Ron Paul: Audit the Fed, Before It’s Too Late!

by Ron Paul

While the Fed has recently released an unprecedented amount of information on its activities, there is still much that remains unknown. Predictably, every push towards transparency has been fought tooth and nail. It took disclosure requirements enacted within the Dodd-Frank Act to get the Fed to provide data on its emergency lending facilities. It took lawsuits filed by Bloomberg and Fox News to provide data on discount window lending during the worst parts of the financial crisis. And it will take further concerted action on the part of Congress, the media, and the public to keep up pressure on the Fed to become and remain transparent.

Transparency is not a panacea, however, as a fully transparent organization is still capable of engaging in all sorts of mischief. Ironically, one of the Fed’s more egregious recent actions, adopting an explicit inflation target, was hailed by many as another wonderful example of transparency. Yet if you think about what this 2% inflation target actually is, you realize that it is an explicit policy to devalue the dollar and reduce its purchasing power. And it adds up quickly over time. Two percent annual price inflation means that prices rise 22% within a decade, and nearly 50% within two decades.

It is worse than that, however. This explicit 2% target also fails to take into account that whatever measure is used to determine price inflation, be it CPI, core CPI, PCE, etc., will always be chosen with an eye towards underreporting the true rate of inflation and price rises. Pressure will be exerted on those calculating the price indices, so as not to alarm the public when prices begin to accelerate.

Of course, government officials claim that price increases do not affect the average American because they can always substitute hamburger for steak, or have cereal instead of bacon to protect their family budget as prices rise. But the American people don’t overlook the fact that their quality of life has suffered because of the Federal Reserve and price inflation. What will they substitute when hamburger and cereal go sky high?

The Federal Reserve continues to keep interest rates low in the hopes of boosting lending and consumption. But keeping interest rates at zero discourages saving. Why stick money in a savings account earning 0.05% if it is guaranteed to lose at least 2% every year? The Federal Reserve created the largest debt bubble the world has ever known with these sorts of policies. The extended zero interest rate policy only eviscerates thrift and savings—the true building blocks of prosperity. Capital will continue to be depleted, infrastructure will fall into disrepair, and the United States will be a mere shadow of its former self.

It is well past time to end the failed monetary policy that encourages this mistaken preference for cheap money now, rather than real wealth in the long run. Transparency and a full audit of the Federal Reserve is a start and something we must continue to pursue. And, if those in power don’t have the stomach to bring the Fed out into full daylight, the American people deserve at least the right to conduct their economic transactions in the medium of exchange of their choosing.

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141 Comments:

  1. Federal Reserve audit from July 2011 http://www.sanders.senate.gov/imo/media/doc/GAO%20Fed%20Inve

    Article about the audit http://www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e7

    “The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression.”

    99% pays no credit or loans the month of June http://www.facebook.com/events/417243574982403/

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  2. paranoid libertarians are the best….

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  3. paranoid libertarians are the best….

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  4. 2012 GOP Election RIGGED – This is going Viral (SHARE)

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  5. Just pulled this from the wires. The rumor is that Bernanke will start QE 3 soon. Market rallies and we pay $5 a gallon for gas. Only RP will stop this insanity!

    http://www.zerohedge.com/news/here-why-everything-today-goldman-expect-new-qe-soon-april

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  6. THUMBS UP; DONT STOP; TELL YOUR FRIENDS!! ACTIVATE ACTIVISM!!
    ::FAX::CALL::FAX::CALL::FAX::LEAVE_MESSAGE::CALL_ALL::WRITE::

    ::FRAUD VIDEO::
    https://www.youtube.com/watch?v=UDChEDnISOw&context=C40b124aADvjVQa1PpcFOz88TOB8TYXgyksaLA-m4OdjzWPen8Hh4=

    MAKE ALL MODES OF CONTACT!! LET THEM KNOW WE AREN’T GOING TO LET THEM GET AWAY WITH FRAUD!! TELL YOUR FRIENDS!!!

    Membership Chairman Bill Griffin
    frozen foods, work number:706-367-9851 | 1-800-277-9851
    lulz

    Chairman: Matt Brewster
    chairman@athensgop.com
    2372 S Milledge Ave, Athens, GA 30605
    706-425-4973

    Vice Chair: Karen Schwind
    kssch2@yahoo.com
    168 Grady Ave, Athens, GA 30601
    706-548-7546

    2nd Vice Chair: Tim Wright
    timwright33@hotmail.com
    135 Carlton Ter, Athens, GA 30606
    706-850-0057

    Athens-Clarke county GOP Contact Information
    (706) 546-4280

    Gail Schrader
    Supervisor of Elections & Voter Registration
    Phone: 706-613-3150
    Fax: 706-613-3840
    155 E. Washington St.
    Athens, GA 30601

    ::THANK YOU BROTHERS AND SISTERS:: THEY WILL NOT GET AWAY WITH IT:: VOICE YOUR OPINION, ITS YOUR DUTY!

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  7. But the best part was filling the 14 seats on the Clark County Republican Party Executive Board. These are the people who set local policy. Each of the candidates was given only 30 seconds to speak.

    Are you ready for this?

    ALL 14 SEATS WERE WON BY RON PAUL DELEGATES! A total sweep!

    When the results were announced a Ron Paul cheer went up and if the Romney people were balloons you would have heard the air draining out of every one of them with a big, sad whoosh.-Las Vegas,Nevada my home town

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  8. I know, it’s ironic. The main thing on their minds with regards to foreign intervention was to reshape several regimes before the next superpower rises. I don’t agree with Bush, but I don’t think everything with the so-called NWO is the way Alex Jones portrays it as.

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  9. Seems to me we’re doing the exact opposite with more war….Or he just said that so people would buy into accepting a new world order.

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  10. A new order to the world under which countries are not fighting constantly and are not always under threat of nuclear war. Keep in mind, the Cold War had just ended when Bush said those words. He was talking about a future with more peace among nations of the world. If he meant “New World Order” as a secret conspiracy to control the world and do evil things, he wouldn’t be admitting it on national television. Not saying I like Bush, but not everything is a massive conspiracy.

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  11. What was George Bush senior talking about then?

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  12. No NWO?how Can you say “their is NO NWO”? Who the hell are you? You “know” that their is no nwo? HOW do you know? If you really knew the lies told to us it would chill your bones.

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  13. No NWO?how Can you say “their is NO NWO”? Who the hell are you? You “know” that their is no nwo? HOW do you know? If you really knew the lies told to us it would chill your bones.

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  14. Study G. Edward Griffin to learn how real the NWO is !!!!

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  15. Study G. Edward Griffin to learn how real the NWO is !!!!

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  16. Every1 got to FOXNEWS.COM! There is a poll right now on who will do the best against Obama, VOTE RON PAUL!

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