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


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.

  • VisionsOfTheNobody

    Down with the Fed! NOW!

  • Alan Slawter

    Interesting how unbiased the smug reporter is. She has no grasp on what RP is saying or that there is possibly a bigger truth than the rhetoric she’s heard all her life. We mock the communists for central planning and then we think we can do it. The truth is so far from where we are now that it does sound preposterous.

  • MjHall

    I love how Ron laughs at the end at the dumb bitches comment.

  • SPVTrader
  • RonPaulWI

    I hope he annouces that he is going to run soon!

  • HumbleOpinion

    I believe in the Lord Jesus Christ
    I believe in the Constitution of the USA
    Thank you, Ron Paul, for defending the Constitution. Thank you for being a watchdog of the Federal Reserve. Thank you for speaking the truth. We need you!

  • martin3031

    its nice to see Ron being so pleasant, if i was him id smack that idiot in the face and say what needs to be said. instead of these ridiculous questions she is asking, SHILL BITCH!

  • tonguetiedandtwisted

    I love his little smiles and responses that indicate she is way off base when asking what the issues really are…and Ron Paul touting the Constitution and asking the question ‘what role SHOULD government have?’…i just hope its not too late, because we all know how long it takes for the wheels of government to start spinning, and the collectivist agenda is going at full speed. If changes dont come soon enough, it will be nothing but a debate on what COULD have been done, if only…

  • katydig

    She said: “Very controversial proposal for the Congress to get involved with the Fed”. I guess she doesn’t know that it’s the Constiutional duty of Congress to regulate money and that it was a very unconstitutional act when Congress delegated its duty to Banksters. She should research the deception surrounding the creation of the Fed in 1910 at Jekyll Island and the phony enacting of the Federal Reserve Act in 1913.

  • ITheProfessorI

    Ben Bernake is that 1 person who keeps disliking Ron Paul’s videos…

  • GoodLifeGodLike

    LoL…gotta love the laugh Ron Paul gives at the end. That lady is so out of her league.

  • SlimnJim

    “Very controversial for the congress to get involved with the fed” But it shouldn’t be… but it is

  • Article I, Section 8, Clause 4 (To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;), and Clause 5 (To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;) define the role and duty of the United States Congress.

    Nowhere in our nation’s Constitution is the Federal Reserve Bank given the power to print, coin or regulate our nation’s legal tender.

  • LibertyMike1

    1 dislike?? Bernanke must have watched this video!

  • shoexy

    Even if the export increases for America, the unemployment issue will not be solve.

  • killergames187


  • TheManiacalSatanist6

    This clueless bimbo got destroyed. End of story, and End the Fed!!!!

  • 3cl3c71k0r

    Great job, Mr. Paul.

  • ceasey0xoogurl

    this news anchor is like a mindless robot; just reading..