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. 347 patriots and 1 banker

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  2. The one dislike is Evelyn Rothschild or maybe Rockerfeller. But probably Ben Bernanke, those pussies never do anything themselves.

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  3. how could iran be a threat to the united states when they just recently launched their first satellite into orbit a few weeks ago!enough with the war mongering apple has more technology than iran!

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  4. so when will we see paul take on obama in a one on one debate then we will see whos electable lets go dr paul 2012!!!!!!!!!!!!!!!!!!!!!!!!!

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  5. President Paul!!, President Paul!!, President Paul!!..........

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  6. Take the wage of your first job, and look at the price of gold of that year, compare that to your current job and today's price of gold. Notice something.. Yeah you ain't making nothing. Take the biggest loan you can get for as long as you can get it, cause 100k will be minimum wage in 30 years. Well that might be extreme but who knows

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  7. I would not buy on loan for anything at this time and day. I pay cash or I dont need it. Oh no I pay cash that make me a terrorist. LOL

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  8. Bottom keep the pressure on. Even If Ron Paul does not get the Republican Nomination( we all know he should according to actually popularity) He has given us a solid direction to move forward in a good foundation to build upon and proof that public outcry gets results.. Keep the pressure on Never Give Up !!! Audit and expose the Fed and watch it crumble. We must be diligent and ready for swift action to replace it with a sound money system.

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  9. The worst terrorists dont live in caves.They are leaders of countries who do what is required to satisfy the interests of Bankers and Corporations.They often state they believe in God but possess zero compassion for the human beings their warmongering kills.Presidents Kings and the wealthy elite are the real enemy of the human race.The War of Terror they have waged for 11 years is not against just Iraq Afghanistan etc it is against all freedom loving people in the world.That's the truth.

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  10. I'm not sure about this Ron Paul guy anymore....

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  11. OKLAHOMA'S got you Ron Paul!

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  12. Guys, if you keep responding to ju88ff/trolls, you're going to keep giving him all the attention he wants. He wants you to get pissed off and argue with him. Stop giving him what he wants. I'm tired of going to these Paul videos and you guys making a fucking celebrity out of him.

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  13. Watch Ron Paul get destroyed tomorrow on Super Tuesday. :)

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  14. So reality is the polls and votes are fixed. Ron Paul is not winning and Israel or our Z.O.G. will cause us to go to war with Iran. They are somehow a "threat" even though troops have them surrounded, Islamic countries around them have been destroyed, sanctions are harsh and somehow we forget that the U.S. are the ones that actually USED nukes in the past. Israel stole their land with violence. What do we do people? Seems we are quite screwed.

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  15. RP2012

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  16. I spoke to a romneybot and tried to convert him---lol

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  17. The Rick Santaurum Robot just called my house... I TOLD HIM TO FUCK OFF THIS IS RON PAUL TERRITORY, OKLAHOMA WANTS RON PAUL 2012!!

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  18. END THE FED
    END THE FED
    END THE FED
    END THE FED
    END THE FED

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  19. God bless Ron Paul

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  20. HEY RON PAUL SUPPORTERS!! : Ron Pauls final donation push for super tuesday is currently at $963,900.00, please donate anything, even if its just 5$ or 10$!!! lets hit 1 million today!!! I donated 10 dollars today and i feel great! just remember that the pocket change you donate will come back to you in the form of 1$ trillion returned to the people!

    Please like and share this comment!

    Ron Paul 2012!

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