by Ron Paul: Recipe
for a Successful 2011
Last week the
112th Congress was sworn in. I am pleased that I will be chairing
the Monetary Policy Subcommittee of the Financial Services Committee,
which has oversight of the Federal Reserve. Obviously, this position
will facilitate my efforts to ensure the Fed provides the American
people with more information about what they have been doing with
and to our money. Not surprisingly, since my chairmanship was announced,
apologists for the Fed have been recycling the old canard about
how increased transparency threatens the Fed’s so-called political
they are referring to the Fed’s ability to greatly impact the
economy with virtually no meaningful oversight. We only recently
learned that the bankers at the Fed were able to use the latest
financial crisis to bail out Wall Street cronies and foreign central
banks with billions of dollars that were created and wasted, instead
of appropriated and voted on by representatives of the people. The
Fed and its supporters in Congress vehemently fought even this small
bit of transparency and without this one-time provision in the financial
reform act forcing disclosure, we would still not have this information.
Indeed, we are in the dark on so much of what the Fed has done.
This is extremely dangerous for our country, yet this power and
secrecy is defended as some kind of public good, which is patently
is based on a system of checks and balances. With no check on the
Fed, it is no surprise it has thrown the economy wildly off balance.
The solution is not to re-inflate the bubbles the Fed created, or
to continue to devalue the currency, or to throw billions at failing
banks and corporations. The solution is to return sanity and freedom
to monetary policy. Forcing the entire country to use a medium of
exchange that is subject to the whims of elite bankers and their
cronies on Wall Street is not sanity. Hoping that an unchecked,
all-powerful, behemoth banking cartel will solve any economic problem
is not sanity.
the Fed was originally created to solve now look miniscule compared
to the problems it has created. If “political independence”
erodes the purchasing power of the currency by 98%, destabilizes
the economy with radical booms and busts, all while increasing unemployment
and tipping us ever closer to hyperinflation, perhaps it is time
to try a little transparency and accountability instead. Better
still – we should try giving the people true economic freedom.
Make no mistake:
the Fed is not truly independent of political pressure. Its chair
is appointed by the president, and it is a creature of Congress.
Congress has a duty, albeit a neglected one, to exercise oversight
of the Fed. However, even if it was politically independent, it
is not independent of the influences of Wall Street. One only has
to look at the revolving door between the Fed and the big banks
to know that. Disclosures on TARP funds confirm this.
It is nothing
short of cruel and criminal for Congress to stand idly by while
the life savings of Americans are inflated away to nothing. It is
high time Congress insist on getting complete information on what
the Fed has been doing, and for whom. My hope is that exposing the
truth will demonstrate the insanity of the status quo and more people
will call for sensible changes, such as legalizing competing currencies.
Paul is a Republican member of Congress from Texas.