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 One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.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. i make minimum wage how dose the goverment forcing a higher wage for me help if all the prices go up? plus it kinda a contract if you take a job and you find the work isnt worth the pay quit.

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  2. i make minimum wage how dose the goverment forcing a higher wage for me help if all the prices go up? plus it kinda a contract if you take a job and you find the work isnt worth the pay quit.

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  3. is it there job to be stupid. the chick in the yellow. "no no not where they messed up just the part where they did right. see just cause they got us here shouldn't we let them try and get us out?" how paul doesn't give him self an hour and do a class on common sence or ethics. how can these people not be evil?

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  4. is it there job to be stupid. the chick in the yellow. "no no not where they messed up just the part where they did right. see just cause they got us here shouldn't we let them try and get us out?" how paul doesn't give him self an hour and do a class on common sence or ethics. how can these people not be evil?

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  5. FUCK.. DO YOU THINK WE NEED ANITHER ENTITY? MAYBE WE NEED ANOTHER DICISION, ANOTHER RULE, ANOTHER BILL PASSED, ANOTHER GOVERNMENT AGENCY.. WHO THE FUCK WAS THE BITCH IN THE YELLO JACKET.. JESUS.. THIS IS OUR FUCKIN GOVM'NT

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  6. I wonder what Youtube did to the Audio of this video to make it sound so annoying. Google, Facebook, and Youtibe are all interconnected to idedntify you, track you, brainwash you, and affect your overall health and well being... and affect the outcome of your prosperity in regards to your workplace depending on weather or not you conform with the norm.

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  7. The minimum wage increases unemployment among low-skilled workers. If someone's productivity is not worth $7.25/hr, that person will not be able to find a job. Better to have a low paying job than none at all. Ron Paul is right--we would be better off by eliminating the minimum wage.

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  8. What's wrong with Gary Johnson? If Ron Paul is not on the ballot, why not vote for the libertarian candidate? Write-ins don't show up in the statistics, so the best way for us to send a message is to vote for the libertarian candidate, Gary Johnson.

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  9. Write-ins don't show up in the statistics, so the best thing we can do to send a message is vote for the libertarian candidate, Gary Johnson.

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  10. thanks to you paultards nobody took him seriously. way to go.

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  11. You write Ron Paul's name on the ballot anyway

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  12. Even if he doesn't win said nomination I will write his name in. The political spectrum has convinced some people that it's better to 'settle' when voting on such significant positions within our government. I refuse. I will vote for no lesser individual, man or woman, then I deem fit under my opinion to operate the great machine which is our govt. Except that right now it's far from great because we've allowed all types of characters to undermine its very nature and existence. Shame on us....

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  13. This country is trillions of dollars in debt and Obama violates the constitution every which way from sunday especially with that Illegal NDAA bill. If Ron Paul does not win the nomination, Lets make Johnson President by voting for him in the upcoming general elections- Johnson for President, let's support the libetarian nominee Gary Johnson for President of the United States of America

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  14. Minimum wage is fucked up dude. Just think about it if you didn't have minimum wage a lot of jobs that built America wouldn't be overseas.

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  15. RonPaul is a bigoted, Nazi-esque right wing thug, just like his creep of son. They both give their lives to make sure that you will work until the day you die for your employer-overlord, completely dependent on them and unable to quit for fear of your children losing health coverage. Richie Rich is up there decrying poor people having to spend $4 on a light bulb, but thinks nothing of making them pay $100,000 for a week in hospital, or half a million for four years of college

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  16. Is that Elmer Fud at 39:20?

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  17. 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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  18. because the other is broke

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  19. Fuck ron paul, hes a piece of shit politician like the rest of them. One of the things He wants to rid is minimum wage wtf?

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  20. Voter Fraud, Corruption, and Assault Against Ron Paul Supporters at Arizona GOP Convention (text and 3 videos):

    http://theintelhub.com/2012/05/22/alleged-voter-fraud-corruption-and-assault-against-ron-paul-supporters-at-arizona-gop-convention/
    —————————————————————————————–

    OKLAHOMA — The GOP Fraud there is legally challenged!

    https://docs.google.com/file/d/0BycOffR9JYFpMmlmWGVvTmZDSDg/view?pli=1&sle=true
    —————————————————————————————-

    More GOP perfidy out of Massachusetts !!!

    Read and reply to this!!!!

    http://www.dailypaul.com/235514/what-should-they-do-ma-delegates-must-sign-an-affidavit-that-they-will-vote-for-romney-on-the-first-ballot
    ——————————————————————————————-

    Ron Paul Sweeps Minnesota — Rmoney gets a Doughnut!

    http://ronpaulflix.com/2012/05/rachel-maddow-on-ron-paul-winning-minnesota-may-22-2012/

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    • Something we’ve all overlooked — Puerto Rico’s 20 delegates for Rmoney must be removed from the count (and banned from attending Tampa)! Legal actions should be filed NOW!

      Since Puerto Ricans CANNOT vote in the General Election for President — they MUST NOT be allowed to INFLUENCE which republican goes to the General Election. It would be the FINAL TRAVESTY if the 20 delegates of a NON-State are the deciding factor in favor of the Mitt!

      Any suggestions how to stop this?

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