Central Bankers, Stop Stealing Our Money!

Secret debts incurred by central bankers without the consent of the people should be declared null and void, argues Ron Paul in his latest Texas Straight Talk update.

Date: 05/17/2010

The Government as Identity Thieves

by Ron Paul

The spotlight remains on the Greek sovereign debt crisis as the riots continue. The terms of the Greek bailout from the IMF and Eurozone countries remain contentious with citizens on all sides. Europeans hate having their governments throw public money away as much as Americans do. The Greeks are not happy about having their taxes raised while their pensions and salaries are cut. Meanwhile, it is rumored by the Financial Times, AFP and others that Greece may spend more than it saves from austerity measures on arms deals with Germany, France and the US as a potential condition of receiving bailout funds. If true, it is certainly not unprecedented for the global military industrial complex to benefit from deals made by their friends in the central banking community. After all, war is the health of the state. The last thing big government proponents want is for peace to break out in the world.

This free flow of fiat money from around the globe to Greece will not really save Greece as much as it will grant a temporary reprieve to central bankers from the consequences of their mistakes. Sadly, this will come at the expense of the Greek people and taxpayers in Europe and America. Taxpayers are of no consequence to either European or American central bankers. Even the mere desire for complete information on what they are up to in our name is rebuffed, as we saw last week in the Senate with the failure of Senator Vitter’s amendment containing my language to fully audit the fed. The hubris of powerful and secretive central bankers seems to know no bounds.

If someone incurred debts against you as an individual, without your knowledge or consent, you would call it identity theft. You would call your bank for a full accounting of the debts incurred in your name, and after some verification, those debts would be declared invalid and you would not be held responsible for them. Furthermore, if the culprit was found, they would be prosecuted and sent to jail.

Not so with governments and central banks. Governments that are supposed to be of the people and for the people routinely incur debts against the people. Some governments even borrow money to oppress their citizens, and then expect them to pay for their own oppression with interest. With a fiat monetary system, the sky is the limit for how much debt a government can place on the backs of the people.

We have reached the point in the United States where the debt our government has accumulated against us is mathematically impossible to pay off. Harder times, likely due to a wave of hyperinflation, will eventually find its way to our streets and I am fearful of how Americans will react. My hope is that we will come together peacefully and help each other, and that enough of us will be aware that the blame rests securely on the shoulders of the Federal Reserve and the special interests. They should not be looked to for salvation. They should not be given more power. Rather, they should be stripped of the powers that allowed them to create this mess in the first place.

Resistance to public transparency regarding public debts should be denounced in the strongest of terms, and the central bankers that incurred them should be seen as no better than common identity thieves.

  • Citizen

    Fractional Reserve Central banking has always been the favorite tool of all corrupt Governments to finance Offensive Warfare.

    Absent the FED, our Government wouldn’t have the funds to pay for the Afgan or Iraq wars. Instead of raising taxes they simply counterfeit currency, it easier and doesn’t show up until its too late.

    Dr Paul has sponsored legislation to attack the issue from three (3) directions,
    1. Audit the Fed,
    2. Competing currency,
    3. Bi-metal currency backing as required by the Constitution

    Without these restraints and alternate options Americans are screwed because the Federal Reserve Notes, will decline in purchasing power to the point where the Wiemar Republic was; a loaf of bread for a wheelbarrow of paper!


    • fred the protectionist

      Libertarian say: “Fractional Reserve Central banking has always been the favorite tool of all corrupt Governments to finance Offensive Warfare.”

      Oh, so all those wars in human history prior to 1913 never happened. Okey Dokey Smokey.

      • EndtheFed

        I take it Fred has never heard of a central bank before the Federal Reserve.

        The First Bank of America came into existence in 1791. That’s just in America.

        • fred the protectionist

          The First Bank of the United States was prohibited to engage in Fractional Reserve Banking and neither were they forcing private banks to hold 10% reserves.

          But I wasn’t just talking exclusively about the US, Kemosabe. You know the world is greater then the US, there are other world’s out there.

          Libertarian say: “Fractional Reserve Central banking has always been the favorite tool of all corrupt Governments to finance Offensive Warfare.”

          So all wars before 1913 didn’t exist?

  • I wouldn’t want Fred to run for president, because there is no telling what he might do to us.

    • fred the protectionist



      Prior to the 1800s, savers looking to keep their valuables in safekeeping depositories deposited gold coins and silver coins at goldsmiths, receiving in turn a note for their deposit (see Bank of Amsterdam). Once these notes became a trusted medium of exchange an early form of paper money was born, in the form of the goldsmiths’ notes.[3]

      As the notes were used directly in trade, the goldsmiths observed that people would not usually redeem all their notes at the same time, and they saw the opportunity to invest their coin reserves in interest-bearing loans and bills. This generated income for the goldsmiths but left them with more notes on issue than reserves with which to pay them. A process was started that altered the role of the goldsmiths from passive guardians of bullion, charging fees for safe storage, to interest-paying and interest-earning banks. Thus fractional-reserve banking was born.”

      • fred the protectionist

        Oh ma gawd, fractional reserve banking without the FED and on a gold standard nonetheless. http://www.youtube.com/watch?v=XNvo3-aRwEc

        • EndtheFed

          Not surprisingly, your WIKIPEDIA history is not accurate, and is biased towards a keynesian-ish mentality.

          Fractional reserve banking was not necessary for the goldsmiths to be considered “banks”. In fact, as soon as they began holding gold in exchange for “goldsmith notes”, they became money warehouses. The notes they handed out were in fact warehouse receipts that entitled their holders to their own property. They could easily have been “interest paying and interest earning” without fractional reserve banking, simply by establishing term limits and by taking care to make sure to have not loaned out the property on the day that particular property is due to be returned. This is what most people would assume banks do now, however the fact of the matter is that all banks are insolvent.

          As soon as the goldsmiths began handing out more warehouse receipts for gold than there was gold in their vaults, they became fraudulent. By loaning out money that isn’t theirs and essentially making a profit by risking someone elses asset, they have arguably committed a theft. Try starting a storage warehouse that “loans out” it’s clients belongings in the private sector.

          So, what happens when the fraudulent goldsmith is found out to be insolvent, and everyone makes a bank run? Well, we better devise a system for “lending of last resort” to navigate these disastrous bank runs. In comes the central bank. Supposedly, providing for a place that the goldsmith can borrow the money he needs in order to make up for his shortfall upon repudiation, the central bank is going to put a stop to bank runs once and for all. The part the goldsmiths don’t want us to figure out, is that there can only be a “lender of last resort” by diluting the value of all paper receipts already in existence. Since the central bank can’t print gold out of thin air, or resources out of thin air, all it can do is provide another source for worthless peices of paper which enable the goldsmith to continue on with his fraud.

          What makes the central bank notes any more reliable than the goldsmith notes? A run on the central bank can still occur, as soon as the people come to the realization that the central bank cannot fulfill it’s obligations and the system is fraudulent. That’s when the tie to gold must be eliminated or else all of the goldsmiths holdings would be repudiated when everyone attempts to get their gold. The only difference made by the central bank would be that instead of a few goldsmiths going bankrupt from time to time, you get one giant combined collapse of the entire currency.

          A central bank cannot make up for the inherant flaws of fractional reserve banking and monetary inflation.

        • Citizen

          Golly Gee Fred the P…
          Your off topic Fred, what about your Free Trade rant?
          Now you can cut and pastie Wiki stuff. What talent!

          Protect us from Fred before we get too deep

        • fred the protectionist

          Oh, EndTheFed, so you want to abolish Usury, well i’m all for it. Seems a little draconian to some, but hey, i’m glad we see eye to eye.

        • EndtheFed

          Abolish usury? As far as I know it’s already abolished. How can you charge an ILLEGALLY high interest rate if it’s not been made illegal?

          Furthermore, considering that I never once mentioned illegally high interest rates in my goldsmith example, it is quite clear that you either didn’t read, or didn’t comprehend what I posted.

          Big surprise.

        • fred the protectionist

          Usury is charging interest of any kind, not just high interest rates. I’m not interest in your Catholic re-definition of terms.

          So you’re against Usury huh, very interesting, yes we should get rid of Usury.

        • EndtheFed

          You have no legitimate rebuttal, so you resort to bending context. Nice.

          I guess you give up.

        • fred the protectionist

          Wrong, I do not bend context.

          The purpose of fractional reserve banking is to charge more usury and make more money. So if you abolish fractional reserve banking, you also abolish usury.

        • EndtheFed

          I can see how one would assume that when he doesn’t understand the concept of a term limit account.

          Want me to spell it out for you? It’s so easy a 2 year old would figure it out from the name.

          people put their savings into a term limit account. Therefore the bank is free to use the savings as it pleases, until the day comes when the savings are due to be returned to their rightful owner.

          “duuhhhhhhh Fred don’t get it”

        • fred the protectionist

          “Term Limit Account”. Oh that’s a good one, do you make this stuff up as you go along? That sounds like Regulating a bank to me. Gee, I thought Libertarians didn’t like the oafish Government Regulating anything.

          Very Jewish of you to attempt to abolish Fractional Reserve Banking whilst simultaneously maintaining the practice of Usury. But nobody would do it. Nobody is going to want a “Term Limit Account”, and neither could a bank use a “Term Limit Account.”

      • longshotlouie

        We still have hope that Fled will enter the 12 step program at Wikiholics Anonymous.

  • Christine

    The Moneychangers – the Greatest Scam Ever


    “It was in the decades following the Civil War that our industries began to burgeon. There were great railroads to build. The oil, mining, steel, and textile industries began to grow. All of this called for great financing, much of which had to come from abroad primarily from the House of Rothschild. Schiff became the patron saint of men like John D. Rockefeller, Edward R. Harriman, and Andrew Carnegie. He financed the Standard Oil Company for Rockefeller, a railroad empire for Harriman, and a steel empire for Carnegie. By the turn of the century, Schiff had tight control of the entire banking fraternity on Wall Street, which by then included the Lehman brothers, Goldman-Sachs, and other international banks headed by men hand-picked by the Rothschild’s. In short, Schiff, who was the “boss in New York, had control of the nation’s money powers. He was ready for the next step: the entrapment of our national money system. “

    • Yeah! Fred is just making up things out of thin air to make it sound like he’s intelligent.

  • Christine

    Mapping the Real Deal : Where Would Jesus Bank?
    Catherine Austin Fitts


    • longshotlouie

      Great read. Thx.

  • Maid in America

    Go Dr.Paul, win in 2012!!!
    Congratulations Rand for your big win in KY.

  • Kelly Snyder

    The original message states: “We have reached the point in the United States where the debt our government has accumulated against us is mathematically impossible to pay off.”

    This is a very powerful statement. I would like to see the details of the calculation behind it – does such a calculation exist? Or is this simply rhetoric?

    • EndtheFed

      Watch the movie “Meltup” by the National Inflation Association and find out for yourself.

      I watched it on youtube.


      • Forest

        Right, it’s mathematically impossible for a Ronulan at least. So you should watch some propaganda about inflation from… The National Inflation Association.

        Or you could read some more dead-wrong predictions, these by Ron Paul about inflation and keep in mind these were written in 1981 – which is when the first time the end of the world SHOULD have happened actually:

        “We probably will see widespread civil disorder in the 1980s, as a direct result of our faltering economic system.”

        “The day of reckoning is upon us.”

        And after that, get some stock picks from the NIA and buy a gold coin from Ron Paul Coins!

        Yep, no conflict of interest there. Buy a Ron Paul book! Daddy has nepotism to fund!

        • longshotlouie

          Indignation? I love it.

          After checking your dictionary for the meaning of nepotism, maybe you could show us how the debt could be paid off. Don’t forget to show the math.

        • Forest

          “Mathematically impossible”… Really… Jeezus. As it isn’t even THEORETICALLY POSSIBLE to pay off the deficit? Really?

          You Ronulans like your apocalyptic absolutes don’t you?

          ‘Impossible’, ‘inevitable’, ‘unavoidable’, ‘reckoning’, ‘rapture’…

          How many more times does Ron Paul need to ‘predict’ rioting in the streets before y’all put the kool-aid down?

        • EndtheFed

          Well, it’s not hard to tell that SOMEONE didn’t watch the movie.

          Here’s a novel idea: why don’t you rationally consider an issue before you instantly dismiss it. Only a fool makes up his mind before he’s heard the issue.

          By the way, if you paid any attention to what Ron Paul actually says, you would have noticed that the Austrian Economics that Ron Paul bases most of his economic predictions on doesn’t claim to predict the exact date or time frame of a currency collapse. It’s acknowledged as not being a crystal ball. It’s Bernanke who irrationally thinks he has the crystal ball. Ron Paul has stated on many occasions that he thinks it is amazing that the system has lasted as long as it has (which is true considering the system is based on money that doesn’t exist and has resulted in an entire economy dependant on cheap, unlimited credit).

          Go ahead and drag out your predictions for the dot com bubble, the housing bubble and the financial collapse…. Oh, that’s right, Ron Paul was one of the only people to foresee those events.

        • Forest

          EndtheFed takes a long swig of the Kool Aid and says: Ron Paul “doesn’t claim to predict the exact date or time frame of a currency collapse

          Ron Paul says (1981):
          “We probably will see widespread civil disorder in the 1980s, as a direct result of our faltering economic system.”

          Ron Paul also says (1981):
          “The day of reckoning is upon us.”

          Those… Sound a LOT like predictions WITH AN EXACT DATE. So who isn’t professing to have a crystal ball? Ron Paul sure seemed to think he knew what was going to happen – and he was dead wrong.

          By the way yes, the debt is concerning but in NO WAY is it “mathematically impossible to pay off”. That is just a hysterical statement made to scare people and is in no way grounded in reality.

        • EndtheFed

          What exactly is your point? You are taking 29 year old quotes (that may or may not exist) out of context and are assigning your own interpretation of meaning to them. What is the significance of what you are saying? Are you saying that anyone who has ever made mistakes should not be given the time of day? Bernanke himself admitted that the Fed has made mistakes in the past. But your logic doesn’t apply to them, right? Because that would mean you would be arguing consistently, and that goes against the troll etiquette.

          By the way, saying something “probably” is going to happen is distuinguishable from saying something “will” happen, and saying “the 1980s” isn’t exactly what you could call an “exact date”.

          Ron Paul also has quotes saying that he can’t say when exactly a collapse is going to come, all he can say is that it will come when faith in the dollar falters. Fiat currencies inevitably collapse eventually.

          Don’t you think it’s better to address the issue now and stop printing and borrowing money (i.e. live within our means), instead of waiting until it’s too late to do anything about it?

        • Forest

          The quotes ARE NOT OUT OF CONTEXT and only a conspiracy theorist would think that these quotes are ‘taken out of context’. For decades Ron Paul has been calling for worldwide collapse, unless we do as he says of course.


          Keep thinking Ron Paul knows exactly what he is talking about, one-trick ponies do just that – monetize their one trick.


        • EndtheFed

          For all the times that you’ve called Ron Paul wrong, you have never once explained in a rational manner exactly WHY he is wrong. You are ignoring inflation, and therefore you are out of touch with reality.

          The only dirt you can find on Ron Paul is almost 30 years old, and it is taken out of context. Why not provide the entire interview so that everyone can make their own interpretation? It’s hard to understand the statements in their intended context when the rest of the conversation is conveniently omitted.

        • EndtheFed

          I think you should read through that link a few more times, because you have obviously missed the point.

        • longshotlouie

          Tell us about the conspiracies again, Grampa.


          A “conspiracy theory” can unsettle the system by causing the public to doubt the State’s ideological propaganda.”
          – Professor Murray N. Rothbard

        • longshotlouie

          Where is that math, and were you able to locate the Funk & Wagnall’s?

    • Kelly Snyder

      I watched the video. The debt is only impossible to pay off if you include the unfunded liabilities (social security and medicare). Everybody knows those systems will be discontinued or overhauled in the next few years – I have been told that I would never collect anything from social security since I was ten years old. You cannot include them as part of the debt; we haven’t borrowed that money yet.

      • Joan

        Kelly, you are right. I think our debt now is 13 trillion, which, if you can imagine, two years ago was about 3 trillion and a few years before that we had never been in the trillions in debt in the history of this country. It started with the wars and then with Obama’s stimulus and having to bail out the banks, TARP 1 and 2. So, it is startling and everyone is asking what in the heck is going on. But, you are right, the big monster in the closet is SS and Medicare. It would cost 100 trillion to give those entitlements out to one more generation. Someone told you the truth about it early on. I used to see my uncles and grandparents get all that free money and free health care, and I kept thinking, “any day now the government is going to say this cannot be done anymore, it’s trillions in debt.” Most folks just want the free stuff, they ignore the impossibility of it, ignore what they saw their older relatives get for decades, ignore people are living to be almost 100 nowadays, and most people just say, “I paid into it, give me mine.”

        This is the battle. The Tea Party people are old and they don’t want to lose their socialism, so they fight Obama to keep it by calling him an evil socialist. Plus, half the people in this country don’t pay taxes, most people are piled onto social security disability or welfare and have their children on social security disability too. Add in all the people who work for the government, most people are feeding off of tax money. That’s the problem. It’s not just the corrupt politicians, I think half the problem is the corporations taking the jobs out of this country so more and more people are checking out and going on the system. Ron Paul would do away with the income tax which would let people make enough money to live and it would take the power away from the politicians, which would be great. And, Ron Paul would get out debt paid down by bringing our troops home, ending foreign aid, letting the people of this country keep their own tax money.

      • EndtheFed

        Yep, the government repudiation of it’s obligations should be nothing new to us by now. It’s either that, or print the money.

        Pick your poison.

        The point is that SOMEDAY we will have to deal with these issues. Ignoring them and assuming that someone will take care of them “in the next few years” will only prolong the suffering.

        • longshotlouie

          B I N G O

      • Citizen

        The unfunded entitlements are what sunk Greece… and will soon collapse California and other United States.

        The Liberals blogging here are advocating to Just Print More Money. Dollars are not Dorito chips!

  • fred the protectionist

    “Secret debts incurred by central bankers without the consent of the people should be declared null and void”

    A) It isn’t secret.

    B) The FED has the consent of the people. Ronulans representing 1/3rd of 1% of the total US population doesn’t make you the majority to declare something null and void because it doesn’t have your precious consent.


    • Little Freddie

      Daddy, why does protectionism cause wars?

      • fred the protectionist

        Trade causes wars, Free Trade causes slavery.

        • Little freddie

          Daddy, how does free trade cause war and slavery?

        • fred the protectionist

          Trade leads to war.

          Commodore Perry forces trade with Japan, modernizing their military, this allows a backwards spear-chucking culture to invade Korea, Manchuria, China, and later bomb Pearl Harbor.

          The Silk Road enabled ancient backwards middle eastern cultures to build up a strong military, they constantly start wars or engage in piracy.

          Trade in oil leads to wars. Like the US in the middle east now, or Japan feeling entitled to US oil and their invasion of the Dutch oil rich Indies.

          German u-boats in WW1 brought the US into WW1 because they were torpedo’ing ships-o-trade.
          So on and so forth
          One could say, every American who died in WW1 and WW2 were murdered by you free trader scribblers.

          Free Trade and slavery go hand in hand. A slave cannot purchase what they produce, so the slave master has to find foreign buyers.

        • Little Freddie

          Daddy, I learned in school that North Korea doesn’t trade. Can we just move there where it is safe?

        • Little Ferdie

          Daddy, I learned in school that China has free trade and cheaper labor, and everyone is saying Obama is a socialist. Can I move to China where it is free?

        • fred the protectionist

          Either embrace the American System of trade proposed by real-Americans such as Henry Clay, or embrace socialism.

          2 choices:

          A) American System.

          B) Socialism.

          There is no 3rd way. Doesn’t matter, you Ronulans will always chose B. Well enjoy the Socialism.

        • fred the protectionist

          Dawww, my comment awaiting moderation. I must have used the Henry Clay swear word.

        • longshotlouie

          The sound of Freddie fizzling.

        • fred the protectionist

          Enjoy the socialism, socialist promoter.

        • Joan

          Fred, congrats on your new baby, Little Freddie. A baby troll, how cute.

        • EndtheFed

          Fred said:
          “Free Trade and slavery go hand in hand. A slave cannot purchase what they produce, so the slave master has to find foreign buyers.”

          Okay so if someone says “we are slaves to the Fed” and provides logical reasons, you scream “conspiracy theorist!”, but if you claim that we are slaves to free trade, and provide NO reasons, it’s perfectly logical?

          How about this little gem:
          “One could say, every American who died in WW1 and WW2 were murdered by you free trader scribblers.”

          Now free trade is a MURDERER?

          Fred, sorry to say but, you’re a mess. Get control of your life.

        • fred the protectionist

          Kemosabe, I use the word “slave” as it was intended to mean, a slave. You abuse the word in a phrase like “slave to the FED.”

          Libertarians = NeoConfederates who want to re-introduce slavery, to whites this time. It was almost bearable when the negros were the slaves, but now you want to enslave whites? Get outah here!

        • EndtheFed

          Okay then, bigot. Nice of you to let the world know your a racist.

          One who is very bad at pretending to know what he’s talking about.

    • My dog’s name is Fred – Bill de Nogaret

      Sane people, wiki Armand Hammer, and for you Christian saps, T.E Lawrence. Fred, make sure you take your meds, lest the wards take away your web privileges.

      Regretfully, given the blatant stupidity of our politicians and college graduated ‘leaders’, history, not science, is our future. So in his negativity, headcase Fred is the vanguard of disaster; I just hope he drinks himself to death soon. One in 20 posts Fred has said something good, so I figure he’s almost there; should have kept the other posts to yourself, Fred. Blended whiskey will do that to you…

      The way we are going to dig ourselves out of this mess our parents and their parents were coerced into is by taking back the responsibility for ourselves from the government, one duty at a time, as this is how they became our wreckless legal guardians; creeping scum is their M.O. This is the Libertarian way. The reason this Libertarian way is the way out is because it reverses the centralization of power and restores our authority. If we do not do this I promise you war, destruction and a global power shift toward fascism; think of the Dark Ages, it will be like that.

      Individual leaders like Armand Hammer got us into this, individual leaders like T. E. Lawrence will get us out. Fred will just stand there and beyotch; the world is full of Freds. Choose your leaders and role models appropriately.

      I have been watching and following Congressman Dr. Ron Paul since I saw him on PBS in 1988. At that time I knew represented me, but like myself, I didn’t think he stood a chance of winning. Well, he and I are still both here; marvelous. Finally, tempered by time his is the one true viewpoint that has lasted. Every one of the other political players is gone, most discredited by their blatant idiocy. Just on the evidence, Dr. Paul is the best candidate for president, yet foreign powers are permitted to influence us away from our best interests. Thanks Clarence Thomas, you whore.

      If you came to this website I don’t have to convince you, but we have to convince the sheople around us. I am certain that Dr. Paul will never win the vote of the Electoral College, but he should win the vote of the populus because when all candidates are considered, he is the one who has consistently spoken on our behalf. We must express our values and opinion, to educate the sheople around us.

      Do your part, or suffer the consequences.

      • fred the protectionist

        He’s not even close to winning the popular vote.

    • Fed

      Hey Fred, Ross Perot won 10% of the vote and despite confirmed death threats to himself and his family from the CIA, who would have carried out the threats, spared us another 4 years of DCI homicidal maniac Bush. You must have gotten your numbers from Obama; you are wrong in so many ways.

    • Citizen

      Fred the P…

      “Protectionism” is simply your RANT cover.
      You want to drag Capitalism into the streets to be summarily executed.
      Then you’ll claim Ronulans did it.

      Fred you say “Trade causes wars, Free Trade causes slavery.”

      Hitler ranted that same protectionism crap in 1936,
      Admit it Fred … Your a National-Socialist a real live >>> NAZI<<<

      • Gee what kind of name is “Fred the so-called Protectionist” When you support doing the exact opposite?

      • fred the protectionist

        Are you calling the Founding Fathers and every Republican up till the 1920’s Nazis?

  • Yes! You are once again right on point. It is us the taxpayers that are footing the bill for the banks and are friends in Europe especially in Greece just because they didn’t restrict they government spending. We should be tougher with the failed banks and give tough love to our friends at Greece that they should control spending and not raise taxes.