The Fed Must Be Stopped

End the Fed 


End the Fed

Author: Congressman Ron Paul

Written by: Ron Paul 

Our country currently finds itself in the midst of the worst economic crisis since the 1930s and, as during all economic crises, people search for the answer as to why this has happened.  Not only have large financial firms been affected, but also mainstays of American industry such as GM and Chrysler, all the way down to the Mom & Pop stores on Main Street.  The easy way out is to blame the traditional scapegoats: foreign governments, fraudulent businessmen, and greedy speculators.  But the real villain is far more sinister; the organization entrusted with maintaining a stable dollar and touted as the guarantor of economic stability – the Federal Reserve.   

In the United States, monetary policy has been the domain of the Federal Reserve since its inception in 1913.  Since that time we have had a number of cyclical recessions, each one following a boom caused by the Federal Reserve's loose monetary policy.  The problem with the Federal Reserve is that it interferes with market pricing functions.  Interest rates are a price just like any other and arise because of the fact that people prefer to consume in the present rather than in the future.  The extent to which people defer present consumption is reflected in interest rates, which in a free market are determined by the spontaneous interactions and decisions of millions of people. 

Fed intervention to set prices throws markets and interest rates out of equilibrium.  When the Federal Reserve pushes interest rates below what the market rate would be, everyone wants to borrow money for long-term projects.  Shortages of loanable funds would occur, except that the Federal Reserve has the ability to create bank balances out of thin air.  The Fed can create a bank ledger on paper, or on a computer, establish a balance of millions or billions of dollars, and then spend these dollars out into the economy. 

Loans become cheap, and the result of these lower interest rates is an economic boom which eventually manifests itself as a bubble.  Beginning in 2001, the Federal Reserve pushed interest rates to as low as one percent, which after adjusting for inflation meant that the real interest rate was negative, so businesses were actually making money by taking out loans.  This was the fuel for the housing bubble and the reason there are 19 million empty houses today. 

Because of this awesome power to create money out of thin air, the Fed has jumped in to stabilize ailing financial firms by pledging over $7 trillion through various guarantee programs and credit facilities.  This is equivalent to over half of the entire nation's GDP.  Over $1 trillion of this is already in play, propping up banks and other institutions that should be allowed to fail.  All of this has taken place with no oversight by Congress.  The Fed was created by Congress, and it is unconscionable that we have allowed it to act in such a way without our oversight.  Currently the Federal Reserve's credit facilities, open market operations, and agreements with foreign governments and central banks are all exempt from any sort of audit or oversight.  Earlier this year I introduced the Federal Reserve Transparency Act, HR 1207, that would remove all restrictions on Federal Reserve audits and call for a f ull audit of the Federal Reserve System to be completed by the end of 2010.  At this writing, 245 of my fellow Congressmen have cosponsored this bill and we hope to have hearings in the near future. In the Senate, Republicans Jim DeMint, Mike Crapo and David Vitter have cosponsored S. 604, companion legislation introduced by Bernie Sanders. I am very encouraged by the tremendous growing momentum on Capitol Hill. 

Our Founding Fathers never intended for a single entity such as the Federal Reserve to have this much power.  In fact, there is no authority in the Constitution for the federal government to create a central bank, to enact legal tender laws, or to print paper money.  The Tenth Amendment is quite clear that “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”  The states themselves are prohibited from emitting bills of credit, i.e. paper money, arising from the Founders' negative experiences with paper money during the Revolutionary War.  Cheap, un-backed, easily counterfeited paper money nearly lost the Revolution, until the government returned to minting gold and silver coins.  Unfortunately, like too many other lessons learned by the Founders, the painful experiences of paper money have been forgotten by those living in the pres ent.  We even ignore the experiences of Germans in the 1920s, Argentines in the 1980s, and Zimbabweans over the past decade.  The Fed doubled the monetary base last fall in a matter of months, and God help us if any of this high-powered money begins to make its way through the economy.   

An audit of the Fed is only the first step towards returning to where our Founders intended this country to be.  The Founders knew that paper money could ruin a country, and drafted the Constitution in such a way that they thought would ensure sound, commodity-backed currency.  Unfortunately, the Constitution was dispensed with long ago, and we find ourselves now suffering under an unconstitutional regime of un-backed paper money.  Until we abolish the Federal Reserve and return to a stable currency that is not able to be manipulated to create boom and bust cycles, we will continue down the path of economic ruin. 

Congressman Ron Paul serves the fourteenth district of Texas and is honorary chairman of Campaign for Liberty. His new book, End the Fed (Grand Central Publishing) will release on September 16th and is available for pre-order on Amazon.

Many members of the far-left already are calling for a ‘Night of Rage’ after the Supreme Court’s 6-3 decision to overturn Roe v. Wade, and the White House has been discussing plans to defy the ruling too. In fact, one idea floated by Biden Administration officials, according to the New York Times, includes providing abortions on military bases. So, will America experience another summer of riots? Are YOUR taxpayer dollars at risk? And what does this mean for deep-blue states? Josh Hammer, legal expert and opinion editor for Newsweek, joins Glenn to discuss what may come next...

Transcript

Below is a rush transcript that may contain errors

GLENN: Josh Hammer, he's the opinion editor of Newsweek. He's the host of the Josh Hammer show. He is really quite brilliant. One of the leading minds in the conservative movement, I think. Josh Hammer joins us now.

To tell us, what did you find in this decision?

JOSH: Glenn, great to be back with you, on such a momentous, and really such an emotional day, honestly. So, you know, look, as you said, this dropped recently. Funny enough, I was in the middle of getting a guest lecture from an organization on the advisory board as to when it drops. So I barely had any time to kind of skim through, let alone guess the concerning dissenting opinions. But it looks like this looks very similar, to the draft opinion that was leaked, by the Politico story, a month and a half ago, in early May. And I think those of us who were praying that the five justices from this leaked draft opinion, would have the fortitude to stiffen their spines against this unprecedented assault. Now knows that our prayers were answered, Glenn. That's really my takeaway right now.

This looks a lot like the leaked opinion. Justice Thomas and Justice Kavanaugh have some reconcurring opinions.

But unbelievable. And really just holding aside the constitutional law stuff for a second hear. Just speaking as pro-lifers, on a day like today, I think we really just need to pause. And I tweeted this out earlier. We need to just be grateful for our half century of pro-life activist forbearers. You know, this -- Glenn, this issue could have gone away after 1973. That was a long time ago. 1973. I mean, this issue could have just gone away. We owe a tremendous debt of gratitude to the pro-life moral activist. Political activist. And, of course, yes. Legal activist. Who fought day in and day out, that makes sure this great injustice stayed front and center of our national, political conscience. And in many days, the culmination of a half century of fighting for truth and justice. But in many ways, it's also a new beginning for the pro-life fight as well, interestingly.

STU: How do you mean a new beginning for the fight? I just it's going to turn, I think we're going to see abortion turn even darker in those states that allow it. Is that -- is that what you're meaning by this?

JOSH: Well, look, for a half century now, Roe vs. Wade, and its project any, specifically, the Planned Parenthood versus Casey case of 1992.

They took away from the states obviously. They arrogated authority away from the states, the ability to attempt to nationally codify one view of the morality of abortion.

It happened to be a profoundly immoral view. So these -- the fight now shifts to the states. And the pro-life activists. And all the 50 states. Especially, obviously in red states. Purple states. I mean, admittedly some blue states like New York and California, probably won't be able to touch them there.

But we have to make sure that our side is well positioned in the state Capitols for every red, purplish, probably even light blue state, to make sure we fight for successful, cogent, and morally consistent pro-life legislation. The state of Oklahoma, actually, just north of Texas. Right where you are now, Glenn. They have been leading on this actually. Governor Kevin Stitt signed into law, a fantastic pro-life bill there in Oklahoma. A few weeks ago. Maybe a month ago or so at this point, that basically just bans abortion straightforward from conception. And there are some -- you know, obviously, likable the mother. So forth. But we really need to start thinking about trying to craft legislation now, at the state level. But to your point, I do fear that the blue states will only double down in their radicalism. Unfortunately within that will only lead to an ever greater divide, in our country, that we have today. But obviously, at the end of the day. We're going to save at the end of the day, millions and millions of unborn children. We are going to save human beings who can grow up to cure cancer, who can win Nobel prices.

I mean, this is just a tremendous win for the human species. I don't know how to say it other than that.

GLENN: I will tell you, I saw the stat, that I think it was last year or the year before. 20 percent of all pregnancies ended in abortion. 20 percent.

JOSH: Wow.

GLENN: That is -- that is a shocking number. And we do have our -- our work cut out for us. Because I -- I think that these states are going to double down. But I think, you know -- God doesn't waste anything. You know, there is no waste with God. Even the -- even the worst things that could possibly happen, turn out to be something good. You know what I mean? You're like, holy cow, how did that just happen.

And I think that evil is going to fully come unmasked. I'm telling you, Josh. I don't know how you feel about this. I think this could be the day of America's Kristallnacht. I can see these pro-life centers being burned to the ground today. They're calling for a night of rage around the country. I think evil is going to show itself. And that will scare the American people, hopefully.

JOSH: You know, I've been thinking about this a lot this week, actually. Because I've been bracing for a new kind of George Floyd summer of love, happening this summer. Coming to a city or suburb near you. Unfortunately, myself. Look, I live in Florida. I know, Glenn, you live in Texas. It is in moments like this, where I do think that where you live matters. And who your mayor is. Who your governor is, matters.

Because law and order and rioting and anarchy is not really a federal issue. It is to a limited extent. June 2020, Tom Cotton wrote this op-ed that was pretty controversial at the time.

I happen to agree with it. Where he said, quote, unquote, send in the troops. And there is some federal legislation from the reconstruction era that would justify that.

But most kind of quelling and quashing of anarchy does happen. Constitutionally speaking, at the state and local level. So at a moment like this, where I fear that you're probably not wrong. I take some solace. That Governor DeSantis is my governor. I think Texans should take some solace, that they are represented by -- by a Republican governor. The legislature there as well. So I -- I fear that you are right. I pray obviously, that no one -- it's hard.

I fear that it's something -- that something bad is happening. At the end of the day, of course. It does not mean that justices cannot do what they are supposed to do. So thank God they did that.

GLENN: So, Josh, have you looked into what the White House has been saying? The White House yesterday. In fact, do we have a clip of -- of this?

What the White House said yesterday, about the guns. And then they were turned to the -- the Scott us ruling, for Roe vs. Wade. Do we have that, please?

JOSH: Will the president accept this decision, even if he disagrees with it?

VOICE: I think it's going to come from the Supreme Court. So it's a decision we certainly are going to respond to. I'll leave it at that. Just like any other Supreme Court decision. Just like the one they did today on guns.

GLENN: So the White House won't say that they're going to accept it.

Which I don't think they will. They're talking now about taking doctors and moving them into places like Oklahoma or Texas, where abortions will be outlawed. And putting doctors on our military bases to perform abortions.

I mean, where does this go, when you have a government, that is in defiance of -- of one branch of the government?

JOSH: So there's a lot to unpack here. So we should start from first principles. The idea of judicial supremacy, and this is a peculiar thing, to say on a day like today, where such a pro-life victory has happened in Italy. But if we're going to be consistent here, the idea of judicial supremacy. The idea that the justices, have the sole and exclusive ability to interpret the Constitution for themselves. And no other Constitutional actor, in article one or article two, let alone the state. Has the ability to tentatively interpret it. That is erroneous. In fact, actually it was really Abraham Lincoln actually, who in the Dred Scott case, famously opposed judicial supremacy and flouted the Dred Scott ruling, at least as it pertains to everybody other than Dred Scott himself. I have actually argued, a former legal scholarship, in a law review article actually, that the Laconian view of how each branch of government should interpret the Constitution for itself, is correct.

Having said that. Having said that, there is a thing called prudence. And there is a thing called comedy. And in a moment like today, when it really does look like -- and I agree with you, that we are now bracing for riots through the streets. When the political rhetoric is at DEFCON one. When people are trying to assassinate Supreme Court justices. I think it would be -- at its bare minimum, a profoundly imprudent act. For the Biden administration, to try to undermine this ruling.

Now, what they might do, is they might try to kind of issue some kind of executive orders, or issue some regulations, that might try to kind of undermine it, at the edges here. But at the end of the day, the idea that this returns to the state. There's not really a whole lot they can do about that. Basically, at this point, throughout the country. Kentucky within West Virginia. Kansas. Whatever. If they want to go ahead and ban abortion, what can the Biden administration literally do about that? I mean, short of sending in the National Guard, to protect Planned Parenthood, if the state legislature of Kentucky goes ahead and bans it. There's not a whole lot they can do. And it's very difficult to envision a world, in which the Biden administration literally sends in troops to red states, to protect Planned Parenthood, if that state legislature goes ahead and bans it. So for practically speaking. This is a lot of tough talk and rhetoric. Obviously the campaign here in 2022. There's not really a whole lot that practically speaking, they can do to actually prevent red and purple states from enacting pro-life legislation.

GLENN: I'm glad to -- I'm glad to hear that. I know that they have been working on things. I mean, he has said, you know, there's executive orders, that I can employ. There are things that I can do. He's talked about a national public health emergency. Which I think is just -- is crazy. But I would hope, that the president would come out and say, we strongly disagree with this. And you're right. The court is not the end all. But the court did not end abortion. It just said, the people should decide. I think that's the best kind of court ruling, on any of it. The people should decide what this is. And send it back to the states. Josh, I thank you very much. Appreciate your time. Was there -- there was another ruling, that came out today. Was it important?

JOSH: Oh, no. In comparison to this. A total nothing burger. A 5-4 decision on Medicare reimbursement related. So nothing, honestly.

GLENN: Great. Thank you very much. Appreciate it, Josh. Josh Hammer, opinion editor for Newsweek. And the host of the Josh Hammer show.

GLENN: There are two things trending on twitter right now.

Number one is praise God.

Number two trend is Night of Rage.

Good verses evil.

Build up or tear down.

'Lord, we are SORRY it has taken us this long': BlazeTV hosts react to historic Roe v. Wade decision

Photo by Yasin Ozturk/Anadolu Agency via Getty Images

The Supreme Court of the United States officially overturned Roe V. Wade, and the debate over abortion rights has been given back to the states. On this historic day, BlazeTV hosts celebrate the Supreme Court's incredible decision and take a look at some of the insane reactions as the left comes completely undone.

Jason Whitlock: Today will forever stand as a pivotal moment in our nation’s history

The Supreme Court of the United States overturned Roe v. Wade. The decision and the reaction to it have already revealed a lot about our people and politics. Pro-life groups celebrate, pro-choice groups call for “a night of rage,” and Nancy Pelosi just seems completely confused by the United States Constitution.

Glenn Beck reacts LIVE to Roe v. Wade ruling: 'Lord, we are SORRY it has taken us this long'

I never thought that in my lifetime, I would see Roe v. Wade be overturned. But today, that day has come. The Supreme Court has voted 6 to 3 to return decisions about abortion to the states. But this fight isn't over. We are about to see good versus evil side by side. Many states will stand with the unborn. But others will become abortion mills. It's your turn to choose now, America!

Allie Beth Stuckey: 'Praise God, Roe v. Wade is overturned!'

I don't know about you, but I just had the most euphoric feelings. It almost seems too good to be true. I didn't think there was any way that this would actually happen, especially with all the backlash, intimidation, and violence toward the Supreme Court justices. And yet, here we are. Roe v. Wade has been overturned. This is an amazing day!

Dave Rubin: Big disagreement on what happens next now that Roe v. Wade is overturned

Dave Rubin, Libby Emmons, Jeffrey A. Tucker, and David Reaboi debate what will happen in the wake of the Supreme Court’s breaking decision on Roe v. Wade. Now that abortion rights have been pushed back to the states, will there be a summer of massive riots or not? Will the Roe v. Wade ruling make America’s political polarization significantly worse?

Stu Burguiere: Here are the reasons SCOTUS overturned Roe v. Wade

I never thought this would happen. I never thought I would see this day. I just never ever ever ever never ever believed that Roe v. Wade would actually be overturned. I really didn't. But let's take a look at the reasons this day has finally come ...

The Rick & Bubba Show: 'This is history! Unfortunately we're 60 million lives too late'

We were live on the air when news broke of the Supreme Court decision to overturn Roe v. Wade.

Today, the Supreme Court of the United States overturned its controversial 1973 Roe v. Wadeopinion, concluding that there is no constitutional right to an abortion.

"The Constitution does not confer a right to abortion; Roe and Casey are overruled; and the authority to regulate abortion is returned to the people and their elected representatives," the syllabus of the decision reads.

As expected, the leftist outrage erupted instantaneously, fueled largely by the misinformed idea that overturning Roe v. Wade means abortion will be banned nationwide. But, as stated in the above-mentioned Supreme Court syllabus, the authority has actually been returned to individual states and their duly elected lawmakers.

One such misinformed leftist, Parkland shooting survivor Cameron Kasky, was infuriated that those awful Supreme Court justices "just voted to kill women." So he took to Twitter to urge people to go to the homes of said Supreme Court justices to "let them know how you feel."

"Go to the home of every Supreme Court justice who just voted to kill women. Let them know how you feel," Kasky tweeted.

The backlash was immediate:

Kasky decided to delete his original tweet because he is apparently "sick of republicans talking to [him]." But, unfortunately for Kasky, the internet is indeed forever:

Speaking from the White House, President Joe Biden dutifully helped spread the misinformation about the Supreme Court's decision to overturn Roe v. Wade, and took the opportunity to prompt voters to elect more Democrats in November so that Congress can write abortion protections into law. Did the president just let slip the real reason Congress hasn't made any effort to start writing such laws in the nearly two months since Justice Samuel Alito's draft opinion was "leaked" in early May?

Watch Glenn Beck and producer Stu Burguere discuss how Biden's speech reveals that Democrats are absolutely terrified of the upcoming midterm elections. Can't watch? Download the podcast here.

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