FED Abolition Act Reintroduced by Rep. Ron Paul (R) Tex.

Congressman Ron Paul’s Floor Speech on February 3, 2008, to introduce HR 833.

"Madame Speaker, I rise to introduce legislation to restore financial stability to America's economy by abolishing 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 current economic crisis caused by the housing bubble, every economic downturn suffered by this country over the past century 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 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."

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“Well, first of all, the Federal Reserve is an independent agency, and that means, basically, that there is no other agency of government which can overrule actions that we take. So long as that is in place - and there is no evidence that the administration or the Congress or anybody else is requesting that we do things other than what we think is the appropriate thing - then what the relationships are don't, frankly, matter.”

---Former Federal Reserve Chairman Alan Greenspan in a 2008 interview with PBS’ Jim Lehrer.

Actually Darth

Submitted by JeffC on Fri, 02/20/2009 - 8:27am.

Ron Paul, who I like very much, states, “The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank.”

Actually, it does. The Supreme Court pretty much settled the case in 1819 in its ruling in McCulloch v. Maryland with Daniel Webster arguing the case for establishment of the bank.

Another view the Ron Paul expresses is also dubious: “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.”

Why would the value of money be presumed to stay consistent if it was tied to a commodity? Gold prices have fluctuated wildly over the past few years.

Also, there is no reason that followers of Paul's reasoning cannot buy gold with their money if they wish. They don't have to keep their wealth in unbacked currencies.

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Actually Jeff,

Submitted by DarthDubious on Fri, 02/20/2009 - 4:43pm.

The point of a commodity backed currency is to stop the indescriminate creation of money out of thin air as is practiced by the FED.

The reason gold prices fluctuate wildly is because of the manipulation of the money supply (inflation) by the privately owned FED RES. The more fiat dollars printed the less it is worth, which drives up the price of gold. Compare inflation to the price of gold on graphs since 1971, as the money supply increased, the price of gold increased, it is a direct relationship.

In Liberty,

DarthDubious

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