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 One was a call for the full employment mandate to be repealed, in order to allow the Fed to focus solely on stable prices.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. Mr. Paul, watch this...you will be quite empowered !
    youtube.com/watch?v=Ul3Iyq1i_30

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  2. Dr. Taylor is an evil sophist. Take him down.

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  3. Who is the evil troll in the green elf suit?

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  4. Slovenia for Ron Paul 2012

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  5. who is ron paul? haha

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  6. WTF Neo Anderssons passport expires on 911
    youtube.com/watch?v=X1IVYQJoHSk

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  7. DC is Under Rule of Vatican / Roman Law!
    GET THAT GOLD FRINGE OFF MY FLAG!
    and end the FED

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  8. DC is Under Rule of Vatican / Roman Law!
    GET THAT GOLD FRINGE OFF MY FLAG!
    and end the FED

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  9. Got a Birth Certificate? You are a Fictitious Corporation Created by the British Accreditation Regency (BAR Association)

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  10. Abolish the Federal Reserve System.
    and
    Abolish the BAR
    (British Accredited Regency)

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  11. Abolish the Federal Reserve System.
    and
    Abolish the BAR
    (British Accredited Regency)

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  12. Reupload this with fixed audio please!!!

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  13. Umm what Happend to the audio after 17:46. ?

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  14. PLANET X FOR RON PAUL!!! IT'S WHERE HE WAS BORN!!!!

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  15. Australia for Ron Paul 2012

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  16. You sir, are one steamy piece of shit and you know it but don't care. Are you proud to be the most hated on YouTube? If so many people hate you and complain about you, don't you think that...maybe you are wrong? Do yourself a favor and go spread your nonsense at a Ron Paul rally so we can see what you can accomplish.

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  17. Ron Paul to WIN in Tampa --- see how below!

    Superb article --- must read!

    http://www.huffingtonpost.com/robin-koerner/its-romneys-to-lose-heres_b_1519827.html?ref=fb&src=sp&comm_ref=false

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    • At Tampa --- would this be the best Sign to carry?
      Please, submit yours.

      DELEGATES:
      Stop the Fraud--
      Vote your Conscience!
      Ron Paul 2012

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  18. dallas fort worth for ron paul

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  19. Thailand for Ron Paul 2012

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  20. Everywhere but America for Ron Paul what's wrong with this picture?

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