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 One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.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

  • The issue is the money creation process and we need to get back the control of it. Go Ron.

  • The issue is the money creation process and we need to get back the control of it. Go Ron.

  • The World for Ron Paul 2012

  • Germany for Ron Paul 2012

  • Mongolia for Ron Paul

  • Australia for Ron Paul 2012

  • RON PAUL 2012! ANd i am a SEMITE!

  • yea he’s so lame thats why your here to see him



  • Surfisher

    My thoughts:

    1) Ron Paul HAS to become our next President! The mantle of delivering us from this evil government is being thrust upon him — and he, being the brave Patriot, WILL accept it…we just need to do our part to assure his win in Tampa (make sure all National Delegates are aware of RNC rule #38)!

    2) Seems his team though, is pulling back the reins:

    a) Benton SEEMS to be conceding to Mitt (perhaps a ploy to have his hawks relax)?
    b) What is worrisome is the transparent attempt to conciliate with Rmoney (the bartering of principles is the downfall of liberty).
    c) The plea to have Ron Paul supporters respect the BLATANT Frauds perpetrated in front of their own eyes (that one is a shocker — rather than expose the GOP’s PERFIDY, the people are asked to close their eyes, be mute and accept their disenfranchisement for the sake of DECORUM)!?

    3) Benton further astounds us with the comment that Ron Paul may, or may NOT, speak at the Tampa Convention (ploy, subterfuge or just plain betrayal)? Ron Paul HAS to make his speech in Tampa (which will finally give his message a national exposure)!

    4) Benton seems to indicate that the goal is no longer to win the presidency, but rather to eventually change the Republican Party by the election of a few Ron Paul supporters in key positions (long term wishing, rather than a spot on solution — the nomination of Ron Paul)?

    My apodictic statements — and you can bet the farm they’ll transpire (unless Ron Paul wins)!

    A) Mitt Rmoney will NEVER become President (his “followers” are apathetic, and Ron Paul’s true supporters will NEVER vote for him, but will write him in instead — meaning Mitt will lose about 10% of the Republican vote and possibly 5% from the Libertarian one).

    B) Therefore, the BO will be reelected by a landslide.

    C) All of the myopic visions of Jesse Benton’s goal to have some Ron Paul supporters get elected in order to give the Republican Party “new vision”, will come to naught — since the BO will have 4 more years to finish the destruction of our nation he started (and by the time he’s done, the BO will also be successful in destroying ALL opposition…such as a “NEW” Republican Party ).

    D) Under the BO’s second term: Expect the disappearance of ALL individual Freedom, a total collapse of our economy, loss of right to private property, a police state that tells us what to do…or else…! And that’s just the tip of the iceberg!

    The ONLY Logical Conclusion that follows to prevent the above is:

    Mitt Romney HAS to withdraw from the race now IN FAVOR of Ron Paul, and pledge his total support of Ron Paul! (Failure to do so, will result in Mitt becoming an UGLY footnote in US History — as the one that ASSURED the BO’s DESTRUCTION of the USA, because he, Mitt, was too selfish to assume he may win — when faced with the FACTS he NEVER could)!

    Send this to the Mitt — Resign NOW in Favor of Ron Paul, or be cursed LATER as the one that Destroyed The USA!

    Below is Jesse Benton’s message:


  • I am voting for the dairy farmer from Greentree Pennsylvaina turned Obstetritian turned THE ONLY HOPE FOR THE FUTURE OF MAN KIND ! You guessed it Ron Paul. I happen to live a few miles from where he milked the cows that fed generations of my family. And I am also close to the place where he delivered some members of my family. What a guy! RON PAUL or BUST !
    I am sure of where this man comes from and who he is. That can not be said for Obama. And Romney is a wringer. U.S.A. Come on Wake up!

  • dr Rivlin is full of absolute USELESS old shit!. Proof? LOOK AT AMERICAN economic history between 1840’s through 1890’s. YOU’RE WELCOME dr DUMBASS! America had her best economic and job growth boom WITHOUT DEBT..WHILE USING GOLD AND SILVER AS LEGAL TENDER to pay for things!

    u.s. constitution and learning from historical mistakes…..LOOK IT UP!

    ron paul for president 2012 to 2020, rand paul 2020 to 2028

  • On the 15th of May 2012 Obama comes to NYC
    Announces homosexual issue
    Political no no
    Just look at the Bob Turner Weprin race last year
    It wasn’t the economy it was the issue of Gay Marriage that upset most Hebrews.
    It will upset many southern Christian Democrats also
    Remember the Reagan Democrats in 1980 &1984

    Duh do the math
    Its May
    The Election is November
    Now lets see how Mitt Romney waffles on this subject as well
    Jeff Fisher addresses the World Part One youtube
    read all comments please!

  • Lol this guy isnt a presidential candidate. Hes lame

  • ” you’ll never forget the 5th of November THIS damn time because the time of tyrants hiding as decent human beings in plain site NEVER survives the test of time. Freedom is immortal and you CANNOT destroy an idea who’s time is long overdue…let alone has come.”

  • you support Obama ( aka REAL named= Barry Seotoro) and you think you have room to talk here? I noticed you said ” support” ..not ” supported” meaning you STILL PRESENTLY support that hitler want-to-be illegal dual citizen. Please don’t waste our time. This video has nothing to do with Seotoro nor his idiotcracy about the federal reserve and the real sources of why our prices keep rising while overall life quality declines. Tell your faithful fuhrer one thing.

  • john
  • I’ll write his name in REGARDLESS. I dont give a jack damn WHO they claim is left. ron paul is the only real choice.
    Remember…Remember….the Fifth of November. INDEED. \m/