End the Fed

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Before
the US House of Representatives, February 4, 2009, introducing the
The Federal Reserve Board Abolition Act, H.R. 833.

Madame Speaker,
I rise to introduce legislation to restore financial stability to
America’s economy by abolishing the Federal Reserve. Since the creation
of the Federal Reserve, middle and working-class Americans have
been victimized by a boom-and-bust monetary policy. In addition,
most Americans have suffered a steadily eroding purchasing power
because of the Federal Reserve’s inflationary policies. This represents
a real, if hidden, tax imposed on the American people.

From the Great
Depression, to the stagflation of the seventies, to the current
economic crisis caused by the housing bubble, every economic downturn
suffered by this country over the past century can be traced to
Federal Reserve policy. The Fed has followed a consistent policy
of flooding the economy with easy money, leading to a misallocation
of resources and an artificial “boom” followed by a recession or
depression when the Fed-created bubble bursts.

With a stable
currency, American exporters will no longer be held hostage to an
erratic monetary policy. Stabilizing the currency will also give
Americans new incentives to save as they will no longer have to
fear inflation eroding their savings. Those members concerned about
increasing America’s exports or the low rate of savings should be
enthusiastic supporters of this legislation.

Though the
Federal Reserve policy harms the average American, it benefits those
in a position to take advantage of the cycles in monetary policy.
The main beneficiaries are those who receive access to artificially
inflated money and/or credit before the inflationary effects of
the policy impact the entire economy. Federal Reserve policies also
benefit big spending politicians who use the inflated currency created
by the Fed to hide the true costs of the welfare-warfare state.
It is time for Congress to put the interests of the American people
ahead of special interests and their own appetite for big government.

Abolishing
the Federal Reserve will allow Congress to reassert its constitutional
authority over monetary policy. The United States Constitution grants
to Congress the authority to coin money and regulate the value of
the currency. The Constitution does not give Congress the authority
to delegate control over monetary policy to a central bank. Furthermore,
the Constitution certainly does not empower the federal government
to erode the American standard of living via an inflationary monetary
policy.

In fact, Congress’
constitutional mandate regarding monetary policy should only permit
currency backed by stable commodities such as silver and gold to
be used as legal tender. Therefore, abolishing the Federal Reserve
and returning to a constitutional system will enable America to
return to the type of monetary system envisioned by our nation’s
founders: one where the value of money is consistent because it
is tied to a commodity such as gold. Such a monetary system is the
basis of a true free-market economy.

In conclusion,
Mr. Speaker, I urge my colleagues to stand up for working Americans
by putting an end to the manipulation of the money supply which
erodes Americans’ standard of living, enlarges big government, and
enriches well-connected elites, by cosponsoring my legislation to
abolish the Federal Reserve.

See
the Ron Paul File

February
5, 2009

Dr. Ron
Paul is a Republican member of Congress from Texas.

Ron
Paul Archives

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