Ron Paul: “The American people want us to find out what’s going on”

This Wednesday afternoon, Ron Paul joined Jim DeMint, Peter Schiff, Tom Woods, Rand Paul and David Rittgers for an insightful discussion of the latest political and economic developments.

Part 1: (Ron Paul)
Part 2: (Ron Paul)
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Channel: Fox News Strategy Room
Show: Freedom Watch
Host: Judge Andrew Napolitano
Date: 7/8/2009

Transcript of Ron Paul’s appearance

Judge Andrew Napolitano: The Federal Reserve is a private, unregulated bank into which the Obama administration wants to put all regulatory authority for financial institutions, from the compensation of executives to the investments companies make, to the locations of their franchises, to the amount of fat in McDonald’s hamburgers, and they want to the Fed to have this power without appeal and without having to state the reasons for the regulations that the Fed may promulgate.

All grouped investments, even if the investors owned the group like hedge funds will be subject to the Fed’s new rules. Under these new proposed rules all state-chartered banks will now be subject to the Fed. All businesses, whether financial in nature or not, that are owned by any financial institutions will be subject to the Fed, even and Mom and Pop shops and stores that if, in the Fed’s opinion, should they fail, could produce systemic harm to the economy will be subject to the Federal Reserve.

The Fed and the Fed alone shall have the authority to require your lawyer and your accountant to report data to the Fed that even the IRS can’t get. There appears to be no limit to the private human behavior that the Fed cannot find a way to regulate under this proposal of the Obama administration.

But who will regulate the Fed? What will become of the clauses in the Constitution that were written to prohibit just this very type of regulation? What ever became to the word “free” in “free market?”

You know who is coming. It’s my great pleasure to introduce one of the great defenders of freedom and liberty in America today, Congressman Ron Paul joins us from our nation’s capital. Congressman Paul, welcome back to Freedom Watch.

Ron Paul: Thank you, Judge. It’s good to be with you.

Judge Andrew Napolitano: What is the status of your bill, which now has a huge number, well, more than half of co-sponsors in the House to regulate the Fed? What is its status in the Senate?

Ron Paul: Well, in the House, we have 250 co-sponsors and 80 Democrats, so we’re doing very well. Of course, in the Senate, we don’t have as many members, just a few, but Jim DeMint is doing a tremendous job over there and tried to attach it last week. Now, that was denied on a technicality, but that is just a facade because the technicalities are always ignored for things that they want. This means they don’t want it and this is their organized effort now to stop us, but we’re not going to be stopped.

It’s just going to energize everybody at the grassroots because the grassroots are for this, that’s why we have 250 co-sponsors and as you just described in your opening statement, this whole idea that the Fed created the problem that we have, created the bubble, and then we’re going to give the Fed more power? It makes no sense.

The only place anybody can figure out how this can happen, it would be in Washington, DC. You know, someone creates a problem, so we get them promoted.

Judge Andrew Napolitano: What are the powers that be afraid of that might be revealed if and when the Fed is audited?

Ron Paul: I think the biggest thing is the cronyism, you know, who got the benefits, who really got some of these Federal Reserve funds as well as TARP funds and I don’t think they want people to know about it and also for me, internationally, I’d like to know what they’re doing internationally. What kind of agreements they have with international banks, with other governments and also what they do in the gold market and how they manipulate the value of the dollar by manipulating gold prices.

So there is just so much that we can learn, but the truth is when people asks me, “Exactly what are you going to find?”, the whole point is we don’t know exactly what we’re going to find. But we know one thing, they’re going to dig their heels in. They’re going to do everything in the world to prevent this bill from passing.

Judge Andrew Napolitano: I hope that you find, that the public recognizes, that since the Fed began its secretive and monopolistic ways of regulating our monetary policy and our money supply in 1913, that the dollar has lost about 95 percent of its buying power. Wouldn’t it be wonderful if people discover that and found it out? We all know it already and decided to get rid of the Fed.

Ron Paul: Well, I think this is the first major step. Of course, we have more co-sponsors on this bill not because we’ve taken position exactly what we should replace it with, but everybody agrees we need to know what they’re doing.

Whether you believe in a monetarist approach or Keynesian approach or a hard money approach, the American people now want us to find out what’s going on. They want transparency and that to me is good time for us to find out what is happening, but like you say, when we discover what’s really been going on, I think the American people are going to demand the next step. They are going to demand honest money. It’s happened many times over history. Usually, when you have the vote by the general public on honest money, sound money, hard money versus paper, the people always vote for sound money becauase it makes so much sense.

Judge Andrew Napolitano: Your dogged, indefatigable, tireless effort to expose this monster is so revealing and so rewarding of your own personal understanding of how our economic society works. It’s amazing to me the number of people from all across the political spectrum of every type of political ideology imaginable in the House of the Representatives that is now in favor of this.

What frustrates me is that the structure of the House of the Representatives starting with Mrs. Pelosi and going to Congressman Frank, gives such extraordinary power to individual or human beings who have positions and hierarchy in the House that they can frustrate what has now become the overwhelming majority will of members of the House.

Ron Paul: Yeah, I think this is great, but I give credit to the grassroots and I think we’d get the kind of government that we deserve and I think that if the grassroots in America wake up, they can change government. I mean, the system still works to that degree. It’s getting on shaking grounds, but it will work if the American people will really wake up and demand changes.

The members of most of the parties that are members of Congress are decent people and they like their job and so if they like their job and the American people say, “Look, you can’t have that job unless you do our bidding.” Now, that means we need to get this thing under control and that to me is a healthy sign.

Judge Andrew Napolitano: This morning the House of Representatives Committee on Oversight and Government Reform issued about 110-page report, which basically told us what we already knew. But Peter Schiff, who will be on in just a few moments, predicted before September of 2008 that the housing crisis would cause this recession. Tom Woods, who will also be here in a few minutes, has catalogued and has outlined itbrilliantly in his book, “Meltdown”.

But it’s astonishing to me that some aspect of the Congress has finally acknowledged that the government was behind the housing crisis, that the Community Reinvestment Act of 1977 forced banks to loan monies in neighborhoods and at amounts where the banks would not do it if they were permitted to be motivated by just the free market, that Fannie and Freddie were willing to take all the bad mortgages and all the bad loans that the government encouraged other banks to make, that the Bush administration ordered the Department of Housing and Urban Development to make available 150,000 mortgages with zero money down, which as you know Congressman, in some states isn’t even considered a purchase; it’s considered a lease. I’m sort of stunned that anybody in the government now admits this, but I’m not expecting that they’ll change their ways, are you?

Ron Paul: No, I think the leadership still likes those programs. The basic flaw is easy money, the easy credit and lower the market interest rates, that causes the difficulties. But then when you add on it the CRA and these other government programs dictating the terms, they literally encourage at the threat of punishment if you do not make these bad loans. So that’s like pouring gasoline on a fire, it made the bubble grow that much bigger and finally it burst. So yes, and what are we doing now? We’re trying to bail that system out. We reignite that whole process and I’ll just say that it will be totally, totally impossible for them to achieve any recovery into what they’re doing here.

Judge Andrew Napolitano: We’re chatting with Congressman Ron Paul, Republican of Texas. Congressman Paul, the president in Russia two days ago and your colleague from the other side of the aisle, Senator Whitehouse from Rhode Island last night, a Democrat, both suggested that the government might need that the administration might propose a second stimulus. I only chuckled because of your view and my view that you can’t solve a problem caused by too much borrowing and spending with more borrowing and spending.

Ron Paul: Yeah.

Judge Andrew Napolitano: But the money that the government is authorized to borrow under the so-called stimulus program, which is about $780 billion on February of 2009, they’ve only borrowed and spent about 10 percent of that. Under what conceivable theory do they now think they can go back to Congress and get the authority to borrow more money when they haven’t even spent 90 percent of what they have the authority to borrow?

Ron Paul: Well, there are a lot of reasons to be pessimistic about what is happening down here and I always try to look on the positive side and search out for a positive program or whatever movement or direction we’re going in. But if they came along and they’re able to do that, believe me, that will be just more discouragement to everybody who’s trying to correct this mess and the American people would just become more outraged because they’re upset about the first one. How do they believe that the American people are going to say, “Yeah, that’s a great idea, another $700 billion. Pass it on out to your cronies and bail out your friends and your buddies, close the books and don’t even talk about the Federal Reserve.”

The American people are catching on. I just think that the time has passed when they can run rough-shot over us and try to talk the American people into just blindly endorsing everything that we do here. So that to me is a good sign that the American people are fed up with this.

Judge Andrew Napolitano: Switching gears a little bit, Congressman Paul, what’s your take on the President’s trip to Russia and the President’s trip to Italy, to the G-8, to the G-20? First with Russia, do you think that he’s involved in some kind of negotiations or deals that we should know about? Do you think that he, not withstanding his protest to the contrary when he was a senator, will pick up the same cudgel, the same mantle of sort of a muscular bullying foreign policy that his predecessor employed? What’s your best guess?

Ron Paul: Well, I think he’s burning up too many fossil fuels with what I think he’s doing. I think he ought to stay home and park Air Force One for a while. Well, yeah, all kinds of things could be happening. I don’t know what he’s promising. You know, he went over earlier in the spring to one of the group meetings and said, “Oh, yeah, we’ll give you $105 billion to the IMF.” So he comes back and he says, “Hey, Congress. I promised them $105 billion, you better do it.” So the party comes up and says, “He made a promise. His honor is on the line.” So we gave him $105 billion.

So all these negotiations or what he’s doing, who knows what he’s talking about. But so far, he hasn’t indicated that he’d take those anti-ballistic missiles from the borders of Russia. If he really wants to improve relations with Russia, why don’t we just bring those missiles home. What would we say if the Russians were doing that in Mexico? We’d be furious. So I don’t know what he’s talking about. I don’t think he’s up to much good. But I know that one thing that if you wanted to change policy, you could probably do it over the telephone.

Judge Andrew Napolitano: There you go. On Sunday afternoon at 6 PM, it was a Sunday, it was a 3-day holiday weekend, a Federal judge walked into his courtroom in Lower Manhattan and read into the record an 85-page opinion authorizing and approving the proposed bankruptcy sale and creation of a new General Motors. This was done after very, very minimal and virtually meaningless testimony. It took fewer than five weeks. It was arguably the biggest bankruptcy in American history and it put the American taxpayer on the tab for $50 billion.

This is a company that loses money on every car it makes and not a peep of protest, except from folks like you and I and the people watching us now who monitor this all the time. Not a peep of protest was to be heard. Is government nationalization of failing businesses now about to become so commonplace that we are not shocked when things like this happen?

Ron Paul: Yeah, I refer to this process as “nationalization without a whimper.” It just goes on and on, but fortunately, we have you and others out there talking. But I have to add, Judge, I have to run. The bells are ringing and I have about a minute to get to the floor.

Judge Andrew Napolitano: Get there in time to vote, Congressman Paul. Thanks for joining us.

Ron Paul: Bye bye.

Judge Andrew Napolitano: Until next week on Freedom Watch.

Ron Paul: Thank you.


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  • Christine

    Curious…but when we elect a president that state promises on the campaign trail and then does the opposite after in office, is this grounds for the people to impeach him? Seems there ought to be a simple remedy rather than enduring the next 3 1/2 years in constant turmoil. We need someone who bucks the FED.

  • Larry Hughes

    Our Constitution delegates to congress 18 enumerated powers. Since congress gave away one of these powers (to coin money); it is self evident they can give away any or all of the other 17 thereby abolishing themselves and our entire government with them. Whom might they choose to declare war, maintain a navy, tax the american people, etc; perhaps IBM, Ford Motor Co. or General Electric? Congress is not delegated the authority to delegate it’s powers to another which was given exclusively to them and no other. The Fed is unconstitutional. Abolish the Fed.

  • GO, RON, GO!!!
    Congressman Paul may be the ONLY PERSON capable of spearheading this thing. The Fed, guided by the fools at the Bank for International Settlements, is driving the economy RIGHT INTO THE GROUND. The idiots have lowered interest rates in an attempt to re-inflate all these stupid financial bubbles.
    Article, with more juicy Ron Paul video:

  • This show is the best thing going on fox in my opinion. The judge is a true libertarian and really knows what he is talking about. Lets all make sure we support the show by watching it live on the strategy room so that fox will put more money into it and perhaps make it main stream…. imagine a show like this on mainstream media? people wouldn’t be able to handle it!

  • Daniel L

    Congress & Senate call the shots why are they waiting for the house finanial serv. comm. letting this bill sit on Barny Franks desk dont wait for them.This tells me that Mr.Barny Franks may have a vest interest maybe bonds? maybe notes? but anyway he is not representing the poeple,maybe himself? I have upbringing in Massachusetts and friends,family maybe he will be excuted out of office ??

  • Daniel L

    Judge Napolitino your right to to every aspect of this !! Simply Congress & Senate need to declare the Constitutional right to issue Our dollar up hold this duty which Art.#1 Sec.#8 1st.Ammendement “clearly states Congress shall have to exclusive right to coin, create the value of the dollar thereof no private,no individual,or entity “. They can simply start to issue the dollar threw the treasury & the mint without a ponzie interest/debt system. they can account for this throw what is already established the G.A.O.. This is a violation of Constitutional Law,since Dec. 22,1913. Q??? why are they afraid of doing this for we have all the support they need. Your are right we have Known and have Woken!

  • Lancelot

    Im a huge fan of the Paul, but this fed audit will not accomplish anything. Does anybody think that what we find about the fed will not be explained to the dumb American people in a way they cant understand so they just hope that the banksters are doing the right thing. Chances are this audit will get us a bunch of information that will piss off alot of informed people problem is informed people are about 4 percent of the nation. This audit will help the fed gear up for public scrutiny thats all. I honestly cant see the audit giving us information that which angers the nation enough to destroy it.

  • Following the presidential election, I had a very eery experience which I recorded on the web site below. Please read it and let me know what you think about it.

    • SPauken

      Not to discount what you and millions of people felt right after the election, but it doesn’t prove anything. The Bible should be our guide to the future, not how our feelings in addition to the Bible connect on future events. The Lord has told us everything he wants us to know, and we shouldn’t speculate.

    • Richard Haynes

      WTF does this have to do with the article that I just read? ? ?

      Come on, stick to the subject!

      This being as you requested, what methinks about your post