Ron Paul and His "End the Fed" Movement

Now that, for really the first time in history, the Federal Reserve has come under scrutiny from politicians and the public over its handling of the banking industry and other bailouts, Ron Paul, who has been trying to show the inherent problems the Federal Reserve has to everyone for years, is ready to take on the Fed; not only through his introduction of the bill - H.R. 1207 - but also through his upcoming book "End the Fed," which is about to be released and is a must read for anyone who wants to get a good understanding of why Paul feels the Federal Reserve needs to be abolished.

The Morgans and Rockefellers had a secret get together in the early part of the 20th century on Jekyll Island, off the coast of Georgia. It was there that they and others conceived the Federal Reserve, and in 1913 was brought into being. I guess you could call it the first Federal Reserve meeting, although, unfortunately, there is always a next Federal Reserve meeting at this time we must contend with. 

It is unprecedented that over 280 members of Congress of signed on to co-sponsor this bill introduced by Ron Paul, as the Federal Reserve and Ben Bernanke are battling to not allow it to be audited in a truly full and transparent way, where the results would be laid out in the open for the public to see for the first time in history.

The Federal Reserve and Bernanke will tell you that they are audited all the time, but in reality that's only an audit of what the Federal Reserve wants you to see, not what's really important.

One example of this is the current distribution of hundreds of billions of dollars to the banking industry, where the Fed won't say which banks or institutions received the money.

The problem with this is those with accounts with these banks aren't receiving the type of information they have a right to make informed decisions.

In other words, the Fed won't allow consumers the opportunity to see which banks are weak and which banks are strong. This is what the bill by Ron Paul is attempting to find out.

The idea that this could cause a bank run and thus people shouldn't know is of course ridiculous. The Federal Reserve and Ben Bernanke are essentially admitting that some of these big banks are in real trouble, and so are protecting them at the potential expense of account holders. This is wrong.

What politicians are finally starting to realize is they've delegated unprecedented power to the Federal Reserve, which essentially is a private institution, although it's in practice more of a quasi-governmental institution. The constitution of the United States says that Congress has the right and responsibility in respect to coining money, even though Bernanke is attempting to say if they interfere in his and the Federal Reserve's business, it'll look like they're influencing monetary policy. About the only person or people in the world that would bother is the Chairman and board members of the various Federal Reserve outlets. Congress has every right to influence monetary policy according to the constitution, and who cares if it looks like they're doing their job? That doesn't even make sense.

So the first step at this time is to rein in the Fed and its Chairman in order to bring some sanity back into its printing and redistribution of money, which threatens to bring down the American economy.

Next there needs to be efforts to "End the Fed" completely, and stop the monetary policies that have been creating boom and bust periods for decades, and eating away at the value of the dollar, which is down about 96 percent from the Fed was instituted. 

One of the reasons most Americans don't rise up with their pitchforks and storm the gates is because they don't understand the most reprehensible tax in history, which is called inflation.

Most people think inflation just comes about from weaknesses in the free market, but that is just what central planners and socialists want us to think.

What's the true definition of inflation? It's printing money. And today, and for some time, the Federal Reserve has been printing money with nothing to back it up (fiat money), which means it's simply a piece of paper we agree to use as legal tender, but which has no way to defend itself from the endless running of the paper money printing presses, which always produces inflation. That's the ultimate evil connected to the Federal Reserve, and the dirty little secret hidden away from the everyday person in America, who are conned into believing we need a central bank to protect the economy, when in reality it's the Federal Reserve that's been doing it for decades.

Now the problem we face is we are inheriting trillions of dollars in debt and federal deficit, which is almost impossible to pay back, while the Obama Administration  continues to roll out programs impossible to pay for, but are willing to sacrifice the financial health of the nation to the point of no return in order to fanatically chase their socialist agenda. 

The answer to that is simple: of course not. There's nothing to indicate this, and no matter how the numbers and accountants want to spin it, we're in as bad, if not worse, as any time over the last two years with mortgages alone.

There are attempts to make it look like things are improving, but what's really happening is the banks are keeping the foreclosures off the books for up to two years at this time, and so make it look like there's a big improvement, when in fact people are continually unable to meet their payment.

And while the subprime mess is probably close to being over, the Alt-A loans are going to come due for resets over the next couple of years, and there's billions tied into those.

The mainstream media also made a big deal about a rise in some consumer spending lately, albeit it very small, and that was only because of the artificial insertion of money into the economy from the one-off Cash for Clunkers program, which actually hurt a number of businesses while helping others; something a government has no business doing. 

All of this is to say we must not believe all of this talk that the economy has started to turn around and happy days are here again. It's just not true, and it won't turn around any time in the near future.

And when it finally does turn around, possibly in a couple of years, most honest economists and analysts think the United States may never recover from its former economic strength, and much of this lies at the feet of Washington's spending sprees from printed money and the Federal Reserve readily handing it over to whoever they choose to bail out.

Even when a recovery of some type happens, we'll find that inflation will begin to rear its ugly head in a big way, and it won't feel much like a recovery for many people hoping things would really change for the better.

This is why we must end the Fed. 

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