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. This is not effin China or Russia, we got Bullets, Balls, and Beer
    LETS DO THIS

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  2. and woman ofcourse

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  3. 1,000,000 MAN MARCH ON WASHINGTON IN SEPTEMBER SPREAD THE WORD

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  4. The CIA created, funded, trained and gave missions to al-CIA-da. FACT!

    They are a USA Governmental Sponsored 'terrorist' organisation.

    Under the NDAA anyone connected with giving funds or sponsorship to terrorist organisations are subject to immediate and unlimited detainment by the USA Military. So why are the CIA, Bush, Cheney, Rumsfeld, Goldman and Sachs, Rothschilds, The Fed, et al, not being grabbed by the Military and dumped in Guantanamo?

    Because they OWN the Military!

    Now you know!

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  5. Ron Paul against the Empire Beast grown fed on blood and easy Fed money, coming home to make America "safe" from liberty.

    Dr. Paul is The David against The Goliath.

    Lets hope it ends the right way.

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  6. I made a video for Dr Paul, please watch and support.

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  7. Amen Ron!!! You go Boy!

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  8. Whaddya mean "WHEN" cereal prices go sky high??? A box of cereal containing 3 cents worth of GMO corn and HFCS costs FIVE DOLLARS already.
    END THE FED already!

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  9. Ron Paul
    Alex Jones
    Peter Schiff
    Max Keiser
    Judge Napolitano
    They are the Avengers of Liberty!

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  10. We are from all across the world, but what we share is an understanding of human nature and a subsequent need for liberty. Through an intelligent and inspirational figure, we will reach our goal, before the other side achieves their malicious one.

    Ron Paul 2012 or Goodbye Planet Earth.

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  11. how sad you unquestioningly believe your mainstream `news` outlets.Lose the rest of your freedoms you fool,believing the fear hype

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  12. Ron Paul is the man !

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  13. yeah lets let iranian soldiers invade us and then nuke our citires..;fuck head paul

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  14. Cant even win a SINGLE primary.....oh well...at least he is FIRST LOSER. I am going to find a ron paul sign today and TEAR IT DOWN!! MAAAAYBE TWO!

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  15. Thank you Ron Paul for all of your Hard Work, dedication and information. We Love you! You are our Hero!!!

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  16. I had never thought the Federal Reserve Bank System would prove such a failure. The country is in a state of irretrievable bankruptcy. - Senator Carter Glass, June 7, 1938
    2012, current age America boasts a 15 trillion debt.
    -
    England is the birthplace of private central banking and even though it has practiced the system far longer than the US it still has not fixed its 1000% of GDP debt, making it the most indebted country in history.
    If you want to know the american future look at England.

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  17. There can only be Ron Paul 2012..
    We must AUDIT THE FED. and END THE DEBT SLAVERY AMERICANS ARE IN.
    I am from the Republic of South Korea and thousands here got his back.

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  18. RON PAUL!!!

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  19. How blind are the American People? The TRUTH is right in front of you but you refuse to heed it. You are dooming yourselves and your children to slavery and endless wars.

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  20. I know deep down my gut is telling me the devaluation of the world's currencies are going to crash much faster than they have planned.

    Sort of like a snowball it's going to pick up speed and size, the FREE market is going to take over and that's when paper is going to crash and burn, Banksters and the Government won't have any control at that point....

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