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.

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Protests following the fatal police shooting of Walter Wallace Jr quickly devolved into violence, rioting, and looting in Philadelphia, and BlazeTV's Elijah Schaffer was there to document what the mainstream media won't. But while filming the carnage inside a Five Below on Tuesday, Elijah was surrounded and attacked by looters.

Elijah joined Glenn Beck on the radio program Wednesday to detail his experience and to explain why mainstream media efforts to downplay the violence just show that independent media has never been more important.

"Unfortunately, [the attack] escalated from one person to about a dozen very quickly," Elijah explained. "I'm actually really happy to be alive. Because in that same shopping center, right there, there was a 15-year-old girl who was shot, according to reports. And I heard multiple gunshots throughout the night. Another individual is reported to have heard a gunshot as well, so we try to confirm. I watched people get pummeled beyond belief."

Glenn asked Elijah to respond to mainstream media claims that conservatives are exaggerating the looting and violence in Philadelphia.

"It's so funny to hear people that aren't there try to counter what we're reporting," Elijah replied.

Watch the video below to catch more of the conversation:

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In the final days before the 2020 election, President Donald Trump is gaining among black voters, particularly men, because his record of accomplishments "speaks for itself" and the "façade" that President Trump is a racist "just doesn't ring true," argued sports columnist Jason Whitlock on "The Glenn Beck Radio Program" Tuesday.

Jason, who recently interviewed the president at the White House for OutKick.com, shared his thoughts on why he believes many black Americans — notably celebrities such as Kanye West, Ice Cube, and 50 Cent — are breaking from the "façade" that President Trump is a "flaming racist."

"I really believe the facts are starting to speak for themselves, and that Donald Trump's record of accomplishments, particularly as it relates to African Americans, speaks for itself," Jason told Glenn. "He actually has a record to stand on, unlike even Barack Obama. When [Obama] was president, I don't think he had much of a record to stand on, in terms of, 'Hey, what did he actually deliver for African Americans?' President Trump has things he can stand on and, you know, beyond that I think black people understand when he starts talking about black unemployment rate. And America's unemployment rate. And then, when you add in for black men, the façade we've been putting on [President Trump] … you know, this whole thing that he's some flaming racist, it just doesn't ring true."

Jason suggested that Trump's fearlessness, unabashed masculinity, and record of keeping his promises resonates with men in the black community. He also weighed in on how media and social media's bias plays a huge role in convincing people to hate President Trump while ignoring Antifa and others on the Left.

"I keep explaining to people, Twitter, Instagram, Facebook, they're some of the most secular places on earth. And we've reduced everyone to a tweet, that we disagree with," he added.

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Megyn Kelly is not happy about the "disgusting" media coverage of President Donald Trump, specifically pointing to Lesley Stahl's "60 Minutes" interview on CBS Sunday.

On the radio program, Megyn told Glenn Beck the media has become so blinded by the "Trump Derangement Syndrome" that they've lost their own credibility — and now they can't get it back.

"It's disgusting. It's stomach-turning," Megyn said of the media's coverage of the president. "But it's just a continuation of what we've seen over the past couple of years. Their 'Trump Derangement Syndrome' has blinded them to what they're doing to their own credibility. They can't get it back. It's too late. They've already sacrificed it. And now no one is listening to them other than the hard partisans for whom they craft their news."

Megyn also discussed how she would have covered the recent stories about Hunter and Joe Biden's alleged corruption. Watch the video below to catch more of the conversation:


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