Want to Make America Great? Abolish the Fed

If Americans really want to make the country great again, it’s imperative that we rethink how our money is issued. Rather than have the privately owned and controlled Federal Reserve loan money into circulation for the profit of private bankers, we need to look to other options, including government issuance and commodity backed currency.

By Rep. Ron Paul

Former Dallas Federal Reserve Bank President Richard Fisher recently gave a speech identifying the Federal Reserve’s easy money and low interest rate policies as a source of the public anger that propelled Donald Trump into the White House. Fisher is certainly correct that the Fed’s policies have “skewered” the middle class. However, the problem is not specific Fed policies, but the very system of fiat currency managed by a secretive central bank.


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Federal Reserve-generated increases in money supply cause economic inequality. This is because, when the Fed acts to increase the money supply, well-to-do investors and other crony capitalists are the first recipients of the new money. These economic elites enjoy an increase in purchasing power before the Fed’s inflationary policies lead to mass price increases. This gives them a boost in their standard of living.

By the time the increased money supply trickles down to middle- and working-class Americans, the economy is already beset by inflation. So most average Americans see their standard of living decline as a result of Fed-engendered money supply increases.


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Some Fed defenders claim that inflation doesn’t negatively affect anyone’s standard of living, because price increases are matched by wage increases. This claim ignores the fact that the effects of the Fed’s actions depend on how individuals react to the Fed’s actions.

Historically, an increase in money supply does not just cause a general rise in prices. It also causes money to flow into specific sectors, creating a bubble that provides investors and workers in those areas a temporary increase in their incomes. Meanwhile, workers and investors in sectors not affected by the Fed-generated boom will still see a decline in their purchasing power and thus their standard of living.

Adoption of a “rules-based” monetary policy will not eliminate the problem of Fed-created bubbles, booms, and busts, since Congress cannot set a rule dictating how individuals react to Fed policies. The only way to eliminate the boom-and-bust cycle is to remove the Fed’s power to increase the money supply and manipulate interest rates.



Because the Fed’s actions distort the view of economic conditions among investors, businesses, and workers, the booms created by the Fed are unsustainable. Eventually, reality sets in, the bubble bursts, and the economy falls into recession.

When the crash occurs, the best thing for Congress and the Fed to do is allow the recession to run its course. Recessions are the economy’s way of cleaning out the Fed-created distortions. Of course, Congress and the Fed refuse to do that. Instead, they begin the whole business cycle over again with another round of money creation, increased stimulus spending, and corporate bailouts.




 


President-elect Donald Trump has acknowledged that, while his business benefits from lower interest rates, the Fed’s policies hurt most Americans. During the campaign, Trump also promised to make auditing the Fed part of his first-100-days agenda. Unfortunately, since the election, president-elect Trump has not made any statements regarding monetary policy or the audit the Fed legislation.

Those of us who understand that changing monetary policy is the key to making America great again must redouble our efforts to convince Congress and the new president to audit, then end, the Federal Reserve.

Ron Paul, a former U.S. representative from Texas and medical doctor, continues to write his column “Texas Straight Talk” for the Ron Paul Institute.

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5 Responses to Want to Make America Great? Abolish the Fed

  1. Alan Jules Weberman says:

    The filthy Nazi pig Ron Paul has been forgotten in favor of the pro-Israel Donald Trump. Get rid of Ron Paul and his son if you want to make america great again.

  2. Walter Gobbels says:

    Ever since I was a small boy I wonder why Is the jewish holocaust so pushed over peoples concousness at every level. A topic beyond any debate,considering that is NOT the first and only genocide ever committed!!!?? Why the jewish alleged genocide matters and all other donot matter. Russia lost 18million people during WWII!! If the germans committed this genocide how is it, or WHY is that my fault?? why should I be,feel guilty for it??? Why are the Palestinians paying for someones elses alleged crimes??. How long must NONjews pay for the jewish “genocide”?? when is it over? During all human history there has been countless wars,crimes,genocides,mass murders like GenghisKhan,Stalin,Polpot,Mao etc. The jewish “holocaust” is nota unique experience!!!

  3. Henry says:

    Here is how the people must restore the Republic just like the Founders envisioned it, for their own good, and the good of their children, and grandchildren.

    1- Welcome God and His beloved son Jesus Christ back into the Public Square and back into every Classroom of Public Education.

    2- Abolish the oppressive and usurious Federal Reserve System, and the Personal Income Tax.

    3- Print our own money interest free, as mandated in the US Constitution Article 1, Section 8, “Congress has the sole power to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures”

    4- Suspend all aid, and terminate all ties with the illegal and murderous State of Israel.

    5- Halt all wars, and withdraw the US Armed Forces from abroad, and close 900 US Military Bases scattered around the world. Leave the United Nations and remove it out of the US.

    6- Impeach and incarcerating the treasonous members of the US Congress holding US/Israeli dual citizenship, swearing allegiance to the murderous and counterfeit state of Israel, and AIPAC.

    7- Impeach and incarcerate the treasonous Justices of the US Supreme Court whose opinion favored the removal of the Bible, Prayer Recitation, and the Display of the Ten Commandments from Public Education.

    8- Abolish Imminent Domain, granting Local Governments the right to take possession of Private Property and turn it over to Land Developers for huge profits, and huge kickbacks for the corrupt politicians.

    9- Abolish the International Trade Administration, the US Department of Commerce, and all US – Free Trade Agreements.

    10- Abolish the Legalization of Separation of Church and State, Affirmative Action, Euthanasia, Divorce, Sodomy, and Same Sex Marriage.

    11- Abolish Obamacare, and institute a Free Cradle-to-Grave Health Care System, paid by our new interest free currency.

    12- Abolish the Patriot Act, close all borders, and restore the Immigration and Naturalization Service, and abolish dual citizenship.

    13- Abolish the CIA – the Central Intelligence Agency, and the Department of Homeland Security.
    http://howtorestoreourrepublicconstitutional.blogspot.com/

  4. David Irving says:

    First order of business is ENFORCE the US constitutional laws,Trump must purge The Fed,NSA,CIA,FBI,State Dept of ALL double agents Israeli zionist jews whose loyalties are to Israel and making America politically, financially, military bankkrupt…JEWS are not real Americans.

  5. Candice H. Brown Elliott says:

    When I saw the headline, I asked myself, “Who could be that daft?!?!” Then I opened the link… “Oh yeah, of course!”

    Mr. Paul has no understanding of how money works. He thinks it must be inflexible and tied to a fixed commodity like a rare metal. This is probably the worst idea ever, pushing us back into the 19th Century before we developed our modern understanding of how economies need a flexible monetary policy if we are to avoid the boom bust cycles that we are only now begining to tame.

    http://www.theatlantic.com/business/archive/2012/08/why-the-gold-standard-is-the-worlds-worst-economic-idea-in-2-charts/261552/

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