Ron Paul on MSNBC: Audit the Federal Reserve!

Show: Morning Meeting
Channel: MSNBC
Date: 7/22/2009


Dylan Ratigan: Live pictures of testimony. Ben Bernanke currently testifying the second day on the hill, talking about too big to fail, arguing that the Federal Reserve should be in charge of monitoring too big to fail as opposed to actually creating institutions that are not too big to fail.

The Federal Reserve, of course, having proven itself unreliable at best in monitoring the financial markets over the past couple of years as a result of the largest insurance company, the largest bank, multiple investment banks, students couldn’t get student’s loans, retirees wiped out, et cetera, et cetera and the Federal Reserve still doesn’t think that they deserve to be audited, even as they carry trillions of dollars of assets on their books held against US taxpayer money, but still, no audit, Ben Bernanke says.

With us live, a man who actually thinks an audit might be in order, peculiar though that may be. I’m referring to Congressman Ron Paul, Republican and frequent Fed critic. Congressman Paul, first of all, I want to thank you so much for you taking a moment to talk with us in the course of your work day. I know the time of day is tricky. What is the resistance? Where is the resistance? Why is there resistance to your efforts to audit the Federal Reserve when reasons to do so would seem phenomenally obvious?

Ron Paul: Well, I think the resistance comes from whose interests are being challenged, so those who are involved in the Federal Reserve System, they don’t want to be challenged.

Dylan Ratigan: So who is that? Is that Goldman Sachs? Is that the previous chairman?

Ron Paul: Well…

Dylan Ratigan: Who is that?

Ron Paul: The immediate Federal Reserve Board, as well as all the banks that belong, especially the big banks and that would include people like Goldman Sachs and all the big banks because the Federal Reserve works in collusion with big banks because money is created not only by the Federal Reserve, but it’s created by fractional reserve banking.

Dylan Ratigan: Sure.

Ron Paul: And for that reason, you know, it’s an empire that they have. But those people who benefit by the system and there are a lot of benefits, deficit financing by Congress benefits.

Dylan Ratigan: Sure.

Ron Paul: And yet they’re getting to a point now where they do need to look in because they’re starting to realize that the Federal Reserve is a government unto itself. Just think, you’ve mentioned already that there are trillions of dollars involved and that they’re not appropriated, so it’s an entirely unconstitutional process of bailing out people off budget.

Dylan Ratigan: It’s not a democracy.

Ron Paul: For me, it’s an outrage.

Dylan Ratigan: Okay, it makes me laugh because when you really put all the pieces together, it makes you think about moving to Russia sometimes. Anyway, if you look … we had a conversation with Ron Wyden about healthcare and the resistance from health insurance to a more competitive environment for healthcare such that their ability to exploit the system to make lots of money is diminished.

Right now, we’re dealing with a situation where the banking infrastructure and the politicians who were bought and paid for by the banking infrastructure is trying to protect the secrecy of the Federal Reserve because the Federal Reserve right now is hiding the secrets of the American banking system. Is that a fair… is that fair?

Ron Paul: It’s absolutely correct and they say they don’t want anybody looking at anything they do under the FOMC and that would…

Dylan Ratigan: So here’s the question. So here’s the question because I think the American people are with you on this one. I think that it’s obvious that the Federal Reserve has failed the American people.

Ron Paul: Right.

Dylan Ratigan: I think the American people understand what a trillion dollar is and what, let alone, ten trillion dollar is. They also understand what it means to risk. If I take your money to Vegas and blow it all and then pay myself the winnings and stick you with the losses, which is what the banks did to the American people, what can the American people do for you to help you get an audit of the Federal Reserve for all of us.

Ron Paul: Well, continue to do what they’ve been doing. I mean, we have 275 co-sponsors in the House and I didn’t do that by myself. The American people have awoken and they have called their congressmen and now, they’re calling their senators. We’re up to 19 senators and we have to continue to do this and something will have to be done. They’re going to fight us tooth and nails and if you notice yesterday, they came out pretty hard against me in the Wall Street Journal because they don’t want to have any part of this audit, so they’re trying to discredit us and their argument now is that if they have transparency, it would cause the interest rates to go up and that’s the reason, “don’t do that because we want the right to lower interest rates or raise interest rates without any political influence,” as if presidents don’t have political influence, as if these companies that benefit as if they are not considered a political influence on the Fed.

Dylan Ratigan: Right. Well, the thing that I like about Barack Obama as a president and I can just say many things to be criticized about him as a president, but the thing that I like about him is his rhetoric that says, “I want to open the cans of worms. I want to open the can of worms that is healthcare and the health insurance cabal. I want to open the can of worms that is finance regulation and the finance cabal.” But then when I see the actions of either Democratic Party in Congress or the actions of the president himself, they tend to be much weaker than the president’s rhetoric.

The finance regulation to me was a joke. They did not address too big to fail. They didn’t address the cops working for the crooks. You can’t even get an audit of the Federal Reserve who currently warehouses all of the shenanigans of the American banking system in secret on its balance sheet. What can the president do to turn some of his rhetoric into more action on either side of the aisle to help the American people, which was the argument that he made in running for office?

Ron Paul: Well, I think he has to do but one thing, keep his promises, whether it has to do with civil liberties or foreign policy, or the financial institutions and he should just do what he says. He wanted transparency. He wanted to cut back. He wanted to bring the troops home. He wanted to protect civil liberties. He wanted to punish those who tortured, and on and on, but nothing seems to happen. That’s why his numbers are going down because the American people were very, very hopeful that we have a new President, a young guy making these promises.

Dylan Ratigan: Right, yeah. I know.

Ron Paul: Now, they’re saying, “it looks like it’s more of the same.”

Dylan Ratigan: But in his defense, he needs our help. In other words, unless the voters are pushing people like yourself in Congress and unless the press is interrogating people like yourself, it’s hard for the president to get it done alone.

I’m curious what you think he could do better to get either more support from moderates on the Democratic side or more support from moderates on the Republican side to get that Fed audit, to have a real honest solution for financial regulation, instead of just appointing a new cop. Why don’t they actually… how do we get real change as opposed to baloney?

Ron Paul: I think we continue to do what we’re doing and we’re getting more attention on this audit bill than I ever dreamed of. It has to continue. We have to, you know, we’re up to 275. We have to get 350. We have to get 60 senators to finally endorse this. If this bill came to the floor today, either in the House or Senate, I don’t know of anybody that would vote against transparency of the Fed. The arguments are so strong, but we need more grassroots effort. The president himself, like you indicated, isn’t going to do it on his own, but if he sees more pressure from the people, calling their congressman and the senators. If their congressman is not on this bill, they need to be on this bill.

Dylan Ratigan: Bingo. Bingo.

Ron Paul: We need more support.

Dylan Ratigan: Congressman, I was calling you senator all morning. I’m going to call you congressman now. We love what you’re doing. Again, continue to give them… you know, listen, all we want is information. We get information, we can work it out.

Ron Paul: That’s right.

Dylan Ratigan: But hiding information, well, Goldman Sachs collects a hundred […] and AIG supported, GM is bankrupted. There’s too much, there’s too many backroom deals being done in there and they’re basically coming out of the taxpayers’ expense, sir.

Ron Paul: And if I have one second, I’d like to emphasize what you said, is this bill doesn’t take over monetary policy.

Dylan Ratigan: Exactly.

Ron Paul: This opens up the books. Monetary policy would still be done the same way, but we would have a right to know what they did and why and for whom.

Dylan Ratigan: Yeah, and it’s almost crazy that we don’t have that when you consider the amount of authority they have to move trillions of dollars around.

Ron Paul: Right.

Dylan Ratigan: Congressman, thank you.

Ron Paul: Thank you.

  • LaVern Isely

    Dear Rep. Paul,
    This was a FANTASTIC INTERVIEW and I believe everybody in the House and Senate would approve if the facts get out. When you already have 275 in the House and 19 in the Senate, it’s obvious that there’s a real desire for us voters to know what’s going on because we’re paying the bills. After all, Ben Bernanke is running the money machine and he’s not explaining what the INVESTMENT BANKERS are up to or the TOXIC DERIVATIVES they are promoting. Do they have any value at all or are they WORTHLESS? We’re talking trillions here. Unless there’s an investigation, you would wonder if the cops are working for the crooks, which came up in the interview. I hope not. That’s why we had an election and I should hope Ben Bernanke is not reappointed as Fed Chm, without a REAL INVESTIGATION being conducted first.
    Yours truly, Overtaxed Middle Class Taxpayer, Public Citizen and AARP Member, LaVern Isely

  • peter

    The only reason they don’t want the FED audited, is bc they are afraid that their stealing and corruptness will be revealed to the massess.It already has? These people have stolen 23 trillion dollars.Bernake only answers to his puppet masters. he has sold his soul to the Devil,he knows that. Pressure pressure and expose these people for what they really are. Write to your congressman, pressure.
    If people band together they will have no chance.They are afraid very afraid.As people all over the world are waking up.

  • longshotlouie

    Obama dispatched his top economic (Goldman Sach’rs) officials – Treasury Secretary Timothy Geithner, National Economic Council Director Lawrence Summers, White House budget director Peter Orszag and Federal Reserve Chairman Ben Bernanke – to ‘try’ to reassure China that the U.S. will not let deficits or inflation jeopardize the value of Chinese investments.

    U.S. briefers said the president’s team told the Chinese that the United States was committed to making sure the economic and monetary stimulus being used to fight the recession did not fuel inflation.

    China, a major shareholder in USA Corp. When they cash out, ….. well, you don’t want to think about that possibility.

  • No Problem
  • Christine

    Excellent, excellent, excellent! MSNBC is with Ron Paul and our campaign for liberty. Considering that most of our media has been bought off, we have to appreciate this news comentator and his questioning, his conclusions about the FED. It’s exciting to see people wake up to the truth.

    If all of Washington D.C. would just focus on this one issue, the FED, they would truly begin to solve all of the other problems, honestly. There is power in numbers.


    • Christine:

      MSNBC is a progressive rag. They are so establishment.
      I understand your excitement about the Ron Paul interview.
      It was totally unexpected coming from MSNBC, but know
      that they completely support the “powers that be”. I
      am surprised that the news commentator still has
      employment with them!

      • Christine

        Me too. It’s just good to see, even if it is extremely rare.

        Some media may be utilizing this occassional newscast covering the truth as a means of self-preservation, just to cover all their bases.

        The future is not here yet and the dynamics can turn sharply in favor of truth and preservation of liberty, as most of us here are working towards.

        We appreciate the broadcast of the truth so the public becomes more educated in the truth. Every little bit can cause someone to question their mistaken beliefs and trust in our current corrupt government as it is. The difficulty, as we all know, is that the public at large has to wade through a lot of shock and bunk to get to the truth and this causes confusion initially, until they do what each of us has chosen to do, dig deeper and research the facts and get involved in this revolution to get back to making decisions based on our country’s foundational documents as our guiding principles and inform the public when our government is manipulating us in their attempt to fulfill a totally different agenda.

        • Christine:

          Very well put!!!!! I did not mean to sound negative
          about Ron Paul’s interview with MSNBC. Obviously, you
          see more positive than I did initially. But you are absolutely right in your assessment of the facts; I
          stand corrected. I tend to get disillusioned with
          ALL the obstacles that are before us all, and sometimes
          I miss seeing the tree because of the forest. I need
          to be more objective in my thinking. Anyway, I see
          a better picture of the interview now. Keep up the
          good fight!

          • Christine

            Yes indeed. Once we see, there is no turning back. There’s just this desire to uncover all that is not true, to learn the truth so we have a clear understanding and a path for ourselves and others, come what may.

            I like how Ron Paul’s “Revolution” logo emphasises Love (spelled in reverse). Love is what this campaign is really all about. To live free with liberty in the pursuit of happiness, for all.

  • VR

    “What is needed here is a return to the Constitution of these United States.

    “The old struggle that was fought out here in Jackson’s time must be fought out over again. The independent United States Treasury should be reestablished and the Government should keep its own money under lock and key in the building the people provided for that purpose.

    “Asset currency, the devise of the swindler, should be done away with. The Fed should be abolished and the State boundaries should be respected. Bank reserves should be kept within the boundaries of the States whose people own them, and this reserve money of the people should be protected so that the International Bankers and acceptance bankers and discount dealers cannot draw it away from them.

    “The Fed should be repealed, and the Fed Banks, having violated their charters, should be liquidated immediately. Faithless Government officials who have violated their oaths of office should be impeached and brought to trial.

    “Unless this is done by us, I predict, that the American people, outraged, pillaged, insulted and betrayed as they are in their own land, will rise in their wrath, and will sweep the money changers out of the temple.

    “Mr. Chairman, the United States is bankrupt: It has been bankrupted by the corrupt and dishonest Fed. It has repudiated its debts to its own citizens. Its chief foreign creditor is Great Britain, and a British bailiff has been at the White House and the British Agents are in the United States Treasury making inventory arranging terms of liquidations!”

    Congressman McFadden
    on the Federal Reserve Corporation
    Remarks in Congress, 1934

    • VR:

      Your four statements above are most excellently put!!!!!
      Flawless are your opinions stated!!!!!

  • VR

    “Mr. Chairman, within the limits of the time allowed me, I cannot enter into a particularized discussion of the Fed. I have singled out the Fed currency for a few remarks because there has lately been some talk here of “fiat money”. What kind of money is being pumped into the open discount market and through it into foreign channels and stock exchanges? Mr. Mills of the Treasury has spoken here of his horror of the printing presses and his horror of dishonest money. He has no horror of dishonest money. If he had, he would be no party to the present gambling of the Fed in the nefarious open discount market of New York, a market in which the sellers are represented by 10 discount corporations owned and organized by the very banks which own and control the Fed.

    “Fiat money, indeed!

    “What Mr. Mills is fighting for is the preservation, whole and entire, of the banker’s monopoly of all the currency of the United States Government.

    “Mr. Chairman, last December, I introduced a resolution here asking for an examination and an audit of the Fed and all related matters. If the House sees fit to make such an investigation, the people of these United States will obtain information of great value. This is a Government of the people, by the people, for the people. Consequently, nothing should be concealed from the people. The man who deceives the people is a traitor to these United States.

    “The man who knows or suspects that a crime has been committed and who conceals and covers up that crime is an accessory to it. Mr. Speaker, it is a monstrous thing for this great nation of people to have its destinies presided over by a traitorous government board acting in secret concert with international usurers.

    “Every effort has been made by the Fed to conceal its powers- but the truth is- the Fed has usurped the Government. It controls everything here and it controls all of our foreign relations. It makes and breaks governments at will.

    Congressman McFadden
    on the Federal Reserve Corporation
    Remarks in Congress, 1934

  • VR

    “Are you going to let these thieves get off scot free? Is there one law for the looter who drives up to the door of the United States Treasury in his limousine and another for the United States Veterans who are sleeping on the floor of a dilapidated house on the outskirts of Washington?

    “The Baltimore and Ohio Railroad is here asking for a large loan from the people, and the wage earners and the taxpayers of these United States. It is begging for a handout from the Government. It is standing, cap in hand, at the door of the R.F.C. where all the jackals have gathered to the feast. It is asking for money that was raised from the people by taxation and wants this money of the poor for the benefit of Kuhn, Loeb and Co., the German International Bankers.

    “Is there one law for the Baltimore and Ohio Railroad and another for the hungry veterans it threw off its freight cars the other day? Is there one law for sleek and prosperous swindlers who call themselves bankers and another law for the soldiers who defended the flag? “The R.F.C. is taking over these worthless securities from the Investment Trusts with United States Treasury money at the expense of the American taxpayer and the wage earner.

    “It will take twenty years to redeem our Government. Twenty years of penal servitude to pay off the gambling debts of the traitorous Fed and to vast flood of American wages and savings, bank deposits, and the United States Government credit which the Fed exported out of this country to their foreign principals.

    “The Fed lately conducted an anti-hoarding campaign here. They they took that extra money which they had persuaded the American people to put into the banks- they sent it to Europe- along with the rest. In the last several months, they have sent $1,300,000,000 in gold to their foreign employers, their foreign masters, and every dollar of that gold belonged to the people of these United States and was unlawfully taken from them.”

    Congressman McFadden
    on the Federal Reserve Corporation
    Remarks in Congress, 1934

  • VR

    “This is the John Law swindle over again. The theft of Teapot Dome was trifling compared to it. What King ever robbed his subject to such an extent as the Fed has robbed us? Is it any wonder that there have been lately ninety cases of starvation in one of the New York hospitals? Is there any wonder that the children are being abandoned?

    “The government and the people of these United States have been swindled by swindlers deluxe to whom the acquisition of American or a parcel of Fed Notes presented no more difficulty than the drawing up of a worthless acceptance in a Country not subject to the laws of these United States, by sharpers not subject to the jurisdiction of these United States, sharpers with strong banking “fence” on this side of the water, a “fence” acting as a receiver of a worthless paper coming from abroad, endorsing it and getting the currency out of the Fed for it as quickly as possible exchanging that currency for gold and in turn transmitting the gold to its foreign confederates.”

    Congressman McFadden
    on the Federal Reserve Corporation
    Remarks in Congress, 1934

  • Mayor of Simpleton

    The FED has created a huge monetary base with long-run potential to be loaned into the economy. This is a situation that it cannot allow to happen without disastrous consequences. Bank reserves are a large component of that monetary base. To sterilize (or neutralize their lending potential), the FED can pay interest on reserves. There is no free lunch here for the FED. It could be doing this for many years to come, during which time it becomes harder for it to handle its monetary actions. Paying interest on bank reserves of $800 billion at 3 percent, say, costs $24 billion a year. The FED ordinarily turns its earnings over to the Treasury. This means that the FED’s earnings will be $24 billion lower (it going to the banks to sterilize their reserves) and the revenues to the government are $24 billion lower.

    Follow the money: The FED buys mortgage-backed securities. The government ends up giving up $24 billion annually to the FED who pays it to the banks. The present value of this is a very substantial amount of wealth transferred from taxpayers to the banks. Bank stocks will go up in price when the FED starts paying higher interest on reserves, if not sooner.

  • E Perez Jones


    1- Health as a personal issue may be similar to a ‘good’, but patients (an ill person) CAN NOT be considered a client of a business. Because that would change the mission of the health care sector.

    *** Are we there?

    *** people dying from serious illnesses are loosing their right to life (why so many?) so that may be the reason for the public outcry as a right.

    2- If the People are to contribute to the health system discussion effectively, I think we need to know:

    What exactly is this system, how many sectors, how many people (please include the first step in the chain, basic research), how much money goes in it from private sector and from tax payers, how many jobs it provides, AND the results per sector.

    *** the PEOPLE have never cared to know and WE should.

    3- A very important question to ask is why do we have so many sick people?

    *** we need real numbers compared to other health systems, then make a fast decision tailored to USA. Globalization and free market is good, but WE still need to be part of a country, or shall we start picking services throughout the globe, erase borders and have no country names/symbols/institutions, and start having global elections and constitutions?

    3- How come is it that most people shown on internet and all this campaigns look sooo very healthy, bust most people you encounter every day, even among the wealthiest town in USA, look soooo run down and wild???

    *** Start by creating millions of jobs and the numbers of real illnesses will become clear. Or at least let the little DO THAT.

    I have no doubt the health care system is a strong pilar of society, or should be, in terms of REAL health and SOLID economics since it contributes a fixed minimum of essential jobs that can be counted on, they are predictable and can be further adjusted to population growth and status.

    We NEED A REAL WORLD, please. It comes to my mind: forgive them father, for they don’t know what they are doing.

    • E Perez Jones

      Excuse me, I left my comment in the wrong section, it belongs to the health system section below.

      Well, it fits in it, since for what is presented the federal reserve must be sick too!