Date: 06/30/2010
Channel: Fox News
Transcript
News Anchor: Our guest is one of the most outspoken critics of the Fed, Republican Congressman Ron Paul of Texas joins us now for a on Fox Business.
Welcome, Congressman. So, you know, you’ve been very critical of the Fed and the Fed is an important piece of regulatory reform. Do you feel that the Fed has done anything right, it can do anything right in the change in language in the bill as it stands today?
Ron Paul: Well, I wouldn’t expect too much. I think they’re going to have a lot more authority and the real power of the Fed is the power to create money, and they don’t even talk about that. And, of course, Fannie Mae and Freddy Mac was a major player in bringing about our crisis. And this bill doesn’t deal with them. So I’m not too optimistic that this is going to help very much. I think it is going to cost a lot of money. But you just can’t solve the problem of malinvestment and excessive debt created by the Fed by more regulations. The SEC has been around for a long time, Sarbanes-Oxley has been around. It doesn’t really help us. So to come up and say we can solve these problems with more regulations… we have regulators coming out our ears and they say, “Well, they slipped up. We just need a few more.” But that’s just the opposite of what the market should be doing.
News Anchor: Well, Representative, what you see and what has come forth – our reporter was just pointing out some of it – it now appears that it’s taxpayer money that’s going to have to pay into that 19 billion dollar hole instead of what would have been the banks. With 50 billion market cap or more, kind of most of the same guys who got us into trouble in the first place. On one hand people are saying, “Why wasn’t it the banks who were made to feel some pain here?”
Ron Paul: Well, bankers sometimes are taxpayers too. And, you know, when they took some fees, even recently, a lot of times they would take the fees and charge the banks that didn’t get into trouble to bail out the other ones. This whole idea that you have to go to the banks to collect fees in order to resupply the FDIC…
News Anchor: But it has worked so well, Representative, for the FDIC, has it not?
Ron Paul: Well, they’re always broke, they need more money now and they can’t do it. Could the FDIC have bailed out all the banks without the Federal Reserve? The Federal Reserve creates trillions of dollars to try to alleviate some of this pain and suffering. It’s the whole system that is flawed, and they don’t deal with that. So all that we’re doing is prolonging our agony. I mean, we’re not addressing the substance of the problem, and that is the monetary system, fractional reserve banking, the creation of credit out of thin air, the dependence on regulations to solve our problems, the moral hazard of Fannie Mae and Freddy Mac; they haven’t addressed any of that. So I don’t see how anybody can expect that this bill is going to help. They’re already arguing about is who’s going to get stuck with the bill, and right now are the big banks are going to pay in or will the taxpayers? Ultimately, the people get stuck with it, even when they create money out of thin air.
News Anchor: Congressman, so what’s the alternative? If it’s not going to be the Federal Reserve to regulate mortgages and credit cards, there’s got to be some type of consumer protection in place. Certainly we’ve got to make sure that no bank is too big to fail. What is the answer to that?
Ron Paul: Why?
News Anchor: What would you do?
Ron Paul: Why is that the case? If they’re too big and they get into trouble, let them go bankrupt. There are a lot of very strict rules in the marketplace. You go bankrupt, if you commit fraud you go to jail. If you’re bankrupt, you go out of business. But you don’t have to depend on bailouts from the treasury, from the Federal Reserve, or the taxpayer. So this is a completely different system and thinking that we can alleviate the discomfort of all these bankruptcies and the malinvestment… As long as you patch it up they’re back doing the same thing again. The derivatives market will remain as long as there is somebody backing them up. And the Fed’s role is to be the lender of last resort. That is their job.
News Anchor: Representative, should we have gone back to the way it used to be when we had Glass-Steagall and there was a separation between investment banks and actual depositor banks. And guess what, for all the time that that was in place, we never had an unwinding of the system like we have had in the past couple of years.
Ron Paul: Yeah, it’s interesting. In the free market you don’t regulate and tell banks what they can do or not do. But I voted against the repeal of Glass-Steagall, not because I’m opposed to them having free access to the marketplace, I oppose it because it expands the moral hazard. That meant the insurance and the lender of last resort all put pressure on the FDIC and all these agencies. So I was opposed to it because it put a bigger burden on the taxpayers. And I said, eventually the bubble will get so big, it will burst and the taxpayers will have to pay the bill. So it isn’t the fact that they were separate, it was the fact that the bubbles had just not build up. No, the market could handle that, but as long as you guarantee that it’s too big to fail and everybody is going to get bailed out, nobody really thinks about what they should do to protect their own interests.
News Anchor: So, representative, as we finish up here, how’s your son doing? What’s he being doing these days? He’s kind of keeping a low profile for the moment away from the media.
Ron Paul: Well, I think he’s doing a lot of what he’s supposed to be doing: campaigning in the state and talking to a lot of people and I understand things are going pretty well for him. I haven’t been out there since the election, since the primary was over and I didn’t go in there much in the primary anyway. But I understand he’s doing quite well and he’s reaching the people and that’s what that whole Tea Party Movement was all about. I mean, his turnouts are huge and they’re usually the so-called Tea Party turnouts rather than strictly the Republican Party. And right now, of course, he has to reach out to a lot more people than just the Republican Party, because he has to reach the moderates and the independents.
News Anchor: Well, we’ll talk to you again, thank you so much, Representative.
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This is why the Ashkenazi jews from private federal reserve hate Ron.The Bible call them impostors,fake,liars and,,the Synagogue of satan(Revelation 2:9,,3:9).
To understand the truth,please read this book for free.
Who Is Esau-Edom…Who Is Esau-Edom.
The world revolution which we will experience will be exclusively our affair and will rest in our hands. This revolution will tighten the Jewish domination over all other people.
- Le Peuple Juif, February 8, 1919.
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Marketwise that is.
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The only way to be free is for the Government to fear us. As George Washington put it we have to have arms equal to that of the Government to keep it in check, working for us and secure our freedom. That’s why the 2nd Amendment is 2nd. The founders weren’t stupid. They knew men in power always become corrupt. This is why I so ardently oppose Gun Control. It’s Unamerican and insane. It’s submitting to Federal superiority, to slavery. You are the first line of your defense.
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Socialism is just another name for Out of control Government. Nazi’s were National Socialists. Communists were Fabian Socialists. There is almost no distinction between the two. The only difference is that Fabian Socialists steal your money deviously while National Socialists take it by force. Socialism = The Government having control of all the wealth. The people are allowed just enough to survive. If you want power or wealth you have to be accepted into the Elite Government.
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agreed. I don’t know how he didn’t win in 08. Blows my mind. Such early support in the primaries. We have to stop this corporatocracy. Corporations are basically extensions of the Government now. There should always be a distinction between Government and the market. The Government is there to protect our freedom abroad and prosecute criminals at home. The only thing the Government has the Constitutional right to do is set the import Tariff. And even that is debatable.
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I agree. Regulation fucks us over. It’s hundreds of thousands of dollars in NYC to start your own taxi company. Why? Because of all the BS you have to go through to get the proper license and certifications. It’s ridiculous. Makes it hard on those of us trying to just make a decent living. If I don’t do a good job the customers should judge me, the people. Not the Government. Let me work.
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There is no way to really regulate the free market. All the Government’s doing is fucking it up. People buy what they need and sell what they need to. Supply and Demand has always and will always work. Imposing force on the market does nothing more than cripple the people. Prices would be lower and everything would be better if all this protection corporations lobby for when they first become successful were ignored and such action not condoned. Reality is unlimited competition.
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Ron Paul / Andrew Napolitano 2012 ~ The Revolution Continues …
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ασΘεός신별
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Far left far right can find an equilibrium and work together for the American people.
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Most other countries world wide know of this man, America still needs to be educated. It’s your civil duty and moral obligation to spread the word of this man’s brilliance!
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Seeing Barney Frank and Ron Paul working together makes me feel so good.
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movie for you : capitalism a love story
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socialism is freedom…freedom from being a slave to business and the rich….99 percent of us have less than 75 percent of the wealth….we need to take it back through force and legislation
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Troll Alert
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The Federal Reserve is absolutely necessary
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Dr Ron Paul is the most important political figure in the world.
We must end socialism all over world.
Freedom!
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Ron Paul and Barney Frank
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Nolibertarian is troll and an idiot who exists only to be a contrarian to common sense and Dr. Paul’s honest message…Don’t encourage him with replies.
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Ron Paul is the most important person in modern American political discourse. And he will never win an election. He is creating an educated base that will take over this country, probably after he dies.
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WE need him to run in 2012 !!!
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Nolibertarian i think it part of a smear campaign against paul. Its him and like a couple other peole who go to ron paul vids and talk crap and say untrue things. Someones whole youtube channel is committed to slandering this man. SO SO PATHETIC.
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He is a constitutionalist which is relevant to somthing more than party affiiations. He is very relevant to freedom and Liberty and no Nation Building and sound money. SO i say FUCK the partys and HELL YEAH FREEDOM!!!
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How Ron Paul keeps his cool is beyond me. I’ll be donating to Rand much money, he’s not as good as his dad yet but he’s on the right track. I’m fairly new to Dr. Paul and the truth, I was blinded by the media, etc. It’s difficult for some people to get past their bias and see the truth sometimes.
Ron Paul 2012!
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GAO has no real auditing power over the FED
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Kucinich,Gravel,Paul,Ventura any combination for prez and vice prez
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Kucinich,Gravel,Paul,Ventura any combination for prez and vice prez
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I gotta watch more Fox News
Pretty white women! geez, cute white gals on that channel.
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awful lot of trolls here
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Reminds me when the the Titanic was sinking, the RICH sure found a way off the boat while the poor and middle class were locked down below. Do you know why?
Because the rich are too big to fail. Are you going to remain chained down below or are you want to bust out of your cell? While you think about it, those too big to fail are doing something about it, like adding an Internet Kill Switch, etc. etc etc
REPEAL BRETTON WOODS and or ADD a CONSTITUTIONAL COMPETING MONETARY SYSTEM. DO it NOW!
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Want to know why the banks are SOVEREIGN and the people are SLAVES?
See: Bretton Woods Treaty Agreement – Article 7!!!
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Vote all incumbents out! Vote 3rd party Remove them Remove them all! We the people have the power to fire anyone that refuses to do the will of the people!
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well said ron paul. america needs to listen to you, not obama and his administration.
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Ron Paul for President 2012!
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The Bond Market is the last bubble
How stupid are people? “too big to fail”
I’ve also heard “The USA will never fail” well, guess what, failure is all around you and it’s precisely because of these banks, and the Tribe that runs them.
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This news clip misquotes Ron Paul….. on a fundamental point. Fox misquotes Ron Paul as saying “The fed should be the lender of last resorts”. He’s not saying they SHOULD be, he’s saying they ARE!
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Ron Paul 2012!
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I LOVE YOU RON PAUL!!!
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Ron Paul 2012!
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You tell em’ Dr. Paul! False news more like it because they might disregard him again for speaking the truth.
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The most honest politician in the world!
Ron Paul 2012!
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Just another video in my ownage compilation by Ron Paul. Spreading truth and laying the smack down like always.
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he was a longshot for the 2008 elections, but Ithink, unless there is outright foulplay, he is a real chance for 2012 presidency. Though, I would be really concerned for his livelyhood if he did win.
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I like the way he talks here! Calmly and clearly.
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God i hate this corporate media, they’re all protecting their interest, being in bed with governments! Notice how they dont even ask him what derivatives is? even though it was Ron Paul brought it up? Is this journalism really?
Read the book, ” The telescreen” by Jeffrey Grupp, an insightful look @ how mainstream media, is really jokestream media. And exposes their spin and propaganda rhetoric vs the reality.
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It’s funny how Fox has completely done a 360 on Ron Paul… I will admit i thought Fox was a Good news station but I mean if they are doing it now It proves that there is light at the end of the tunnel
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That red head girl hasint got a clue,she keeps looking at her teleprompter to see what question she has to ask.
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Ron Paul OWNED Fox News.
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I love to hear him speak.
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any word whether or not he is running for 2012? I wll cry if he does not.
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