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 One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.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

  • http://www.youtube.com/profile?user=noodzintheblue noodzintheblue

    LOL your funny. I guess your a Romnian huh? Well regardless of who you are or who you back internet toughguys like you are nothing but little tools behind a keyboard. In your mom’s basement or in a cushy little office job. I’m done responding to you after this because your just not worth the time and effort it takes to type.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=bluestreek004 bluestreek004

    Garbled sound? They don’t want us to here the truth.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=Sydinsane Sydinsane

    The only raping going on is when Ron Paul bends you over to take more of your money to build up his son’s war chest. Oh wait a minute…that’s not rape. You’re actually letting yourself get screwed by Ron Paul!

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=noodzintheblue noodzintheblue

    Ron Paul represents the law of the jungle, will you survive or are you one of the many scumbags that Uncle Sam rapes me to provide for? If you can’t take care of yourself you aren’t worth the space you take up. PS Stop being a ballbreaker asshole!

    »crosslinked«

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=noodzintheblue noodzintheblue

    Ron Paul represents the law of the jungle, will you survive or are you one of the many scumbags that Uncle Sam rapes me to provide for? If you can’t take care of yourself you aren’t worth the space you take up.
    PS Stop being a ballbreaker asshole!

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=tektheater88 tektheater88

    what is going on with the audio

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=tektheater88 tektheater88

    what is going on with the audio

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=fifwardtx2901 fifwardtx2901

    Houston Texas for RON PAUL 2012

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=clownboobies clownboobies

    Brooklyn for RON PAUL 2012

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=Justice65656 Justice65656

    The GOP is a very deceptive organization; people like the Koch brothers have been buying republicans in Congress for years. They just got busted in Wisconsin for elections fraud and for some reason this isn’t news. If you have time watch (People and Power – The Koch Brothers), this is the type of organizations that influence the GOP & Mitt Romney. Ron Paul doesn’t see how bad the GOP is which he stands for so I can not support him.

    Obama 2012

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=ares123thegodly ares123thegodly

    yep and romania for ron paul

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=clonefly clonefly

    The game is up, and about to change… Get ready.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=clonefly clonefly

    The game is up, and about to change… Get ready.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=PecaniAnna PecaniAnna

    RON PAUL!

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=CodenameBourbon CodenameBourbon

    Audiences
    This video is most popular with:
    Gender Age
    Male 45-54
    Male 35-44
    Male 25-34

    so much for that young fanbase theory. PEOPLE are concerned with the federal reserve.

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=u1eyed1ll u1eyed1ll

    RON PAUL FREEDOM FIGHTERS:

    You must be REGISTERED as a REPUBLICAN to Vote for Ron Paul in NJ, SD, CA & UT. No exceptions.

    DEADLINES to REGISTER: NJ 5/17; SD 5/19; CA 5/21; UT 6/11

    COPY N PASTE this everywhere! THUMBS UP!

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=007DuKito 007DuKito

    PEOPLE AROUND THE WORLD! warn everyone that if Ron Paul is not elected in America [USA] in 2012 there is no more hope…

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=Kalisbaby Kalisbaby

    DAAANNNG! Congressman Garrett got Game! lol

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=Sydinsane Sydinsane

    One day, all you young stoners will look back and ask yourselves: “why the hell did I give so much money to that old kook? I could have bought myself a couple more quarter ounces of pot instead.”

    Like or Dislike: Thumb up 0 Thumb down 0

  • http://www.youtube.com/profile?user=Kalisbaby Kalisbaby

    There’s another hour and ten minute video for part two! He’s frickin’ Amazing! Washington state for Ron Paul 2012!!

    Like or Dislike: Thumb up 0 Thumb down 0