23% Unemployment: The Federal Reserve Rescued the Banks but Not the American People

A pervasive bunker mentality has set in at the Federal Reserve: the secretive institution is desperately lashing out at its critics – including its foremost opponent, Congressman Ron Paul. But Americans have woken up and will not allow the sinister bank to barricade itself behind the deceptive veil of supposed “independence”.

Date: 01/24/2011


Ron Paul: Thank you, Mr. Speaker. Mr. Speaker, in the last several weeks, there have been several articles published by officials from the Federal Reserve System. This is a little bit unusual because they’re critical of anybody who criticizes them and critical of me, in particular. They want to accomplish, in these articles, they are trying to discredit anybody who disagrees with their policies and they’re very defensive of this. They have argued the case that they should have total secrecy and in this total secrecy, I claim, they have tremendous power to do the things that they want to do.

It’s only been recent that the American people and this Congress have awakened to this. Although we did not get a full audit of the Fed last year, we did get a partial audit of the emergency funding. But still, their argument is—the Fed’s argument is—they have to have total independency while the American people believe there should be transparency. The Fed’s argument is, that they literally are the saviors of the economy—that they came in as an emergency when the markets were crashing and they were able to rescue the entire world economy by their injection of hundreds of billions, if not trillions, of dollars. The fallacy of all this is that they may have rescued some banks and they may have rescued some big businesses, but they did not rescue the American people.

The consequences of all this has been high unemployment, the people losing their houses and can’t pay their mortgages. So, their claim that they prevented deep depression—they’re claiming that they’ve prevented the depression for some very wealthy, well-connected people on Wall Street, who were making a lot of money, anyway, in the bubble period of time. And now, the people who are suffering the most are the average people who have had to suffer the consequence of the Federal Reserve policies.

This is a policy that punishes the innocent people and actually rewards the guilty people and the people who were the beneficiaries. The very people that are claiming that they have solved all our problems are the very ones who created the problems and they never once predicted the trouble that was coming. And there were numerous economists around the country, especially the Free Market Austrian economists, predicted and explained the housing bubble and it was coming and it would be a collapse. But the people at the Federal Reserve, who now are claiming that they solved all our problems, never once said that we could be in trouble. When asked they said, “No, there’s no housing bubble. Where do you get all this?”. So now, we’re supposed to believe everything they tell us. They created it. They didn’t tell us there was trouble coming and now, they’ve solved all our problems and we’re not supposed to question this and if we do, then we’re going to be on the receiving end of severe criticisms.

The conclusion of many of these articles has been that they want to deflect the concentration on the Federal Reserve. They will say, “Yes, they’re still our problems but it’s all on the Congress.”—it has nothing to do with them. They saved us from ourselves and they take care of us. They create good times and take care of us when we are in bad times. But the whole thing is, they claim that our deficits are a problem, and I agree with them on that. Deficits are a problem! But, if you think about it, why do the deficits get run up? We, as members of Congress—this whole Congress—for decades on decades run up deficits to pay for welfare programs and warfare. Endless spending! We tax the people and we can’t tax anymore. We borrow—there’s a limit in borrowing—or interest rates will go up. But guess who monetizes the debt and enables the Congress to continue the spending, it’s the Federal Reserve. So, they are the ones who literally facilitate the deficit financing. For them to turn around and say “It’s all the blame of the Congress”, they’re absolutely being disingenuous. It is the Federal Reserve and the monetary system that encourages runaway deficits, runaway spending, runaway militarism and runaway welfare-ism.

The Fed over the years has had two mandates. One is to have price stability, and full employment. Think about price stability. Did they have price stability with the NASDAQ stocks back in the year 2000 that collapsed when that bubble developed. Have they had steady prices—price stability—with medical care costs or housing costs or education costs? No, absolutely none! Today, bond prices are sky-high. We have a bond bubble going on right now and it’s the result of Federal Reserve policy but they don’t want you to think and talk about that.

And the full employment mandate, I mean, just think of it, the government—our government—labor statistics admit there’s 9.5% unemployment and then they say “Well, if you count more people who are partially unemployed, it’s 17%.” But, if you have a free market approach and count everybody who is unemployed, our unemployment rate is 23%. That’s why the American people are feeling lousy about what’s going on even though Wall Street, once again, is making money, the banks are making money. […] But it’s all because of a collision between the Federal Reserve and the banks and the large corporations while the people are still unemployed.

The Congress has a proper responsibility and it is oversight. It isn’t and was never meant for the Federal Reserve to have free reign and not have any oversight whatsoever. We have to realize this whole issue of Central Banking is not a new issue. It was here from the very beginning. Hamilton and Jefferson argued about it. Jefferson and Jackson and many others were absolutely opposed to Central Banking. So, it’s not a new issue but there is no authority in the Constitution that grants this right to have a Central Bank and to create money out of thin air just to accommodate the politicians.

We have a right and an obligation—responsibility—for oversight of the Federal Reserve. Our responsibility is to look at bad policy. The Federal Reserve is responsible for the inflation, the business cycle, the unemployment. It is up to us to do something about it and look into it. At first, to look into it and understand it because then it will be realized that we need to have more oversight. Right now there’s tremendous support. In the last Congress, we had 320 members of this House who supported an audit of the Fed so, we’re making progress here.

It annoys the Federal Reserve. There’s going to continue to be their PR campaign. It’s the first time in their history that they’ve hired a PR Agency and lobbyist to lobby for their position. So they know they are under the gun as far as people waking up and realizing that the Federal Reserve is responsible for so much havoc that we’re having in this country. And I think it’s our responsibility to continue to look at the Fed and find out how they have caused so much trouble. I yield back to balance my time.


  • n2oVVTLi

    Good luck Ron. I’m confident in saying this. Every one of us patriots is honored to have a gentleman like you stand up for us when so many corrupted officials won’t. Keep it up.

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  • mhsthinktank


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  • fgleich

    You go Ron Paul ! YAAAAAY !!!! END THE FED NOW !!!!

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  • gator051

    Ron Paul has big balls, 2012 lets go Ron……

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  • chroNick546

    stop these pieces of shit crooks Ron!

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  • bane349

    This man is a modern day Founding Father. I will always consider it an honor to have lived in the time of great men like Ron Paul, and Nigel Farage.

    God bless you both!

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  • savagegalt

    end the fed








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  • nucjellfish

    This is more real than the state of the union address that just happened.

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  • sablechicken

    Wow they let Ron Paul talk 2 minutes over his 5 minutes…I think he would have let him talk even longer. Maybe, just maybe, things can start turning around.

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  • kashmm

    This is epic; the collective consciousness is breaking through the fog, a better time is coming for all of humanity.

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  • Ronaloka

    Ron Paul does not work for the Illuminati. He supports the US constitution which keeps the US strong. The Illuminati can’t have a strong US if they wish to take over the world. The Illuminati must trash the constitution in order to weaken the US making them ripe for martial law and eventual take over. Once the US is gone the rest of the world is easy.

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  • uturniaphobic

    Ever wonder how much Interest the we’ve all paid, (all the Nations) have paid in Interest since day one of debt-based money? or even since 1913 or so? I wonder that a lot …gotta be trillions and trillions, over and over. major opportunity costs.

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  • Ronaloka

    Obama wasn’t bad or evil, he just wasn’t the right person for the times we are in. He didn’t have any economic policies when he was campaigning that rationally showed a way out of the mess he was being handed. Obama was just a poor choice.
    Ron Paul scared people because he made you really look at the problems without rose colored glasses. Yes, his answers may have caused immediate problems but the time to correct things would have been very short. Now who know how long healing will take.

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  • ENJOYtheLITTLthings

    I always wish I was there to applaud.

    RON PAUL 2012!!!!!!!

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  • m3RacerBitch

    Donald Trump & Ron Paul 2012!!!

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  • msjche

    If this man were to get elected, I may actually hold out some hope for our country.

    Else -> None.

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  • Scooternz

    US people need to wake up and take note of Ron Paul…wish we had someone like him…

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  • UNTC321

    “face your fear accept your war, it is what it is” Zakk Wilde from the song Fire it up.

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  • dwpshacktown

    lol 305 views I bet.

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  • combovergi

    As a Brit can i make donations to the Ron Paul 2012 campaign? if he runs .Because America and the World needs this man to be you next President . Give this man a chance its only 4 years

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