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Ron Paul Introduces Legislation To Get Rid Of Federal Reserve
WorldNetDaily.com ^ | September 17, 2002 | Jon Dougherty

Posted on 09/17/2002 7:14:29 AM PDT by Red Jones

Bill to eliminate the Fed introduced Rep. Paul: Legislation seeks to 'restore financial stability' to U.S.

By Jon Dougherty © 2002 WorldNetDaily.com

A Republican lawmaker has introduced legislation to abolish the Federal Reserve as a way to "restore financial stability" to the country and re-establish the once-used gold standard.

"Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy," said Rep. Ron Paul, R-Texas, in a speech to colleagues on the House floor.

"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," he said last week while introducing the bill.

The Texas Republican went on to blame each economic downturn from the Great Depression of the 1930s to 2001's "dot-com bubble" on Fed policies.

"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," said Paul.

On the gold standard, however, which the congressman described as "stable currency," U.S. "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," he added.

"Those members concerned about increasing America's exports or the low rate of savings should be enthusiastic supporters of this legislation," he said.

Paul's office did not return phone calls before press time.

The libertarian lawmaker also introduced into the congressional record a column by Llewellyn Rockwell, a former WND columnist and current president of the Ludwig von Mises Institute, a libertarian economic policy think tank based in Auburn, Ala.

Entitled, "Why Gold?" Rockwell writes, "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," he said.

But, he continued, "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."

Rockwell said the dollar, which has not been based on gold for nearly three decades, is virtually worthless or, at most, whatever the Fed says it's worth.

"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," he wrote.

Paul said he believed the system was inherently unfair to ordinary Americans.

"Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy," he said. "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."

He also said most politicians used the Fed's "inflated currency" to hide the "true costs of the welfare 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," said Paul. "Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy."


TOPICS: Breaking News; Business/Economy; Constitution/Conservatism; Crime/Corruption; Government
KEYWORDS: economy; federalreserve; goldstandard
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To: Dane
I stand corrected.
21 posted on 09/17/2002 7:32:43 AM PDT by E. Pluribus Unum
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To: Phantom Lord
How long have you worked for the IRS?
22 posted on 09/17/2002 7:34:06 AM PDT by Destructor
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To: Red Jones
Could someone please explain how reverting to the gold standard would NOT be hyperinflationary? It is my understanding that the amount of gold reserves could not even come close to backing the value of the dollars currently in circulation. If we were to revert to gold, wouldn't that necessarily DEVALUE the dollars in circulation to mere pennies?

I'm sure there are problems with the Federal Reserve that I don't know about, but turning the $20 in my pocket into .$85 doesn't seem to be a good idea.

23 posted on 09/17/2002 7:35:41 AM PDT by Mr. Bird
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To: Dead Corpse
No. Ron Paul doesn't advocate Marxist economic policies. But he advocates and preaches the same worldview as leftists.

He is part of the blame America crowd.

Tell us what is his view on illegal immigration?

What did he say about the reasosn for 911?

24 posted on 09/17/2002 7:37:51 AM PDT by tallhappy
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Comment #25 Removed by Moderator

To: Mark Felton
If you think inflation is a bad problem wait until you see the effects of bank failures on America when there is no Fed or FDIC. If only it were as simple as Ron Paul wants you to believe.......
26 posted on 09/17/2002 7:50:24 AM PDT by NetValue
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To: tallhappy
He is part of the blame America crowd.

Tell us what is his view on illegal immigration?

What does any of this have to do with the topic of this thread, tailhappy?

If I didn't know better, I'd think you were trying to avoid discussion of the Federal Reserve.

Do you agree with Destructor that the Fed collects the income tax? Or do you have another weird theory about its function?

Surely you don't believe the garbage about its being a "shock absorber" to keep the economy from bouncing too hight or too low?

27 posted on 09/17/2002 7:50:57 AM PDT by logician2u
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To: Mr. Bird
Follow the comments on this thread.

http://www.freerepublic.com/focus/news/749945/posts

In particular, see my comments about how commodities (not just gold) can be used to back the currency.

Further, once an established ratio of backing to currency has been established, the value of the commodities "fixes" the currency in circulation. This restricts the value of currency from wide variation. And, since the currency states within a narrow band, infaltion does not accumulate month to month, year to year.

The key component of this is that the currency is "backed" by commodities but is not exchangable for those commodities.
28 posted on 09/17/2002 7:50:59 AM PDT by taxcontrol
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To: Red Jones
Abolish the Federal Reserve....hmmmm

Do I really want Hillary, Chuck Schumer, Ted Kennedy and Robert Byrd, et al in charge of monetary policy?

They could do for gold what they have done to education.

29 posted on 09/17/2002 7:51:20 AM PDT by N. Theknow
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To: Chancellor Palpatine; Dead Corpse
Here Ron Paul giving his keen analysis shortly after 911:

Following the September 11th disasters a militant Islamic group in Pakistan held up a sign for all the world to see. It said: AMERICANS, THINK! WHY YOU ARE HATED ALL OVER THE WORLD. We abhor the messenger, but we should not ignore the message.

Here at home we are told that the only reason for the suicidal mass killing we experienced on September 11th is that we are hated because we are free and prosperous. If these two conflicting views are not reconciled we cannot wisely fight nor win the war in which we now find ourselves. We must understand why the hatred is directed toward Americans and not other western countries.

. . .

...bin Laden learned to practice terror; tragically, with money from the US taxpayers. But it wasn't until 1991 during what we refer to as the Persian Gulf War that he turned fully against the United States. It was this war, said to protect our oil that brought out the worst in him.

Of course, it isn't our oil. The oil in fact belongs to the Arabs and other Muslim nations of the Persian Gulf. Our military presence in Saudi Arabia is what most Muslims believe to be a sacred violation of holy land. The continuous bombing and embargo of Iraq, has intensified the hatred and contributed to more than over 1,000,000 deaths in Iraq. It is clear that protecting certain oil interests and our presence in the Persian Gulf help drive the holy war.

Muslims see this as an invasion and domination by a foreign enemy which inspires radicalism. This is not new. This war, from their viewpoint, has been going on since the Crusades 1000 year ago. We ignore this history at our own peril.


30 posted on 09/17/2002 7:51:28 AM PDT by tallhappy
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To: logician2u
Read the question I responded to.
31 posted on 09/17/2002 7:52:50 AM PDT by tallhappy
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To: tallhappy
LIAR!

Try readin this.

Get your g*dd*mn facts straight before you open that cesspool of a mouth.

32 posted on 09/17/2002 7:55:04 AM PDT by Dead Corpse
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To: Dane
Anyway he is quite "independent"(bullheaded, IMHO) and has recently questioned the Bush administration on it's policy towards Iraq.

Heaven forfend a U.S. representative, whose duty among other things, is to declare war and fund it with our tax dollars, should ask questions.

33 posted on 09/17/2002 7:57:06 AM PDT by JohnYankeeCmpsr
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To: tallhappy
Read the question I responded to.

I did.

Now respond to mine. (And do not try hijack this thread into a war vs. anti-war thread, which there are already plenty of.)

34 posted on 09/17/2002 7:58:10 AM PDT by logician2u
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To: Mr. Bird
I don't like the federal reserve. I'm convinced they are corrupt even to the point of printing unauthorized money for special purposes. The WSJ had an article a while back showing how since the fed was established (1913?) it has just failed to provide the stability that it was originally touted as able to provide. But you hit on a very good point in that we need to be certain that whatever we replace it with will be a good thing. We've got the massive debt. We have a creeping deterioration of the standard of living for a large bulk of americans. We've got a post-1970 30 year unemployment average that is more than 50% higher than our nation's pre-1970 unemployment average. We've got an absolutely unsustainable and untenable trend towards moving manufacturing capacity out of america. We have problems. Very few people are even facing these problems. I am just glad Ron Paul stimulates a small amount of debate on these issues. His legislatin stands no chance for passing, but that doesn't change the fundamental realities that the federal reserve is no good and we have major problems in the economy.
35 posted on 09/17/2002 7:58:31 AM PDT by Red Jones
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To: Red Jones
Milt Friedman blames the Fed for the Great Depression. He recommends abolishing it, too.
36 posted on 09/17/2002 8:00:58 AM PDT by Tribune7
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To: Palm_OScar
Number 25 is an excellent point.

It is yet another example, this time in the economic realm, where Paul's worldview and analysis are congruent with the left.

37 posted on 09/17/2002 8:01:52 AM PDT by tallhappy
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To: logician2u
This is a thread about Ron Paul. Not the Fed Reserve.

Don't kid yourself.

I have no opinion on keeping it or doing away with it.

Needless to say, Ron Paul's bills are make believe.

38 posted on 09/17/2002 8:05:35 AM PDT by tallhappy
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To: tallhappy
Tall, I have met the man. He is not what you claim.

The fact is, we do ignore history at our own peril and we would be MUCH better off reducing and even eliminating our dependency on Mid East Oil, or anyone else's oil for that matter. So, I can go that far down the road with Paul on this issue.

I disagree with him that this is the principle reason the radical Islamics have it in for us. They DO hate our liberty and the freedom it gives particularly to women and children. They are afraid of it, they disdain the potential for choosing vice's that free will necessarily brings along with it. They would like to destroy it from the earth so it cannot influence them.

I too dislike the vice ... but not to the point of eliminating free choice. The Islamic extremist medicine is far worse than the ill. The correct way to fight vice is through laws that protect rights so that when someone infringes those rights they are punished ... and then to have society persuade and teach better behavior and scorn/reject the vice.

So ... while I disagree with part of Paul's statements, that does not make him a leftist or a "commie" or someone against America. Any more than it makes me think you are for disagreeing with him.

As to the Federal Reserve, which this thread is about, I believe it is a good thing to propose ways to get back to what I consider much more constitutional means of dealing with our money and economics. And then to allow debate on the issue. I appluad Paul for seeking a way to do that, just as I applaud him for seeking a direct way to get us out of the UN.

In my estimation, we would be much better off as a nation if e had a lot more like him in Congress. Since we don't, he is indeed like a lone voice crying in the wilderness on these issues and unfortunately, they will probably not be debated or changed. I believe he is gathering momentum on the UN issue though.

FRegards.

39 posted on 09/17/2002 8:06:25 AM PDT by Jeff Head
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To: Tribune7
He recommends abolishing it, too.

Not exactly.

He suggests the Fed Open Market Committee could be replaced by a computer.

Dr. Friedman is a monetarist, not an Austrian. As much as I admire him for his excellent scholarship and the great gains he's made for the cause of personal liberty, he's just plain wrong on a couple of things.

Central banking is one.

40 posted on 09/17/2002 8:06:50 AM PDT by logician2u
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