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Will Ron Paul Be Able To End The Fed?

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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 Reserve.

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.

These revelations have many members of Congress wondering what else has been going on inside the Federal Reserve.

For example, U.S. Senator Bernie Sanders was absolutely outraged by these “backdoor bailouts” by the Federal Reserve….

“The $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.”

More members 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.

Expose the Federal Reserve.

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.

During 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….

“Public awareness of what the Fed is doing is increasing while public opinion of the Fed is falling.”

Unfortunately, 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.

In a recent Bloomberg Television interview, Barney Frank noted this division within the ranks of the Republicans….

“I do not believe that Ron Paul’s views on the Fed represent the views of most Republicans.”

However, there is evidence that the tide is turning with the American public.

According to a 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….

Asked 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?

Well, think 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 billion.

Since that 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 on debt.

No debt, no money.

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.

Instead, what 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.

Wouldn’t you 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 bankers.

So what did we get in return for our 413 billion dollars?


Sadly, this 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.

Throughout 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.

Perhaps we were not as smart as we thought we were.

  • flubadub

    My brother forwarded this email yesterday and I figured the best way to reach twenty like minded people was to have it show up here.

    The 26th amendment (granting the right to vote for 18 year-old’s)
    took only 3 months & 8 days to be ratified! Why? Simple! people
    demanded it. That was in 1971 before computers, before e-mail, before cell
    phones, etc.

    Of the 27 amendments to the Constitution, seven (7) took 1 year or
    less to become the law of the land all because of public pressure.

    I’m asking each addressee to forward this Email to a minimum of twenty
    people on their Address list; in turn ask each of those to do likewise.

    In three days, most people in The United States of America will have
    the message.

    This is one proposal that really should be passed around.

    Proposed 28th Amendment to the United States Constitution:

    “Congress shall make no law that applies to the citizens of the United
    States that does not apply equally to the Senators and/or
    Representatives; and, Congress shall make no law that applies to the
    Senators and/or Representatives that does not apply equally to the
    citizens of the United States.

  • VegasBob

    The fact that Bernokio and his minions are so terrified of a Fed audit is all but prima facie proof of the criminal wrongdoing that would be uncovered by an audit.

    I hope Ron Paul can bring about a full audit of the Fed and perhaps its ultimate abolition. But I won’t hold my breath because I’d probably suffocate.

    I would pay to see Bernokio’s facial expression at the moment he found out that his criminal banking organization was going to be audited and its evil wrongdoing exposed for the world to see.

  • Gary2

    You know I actually agree with this.

    On the other hand-if we taxed the rich and spread the wealth we would not need a federal reserve. I’m just sayin…

  • Dan

    I’m speechless. I’ve not seen a better explanation and a call to action then this. I was friends with someone who ran for Congress this past cycle. A Republican running in a historically Democratic district. The Democratic candidate had a nice little slogan in his advertising saying how much and how hard he was working to help families, yet not one word about the debt, deficit spending or the Fed. I advised my friend to hammer him on this as one cannot be for families in this climate and ignore the issue of the debt – which when you count the unfunded liabilities is much larger then the 13.9 trillion. However my good friend would come back and say that all the polling data was pointing to people being concerned with jobs. Well, kudos to you for a great post. I would also like to point people who want to really go into depth on the history of central banking to two excellent films by Bill Still.
    The Secret of Oz
    The Money

  • Michelle

    If any one has the vision for it it’s RP.

    Now there is a Paul in the Senate.

    Expect the best.

    Prepare for the worst.

  • Save the Republic

    Abolish the unconstitutional Federal Reserve, the most evil organization in America.

  • William

    Article 1, Section 8, of the US Constitution gives the US Congress the power to create money and regulate the value thereof. The FED is UNCONSTITUTIONAL. WHY has this unconstitutional, PRIVATE bank existed since 1913??? I think the answer is that there are people with so much money and power that they can control the federal government and control who is elected to the US Congress. And, these very same people will start throwing around false cries of prejudice, or antisemitism, if their status or power is questioned. So, as America sinks into a second rate power with a declining economy, a thinking person would wonder exactly WHAT is wrong with the members of the US Congress, less Ron Paul.

  • Steve

    I really like this article. Great job, couldn’t have said it better myself. The Federal Reserve no doubt needs to go. Congress needs to step up and do its job.

  • Apparently nobody sees the irony of a libertarian like Ron Paul wanting to use the power of the state to rob the Fed’s private owners of their property rights. Libertarians object to the government’s terrorizing and looting of other private businesses. If Paul succeeds in destroying the Fed, wouldn’t its owners deserve compensation for this taking under the Fifth Amendment of the U.S. Constitution? And what colossal amount of money would that cost us in additional taxes?

    And given the Fed’s allegedly bad example as an experiment in privatizing the functions of the government, wouldn’t its demise also bode ill for other privatization efforts on the libertarians’ agenda? “We want to privatize function X of the government.” “Oh, you mean like the Federal Reserve System? What a disaster that turned into!”

  • Maria

    Will Ron Paul be able to end the fed?

    I wish! I hope! I pray!

    God Bless Ron Paul, and may St. Michael the Archangel be his guardian angel!

  • jox

    I don’t expect Ron Paul to have a long lifetime. Investigating the banksters is very bad for the health.

  • clh

    Maybe when Hell freezes over…….

    The Fed has too much power, until God says so!

  • No Stocks 4me Kramer

    Will this get bank interest rates back up to 5%?

    What ever it takes is OK with me.

  • articuno75

    I’m all for the Federal Reserve to be eliminated. BUT, I don’t want a currancy that will in the end destroy us. Remember New World Order and the four different currencies that are trying to be past. Europe already passed the Euro. I don’t want an Amero. We just need to go back to the Good ‘ol days when silver and gold was the common commodity.

  • SanJoseLarry

    Both liberals and conservatives should be in favor of abolishing the Fed.

    If they want to redistribute wealth, they should start with the Federal Reserve. Its a win-win situation. Even Gary2 would like that idea.

  • Realoldcrow

    Thank God there are still a few people in Washington, like Ron Paul, that care more about the country then being reelected.

    Finacially, this nation is barely on life support and they are about to pull the plug.

  • Spencer

    Investing in American debt is not that profitable – you’re free to go buy US treasuries…they pay very little interest.

    For that 450B in interest you got a lot. You got to bail out your automotive sector, you got to bailout your Freddie and Fanny mac, you got to finance a couple of expensive wars, you got to give free health care and free social security checks and other free money to 20% of your population.

    One day grandma will lose faith in US treasuries, so will john down the road, so will China, and so will everyone else. One day soon, America’s credit card will max out

  • Tim

    Did anyone notice how nervous Bernanke was in his “60 Minutes” interview which aired last Sunday night? I remember seeing another interview with Bernanke, and when the subject of the Federal Reserve possibly being audited came up, Bernanke was so nervous he could barely speak. What’s he hiding? Do you think he knows that what the Fed is doing will result in a complete collapse of our economy?

  • alice

    Audit the Fed! It’s our national duty and interest! Viva Ron Paul!

  • mondobeyondo

    It’s going to take more than Ron Paul to end the Fed. He’s pretty much a lone voice in the Congressional wilderness.

    Every time there is a bill to audit the Fed, it gets shot down like a duck in a shooting gallery. Why? Too many congressmen, congresswomen and government officials would have too much to lose if it ever went through. Think about the campaign contributions that would evaporate! (Can you say “money under the table”?)

    Yes, most of Congress is paid off, just like the President, the Supreme Court, etc. They are paid off by bankers. And the Fed is one of the biggest bankers of all. Do you REALLY think they’d bite the hand that feeds them under the table?

    Washington dances to Wall Street and the Fed’s tune. The ones in charge are not about to let the music stop.

  • mondobeyondo

    So… how can there be a proper audit of the Fed, where they would be fully accountable for their actions?

    Only if enough people are angry enough and aware enough to shovel past the bovine excrement on nightly network TV, and discover the truth.

    Wake your neighbors. Slap them out of their Miley Cyrus and Lady Gaga coma. Wake your dog. (Hopefully a watchdog. We need more of those).

    If your daughter was being raped in front of your eyes, you’d have quite a say and an opinion about that. Damn right you would.

    Well, America the Beautiful is being raped in front of our eyes, by the wealthy elite and foreign bankers. And the majority don’t even bat an eyelash.

    Sigh. Just roll over, pull the covers and go back to listening to Justin Bieber. Is that the best we can do?

    Damn it, wake up and smell the cappuchino!!

  • mondobeyondo

    (Apologies for yet another post… sigh)

    As an aside… Europe gets it.

    In Greece, there are protests against austerity measures. In England, students are rioting against increasing university tuition. Their governments want to control their people. Their people will have none of it.

    America doesn’t get it. Not yet. But in some ways, it’s getting even worse here.

    TSA “security” feeling down your pants for bombs. Our civil liberties being restricted at nearly every turn. Try setting up a lemonade stand without violating a civil ordinance. Or flying an American flag (an AMERICAN flag!!) on American soil, in an American neighborhood where the local HOA says it doesn’t comply with their rules.

    And yet… nothing from the American public, not even a murmur.

    What’s happened to us? What the hell have we become?

  • dph

    Do some research on Spencer Bachus. He’s a defender of Goldman Sachs, etc. This guy will make sure that Paul doesn’t step out of line. I sometimes get the feeling that Paul is just a useful tool for the GOP. At any rate, the chances that Paul will be able to do anything at all about the Feds is a big Zero. Zip. Nada. But, hey, this appointment sure gives the suckers hope, right? And allows the scoundrels to keep on doing what they are doing in the meantime.

  • Lennie Pike

    Mark Plus:

    All lies. Did it sound like truth to you?

  • Jeremiah

    @Tim: Yes, I noticed how nervous he was. I watched his eyes. I thought I saw fear in them. His expressions were different than the interviewer’s. He did not look happy or confident to me. Of course, it could just be that he is camera-shy, but I doubt it. He may also be telling us what he is instructed to. Wonder how much time we have left?
    As an aside: Isn’t it amazing that all through this meltdown, home shopping channels haven’t even slowed down to take a breath. I notice the only change is they sell more silver now instead of gold. Greed marches on. I guess someone still has money to buy their imported junk.

  • neoconhitlist

    Pauls got the guts to run with the truth… but so did JFK— pray for him…

  • Illegal Federal Reserve, yet another violation of our rights. Add it to the list of gov’t violations of our right:
    They violate the 1st Amendment by placing protesters in cages, banning books like “America Deceived II” and censoring the internet.
    They violate the 2nd Amendment by confiscating guns.
    They violate the 4th and 5th Amendment by molesting airline passengers.
    They violate the entire Constitution by starting undeclared wars for foreign countries.
    Impeach Obama and sweep out the Congress, except Ron Paul.
    (Last link of Banned Book):
    America Deceived II (book)

  • zack

    While I wish Ron Paul the best of luck in reining in the Fed, the corporate media is in bed with the Fed, and I really wonder whether Ron Paul can counter them. Earlier this year over 300 members of Congress signed onto HR 1207 to audit the Fed, but the Fed’s lackeys in Congress watered the bill down to prevent the full scope of their corruption from being revealed.

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  • Piglet

    “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 also a tax on everyone all over the world who holds dollars. Inflation allows the US to tax the entire world.

  • The Federal Reserve System has turned our once valued dollar into a myth and a fraud. It is now created out of thin air by;

    1.) Our special interest owned and controlled elected representatives borrowing and spending trillions to further the agendas of the special interests they serve. Goes to National debt.

    2.) The Federal Reserve secretly spending trillions to foreign entities (businesses, countries, Agencies, ad nausea) and putting it on our tab! Goes to National debt!

    3.) Fractional reserve lending by banks. Money created from zip, nothing, nada to fund your home, business, and credit card loans. Goes on your personal tab and ALSO goes toward the National Debt. So, even though you pay it off to your local bank, “we the people” get to pay it again toward the National Debt.

    We were sucked into this unconstitutional scam long before most of us were borne. We have suffered the bubbles the Federal Reserve creates with boom and bust manipulation of our money and they have parasitically sucked the wealth of the Nation. We the people are now debt slaves to a few elite banking cartels that own virtually everything, worldwide. This debt is so huge that there is not enough real money in the world to pay the interest, let alone the principal.

    Now is the time for every citizen of the United States to get behind Ron Paul and assist him in ending the Federal Reserve. No one man can do this by himself.

    It will have to be done incrementally by first auditing to find out the enormity of the problem. Once the people realize how insanely criminal this monumental debt slavery scam is, we can end it dead in its tracks.

    One man can’t fight this evil empire alone since every one that has tried has met his untimely demise.

    “You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time.” – A. Lincoln

  • Sadly the masses have no real clue what the Federal Reserve is… let alone how it works. The more we can educate the average joe the better.

  • Reality Check

    This info needs to be published and explained to the masses in the MSM (mainstream media) otherwise nothing will change…

  • Tim

    Ron Paul is a religous right facist. He wants to take personal freedom from us and give it to the states. He is a racist homophobe with a far right agenda. He wants his religion to rule all of us.

    Ron Paul is a anti freedom bigot

  • Elvis

    What’s the matter Michael, don’t like my comment?


    You don’t deserve rights if you arn’t willing to defend them. That’s why you’re losing your rights. If you want your rights then stand for yourself. That goes for any other cry babies that are giving up without a fight or a whimper.

    Read “Common Sense 3.1” at ( )

    We don’t have to live like this anymore. “Spread the News”


    Tears won’t change a thing….they’ll just make you saddddd

  • Domingo de la Torre

    For those of you who are in a position to get mainstream media coverage, and courageous enough to speak out in exposing the Fed for what it really is…you have, at the very least, my respect.

    My over-simplified three-part solution is:
    I. ‘IN’ with isolationism,
    ‘OUT’ with globalization.
    II. Restore ‘The Constitution’ to it’s
    original intent.
    III. No USA money, men, or aid to foreign

    Above all…get rid of the Fed.

  • Matt

    Please, Americans, don’t kill your great nation with socialism! Don’t let them fool you like they fooled people here in Sweden. You need less government, less corruption. Not more! Socialism is a cancer that slowly grows, killing its host slowly and painfully as the years pass!

    Get rid of the Fed and Government Sachs. That’d be a good start…

  • Jak Assa

    Along the lines of what you Michael are saying, we must open more people to the need of a serious monetary reform. A good places to check are also the American Monetary Institute (AMI) and the writings of Richard C. Cook.

  • Jak Assa

    We are not talking here about “-isms” – capitalism, socialism … We are talking about returning to government issuance of money; let banks mind the banking business of lending to the private sector but not to the government. Congress should end its lameness and start issuing U.S. money debt-free. Reconstitute the Fed as a bureau of the U.S. Treasury; create a monetary authority as the American Monetary Act proposes …

  • Dean

    I think the fed should be held accountable and if there was funny business going on, those who were involved should be prosecuted to the fullest extent of the law. This includes present and past fed chairmen and board members and heads of federal reserve banks etc. We need maximum accountability.

  • No Ron Paul

    Ron Paul ran for president one under the Libertarian Party, and one under the Republican Party (he did not get nominated), he LOST both time and only got less than 6% in both elections.

    Every politicians and the American people want the same things as what Ron Paul and others promised, but never did anything?

    What has he done that made valueable impact during his political career? He didn’t try to stop the Patriot Act.

    He is 75-year-old now and extremely too old for any job. Look at those who are promoting him and working for him behind the scene.

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