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.

  • French Canadian

    Such a brilliant and wise man!

    Too bad there are still a lot of Americans who don’t realize how lucky they are to have a presidential candidate like Ron Paul.

    »crosslinked«

    Like or Dislike: Thumb up 1 Thumb down 0

  • http://www.youtube.com/profile?user=ito2694 ito2694

    1:21 What are you looking away for? If I was listening to the wise Dr. Paul I’d never take my eyes off him!

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=ito2694 ito2694

    1:21 What are you looking away for? If I was listening to the wise Dr. Paul I’d never take my eyes off him!

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=Mangobrain82 Mangobrain82

    Ron Paul is the Man! Running for President and goin to work LIKE A BOSS. Ron Paul is Truth. RP2012. That is all.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=Mangobrain82 Mangobrain82

    Ron Paul is the Man! Running for President and goin to work LIKE A BOSS. Ron Paul is Truth. RP2012. That is all.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=tubeviewerX20 tubeviewerX20

    While the other candidates are busy going around campaigning and bullshitting the American people, Ron goes back to work and works for US.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=scootergreen3 scootergreen3

    Why does Bernanke sit at the Front at a Big Desk and why does people have to ask him or prove anything to him. He will never change his mind. Why don’t they just throw him Out?

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=KillYourTeeVee KillYourTeeVee

    “If by the time I become President we have not put an end to this war, it will be the first thing I do. I will bring our troops home and put an end to this war and you can take that to the bank”.

    I want my vote back, Obama… Fuck your bank and the international banking cartel. End the Federal Reserve.

    RON PAUL 2012

    Like or Dislike: Thumb up 1 Thumb down 0

  • http://www.youtube.com/profile?user=melendez123able melendez123able

    Seriously? Is youtube the only way to see Ron Paul in action? You can’t find any coverage on any news channel.

    Like or Dislike: Thumb up 1 Thumb down 0

  • http://www.youtube.com/profile?user=PistolPackingPatriot PistolPackingPatriot

    Ron Paul: “Mr. Bernanke, are you aware that the Titanic sank?”
    Bernanke: “There is no iceberg, you kooky Libertarian. The Titanic is just fine.”

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=PistolPackingPatriot PistolPackingPatriot

    How can this Atlas of a man continue to bear the entire planet on his shoulders, even as it incessantly ridicules him? They simply don’t make men like this any more.

    Like or Dislike: Thumb up 1 Thumb down 0

  • http://www.youtube.com/profile?user=greatcow95 greatcow95

    The issue, once again, isn’t about fiat vs gold-backed money. The issue is over who controls the quantity of the money supple. If we end the Fed without ending fractional reserve banking, we’ve accomplished nothing. If we go back to gold-backed currency without ending fractional reserve lending, we’ve accomplished nothing. If we go back to gold-backed currency without taking into account that the banks own most of the gold, we’ve done nothing.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=loveandlove231 loveandlove231

    ron paul would deystroy america

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=KernelGaddafi KernelGaddafi

    :33 < ron paw is the only candidate in the race that stands for a white ameowrica! only ron paw could stop the destruction of the white race and the tainting of ameowrica’s purrity with infuriors like blacks and mewslims!

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=antonKASA2007 antonKASA2007

    The idea to rob the world is put to place in 1919 but got crazy after 1940 and in the 70-80s but did bring the revolution of the western civilization,speed its growth and development too.

    Like or Dislike: Thumb up 0 Thumb down 1

  • http://www.youtube.com/profile?user=antonKASA2007 antonKASA2007

    I think that the time has come to create electronic new money which must be equal with production and labor..not different. Ron Paul,Congress and America and now EU is eating free lunch and getting the world products for free with this printing machine money called dollar,for which the whole world pay,so is a world robbery,but why Ron Paul refuse to rob?

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=offendedatheist offendedatheist

    America get off your arses and vote for this guy.

    Like or Dislike: Thumb up 1 Thumb down 0

  • http://www.youtube.com/profile?user=ChampaignChris ChampaignChris

    Double like

    Like or Dislike: Thumb up 1 Thumb down 0

  • http://www.youtube.com/profile?user=travelinman423 travelinman423

    How can Ron Paul win, he can’t even get a fair vote out of the Maine caucus from the Republican party?

    Like or Dislike: Thumb up 1 Thumb down 0

    • Surfisher

      Ron Paul is the only one who wants to restore our Freedoms and Prosperity (and get us out of the business of war making).

      The rest are for even more ‘people control’ ; see what FOX aired in this show: “Illegal Everything” — a Must See!

      Shows how Americans are “breaking” the law daily, without knowing it, because of the hundreds of millions of rules and regulations. And how cops are using this as an excuse to arrest anybody for just about anything!

      From the Nation with the most Freedoms in the civilized world, we have now become the one with the least!

      Like or Dislike: Thumb up 2 Thumb down 0

  • http://www.youtube.com/profile?user=bertoxx11 bertoxx11

    the girl sitting behind RP is a cutie, but she looks real mad.

    Like or Dislike: Thumb up 0 Thumb down 0

    • Surfisher

      You gotta feel bad for ‘poor’ Mitt. He’s there plugging every week, and every week somebody gets ahead to help out. The people who have led Mitt so far: Donald Trump, then Michele Bachmann, Rick Perry, Herman Cain, Newt Gingrich & Rick Santorum. He’s been led by a reality show star, a crazy lady, a stuttering cowboy, the guy who brings the pizza, the nutty professor & a hyperactive 58-year old ‘teenager’ who looks like he’s running for student council. That’s gotta hurt a little.

      Since Ron Paul is being black-balled, Republican voters have been reduced to using the same criteria as a 4 a.m. barroom pickup: Has a pulse and no visible cold sores….

      Like or Dislike: Thumb up 0 Thumb down 0

      • Surfisher

        Look at the genuine people, Real Americans, waiting in line at near freezing temps, to hear Ron Paul’s message of Freedom! No other has such following.

        The sad part is that they BELIEVE their votes will count…when it has to be obvious by now, that electronic voting is fixed (unless one receives a Receipt for whom, and exact time Voted…then it’s those counting the votes that determine the winner, NOT the ones casting)!

        Like or Dislike: Thumb up 0 Thumb down 0