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. END THE FED!

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  2. romney's one supporter disliked this

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  3. If the globalist truly had there way we would all be eating Smack Ramen noodles paying a prime rib price for it told to shut up and be thankful, while they gorged themselves on organic foods and laughed at the stupid common chattel.
    .

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  4. watch?v=SrWsPbRF-e4&feature=related

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  5. New York City supports Ron Paul...well i do

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  6. Thank you Dr.Paul !

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  7. Utube don't lie

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  8. This is the type of real info a President should give when he addresses the Nation. God bless Ron Paul !

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  9. I saw 3 Ron Paul signs along route 161 West bound in OH between columbus and granville. Come on OH, more signs!

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  10. Ariel Sharon was here (1 dislike)

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    • Mitt Romney = Judas Goat

      If not aware of this olden days' meaning — here it is:

      When sheep are led to be slaughtered, they instinctively feel something is wrong. So, mill around and bleat, but won't enter the gate leading to the one waiting to smash their heads with a sledge hammer. So, a Judas goat is placed in the pen. The Judas goat is trained to associate with sheep or cattle, leading them through the gate, and passing it safely — while its own life is spared, the ones flowing get their brains bashed!

      Mitt will lead us — and at the end of the gate, Bama will wield the sledge hammer….

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  11. ROCHESTER NY kinda supports RON PAUL :)

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  12. We are truly blessed to live in such exciting times. We just might have the chance to play 1775 all over again but this time we got our land and constitution already set!

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  13. Buffalo NY Supports Ron Paul...End The Fed NOW!!!!

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  14. RPR RonPaulResistance, Who's with me?

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  15. Ron Paul Supporters LISTEN UP. If shit starts to turn for the worse than we need to call to arms and get ready to take our country back. Some people are to stupid(Obama,Romney, Gingrich, Santorum) supporters to do anything so it is up to us. Don't let them take your 2nd amendment Rights. They already passed the Patriot Act, NDAA, Enemy Expatriation Act, and ACTA for the U.S. A law against the 2nd amendment is coming

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  16. cereal and beef are already sky high.
    $4 lb of beef $4box of cereal
    too damn much imo

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  17. If I was a reporter interviewing Mr. Paul I would ask him if he's been offered bribes, been blackmailed and/or otherwise had attempts at cooercion against him in some manner to "go away".

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  18. The N.E.E.D. Act,,, H.R. 2990 A Bill stalled in Committee in the House that will END THE FED...search it, download it and read it. It's a start; at least get it to the floor for debate and get a vote, so we know who to vote out in November.

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  19. God bless Ron Paul!!
    Good luck on Super Tuesday!!!

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  20. Dr. Paul,

    When hamburger and cereal become too expensive to be included in the Core-CPI, the only thing left to substitue for meat and cereal is dog food. Cereal and meat combined!

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