Ron Paul: The System is Coming to an End




Ron Paul discusses the Federal Reserve’s irresponsible actions with Neil Cavuto.

Date: 11/05/2010

Transcript

Neil Cavuto: The world is fed up with the Fed: Germany, China, Brazil; just a few of the countries today blasting the Federal Reserve’s latest move to essentially print another 600 billion bucks. That’s what this really comes down to. Ron Paul says it is time to clamp down. And he’s ready to step up and do just that. The Republican Texas congressman could soon have the committee overseeing the Central Bank. He joins me on the phone. Congressman, good to have you.

Ron Paul: Thank you. Good to be with you.

Neil Cavuto: First of all, how do you feel about your son? I mean, the two of you are going to be power brokers on the Hill, huh?

Ron Paul: Well, who knows what will happen, but we were happy with the election, let me tell you that.

Neil Cavuto: I think you guys have got part of a dynasty. But who knows?

Ron Paul: It’s pretty early to tell that yet.

Neil Cavuto: Indeed. But, Congressman, it’s not too early—you say—to sort of reassess this whole Federal Reserve, and its ability to go into the markets and buy gazillions of dollars worth of bonds, and intervene. You’ve had, and say, “Enough!” What do you mean?

Ron Paul: Well, it’s been an issue that I’ve worked on a long time, because I consider it central economic planning, by monetary authorities. And they do it in secret, and usually the chairman is the boss. So we’re down to the point where one individual can dictate how much money we’re supposed to have circulating and what the interest rates should be. It’s the worst kind of central economic planning. It gets us into trouble. And then when the trouble really becomes apparent to everybody, then they go running to the Fed: “Bail us out!” That’s what they did a couple years ago. And what did they do? They printed a lot more money again. I mean, it’s such a foolish foreign policy. But probably, to me, the most outrageous legal part of this is that, this week he announced he’ll do 600 billion. He might do 900 billion. Who knows how much? They’ve done 1.7 trillion already.

Neil Cavuto: By the way, you’re referring to buying back a lot of Treasury paper mortgage-backed securities…

Ron Paul: Right.

Neil Cavuto: In an effort to keep rates very low. But I’m sorry. Go ahead.

Ron Paul: Yeah. But where and why did they get this authority? The Congress allowed them to have this. You know, it was assumed when we started our country, we’d have honest money. There was no printing, no emitting bills of credit. Congress would authorize expenditures and tax people and pay the bills. But here it is, literally trillions of dollars can be done off the budget. It makes Congress really irrelevant. If they can do that much, and Congress doesn’t even get a chance to really look at the books and audit the Federal Reserve, let alone have any input into this…

It’s coming to an end, because they have failed. The system was deeply flawed. And I think that’s what we’re facing. And that’s why I think it’s going to be very interesting studying and understanding what monetary policy is all about, and how it influences and causes the business cycle. So I think it’s a key period of time in our history in which we live. And I think it’s very important to people to come around to understanding. I am excited about it, because a lot more people are looking at the Fed. And like you said in your opening comments, even around the world they’re saying, “Hey, maybe this Fed is out of control,” which means maybe the American dollar is not so hot anymore. I’d say that’s big news.

Neil Cavuto: Well, would you disband the Fed? Would you just dissolve it?

Ron Paul: Well, that’s not my position. In my little booklet I wrote on it, I said that we should end the Fed. But I don’t call for the end tomorrow. I want just competition for a transition. I want to legalize the Constitution. I want to legalize contracts, legalize competing currencies, as has been advised by—

Neil Cavuto: But are you worried, Congressman? People would say that the reason for a Fed, or an organization like it, is to depoliticize this process. In Congress’ hands, everything’s going to be politicized.

Ron Paul: Yeah, but I’m not advocating that the Congress set monetary policy. I want the market to set interest rates, and the market to set the supply of money. So that’s a lot different than having Congress take it over. I’ve never advocated that. Some people do. A populist generally argues the case that the Congress should print the money, like Lincoln. “Lincoln backs the greenbacks.” And just pour the money out. I don’t accept that.

Neil Cavuto: Right. Okay.

Ron Paul: No, I think you should have gold and silver as legal tender. And the Congress has that responsibility to honor the integrity of the unit of account, and you don’t need a Central Bank to create money out of credit. The whole thing is, they came around to believing that they need to “inject capital” into the system, to make the world go ‘round and the economy to thrive. But when you create money out of thin air, it’s not capital. Capital comes from savings. So we have all this malinvestment and debt build-up over the last decade or so, and it was all from money out of thin air. It was not earned money. It was not true capital. So if we don’t understand the definition of “capital,” we can’t solve this.

But I think in the monetary collapse that is coming, we will be forced to it. And that’s why I want to do as much work as I can on this issue, on the Monetary Policy Subcommittee, to get people to understand how the dollar influences the business cycle, i.e. the Federal Reserve, who manages the dollar. And what we’re going to do, when we have to have reform, because the world will not accept what we’re doing. They’re getting antsy right now—

Neil Cavuto: Well that’s pretty clear. You’re right about that. Whatever we’re doing, they don’t like it. Ron Paul—

Ron Paul: That’s for sure, and I think it’s going to get worse.

Neil Cavuto: Yeah, well on that “happy” note, Ron Paul, thank you very much—and to your growing political dynasty. We’ll keep watching. Be well.



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108 Comments:

  1. How do you encourage people to save money when interest rates on savings accounts at FDIC insured banks are less than one per cent?

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  2. So would have Ron Paul cut his own nose to spite his face wombastic? Yes Fox treated him horribly, yes they belittled him, but since his predictions have started coming to fruition they are now putting him on. Is fox admitting they were wrong? Maybe, though probably not. But why would I say F you to a media organization that is giving MORE airtime to an individual promoting sound government? You need to put your hatred of fox, and dare I say blind at that, and think strategically. Every outlet that allows Mr. Paul to speak is another individual that will hear about Constitutional Government.

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  3. Whoa bubbly, the post just after you says it's from a 15 year old, perhaps could work on our image a bit?

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  4. Cavuto is turning into a turncoat, he may think and rightly so that the mainstream media may be sharing the rope with the banksters, but it won't stop there like their masters want, the people are a coming for them too, the cat is out of the bag...

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  5. GO RON PAUL! RON PAUL FOR PRESIDENT!!! I will gladly give you 50 dollars for presidential campaign from a 15 year old

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  6. get rid of the monetary system all together!!! There is absolutely no need for it!

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  7. Enforce the Coinage Act of 1792... I'll get Bernanke's noose!

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  8. Why do they always talk about Rand Paul before they get to the real questions!?!?! It's like FOX news is doing propaganda for rand.

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  9. They need to throw out these bankers into jail,they destroyed Greece, France, they took their pensions, they working on England, and trying to to destroy our ecomonic system here.

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  10. Ron Paul is Amazing!

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  11. Scares me when FOX seems to show support for Ron Paul.
    They also had Anthony Shaffer on and saying that all the members on the 9/11 Comission were there to "Cover for Someone". search:9/11 Coverup Finds a Voice on FOX with Judge Napolitano . They also had Michael Scheuer , ex CIA agent , confirms and says "It was a whitewash top to bottom".
    Heck , search: E Howard Hunt's Confession
    and search: Fake Flag USS Liberty
    They letting the Government collapse and exoposing all the dirty secrets?

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  12. Is there a Ron Paul on the Democratic side? Now there is going to be a constitutional caucus on the Rep side, the closest on the Dem side is the 'Blue Dog Dems' but near all of them got wiped out so there is little hope for a true bi-partisan strong force but I sure that they will give it their all, Ron Paul, or anybody like him, will NEVER be president. If you think the American people picks their p[residents, you are naive.

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  13. does 2 people count as a dynasty?
    lol i dont think so

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  14. Ron Paul for Speaker!

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  15. love your country, not your government. protect your country from a government at all costs.

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  16. Yay, Ron Paul!

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  17. What the average joe doesn't realise is that this system can be traced throughout history. It is the consolidation of power through faith whether you believe in god, allah or believe that the paper money you hold know is worth anything. Its all an illusion. Every civilization is a hierarchy with the few elite on top. For currency to work, there needs to be scarcity. Our currency growns on trees...

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  18. Audit the federal,Close CIA Banks they own. Save billions of dollars by closing bases all over the world. Maybe like that they would hate us less.......What would happen if china would have a military base in USA??? Just Wondering.And....Remember......don't still.The Government hates competition.

    I LOVE YOU RON......You are my Voice.Ron All the way !!!!

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  19. He should be Speaker, but the corruptocrats that run DC won't hear of it. Honesty...integrity...common sense....how extreme!!!

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  20. You can tell that establishment puppet Cavuto despises Ron Paul and what he has to say. Very funny.

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