Ron Paul: The Fed Serves the Bankers’ Interests

Ron Paul appeared on “The Wilkow Majority” to talk about his renewed push to audit the Federal Reserve and his reform plans for the coming financial collapse’s aftermath.

Date: 11/05/2010


Andrew Wilkow: 1-866-95-PATRIOTS, 1-866-957-2874 joining us on the program again, good to have you back Congressman Ron Paul, how are you doing?

Ron Paul: Doing fine, thank you.

Andrew Wilkow: We are very excited that you are renewing your push to audit the Fed. Why is it I think you might have a new ally in the Senate?

Ron Paul: Well I heard there was a good candidate down in Kentucky that came through and got elected on his first time out running for something and I believe his name is Paul.

Andrew Wilkow: Yeah.

Ron Paul: Cause I think he’s going to be a pretty Senator.

Andrew Wilkow: Watching from the sidelines, we heard a lot of talk about how HW viewed criticism of George W Bush. Did you ever think to yourself when they were bringing up this awkward booty nonsense, you’re like that’s what he did in college. I remember talking to him at that time – I mean I was in a fraternity in college. I mean did you think that that in the end was kind of idiotic?

Ron Paul: I agree with your last sentence, it was kind of idiotic but I didn’t even get that far, I had never heard of him.

Andrew Wilkow: Okay.

Ron Paul: And strange, all I remember about Rand being in college was they had…

Andrew Wilkow: He was up late at night studying all the time?

Ron Paul: Whatct he did was he decided to go to medical school after 3 years, took the test after studying a little bit the MCAT, he passed the test and I was rather impressed with that. Took me 4 years to get into medical school and he did it in 3, so I’ve never heard of the other stuff.

Andrew Wilkow: Yeah right, well…

Ron Paul: It was pretty irrelevant as far I was concerned.

Andrew Wilkow: Back to the business, here we are, you have been the champion of auditing and getting to the inside of the Fed for a long time. I think you have really opened the eyes of average Americans to what the Federal Reserve is and how secretly it operates. What has to be done to open the Federal Reserve to transparency?

Ron Paul: Well of course Congress could do it immediately if they really wanted to, their response, well they created the Fed and they have the authority to do it but they’re not likely to exert it. Because by now the Fed has become so powerful and they intimidate so many others and there’s a lot of influence. Even though we had a lot of people and a lot of Congressmen support the audit of the Fed, we had 320 members of the House and we passed it in the House. But the influence of the Fed on the conference and the leaders in the Senate and the President meant that it wasn’t meant to be.

But it’s not going to be easy, that’s the whole thing and that’s really the point, is it’s done in total secrecy and they’re not about to give it up. They do not respond to, in the Freedom of Information Act, they just [fluff] people off and they should be under that law as well, and they, even if our law got passed and the President passed it which he is not and he’ll veto it, Republican or Democrat. But let’s say he did pass it, then the Fed is going to go into court and they’re going to fight and scream and holler that that they can’t do it. And every time a Central Bank has gone into court over many many years, they always win.

Even if it was as blatant as canceling a contract, a promise to pay in real money, they, our government failed to pay in gold. So the private companies got on the same bandwagon, they didn’t have to pay in gold. So they’ve always favored Central Banking and so it’s overwhelming, but we have to keep pushing. We have to do what we can to get as much information as possible. Because eventually they won’t be able to maintain what they’re doing and then when the system breaks down – then we have to have reform, so I work on the assumption that we do everything conceivable to get the information but also plan for the reform that is necessary.

Andrew Wilkow: Is it an establishment opposition or a liberal opposition, cause I know that Bernie Sanders has been an ally of yours, I couldn’t believe that Alan Grayson was actually on your side with this even though he got voted out and I’m sorry I’m not going to miss him. It seems to me that since the Tea Party Movement has risen up since you have become more prominent, and I credit you partly for the Tea Party Movement. It seems that this is now on the table in our national dialog. This has become a kitchen table issue. If John Boehner said to you tomorrow “Congressman Paul, I want you to lead the taskforce.”

Ron Paul: If who said that?

Andrew Wilkow: If John Boehner says to you after seating of the next Congress, “Congressman Paul, with all due respect, I want you to lead the taskforce” is that something that you would want to do?

Ron Paul: Oh sure, I will. In a way I’m in position to do that. It’s assumed that I’ll be the chairman of the Monetary Policy Subcommittee, if I am, that’s where the taskforce is, that’s the responsibility, so holding hearings and having resolutions and passing legislation and getting people […] and making these plans, that would be the taskforce, it would be that particular committee.

Andrew Wilkow: I have a question that a lot of people have been asking. Is the Federal Reserve, I mean we’re looking at them monetizing the debt, they are printing money that is not backed by anything, are they putting American tax payer money, and when I say this – borrowed money – because we’re going to have to pay it back. Are they giving money that they don’t have based on debt to China to other foreign central banks?

Ron Paul: Probably, but that was one of the things that we would find out with a true audit. That was one of the secrets that they have clung to with the strongest desire and that is, they can make deals with other central banks, other governments, and all the international financial organizations and we don’t know what they do. So they can do all kinds of things. They can grant loans, give money and do it quid-pro-quo, have them buy and monetize the debt. So what we see the Fed doing in the open by monetizing debt and they do plenty of that, I think indirectly they monetize that.

What about when they give banks free money, essentially no interest rates? I mean and they go buying treasury bills and bonds and that monetizes debt indirectly, but the credit was created by the Fed and it serves the interest of the bankers because they have free money and they make money and the banks are making profits right now.

Andrew Wilkow: How much are they plunging us into debt with China?

Ron Paul: Well that’s constant and you can add that up. I think China has more than $2 trillion of foreign money, we owe the Chinese well over a trillion dollars already and it’s going up, but they keep buying our money and someday they are going to get tired of it because they are subsidizing us and they’re going to be independent-minded. Once they see the depreciation of the dollar where they can’t hang on, they’re going to get rid of it, then right now the dollar is on rope, it’s going down rather rapidly, but it could go down much worse too.

Andrew Wilkow: Of the people that got elected, the freshmen that are coming in, who do you see as your allies in all of this? Is it someone like an Allan West, is it, who do you look, when you are watching the new landscape – because this is a new landscape. A lot of establishment-chosen candidates were primaried out by yes the Tea Party, by Ron Paul supporters and so forth. Who do you see now as adding to your group inside the House of Representatives?

Ron Paul: Well I see all of them coming in as potential allies on certain issues. To have an ally on all the issues, it’s going to be really tough and I’m sure there are several but I only know absolutely of one because I personally know him and that’s Justin Amash from Michigan. He will be an ally with me on spending, the monetary system as well as foreign policy and civil liberty. So that’s what I’m looking for.

But I never close the door on anybody else, because if I get an ally on, it sort of explains why I was able to get some help from Alan Grayson, because he was a moderate but he also didn’t like the Fed. So I work with people like that and if they agree, so I think they’re going to be more independent-minded than ever before, so I think I’m going to have a lot more allies, but I have to wait and see if any will be allies in all areas.

Andrew Wilkow: Alright, one last thing, I know that you’re busy and we only had you for about 10 minutes. Do you see this and we talked about bipartisan and I think that word is overused a lot, but do you think this is one of those places that I think anybody who’s paying attention could see, here we have this very secretive financial agency in the United States. It is in our general constitutional best interest to open it up, to audit it, to, to get a look at it and to make it transparent.

Ron Paul: Yes, and I think that will be bipartisan because that’s what we actually accomplished with the “Audit the Fed” bill last year. Bipartisanship is interesting, in one way it can be very, very dangerous. If there is a bipartisan agreement to follow the Federal Reserve and Keynesian Economics and a foreign policy that’s disastrous, that’s bad bipartisanship. If you had bipartisanship in coming together on something very positive like transparency, or working for peace and civil liberties, then you want bipartisanship. So it depends on the issue and what people believe in.

I have come to the conclusion that over this many decades that I’ve been watching this, that we had way too much bipartisanship because they’ve endorsed big government, they’ve endorsed the Federal Reserve, they endorsed deficits, a foreign policy of intervention and that hasn’t helped us and as long the bipartisanship supports Keynesian Economics, I think it’s detrimental to us.

Andrew Wilkow: Well, yeah and I think a lot of the big government, you look at what happened in 2006, a lot of the Republicans, there were “air fingers” part of the problem, lost their seats, in came the Democrats, a lot of those Democrats have now lost their seats and you have a lot of new faces. So a lot of these new faces can’t be blamed for the problems of the past. As far as the things you just spoke of I think January it’s going to be different.

Ron Paul: It certainly is and hopefully it’ll be different in a positive way, but even though we have a large number of independent minded people outside the two parties that are speaking out, that is very, very good. But there is not a total agreement on what we should do. They just agree the government is too big, they spend too much and the deficits are uncontrolled. But if you sit down with all the people who say they’ve gone to the Tea Party Movement and been involved in Tea Party Movement, they’re going to say “oh yeah, we need to get rid of the Fed, we need to change this and this and this.”

I don’t think it’s yet been decided, but it’s a good start because they’re saying the status quo of the two major parties is unacceptable.

Andrew Wilkow: Alright, well I look forward to you, assuming this chairmanship, I look forward to you pushing for an audit of the Fed and like we were joking earlier in the segments that we know that you have an ally in the Senate. You are welcome on this program, anytime you’ve got something to say, so we invite you back anytime you want to come.

Ron Paul: Thank you Andrew, good to talk to you.

Andrew Wilkow: Alright, you too. It’s Congressman Ron Paul from Texas. He is renewing his push to audit the Fed, I can’t see why we shouldn’t all support that. 1-866-95-PATRIOT

Thanks to Kathleen Keane for proofreading this transcript!

  • democratsaresmart





    Ron Paul does not understand the economy at all. You have lenders and you have borrowers. You need both. The borrowers are the ones who drive the economy and put money to work. Inflation benefits the borrowers at the expense of the lenders and the net result is higher rate of economic growth, higher wages (even adjusted for inflation) and lower unemployment.

  • marieshinesweet

    The Fed serves the bankers who serves its corporatocracy but wait there s more… ! Sharia finance comes to the rescue lol no interests else than Sharia of course! What a deal now that we have reached financial collapse … we wake up!

  • Bankers bleed us to feed the Fed who serves its corporatocracy …. good to the last drop !

  • The most ardent of Ron Paul’s followers think the US government is too big when it has more people than the secret number Ron Paul has written on his magic anti-alien hemp underpants.

  • fedzog

    ron paul for president !

  • Then you’re a smart young man!!! The problem is that every decent politician who opposes the Fed somehow get’s “eliminated” one way or another…. The Fed is THAT powerful and nasty!! If they could get JFK, they can get ANYBODY.
    There’s a special place in HELL for the guys who run the Fed and the morons who back them.
    “For the love of money is the root of all evil”.

  • Then you’re a smart young man!!! The problem is that every decent politician who opposes the Fed somehow get’s “eliminated” one way or another…. The Fed is THAT powerful and nasty!! If they could get JFK, they can get ANYBODY.
    There’s a special place in HELL for the guys who run the Fed and the morons who back them.
    “For the love of money is the root of all evil”.

  • Then you’re a smart young man!!! The problem is that every decent politician who opposes the Fed somehow get’s “eliminated” one way or another…. The Fed is THAT powerful and nasty!! If they could get JFK, they can get ANYBODY.
    There’s a special place in HELL for the guys who run the Fed and the morons who back them.
    “For the love of money is the root of all evil”.

  • Then you’re a smart young man!!! The problem is that every decent politician who opposes the Fed somehow get’s “eliminated” one way or another…. The Fed is THAT powerful and nasty!! If they could get JFK, they can get ANYBODY.
    There’s a special place in HELL for the guys who run the Fed and the morons who back them.
    “For the love of money is the root of all evil”.

  • I’m turning 18 December and I’ll vote for him next election. I mean, I would if I could have.