Ron Paul: End the Fed and Restore Sound Money

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by Ron Paul

Last week I held a hearing to examine the various proposals that have been put forth both to mend and to end the Fed. The purpose was to spur a vigorous and long-lasting discussion about the Fed’s problems, hopefully leading to concrete actions to rein in the Fed.

First, it is important to understand the Federal Reserve System. Some people claim it is a secret cabal of elite bankers, while others claim it is part of the federal government. In reality it is a bit of both. The Federal Reserve System is the collusion of big government and big business to profit at the expense of taxpayers. The Fed’s bailout of large banks during the financial crisis propped up poorly-run corporations that should have gone under, giving them a market-distorting advantage that no business in the United States should receive. The recent news about JP Morgan is a case in point. JP Morgan, a recipient of $25 billion in bailout money, recently announced it lost another $2 billion. If a corporation shows itself to be a bottomless money pit of “errors, sloppiness and bad judgment,” the Fed shouldn’t have expected $25 billion in free money to change that or teach anyone a lesson in fiscal discipline. But it determined that this form of deliberate capital destruction was preferable to one business suffering bankruptcy. Clearly, some changes need to be made.

Several reforms for the Fed were discussed at the hearing. One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.

Another reform calls for changes to the composition of the Federal Open Market Committee. Still another proposal was for outright nationalization of the Fed or of its functions. But if what the Fed does now is bad and inflationary, allowing the Treasury to print and issue money at-will would be even worse, and could possibly lead to a Weimar-like hyperinflation.

The problems and advantages of the gold standard were discussed at the hearing. The era of the classical gold standard was undoubtedly one of the greatest eras in human history. For a period of several decades in the late 19th century, the West made enormous advances. However, the gold standard was still run by government. The temptation to suspend gold redemption reared its head again with the outbreak of World War I. Once the tie to gold was severed and fiscal restraint thrown to the wind, undoing the damage would have required great fiscal austerity. Instead, the Western world proceeded to set up a gold-exchange standard which lasted not even a decade before easy money led to the Great Depression.

While returning to the gold standard would certainly be far better than maintaining the current fiat paper system, as long as the government retains the power to go off gold we may end up repeating the same mistakes.

The only viable solution is to get government out of the money business permanently. The way to bring this about is through currency competition: allow parallel currencies to circulate without receiving any special recognition or favor from the government. Fiat paper monetary standards throughout history have always collapsed due to their inflationary nature, and our current fiat paper standard will be no different.

It is imperative that the American people be educated on the dangers of the Fed and the importance of restoring sound money. The laying of the groundwork must begin today, so that the American people will be prepared for the day when the mirage the Fed has created evaporates completely. The full hearing footage is available on my website and I would encourage every American to take a look.


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378 responses to “Ron Paul: End the Fed and Restore Sound Money”

  1. elliaddy2

    New York for President Ron Paul 2012

    »crosslinked«

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  2. OrienteLopez

    Cuba, all the cubans around the world, and everyone that left their country because of big goverment vote for Ron Paul 2012!!!!

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  3. Justice65656

    Mitt also plans on removing estate taxes, its 5 million dollars that is not taxed per individual at all upon death, for families its 10 million dollars not taxed upon death and anybody above that number is taxed at 35%. And corporate taxes Mitt wants to reduce the corporate tax from 35% to 25%. This is Mitt’s Job’s plan, tax breaks for the rich. Mitt doesn’t care about creating jobs, where in this jobs plan does it look like Mitt is focusing on jobs.

    Obama 2012

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  4. Justice65656

    Romney’s Economic Plan $6.6 trillion in tax cuts in 10years. Mitt’s tax cuts with interest over 10years come out to $7.8 trillion in tax cuts in the next 10 years. Mitt says his going to reduce taxes for middle class households that are making fewer than 200k but this capital gains tax cut doesn’t benefit the people making 200k; it benefits anyone making a million dollars or more a year. People in the 200k don’t make a significant amount of capital gains for this tax break to really affect them

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  5. fucut00b

    I wasnt mad or anything i just run into a lot of people that are for everyone besides Paul. It baffles me how so many people can be for someone like Romney and then be so against this man it kind of makes me sick. To answer your question now what? Now comes more taxes and more restrictions and more loss of liberty in exchange for fake security no matter who wins. Now comes more war and more borrowing from china until china owns us and treats us like their own people. The future looks dark

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  6. pizzanbeer11

    Only Ron Paul could get a bunch of college kids to watch an hour long video on economics.

    Canada for Ron Paul 2012 :)

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  7. Imakeplanesboom

    EVERYONE should sign the petition to have a RON PAUL VS. MITT ROMNEY DEBATE that will take place on May 24th in Texas if there are 15,000 signatures. Simply type in MAY 24th 2012 TEXAS DEBATE in google click on the sign the petition link and sign it online. We have 10,800 signatures and the YouTube community can easily bring that up to 15,000. This debate will probably be a one on one debate between Paul and Romney. And maybe Paul can set the record straight on who has the most delegates.

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  8. jtropeano

    Barney sounds like he’s been gargling with hot tar.

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  9. Prietory

    YES he can! and is doing very well with delegate control!

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  10. g1ng3r1

    could ron paul still become president? someone answer please!!!!! the world cant have obama or romney as the leader of the free world. i would be seriously worried-

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  11. AndrewChan84

    Not that Ron Paul isn’t pretty fit for a person his age, but as a person who studies molecular biology, I am compelled to say that Ron Paul needs a diet overhaul away from standard American diet. That is how Steve Jobs got cancer.

    A low-glycemic diet, with organic vegetables, fruits and low-glycemic gluten free grains (like millet, amaranth, quinoa and mung beans), plus raw aloe and citrus fruits will give the DNA plenty of viability to repair itself.

    Wish I can tell him in person.

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  12. g1ng3r1

    it scared the shit out of me

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  13. edwinorc

    Australia for Ron Paul 2012

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  14. paulrevere1010

    now you’re heading down the right track, ya those tax credits suck cause govmnt has to take that from someone to give it to them. thats not the answer is it? its not fair so ron paul is saying no more to taking from one to give to another. so imagine you get to keep your money, not having to carry the load and gov doesnt take some crazy amount for tax for soc sec, medicare, medicaid, welfare system, food programs, student loans, foreign aid, militarism. no govmnt should be much smaller.

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  15. Threeejw

    Saudi Arabia for Ron Paul 212

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  16. Ikikura

    I swear Ron Paul seems like Thomas Jefferson reincarnated.

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  17. K3BACON

    Canada for Ron Paul 2012

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  18. Justice65656

    Unless you’re a billionaire I would seriously take some time and do some research about the Koch brothers. I support Obama but what the Koch brothers are doing affects Republicans and Democrats and I believe all Americans should know the truth

    GET THE TRUTH, RESEARCH THE KOCH BROTHERS or Watch (People and Power — The Koch Brothers)

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  19. Justice65656

    Unless you’re a billionaire I would seriously take some time and do some research about the Koch brothers. I support Obama but what the Koch brothers are doing affects Republicans and Democrats and I believe all Americans should know the truth

    GET THE TRUTH, RESEARCH THE KOCH BROTHERS or Watch (People and Power — The Koch Brothers)

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  20. Justice65656

    The Koch brothers are manipulating the oil markets and we are all paying these ridiculous gas prices while they make billions. Mitt Romney supports the Koch brothers, unless you’re some billionaire, I would take a good look at what’s really going on. These guys think its a joke while every American and corporation pays threw there ass because of the Koch brothers. I support Obama but what the Koch brothers are doing affects Repubs and Democrats and I believe all Americans should know the truth.

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  21. WesternVoices6

    The Zionists are so desperate to silence the Truth that they are now collectively conspiring to flag all Truth-telling comments as spam!!

    They are engaging in this shameful behavior as a last ditch effort to prevent the public from learning the suppressed Truth! Their efforts are in vain however, as the WHOLE WORLD now despises the Zionists!!!

    For a FREE informative BOOKLET& video on the Zionist-engineered INTENTIONAL destruction of White people go to: w w w. youtube. com/watch?v=n663eVTSyS8

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  22. WesternVoices6

    The Zionists are so desperate to silence the Truth that they are now collectively conspiring to flag all Truth-telling comments as spam!!

    They are engaging in this shameful behavior as a last ditch effort to prevent the public from learning the suppressed Truth! Their efforts are in vain however, as the WHOLE WORLD now despises the Zionists!!!

    For a FREE informative BOOKLET & video on the Zionist-engineered INTENTIONAL destruction of White people go to: w w w. youtube. com/watch?v=n663eVTSyS8

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  23. MagnitudeOfSoul

    Dont be surprised if Ron Paul is a front!!!
    I hope hes not but just think about it,, OH and for those that know about the accurate 1995 illuminati card game.. check this out ..
    w.w.w . 911truth . ch/ron_paul . jpg

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  24. Danaman117

    the people in True numbers will block out the globalist spam

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  25. Danaman117

    way to comment on your own comments lol

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  26. Danaman117

    LOL we the people have seen through your fake ass soul, here sheepy sheep

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  27. Danaman117

    Obama doesn’t attend these????? but he can attend Bilderberg?

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  28. WesternVoices8

    The Zionists are deliberately destroying all Western countries! They immigrated into our nations and then secretly declared war upon us!

    They conspired to take control of our nation’s infrastructure through carefully orchestrated acts of TREASON! They became our Bankers, Politicians & media owners. Their goal is to obliterate the middle class!

    For a FREE informative BOOKLET & video on the Zionist-engineered INTENTIONAL destruction of White people go to: w w w. youtube. com/watch?v=n663eVTSyS8

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  29. tuck295q

    I don’t know how liking and supporting his philosophy and logic become worshiping him as god. But anyway, no thanks.

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  30. temudjin1155

    Hang the sound guy

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  31. supadudeism

    Galbraith and Gollum stating that the US treasury bill or Government bond is still the go to safe investment when in fact 77% of the purchases are made by the Fed is ridiculous.

    Is the other 23% all they could sell on the open market or is this a concerted attempt to inflate the value of those Bonds?

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  32. loveandlove231

    go to change.org and search mitt romney vs ron paul may 24 2012 we need 15000 we only have 10500

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  33. wootfiles

    Join the “Rise for Liberty” moneybomb on May 17th to help Ron Paul WIN!!!

    They’re asking for only $650,000 but think about THIS.

    Ron Paul has over 900,000 likes on facebook, if each person gave just $5.00 then he would get over 4 MILLION DOLLARS! Let’s show Ron Paul that HE STILL HAS OUR SUPPORT.

    Rise for Liberty Moneybomb.
    May 17th.
    DO IT!

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  34. darknight651

    Liberty,Freedom,constitution bla bla bla bla bla bla bla bla bla…….. Ron paul 2012.

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  35. HandofJacob

    please just get your name on the ballot sir, America needs you.

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