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.


  • French Canadian

    Bankers Declare U.S. & Europe Conquered (+ 2 videos and many links)

  • robin

    OFF TOPIC: Keep your eyes on the propaganda about Syria and Iran. More false flag operations by our CIA/MOSSAD. I am pounding away on the moral conscience of those in my GOP. I’m reminding them why Romney is exactly the same as Obama and it was no accident that he was chosen as their “anointed” one. Will continue to remind them that as long as they maintain the mindset of party division and voting for the “lesser of the two evils” , we can never come together as Americans and take this country back. The fires are fueled intentionally, but they don’t want to wake up and see how they are being manipulated. Some see it, but they don’t want to do what is necessary to change it. These folks will be more inclined to listen to Alex Jones if he gets a thumbs up from The Drudge Report which they listen to. Otherwise, they will not go there and simply see it as another conspiracy site. People like Noam Chomsky who we used to listen to because of our interest in linguistics many years ago is obviously a disinfo agent leading the left. Part of the NWO. He practices cognitive dissonance…

    • John

      google KARAITES and KHAZARS

  • May God give you the strength You will need on your Mission

  • Ron Grabs the Bull by its Horns!!

  • Adjusting via deflation transfers wealth upwards. Adjusting via inflation transfers wealth downwards. That’s why rich people love the gold standard and why liberals love Keynes.

  • In order for prices to fall, unemployment has to rise substantially and purchasing power has to fall. So they do have to worry. You’re not too good at thinking apparently. Economies recover from recession either through inflation or via deflation. When the central bank can not print money, the only option is deflation and that’s accomplished by high unemployment, lower wages and deflation follows. You don’t know anything about economics apparently.

  • Actually they do have to worry when the economy adjusts via deflation. All the countries on the Euro have to adjust via deflation because they don’t have control of their currency. Iceland adjusted via inflation. Compare Iceland to Greece.Adjusting via deflation is far more painful and takes much longer.

  • Canada supports Ron Paul 2012!

  • Ron Paul has not been wrong yet concerning the feds. Everything he said in the past that would happen with the economy and housing collapse is happening Now. Ron Paul is the only one I trust and hes the only one Im voting for…… Go Ron Paul…… Peace……

  • If what you say about prices rise and fall regard to purchasing power, the people in countries where austerity measures have been forced on them need not worry because prices will drop to suit there purchasing power???????,lol

  • i think unfortunately, a lot of people are gonna be disappointed…which is sad. but i think we must look for additional ways to change things, like what i have suggested. thanks. 🙂

  • douglas

    I feel that we need more than knowing what we already know. Playing out the plans of these satanic central bankers is too depressing and redundant. We need to shine a light unto a force that offers a counteraction or an alternative. I have been very surprised and excited about Ron Paul’s emergence.
    These times are for the end to all who follow the private central bankers. Not some conspiracy theory or revolution, but what really makes and shakes things down to earth for people who are in the rut of it. The People are the ones who make things happen. Knowledge is Eternal! No one can buy Knowledge.
    Making things happen is not a demonstration or a suicide plot. Those are things that the Elite strategically use in their favor because they control the media. What We the People Want is bring about peace and prosperity through each individuals EFFORT! All we are asking for is proper representation.
    True Americans do not need socialism or communism to tell US how to do this!
    The Corrupted unconstitutional monetary policy control by diabolical individuals is the root of all Humanities current dilemmas. Socialism and Communism are only deceptive ways the ‘Private Central International Bankers’ use to fool the peoples into compliance with a dictatorship. The only way a Democracy can become a Dictatorship is through Unconstitutional Privately Controlled Monetary Policy.
    The only way a true sustainable Democracy can exist is through Constitutional Monetary Policy.
    Otherwise, it is all just another tyrannical dictatorship.
    Come on your pussies, I know you want me. Take me so my poor family can at least have my life insurance. I am not a Terrorist and NEVER will be a Terrorist! KMA

  • French Canadian


    I was thinking about you tonight when I listened to the Alex jones Show. It was like he was directly talking to you Surfisher. Soros had complained today about Matt Druge linking to Infowars articles, calling it a conspiracy site… lol. Boy, did Alex do a good job responding to this attack.

    You know, Ron Paul is leaving politics if he doesn’t get the nomination because he won’t be a congressman anymore. But the Revolution must go on… where do you think it will continue? It will be well and alive on Infowars on the Alex Jones Show. And where will you be then? Will you join? Or will the propaganda and disinformation about him keep you away?

    You are a passionate patriot, I would like you so much to know everything I have learn in the past 5 years listening to Alex. Right now you are missing on 90% of the most crucial information by not listening to him. And that information is so vital if you want to save America.

    Please, please let go of the desinfo on Alex. Go check out for yourself. The best documented site on Internet. Tonight was fantastic, like usual. He had 3 great guests and the callers were awsome.

    Think about it, because if Ron Paul loses, at least you will have the Alex Jones Show (where the revolution really started) to be able to continue it with great supporters.

    I wish ALL Americans would watch his show and wake up to reality… this country wouldn’t be going to hell in a hand basket.

    Think about it! I care for your country and for the whole world… this is why I am so concerned about people being informed. If America falls, all hell will break lose on this earth.

  • What’s stopping him from running again?

  • Hi

  • im going to be frustrated if Ron paul loses, because we will never get this chance again PLEASE RON PAUL UR OUR ONLY HOPE!!! WE MUST HELP HIM!!

  • He says he’s worried about people on fixed incomes, but he wants to cut food stamps by 60%. Typical Fascist in Libertarian clothing, wants to commit genocide on the poor. BTW you’ve never once heard him criticize Wall St or Banks…hmm. Not to mention that he betrayed his followers and sold them out to the RNC after taking all their campaign cash. Well I mentioned it, didn’t I.

  • You authoritarian cunt. Don’t presume to tell me what to do. Your jumping to conclusions just shows what an idiot you really are.The Fed has a monopoly on the money supply you tool. No one wants “competing central bank.” Theres no need for any central bank. Its only a menace to peoples liberties. How much money are you paid to spread lies on the internet?

  • LOL! wow are you fucking kidding me? The Federal Reserve isn’t private? Why don’t you read “Federal Reserve Purpose and Function”, written by the Federal Reserve. It admits the Federal Reserve is a private cartel of 12 banks and doesn’t answer to any federal government entity. Alan Greenspan admitted the FED is private and above the law. The private FED security in San Antonio admitted it was private. My god, how fucking clueless can you be! And even if it wasn’t private itd still be a monopoly

  • Calling the Fed a monopoly is as idiotic as calling the Pentagon a monopoly. The nation has one central bank. No nation has competing central banks. The idea is absurd and you are a fool.

    Seriously kid. Shut up. You don’t know anything. You were told some silly shit by Ron Paul and you like a fool believed every word. Learn how to think for yourself.

    You idiot.

    • chris

      Hey man u getting ur info from government site is not helping u at all. If u really want the truth search other info site except gov sites. Theyll keep u blind just as u are now. N thats exactly wat they want. Some sites for u::,, Those are good to start. Read the info with an open mind n dont b so quick to dismiss the info cuz u will b stuck on a lie for longer than u should.