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Editor’s Comment: This should be interesting. Somehow Ron Paul, who wants the Federal reserve out of our lives, is now the chairman of the committee that oversees its operations. It was Repr Paul who forced disclosure of where the FED money got spent (or part of it) and it is Paul who will take the leadership in challenging Bernanke and the Federal Reserve system. The current thinking is that the FED is too important or to big to be killed. People cite back to 1929, but the Fed DID exist back then, albeit with a dead Chairman.

The latest media releases from the FED show yet another example of straying from objective policy-making toward political strategy. Paul doesn’t like it and although I disagree with some of Paul’s opinions, I don’t like it either. The entire premise of the Federal Reserve was that it would be a-political. Gradually over the years, as with most institutions it has become further and further entrenched in the politics of the moment and further detached from policies with a long-term view. Paul’s view that the chips should fall wherever they are meant to fall is possibly simply realistic and possibly extremist. I don’t know. Nobody knows. The dismantling of a proprietary currency systems of $600 trillion when all the REAL money in the world totals only $50 trillion, leads one to conclude that we left the gold standard, and now we left the money standard. I don’t know where this will end up, but I do know that Paul’s criticisms are well-founded.

The Fed? Ron Paul’s Not a Fan.


Ben S. Bernanke, the chairman of the Federal Reserve, has been attacked for failing to foresee the financial crisis, for bailing out Wall Street, and, most recently, for injecting an additional $600 billion into the banking system to give the slow recovery a boost.

But Mr. Bernanke will face even more scrutiny in the months to come. On Thursday, House Republican leaders announced that Representative Ron Paul of Texas, the outspoken Republican libertarian who ran for president in 2008, will become the chairman of the subcommittee that oversees the Fed. His position on the central bank is captured in the title of his 2009 book, “End the Fed” (Grand Central Publishing).

Here’s some of what he wrote:

The Beginning of the End

“The day the Fed came into being in 1913 may have been the beginning of the end, but the powers it obtained and the mischief it caused took a long time to become a serious issue and a concern for average Americans.”

The Gold Standard

“Whenever I talk of a gold standard, there are always people ready to accuse me of having some obsession or fixation. Fetish is a word thrown around. In fact, I’m only observing reality: the idea of sound money in most of human history has been bound up with gold money.”

A Full-Time Counterfeiting Operation

On Mr. Bernanke: “There is something fishy about the head of the world’s most powerful government bureaucracy, one that is involved in a full-time counterfeiting operation to sustain monopolistic financial cartels, and the world’s most powerful central planner, who sets the price of money worldwide, proclaiming the glories of capitalism.”

New Money Out of Thin Air

“Only the Federal Reserve can inflate the currency, creating new money and credit out of thin air, in secrecy, without oversight or supervision. Inflation facilitates deficits, needless wars and excessive welfare spending.”

Fed Chairmen He Has Known

“Being in Congress in the late 1970s and early 1908s and serving on the House Banking Committee, I met and got to question several Federal Reserve chairmen: Arthur Burns, G. William Miller and Paul Volcker. Of the three, I had the most interaction with Volcker. He was more personable and smarter than the others, including the more recent board chairmen Alan Greenspan and Ben Bernanke.”

Low Interest Rates

“Artificially low interest rates are achieved by inflating the money supply, and they penalize the thrifty and cheat those who save. They promote consumption and borrowing over savings and investing. Manipulating interest rates is an immoral act. It’s economically destructive.”

The Bailouts

“Today, there is no principled opposition to the corporate bailouts and the Fed’s trillions of dollars of new credit and the takeover of insurance, mortgages, medical care, banks and the auto industry. The arguments have only been over amounts, financial vehicles, and which political group gets to wield the economic power. If there is no moral argument against the economic takeover of America, there will be no resistance to the dictator who rules over our lives with an iron fist.”

The Obama Legacy

“For the same reason a disease cannot be cured by more of the germ that caused it, the inflation and debt accumulation of the Obama years will not inflate our way out of it. This depression will likely last and last.”

11 Responses

  1. All that needs be done is– an American President. unbeholden to the US media and corporations–or beholden but welshs- to use the power given by JFK in June, 1963 by Executive Order 11110 which directs the US Treasurer to print Silver Certificates in denominations of $5-10-20 -? BACKED BY A CLAIM AGAINST THE BULLION IN FORT KNOX (IF IT STILL HAS ANY)- the executive order has never been repealed- The fed will become obselete incrementally as the economy chases the bad money out- the President better have food tasters and loyal body guards and avoid open air parades- or another “loner” sharpshooter with magical bullets may blow the front of his head off with a rear shot and the back of his head off with a frontal shot- and then be apprended and shot by a lover of the President -before he can explain how he got to be in front and rear of the victim simultaneously–or prove that he was to be “a” shooter , but was waved off , only to find his rifle where he didn’t hid it– then this archvillian may run out of his building and ONTO A BUS TRAPPED IN TRAFFIC- But that could never happen

  2. If you want to measure cloth, you need a ruler.
    If you want to measure value, you need a standard
    unit of value.
    Imagine trying to figure out how much cloth you
    have using a flexible rubbery ruler which can be
    stretched or contracted at will.
    The silver dollar was the original measure of
    value in this country. Some times it would buy more
    (deflation) some times it would buy less (inflation),
    but at least we knew the silver dollar was an honest
    measure of value.
    You don’t need a million one foot rulers to measure a million feet of cloth and you don’t need
    a million silver dollars to measure a million dollars
    of value. That is because free trade is essentially
    barter where we measure the value of goods and
    services and trade them for other goods and services of approximately the same value. You only
    need enough silver dollar (rulers) to allow the economy to efficiently measure values and facilitate
    trade (ie barter).
    What the Fed has done since 1968 is corrupt
    the unit of value used to measure value. We need
    a return to a measuring devise everyone can trust.
    FDR in my opinion was correct in getting rid of
    bimetalism and using the silver dollar for domestic
    trade and the gold dollar for international trade with
    the ability to modify the ratio from time to time.
    I don’t think he ever imagined that we would go to
    a purely fiat money system where noone knows for
    sure what anything is worth because the ruler can
    be stretched or contracted at will.
    If we don’t solve this problem quickly, the World
    could abandon the dollar as the unit of account and
    then the USA would be in real trouble. I hope our
    leaders wake up and deal with this problem soon.

  3. this should be fun watching…Ron Paul (AUDIT THE FED) vs. Max Baucus ( Let the regulators regulate…WE’RE HERE TO SERVE THE BANKS).

  4. […] This post was mentioned on Twitter by fastpup, USA Advocate. USA Advocate said: RON PAUL BECOMES CHAIRMAN OF COMMITTEE TO OVERSEE (OR DISABLE) THE FEDERAL RESERVE: […]

  5. This could be the beginning of the type of CHANGE we need.
    The move to make him chairman is at least giving me some HOPE.

  6. These banks fear Congressman Ron Paul for very good reason; he has been on them for 25 consistent years; and now he wants US to have an accounting of all their actions, so we can indict those responsible for this purposeful mess, and save our Titanic and our homes.

    RON PAUL 2012

  7. Neil:

    Interestingly, you and Ron Paul have something in common.

    You both have warning us for years about things that we could not see through our fake ‘media’ and our ‘schools’, that greatly hurt our lives, way before it was ‘vogue’.

    That is: improper banking, and the ugly oligarchies it props up, are against the average People’s interest.

    The private US Federal Reserve, mixed in secrecy with the IMF/Deutsche Bank/City of London/Rome, are the source of all this counterfeiting.

    They bought the entire built-for world with nothing – but by printing huge worthless ‘notes’ to ‘buy’ it with.

    Fake ‘ownership’ of the world is how dictatorships come to absolute power.

    Hitler and Stalin exampled this type absolute ‘ownership’ on a smaller scale.

    For some religious, Revelations describes the final Dictatorship interestingly as abetted by: “Merchants of the Earth”.

    I would note these Merchants did not work for anything, just came up with an electronic printing press to Ponzi 12 times the entire world’s money supply, then ‘buy’, and charge inflation-adjusting rent incomes on the world forever.

    “Work will make you free”…. they all say.

    If you just ‘believe’ hard enough.

    … and I don’t!

    Thanks in part to both of you.

  8. “Give me control of a nation’s system of currency, and I care not who makes its laws.”

    – Mayer Amschel Rothschild

    And now you know why things have to change if this country is to survive. The status quo has been aberrated and the Constitution circumvented; this country is already in moral decline because of multi-culturalism. Most of us think this was planned. By golly, they may be right. Paul is not going to do anything that didn’t deserve just desserts anyway.

  9. Ron Paul is one or maybe the only honest politician in Washington.

  10. I don’t necessarily agree with eveything Ron Paul is into, but with regard to the Federal Reserve I do. The real question here is how do we dismantle the Federal Reserve without causing a major meltdown of the economy. It seems to me that it needs to be done in stages. The federal reserve should never have gotten any where near this powerful–it is a mess.

  11. Shut it down, Ron!

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