Tag Archives: Ron Paul

At last, central banking and legal tender are once again subject to real political debate and public scrutiny.

In what seems to me to have been an unlikely turn of events, Congressman Ron Paul of Texas has been appointed to chair the House Subcommittee for Monetary Policy in the new Congress. In one sense this seems like very good news, on the other hand, it raises some serious questions about the oligarchy’s ultimate game plan.

Ron Paul is undoubtedly one of the few politicians who understands money and banking, but he has some serious blind spots, and call me cynical, but I think that politics at the federal level has been so thoroughly corrupted that I have little hope that anything that promotes the common good can ever come out of Congress.

Still, I strongly recommend that everyone watch the following C-span interview in which Congressman Paul outlines his agenda. It does not go as far as it needs to, but it is an agenda that I, for the most part, endorse.

According to Brendan Trainor, Rep. Paul in this interview makes the following points. I have highlighted what I consider to be the most urgent and important ones (in red).

  • Ron will start by requesting the information that is now due from the Fed from the watered down version of the “Audit the Fed” bill that was passed by Congress.
  • Ron will submit his more robust version of the Bill to Audit the Fed in Congress again.
  • Ron is aware of the twin dangers of his attack on the FED. Criticism of the FED could result in a reactionary attempt to create an even more centralized monetary system, or else “some of my allies who are critical of the FED” who Ron now public-ally calls “GREENBACKERS”, will push for Congressional issue of fiat money. Both of these outcomes have to be guarded against (by those few of us who understand the debate in the first place.)
  • Ron explicitly defends the proposition that the market should be regulating finance, not the regulators. The Market does a better job of regulation than the government. This counter-intuitive idea does require a limited government involvement (not to discount the anarcho-capitalist alternative) that will require
    an atmosphere of “law and order, NOT regulation“.
  • Market regulation through “law and order” means that banks and financial institutions are subject only to ordinary business law: That is, they are free to operate as they please, but they must fulfill their contracts and must not engage in fraud. If they cannot fulfill their contracts, they are to be shut down, not bailed out. Their assets are to be distributed to their creditors (bankruptcy).
  • The surest way to END THE FED is the peaceful, gradual method of eliminating, not the FED directly, but legal tender laws. Allow people once more to use GOLD CONTRACTS and other means of using alternative currencies and specie in domestic business contracts. Let the fiat paper dollar compete with the people’s choice: constitutional “honest money”.
  • Ron correctly deflects the usual straw man criticisms directed at him by those who favor central planning in monetary policy. ie
  • There were numerous financial panics before the FED was created. Yes, there were. But those panics were the result of “artificial conditions” and in any event were allowed to play themselves out by liquidation of the bad debts and bad contracts without government interventions up to the recession of 1920-21. That was the last recession that was handled without government intervention. It was a sharp recession, where unemployment reached nearly 20%. However, because President Warren G Harding did NOTHING, except cut government spending and taxes, the recession was OVER IN A YEAR.
  • If the FED does not intervene, the Recessions will be worse. The corollary of the first objection. Yes, the recessions may at times be worse, but they will be shorter. The so called “Panics” of the pre Fed era rarely lasted more than a year or two, and then the economy fully recovered. The interventionist policies starting with the Great Depression ( a ten year depression) and this one now only prolong the recessions, and in the end, the underlying causes are NOT addressed, leading to a new “BUSINESS CYCLE”.
  • Attacking the FED will harm the US DOLLAR hegemony. Ron: I want to protect the dollar, but within the context of markets. Markets are ultimately stronger than the central banks attempts to shore up the dollar, and nothing the central banks can do will overcome that fact. The Market, in the end, will out.
  • Fiscal policy (Congress) is more important than Monetary policy (the Fed) Ron: they work hand in glove. The Fed basically enables the Congress to spend exorbitantly by creating fiat money to cover them. We have to end the Wars and Global Empire, and we have to end the limitless welfare state as well. IOW, we do have to address fiscal policy, but at the same time, address its enabler, the FED.

Ron explicitly puts forward the idea that the BUSINESS CYCLE as we have known it can be ended. NOT with more regulation, certainly not with more “Central Planning” (that ultimately leads to Socialism, and we know THAT doesn’t work) , but ended  with the limited government ideal (classical liberalism.)

[A major blind spot is the failure to pinpoint interest/usury as the cause of financial imbalance that leads to the “business cycle.”—t.h.g.]

Definitely a radical agenda, led by a peace loving man. Let us all work to explain his ideas as this year’s economic policy drama unfolds. The attacks from the left and the RINO Republican establishment will be vicious and loud. Those of us who understand the monetary debate are few and our voices have few MSM outlets . Even monetarist libertarians will attack Ron. We must resist them to the best of our abilities, by explaining his policies whenever we can.

Brendan

[Another major blind spot is the size and market dominance of firms like Goldman Sachs, Citicorp, J.P. Morgan Chase, Bank of America, etc. Government needs to set the rules of the game to prevent such megalithic financial firms from emerging and manipulating markets. At the very least the Glass-Steagall law should be reinstituted. It also needs to pass legislation that encourages the development of mutual companies and cooperatives in the financial sector. That would be a complete reversal of the policies of recent decades.] — t.h.g.

Ron Paul’s Straight Talk About Central Banks and the Greece Bailout

The government of Greece is only the latest entity to stagger under the ever-increasing global load of debt. Virtually everyone (individuals, companies, and governments) is caught in  the usury trap. Only the members of the banking cartel who create the debt-based money in every country of the world (and their cronies) are exempt. They are our creditors.

In his latest four-minute update, Congressman Ron Paul again explains the real purpose of central banks (like the Federal Reserve), the way in which they collude to steal wealth from the people, and the ultimate disaster that is on the horizon. — t.h.g.

Ron Paul Bill Seeks to End Legal Tender and Taxes on Coins

Congressman Ron Paul has introduced a bill in Congress that would really break the logjam of monopolized money and economic depression. This article from Coin News gives the highlights.

Here’s one significant quote:

“There is nothing in the Constitution that grants the Congress the power to enact legal tender laws. We, the Congress, have the power to coin money, regulate the value thereof, and of foreign coin, but not to declare a legal tender. Yet, there is a section of US Code, 31 USC 5103, that purports to establish US coins and currency, including Federal Reserve notes, as legal tender.”

More…

Who is the world’s most powerful person?

Congressman Ron Paul says it’s TIME magazine person-of-the-year, FED Chairman Ben Bernanke. While I agree that  Bernanke is more powerful than the President, he’s only the front man and a hired hand for the real power — the banking elite and hidden oligarchy who’s agenda is to arrogate to themselves ever more power and control.

The level of fraud, theft, and expropriation being suffered by the American people today has reached such astounding proportions as to be almost laughable. The US is on the verge of financial ruin, civil unrest, and political despotism.

As that drama unfolds, it is crucial that people remain calm and behave in ways that express their highest ideals. It is time to cooperate and share and organize ourselves into mutual support associations to provide all of us with the things we need to thrive as we transition to “the Butterfly economy.” The following prayer from long-time friend and colleague, Rev. John Papworth, expresses very well the kind of sentiment that should inspire us. – t.h.g.

LORD make me an instrument of Thy war against evil;

Where there is vandalism against Thy creation,

Let me campaign to stop it.

Where there is sabotage of Thy genetic ordainings,

Let me fight like hell to prevent it and to safeguard Thy works.

Where there is conspiracy of boardroom greed to dominate and destroy Thy creation,

Let me join with others to wage an unremitting struggle to oppose it.

Where giant political and money forces combine to control local neighbourhood life,

Let me be quick to affirm the overriding need for strong community power so that Thy moral laws may prevail.

Where there is passivity, deference and conformism to the giant powers of darkness which are degrading society and its individual members,

Let me be a powerful witness to oppose them.

DIVINE MASTER, grant that I may not so much seek to live a quiet life as to be in the vanguard of those who would enhance life, not so much to grab as to give, not to evade my social obligations as to shoulder them, not to be afraid of power as to be imbued with courage to control it with others for worthy ends.

For it is in striving to act with love that we affirm love, and in devoting ourselves to noble causes we are redeemed, and in giving ourselves utterly to the service of truth, beauty and the well-being of our neighbours, we rise to the life immortal.  AMEN.

(Based on an old, mush loved, prayer of St. Francis of Assisi).

JOHN PAPWORTH

Congressman Ron Paul tells the truth about the Federal Reserve

Congressman Ron Paul tells the truth about the Federal Reserve and its power to evade Congressional oversight. Watch it here.

Ron Paul and the Federal Reserve

Ron Paul IS a national treasure. He is virtually the only member of Congress who has consistently and forcefully argued that the central banking system (the FED) needs to be eliminated. At the very least, the Fed must be accountable to the people. It is a private company that operates in secret.

Central banking from its very beginning (notably the founding of Bank of England) was designed to enrich the bankers and enable the political powers to circumvent popular control. The bankers are enriched by their monopoly control of our credit on which they require us to pay them interest when we “borrow” it back from them. The politicians get to spend virtually as much as they want to enrich themselves and their minions, to oppress the people, and to fight wars and undermine popular government and community self-determination.

The Fed enables all of this then tries to manage the effects of these crimes, giving us both depressions and inflation of the currency. That amounts simply to deciding who will be made to pay the price. On the one hand, small businesses are made to fail and workers become unemployed when banks restrict credit to the private productive sector, while at the same time lavishing credit on the government, bailing out financial behemoths, and financing mega-corporation that are deemed “too big to let fail.” On the other hand, the Fed will monetize government debt as needed to enable profligate government spending to continue. That monetary inflation naturally causes prices to increase, diminishing the purchasing power of everyone who lives on fixed incomes or has dollar denominated savings. In the extreme (hyper-inflation), the middle-class gets wiped out financially.

The one thing that NO ONE wants to talk about is LEGAL TENDER. It is legal tender laws that compel acceptance of debased political currencies. Without legal tender, those inferior currencies would quickly be displaced in the market by private and community exchange media that are properly issued on the basis of real value. This is happening anyway, as parallel exchange systems are being developed and used, but legal tender and general ignorance about money, banking, and credit put them at a disadvantage.

While the “Austrian School” of economics has managed to gain some attention, it’s too bad the “German School” has remained obscure. Names like Rittershausen, Beckerath, Zander, Meulen, and Milhaud, should become household words, along with E. C. Riegel. Their writings on free money and banking (i.e., free of monopoly control) are available at http://reinventingmoney.com.

These issues are largely covered in my various presentations that can be seen as movies or slide shows on my blog, http://beyondmoney.net.

— t.h.g.

Yes, Abolish the Fed, But How?

Congressman Ron Paul has for many years been the lone voice crying in the “wilderness” of Congress for an end to the exploitative and disruptive central banking monetary system. Once again he has called for abolition of the Federal Reserve Banks and Board, and recently introduced a bill that would accomplish that. In his introductory remarks, he also called for government to issue only currency that is “backed by stable commodities such as silver and gold to be used as legal tender.”

While I agree with the need to abolish the Fed (and all similarly structured central banks that exist in most other countries around the world), and I agree that the power of the banks and the federal government to debase the currency needs to be curtailed, it is extremely unlikely that legislation adequate to that task can ever make it through Congress. Nonetheless, I applaud Congressman Paul’s efforts because they will at least accomplish the job of raising awareness in the public mind about the nature of the money problem.

Eventually, it may be possible to act effectively at the governmental level, but only after the people have strongly asserted their own power to mediate the exchange process using their own credit apart from banks and the political money system. Only that assertion can bring about the “true free-market economy” that Mr. Paul desires. The nature of this power and how we can assert it are thoroughly addressed in my upcoming book, The End of Money and Future of Civilization.(Due to be released in April, 2009 by Chelsea Green Publishing). – t.h.g.

The following was taken from http://www.lewrockwell.com/paul/paul504.html.

End the Fed

by Ron Paul

Before the US House of Representatives, February 4, 2009, introducing The Federal Reserve Board Abolition Act, H.R. 833.

Madame Speaker, I rise to introduce legislation to restore financial stability to America’s economy by abolishing the Federal Reserve. Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy. In addition, most Americans have suffered a steadily eroding purchasing power because of the Federal Reserve’s inflationary policies. This represents a real, if hidden, tax imposed on the American people.

From the Great Depression, to the stagflation of the seventies, to the current economic crisis caused by the housing bubble, every economic downturn suffered by this country over the past century can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts.

With a stable currency, American exporters will no longer be held hostage to an erratic monetary policy. Stabilizing the currency will also give Americans new incentives to save as they will no longer have to fear inflation eroding their savings. Those members concerned about increasing America’s exports or the low rate of savings should be enthusiastic supporters of this legislation.

Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of special interests and their own appetite for big government.

Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy.

In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.

In conclusion, Mr. Speaker, I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money supply which erodes Americans’ standard of living, enlarges big government, and enriches well-connected elites, by cosponsoring my legislation to abolish the Federal Reserve.

Dr. Ron Paul is a Republican member of Congress from Texas.

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Here is the bill as introduced in the House.

Taken from http://thomas.loc.gov/cgi-bin/query/z?c111:h833:

Federal Reserve Board Abolition Act

HR 833 IH

111th CONGRESS

1st Session

H. R. 833

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

February 3, 2009

Mr. PAUL introduced the following bill; which was referred to the Committee on Financial Services


A BILL

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Federal Reserve Board Abolition Act’.

SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.

(a) In General- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.

(b) Repeal of Federal Reserve Act- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.

(c) Disposition of Affairs-

(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System–

(A) shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks–

(i) manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and

(ii) manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and

(B) may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.

(2) LIQUIDATION OF ASSETS-

(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.

(B) TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.

(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.

(d) Report- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.

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