Ron Paul on the Federal Reserve, North Korea and the TSA Revolt




Ron Paul appeared on the Alex Jones Show to discuss the Federal Reserve, North Korea and the growing TSA Revolt.

Date: 11/23/2010

Rush Transcript

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Alex Jones: Ladies and gentlemen, I couldn’t think of a better time to have Congressman Ron Paul on with us. He’s only with us for about 20 minutes. I want to get into the Korea situation, the TSA, the quantitative easing, too, the monetization of debt. I want to get into Rand Paul winning and what that signifies; the fact that Ron Paul and Rand Paul have announced that they’re not going to be joining the Tea Party Caucus because some of the leaders are people who voted for the bailout. We’re going to be discussing all that.

Congressman, thank you for joining us

Ron Paul: Good to be with you again.

Alex Jones: Of that constellation of things I threw out, what do you think is most important right now?

Ron Paul: Well, the cause of liberty; that’s always my No.1 goal. And that is related to the deficit because the bigger the government and the more the government spends, the less liberty we have, and that involves what we do overseas as well as what we do here. So it’s been the same old story and, of course, that’s closely related to our financial system and our Federal Reserve, because it would have been brought to a halt if they couldn’t have been counterfeiting the money.

Alex Jones: You know, I’m seeing Wall Street Journal, New York Times headlines every week now saying, “Ron Paul was right”, pointing out that everything you talked about in those debates and gotten laughed at by a minority of fools, has now come true. What’s your view on quantitative easing? Are you going to get the banking committee chairmanship? Where are you going in your interrogation of the Federal Reserve?

Ron Paul: Well, I’m assuming I’m going to get the chairmanship, but until it’s done you can’t be absolutely positive about it. But I’m working on the assumption that we will. And I think almost everybody will know where I stand on the Federal Reserve, although my position is to abolish the Fed and I wrote a book called “End the Fed”, I also take a stand that even if I could, I wouldn’t close the Federal Reserve in one day. I think they’re going to close themselves when they have runaway inflation and they destroy the dollar, and that’s what’s so dangerous. But I would still argue the case for legalizing the constitution and competition and allowing gold and silver to be legal tender. So everything they do is incorrect, because they’re managing the money supply and they’re managing interest rates and that’s where the source of the problem is. And just recently some Republicans have come out and they said, “You know what we need to do is take away some of the responsibly of the Fed, because since 1978 they were supposed to deal with unemployment”. Which is true, that was a silly thing to do, and they’re the ones who gave us the unemployment. They can’t produce employment. But, you know, removing that is almost irrelevant. It’s the fact that they exists and manipulate interest rates, and mess around with the money supply, and they’re supposed to give us stable prices. Whether or not they have that additional mandate, is missing the whole point: it’s almost a distraction.

Alex Jones: Absolutely. I’m sure you noticed two weeks ago when the Chinese government said they want transparency on that Fed, and basically called for an audit. We now have foreign governments, and the biggest owner of our debt, calling for some transparency of this group.

Ron Paul: Yea, you know, sometimes when our Congress wants to tell other countries what to do, I object, because we ought to mind our own business. But, you know, if you’ve invested nearly a trillion dollars in our dollar, they’ve almost earned a right to say something about our management of our dollar. But the hypocrisy is for us to lecture China because we think they’re currency is too week. And that’s all we do, we work on weakening our currency. So it’s going to come to a boil, I don’t think it’s good. I don’t think it’s good for the world, I don’t think it’s good for us and our economy. And it’s going to lead to a lot more trouble mainly because everybody has a fiat currency and everybody is trying to manage and outmaneuver somebody else and they just don’t believe in sound money. They don’t believe in free markets.

Alex Jones: Congressman, is this next session of Congress – the new session starting next year with the Republican majority – do you think in your gut that this is going to be the Congress working with your son in the senate that is finally going to get a real audit of the second largest holder of our debt – the private Federal Reserve?

Ron Paul: I think it’s going to still be an issue. I think the audit of the Fed will come up again, they’ll be some more votes, we will get bits and pieces of information that we haven’t had before. But the real audit? No, I’m not expecting it, but that doesn’t diminish my desire to pursue the issue. Because even if we did finally get the votes in the senate and came out with a bill, the president would probably veto it. And if he didn’t veto it, the Fed is going to stonewall us, or they’ll go to the courts and they’ll get a favorable ruling from the courts and they don’t have to do it. So it will go on and on. So it’s more likely we’re going to find out about the Fed when they self-destruct, when they really just ruin the system and they no longer function and become irrelevant and people will be forced to use some sound money; that is the use of gold and silver coins.

Alex Jones: I remember three years ago, 2 years ago, a year ago, you basically said with precision – as a medical doctor, as a congressman, as someone who studies economics and has won awards in that area – that as time went on, you saw the self-destruction of this system through dollar devaluation coming. Obviously we’re getting closer to that. What type of timeframe do you see, congressman?

Ron Paul: Well, that’s what’s not possible to predict and everybody wants to know, investors need to know, they need to make estimates. I work on the assumption that it could come anytime, because there’s no foundation to our system, no foundation to our money, no support for the currency other than the promises of our politicians and the Federal Reserve. And people are losing confidence in those entities constantly. But I think they tend to pull stuff out of the fire more than we ever dreamed. It doesn’t deserve to exist, and they’ve really messed it up and we have this tremendous deficit. I still think they could keep this thing going for 3, 4 and maybe even 5 years. But to say, “Okay, it’s going to be safe, so if you see interest rates go up, why don’t you go back into buying long term bonds, because in 10 or 15 years there will be no problems and you can have confidence in what they’re doing. I think it’s way too early to expect that.

Alex Jones: Well, is it accurate to say this is a dead, black hole, and we’re seeing this now just in Ireland, not just in Greece and Portugal and Spain? And that the bigger the bailouts, the more it just accelerates the final implosion?

Ron Paul: Yea. And everything is based on the dollar. You know, we’re in all this trouble, yet they can bail out these countries or states like California; everybody gets bailed out. But the basis is the dollar, the dollar is the reserve. And we’re still getting away with it. We’re still printing the money and they’re taking it. As much China complains, they still buy some of our treasury debt. They buy less than they used to, but they have so much and they don’t want to crash it. But there’s going to be a limit, and the markets are more powerful than the governments and the central banks. I keep thinking back – because I watched it so closely – in the 1970s and the 1960s, because they kept pretending that the dollar was as good as gold, and it was $35 an ounce. But finally the markets overwhelmed, no matter how many lies they told, people lost confidence in them. They had quit the game because people called them on it and they wanted their gold. So eventually that’s going to happen again.

Alex Jones: So the buck stops with a buck. Now, racing through some of what’s happening. We see the dollar back up today because of this Korea situation. Obviously, North Korea is a horrible hereditary dictatorship under Kim Jong Il and now Kim Jong Un, his secretive son. But now North Korea mentioned in Reuters that they were doing drills and firing artillery into a questionable area that North Korea claims. Now North Korea has bombarded an island in the south, killing and maiming quite a few people. The South Korean president says that they’re preparing to strike the north. The north is talking about annihilating the south. And then I have this Rand Corporation report: “Rand lobbies pentagon for start of war to save the U.S. economy.” I think back to NATO stirring stuff up with Russia on 8/8/8 (?) I have the Obama advisor telling the financial times of London, “Bottom line here is, American’s got to believe in President Obama’s leadership”. Robert Shapiro said he has to find some way now of demonstrating that he is a leader who can command confidence. Anything short of a new 9/11 or a Oklahoma City, I can’t think of how he can do that.” We also have neocon leaders telling Obama to attack Iran or start a war. So we see a lot of hype up there to start some type of war or stir one up to boost the dollar and keep this ponzi scheme going. You’re geo-political take on that, congressman?

Ron Paul: Yea, it really is frightening when you hear people in our administration or outside the administration literally advocating war as a way to get out of an economic crisis, which is just insane talk. You know, the whole idea that we’re on a verge of a serious attack by North Korea on South Korea or anybody else, they seem to be a little cookie(?) for even implying that. But you wonder how they get motivated to that, because it’s worse than a third world nation. You know, they have weapons, that’s all they have. But they don’t have any wealth, they can’t even feed their people and they have no more ability to take over South Korea than a man on the mood. I just wished we weren’t over there and if there is a problem, which it may well be, let South Korea take care of it, let China take care of it. They’re close by, they probably don’t want another war over there. Japan has interests involved. But we don’t, and we need to stay the devil out of there. Unless they’re doing it deliberately and sort of orchestrating this in order to have the military-industrial complex benefit and the dollar temporarily benefit. But, you know, how could the borders over there be anything compared to the border between Texas and Mexico? I mean, how many people died on our borders in the last year? Thousands.

Alex Jones: 28,000 in the last two and a half years, total. And that’s kind of “out of sight, out of mind”. But you have a better chance, Doctor, as you know, of dying from a bee sting rather than being killed by a terrorist. Moving to the next subject, this radio show a month ago launched the exposure of the TSA with the new enhanced pat down, kind of like enhanced interrogation, torture – this is molestation. Now they admit they’re sticking their hands in people’s pants. Pistole tried to deny it yesterday when he was on ABC, but they reported that ABC reporters are having them stick their hands down their pants. I have witnessed men touching babies’ crotches, so this is now confirmed. And I believe this is a catalyst for the eruption of the anger that the American people already have. Doesn’t this violate the 10th amendment? What are minimum-wage federal employees doing groping everybody? I mean, how did we go this far?

Ron Paul: You know, it’s hard to figure out. Who would have ever believed this. And the other day when I introduced my legislation to deal with this, I said I worry about the foreign policy, the spending, the Federal Reserve, our debt – the whole mess which is huge. But this one addresses something else. This one is just such an upfront, so much out in the open, and government being so bold as to maul us in public and say they’re doing it for our interest. If we tolerate this, there’s something wrong with us. I mean, something wrong with us. It’s almost like – it’s probably not fair to say this because so many people don’t deserve it – we deserve some of this stuff if we don’t do something about it. And hopefully the American people will do something. They’ll eventually have to boycott the airlines or whatever or throw the bums out. Maybe the Congress will get off their (?) and do something in January and insist that we reign in the TSA.

Alex Jones: Congressman, a month ago, just from my own common sense, I said this new enhanced pat down is meant to harass people into accepting the naked body scanners that Chertoff and others are openly making money out of. Now, Atlantic Monthly has talked to the TSA and they admitted, “Yes, we want to intimidate people”. So this is an act of harassment or sexual terrorism, in my view, and they admit it. Shouldn’t there be Congressional hearings about this. I mean, the method to the madness … if government can set the precedent to put its hands down your pants or remove a urology or colostomy bag (and they are doing this, that’s confirmed), or to strip down 5 year olds in full view. It reminds of the Nazis. They started out with “papers please?” in 1933. By 1940, they were stripping women down with babies and running them into pits and shooting them in the back of the head. We have the film footage of that. I mean, this is clearly to dominate us and to break our will. But I think they’ve gone one step too far. I think they’ve triggered the sleeping giant.

Ron Paul: Yea, let’s hope so, it seems that way. Showing our papers; we’ve capitulated on that a long time because we show our Social Security number and our driver’s license and the whole works no matter what we do: when you get a job or buy something they usually want those numbers. But now they want the government show them our genitalia and they want to take pictures of it and put their hands in our pants, and all that. So that’s hopefully enough to wake the people up. And what I think is great, you know, we complain a lot about the mainstream media and they haven’t been very friendly to us, but there have been a lot of good pictures on all the TV stations because it’s been so abusive. So even though a fraction of the American people fly frequently, I’m sure that almost all Americans now have seen some of these pictures and are saying to themselves, “Hey, what’s going on here? I mean, why are they doing this?” So I think it’s a healthy wakeup call to a lot of Americans. I just hope they can work that into the whole concept of what’s being going on with our country for a long time: government is too big and intrusive and abuses our rights and they do the things they shouldn’t be doing and they forget about the things they were instructed to do.

Alex Jones: Congressman, again, I noticed three weeks ago that this could be the catalyst for the American people to finally stand up and realize the power we have. Now mainstream media is admitting that this is something almost like the Tea Party that you were the catalyst for back in 2007, 2008. I really see this trending towards a changing point on the graph going back towards liberty. Do you agree?

Ron Paul: Yea, I think so. And they’ll always be trying to minimize it and dilute it, so maybe they’ll see this as an opportunity they have to back off, and they might contract some of this work out and even if they contract it out to their favorite corporations, they’re doing the same thing. We have to be careful that they’re not exempt from the same abuse that we’re complaining about.

Alex Jones: That was my next question. Have you ever suffered at the hands of the TSA?

Ron Paul: I have to go through that all the time because I have metal in my knees and I don’t go through well. Basically, the x-ray is not available and I hate the idea of doing that. So I get prodded all the time and it’s disgusting and I tell them so. I say, “This is disgusting, how can you do it, and why am I putting up with any of this, this is so disgusting.” I just don’t understand and that’s why I am determined to do my very best to wake up the people about what’s happening.

Alex Jones: Well, Doctor, we only have about 2 minutes left. A medical doctor asked permission, is trained, does it respectfully when you go get an exam. You’re a gynecologist and delivered so many babies. But now some minimum wage person is pulling off urology bags, is sticking their hands in people’s pants. Jesse Ventura, former governor, said here last Friday that he’s going to boycott it and he believes that if enough people don’t fly, that will force industry to put pressure on government. I mean, specifically have you had the enhanced pat down yet, sir? Have they touched your crotch?

Ron Paul: Yea, absolutely.

Alex Jones: Wow.

Ron Paul: And like I said, absolutely disgusting. And, you know, they’ve already proven the point. My argument is that the airlines, the owners of the airlines, are responsible. It should be Continental and United and other people, and we should decide whether we want to contract with them on what kind of rules they want to set. But this idea that the government can do it and force us to do it, you know, it’s absolutely ridiculous. I do think that a boycott is necessary. It’s going to be really tough. Just for instance, how am I going to get back and forth to DC? But there are a lot of alternatives for a lot of other people; quit flying. If I have to go 500 miles, I’m driving, I’m not going to get on that airplane unless I really have to. But I’m going that be doing everything conceivable to try to change these rules because they aren’t making us safer, they’re not better for us. It’s just to enhance the power of the state and intimidate us. It will stop if the American people wake up.

Alex Jones: So you are supporting folks that are boycotting when they can?

Ron Paul: Yea, yea. I’ve said that on the House floor that boycotting would be a good idea, even though I ….

Alex Jones: … can’t do it.

Ron Paul: You know, it might not solve the problem and it’s going to handicap, it’s going to mess people up. But that’s what civil disobedience is all about, because I don’t want to go next step and use violence. We should stand up and say, “Enough is enough”.

Ron Paul: Well, liberty is rising in the face of tyranny. Well, last question in 60 seconds. What does the victory of Rand Paul to the U.S. Senate mean in the face of the mainstream media’s full demonization, full lies. They pulled out the stops on a level they had never even done to you, in my opinion, and he still won. When Clinton came and campaigned against him, his numbers went up. What does this mean that they failed in their demonization? Does that signify the shift from the dominant old line media now being the dinosaur media?

Ron Paul: I think so, I think it means that liberty is alive and well, even though we get down on few occasions, when things get bad. But the number of people that are on our side now is very, very large. And that, to me, is very encouraging, but we still have a lot of work to do to make sure that those who are going to Washington know exactly what they’re supposed to be doing and that they stick to their guts.

Alex Jones: Is Carol proud?

Ron Paul: She is. She’s very pleased and will see Rand here at Christmas time.

Alex Jones: And you’re going to be working with him now coming up?

Ron Paul: Yea, we talk.

Alex Jones: Amazing. A great senator and a great House member. Congressman, have a great thanks giving, God bless you.

Ron Paul: Alright.

Alex Jones: There he goes, ladies and gentlemen, Congressman Ron Paul. I went a few minutes into that network break so we can continue. Well, that’s breaking news: Ron Paul has been groped by the TSA and I’m really glad that I brought that question up to him. And he is supporting governor Ventura in his actions. Very, very powerful information on that front with Congressman Ron Paul.



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218 Comments:

  1. if anyone thinks that a governemnt can create perfect security and keep your rights intact you have forgotten Nazism. and their propoganda, ect. Communism and their propoganda and what our own founding fathers said... would you be willing to give up everything you have own and do just for someone to tell you.. .your safe??? hmmm I'm a vet and hmm for some reason someone has to die to keep even a small amount of security. always.

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  2. The TSA have absolutely no right to do what they are doing, and neither does anyone else. It's just one more step in the march toward outright fascism.

    Please read this, and pass it on to any freedom loving people.
    http://bizcovering.com/investing/arise-the-international-bank/

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  3. On Ron Paul's above statement about monetizing Gold and Silver:

    Going back to legalizing Gold and Silver as legal tender would create a huge value hike of all Gold and Silver on the Planet. Who owns or possesses most of the Planets Gold and Silver right now? Think about it, the Central Private Banking Families own it ALL! The IMF is said to have the larges Gold pile on the Planet. Furthermore, precious metal monetizing would create the same environmental and genocidal side effects that have taken place many time thought history. As such, the current amounts of Fiat Currency already issued into our current civilization would not be able to be backed by current Gold and Silver supplies or the rate it is being currently extracted.

    Look, the private Central Banking Families created the Gold standard many centuries ago and then later realized they could create much more buying power for themselves if they got rid of the Gold Standard they created. The Gold Standard made it too difficult to inflate the economy at a rate faster than the current level of mining extraction. After all, all they want is more ‘Buying Power‘. The Central Banking Families do nothing of real tangible effort to the sustainability to our economy. They only seek to have the general population turn their Fiat Currency into tangible goods and services and pay back the loan with interest so they can enjoy the buying power without actually working. We are economic slaves without Constitutional issuance of mediums of exchange.

    Our current civilization is heavily dependent on the Military Industrial Complex. The space program has been a very effective way of offsetting the economic dependency of Industrial Military Complexes. Also, the US current consumption of oil that depends on foreign sources has gotten into serious issues with the stability of oil contract Nations in the Middle East. However, it is very important to understand why these complex problems have originated. This is after all why we are all gravitating to Ron Paul whether or not we are completely agreeable with Dr. Paul’s answer to current deficiencies of US Monetary Policy.

    All these complex problems arose out of Unconstitutional Issuance of US Federal Reserve Notes. This has nothing to do with who has the biggest pile of Gold or Silver. On that note, now a days you would see that the technological needs of conductive Natural metals really should dictate their value based on miners extraction cost. ‘Read Now’ in the ‘New Nation’ all natural resources’ will be owed by ‘The Common Wealth of Citizens‘. Their extraction will be based upon the Free Markets needs and, thus, not the ludicrous buying power desires of private natural resources owners.

    Issuing ’Sound Monetary Policy’ has periodically been implemented into the US Free Market. The few periods I understand are the issuance of ’The Continentals’ and the issuance of the ’Green Backs’. Thus, even the Private Central Banking Families have recognized and capitalized on the basic faith of ’We The People’ in their legalized tender issuance. No, it is not possible to back all issuance with Gold and Silver. There is simply not enough of it or is its current rate of mining able to keep up with basic economic expansion. Going back to monetizing precious metals would be barbaric to Nature. However, Dr. Ron Paul has effectively identified the main problem and is in my opinion why so many knowledgeable US citizens gravitate toward him. Even though we may not fully agree with his proposed answers to the main problem. The main problem being the Unconstitutional Issuance of Mediums of Exchange.

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    • Nicely written.

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    • Ron Paul is advocating 'free competition' in currency, NOT JUST a gold/silver backed standard.

      The only reason he re-iterates gold/silver is because that is the only form allowed in the constitution.

      As he mentions in some other interview, he would not abolish the Fed overnight, he knows that would cause chaos. He would first abolish the legal tender laws. Then YOU the consumer has the choice of a gold/silver backed currency (issued by the states, or private institutions) or a government issued note (greenback) or whatever other currency you choose.

      The thing with gold, is people talk about gold backed currencies, but the problem with PAPER RECEIPTS of gold money is still the ability to debase and fractionally lend out (as gold smiths had originally discovered, i.e. paper money). The constitution talks about 'coin[ing]' gold and silver. Not 'paper backed fractional reserve gold'. Think about a physical gold american eagle. If you have this in your hand, is there any reason for a run on a bank? If the bank had 100% of its reserves (deposit base) in physical american eagles, would a bank run occur? (the bank CAN still make money through investments people make; investment deposit base)

      However, since with 'free competition in money', you'd have an option of actually using physical gold coins (i.e. not 'backed' by anyone), or paper receipts for gold (e.g GLD ETF), or some other audited (or not, your choice) form of paper claim to physical gold.
      Yes there are issues with gold coins being debased / filed down / wear and tear etc, but I think the issues on that are far less than a general debasement by the Fed.

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  4. Abolish The Federal Reserve Act of 1913 / Abolish The Federal Reserve Act of 1913 Petition: petitiononline . com/­mod_perl/signed . cgi?fedres

    RON PAUL 2012!

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  5. Abolish The Federal Reserve Act of 1913 / Abolish The Federal Reserve Act of 1913 Petition: petitiononline . com/­mod_perl/signed . cgi?fedres

    RON PAUL 2012!

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  6. Come on Ron, youre a congressman, how could you let some low level guard lacking common sense touch your nuts, isnt your popularity, your identification, and your position enough to stop that from happening? Unless you liked it or where trying to make a point.

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  7. The cat would be out of the bag by that point though, right? Every one would understand it's a mafia and therefore collectively rip the tree of liberty out of the ground and plant a new one.

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  8. We should not be entagled in Asia. We can't be the world's cops anymore. We should never have been in the first place. Why can't the elites just be content with creating and then busting homegrown terrorists like the guy in Portland, who they admitted was created by the "authorities"?

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  9. This could be an attempt to disgust so many people that the airlines get into even deeper financial troubles, requiring another nanny state takeover of a critical resource.

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  10. I <3 Ron Paul.

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  11. I <3 Ron Paul.

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  12. subject TSA: I say we should turn the tables and act like we enjoy it a little to much to the point where the people doing it refuse to do it, or before you fly don't take a shower for a month. Get the security personel to go on strike ^.^

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  13. RON PAUL PLEASE HEAR OUR CRYS ,WE NEED YOU TO FIGHT FOR US. WE NEED YOU TO RUN FOR PRESIDENT IN 2012 AND WE NEED TO SUPPORT YOU . WAKE UP PEOPLE WAKE UP BEFORE YOU CAN NOT WAKE FROM THIS NITE MARE. YOU HAVE THE WORLD IN YOUR HANDS WAKE THE FUCK UP..PLEASE FOR MY CHILDREN AND YOURS WAKE UP AND SEE WE NEED THIS MANS REASON AND TRUTH IN OUR GOVERNMENT TO BE FREE...

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  14. They will collapse under their own abuse of power. The trick is to replace them with nothing. Dragging this out any further only hurts the people more.

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  15. ,maybe so,but its either that,or full on revolution! I've prepared for both,but would still like to see him stir things up a bit.

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  16. ,maybe so,but its either that,or full on revolution! I've prepared for both,but would still like to see him stir things up a bit.

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  17. Even if RP became President he would accomplish nothing towards freedom. Trying to reduce this government and restore liberty is as ridiculous as trying to work your way up in the Mafia and trying to convert them into a charity.

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  18. Hopefully it would transition to Gold Back currency.

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  19. The only bad thing about transitioning from the federal reserve to gold and silver tender is... I don't have any gold or silver.

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  20. Even Ron Paul fails to acknowledge and or emphasize the fact that war on terror is staged but I guess since it is not politically expedient it no longer suites him. RIP Bill Cooper, the truest fighter in the whole truth movement yet!

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