Ron Paul, the Federal Reserve and economic crashes
Finance Friday, November 11th, 2011
By Brent Bodowsky, The Hill
With Newt Gingrich, Rick Perry and almost the entire Republican Party now imitating Ron Paul on the matter of Federal Reserve policy, let me suggest where I think Dr. Paul is brilliantly right, where I think he is disastrously wrong, and why I believe there is now a substantial danger of a recession that could be more severe than 2007 and 2008.
First, America and Europe are now repeating the policy mistakes of 1937 and imposing severe austerity at a time of economic slowdown that could drive Europe and the U.S. into a deep recession. I agree with Dr. Paul that the Fed should disclose far more; that there should be a significant audit of how the Fed has spent money; and that Fed policy has been radically tilted toward banks at the expense of individuals and small business. I also fear that Dr. Paul’s idea of ending the Fed would guarantee a global recession and potentially a great depression.
While I agree with Paul that Fed policy has been a disaster that has created huge monetary bubbles on assets ranging from oil and food to stocks and bonds, the solution is not to kill the Fed, or kill Fed assistance to the economy, but to moderate the Fed, and structure the assistance properly.
Specifically, I would like to see the Fed finance the proposed infrastructure bank to create jobs in ways that pay for themselves, rather than pump even more money into the 1 percent at the top through various manipulations of bond markets.
To read more, visit: http://thehill.com/blogs/pundits-blog/economy-a-budget/193103-ron-paul-the-federal-reserve-and-economic-crashes
Short URL: https://reteaparty.com/?p=4355
I cannot believe that a person can write an editorial on this site (tea party in the url) so completely without substance or any kind of information to back it up…Whereas Ron Paul started the Tea Party movement with Ending the Fed as his platform. Ridiculous. Ron Paul has more knowledge in his pinky than this shill of an editor has in his entire body.
Brent, you are a tool. You are historically and economically illiterate. May god have mercy on your soul
He’s not advocating closing the fed overnight. But phasing it out and taking the power to create money out of the hands of the banksters.
“Permit me to issue and control the money of the nation and I care not who makes its laws.” — Mayer Amsched Rothchild, a prominent European banker in the eighteenth century
Dr. Paul wants to allow sound-money issuers to compete with the Fed, not eliminate the Fed at a legal stroke. If the Fed can compete as an independent private currency issuer in the absence of fiat government privilege, then it can persist.
> “but to moderate the Fed, and structure the assistance properly”
These are silly, question-begging opinions. Who defines moderate? What assistance, on whose authority, and derived from where?
“[ending Fed easy-money would] guarantee a global recession and potentially a great depression”
This is what the _current_ policy is doing, not what a sound money policy would do.
Who is this self-contradicting Brent guy, and who at RE Tea Party decided to post his garbage on this site?
E.W. You are absolutely correct. I have never heard Paul say “abolish the Fed”, just that it should have never been started to begin with and we all know how this was accomplished by J.D. Rockefeller and turned us over to the international bankers. Well, it is like surgery….yes, it is going to hurt for a while recovering, but it must be done…otherwise it is too late….It is now time to pay the piper for this horrible mistake made in 1917.
correction leilanie it was 1913 not 1917 :~)
If you are not aware of Congressman Paul’s record of fidelity to the US Constitution, his tireless devotion to defending OUR freedoms, securing OUR borders, & introducing legislation to protect OUR prosperity (Audit The Fed: HR 459) so “We the People” can earn an honest living & provide for OUR families…. please take time to do your own homework. The media elite will not do it for you.
RON PAUL 2012
http://www.ontheissues.org/Ron_Paul.htm
How’s the FED working for you now, Brent?
You are in way over your head, buddy.
You obviously do not understand the real economic crisis created by the Federal Reserve. Too bad, considering you call yourself a Tea Party person. Only a policy that adheres to the original Constitution, under which the Federal Reserve is not authorized, can this country turn itself around. Unfortunately, only a crash and burn of the current system must occur first before the situation can right itself. Ron Paul is only candidate who has the will to follow the Constitution and restore Liberty to the people.
YOU ARE CORRECT SIR !
Perhaps you should look into the disastrous depression of the early 1920s… The one that was averted by shrinking government, lowering taxes and imposing severe austerity at a time of economic slowdown. Sound money offers the only way we can rebuild our economy on a solid base, half measures will only allow us to dig a deeper hole and possibly one we will be unable to climb out of.
What a Tool, your article reveals your utter lack of knowledge – Return our Government to one that obeys the Constitution! All else will fall right into place just the way our forefathers planned. Ron Paul – well he would do just that & he is the only Candidate running that is beholden or owned by nobody. This truly great man runs for the ‘ People ‘ – The True Americans
Brent your article is your weak minded opinion with no facts as how a”moderated” fed would work, nor do u give proof how getting rid of the fed would be disastorous. You are a shill and need to educate yourself before making wild baseless claims on a “tea party” website. I think the website should be called http://www.sameolrepublicrats.com
Unsubscribe me now if RE Teaparty’s going to print articles in favor of continuing central-government planning of our economy and anti-free market price controls on credit and currency. The Fed is unAmerican! In fact, unsubscribe me NOW if you don’t denounce this price of sh#% article.
Brent, you need to sit at Dr. Paul’s feet for a few years and TAKE LESSONS in sound financial policy and the US Constitution. You apparently spend WAYYYY too much time on The Hill with your head in a dark place in a very dark city–DC
We simply want to legalize gold and silver as a competing currency. It is not a commodity as the Federal Reserve has tried to make it into, and the crash of the fiat system will precipitate the end of the Federal Reserve all by itself.
This sounds like the same “ignore Ron Paul” drivel i’ve been seeing on Fox News since Glenn Beck left. I think the “too big to fail” banks have spread our money around to those in the media to prevent Dr. Paul from winning and ending their little garden party.
Frightening…and this is what a number of the candidates think, as well: Just fix up the Fed, make it bend under new government direction…well good luck with seizing power from those who hold it absolutely under the 16th amendment!
Even if Dr. Paul wanted to end the Fed overnight, which he does not, it would be as Ron said in 2008, the day after Henry Paulson flew onto the world stage demanding $780B from the American people or bear the sky’s falling. We will recover if we let the markets work…for a BIG change. Yes, there may be a year or 18 months of hard times, while we wrest back control of our own destinies from the hands of the central bankers; but better to be a free people than to continue under the thumb of a tyrannical banking system that runs everything for a very few to dictate reality to you and your progeny. …and that’s a very sick few, btw.
When we start auditing the Fed, we will see how they dug a grave for humanity over the last century, staging all the wars through financial and governmental power manipulations. People –many millions — have died under the realm of Federal Reserve/central banking control of our world. The poorer peoples of the world have been robbed of even the little they’ve had through the prevailing mercantilism. Now, we in the US are set up to become the next people to be taken down under their system. The Fed is at the root of evil. When it’s gone, it will be so clear we will weep at the lost century under their rule and those who gave their lives and families up not for God and country but for a few central bankers determined to rule this world.
Woooo, how did this guy get a job with the Tea Party? He knows zilch about economics.
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