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 One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.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. Statistics are what people look at for information. Just because you don't care about them doesn't mean other people won't be looking at them.

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  2. Fuck statistics man. They're full of shit

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  3. write Dr Paul in

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  4. I cannot look at Dr. Rivlin without feeling sick, she's not looking straight, she talks like she's forgetting her words quickly or she's nervous. ugh lizard faced

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  5. And you should talk?

    Do you realize how many times Obama broke his Oath of Office. Now, that's real TREASON! Extending the unPatriot Act, NDAA, making protest a felony, assassination by Executive Order (even American citizens).

    And Romney is a robot with a short-circuit; he keeps flip-flopping on issues, sometimes even in the same day! But on the critical issues Romney=Obama... more war, more insane spending, more big government, more trashing the Constitution.

    President Ron Paul, 2012

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  6. And you should talk?

    Do you realize how many times Obama broke his Oath of Office. Now, that's real TREASON! Extending the unPatriot Act, NDAA, making protest a felony, assassination by Executive Order (even American citizens).

    And Romney is a robot with a short-circuit; he keeps flip-flopping on issues, sometimes even in the same day! But on the critical issues Romney=Obama... more war, more insane spending, more big government, more trashing the Constitution.

    President Ron Paul, 2012

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  7. Ron Paul to WIN — Or America to END 2012!

    Here is the difference btwn Perfidy Mitt and Honest Ron Paul:

    On one hand (more apt: underhanded) — the Mitt (who’s only real support is NOT for him, but AGAINST the BO — the usual voting for “the lesser of two evils” mentality) knows he needs to resort to all frauds and crookedness, to have a chance to win the nomination (in order to lose to the BO). These are the forces of the Dark Side.

    On the other hand — there is Light! Ron Paul’s message of what is TRUE is irrefutable. It has ignited the hopes of all good people in our nation (and around the world) that Truth will win out over Lies, Good will trample Evil, Liberty will prevail against Tyranny, Government will bow to the Will of The People (not the other way around as the BO and the Mitt desire), all senseless Wars will be put to an end (we’ll speak softly again, but also carry a big stick), The Law of the Land will be the Original US Constitution (and all the hundreds-of-thousands of OPPRESSIVE Laws, Rules and Regulations passed unconstitutionally will be NEGATED), that the Citizen will be Sovereign AGAIN (and Government will become the Subject), that US Money will have Intrinsic Value AGAIN (not Promissory Notes printed ad hoc by a Private and Corrupted to the CORE Organization: The Feds) thus guaranteeing Prosperity once again…and the list goes on!

    Despite the organized effort by the controlled media (here and abroad) and the nefarious means of our crooked politicians and their hired thugs, The People have embraced the Last American Patriot — Dr. Ron Paul — and the liberty flame that burns within us WILL NEVER be extinguished!

    Our time is NOW (since we’ll reach the Point of No Return if the BO or the Mitt steal our Nation away from US) — We, the REAL AMERICAN PEOPLE, will fight for this cause that is Just and Honorable! You, the Despots in Power NOW, may spill our blood, but unless you kill us all, We, The Real American People, WILL END your reign of tyranny and corruption!

    Ron Paul to WIN — Or America to END 2012!
    (there are no other options!)

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  8. wRONg Paul is a fucking clown. He is a racist nazi PIG and the KKK are cumming in their pants over him, so fuck y'all ! ! !

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  9. Out of all this talk I still find no resolve.Stating shoulda, woulda, coulda doesn't get the work done.

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  10. Governments should not regulate their citizens money supply, The free market should, with those that debase tried for fraud. People would not willingly accept a money that 'natually' devalues. It takes coercion for that to happen, coercion such as legal tender laws. Remove those and either the dollar would be obsolete or be forced to hold value. I would bet my life the former would happen first, though. We need no Fed or government to hold up a value of our money at all.

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  11. RON PAUL IS NOTHING BUT A CONTROLED OPPOSITION. YOU ALL RON PAUL SUPPORTERS GOTTA REMEMBER ALL POLITCIANS JOB IS TO KEEP ALL THINGS THE SAME!!!!!! ALSO YOU YALL GOTTA REMEMBER THAT PRESIDENTS NOWADAYS ARE NOTHING BUT A PUPPERT AND A FIGUREHEAD THAT MEANS THE PRESIDENT DOESNT TRUELY RUN THINGS IN THIS COUNTRY!!!!!!

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  12. 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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  13. 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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  14. Ron Paul is unelectable: pfft yeah explain how he's been re- elected to congress 12 times
    Ron Paul is crazy: He knows much more than these other lunatics in D.C. You should do thorough economic/governmental studying and understand why big gov't is a real pain in the ass to our economy and the morals of this nation.
    Ron Paul is too old: Really? Don't you know he rides a bike 20 miles in the heat of Texas? Why are you so judgemental?

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  15. Ron Paul is unelectable: pfft yeah explain how he's been re- elected to congress 12 times
    Ron Paul is crazy: He knows much more than these other lunatics in D.C. You should do thorough economic/governmental studying and understand why big gov't is a real pain in the ass to our economy and the morals of this nation.
    Ron Paul is too old: Really? Don't you know he rides a bike 20 miles in the heat of Texas? Why are you so judgemental?

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  16. Today 5/26/12, the Genocide Division of Interpol,thanks to a male operative of theirs in Starbucks mgmt in Philadelphia released out of Lyon France photos and film footage of
    Mayor Michael Bloomberg rimming (licking ass) of two,one black American,one white British,
    both Jewish male prostitutes.
    More to come later!!!!!!!
    Spread the word ASAP

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  17. rules based inflation is not a sound dollar. a sound dollar is not a target, it is a fixed weight tied to an amount in dollars.

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  18. Write-ins don't show up in the statistics, but voting for the libertarian candidate will. If we want to demonstrate our numbers as a movement, we ought to vote en masse for Gary Johnson. If we do a bunch of write-ins, we will go completely unnoticed.

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  19. Dude...the fact that this video has poor audio doesn't mean it's the result of a conspiracy. It's just bad audio. That's all.

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  20. I disagree. I'm not against a Libertarian candidate but I'd prefer Ron Paul. Every person should enter Ron Paul as a WRITE IN and not vote for someone we know very little about.

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