Ron Paul: Do We Need The Federal Reserve?

In response to Ben Bernanke’s speech on why the Fed is the solution to (and not the cause of) our financial problems, Ron Paul was interviewed by David Asman on the Fox Business Channel:

Memorable quotes:

“One time it was gold [that backed our currency], then it was silver, then it was treasury bills, then it was other assets, and now they want to sort of monetize car loans and credit card debt? That’s the point where we’ve gotten to, and it won’t work. It’s going to eventually come to an end.”

“They keep building a pyramid of debt based on a false trust and illusion that there’s actually money behind what this credit stands for. So, there’s no way you can keep this going. Eventually, the trust is lost, the con game is over, and this is what people are discovering not only in this country but around the world.”

“We create this illusion of wealth by creating credit out of thin air and somebody benefits until it’s discovered that it’s all a fraud, and then the penalty is put on some innocent people [through inflation].”

“This idea that you can bail out forever is just complete nonsense. It leads to the kind of trouble we have today.”

Confused? Here’s an introduction to fiat money and inflation.


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  • Jenny

    What scares me is watching the stocks and commodoties fall at the same time. What are people doing??—putting their money in thin air somewhere?? This just can’t be! How are they controlling this? Can someone explain this to me?

  • Rajesh

    One more thing that supports Paul’s reasoning..

  • Wm

    Jon, I agree with you but the American people are not about to wake up on their own, or they would have by now. They are too busy working two or three jobs to pay their bills, their taxes, and trying to keep their spirits alive by watching American Idol or going to football games.

    They seem to want the quick fix rather than take the time and effort needed to learn, to read the books, to ask the questions, to check their premises, to really understand rather than to take the word of their leaders, their clergy, their parents, the talking heads on TV.

    Perhaps it is up to each of us to wake them up one or more at a time. Ron Paul’s books will no doubt be read by the choir and a smattering of others. The trick is to engage others in this political season when there might be some possibility to enlighten them about the existence of a more rational perspective than they are operating on.

    That is why it is so important that each of us become as knowledgeable as possible about the philosophy which underlies our positions. The idea is to have a rational basis for our positions right down to basic principles.

    That is why I am concerned that the lists of books recommended are too long for someone new to the movement.

    The answers to many questions can be found in the economic writings of Murray Rothbard, Ludwig von Mises and others in the Austrian school of free market thinking.

    But many of the issues are not economic issues and instead involve ethical considerations. There is much confusion of the issues of individual rights for example. At the risk of alienating anyone here I would suggest that reading Atlas Shrugged would provide a thought provoking introduction to the realm of clash of philosophies happening in our society.

    Reading the essays in The Virtue of Selfishness and For the New Intellectual and Capitalism:The Unknown Ideal would help anyone to crystallize his or her own ideas. It would also provide a perspective to help one understand the premises underlying opposing positions.


  • Jon Walston

    Ron Paul is the most intelligent politician today. When the american people wake up one day he will fix this country.