Ron Paul to Fed: All You Can Do is Print Money – And It Doesn’t Do Any Good!

In response to the media’s outrage at Republican efforts to strip the Federal Reserve of its mandate to keep unemployment low, Ron Paul derided the Fed as an “atrocious organization” and said it should stop pretending it can deal with unemployment. All it can do is print money – and it doesn’t do any good!

Date: 11/17/2010

Transcript


Host: Congressional Republicans are pushing to strip the Federal Reserve of its authority to address unemployment. Obviously this is coming at a critical time. The lawmakers want the central bank to stop worrying about the jobless crisis and focus just on insuring stable prices. Congressman Ron Paul joins me now. It’s good to see you, thanks very much. Why? Why is this an idea that is out there now?

Ron Paul: Well, mainly because central economic planning doesn’t work. All central economic planning fails, and to give it to a body like the Federal Reserve to do central economic planning, unemployment and prices and money supply is an absurd idea. It was never intended to be that.

Host: But that’s in there charter. There are two things that their job is in there charter. One is to reduce inflation and one is to focus on jobs.

Ron Paul: But it’s not in the Constitution. That’s the big difference. We do a lot of things up here, probably 90% of the things we do up here are not in the Constitution.

Host: But it’s the purpose for which it was created and there also has been a long tradition, I mean, sort of a hallmark of the Federal Reserve is that it was outside of Congress, it was outside of the press. This is an independent organization.

Ron Paul: Yeah, that’s a very bad idea. No, they were established to be the lender of last resort, and that’s moral hazard. That means you can do anything you what, loan money, get into all kinds of trouble, create bubbles, and the Fed will always be there to print the money you need. If the money is … If they need money to fight a war, print the money. If they need money to run the welfare state, even if you don’t tax people, print it out. It’s an atrocious organization.

Host: Is the Fed the problem or is Congress the problem, is Washington politics the problem and the money that’s being spent?

Ron Paul: Indirectly it’s not the Fed, because the Fed is created by the Congress. But the people allowed the Congress to do it. They’re derelict in their duty to allow this to happen, and for a long time they got away with it, but the bubbles come from the Fed, the depressions come from the Fed, the inflation comes from the Fed. And people are waking up, the last two years … I mean, there’s been a tremendous enlightenment with the people about the danger of the Federal Reserve pretending that they can deal with unemployment. All they know how to do is print money, and it doesn’t do any good. That’s what these last 2 years have proven.

Host: In the deficit reduction committee, which came out with a plan that a lot of people have bristled about on both sides, depending on what their particular interests are. Is there an argument to be made, congressman, that, “Listen, you’re in Congress, address the problems that Congress has, address the spending problem, address the budget problem, address the deficit problem, and leave the Fed as an independent organization.”

Ron Paul: Well, you can’t do it, because the Fed is the mischief maker and the Congress is derelict because the Fed is always there to bail them out. So no, you can’t deal with central economic planning unless you deal with the Fed. It’s up to the Congress, you’re right about that, the Congress should cut the spending and not do the things they’re not authorized to do and it would be … I mean, get out of all the illegal wars and get out of the welfare business, and you’d have all the employment you want. Just think of these trillion dollars we spend a year overseas, just think if it was in the economy. And get rid of the income tax, now that’s good economic planning, as far as I’m concerned.

Host: Is there anything realistic about this proposal, congressman, and I say that because when you hear what people on both sides and they were campaigning over the last many months and they said, “You know, we’ve got to get spending under control, we have to get the deficit under control,” and then the deficit reduction committee comes out. And, of course, they want to still have money for certain projects that they want. Is it realistic to even bring this up?

Ron Paul: It’s not if they think it’s a budgetary problem. It’s a philosophy-of-government problem. If the people endorse the principles that we need to run an empire and we’re going to run a welfare state, and we’re going to have a central bank inflating the currency to plan the economy, no, it’s not going to work. It’s not a budgetary problem, the budget is a symptom of this disease. The people have to ask, “What should the role of government be?” The founders asked that question and they detested the king’s idea of a royal government, so we got rid of the king. If we introduced some new ideas, the ideas of liberty and independent people who, you know, would have an incentive. But today people have grown soft and dependent and believe government can bail them out. But there’s an awakening and that’s what the Tea Party Movement is all about. The people are realizing government can’t do it. They fail at just about everything they do, they fail at monetary policy, foreign policy, fiscal affairs. But it’s not budgetary. You can’t just tinker on the edge of what … we have to come up and save waste and fraud and tinker here and there. We have to ask, “What should the role of government be?” and there’s a good guide, it’s called the Constitution. You know, they tell us what we’re allowed to do. Article 1 section 8, everything in there that we’re allowed to do.

Host: Alright. Well, congressman, thanks for coming over. A very controversial proposal there for the Congress to get involved with the Fed. Thank you so much for coming in.

  • chevydriver1123

    Controversial my fat ass!

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  • lestliness

    I’m so glad Ron Paul is a household name now. Everyone knows who he is and he’s so easy to talk about to friends and family.

    »crosslinked«

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  • sanarkhos

    Dumb bitch

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  • dnbjarhead

    I love the look at the end where she says ohhh very contraversial idea getting congress involved with the fed and Ron Paul has that “aooohhhhhh whatever uggh” look on his face hahaha

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  • bobby4lee

    she can’t see the forest for the trees….

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  • daconqueror101

    what a dumb bitch…”very controversial”…what an asshole…I guess if it’s controversial we don’t get involved, let’s not rock the boat, just let the ones in charge do what they want and then we will be left alone…it amazes me that these retards actually get a college degree in reporting, contribute nothing to the world except their idiotic beliefs, and then think they are super smart. Get a real job jackass! Even Ron Paul is a doctor.

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  • Destroyer220

    The constitution is controversial?

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  • bluetablepainting

    “Authority to address unemployment” should rest with a private citizen who wants to hire another private citizen. A man who starts an ice cream shop (financed by himself or by other individuals) is addressing unemployment. The charter of the Federal Reserve should be ripped to shreds.

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  • Diana Spicer

    So few people understand how the Federal Reserve operates. It is comprised of private banks who operate in secrecy and are not even required report their
    actions to Congress. We will one day eat Jefferson’s words: “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks will deprive the people of all their property until their children wake up homeless on the continent their fathers conquered. .
    The issuing power should be taken from the banks and restored to the people to whom it properly belongs”

    Wake up folks, show me how all this printing of fiat currency has produced jobs.
    It looks to me as though only the banks have benefited. No inflation? Do these guys ever go to the grocery store? Suggested reading here is “The Black Obelisk”
    by Carl Maria Remarck. It’s a novel, both hilariously entertaining yet frightening, set in Germany when Hitler was doing exactly what our holy, “independent” Fed is proposing now.

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  • veradinx

    What an idiotic shill of a woman. How could it possibly be a controversial proposal for Congress to rein in the very creature it created? It’s a sign of how widespread ignorance and misinformation is in America when someone can ask such an absurd question with a straight face.

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  • Stephen Craig

    Ron Paul = Freedom.

    The news media is tied to the government. I an amazed that they even interviewed him. Go Mr. Paul! We need you and we need your wisdom.
    VOTE Ron Paul!

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  • mrbiocorp

    stupid bitc*

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  • http://www.youtube.com/profile?user=ottoman otto man

    people 1, zionists none.

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  • subbie241

    people 1, zionists none.

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  • http://www.youtube.com/profile?user=coopkabob coopkabob

    hahahhhahhaahahahah nice one! stewie griffin, lmao!

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  • JoeFisher12String

    what a stooooooopid bitch! she actually tried to defend an organization that was created BEYOND the boundries of the friggin CONSTITUTION!!!!!!!!!! she loves her credit cards too much. it’s VERY simple, if you CAN”T afford it DON”T try to BUY IT. that goes for COUNTRIES TOO! we’re in this shit storm because of credit…and lack of it. the current way of thinking by our government and those who own it, is to keep the masses in debt. & like ike said : BEWARE THE MILITARY -INDUSTRIAL COMPLEX!

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  • dedutch101

    Go Ron Paul!!! Greetings from the Netherlands!

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  • Wallace

    Looks like he is getting aggressive ,Ready for combat. I love you Ron Paul…..You are my Hero.You got My Vote.

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  • Matt P

    It’s funny that controversy is created by the original charter of the Federal Reserve yet she/they can just ignore the fact that the Constitution gave Congress the power to coin money and set the value. There are way too many people in the country who have simply no appreciation for actual value of the Constitution. Without it legislating just becomes do whatever you think sounds good at the time. There’s a reason government was given boundaries and the further outside of those they go the worse we get. It’s not really rocket science or even political science for that matter.

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  • nielsch06

    :( Too bad that I can’t vote in the US
    Go Ron Paul, from the Netherlands!

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