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. what good is 1000 thumbs up if only Ron Paul supporters do it, we gotta be out on the streets, showin the people, thumbs up

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  2. The "fed" was passed in the dead of night during the Christmas Holiday recess in 1913, by a cabal of corrupt robber barons and politicians. Federal taxation came soon after to strap the American people with the debt payments. This "system" is the crux of most of the corruption in our government and has served to weaken our political system, while strengthening the strangle hold banks and foreign entities have on our country. We have lost our sovereignty!

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  3. Ron Paul give it up, you're failing miserably in the race. Just drop out of the race, because you're just wasting people donations for your campaign.

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  4. Ron Paul has be in congress how many years??? yet he hasn't passed on effective law.

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  5. he is not going to win. if conservatives want obama out of the white house - not that they should - romney is their best shot. but, that said, it says something about paul's character that he has such an ardent, expansive internet base. still though, ruling the internet isnt the key - in today's america - to achieving the presidency.

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  6. At Bain, Mitt Romney closed over a thousand plants, stores, and offices. He cut employee wages, benefits, and pensions. He laid off American workers and outsourced their jobs to other countries. He and his partners made hundreds of millions of $s while taking companies to bankruptcy.

    Mitt Romney is the bane of America.

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  7. "feds are gay" - blindedby2monkeys

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  8. 100 percent of income taxes was absorbed by the federal debt in 1981/2/or3!!! How much different is it now?!?!?!

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  9. I find it funny how Paul would lose 90% of his fan base if he changed his mind about legealizing drugs

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  10. https://www.change.org/petitions/cbs-news-60-minutes-get-ron-paul-on-60-minutes

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  11. The fact that mainscream media across the world ignores Ron Paul and yet the World of knows of and loves him says three things very loudly .. Number one the controlling elite own all mainscream media outlets . Number two they are scared shitless of his message . Number three truth and liberty can not be silenced. Long Live Ron Paul the Paul Revere of the 21st century

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  12. The world supports Ron Paul! I wish you all the best from Canada

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  13. I wish I was an American citizen GO RON PAUL!

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  14. 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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  15. Ron Paul's announced policy towards Fed is one of the main reasons lobbyists are spending huge sums supporting other candidates. Also, it is the reason that media is so afraid of supporting Ron Paul. Ron Paul blackout is not limited to the U.S media. Except a few countries, amazingly Dr. Paul has found mass media all over the world ignoring him. For instance, the mainstream media of Australia does not even mention his name. Check and verify. We as Americans should prove that democracy counts.

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  16. Bernake was originally called Beelzebub Rumsfeld Snake

    Wonder why he shortened it to just Bernake?

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  17. I agree with Ron Paul but while we're all debating various issues I suggest least we all wake up August 28,2012 with two ROBAMANEY'S,and no Ron Paul,that every registered voter go to AMERICANS ELECT DOT ORG and insure that RON PAUL becomes the first Internet Party Candidate for President. Lets not find ourselves in a big jam November 6,2012 without a RON PAUL to vote for.
    "REFUSE TO LOSE" "DISRUPT THE CORRUPT"
    Freedom and Liberty for all in the fall Vote for RON PAUL

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  18. the white obama

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  19. Obama disliked this!

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  20. I love Ron Paul, I fear if he keeps up this honest politics that someone will assassinate him. Any president who wanted to reform the fed/banking industry has met with an bullet. My family loves you Ron Paul and we know he is what our country desperately needs. It is disgusting how media is simply ignoring your campaign and I fear we are going to get another joke as our president.
    PS I am a retired officer who has served in the Marines for 14 years, this is the man we need leading us

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