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. wow that analogy he made with building a house using a different valued meterstick every day, f*cking brilliant.

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  2. I can't help but wondering what that young lady behind Ron's right shoulder looks like naked. Ron Paul 2012

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  3. Money may not grow on trees, but it certainly leaves.

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  4. I don't understand how anybody can look at the other candidates, they're all the same. Romney is saying everything Obama did, Santorum is a stricter George Bush, and Gringrich is a mess. Ron Paul is the only different candidate, with clear and understandable ideas. Shoot.

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  5. Sellout statement by the chairman at the beginning.

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  6. A pyramid system of fiat debt where you end up a slave. That pretty much sums up Bernanke's crimes against humanity.

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  7. I'll bet a lot of you are wondering the same thing I've been wondering - did my vote get counted? Despite turnouts at rallies that dwarf anything any of the other candidates have done, Paul is still mysteriously trailing at the polls, despite capturing a majority of delegates. The delegates can be explained by our dedication, but not the lack of votes. It's really gotten to bother me, so I rolled up my sleeves and made a website where you can register that you voted for Paul, the county, city and precint, name email etc. that also verifies you're a person and not a bot, so they can't use THAT against us. I've been up till 3am for the last two weeks getting the various pieces to work smoothly and scale so Super Tuesday won't be a problem. If we all agree to voluntarily disclose our votes, the cheaters won't be able to cheat any more. Please help spread the word about IVoted4RonPaul.com in time for Super Tuesday. Tell everyone you know, and get them to +1 it and like it and Digg it, etc. I'm getting nothing for this, I'm paying for it myself and I did all the work myself. Your email will never be used or sold to anyone, not even Dr. Paul. But hey, he's already GOT your email, doesn't he ?

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  8. has he any chance of being president/??

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  9. People expect Ron Paul like Washington insider to fix what is wrong with Washington ? This guy must be kidding... It is like Newt trying to fix a bad marriage of someone else.

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  10. please visit www.publicbankinginstitute.org for an alternative.BANKING FOR THE PEOPLE ! and NOT THE MONEY MASTERS !

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  11. Are "Americans" smart enough to de-register their votes? Since Americans only vote for personal satisfaction, and their votes don't count anyway, so, why even bother playing a game of "Catch me if you can" when you not even in the same playing field? Insanity is doing the same thing over and over again, expecting different results.
    You guys need to get out of their corporation as slaves and wake the hell up!

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  12. How can people be sooooo deaf?? :S ,, I am not American but I would like him as my president in my country. How can people wast a person like him by denying him and dont listen to him. waw and I thought that Americans were smarter than this. Support and Vote for him otherwise goodbye Dollar and welcome to other trading money. Maybe the chinees money after few years when the Dollar will be worth nothing. Or the Pound. America get yourself together, support and vote for Ron Paul to the White House

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  13. u know what , fine , dont elect this guys , but dont cry when ull get martial law. now fuck off.

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  14. RP Is An Eloquent Speaker!

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  15. I swear the chick on the left of Ron Paul was getting wet.....she wanted him bad....I saw the way she was looking him. She was all like "ohhhhhh give me the utopia you speak of Ron and i'll take you to my utopia"

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  16. Superb.

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  17. I love this site, Ty!

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  18. chick behind dr. paul is pretty hot

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  19. and some people think Ron Paul is a nut :(

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  20. French Canadian

    @ greatcow95

    Ron Paul has already adressed the problem of the Fractional Banking System:

    Fractional Reserve Banking is Fraudulent - Ron Paul on CNBC
    http://www.youtube.com/watch?v=b_jr1xVqjYU&feature=related

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