Ron Paul Speaks On Federal Reserve’s New Powers

"The Federal Reserve creates the problem, so we give them more power. It’s fiat money that’s the problem, so we allow them to double the money supply - you can’t solve the problems that way. That’s like saying you can take care of a drug addict by just giving them more drugs” RP

http://www.youtube.com/watch?v=xbdqqBkpGqw

“They’re giving a tremendous amount of more power to the Federal Reserve - the very institution that created our problem. That’s about the way Washington works” RP

“The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress” RP

 

Ron Paul Answers Questions About HR 1207 and the Federal Reserve

Date: June 17, 2009

History of the Federal Reserve

Ron Paul: Central Banking has been tried off and on throughout our entire history. It was an argument between Jefferson and Hamilton. Hamilton liked it and he got the first national bank started which was a type of a central bank and Jefferson didn’t like it and he eventually allowed it to expire. Later on they had the second national bank and Jackson managed to get rid of that because he didn’t like the power that was placed in their hands.

And basically we haven’t had a central bank over all those years until 1913 when the Federal Reserve came into existence. And it was set up to be rather secretive and they said they had to have it because of the panic of 1907 and it was to prevent all the business cycle problems that we had in previous years.

And yet, since that time they’ve caused a lot of trouble as far as many of us are concerned from a free market view. They were the ones that created the inflation for World War I, the depression of 1921, the inflation of 1920s, the depression of the 1930s and on and on. But they have never had to be audited and we do not know exactly what they do.

There was a move in the 1970s to audit the Fed because we had rough economic times in the 1970s. We had high unemployment with a high inflation rate and they finally got a bill passed in 1978 that said that the GAO could audit the Federal Reserve. But like they do so often here is that when you pass something with the pretense of accomplishing something, they do exactly the opposite. Actually the bill gave the Federal Reserve more privacy and more secrecy because it excluded all the important things that we needed to know about. So essentially they have been working in secrecy ever since, and right now because of the financial crisis we’ve had a much better chance at this and that is why we’re moving along with our effort to get this bill passed.

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HR 1207 now has 237 co-sponsors.

 

You may be right Bro.