Ron Paul Q&A: Audit the Fed, Then End It

For three decades, Rep. Ron Paul has waged a lonely battle in Congress to abolish the Federal Reserve. But he has more foot soldiers across the nation today, particularly after the financial crisis, who are leading the drive for wider congressional audits of the central bank. (See today’s Journal story for more on their movement.)

In his new book — “End the Fed” — released today, Rep. Paul walks through his critique of the central bank and lays out a strategy (briefly) for eliminating it. We sat down with the congressman to hear his views on a money system backed by gold, the Fed’s challenge of withdrawing its stimulus and his legislation to audit the central bank. Excerpts of the interview:

What would a world without the Fed look like?

You’d go back to the day that if you wanted to borrow money to build a house, somebody would’ve had to save some money. You wouldn’t have zero savings and all the credit in the world. That’s just a total distortion of capitalism. Capital comes from savings. The part you don’t use for everyday living which you have left over, you reinvest and you save or you loan it out. We were living with something absolutely bizarre that had nothing to do with capitalism. We had no savings whatsoever yet there was all the credit in the world.

So without the Fed, there wouldn’t be as much credit.

Yeah, it would be different. If you were selling me a car and the car was worth $10,000 and I didn’t want to pay cash, you could take credit from me. You’ve got to have something to measure it by. What is a dollar? We don’t even know what a dollar is. There’s no definition for a dollar. There’s never been a time in law that said a Federal Reserve note is a dollar. That’s the basic flaw. There’s no definition for money. We’ve built a worldwide economy on a measuring rod that varies every single day. That’s why it was fragile, and that’s why it collapsed. There was no soundness to it. So that’s why you have to have a stable unit of account.

If you live in a primitive society, you’d trade goods. And if you wanted to advance, then you would trade a universal good, which would be a coin. But we’ve become sophisticated and smart and say, ‘Oh, you don’t have to go through that. We’ll just print the money. And we’ll trust the government not to print too much, and distribute it fairly.’ That’s often just a total farce. People are realizing that it is.

Read the full interview.


  • Josh

    Dr Paul
    I sincerely hope for the sake of not only the US but the rest of the world (I’m in Australia) that you are successful in 2012.
    The effects of the actions of the Federal Reserve and reckless government Deficit spending over the past 30 years can be felt across the Globe. The fact that all currencies are tied to the US dollar means any changes made in Washington have a ripple effect around the globe.
    The way of life for everyday people struggling to pay household bills, save for their first home in an inflated property market has changed dramatically. It is strange that it is now considered routine for both parents in a family household to have to be in the workforce just to make ends meet. The downstream social effects this has on the development of todays children will be considerable.
    I sincerely hope that you can inspire the people of America to vote for you and bring control of the worlds monetary supply back under the control of the people, only then will we all be truly free and able to work together for the betterment of all mankind.

  • Tim

    Thank you so much Mr. Paul for writing your wonderful bookEND THE FED” and giving many sources for great reading. You are on the right track and I am spreading your word as fast as possible, Please run in 2012 you have EARNED my vote unlike all other politicians! AGAIN THANK YOU MR.PAUL

  • longshotlouie
  • VR

    Pray for the best, and prepare for the worst.

  • Joe

    “Wake up” – In fact, I am of the opinion that things were deseigned well BEFORE JFK was assassinated. Let’s go back a little farther. To about the time senator Aldrich snuck in the bill on a Christmas break starting the federal reserve. You asked yourself “who is behind Obama?” and “Whose puppet is he?”. Now, I have been accused of being off my rocker and little crazy, but my personal opinion is the international bankers and the fed. Rothschild was even once quoted as saying, “Give me control of a nation’s money supply and I care not who makes it’s laws”. In fact, it is MY personal opinion that it spans party lines. Republican, Democrat, it doesn’t matter they are all controlled by the same people, and it boils down to the same thing since time began…money and power. There are, Thankfully, people of good character that still know how to fight for the Constitution such as Dr. Paul. What’s even MORE amazing to me than the fact that we are becoming socialist, is that so many Americans are SUPPORTING it. They might not even know it is socialist because, of course, our educational system has been dumbing down everyone since the creation of the Federal board of education. In fact, I think that was their job. Before the board of education we had some of the highest ranks worldwide and now we aren’t anywhere near the top. I submit that this is all part of the plan at a new world order, and a one world government.

    • David Bernard Daniels

      Of course what you say is 100 percent correct especially when we are fed a Daily Dump of news from some silly newscaster named bianca or what have you on a daily basis. We have to be prepared when the dung really hits the fan! The news outlets are all dungsters, and we can trace these dungmongers back to the source of the dungstery and geuss who that is? I’ll give you a hint. It ain’t Dennis the crazy dungster or Hussein Achmad Chan!

      This is why people really seem to me to be mindless sheep. If they were not sheep they would have woken up a long time ago and Ron Paul would be in the white house where he belongs!