants to give the Federal Reserve even more power to oversee financial institutions that could be deemed too big to fail. Republican Congressman Ron Paul of Texas wants more oversight of the Fed itself. Paul is a long-time critic of the Fed, but this time he has 250 members of Congress backing his bill that would give the Government Accountability Office the ability to audit the Fed, including monetary policy. Congressman Paul, thanks for joining us.

Ron Paul: Good to be with you.

Corbett Daly: Chairman Bernanke has said that your bill could revoke the independence of the Fed. Is that your intention here?

Ron Paul: That wouldn’t be too bad of an idea. Why should they be independent? Independent to them means secrecy, do whatever they want, spend trillions of dollars, bailout their friends, make deals with international bankers, with other central banks and other governments. No, they shouldn’t have a right to do that. We have an obligation as members of Congress to protect the people and to protect the value of the money. So to do that you have to know what the Fed is doing.

Corbett Daly: The Fed watchers say that [need] independence to be able to raise interest rates when it’s politically unpopular. I guess you think that that’s not [the case]?

Ron Paul: They also might want to lower interest rates when it’s very popular for political reasons. This idea of independence is a façade because others have done some investigation and traced the willingness of the Federal Reserve board chairman to talk to and work with the presidents. You know, when they want to be reappointed, so there is a lot political shenanigans going on with the Fed already.

So this idea that they want independence is not so. As a matter of fact, my bill really doesn’t address that subject as much because it doesn’t tell the Fed what to do, it just means that we have an obligation to know what they are doing, what kind of money they are spending and who’s getting the benefits.

Corbett Daly: The chairman has also said that giving the Congress greater oversight of the Fed would risk the stability of the dollar. Are you worried about that at all?

Ron Paul: Yeah, I’m very worried about that. That’s one of the reasons we need the audit. It is to find out what they’re doing because…

Corbett Daly: He says they are oversight of the Fed itself would risk the stability of the dollar.

Ron Paul: I don’t believe that, I think it would be the opposite. I think the fact that they can double the money supply like they did in the last year… that is horrendous amount of inflation. If you double the money supply it means that eventually you will have less money. The dollar now is worth 4 cents of what it was worth in 1913 when the Fed was established. So that tells you they’re not very good at protecting the value of money. So that’s the obligation. They should protect the value of the money, not to be the counterfeiters. They are the counterfeiters of the world, and they are protected by this secrecy.

Corbett Daly: You’ve gotten a lot of support; 250 members of Congress. How about the speaker, has she promised you that she’ll bring it to a vote?

Ron Paul: No, I haven’t personally talked to her about that. We do have some chairmen on board.

Corban Daily: Who do you have on board?

Ron Paul: Louise Slaughter is on this, as well as John Conyers, and we have 80 Democrats.

Corbett Daly: How about Chairman Frank?

Ron Paul: He’s not hostile to it. But it just wouldn’t be the thing that chairmen of a banking committee do, especially if Nancy Pelosi doesn’t want it.

Corbett Daly: So how do you hope to get it passed?

Ron Paul: It’s going to be difficult, because I know how powerful those who believe in the Federal Reserve System are. And we saw that in the Senate this week when DeMint tried to put it on to a bill and they say, “Oh no, you’re not allowed to amend an appropriation bill”. So technically they said you can’t do it. Even though he pointed out, “Well, you do it all the time!” But that means they’re lining up their ducks, they’re going to fight us to the nail; but the American people want more transparency, that’s why we have the people on our side.

Corbett Daly: Another hot topic for regulation is the Commodities Futures Trading Commission. This week they have a proposal to impose more trade restrictions on speculative trading in the energy markets. A lot of business community and some consumers say that this may go too far. Do you agree with that?

Ron Paul: Well, it was too far when they first started. I don’t believe in that kind of regulations. We didn’t have a Depression because we didn’t have enough regulation, but they said we didn’t have and that’s when the SEC and these other organizations came in. So when Enron failed they said, “We didn’t have enough regulations,” but then they passed Sarbanes-Oxley and they go on and on and they always say we need more regulations because they fail to see what causes the problem.

The problem comes from the mischief at the Fed because they create artificially low interest rates which create the atmosphere of a bubble and all the mal-investment and bad debt. So you can’t compensate by more regulations. What you want is the market to regulate this, you want people to go bankrupt. You want a correction. They don’t allow corrections.

We need a housing correction, we need the prices to go down, we need less houses being built, we need the markets to be cleared. But no, we have to keep building houses and keep the prices up and do all these things. The central economic planners doing monetary policy is the worst way in the world.

Corbett Daly: Congressman Paul, thanks for joining us.

Ron Paul: Thank you.

Corbett Daly: I’m Corbett Daly in Washington. We’ve been speaking with Congressman Ron Paul from Texas. Thanks for watching and tune in Reuters for more on the latest changes to the regulatory landscape.

  • Christine

    Get this. There is no money. The only thing that exists is debt.

    You exchange little sheets of paper with someone and they give you something for it. Someone else determines what value is in those sheets of paper. Certainly these sheets of paper are worth NOTHING. They are only worth what they tell you it is worth. They make it up! Which actually means they tell us how much of whatever we can possess.

    And they contribute NOTHING of value to society, to this world, NO-THING.

    Or, you sign a contract for a loan, which is debt.
    Or you swipe your credit card, which is not credit really, it is now debt.

    You buy something, they devalue it.
    You buy something and license it, they own it.
    You save something, they steel it and use it to create more DEBT.
    You need something…they inflate the value of it beyond affordability.

    Why do we continue to play the game?
    We have become dependent upon something that others control, yet we work and work and work towards something that gets swiped away.

    I am an advocate for a money-less world. Then we can go about our business of providing human needs freely to ensure everyone has what they need. The current system is corrupt and inhumane. Not to be tolerated if you have love in your heart for others and your self. There is just no way to live fully, to have control over our own lives with a system of debt and the controllers…who are psychopaths and care nothing about anyone.


    I am not american but i clearly agree with MR.Ron Paul. The FED has been irking the value of dollar since 1913. The paper money has lost its worth entirley because it is not being backed by gold. The banking system has inflicted the inflation. The banks have been giving loans and have increased the money supply artificially causing more and more inflation and value of money to decrease. We should know that fractional reserve banking is a big economic fraud which should be condemned.


  • Clarity

    A Note of Appreciation from the Rich:

    Let’s be honest: you’ll never win the lottery.

    On the other hand, the chances are pretty good that you’ll slave away at some miserable job the rest of your life. That’s because you were in all likelihood born into the wrong social class. Let’s face it — you’re a member of the working caste. Sorry!

    As a result, you don’t have the education, upbringing, connections, manners, appearance, and good taste to ever become one of us. In fact, you’d probably need a book the size of the yellow pages to list all the unfair advantages we have over you. That’s why we’re so relieved to know that you still continue to believe all those silly fairy tales about “justice” and “equal opportunity” in America.

    Of course, in a hierarchical social system like ours, there’s never been much room at the top to begin with. Besides, it’s already occupied by us — and we like it up here so much that we intend to keep it that way. But at least there’s usually someone lower in the social hierarchy you can feel superior to and kick in the teeth once in a while. Even a lowly dishwasher can easily find some poor slob further down in the pecking order to sneer and spit at. So be thankful for migrant workers, prostitutes, and homeless street people.

    Always remember that if everyone like you were economically secure and socially privileged like us, there would be no one left to fill all those boring, dangerous, low-paid jobs in our economy. And no one to fight our wars for us, or blindly follow orders in our totalitarian corporate institutions. And certainly no one to meekly go to their grave without having lived a full and creative life. So please, keep up the good work!

    You also probably don’t have the same greedy, compulsive drive to possess wealth, power, and prestige that we have. And even though you may sincerely want to change the way you live, you’re also afraid of the very change you desire, thus keeping you and others like you in a nervous state of limbo. So you go through life mechanically playing your assigned social role, terrified what others would think should you ever dare to “break out of the mold.”

    Naturally, we try to play you off against each other whenever it suits our purposes: high-waged workers against low-waged, unionized against non-unionized, Black against White, male against female, American workers against Japanese against Mexican against…. We continually push your wages down by invoking “foreign competition,” “the law of supply and demand,” “national security,” or “the bloated federal deficit.” We throw you on the unemployed scrap heap if you step out of line or jeopardize our profits. And to give you an occasional break from the monotony of our daily economic blackmail, we allow you to participate in our stage-managed electoral shell games, better known to you ordinary folks as “elections.” Happily, you haven’t a clue as to what’s really happening — instead, you blame “Aliens,” “Tree-hugging Environmentalists,” “Niggers,” “Jews,” Welfare Queens,” and countless others for your troubled situation.

    We’re also very pleased that many of you still embrace the “work ethic,” even though most jobs in our economy degrade the environment, undermine your physical and emotional health, and basically suck your one and only life right out of you. We obviously don’t know much about work, but we’re sure glad you do!

    Of course, life could be different. Society could be intelligently organized to meet the real needs of the general population. You and others like you could collectively fight to free yourselves from our domination. But you don’t know that. In fact, you can’t even imagine that another way of life is possible. And that’s probably the greatest, most significant achievement of our system — robbing you of your imagination, your creativity, your ability to think and act for yourself.

    So we’d truly like to thank you from the bottom of our heartless hearts. Your loyal sacrifice makes possible our corrupt luxury; your work makes our system work. Thanks so much for “knowing your place” — without even knowing it!

  • longshotlouie

    Medvedev Shows Off Sample Coin of New ‘World Currency’ at G-8

    • Christine

      The coin itself is harmless….it’s the intentions of the elite bankers, the FED and the presidents along with congress’ wild spending habits and bailouts behind the currency!

      If they impose this coin on everyone, will each country have to back their coins with something solid to control spending?

  • This issue should be simple. The fed is permitted to print the counties money. That privilege should come with some type of oversight by the group / people that are permitting it, this happens in almost any other aspect of life.

    Like the Ron Paul said the government has a responsibility to the people to make sure they are protecting the value of there money or the monetary representation of there labor.