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 One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.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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Yes Sir !!
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but then wont we have another war of 1812????
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NO!!! If Ron Paul doesn’t win, you should go for BILL STILL. Johnson is a crank, he doesn’t even believe anything illegal happened on Wall Street. Idiots!!! Why do people keep looking up to liars and psychopaths.
»crosslinked«
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whats up with the sound
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whats up with the sound
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That’s great, but don’t type with all caps.
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THIS IS MY PRESIDENT!!!!! WHAT A WONDERFUL TALENTED AND EXPERIENCED PERSON RON PAUL IS INDEED. PLEASE WAKE UP FROM YOUR STATE OF DENIAL MY FELLOW AMERICAN ZOMBIES THAT WE STILL HAVE A CONSTITUTION AND BILL OF RIGHTS IN TACK BECAUSE WE DO NOT AND YOU SHOULD BE VERY VERY AFRAID NOW!~!~!~! IF YOU REFUSE TO COME TO GRIPS WITH REALITY THAT WE ARE NO LONGER A FREE REPUBLIC THAT HAS RIGHTS AND WE ARE BANKRUPT ALL OF US WILL SUFFER GREATLY! INCLUDING “YOUR” GREAT-GRAND KIDS ANN THEN SOME! BLOODY o_o
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These idiots in Washington are fucking up the world economy because the power of America in world finance. I am really glad our brothers outside of the US espouse these ideals as well. Maybe the people around the world that love old Ron Paul should develope their own country.
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he is truth teller, but not many people can handle that. sorry about that.
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You can’t hear anything after a minute!
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If Ron Paul doesn’t win the GOP nomination, all Ron Paul supporters should vote for libertarian candidate Gary Johnson in the general election. Thumbs up if you agree!
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Mr. Sydinsane, as I understand it, Ron Paul has always voted against raising the budgets of the War machine. He believes in bringing the troops home, building up infrastructure & defending our borders. Will you please give me a reference so I can see a situation where Ron Paul wanted to raise taxes & rape the American citizens the way the last two presidents have?
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he is running for president and still doing his job….he kicks ass
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Why put the only principle based person Ron Paul in a war mongering party based establishment that will assassinate him like Kennedy? Gullible Americans deserves what it gets that’s why Obama is here and what Govern-Mental fear mongering fools do..
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Jobs must come from growing business, entrepreneurs, innovations, via right education, political, and economic policies. Current situation is not fostering free market and stable economic and sound tax, thus new businesses are not happening. Wealth has be spread via aforementions.
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And why is the room empty??? Is this a closed session?
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They need to fire the sound guy.
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Ron Paul has been buying Gold when it was $20.00 an ounce. People are just now waking up to Gold at $1,500+ an ounce. Ron Paul truly knows the game!
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Why does the government hate good presidents/whatever so much?
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Thats what I was thinking, and I know it’s true
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EXACTLY EVERYTHING IN AMERICA IS FUCKIN RIGGED
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HELL YEA US DUMB AMERICANS BETTER VOTE FOR THIS MOTHER FUCKER OR WE ALL DEAD
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HELL YEA US DUMB AMERICANS BETTER VOTE FOR THIS MOTHER FUCKER OR WE ALL DEAD
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Is anyone else having problems with the audio of this video?
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The deceased “Ron Paul’s” butler is ungrateful.
This guy from Africa continent land was the deceased “Ron Paul’s” butler.
But the Butler did bad things to his child after his death. And the butler stole from him after he is dead. And the butler stole all the inheritance from the deceased “Ron Paul” that the butler knew of by kidnapping the child and dumping his body overseas.
This butler then stole the “Ron Paul’s” name and credentials.
This butler is ungrateful.
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We’re trying. Our media, establishments, and ignorant citizens are against us though. It’s not as simple as voting when the voting is rigged.
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If Ron Paul doesn’t get the GOP nomination, all Ron Paul supporters should vote for Gary Johnson in the general election. Thumbs up if you agree!
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if you don’t vote for ron paul. Seriously. very fucking seriously. you are following the wrong things in life
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we are voting for him, so piss off your dumb shit brit
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YOU FUCKING RETARDED AMERICANS BETTER VOTE FOR THIS GUY
GREETINGS,
REST OF THE PLANET.
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what a fucking jagoff
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Love you Ron Paul!!!!!
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Those “technical difficulties” with the fed answering equipment is conviently distracting. Almost as if it were on purpose!
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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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Wtf…the sound is garbled…..fuck YouTube.
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