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Ron Paul: 2012 Presidential Candidate Says Abolish the Federal Reserve Bank
2012 Presidential Candidate Ron Paul Wants to Abolish the Federal Reserve Bank - Another "Nutty: Proposal?
2012 Presidential Candidate Ron Paul wants to abolish the Federal Reserve Bank - is this just another one of his "nutty" proposals? Was the congress of 1811 "nutty" for abolishing the first U.S. Central Bank by refusing to renew its charter? Was president Jackson "nutty" when he effectively abolished the Second US Central bank by closing the U.S. account in it? Both of these actions arose from both actual and feared concerns that a Central U.S. Bank held too much control over the U.S. economy and government policies.
Did the almost trillion dollar T.A.R.P. bailout program worry you? Well, did you know the FED did essentially the same thing, but to the tune of $1.25 trillion dollars over six weeks? And would not reveal the details to the public of how it spent that money, and could not be required by current law to do so, did you know that?
So is Congressman Paul's call to abolish the FED just another of his lunatic ideas that are too draconian to seriously consider? History doesn't think so. Other political candidates and politicians don't think so. And fiscal conservatives certainly should not think so. Perhaps it is only those that believe in "Keynesian" economics that think he's a fruitcake for this proposal.
What is The Federal Reserve Bank
In layman's terms, the Federal Reserve Banking System is the U.S. government's and the U.S. commercial banking system's bank. Its responsibilities and authorities can be generally described as:
"...to maintain employment, keep prices stable, and keep interest rates at a moderate level by regulating monetary policy. Components of the Federal Reserve System also supervise banks, provide financial services, and conduct research on the United States economy and the economies in the surrounding region."
Of course the details and mechanisms are much more complicated. Some are very specific, and others are vague and general in nature. To delve deeper into the exact nature and functions of the FED, Wikipedia has an excellent page - The Federal Reserve System
Why does Ron Paul want to abolish the FED
Presidential candidate Ron Paul wants to abolish the FED because he thinks it has; failed in its responsibilities, is outside the control of American citizens and their government, and serves the interests of the banks above the interest of the nation, re: $1.25 trillion tarp-type bailouts to financial institutions without government approval or oversight. Specifically, it has taken lawsuits and legislation to force the FED to offer even as general an explanation of its actions as holding a press conference.
Did you know that The Federal Reserve is not an agency or part of the U.S. government, it is actually a privately owned corporation, owned by a group of international bankers? That sounds much more sinister than it really is, the president and congress do have the power of confirmation of its board of governors, but it is essentially an accurate description of the FED as an entity. Is Ron Paul a nut for even thinking this isn't the way our economy should be controlled?
The FED has been under attack for quite awhile from strict fiscal conservatives and Constitutionalists, so this is not a new issue. But the current economic crisis, Ron Paul, and the focus on the FED-Tarp-Bailout of banking/investment houses has once again made it a current issue. Trading $1.25 trillion of U.S. government backed Treasury notes for troubled mortgage and securities backed assets, without transparency or accountability is not conducive to trust. Even worse, the government T.A.R.P. bailouts were loans meant to be repaid, the FED-Tarp was an outright swap - none of the involved entities have to come back and redeem those troubled assets.
But do these concerns merit abolishing the entire institution? A quick research scan found almost five million anti-FED results, (you can find almost as many on the sex life of toads), but this article is not intended to delve into the deeper details for or against the idea, instead it is to explore the assertion that it is just another of Ron Paul's nutty ideas.
You can see specific charges against the FED at abolishthefederalreserve.org - BUT A CAUTION - this is obviously a biased presentation, you will see the nuts-and-bolts facts, examples, and reasoning for abolishing the FED, but in a very slanted context. So just look for the factual details, and judge the presentation by your own leanings and intelligence.
Also, the video below is Ron Paul at a CATO sponsored banking and investment gathering - you can hear his reasons from the horse's mouth. (it is lengthy, but worth the time if you want to know what Paul actually says - not what the media and his opponents say he says)
Congressman Ron Paul's Reasons to Abolish The Federal Banking System
Counterpoint to Presidential Candidate Ron Paul's Assertions
Although there are very valid reasons and instances of behavior that strongly support the anti-FED positions, after all sometimes facts remain facts no matter how contorted they are presented, there are also some very valid reasons supporting the need for the FED's existence and argue reform is the measure needed - instead of abolishing it entirely.
The easy to understand pro-FED arguments:
- Twisted and biased presentation of facts distort the truth
- the FED does return all of its profits to the U.S. Treasury - to the tune of about $79 billion in 2009.
The harder to quantify reasons the FED is needed:
- Our economy isn't the one of the 1800's - it could not work, nationally or globally with 1000's of different currencies
- Given the current faith in the U.S. Government, and its track record of successes - do you want it to have complete control of our economic functions - which is essentially what the FED does, supposedly in conjunction with government oversight?
Is reform of the FED a better option, and Ron Paul's position just another nutty extremism? Or is the very structure of the FED the problem, and Ron Paul is right?
See more GA Anderson Political articles
About the Author
Writing for the Daily Constitutional, and commentary from the Curmudgeon's desk - GA Anderson
"Seeing it does not make it real, and reading it does not make it true. Use a little common-sense and trust your instincts." - GAA
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