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Title: ABOLISH THE FEDERAL RESERVE - Rep. Ron Paul
Source:
Ron Paul Archives
URL Source: http://www.house.gov/paul/congrec/congrec2002/cr091002b.htm
Published: Sep 10, 2002
Author: Rep. Ron Paul
Post Date: 2007-07-24 05:23:22 by Uncle Bill
Keywords: Vote, Ron, Paul
Views: 7832
Comments: 23
Congressman Ron Paul Mr. Speaker, I rise to introduce legislation to restore financial stability to America's economy by abolishing the Federal Reserve. I also ask unanimous consent to insert the attached article by Lew Rockwell, president of the Ludwig Von Mises Institute, which explains the benefits of abolishing the Fed and restoring the gold standard, into the record. WHY GOLD? RON PAUL: Denounces The Unlawful Federal Reserve Money, Banking and the Federal Reserve The History Of The Federal Reserve Phenomenon: The Secret of the Federal Reserve The Founding of The Federal Reserve - Murray N. Rothbard presented this lecture in 1984 Read Every comment by iconoclast63 
U.S. House of Representatives
September 10, 2002
ABOLISH 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 burst of the dotcom bubble last year, every economic downturn suffered by the country over the last 80 years 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 the 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.
By Llewellyn H. Rockwell, Jr.
As with all matters of investment, everything is clear in hindsight. Had you bought gold mutual funds earlier this year, they might have appreciated more than 100 percent. Gold has risen $60 since March 2001 to the latest spot price of $326.
Why wasn't it obvious? The Fed has been inflating the dollar as never before, driving interest rates down to absurdly low levels, even as the federal government has been pushing a mercantile trade policy, and New York City, the hub of the world economy, continues to be threatened by terrorism. The government is failing to prevent more successful attacks by not backing down from foreign policy disasters and by not allowing planes to arm themselves. These are all conditions that make gold particularly attractive.
Or perhaps it is not so obvious why this is true. It's been three decades since the dollar's tie to gold was completely severed, to the hosannas of mainstream economists. There is no stash of gold held by the Fed or the Treasury that backs our currency system. The government owns gold but not as a monetary asset. It owns it the same way it owns national parks and fighter planes. It's just another asset the government keeps to itself.
The dollar, and all our money, is nothing more and nothing less than what it looks like: a cut piece of linen paper with fancy printing on it. You can exchange it for other currency at a fixed rate and for any good or service at a flexible rate. But there is no established exchange rate between the dollar and gold, either at home or internationally.
The supply of money is not limited by the amount of gold. Gold is just another good for which the dollar can be exchanged, and in that sense is legally no different from a gallon of milk, a tank of gas, or an hour of babysitting services.
Why, then, do people turn to gold in times like these? What is gold used for? Yes, there are industrial uses and there are consumer uses in jewelry and the like. But recessions and inflations don't cause people to want to wear more jewelry or stock up on industrial metal. The investor demand ultimately reflects consumer demand for gold. But that still leaves us with the question of why the consumer demand exists in the first place. Why gold and not sugar or wheat or something else?
There is no getting away from it: investor markets have memories of the days when gold was money. In fact, in the whole history of civilization, gold has served as the basic money of all people wherever it's been available. Other precious metals have been valued and coined, but gold always emerged on top in the great competition for what constitutes the most valuable commodity of all.
There is nothing intrinsic about gold that makes it money. It has certain properties that lend itself to monetary use, like portability, divisibility, scarcity, durability, and uniformity. But these are just descriptors of certain qualities of the metal, not explanations as to why it became money. Gold became money for only one reason: because that's what the markets chose.
Why isn't gold money now? Because governments destroyed the gold standard. Why? Because they regarded it as too inflexible. To be sure, monetary inflexibility is the friend of free markets. Without the ability to create money out of nothing, governments tend to run tight financial ships. Banks are more careful about the lending when they can't rely on a lender of last resort with access to a money-creation machine like the Fed.
A fixed money stock means that overall prices are generally more stable. The problems of inflation and business cycles disappear entirely. Under the gold standard, in fact, increased market productivity causes prices to generally decline over time as the purchasing power of money increases.
In 1967, Alan Greenspan once wrote an article called Gold and Economic Freedom. He wrote that:
"An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense--perhaps more clearly and subtly than many consistent defenders of laissez-faire--that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other. . . . This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights."
He was right. Gold and freedom go together. Gold money is both the result of freedom and its leading protector. When money is as good as gold, the government cannot manipulate the supply for its own purposes. Just as the rule of law puts limits on the despotic use of police power, a gold standard puts extreme limits on the government's ability to spend, borrow, and otherwise create crazy unworkable programs. It is forced to raise its revenue through taxation, not inflation, and generally keep its house in order.
Without the gold standard, government is free to work with the Fed to inflate the currency without limit. Even in our own times, we've seen governments do that and thereby spread mass misery.
Now, all governments are stupid but not all are so stupid as to pull stunts like this. Most of the time, governments are pleased to inflate their currencies so long as they don't have to pay the price in the form of mass bankruptcies, falling exchange rates, and inflation.
In the real world, of course, there is a lag time between cause and effect. The Fed has been inflating the currency at very high levels for longer than a year. The consequences of this disastrous policy are showing up only recently in the form of a falling dollar and higher gold prices. And so what does the Fed do? It is pulling back now. For the first time in nearly ten years, some measures of money (M2 and MZM) are showing a falling money stock, which is likely to prompt a second dip in the continuing recession.
Greenspan now finds himself on the horns of a very serious dilemma. If he continues to pull back on money, the economy could tip into a serious recession. This is especially a danger given rising protectionism, which mirrors the events of the early 1930s. On the other hand, a continuation of the loose policy he has pursued for a year endangers the value of the dollar overseas.
How much easier matters were when we didn't have to rely on the wisdom of exalted monetary central planners like Greenspan. Under the gold standard, the supply of money regulated itself. The government kept within limits. Banks were more cautious. Savings were high because credit was tight and saving was rewarded. This approach to economics is the foundation of a sustainable prosperity.
We don't have that system now for the country or the world, but individuals are showing their preferences once again. By driving up the price of gold, prompting gold producers to become profitable again, the people are expressing their lack of confidence in their leaders. They have decided to protect themselves and not trust the state. That is the hidden message behind the new luster of gold.
Is a gold standard feasible again? Of course. The dollar could be redefined in terms of gold. Interest rates would reflect the real supply and demand for credit. We could shut down the Fed and we would never need to worry again what the chairman of the Fed wanted. There was a time when Greenspan was nostalgic for such a system. Investors of the world have come to embrace this view even as Greenspan has completely abandoned it.
What keeps the gold standard from becoming a reality again is the love of big government and war. If we ever fall in love with freedom again, the gold standard will once more become a hot issue in public debate.
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#1. To: christine, Zipporah (#0)
Press 1 for English, Press 2 for English, Press 3 for deportation Death of Habeas Corpus: “Your words are lies, Sir.”
Let me try that again: Press 1 for English, Press 2 for English, Press 3 for deportation Death of Habeas Corpus: “Your words are lies, Sir.”
The Fed is "THE" primary parasite that is the most destructive agent concerning freedom and liberty. However, it is imperative for us to realize that our own immorality and propensity to participate in a variety of activities offered by or through agencies or agents of the fed, including Wall Street, the U.S. Inc., Insurance Companies etc.,and the list goes on and on, allows them to keep us in bondage. These acts on our part amount to self-destruction.
"The mighty are only mighty because we are on our knees. Let us rise!" --Camille Desmoulins
"It does not take a majority to prevail, but rather an irate, tireless minority, keen on setting brush fires of freedom in the minds of men." -- Samuel Adams (1722-1803)‡
Any move against the FED and you're dead. The wealthy elite and the ruling class will never let it happen.
"The gist of my criticism is this: Mr. Constable tries to make it appear that Ron Paul wants to "go back" to an inflexible system that was abandoned in the 19th century. Nothing could be further from the truth. Dr. Paul himself has said there were flaws with the past system, and he would in fact like to move forward to a new, commodity-based, honest money system. A 100% reserve gold standard has never, in fact, existed in the United States." "After my first critique, Mr. Constable emailed me, thanking me for my interesting perspective. Recently, Mr. Constable again emailed me with a link to a new video/story that he's done on Ron Paul and the gold standard. In this new video, Constable interviews random people in front of the New York Stock Exchange. The first question he poses is whether they know what the gold standard is. Woefully, no one does. He then goes on to ask the same ignorant people, "Presidential candidate Ron Paul wants to abolish the Fed and reintroduce the gold standard. Do you think that is a good idea?"
Thanks much. If I had a choice of one thing in life to leave Americans, it would be to illuminate their minds concerning THE FED, from your article linked: "It is said that the Chairman of the Federal Reserve is more powerful than the President of the United States, because his decisions on monetary policy (though interest rate decisions) affect the average citizens’ house payment, car payment, and whether or not he will have a job. But most people never give that a second thought. This ignorance can easily be manipulated to serve the current powers that be - the government and the MSM." Grandpa - How Come I Can't Buy Much With My Dollar? Press 1 for English, Press 2 for English, Press 3 for deportation Death of Habeas Corpus: “Your words are lies, Sir.”
Here's a nice way of saying Buy a few acres in the country, and learn how to make potato soup: Press 1 for English, Press 2 for English, Press 3 for deportation Death of Habeas Corpus: “Your words are lies, Sir.”
BTTT
Press 1 for English, Press 2 for English, Press 3 for deportation Death of Habeas Corpus: “Your words are lies, Sir.”
BTTT
Press 1 for English, Press 2 for English, Press 3 for deportation Death of Habeas Corpus: “Your words are lies, Sir.”
Bump
Press 1 for English, Press 2 for English, Press 3 for deportation Death of Habeas Corpus: “Your words are lies, Sir.”
Okay, so they abolish the illegal federal reserve and replace dollars with something backed by gold and silver. So who owns the lion's share of gold and silver? And who will be in charge of determining how much "new" currency will be put into circulation, or how they intend to wrest the metals that would back it from the hands of the current holders to hold in reserve? And to whom would this "new" currency be issued? I don't see anything from Paul detailing who will be in charge of putting such a plan into action or how they'd do it. Or will this be the conveyer belt that delivers the Amero into existence with the covert backing of the global moguls who own the gold? Questions ....
Questions .... And good ones too. Leaving the same moguls in control isn't my idea of an acceptable arrangement ... we'd be worse off than we are today. I question Ron Paul's committment to a gold standard, but I still like Ron Paul.
"We are much beholden to Machiavelli and others, that write what men do, and not what they ought to do." --- Francis Bacon
I think the hype about a gold standard is a complete hoax. I like Russ Means, but he won't be on the ballot, either.
I believe that most proponents of a gold standard hold it up in honesty, but fail to realize that those in possession of the gold are the paper printers as well. The unconstitutional and illegal monopoly over issuance of the U.S. currency must be abolished. There's no reason for this con game other than to allow certain entities to rob the nation of its production and resources, while funding every purchase their friends and associates deem necessary, like the media, the banks, the war machine, drug company buy-outs etc., ultimately funding foreign nations through the World Bank, the IMF and Bank of International Settlements. The only advantage that I can see offered by a gold standard is the limits it would put on military growth, and actually all growth would be curtailed unless an exorbitant value were established for gold. Currency is the fuel that powers an economy, and in my opinion must be adjusted according to population, under strict policy measures to insure its (commodities based) value. If it is going to be lent into society then society should benefit from the interest accrued. An independent body or commission could be set up and audited on a quarterly basis by another independent commission to oversee the operation. The precise details of setting up and operating the system aren't of primary concern. What is ludicrous is that people are too stupid to demand that the shylocks called the federal reserve be brought up on embezzlement charges and all prior gold payments to the shylocks recovered through confiscation and the perps tried and hung. [And since it's my idea I want one of the the Rothschild mansions in France for my concept]. Ha !
"We are much beholden to Machiavelli and others, that write what men do, and not what they ought to do." --- Francis Bacon
I like this idea better. en.wikipedia.o rg/wiki/Category:Community_currencies Any currency they "give" us will come with interest and other strings attached and as long as we accept their "gifts", we will be at their mercy. *note* they have no mercy.
My response may have been ambiguous. I was trying to say that the Gold Standard is "not" the answer and I question Ron Paul's support of it. What we really need to do is water the tree of liberty with the blood of bankers, lawyers, pundits, and politicians.
"Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money ." --- Josiah Stamp
There is no doubt that it will come to that, but there is no guarantee that doing such will get that tree to grow as long as so many regular everyday people will want to dilute the poor thing with illusions of guaranteed safety and security for themselves. It would be much better if everyone would just ship back to all governing agencies every single contract they've ever signed waiving their inalienable rights and simply walk away. Peacefully. If those governing agencies don't want to accept our decisions and bring out the big guns, at least no one could deny any longer who really depends on whom, us on them, or them on us.
Exactly. People fear separation from concepts that they've become accustomed to, like banking, credit cards, all forms of licensing, and obedience to perverts, paedophiles, and politicians ... that's redundant. Anyways, our participation in any of the scams perpetrated by the PTB will end in our demise either by their will or ours. The system will either implode or explode. The only thing left to be decided is who's gonna pay for it, us or them. I say, let's make them pay !
"Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money ." --- Josiah Stamp
Their power is only on paper. Paper burns. That would equal their demise. Up in smoke. Then they'd have to figure out a way to produce something useful to earn a paycheck. Just like everyone else. Can you think of any worse punishment for people who've never worked a day in their lives other than to make everyone else miserable? Sure they could just shoot us, but the only bank accepting blood deposits these days is the blood bank.
Yes !!!!!
"Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money ." --- Josiah Stamp
Sorry, but that made me laugh. I knew you could. I'd prefer to leave the revenge and bloodletting up to someone else and just live out the rest of my life in peace. Of course I know that's probably not going to be an option.
BTTT
Press 1 for English, Press 2 for English, Press 3 for deportation Death of Habeas Corpus: “Your words are lies, Sir.”
JFK vs. The Federal Reserve
"On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business."
Assassinated on November 22, 1963
#2. To: christine, Zipporah (#1)
JFK vs. The Federal Reserve
"On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business."
Assassinated on November 22, 1963
#3. To: Uncle Bill (#2)
#4. To: Uncle Bill (#2)
#5. To: ghostdogtxn (#4)
Ron Paul is asking for the same thing taking on the Fed
#6. To: Uncle Bill (#0)
#7. To: Arete (#6)
#8. To: Arete (#6)
#9. To: Arete (#5)
#10. To: noone222 (#3)
#11. To: noone222 (#3)
#12. To: Uncle Bill (#0)
#13. To: RidinShotgun (#12)
(Edited)
Or will this be the conveyer belt that delivers the Amero into existence with the covert backing of the global moguls who own the gold?
#14. To: noone222 (#13)
I question Ron Paul's committment to a gold standard, but I still like Ron Paul.
#15. To: RidinShotgun (#14)
I think the hype about a gold standard is a complete hoax.
#16. To: noone222 (#15)
#17. To: RidinShotgun (#14)
#18. To: noone222 (#17)
What we really need to do is water the tree of liberty with the blood of bankers, lawyers, pundits, and politicians.
#19. To: RidinShotgun (#18)
It would be much better if everyone would just ship back to all governing agencies every single contract they've ever signed waiving their inalienable rights and simply walk away.
#20. To: noone222 (#19)
#21. To: RidinShotgun (#20)
Can you think of any worse punishment for people who've never worked a day in their lives other than to make everyone else miserable?
#22. To: noone222 (#21)
Yes !!!!!
#23. To: Arete, buckeye (#5)
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