Ron Paul: Audit the Gold!

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by Ron Paul: Demagoguing
the Mosque

U.S. Rep. Ron
Paul , R-Tex., plans to introduce a new bill next year that will
allow for an audit of US gold reserves, he told Kitco News in an
exclusive interview.

Paul dropped
the news in the interview, indicating that the bill still does not
have an official name yet but will be unveiled at the start of the
new U.S. Congress.

“If there
was no question about the gold being there, you think they would
be anxious to prove gold is there,” he said of the Federal

This is not
the first time the congressman has made his pitch. “In the
early 1980s when I was on the gold commission, I asked them to recommend
to the Congress that they audit the gold reserves — we had
17 members of the commission and 15 voted not to the audit,”
said Paul. “I think there was only one decent audit done 50
years ago,” he said.

Though Paul
did not say whether there is any truth to claims that there is no
gold in Fort Knox or the New York Federal Reserve, he said, “I
think it is a possibility.”

“If we
ever get around to deciding we should use gold in relationship to
our currency we ought to know how much is there,” said Paul.
“Our Federal Reserve admits to nothing and they should prove
all the gold is there. There is a reason to be suspicious and even
if you are not suspicious why wouldn’t you have an audit?”
he said.

The gold audit
follows his crusade last year looking to audit the Federal Reserve,
which he says is the chief culprit behind the economic crisis.

“I don’t
think the Federal Reserve should exist — it would be best for
congress to exert their responsibilities and that is find out what
they are doing”’ said Paul. "It is an ominous amount of
power they have to create money out of thin air and being the reserve
currency of the world and be able to finance runaway spending whether
it is for welfare or warfare; it seems so strange that we have been
so complacent not to even look at the books. If we knew exactly
what they were doing, who they were taking care of, there would
be a growing momentum to reassess the whole system,” he told
Kitco News.

Before the
creation of the Federal Reserve however, the US saw 16 recessions
from 1850 to 1910; they averaged 22 months long. During this time,
the U.S. was in recession 60 out of 91 months. Many would argue
that the severity of these recessions led to the creation of the
Federal Reserve System.

“I think
they would be exaggerating what happened before 1913,” Paul
responds. “We had some panics …they were usually short
and there were no long depressions,” he said. “The Fed
creates the bubbles and they are much worse since 1913, if you think
of the size of the government and the valuation of the dollar, we
are down to about a 2 cent dollar from the 1913 dollar.”

Paul said everyone
accuses him of wanting the gold standard but he said he doesn’t
accept that. “I accept the idea of a gold coin standard and
I think we can do much better than what we had," he said. "There
was a lot that they did pre-Fed that was not exactly right but we
never had a disastrous loss of purchasing power long-term, we didn’t
have a great depression, we didn’t have the 1970s with stagflation
and we wouldn’t have what we have right now.”

the rest of the article

See the Ron Paul File

31, 2010

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

© 2010

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