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 One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.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



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378 Comments:

  1. we are voting for him, so piss off your dumb shit brit

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  2. YOU FUCKING RETARDED AMERICANS BETTER VOTE FOR THIS GUY

    GREETINGS,

    REST OF THE PLANET.

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  3. what a fucking jagoff

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  4. Love you Ron Paul!!!!!

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  5. Those "technical difficulties" with the fed answering equipment is conviently distracting. Almost as if it were on purpose!

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  6. Alright people...it's time for all of you Ron Paul zombies to get off of his train. Grandpa is DONE! If you want to save this country, we need to untie around President Obama. We DO NOT need someone in office who takes his orders from the Mormon Church. Obama 2012!

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  7. Wtf...the sound is garbled.....fuck YouTube.

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  8. If Dr Paul doesn't get elected as president by the American people then send him down to Australia as we'll take him. cause we're also scrapping the bottom of the political barrel ourselves at the moment...

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  9. Spread his message, and vote for him. Thats all we can do. Saying he won't win will just become a self fulfilled prophecy, without action.

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  10. because you have to research computer voting fraud. If you see all the South Carolin charts they prove that the votes were swapped, just like the computers do it. the program eats itself so there is no trace...

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  11. If you would like to send a paper check, please send it to:
    Ron Paul 2012 Presidential Committee
    845 Plantation Drive
    Clute, TX 77531
    Please donate to Ron Paul for his official Stand for Liberty Money bomb at ronpaul2012 . com Help us save our country!!
    Please pass this on, thank you.

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  12. Kill the creature from Jekyll island! Ron Paul or we fall. A call to all fellow vets. Thank you for your service. Please regroup for the greatest fight of our lives. The fight to save the America that Thomas Jefferson and Samuel Adams fought for. rEVOLution!!! RON PAUL

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  13. DO NOT MEND IT.....

    END THE FEDERAL RESERVE BANK

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  14. you will not see Ron Paul on TV due to the
    Ownes of the News Media
    WILL NOT LET THEIR MINIONS TELL YOU THE TRUTH

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  15. thank you for the remarks to all the bullshit that the Owned News Media keeps saying cause if they don't they will lost their jobs the 1% does not want us to get the real change....you know what Obama promissed and did not do.....

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  16. i feel like obama gonna win but i hope ron paul speaks shit obama would say

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  17. im from jersey and i dont see ron paul on tv i dont here about him over here all i see is obama but i hope ron paul wins but thats not gonna happen

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  18. Why is only my left speaker working on this video?

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  19. WTF Why isn't he winning the primary, hes the best

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  20. Not voting Ron Paul? GTFO

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