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.

  • MeatLoafEnchilada

    Ron Paul looks high all the time. 😀




  • d0861

    If Dr. Paul doesn’t run in 2012, I’m voting Libertarian.

  • Truthseeker77


    I’m one of those who are waking up in America…….Ron and Rand have a handle
    on the mess we’re in and they’re worth heeding.

    (Headed over to my senators’ sites to inform them as well.)

  • 4xtech


    i like how they run the above statement over and over as Congressman Paul is speaking. That statement is taking out of context as to what Paul was speaking to. The media is needs a beating too.

  • captkirkconnell

    Thi slady sure has a lot of confidence in her phrases, she will get a rais. Lady If thr FEDS charter is to Keep people employed and prices low THEN WHY is UNEMPLOYMKENT and INFLATION a PROBLEM?

    Same like DRUGS supposed to make someone free- enslaves them
    Fed supposed to stabilize the econmy? they make it a mess



    did you hear that?!! typical media at the end “very contriversal” subject??!! what on earth is so controversal? i hate mainstream media- you go Ron Paul- the real patriots and real americans share your EXACT point of view- its those weak minded people like this ‘news’ anchor who think its “controversal” everyone needs to wake up and fast

  • MrGb1965

    It shouldn’t at all be controversial. That’s the problem.

  • katsfanman

    end the fed ! states rights !

  • FastingOnClowns

    Right On Congressman Paul! I am laughing at her ignorance too! That womyn is a FED plant for the Bankster state cabal of Fabian Socialism. I hope those mufkas in the FED suits feel the heat, cause it’s comin’ on. We The People are behind you, Sir Paul, 100%! Power to The People!

  • Leavon

    Her last statement, “Very Controversial, the Congress getting involved with the Fed”. Look you ignorant cow, congress has to get involved, they are intrigally linked, hopefully they will abolish the Fed by legislative process or the people will take another approach.

  • chrisjames1962

    The government CAN’T work for us as long as it is being run by white collar criminals. Unfortunately, we won’t have the opportunity to change it by electing one person over another for president, because all they offer to us at election time is more criminals to choose from.

  • totallyrandom02

    WOW IM WATCHING THIS VIDEO….. IT MEANS I MUST BE VERY BORED, OR I DONT HAVE ANYTHING CONSTRUCTIVE TO DO ! Ok, this is a comment QUEST. Press thumbs up so many times as you can !

  • chrisjames1962

    We work for the government. The government doesn’t work for us!!!

  • diurdi

    “very controversial proposal” …rofl, I guess the Constitution is very controversial today.

  • God Bless Congressman Ron Paul, he’s definately got my vote in 2012. Unfortunately, the constitution has been suspended since 1932, hence the governments need to have a crisis all the time over everything. Make a crisis, and they can use it against us. Sort of like a softer form of Martial law that we’ve been under.

  • lovedalord88

    Wow a MSM hack promoting the Fed…

    Is this really a mystery? The rich and the Fed are one!

    The Federal Reserve is not Federal, and it has no reserves. THE VERY NAME OF THE INSTITUITION IS A LIEE!!!!!

    Wake up America before these private bankers destroy your wealth and savings overnight.

  • seanjohn135

    lol this chick is clueless. It would be like a QVC host correcting a rocket scientist on propulsion.

  • JustinC721

    stupid cunt spewing her establishment propaganda.

  • pehlavoon

    The only person that was controversial in that interview was the journalist sticking up for the FED which has literally taken the US into nothing but despair.