12/14/09 Ron Paul: The Fed's Money Monopoly

http://www.house.gov/paul
http://CampaignForLiberty.com

Last week, in the name of protecting the little guy from Wall Street, the House passed HR 4173 to increase the little guys false sense of security in the financial system. This mammoth piece of legislation would massively increase government regulation and oversight in the banking industry under the misguided reasoning that more government could have stopped faulty lending practices, when in actuality it caused them. This bill would also greatly increase the powers of the Federal Reserve, which too many in Congress still see as savior rather than perpetrator in this mess.

One silver lining is that the amendment to audit the Fed is still attached to the bill, and if it survives the Senate, the Fed will no longer operate in secrecy. If any version of HR 4173 becomes law, the Fed will be intervening and bailing out more rather than less, as it will gain enormous new powers in addition to those it already has. Whatever happens, the Fed and its defenders have seen that people are becoming very wary of its methods of operation, and many are downright angry at its very existence. Never again will the Fed be immune from the scrutiny of its critics. This is very positive.

Because of legal tender laws that force acceptance of the dollar, the Fed has absolute power over the currency. This absolute power is leading to the absolute corruption of our currency. The money supply has doubled in the last year or so, which is extremely dangerous. The banks seem to be hoarding liquidity now but once these dollars make their way into the economy, hyperinflation and economic chaos will be a real possibility.

Every time hyperinflation rips through an economy, the middle class gets completely wiped out. It is very alarming to watch the purchasing power of an entire life savings reduced to that of a few pennies. Those savings represent years of real labor, real time, effort and sacrifice exchanged for corruptible pieces of paper that politicians and bankers can destroy at whim.

Legal tender laws force the people to become subject to this risk for the benefit of the rulers. Artificial demand for currency allows the authorities to create arbitrary amounts of it to pay for wasteful projects, like frivolous wars and an ever-expanding public sector. This saps the private economy of jobs and purchasing power, yet the temptation proves too great for politicians, time and time again. Our government is no different. Although our dollar has taken nearly a century to lose 98% of its purchasing power, the fact that we are all obliged to participate in this slow burn of the economy on pain of imprisonment is anathema to the principles of liberty.

I introduced the Free Competition in Currency Act last week to free the people from these governmental threats. HR 4248 would repeal legal tender laws, prohibit taxation on certain coins and bullion, and repeal certain laws related to coinage. The prospect of people turning away from the dollar towards alternate currencies should provide incentive for Congress to regain control of the dollar and halt its downward spiral. Restoring soundness to the dollar will remove the government's ability and incentive to inflate the currency and keep us from launching unconstitutional wars that burden our economy to excess. With a sound currency, everyone is better off, not just those who control the monetary system.

Category:

News & Politics

Tags:

• congressman
• ron
• paul
• texas
• straight
• talk
• financial
• overhaul
• package
• bill
• congress
• house
• obama
• democrats
• republicans
• audit
• fed
• federal
• reserve
• hr1207
• money
• monopoly

[revenge53142]

Thanx for posting Ron's updates Chris!!

[chicagomike88]

Leave it to this corrupt government to attach 1207 to 4173, expanding the fed. They are so clueless, and clueless people elect these fools. 2010 and 2012 is not going to save this country either. Dems are worse than ever and Republicans have learned nothing.

[AshcraftCoin]

Giving the Fed and government more control is a bad idea. Hedge your bets... buy gold and silver bullion.

Ashcraft Coin - Bullion Dealer

[shiffty1032231]

Just like HR 1207 we need to strongly get behind HR 4248. Call your congressmen to demand that they back it without anything taken out. If not then explain to them simple economics and how removing the monopoly of the fed will lead towards greater prosperity for our people and limits to the federal government (A selling point to the Republicans; a harder challenge to the non blue dog Democrats). Don't forget to keep buying gold and silver. Midas Resources is the best one stop shop for that.

[LiveFreeOrDieNow]

Dr. Paul is a man of the people.

[silvrsentinel]

Thanks for the update Ron ,just to let you and your regular listeners know that you have people all over world offering their support and watching the fed, I am from Australia and invest and trade in the markets here and its in my own interest to watch the US government and the corrupt fed very, very closely.

Good luck in your endeavors, wish you all the best!

[anarchylogic]

Mankind must put and end to government or government will put an end to mankind.

[mcgrawtim123]

The Government no longer works for us. Soon it will no longer "work" for itself.

Get ready!

[ffrank345]

you COULD call the number

[marxbroths]

can you get these on a podcast??? I use itunes alot

[FreedomsReigning]

This would be a huge step in the right direction. I'm so tired of getting ripped off and attacked through fiat debt. I refuse to pass on a system this corrupt to the next generation. The blame game doesn't even matter. IT'S TIME TO FIX IT.

It's time for congress to take back their constitutional authority and fulfill the duty given to them. We want monetary authority back, and to get paid real money for our labors; not these devalued slave credits.