Ron Paul: End the Fed and Restore Sound Money





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 One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.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.



style="display:inline-block;width:728px;height:90px"
data-ad-client="ca-pub-3666212842414688"
data-ad-slot="9478233584">

Likes(0)Dislikes(0)

378 Comments:

  1. I swear Ron Paul seems like Thomas Jefferson reincarnated.

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  2. Canada for Ron Paul 2012

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  3. 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)

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  4. 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)

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  5. 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.

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  6. 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

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  7. 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

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  8. 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

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  9. the people in True numbers will block out the globalist spam

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  10. way to comment on your own comments lol

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

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

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  12. Obama doesn't attend these????? but he can attend Bilderberg?

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  13. 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

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

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

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  15. Hang the sound guy

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  16. 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?

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

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

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

  18. 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!

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

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

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

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

    Likes(0)Dislikes(0)

    Like or Dislike: Thumb up 0 Thumb down 0

Leave a Reply

Your email address will not be published. Required fields are marked *


two × = 10

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>