Ron Paul: Fiat Money Experiment Will End Badly




Transcript

Chairman: At this time, Mr. Paul is recognized for three minutes; your thorn in the flesh.

Ron Paul: Thank you, Mr. Chairman, and welcome, Chairman Bernanke. You know, I guess over the past 30 or 40 years, I have criticized the Fed on occasion, but the Congress deserves some criticism, too. The Federal Reserve is a creature of the Congress, and if we don’t know what the Fed is doing, we have the authority and we certainly have the authority to pursue a lot more oversight, which I would like to see. So although the Fed is on the receiving end, and I think rightfully so when you look at the record; I mean, the Fed has been around for 99 years, almost a few years before you took it over, and 99%, 98% of the dollar value is gone from the 1913 dollar. So that’s not really a very good record, and I think what we’re witnessing today is the end-stages of a grand experiment, a philosophic experiment on total fiat money. Yes, they’ve been debasing currencies for hundreds, if not thousands, of years, and they always end badly, they always return to market-based money, which is commodity money, gold and silver.

But this experiment is something different than we’ve ever had before, and it started in 1971 when we were actually given an opportunity in many ways to be the issuer of the fiat currency, and we had way too many benefits from that than people realized. But it’s gone on for 40 years and people keep arguing from the other side of this argument that it’s working, it’s doing well. And yet, from my viewpoint, and the viewpoint of the free market economist, all it’s doing is building a bigger and bigger bubble. And the free market economist are the ones who predicted the NASDAQ bubbles, the housing bubbles, but we never hear from the Keynesian liberal economist and the central bankers saying, “Watch out, there’s a bubble out there, there’s too much credit, too many problems there. There’s a housing bubble, we have to deal with it.” Usually we get reassurances from the Fed on that. But I believe there’s a logical reason for this, because the Federal Reserve is given responsibility to protect the value of the dollar, that’s what stable prices are all about. But we don’t even have a definition of a dollar.

You know, we ask about the definition of a dollar, and they say, “It’s whatever it buys”. Well, every single day, it buys less than the previous day. To me, it’s sort of like building the economy and having economic planning like a builder has a yardstick that changes value every single day, just think of the kind of the building we would have. This is why we have this imbalance in our economic system. But it was a system designed to permit debt, we have a debt-based system. The more debt we have, and the more they debt the Federal Reserve buys, the more currency they can print. And they monetize this debt, and no wonder we’re in a debt crisis. It’s worldwide, I think it’s something that we’ve never experienced before. And I think the conclusion will be a vindication either for sound money, or you win the argument and say, “Yes, we are great managers, we know how to do it, we want the credit for the good times and we want the credit for getting us out of the bad times.” I think within a few years we’re going to know. Of course, I’m betting that the market is smarter, commodity money is smarter, nobody is smart enough to have central economic planning. So I’m anxiously waiting for the conclusion, because reforms have to come. When you see Robert Zoellick talking about monetary reforms and talking about gold, our time has come for serious discussion on monetary reform. Thank you, Mr. Chairman.

This is a rush transcript. If you notice any errors please report them using the “Help improve this post” link at the bottom of this post.

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213 Comments:

  1. *NEW* RON PAUL RAP SONG!!!

    /watch?v=mELGlBRjWWM
    .

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  2. The "bubbles" are market based. Wall street, main street, and all that "evil" that screws over joe sixpack is the free market. It requires stabilization, rainy day funds, safety nets etc. to balance out the inherent instability of macro-free market up and down swings.
    I would love to live in an ideal world but any -ism ultimately proves itself imperfect.

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  3. Bernanke hates hearing "Mr Paul is recognized.."

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  4. That girl is exceptionally hot though, yum yum!

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  5. That guy at the back is hilarious, he keeps dosing off lol

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  6. The ONLY way Ron Paul will be President in 2012/13 is if the American People realise they're being Scammed out of Their Votes by Rigged Machines and Corporates 'Counting' their paper ballots in Secret Locations and making the numbers up and finally have enough of it by getting off their Lazy Fat Fucking arses and Marching Ron Paul down to the White House and Physically Placing him in Office against the wishes of the Deceiving Murdering Genocidal Corporate Scum Bastards and their Puppet Police!!!

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  7. Remember what Ron Paul said during the Arizona debates. You may not pay attention to my moral argument, my constitutional argument, but you will with my economic argument. A crisis is coming and that is when America will wake up. Just remember that during the Great Depression insiders knew when the crash was coming and took out their money. The same thing will happen when these bankster elitists decide to collapse the dollar. As long as it does not affect them personally and dramatically, they will continue to ignore what Ron Paul is saying about the state of our economy. Ben Swann on Reality Check did a piece last night on fiat banking. Get this out to as many people as possible. Also, go to John Stossels site and ask him to do a piece on election fraud. The more people that tell these two journalists we need to do this, the more likely they will(unless their networks won't let them). Election fraud should be the number one issue right now.....

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  8. I like how he doesn't even ask Bernanke any questions, he just lays down the truth and leaves.

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  9. Just watched super Tuesday coverage on ABC News....Ron Paul was never mentioned!

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  10. Ron Paul is the man! He is the one!

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  11. Wow a GOP canidate taking time out of his run to do his Job, a crazy world we live in. Shame the american people will not wake in time before this beautiful country crumbles.

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  12. The definition of an American dollar is .77 oz of fine silver.

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  13. THE president of the us can t even check fortknoxx to see if there s any gold in there are the congress, what does that tell you the fed has stole it.

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  14. Ron Paul will not win the nomination, I'm sorry I truly support Ron Paul in almost every issue, I love this man to be our president, but the powers that be will not allow this to happen, but it's ok, Ron Paul already accomplished more than he thought possible, he has riled up millions of younger voters of this country, he has educated the masses, it will have consequences in the future, all you youngster need to do is stay involved in politics, run for office on a local level, and any level.

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  15. I'm not for a NWO "king of the world" but if the new world order was a good thing I'd vote for Ron Paul to rule the world in a heartbeat because the whole world would be free with a constitution foundation.

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  16. Ron Paul... in his 70's, running a presidential campaign, and STILL makes time to do his job. This man is a leader of men. Sadly too many americans are still asleep to even notice. We can all thank the media and two party system (well, it's essentially one party) for their bang-up job.

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  17. Only people like Ron Paul should be allow in congress -_-

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  18. why isnt Ron Paul in the White house?-_-

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  19. "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 property until their children wake-up homeless on the continent their fathers conquered." - Tomas Jeffersson

    Today, the US has the highest rate of home-less people in the industrialized west.

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  20. Ron Paul has energy like energizer bunny! he is incredible!

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