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!

  • Citizen

    All Ron Paul supporters…

    >>>>>> WARNING <<<<<<<<<<<<

    The MARXIST PROGRESSIVE EUGENICS (MPE) people have invaded this site and are selling their INTEREST FREE SNAKE OIL.

    Don't buy any of it, IT DOES NOT WORK. It's Communism pure and simple!

    Dr Ron Paul has it RIGHT !

  • applemorgan

    “Paul, a servant of God and an apostle for the faith of God’s elect and the knowledge of the truth that leads to godliness” Titus 1:1

  • Would love that!

  • i can

  • MeatLoafEnchilada

    Can you imagine a Paul/Paul ticket in 2012?


  • Ah okay. That sounds more like Ron.

  • Jacob Cobb


  • I think he said “fluff people off”

  • 1kingconan

    sound quality was better 🙂 go ron paul!

  • waterchildtera

    remove the federal reserve !
    the fed would have people and there families executed if they vote them out
    they give money to the congress and who wants there cash cow dry
    it takes true heroes that will face such monsters they have created
    they owe it to the people as there oath states
    but most are cowards or excepting $ instead of oath !
    we the people should take them to court and make them comply with the peoples wishes and constitution !
    so 1 man is nice but don’t cut it
    end the fed !

  • DEBT IS NOT THE PROBLEM. Fractional is not the problem, but it´s rather the legalized leverage they are using.

    It´s the INTEREST/USURY, Stupid!

    It´s the interest that causes inflation because debts are irreversable mulitplied by INTEREST to a point where the vital circulation no longer can service the debt, and new money needs to be borrowed. So an interest based money system can only sustain itself by a growing money supply and therefore rising prices. Constant inflation is a fact CAUSED BY INTEREST. Check out Mathematically Perfected Economy, Mike Montagne.

    • Citizen

      Hello HiJack

      Its NOT the INTEREST Jacko…. you say:

      “interest that causes inflation because debts are irreversable mulitplied by INTEREST”

      By comparison allowing Fractional Reserves on citizen’s demand deposits is an exponential multiplier of money permitting the Banksters to loan the SAME depositor’s dollars 7 to 10 times over at the competitive market interest rate. Thereby returning the Banksters 10 fold the LAWFUL interest return.

      Thus a $600 BILLION QE2 FED buy back of US Bonds results in a $6 TRILLION money expansion (PURE DEBT) versus the same money earning 5% interest or about $300 Million

      HiJack you Marxist Progressives (MPErs) have the same Printing Press solution for all social problems using the very same Fractional Reserves Bankster racket to dilute the common mans savings, STEALING their retirements

      DO THE MATH!
      using the FEDS \ QE2 $600 BILLION…
      FRACTIONAL RESERVES are a TEN (10) TIME multiplier or creating $6 TRILLION DOLLARS out of thin air over a period of only 6 months
      INTEREST as long term cost of only $30 Billion annual at 5% APR

      It would take 200 YEARS at 5% INTEREST to EQUAL the Fractional Reserve the equivalent$6 TRILLION

      • Your so full of shite Citizen that you do not even know what you are talking about let alone do the math´s…

      • And that´s why YOU are part of the problem. Sloganizing the issues, solutions on the cheap, for the sheep.

        YOUR MATH:
        It would take 200 YEARS at 5% INTEREST to EQUAL the Fractional Reserve the equivalent $6 TRILLION ($ 600,000,000,000.00)
        NOT EVEN CLOSE HiJack

        THE MATH:
        In 200 years this would be the total debt (principal including interest)

        200 years; US$ 10,375,548,489,096,080.00

        In 100 years: US$ 78,900,754,707,782.42
        In 50 years: US$ 6,880,439,871,452.22
        In 10 years: US$ 977,336,776,066.47

        So as per your example it takes about 15 years to double the debt due to interest compounding.

        You clearly have no clue about compounding.

        Whenever there are small numbers presented do not take them lightly Citizen

        It´s the interest, stupid

        • TruthSeeker

          Hi Jack,

          I bet you anything Citizen never had a scientific calculator which has an EXP button. Compound interest? He probably does not know what that means. The STUPID did the calculations with his $ 5 calculator purchased at Wal-Mart that he uses for his construction work and calculating his gold value increase. His calculator is the simplest calculator that you could find. My 3rd grade son has one, but he does not use it because he could do the math manually!

          Here it is again Citizen:
          $600 billion (1.05) ^200 = $10375548.49 billions
          That is $10.37554849 quadrillions idiot!
          Now add more scumbag Fractional Reserve to that and the result will be the END of this universe!

        • Citizen

          Snake Oil Jack,

          “takes about 15 years to double the debt due to interest compounding”
          That’s if you don’t intend on paying the debt down as a normal LOAN would be paid off.

          But the 800 LB guerrilla in this debate is not INTEREST
          Its the FEDs use of Fractional Reserves allowing the FED Central bank to MULTIPLY the debt 10 time over in SIX MONTHS!
          Turning the QE2 $600 Billion into $6 TRILLION over night!

  • mev

    Ron Paul has a lot of credibility. Even Ralph Nader, thought somewhat different, likes Ron Paul.

  • jx14aby

    We’re getting screwed.

  • ExhibitMan

    Good interview! Thanks

  • 2oss7uprey

    lets help Ron End The Fed

  • RonPaulWI
  • biozamadotcom

    i will miss Grayson very much
    he was very outspoken.
    Grayson will be missed.

    • mev

      Well, he does care.

  • biozamadotcom

    so influential Ron is
    Americans can again be leaders of the free world listening to this man
    and his fans and supporters
    Stay faithful people, we can do this. we can make a free world.

  • itstime4change13

    Love you Ron!!!! Ron Paul and Rand Paul for 2012!!!!!!

  • gyllenub

    Looking good Ron!