Aaron Task: It’s obvious that Washington DC is more important than ever to Wall Street, and it’s obvious to us at Tech Ticker that Ron Paul is very important to you, our viewers. So Tech Ticker has come to Washington and we spent some time today with the Texas Congressman to talk about many things including his efforts to audit the Fed. Congressman, thank you for being with us.
Ron Paul: Good to be with you.
Aaron Task: So you’ve been working very hard on a bill to audit the Federal Reserve. Can I ask you what is it that you’re afraid the Fed is hiding or may hide from the American people?
Aaron Task: Just about everything. I’d like to know everything they’re doing and I think we have a right to know what they’re doing. They’re very, very powerful. They can literally create trillions of dollars of credits and guarantees and not report it to us. Every nickel and dime that’s spent in this country is supposed to be appropriated money, and it’s supposed to be with the approval of Congress. In this case the Federal Reserve in these recent months of crisis has been more involved in the financial markets than the Congress itself.
Aaron Task: Right.
Ron Paul: I mean, TARP funds were small compared to what they did. We deserve to know. It’s the value of our currency that we should know about. We should know about the agreements they make, the guaranteed loans, what they do with the IMF. So every bit of that information should be known to the public.
Aaron Task: Right, so there are some people that say Ben Bernanke has taken heroic actions to help save the financial system and save the economy. Do you have concerns about how he’s conducted himself personally? You think he should be re-nominated when his current term is due?
Ron Paul: I think it’s irrelevant because he’s trying to manage a system that I think is unmanageable. A fiat dollar system is not possible to be maintained. It eventually collapses and that’s what we have been saying for years; that the financial system would collapse. The bubble was too big and it collapsed. So now we’re working on destroying the dollar, because we can’t rebuild the financial system. They keep printing the money thinking that if they just spend and print and no matter what expenditure comes before the Congress nobody hesitates. Whether it’s for a new medical care program or expanding the war overseas, trillions and trillions of dollars are being been promised. And it’s all dependent on the Federal Reserve monetizing that debt.
Aaron Task: Right.
Ron Paul: So, nobody can manage that well. So I don’t think changing the manager of the Federal Reserve would make any difference.
Aaron Task: So if the goal is to abolish the Fed what’s the purpose the auditing them to begin with?
Ron Paul: Well, one thing is that it builds a strong coalition. Barney Frank and I agree on the issue of the Fed needing more exposure. And he’s coming from the left and I come from a libertarian viewpoint. But we don’t agree on monetary policy. As a matter of fact he is very cautious about even what I’m saying on monetary policy. But I’m not dealing with monetary policy. I’m not telling the fed what to do. I don’t want to preempt them. So this brings everybody together who is sympathetic with transparency. Now why is the Congress so sympathetic to transparency right now? That’s because the American people are demanding it, because of the TARP funds and all. So the members of Congress now are responding to the American people who have woken and said, “Look, we want to know what’s going on, what’s happening to our money and why are you bailing out the rich guys and poor people are getting poorer”.
Aaron Task: Well, that’s interesting because today 175 prominent economists including several noble prize winners have signed a petition to the White House and the Congress that they are concerned about the independence of the Fed being threatened by some of the actions including this proposal to audit them, and you’re laughing, so obviously you don’t believe that that’s a real threat.
Ron Paul: Oh I do, I think they’re just coming alive. They have hired a lobbyist. That’s just their power and their power structure coming together and saying, “We’re not going to be annoyed by these people who want to know what we’re doing”. Can you imagine what would happen if we had all the records to show everything that took place between the treasury and the Federal Reserve and Goldman Sachs?
Aaron Task: That would be something else.
Ron Paul: That would be really something. This would be unbelievable, that’s why they’re ganging up. And believe me they’re lot more powerful than I am. I am just one member, I’m not a chairman. I have no clout whatsoever and yet they’re getting annoyed because the American people are waking up.
Aaron Task: Right, so you have got a lot of bipartisan support for HR 1207 in the House. It was blocked in the Senate by procedural means. Where do things stand with that? Do you still see it moving forward? You think it is going to become law someday?
Ron Paul: It’s going to have a lot of resistance, but it makes my point. You know whether we get the bill passed and we really get the audit is secondary to the importance of it, because if they block it that proves my point. Why would they block it? What are they so afraid of?
Aaron Task: Right. What are they so afraid of?
Ron Paul: If they block us it will be an even bigger incentive for the people now in this country who are rallying behind this issue, and quite frankly I wouldn’t predict that we’re going to win and get this audit.
Aaron Task: You would not?
Ron Paul: What I will predict is that we will win in the end because they’re going to destroy the dollar. It’s sort of like our foreign policy. I object to our foreign policy but I’m never going to convince people that we ought to bring our troops home. We will bring our troops home when we run out of money. So it’s the same way with this. The monetary system is going to fail and they will have a new system.
Aaron Task: Are you surprised at the amount of support you have gotten for the bill?
Ron Paul: Well, yeah. A little bit. I’m very, very pleased because I’ve been doing it for 25 years and I guess in the early 1980s I got about 18 co-sponsors. Timing is right and the condition is right and the issue is right. The people are alerted. It took to a crisis to wake up a lot of people.
Aaron Task: Right.
Ron Paul: So when you really think about it, I am disappointed why they didn’t do this before the crisis came. I was talking about this to try to prevent the bubble from being formed, but it was formed anyway. Now it’s collapsed. We cannot understand the bubble formation until we understand the intricacies of the Federal Reserve System.