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. YO! SEE THIS DREAM MAN, GUY IS
    THE TRUTH! DREAM2016 DOTCOM.
    THE WAY TO GO SERIOUSLY, NOW.
    DON'T LET BAD DUDES TAKE IT.

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  2. I cant wait for ron paul to become president
    I can't wait to work as a serf for my feudal lord.
    Let us show how much we love Ron Paul by pooping on the socialist government roads.
    Hooray Ron Paul

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  3. The FED has no choice but to "harm" America...

    It has but only one solution...continue to DEBASE the currency to cover its debts.

    The Day Will Come when American will wake up and realize that the Fed Reserver Notes they are holding are worth NOTHING!

    The collapse will burst two bubbles....

    The FED will not be able to cover its long bets and the T-Bills will skyrocket interest
    Then the "Full Faith and Credit of the US Government" will vanish

    HOLD no Fed Notes or Bank Accounts demoninated in US Fed Note...
    YOU will lose it all!

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  4. QUESTION!! PLEASE HELP!!

    Can an economist explain why when the Fed prints money from nothing(guise of credit) that for the proportion that they increase the money pool, why I don't receive a similar proportional increase in my monetary worth, you know, in the same way that when a publicly list company does a stock split, say 2 for 1 which halves the value of the stock, I am compensated for the dilution of value inherent in the increase of supply?? PLEASE!!

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  5. French Canadian,
    As I mentioned, our precinct chair resigned after being in the GOP his entire life. He has been disgusted with the GOP and they way they operate. We are trying to talk him out of it because we have to work on changing this party and we need more voices to bring the GOP back to the Constitution. His ability will be marginalized if he goes to a third party. It will not happen overnight, but we will not give up. This is where it has to start. We are hoping to get other liberty minded people in the right positions as they have in other states. When things unravel at the federal level, it will be important to have the right people who support the Constitution in your state and at the local level. You also need to know where your sheriff stands and local law enforcement.

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  6. Hi French Canadian,
    We know this Colorado tragedy was staged as so many others have been. The Gifford shooting for one. The intelligence community and military have been experimenting on mind control for years and have had so many psychologists working on how to change our behavior. We have long believed that these assassins were all carried out through mind control techniques. I put out the facts for those I know who will simply believe Holmes is just another person who cracked up. I heard the witness this morning and all the turn of events just smell like false flag. Fortunately, the truth is coming out quickly, so let's see what the MSM does with it. Of course, then there's the UN proposal to ban guns. Someone I know(female) carries a weapon on her at all times for 30 years and said she would use it to protect herself or others. I tried to make her aware of what is really going on here. We'll see how the MSM spins this story and what truth they reveal. I am spreading the word to people in my local GOP so they can wake up. Of course, many of these massacres that have happened were adults or kids on psychiatric drugs like Ritalin and anti=depressants. The fact Holmes was doing his PHD in neuroscience is another red flag...Then he voluntarily surrendered and didn't kill himself, he told the police his apartment was booby-trapped. Nothing adds up except that it was staged to create more fear, a distraction while others things go on, etc. They can't blame it on Arab terrorists this time. This is to get people so scared that they will do anything they are told to do...We will be bringing up so many things in our next GOP meeting. Some people are finally waking up...One person at a time...Again, thanks for sharing information with me. I sent my Syrian relative that info. you posted. He knows based on what his family is saying it is a foregone conclusion that they will be invading Syria and taking out Assad.

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  7. French Canadian

    Robin,

    "Thanks for the video on gun control"

    If you are interested in this subject, here are many articles and videos today on Infowars.com:

    1- New Suspect in Batman Colorado Massacre (Video)

    "Our so-called government has admitted to carrying out the murder of thousands of people in covert false flag operations. They are the number one suspect."

    2- Proof Government Stages Mass Shootings: Batman Massacre Decoded

    "This important video report is just a small sampling of on-the-record cases where government staged shootings and other bloody acts to pose as heroes, take freedoms, and launch wars."

    3- Witness: Someone let gunman inside Colorado movie theater (CNN article and video)

    “AURORA, CO — A man who was at the Colorado movie theater where a dozen people were killed this morning, says he saw the gunman.

    As I was sitting down to get my seat, I noticed that a person came up to the front row, the front right, sat down, and as credits were going, it looked like he got a phone call. He went out toward the emergency exit doorway, which I thought was unusual to take a phone call. And it seemed like he probably pried it open, or probably did not let it latch all the way. As soon as the movie started, somebody came in, all black, gas mask, armor, and threw a gas can into the audience, and it went off, and then there were gunshots that took place.”

    4- Joker’ Spitting On Prison Guards; Thinks He’s In A Movie (Article)

    "NEW YORK DAILY NEWS | ‘He was spitting at the door and spitting at the guards,’ a just-released inmate told the Daily News. ‘He’s spitting at everything. Dude was acting crazy.’"

    5- Dark Knight Massacre Special Report (4 videos)

    "We reported yesterday that numerous accounts from eye-witnesses have surfaced reporting an accomplice to the shooter:"

    6- CFR: Don’t Worry About Hillary’s Small Arms Treaty (article and 2 videos)

    "Earlier this month, Larry Bell of Forbes spelled out the dangers of the ATT, specifically: the globalist treaty will force strict licensing requirements for firearms ownership; create an international gun registry; and mandate that all “unauthorized” firearms (including semi-automatic “assault” rifles) be confiscated and destroyed."

    And many more articles and videos from previous days (Saturday and Friday).

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  8. Ha fellow Ron Paul supporters sense Ron Paul isn't running in 2012 who are you going to vote for? Im voting for ★Rocky Anderson★ he represents my ideals.

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  9. Ha fellow Ron Paul supporters sense Ron Paul isn't running in 2012 who are you going to vote for? Im voting for ★Rocky Anderson★ he represents my ideals.

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  10. Ron Paul 2012!!!!
    Keep going Ron we will keep fighting even if these idiots that know nothing about you and your credentials keep talking shit!!

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  11. Paul does not support a one world currency you idiot! He believes in competing currencies!

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  12. French Canadian

    Mike Gallagher: GOP is doomed if Ron Paul isn't allowed to speak at convention (Video)
    http://www.dailypaul.com/245647/mike-gallagher-gop-is-doomed-if-ron-paul-isnt-allowed-to-speak-at-convention

    "Mike's facts are a little off like many others in the media - Ron actually HAS attained a plurality in more than 5 states and therefore will be speaking - but this is still a good listen. He 'gets it' that the Republican Party is dead if they shut out the growing Ron Paul liberty faction".

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  13. Ron Paul is puppet and a hypocrite ,Ron supports a 1 World Currency=1 W O= he who controls the money controls the world

    Ron wants to eliminate our civil rights which protect us from a slavery 1W O

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  14. It is so easy for US to see how the ludicrous money changer private unconstitutional monetary policy makers of the world have so many problems and why human population control is one of their most important issues to deal with.
    The US struggled for Her several hallmarks that have now been perverted and corrupted by Unconstitutional Private Monetary Policy. Now, before my very eyes in the complete depth of this, I see a new Hallmark within the United State of America established, that should be recognized. That is the Wildlife Management efforts that have successfully shown the ‘benefits’ of controlled harvesting of wildlife species.
    Wildlife Management practices in each and every State of the United States demonstrates a very profound achievement of successful ‘Wildlife Management’ that is constantly evolving. The goal being to make sure a species within wildlife habitat will never be over harvested and will be kept and preserved (PS:12) within its habitat. Much like Moses taught to do!
    We the States of the United State of America have already mastered the natural way to manage Wildlife Species and the track record is solid. What is most interesting to me is the diversity of it all. The habitat and species population of so many different States shows diversity of there species and habitat which requires specific management unique to each 'States Laws'. Thus, the laws of each State vary. Federal wildlife laws cover migratory species and the prevention of the transfer diseases.
    UN Agenda 21 needs to get down on its knees before the ‘US Wildlife Management Hallmark’ program and see that the unsustainable natural resource consumption of Humanity is rooted in ‘Unconstitutional Monetary Policy’. The Founders of the US Constitution promoted the proper way to expand the economies of a Human population. What the UN Agenda 21 is sponsored with is how to keep and preserve the Global Issuance of Ludicrous Monetary Policy without destroying the ‘Planet Earth’. A population of Humans that have had their economies expanded disproportionately within their natural habitats by greedy bankers. Forced grow economics is the root causes of all current imbalances. Forced grown economics provided Unconstitutional Monetary with great power and profits, ‘ UN Agenda 21’ is trying to curb Humanity so the system of Unconstitutional Monetary can maintain power and control which is a big mistake and will fail.

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    • A country does not become a super power, "by not exploiting its natural resources" And America has more regulations, bonding, and reclamation laws,than other countries do.

      The UN-American efforts, using environmental groups, and the EPA, who use the endangerd species act,to tear out our dams, and shut down logging, farming, ranching, and mining. These efforts are destroying rural America!

      "If we can't grow it we have to mine it"

      Everything we use, dose not come out of thin air.

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

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  15. What escapes most citizens in America is that

    The Legal Tender laws are the very method whereby our Government enslaves us.

    The Legal Tender laws in America dictate that WE must use Federal Reserve Notes to conduct our daily affairs. WE are not permitted to use Swiss Francs or Australian Dollars or even Canadian Dollars to do business.

    Gov Forbids that we use anything but their fiat paper that declines in value annually now diluted by $6.3 TRILLION annually, thats $1.3 trillion they report and another estimated $5 Trillion that the FED hides in LIBOR interbank transactions.

    So the Gov dilutes our savings and devalues our property by counterfieting currency that has no material substance,"money out of thin air".
    aka: Criminal Counterfieting!

    The Gov's position is simply this...
    How dare you save and conserve your earnings for your future benefit,
    that's Gov's job, to secure your future, not yours.

    How dare you business men hold back (hoard) your earnings to cash flow your businesses.... that's just not fair!

    So the clear message is,
    don't bother saving up those Federal Reverse Notes in your bank account or cash....

    Our Government is busy debasing our wealth to pay benefits that it has promissed but has no ability deliver, except by paying for them with more counterfiet paper.

    I'm surprised that the FED has still allowed the phrase:
    "In God We Trust"
    to remain on THEIR money?

    Clearly Obama is champaigning hard right now to change that to:
    In Gov We Trust"

    It's highly probable that no one would even notice the change, maybe after 6 month or more.

    Guess what, God's money is gold and silver
    Hmmm, just like OUR Constitution defines it to be!

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  16. I fully agree with this. There is already a movement to address this problem. It's led by Simpson and Bowles, and will reduce the deficit by $4 trillion.. It's called FixTheDebt.

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  17. I'm ready to take my country back!! BY FORCE!!!!

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  18. French Canadian,
    Thanks for the video on gun control. I have shared this with someone I know who has been following this for sometime.

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  19. Ron Paul — President of the GENUINE US Republic 2012!

    All Real Americans need to come to Tampa, in the millions, to assure this Last American Patriot’s VICTORY — or forever live in tyranny!

    Last Chance to Save our Nation — COME TO TAMPA — It’s NOW or Never!

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  20. Yes, because the Fed spent us $15 trillion into debt.
    Oh, wait, that was Congress.
    Fix that first, Mr Paul, before you fix the Fed.

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