Ron Paul: We Must Stop the Fed from Causing More Harm




Later this month Congress will have an unprecedented opportunity to force the Federal Reserve to provide meaningful transparency to lawmakers and taxpayers. HR 459, my bill known as “Audit the Fed,” is scheduled for a vote before the full Congress in July. More than 270 of my colleagues cosponsored the bill, and it has the support of congressional leadership. But its passage in the House of Representatives is only the beginning of the battle, as many Senators and the President still don’t see the critical need to have a national discussion about monetary policy.

The American public now senses that the Fed’s actions, especially since 2008, are enormously inflationary and will cause great harm to the American economy in the long run. They are beginning to understand what so many economists still don’t understand, which is that inflation is a monetary phenomenon, and rising prices are merely a symptom of that phenomenon. Prices eventually rise when the supply of US dollars (paper or electronic) grows faster than the available goods and services being chased by those dollars.

This fundamental truth has been thoroughly explained by Milton Friedman and many others, so today’s Keynesian economists have no excuse for their claims that “inflation is under control.” Ordinary Americans don’t need a PhD simply to look at the Fed’s balance sheet and understand the staggering amount of money creation that has occurred in recent years. They know it will have harmful consequences for all of us eventually.

I’ve spoken at length about inflation, and how Fed money creation is effectively a tax. Every dollar created out of thin air dilutes the value of the dollars in your pocket and your savings in the bank. But the truth is that we are only beginning to see the results of the Fed’s dramatic increase in the money supply. As former Fed Chair Alan Greenspan himself explained last week to Larry Kudlow, most of the dollar deposits created by the Fed via successive rounds of “quantitative easing” remain on the balance sheet of Fed member banks. Because of very rational economic fears, banks are not lending, businesses are not expanding, and individuals are shedding debt. So, the trillions of dollars created by the Fed since 2008 remained largely undeployed. When those dollars eventually make their way into the world economy, prices across all sectors of the economy are likely to rise dramatically.

The true evil of inflation is that newly created money benefits politically favored financial interests, especially banks, on the front end. Over time, however, the net result of monetary inflation is always the devaluation of savings and purchasing power. This devaluation discourages saving, which is the key to capital accumulation and investment in a healthy economy. Inflation also tends to hurt seniors and those living on fixed incomes the most.

For decades the Fed has operated without any meaningful oversight whatsoever, resulting in the loss of savings, loss of purchasing power, and loss of quality of life for all Americans. It causes individuals and businesses to make bad decisions, misallocating their capital because market signals have been distorted. It causes financial ruin by engineering the inevitable boom and bust cycles that so many erroneously blame on capitalism. And it does all this in secrecy, to the benefit of the financial and political classes. It is time to Audit the Fed, as a first step toward ending its unchecked power over our money and economic fortunes.



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205 Comments:

  1. Keep up the good fight, Dr. Paul.

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  2. Ron Paul is a man of honor, a man of true racist dignity.

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  3. Ron Paul is legit :)

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  4. French Canadian

    Poor KID! Why do you keep exposing your stupidity? Are you masochist or what?

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  5. Hahahahaha...ponzi scheme of debt based currency? Nice word salad. Who is playing the role of ponzi in this ponzi scheme you moron? If the fed can print money, how can the ponzi scheme collapse? They simply buy bonds. Guess what happens then you dumb schmuck? The dollar falls, exports boom and our trading partners start buying dollars to devalue their currency. Collapse is impossible for a country that exports 12% of GDP. You fucking imbecile.

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  6. It hasn't changed their police-state tactics. Rand Paul joined up with Romney without even a challenge to his view on NDAA, Homeland Security, nothing.

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  7. Please come over hear and slap my fellow constituents upside the head, cause I don't think they are getting the memo or are too lazy sitting on their asses to give a shit. America (I am American mind you) is too fucking brainwashed by the MSM and those stupid fucking politicians they voted into office.

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  8. French Canadian

    O Canuckistan!
    Our home and native land!
    Land of hush-up, restriction, and suppression.

    O Canuckistan!
    Jewish thought control is my command.
    We cannot say certain things.
    For fear of prison.

    No doubt of the holy hoax.
    False witness we must bear.
    For fear of prison.

    O Canuckistan!
    My native land.
    Where jews control my thinking.

    O Canuckistan!
    Where men are willing bitches.
    To jewish wishes.

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  9. If Mr. Dumb were any smarter, he might figure out that we are indeed headed for a collapse. The Fed's Ponzi scheme of debt-based currency! I estimate someplace between $16-30 Trillion in debt, that bubble is gonna pop. Increasingly the top-heavy indebtedness will become more sensitive to other factors -- like an upside-down pyramid. Soon, the slightest financial "breeze" will topple the beast. I really don't like "I told you so" when so many people, across the globe, will be hurt by this.

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  10. What Mr. Dumb doesn't know won't hurt him, right?

    "GAO is prohibited by law from investigating the Fed's discount window and open market operations, agreements with foreign governments and central banks, and federal open market committee directives. This information should be made public, but currently resides behind a shield of secrecy." -- Ron Paul, July 2, 2012, "Texas Straight Talk"

    "Extensively?" I guess not!

    Does Mr. Dumb dislike freedom so much that he has to trash its name? Dumb!

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  11. Looks like Mr. Dumb figures that whatever laws the government passes are okay by him. So, if they outlaw free speech, he can't use any more foul language... or any language at all, for that matter. Would that really be a good thing?

    I think Mr. Dumb making a fool of himself should be protected, not outlawed.

    Dear Mr. Dumb: you can't compare self-abuse to assault on another. But hey, your name says it all. Please do the smart thing and help us legalize the Constitution.

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  12. Ignore the sad fool. I know I will. :-)

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  13. What are you, three years old? grow up and carry yourself like a gentleman and quit this juvenile behavior! you are a jejune fool relying on rude, non sequiter ranting to convey your positions making an ass out of himself in the eyes of everyone older than 25!

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  14. Ron Paul to WIN --- or America to END 2012!
    (there are no other options)

    The BO is a bullet train that will destroy US quickly, while Rmoney is a freight train that will destroy US slowly but surely.

    So which End would you prefer for the Real American People?

    (note the sublime touch of only one person watching these two puppets "debate"…deliciously ironic!)

    http://www.youtube.com/watch?v=4vWVdOTFs8M&feature=player_embedded

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    • The only way to get rid of the BO is for Mitt Rmoney to become a Patriot!

      Here is what needs to happen, and soon:

      “Mitt Romney Resigns!”

      “Mitt Romney announced today (place date) he will no longer seek the Republican nomination. Instead, he pledged his full support to Dr. Ron Paul, who he trusts implicitly to be the only viable candidate to defeat Barrack Obama,” said a Romney spokesperson.

      Mr. Romney’s spokesperson continued saying, ” Mr. Romney is making the ultimate sacrifice, for the good of the Nation, so wants to be remembered as the one that helped America be rid of Obama…as such Mr. Romney is a true patriot…”.

      Questioned as to the real reasons Mitt Romney quit — the spokesperson said, “He only wants to be remembered as the Patriot that Saved America… that is his only reason”….and “…none of the below were a factor in his decision”…as claimed:

      “That so many videos have been taped showing fraud on his behalf that TV mini-series could be made running for weeks,
      Or, that he can’t get 100 people to attend his meetings, while Ron Paul gathers Real Americans in the several thousands,
      Or, that he has broken rule #11 in collusion with the GOP, so he is about to be removed from many states ballots,
      Or, that his shadowy party in Nevada, is further grounds for his removal as a GOP candidate,
      Or, that he cannot garner enough delegates with all the cheating done on his behalf so far,
      Or, that All National Delegates are NOT bound according to rule #38, and US election law, in Tampa,
      Or, that his eventual loss to Ron Paul in Tampa will make him a national joke,
      Or, that even if manages to CHEAT his way out of Tampa, his guaranteed loss to Obama will make him an even Bigger Joke…”.

      No, none of these are factors, according to Mitt Romney’s spokesperson — “Mr. Romney quit the race today because he is a Patriot!”

      And I agree, Mitt did the right thing — and we shall build monuments and name schools after him!
      ———————————————————————————

      Pass it on! Hopefully someone with brains in Mitt’s camp will see this syllogism and force it upon this dullard (for his own good)!

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  15. The drug war is a failure. People still do meth, heroine, acid, etc when drugs are illegal while making drug dealers more powerful. If it's working, why do we have troops guarding drug fields in Afghanistan? We could easily wipe out 90% of the worlds drug supply by napalming those fields. But No. Our government rather sell it. Oh ha ha. I just read your username. You are that stupid ass troll that has no life that goes to every Paul video

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  16. Ron Paul is a Gentleman, in a political Arena filled with vicious subhuman Carnivores (bent on devouring America for themselves)!

    Dr. Paul has always taken the highroad — always speaking the Truth, never attacking any individuals!

    While the RABID Animals-in-Power have always sunk to THEIR lowest, darkest, insidious, perfidious, despicable, degenerate, appalling, repelling, corrupt, nauseating, immoral, unconstitutionally evil, sinister, asinine, decaying, poisonous, disingenuous, venomous, malignant, treacherous, hypocritical, SELF-LOATHING LEVEL — to personally attack the Greatest American Patriot in the 21st Century — Dr. and Future President to cure America, Ron Paul!

    Just because Dr. Paul is The Nicest Person on the Planet — and shrugs off these idiots — does not mean that His Supporters have to put up with such INFAMY!

    We need to Fight Fire with Fire — a tooth for 3200 teeth, an eye for 10,000 eyes!

    The Silent Majority is awakening, and just as the Japanese learned from Pearl Harbor, let these ATTACKERS AND USURPERS OF OUR NATION LEARN that the Sleeping Giant has Awaken, and we, Real Americans, will END them eventually!

    Our fight has just began!!!

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    • The BO is despicable, but Rmoney may be worse…ever think of that?

      Here is food for thought:

      *Mitt Romney, American Parasite*

      http://www.informationclearinghouse.info/article31153.htm

      It explains how Bain Capital worked. They would buy SUCCESSFUL companies, with little down, borrowed huge amounts, saddling them with crushing debt, refused to continue equipment purchases or maintenance. Then they would pay themselves huge “management” fees.
      —————————————————–

      Some notable excerpts:

      “Romney is not a vulture capitalist, as Rick Perry says, since vultures eat dead carcasses,” notes Josh Kosman, who has written about the private equity business for 15 years. He’s “more of a parasitic capitalist, since he destroys profitable businesses.” (The host must be healthy enough to be force-fed all that debt, then slowly bled to death…until the parasites drain all the wealth for themselves).

      “When Bain was about to buy a company, its partners would hold a meeting. “He said that about half the time [they] would talk about cutting workers,” Kosman says. “They would never talk about adding workers. He said that job growth was never part of the plan.” That claim was buttressed by the Associated Press, which studied 45 companies bought by Bain during Romney’s first decade. It found that 4,000 workers lost their jobs. The real figure is likely thousands higher, since the analysis didn’t account for bankruptcies and factory and store closings.

      “The Armco plant closing involved more than the torching of 750 jobs, Morrow says. Contractors and suppliers collapsed. Workers’ children and widows lost health care and pension benefits. And while Bain received millions in tax breaks—paid for by the very people left holding the bag—Romney walked away millions richer.”
      —————————————————-

      A must read (long) article recommended to all!

      Share it!

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  17. French Canadian

    Here goes the stupid KID again usurping my pseudo. Boy this country is in deep trouble with idiots like him.

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  18. French Canadian

    Stop the fed from causing more harm? LOL!

    A bit late there Ronnie. By about 100 years.

    The **ws have usurped the authority to print money out of thin air and loan it out for interest. Haven't you noticed?

    This has enabled them to literally buy up what every they want. And they have.

    Ron Paul, shut your lying pie hole. You are a shill.

    I think everyone should vote for obama.

    obama is doing a great job of pounding the last few nails in the coffin of the already dead USA.

    The corpse is starting to rot. Time to put it in the ground.

    The brown masses want obama to give them money from White people.

    Great.

    That is what happens when you allow them to vote - in a society that is populated by White people.

    White people generally work. Brown people generally don't.

    White people generally create wonderful cities. Brown people generally destroy them.

    Under obama we have seen the raising of yet another Desecration Monument to the destruction of Western civilization in form of a statue to the communist Michel King.

    America is drowning is a sea of brown invaders. Uncle Sam’s bloated body is floating aimlessly amid millions of brown logs in what has become a giant backed up sewage system of 3rd worlders.

    All this while the ***s loot and pillage what is left and ship it off to other lands. So it should not surprise you that even the entire F-16 production line has been literally shipped to Israel. LOL!

    Romney will continue the policies of obama - which have been a continuation of the policies of bush…because they are all policies of the people who really control you.

    Romney will merely put a white face on the policies of his ***ish masters while he gets us into a war with his Israeli masters enemy - Iran.

    I think we should be campaigning for obama.

    That will only help get the corpse buried sooner.

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  19. FreedomsReigning

    "They are beginning to understand what so many economists still don’t understand, which is that inflation is a monetary phenomenon"

    Of course they "understand". Believing a fiat looter just doesn't understand the power of currency debasement is juvenile. They're PART OF THE SCAM and their required to see, hear, and speak no evil. Don't pretend they don't understand.

    They're parasites of biblical proportion who produce nothing of value and use their fiat money scams to loot and enslave those who do.

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  20. please see www.webofdebt.com

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