Ron Paul Exposes The Federal Reserve And Explains Why It Doesn’t Want To Be Audited

Show: Saturday Night with Dimitri
Host: Dimitri Vassilaros
Channel: NewsRadio 1020K
Date: 10/17/2009


Dimitri Vassilaros: My guest is the only politician – federal, state or local – that I have ever admired, unabashed. He is from the Pittsburgh area here. He grew up in Green Tree, went to Dormont high school, now of course, part of Keystone Oaks. He was a great athlete in high school. He actually went to the state finals and won several state championships for the 100 or 220 yard dash. I mean, he is an incredible human being. He is also and OB/GYN and, of course, he is a libertarian. He ran for the Presidency as a Libertarian candidate in 1988. He is now officially in the GOP. But make no mistake about it, he is a libertarian in the true sense of the word.

And one of the reasons… in fact, the reason why I admire this man so much is because not only is he principled, but he won’t waver from his principles. He has strong principles and some other politicians do, too. But they tend to waver. This guy does not waver. If it’s not part of the Constitution, which he is for and will uphold and protect and defend, then he will not vote for it no matter what it is, no matter what it is going to cost him. And for the longest time, Dr. Ron Paul, congressman from the Houston area of Texas, has been warning us about what finally came to be. The meltdown on Wall Street, the incredible money policy that is just insane. And for the longest time he has demanded that we know what the heck is going on with the Federal Reserve. He has a bill he has been introducing now for I don’t know how long, demanding simply an audit of the Federal Reserve. Just so you and I know what they are doing with our money.

Finally, mainstream politicians, Republicans and Democrats in Congress, after this meltdown are going, “Hey, you know that Dr. Ron Paul might be on to something. Maybe we should get some idea about what the hell is going on with our money.” So now we’ve got strong bipartisan support for this bill.

Dr. Ron Paul, welcome back to News Radio 1020K, how are you, sir?

Ron Paul: Doing fine, thanks for having me on.

Dimitri Vassilaros: It’s an honor for me anytime I can have you on my program. It truly is an honor. So tell me, Dr. Paul, what exactly is the Federal Reserve, and why should we care?

Ron Paul: Well, it’s called a central bank, it used to be that occasionally governments would have central banks. We tried to have a central bank in our early history, but we got along without it for a good while. But all the countries in the world now have central banks. They manage the money supply. No country is on a sound monetary system. There is nobody on a gold standard or a silver standard. The politicians, through their central bank, are able to spend what they want and they can print the money that they need to make up the difference. And this is very dangerous. One of the biggest problem is that it encourages big government; that means they don’t have to pay the bills. If we’d have to pay all our bills right now for running the war and the welfare state and they tax the people, the people would rebel. But because of this sinister way of managing government by printing money and letting the penalty fall on different people at different times, it’s a hidden tax. So it’s nothing more than a vicious way of taxing the people.

It is said in Austrian economics that if you do destroy and undermine a monetary system and a currency, you literally wipe out the middle class. A lot of people can understand this when they think about what happened in Germany when you had runaway inflation. The middle class got wiped out. Or in Mexico, how many times has the peso gone to zero, everybody’s savings went down to zero. In Zimbabwe it just happened recently. And it’s happening to us now in a much slower fashion, but it could accelerate and it’s very, very dangerous. So the central bank is really, in a technical sense, a taxing authority. It is a way they can tax the people and transfer wealth from one group to another.

And even when the crisis came, which we anticipated, all the bailout, whether it’s to the Federal Reserve or the treasury, has all gone to people who have benefited all along. So Goldman Sachs and other big Wall Street firms are making off like bandits, and the people are now suffering. And that’s why I think so many people are so angry.

Dimitri Vassilaros: I’ve heard someone describe the Federal Reserve as this: Well, it’s not federal, and they don’t reserve anything. They don’t have any reserve funds. Is that true?

Ron Paul: They don’t have any reserves. Their reserves depend on a trust in the money, an illusion. They used to have reserves. They had gold and that’s why they built trust up over the years and that’s why it functioned for a good while. But that part of the system collapsed in 1971.

It’s really unique. Some people, you know, talk about whether it is private or whether it is government. And it’s not private in the sense of somebody starting a company. I used to use the term “General Motors” but I can’t use that as a private company any more because it’s been nationalized. But it’s not private in that sense because it’s been created by government. The Federal Reserve Act was passed by Congress. But what is so sinister about it is that it was turned over to private individuals who can run everything secretly. That’s why, of course, the audit is so important. So it’s been federally created. It’s special, it’s secretive, it has privileges far beyond any private corporation. Private corporations would have to yield to anti-fraud laws. But the Federal Reserve commits fraud by counterfeiting money.

So we’ve legalized a secret organization that can counterfeit money and take care of all their friends, fight wars that we shouldn’t be fighting and run a welfare state that is doomed to fail. Now we see the poor people losing their jobs, losing their homes and it’s just a lousy system.

Dimitri Vassilaros: My guest is Dr. Ron Paul, libertarian Congressman from the Houston area of Texas, officially he is a Republican. If you’d like to speak with him, if you have questions, you might want to line up now. The Dr. Ron Paul hotline is 412-333 KDKA, that’s 412-333-5352. You can go online at, click ‘dollar bank instant access’ if you have a question for Dr. Ron Paul. Dimitri live and dangerously local, every Saturday night from 6pm to 9pm right here.

My very special guest is Dr. Ron Paul, libertarian Congressman from Texas. Officially he is in the GOP, but officially just represents you and cares about you and the problems with our money. Dr. Paul, a question about the Federal Reserve. Some have described it as a bank cartel, is that a fair way of describing it?

Ron Paul: The Federal Reserve board, of course, is made up seven plus five that makes up the Federal Open Market Committee and they sort of run things from Washington DC. But then they have all the regional banks and every bank has to join and they own some stocks and then they get some dividends.

But the fact that they can create money out of thin air and place it in banks for their benefit, the fractional reserve banking system is also something that benefits the bankers. They can loan out money they don’t really have. So it’s all based on fraud. So it’s very, very big and the banks do make up a cartel because they dictate what money should be and the market has no control over it. When the dollar was backed by gold there was a restraint. But now there isn’t. The law and the Constitution still say that legal tender is the dollar, silver or gold. But today if you use gold or silver you can go to prison for this. And there is no law that says that the Federal Reserve note equals one dollar. One Federal Reserve note equals one dollar, you can’t find a place in the law that says that the case. It has just sort of morphed into this. But if nobody accepts that piece of paper as the money, as the legal tender, that’s why it’s called fiat; by declaration you have to accept it. So that makes them a cartel and it’s probably because the dollar is a reserve currency of the world, it is probably the most powerful cartel in the whole world. Might have been the most powerful cartel ever in the history of the world, as far as I can see.

Dimitri Vassilaros: Alright, just talk about some of the people who have been in charge of the Federal Reserve. There is Paul Volker, who took it upon himself, I gather, to increase interest rates to a tremendous level to, I guess, fight inflation. And so he was manipulating the markets and then you’ve got Greenspan who, like others, has done pretty much the same thing. They decide how much money goes out, they decide what the interest rates are going to be. To me it’s almost Orwellian the money and the power these people have by controlling our money. Is that a fair way of describing it?

Ron Paul: Yes, it is. And they believe that they’re truly responsible central economic planners. One time when I challenged Greenspan on this, who used to believe in the gold standard, he said that he was convinced that central bankers have now learnt how to manage the monetary system as if it were gold. Well, look at what he did. He took interest rates down to 1%, inflated and created the bubble and now we’re trying to get out of this mess by doing very much the same thing: spend, borrow and inflate the currency. But they come to believe in it, they really do. It’s delusional. They have the power, they benefit at the same time.

They probably don’t of see themselves as being evil, they probably see themselves as good managers and when things are going up, when the bubble is being blown up, there are a lot of people who do appear to be helped. You know, in the last several years when people were buying houses who shouldn’t be buying houses, they didn’t have any money and they bought a house for $100,000 and it went up in value $200,000 and they could borrow against that… they thought it was miraculous.

So people thought they were benefiting but, you know, a country just can’t get wealthier that way. If that were the case, Americans would never have to work again if we think that they’re going to continue to take our dollars. So there had to be an endpoint and we’re not at the endpoint yet; we’re sort of in the middle. The financial structure has come undone. But the dollar still exists and we still use the dollar and the cost of living is still going up, but not as fast. But I think we’ve embarked on a course where we will destroy the dollar unless we quit.

Dimitri Vassilaros: What is a dollar worth?

Ron Paul: Well, a dollar is worth what you can buy, you know, what you can purchase with it. But there is no definition for it. It used to be that if you had 35 dollars you could get an ounce of gold. But a dollar is worth what the people will take and you can still go out and you can spend it. But it’s trusting the fact that the money will maintain its value.

You know, a lot of people don’t understand exactly what is going on. There are very few people that would say, “Oh, I’m going to have to save for my kids’ education, so I’m going to buy … let’s see, it will cost me $10,000 for his education. I’m going to buy $10,000 worth of treasury bills and I’m going to save them for 10 years or 20 years.”

Well, nobody does that. I mean everybody knows that the cost of the education is going to be 2 or 3 times as much. And the treasure bills won’t be worth anything. So it’s all a game they’re playing and mainly because you can’t define the money. You have to define the money. The monetary unit is supposed to measure all our economic transactions, it’s like a measuring yard like a yardstick. And we can’t even define it. And it changes all the time and then we wonder why the economy gets shaky and collapses; because we have no definition of our money.

Dimitri Vassilaros: Why did we ever get off the gold standard? I guess it started with Roosevelt and then Nixon put the final knife in its heart. To me it would make all the sense in the world that this piece of paper that they’re calling a dollar, is not money, it’s supposed to represent value. And so why would we ever get away from the gold standard or even silver, backing it with silver. Something tangible. Why did they do that?

Ron Paul: I think it’s power. Governments have done it for a long time, all throughout history. They always have a monopoly control over money like a cartel, and they always abuse it and they do it for their own benefit. And in the old days they would maybe just clip the edges off a gold coin in order to get more gold. Or they would dilute the metals like we did in the 1960s with the silver coins. And then they went to printing and now we just use a computer. We still talk about printing money, but it’s actually just a computer; they can do it so much faster.

But it gives them the power, it gives them a chance to do things that they wouldn’t be able to do otherwise if they had to pay for it. And it’s also a benefit to the people who get to use the money first. So, if you’re in the government and the government is spending the money or the military-industrial complex that might get money or the banks who get to spend it early on; they all benefit because the dollar has more value than after 2 or 3 years. It circulates and then the average person might say, “Oh, the cost of energy has gone up, the cost of education has gone up, the cost of medical care has gone up.” And they don’t see the connection.

So it’s power. I think power is the number one reason. Governments want power over the people and also for the wealth that they can accumulate by manipulating this. But it’s dangerous because eventually those people who are playing these games will be brought down as well. There are people who benefited by the inflation in Germany, but look at what finally happened in Germany. Everything goes down eventually.

Dimitri Vassilaros: You’ve mentioned that the costs go up, you see the costs increasing. I’m going to play the devils’ advocate and say that the costs really aren’t going up; it’s the value of the dollar that is going down.

Ron Paul: Right. That’s true. We refer to it as the prices are going up. Actually when people talk about “Well, inflation is only 1.5%, there is no problem.” I don’t even like that because what they’re referring to is the CPI. Of course, they change the definition of CPI when the CPI is going up too fast. But the inflation is increasing the money supply diluting the value, and sometimes it pushes some prices up.

If you have a lot of productivity in a certain segment, prices don’t go up. For instance, with all this monetary expansion over the decades, you take something like a cellphone or a computer or a television, those prices can actually come down. But other things, like when the government gets involved in education or medical care, those prices group much faster.

In theory, people say “Well, if you’d increase the money and double the money supply, if you double the wages and double everybody’s prices, no big deal” and the truth is that wouldn’t be a big deal but that’s not the way it works. Some people suffer a lot more than others because wages never keep up and some prices go up faster than others. And so the fallacy is that you’re creating wealth when you create new money. But that obviously is not the case otherwise we would all be very wealthy.

Dimitri Vassilaros: Indeed. Question: it seems as if the government has been printing lots and lots of money over at least the last 2 or 3 years. Former President Bush was, I think, fiscally irresponsible, grossly irresponsible with his deficits. And my impression is that the government kept printing and printing money to pay for the war in Iraq and all that, and as bad as it was under Bush and it was horrendous, it is now like 4 or 5 times worse. It seems like they’re printing just that much more money. If that’s the case, Dr. Paul, then why have we not seen inflation yet?

Ron Paul: I think we did. We saw inflation in the NASDAQ stocks all through the 1990s. It was up to 5000 and that was a bubble created artificially and now it’s down to 1500 or something. So it went up and then after that the bubble, the inflation… if you want to call it the price inflation. Housing prices went sky rocketing high and then they had to make a correction. So prices do go up. Medical care is very high in cost.

But I think you still have a good point: why isn’t the CPI going up? In the 1970s they admitted that the CPI was going up at 15%. That means it was a lot more pervasive back then than now. There are two things, I think, that have happened. One is that money hasn’t all stayed here. We spent our money overseas and the Chinese are taking that and they would save that, they would recycle that and buy our debt.

And the other thing is that Bernanke has more than doubled the money supply, nearly tripled it at one time during the crisis last year. That money can sit in the banks, but if the banks don’t want to loan, or people don’t want to borrow, you can put a lot of money in the banks and he referred to it as pushing on a string. You can push all you want but if the people don’t want it and the banks don’t want to loan it, it doesn’t get out there.

So the question is, could it stay like that for a long time? Well, we believe it will stay there for a while. But eventually people will anticipate and say, “Oh, prices are going back up again. I have to spend.” And it will eventually reflect not just in a few things like medical care and education and maybe energy, but everything will start to go up and then people will have a different attitude. Instead of trying to save their money they’ll want to get rid of it before it loses its value.

But that’s what is unpredictable. In Austrian economics they talk about this; but you can’t put a calculator to it or a formula and you can’t have a computer dictate exactly – well, “you double the money supply today and we know what is happening tomorrow.” We do know that the value of the money will go down and it will affect the markets in certain ways. But predicting the timing is very difficult.

Dimitri Vassilaros: My guest is Dr. Ron Paul, originally from the Pittsburgh area, grew up in Green Tree, went to Dormont High School. He is a libertarian congressman from Texas and he walks the walk. We’ll take a short break and then we’re going to ask him specifically about his bill to audit the Fed and how long he has been trying to make this happen and how close he is now to actually achieving that goal; simply to audit the Fed so we know what they’re doing. Dimitri live and dangerously local, every Saturday night from 6pm to 9pm right here, NewsRadio1020.

[…] Our very special guest this evening is Dr. Ron Paul. He’s a libertarian, Congressman from Texas, officially in the GOP, but Dr. Paul ran for President as the Libertarian party candidate in 1988. Was that right, Dr. Paul?

Ron Paul: Yes, that is correct.

Dimitri Vassilaros: I voted for you, by the way.

Ron Paul: Oh, thank you.

Dimitri Vassilaros: I was one of them.

Ron Paul: Remember, we came in third. We did pretty good.

Dimitri Vassilaros: Exactly right. So tell me, when did you first introduce this bill to audit the Federal Reserve?

Ron Paul: Well, I’m not absolutely positive but I know I did it the last time I was in Congress and I was there from 1978 up until 1984. I know I did it in the early 1980s. I think somebody else looked it up for me and they said the most support I ever had was about 18 members of Congress. So this is a big difference now. Attitudes are changed, conditions are changed and all of a sudden I think that we are getting the attention that the Federal Reserve has deserved a long time ago.

Dimitri Vassilaros: So, it’s been about 30 years. 30 years ago you started introducing this bill.

Ron Paul: Right.

Dimitri Vassilaros: And how many co-sponsors do you have now for this bill?

Ron Paul: All the Republicans have signed on, and 125 Democrats. So it’s like 301 or 302. And that means that in theory you could pass this under suspension, because you have to have 290 votes to pass it under suspension. That means two-thirds of the Congress support it. And I think the people who haven’t signed on to it would have a hard time voting against it because, you know, the Congress is now very much aware of what the people are saying. The people are upset, they want more transparency. They want more responsibility. They want to know what’s happening to the money.

So, the people are demanding this about the Federal Reserve. And mostly these people signed on not because of me, but because at the grassroots level and I think our Campaign for Liberty helped a whole lot, that the people started calling their members of Congress and started going to these town hall meetings and asked their Congressman, “Why aren’t you on this bill?” And they felt it was in their political interest to get on the bill. So, in a way it proves that the system can work when the people really become outraged and get involved and demand something be done, they will respond in Washington.

That said, though, we still have a ways to go to prove this point. At least we’re getting the members of Congress demanding it now. Now the big question is whether we can overcome the obstacles being placed in front of us by the establishment. They’re very powerful, you know. There are a lot of people who benefit from this. The banks, the big corporations, the governments. You know, it’s a big deal. So, it remains to be seen.

Dimitri Vassilaros: Do you think these co-sponsors are serious about it? Because if they were serious there’d be some sort of vote by now, I would think. Or are they just co-sponsors now to avoid the heat?

Ron Paul: I think there is a little bit of each. But even the average Democrat, being in the majority party, wouldn’t have a whole lot to say. You know, if you have Nancy Pelosi and Steny Hoyer against it and Obama against it, it’s not going to happen. And they will be hearing about how the end of the world would come if this would happen. “If the Federal Reserve was exposed it would just be horrendous. It would be a meltdown, you can’t do it”. And I’m sure that’s what they’re hearing right now because that’s what we hear from the Federal Reserve: “This would be just too much to let the people know what we’re doing”.

So far they haven’t responded by wanting to bring this up. Barney Frank, though, who is the chairman of the Financial Services, and I’ve known him for a good many years… the best I can tell is he’s pretty much upfront with me and his plan isn’t my plan because I want it to come up as a single bill. He said that he would put it on the major reform package which would have a lot of bad things on it. And that may happen, but there are some Democrats in the Congress now who are putting pressure on me now to water it down, which I have no intention of doing. So we have a little way to go, but I think in the next month or so we’ll see how this works out.

You know what, if we do get it passed there is going to be a lot of lawsuits. It will be years probably before we ever get to the bottom of it. But the most important thing has already been accomplished; and that is getting the American people’s attention on the real problem: the monetary and financial affairs and the Federal Reserve. So even if they allow it to go through and stop it in the courts, the courts have never been favorable to sound money. They always benefit the government and the big banks. So, if they either stop the bill or they stop it in the courts, it will just prove our point: what do they have to hide? What is so important that they can’t tell us what kind of transactions and what kind of deals they make with other central banks? What kind of things they do with other governments, international financial institutions? What have they done with all the corporations in this country? Who are they bailing out and why and when? They don’t us to know that and that is what is becoming apparent to so many Americans right now and it is very suspect.

Now if the dollar goes way down, and I suspect it will, then there is going to be even louder noise about monetary reform and it will be an absolute necessity to reform the system because even though there has been trust in the dollar which was a residual trust for when it was really gold and silver, it’s very, very hard to instill trust into paper when the trust has been lost. So, most of the time in the past what happened in other countries is you have to go back to trusting the government again that they won’t print money and that they will backup the money with something.

Dimitri Vassilaros: And what is the bill number?

Ron Paul: It is 1207.

Dimitri Vassilaros: HR 1207?

Ron Paul: HR 1207. And still, even though we have all the Republicans… if anybody is listening and wants to be involved … if they can call their congressman and if he is not on it then urge him to do it. That’s the way we have gotten so many. And we only have only 30 senators on. You know, it is bipartisan, which is very good and it’s also a liberal-conservative issue because Bernie Sanders, who calls himself a socialist, from Vermont, he introduced it for me in the Senate. So, this is across the board. So, liberals and conservatives and constitutionalists and libertarians should all support this. All Americans should support openness in government.

Dimitri Vassilaros: Dr. Paul, has the Federal Reserve ever been audited?

Ron Paul: No, it never has. They have audits going on. They would tell you that it’s wrong that the Federal Reserve was never audited, we do get audits. But they’re audits like clearing checks and, you know, the stuff that doesn’t matter. But they never had the books open as to what their agreements are, and who gets the money at the discount window, who borrows the money. Now, the one thing is that in the last year or so since the crisis occurred, it has been big time. It isn’t just a billion here or a billion there. We are talking about many trillions of dollars of transactions. But no, there has never been a true audit. And on their books they hold the gold as an asset. I think it would be a good idea for somebody to go in there and take a peek and make sure all the gold is there. A lot of people wonder about that and there has not been any significant audit of the gold either for 34 years.

Dimitri Vassilaros: Unbelievable. My guest is Dr. Ron Paul, libertarian Congressman who is demanding an audit of the Federal Reserve and if you’d like to talk with him, then this is your chance. The phone number is 412-333-KTKA, that’s 412-333-5352. Call right now. Ask the question and hang up and listen for the answer. We want to give as many people an opportunity to speak with Dr. Paul as possible. Dimitri live and dangerously local news radio.

We’re back with Dr. Ron Paul, a libertarian who is demanding an audit of the Fed. His bill is HR 1207. Dr. Paul, a lot of folks want to talk to you. You’d like to take some calls?

Ron Paul: Sure.

Dimitri Vassilaros: Alright folks. I just hit my keyboard here, I’m sorry. Let’s start with Paul, quickly ask your question.

Paul: Hi, thank you for taking the call. Doctor, I applaud you. You’ve got some real cojones, my good buddy. Listen, why is it that the burden should be placed on you when executive order 11110 is on the books and Mr. Obama should be enforcing that?

Dimitri Vassilaros: Alright, hang up for the answer there, thank you. Go ahead Dr. Paul?

Ron Paul: Now, I will have to have my memory refreshed on the 11110. Is that the one that came up under Kennedy or which one is it?

Dimitri Vassilaros: He’s actually hung up to listen to the answers.

Ron Paul: I think he might be referring to the fact that an executive order […] maybe the president can accomplish it as well. Which are some of the things he can do but, the Congress really has to be behind it. Like getting rid of the Federal Reserve; that should be a congressional function. Restricting the Federal Reserve should be a congressional function, to get the books open is a congressional function. It is interesting that they tried to get to the bottom of this under the Freedom to Information Act. And the law does not exclude the Federal Reserve. But it looks like there may be some progress in the courts. There have been some lawsuits on this. One ruling said that they have to open the books, the other one said they don’t have to. That’s working its way through the courts.

So there is no reason why they should have been exempt. But just talking about the Federal Reserve on how unique they are is not surprising that they have been exempted from ordinary oversight.

Dimitri Vassilaros: Alright, let’s go to Chris. Quickly ask your questions for Dr. Paul.

Chris: Dr. Paul, good evening. I’m a former constituent of yours from the 14th district in the early 1980s in Texas.

Ron Paul: Wonderful.

Chris: I enjoyed a few conservations with you personally, and I enjoyed meeting you.

Dimitri Vassilaros: Your question, please.

Chris: My question is: Goldman Sachs used to have an undue influence in the United States government. If you look at the past secretary of treasury, including…

Dimitri Vassilaros: Your question, please. Your question. Focus on the question.

Chris: Okay, the question is: is the United States government in the throw of Goldman Sachs and are they working against the American people for the interest of Goldman Sachs?

Dimitri Vassilaros: Thank you.

Ron Paul: Goldman Sachs has an unbelievable amount of influence. If you had to pick one company that had more influence on the government than any others, then I think Goldman Sachs has to be up there very high. But then you have other ones in the military-industrial complex, like some of these manufactures, Halliburton and others. They have a lot of influence. But right now, as far as policy goes, because so much influence comes from Goldman Sachs – both in the Federal Reserve and in the treasury, so they may well be at the top of the list.

Dimitri Vassilaros: Alright. Let’s go to Bob. Quickly your question for Dr. Ron Paul?

Bob: Hi. I have two quick questions. First of all, thank you Dimitri and it’s my pleasure and my honor to talk with you, Dr. Ron Paul.
No.1: Just for my own benefit, what year did you graduate from Dormant.

Ron Paul: Let’s see, it was 1953.

Bob: My second question: do you have frequent or occasional conversations with Sarah Palin?

Ron Paul: No, I have not met her.

Dimitri Vassilaros: Alright, thank you very much for that. Let’s go to Franco.

Franco: Hi, Dr. Paul. I want to ask you this: given that the media is so controlled and Congress is so corrupt, how can we even expect them to even think of doing something like an audit of the Federal Reserve or abolishing them?

Ron Paul: Now that’s a good question. Somebody asked me once who is going to audit the auditors. If the system ever worked, the GAO is probably the organization or the agency of government that has the most respect in Washington. It is not considered to be partisan. But there is nothing that guarantees it. I’m not as worried about the GAO not doing the job; I’m much more concerned about the corruption in the courts and the courts blocking it, or the president blocking it with a veto. This sort of thing is much more so than the GAO. The GAO would have a crack at it then, but I know what you’re concerned about it and there is no way I can guarantee that it would work perfectly.

Dimitri Vassilaros: Dr. Paul, I always give my guest the last word. You’ve got about a minute and no more than that to say whatever you want to directly to the KTK listening audience. Ladies and Gentlemen, Dr. Ron Paul.

Ron Paul: Well, I want to thank you for having me on. I love this subject. I think it is going to be more important as time goes on. After the presidential campaign we started an organization called the Campaign for Liberty and it’s alive and well. I hope people will tap into that website and help us out, because that’s what I have been doing for 30 or 40 years now; campaigning for liberty and liberty is the cause. The partisanship gets very annoying and very tiring. So I don’t enjoy that part of the job I have.

Dimitri Vassilaros: Dr. Paul, thank you so much. And by the way, please give Rachel Mills, your wonderful PR person, a big raise, I think she has done very, very good work.

Ron Paul: Oh, I hope. I don’t know whether she’s heard this program or not.

Dimitri Vassilaros: Oh, we’re going to put this up on podcast, so believe me, she will hear it.

Ron Paul: Oh, okay.

Dimitri Vassilaros: Keep up the great work, sir, and it is a privilege to talk with you and God bless you.

Ron Paul: Good to talk with you. Bye, bye.

Dimitri Vassilaros: That was Dr. Ron Paul, ladies and gentlemen. We are very, very lucky to have this guy in our corner. We really are. It’s HR 1207, that’s HR 1207; Dr. Paul’s bill to audit the Federal Reserve. Talk to your Congressman, demand that he become a co-sponsor and they push this thing through. HR1207 – Audit The Federal Reserve, for the first time in its history.

  • Kattie Goodman

    Great Interview. We also need to get behind Mr. Cleve Tidwell running for U.S.Senate up in Colorado, another Big Time Constituitonal First Supporter that is fighting for the people. A great Conservative Voice getting lots of attention in America. We should all go to his site and help with a contribution. His site is Helping Ron Paul by putting in office one more Senator who will fight for the people.


  • Lee J. Morales

    Folks it’s time we put a team together to protect Dr. Paul as the 2012 elections near us. We must protect our freedom at all costs and protect the Honorable Congressman Ron Paul at all costs as well. Same for Rand Paul and Peter Schiff!

  • navin

    God blesh Amerca and God blesh Brother Ron Paul.Amen.FREEDOM!

  • Dr.louis morelli

    Ron Paul is my hero and the only one in government today that has the courage to speak what can save America. A. Lincoln said “Tell the people the truth and the country will be saved. God bless Ron Paul. L. Morelli

  • Jones

    Out of the many things going on, Ron Paul’s ideas and proposals make more sense, match better the need of the people, and match reality better.

    Shall we start thinking about setting a bank for the people and use gold, or something else as a standard?

    It looks like slavery never went away, but was rather transformed or camouflaged along with the high tech in the modern world. Like magic ah?


    • Perception

      I think that there has to be a lot more debate about the best system of currency stability and creation.A select private group of banks should not be able to own and create money on a whim as the Fed does now.

      Do you on the other hand let Govt do this? The creation of inflationary money acts like a tax.It depreciates the worth of people’s labor.Currency should be owned by everyone and thus when banks create inflationary money,they should be paying dividends to all people who have bank accounts.This will limit inflation since there would be a penality for banks creating more money than necessary to facilitate economic activity.

      Perhaps we let all financial institutions create money whether they be banks or credit unions with strict formulae of currency creation based on deposits.If they go beyond the bounds of their charter,then they have to pay money back to the people whose currency they are depreciating.Would a system like this negate the need for a currency based on gold or silver?

      I think it is worth exploring.

      • Nate Y

        Sure they could do that. The idea put forth by Ron Paul seems to be quite similar to that of F.A. Hayek and some other Austrian School economists. The idea is basically to repeal legal tender laws. This would end the government/central bank monopoly on money creation. Ron Paul sometimes says we should “legalize the Constitution” as shorthand for this. Basically, the argument is that there should be competition between monies/currencies. You have paper standard and a commodity standard working parallel to each other. Perhaps gold/silver would be the commodity money but we can’t know for sure. Over time, the money that best maintains (or appreciates) in value will be selected as the preferred money. This would basically be the reverse of Gresham’s law. The good money would drive out the bad.

        • Perception

          The crazy reality is Nate Y is that we have had this fantastic scientific revolution with astronomical advances in technology,yet our monetary system has remained in the dark ages.

          We need to do some monetary experiments to see which is the best for all society.I’m not convinced that precious metals is the answer.I think that a fair set of rules could actually solve the problem of creating ample currency to match growth reality and expectations.I like Ron Paul’s solution of having an alternate currency.Perhaps we could have many in competition and the good will drive out the bad.

          I have an open mind on this topic.

  • People need to learn the lessons from the ENRON scandal:

    “The ENRON experiment has shown the ruling elite how gullible the public and private sectors are. The information from ENRON is being used to guide the ruling elite in how far they can push foreign and domestic investors with blatant share-price manipulations before the shell will crack. ENRON was a micro-level matter, concerning a single organization. The ruling elite have pressed the result to the macro level and are openly manipulating entire share markets, trying to keep up the image of a healthy economy when they know it is facing certain collapse. As a consequence of the ENRON experiment, many unscrupulous corporate managers also know how much manipulation is possible before they are suspected. This has helped many otherwise weak corporations to keep their share prices artificially elevated to uphold the illusive image of prosperity. The banking sector has used bonding theatrics to uphold their images also. This is just another chapter of the ENRON game being played out.”

  • tony

    audit the Fed! call your congress representative and tell them to support the bill!

  • this is a nation under god, god is gold and gold is light.
    we have a goddes of liberty in new york that will bring to all of us enlightment and prosperity to all.

    • Lindsey

      Lalo: Do you have a golden calf?

      • no,and you.
        God is no calf. God is god.
        our creator.

        • Lindsey

          Lalo: Sorry, I guess you didn’t like my sense of humor. Yes, I agree with you. God is our creator. I just hope that as a nation we haven’t lost our faith in God and turned to making “an idol cast into the shape of a calf”. I see you haven’t lost faith and that is a good thing!

  • Perception

    The Fed really under estimated the power of the internet.So many people around the planet are aware of it’s foibles now.

    China,Russia and Brazil are in dialogue about a new trading currency.I don’t think they’ll fall for the Euro.{ Perhaps in the short term] Why would you go for the Euro as a long term currency with the same old ego centric fools determining it’s destiny.

    No one will tolerate European Reserve Banks counterfeiting currency as they have done so for the last 300 yrs.They will want a stable currency,since business and families can plan on firm foundations without the money manipulators.

    There could be a new era of enlightment and prosperity for all, never experienced in our history,if we all followed the aspirations heralded by Ron Paul.

    • I really hope so. It’s like I have my guard up with everything that I hear the powers are doing in “our favor” these days.

      Still, I think that nature corrects itself eventually and I can always find comfort in that.