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.


  • this guys wants your social security, your medicare/caid, your house, your girlfriend, your job, your balls, your 360 with CoD, the dope you and your homeboys smoke, your car, your pr0n, your clothes, your stuff in the shed, your tv, your vcr, your dvd player, your facebook page,your social security, your medicare/caid, your house, your girlfriend, your job, your balls, your 360 with CoD

  • It is a PROVEN FACT that Ron Paul is a cult terrorist leader and criminal brainwashing all his goons to destroy America!

    • hookagold

      The Patriots blood, is the seed of freedoms tree.

  • Ron is a sharp guy too bad the whole system is toxic why should culture imprison us and somehow place a barrier between ourselves and our true humanness? Culture is for the convenience of culture, not you ask the 18-year-old kid who is given a rifle and sent to murder strangers if culture is his friend. Once you start talking about race pride, loyalty, our destiny, our God It’s a diminution of humanness by choosing to limit yourself to a cultural reality (sold to you) and not your moment now

  • Ron Paul President 2012! apparently the ONLY TRUE American running for President!

  • Good Luck Dr Paul from England

  • Every economic problem can be linked to the Fed, end it before it gets much worse.

  • Surfisher
  • hookagold

    Obama,has been sinking America in debt, at a rate of 1 Trillion dollars a year for the last four years. The USA is broke,in more ways than one. Yet, Obama is now sending more of our tax dollars to, the Muslim brotherhood. If Obama gets another four years, we will be done for. I do not believe there are people, so blind as to vote for him “again”? That said, I still can’t vote for Romney.

    FREEDOM-is only for those whith the “Guts” to defend it!!!

    • douglas

      If Obama gets another four years the US will be assimilated into a World Government that is more about economic consolidation of power that anything else. Someone please tell me Romney has a chance and what he represents will be favored by the Elites power over the US political system?
      Someone please tell me that Ron Paul is what the US originally stands for. However, going back to the gold standard is not going to fix the problem. All money whether it is gold, silver, or paper is only an IOU for your EFFORT and LABOR! Let’s just cut to the chase and start monetizing our effort and labor as the true and only one factor that makes any medium of exchange WORK!
      Otherwise, the scourge of slavery will continue to take on a new face.
      Can you all not see how the markets are being manipulated? The same folks who control monetary policy, global trade and global industry are using the stock market as a way to siphon off REAL MONEY! What is REAL MONEY! REAL MONEY is backed by Human EFFORT and LABOR. So, as the market rose last week the vultures circle and then used their power over the media to justify their sell off. What was it this week folks? Oh yea, the Euro debt crisis. That was their justification for siphoning all the LABORER contributions of LABORERS to the Markets. Media tactics are like the backbone of the Elite (CFR, Builderburgers, and Illuminati). They are nothing but leeches, mosquitoes, or better yet like cuddle fish in their endeavors.
      You (CFR, Builderburgers, and Illuminati) can fool the people some of the time but not all of the time. Time is Gods domain and you Elite are doomed and know it so you you have no choice but to conspire.

      • Citizen


        The Borg told Cap. Picard
        “Resistance is futile, you will be assimilated”

        And I fear that the Progressive Marxists ARE the Borg.

        Removing the Central Bank from control over our currency is the ONLY way to break their strangle hold on us.

        Gold and Silver bullion currency is the ONLY way to bring about a passive and bloodless revolution.

        Once you or I accept their fiat paper as money, they CONTROL!
        To regain our Freedom from their Tryanny, we must not use their money…
        Render Unto Ceasar that which is Ceasar’s
        Unto God that which is God’s

  • I am trying to let people that live near me, friends, and family, know about Ron Paul. The main stream media is blocking him out and we must talk to people around us, put up signs and let people know he will stay in the race. Talk people talk!

  • French Canadian

    You do not want to miss this incredible interview. If you ignore this interview, it will be at your own peril.

    The UN History of Gun Disarmament with Bob Dacy

    “Alex talks with Austin businessman, North American Union researcher, and host of the one hour cable access program Simple Truth, Bob Dacy.”

  • French Canadian

    As difficult as it is to come to terms with – you have been relentlessly propagandized by your real enemies for pretty much your whole life.

    Long story short – you have been lied to……relentlessly. You have been subjected to determined, implacable, ruthless lies.

    Everything you have been “taught” about Hitler – is essentially the “jewish” version.

    The jewish campaign of lies stops at nothing. It is single-minded and unappeasable. The lies you have been told are unrelenting, unyielding and grimly vindictive.

    You have been exposed to thousands of hours of lies broadcast to you on your Tel-Aviv-Vision.

    Lies screened to you in the form of jewish written, produced and directed movies.

    Lies printed in books published by jewish publishing houses.

    Lies from “confession” transcripts chronicling the utterance of a person after prolonged torture.

    Lies spoken to you by your bought-and-paid-for politicians who are servile apple-polishers for “Israeli” interests.

    Do you know what critical thinking is? Ever heard of that? How about “independent investigation”?

    Give it a try.

    Unfortunately, the jews know that the vast majority of you won’t bother. That’s because you’re too lazy, too “stoopid” and too utterly obese to make the effort.

    For those of you that do put forth the effort – prepare to be ostracized by lazy, “stoopid” and obese patriotard citizens.

    If you want your country back – you’re going to have to get rid of the “international jew”.

    Simple as that.

    Robin, you can go cower in the corner now.

  • French Canadian


    Wake up and smell the coffee you dumb-azz.

  • French Canadian

    Some of you people who still cling to the “big Lie” of the political system need to grow up.

    Grow up and face reality.

    Your support for Ron Paul is wasted energy. Ron Paul is controlled opposition. Ron Paul is a fake placed there so those of you with half-a-brain can have someone to rally around.

    Your shadow government is laughing at you.

    Your “belief system” is laughable.

    Listen up idiots – “International Jewry” is running your joke of a country.

    And they are going to continue doing what ever they want largely because you are idiots and cowards.

    That’s right. Idiots and cowards.

    Hell, all the jews have to do is call you an “anti-semite” and you sh*t your pants.

    You are a nation of obese, disgusting, deluded losers.


    So You’re Proud to be an Ameri-Kwan?

    When tomorrow all the things are gone
    I’d worked for all my life
    And I have to start again
    with just my children and my wife

    jew bank will take my unlucky stars
    and I’d be reliving it today
    ‘Cause the flag don’t stand for freedom
    the jews are taking that away

    And you’re proud to be an Ameri-Kwan
    where at best your heart pumps pee
    And I won’t forget the misled men who died
    So the jews could take everything away from me

    And sadly you bow down
    before the jews and defend them still today
    Well, we’re comin’ to take back this land we love
    God damn the jewSA

  • lol, “we”

  • Good luck at Tampa Dr Paul , from Scotland

  • robin

    Well, our precinct chair just sent a letter of resignation and his letter to our state chair who ended our district convention before the alternates were picked and held a secret executive meeting to pick them so the ones chosen could be replaced. Apparently, I did get to his moral conscience as I have been working very hard this past month. He is running for state representative and the GOP establishment has also given him no support, so that also helped with his decision. I have been sharing information about what has gone on this entire primary election, why they chose Romney, etc, about the Middle East=the truth. He is joining the Constitution Party and will change his running status. It came as a complete surprise. I hope the other people I have shared with are also thinking about what I have shared who believe in liberty and that these candidates that the GOP chooses are chosen because they are globalists and part of the NWO. So, another lesson when you think someone won’t budge on an issue or isn’t listening, think again. At our last meeting, he was supporting the GOP, and now he is leaving it. The unfortunate part which I will share with him is we need people in the party who will make the GOP the Constitution Party once again and help restore what it used to stand for. I’m hoping that we can get a Ron Paul supporter in one of the top positions=Prez or VP, to help change things at the state level and vote Allen Alley out when he comes up for reelection. This should make for an interesting discussion at our next meeting to work on some of the brainwashed people who support the GOP no matter what they do. Need to change things from the ground up…

  • will vote only for Ron Paul President 2012! apparently the ONLY TRUE American for America! does anyone know when obama’s court date is for all his illegal activities? does anyone know when romney’s court date is for all his illegal activities? hope they are both real soon!

  • ron paul is a great guy

  • Great points, great person, but I wonder many in USA actually know this person? It’b be great if there were more sincere politicians like this ol’ dude.

  • French Canadian


    No I do not have that problem, all your links opened immediately. Maybe it is only in the US.

    Sorry I didn’t answer you right away. I just finished listening to the Alex Jones show and just came back to this site.

    By the way, tomorrow, I will post an incredible interview that I saw tonight with Bob Dacy, it will be on Infowars tomorrow. Do you know this guy? I didn’t. He’s fantastic.

    If you don’t know him, here is a resume: “Alex also talks with Austin businessman, North American Union researcher, and host of the one hour cable access program Simple Truth, Bob Dacy, who will be in-studio.”