Ron Paul: End the Fed and Restore Sound Money

378 Responses



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 One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.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

    bottom line: those trillions of dollars everybody is talking about were created out of thin air and loaned to the US government by the Fed at interest. Our taxes go to paying off the interest debt, not for federal programs. obama’s stimulus plan was the worst thing he could have done for the economy. anybody who says he got stuck with cleaning up the mess should be told that obama had a chance to do the right thing and he FAILED. you will not find a competent economist who disagrees.

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  2. avzeolla

    bottom line: those trillions of dollars everybody is talking about were created out of thin air and loaned to the US government by the Fed at interest. Our taxes go to paying off the interest debt, not for federal programs. obama’s stimulus plan was the worst thing he could have done for the economy. anybody who says he got stuck with cleaning up the mess should be told that obama had a chance to do the right thing and he FAILED. you will not find a competent economist who disagrees.

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  3. mtomlin82

    I hope ron paul has great security because trying to bring down the corrupt is very dangerous. just look at JFK… Ron Paul could save this country by raising awareness about these issues, i just hope he is staying safe.

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  4. YamiPoyo

    They need better mic’s

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  5. becij13

    mmmm now lets think about that. lets say if the bg wanted to donate to paul genuinely wanting him id say theyd do what donators to romnay have, created a company then closed it after donating, that sorta thing that would aloow him to get secret donations. now if they wanted to create an issue of having bilderberg donations id say theyd do it in the open….as thiel did!

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  6. MadameLouise Bonnie

    Go Jeff Bootstraps Fisher as our next President with Vice President Ron Paul
    Fuck the bastards all of them who cover up the truth which a nice Democrat & friend
    of Ron Paul became the American Patriot. A man who was even set on fire & shot & stabbed & imprisoned because Bootstraps understood the sanctity of life among We the People World-Wide. Fuck the Police State Fuck the Jew Controlled Media Fuck The NEW World Order
    Everyone just google
    Election Fraud Jeff Fisher
    & lets get Ron Paul to NYC

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  7. jalend0gg

    lol Dr Paul can’t hear cause hes gone to so many rallys of thousands and thousands of people screaming END THE FED!!!!

    »crosslinked«

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  8. GuysCallMeShawna

    Fuck you. Johnson would have to improve to be a douchebag.

    All the Paul supporters I know are writing him in.

    Ron Paul only.

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  9. IAMHEWHOAM

    My source is YO’ MOMMA!

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  10. Robin Van Persie

    your sources are?

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  11. ihaveadhd1

    your sources are?

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  12. 32whatsup

    Yes, and he will also end all the foreign wars. He only cuts Medicaid and food stamps that much in the first year. Read my comment again–I very clearly said he would not cut *Medicare* in the first year. Medicaid and food stamps will be block granted to the states, so their distribution will be much more efficient (only going to people who need them). How else are the Greeks supposed to solve their massive debt problems? Fiscal stimulus? The Greeks NEED austerity, whether they like it or not!

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  13. M M

    SHARE THIS: Call your Rep and tell them you want them to Co Sponser this Bill to Audit the Federal Reserve!! campaignforliberty(DOT)org/pro­file/7786/blog/2012/06/21/rsc-­members-not-cosponsoring-audit­-fed

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  14. M M

    SHARE THIS: Call your Rep and tell them you want them to Co Sponser this Bill to Audit the Federal Reserve!! campaignforliberty(DOT)org/pro­file/7786/blog/2012/06/21/rsc-­members-not-cosponsoring-audit­-fed

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  15. MELISSA84008

    SHARE THIS: Call your Rep and tell them you want them to Co Sponser this Bill to Audit the Federal Reserve!! campaignforliberty(DOT)org/pro­file/7786/blog/2012/06/21/rsc-­members-not-cosponsoring-audit­-fed

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  16. MELISSA84008

    SHARE THIS: Call your Rep and tell them you want them to Co Sponser this Bill to Audit the Federal Reserve!! campaignforliberty(DOT)org/pro­file/7786/blog/2012/06/21/rsc-­members-not-cosponsoring-audit­-fed

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  17. M M

    Call your Rep and tell them you want them to Co Sponser this Bill to Audit the Federal Reserve!! campaignforliberty(DOT)org/pro­file/7786/blog/2012/06/21/rsc-­members-not-cosponsoring-audit­-fed

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  18. M M

    Call your Rep and tell them you want them to Co Sponser this Bill to Audit the Federal Reserve!! campaignforliberty(DOT)org/pro­file/7786/blog/2012/06/21/rsc-­members-not-cosponsoring-audit­-fed

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  19. MELISSA84008

    Call your Rep and tell them you want them to Co Sponser this Bill to Audit the Federal Reserve!! campaignforliberty(DOT)org/pro­file/7786/blog/2012/06/21/rsc-­members-not-cosponsoring-audit­-fed

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  20. MELISSA84008

    Call your Rep and tell them you want them to Co Sponser this Bill to Audit the Federal Reserve!! campaignforliberty(DOT)org/pro­file/7786/blog/2012/06/21/rsc-­members-not-cosponsoring-audit­-fed

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  21. ummamaumaumammaummau

    First of all read RP’s restore america. He will only cut 15% off the Pentagon budget (same as Obama is pledging ironically) And he promises to cut entitlements with 60% the first year! So no, most of the cuts are not aimed at millitary spending. Peter Thiel is a “libertarian” because it is a way to make people cut their own throats. Austerity is not working, why don’t you ask the greeks about that. And the fact you defend wall street makes you an ideological, fanatic, worthless whore.

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  22. 32whatsup

    It’s not illegal unless there is a law against it. There is a difference between doing something that loses money and doing something against the law. Bilderberg members have a wide variety of political opinions–so what if one of them happened to be a libertarian? Much of Paul’s $1 trillion cut is to military and wars; Medicare is not slashed but gradually reformed. Most importantly though, Ron Paul plans to slash regulations so more jobs will be created, and then people won’t need food stamps.

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  23. ummamaumaumammaummau

    And as for Ron Paul; Why did Peter Thiel of the Bilderberger steering commitee donate 3 million to the Ron Paul campaign? What do you think happens when you cut out a trillion for medicare and foodstamps like Ron Paul suggests in his “restore america” proposal, when 50 million americans live in poverty. They are going to die from starvation and disease! “Good honest politicians” you say? What an oxymoron, I can’t believe anyone can be this stupid.

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  24. ummamaumaumammaummau

    Gary Johnson said in a debate that wall street did nothing illegal, just made bad decisions. So giving loans to homeowners who couldn’t afford to pay, and then repackage and sell those mortgages back and forth between banks for a profit until dumping the burden on the taxpayer is not illegal? Ofc he wants to destroy the Fed, but to replace it with a gold standard so you can pay back your paper debt with gold.

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  25. Middle Branch Media

    That nameplate on his desk should read Dr. Paul… Just sayin’

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  26. TriumvirateMediaGroup

    That nameplate on his desk should read Dr. Paul… Just sayin’

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  27. CHMovieStudio

    That nameplate on his desk should read Dr. Paul… Just sayin’

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  28. webbsdomain

    Care to back up your claims with any actual data? Or are you just running around yelling like an idiot?

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  29. offensiveIII

    To add injury to insult in what I consider to be a criminal conspiracy to deny Florida voters their legal right to vote, Internicola is reputed to be just one of hundreds — maybe tens of thousands — of U.S. citizens legally eligible to vote — being preyed upon by Governor Scott in his massive voter purge in this year’s election run-up.

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  30. amdramatic

    END THE MONEY CHANGERS!!!!!! 2012

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  31. offensiveIII

    By Tony Petramonaco — The shameless and anti-democracy voter purge by Governor Scott of Florida included Bill Internicola, a 91-year-old, Brooklyn-born, World War II veteran. He fought in the Battle of the Bulge and received the Bronze Star for bravery. He’s voted in Florida for 14 years and has never had a problem until these anti-democracy Republicans came to power in the 2010 mid-term elections. .

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  32. amdramatic

    END THE FED 2012
    THE FED HAS THERE OWN POLICE GET RID
    OF THEM THERE ONLY DOING HARM.
    IF WE DON’T LISTEN TO ARE 4 FATHERS
    THE US WILL BE NO MORE…

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  33. Mike Tyson

    sadly rand Paul is officially endorsing Romney

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  34. MrJosh91189

    sadly rand Paul is officially endorsing Romney

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  35. bethanie naylor

    freedomequalityloveforall.webn­ode.com If you have any ideas about a better world!

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