Ron Paul: We Must Expose the Federal Reserve and End the Welfare-Warfare State

by Ron Paul

Federal spending once again dominated the debate in Washington last week, as House Republicans and Senate Democrats began work on their ten-year budget plans. Contrary to claims, neither party’s budget reduces spending. While the Republican plan increases spending a little less than the Democrat plan, it would still spend $5 trillion in 2023, an almost two trillion dollar increase over this year’s budget.

Of course, these projections of future budgets are meaningless, as a current Congress cannot bind a future one. Therefore, the projected spending for next year is the only part of the budget with any significance. So is there a great gulf between the two parties’ budgets for next year? No. For fiscal year 2014, the Democrat budget proposes spending $3.7 trillion, while the “radical” Republican budget spends $3.5 trillion!

While the two parties bicker over minor differences in spending, the stock market, which many in Washington predicted would crash unless the parties reached a “grand bargain” on taxes and spending, seems unaffected by the various manufactured budget crises. Unfortunately, the market’s indifference to Washington spending games is based on the fallacy that the deficit does not matter as long as the Federal Reserve is willing to monetize the federal debt.

Federal Reserve Chairman Ben Bernanke is certainly doing all he can to facilitate deficit spending. The Federal Reserve’s desire to monetize the federal debt is a main reason for the aggressive program of buying federal debt via the continuous quantitative easing. Under Chairman Bernanke, the Federal Reserve is pumping as much as $85 billion a month into the American economy. This out-of-control monetary policy is largely conducted behind closed doors, yet it has much more effect on the do day-to-day lives of Americans than Congress’s phony budget debates. The Federal Reserve’s polices erode the value of the dollar, causing prices to rise, which in turn diminishes people’s standard of living. This inflation tax may be the most hideous tax of all because it is both hidden and regressive.

Of course, the Federal Reserve can only keep this up for so long before doing serious damage to the economy. The Austrian school of economics teaches that the Federal Reserve is responsible for the boom-and-bust cycles that plague modern economies. The Federal Reserve’s aggressive money pumping runs the risk of creating hyperinflation — especially once banks stop hoarding their reserves and began flooding the economy with Fed-created fiat currency.

Even though the economic crisis of 2008 proved the Austrians correct, there are still too many in D.C. and on Wall Street who believe the Keynesian fallacy that government and the Federal Reserve can spend-and-inflate our way to prosperity. But, as is the case with the narcotics addict, the longer the Federal Reserve enables Congress’s habit of deficit spending, the more painful will be the withdrawal when Congress is finally forced to kick the habit.

The role of the Federal Reserve in facilitating deficit spending by the US—and even foreign governments—means it is a mistake to segregate monetary and fiscal policy. Our nation will never get its fiscal house in order until we reform monetary policy. The first step is letting the American people know the real facts about the Federal Reserve’s actions.

The debate over the federal budget and even the battle over the Federal Reserve are ultimately arguments over symptoms rather than the cause. The root of the fiscal crisis is the belief that the federal government is qualified to manage the economy, provide for the people’s needs, and spread democracy throughout the world through either by foreign aid or by force of arms. Neither party in Washington questions the welfare-warfare state.

Until Congress begins debating questions such as whether or not we really need thousands of military facilities around the world, whether or not we should shut down the Education Department and return control to local communities and parents, and whether we should allow young people to completely op-out of the entitlement programs, the so-called debates in Washington, D.C. will continue to amount to nothing but sound and fury, signifying nothing.


  • French Canadian

    Yes Robin, your relatives would agree with Syrian Girl. She really knows her stuff. I must have listened to 20 to 30 interviews with her on Alex Jones in the past i-1/2 years. Although she is young, she is very well informed and awaken.

    Yesterday on the Alex Jones show, we were blessed by 3 formidable interviews:

    – The first one was with Greg Palast on Skype. I really like him, one of my favorite regular guests on the show. They talked about the Cyprus banks, Piers Morgan and Hugo Chavez.

    – The second amazing interview was with Billy Corgan in studio, the funder of Smashing Pumkins, they talked about HOW to bring people to the truth, to bring them on your side.

    – The third one was incredible, Jon rappoport was the guest on Skype , they talked about James Holmes, truth serum, torture and many other subjects.

    Alex Jones Show: Thursday (3-21-13) Greg Palast & Jon Rappoport

    Here are the times where these interviews starts:

    – Greg Palast starts at: 1:08:41
    – Billy Corgan starts at: 2:08:25
    – Jon Rappoport starts at: 2:33:47

  • robin

    French Canadian, Here is the video I forgot to post.

  • robin

    French Canadian, You probably already heard about the Syrian protest in Germany. My relative would agree with Syrian girl…

  • Mike Burke

    I’ve been on this bandwagon for years, but I keep getting asked questions I don’t know how to research. Here’s the one that is stumping me right now:

    In the ’60’s Sweden embarked on the path that Obama is advocating today. It lasted into the late 90’s and had major detrimental effects on Sweden’s economy. The krona has been devalued a number of times and purchasing power has dwindled, although Capitalism is now on the upswing (at least nominally). However, Sweden’s Central bank is still issuing fiat money and Sweden somehow avoided a currency collapse. How did they do it? Can the same thing happen in the USA?

  • French Canadian

    Robin, good interview on Syria by Ben Swann. Do you know “Syrian Girl”, she has been a guest on theAlex Jones Show for about a year and a half now. She has a lot of knowledge and she explains very well the problem. Here is one video of her where she explains why the NWO hates Syria. Worth seing!

    Why The NWO Hates Syria

    On yesterday’s show, Lyndon Larouche was one of the guest.

    Lyndon LaRouche: Rapid Population Reduction Policy Implemented

    Also, yesterday, Alex talked about Syria for the first 35 minutes of the show, it was a great résumé.

    • robin

      French Canadian, The only problem we had and others is this was only one mans opinion and we never knew who he was. Also, because he did not speak English fluently, the short interview wasn’t as compelling as it could have been. My husband suggested Ben have a panel of people-those who live in the US as well-travel there and have family like our relative does. Apparently, many Syrians have contacted Ben and he will be posting more. We saw a new BBC documentary on the history of Syria and we learned a great deal, but also know that it is a propaganda film to vilify Assad making him look like an evil dictator that the Syrians want to deposed. We do understand now why so many Sunni’s hate Assad because of his father. It’s very complicated.

  • PS:12

    Tell tale signs; Chess game; you know the game played. Moving players into position then make a counter move. What can be done when both sides are being played by the money changers? Can nothing be done? Well, that will have to be seen under the crunch of instigated mega multinational debts!

    Out of all my research into the shadow money changers, all I have come to see is that all their plans have failed miserably, horrifically and terribly throughout history. They only come out on top if they still control monetary policy ‘after’ their unsustainable system falls apart.

    Many have tried but few have succeeded in stifling the money changers. Let US name the few here please?

  • French Canadian

    Robin, Switzerland is really an amazing country. I don’t know what it really stands for, but it seems to me, that it is sort of a smaller model of what the USA was a long time ago: Free, rich, armed and independant.

    – First they use federalism as a form of government, meaning that they have Cantons and Municipalities who are autonomous financially. Switzerland’s national debt is quite low, around 49% of GDP, so their policies must be good. Federalism works a bit like a Repupblic in a way, where you have States instead of Cantons or Provinces like in Canada.

    – Second: They refused to join the UN and they use Franc Suisse for their Money. Bravo! USA, Canada and Mexico are also fighting the North American Union.

    – Third: It is an obligation to be armed in the country. USA is also armed, but it is not an obligation.

    – Fourth: They use direct democracy, meaning that the people vote there many times in the year on all sort of things. USA have State nullifications who in a way is about equivalent.

    People think that Swiss is rich because of it’s Secret Banks with their Tax Havens. Although a part of this is true but in the overall, Switzerland has a lot of Free Market economy, small and big companies. They also export a lot of goods. Speaking of Bank privacy, I personnaly would like for all Banks to be “tax haven”, since I believe that income taxes is a complete FRAUD…lol.

    Now, is it part of the NWO? It doesn’t seem to be is so far…. but who knows for sure?

    “Are they there to protect the Pope and why they are armed?” (Robin)

    Protect the Pope? Why would they protect the Pope? I don’t get your question here. Unless I forgot something or don’t understand the plot here.
    As for arms, I believe that just like Americans, they want guns to protect themselves.

    “How is the Vatican involved in the NWO?” (Robin)

    The Vatican is very powerful and the Vatican Bank is a complete mystery… they have had many scandals concerning financial fraud. Does that reminds you of your banks?… lol. I believe they are part of the NWO… a strong feeling I have. I mean if we’re going to have a NWO, this will mean a One World Bank… and probably a One World Religion.. I mean you unite or you don’t, right?. And by the way, the sexual scandals are almost 100% proved… I do not doubt them for a minute. So many sexual scandals in the Churches everywhere in the World, why not at the Vatican?

    Concerning the Pope, yesterday, Gerald Celente said on infowars that he smells something fishy about it, since a Jesuit was never supposed to become Pope.
    Some people on the net say he is the Black Pope… not by the color of his race, but because of the Black robes that Jesuits wear. Other say that he is Italian, since his parents were italian immigrant… and so on an on… So many things are said… we will have to wait and see.

    Finally, did you listen to the Interview with Texe Marrs?

  • robin

    French Canadian, I can only assume your response and postings are delayed. Let me know if you saw my postings and response. I will try and post things on the latest thread.

  • robin

    French Canadian, So many threads here, so I will do the most recent one. I gave you a reply to the Tex Marrs interview. Also, have a few questions I would like your thoughts on. Where does Switzerland fit in? Are they fighting the NWO or are they there to protect the Pope and why they are armed? What is their role? What about the IMF=have we been paying taxes to the Crown of England since the revolutionary war or sometime later, or is this just nonsense? How is the Vatican involved in the NWO? Someone who is a Catholic I know and awake asked whether all this abuse is real or staged to discredit the church. Is the new Pope really want to do something about this abuse going on in the church?

  • robin

    French Canadian, Here is a special Ben Swann did on his Full Disclosure program about Syria. The Truth about what is really going on there. Our relatives who live there confirm this.

  • The “Federal Reserve System” — do you know what that is? You’d better, because those unconstitutional criminals have been stealing your hard-earned money for ONE HUNDRED YEARS! If this isn’t enough to make you madder than Hell, and to make your blood boil, then do some independent research, and find out what those criminals have been using OUR STOLEN money, for, during the past ONE HUNDRED YEARS!

    Ron Paul is my President — the Defender of our Constitution. GOOD GOD ALMIGHTY, WHEN will this MADNESS ever end??!! END THE FED!

  • JOHN


  • French Canadian

    At the speed the Federal reserve is moving, it won’t be long before you are faced with the same thing that happened in Cyprus this week-end:

    After Banksters Steal Money From Accounts In Cyprus They Will Start Doing It EVERYWHERE

    Cyprus government’s ‘great bank robbery’ of private accounts may set off bank runs across Europe

    Banking Chief Calls For 15% Looting of Italians’ Savings

    The Rape Of Cyprus By The European Union & The IMF