Will Ron Paul Be Able To End The Fed?
Is Ron Paul
finally in position to really do something about the Federal Reserve?
U.S. Representative Spencer Bachus, the chairman-elect of the House
Financial Services Committee, has announced that Ron Paul will chair
the domestic monetary policy subcommittee starting next month. This
puts Ron Paul in tremendous position to be able to put significant
pressure on the Federal Reserve. In previous years Ron Paul has
introduced legislation to end the Federal Reserve but it never got
any traction. During this most recent session of Congress an effort
by Ron Paul to have a full audit of the Federal Reserve conducted
gathered quite a bit of momentum for a while, but in the end it
did not get passed. However, a very limited examination of Fed activities
during the recent financial crisis was passed, and that examination
has revealed some really shocking things. With so many Tea Party
members entering Congress this upcoming session there may be more
momentum than ever to hold the Federal Reserve more accountable.
Ron Paul is already talking about how he is planning for a full
slate of hearings on U.S. monetary policy and he has indicated that
he plans to restart a push to have the Fed audited.
And why shouldn't
the Federal Reserve be fully audited? The Federal Reserve has more
power over the U.S. economy than any other institution and yet it
has not been subjected to a comprehensive audit since it was created
back in 1913.
So what would
an audit accomplish?
Well, it would
hopefully expose what is going on inside the Federal
A very, very
limited examination of Fed transactions that occurred during the
recent financial crisis forced the Federal Reserve to reveal the
details of 21,000 transactions stretching from December 2007 to
July 2010 that totaled more than 3 trillion dollars. It turns out
that the Federal Reserve was just handing out gigantic
piles of nearly interest-free cash to their friends at the largest
banks, financial institutions and corporations all over the globe.
have many members of Congress wondering what else has been going
on inside the Federal Reserve.
U.S. Senator Bernie Sanders was
absolutely outraged by these "backdoor bailouts" by the Federal
$700 billion Wall Street bailout turned out to be pocket change
compared to trillions and trillions of dollars in near zero interest
loans and other financial arrangements that the Federal Reserve
doled out to every major financial institution."
of Congress than at any other time in recent memory are openly wondering
if it is now time "to pull back the curtain" at the Federal Reserve.
For those who would like to see the power of the Federal Reserve
greatly diminished, there should be one primary goal right now.
The truth is
that the more the American people learn about the Federal Reserve
and about what it has been doing the more they disapprove.
his farewell speech on the floor of the U.S. Senate this week,
Senator Jim Bunning noted that as the American people become increasingly
aware of what the Federal Reserve is doing the less they like it....
awareness of what the Fed is doing is increasing while public
opinion of the Fed is falling."
the views of Ron Paul and other anti-Federal Reserve members of
the Tea Party movement are strongly opposed by many other members
of the Republican Party.
a recent Bloomberg Television interview, Barney Frank noted
this division within the ranks of the Republicans....
not believe that Ron Paulís views on the Fed represent the views
of most Republicans."
is evidence that the tide is turning with the American public.
recent Bloomberg National Poll, the number of Americans that
would like to see the Federal Reserve held more accountable or even
completely abolished is increasing....
if the central bank should be more accountable to Congress, left
independent or abolished entirely, 39 percent said it should be
held more accountable and 16 percent that it should be abolished.
Only 37 percent favor the status quo.
Those are very
exciting numbers. A majority of Americans now want the power of
the Federal Reserve to be reduced or they want it shut down entirely.
If Ron Paul
is able to get a comprehensive audit of the Federal Reserve passed,
the revelations that would come out of that would certainly turn
public opinion against the Fed even more.
So what is
so bad about the Federal Reserve?
of it as a perpetual debt machine.
Did you know
that the U.S. national debt is 5,000 times larger than it was a
hundred years ago?
That's right back in 1910, prior to the passage of the Federal Reserve Act,
the national debt was only about $2.6
time, our debt has been endlessly skyrocketing.
Under the Federal
Reserve System, the U.S. government cannot just go out and print
money. It is actually the Federal Reserve that issues our currency.
The way our
system works, whenever the U.S. government arranges for the Federal
Reserve to issue more currency, more government debt is created
at the same time. In fact, as
I have written about previously, all of our money is now based
No debt, no
What we desperately
need is for the current monetary system to be scrapped. The federal
government should take back the power to issue currency and should
implement a new system based on money that is debt-free.
The truth is
that it is insane that any sovereign government should have to go
into debt just to produce more of its own currency.
we have under the Federal Reserve System is a money supply that
will forever be expanding, a currency that will forever be deteriorating
in value and a national debt that will continue to skyrocket until
the entire system collapses.
Since the Federal
Reserve was created in 1913, the U.S. dollar has lost over
95 percent of its purchasing power. This continual debasement
of our currency is called "inflation" and it is a hidden tax on
every man, woman and child in the United States.
It is absolutely
guaranteed that every single dollar that you own will go down in
value over the long-term.
But the American
people have come to accept that a constantly expanding national
debt and a currency that is constantly losing value is the most
"rational" economic system that humanity has ever come up with.
So who benefits
from all this?
Well, for fiscal
year 2010 the U.S. government paid out over
413 billion dollars in interest on the national debt. In future
years that number is projected to rapidly skyrocket even more.
like to be getting a nice chunk of that 413 billion dollars?
It turns out
that loaning money to the U.S. government is very, very profitable.
That 413 billion
dollars is money that was transferred from the American people to
the U.S. government, and then transferred from the U.S. government
to big financial institutions, foreign countries, and very wealthy
So what did
we get in return for our 413 billion dollars?
is not just going on in the United States. This is going on literally
in almost every nation on earth.
All over the
world sovereign governments are drowning in debt and so they have
to drain their citizens dry so that they can meet their obligations.
In the book
of Proverbs, it tells us that "the rich ruleth over the poor, and
the borrower is servant to the lender." Americans like to think
that they live in "the land of the free," but the truth is
that we have become enslaved to debt.
But even worse,
we have consigned our children and our grandchildren to a lifetime
of debt. They will have to work all of their lives to pay trillions
of dollars in interest on all of the debt that we have accumulated
in this generation.
How would you
like to be born into a world where the previous generation had racked
up a $13 trillion debt that now you were expected to pay off?
There is a
reason why people like Ron Paul are so obsessed with the Federal
Reserve. It is not because they don't have anything better to do.
It is because the future of our country literally hangs in the balance.
American history, presidents, top members of Congress and leading
business people have warned us about the dangers of having a central
bank. In fact, even though our young people are no longer taught
this, the debate over central banking was one of the most important
themes in early American history.
But we didn't
listen to the warnings.
We were convinced
that we knew better.
Well, now we
have an economic system that is dying and a $13 trillion debt that
we are passing along to our children and to our grandchildren.
were not as smart as we thought we were.
with permission from the Economic
© 2010 Economic